Downsizing is a cutback in a company's operations and usually implies a reduction in its employee headcount as well.

Downsizing results from many factors, including increased global competition, new technologies, and weaker labor unions; it takes various forms and has various outcomes. Some firms use downsizing as part of a long-term effort to transform their businesses; others turn to downsizing simply to slash costs and boostearnings. Sometimes downsizing boosts employee morale by giving the remaining workforce new responsibilities and opportunities; in other cases, downsizing leaves a demoralized staff that is undermanned when economic conditions improve. Some firms carry out downsizing relatively gently by offering workers strong incentives to retire; for other companies, downsizing means chopping heads as quickly and cheaply as possible. Whether downsizing generally helps or hurts a company's long-term profitability remains controversial. Evidence can be presented on both sides, but most would agree that the answer greatly depends on how the downsizing is executed. Redundancy a. Provision or existence of more than one means orresources to perform an activity or function. b. Repetition of parts or subsystems (or whole systems) toprovide a backup in case of primarysystem failure c. Elimination of jobs or job categories caused bydownsizing, rightsizing, or outsourcing. A mission statement is a key tool that can be as important as your business plan. It captures, in a few succinct sentences, the essence of your business's goals and the philosophies underlying them. Equally important, the mission statement signals what your business is all about to your customers, employees, suppliers and the community. The mission statement reflects every facet of your business: the range and nature of the products you offer, pricing, quality, service, marketplace position, growth potential, use of technology, and your relationships with your customers, employees, suppliers, competitors and the community. "Mission statement help clarify what business you are in, your goals and your objectives," says Rhonda Abrams, author of The Successful Business Plan: Secrets and Strategies. Your mission statement should reflect your business' special niche. However, studying other companies' statements can fuel your creativity. One sample mission statement Abrams developed: "AAA Inc. is a spunky, imaginative food products and service company aimed at offering high-quality, moderately priced, occasionally unusual foods using only natural ingredients. We view ourselves as partners with our customers, our employees, our community and our environment. We aim to become a regionally recognized brand name, capitalizing on the sustained interest in Southwestern and Mexican food. Our goal is moderate growth, annual profitability and maintaining our sense of humor." Or consider the statement one entrepreneur developed for her consulting business: "ABC Enterprises is a company devoted to developing human potential. Our mission is to help people create innovative solutions and make informed choices to improve their lives. We motivate and encourage others to achieve their own personal and professional fulfillment. Our motto is: Together, we believe that the best in each of us enriches all of us." The Write Words To come up with a statement that encompasses the major elements of your business, start with the right questions. Business plan consultant David Tucker says the most important question is, What business are you in? Since you have already gone through the steps of creating your niche, answering this question should be easy for you. Answering the following questions will help you to create a verbal picture of your business's mission:  Why are you in business? What do you want for yourself, your family and your customers? Think about the spark that ignited your decision to start a business. What will keep it burning?  Who are your customers? What can you do for them that will enrich their lives and contribute to their success--now and in the future?  What image of your business do you want to convey? Customers, suppliers, employees and the public will all have perceptions of your company. How will you create the desired picture?  What is the nature of your products and services? What factors determine pricing and quality? Consider how these relate to the reasons for your business's existence. How will all this change over time?  What level of service do you provide? Most companies believe they offer "the best service available," but do your customers agree? Don't be vague; define what makes your service so extraordinary.  What roles do you and your employees play? Wise captains develop a leadership style that organizes, challenges and recognizes employees.

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What kind of relationships will you maintain with suppliers? Every business is in partnership with its suppliers. When you succeed, so do they. How do you differ from your competitors? Many entrepreneurs forget they are pursuing the same dollars as their competitors. What do you do better, cheaper or faster than other competitors? How can you use competitors' weaknesses to your advantage? How will you use technology, capital, processes, products and services to reach your goals? A description of your strategy will keep your energies focused on your goals. What underlying philosophies or values guided your responses to the previous questions?Some businesses choose to list these separately. Writing them down clarifies the "why" behind your mission.

Putting It All Together Like anything with lasting value, crafting a mission statement requires time, thought and planning. However, the effort is well worth it. In fact, most start-up entrepreneurs discover that the process of crafting the mission statement is as beneficial as the final statement itself. Going through the process will help you solidify the reason for what you are doing and clarify the motivations behind your business. Here are some tips to make your mission statement the best it can be:  Involve those connected to your business. Even if you are a sole proprietor, it helps to get at least one other person's ideas for your mission statement. Other people can help you see strengths, weaknesses and voids you might miss. if you have no partners or investors to include, consider knowledgeable family members and close friends, employees or accountants. Be sure, however, to pick only positive, supportive people who truly want to see you succeed.  Set aside several hours--a full day, if possible--to work on your statement. Mission statements are short--typically more than one sentence but rarely exceeding a page. Still, writing one is not a short process. It takes time to come up with language that simultaneously describes an organization's heart and soul and serves as an inspirational beacon to everyone involved in the business.  Plan a date. Set aside time to meet with the people who'll be helping you. Write a list of topics to discuss or think about. Find a quiet, comfortable place away from phones and interruptions.  Be prepared. If you have several people involved, be equipped with refreshments, extra lists of topics, paper and pencils. Because not everyone understand what a mission statement is about, explain its meaning and purpose before you begin.  Brainstorm. Consider every idea, no matter how silly it sounds. Stimulate ideas by looking at sample mission statements and thinking about or discussing the questions in the previous section. If you're working with a group, use a flip chart to record responses so everyone can see them. Once you've finished brainstorming, ask everyone to write individual mission statements for your business. Read the statement, select the best bits and pieces, and fit them together.  Use "radiant words." Once you have the basic idea in writing, polish the language of your mission statement. "Every word counts," says Abrams. The statement should create dynamic, visual images and inspire action. Use offbeat, colorful verbs and adjectives to spice up your statements. Don't hesitate to drop in words like "kaleidoscope," "sizzle," "cheer," "outrageous" and "marvel" to add zest. If you want customers to boast about your goods and services, say so--along with the reasons why. Some businesses include a glossary that defines the terms used in the statement. Once your mission statement is complete, start spreading the word! You need to convey your mission statement to others inside and outside the business to tell everyone you know where you are going and why. Post it in your office, where you, employees and visitors can see it every day. Print it on company materials, such as brochures and your business plan or even on the back of your business cards. A mission statement is a statement of the purpose of a company or organization. The mission statement should guide the actions of the organization, spell out its overall goal, provide a path, and guide decisionmaking. It provides "the framework or context within which the company's strategies are formulated."[1] Historically it is associated with Christian religious groups; indeed, for many years, a missionary was assumed to be a person on a specifically religious mission. The word "mission" dates from 1598, originally of Jesuits sending ("missio", Latin for "act of sending") members abroad. [2] The vision and the mission statements are often confused with one another[citation needed], and some organizations even use them interchangeably. In simple terms, the mission is the organization's reason for existence, and vision is what it wants to be[clarification needed]. Effective mission statements commonly clarify the organization's purpose. Commercial mission statements often include the following information:  Purpose and aim(s) of the organization

