Capitalism and Management in the 20th/21st Century

GMGT 1010

The course code for this lecture on Capitalism and Management.

Capitalism

An economic and political system where a country's trade and industry are controlled by private owners for profit, rather than by the state.

Management

The process of dealing with or controlling things or people within an organization.

Carl Sagan

A renowned astrophysicist quoted for stating: 'You have to know the past to understand the present.'

Technological breakthroughs (Early 1900s)

Significant advancements in electrical power, automobiles, and the gasoline engine that transformed society and industry.

Electrical power

A key technological breakthrough in the early 1900s that facilitated industrial and societal change.

Automobiles

A key technological breakthrough in the early 1900s, leading to significant industrial expansion and societal shifts.

Gasoline engine

A key technological breakthrough in the early 1900s that powered automobiles and other machinery.

Automobile industry explosion

Rapid growth and proliferation of automobile manufacturing establishments in the early 20th century.

Urbanization

The effect of automobile technology leading to a movement of populations from rural areas to cities.

Farm to city shift

A sociological effect of new technologies like the automobile, where people migrated from agricultural areas to urban centers for work.

Interdependence (economic)

An effect of new technologies and specialization, causing different regions or sectors to become reliant on one another.

Specialization

Increased in the early 1900s due to technology, leading to greater economic interdependence.

Repetitive work

A shift in the nature of work, characterized by tasks such as assembly line production, emerging in the early 1900s.

Assembly line production

A manufacturing method where products move along a line and different workers perform specific, repetitive tasks.

Mass production

A manufacturing technique that greatly reduced the time required to assemble products, seen in the early 1900s automobile industry.

Economies of scale

Advantages gained by increased production, allowing for lower per-unit costs, evident in early 1900s mass production.

Rise of Big Business

A change in competition in the early 1900s marked by the growth of large corporations.

Corporation

An emerging organizational structure in the early 1900s that led to the rise of big business.

Monopolies (threat of)

A concern arising with the emergence of big business where single entities could control markets.

Antitrust legislation

Laws enacted to prevent the formation of monopolies and ensure fair competition, arising in response to big business in the early 1900s.

Classical era (management)

The period from 1910-1930, focusing on organizing and efficiency in management.

Organizing (management function)

Ensuring tasks are assigned and an organizational structure is created that facilitates goal achievement.

Micro focus (management)

A school of thought in the classical era concentrating on designing specific jobs for efficiency.

Macro focus (management)

A school of thought in the classical era concentrating on how all different jobs fit together in an organization.

One best way

A core principle of classical management, particularly scientific management, suggesting there's a single optimal method for tasks.

Scientific Management

A micro approach to management, pioneered by Frederick W. Taylor, focused on optimizing efficiency through empirical study.

Frederick W. Taylor

The originator of Scientific Management (Taylorism), focused on optimizing job design for efficiency.

Taylorism

Another name for Scientific Management, emphasizing efficiency and 'one best way' through time-and-motion studies.

Time-and-motion studies

A technique used in scientific management, often associated with Frank B. Gilbreth, to analyze and improve the efficiency of work tasks.

Frank B. Gilbreth

Known for his work on time-and-motion studies, a key aspect of the micro approach to management.

Bureaucracy (Max Weber)

A macro approach to management emphasizing a structured, hierarchical organization with clear rules and technical qualifications.

Max Weber

The proponent of the bureaucratic model of organization, emphasizing division of labor, rules, and hierarchy.

Division of labour (Weber)

A feature of ideal bureaucracy where tasks are broken down and assigned to specialized individuals.

Rules and regulations (Weber)

A feature of ideal bureaucracy, providing standardized procedures and guidelines for operations.

Hierarchy of authority (Weber)

A feature of ideal bureaucracy, establishing a clear chain of command and levels of supervision.

Technical qualifications (Weber)

A feature of ideal bureaucracy, where employment and promotion are based on demonstrated skills and knowledge.

Impersonality (Weber)

A feature of ideal bureaucracy, ensuring that decisions are made based on rules and merit, not personal relationships.

Noam Chomsky

A linguist and political activist whose reading of Adam Smith highlighted potential negative impacts of extreme division of labor.

Adam Smith

An economist discussed in the context of the division of labor, with Chomsky offering a critical interpretation of his views.

Unemployment (early 1900s)

Remained high despite technological progress and industrial growth, contributing to social unrest.

Low wages (early 1900s)

A characteristic of the early 20th century, where worker compensation was minimal, exacerbating social issues.

Working conditions (early 1900s)

Few laws were in place to regulate these, leading to poor and unsafe environments for workers.

Winnipeg General Strike of 1919

A major labor dispute in Canada, sparked by a confluence of social and economic factors.

Precipitating factors (WGS)

Issues like large population returning from WW1, influx of immigrants, low wages, high unemployment, and inflation that led to the strike.

