Business theorists from the United States

"Live out of your imagination, not your history."

"We don't invent our missions, we detect them."

"Effective leadership is putting first things first. Effective management is discipline, carrying it out."

"Courage is not the absence of fear but the awareness that something else is more important."

"Remember, to learn and not to do is really not to learn. To know and not to do is really not to know."

"...when you get a good night's sleep and wake up ready to produce throughout the day."

"Self growth is tender; it's holy ground. There's no higher investment."

"Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall."

"The key is not to prioritize what's on your schedule, but to schedule your priorities."

"Most people do not listen with the intent to understand; they listen with the intent to reply."

"In the last analysis, what we are communicates far more eloquently than anything we say or do."

"The power to distinguish between person and performance and to communicate intrinsic worth flows naturally out of our own sense of intrinsic worth."

"Perform anonymous service. Whenever we do good for others anonymously, our sense of intrinsic worth and self-respect increases. … Selfless service has always been one of the most powerful methods of influence."

"Unless we exercise our power to choose wisely, our actions will be determined by conditions. Our ultimate freedom is the right and power to decide how anybody or anything outside ourselves will affect us."

"Live the law of love. We encourage obedience to the laws of life when we live the laws of love."

"Give no answer to contentious arguments or irresponsible accusations. Let such things "fly out open windows" until they spend themselves."

"Prepare your mind and heart before you prepare your speech. What we say may be less important than how we say it."

"Let natural consequences teach responsible behavior. One of the kindest things we can do is to let the natural or logical consequences of people's actions teach them responsible behavior. They may not like it or us, but popularity is a fickle standard by which to measure character development. Insisting on justice demands more true love, not less. We care enough for their growth and security to suffer their displeasure."

"We present a dramatically different approach to time management. This is a principle-centered approach. It transcends the traditional prescriptions of faster, harder, smarter, and more. Rather than offering you another clock, this approach provides you with a compass — because more important than how fast you're going, is where you're headed."

"It's not enough to have values without vision; you want to be good, but you want to be good for something. On the other hand, vision without values can create a Hitler. An empowering mission statement deals with both character and competence; what you want to be and what you want to do in your life."

"Integrity in the Moment of Choice Quality of life depends on what happens in the space between stimulus and response."

"THE MOMENT OF CHOICE A moment of choice is a moment of truth. It's the testing point of our character and competence."

"Trust is the glue that holds everything together. It creates the environment in which all of the other elements — win-win stewardship agreements, self-directing individuals and teams, aligned structures and systems, and accountability — can flourish."

"Make your life work instead of making life full of work."

"Instead of looking at fragments, try to see the whole picture."

"Our life is result of our choices."

"Until you live, learn how to live."

"No gardener, no garden!"

"Often we are so busy with sawing that we forget to sharpen the saw.."

"Wisdom is synergy of mind and heart."

"Our choices make the legacy to our children."

"\textstyle\frac{3}{4} of world problems and bewilderment would be lost if we understood our opponents."

"There will be real happiness, peace of mind and balance, when living by heart and right-mindedly."

"Change happens at the speed of trust. (cf. The SPEED of Trust, 2008)"

"Principles are universal — that is, they transcend culture and geography. They're also timeless, they never change — principles such as fairness, kindness, respect, honesty, integrity, service, contribution. Different cultures may translate these principles into different practices and over time may even totally obscure these principles through the wrongful use of freedom. Nevertheless, they are present. Like the law of gravity, they operate constantly."

"Values are social norms — they're personal, emotional, subjective, and arguable. All of us have values. Even criminals have values. The question you must ask yourself is, Are your values based upon principles? In the last analysis, principles are natural laws — they're impersonal, factual, objective and self-evident. Consequences are governed by principles and behavior is governed by values; therefore, value principles!"

"Spiritual Intelligence represents our drive for meaning and connection with the infinite."

"We are product of neither nature nor nurture; we are a product of choice, because there is always a space between stimulus and response. As we wisely exercise our power to choose based on principles, the space will become larger."

"Because of the space between stimulus and response, people have the power of choice; therefore, leaders are neither born nor made — meaning environmentally trained and nurtured. They are self-made through chosen responses, and if they choose based on principles and develop increasingly greater discipline, their freedom to choose increases."

"Our capacity for production and enjoyment is a function, in the last analysis, of our character, our integrity."

"Retire from your job but never from meaningful projects. If you want to live a long life, you need eustress, that is, a deep sense of meaning and contribution to worthy projects and causes, particularly your intergenerational family."

"We are not human beings having a spiritual experience; we are spiritual beings having a human experience."

"Management is doing things right; leadership is doing the right things."

"Best's enemy is Good."

"Scale will get you strategy."

"Think of it: the lowest common denominator in being digital is not your operating system, modem, or model of computer. It's a tiny piece of plastic, designed decades ago by Bell Labs' Charles Krumreich, Edwin Hardesty, and company, who thought they were making an inconspicuous plug for a few telephone handsets. Not in their wildest dreams was Registered Jack 11 — a modular connector more commonly known as the RJ-11 — meant to be plugged and unplugged so many times, by so many people, for so many reasons, all over the world."

"Young people, I happen to believe, are the world's most precious natural resource."

"You can see the future best through peripheral vision."

"Think about it. Turning pages. How ridiculous that is. It's just unbelievably dumb. … [Apple's] building peripherals for iTunes … We can't turn these kids into couch potatoes."

"MIT is governed by a second, even higher rule: the inalienable right of academic freedom."

"The Internet for us was like air. It was there all the time — you wouldn't notice it existed unless it was missing."

"I've spent my whole life worrying about the human-computer interface, so I don't want to suggest that what we have today is even close to acceptable."

"I think the Net is scaling very well. Because of the way it was designed, I don't think it will come to its knees and crash. I see it as very organic in the way it's capable of living and reproducing itself."

"Cyberlaw is global law."

"Unlike television — at least as it currently exists — the Internet is a medium of choice."

"If you think about it, being digital is Italian. It's underground, provocative, interactive. It has humor, discourse, and debate. It has a kind of liveliness to it."

"The change from atoms to bits is irrevocable and unstoppable. Why now? Because the change is also exponential — small differences of yesterday can have suddenly shocking consequences tomorrow."

"True personalization is now upon us. It's not just a matter of selecting relish over mustard once. The post-information age is about acquaintance over time: machines' understanding individuals with the same degree of subtlety (or more than) we can expect from other human beings, including idiosyncrasies (like always wearing a blue-striped shirt) and totally random events, good and bad, in the unfolding narrative of our lives."

"Personal computers will make our future adult population simultaneously more mathematically able and more visually literate. Ten years from now, teenagers are likely to enjoy a much richer panorama of options because the pursuit of intellectual achievement will not be tilted so much in favor of the bookworm, but instead cater to a wider range of cognitive styles, learning patterns, and expressive behaviors."

"When you write a computer program you've got to not just list things out and sort of take an algorithm and translate it into a set of instructions. But when there's a bug — and all programs have bugs — you've got to debug it. You've got to go in, change it, and then re-execute … and you iterate. And that iteration is really a very, very good approximation of learning."

"Isn't it odd how parents grieve if their child spends six hours a day on the 'Net, but are delighted if those same hours are spent reading books?"

"It is a testament to our naïveté about culture that we think that we can change it by simply declaring new values. Such declarations usually produce only cynicism."

"When executives lead as teachers, stewards, and designers, they fill roles that are much more subtle and long-term than those of power-wielding hierarchical leaders."

"Real learning gets to the heart of what it means to be human. Through learning we re-create ourselves. Through learning we become able to do something we never were able to do. Through learning we reperceive the world and our relationship to it. Through learning we extend our capacity to create, to be part of the generative process of life. There is within each of us a deep hunger for this type of learning."

""Learning organizations" [are] organizations where people continually expand their capacity to create the results they truly desire, where new and expansive patterns of thinking are nurtured, where collective aspiration is set free, and where people are continually learning how to learn together."

"In a learning organization, leaders are designers, stewards, and teachers. They are responsible for building organizations where people continually expand their capabilities to understand complexity, clarify vision, and improve shared mental models – that is, they are responsible for learning."

"Learning to see the structures within which we operate begins a process of freeing ourselves from previously unseen forces and ultimately mastering the ability to work with them and change them."

"In essence, leaders are people who "walk ahead," people genuinely committed to deep changes, in themselves and in their organizations."

"Mutual reflection. Open and candid conversation. Questioning of old beliefs and assumptions. Learning to let go. Awareness of how our own actions create the systemic structures that produce our problems. Developing these learning capabilities lies at the heart of profound change."

"We believe that, ultimately, the most important learning occurs in the context of our day-to-day life, the aspirations we pursue, the challenges we face, and the responses we bring forth."

"A cloud masses, the sky darkens, leaves twist upward, and we know that it will rain. We also know that after the storm, the runoff will feed into groundwater miles away, and the sky will clear by tomorrow. All these events are distant in time and space, and yet they are all connected within the same pattern. Each has an influence on the rest, an influence that is usually hidden from view. You can only understand the system of a rainstorm by contemplating the whole, not any individual part of the pattern. Businesses and other human endeavors are also systems. They, too, are bound by invisible fabrics of interrelated actions, which often take years to fully play out their effects on each other. Since we are part of that lacework ourselves, it's doubly hard to see the whole pattern of change. Instead we tend to focus on snapshots of isolated parts of the system, and wonder why our deepest problems never seem to get solved."

"Systems thinking is a framework for seeing interrelationships rather than things, for seeing patterns rather than static snapshots. It is a set of general principles spanning fields as diverse as physical and social sciences, engineering and management"

"Systems thinking is a discipline for seeing the 'structures' that underlie complex situations, and for discerning high from low leverage change. That is, by seeing wholes we learn how to foster health. To do so, systems thinking offers a language that begins by restructuring how we think."

"Scratch the surface of most cynics and you find a frustrated idealist – someone who made the mistake of converting his ideals into expectations"

"At the heart of this culture is an understanding that an organization's ability to learn, and translate that learning into action rapidly, is the ultimate competitive business advantage."

"Six Sigma has forever changed GE. Everyone—from the Six Sigma zealots emerging from their Black Belt tours, to the engineers, the auditors, and the scientists, to the senior leadership that will take this Company into the new millennium—is a true believer in Six Sigma, the way this Company now works."

"The best Six Sigma projects begin not inside the business but outside it, focused on answering the question—how can we make the customer more competitive? What is critical to the customer’s success?... One thing we have discovered with certainty is that anything we do that makes the customer more successful inevitably results in a financial return for us."

"Loyalty to a company, it's nonsense."

"I enjoy challenging a person's ideas. No one loves a good and passionately fought argument more than I do. This isn't about being tough-minded and straightforward. That's the job. But so is sensing when to hug and when to kick. Of course, arrogant people who refuse to learn from their mistakes have to go. If we're managing good people who are clearly eating themselves up over an error, our job is to help them through it. That doesn't mean you have to take it easy on your top performers."

"The best way to support dreams and stretch is to set apart small ideas with big potential, then give people positive role models and the resources to turn small projects into big businesses."

"I wanted to change the rules of engagement, asking for more— from fewer. I was insisting that we had to have only the best people...If you wanted excellence, at a minimum, the ambience had to reflect excellence."

"In GE every day, there's an informal, unspoken personnel review—in the lunchroom, the hallways, and in every business meeting. That intense people focus—testing everyone in a myriad of environments—defines managing at GE. In the end, that's what GE is. We build great people, who then build great products and services."

"In manufacturing, we try to stamp out variance. With people, variance is everything."

"Change has no constituency—and a perceived revolution has even less."

"There are advantages to being the chairman. One of my favorite perks was picking out an issue and doing what I called a "deep dive." It's spotting a challenge where you think you can make a difference—one that looks like it would be fun—and then throwing the weight of your position behind it. Some might justifiably call it "meddling." I've often done this—just about everywhere in the company."

"If you like business, you have to like GE. If you like ideas, you have to love GE. This is a place where ideas can flow freely from and through more than 20 separate businesses and more than 300,000 employees. Boundaryless behavior allows ideas to come from anywhere. We formalize our freewheeling style in a series of operating meetings that blend into one another."

"Being a CEO is the nuts! A whole jumble of thoughts come to mind: Over the top. Wild. Fun. Outrageous. Crazy. Passion. Perpetual motion. The give-and-take. Meetings into the night. Incredible friendships. Fine wine. Celebrations. Great golf courses. Big decisions in the real game. Crises and pressure. Lots of swings. A few home runs. The thrill of winning. The pain of losing. It's as good as it gets! You get paid a lot, but the real payoff is in the fun."

"Getting every employee's mind into the game is a huge part of what a CEO job is all about. Taking everyone's best ideas and transferring them to others is the secret. There's nothing more important."

"Getting the right people in the right jobs is a lot more important than developing a strategy."

"Arrogance is a killer, and wearing ambition on one's sleeve can have the same effect. There is a fine line between arrogance and self-confidence. Legitimate self-confidence is a winner. The true test of self-confidence is the courage to be open—to welcome change and new ideas regardless of their source. Self-confident people aren't afraid to have their views challenged. They relish the intellectual combat that enriches ideas."

"Business has to be fun. For too many people, it's "just a job.""

"Business success is less a function of grandiose predictions than it is a result of being able to respond rapidly to real changes as they occur."

"One of the office world's most celebrated plutocrats was General Electric CEO Jack Welch, who coined the famous Welchism that employees have unlimited juice to squeeze, and who loved to tell people to "face reality." He earned the nickname Neutron Jack for having fired one hundred twenty-eight thousand of his employees and later boasting that all that was left after his mass firings were the buildings. That, and an enormous amount of cash for Jack and his happy shareholders. Yuk-yuk-yuk. Some people may not find his kind of humor to their liking, but it probably bowled 'em over in Kennebunkport, or the Hamptons, or the Berkshires, or any number of corporate billionaire hangouts... Of course, this doesn't mean that Jack Welch doesn't have a heart. In his autobiography Straight From the Heart, a New Age-infused ego-romp that sold like hotcakes to the credulous masses, Welch did manage to share his thoughts with us on the importance of friendship... buried in the section "A Short Reflection On Golf." Just in case you didn't think he was, uh, human, you see."

"United for Fair Economy, an advocacy group, described Welch's feudal wealth this way: "If Mr. Welch's $83 million total compensation in 1998 were represented by the height of the Empire State Building, how tall would the buildings represented by other GE workers be? The typical factory worker, earning $40,000 a year, would be represented by a building just eight inches tall. A well-compensated General Electric manager, earning $100,000 a year, would be represented by a building less than two feet tall. Considered globally, a typical employee working in a GE factory in Mexico and making $4,500 a year would be represented by a building less than one inch tall- smaller than an anthill.""

"Welch retired just a few days before the terror attacks of 9/11 and was awarded a severance package worthy of a Saudi prince. GE gave Neutron Jack an annual pension of $9 million, health and life insurance, a $15 million Manhattan penthouse, unlimited use of the company's private Boeing 737 jet, a limo, country club memberships, VIP seats at New York Nicks and Yankees games, $7.5 million in furnishings and decorations for his four homes, and more. All this for a man who amassed a personal fortune thought to be close to a billion dollars during his years at GE, while firing one hundred twenty-eight thousand workers. The extent of Neutron Jack's pillage was only revealed after his wife busted him sleeping with another woman. She filed for divorce and sued when Welch offered her a typically Neutron Jack settlement of $15 million, a sum her lawyer termed "offensive." The ensuing Clash of the Gargoyles in the cracked Welch mansion exposed the grotesque size of his compensation, leading to a Securities and Exchange Commission investigation and eventually a pledge by Welch to pay back to GE a part of his retirement package."

"In spite of his loathsome, King George personality, what is most appalling is how Jack Welch managed to become absolutely adored by corporate America's white-collar suckers. His minions who stood absolutely nothing to gain and everything to lose by worshipping his philosophy of destroying tens of thousands in order to enrich a few, called themselves "Welch-heads" in another example of our Reagan-era peasant-like behavior."

"Most Americans today take it for granted that the workplace is unbearably stressful, fearful, and organized to transfer much of the wealth up to a tiny, privileged class of executives and shareholders at the expense of the many. But it wasn't always that way. Long before Neutron Jack, General Electric's stated relationship to their employees was deliberately paternalistic, respectful, secure, and symbiotic. In 1962, right around the time that young Jack Welch joined GE, Earl S. Willis, the manager of employee benefits at General Electric, wrote, "Maximizing employment security is a prime company goal." Later, he wrote, "The employee who can plan his economic future with reasonable certainty is an employer's most productive asset. Contrast this to Jack Welch, who bragged after one hundred twenty-eight thousand firings, one hundred twenty-eight thousand potentially ruined families, that "only the buildings remained standing." Oh, and his billion dollars in savings, his $15 million annual pension, and his company 737."

"Clearly for most Americans, everything is getting worse and worse. The only beneficiaries are the Chainsaw Dunlaps and Neutron Jacks."

"CEO of General Electric for 30 years, Jack Welch was declared the greatest manager of the 20th century. Focusing firmly on results, he revolutionized management to achieve phenomenal growth for his company."

"It is time, as a nation, that we stop worshipping corporate greed and businessmen like Jack Welch, the former head of General Electric. While in corporate circles, and in the corporate media, Jack Welch is regarded as a brilliant and successful businessman, the truth is that he represents almost everything that is wrong with contemporary capitalism. As the CEO of General Electric, Welch moved dozens of GE factories abroad, outsourced hundreds of thousands of jobs, and slashed benefits for many of his employees. To add insult to injury, after destroying the retirement dreams of so many of his workers, he received a $400 million golden parachute for himself. This type of greed and ruthless capitalism is not an economic model we should be embracing. We can do better; we must do better."

"To fully understand what these trade agreements are all about, we should remember what Jack Welch, the former CEO of General Electric, said back in 1998. "Ideally," he said, "you'd have every plant you own on a barge to move with currencies and changes in the economy." What Mr. Welch was saying is that in the CEO's perfect world, companies like his would effortlessly move from country to country, wherever labor was cheapest, taxes were lowest, and environmental protections were weakest. In other words, if the U.S. increased its minimum wage, a company could simply pull up anchor and ship its jobs to Mexico. If Mexico strengthened its environmental laws, no problem, that company would simply move to China. If China banned sweatshops, then the company could just move to Vietnam. Until Vietnam decided to increase taxes, in which case... Well, you get the idea. This is the essence of what the "race to the bottom" is all about, and why millions of Americans are rejecting unfettered free trade. Mr. Welch's analogy of a company on a barge was brutally honest. In this era of free trade, he basically acknowledged that corporations have absolutely no loyalty to the countries where they are based or to the workers they employ. That's exactly what these corporate-backed, corporate-written free trade deals are all about. They really aren't about trade at all. Trade, when structured in a fair manner, can be a driver of increased wages and widely shared prosperity. But free trade agreements aren't fair. Rather, they are all about increasing the profits of multinational corporations that have allegiance only to their bottom line."

"Welch was both an active manager and a master corporate ambassador. He was legendarily peripatetic, traveling constantly to visit GE's far-flung operations, tirelessly grading managers and shuffling them between business units, and developing companywide strategic initiatives with exotic-sounding names like "Six Sigma" and "TQM". Welch had a lively, pugnacious personality and enjoyed his interactions with Wall Street and the business press. He was very comfortable in the limelight, and during his tenure at GE, he frequently appeared on the cover of Fortune magazine."

"Without data, you're just another person with an opinion."

"Uncontrolled variation is the enemy of quality."

