Corporatism

From 1895 onward, industry underwent major reorganization that had long term impacts on the structure of businesses. Smaller firms began to consolidate into giant firms with a large market share. These mergers involved mass producers of homogeneous goods that exploited efficiencies of volume production.

As businesses grew larger, new bureaucratic hierarchies were necessary. Various levels of managers were established, clear lines of authority were devised, and formal rules were created to govern the company's operations. Corporatism was born.