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The Redesigning Of The Railroad Industry

1972 words - 8 pages

The railroad industry is the main cause for the advancement of the U.S economy. It was one of the most complex industries, which required more care and attention. Therefore, in order for there to be continued growth and success within the U.S economy, there needed to be some kind of change and structure. However, it would not be small. For instance, making changes such as the gain or loss of income or adding workers would not be enough for the economy to improve and run more smoothly. There needed to be a bigger change in the U.S economy, and the managerial revolution, the rise of big business, mass production and distribution became the foundation for that change.
The railroad business was not just a way to make transportation easier, but it also became a staple in our society. The system of railroads evolved into a big system of networks. It created connections with many local areas, in addition to areas that were further away. The growth in population created expansion, but it also made it increasingly difficult to stay connected with other regions. The progression of the railroad industry made it impossible to continue doing things as they had before. The industry had become too big and complex; therefore, changes needed to be made to the management system.
The success for any business involves a clear idea and purpose. When this is established, it is easier to determine what’s needed to be done for the business. Depending on the business, some of the tasks may be complex or difficult; therefore, they may require a particular understanding. This is where the importance of having departments and planning staff accordingly happened. An example of this would be with the railroad industry, which started out with two departments: one of them being the finance department, which took care of the monetary issues. The other sector was the operation's department, which ran the trains, and it also followed the structural system. It required three managers who had the responsibility of scheduling the times that the trains would run. Other responsibilities included the construction of the railroads and machinery. The commands of the three principal managers had to be reported to the superintendent of that geographical area. To top of the chain of command all three principal managers in each geographical area would report to the superintendent of that area. This superintendent would make sure that all three managers got the work done efficiently. This system was a great improvement as it solved the problem of not being able to handle a complex system such as the railroad. This is why it was important for the operation department to be divided by geographical locations. It proved to be especially an important to the management of the railroad.
Despite the improvement within the managerial system, not everyone was supportive of the idea. Daniel McCallum was someone who disliked the new system because he felt that it was too expensive, and it could be...

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