managementadmini06newyuoft.pdf - I;i'i;i?i!lli!iiifiii4;l!«Hi^:� FOR MANAGEMENT OFFICERS EXECUTIVES AND DIRECTORS OF INDUSTRY AND ADMINISTRATION u JULY

managementadmini06newyuoft.pdf -...

This preview shows page 1 out of 636 pages.

You've reached the end of your free preview.

Want to read all 636 pages?

Unformatted text preview: I ' ;: :;i'i- :':;;i?i!lli!iiifiii4;l!!«Hi^!'!:» FOR MANAGEMENT OFFICERS EXECUTIVES AND DIRECTORS OF INDUSTRY AND ADMINISTRATION u JULY VOLUME VI The Organization I. Bei2:innin,u: Number 1923 Modern of I Inclustry of the Cluing'^ from Handicraft to Production By DEXTKK S. KIMBALL Dean, College of Engineering. Cornell Vnirersity THE and from place to place with man's varying conditions and surround- mind of man, in his lonsr and toilsome journey from savagfery to civilization, has been occupied constantly with two great fields of thought. The first concerns the satisfaction of his animal wants, and the subjugation of an unfriendly environment to This endeavor this end. for man is ings. 658.3 Economics of Industry Just as morals are based upon custom so industrial values and industrial based are relations basic, upon and appeanimal world. But in all times and in all places, even when his animal wants have been at any time and is filled barely eared for. he has instinc- that jireeeded the present with the instincts all tites of the tively turned his mind to the of speculative philosophy, is when he as man of the state were groupeil the industrial worker were judged solely with reference to their relation We the ancient places we ideals. evolved are These to ideals are ideals Yet a call political organization, central Greeks as a great of liberty clo.ser and equality. inspection makes it clear that the basis of this great civilization was slaverj' of an all powerful since they control and dictate the form of industrial and the free people holding the highest in therefrom pleased to are prone to think of speculations against his animal what and and of ideal. all ; the importance of industry has weighed the and see forming the central ideal relative values of these spiritual desires he has in all times we aroMUtl which all other functions activities. And In the old civilizations activity and mundane leaves these History war. religion, art. or some other field and whither he goes here, place. with illustrations that verify the truth of these state- ments. has pondered deeply the time-old problem of whence he came, why he the national conception of industrj* primarily an animal is Number Class 658.16 Organization of Industry abject kind. Home, the great law-giver, in whose forums were and impa.ssioned speeches no industrial system can be un- delivered derstood unless a clear conception defence of liberty that still remain masterpieces of their kind, was even more frank in recognizing that slavery was e,s,sential to the life of in can be had of the ideals upon which it is b&sed. It should be carefully noted that the.se ideals are far from (i/>.<()luie but are relative, only, changing from time to time the i; state. Libcrtv and democracy were for certain Management and Administration 18 kinds of people, but not for all people. This could not and maintain the kind of civilization that was desired while Rome was surrounded by barbarous peoples, and while her very existence was based upon In other words, tribute from these subject nations. be otherwise their ideals were the ideals of necessity. is possible that we Vol. 6, No. 1 shall develop another metallic basis that will serve as an exponent for a higher and happier plane of civilization. The distribution of the fruits of industry and the consequent degree of universal comfort and well-being among any people for given natural resources and developed productive powers, are dependent upon the Efforts Toward Universal Well-Being While it is true that we, in these later days, have made considerable progress ideals it away from these ancient should be remembered that we inherited our present civilization largely from Greece and Rome, and each and everyone of us live today under the shadow and and write as did the Greeks and Romans of liberty, equality, and brotherly love, but our ideals have remained, to no of the political institutions that were conceived We developed by these great nations. small degree, the ideals of necessity. of the Christian religion, and its talk Even the influence influence has been some of American great, has not been able to eradicate entirely old these Nevertheless, if I read ideals. democracy aright, we, in this country, are committed to an effort to attain universal well-being and there are some phases of modern industrial life that hold out a hope that this most ancient of all desires and ideals may The idea that industry should be a means of conferring universal well-being on all men; that all men should be well cared for physically, mentally, and morally, and that industry should not be yet be achieved. conducted solely for individual, profit, And state, or corporate modern times and modern ideals. conceptions