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The Development of Modern Management Structure in the US and UK

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Management Strategy and Business Development

Abstract

In recent years business practices in the United States and the United Kingdom have been converging. In both countries the largest and most powerful industrial enterprises now use much the same basic type of organisational structure. In 1970, according to one careful study, 72 of the 100 largest industrial enterprises in Britain were administered through some variation of the multidivisional form.1 The percentage had become higher in the United States.

The author gratefully acknowledges the support of the Division of Research at the Harvard Graduate School of Business for this study.

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Notes

  1. Derek F. Channon, The Strategy and Structure of British Enterprise (Boston, 1973) p. 73. It was 86 per cent in US, p. 86.

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  2. Alfred D. Chandler Jr, Strategy and Structure (Cambridge, Mass., 1962) ch. 3 for General Motors and ch. 2 for Du Pont.

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  3. Mira Wilkins, The Emergence of Multinational Enterprise ( Cambridge, Mass., 1970 ) pp. 212–16.

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  4. A. D. H. Kaplan, Big Enterprise in a Competitive System (Washington, 1954 ) pp. 145–8.

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  5. Alfred D. Chandler Jr and Stephen Salsbury, Pierre S. du Pont and the Making of the Modern Corporation (New York, 1971) chs. 3 and 4.

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  6. B. W. E. Alford, W. D. & H. O. Wills (London, 1973 ) pp. 309–14, 330–3.

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  7. D. C. Coleman, Courtaulds (Oxford, 1969) chs. 5, 6.

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  8. Leslie Hannah, ‘Managerial Innovation and the Rise of the Large-Scale Company in Inter-war Britain’, Economic History Review xxvii (1974) 259, and ‘Management Structure’.

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  9. Wilson, Unilever n, 309–13, Charles H. Wilson, Unilever, 1945–1965 (London, 1968) ch. 2.

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  10. Hannah, ‘Managerial Innovation’, pp. 262–8, William J Reader, Imperial Chemical Industries - A History ii (London, 1975) ch. 8.

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  11. Arthur Knight, Private Enterprise and Public Intervention: The Courtaulds Experience (London, 1974) pp. 70–1; Channon, British Enterprise p. 136.

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  12. W. S. and E. S. Woytinsky, Trends and Outlooks in World Population and Production (New York, 1953) pp. 383–5.

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  13. Simon Kuznets, Economic Growth of Nations ( Cambridge, Mass., 1971 ) pp. 38–40.

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  14. H. J. Habakkuk, American and British Technology in the Nineteenth Century (Cambridge, England, 1967) sees advances in American technology almost wholly as a response to labour scarcity. Possibly this is because he focuses on the period before 1860.

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Authors

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Leslie Hannah

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© 1976 Palgrave Macmillan, a division of Macmillan Publishers Limited

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Chandler, A.D. (1976). The Development of Modern Management Structure in the US and UK. In: Hannah, L. (eds) Management Strategy and Business Development. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-03051-4_2

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