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Introduction to Industrial Revolution:

Industrial revolution is the transition to new manufacturing processes in the

period from about 1760 to sometime between 1820 and 1840. This transition included
going from hand productions method to machines, new chemical manufacturing and
iron production processes, the increasing use of steam power, the development of
machine tools and the rise of the factory system.1

According to historians, the transition towards the industries, new manufacturing
processes was termed as “Industrial Revolution”2.

Origin of Industrial Revolution:

It has been defined as the stage of economic development where there was a
transition from domestic to factory production which started in Europe in the middle of
eighteenth century. The term and also been defined as that complex of technological

1,1st Passage.
2 Gulzar A, Impact of Industrial Revolution on Management Thought, Volume 2, Issue 1 April, 2015


innovations which, by substituting machines for human skill and inanimate power for
human and animal force, brought about a shift from handicraft to manufacture and by so
doing, gave birth to a modern economy. The industrial revolution was not only technical;
it was also social and political. Prest (1975) contended that the industrial revolution is
not sudden, but rather in its widest context originally developed from the Neolithic
revolution and the changes have affected the whole world and created an
unprecedented change in the numbers and in the environment of human race. The
industrial revolution in Europe was the transitory phase from the manufacturing or
putting-out system to the factory system. The economic system formed historically on
the basis of hand-operated technology was inherited from the feudal economy and
originally established itself in the putting out system.3
Products of Industrial Revolution:

Important products of the industrial revolution of Britain were coal, iron, cotton,
steam, suphuric acid, jigs and tools, while in Germany the important products were
textiles, cotton and linen3

Role of Management in Industrial Revolution:

Efficient means of production and subsequent higher levels of production

triggered far reaching changes to industrialized societies. [photo] Industrial revolution
resulted in a transition of hand work to machines which led to increase in efficiency, this
spread across the eastern parts of society and economic adoptions accelerated.3

Stephenson O, Unyimadu, Management & Industrial Revolution in Europe, United States of America & Japan,
Engineering Management International, 5 (1989) 209-218


Figure 1: Stages from Adam's Theory to Management Theories

Figure 2: Revolution(s) with years

As industrial revolution progressed, changes in management thought process triggered.

The historical discourse of time leads us to the time where Adam Smith introduced the
principle of division of labor for the first time to upsurge worker’s productivity with
efficiency. A major step towards the management advancement was taken during the
industrial revolution. It served as the basis in deliverance of labor from the land to work


in the new industries of 18th century. With the lapse of time, the span of management
advanced. The principles of scientific management and the style of bureaucracy added
significant contributions towards the management thought processes and worker’s
productivity during industrial revolution.3

Management Modification & Fayol’s 14 Principals:

Roles of management and principles changed according to industrial revolution; Fayol

suggested 14 principles which were emerged during revolution phase;4

1- Division of work
2- Authority
3- Discipline
4- Unity of Command
5- Unity of Direction
6- Subordination of individual interests to general interests
7- Remuneration
8- Centralization
9- Scalar Chain
10- Order
11- Equity
12- Stability of tenure of personnel
13- Initiative
14- Esprit de corps

Daniel A. Wren & Co., The Evolution of Management Thought (Sixth Addition)


Figure 3: Industrial Revolution Map

Industrial revolution was a fundamental change in the way goods were produced, human labor to
machines there by contributing in changing thought process of management systems.