"To provide economy and quality minded travelers with a premier. etc. well-maintained. creditors/bankers. leadership development and cultural enlightenment. long. promote the general Welfare. well-maintained. to maintain the worship of God. the commercial mission statement consists of 3 essential components: 1. insure domestic Tranquility. competitors. federal. By definition. and a consciousness of their duties to God and their fellow human beings. Contribution – what product or service do you provide to that client? 3. provide for the common defence. shareholders. La Unidad Latina has remained on the vanguard of political and community empowerment by developing influential leaders that strive to exert knowledge and power into its peers in order to attain mutual success. Distinction – what makes your product or service unique. We pledge our lives to Christ and covenant with each other to demonstrate His Spirit through worship. Stakeholders include: managers & executives. non-management employees. labour unions. enhanced by a diverse cognizant membership.). and attractive. According to Vern McGinis. distributors. and attractive. governments (local. How the organization provides value to these stakeholders. and very broad. congregation. and secure the Blessings of Liberty to ourselves and our Posterity. reasonably-priced & delivered consistently in a low-key décor and friendly atmosphere. and the community or general public. staffed by friendly.Google "We inspire and nurture the human spirit — one person."  Key Market: The fast food customer world-wide  Contribution: tasty and reasonably-priced food prepared in a high-quality manner  Distinction: delivered consistently (world-wide) in a low-key décor and friendly atmosphere." -American Motorcyclist Association "We organize the world‘s information and make it universally accessible and useful" . contribution and distinction. LUL strives to preserve and promote an inclusive intellectual environment for its members. customers. for example: Since its inception in 1982. For example: "Peoples Church is called to proclaim the Gospel of Christ and the beliefs of the evangelical Christian faith. in Order to form a more perfect Union.  Courtyard by Marriott . do ordain and establish this Constitution for the United States of America." Some mission statements are complex. NGOs. and one neighborhood at a time" Starbucks A classic example of the mission statement is the Preamble to the Constitution of the United States: We the People of the United States. for example by offering specific types of products and/or services According to Bart (1997). for example: "To protect and promote the interests of motorcyclists while serving the needs of its members. LUL is committed to academic excellence. stakeholders affect or are affected by the organization's decisions and activities. so that the client would choose you? Examples of mission statements that clearly include the 3 essential components:  McDonalds . other mission statements are simple and direct. . and ministry to the needs of the people of this church and the community. a passion for righteousness. Key market – who is your target client/customer? (generalize if needed) 2. board of directors. establish Justice. suppliers. witnessing. and to inspire in all persons a love for Christ. etc. moderate priced lodging facility which is consistently perceived as clean. attentive and efficient people"  Key Market: economy and quality minded travelers  Contribution: moderate priced lodging  Distinction: consistently perceived as clean. shareholders. attentive and efficient people The mission statement can be used to resolve trade-offs between different business stakeholders. a mission should:  Define what the company is  Limited to exclude some ventures  Broad enough to allow for creative growth  Distinguish the company from all others  Serve as framework to evaluate current activities  Stated clearly so that it is understood by all The mission statement ultimately seeks to justify the organization's reason for existing."To provide the fast food customer food prepared in the same high-quality manner worldwide that is tasty.  The organization's primary stakeholders: clients/customers. Religious mission statements are less explicit about key market. in addition to the general community. comfortable. state.[4] In contrast. one cup. comfortable. staffed by friendly. but clearly describe the organization's purpose[3].

3) Shape your vision statement.How to Write a Mission Statement will lead you through the process. A photograph in words of your company's future. focus on the basics of your mission statement and extrapolate. the CEO of your company. Using this formula to write a vision statement will force you to choose what you consider to be the most important accomplishment of your business and give you a time frame to accomplish it. Without a vision statement. you saw a whole list of achievements scroll by or imagined all sorts of disjointed clips. how can you plan the route? If you don't have a vision statement. 4) Commit to your vision statement. keep your vision statement alive by keeping it physically prominent. where is your business going to be five years from now? What will your company have accomplished? Forming a mental picture will help. If you just tell it to people once. it's the vision statement that provides the destination for the journey.  Keep your vision statement alive: Share it with potential partners. you might imagine yourself being featured on the news for opening your twelfth franchise. Here's how to write a vision statement: 1) Examine your mission statement. Imagine that you. a mission statement answers the question. Use the following formula to shape your vision statement: Five years from now. "Why do we exist?" for a company. in your staff room. If you have trouble visualizing your business. What are you and your company being recognized for? For instance.) What is it you do well? How do you do it? (If you don’t have a mission statement already. apply the formula. Maybe when you were picturing the future of your company. it provides the inspiration for both your daily operations and your strategic decisions. It's the natural basis for all of your business planning.  As the vision statement provides your destination. I bet you do have a vision of what you want your business to accomplish. Print it out and post it on your desk. wherever you. See Sample Vision Statements for more examples. are being profiled on the news. (I also give several sample mission statements in this article.) 2) Dare to dream. your colleagues and your staff will see it (and be reminded of it) daily. don't panic. affordable service for Moms and Dads with small children. . So besides talking about it. here's a sample vision statement: Five years from now. To write a vision statement. (my company name) will ___________________ by ________________________. Tiny Tots Diaper Service will be the top grossing diaper service in the Lower Mainland by consistently providing a reliable. we need to distil your vision into a usable form. As I say in my mission statement definition. Take action to make your vision statement come true: Use it as the basis of your business planning. To write a vision statement. the 'where you want to get to'. staff and employees if you have them. effective business planning would be impossible. Before you can travel to the moon you have to look up at the stars.A vision statement is your ticket to success. if your current business involves yoga instruction. all of your goals and strategies will focus on making it happen. mentally script your own news byte. For instance. you just need to articulate and formalize it. your vision statement will fade and disappear. and without a destination.

