Module 3: Industrial Revolution

Objective: To present the historical, social, economic, political, and technological perspectives and
context out of which modern management sprang

1. What are the implications of the Industrial Revolution to the economic, social, political, and
cultural life of the people?

Life Impact Questions?

Economic -Economic shift from commerce to industry (from -Have the Philippines moved from being
landlords and being merchants to
capitalists to industrialists) resulted in broader becoming industrialist?
distribution of wealth, especially among the -Has wealth been distributed?
bourgeoisie, the new middle class
Political -Political changes reflected shift of economic -Has industrialization really happened in
the Philippines?
power from traders to producers of goods. -Has industries moved out because of the
Hence new laws and state policies reflected the cost of power?
-Has our laws or the implementation of
economic interests of the power holders (the the laws encourage investments in
industrialist) industries? Transparency?
Social -Sweeping social changes – growth of cities, -Has labor unions succeeded in the
Philippines?
development of working class movements, and
emergence of new patterns of authority
Cultural -Cultural transformation of broader order. The
worker acquired new and distinctive skills
different from craftsmen. Instead of craftsman
with hand tools, he became a machine operator,
subject to factory discipline
-Psychological change – man’s confidence in his
ability to use resources and to master nature was
heightened because of the use of scientific
methods with more predictable results.

2. What are the 8 reasons why England emerged as the birthplace of Industrial Revolution?

-Ready capital Why do we still need FDI?

-Sound monetary system

-Disappearance of serfdom and guild system Power distance?

-Market in the growing colonies Globalization?

-Mass production Tinge system?

-Merchant marine for overseas trade

-Propitious political system Transparency?

-Availability of raw materials Why do we oppose mining?

3. Why is the technological, political, economic, social, and cultural environment to business and
industry important?

Environment Importance Do we have what it takes?

Technological -The use of new basic materials: iron -Do we respect patents?

1
environment provides and steel allowed business to
innovation that can manufacture engines and new sources
adequately respond to of power
market demand -The use of new energy sources: coal,
steam engine, electricity, petroleum,
and internal combustion engine
-the invention of new machines:
spinning jenny, power loom
-the new organization of work:
factory system
-the development in transportation
system and communication: steam
locomotive, steamship, automobile,
airplane, telegraph, and radio
-the increasing application of science
to industry
-massive use of natural resources and
mass production of manufactured
goods
Political environment -The right to life, liberty, and property; -What would you say is the political
environment in the Philippines?
determines whether -The right to due process and freedom -Do we respect the laws and rules?
there will be a stable from illegal persecution; -Do we respect the rights of other citizens
(squatters)
environment in which -Sanctity of contracts and a patent law
entrepreneurs could -Transparency gave people a level
compete and do playing field
business
Economic -Increased demand due to population -What is your comment on the RH Bill
debate between the government and the
environment enables growth Catholic Church?
entrepreneurs to -Increasing demand required -What countries do not have natural
resources and yet are highly
provide the needs of improvements in the processes of industrialized?
society manufacturing or the production of
goods.
-Accumulated capital and wealth
-Banking and insurance services were
available
-Rich natural resources
-Adequate transport system
-Removal of custom barriers inherited
from the preceding age of
mercantilism
Social environment -Ability to improve oneself and gain -Does our environment encourage self-
improvement?
determines whether social mobility -What can you say about our culture of
there is an incentive to -Incentive to savings and pakikisama, utang na loob, and hiya?
-How much is your savings in percent per
improve one’s accumulation of wealth and capital month/year? Why?
standing in society
through the means of
production

2
 Cultural environment -Protestant ethic of hard work, -What is the Catholic ethic? What is the
Pilipino ethic?
determines how savings, sacrifice, honesty, trust -Do we love to work more than we love
people live and to have fun?
-Do we use our time wisely? Are we
therefore would punctual in our appointments?
encourage people to
become more
productive

4. From the comparative study of the industrial development of England and France, what are
some of the reasons why England developed earlier than France?

