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A Brief Analysis of The Steel Industry

analytical Essay
1473 words
1473 words
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Steel Industry

In the early part of this century was a time when industry was booming with growth around the installation of major railroads. With this growth came the transatlantic cable, the telegraph, and a whole lot of steel. Steel would be needed in the construction of these new transportation systems and communications were now possible between businesses and industries. (Wren, 2005)

This paper will first discuss the development of the steel industry. Next, it will examine steel, and in the impact it had on the transportation industry. Finally, it will discuss systematic management practices of this time and how they gave birth to the scientific approach that is still in use today.

Steel

The steel industry was needed for almost everything. Alfred D Chandler Jr. could see the potential market value early on.

According to Wren:

Chandler traced the history of various firms and delineated four phases in the history of the large U.S. enterprise:

1. The initial expansion and accumulation of resources

2. The rationalization of the use of resources

3. The expansion into new markets and lines to help assure the full use of resources;

4. The development of a new structure that rationalized the renewal of growth.

For many companies, the phases started and ended at different times, depending on the state of technology and the firm’s ability to react and capitalize on market opportunities. Chandler further noted two facets of industrial growth:

1. Horizontal growth from 1879 to 1893- which occurred when producers of similar fields combined through mergers, pools, or trusts to gain economies of scale, and

2. Vertical growth from 1898 to 1904- which occurred when firms moved backward or forward in ter...

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English Online. (Ed.). (n.d.). The Industrial Revolution. Retrieved April 23, 2012, from English-online.com Web site: http://www.english-online.at/history/industrial-revolution/industrial-revolution-manufacturing.htm

History.com. (Ed.). (n.d.). Andrew Carnegie. Retrieved April 23, 2012, from History.com Web site: http://www.history.com/topics/andrew-carnegie

Kernsanalysis.com. (Ed.). (n.d.). An Overview of Management. Retrieved April 24, 2012, from Fredrick Taylor Scientific Management Web site: http://www.kernsanalysis.com/sjsu/ise250/history.htm

Vectorstudy.com. (Ed.). (2008). Henri Fayol Management Gurus. Retrieved April 25, 2012, from Vector Study.com Web site: http://www.vectorstudy.com/management_gurus/henri_fayol.htm

Wren. (2005). The History of Management Thought (5th ed.). Danvers, MA: Wiley & Sons. (Original work published 1976)

In this essay, the author

  • Explains that the early part of this century was a time when industry booming with growth around the installation of major railroads. with this growth came the transatlantic cable, the telegraph, and steel.
  • Analyzes how alfred d. chandler jr. could see the potential market value early on. he traced the history of various firms, rationalized the use of resources, and expanded into new markets.
  • Explains that chandler noted two facets of industrial growth: 1. horizontal growth from 1879 to 1893- which occurred when producers of similar fields combined through mergers, pools, or trusts to gain economies of scale.
  • Analyzes how chandler understood that companies needed to have a minimum efficient scale. carnegie later adopted england's method of iron production.
  • Explains how daniel mccallum organized and managed transportation railroads. he organized a hierarchy of management and subordinates by identifying each job and job description and hiring specifically to fill each position.
  • Describes wren's principles of management, including good discipline, detailed job descriptions, accurate reporting of performance, pay, and promotion based on merit, a clearly defined hierarchy of authority of superiors and the enforcement of personal responsibility and accountability throughout the organization.
  • Recommends a proper division of responsibilities, adequate authority, prompt reporting of dereliction of duty, and daily reports and checks that will not embarrass principle officers nor lesson their influence with their subordinates.
  • Argues that mccallum's systematic management style was spreading through different industries as a practice.
  • Explains that taylor advocated the systematic training of workers in "the one best practice" rather than allowing them personal discretion in their tasks. taylor believed that the workload would be evenly shared between the workers and management
  • Explains how the ideas that were put into motion so many years ago have evolved into management styles of today. henri fayol proposed that there are five primary functions of management.
  • Analyzes how max webber developed a set of principles for an "ideal" bureaucracy, which included fixed and official jurisdictional areas, firmly ordered hierarchy of super and subordination, thorough and expert training, official activity taking priority over other activities.
  • Explains that management is an ever-evolving science which has been studied since the industrial revolution. the steel industry was probably the biggest raw material which was integrated throughout every other major industry in the world.
  • Cites american experience, andrew carnegie, and english online. the industrial revolution. retrieved april 23, 2012.
  • Cites history.com, andrew carnegie, and fredrick taylor scientific management. henri fayol management gurus.
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