Bryan was quoting a sentence he had written five years earlier in which he spoke of the need for more research in individual psychology. . Below are just a few examples.000 to do so 1883: Frederick W. o By 1911 he had published two more books (Influencing Men in Business and Increasing Human Efficiency in Business). delegation of authority. Instead. and management of specialization in factories The Early Years (Pre-WW1)     1881: the first school of professional management was started at the University of Pennsylvania when Joseph Wharton donated $100. and became the first to apply the principles of psychology to motivation and productivity in the workplace. Pre-Psychology Psychology's formal "birthdate" as a science wasn't until 1879 (when Wilhelm Wundt established the first psychology laboratory). which in effect. including specialization of labor." (source: Muchinsky. in The Social Contract (1762). Bryan. o Postscript note: "The term 'industrial psychology' first appeared in a 1904 article of Bryan's APA address. Of course. emphasis added) Walter Dill Scott gave a talk to Chicago business leaders on the application of psychology to advertising. p10. 1527) offered practical advice for developing authoritarian structures within organizations Thomas Hobbes (1651) advocated strong centralized leadership as a means for bringing "order to the chaos created by man". he did encourage these sorts of "real life" applications of a science of psychology. o He also became instrumental in the application of personnel procedures within the army during World War I. which later led to the development of his "scientific management" philosophy 1903: W. make sure that you have chosen the vision that is most important to you.        Aristotle. division of specialized labor. Bryan wrote industrial psychology and did not catch his mistake. advocates participatory management in his argument that leadership is granted by the governed Jean Jacques Rousseau. in effect supported Locke's position Adam Smith (1776). But it is sometimes difficult to write a vision statement that truly encapsulates your vision for your company. departmentalization. Ironically. gave a presidential address to APA in which he encouraged psychologists to study "concrete activities and functions as the appear in every day life". industrial and organizational psychology weren't established until sometime after that. in The Wealth of Nations revolutionized economic and organizational thought by suggesting the use of centralization of labor and equipment in factories.Is Your Vision Statement the Right One? It isn't hard to write a vision statement. Declaration of Independence. developed foundations for many modern management concepts. which led to books on the topic published in 1903 & 1908. in Politics. Yet. and leadership selection Medieval European guilds functioned like modern-day quality circles to ensure fine craftsmanship Machiavelli (in The Prince. you won't be able to fully commit to it and writing a vision statement that you can't or won't fully commit to is a waste of time. When you write your vision statement. If you don't fully believe in your vision statement. decentralization. 1997.L. Taylor began experiments at the Midvale and Bethlehem Steel plant. it appeared in print only as a typographical error. He provided a justification for autocratic rule that helped establish the pattern for organizations through the nineteenth century John Locke (1690) outlined the philosophical justification later manifested in the U.S. prior to the formation of I/O psychology. Although he didn't cite industry directly. many of the issues important to I/O psychology had been discussed long before then.

Frederick W. considered by many as "the father of industrial psychology".2 to 3. thus applied behavioral sciences largely consisted of helping organizations shape people to serve as replacement parts for organizational machines about the same time as Munsterberg. and developed and prepared job duties and qualifications for over 500 jobs   However.like fatigue.S. conducted performance evaluations of officers.thus the intelligence tests weren't as utilized as much as Yerkes had hoped 1917: Journal of Applied Psychology began publication ..   Hugo Munsterberg. scientifically design work methods for efficiency 2. two of his key principles: 1.. pioneered the application of psychological findings from laboratory experiments to practical matters o In 1911 he cautioned managers to be concerned with "all the questions of the mind. the final authorization for the testing program came in August 1918. primarily in the assessment of recruits -. House of Representatives began investigations  Taylor replied that increased efficiency would produce greater not lesser prosperity  Outbreak of WWI distracted most from the controversy before much was resolved World War I (1917-1918)     Robert Yerkes was the psychologist most influential in getting psychology into the war o proposed ways of screening recruits for mental deficiency and assigning selected recruits to army jobs committees of psychologists also investigated soldier motivation. work satisfaction.which had a tremendous impact on organizational management Frederick W. interest. the natural tendency of people to "take it easy" 1911 Taylor's book The Principles of Scientific Management. i. only three months before the Armistice was signed -..g. psychological problems of physical incapacity ("shell shock"). Taylor began publishing similar philosophies on management -. monotony." o He was also first to encourage government funded research in the area of industrial psy o In 1913 his book Psychology and Industrial Efficiency addressed such things as personnel selection and equipment design Munsterberg's early I/O psychology became influential well into the 1950's o It assumed people need to fit the organization. and discipline Army was skeptical and approved only a modest number of proposals.5 to 47..which Yerkes and others developed as a general intelligence test Meanwhile Walter Dill Scott was doing research on best placement of soldiers in Army o He classified and placed enlistees.0 tons moved per day  Less fatigue reported  Increased wages  Costs dropped from 9. and rewards. learning. Taylor o o o o o Taylor realized the value of redesigning the work situation (thru use of time and motion studies) to achieve both higher output for the company and higher wages for the worker His writings were one of the first reasonably comprehensive philosophies of management 1909 Taylor's book Shop Management explained management's role in motivating workers to avoid "natural soldiering". showed workers who handle heavy iron ingots more productive given use of work rests  training when to work and when to rest raised productivity from 12.e.9 cents per ton Taylor's methods led to charges that he inhumanely exploited workers for higher wages and that great numbers of workers would be unemployed because fewer were needed (which was a sensitive topic since unemployment was already high at the time)  Both the Interstate Commerce Commission and the U. select the best workers and train them in the best methods  e. morale.

universities o Among the first: Ohio State. the importance of employee attitudes. but to their surprise.o Today is still perhaps the most respected. and Stanford University Greatest influence on I/O psychology from this time was the Hawthorne studies The Hawthorne Studies     1924 series of experiments began at the Hawthorne Works of the Western Electric Company o Researchers from Harvard University (who were not psychologists) were attempting to study the relation between lighting and efficiency o Increased lighting resulted in increased efficiency. which caused them to be more productive o Quite some time later the employees got used to the researchers' presence and began returning to their original levels of productivity The Hawthorne Effect -. Carnegie Institute of Technology. efficiency continued to improve as the lighting dimmed to faint moonlight levels o These seemingly "bizarre" results were eventually explained in terms of previously unrecognized aspects of human behavior in the workplace o Researchers hypothesized that these results were due to the employee's desire to please them  They were flattered at having distinguished investigators from Harvard study them and were trying to impress them. Univ. the value of a sympathetic and understanding supervisor. representative journal in I/O field Between the Wars (1919-1940)    Psychological Corporation started by James Cattell in 1921 o Main purpose was to advance psychology and promote its usefulness to industry o Also to maintain quality reputation of field by serving as a place for companies to get reference checks on prospective psychologists  Helped companies weed out quacks from qualified professionals o Mission has shifted: Today serves as one of largest publishers of psychological tests 1920's: doctoral degrees specializing in industrial psychology begin to be offered at U. and the need to treat people as people -. of Minnesota. this work initiated arguments for the use of participative management techniques World War II (1941-1945) .not simply as human capital o This was one of the benchmark events in the development of industrial psychology 1939 the definitive account of the Hawthorne studies was published Between the Wars: During and Shortly After the Hawthorne Studies    Major advances in measurement of attitudes during 1920's and 1930's o Likert and Thurstone among those particularly prominent One of the earliest with clinical roots to enter I/O psychology was Morris Viteles o Viteles was student of Lightner Witmer (who many consider the father of clinical psych) o Among Viteles' books were:  Industrial Psychology (1932) (perhaps first book to use that term in its title)  The Science of Work (1934)  Motivation and Morale in Industry (1953) In 1939. Kurt Lewin led the first publication of an empirical study of the effects of leadership styles.change in behavior following the onset of a novel treatment (new or increased attention. most commonly) o Effect eventually wears off (behavior returns to original) as the "novelty" dissipates 1933 Elton Mayo made the first significant call for the human relations movement in his interim report on the Hawthorne studies o Showed the existence of informal employee groups and their effects on production.S.

