VIII-28
The creation TAE Inc. followed the wake a
phonograph depression and its leaner and more efficient
administration was seen "the wisest and most generally
45
accepted cure for decreased profits." Its formation provided
some immediate financial relief that one organization could
do away with the duplication functions within several Edison
companies and provide cost-effective management. This involved
taking away purchasing, advertising, accounting, and
advertising functions from smaller companies and incorporating
them into the departments the main administration.
As the Edison Phonograph Monthly admitted, "from an
organizational standpoint the depression has been advantageous,
A C
forcing reorganize and reduce." TAE Inc. was the
vehicle bring this process all Edison's many business
enterprises, and its early years were marked vigorous
reduction the labor force and white collar workers.
The consolidation many functions into one compact body
increased the productivity smaller white collar work
.
Arranging many jobs into centralized organization also
gave Edison's managers opportunity cut costs. Among
the policies achieve this end was bylaw making any order
or contract worth over $10,000 subject approval and
ratification the Board Directors and senior executives. The
central goal the new organization was reduce costs. The
National Phonograph Company had begun this process when the
bubble burst 1907 and they found themselves depression
