Summary of Session. Administrative Technology Before the Computer. Early American Business. The Rise of Big Business. Rise of the Professional Manager

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1 Summary of Session Administrative Technology Before the Computer I303 Fall 2003 Thomas Haigh Session 2: 03-Sept Outline of the Rise of Big Business Early Office Technology Machines Sales Use Managerial Issues Office Management Movement I303 - Session 2 - Thomas Haigh 1 I303 - Session 2 - Thomas Haigh 2 Early American Business Until after Civil War Almost all small firms Mostly manufacturing, single factory Organized as partnerships, not corporations Management was less formal No income taxes, little personnel management Top management usually owners, often family I303 - Session 2 - Thomas Haigh 3 The Rise of Big Business Businesses worth more than $10 million 1860: : 300 Railroads were the first big business Consolidation & Mergers in 1880s & 1890s Iron & Steel, Oil, Gun powder (DuPont), Soap A little later, the first chain stores (Woolworths) Huge growth in insurance (admin intensive) I303 - Session 2 - Thomas Haigh 4 Rise of the Professional Manager Larger firms need hierarchy Levels of salaried executives Move through ranks as career progresses First management schools around 1900 Scientific Management is fashionable Frederick W. Taylor Engineer, like other early consultants & gurus Mechanistic, systematic view of work I303 - Session 2 - Thomas Haigh 5 I303 - Session 2 - Thomas Haigh 6

2 Mass Production Intergration of business peaks with Model-T Ford First large scale assembly line By 1920s, entire sequence from ore to cars centralized in River Rouge plant I303 - Session 2 - Thomas Haigh 7 I303 - Session 2 - Thomas Haigh 8 File Cabinets Early Office Technology Hot new technology around 1900 Early business bound letters into books Ribbons, boxes sometimes used Major innovations vertical file (still used today) index card card files The high-tech wonder solutions of the era! I303 - Session 2 - Thomas Haigh 9 I303 - Session 2 - Thomas Haigh 10 I303 - Session 2 - Thomas Haigh 11 I303 - Session 2 - Thomas Haigh 12

3 when Man was emerging from primeval chaos and becoming conscious of the first glimmering or order he apparently took no thought of preserving a record of his achievements and possessions, or accumulating knowledge, beyond the drawing of crude and grotesque outlines of the things around which his world revolved. I303 - Session 2 - Thomas Haigh 13 The illustration shows clerks at work in an Assyrian government office On one corner of the desk appears a box of styles with which the characters were made on soft clay tablets... I303 - Session 2 - Thomas Haigh 14 Wellington Street West, Toronto - The Nerve Center of Modern Record Keeping Systems. The building itself is a model of modern construction and possesses what our ancestors apparently thought superfluous in commercial buildings, abundance of light and air. First used widely in 1890s First office job to be done largely by women With carbon paper, makes file copies easy The Typewriter I303 - Session 2 - Thomas Haigh 15 I303 - Session 2 - Thomas Haigh 16 The Adding Machine The Bookkeeping Machine 100% mechanical Some had extra features Subtract Print, etc. Cash register Basically adding machine plus drawer I303 - Session 2 - Thomas Haigh 17 Basically an adding machine with a typewriter I303 - Session 2 - Thomas Haigh 18

4 The Remington Automatic Air-Controlled Electric Carriage Return is the latest up-to-the-minute development in bookkeeping equipment. Dictating Machine (1900s) The Remington Automatic Lock Proof of Clearance is a lock-not a mere signal. As an accuracy check it is mechanical-and absolute. I303 - Session 2 - Thomas Haigh 19 I303 - Session 2 - Thomas Haigh 20 Claims Similar to Today Basically: purchase system and management becomes easy NOTE: idea of information system or information technology not used at the time. I303 - Session 2 - Thomas Haigh 21 I303 - Session 2 - Thomas Haigh 22 Automatic Results Guaranteed.Acme visible records force their owners to use the facts - profit by them, save money by them, stop losses before they get started. Acme always delivers what it promises. Its successful operation in your business will be automatic - as it has been in thousands of others. (Acme Visible Records advertisement, 1932) I303 - Session 2 - Thomas Haigh 23 Efficiency Concept Powerful True of US in general at the time early 20 th century often called Progressive Era 1910s saw fad for Scientific Management government drive against waste Used to sell all kinds of things Salespeople as expert consultants or scientists I303 - Session 2 - Thomas Haigh 24

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6 It is new and scientifically correct in every principle. Employers are astonished at the great increases in work which users accomplish. Scientifically designed after years of experimenting. Statistics show that this amazing chair enables employees to double the work done ordinarily every day. I303 - Session 2 - Thomas Haigh 31 I303 - Session 2 - Thomas Haigh 32 Office Management First attempt to separate expertise in administrative systems and technology from general management Happened more in theory than practice National Office Management Association, 1919 Upgrading of job of head clerk to include More scientific management More technology Design of administrative systems Top management status I303 - Session 2 - Thomas Haigh 33 I303 - Session 2 - Thomas Haigh 34 The Executive Office Manager If coordination be considered as the major function of management, and if this coordination requires clerical mechanisms [then]... the problem of management through them constitutes in itself a major function and is unquestionably vital to the future of business. Office Management Textbook, 1925 I303 - Session 2 - Thomas Haigh 35 I303 - Session 2 - Thomas Haigh 36