   By this time industrial psychologists had improved many of their techniques for employee selection and placement. and were sought after by the army for their help with these functions o Successful I/O contributions included development of:  Army General Classification Test  used to classify an estimated 12 million soldiers into military jobs  Tests of performance under situational stress for U. religion.. intelligence agency (precursor to CIA)  tests highly successful for identifying best candidates to be OSS agents  innovative assessment methods used  original basis for assessment center techniques of today 1945 Kurt Lewin formed the Research Center for Group Dynamics at MIT to perform experiments in group behavior o 1948 the research center moved to the University of Michigan and became a branch of the Institute for Social Research 1946: I/O psychologists form Division 14 of the American Psychological Association o incorporated as the Society for Industrial and Organizational Psychology in 1983 o by 1996. in Luthans & Kreitner's (1975) and Frederiksen's (1982) books . Skinner. color. sex. instrumentality. the majority who aren't concerned about achieving and the minority who are challenged by achieving o Late 1960's: Frederick Herzberg proposed his two-factor theory of motivation (satisfiens/motivators & hygiene factors) o Late 1960's: Edwin Locke outlined his goal setting approach to motivation 1964 Civil Rights Act passed.500 members 1950's and 1960's         Late 40's & early 50's: clinical psychologists Carl Rogers' and Abraham Maslow's theories of motivation supported the human relations movement Skinner initiated discussions of behaviorism's applications to organizational settings 1954 Peter F. Office of Strategic Services  the OSS was the first U.g. Drucker outlined his Management by Objectives (MBO) approach 1954 John C.a view that rose with work of Fred Fiedler in mid 1960's o 1964: Vroom's VIE theory (valence.S. Flanigan outlined his Critical Incidents Technique Rise of Motivation Theories in late 1950's through 1960's o Late 1950's: Douglas McGregor proposed his Theory X and Theory Y assumptions of the relations between employees and organizations o Early 1960's: contingency models of leadership proposed a need for different styles under different circumstances -.F. expectancy) of motivation proposed  Influencial in development of later expectancy theories o Mid 1960's: David McClelland proposed need for achievement theory  Argues there are two groups of people. sociotechnical systems Mid 1960's into early 1970's: advances in job analysis techniques included: o 'task inventory' approach developed from research with U. Air Force o Dictionary of Occupational Titles published in 1965 (third edition) o 1960's research at Purdue Occupational Research Center led to publication of the Position Analysis Questionnaire in 1972 o Edwin Fleishman developed 'ability requirements' approach 1970's   1971: B. Title VII. or national origin" 1966: Katz & Kahn published classic text outlining theory and research of organizational behavior as embedded in open.S. in Beyond Freedom and Dignity.S. section 703a states: "it is unlawful to discriminate in any employment practice on the basis of race. grown to approximately 2. advocated behavior modification strategies to motivate people in organizations Organizational behavior modification's successes increasingly demonstrated o e.

in the automobile industry) during these times of rapid change in the technological and business environments o Japanese were prospering with methods first proposed by Americans: Edward Deming. Long-term planning  Mid 1980's: increasing attention to use of quality circles and other participatory management techniquesLate 1980's: renewed interest in organizational climate and groups  Late 1980's: rise of participatory management techniques known by such terms as Total Quality Management (TQM). Lifetime job security (although in 1990's some Japanese companies moved away from this guarantee) 7. and practice  Balancing work and family lives received increasing attention in I/O research in late 1980's.S. Increased quality and quantity coupled with reduced cost 3. Joseph Juran. this technique advocated by many  Increased optimism that validity findings for mental ability tests (used in selection) can be generalized to a wide range of other samples o In other words. the rigidity of classical theories of management produced harsh consequences for American businesses (e.S. and again in mid/late 1990's  Workplace aggression / workplace violence emerged as topic of study in mid/late 1990's .S. direct evaluations of validity for each new sample argued to be unnecessary  1986: first ruling by U. Consensus decision making 6. Participatory management techniques 4. Supreme Court handed down four landmark decisions o more rulings on sexual harassment in 1998 from Supreme Court than in all previous years combined  1999 and 2001 brought additional Supreme Court decisions  Late 1980's & into the 1990's: work stress received increasing attention in I/O research. and related Supreme Court decisions. Supreme Court on subject of sexual harassment  Meritor Savings Bank v. Continuous Quality Improvement (CQI).S. theory.g.. including their influence on a wide range of I/O research Early 1970's: Porter & Lawler proposed revised expectancy model of motivation Early/mid 1970s: Civil rights laws. Use of statistical quality control techniques 5.S. Supreme Court raised public's attention to issue  1991 Civil Rights Act provided first legal basis for SH victims to sue for punitive damages  1993: second sexual harassment ruling from U. Superior manufacturing processes 2. led to increasing research on bias in organizations 1980's & 1990's   As entered 1980's. and Continuous Process Improvement (CPI)  1990's: rise of meta-analysis as statistical technique (spurred by Hunter & Schmidt's 1990 book -an extention of their 1977 Schmidt & Hunter journal article)  Enables combining data from many different previously-published studies (that individually had led to varying and perhaps even contradictory conclusions) o Technique analyzes overall pattern across all studies included  Although somewhat controversial.   Rise of cognitive approaches to studying topics in psychology (which grew in 1960's) continued in 1970's. and Noam Crosby  First adopted after WWII in Japan when U. companies resisted their ideas 1984 article in the Academy of Management Review outlined explanations for the success of Japanese management techniques as: 1. Vinson: hostile work environment standard supported  1990's: rapid rise of attention to the issue in both employment law and psychology  1991: Anita Hill's charges against Clarence Thomas during his confirmation hearings to become a Justice of the U. Supreme Court  1998: U.