"That's all window dressing. That's not fundamental. That's not getting at change and the transformation that must take place. Sure we have to solve problems. Certainly stamp out the fire. Stamp out the fire and get nowhere. Stamp out the fires puts us back to where we were in the first place. Taking action on the basis of results without theory of knowledge, without theory of variation, without knowledge about a system. Anything goes wrong, do something about it, overreacting; acting without knowledge, the effect is to make things worse. With the best of intentions and best efforts, managing by results is, in effect, exactly the same, as Dr. Myron Tribus put it, while driving your automobile, keeping your eye on the rear view mirror, what would happen? And that's what management by results is, keeping your eye on results."

"The worker is not the problem. The problem is at the top! Management!"

"Learning is not compulsory; it's voluntary. Improvement is not compulsory; it's voluntary. But to survive, we must learn."

"Blame the process, not the people."

"They realized that the gains that you get by statistical methods are gains that you get without new machinery, without new people. Anybody can produce quality if he lowers his production rate. That is not what I am talking about. Statistical thinking and statistical methods are to Japanese production workers, foremen, and all the way through the company, a second language. In statistical control you have a reproducible product hour after hour, day after day. And see how comforting that is to management, they now know what they can produce, they know what their costs are going to be."

"I think that people here expect miracles. American management thinks that they can just copy from Japan—but they don't know what to copy!"

"In Europe and in America, people are now more interested in the cost of quality and in systems of quality-audit. But in Japan, we are keeping very strong interest to improve quality by use of methods which you started....when we improve quality we also improve productivity, just as you told us in 1950 would happen."

"Defects are not free. Somebody makes them, and gets paid for making them."

"Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs."

"Quality comes not from inspection, but from improvement of the production process."

"Part of America's industrial problems is the aim of its corporate managers. Most American executives think they are in the business to make money, rather than products or service...The Japanese corporate credo, on the other hand, is that a company should become the world's most efficient provider of whatever product and service it offers. Once it becomes the world leader and continues to offer good products, profits follow."

"The supposition is prevalent the world over that there would be no problems in production or service if only our production workers would do their jobs in the way that they were taught. Pleasant dreams. The workers are handicapped by the system, and the system belongs to the management."

"We cannot rely on mass inspection to improve quality, though there are times when 100 percent inspection is necessary. As Harold S. Dodge said many years ago, 'You cannot inspect quality into a product.' The quality is there or it isn't by the time it's inspected."

"Foremost is the principle that the purpose of consumer research is to understand the customer's needs and wishes, and thus design product and service that will provide better living for him in the future. A second principle is that no one can guess the future loss of business from a dissatisfied customer..."

"The aim of this book is to try to explain to top management of America that their job is to improve competitive position. One need not be an economist to understand from the papers that many American products are not competitive at home or abroad, lost to foreign invasion, causing unemployment at home. Failure of management to plan for the future and to foresee problems has nurtured waste of manpower, of materials and of machine time, all of which raise the manufacturers costs and the price the purchaser must pay. The consumer is not always willing to subsidize this waste."

"Loss of market begets unemployment. Emphasis has been on short-term profit, to the undernourishment of plans that might generate new product and service that would keep the company alive and provide jobs and more jobs. It is no longer socially acceptable performance to lose market and to dump hourly workers on to the heap of unemployed."

"The 14 points [for quality control] apply anywhere, to small organizations as well as to large ones...:"

"Statistical methods had taken fire in America around 1942, following a series of ten-day intensive courses for engineers, initiated by Stanford University on a suggestion from this author. The war department also gave courses at factories of suppliers. Brilliant applications attracted much attention, but the flare of statistical methods by themselves, in an atmosphere in which management did not know their responsibilities, burned, sputtered, fizzled and died out."

"Why waste knowledge?... No company can afford to waste knowledge. Failure of management to breakdown barriers between activities... is one way to waste knowledge. People that are not working together are not contributing their best to the company. People as they work together, feeling secure in the job reinforce their knowledge and efforts. Their combined output, when they are working together, is more than the sum of their separate"

"The prevailing style of management must undergo transformation. A system cannot understand itself. The transformation requires a view from outside. The aim of this chapter is to provide an outside view—a lens—that I call a system of profound knowledge. It provides a map of theory by which to understand the organizations that we work in. The first step is transformation of the individual. This transformation is discontinuous. It comes from understanding of the system of profound knowledge. The individual, transformed, will perceive new meaning to his life, to events, to numbers, to interactions between people. Once the individual understands the system of profound knowledge, he will apply its principles in every kind of relationship with other people. He will have a basis for judgment of his own decisions and for transformation of the organizations that he belongs to."

"The various segments of the system of profound knowledge proposed here cannot be separated. They interact with each other. Thus, knowledge of psychology is incomplete without knowledge of variation."

"A manager of people needs to understand that all people are different. This is not ranking people. He needs to understand that the performance of anyone is governed largely by the system that he works in, the responsibility of management."

"What is a system? A system is a network of interdependent components that work together to try to accomplish the aim of the system. A system must have an aim. Without an aim, there is no system. The aim of the system must be clear to everyone in the system. The aim must include plans for the future. The aim is a value judgment. (We are of course talking here about a man-made system.)"

"It is important that an aim never be defined in terms of a specific activity or method. It must always relate to a better life for everyone."

"Choice of aim is clearly a matter of clarification of values, especially on the choice between possible options."

"A system must be managed. It will not manage itself. Left to themselves in the Western world, components become selfish, competitive, independent profit centres, and thus destroy the system. . . . The secret is cooperation between components toward the aim of the organization. We can not afford the destructive effect of competition."

"To successfully respond to the myriad of changes that shake the world, transformation into a new style of management is required. The route to take is what I call profound knowledge - knowledge for leadership of transformation."

"Management’s job. It is management’s job to direct the efforts of all components toward the aim of the system. The first step is clarification: everyone in the organization must understand the aim of the system, and how to direct his efforts toward it. Everyone must understand the damage and loss to the whole organization from a team that seeks to become a selfish, independent, profit centre."

". . .the principle that where there is fear, there will be wrong figures. . . ."

"What is the variation trying to tell us about a process, about the people in the process?"

"Knowledge is theory. We should be thankful if action of management is based on theory. Knowledge has temporal spread. Information is not knowledge. The world is drowning in information but is slow in acquisition of knowledge. There is no substitute for knowledge."

"Experience by itself teaches nothing...Without theory, experience has no meaning. Without theory, one has no questions to ask. Hence without theory there is no learning."

"In God we trust. All others must bring data."

"Total Quality Management (TQM) in the Department of Defense is a strategy for continuously improving performance at every level, and in all areas of responsibility. It combines fundamental management techniques, existing improvement efforts, and specialized technical tools under a disciplined structure focused on continuously improving all processes. Improved performance is directed at satisfying such broad goals as cost, quality, schedule, and mission need and suitability. Increasing user satisfaction is the overriding objective. The TQM effort builds on the pioneering work of Dr. W. E. Deming, Dr. J. M. Juran, and others, and benefits from both private and public sector experience with continuous process improvement."

"Two of my favourite current management writers are Americans – Clayton Christensen and Peter Senge. My all-time favourite gurus are Peter Drucker, who became a greatly admired friend, and W. Edwards Deming. The thing that set these people apart from many other business commentators is that they didn’t propose any all - encompassing theories, they simply told it like it is. The fact is that life cannot be summarised as a simple set of rules; it’s far too complicated for that and it’s always changing. Unfortunately, all-encompassing panaceas do seem to be popular and certainly sell books, which is why I so value the objectivity of thought that each of these people brought to the debate."

"In recent years there has been increased interest in the effects of internal communication on decision processes. A number of hypotheses relating the bias in information to the final decision have been proposed. In this paper we discuss two laboratory experiments which were designed to test two such hypotheses. The first experiment tests the hypothesis that cost and sales estimations are made with the implicit assumption that a biased pay-off structure exists. The second experiment tests explicitly the effects of biased and unbiased pay-off structures on estimation within an organization. An analysis of the data for the two experiments is made and some implications for further research are drawn from the results."

"Contemporary theories of politics tend to portray politics as a reflection of society, political phenomena as the aggregate consequences of individual behavior, action as the result of choices based on calculated self-interest, history as efficient in reaching unique and appropriate outcomes, and decision making and the allocation of resources as the central foci of political life. Some recent theoretical thought in political science, however, blends elements of these theoretical styles into an older concern with institutions. This new institutionalism emphasizes the relative autonomy of political institutions, possibilities for inefficiency in history, and the importance of symbolic action to an understanding of politics. Such ideas have a reasonable empirical basis, but they are not characterized by powerful theoretical forms. Some directions for theoretical research may, however, be identified in institutionalist conceptions of political order."

"They [human beings] are unwilling to gamble that God made those people who are skilled at rational argumentation uniquely virtuous. They protect themselves and others from cleverness by obscuring their preferences."

"Pure rationality and limited rationality share a common perspective, seeing decisions as based on evaluation of alternatives in terms of their consequences for preferences. This logic of consequences can be contrasted with a logic of appropriateness by which actions are matched to situations by means of rules organized into identities."

"Unfortunately, the gains for imagination are not free. The protections for imagination are indiscriminate. They shield bad ideas as well as good ones—and there are many more of the former than the latter. Most fantasies lead us astray, and most of the consequences of imagination for individuals and individual organizations are disastrous. Most deviants end up on the scrap pile of failed mutations, not as heroes of organizational transformation... There is, as a result, much that can be viewed as unjust in a system that induces imagination among individuals and individual organizations in order to allow a larger system to choose among alternative experiments. By glorifying imagination, we entice the innocent into unwitting self-destruction (or if you prefer, altruism)"

"Social, political and economic institutions have become larger, considerably more complex and resourceful, and prima facie more important to collective life. Many of the major actors in modern economic and political systems are formal organizations, and the institutions of law and bureaucracy occupy a dominant role in contemporary life."

"If a manager asks an academic consultant what to do and that consultant answers, then the consultant should be fired. No academic has the experience to know the context of a managerial problem well enough to give specific advice about a specific situation."

"No organization works if the toilets don't work, but I don't believe that finding solutions to business problems is my job."

"… we sometimes find that such heresies have been the foundation for bold and necessary change, but heresy is usually just crazy. Most daring new ideas are foolish or dangerous and appropriately rejected or ignored. So while it may be true that great geniuses are usually heretics, heretics are rarely great geniuses."

"I am not now, nor I have ever been, relevant."

"You can't control what you can't measure"

"The business of software building isn't really high-tech at all. It's most of all a business of talking to each other and writing things down. Those who were making major contributions to the field were more likely to be its best communicators than its best technicians."

"It's not what you don't know that kills you but what you know that isn't so."

"A day lost at the beginning of project hurts just as much as a day lost at the end."

"People under pressure don’t work better; they just work faster."

"Quality is free, but only to those who are willing to pay heavily for it."

"While the machines have changed enormously, the business of software development has been rather static."

"The manager's function is not to make people work, but to make it possible for people to work."

"Systems engineering as an approach and methodology grew in response to the increase size and complexity of systems and projects... This engineering approach to the management of complexity by modularization was re-deployed in the software engineering discipline in the 1960s and 1970s with a proliferation of structured methodologies that enabled the the analysis, design and development of information systems by using techniques for modularized description, design and development of system components. Yourdon and DeMarco's Structured Analysis and Design, SSADM, James Martin's Information Engineering, and Jackson's Structured Design and Programming are examples from this era. They all exploited modularization to enable the parallel development of data, process, functionality and performance components of large software systems. The development of object orientation in the 1990s exploited modularization to develop reusable software. The idea was to develop modules that could be mixed and matched like Lego bricks to deliver to a variety of whole system specifications. The modularization and reusability principles have stood the test of time and are at the heart of modern software development."

"The performance of business leaders during the next decade will play a major role in determining not only business but political and social trends for a long time to come. Here are some of the principal reasons: - Business leaders control the economic well-being of and stockholder. - The course of business shapes public opinion. - Business leaders shape public opinion. So, in addition to his or her prime responsibility of managing his or her enterprise at a profit, the business leader of today is faced with new and larger responsibilities. And, at the same time, the job of managing his or her enterprise at a profit is increasing in complexity. Consequently, the imposition of additional responsibilities makes the nation’s task of developing an adequate number of properly equipped executive leaders a staggering one indeed."

"I believe that leaders and leadership teams working together in a proper design will run the business more effectively than by hierarchical, command-and-control managing. But I can't prove that. And there are no models."

"People should be judged on the basis of their performance, not nationality, personality, education, or personal traits and skills."

"Decisions should be based on facts, objectively considered — what I call the fact-founded, thought-through approach to decision making."

"A business of high principle generates greater drive and effectiveness because people know that they can do the right thing decisively and with confidence."

"A business of high principle attracts high-caliber people more easily, thereby gaining a basic competitive and profit edge."

"Fourteen basic and well-known managing processes make up the components from which a management system for any business can be fashioned."

"The business with high ethical standards has three primary advantages over competitors whose standards are lower:"

"In large-scale organizations, the factual approach must be constantly nurtured by high-level executives. The more layers of authority through which facts must pass before they reach the decision maker, the greater the danger that they will be suppressed, modified, or softened, so as not to displease the "brass". For this reason, high-level executives must keep reaching for facts or soon they won't know what is going on. Unless they make visible efforts to seek and act on facts, major problems will not be brought to their attention, the quality of their decisions will decline, and the business will gradually get out of touch with its environment."

"The difference between a leadership and a command company can be very great indeed, because in a hierarchical situation, people who have concerns about reactions against themselves would simply not put forward negative information."

"I believe that in a leadership company most people will like their work. But the company will be an even more enjoyable place to work if the culture is designed to make it that way. Leading fosters a working atmosphere that stimulates an open exchange of ideas and fosters dissent. People should show a genuine concern for one another and treat one another with fairness, as peers and friends. With such an atmosphere it should be a pleasure to come to work."

"... for all the reasons we have discussed in these pages, judgments brought to the board by leaders are likely to be better than those coming to the board in a command company. Moreover, the effective working relationships between leaders and directors in a leadership company further ensures the exercise of sound judgments for such momentous decisions ..."

"Marvin Bower, Rhode Island Alpha '25, was honored by Fortune Magazine this year when he was elected to the National Business Hall of Fame. He is considered the "father of modern management consulting."

"Marvin Bower was a great leader and a great teacher. He did not believe leadership could be taught, but he did believe it could be learned. I had the opportunity to observe his deep personal influence on legions of business people and colleagues one by one. For that was his way. One by one."

"The ideas I stand for are not mine. I borrowed them from Socrates. I swiped them from Chesterfield. I stole them from Jesus. And I put them in a book. If you don't like their rules whose would you use?"

"People rarely succeed unless they have fun in what they are doing."

"Most of the important things in the world have been accomplished by people who have kept on trying when there seemed to be no hope at all."

"Flaming enthusiasm, backed up by horse sense and persistence, is the quality that most frequently makes for success."

"Remember happiness doesn't depend upon who you are or what you have; it depends solely on what you think."

"The essence of all art is to have pleasure in giving pleasure."

"Take a chance! All life is a chance. The man who goes farthest is generally the one who is willing to do and dare."

"Monotony is poverty, whether in speech or in life."

"Benjamin Franklin, tactless in his youth, became so diplomatic, so adroit at handling people that he was made American Ambassador to France. The secret of his success? "I will speak ill of no man," he said, "...and speak all the good I know of everybody." Any fool can criticize, condemn and complain - and most fools do. But it takes character and self-control to be understanding and forgiving. "A great man shows his greatness," says Carlyle, "by the way he treats little men.""

"Every act you have ever performed since the day you were born was performed because you wanted something. How about the time you gave a large contribution to the Red Cross? Yes, that is no exception to the rule. You gave the Red Cross the donation because you wanted to lend a helping hand; you wanted to do a beautiful, unselfish, divine act."

"Here is one of the best bits of advice every given about the fine art of human relationships. "If there is any one secret of success," says Henry Ford, "it lies in the ability to get the other person’s point of view and see things from that person’s angle as well as from your own.""

"I often went fishing up in Maine during the summer. Personally I am very fond of strawberries and cream, but I have found that for some strange reason, fish prefer worms. So when I went fishing, I didn’t think about what I wanted. I thought about what they wanted. I didn't bait the hook with strawberries and cream. Rather, I dangled a worm or grasshopper in front of the fish and said: "Wouldn't you like to have that?" Why not use the same common sense when fishing for people?"

"You can make more friends in two months by being interested in them, than in two years by making them interested in you."

"Looking at the other person’s point of view and arousing in him an eager want for something is not to be construed as manipulating that person so that he will do something that is only for your benefit and his detriment. Each party should gain from the negotiation."

"If out of reading this book you get just one thing—an increased tendency to think always in terms of other people’s point of view, and see things from their angle—if you get that one thing out of this book, it may easily prove to be one of the building blocks of your career."

"The average person is more interested in their own name than in all the other names in the world put together."

"A drop of honey can catch more flies than a gallon of gall."

"Abilities wither under criticism, they blossom under encouragement."

"By far the most vital lesson I have ever learned is the importance of what we think. If I knew what you think, I would know what you are. Our thoughts make us what we are."

"Each time I spoke, I gained a little courage. It took a long while—but today I have more happiness than I ever dreamed possible. In rearing my own children, I have always taught them the lesson I had to learn from such bitter experience: No matter what happens, always be yourself!"

"Let's never try to get even with our enemies, because if we do we will hurt ourselves far more than we hurt them. Let's do as General Eisenhower does: let's never waste a minute thinking about people we don't like."

"When we hate our enemies, we are giving them power over us: power over our sleep, our appetites, our blood pressure, our health, and our happiness."

"Remember, today is the tomorrow you worried about yesterday."

"The media wants overnight successes (so they have someone to tear down). Ignore them. Ignore the early adopter critics that never have enough to play with. Ignore your investors that want proven tactics and predictable instant results. Listen instead to your real customers, to your vision and make something for the long haul. Because that's how long it's going to take, guys."

"The problem with competition is that it takes away the requirement to set your own path, to invent your own method, to find a new way."

"The second person to write a story about a young boy and an escaped slave on the Mississippi wasn't a novelist, he was a typist."

"This decade holds many changes for the United States, but the greatest needs regarding America's productivity in the 1990s, are better education and employee training."

"Employees cannot become more productive in every sense of the word unless they are provided with continuous on-the-job training."

"Companies have a responsibility to train and retrain their employees."

"The rapid deterioration of education has been recognized as a national problem for the past several years. Consequently, American businesses must meet the immediate challenge of poorly-educated people in today's workforce by strengthening employee training programs."

"Great leaders recognize that companies must innovate to remain competitive, and they nurture environments that encourage creative thinking... Innovation is rarely accidental — it takes an organizational commitment that starts at the executive level. The idea is not enough. As Thomas Edison said, innovation is 1% inspiration and 99% perspiration. Too often companies forget the ‘perspiration’ or execution part of the equation."

"Dr. Cleland was among the first to see project management strategically as well as tactically, at the center of organizational competencies... It's hard to believe, but there was a time when it was new and unfamiliar. Dr. Cleland was a driving force behind the adoption of project management as a professional competency, and is a key contributor to the success of all organizations that use professional project management standards and methodologies today."

"The criterion of efficiency dictates that choice of alternatives which produces the largest result for the given application of resources."

"If there were no limits to human rationality administrative theory would be barren. It would consist of the single precept: Always select that alternative, among those available, which will lead to the most complete achievement of your goals."

"The techniques of the practitioner are usually called 'synthetic'. He designs by organizing known principles and devices into larger systems."

"Most of the propositions that make up the body of administrative theory today share, unfortunately, this defect of proverbs. For almost every principle one can find an equally plausible and acceptable contradictory principle."

