1. http://www.hulu.com/watch/25218/billy-madison-industrial-revolution-puppyhttp://www.hulu.com/watch/25218/billy-madison-industrial-revolution-puppy What makes you think the host was once a high school teacher? The Industrial Revolution in the United States

2. 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.

3. Inventions Mother Necessity Video

4. 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?

5. 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.

6. 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

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

8. Textile Mill at Pawtucket, Rhode Island Mill – present day reconstruction Depiction of Mill

9. 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.

10. The Railroads: Pioneering in U.S. Management • 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? Courtesy of Association of American Railroads (AAR)

11. 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?

12. 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

13. 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.

14. 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.

15. Andrew CarnegieSteel Industry • Vertical and Horizontal control of the market to drive down prices for consumers. • Preview Txt. 155, 159, 161 • Agree/disagree- is Carnegie’s control of the entire steel industry good or bad? Andrew Carnegie’s his first job was in a textile mill like this.

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

17. 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

18. 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.

19. Additional Internet Resources • Academy of Management – Management History Division Websitehttp://www.aomhistory.baker.edu/departments/leadership/mgthistory/links.html • List of Internet Resources compiled by Charles Boothhttp://www.jiscmail.ac.uk/files/MANAGEMENT-HISTORY/links.htm • Western Libraries Business Library – Biographies of Gurus • http://www.lib.uwo.ca/business/gurus.html • Developments from Ancient Historyhttp://www.accel-team.com/scientific/index.html • Max Weber http://www.faculty.rsu.edu/~felwell/Theorists/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/Philosophy/Locke.htm • Adam Smithhttp://socserv2.socsci.mcmaster.ca/~econ/ugcm/3ll3/smith/ • James Watt by Carnegiehttp://www.history.rochester.edu/steam/carnegie/ • Developments during the Industrial Revolutionhttp://www.accel-team.com/scientific/scientific_01.html

20. Additional Internet Resources • The Robert Owen Museumhttp://robert-owen.midwales.com/ • Charles Babbage Institute • http://www.cbi.umn.edu/exhibits/cb.html • Andrew Ure - The Philosophy of the Manufacturers 1835http://www.fordham.edu/halsall/mod/1835ure.html • Charles Dupin Biographyhttp://www-groups.dcs.st-and.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/cgi-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

21. End of Part One