"Early British economists held that the application of the principle of division of labor was the basis of manufacture.... Charles Babbage, believed ... in [an] "Economy of Machinery and Manufacture." It appears, however, that another principle is the basic one in the rise of industry. It is the transference of skill. The transference of skill from the inventor or designer to the power-driven mechanism brought about the industrial revolution from handicraft to manufacture. It will be necessary to refer to this principle frequently throughout this report, in showing the meaning and position of management in industry."
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Mechanization
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