The Wealth of Nations and Industrial Revolutionary

Along the time, many things have changed in the world. People today see the world with the complete different vision from 100 or 50 years ago. The world’s economy has changed, the technology has had a big jump in these last centuries, laws have changed in some places, and people have made history and broke down the barriers. One important person, who has changed the history of the economy, and the view of it, was Adam Smith. He was the author of “The Wealth of Nations”, one book that Adam Smith putted whole his new ideas about the new management.

That book had an important global impact. Another big event that occurs and change many things in our days was “The industrial Revolution”. “The Industrial Revolution’ refers to a period of massive economic, technological, social and cultural change”. (Wilde) Although, three individuals made history with their ideas, Henry Gantt, Elton Mayo, and Chester Barnard were the people that contributed with the management. Adam Smith wrote his book during the 1776, it’s been long time ago, but still affect us in our days.

Smith as philosopher wrote his book about the mercantilist system. During the 1776 the trade system between the countries was very limited. The only way to buy something from another country was giving something in return. Smith talked about that and he changed. The countries do not need give something in return to buy something from another country. There were topic about his writing was about “The Invisible Hand”. Resuming is looking to be in the first place, results in prosperity, “By giving everyone freedom to produce and exchange goods as they pleased and opening all markets to competition”.

(Wilde) Inside of “The Invisible Hands”, Smith believed about three elements to bring the prosperity: Enlightened self-interest, limited government, and solid currency and free-market economy. Adams Smith and his book gave the world a clear vision the importance of the free-market economics, which his ideas is used in our nowadays. He revolutionized the market and the economy of the world. Consequently, there was another revolution, which changes whole economy world history.

That revolution was called “the industrial revolution” which occurs during the period of 1760/80s. During that not only the industrial power grows, also the technology, people and cultural had a big changes, and the economy grows. Basic “the industrial revolution” was the transformation from the labor work to the industrial and machines work. Industrial revolution made changes in the society.

During that period of revolution many industries got better machines and better tools. Not only that changed, in some factories where labor was by human, was transformed into mechanical work. Otherwise, the social and cultural change had a big impact. Some people disagree about the technology implanted in the factories; one of the reasons was about the child labor, working conditions and public health. Even some disagree about the revolution; the revolution was a big step for our society.

The change was big; people could make things faster and with a good quality. As a consequence, there are more individuals involved in this whole process of evolution and ides to improve the management in the companies. Henry Gantt, Elton Mayo, Chester Barnard. Those individuals made good thought about the management, that somehow still influence the people ideas in our days also the companies in nowadays are still following their philosophies. Therefore, Henry Gantt gave some new ideas about training the workers in a company. Moreover, he is still famous for his creation, that Henry Gantt called “Gantt Charts”.

“Gantt charts are one of the most widely accepted project management tools these days being used by scientists, management students, operations people and many more”. (Gantt) Although, there are another individual that helped the development the management ideas. Elton Mayo had many project and experiences. One of his biggest projects was the Hawthorne; it was a company, located in Chicago, with 29000 employees. His company had a good reputation with the “relationship between work-place lighting and individual efficiency”.

(Mayo) At the same time, he made many experiences; one of those was the study about how he can improve the employees place work. From his research he found out that “job satisfaction increased as workers were given more freedom to determine the conditions of their working environment and to set their own standards of output.” (Mayo) The last one, Chester Barnard and his theories, organization and communication was one of his key theories.

He wrote that the communication it’s very important to be organized, the people who are in charge needs to be very communicative and clear for the rest of employees make the things organize. Also he cited the function of the executive: “Implementation and development of an effective system of communication, Appointment and retention of effective workers, and Motivation of workers”. (Chandran) Many of his ideas we can see clearly in the companies today. I had a bad experience about the communication and organization, if my boss had follow the Barnard philosophy, this problems would not have happened. I used to work in a bank in Brasil.

Somehow my boss hired an American for be the management of the bank. The problem was that he did not speak Portuguese at all. All the employees were confused and they did not know what to do. The new management was really smart also he had a good degree, but that was not enough, he was not be able to communicate with their employees. The communication is very important to make a company organized.

Consequently, all those events resulting in our day, all those events and individuals come across together from the passed in our days. Henry Gantt, Elton Mayo, Chester Barnard were the people how helped with their ideas managenet the industries that was built during the Industrial revolutionary. Their ideas helped the companies who follow it, make the company more organized, productive, and make the employee’s to enjoy their jobs. Also most of their ideas can still be used nowadays.

Work CitedBeattie, Andrew. “Adam Smith And “The Wealth Of Nations”” Adam Smith And “The Wealth Of Nations” N.p., 17 May 2007. Web. 19 Sept. 2012. . . Chandran, J. “Chester Barnard.” Chester Barnard. N.p., n.d. Web. 19 Sept. 2012. . “Elton Mayo.” Elton Mayo. N.p., n.d. Web. 19 Sept. 2012. .

“Henry Gantt.” Henry Gantt. N.p., n.d. Web. 19 Sept. 2012. .

Wilde, Robert. “The Industrial Revolution – An Overview.” European History. .N.p., n.d. Web. 19 Sept. 2012. .