People Innovation Excellence

Preparing Human Factor in Industrialization Era

Ami Fitri Utami, SE., MSM

The rise of scientific management affected numerous of organizations in previous era both in the field of personnel management and the ethic on industry. This is happened with the cause of the spread of scientific management to many areas which causes a traditional and more intuitive base of organizational practices into a more empirical and rational ones. In the previous era, the view of personnel management has dual heritage which consisted of the view of personnel as welfare work, and the application of scientific management to manage the personnel.

In the latter of 19th century the US had the rapid growth of its’ economy. Due to that event, the unprecedented number of human resources in transportation and manufacture has aroused. In this case, most small workshop then moved into grand scale manufacture which will also affect the relations between managers and workers. In order to face the relationship challenge between managers and workers, most organization then form a welfare work which aimed to improve the lives of workers both at the job and off the job. The first welfare work was established at The National Cash Register Company in 1897. Most of the jobs are filled by women.

Moreover, in 1910 the phrase of “welfare work” then began to decline and substituted with “employment management”. While the welfare work mostly consisted of “Gospel-ish” stream, the “employment management” viewed as a better approach by increasing its’ analysis on managing people.

All in all, when the industrialization era aroused the needs of scientific management in order to manage the enterprises in a more rational way was also aroused. In this case, the scientific management also focused not only in the efficiency but also the human factor.

Reference : Daniel A. Wren 5th ed, The History of Management Thought.


Published at :
Written By
ami fitri utami, SE., MSM
LS Business & Organization | School of Business & Management BINUS University

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