or  process control elements constitute a part of the cycle. they brought their knowledge home with them and applied their new knowledge of selections to businesses. the time study must be changed to agree with the new method. It was primarily an outgrowth of the Industrial Revolution.  Human Capital Becomes Important Studies like Landsberger’s and the new knowledge of how to select employees started to change I-O psychology. While conducting these experiments. and videotape camera) to record the time taken to accomplish a task[4] and it is often used when:[5]  there are repetitive work cycles of short to long duration. the people who ran the factories wanted to try to get as much money as possible out of their workers.  The Hawthorne Effect In one of the early studies (1924-1932) conducted by I-O psychologist Harry Landsberger. computer-assisted electronic stopwatch. What we see today in almost every aspect of testing for selections is an outgrowth of this era in history. The time study measures the time required to perform a given task in accordance with a specified method and is valid only so long as the method is continued. A time and motion study (or time-motion study) is a business efficiency technique combining the Time Study work of Frederick Winslow Taylor with the Motion Study work of Frank and LillianGilbreth (not to be confused with their son. huge numbers of incoming soldiers needed to be placed in jobs they were best suited for as quickly as possible. This shift was primarily because of the evidence that I-O psychologists provided. schools and hospitals. while motion study evolved into a technique for improving work methods. interested in what they were doing. When these psychologists returned from the wars. Because both of these conflicts occurred without the United States being prepared for them. Thus. A landmark study of this time period involved a study to make trolley operators be as productive as possible. time study developed in the direction of establishing standard times. these terms didn't even exist before 1980's. All of these changes have led to where I-O psychology and business have come to be today. using a timekeeping device (e. the employees improved their production speed. In fact. decimal minute stopwatch. Landsberger discovered that the employees were performing better because there were people around them wearing white coats. and another involved how best to design a coal shovel to increase production. much of the difficulty with time study is a result of applying it without a thorough study of the motion pattern of the job. the results weren’t at all what he expected. Psychologists used their knowledge of testing to sort people into different jobs based on brief. When factories and assembly lines began coming into existence. The two techniques became integrated and refined into a widely accepted method applicable to the improvement and upgrading of work systems. carrying clipboards. best known through the biographical 1950 film and book Cheaper by the Dozen). showing that employee retention and managment was more profitable. work conditions had been trumped by employee feelings about someone being interested in what they were doing. It appeared that no matter what he did. After postanalysis.  The Rise of Testing Any business that has had profits increased by some sort of testing or interview process owes its success to how World War I and II occurred.. Landsberger wanted to see how low the lighting could be and still maintain optimal productivity. The first I-O psychologists weren’t as interested in employees being satisfied and happy as they were about making sure that the jobs were designed to be as efficient and streamlined as possible. This integrated approach to work system improvement is known as methods engineering[1] and it is applied today to industrial as well as service organizations. . and didn't receive widespread attention until mid 1990's A Brief Overview of the History of I-O Psychology Industrial-Organizational psychology has only been in existence for about the last century. a factory was interested in seeing how changing work conditions would affect employee output.  wide variety of dissimilar work is performed.[2] Time and motion study have to be used together in order to achieve rational and reasonable results. After its first introduction.g. This also all began to cause I-O psychologists and businesses to think of employees as resources to be managed and retained. massed assessments and did so with great accuracy. even if he only gave them low candlelight to work by. Instead of thinking about them as tools that could be replaced if they weren’t performing properly. For example. including banks. Time study is a direct and continuous observation of a task. The shift wasn’t necessarily an ethical change where businesses suddenly acted out of an interest in humanism instead of profits. Once a new work method is developed. Motion study can be considered the foundation for time study. It is particularly important that effort be applied in motion study to ensure equitable results when time study is used. It is a major part of scientific management (Taylorism).

meant the Gilbreth’s had to argue contrary to the trade unionists. government commissions and Robert Hoxie[27] who believed scientific management was unstoppable. Similarly. and sought to maximise productivity irrespective of the physiological cost to the worker. the Gilbreths credibility and academic success continued to be hampered by Taylor who held the view that motion studies were nothing more than a continuation of his work. which was essentially an oral tradition.B. the Gilbreths Although. the films also served the purpose of training workers about the best way to perform their work. In addition. Taylor wanted to transform management. rest to overcome fatigue. For example. Mr W. This was no simple task given the propaganda fuelling the Hoxie report and the consequent union opposition to scientific management. emphasising areas for improvement.[10][11] Taylor and his colleagues placed emphasis on the content of a fair day’s work. One was the visual record of how work had been done. The application of science to business problems. While both Taylor and the Gilbret’s continue to be criticised for their respective work. allowing for the analysis of the labour process in a scientific context.[12] For example. unavoidable or machine delays. Taylor thought unproductive time usage (soldering) to be the deliberate attempt of workers to promote their best interests and to keep employers ignorant of how fast work could be carried out.[9] By counting and calculating. the attention he paid to it demonstrated the seriousness he considered the Gilbreths’ method. However. Secondly. for Taylor.[22] Motion studies In contrast to. individuals such as Gilbreth (1909). into a set of calculated and written techniques. prepared the path for human relations to supersede scientific management in terms of literary success and managerial application. descriptive of equivalent theories. to develop a study method based upon the analysis of work motions. and scientific management generally. Cadbury[14] and Marshall[15] heavily criticised Taylor and pervaded his work with subjectivity.[23] The Gilbreths’ made use of scientific insights.[25] This method allowed the Gilbreths to build on the best elements of these work flows and to create a standardised best practice.[7] Taylor liaised with factory managers and from the success of these discussions wrote several papers proposing the use of wagecontingent performance standards based on scientific time study. consisting in part of filming the details of a worker’s activities while recording the time. . despite originating within the same school of thought. but also misinterprets Taylor’s incentives for proposing a different style of managerial thought. ***Ergonomics is the study of designing equipment and devices that fit the human body.[20] in the sense that they relied heavily on individual interpretations of what workers actually do. for example. Ford and Munsterberg. to equate scientific management merely with time and motion study and consequently labour control not only misconceives the scope of scientific management. Thompson.[21]However. increased industrial output in ways which improved and did not detract from the worker’s mental and physical strength. and the use of time-study methods in standard setting and the planning of work. the underlying principles and the rationale for the establishment of each respective method are dissimilar."[6] The systems of time and motion studies are frequently assumed to be interchangeable terms. on the basis of attitudes to workers. and its cognitive abilities. Renold. Jackson and Mr C. the value in rationalising production is indisputable and supported by academics such as Gantt. timing each part and rearranging the parts into the most efficient method of working.The Industrial Engineering Terminology Standard defines time study as "a work measurement technique consisting of careful time measurement of the task with a time measuring instrument.[13] This instrumental view of human behaviour by Taylor. Furthermore. Unions. and Taylor society members Mr C.H. Cadbury[16] in reply to Thompson[17] stated that under scientific management employee skills and initiatives are passed from the individual to management. Taylor’s critics condemned the lack of scientific substance in his time studies. and motivated by Taylor’s time study methods the Gilbreth’s proposed a technical language. motion study remained subordinate to time study.[26] Taylor Vs. Criticisms In response to Taylor’s time studies and view of human nature. many strong criticisms and reactions were recorded.[19] In addition.[28] The Gilbreths were charged with the task of proving that motion study particularly. The split with Taylor in 1914. its movements.[8] At its most basic level time studies involved breaking down each job into component parts.[24] The films served two main purposes. and personal needs. it should be remembered that they were writing at a time of industrial reorganisation and the emergence of large. regarded time study as a disguised tool of management designed to standardise and intensify the pace of production.G. was pioneered by Frederick Winslow Taylor. complex organisations with new forms of technology.[18] a view reiterated by Nyland. adjusted for any observed variance from normal effort or pace and to allow adequate time for such items as foreign elements.

