Deck 6: Industrial Growth and Systematic Management

Question 1

According to your authors, Carnegie's greatest philanthropy was to find a way to combine management and technology to create more jobs, reduce prices, expand markets, and advance industrial development.

Answer 1

True

Question 2

Henry R. Towne proposed that the American Society of Mechanical Engineers (ASME) create an economic section to act as a clearing-house and forum for shop management.

Answer 2

True

Question 3

The notions of limited charter powers and of management as trustee of the stockholders' property combined to form the nineteenth century legal basis regarding corporate philanthropy.
10.0

Answer 3

True

Question 4

Immigration provided a growing work force during America's 19th century and this increased supply of labor resulted in lower wages and declining real wages for the American worker.

Question 5

The American Federation of Labor was organized in 1886 as a federation of craft unions that concentrated on the pursuit of immediate economic gains for the workers on the job rather than on distant political reforms.

Question 6

Andrew Carnegie's monopolistic pricing power in the steel industry enabled him to increase the price of his products, for example, iron rails, during his period of ownership.

Question 7

Between 1860 and 1890, industrial unions in the U.S.A. were successful in starting because of low wages and declining real wages.

Question 8

Followers of the Social Gospel would be in favor of:

A) temperance in the use of alcohol
B) the prohibition of trade unions
C) profit sharing
D) all of the above
E) only a and c above

Question 9

Alfred D. Chandler's phases in the history of the large American enterprise included:

A) the initial expansion and accumulation of resources
B) the rationalization of the use of resources
C) the need for a managerial hierarchy
D) all of the above
E) only b and c above

Question 10

Andrew Carnegie's success in the steel industry was due to

A) his ability to integrate and speed up the "throughput."
B) his use of McCallum's management methods.
C) his cost accounting techniques.
D) all of the above
E) only a and b

Question 11

Vertical integration, moving forward or backward in the input-throughput-output stream, would be an example of:

A) Chandler's Phase 1, resource accumulation
B) Carnegie's strategy in the steel industry
C) McCallum's method of organization
D) both a and b above
E) both b and c above

Question 12

Labor violence in American industry in the late 19th century:

A) led to the formation of successful industrial unions
B) demonstrated that McCallum's principles were unsound
C) was directly related to falling wages and declining real wages
D) all of the above
E) none of the above

Question 13

The principles that formed the nineteenth century legal basis regarding corporate philanthropy included:

A) the notion of limited corporate charter powers
B) the notion of management as trustee of the stockholders' property
C) the notion of deductions from corporate gross income in order to reduce federal taxes
D) only a and b
E) only b and c

Question 14

One successful union organized in 1886 as a federation of craft unions was:

A) the AFL
B) the CIO
C) the Cordwainers
D) the teamsters
E) none of the above

Question 15

Inventors and innovators were referred to as "prime movers." Compare and contrast this period in American history with developments in other countries. What were the primary differences?

Question 16

Henry Towne wanted engineers to think in "economic" terms. Why engineers? Why not accountants, or lawyers, or financiers, etc.? What did economists contribute?

Question 17

What views did American business hold toward its obligations to society? What legal limits shaped those views?

Question 18

Describe developments in the early American labor movement in terms of wages, real wages, union membership, and so forth.

Question 19

Identify the role of the "Social Gospel" in influencing managerial thought.