have placed a new evaluation belongs to these upon industry since it has become clear that physical, mental, and moral well-being are dependent, primarily, upon the industrial background. The Sources of Fig. 1. A Medieval Grist Mill We cannot help wondering why the designer did not hitch the beast directly to the mill instead of using his animal power to lift water and then use the water to drive the mill. Wealth The total amount of wealth or worldly goods that any people can produce depends primarily upon the natural resources at their command and upon the tools of production, mental and manual, which they possess for developing and utilizing these resources. Thus we many examples have of savage nations living in coun- tries rich in agricultural rise and mineral resources that only to the industrial and social level permitted by their elementary tools of production. We have other illustrations of nations that live in territory that offers very meager natural resources, which, by reason of the high development of their tools of production, occupy a foremost place among civilized nations. history of civilization, indeed, is The true not the story of the deeds and misdeeds of kings and queens as it is usually presented to us, but is really the story of the develop- ment of the tools of production. This is recognized way when we speak of the Stone Age, the Bronze Age, the Age of Iron, and the Age of Steel. It in a general under which production is conducted. Thus among the North American Indians, working with primitive tools, the distribution of wealth was fairly uniform. None were very poor compared to others. In the ancient Egyptian and Babylonian civilizations, industrial system on the other hand, where, also, the tools of industry were primitive and hence the output for each individual was very small, the larger part of what the worker produced was taken from him to support the nobility, the priesthood, and the army. And his output was so small, in general, that when he had contributed his share toward the support of the civilization of which he was a part, very little was left for him or his family, and the average well-being was very low. Brief reflection will show that in any highly civilized country the economic condition of the actual producer tends to approach slavery, as his tools of production become more and more primitive, though the control- Management and July, 1923 ling or non-producing classes civilization. of Historj* may enjoy a high state many examples of affords nations organized industrially in this manner, sup- ported by vast numbers of low-paid producers whose economic state bordered upon or actually was that of however, to conceive of civilizations possessing very highly developed tools of production slaverj'. It is easy, and operating them by slave labor; though it is to be hoped that such an organization is no longer possible. "Highly developed tools of production make possible a high average state of mental development and physicomfort; but the realization of this average depends upon mental ideals and the social and industrial organization by which the wealth produced is distributed." cal Influence of National Ideals It may should be particularly noted that national ideals greatly affect not only the distribution of wealth. An.MiNisxRATioN 19 of long standing, legalized by the courts, have been swept away because of a change in sentiment. Our modern industrial compensation laws are a good example of such a change. Such national sentiment and usage may working of economic laws that run would benefit humanity, retarding their influence because they may work an immediate hardship on those first affected. Obviouslj-, therefore, production and distribution of wealth are closely interinterfere with the in the long The first part of this series of articles, however, will deal primarily with the economics of connected. production, while later articles will discuss certain phases of distribution. So far as we know, all civilized peoples have passed through several fairl}' distinct stages of economic For unaccountable reasons, other peoples progress. have reached some one of these stages and have proCuriously enough this lack of gressed no farther. economic progress does not appear to be attributable The ancient Greeks have to lack of mental ability. never been equaled for pure intellectual power in the field of philosophy or in skill of hand in sculpture, but they acquired only a very small knowledge of science The scope of these articles any extended discussion of these economic but a careful study of them is most instructive either pure or applied. forbids stages, to the student of industrial economics. Five Economic Stages and fishwas supported by direct appropriThe North American ation of natural resources. Indians were in this stage when colonization from Europe began. In this stage tools are primitive and mostly of stone and wood. The first ing, stage stage where is the primitive, or hunting life The second stage is that of pastoral life when men had learned to domesticate animals and