"Broadly stated, the task is to replace the global rationality of economic man with a kind of rational behavior that is compatible with the access to information and the computational capacities that are actually possessed by organisms, including man, in the kinds of environments in which such organisms exist."

"Over Christmas, Allen Newell and I created a thinking machine."

"It is not my aim to surprise or shock you – but the simplest way I can summarize is to say that there are now in the world machines that think, that learn and that create. Moreover, their ability to do these things is going to increase rapidly until – in a visible future – the range of problems they can handle will be coextensive with the range to which the human mind has been applied."

"Before we can establish any immutable 'principles' of administration, we must be able to describe, in words, exactly how an administrative organization looks and exactly how it works."

"The world you perceive is drastically simplified model of the real world."

"Whereas economic man maximizes - selects the best alternative from among all those available to him, his cousin, administrative man, satisfices - looks for a course of action that is satisfactory or "good enough.""

"Economic man deals with the "real world" in all its complexity. Administrative man recognizes that the world he perceives is a drastic simplified model... He makes his choices using a simple picture of the situation that takes into account just a few of the factors that he regards as most relevant and crucial."

"A major task in organizing is to determine, first, where the knowledge is located that can provide the various kinds of factual premises that decisions require."

"Before a science can develop principles, it must possess concepts. Before a law of gravitation could be formulated, it was necessary to have the notions of “acceleration” and “weight.”"

"The first task of administrative theory is to develop a set of concepts that will permit the description, in terms relevant to the theory, of administrative situations. These concepts, to be scientifically useful, must be operational; that is, their meanings must correspond to empirically observable facts or situations."

"In the process of decision those alternatives are chosen which are considered to be appropriate means of reaching desired ends. Ends themselves, however, are often merely instrumental to more final objectives. We are thus led to the conception of a series, or hierarchy, of ends. Rationality has to do with the construction of means-ends chains of this kind."

"The fact that goals may be dependent for their force on other more distant ends leads to the arrangement of these goals in a hierarchy - each level to be considered as an end relative to the levels below it and as a mean to the levels above it."

"The function of knowledge in the decision-making process is to determine which consequences follow upon which of the alternative strategies. It is the task of knowledge to select from the whole class of possible consequences a more limited subclass, or even (ideally) a single set of consequences correlated with each strategy."

"It is impossible for the behavior of a single, isolated individual to reach a high degree of rationality. The number of alternatives he must explore is so great, the information he would need to evaluate them so vast that even an approximation to objective rationality is hard to conceive. Individual choice takes place in rationality is hard to conceive... Actual behavior falls short in at least three ways, of objective rationality:"

"# Rationality requires a complete knowledge and anticipation of the consequences that will follow on each choice. In fact, knowledge of consequences is always fragmentary"

"#Since these questions lie in the future, imagination must supply the lack of experienced feeling in attaching value to them. But values can be only imperfectly anticipated."

"# Rationality requires a choice among all possible alternative behaviors. In actual behavior, only a very few of all these possible alternatives come to mind."

"Roughly speaking, rationality is concerned with the selection of preferred behavior alternatives in terms of some system of values, whereby the consequences of behavior can be evaluated."

"Organizations and institutions permit stable expectations to be formed by each member of the group as to the behavior of the other members under specified conditions."

"Organizations and institutions provide the general stimuli and attention-directors that channelize the behaviors of the members of the group, and that provide those members with the intermediate objectives that stimulate action."

"The behaviour of individuals is the tool with which the organisation achieves its targets."

"In order to survive, the organization must have an objective that appeals to its customers, so that they will make the contributions necessary to sustain it. Hence, organization objectives are constantly adapted to conform to the changing values of customers, or to secure new groups of customers in place of customers who have dropped away. The organization may also undertake special activities to induce acceptance of its objectives by customers - advertising, missionary work, and propaganda of all sorts."

"We will likely also find that the nature of the problem to be solved will be a principal determinant of the mix. With our growing understanding of the organization of judgmental and intuitive processes, of the specific knowledge that of the specific knowledge that is required to perform particular judgmental tasks, and of the cues that evoke such knowledge in situations in which it is relevant, we have a powerful new tool for improving expert judgment. We can specify the knowledge and the recognition capabilities that experts in a domain need to acquire, and use these specifications for designing appropriate learning procedures."

"The principle of bounded rationality [is] the capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world — or even for a reasonable approximation to such objective rationality."

"In these two essays [the papers of 1955 and 1956] the focus is upon ways of simplifying the choice problem to bring it within the power of human computation... The key to the simplification of the choice process in both cases is the replacement of the goal of maximizing with the goal of satisficing, of finding a course of action that is ‘good enough’. I have tried, in these two essays, to show why this substitution is an essential step in the application of the principle of bounded rationality."

"Administration is not unlike play-acting. The task of the good actor is to know and play his role, although different roles may differ greatly in content. The effectiveness of the performance will depend on the effectiveness of the play and the effectiveness with which it is played. The effectiveness of the administrative process will vary with the effectiveness of the organization and the effectiveness with which its members play their parts."

"If by motivation we mean whatever it is that causes someone to follow a particular course of action, then every action is motivated — by definition. But in most human behavior the relation between motives and action is not simple; it is mediated by a whole chain of events and surrounding conditions. We observe a man scratching his arm. His motive (or goal)? To relieve an itch."

"Decision making processes are aimed at finding courses of action that are feasible or satisfactory in the light of multiple goals and constraints."

"At the time of its initial publication, Public Administration helped to define this field of study and practice by introducing two major new emphases: an orientation toward human behavior and human relations in organizations, and an emphasis on the interaction between administration, politics, and policy. Without neglecting more traditional concerns with organization structure, Simon, Thompson, and Smithburg viewed administration in its behavioral and political contexts. The viewpoints they express still are at the center of public administration's concerns."

"By public administration is meant, in common usage, the activities of the executive branches of national, state, and local governments; independent boards and commissions set up by the congress and state legislatures; government corporations, and certain agencies of a specialized character. Specifically excluded are judicial and legislative agencies within the government and nongovernmental administration."

"The function of knowledge in the decision-making process is to determine which consequences follow upon which of the alternative strategies."

"The capacity of the human mind for formulating and solving complex problems is very small compared with the size of the problems whose solution is required for objectively rational behavior in the real world—or even for a reasonable approximation to such objective rationality."

"The first consequence of the principle of bounded rationality is that the intended rationality of an actor requires him to construct a simplified model of the real situation in order to deal with it. He behaves rationally with respect to this model, and such behavior is not even approximately optimal with respect to the real world. To predict his behavior we must understand the way in which this simplified model is constructed, and its construction will certainly be related to his psychological properties as a perceiving, thinking, and learning animal."

"A number of proposals have been advanced in recent years for the development of ‘general systems theory’ which, abstracting from properties peculiar to physical, biological, or social systems, would be applicable to all of them. We might well feel that, while the goal is laudable, systems of such diverse kinds could hardly be expected to have any nontrivial properties in common. Metaphor and analogy can be helpful, or they can be misleading. All depends on whether the similarities the metaphor captures are significant or superficial. It may not be entirely vain, however, to search for common properties among diverse kinds of complex systems... The ideas of feedback and information provide a frame of reference for viewing a wide range of situations, just as do the ideas of evolution, of relativism, of axiomatic method, and of operationalism... hierarchic systems have some common properties that are independent of their specific content..."

"In an information-rich world, the wealth of information means a dearth of something else: a scarcity of whatever it is that information consumes. What information consumes is rather obvious: it consumes the attention of its recipients. Hence a wealth of information creates a poverty of attention and a need to allocate that attention efficiently among the overabundance of information sources that might consume it."

"We are organization watchers in our role as citizens. Increasing attention has been fixed in recent years upon the functioning of society’s organizations: its large corporations and its governments. Hence this could also be described as a book for Everyman–for it proposes a way of thinking about organizational issues that concern us all."

"Human beings, viewed as behaving systems, are quite simple. The apparent complexity of our behavior over time is largely a reflection of the complexity of the environment in which we find ourselves."

"Definition of design = Everyone designs who devise courses of action aimed at changing existing situations into preferred ones. The intellectual activity that produces material artifacts is no different fundamentally from the one that prescribes remedies for a sick patient or the one that devises a new sales plan for a company or a social welfare policy for a state."

"Decision theory can be pursued not only for the purposes of building foundations for political economy, or of understanding and explaining phenomena that are in themselves intrinsically interesting, but also for the purpose of offering direct advice to business and governmental decision makers. For reasons not clear to me, this territory was very sparsely settled prior to World War II. Such inhabitants as it had were mainly industrial engineers, students of public administration, and specialists in business functions, none of whom especially identified themselves with the economic sciences. Prominent pioneers included the mathematician, Charles Babbage, inventor of the digital computer, the engineer, Frederick Taylor and the administrator, Henri Fayol. During World War II, this territory, almost abandoned, was rediscovered by scientists, mathematicians, and statisticians concerned with military management and logistics, and was renamed “operations research” or “operations analysis.” So remote were the operations researchers from the social science community that economists wishing to enter the territory had to establish their own colony, which they called “management science”."

"During and after World War II, a large number of academic economists were exposed directly to business life, and had more or less extensive opportunities to observe how decisions were actually made in business organizations. Moreover, those who became active in the development of the new management science were faced with the necessity of developing decision-making procedures that could actually be applied in practical situations. Surely these trends would be conducive to moving the basic assumptions of economic rationality in the direction of greater realism."

"Now the salient characteristic of the decision tools employed in management science is that they have to be capable of actually making or recommending decisions, taking as their inputs the kinds of empirical data that are available in the real world, and performing only such computations as can reasonably be performed by existing desk calculators or, a little later electronic computers. For these domains, idealized models of optimizing entrepreneurs, equipped with complete certainty about the world - or, a worst, having full probability distributions for uncertain events - are of little use. Models have to be fashioned with an eye to practical computability, no matter how severe the approximations and simplifications that are thereby imposed on them... The first is to retain optimization, but to simplify sufficiently so that the optimum (in the simplified world!) is computable. The second is to construct satisficing models that provide good enough decisions with reasonable costs of computation. By giving up optimization, a richer set of properties of the real world can be retained in the models... Neither approach, in general, dominates the other, and both have continued to co-exist in the world of management science."

"In Administrative Behavior, bounded rationality is largely characterized as a residual category — rationality is bounded when it falls short of omniscience. And the failures of omniscience are largely failures of knowing all the alternatives, uncertainty about relevant exogenous events, and inability to calculate consequences. There was needed a more positive and formal characterization of the mechanisms of choice under conditions of bounded rationality... Two concepts are central to the characterization: search and satisficing."

"We need to augment and amend the existing body of classical and neoclassical economic theory to achieve a more realistic picture of economic process."

"If we accept values as given and consistent, if we postulate an objective description of the world as it really is, and if we assume that the decision maker's computational powers are unlimited, then two important consequences follow. First, we do not need to distinguish between the real world and the decision maker's perception of it: he or she perceives the world as it really is. Second, we can predict the choices that will be made by a rational decision maker entirely from our knowledge of the real world and without a knowledge of the decision maker's perceptions or modes of calculation. (We do, of course, have to know his or her utility function.)"

"Modem mainstream economic theory bravely assumes that people make their decisions in such a way as to maximize their utility. Accepting this assumption enables economics to predict a great deal of behavior (correctly or incorrectly) without ever making empirical studies of human actors."

"First, most producers are employees of firms, not owners. Viewed from the vantage point of classical [economic] theory, they have no reason to maximize the profits of firms, except to the extent that they can be controlled by owners. Moreover, profit-making firms, nonprofit organizations, and bureaucratic organizations all have exactly the same problem of inducing their employees to work toward organizational goals. There is no reason, a priori, why it should be easier (or harder) to produce this motivation in organizations aimed at maximizing profits than in organizations with different goals. If it is true in an organizational economy that organizations motivated by profits will be more efficient than other organizations, additional postulates will have to be introduced to account for it."

"Organizations are systems of coordinated action among individuals and groups whose preferences, information, interests, or knowledge differ. Organization theories describe the delicate conversion of conflict into cooperation, the mobilization of resources, and the coordination of effort that facilitate the joint survival of an organization and its members."

"Global rationality, the rationality of neoclassical theory, assumes that the decision maker has a comprehensive, consistent utility function, knows all the alternatives that are available for choice, can compute the expected value of utility associated with each alternative, and chooses the alternative that maximizes expected utility. Bounded rationality, a rationality that is consistent with our knowledge of actual human choice behavior, assumes that the decision maker must search for alternatives, has egregiously incomplete and inaccurate knowledge about the consequences of actions, and chooses actions that are expected to be satisfactory (attain targets while satisfying constraints)."

"If we want a theory explaining how people play billiards, we do not want a theory of perfect billiard balls; we want a theory of what heuristics a human billiard player uses in order to plan and make a (often not quite accurate) shot. These heuristics and actions do not involve solving the differential equations of the billiard board; they involve rules of thumb and it is these practice guides to action we are trying to discover in order to explain the behavior."

"We distinguish diagrammatic from sentential paper-and-pencil representations of information by developing alternative models of information-processing systems that are informationally equivalent and that can be characterized as sentential or diagrammatic. Sentential representations are sequential, like the propositions in a text. Diagrammatic representations are indexed by location in a plane. Diagrammatic representations also typically display information that is only implicit in sentential representations and that therefore has to be computed, sometimes at great cost, to make it explicit for use. We then contrast the computational efficiency of these representations for solving several.illustrative problems in mathematics and physics."

"In view of the dramatic effects that alternative representations may produce on search and recognition processes, it may seem surprising that the differential effects on inference appear less strong. Inference is largely independent of representation if the information content of the two sets of inference rules [one operating on diagrams and the other operating on verbal statements] is equivalent—i.e. the two sets are isomorphs as they are in our examples"

"[Even Darwin’s] natural selection only predicts that survivors will be fit enough, that is, fitter than their losing competitors; it postulates satisficing, not optimizing."

"Computers were within my sphere of attention, but only computers used as number crunchers. In spite of the "giant brain" metaphor, there is little suggestion in this 1950 talk that the most important application of computers might lie in imitating intelligence symbolically, not numerically."

"The true line is not between “hard” natural science and “soft” social sciences, but between precise science limited to highly abstract and simple phenomena in the laboratory and inexact science and technology dealing with complex problems in the real world."

"Since my world picture approximates reality only crudely, I cannot aspire to optimize anything; at most, I can aim at satisficing. Searching for the best can only dissipate scarce cognitive resources; the best is the enemy of the good. (p.361)"

"The empirical research of the last fifteen years on the structure of large organizations seems to confirm the hypothesis of Herbert Simon that human cognitive limits are a basic limiting factor in determining organization structures ."

"Herbert A. Simon's scientific output goes far beyond the disciplines in which he has held professorships: political science, administration, psychology and information sciences. He has made contributions in the fields of science theory, applied mathematics, statistics, operations research, economics and business and public administration (and), in all areas in which he has conducted research, Simon has had something of importance to say."

"He used to give us a hard time. He likes to take on the devil's advocate role. In his Sciences of the Artificial he's pretty balanced."

"He was rightly complaining about some, if not a lot, of the economic literature at the time that he was moving away from economics. I have a couple of comments. I think a lot of the models that we have now, with the dynamics and the uncertainty, address a lot of the observations that were troubling Herb Simon. He is, by the way, a big proponent of positive economic methods."

"All that most economists know about Herbert Simon is that he wrote about bounded rationality and organizational behavior."

"Much of the pioneering work in organization theory was written about public organizations, or with public organizations in mind. When Weber wrote about bureaucracy, he was thinking of the Prussian civil service. Philip Selznick began his scholarly career writing about the New Deal Tennessee Valley Authority in TVA and the Grass Roots (1953). Herbert Simon’s first published article (1937) was on munipical government performance measurement, and Simon also coauthored early in his career a book called Public Administration (1950) and a number of papers (e.g., Simon, 1953) published in Public Administration Review."

"While it is becoming increasingly obvious that the fundamental architecture of a system has a profound Influence on the quality of its human factors, the vast majority of human factors studies concern the surface of hardware (keyboards, screens) or the very surface of the software (command names, menu formats)."

"Technology policy - whether we should have one and what form such a policy should take - was a core issue of the 1992 presidential campaign, and in February 1993 the Clinton administration confirmed that fostering new technologies will be a critical part of its agenda for redirecting the American economy."

"While political and cultural factors are important as explanations for differences in national technology policy and industrial practices, emergent trends in science, engineering and management are leading to new paradigms for high-technology innovation in both Japan and the United States."

"An exploration of the challenges Korea faces in transforming its economy from a government-directed, low-cost producer to an innovative world economic power based on its own scientific and technological development."

"The progress of science still depends on "a few people of vision"."

"Shortly after taking office in 1993, President Bill Clinton and Vice President Al Gore called for a shift in American technology policy toward an expansion of public investments in partnerships with private industry."

"Scientists are used to debating with one another about the finer points of new research. But increasingly, they find themselves battling their televisions and computer screens, which transmit ever-more-heated rhetoric from politicians, pundits, and other public figures who misinterpret, misrepresent, and malign scientific results."

"Science has been the absolute bedrock of technological and economic progress in the United States."

"I believe that there are very few scientists who deliberately falsify their work, cheat on their colleagues, or steal from their students. On the other hand, I am afraid that a great many scientists deceive themselves from time to time in their treatment of data, gloss over problems involving systematic errors, or understate the contributions of others. These are the 'honest mistakes' of science. The scientific equivalent of the 'little white lie' of social discourse. The scientific community has no way to protect itself from sloppy or deceptive literature except to learn whose work is suspect as unreliable."

"Teachers of science in schools and colleges must be masters of the tools for ensuring integrity in science and must instill them in their students."

"We must understand that the fact of error, demonstrated in subsequent work, does not suggest that ethical lapses are responsible. It is more likely that the source of error is, as the advertisement says, a reflection of the fact that "its dangerous to trifle with Mother Nature"."

"I distinguish two kinds of "applied" research: problem-solving research — government or commercially initiated, centrally managed and institutionally coupled to a plan for application of the results, useful science — investigator-initiated, competitively evaluated and widely communicated. Then we have basic science — useful also, also investigator-initiated, competitively evaluated and widely communicated."

"God loves the noise as much as the signal."

"Life is pretty simple: You do some stuff. Most fails. Some works. You do more of what works. If it works big, others quickly copy it. Then you do something else. The trick is the doing something else."

"I had no idea what I was doing when I wrote Search. There was no carefully designed work plan. There was no theory that I was out to prove. I went out and talked to genuinely smart, remarkably interesting, first-rate people. I had an infinite travel budget that allowed me to fly first class and stay at top-notch hotels and a license from McKinsey to talk to as many cool people as I could all around the United States and the world. I went to see Karl Weick, who had totally influenced my life. I had read his work a thousand times, and I'd never met him. I went to Oslo to talk with , who had studied empowerment on oil tankers. I went to the in London, where the leading thinkers on organizational development were looking at why people work together effectively in team configurations under certain circumstances. Word of the meeting got back to McKinsey USA, and I was invited to give a presentation to the top management of PepsiCo... The time was drawing near for the Pepsi presentation to take place. One morning at about 6, I sat down at my desk overlooking the San Francisco Bay from the 48th floor of the Bank of America Tower, and I closed my eyes. Then I leaned forward, and I wrote down eight things on a pad of paper. Those eight things haven't changed since that moment. They were the eight basic principles of Search."

"Bosses: You make your living going to meetings. Hence any meeting that does not bubble and incite enthusiasm is a forever-lost opportunity."