World War 1

Its end led to a large population returning to Winnipeg, contributing to the precipitating factors of the general strike.

European immigrants (WGS)

A large influx into Winnipeg heightened competition for jobs and contributed to social tensions before the strike.

Inflation (WGS)

A rising cost of living that, combined with low wages, contributed to worker unrest before the 1919 strike.

May 15th, 1919

The date when approximately 30,000 workers walked off their jobs in Winnipeg, initiating the General Strike.

30,000 workers (WGS)

The number of private and public employees, including firefighters and police, who participated in the Winnipeg General Strike.

Communist overthrow (fear of)

The Canadian government's and media's interpretation of the Winnipeg General Strike, fearing a 'Bolshevism' spread.

Bolshevism Invades Canada

A New York Times headline reflecting the fear that the Winnipeg General Strike was a communist uprising.

Bloody Saturday

A violent day during the Winnipeg General Strike when RCMP intervened, resulting in deaths and injuries.

Winnipeg Mayor Charles Frederick Gray

The mayor who called in the RCMP during the Winnipeg General Strike, leading to 'Bloody Saturday.'

RCMP (Winnipeg Strike)

The Royal Canadian Mounted Police, called in during the Winnipeg General Strike, which resulted in violence.

June 26th, 1919

The date when the Winnipeg General Strike was officially called off.

The Roaring Twenties

A period following WW1 characterized by economic prosperity, increasing population, and rising wages.

Herbert Hoover

US President who, in Nov. 1928, optimistically declared America to be near 'the final triumph over poverty.'

Poverty (banishment of)

Herbert Hoover's optimistic prediction in 1928, believing America was close to eliminating poverty.

Stock market crash

The collapse of stock prices in 1929 that marked the beginning of the Great Depression.

Great Depression

A severe worldwide economic depression that took place during the 1930s.

Bubble burst

Refers to the collapse of the stock market bubble in 1929, leading to the disappearance of billions of dollars in wealth.

$30 billion dollars of wealth (disappeared)

The estimated amount of wealth lost during the stock market crash of 1929.

GDP reduction (GD)

Gross Domestic Product was reduced by half in the United States between 1929 and 1933 during the Great Depression.

Unemployment (GD)

Soared to approximately one-quarter of the workforce during the Great Depression.

Speculation (GD cause)

A cause of the Great Depression, referring to engaging in risky financial transactions in an attempt to profit from short-term fluctuations.

Weakness on the farm (GD cause)

A cause of the Great Depression, characterized by inelastic demand for agricultural products leading to low prices and farmer struggles.

Inelastic demand (farm)

A characteristic of demand for farm products, where changes in price do not lead to proportional changes in quantity demanded, contributing to economic weakness.

Weakness in the factory (GD cause)

A cause of the Great Depression, related to technological advancements and their impact on employment.

Income inequality (GD cause)

A significant disparity in wealth distribution that was a contributing factor to the Great Depression.

Stock market boom

The period preceding the 1929 crash, characterized by a huge influx of people investing in the stock market.

The New Deal

A series of programs and reforms enacted in the United States by President Franklin D. Roosevelt in response to the Great Depression.

Public sector (rise of)

The expansion of government's role in the economy during the New Deal era.

Franklin D. Roosevelt

The 32nd U.S. president, who initiated the New Deal in 1933 in response to the Great Depression.

Government intervention (New Deal)

Policies and programs enacted by the U.S. government to regulate markets and address the economic crisis.

Glass Stegall Banking Act

A New Deal measure that separated commercial and investment banking activities to prevent financial instability.

Wagner Act

A New Deal reform that established the rights of workers to organize and bargain collectively.

Social Security Act

A New Deal program that created a system of old-age benefits, unemployment insurance, and aid for dependent mothers and children.

Federal Housing Authority

A New Deal agency that promoted homeownership by insuring mortgages.

National Recovery Act (NRA)

A New Deal program aimed at industrial recovery, establishing codes of fair competition.

National Banks (rise of)

The growing influence and role of central banks, such as the Federal Reserve, during the New Deal era.

The Federal Reserve

The central banking system of the United States, whose role expanded during the New Deal period.

Monetary policy

Government actions, such as raising interest rates or managing the money supply, to influence economic activity.

Raising interest rates

A tool of monetary policy used to slow down the increase in the supply of money.

Public spending

Government expenditure on goods and services, used as a tool of monetary policy during the New Deal era.

Human era (management)

The period from 1930-1950, focusing on leading and the interpersonal aspects of management.

Leading (management function)

Relating with others so that their work efforts lead to the achievement of organizational goals.

Interpersonal aspects of management

The focus of the human era, emphasizing relationships and social factors in the workplace.

Hawthorne effect

A phenomenon observed by Mayo & Ro