to depend upon them for food and clothing. The need of fresh pasture usually necessitates a nomadic life for such tribes. But accumulated wealth, in the form of herds, and even property rights to grazing lands, begin to appear, and slavery may also be instituted, captured enemies making this a possibility. The third advance is the agricultural stage when men have learned to raise plants as well as animals. Nomadic life ceases and men settle down on definite tracts Fio. 2. A Table Fan or 161-1 in principle but the mechanism aa a is in striking contrast with the small electric motor-driven The derices are familiar whole fan of today. but also the industrial methods by which worldly goods Thus religious prejudices have often are produced. discouraged the u.se of valuable scientific inventions; or ca.ste systems, as in India, may crj-stallize the industrial machinery and prohibit progress. In recent years, again, there have been many instances where practice of land, thus cry.stallizing property rights in the land. Slaverj' may become more common since the need of manual labor is increased. Accumulated wealth in- creases so that a given piece of land will support a much larger population. Hunting and fishing may still be pursued as an adjunct to agricultural and Division of labor begins to be more cattle-raising. marked, especially in the production of and iron. The particularly by the appearance of a cla.ss wood marked tools, of latter part of this period is of independent ' Management and Administration 20 wage-earners free from the soil to which all men are less bound during the agricultural stage. This money comes Vol. 6, No. 1 Life becomes more into extended use. more or complex, and legal regulations and restrictions intended movement marks also the beginning of the separation and the mechanic arts into two great fields of endeavor which is such a marked characteristic labor of agriculture to insure a make more equitable division their appearance. of the fruits of It should be noted that while factories and manufacturing centers exist in this stage, they are based upon handicraft tools; that is, still so simple and primitive the tools of production are that the skill of the worker is still the predominating Ancient Greece and factor in production. Rome are good examples of large and flourishing handicraft civilization. England and leading countries of the continental Europe, as well as the English colonies in America were in this economic stage until about 1750. The majority of humanity still support themselves by liaiidicraft industry. Machine Industry The last and highest economic stage (fifth) is that machine industry, which arose in England and continental Europe dnring the latter part of the eighteenth century. It spread to America and has been adopted of by Japan, but is from being universal. far It is characterized by a tremendous development of the tools of industry in the of power way to drive this of machinery, the production machinery, the development of great factories where division of labor has been ex- tended to unheard of limits. Transportation facilities have been revolutionized by steam and electricity, and transmission of intelligence quickened by the telegraph, and radiophone. Goods are produced in large quantities or by " mass production " as it is called. The telephone, busine.ss corporation has become the approved form and the modern system of of industrial organization Fig. A 3. Medieval Pumping Plant Tliia machine which was proposed but never actually built was expected to use Archimedean spirals with a patient ox as the prime mover. doing busine.ss on credit, instead of by actual exchange of circulating medium, has greatly facilitated these This change in financial methods great operations. "mass production" requires These two features of modern industry are highly developed, but they have brought about some very difficult problems. The art of admin- follows, necessarily, since of modern industrial should be noted, is society. Division of labor, it the fundamental economic principle appears to be axiomatic that as the worker restricts his field of endeavor his product rises of civilization. in quality It "mass financing." istering these great enterprises or as and quantity. it made The fourth stage .stage is mechanic arts are developed, that of handicraft industry. of agriculture and In ' ' mass management, ' undeveloped, and we have progress in distributing the fruits of indus- The greatly extended use the latter problem an made exceedingly difScult one. the more pronounced, independent trades and the principle of division of labor is Handicraft factories involving congregated labor may appear, and manufacturing centers, that are the beginning of modern industrial The need of capital in order to cities, begin to form. is is still of division of labor has separation the little be called, try in an equitable manner. Handicraft Industry this may greatly extended. conduct larger enterprises begins to be felt. Commerce and transportation between different parts of the country and between