Management Innovators: The People and Ideas that Have Shaped Modern Business PDF
Preview Management Innovators: The People and Ideas that Have Shaped Modern Business
Management Innovators This page intentionally left blank M A N A G E M E N T I N N O V A T O R S The People and Ideas That Have Shaped Modern Business Daniel A. Wren The late Ronald G. Greenwood New York Oxford University Press 1998 Oxford University Press Oxford New York Athens Auckland Bangkok Bogota Bombay Buenos Aires Calcutta Cape Town Dar es Salaam Delhi Florence Hong Kong Istanbul Karachi Kuala Lumpur Madras Madrid Melbourne Mexico City Nairobi Paris Singapore Taipei Tokyo Toronto Warsaw and associated companies in Berlin Ibadan Copyright © 1998 by Oxford University Press, Inc. Published by Oxford University Press, Inc. 198 Madison Avenue, New York, New York 10016 Oxford is a registered trademark of Oxford University Press All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior permission of Oxford University Press. Library of Congress Cataloging-in-Publication Data Wren, Daniel A. Management innovators : the people and ideas that have shaped modern business / Daniel A. Wren, Ronald G. Greenwood, p. cm. Includes bibliographical references and index. ISBN 0-19-511705-0 1. Businesspeople—United States—biography. 2. Executives- United States—Biography. 3. Industrial management—United States— History. I. Greenwood, Ronald G. II. Title. HC102.5.A2W73 1998 97-30036 T 658 .0092'273—dc21 [B] Catalogs and Counters: A History of Sears, Roebuck and Company by Boris Emmet andJohnE.Jeuck/p. 248, line 20, p. 249, line 35, p. 339, line 31, and p. 340, line 15. Copyright © 1950. Reprinted by permission of the University of Chicago Press. The Human Side of Enterprise by Douglas McGregor/p. 33, line 5, p. 34, line 23, p. 47, line 17, and p. 48, line 14. Copyright © 1960. Reprinted by permission of the MacGraw Hill Companies. Leadership and Motivation: Essays of Douglas McGregor by Douglas McGregor, Warren G. Bennis, Edgar S. Schein, and Carolina McGregor/p. 125, line 13 and line 29. Copyright © 1966. Reprinted by permission of MIT Press. "Happiness and Unhappiness: A Brief Autobiography," by Frederick I. Herzberg, in Management Laureates: A Collection of Autobiographical Essays, Arthur G. Bedeian (ed.)/ p. 5, line 23 and p. 5, line 40. Copyright © 1993. Reprinted by permission of the JAI Press. 9 8 7 6 5 4 3 2 1 Printed in the United States of America on acid-free paper To the family, friends, colleagues, and students of Ronald Guy Greenwood This page intentionally left blank C O N T E N T S Preface ix Introduction: A Revolution in Industry 3 I . B U I L D I N G A M E R I C A N B U S I N E S S E N T E R P R I S E 1. Inventors 9 Eli Whitney 10 Thomas Alva Edison 16 2. Makers 25 Cyrus H. McCormick 25 Andrew Carnegie 33 Henry Ford 41 3. Selers 50 Alexander T. Stewart 51 Richard W. Sears 58 4. Movers 69 James J. Hill 72 Edward H. Harriman 78 5. Comunicators 90 Samuel Finley Breese Morse 91 Ezra Cornell 94 Alexander Graham Bell 98 6. Financiers 105 Jay Gould 107 J. Pierpont Morgan 120 I I . O R G A N I Z I N G A N D M A N A G I N G T H E B U S I N E S S E N T E R P R I S E 7. Working Smarter 13 Frederick W. Taylor 134 Lillian and Frank Gilbreth 140 Yoichi Ueno 148 8. Organizers 15 William C. Durant 156 Alfred P. Sloan Jr. 158 Chester I. Barnard 163 9. Motivators 170 Elton Mayo 171 Abraham H. Maslow 177 Frederick Herzberg 182 10. Leaders 190 Nicolo Machiavelli 191 Mary Parker Follett 194 Douglas M. McGregor 198 1. Quality Sekers 204 W, Edwards Deming 204 Joseph Moses Juran 213 Taiichi Ohno 218 12. Guru 26 Peter F. Drucker 226 Notes 237 Index 249 P R E F A C E Business occupies a central role in American life: historians analyze it, jour- nalists describe it, politicians debate it, labor unions bargain with it, novelists lampoon it, consumers buy from it, and detractors criticize its practices. Despite an occasional blemish, business furnishes everyone's sustenance in one way or another. Business touches every facet of our life, and its well- being is tied closely to the progress of the nation. From the corner mer- chants who bring us bread and milk to the multinational enterprise, our activities, our livelihood, and our appetites are served by business. Part of the fascination business holds for many is its presentation of an opportunity to span the turbulent waters of social class. That is the Ameri- can dream of the self-made person who rises from poverty to wealth and success. Another part of our fascination resides in our love-hate relationship with business. While business brings us our sustenance, it is feared, much as any authority figure is feared, for the power it wields over us. It is this split character of the American people—perhaps of all people—that has given business its unique flavor throughout history. Our goal is to portray a selection of individuals whose ideas have made a difference in the way we teach and practice business management. In select- ing these figures, we realize that it would be impossible to chronicle all of their activities; we could have chosen other individuals of equal stature as well. We have kept in mind an audience of contemporary managers, aspir- ing managers, and students of management who wish to gain a historical perspective on their profession by sketching the people and ideas that con- tributed to the formation of modern management. In Part I, we trace the beginnings of American enterprise in transporta- tion, manufacturing, communication, inventing, financing, and selling. These individuals set a pattern for others to follow as U.S. business enter- prise grew. With growth came the problems of how to work smarter, to
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