Reasons for France England Philippines

development
Investment of -While France had much -Great Britain’s capital was -Where did our rich people
put their money –
money capital, it was diverted smaller but rapidly Switzerland?
to forced loans to the increasing through
State, upkeep of a agricultural improvements
wasteful royal court and and commercial expansion
bureaucracy, and war and it was made available
expenditures as cheap capital for
industrial investment.
Factory system France had the guild and The British replaced the -Why couldn’t we produce
something that the world
apprentice system that guild system with the would be willing to buy?
made hand-made factory system that may -Is our comparative
advantage in the
production expensive produce coarse goods but entertainment system?
and slow. sold at low prices.
Market France has a bigger The British may have a -We now have the global
market
population that Britain smaller population but it
but it lost most of its has a larger market in their
colonies in the 18th colonies (monopoly).
century (monopoly)
Transportation France only has half the The British had a great Why is it more expensive to
ship goods from Mindanao
transportation and road merchant marine for than to ship goods from the
network of England. overseas trade and an US?
extensive canal and road
system for inland
transportation.
Political system The Bourbon monarchy The British had slightly What is the focus of our
political system?
of France constantly greater opportunities than
frustrated the French the French because of the
trading classes more propitious English
political system and scale of
social values which was
constantly devoted to the
expansion of commerce and
the prosperity of agriculture

3
 Natural The French resources The raw materials used by -We have rich natural
resources were less readily Britain is more readily resources but the CBCP
seems to fear mining
available available

5. Explain how the Industrial Revolution resulted into the development of modern management.

Henry Towne advocated the study of -Helped us focus on a systematic way of

management as a separate discipline handling resources
Frederick Taylor introduced the use of the -Made us conscious of establishing standards
scientific method through time and motion to arrive at the best possible method of
study working
Adam Smith introduced specialization -made it possible for us to increase
productivity through the use of job
specialization
Henry Fayol divided the functions of -made it easier for us to today to learn the
management process of management
The use of power driven machineries which -led to the production of better and more
was too cumbersome, too complicated and too machines for mass production; ushered in
expensive to be owned and used by peasants factory discipline due to the use of power
and artisans. driven machines
The legalization of the principle of limited We are able to build larger operation today
liability in Britain in 1850 which led to the due to the ability to raise large capital through
development of industrial securities and stock ownership with the expectation of
corporate ownership. receiving dividends or increasing asset value
Max Weber’s principles of bureaucracy We can operate large organization because of
the lessons learned from him

6. Some Industrial Timelines

-1663 Edward Somerset invented the “atmospheric engine”
-1698 Thomas Savery invented the “first practical steam pump”
-1699 Denis Papin demonstrated the principle that steam could move a piston in a cylinder
-1670 Abraham Darby reduced coal into coke by burning off the coal gas in an oven
-1712 Thomas Newcomen developed the first workable steam-powered engine
-1730 The seed drill was invented by Jethro Tull
-1733 John Kay invented the “flying shuttle”
-1740 Crucible steel-making was discovered by Benjamin Huntsman
-1759 The First Canal Act was passed by the British Parliament
-1763 The spinning jenny was invented by James Hargreaves
-1764 Pierce Trosanquet developed a new method of road building
-1765 James Watt produced a more reliable and efficient version of the Newcomen engine
-1769 Richard Arkwright patented the “water frame” which produced a strong well-twisted
yarn suitable for the warp of cotton goods
-1774 John Wilkinson developed “boring mill” which permitted boring of accurate cylinder
-1779 The spinning mule was developed by Samuel Cropton
-1783 Henry Cort invented the “pudding” which stirred molten pig iron to burn off impurities
and a rolling mill with grooved rollers which simplified the production of wrought iron
-1785 Rev. Edmund Cartwright went to mechanize the weaving operation

4
-1785 Techniques of mass production of interchangeable parts were developed by Eli Whitney
-1793 The problem of supplying cotton fast enough for the textile industry was solved by Eli
Whitney’s cotton gin
-1794 Henry Maudslay’s “slide rest” facilitated the accurate cutting of metals and the screw
making machine possible
-1797 The first true industrial lathe was invented by Henry Maudslay and David Wilkinson
-1802 The first electric battery capable of mass production was designed by William
Cruickshank
-1813 Industrial employment overtook agricultural employment in England
-1825 The first regular railway services started between Stockton and Darlington
-1826 The Journeymen Steam Engine Fitters, the first industrial union was established in
Manchester
-1830 The US takes the lead in the application of machinery to agriculture with the invention
of the steel-blade plow-share and the reaper
-1833 The first effective Factory Act was passed in Britain regulating child labor in cotton mills
-1846 Repeal of the Corn Law in Britain reduced agricultural prices
-1856 Bessemer process burned off carbon and other impurities in molten pig iron by a
powerful blast of air
-1863 Sewing machines and knitting machines were invented