neighboring states commences to give rise to the need of some medium of exchange, and Three Factors in The three great esses are, Productive Processes factors in therefore, transportation. modern productive procand agriculture, manufacturing, These factors are interdependent, act- ing and reacting upon each other, and each presents But since modern manuits own economic problems. facturing methods have done so and created modern methods much to make modern agricultural life possible, since they have prac- tically of transportation, these ^^A^'AGEME^•T AM) Al)M July, 1923 articles will be confined to a discussion of present-day industrial methods. modern industrial field know something of the industrial conditions firevailinyr at the time modern machine methods were introduced, and to know somcthinjj aiiout the In order to understand the it is essential to economic and social conditions of the working population upon wlioiu the results of these methods were imEnjrland was almost wholly in the ai.'ricultural jiosed. stage for three centuries or more, succeeding.' thf man ,N'or- I MSTH ATIOV 21 kind of protective legislation wa.s in vogue. It should be noted, therefore, that there is nothing new in protective and regulatory measures such as we see today and one need not be first what may appear at surjjrised at sight as startling innovations of this kind. They had their origin and application many generations ago. Three Forms of Handicraft Industry the year 1700 By modern and just to the |)ri<)r advent of the industrial era, handicraft industry was quite The manorial prevailed, under which f'omiuest in lOGG. system largely all men were practically Ixiuud to the soil in eommunities, each governed by The worka "Lord <it' the ^lanor." ing population the tilled duced the primitive supporteil the lord of the The manor and if necessarj-, in time of lord and nobles afforded followed him. war. pro- soil, tools of industry, protection against outside oppression. Each manor was practically self-sus- taining and commerce was scanty. As system declined and the period of handicraft industry began to appear men found means of freeing themselves from the soil and. collecting in towns and villages, they practhis feudal ticed the handicraft callings. Divi- was hence extended and trade and commerce became necessarv. sion of labor Defence Against Industrial Oppression Coincident with the growth of handicraft labor tive industry and of division of came the growth influences organize to guard, industrial guilds, of the protec- men that naturally if po.ssible. against The oppression. trade our modern forerunners of many things in eommiiii witli these later-day organ- trade unions, and having izations came into being, and for several centuries dominated industry. The merchant guild.s, corresponding our modern chambers of commerce, or perhaps more clo.sely to certain to modem combinations of capitalists /» the South Kinxiiiiitun TiiK Watkh Frame op Akkwrioht of the TliiB is Olio of tlie origiiijil iiiacliiiifs of tlu' four Rrp.-it invcntion.s of the oml It iiimle roller s|iiiiiiiii|; a prnetieal EiKhteeiith Contiirv, h.ivinj; been made in 177 1. giiecesa iiiid the iiaiiie of its proiluet still organized for mutual protection, also appeared. More striking still is the large amount and character of labor legislation that is found on the statute books of the Middle Ages. Thus the Statute of Laborers of i:t4!) fi.xed the workinu' day at 12 hours at least and endeavored to fix a maximum or "reasonable wage." In general these ancient laws were aimed against tabor and not in its favor as The economic balance was are modern enactments. entirely different than at present, MuKfum Fio. 4. and hence a different survv.v ,. "^.i.r well developed in Kuizlan.!. in three forms. First there It t«i«t '• ai«iiears to still have existed survived a large num- In fact the.se have become extinct in Kngland and survive in America in the form of custom tailors, dressmakers, Second there was jf)b carpenters, and similar artisan.s. the Domestic System of manufacture under which the ber of inilii'idual handicrafl.smen. not as yet tilled a .small piece of .soil as his principal occupation, but oeenj)ied his spare time in manufacturIn the textile industry, which was .still the great ing. arti.san Management and Administration 22 manufacturing calling, neither of these classes in the or by towns Vol. 6, No. 1 was superseded by a national system of main owned the materials on which they worked, though The materials they owned the tools of production. were supplied by a middleman who contracted with regulation that has been called the Mercantile System. It was operative in England from about the sixteenth the artisans to do a given part of the productions as, for instance, spinning, and then carried the product regulate manufacturing on to some other worker who would do the weaving. This, it will be noted, was the beginning of our present system of middleman, and long before the present er...
View Full Document

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture