From Foreman To Scientific Management: The Change Of Inner Management System In The Rong's Company Of 1920's

Between the late Qing dynasty and the early Republic of China, the foreman system was carried out in the Rong's companies, which were distributed at Shanghai and Wuxi. The foreman engendered the Double Center phenomenon by collecting technique, experience, and management together: the workers clung to foreman and the company finance centered on investors. This system was originally introduced from foreign capital companies suited in China. Chinese companies followed it as a result of the traditional culture and habitude to a great extent, but mainly because of the cost saving: under the foreman system, the capitalist, on the one hand, obtained managers with technique and experience by giving them foreman identity, and on the other hand, saved much expense on employing, training, and managing workers by using workers' cling to foeman.In 1920s, along with the change of the social culture and its own limitation, the foreman system was replaced gradually by scientific management affected by western management thoughts. The key factors that impelled capitalists to change the foreman system was the disparity between the foreman system and the scientific management on economic performance. Besides, the appearance of new personnel, new management experience and methods. Under these influence, workers, foreman and capitalists, during game choosing, would move from original equilibrium to the equilibrium of scientific management.