"EXCELLENCE in <140 Characters: Cherish your people, cuddle your customers, wander around, “try it” beats “talk about it,” Excellence or else, tell the truth."

"Creating in all employees the awareness that their best efforts are essential and that they will share in the rewards of the company's success."

"Without exception, the dominance and coherence of culture proved to be an essential quality of the excellent companies."

"Transforming leadership, [is defined as] leadership that builds on man's need for meaning, leadership that creates institutional purpose … he is the value-shaper, the exemplar, the maker of meanings … he is the true artist, the true pathfinder."

"Most of their real innovation comes from the market"

"What gets measured gets done."

"Every excellent company we studied is clear on what it stands for, and takes the process of value shaping seriously. In fact, we wonder whether it is possible to be an excellent company without clarity on values and without having the right sorts of values."

"Life is too short for non-WOW projects."

"Lists simplify, clarify, edify."

"If not excellence, what? If not excellence now, when?"

"The vitality of our network will determine our professional fate."

"Reward excellent failures. Punish mediocre successes."

"Service is the highest human calling."

"Do not even flippantly badmouth anybody this week. Button it up."

"The Big Four: Out-read 'em. Out-study 'em. Out-present 'em. Out-listen 'em."

"As project chief you are creating a narrative, a story, a good yarn. If you look at the process-journey that way, you and your gang will … dramatically up the odds of a WOW outcome!"

"The Peters Principles: Enthusiasm. Emotion. Excellence. Energy. Excitement. Service. Growth. Creativity. Imagination. Vitality. Joy. Surprise. Independence. Spirit. Community. Limitless human potential. Diversity. Profit. Innovation. Design. Quality. Entrepreneurialism. Wow."

"What is my personal strategy for the next 10 hours? Who can I talk with or what can I volunteer for to learn something new?"

"Musing on the phrase ‘waste of time.’ So much more complex than it appears. Many ‘wastes of time’—small talk, daydreaming—are imperatives.”"

"If you want to achieve Excellence, you can get there today. As of this second, quit doing less than Excellent work. The first 99.9% of getting from here to there is the determination to do it and not to compromise, no matter what set of road blocks those around you erect."

"Have fun/Make it fun. … All human endeavor is about emotion. Zest, joy, pride—and fun—are near the heart of any successful enterprise."

"Make the collective, professional pursuit of listening skills per se a keystone of corporate 'culture'."

"The most important personal ‘core competence’ by far is a rich set of relationships."

"The well-served customer...is an appreciating asset. Every small act on her or his behalf ups the odds of repeat business, add-on business, and priceless word-of-mouth referral."

"Training in listening, in statistical techniques and problem cause-and-effect analysis, in group problem solving, in sophisticated financial analysis (for everyone)—and then constant retraining, for upgrading and learning new skills—simply must become the norm, for realtor, banker, or high-tech wizard."

"The ... moral responsibility ... of every leader is staggering—an opportunity to be of service to (literally) civilization. Or not."

"Read deep! Read often! Out-READ the 'Competition'!!!"

"Ask! Interviewing/information extraction is an (exceptionally important) ‘art’ that must be mastered!"

"Success is about executing what you are doing today with unquestionable, breathtaking excellence."

"A ‘Client’ is ..."

"someone with whom I have an intimate relationship"

"in it with me for the long haul"

"someone with whom I co-invent the future"

"No such thing as a 'non-leader.' Every day offers every one of us scads of leadership opportunities."

"R&D/good times and bad times. R&D may have to take its lumps in tough times ... But beware of cutting too much muscle."

"Design, writ large, is increasingly the route to product or service differentiation."

"Passionate servant leaders, determined to create a legacy of earthshaking transformation in their domain create/must necessarily create organizations which are ... no less than Cathedrals in which the full and awesome power of the Imagination and Spirit and native Entrepreneurial flair of diverse individuals is unleashed ... In passionate pursuit of jointly perceived soaring purpose and personal and community and client service Excellence."

"Punctuality at meetings influences culture of punctuality, i.e., promise-keeping in general, on-time deliveries, etc."

"Organizations exist only to serve. Leaders exist only to serve."

"In the private or public sector, in big business or small, we observe that there are only two ways to create and sustain superior performance over the long haul. First, take exceptional care of your customers ... via superior service and superior quality. Second, constantly innovate. That’s it."

"‘Soft’ skills will be 10X more important in a virtual/work-at-home world. Team dynamics, individual growth, team creativity will dominate effectiveness.”"

"Most important things take lots of time. Peerless quality. Relationship building. Developing people. Superb design. EXCELLENCE."

"An organization, no matter how ‘technologically transformed,’ is at the end of the day no more/no less than: PEOPLE SERVING PEOPLE. (And as leader, your job is: SERVE THE PEOPLE WHO SERVE THE PEOPLE.) (One last thing: The people we serve are our Customers AND our Communities.)"

"Design that matters infuses HR and Purchasing and Finance as much as product development."

"Hire for all jobs based on empathy. Employ people who care about people; everything else can be trained."

"Everybody loves being recognized, in any way, large or small. ... Appreciation, applause, approval, respect—we all love it!"

"Professional success requires ... drive, initiative, commitment, involvement, and—above all—enthusiasm."

"Brains are in; heavy lifting is out. That's the essential nature of the new knowledge-based economy. Therefore, the development of knowledge is close to job No. 1 for corporations."

"Tennis or finance or engineering or bartending … this ‘simple’ lesson bears repeating. … Study! Study! Study!"

"Machines can automate a lot of things, but design is something humans do best."

"A blizzard of small steps and memorable touches are more important than ‘breakthrough’ attempts. So, take those constant small steps forward into the unknown."

"In the age of advancing AI, humans’ advantage is diversity—twists and turns and acts of customer love and amazement that the algorithms can’t match!"

"Superb relationships are at the heart of success. Kindness is the core of superb relationships."

"People first!"

"A career is a portfolio of projects that teach you new skills, gain you new expertise, develop new capabilities, grow your colleague set and constantly reinvent you as a brand."

"Over the past decade, I have watched more than 100 companies try to remake themselves into significantly better competitors. They have included large organizations (Ford) and small ones (Landmark Communications), companies based in the United States (General Motors) and elsewhere (British Airways), corporations that were on their knees (Eastern Airlines), and companies that were earning good money ((Bristol-Myers Squibb). Their efforts have gone under many banners: total quality management, reengineering, right-sizing, restructuring, cultural change, and turnarounds. But, in almost every case, the basic goal has been the same: to make fundamental changes in how business is conducted in order to help cope with a new, more challenging market environment."

"The most general lesson to be learned from the more successful cases is that the change process goes through a series of phases that, in total, usually require a considerable length of time. Skipping steps creates only the illusion of speed and never produces satisfactory results."

"Management makes a system work. It helps you do what you know how to do. Leadership builds systems or transforms old ones. It takes you into territory that is new and less well known, or even completely unknown to you."

"Nothing undermines change more than behavior by important individuals that is inconsistent with the verbal communication."

"Whenever smart and well-intentioned people avoid confronting obstacles, they disempower employees and undermine change."

"Management is a set of processes that can keep a complicated system of people and technology running smoothly. The most important aspects of management include planning, budgeting, organizing, staffing, controlling, and problem solving. Leadership is a set of processes that creates organizations in the first place or adapts them to significantly changing circumstances. Leadership defines what the future should look like, aligns people with that vision, and inspires them to make it happen despite the obstacles."

"In successful transformations, the president, division general manager, or department head plus another five, fifteen, or fifty people with a commitment to improved performance pull together as a team."

"Leading Change describes the eight steps people follow to produce new ways of operating. In The Heart of Change, we dig into the core problem people face in all of these steps, and how to successfully deal with that problem. Our main finding, put simply, is that the central issue is never strategy, structure, culture, or systems. All those elements, and others, are important. But the core of the matter is always about changing the behavior of people, and behavior change happens in highly successful situations mostly by speaking to people's feelings."

"Changing behavior is less a matter of giving people analysis to influence their thoughts than helping them to see a truth to influence their feelings."

"The heart of change is in the emotions."

"Analytical tools have their limitations in a turbulent world. These tools work best when parameters are known, assumptions are minimal, and the future is not fuzzy."

"Motivation is not a thinking word; it’s a feeling word."

"Budgeting is a math exercise, number crunching. Planning is a logical, linear process. Strategizing requires a great deal of information about customers and competitors, along with conceptual skills. Visioning uses a very different part of the brain than budgeting. As the name implies, it involves trying to see possible futures. It inevitably has both a creative and emotional component (e.g., “How do we feel about the options?”). When you use “orthodox planning” to create a vision, frustration and failure are inevitable."

"No vision issue today is bigger than the question of efficiency versus some combination of innovation and customer service."

"Never underestimate the power of a good story."

"Good communication is not just data transfer. You need to show people something that addresses their anxieties, that accepts their anger, that is credible in a very gut-level sense, and that evokes faith in the vision."

"Great vision communication usually means heartfelt messages are coming from real human beings."

"Never underestimate the power of the mind to disempower."

"Without conviction that you can make change happen, you will not act, even if you see the vision. Your feelings will hold you back."

"One of the most powerful forms of information is feedback on our own actions."

"The rate of change in the business world is not going to slow down anytime soon. If anything, competition in most industries will probably speed up over the next few decades. Enterprises everywhere will be presented with even more terrible hazards and wonderful opportunities, driven by the globalization of the economy along with related technological and social trends"

"Valued achievements connect to people at a deeper level—and a deeper level can change behavior that is generally very difficult to change."

"We keep a change in place by helping to create a new, supportive, and sufficiently strong organizational culture."

"In a change effort, culture comes last, not first."

"A culture truly changes only when a new way of operating has been shown to succeed over some minimum period of time."

"We see, we feel, we change."

"Creativity thinks up new things. Innovation does new things. The difference speaks for itself. Yet the fluent advisers to business seldom make the distinction. They tend to rate ideas more by their novelty than by their practicability."

"People don't want to buy a quarter-inch drill, they want a quarter-inch hole."

"Every major industry was once a growth industry. But some that are now riding a wave of growth enthusiasm are very much in the shadow of decline. Others, which are thought of as seasoned growth industries, have actually stopped growing. In every case the reason growth is threatened, slowed, or stopped is not because the market is saturated. It is because there has been a failure of management."

"The difference between marketing and selling is more than semantic. Selling focuses on the needs of the seller; marketing on the needs of the buyer. Selling is preoccupied with the seller’s need to convert his product into cash; marketing with the idea of satisfying the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering and finally consuming it."

"The historic fate of one growth industry after another has been its suicidal product provincialism."

"I do not mean that selling is ignored. Far from it. But selling, again, is not marketing. As already pointed out, selling concerns it with the tricks and techniques of getting people to exchange their cash for your product. It is not concerned with the values that the exchange is all about. And it does not, as marketing invariably does, view the entire business process as consisting of a tightly integrated effort to discover, create, arouse, and satisfy customer needs. The customer is somebody "out there" who, with proper cunning, can be separated from his loose change."

"In business, the followers are the customers. To produce these customers, the entire corporation must be viewed as a customer-creating and customer satisfying organism. Management must think of itself not as producing products but as providing customer creating value satisfactions. It must push this idea (and everything it means and requires) into every nook and cranny of the organization."

"I'd stumbled into a job at Salomon Brothers in 1985, and stumbled out, richer, in 1988, and even though I wrote a book about the experience, the whole thing still strikes me me as totally preposterous-which is one reason the money was so easy to walk away from."

"I confess some part of me thought, If only I'd stuck around, this is the sort of catastrophe I might have created."

"A thought crossed his mind: How do you make poor people feel wealthy when wages are stagnant? You give them cheap loans."

"These guys lied to infinity. What I learned from that experience was that Wall Street didn't give a shit what it sold."

"A credit default swap was confusing mainly because it wasn't really a swap at all. It was an insurance policy, typically on a corporate bond, with semiannual premium payments and a fixed term."

"Ever since grade school, when his father had shown him the stock tables at the back of the newspaper and told him that the stock market was a crooked place and never to be trusted, let alone invested in, the subject had fascinated him."

"the more he studied Buffet, the less he thought he could be copied; indeed, the lesson of Buffet was: To succeed in a spectacular fashion you had to be spectacularly unusual."

"The CDO was, in effect, a credit laundering service for the residents of Lower Middle Class America. For Wall Street it was a machine that turned lead into gold."

"Incredibly, at this critical juncture in financial history, after which so much changed so quickly, the only constraint in the subprime mortgage market was a shortage of people willing to bet against it."

"Here was a strange but true fact: The closer you were to the market, the harder it was to perceive its folly."

"Even as late as the summer of 2006, as home prices began to fall, it took a certain kind of person to see the ugly facts and react to them-to discern, in the profile of the beautiful young lady, the face of an old witch."

"Why isn't someone smarter than us doing this?"

"Looking into it a bit, Jamie found that the model used by Wall Street to price LEAPs, the Black-Scholes option pricing model, made some strange assumptions."

"The model used by Wall Street to price trillions of dollar's worth of derivatives thought of the financial world as an orderly, continuous process. But the world was not continuous; it changed discontinuously, and often by accident."

"The longer-term the option, the sillier the results generated by the Black-Scholes option pricing model, and the greater the opportunity for people who didn't use it."

"He walked around the Las Vegas casino incredulous at the spectacle before him: seven thousand people, all of whom seem delighted with the world as they found it. A society with deep, troubling economic problems had rigged itself to disguise those problems, and the chief beneficiaries of the deceit were its financial middlemen. How could this be?"

"Each firm held its rope; one by one, they realized that no matter how strongly they pulled, the balloon would eventually lift them off their feet."

"The fuses had been lit and could not be extinguished. All that remained was to observe the speed of the spark, and the size of the explosions."

"The big Wall Street firms, seemingly so shrewd and self-interested, had somehow become the dumb money. The people who ran them did not understand their own businesses, and their regulators obviously knew even less."

"All that was clear that the profits to be had from smart people making complicated bets overwhelmed anything that could be had from servicing customers, or allocating capital to productive enterprise."

"Spain and France had accumulated debts of more than ten times their annual revenues. Historically, such levels of government indebtedness had led to government default. “Here’s the only way I think things can work out for these countries,” Bass said. “If they start running real budget surpluses. Yeah, and that will happen right after monkeys fly out of your ass.”"

"Yet another hedge fund manager explained Icelandic banking to me this way: you have a dog, and I have a cat. We agree that each is worth a billion dollars. You sell me the dog for a billion, and I sell you the cat for a billion. Now we are no longer pet owners but Icelandic banks, with a billion dollars in new assets."

"The world clings to its old mental picture of the stock market because it’s comforting; because it’s so hard to draw a picture of what has replaced it; and because the few people able to draw it for you have no interest in doing so."

"The best way to manage people, he thought, was to convince them that you were good for their careers. He further believed that the only way to get people to believe that you were good for their careers was actually to be good for their careers."

"You see, I’m the event. I am the news"

"Why, between the dark pools and the public exchanges, were there nearly sixty different places, most of them in New Jersey, where you could buy any listed stock? Why did the public exchanges fiddle with their own pricing so often—and why did you get paid by one exchange to do exactly the same thing for which another exchange might charge you?"

"Someone out there was using the fact that stock market orders arrived at different times at different exchanges to front-run orders from one market to another."

"He now suspected that every human being who knew how high-frequency traders made money was making too much money doing it to stop and explain what was going on."

"The U.S. stock market was now a class system, rooted in speed, of haves and have-nots. The haves paid for nanoseconds; the have-nots had no idea that a nanosecond had value. The haves enjoyed a perfect view of the market; the have-nots never saw the market at all. What had once been the world’s most public, most democratic, financial market had become, in spirit, something like a private viewing of a stolen work of art."

"The orders resting on BATS were typically just the 100-share minimum required for an order to be at the front of any price queue, as their only purpose was to tease information out of investors. The HFT firms posted these tiny orders on BATS—orders to buy or sell 100 shares of basically every stock traded in the U.S. market—not because they actually wanted to buy and sell the stocks but because they wanted to find out what investors wanted to buy and sell before they did it. BATS, unsurprisingly, had been created by high-frequency traders."

"The deep problem with the system was a kind of moral inertia. So long as it served the narrow self-interests of everyone inside it, no one on the inside would ever seek to change it, no matter how corrupt or sinister it became"

"The role had been spawned by the widespread belief that traders didn’t know how to talk to computer geeks and that computer geeks did not respond rationally to big, hairy traders hollering at them."

"Reg NMS was intended to create equality of opportunity in the U.S. stock market. Instead it institutionalized a more pernicious inequality. A small class of insiders with the resources to create speed were now allowed to preview the market and trade on what they had seen."

"The entire history of Wall Street was the story of scandals, it now seemed to him, linked together tail to trunk like circus elephants. Every systemic market injustice arose from some loophole in a regulation created to correct some prior injustice."

"The SEC staffer argued that it was unfair that high-frequency traders couldn’t post phony bids and offers on the exchanges to extract information from actual investors without running the risk of having to stand by them."

""Liquidity" was one of those words Wall Street people threw around when they wanted the conversation to end, and for brains to go dead, and for all questioning to cease."

"Thus the only Goldman Sachs employee arrested by the FBI in the aftermath of a financial crisis Goldman had done so much to fuel was the employee Goldman asked the FBI to arrest."

"For geniuses, they are really dumb,” she said. “Some of them are really pampered: They can’t even put together a cardboard box. They don’t think you do something. They think you call somebody."

"It was neither healthy nor good when public stock exchanges introduced order types and speed advantages that high-frequency traders could use to exploit everyone else. This sort of inefficiency didn't vanish the moment it was spotted and acted upon. It was like a broken slot machine in the casino that pays off every time. It would keep paying off until someone said something about it; but no one who played the slot machine had any interest in pointing out that it was broken."

"They traded in the market the way card counters in a casino played blackjack: They played only when they had an edge. That’s why they were able to trade for five years without losing money on a single day."

"The relationship of the big Wall Street banks to the high frequency traders, when you think about it, was a bit like the relationship of the entire society to the big Wall Street banks. When things went well, the HFT guys took most of the gains; when things went badly, the HFT guys vanished and the banks took the losses."

"The more money to be made gaming the financial markets, the more people would decide they were put on earth to game the financial markets – and create romantic narratives to explain to themselves why a life spent gaming the financial markets is a purposeful life."

"People who had lived without government were more likely to find meaning in it. On the other hand, people who had never experienced a collapsed state were slow to appreciate a state that had not yet collapsed."

"If your ambition is to maximize short-term gain without regard to the long-term cost, you are better off not knowing the cost. If you want to preserve your personal immunity to the hard problems, it's better never to really understand those problems. There is an upside to ignorance, and a downside to knowledge. Knowledge makes life messier. It makes it a bit more difficult for a person who wishes to shrink the world to a worldview."

"As was brilliantly documented in Michael Lewis's book Flash Boys, Wall Street makes billions by buying huge quantities of stocks and bonds and then selling them shortly thereafter. The big investment houses and hedge funds have invested hundreds of millions of dollars in super-highspeed computers that detect the slightest price movements, then execute trades in mere fractions of a second. Once the price goes up-sometimes by just a fraction of a penny per share, and after just a few seconds or even less the traders dump the securities. When repeated tens of millions of times, the practice reaps an unbelievably enormous profit for Wall Street."

"In the late 1800s and early 1900s, it was very common for boys and young men to read about the lives of the so-called great men for the purpose of extracting lessons in how to be great themselves in whatever field they chose. I see these books as reviving that tradition by distilling ideas to their essence and putting them in a readily digestible form."

"People might say these (my) books are frivolous, but I don't see them that way. I think they're very impressively designed – just in an unconventional format."

"F.Shaw: As prolific as you are, how long did it take you to research and write this book? A.Axelrod: Well over a year. I do my research for one book while I write another—that way I get to read as well as write."

"Washington was the right man at the right time – sometimes he was the first man, but sometimes he simply knew when to ride the crest of a wave or the leading edge of a trend."

"He (Patton) was tough. War is tough. Leaders have to be tough. He drove his army hard, yes, and he made many enemies among colleagues and subordinates, but he also produced results. He was indeed arrogant, but sometimes a good leader has to be larger than life. … But the fact is: again typically, Patton's admirers are no more specific in their praise than are his disparagers in their criticism."

"… All other languages can be translated into the thing-language, but the thing-language cannot be translated into any other language. Its terms can only be reduced to what are called "ostensive" definitions. These consist merely of pointing or otherwise evoking a direct experience. Hence, the thing-language is absolutely basic. Out of this basic language, we build up the other languages of the sciences, beginning with the language of physics, and proceeding to biology, psychology, and the social sciences."

"In the last two decades we have witnessed the emergence of the "system" as a key concept in scientific research. Systems, of course, have been studied for centuries, but something new has been added... The tendency to study systems as an entity rather than as a conglomeration of parts is consistent with the tendency in contemporary science no longer to isolate phenomena in narrowly confined contexts, but rather to open interactions for examination and to examine larger and larger slices of nature. Under the banner of systems research (and its many synonyms) we have also witnessed a convergence of many more specialized contemporary scientific developments... These research pursuits and many others are being interwoven into a cooperative research effort involving an ever-widening spectrum of scientific and engineering disciplines. We are participating in what is probably the most comprehensive effort to attain a synthesis of scientific knowledge yet made."

"The development (rather than the history) of operations research as a science consists of the development of its methods, concepts, and techniques. Operations research is neither a method nor a technique; it is or is becoming a science and as such is defined by a combination of the phenomena it studies."

"A great deal of study has been directed to denning 'best decisions,' particularly since the pioneering work of mathematical statisticians (such as Wald), of mathematicians (such as von Neumann), of economists (such as Arrow)... The main effect of this development on the practice of OR has been the growing realization that there are decision objectives other than maximizing expected return and minimizing maximum loss. That is, in many practical situations there are criteria of optimality that are more appropriate than these two mentioned."

"A problem never exists in isolation; it is surrounded by other problems in space and time. The more of the context of a problem that a scientist can comprehend, the greater are his chances of finding a truly adequate solution."

"The extensive literature addressed to the definition or characterization of science is filled with inconsistent points of view and demonstrates that an adequate definition is not easy to attain. Part of the difficulty arises from the fact that the meaning of science is not fixed, but is dynamic. As science has evolved, so has its meaning. It takes on a new meaning and significance with successive ages."

"The word model is used as a noun, adjective, and verb, and in each instance it has a slightly different connotation. As a noun "model" is a representation in the sense in which an architect constructs a small-scale model of a building or a physicist a large-scale model of an atom. As an adjective "model" implies a degree or perfection or idealization, as in reference to a model home, a model student, or a model husband. As a verb "to model" means to demonstrate, to reveal, to show what a thing is like."

"Scientific models have all these connotations. They are representations of states, objects, and events. They are idealized in the sense that they are less complicated than reality and hence easier to use for research purposes. These models are easier to manipulate and "carry" than the real thing. The simplicity of models, compared with reality, lies in the fact that only the relevant properties of reality are represented."

"Because we cannot yet (1) characterize all the possible experimental designs along quantitative scales and (2) generate cost-of-error functions, comparisons must be made in specific contexts rather than by use of analytic optimizing."

"I do not deny that most managers lack a good deal of information that they should have, but I do deny that this is the most important informational deficiency from which they suffer. It seems to me that they suffer more from an overabundance of irrelevant information."

"My experience indicates that most managers receive much more data (if not information) than they can possibly absorb even if they spend all of their time trying to do so. Hence they already suffer from an information overload. They must spend a great deal of time separating the relevant documents. For example, I have found that I receive an average of 43 hours of unsolicited reading material each week. The solicited material is usually half again this amount."

"Unless the information overload to which managers are subjected is reduced, any additional information made available by an MIS cannot be expected to be used effectively."

"Most managers have some conception of at least some of the types of decisions they must make. Their conceptions, however, are likely to be deficient in a very critical way, a way that follows from an important principle of scientific economy: The less we understand a phenomenon, the more variables we require to explain it."

"[Mistake 2:] Managers need all the information they want. Most MIS designers "determine" what information is needed by asking managers what information they would like to have. This is based on the assumption that managers know what information they need and want."

"Planning is the design of a desired future and of effective ways of bringing it about. It is an instrument that is used by the wise, but not by the wise alone. When conducted by lesser men it often becomes an irrelevant ritual that produces short-run peace of mind, but not the future that is longed for."

"Recently I asked three corporate executives what decisions they had made in the last year that they would not have made were it not for their corporate plans. All had difficulty in identifying one such decision. Since each of their plans were marked 'secret' or 'confidential', I asked them how their competitors might benefit from the possession of their plans. Each answered with embarrassment that their competitors would not benefit. Yet these executives were strong advocates of corporate planning."

"The basic managerial idea introduced by systems thinking, is that to manage a system effectively, you might focus on the interactions of the parts rather than their behavior taken separately."

"A system is more than the sum of its parts; it is an indivisible whole. It loses its essential properties when it is taken apart. The elements of a system may themselves be systems, and every system may be part of a larger system."

"The systems approach to problems focuses on systems taken as a whole, not on their parts taken separately. Such an approach is concerned with total- system performance even when a change in only one or a few of its parts is contemplated because there are some properties of systems that can only be treated adequately from a holistic point of view. These properties derive from the relationship between parts of systems: how the parts interact and fit together"

"Despite the importance of systems concepts and the attention that they have received and are receiving, we do not yet have a unified or integrated set (i.e., a system) of such concepts. Different terms are used to refer to the same thing and the same term is used to refer to different things. This state is aggravated by the fact that the literature of systems research is widely dispersed and is therefore difficult to track. Researchers in a wide variety of disciplines and interdisciplines are contributing to the conceptual development of the systems sciences but these contributions are not as interactive and additive as they might be."

"[The environment of a system is] a set of elements and their relevant properties, which elements are not part of the system, but a change in any of which can cause or produce a change in the state of the system."

"A subject may be said to be in such a state if he (it) wants something and has unequally efficient alternative ways of trying to get it."

"The measure of information to be developed here will also be related to freedom of choice; that is, it will be a function of the probabilities of choice associated with the alternative courses of action... The measure developed here is a function of m, the number of alternative potential courses of action."

"Man seeks objectives that enable him to convert the attainment of every goal into a means for the attainment of a new and more desirable goal. The ultimate objective in such a sequence cannot be obtainable; otherwise its attainment would put an end to the process. An end that satisfies these conditions is an ideal... Thus the formulation and pursuit of ideals is a means by which to put meaning and significance into his life and into the history of which he is part."

"Successful problem solving requires finding the right solution to the right problem. We fail more often because we solve the wrong problem than because we get the wrong solution to the right problem."

"Because a cause was taken to be sufficient for its effect, nothing was required to explain the effect other than the cause. Consequently, the quest for causes was environment-free. It employed what we now call 'closed-system' thinking. Laws. —like that of freely falling bodies—-were formulated so as to exclude environmental effects."

"The synthetic mode of thought, when applied to systems problems, is called the systems approach. In this approach a problem is not solved by taking it apart but by viewing it as a part of a larger problem."

"In the Systems Age we tend to look at things as part of larger wholes rather than as wholes to be taken apart. This is the doctrine of expansionism. Expansionism brings with it the synthetic mode of thought much as reductionism brought with it."

"Because the Systems Age is teleologically oriented, it is preoccupied with systems that are goal-seeking or purposeful, that is, systems that can display choice of either means or ends, or both. It is interested in purely mechanical systems only."

"Problem solving has traditionally been taken to be an essential function of management. Through systems thinking, however, we have come to doubt the existence of problems and solutions to them."

"We have also come to realize that no problem ever exists in complete isolation. Every problem interacts with other problems and is therefore part of a set of interrelated problems, a system of problems I choose to call such a system a mess ... Furthermore solutions to most problems produce other problems... a financial problem, a maintenance problem, and conflict among family members for its use."

"English does not contain a suitable word for 'system of problems.' Therefore, I have had to coin one. I choose to call such a system a mess"

"The effort to get rid of what we do not want is reactive, retrospectively oriented problem solving. The effort to obtain what we want is proactive, prospectively oriented problem solving."

"In reactive problem solving we walk into the future facing the past — we move away from, rather than toward, something. This often results in unforseen consequences that are more distasteful than the deficiencies removed."

"In proactive problem solving we specify where we want to go, and we try to get there. Although such an approach does not eliminate the possibility of overlooking relevant consequences of our solutions, it reduces the probability of doing so. The more ultimate the desired outcome we specify, the more likely we are to consider the intermediate and long-run consequences of our immediate actions. The more immediate the source of dissatisfaction we try to get rid of, the less likely we are to take account of relevant consequences. Therefore, the chances of overlooking relevant consequences are minimized when we formulate a problem in terms of approaching one or more ideals."

"Managers are not confronted with problems that are independent of each other, but with dynamic situations that consist of complex systems of changing problems that interact with each other. I call such situations messes. Problems are extracted from messes by analysis. Managers do not solve problems, they manage messes."

"When a mess, which is a system of problems, is taken apart, it loses its essential properties and so does each of its parts. The behavior of a mess depends more on how the treatment of its parts interact than how they act independently of each other. A partial solution to a whole system of problems is better than whole solutions of each of its parts taken separately."

"Most corporate mission statements are worthless.... [Corporations] often formulate necessities as objectives: For example, 'to achieve sufficient profit.' This is like a person saying his mission is to breathe sufficiently"

"A good deal of the corporate planning I have observed is like a ritual rain dance; it has no effect on the weather that follows, but those who engage in it think it does. Moreover, it seems to me that much of the advice and instruction related to corporate planning is directed at improving the dancing, not the weather."

"A system is a set of two or more elements that satisfies the following three conditions. (1) The behavior of each element has an effect on the behavior of the whole. (2) The behavior of the elements and their effects on the whole are interdependent. the way each element behaves and the way it affects the whole depends on how at least one other element behaves. (3) However subgroups of the elements are formed, each has an effect on the behavior of the whole and none has an independent effect on it."

"The Machine Age’s commitment to cause and effect was the source of many dilemmas, including the one involving free will. At the turn of the century the American philosopher E.A. Singer, Jr., showed that science had, in effect, been cheating. It was using two different relationships but calling both cause and effect. He pointed out, for example, that acorns do not cause oaks because they are not sufficient, even though they are necessary, for oaks. An acorn thrown into the ocean, or planted in the desert or an Arctic ice cap does not yield an oak. To call the relationship between an acorn and an oak ‘probabilistic’ or ‘non deterministic causality,’ as many scientists did, was cheating because it is not possible to have a probability other than 1.0 associated with a cause; a cause completely determines its effect. Therefore, Singer chose to call this relationship ‘producer-product’ and to differentiate it from cause-effect."

"I began graduate work in the philosophy of sciences at the University of Pennsylvania in 1941 where I came under the influence of the “grand old man” of the department, the eminent philosopher E.A. Singer, Jr. Because of the informality of the department he created I began to collaborate with two younger members of the faculty, both of whom were former students of Singer, Thomas A. Cown and C. West Churchman. Three aspects of Singer's philosophy had a particularly strong influence on me. First, that the practice of philosophy, its application, was necessary for the development of philosophy itself. Second, that effective work on “real” problems required an interdisciplinary approach. Third, that the social area needed more work than any of the other domains of science and that this was the most difficult. We developed a concept of a research group that would enable us to practice philosophy in the social domain by dealing with real problems. The organization we designed was called “The Institute of Experimental Method.” With the participation of a number of other graduate students in philosophy and a few other members of the faculty we started this institute on a completely informal basis."

"In the spring of 1951 Churchman and I accepted appointments to (then) Case Institute of Technology in Cleveland because Case was committed to establishing an activity in Operations Research and Churchman and I had come to believe we could probably work better under this name than under the cloak of academic philosophy. By the end of 1952 we had formal approval, but not without faculty opposition, for the first doctoral program in Operations Research. From then on the Group and the program grew rapidly and flourished. Case became a mecca to which pilgrimages of operations researchers from around the world came. In 1958, Churchman, for personal reasons, migrated to the University of California at Berkeley where he established a similar activity. Academic Operations Research activities began to proliferate and flourish, many of them modeled on those at Case."

"In June of 1964 the research group and academic program moved to Penn bringing with it most of the faculty, students, and research projects. Our activities flourished in the very supportive environment that Penn and Wharton provided. The wide variety of faculty members that we were able to involve in our activities significantly enhanced our capabilities. By the mid-1960s I had become uncomfortable with the direction, or rather, the lack of direction, of professional Operations Research. I had four major complaints. First, it had become addicted to its mathematical tools and had lost sight of the problems of management. As a result it was looking for problems to which to apply its tools rather than looking for tools that were suitable for solving the changing problems of management. Second, it failed to take into account the fact that problems are abstractions extracted from reality by analysis. Reality consists of systems of problems, problems that are strongly interactive, messes. I believed that we had to develop ways of dealing with these systems of problems as wholes. Third, Operations Research had become a discipline and had lost its commitment to interdisciplinarity. Most of it was being carried out by professionals who had been trained in the subject, its mathematical techniques. There was little interaction with the other sciences professions and humanities. Finally, Operations Research was ignoring the developments in systems thinking — the methodology, concepts, and theories being developed by systems thinkers."

"Data is raw. It simply exists and has no significance beyond its existence (in and of itself). It can exist in any form, usable or not. It does not have meaning of itself. In computer parlance, a spreadsheet generally starts out by holding data."

"Information is data that has been given meaning by way of relational connection. This "meaning" can be useful, but does not have to be. In computer parlance, a relational database makes information from the data stored within it."

"Knowledge is the appropriate collection of information, such that it's intent is to be useful. Knowledge is a deterministic process. When someone "memorizes" information (as less-aspiring test-bound students often do), then they have amassed knowledge. This knowledge has useful meaning to them, but it does not provide for, in and of itself, an integration such as would infer further knowledge."

"The higher standard of living, the more consideration we give to the fun we derive from what we do and its meaningfulness."

"[Ackoff also developed the circular organization concept. This structure is a democratic hierarchy with three essential characteristics:] (1) the absence of an ultimate authority, the circularity of power; (2) the ability of each member to participate directly or through representation in all decisions that affect him or her directly; and (3) the ability of members, individually or collectively, to make and implement decisions that affect no one other than the decision maker or decision-makers."

"The effectiveness of any model used to describe and understand behavior of a particular system as a whole ultimately depends on the degree to which that model accurately represents that system. Nevertheless, there have been and are situations in which application of deterministic or animate models to social systems have produced useful results for a short period of time. However, in a longer run, such mismatches usually result in less than desirable results because critical aspects of the social systems were omitted in the less complex model that was used."

"Systems science and technology constitute one aspect of systems thinking, but the humanities and arts make up the other. The fact that design plays such a large part in the systemic treatment of problems makes it apparent that art has a major role in it as well. Ethics and aesthetics are integral aspects of evaluating systems... the systems approach involves the pursuit of truth (science) and its effective use (technology), plenty (economics), the good (ethics and morality), and beauty and fun (aesthetics). To compare systems methodology with that of any of the so-called ‘hard’ disciplines—for example, physics—is to misunderstand the nature of systems. The worry is not that the systems approach is not scientific in the sense which physics or chemistry or biology is, but that some try to make it scientific in that sense. To the extent they succeed, they destroy it."

"Over time, every way of thinking generates important problems that it cannot solve."

"Every culture has a shared pattern of thinking. It is the cement that holds a culture together, gives it unity. A culture's characteristic way of thinking is imbedded in its concept of the nature of reality, its world view."

"A change of world view not only brings about profound cultural changes, but also is responsible for what historians call a "change of age." An age is a period of time in which the prevailing world view has remained relatively unchanged."

"Analysis of a system reveals its structure and how it works. It provides the knowledge required to make it work efficiently and to repair it when it stops working. Its product is know-how, knowledge, not understanding. To enable a system to perform effectively we must understand it—we must be able to explain its behavior—and this requires being aware of its functions in the larger systems of which it is a part."

"An organization's mission statement (1) should contain its reasons for existence and its most general aspirations, its ideals. (2) It should identify in very general terms the way(s) by which the organization will pursue its ideals, that is, the business it wants to be in. (3) It should formulate the ways by which it will attempt to serve each of its stakeholder groups. (4) It should meet the preceding requirements in a way that is exciting and challenging to all its stakeholders. Finally, (5) it should establish the uniqueness of the organization."

"A mission statement should define the business that the organization wants to be in, not necessarily what it is in."

"When a business is bought, it is bought for its potential—for its future, not its past."

"Another common deficiency is the failure of some panaceas to take into account a social system's developmental responsibilities to its stakeholders."

"A corporation that fails to see itself as an instrument of all its stakeholders will probably fail to use them, and be used by them, effectively enough to survive in the emerging environment."

"Doing philosophy was an opportunity to learn something new. I expected this to be an adjunct to my practice of architecture. But it turned out the other way. It turned out that the philosophy of science gave me the opportunity to design social systems, and I was more interested in people-oriented systems than in buildings. They were both design, but different kinds of design. I like creating things."

"A bureaucrat is one who has the power to say “no” but none to say “yes”. Bureaucrats can find an infinite number of reasons for rejecting any proposed change, but can find none for accepting it."

"The only problems that have simple solutions are simple problems. The only managers that have simple problems have simple minds. Problems that arise in organisations are almost always the product of interactions of parts, never the action of a single part. Complex problems do not have simple solutions."

"Analysis of a system reveals how it works; it provides know-how, knowledge, not understanding; that is, explanations of why it works the way it does. This [understanding of why systems work] requires synthetic thinking... Analysis is the way scientists conduct research. Synthetic thinking is exemplified by design."

"The lower the rank of managers, the more they know about fewer things. The higher the rank of managers, the less they know about many things."

"Managers who don't know how to measure what they want settle for wanting what they can measure. For example, those who want a high quality of work life but don't know how to measure it, often settle for wanting a high standard of living because they can measure it."

"The less sure managers are of their opinions, the more vigorously they defend them. Managers do not waste their time defending beliefs they hold strongly – they just assert them. Nor do they bother to refute what they strongly believe is false."

"The less important an issue is, the more time managers spend discussing it. More time is spent on small talk than is spent on large talk. Most talk is about what matters least. What matters least is what most of us know most about."

"Managers cannot learn from doing things right, only from doing them wrong"

"If the story of my early years with Russ sound like they were years of battle, then the sound is correct."

"I have noticed that Professor Ackoff (or even I) can make a good theory work in practice, at least well enough to demonstrate its application. But can we expect management practitioners to follow our guidance, just from our writing management books and giving workshops?"

"Systems thinking, as written about and practiced by Russell Ackoff, C. West Churchman, Peter Checkland and others, contained within it many of the impulses that motivate the application of design ideas to strategy, organization, society, and management. Ideas such as engaging a broad set of stakeholders, moving beyond simple metrics and calculations, considering idealized options and using scenarios to explore them, shifting boundaries to reframe problems, iteration, the liberal use of diagrams and rich pictures, and tirelessly searching for a better set of alternatives were all there. If the business and management community had bought it, we would not be having the many discussions about design, design thinking, and expanding management education to engage the intuitive, to embrace values, to look beyond available choices."

