History of the American Indust
Review - Strategy & Structure: History of the American Industrial Enterprise, Alfred ChandlerFollowing World War II there was an enormous expansion of the American economy. This led to the rapid growth of a multitude of industrial companies. As a result executives were forced with complex administrative issues. At the time of Chandler's research industrial firms carrying on diverse economic activities generally used a multidimensional type of organizational structure. Also known as decentralized structure resources are allocated among operating divisions based on analysis from a central office. In turn management in charge of these divisions has control over their personnel facilities funds and other resources necessary for handling their lineup products or services. Executives for each division are responsible for the financial results of his area and for its success in the marketplace.DuPont, General Motors, Standard Oil Company (NJ) and Sears Roebuck & Co. began to fashion in their own structure shortly after World War I. The companies were among the very first to initiate major reorganization of this kind. To development of their new strategies were independent at each other and have any other firm.
Also included is the information in data that flow through the lines of communication authority. The administration of the enterprise as a whole was considered to be the collective task of the senior executives. Chandler notes that the administrative experience of the New Jersey Company demonstrates even more forcefully demand of GM or DuPont, how the finale or to adjust structure to strategy creates administrative strains and how the training, temperament, in daily activities of the responsible executives can delay structural adjustment. Chandler's thesis is that different organizational forms results from different types of growth in Napa planning in carrying out of such growth is considered a strategy. The operational aspects of the functional departments were turned over to autonomous, self-contained operating units. A clear need existed for a more centralized, departmentalized organization in place of the existing federation of refineries. The creation of the coordination of the budget department was a major step forward in improving communications between the board, the operating departments, subsidiaries and affiliates, and so made possible anymore effective mobilization of the New Jersey Company's total resources. A new division with their own control offices were formed to coordinate, appraise in plan policy for functional departments. An organization's need to keep resources effectively and rationally employ, provided a dynamic force that change structure and strategy. For these new administrative activities to be carried out by the current personnel, using the same type of communication channels would become increasingly inefficient. Difficulties were apparent in the areas of selection and training of personnel, choice and quality of products carry, in the flow of goods from the mail-order plants to the retail stores. The consolidation with a central headquarters also permitted a concentration of production in a new large centrally located factory.
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Pontiac Motors,
Coleman Pierre,
Pennsylvania Railroad,
War II,
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