The Industrial Revolution in the United States

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http//www.hulu.com/watch/25218/billy-madison-indu
strial-revolution-puppy
What makes you think the host was once a high
school teacher?

• The Industrial Revolution in the United States

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Life is Changing

• People were resistant to change, but life was
  fundamentally changing.
• Industrialization meant more people in factories
  and fewer farmers.
• More wages meant more disposable income.
• Better standard of living meant more people
  seeking opportunities.

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Inventions
Mother Necessity Video
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Check for Understanding

• Think of an invention that you use every day that
  makes your life easier. Turn to a neighbor and
  share.
• How would your life be different without this
  invention?

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Early Industrial Development Textile Mills

• Largest industry at the time was textile
  (fabric).
• Even though the textile industry was the largest
  business, factories were still small.

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Textile Mills

• Samuel Slater Rhode Island System
• First to use steam-driven power looms
• Relied on sole proprietorship or partnership form
  of ownership initially.
• Relied on family for labor with growth had to
  hire professional managers.
• Vertically integrated operations forward and
  backward.

Samuel Slater
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Textile Mills

• Francis Lowell
• Used water-power looms.
• Hired non-family supervisors managers.
• Relied on adult female labor.

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Textile Mill at Pawtucket, Rhode Island
Mill present day reconstruction
Depiction of Mill
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The American System of Manufactures

• Interchangeable parts previously confined to
  making muskets and revolvers.
• The Springfield (MA) Armory was an early factory
  prototype.
• 250 employees largest factory in the U.S. until
  after the Civil War.
• Labor was more specialized.
• Uniform standards promoted interchangeability of
  parts.

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The Railroads Pioneering in U.S. Management
Courtesy of Association of American Railroads
(AAR)

• First big business in the U.S. developed c.
  1830.
• Started the transportation revolution.
• Change from local markets to national markets.
• How did railroads change industry and trade? How
  did they influence the location of cities?

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Railroads Need Laborers

• Built by immigrant labor (Irish in east and
  Chinese in west)
• Where did these immigrants call home?
• Complete the Immigrant Experience
• How many generations does it take to become an
  American?

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Inventive and Innovative Impulses

• Railroads made travel possible and pleasurable
  fostered a retailing revolution.
• Telegraph and telephone aided growth of commerce
  and transportation through communication.
• Other industries developed and grew
• Electrical
• Mass marketers
• Sewing machines
• Harvesters
• Steel

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Industrial Growth and Systematic Management

• How did entrepreneurs take advantage of the
  emerging industries?
• What do you think could be the next emerging
  industry that could make you wealthy?
• Who benefits from these emerging markets? Who
  suffers?
• Now lets look at one who benefitted.

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Andrew Carnegie (1835-1919)Steel Industry

• Used the new Bessemer furnace technology to begin
  vertically and horizontally integrating his firm
  in the steel industry.

Andrew Carnegie Courtesy of The General
Libraries, The University of Texas at Austin.
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Andrew CarnegieSteel Industry

• Vertical and Horizontal control of the market to
  drive down prices for consumers.
• Preview Txt. 155, 159, 161
• Agree/disagree- is Carnegies control of the
  entire steel industry good or bad?

Andrew Carnegies his first job was in a textile
mill like this.
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Working Conditions

• Big business often focused on the bottom line-
  profit.
• How did this effect workers?
• Read excerpt from the Jungle (Upton Sinclair).

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Social Darwinism vs. social Gospel

• Darwinists would argue that the rich are rich
  because they are smarter, more educated, better
  able to adapt to change. The poor are poor
  because they are not able to adapt- they deserve
  it.

• The Social Gospel says that big business and
  circumstances keep people down. We need to help
  the poor and less fortunate.
• WWJD

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Summary

• From independence to 1860, the U.S. grew and
  developed industry.
• Period was critical to development of the modern
  economy (ethics, perceptions, values).
• Railroads and the telegraph allowed firms to grow
  exponentially (VERY LARGE).
• Managers were required for large, complex
  organizations.
• Quality of life for people was improving.

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Additional Internet Resources

• Academy of Management Management History
  Division Websitehttp//www.aomhistory.baker.edu/d
  epartments/leadership/mgthistory/links.html
• List of Internet Resources compiled by Charles
  Booth http//www.jiscmail.ac.uk/files/MANAGEMENT-H
  ISTORY/links.htm
• Western Libraries Business Library Biographies
  of Gurus
• http//www.lib.uwo.ca/business/gurus.html
• Developments from Ancient History
  http//www.accel-team.com/scientific/index.html
• Max Weber http//www.faculty.rsu.edu/felwell/The
  orists/Weber/Whome.htm
• Nicolo Machiavelli Medieval Source Book The
  Prince 1513
• http//www.fordham.edu/halsall/basis/machiavelli-
  prince.html
• John Locke Biography
• http//www.blupete.com/Literature/Biographies/Phi
  losophy/Locke.htm
• Adam Smith http//socserv2.socsci.mcmaster.ca/ec
  on/ugcm/3ll3/smith/
• James Watt by Carnegie http//www.history.rochest
  er.edu/steam/carnegie/
• Developments during the Industrial Revolution
  http//www.accel-team.com/scientific/scientific_0
  1.html

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Additional Internet Resources

• The Robert Owen Museum http//robert-owen.midwale
  s.com/
• Charles Babbage Institute
• http//www.cbi.umn.edu/exhibits/cb.html
• Andrew Ure - The Philosophy of the Manufacturers
  1835 http//www.fordham.edu/halsall/mod/1835ure.h
  tml
• Charles Dupin Biographyhttp//www-groups.dcs.st-a
  nd.ac.uk/history/Mathematicians/Dupin.html
• Cyrus McCormick - Biography
• http//www.vaes.vt.edu/steeles/mccormick/bio.html
  
• Samuel F.B. Morse
• http//memory.loc.gov/ammem/atthtml/mrshome.html
• Henry R. Towne Address delivered at Purdue
  University (1905)
• http//www.cslib.org/stamford/towne1905.htm
• Andrew Carnegie http//www.americaslibrary.gov/cg
  i-bin/page.cgi/aa/carnegie
• The Rockefellers PBS Documentary
• http//www.pbs.org/wgbh/amex/rockefellers/
• The Samuel Gompers Papers
• http//www.history.umd.edu/Gompers/index.html

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End of Part One