"Ethical judgments can be [should be] included in the scope of science"

"The individuation process, as the way of development and maturation of the psyche, does not follow a straight line, nor does it always lead onwards and upwards. The course it follows is rather “stadial”, consisting of progress and regress, flux and stagnation in alternating sequence. Only when we glance back over a long stretch of the way can we notice the development. If we wish to mark out the way somehow or other, it can equally well be considered a “spiral”, the same problems and motifs occurring again and again on different levels."

"If the chance of error alone were the sole basis for evaluating methods of inference, we would never reach a decision, but would merely keep increasing the sample size indefinitely."

"There would be cases where we would not want to accept an hypothesis even though the evidence gives a high d.c. [degree of confirmation] score, because we are fearful of the consequences of a wrong decision."

"The complete analysis of the methods of scientific inference shows that the theory of inference in science demands the use of ethical judgments"

"[Scientists whose work has no clear, practical implications would want to make their decisions considering such things as:] the relative worth of (1) more observations, (2) greater scope of his conceptual model, (3) simplicity, (4) precision of language, (5) accuracy of the probability assignment."

"[C. West Churchman exposed the indifferentist position of some researchers — planners belonging to this school in the following terms:] And if our clients blow up the world, land us in starvation or totalitarianism, that is too bad, but we remained pure in heart to the last, didn't we?"

"One cannot help but be struck by the diversity that characterizes efforts to study the management process. If it is true that psychologists like to study personality traits in terms of a person's reactions to objects and events, they could not choose a better stimulus than management science. Some feel it is a technique, some feel it is a branch of mathematics, or of mathematical economics, or of the "behavioral sciences," or of consultation services, or just so much nonsense. Some feel it is for management (vs. labor), some feel it ought to be for the good of mankind — or for the good of underpaid professors."

"Another way of emphasizing this diversity is to argue that if one cannot forecast (predict), one does not have a theory, and that forecasting is the weakest link in the chain of the management sciences at present. Indeed, if one cannot predict one cannot measure, and if one cannot measure, then there is no "theory.""

"This text grew from the lecture material for the "Short Course in Operations Research" which has been offered annually (since 1952) by Case Institute of Technology."

"No science has ever been born on a specific day. Each science emerges out of a convergence of an increased interest in some class of problems and the development of scientific methods, techniques, and tools which are adequate to solve these problems. Operations Research (O.R.) is no exception. Its roots are as old as science and the management function. Its name dates back only to 1940."

"O.R.'s initial development began in the United Kingdom during World War II and was quickly taken up in the United States. This start took place in a military context. After the war O.R. moved into business, industry and civil government. This movement was slower in the United States than in the United Kingdom but in 1951 industrial O.R. took hold in this country and has since developed very rapidly."

"An objective of O.R. as it emerged from this evolution of industrial organization, is to provide managers of the organizations with a scientific basis for solving problems involving the interaction of the components of the organization in the best interest of the organization as a whole. A decision which is best for the organization as a whole is called optimum decision."

"The comprehensiveness of OR’s aim is an example of a ‘systems’ approach, since ‘system’ implies an interconnected complex of functionally related components."

"This text is oriented toward human organizations since this has been the emphasis in the practice of O.R. in business and industry."

"The systems approach to problems does not mean that the most generally formulated problem must be solved in one research project. However desirable this may be, it is seldom possible to realize it in practice. In practice, parts of the total problem are usually solved in sequence. In many cases the total problem cannot be formulated in advance but the solution of one phase of it helps define the next phase. For example, a production control project may require determination of the most economic production quantities of different items. Once these are found it may turn out that these quantities cannot be produced on the available equipment in the available time. This, then, gives rise to a new problem whose solution will affect the solution obtained in the first phase."

"The concern of OR with finding an optimum decision, policy, or design is one of its essential characteristics. It does not seek merely to define a better solution to a problem than the one in use; it seeks the best solution... [It] can be characterized as the application of scientific methods, techniques, and tools to problems involving the operations of systems so as to provide those in control of the operations with optimum solutions to the problems."

"Analysis of the mathematical form and underlying principles of games was made by von Neumann " as early as 1928. In this early work von Neumann was not so much interested in executive-type problems as he was in the logical foundations of quantum mechanics. It was not until 1944, when von Neumann and Morgenstern published their now well known Theory of Games and Economic Behavior, that the mathematical treatment of games "took fire.""

"We have overwhelming evidence that available information plus analysis does not lead to knowledge. The management science team can properly analyse a situation and present recommendations to the manager, but no change occurs. The situation is so familiar to those of us who try to practice management science that I hardly need to describe the cases."

"How can we design improvement in large systems without understanding the whole system, and if the answer is that we cannot, how is it possible to understand the whole system?"

"[ Wicked problems are ] social problems which are ill formulated, where the information is confusing, where there are many clients and decision-makers with conflicting values, and where the ramifications in the whole system are thoroughly confusing."

"Deception, in turn , suggests morality: the morality of deceiving people into thinking something is so when it is not.[...] The moral principle is this: whoever attempts to tame a part of a wicked problem, but not the whole, is morally wrong."

"What seems to emerge is not a moral reprimand of the management scientist, but rather a moral problem of the profession, a wicked moral problem."

"Lindblom (1959) and Churchman (1967) make it clear that the assumption of synoptic or complete rationality in planning systems is not only inadequate in a methodological sense, but illegitimate in an ethical or professional sense."

"When one is considering systems it's always wise to raise questions about the most obvious and simple assumptions."

"It is sheer nonsense to expect that any human being has yet been able to attain such insight into the problems of society that he can really identify the central problems and determine how they should be solved. The systems in which we live are far too complicated as yet for our intellectual powers and technology to understand."

"It is only natural to expect that improvement can occur in certain sectors of the system without our having delved deeply into the characteristics of the whole system. Thus, for example, there is a tradition in Western thought that parts of the whole system can be studied and improved more or less in isolation from the rest of the system. So deeply ingrained is this concept of social improvement in Western thought that we naturally think it proper to subdivide our society into functional elements. We think it proper that each element develop its own criteria of improvement and that the elements be as free as possible from the interference of the other parts of the social structure... Men have neglected a very serious problem in defining improvement. The problem is very simple: How can we design improvement in large systems without understanding the whole system, and if we the answer is that we cannot, how is it possible to understand the whole system?"

"The problem of systems improvement is the problem of the 'ethics of the whole system'."

"The idea of a ‘system approach’ is both quite popular and quite unpopular. It’s popular because it sounds good to say that the whole system is being considered, but it’s quite unpopular because it sounds either like a lot of nonsense or else downright dangerous – so much evil can be created under the guise of serving the whole."

"We are always obliged to think about the larger system. If we fail to do this, then our thinking becomes fallacious."

"The ultimate meaning of the systems approach, therefore, lies in the creation of a theory of deception and in a fuller understanding of the ways in which the human being can be deceived about his world and in an interaction between these different viewpoints."

"The scientist has to have a way of thinking about the environment of a system that is richer and more subtle than a mere looking at for boundaries. He does this by noting that, when we say that something lies ‘outside’ the system, we mean that system can do relatively little about its characteristics or its behavior. Environment, in effect, makes up the things and people that are ‘fixed’ or ‘given’, from the system’s point of view."

"The management of a system has to deal with the generation of the plans for the system, i.e., consideration of all of the things we have discussed, the overall goals, the environment, the utilization of resources and the components. The management sets the component goals, allocates the resources, and controls the system performance."

"For the scientist a model is also a way in which the human though processes can be amplified. This method often takes the form of models that can be programmed into computers. At no point, however, the scientist intend to loose control of the situation because off the computer does some of his thinking for him. The scientist controls the basic assumptions and the computer only derives some of the more complicated implications."

"In general, we can say that the larger the system becomes, the more the parts interact, the more difficult it is to understand environmental constraints, the more obscure becomes the problem of what resources should be made available, and deepest of all, the more difficult becomes the problem of the legitimate values of the system."

"However a systems problem is solved—by a planner, scientist, politician, antiplanner, or whomever—the solution is wrong, even dangerously wrong. There is bound to be deception in any approach to the system."

"It's not as though we can expect that next year or a decade from now someone will find the correct systems approach and all deception will disappear. This, in my opinion, is not in the nature of systems. What is in the nature of systems is a continuing perception and deception, a continuing re-viewing of the world, of the whole system, and of its components. The essence of the systems approach, therefore, is confusion as well as enlightenment. The two are inseparable aspects of human living."

"A systems approach begins when first you see the world through the eyes of another."

"There are no experts in the systems approach"

"The systems approach is not a bad idea"

"Operations research '(OR) is the securing of improvement in social systems by means of scientific method"

"The systems approach goes on to discovering that every world-view is terribly restricted."

"To know that we are measuring real change we need to have a strong theoretical base."

"The theory of the nature of mathematics is extremely reactionary. We do not subscribe to the fairly recent notion that mathematics is an abstract language based, say, on set theory. In many ways, it is unfortunate that philosophers and mathematicians like Russell and Hilbert were able to tell such a convincing story about the meaning-free formalism of mathematics. In Greek, mathematics simply meant learning, and we have adapted this... to define the term as "learing to decide." Mathematics is a way of preparing for decisions through thinking. Sets and classes provide one way to subdivide a problem for decision preparation; a set derives its meaning from decision making, and not vice versa."

"A system may actually exist as a natural aggregation of component parts found in Nature, or it may be a man-contrived aggregation – a way of looking at a problem which results from a deliberate decision to assume that a set of elements are related and constitute such a thing called ‘a system."

"Knowledge can be considered as a collection of information, or as an activity, or as a potential. If we think of it as a collection of information, then the analogy of a computer's memory is helpful, for we can say that knowledge about something is like the storage of meaningful and true strings of symbols in a computer."

"To conceive of knowledge as a collection of information seems to rob the concept of all of its life. Knowledge resides in the user and not in the collection. It is how the user reacts to a collection of information that matters."

"Knowledge is a potential for a certain type of action, by which we mean that the action would occur if certain tests were run. For example, a library plus its user has knowledge if a certain type of response will be evoked under a given set of stipulations."

"Design, properly viewed, is an enormous liberation of the intellectual spirit, for it challenges this spirit to an unbounded speculation about possibilities."

"The religious Weltanschauung, … describes a certain kind of relationship – such as love, adoration and obedience – between men and other men, or between men and some superior being. or between men and "Nature"."

"Inquiry is the creation of knowledge or understanding; it is the reaching out of a human being beyond himself to a perception of what he may be or could be, or what the world could be or ought to be."

"Common to all these enemies is that none of them accepts the reality of the "whole system": we do not exist in such a system. Furthermore, in the case of morality, religion, and aesthetics, at least a part of our reality reality as human is not "in" any system, and yet it plays a central role in our lives. To me these enemies provide a powerful way of learning about the systems approach, precisely because they enable the rational mind to step outside itself and to observe itself (from the vantage point of the enemies)."

"We must face the reality that the enemies offer: what's really happening in the human world is politics, or morality, or religion, or aesthetics. This confrontation with reality is totally different from the rational approach, because the reality of the enemies cannot be conceptualized, approximated, or measured."

"Finally we should note the basic assumption of the classical laboratory-namely, that nature is neither capricious nor secretive. If nature were capricious, she would tell one observer one thing and another observer a quite different thing... Also nature is not secretive, in the sense that she will not forever hide certain aspects of her being..."

"The enemies will be asking reasonable questions, like Isn't politics the way matters are really decided, and isn't the rational systems approach simply one political device, to be used when politically expedient? Or isn't morality essentially inexpressible in terms of concepts and words, and doesn't this essentially ineffable quality of our lives lead us humans to decide the way we do? Or, isn't religious imagery really the basis of all our perspectives and concepts, including the perspective of the systems approach? And what is it that carries the values we humans cherish? It is not the ego or the mind, but, say our basic aesthetic feeling, which cannot be conceptualized. And finally, and most generally, why is a rational, holistic approach desirable for the human species, especially since it so often gets out of hand, missing the vital essence of the specific and individual, the here and now, encompassing "everything" to the exclusion of every thing?"

"For the goal planner, reality stops at the boundaries of the problem. For the objective- planner, it stops at the boundaries set by feasibility and to some extent by responsibility. For the ideal-planner, there are no "real" boundaries."

"The story begins with a somewhat disgruntled hero, who perceived of the world as populated with stupid people, everywhere committing the environmental fallacy. The fallacy was a case not merely of the “mind’s falling into error,” but rather of the mind leading all of us into incredible dangers as it first builds crisis and then attacks crisis. Like all heroes, this one looked about for resources, for aids that would help in a dangerous battle, and he found plenty of support – in both the past and the present. It won’t hurt to summarize the story thus far. If the intellect is to engage in the heroic adventure of securing improvement in the human condition, it cannot rely on “approaches,” like politics and morality, which attempt to tackle problems head-on, within the narrow scope. Attempts to address problems in such a manner simply lead to other problems, to an amplification of difficulty away from real improvement. Thus the key to success in the hero’s attempt seems to be comprehensiveness. Never allow the temptation to be clear, or to use reliable data, or to “come up to the standards of excellence,” divert you from the relevant, even though the relevant may be elusive, weakly supported by data, and requiring loose methods. Thus the academic world of Western twentieth century society is a fearsome enemy of the systems approach, using as it does a politics to concentrate the scholars’ attention on matters that are scholastically respectable but disreputable from a systems-planning point of view."

"Enemies are hostile, out to stop you, to eliminate you and your ideas; they are also to be loved, even as yourself."

"Suppose we consider, not the rationality of holism, but its spirituality. Holism traditionally says that a collection of beings may have a collective property that cannot be inferred from the properties of its members."

"I am often inclined to put the implementation questions first, ie, "Can anything be changed?" Should the implementation question not accompany the whole process from its very beginning to its very end?"

"It would be a good thing, if the systems planner's germination was moral outrage and not just a mild felt need. In other words, I do not think we should view the major problems of the world today with calm objectivity. We shouldn't first ask ourselves for a precise and operational definition of malnutrition. We should begin with 'kids are starving in great numbers, damn it all!"

"The design of my philosophical life is based on an examination of the following question: is it possible to secure improvement in the human condition by means of the human intellect? The verb 'to secure' is (for me) terribly important, because problem solving often appears to produce improvement, but the so-called 'solution' often makes matters worse in the larger system (e.g., the many food programs of the last quarter century may well have made world-wide starvation even worse than no food programs would have done.) The verb ‘to secure' means that in the larger system over time the improvement persists. I have to admit that the philosophical question is much more difficult than my very limited intellect can handle. I don't know what 'human condition' and 'human intellect' mean, though I've done my best to tap the wisdom of such diverse fields as depth psychology, economics, sociology, anthropology, public health, management science, education, literature, and history. But to me the essence of philosophy is to pose serious and meaningful questions that are too difficult for any of us to answer in our lifetimes. Wisdom, or the love of wisdom, is just that: thought likes solutions, wisdom abhors them."

"If the story of my early years with Russ sound like they were years of battle, then the sound is correct."

"Everybody's daily life consists of problems arising from what you decided yesterday. Managers understand that. Mathematicians want to solve a theorem, publish the results and walk away clean. Managers never walk away clean. The real world is a very dirty place. Clarity is supposed to be the objective of science. I disagree. I think the objective of science is confusion, because confusions carries you into problems."

"I was an Editor-in-Chief of Philosophy of Science during its early years. Now, over a half century later, I have to admit that I was not very clear what the journal was about, except that it tried to reflect on the meaning of science and its relation to other human activities. At this time I am even less sure of its purposes."

"Prediction of events is a central problem to which students of decision making have also addressed themselves. See, for example, Simon (1957), Churchman (1948), Bross (1953)."

"General systems theory is considered as a formal theory (Mesarovic, Wymore), a methodology (Ashby, Klir), a way of thinking (Bertalanffy, Churchman), a way of looking at the world (Weinberg), a search for an optimal simplification (Ashby, Weinberg), didactic method (Boulding, Klir, Weinberg), metalanguage (Logren), and profession (Klir)."

"Churchman recognized in his critical systemic thinking that the human mind is not able to know the whole. … Yet the human mind, for Churchman, may appreciate the essential quality of the whole. For Churchman, appreciation of this essential quality begins … when first you see the world through the eyes of another. The systems approach, he says, then goes on to discover that every worldview is terribly restricted. Consequently, with Churchman, a rather different kind of question about practice surfaces. … That is, who is to judge that any one bounded appreciation is most relevant or acceptable? Each judgment is based on a rationality of its own that chooses where a boundary is to be drawn, which issues and dilemmas thus get on the agenda, and who will benefit from this. For each choice it is necessary to ask, What are the consequences to be expected insofar as we can evaluate them and, on reflection, how do we feel about that? As Churchman points out, each judgment of this sort is of an ethical nature since it cannot escape the choice of who is to be the client—the beneficiary—and thus which issues and dilemmas will be central to debate and future action. In this way, the spirit of C. West Churchman becomes our moral conscience. A key principle of systemic thinking, according to Churchman, is to remain ethically alert. Boundary judgments facilitate a debate in which we are sensitized to ethical issues and dilemmas."

"Systems thinking, as written about and practiced by Russell Ackoff, C. West Churchman, Peter Checkland and others, contained within it many of the impulses that motivate the application of design ideas to strategy, organization, society, and management. Ideas such as engaging a broad set of stakeholders, moving beyond simple metrics and calculations, considering idealized options and using scenarios to explore them, shifting boundaries to reframe problems, iteration, the liberal use of diagrams and rich pictures, and tirelessly searching for a better set of alternatives were all there. If the business and management community had bought it, we would not be having the many discussions about design, design thinking, and expanding management education to engage the intuitive, to embrace values, to look beyond available choices."

"Managers within organizations sometimes confront a type of problem that is difficult to solve, in part, because the problems involve many stakeholders with diverse perspectives. The different assumptions from each perspective result in differing views of the problem and potential solutions. It is difficult to produce a satisfactory potential solution when the formulation of the problem definition is the major concern and when applying a potential solution risks unintended consequences. Churchman (1967, p. 141) writes that the solutions proposed to solve these problems "often turned out to be worse than the symptoms""

"I have read with very great interest Mr. Metcalfe's paper, as we at the Midvale Steel Co. have had the experience, during the past ten years, of organizing a system very similar to that of Mr. Metcalfe. The chief idea in our system, as in his, is, that the authority for doing all kinds of work should proceed from one central office to the various departments, and that there proper records should be kept of the work and reports made daily to the central office, so that the superintending department should be kept thoroughly informed as to what is taking place throughout the works, and at the same time no work could be done in the works without proper authority. The details of the system have been very largely modified as time went on, and a consecutive plan, such as Mr. Metcalfe proposed, would have been of great assistance to us in carrying out our system. There are certain points, however, in Mr. Metcalfe's plan, which I think our experience shows to be somewhat objectionable. He issues to each of the men a book, something like a check-book, containing sheets which they tear out, and return to the office after stating on them the work which they have done. We have found that any record which passes through the average workman's hands, and which he holds for any length of time, is apt either to be soiled or torn. We have, therefore, adopted the system of having our orders sent from the central office to the small offices in the various departments of the works, in each of which there is a clerk who takes charge of all orders received from, and records returned to, the central office, as well as of all records kept in the department."

"In concluding let me say that we are now but on the threshold of the coming era of true cooperation. The time is fast going by for the great personal or individual achievement of any one man standing alone and without the help of those around him. And the time is coming when all great things will be done by the cooperation of many men in which each man performs that function for which he is best suited, each man preserves his individuality and is supreme in his particular function, and each man at the same time loses none of his originality and proper personal initiative, and yet is controlled by and must work harmoniously with many other men."