Productivity increased.[6] where a series of experiments on factory workers was carried out between 1924 and 1932. they had a supervisor who discussed changes with them and at times used their suggestions. being treated as special (as evidenced by working in a separate room). Together the women worked in a separate room over the course of five years (1927–1932) assembling telephone relays.[10] In the lighting studies. other changes such as maintaining clean work stations.The Hawthorne effect is a form of reactivity whereby subjects improve or modify an aspect of their behavior being experimentally measured simply in response to the fact that they know they are being studied. they disliked it and reduced output. clearing floors of obstacles. This effect was observed for minute increases in illumination. However it is said that this is the natural process of the human being to adapt to the environment without knowing the objective of the experiment occurring. This measuring began in secret two weeks before moving the women to an experiment room and continued throughout the study. mainly due to Elton Mayo.) Bank wiring room experiments The purpose of the next study was to find out how payment incentives would affect productivity.[1][2] not in response to any particular experimental manipulation. Landsberger[3] when analysing older experiments from 19241932 at the Hawthorne Works (a Western Electric factory outside Chicago). In the experiment room. Then the researchers spent five years measuring how different variables impacted the group's and individuals' productivity. experimenters chose two women as test subjects and asked them to choose four other workers to join the test group.[7][8][9] Most industrial/occupational psychology and organizational behavior textbooks refer to the illumination studies. when . Only occasionally are the rest of the studies mentioned. working as a group. Thus the term is used to identify any type of short-lived increase in productivity. light intensity was altered to examine its effect on worker productivity. even if the variable was just a change back to the original condition. The surprising result was that productivity actually decreased. One interpretation. Hawthorne Works had commissioned a study to see if its workers would become more productive in higher or lower levels of light. productivity decreased because the men were afraid that the company would lower the base rate. and then changing to two 10-minute breaks (not their preference). Detailed observation between the men revealed the existence of informal groups or "cliques" within the formal groups. shortening it more (output per hour went up. Workers apparently had become suspicious that their productivity may have been boosted to justify firing some of the workers later on. The researchers found that although the workers were paid according to individual productivity. Output was measured mechanically by counting how many finished relays each worker dropped down a chute. and having a sympathetic supervisor were the real reasons for the productivity increase. providing food during the breaks shortening the day by 30 minutes (output went up). The cliques served to control group members and to manage bosses. Some of the variables were:    giving two 5-minute breaks (after a discussion with them on the best length of time)." (There was a second relay assembly test room study whose results were not as significant as the first experiment. [11] The study was conducted by Elton Mayo and W. The term was coined in 1950 by Henry A.[citation needed] was that "the six individuals became a team and the team gave itself wholeheartedly and spontaneously to cooperation in the experiment. Researchers hypothesized that choosing one's own coworkers. These cliques developed informal rules of behavior as well as mechanisms to enforce them. History The term gets its name from a factory called the Hawthorne Works. The workers' productivity seemed to improve when changes were made and slumped when the study was concluded. Researchers concluded that the workers worked harder because they thought that they were being monitored individually. Evaluation of the Hawthorne effect continues in the present day. It was suggested that the productivity gain occurred due to the impact of the motivational effect on the workers as a result of the interest being shown in them. but overall output decreased). Relay assembly experiments In one of the studies. Lloyd Warner between 1931 and 1932 on a group of fourteen men who put together telephone switching equipment. returning to the first condition (where output peaked). and even relocating workstations resulted in increased productivity for short periods. Although illumination research of workplace lighting formed the basis of the Hawthorne effect. but when they received six 5minute rests. Changing a variable usually increased productivity.

Parsons defines the Hawthorne effect as "the confounding that occurs if experimenters fail to realise how the consequences of subjects' performance affect what subjects do" [i.. the issue is that an experimental effect depends on the participants' interpretation of the situation. A lot to do with feeling free. and 20% of SD for > 8 weeks. and the educational effects can be expected to be similar (but it is not so obvious that medical effects would be).e. The output ("dependent") variables were human work. clique members gave the same responses. on the grounds that they have not been properly published and so he cannot get at details. even if they were untrue.e. Interpretation and criticism H. He also argues that the rest periods involved possible learning effects. (which is < 1% of the variance).[14] but also. But Mayo says it is to do with the fact that the workers felt better in the situation. The experiment was repeated with similar effects on mica splitting workers. because of the sympathy and interest of the observers. The experimental manipulations were important in convincing the workers to feel this way: that conditions were really different. p. not feeling supervised but more in control as a group.bosses asked questions. beliefs. both permanent skill improvement and feedback-enabled adjustments to suit current goals]. So he thinks it is not awareness per se. which decays to small level after 8 weeks. Richard Nisbett. the "girls" had access to the counters of their work rate. Adair (1984): warns of gross factual inaccuracy in most secondary publications on Hawthorne effect and that many studies failed to find it. McIlvaine Parsons (1974) argues that in the studies where subjects received feedback on their work rates. In more detail: 50% of a SD for up to 4 weeks. Clark and Timothy F. calls the Hawthorne effect 'a glorified anecdote. It is possible that the illumination experiments were explained by a longitudinal learning effect. There is less certainty about the nature of the surprise factor. not testing factors separately.[citation needed] Richard E.[13] The Hawthorne effect has been well established in the empirical literature beyond the original studies. whereas he had extensive personal communication with Roethlisberger and Dickson. So you often will not see any Hawthorne effect—only when it turns out that with the attention came either usable feedback or a change in motivation. improving their performance by improving their skill will be dependent on getting feedback on their performance. learning effects. Research on the demand effect also suggests that people might take on pleasing the experimenter as a goal. The experiments stand as a warning about simple experiments on human participants viewed as if they were only material systems.[citation needed] It is notable however that Parsons refuses to analyse the illumination experiments.' he said. but participants' interpretation must be investigated in order to discover if/how the experimental conditions interact with the . nor a system of informal group relations. He argues that it should be viewed as a variant of Orne's (1973) experimental demand effect. that this is why manipulation checks are important in social sciences experiments. and the fear that the workers had about the intent of the studies may have biased the results. He also discusses it not really as an experimenter effect but as a management effect: how management can make workers perform differently because they feel differently. the results should be considered biased by the feedback compared to the manipulation studies. as in the interpretation of Mayo and his followers but rather a system of power. His key argument is that in the studies where workers dropped their finished goods down chutes.' 'Once you have got the anecdote. 333) in a review of educational research say that uncontrolled novelty effects cause on average 30% of a standard deviation (SD) rise (i. Sugrue (1991. These results show that workers were more responsive to the social force of their peer groups than to the control and incentives of management. The Hawthorne study showed "that the performance of workers had little relation to ability and in fact often bore an inverse relation to test scores. He does say that this experiment is about testing overall effect. 'you can throw away the data. of class antagonisms". A psychology professor at the University of Michigan. and an experiment may give them this for the first time. 50%-63% score rise). 30% of SD for 5–8 weeks. other than it certainly depended on the mental states of the participants: their knowledge. at least if it does not conflict with any other motive. So for Adair. nor special attention per se. etc. Braverman argues that the studies really showed that the workplace was not "a system of bureaucratic formal organisation on the Weberian model.".. This discovery was a blow to those hoping to apply the behavioral sciences to manipulate workers in the interest of management.'"[12] Harry Braverman points out in Labor and Monopoly Capital: The Degradation of Work in the Twentieth Century that the Hawthorne tests were based on industrial psychology and were investigating whether workers' performance could be predicted by pre-hire testing.

economists Steven Levitt and John A. etc. though sometimes the golden age is considered to have ended as early as 1970.11 also reviews and discusses the Hawthorne effect. in Taiwan. which occurred mainly in western countries. this high growth also included many countries that had been devastated by the war. Political Economist Roger Middleton states that economic historians generally agree on 1950 as the start date for the [3] [4] golden age –while Lord Skidelsky states 1951 is the most recognized start date. The boom ended with a number of events in the early 1970s:       the collapse of the Bretton Woods system in 1971 the growing influx of imported manufacturing goods. and so the original conclusions were overstated.participants' goals. Both Skidelsky and Middleton have 1973 as the generally recognized end date. France (Trente Glorieuses). the 1973 oil crisis. followed the end of World War II in 1945. Japan (Japanese post-war economic miracle) and Italy (Italian economic miracle). with overall growth lasting well until 1971. and overlapping the rise of the East Asian economies into the 1980s or 1990s. and the ensuing displacement of Keynesian economics by monetarist economics. was a period of economic prosperity in the mid 20th century. the 1973–1974 stock market crash.[16] If so. During this time there was high worldwide economic growth. The post–World War II economic expansion. Global economic climate . List claim that in the illumination experiments the variance in productivity is partly accounted for by other factors such as the weekly cycle of work or the seasonal temperature. This can affect whether participants believe something. Western European and East Asian countries in particular experienced unusually high and sustained growth. some starting as early as 1945. which led to the1970s recession. Narrowly defined. the ensuing 1970s recession. the period spanned from 1945 to 1952. While this is the global period. and lasted until the early 1970s. such as automobiles and electronics the 1973 oil crisis. ending with the collapse of the Bretton Woods system in 1971. for instance.[15] In a 2011 paper. if they act on it or do not see it as in their interest. and the 1973–1974 stock market crash. while in French the period is referred to as Trente Glorieuses (30 glorious [years]) and is considered to extend for the 30-year period from 1945 to 1975. this confirms the analysis of SRG Jones's 1992 article examining the relay experiments. Contrary to early predictions. Rosenthal and Jacobson (1992) ch. specific countries experienced booms for different periods. together with full employment. and the Golden Age of Capitalism. also known as the postwar economic boom. though there are some debates on dating the period. and booms in individual countries differed. such as West Germany (Wirtschaftswunder). with this ending in the 1973 oil crisis. the long boom. the Taiwan Miracle lasted into the late 1990s. The real oil price was low during the post-war decades.

but the lowest percentiles have only seen marginal improvement since then.8% 3.8% 6. All social classes grew wealthier during the 1950s and 1960s.In the United States. OECD members enjoyed real GDP growth rate averaging over 4% each year in the 1950s and very near 5% a year in [5] the 1960s.2% 9.9% 3.2% Average global inflation 3.which he dates as spanning 1980–2009 (1973–1980 being a [4] transitional period): Metric Golden Age Washington Consensus Average global growth 4. but dropped steadily during the 1960s.1% 7. normalized to 2007 costs. unemployment fluctuated during the 1950s. Skidelsky devotes ten pages of his 2009 book Keynes: The Return of the Master to a comparison of golden age to what he calls theWashington Consensus period.1% Unemployment (France) 1. compared with 3% in the 1970s and 2% in the 1980s.5% Unemployment (Germany) 3.2% Unemployment (US) 4.5% Skidelsky suggests the high global growth during the golden age was especially impressive as during that period Japan was the only major Asian economy enjoying high growth (Taiwan and Korea at the time being small . Income in the United States by percentile.

. Skidelsky also reports that inequality was generally decreasing during the golden age. An article capturing the very positive economic outlook in the US titled [7] "We Are All Keynesians Now" was published in 1965 by Time Magazine Journalist Naomi Klein has argued the high growth enjoyed by Europe and America was delivered by Keynesian economic policies. [edit]Causes [edit]Keynesian economics Allied war bonds matured during these years. whereas from [6] 1973–97 (24 years) there were 139. the golden age was a time of unusual financial stability. with crises far less frequent and intense than before or after. The national debt of the United Kingdomwas at a record high percentage of the GDPas the war ended. notably neoclassical [4] economists. Globally. Keynesian economists argue that the boom was caused by the adoption of Keynesian economic policies. such as the monetarist school. but was largely repaid by 1975.economies)–it was not until later that the world had the exceptional growth of China raising the global average. Martin Wolfreports that between 1945–71 (27 years) the world saw only 38 financial crises. This view is disputed by non-Keynesian economists. transferring cash from governments to private households. whereas since the Washington Consensus was formed it has been increasing. particularly government spending ("fiscal stimulus"). and in the case of rapidly rising prosperity the golden age saw in parts of South America by the [8] influence of developmentalist economics led by Raúl Prebisch.