"I think no book is more stimulating than the history of a devoted and successful life."

"The differential rate system of piece-work consists briefly in offering two different rates for the same job: a high price per piece, in case the work is finished in the shortest time possible and in perfect condition, and a low price, if it takes a longer time to do the job, or if there are any imperfections in the work. (The high rate should be such that the workman can earn more per day than is usually paid in similar establishments.) This is directly the opposite of the ordinary plan of piece-work, in which the wages of the workmen are reduced when they increase their productivity."

"The art of management has been defined, "As knowing exactly what you want men to do, and then seeing that they do it in the best and cheapest way." No concise definition can fully describe an art, but the relations between employers and men form without question the most important part of this art. In considering the subject, therefore, until this part of the problem has been fully discussed, the remainder of the art may be left in the background."

"That there is a difference between the average and the first class man is known to all employers, but that the first class man can do in most cases from two to four times as much is known to few, and is fully realized only by those who have made a thorough and scientific study of the possibilities of men."

"The greater part of the systematic soldiering, however, is done by the men with the deliberate object of keeping their employers ignorant of how fast work can be done. So universal is soldiering for this purpose, or under any of the ordinary systems of compensating labor, who does not devote a considerable part of his time to studying just how slowly he can work and still convince his employer that he is going at a good pace."

"After a workman has had the price per piece of the work he is doing lowered two or three times as a result of his having worked harder and increased his output, he is likely to entirely lose sight of his employer's side of the case and to become imbued with a grim determination to have no more cuts if soldiering can prevent it."

"The writer feels that management is also destined to become more of an art, and that many of the, elements which are now believed to be outside the field of exact knowledge will soon be standardized tabulated, accepted, and used, as are now many of the elements of engineering."

"In the past the man has been first; in the future the system must be first. This in no sense, however, implies that great men are not needed. On the contrary, the first object of any good system must be that of developing first-class men; and under systematic management the best man rises to the top more certainly and more rapidly than ever before."

"This paper has been written:"

"The principal object of management should be to secure the maximum prosperity for the employer coupled with the maximum prosperity for each employee."

"Scientific management... has for its very foundation the firm conviction that the true interests of the two are one and the same; that prosperity for the employer cannot exist through a long term of years unless it is accompanied by prosperity for the employe, and vice versa; and that it is possible to give the workman what he most wants high wages and the employer what he wants a low labor cost for his manufactures."

"These new duties are grouped under four heads:"

"Perhaps the most prominent single element in modern scientific management is the task idea. The work of every workman is fully planned out by the management at least one day in advance, and each man receives in most cases complete written instructions, describing in detail the task which he is to accomplish, as well as the means to be used in doing the work. And the work planned in advance in this way constitutes a task which is to be solved, as explained above, not by the workman alone, but in almost all cases by the joint effort of the workman and the management. This task specifies not only what is to be done but how it is to be done and the exact time allowed for doing it."

"The labor should include rest breaks so that the worker has time to recover from fatigue. Now one of the very first requirements for a man who is fit to handle pig iron as a regular occupation is that he shall be so stupid and so phlegmatic that he more nearly resembles in his mental make-up the ox than any other type. The man who is mentally alert and intelligent is for this very reason entirely unsuited to what would, for him, be the grinding monotony of work of this character. Therefore the workman who is best suited to handling pig iron is unable to understand the real science of doing this class of work."

"It is only through enforced standardization of methods, enforced adoption of the best implements and working conditions, and enforced cooperation that this faster work can be assured. And the duty of enforcing the adoption of standards and enforcing this cooperation rests with management alone."

"In order to have any hope of obtaining the initiative of his workmen the manager must give some special incentive to his men beyond that which is given to the average of the trade. This incentive can be given in several different ways, as, for example, the hope of rapid promotion or advancement; higher wages, either in the form of generous piecework prices or of a premium or bonus of some kind for good and rapid work; shorter hours of labor; better surroundings and working conditions than are ordinarily given, etc., and, above all, this special incentive should be accompanied by that personal consideration for, and friendly contact with, his workmen which comes only from a genuine and kindly interest in the welfare of those under him."

"Broadly speaking, then, the best type of management in ordinary use may be defined as management in which the workmen give their best initiative and in return receive some special incentive from their employers. This type of management will be referred to as the management of “initiative and incentive” in contradistinction to scientific management, or task management, with which it is to be compared."

"What I want to try to prove to you and make clear to you is that the principles of scientific management when properly applied, and when a sufficient amount of time has been given to make them really effective, must in all cases produce far large and better results, both for the employer and the employees, than can possibly be obtained under even this very rare type of management which I have been outlining, namely, the management of ‘initiative and incentive’, in which those on the management’s side deliberately give a very large incentive to their workmen, and in return the workmen respond by working to the very best of their ability at all times in the interest of their employers. I want to show you that scientific management is even far better than this rare type of management."

"I ordinarily begin with a description of the pig-iron handler. For some reason, I don’t know exactly why, this illustration has been talked about a great deal, so much, in fact, that some people seem to think that the whole of scientific management consists in handling pig-iron. The only reason that I ever gave this illustration, however, was that pig-iron handling is the simplest kind of human effort; I know of nothing that is quite so simple as handling pig-iron. A man simply stoops down and with his hands picks up a piece of iron, and then walks a short distance and drops it on the ground. Now, it doesn’t look as if there was very much room for the development of a science; it doesn’t seem as if there was much room here for the scientific selection of the man nor for his progressive training, nor for cooperation between the two sides; but, I can say, without the slightest hesitation, that the science of handing pig-iron is so great that the man who is fit to handle pig-iron as his daily work cannot possibly understand the science; the man who is physically able to handle pig-iron and is sufficiently phlegmatic and stupid to choose this for his occupation is rarely able to comprehend the science of handling pig-iron; and this in ability of the man who is fit to do the work to understand the science of doing his work becomes more and more evident as the work becomes more complicated, all the way up the scale. I assert, without the slightest hesitation, that the high-class mechanic has a far smaller chance of ever thoroughly understanding the science of his work than the pig-iron handler has of understanding the science of his work, and I am going to try and prove to your satisfaction, gentlemen, that the man who is fit to work at any particular trade is unable to understand the science of that trade without the kindly help and cooperation of men of a totally different type of education, men whose education is not necessarily higher but a different type from his own."

"I dare say that most of you gentlemen know that a good many pig-iron handlers can never learn to shovel right; the ordinary pig-iron handler is not the type of man well suited to shoveling. He is to stupid; there is too much mental strain, too much knack required of a shoveled for the pig-iron handler to take kindly to shoveling."

"You gentlemen may laugh, but that is true, all right; it sounds ridiculous, I know, but it is fact. Now if the problem were put up to any of you man to develop science of shoveling as it was put up to us, that is, to a group of men who had deliberately set out to develop the science of all kinds of all laboring work, where do you think you would begin? When you started to study the science of shoveling I make the assertion that you would be within two days – just as we were in two days –well on the way toward development of the science of shoveling. At least you would outlined in your minds those elements which required careful, scientific study in order to understand science of shoveling. I do not want to go into all of the details of shoveling, but I will give you some of the elements, one or two of the most important elements of the science of shoveling; that is, the elements that reach further and have more serious consequences than any other. Probably the most important element in the science of shoveling is this: There must be some shovel load at which a first-class shoveler will do his biggest day’s work. What is that load? To illustrate: when we went to the Bethlehem Steel Works and observed the shoveler in the yard of that company, we found that each of the good shovelers in that yard owned his own shovel; they preferred to buy their own shovels rather than to have the company furnish them. There was a larger tonnage of ore shoveled in that woks than of any other material and rice coal came next in tonnage. We would see a first-class shoveler go from shoveling rice coal with a load of 3.5 ponds to the shovel to handling ore from the Massaba Range, with 38 pounds to the shove Now, is 3.5 pounds the proper shovel load or is the 38 pounds the proper load? They cannot both be right. Under scientific management the answer to this question is not a matter of anyone’s opinion; it is a question for accurate, careful, scientific investigation."

"The Chairman: Mr. Taylor, do you believe that any system of scientific management induced by a desire for greater profits would revolutionize the minds of the employers to such an extent that they would immediately, voluntarily and generally enforce the golden rule.?"

"There is another and higher leadership, that of the intellect, by which the methods and thoughts of one man may affect the whole civilized world. Industrial leaders who have most prominently attracted our attention in the past are those who have, by their inventions or their direction of activities, accumulated large fortunes ; but none of these are as great as the man who by the force of his intellect leads people throughout the civilized world to benefit themselves and others. Such a man was the late Frederick Winslow Taylor who, in his determination to eliminate error and to base our industrial relations on fact, set an example which will have an effect all over the world."

"Mr. Frederick Taylor's system in part or whole had been applied in many factories which I visited in my four years. You knew its outward sighs as soon as you entered the yard. Order, routing, were first laws, and the old cluttered shops where you fell over scattered material and picked your way around dump heaps were now models of classified order. A man knew where to find the thing he needed, and things were placed where it took the fewest steps to reach them. Quite as conspicuous as the physical changes in the shop was the change in what may be called its human atmosphere. Under the Taylor System the business of management was not only planning but controlling what it planned. Management laid out ahead the day's work for each man at his machine; to him they went with their instructions, to them he went for explanations and suggestions. Office and shop intermingled. They realized their mutual dependence as never before, learned to respect each other for what they were worth. Watching the functioning, one realized men had come to feel more or less as Taylor himself felt: that nothing of moment was ever accomplished save by cooperation, which must be "intimate and friendly." Praised once for his work on the art of cutting metal he said a thing all leaders would do well to heed: "I feel strongly that work of any account in order to be done rightly should be done through true cooperation, rather than through the individual effort of any one man; and, in fact, I should feel rather ashamed of any achievement in which I attempted to do the whole thing myself.""

"Among the names of those who have led the great advance of the industrial arts during the past thirty years, that of Frederick Winslow Taylor will hold an increasingly high place. Others have led in electrical development, in the steel industry, in industrial chemistry, in railroad equipment, in the textile arts, and in many other fields, but he has been the creator of a new science, which underlies and will benefit all of these others by greatly increasing their efficiency and augmenting their productivity. In addition, he has literally forged a new tool for the metal trades, which has doubled, or even trebled, the productive capacity of nearly all metal-cutting machines. Either achievement would entitle him to high rank among the notable men of his day; — the two combined give him an assured place among the world's leaders in the industrial arts."

"The near future will show us the service which has been rendered to the mechanical arts by this generous publication of researches pursued with such uncommon perseverance. But even now we can admire without reserve the scientific method which has controlled this whole work. It is an example unique in the history of the mechanic arts. We have all admired the researches of Sir Lothian Bell, on blast furnaces, and those of Sir on the regenerative furnace; but notwithstanding the high scientific value of the work of these two great engineers, on reading their papers neither of them leaves an impression on the mind which can be compared with that of Mr. Taylor's paper. It is a model which every young engineer will have to study."

"One of the hardest-to-down myths about the evolution of mass production at Ford is one which credits much of the accomplishment to 'scientific management.' No one at Ford—not Mr. Ford, Couzens, Flanders, Wills, Pete Martin, nor I—was acquainted with the theories of the 'father of scientific management,' Frederick W. Taylor. Years later I ran across a quotation from a two-volume book about Taylor by Frank Barkley Copley, who reports a visit Taylor made to Detroit late in 1914, nearly a year after the moving assembly line had been installed at our Highland Park plant. Taylor expressed surprise to find that Detroit industrialists 'had undertaken to install the principles of scientific management without the aid of experts.' To my mind this unconscious admission by an expert is expert testimony on the futility of too great reliance on experts and should forever dispose of the legend that Taylor's ideas had any influence at Ford."

"Frederick W. Taylor was the first man in recorded history who deemed work deserving of systematic observation and study. On Taylor's 'scientific management' rests, above all, the tremendous surge of affluence in the last seventy-five years which has lifted the working masses in the developed countries well above any level recorded before, even for the well-to-do. Taylor, though the Isaac Newton (or perhaps the Archimedes) of the science of work, laid only first foundations, however. Not much has been added to them since – even though he has been dead all of sixty years."

"We never had any use for Taylor or any of the efficiency or scientific management crowd. They never realized that human toil was the last thing in the world you had to be efficient about; the only way to be really efficient is to eliminate it entirely, and this would have been heresy to any of the Taylor, Gant, Barth, Cook efficiency crowd."

"With the triumph of scientific management, unions would have nothing left to do, and they would have been cleansed of their most evil feature: the restriction of output. To underscore this idea, Taylor fashioned the myth that 'there has never been a strike of men working under scientific management', trying to give it credibility by constant repetition. In similar fashion he incessantly linked his proposals to shorter hours of work, without bothering to produce evidence of "Taylorized" firms that reduced working hours, and he revised his famous tale of Schmidt carrying pig iron at Bethlehem Steel at least three times, obscuring some aspects of his study and stressing others, so that each successive version made Schmidt's exertions more impressive, more voluntary and more rewarding to him than the last. Unlike Harrington Emerson, Taylor was not a charlatan, but his ideological message required the suppression of all evidence of worker's dissent, of coercion, or of any human motives or aspirations other than those his vision of progress could encompass."

"When Taylor began his efforts at the Midvale Steel Company in the 1880s, several members of the American Society of Mechanical Engineers were likewise interested in labor management. Industrial capitalism was running up against renewed resistance from the growing ranks of labor, still committed to a sense of work integrity and craftsmanship. Task management, or scientific management as it came to be called, began to take shape in the eighties as the way to break the worker's threatening resistance. The heart of this approach is the systematic reduction of work into discrete, routinized tasks, totally separated from any policy decisions about the job. ... For capitalism to be firmly in control, it must monopolize information and techniques as surely as it controls the rest of the means of production. The worker must be permitted only to perform certain specific narrow tasks as planned by management."

"Despite the pseudo-scientific apologies for the Taylorist approach, the public readily developed a very negative view of it. As the Taylor Society admitted with surprising candor, scientific management was widely seen as "the degradation of workmen into obedient oxen under the direction of a small body of experts&mdash;into men debarred from creative participation in their work.""

"Commons provided the cardinal reason for the unions' absence of hostility to Taylorism: "... the unions have generally come to the point of confining their attention to wages — that is, to distribution — leaving to employers the question of production." ... The "management's rights" clause found in every U.S. union contract ... vests the sole right to set work methods, job design, assignments, etc. with management. ... In fact, well before the War the idea began spreading that unionization, with its standard "management's rights" clause contracts, was the best approach for fitting the Taylorist yoke on the workers. The efficacy of this "trojan horse" tactic of union mediation led Thompson to prescribe industrial unionism over the AFL's craft unionism as the best way the secure the Taylor system in industry."

"The greatest problem before engineers and managers today is the economical utilization of labor. The limiting of output by the workman, and the limiting by the employer of the amount a workman is allowed to earn, are both factors which militate against that harmonious co-operation of employer and employee which is essential to their highest common good."

"The aim of our efficiency has not been to produce goods, but to harvest dollars... The production of goods was always secondary to the securing of dollars."

"Finance and industry must be socialized somehow. If we refuse to do it from the bottom we shall have to do it from the top, and doing it from the top means the emergence of many Prussias — with wars upon wars."

"The mechanical engineer today is carrying forward, under the direction of science, the work that was begun by the mechanic who first learned to chip flint or make a fire ; and it is he alone that can lead the mechanic of today to a better understanding of his problems, and the capitalist to a better appreciation of their solution."

"Scientific investigation is rapidly putting at our disposal vast amounts of knowledge concerning materials and forces, which it is the business of the engineer to utilize for the benefit of the community. Well-designed plants and efficiency labor-saving devices, to be seen on every hand, bear testimony that he is doing at least a portion of his work well. When, however, it comes to the operation of these plants and the utilization of these labor-saving devices, the lack of co-operation between employer and employee, and the inefficient utilization of labor, very much impair their efficiency. The increase of this efficiency is essentially the problem of the manager, and the amount to which it can be increased by proper study is, in most cases, so great as to be almost incredible."

"Whatever we do must be in accord with human nature. We cannot drive people; we must direct their development... The general policy of the past has been to drive, but the era of force must give way to that of knowledge, and the policy of the future will be to teach and to lead, to the advantage of all concerned"

"There is another and higher leadership, that of the intellect, by which the methods and thoughts of one man may affect the whole civilized world. Industrial leaders who have most prominently attracted our attention in the past are those who have, by their inventions or their direction of activities, accumulated large fortunes ; but none of these are as great as the man who by the force of his intellect leads people throughout the civilized world to benefit themselves and others. Such a man was the late Frederick Winslow Taylor who, in his determination to eliminate error and to base our industrial relations on fact, set an example which will have an effect all over the world"

"Taylor’s friend Henry Gantt explains to his fellow engineers in the middle of the First World War that they must "develop a task system on the basis of democracy that will yield as good, or better, results than those now in operation under autocracy""

"It is becoming perfectly clear that the principles underlying industrial and military efficiency are the same and that a nation, to be efficient in a military sense, must first be efficient industrially"

"Engineers were the only members of the community "who understand the needs of the nation, desires of the workmen, and the power of the productive forces""

"For more than twenty years Mr. Gantt has been closely interested in advanced work in the field of labor management. For more than ten years his name has been identified with certain methods which, nevertheless, are yet but partially and imperfectly understood by many, and because of this incomplete understanding are sometimes supposed to be summed up in the "Bonus System" of wage payment."

"The achievement of Gantt offers a means of measuring the human or social efficiency of industry... Gantt's method has made it possible to ascertain the cause of the diseased industry just as blood analysis established the cause of malaria. While the latter made the completion of the Panama Canal possible, the former will transform industry from servitude into creative service and its pensioners into respectable members of the community... Unlike statistical diagrams, curve records, and similar static forms of presenting facts of the past (Gantt) charts... are kinetic, moving, and project through time the integral elements of service rendered in the past toward the goal in the future."

"Mr. Gantt concentrated his attention on the development of a method of charting which would show a comparison between performance and promises... he had used a chart on which the work for machines was "laid out" according to the time required to do it. The Gantt Progress Chart, as developed from this early form, was found to help in the making of definite plans and to be highly effective in getting those plans executed. The rate at which the work goes forward is continuously compared with the advance of time, which induces action to accelerate or retard that rate. These charts are not static records of the past - they deal with the present and future and their only connection with the past is with respect to its effect upon the future."

"For continuous flow production such as this I know of nothing better for recording output and comparing performance with capacity or what ought to be produced, than the straight line charts developed by Mr. H. L. Gantt, which show required and actual production in terms of both quantity and time. Their use, however, is not limited to the class of work just described."

"Lack of specificity around stakeholder identity remains a serious obstacle to the further development of stakeholder theory and its adoption in actual practice by business managers. Nowhere is this shortcoming more evident than in stakeholder theory's treatment of the constituency known as 'community."

"The stakeholder concept was originally defined as "those groups without whose support the organization would cease to exist." The list of stakeholders originally included shareowners, employees, customers, suppliers, lenders and society. Stemming from the work of Igor Ansoff and Robert Stewart (in the planning department at Lockheed) and, later Marion Doscher and Stewart at SRI, the original approach served an important information function in the SRI corporate planning."