The Morgenthau Plan was then abandoned. The Coal and Steel Community formed the foundation of what was to become the European Union in later years. The effect of the extractive de-industrialization of Germany was in the short-term beneficial to victors and detrimental to Germany. extensive logging by Americans. The post–World War I period was shaped by the Treaty of Versailles. and the establishment of the European Coal and Steel Community to avoid further conflicts. Germany's post-war economic recovery (the Wirtschaftswunder) shortly began. including Germany. being replaced by the Marshall Plan. and transfer of German technology. The occupation of the Saar was resolved by returning it to Germany in 1957. though the immediate post-war situation was more complicated. Following World War II. the victorious Allies established the Bretton Woods system. Some elements of the Morgenthau Plan continued under the Marshall Plan. Structurally. and the use of Keynesian economics. There was also occupation of Germany's industrial Saar region by France and Britain. instituting the Marshall Plan. . theoccupation of the Saar region by France (as had been done in the post–World War I period). [edit]Institutional factors Institutional economists point to the international institutions established in the post-war period. The Marshall Plan for the rebuilding of Europe is most credited for reconciliation. the major powers were determined not to repeat the mistakes of the Great Depression. whose Article 231 of the Treaty of Versailles (the "war guilt clause") attributed guilt to the losing Germans and instituted World War I reparations. some of which were ascribed to post–World War I policy errors. and protectionism in the Great Depression era. This was achieved through a number of factors. and scientists to victor nations. After the war. the latter under Operation [9] Paperclip. which called for the rebuilding of Europe. patents. See also: Aftermath of World War II Among the causes can be mentioned the rapid normalization of political relations between former Axis powers and the western Allies. the victorious Allies first followed a policy of deindustrializing and extracting resources from Germany under the Industrial plans for Germany–the Morgenthau Plan in America and the Monnet Plan in France– which involved dismantling German factories and removing them to victor nations. which delayed the normalization of relations. including promoting free trade. setting up international institutions designed to ensure stability in the world economy. but following the rollback of the Morgenthau Plan.[edit]Immediate post-war policy Propaganda poster for the Marshall Plan. largely France and Russia–and destroying what could not be dismantled–together with the forced labor of millions of former German prisoners of war. and eventually ended officially in 1955.

use of the theories of fiscal drag and full-employment budget. and reducing taxes—were Arthur F.[edit]U. In its first 7 years the CEA made five technical advances in policy making:. Congress set the goal of achieving full employment. and 5. Council of Economic Advisers In the United States. in April 1950. In 1949 Keyserling gained support from powerful Truman advisers Dean Acheson and Clark Clifford. It also created theCouncil of Economic Advisers by the to provide objective economic analysis and advice on the development and implementation of a wide range of domestic and international economic [10] policy issues. this has also been referred to as "Military Keynesianism". replacement of the notion of unemployment as a structural problem by a realization of a low aggregate demand." 2. and stable prices in the Employment Act of 1946. easing credit." During the 1953–54 recession. the replacement of a "cyclical model" of the economy by a "growth model. full production. [edit]Specific countries Assembly of the Volkswagen Beetle in West Germany. the setting of quantitative targets for the economy. 4. recognition of the need for greater flexibility in taxation. warning about the dangers of budget deficits and increased funding of "wasteful" defense costs. However it supported an activist contracyclical approach that helped to establish Keynesianism as a bipartisan economic policy for the nation. 3. Burns and Neil H. . Nourse resigned as chairman. [edit]Military spending Another explanation for this period is the theory of the permanent war economy which suggests that the large spending on the military helped stabilise the global economy. Keyserling succeeded to the chairmanship and influenced Truman's Fair Deal proposals and the economic sections of National Security Council Resolution 68 that. 1. the CEA. In 1949 a dispute broke out between chairman Edwin Nourse and member Leon Keyserling. headed by Arthur Burns deployed traditional Republican rhetoric. asserted that the larger armed forces America needed would not affect living standards or risk the [11] "transformation of the free character of our economy. Nourse believed a choice had to be made between "guns or butter" but Keyserling argued that an expanding economy permitted large defense expenditures without sacrificing an increased standard of living. Jacoby.S. Especially important in formulating the CEA response to the recession—accelerating public works programs.

[edit]Effects . Most developing countries also did well in this period. Go round the country. especially compared to the 1980s and 1990s.6 Post Golden Age 1970–1993 6. Germany. even as the UK itself was experiencing the greatest absolute prosperity in its history (the UK Conservatives' re-election slogan in 1959 was "You've never had it so good"). In France. other social indexes were higher in the golden age. and in Italy it is called Miracolo economico (economic miracle). The economies of Japan. which were plagued by debt and financial crises. go to the industrial towns.7 In addition to superior economic performance. the People's Republic of China and the Four Asian Tigers (possibly excluding South Korea. Japan manufactured much of the world's consumer electronics during this period. [edit]United Kingdom [12] A 1957 speech by British Prime Minister Harold Macmillan brightest years which were to come in the 1960s. which was hit very hard by the East Asian financial crisis of 1997. even before the “ Let us be frank about it: most of our people have never had it so good.4 Golden Age 1950–1969 1. each of these countries caught up to and exceeded the GDP of the United Kingdomduring these years. or "Glorious Thirty". while the economies of Germany and Austria were characterized by Wirtschaftswunder (economic miracle).A transistor radio made by Sanyo in 1959. for example the [14] proportion of Britain's population saying they are "very happy" has fallen from 52% in 1957 to just 36% in 2005. Pre Golden Age 1921–1938 13. and Italy did particularly well. this period is often looked back to with nostalgia as the Trente Glorieuses. France. go to the farms and you will see a state of prosperity such as we have never had in my lifetime – nor indeed in the history of this country [13] ” Employment figures sourced from a standard economics textbook during the Golden Age than before or after: show that unemployment was significantly lower Epoch Date range Percentage of British Labour force unemployed. captures what the golden age felt like. with the notable exceptions of India.

dog and picket fence – see American Dream. During the 1970s steel crisis. import substitution. child. a view advanced by U. which aimed at eliminating poverty in the United States. In the West. the sexual revolution and the beginning of second-wave feminism. It had many social. decolonization. house. This optimism was symbolized through such events as the 1964 New York World's Fair. . it can be summed up (at least for the middle class) as a period of stability and prosperity in which most people could get a job for life. demand for steel declined. the NonAligned Movement. the civil rights movement. and a nuclear arms race. postmodernism. and a multitude of social problems began to emerge. Kennedy in 1962. and the Western world faced competition from newly industrial countries. Thus. cultural and political effects (not least of which was the demographic blip termed the baby boomers). the welfare state.S. opposition to the Vietnam War. In the United States. [edit]Decline The optimism waned however in the 1970s as high oil prices (due to the 1973 oil crisis) hastened the transition to the post-industrial economy. The increased free time of adolescents caused the rise of youth subcultures such as Mods. thespace race. President John F. a marked increase in consumerism. and Lyndon Johnson's Great Society programs.The economic success of the United States allowed the Apollo Program. a spouse. Movements and phenomena associated with this period include the height of the Cold War. concluding the Space race. This was especially harsh for mining and steel districts such as the North American Rust Belt and the West German Ruhr area. there emerged a near complete consensus against strong ideology and a belief that technocratic and scientific solutions could be found to most of humanity's problems. the middle class began a mass migration away from the cities and towards thesuburbs.

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