"While there have been many criticisms of the research in corporate social responsibility, perhaps the most troubling issue is the very nature of 'corporate social responsibility' as if the concept were needed to augment the study of business policy. Corporate social responsibility was often looked at as an “add on” to “business as usual” and the phrase often heard from executives is “corporate social responsibility is fine, if you can afford it. We need to understand the complex interconnections between economic and social forces. Isolating "social issues" as separate from the economic impact which they have, and conversely isolating economic issues as if they had no social effect, misses the mark both managerially and intellectually. Actions aimed at one side will not address the concerns of the other. Processes, techniques and theories that do not consider all of these forces will fail to describe and predict the business world as it really is."

"A stakeholder in an organization is (by definition) any group or individual who can affect or is affected by the achievement of the organization's objectives."

""Stakeholder Management" as a concept, refers to the necessity for an organization to manage the relationships with its specific stakeholder groups in an action-oriented way."

"Historically, moves to new ways of moral decision making depend on and occur in pockets of people of good will, who can explore with each other novel ways of relating without threatening or being threatened."

"Somewhere in the past. organizations were quite simple, and 'doing business' consisted of buying raw material from suppliers, converting into products, and selling it to customers... For the most part owner-entrepreneurs founded such simple business and worked along with members of their families. The family-dominated business still accounts for a large portion of the business start today."

"A number of factors coalesced to make larger and larger firms more economical. The development of new production processes, such as assembly line, means that jobs could be specialized and more work could be accomplished. New technologies and sources of power became readily available. Demographic factors began to favor concentration of production in urban areas. These and other social and political forces require larger amounts of capital, well beyond the scope of most individual owner-manager-employee."

"We are in need of new concepts... which reorient our way of looking at the world to encompass present and future changes. I believe [in] the predominant framework for modern corporation... the corporation is viewed as a resource-conversion entity, taking raw material and converting tme into products, with dollars measuring the transaction. Returns are provided to owners in the form of dividends or capital appreciation in the marketplace."

"Freeman is the acknowledged father of the stakeholder approach. His Strategic Management: a Stakeholder Approach (1984) introduced the concept of stakeholders, all of those individuals or groups other than shareholders (or owners) who have a stake in the particular decision or action of companies. The book proved to be a landmark in the development of stakeholder theory, a theory of management and business ethics that emphasises morality and ethicality in managing organisations. This theory was a departure from the dominant Anglo-Saxon approach that grants priority to shareholders and independence of management. Nowadays, the stakeholder approach is mentioned in virtually every publication on corporate governance and corporate social responsibility. By interacting with their stakeholders and societal context, organisations are able to establish their (social) responsibility system, enforced in part through laws and regulations but also increasingly voluntarily through company codes and business principles. The stakeholder theory is applied within various scientific disciplines ranging from business to law, from politics to health."

"I deeply believe that this society has now thrust upon it a kind of moral imperative to focus efforts on the utilization of general systems concepts and conceptualizations by policy-forming executives, administrators, and managers in all kinds of large-scale organizations."

"Systems analysis, conceived in a policy sciences framework, is the macro instrument of the systems manager for understanding, evaluating and improving human systems — which are defined as goal oriented interdependent units incorporating people, organization and some form of technology for control, administration or output."

"Much of philosophy concerns man's search for holistic concepts which will help him see a meaningful pattern in the complexity with which his perceptual world confronts him. What is new is the rapidly growing intensity of the quest, and the modern context of the search. Plato's Republic is from a world quite different from that of Boguslaw's. The New Utopians."

"From society's standpoint, modern science and technology appears Janus-faced : It has given us wealth in one sense, and poverty in another; it has harnessed nature to man's basic needs in ways and to extents undreamed - of only a few decades ago, but it has fostered a continuingly lowered "quality of life"."

"Perhaps the most important single characteristic of modern organizational cybernetics is this: That in addition to concern with the deleterious impacts of rigidly-imposed notions of what constitutes the application of good "principles of organization and management" the organization is viewed as a subsystem of a larger system(s), and as comprised itself of functionally interdependent subsystems."

"The essence of cybernetic organizations is that they are self-controlling, self-maintaining, self-realizing. Indeed, cybernetics has been characterized as the “science of effective organization,” in just these terms. But the word “cybernetics” conjures, in the minds of an apparently great number of people, visions of computerized information networks, closed loop systems, and robotized man-surrogates, such as “artorgas” and “cyborgs.”"

"This is a time in human affairs when, In the context of the foregoing analysis, the “radical” point of view is likely to prove to be the “conservative” one: we may well be in the early stages of a “cybernetic revolution” worthy of “1984” and “RUR.” Thus, to accept as potential reality what may seem an alarmist view, may turn out to be the only perspective which secures viable options by promoting mankind's welfare."

"It follows from this that man's most urgent and pre-emptive need is maximally to utilize cybernetic science and computer technology within a general systems framework, to build a meta-systemic reality which is now only dimly envisaged. Intelligent and purposeful application of rapidly developing telecommunications and teleprocessing technology should make possible a degree of worldwide value consensus heretofore unrealizable."

"and Richard Ericson have articulated the potential of systems and cybernetics (communications and control) concepts to improve the decision-making processes and “steering” mechanisms of government."

"The technological changes that damage established companies are usually not radically new or difficult from a technological point of view. They do, however, have two important characteristics: First, they typically present a different package of performance attributes—ones that, at least at the outset, are not valued by existing customers. Second, the performance attributes that existing customers do value improve at such a rapid rate that the new technology can later invade those established markets."

"We contest the conclusions of scholars such as Tushman and Anderson (1986), who have argued that incumbent firms are most threatened by attacking entrants when the innovation in question destroys, or does not build upon, the competence of the firm. We observe that established firms, though often at great cost, have led their industries in developing critical competence-destroying technologies, when the new technology was needed to meet existing customers’ demands."

"Our findings support many of the conclusions of the resource dependence theorists, who contend that a firm's scope for strategic change is strongly bounded by the interests of external entities (customers, in this study) who provide the resources the firm needs to survive."

"Only the general manager can mold the resources, processes, and values that affect innovation, into a coherent capability to develop and launch superior new products and services repeatedly."

"It’s easier to hold to your principles 100% of the time than it is to hold to them 98% of the time."

"Disruptive technologies typically enable new markets to emerge. There is strong evidence showing that companies entering these emerging markets early have significant first-mover advantages over later entrants."

"Generally, were technologically straightforward, consisting of off-the-shelf components put together in a product architecture that was often simpler than prior approaches. They offered less of what customers in established markets wanted and so could rarely be initially employed there. They offered a different package of attributes valued only in emerging markets remote from, and unimportant to, the mainstream"

"The concept of the value network — the context within which a firm identifies and responds to customers' needs, solves problems, procures input, reacts to competitors, and strives for profit — is central to this synthesis."

"Adrian Slywotzky believes the Internet will overturn the inefficient push model of supplier-customer interaction. He predicts that in all sorts of markets, customers will use choiceboards—interactive, on-line systems that let people design their own products by choosing from a menu of attributes, prices, and delivery options. And he explores how the shifting role of the customer—from passive recipient to active designer—will change the way companies compete."

"[There is a distinguishes between] low-end disruption which targets customers who do not need the full performance valued by customers at the high end of the market and "new-market disruption" that targets customers that could previously not be served profitably by the incumbent."

"[Descriptive research provides] an accurate description or picture of the status or characteristics of a situation or phenomenon."

"During the early stages of an industry, when the functionality and reliability of a product isn't yet adequate to meet customer's needs, a proprietary solution is almost always the right solution -- because it allows you to knit all the pieces together in an optimized way. But once the technology matures and becomes good enough, industry standards emerge. That leads to the standardization of interfaces, which lets companies specialize on pieces of the overall system, and the product becomes modular. At that point, the competitive advantage of the early leader dissipates, and the ability to make money migrates to whoever controls the performance-defining subsystem. In the modular PC world, that meant Microsoft and Intel (NASDAQ:INTC), and the same thing will happen in the iPod world as well. Apple may think the proprietary iPod is their competitive advantage, but it's temporary. In the future, what will matter will be the software inside that lets users find exactly the kind of music they want to listen to, when and where they want to, with minimal effort."

"I think [the Vista fiasco] will allow [Apple] to survive for a bit longer."

"[T]he prediction of [my disruption] theory would be that Apple won't succeed with the iPhone. They've launched an innovation that the existing players in the industry are heavily motivated to beat: It's not [truly] disruptive. History speaks pretty loudly on that, that the probability of success is going to be limited."

"Low-end disruption occurs when the rate at which products improve exceeds the rate at which customers can adopt the new performance."

"Management is the most noble of professions if it’s practiced well. No other occupation offers as many ways to help others learn and grow, take responsibility and be recognized for achievement, and contribute to the success of a team"

"Generally, you can be humble only if you feel really good about yourself — and you want to help those around you feel really good about themselves."

"The transition from proprietary architecture to open modular architecture just happens over and over again. It happened in the personal computer. Although it didn’t kill Apple’s computer business, it relegated Apple to the status of a minor player. … You also see modularity organized around the Android operating system that is growing much faster than the iPhone. So I worry that modularity will do its work on Apple."

"So the people using the Android operating system are now Motorola, Samsung, LG. And they are killing Apple: now, Android accounts for about 80 percent of the market."

"All of the points that [Professor Lepore] raised were not just wrong, but they were lies. Ours is the only theory in business that actually has been tested in the marketplace over and over again. ... And for her to take that on, to take me on and the theory on – I don't know where the meanness came from."

"Clayton M. Christensen is the architect of and the world's foremost authority on disruptive innovation, a framework which describes the process by which a product or service takes root initially in simple applications at the bottom of a market and then relentlessly moves up market, eventually displacing established competitors."

"There are always “class or prestige” gaps between various levels of management. There are also functional gaps between working units of the organization. If we superimpose the management gaps on top of the functional gaps, we find that companies are made up of small operational islands that refuse to communicate with one another for fear that giving up information may strengthen their opponents. The {[w|project manager}}’s responsibility is to get these islands to communicate cross-functionally toward common goals and objectives."

"The ’s job is not an easy one. Project managers may have increasing responsibility, but very little authority. This lack of authority can force them to “negotiate” with upper-level management as well as functional management for control of company resources. They may often be treated as outsiders by the formal organization."

"There is no such thing as a good or bad organizational structure; there are only appropriate or inappropriate ones."

"If these responsibilities were applied to the total organization, they might reflect the job description of the general manager. This analogy between project and general managers is one of the reasons why future general managers are asked to perform functions that are implied, rather than spelled out, in the job description."

"The acceptance of project management has not been easy, however. Many executives are not willing to accept change and are inflexible when it comes to adapting to a different environment."

"Project management has long been discussed by corporate executives and academics as one of several workable possibilities for organizational forms of the future that could integrate complex efforts and reduce bureaucracy.... This approach does not really destroy the vertical, bureaucratic flow of work but simply requires that line organizations talk to the other horizontally so work will be accomplished more smoothly throughout the organization"

"Today, the concept behind project management is being applied in such diverse industries and organizations as defense, construction, pharmaceuticals, chemicals, banking, hospitals, accounting, advertising, law, state and local governments, and the United Nations."

"Project management is the planning, organizing, directing, and controlling of company resources for a relatively short-term objective that has been established to complete specific goals and objectives. Furthermore, project management utilises the systems approach to management by having functional personnel (the vertical hierarchy) assigned to a specific project (the horizontal hierarchy)."

"As contractors began to understand project management better and stronger cost control became a requirement, the definition of success changed. Success came to be defined as accomplishing the effort on time, within budget, and at an acceptable level of quality."

"Today, excellent companies realize that project failures have more to do with behavioral shortcomings — poor employee morale, negative human relations, low productivity, and lack of commitment."

"With over 35 years experience, Dr. Harold Kerzner is widely regarded as "the master of project management." He has published a number of best-selling books, including Project Management: A Systems Approach to Planning, Scheduling, and Controlling, and has taught and consulted extensively."

"There are many leaders, not just one. Leadership is distributed. It resides not solely in the individual at the top, but in every person at every level who, in one way or another, acts as a leader to a group of followers - wherever in the organization that person is, whether shop steward, team head, or CEO."

"It’s that feeling when you make it home Friday night and pour yourself a drink or a glass of wine and feel like the blood has drained out of you... I actually think is the wrong description of it. I think it’s ‘burn up. Physiologically, that is what you are doing because of the chronic stress being placed on your body."

"It's depressing to realize how few of the teams in our lives use their human capital and opportunities well, when it comes to sustaining performance, innovating, or adapting. That's true whether we're talking about families, sports, projects, management, or research."

"The Competent Manager: A Model for Effective Performance offers an empirical, total system approach that determines which characteristics of managers enable them to be effective in various management jobs."

"The models of management which individuals and organizations use come from a variety of sources. Sometimes the model comes from a theory. The theory may emerge from someone's thoughts about the desired characteristics of a manager, or about the characteristics of competent managers. Sometimes the model comes from a panel. A group of people, possibly in the job or at levels above the job within the organization, generates a model through discussion of what is needed to perform a management job competently."

"Models of management sometimes come from task and function analyses of management jobs. Someone studies what managers do, or what duties and responsibilities they are expected to perform, and then develops a model or image of what competent management is (Mintzberg, 1973). Typically, task and function analyses result in detailed descriptions of what activities must be performed in the job. Often these are not arrayed in any order of importance or relevance to the particular job or to the desired output from someone performing the job. Such models have been tested, in that systematic research is conducted to determine if the dentified activities are part of the job. Unfortunately, models based on task or function analysis focus on the job and do not address the person in the job. In doing so, the models include many specific and detailed descriptions of activities, but no mention is made of the characteristics that enable or increase the likelihood of a person performing those activities. These models do not establish a casual link between characteristics of people and performance in a job."

"Understanding the concept of competency is a prerequisite to understanding his integrated model of management."

"A competency is an underlying characteristic of the person that leads to or causes effective or superior performance."

"A job competency is an underlying characteristic of a person in that it may be a motive, trait, skill, aspect of one’s self-image or social role, or a body of knowledge which he/she uses. The existence and possession of these characteristics may or not be known to the person. In this sense, the characteristics may be unconscious aspects of the person. Because job competencies are underlying characteristics, they can be said to be generic. A generic characteristic may be apparent in many forms of behaviour, or a wide variety of different actions."

"A threshold competency is a person's generic knowledge, motive, trait, self image, social role, or skill which is essential to performing a job, but is not causally related to superior job performance."

"An underlying characteristic of a person in that it may be a motive, trait, skill, aspect of one’s self-image or social role, or a body of knowledge which he or she uses... a person’s competencies reflect his or her capability. They are describing what he or she can do, not necessarily what he or she does, nor does all the time regardless of the situation and setting."

"Skill is a property of a person; it is a person's ability to demonstrate a system and sequence of behaviour that [is] functionally related to attaining a performance goal."

"The result of a job element analysis is a weighted list of characteristics that managers perceive as important in distinguishing superior from average performers, and those characteristics required by anyone in the job."

"The study resulted in a model of competence, not merely a laundry list of characteristics."

"At the core of every manager’s job is the requirement to make things happen toward a goal or consistent with a plan. Managers need to set goals and initiate actions to achieve them."

"Thematic analysis is a process for encoding quantitative information. The encoding requires an explicit "code". This may be a list of themes; a complex model with themes, indicators, and qualifications that are causally related; or something in between these two forms. A theme is a pattern found in the information that at minimum describes and organizes the possible observations and at maximum interprets aspects of the phenomenon. A theme may be identified at the manifest level (directly observable in the information) or at the latent level (underlying the phenomenon). The themes may be initially generated inductively from the raw information or generated deductively from theory or prior research."

"The raw data or information collected for studies using is a person's own words or actions or observable aspects of his or her life in an organization or culture."

"is a process for encoding quantitative information."

"[A process for encoding qualitative information] used as part of many qualitative method, considers that is not a separate method but something to be used to assist the researcher in the search of insight."

"[The process of paraphrasing or summarizing each piece of data enters information] into your unconscious, as well as consciously processing the information."

"The unit of coding is the most basic segment, or element, of the raw data or information that can be assessed in a meaningful way regarding the phenomenon."

"When the sample size is small or the study is of one organization, descriptive use of the thematic coding is desirable."

"Boyatzis’s pioneering study of The Competent Manager (1982) was undoubtedly a major influence on the enormous growth of management based competency models during the early 1990s. His work promised a new, more integrated and universal approach to management education, training and development."

"In organizations, real power and energy is generated through relationships. The patterns of relationships and the capacities to form them are more important than tasks, functions, roles, and positions."

"Change always involves a dark night when everything falls apart. Yet if this period of dissolution is used to create new meaning, then chaos ends and new order emerges."

"To name is to make visible."

"Scott London: How did you begin to explore the connection between management and science? Meg Wheatley: I didn't have an interest in the new science. I had a realization that in my profession — which was vaguely labeled "organizational change," "organizational development," or "management consulting" in general — none of us knew how organizations change. When I talked to other consultants, I noticed that if we had an organizational change effort that was successful, it felt like a miracle to us. I realized with a great start one day that we weren't even geared up for success. It didn't matter that we didn't know how to change organizations. We were all professionals who didn't hope to achieve what we were selling or suggesting to clients. The field was really moribund. At the same time — and this is the serendipity of life — I had a friend and educator whom I had worked with for many years who said casually one day "Meg, if you're interested in systems thinking, you should be reading quantum physics." He didn't know where I was in my despair over my professional failings. But I said, "Okay, give me a book list." He gave me ten titles. I read eight of those and I was off. I always credit him with that casual, helpful comment that changed my life."

"I was reading of chaos that contained order; of information as the primal, creative force; of systems that, by design, fell apart so they could renew themselves; and of invisible forces that structured space and held complex things together. These were compelling, evocative ideas, and they gave me hope, even if they did not reveal immediate solutions."

"We have created trouble for ourselves in organizations by confusing control with order. This is no surprise, given that for most of its written history, leadership has been defined in terms of its control functions."

"The things we fear most in organizations - fluctuations, disturbances, imbalances - need not be signs ofan impending disorder that will destroy us. Instead, fluctuations are the primary source of creativity."

"We will need to become savvy about how to build relationships, how to nurture growing, evolving things. All of us will need better skills in listening, communicating, and facilitating groups, because these are the talents that build strong relationships."

"If vision is a field, think about what we could do differently to create one. We would do our best to get it permeating through the entire organization so that we could take advantage of its formative properties. All employees, in any part of the company, who bumped up against the field, would be influenced by it. Their behavior could be shaped as a result of “field meetings”, where their energy would link with the fields form to create behavior congruent with the organizations goals. In the absence of that field, in areas of the organization that hadn’t been reached, we could hold no expectation of desired behaviors. If the field hadn’t extended into that space, there would be nothing there to help behaviors materialize, no invisible geometry working on our behalf"

"Leadership is always dependent upon the context, but the context is established by the relationships."

"The dense and tangled web of life-the interconnected nature of reality--now reveals itself on a daily basis. Since September 11th, think about how much you've learned about people, nations, and ways of life that previously you'd known nothing about. We've been learning how the lives of those far away affect our own. We're beginning to realize that in order to live peacefully together on this planet, we need to be in new relationships, especially with those far-distant from us."

"I believe that our very survival depends upon us becoming better systems thinkers. How can we learn to see the systems we're participating in? How can we act intelligently when things remain fuzzy?"

"Here are a few principles I've learned. Start something, and see who notices it. It's only after we initiate something in a system that we see the threads that connect. Usually, someone we don't even know suddenly appears, either outraged or helpful."

"Relationships are all there is. Everything in the universe only exists because it is in relationship to everything else. Nothing exists in isolation. We have to stop pretending we are individuals that can go it alone."

"There is no power for change greater than a community discovering what it cares about."

"In our daily life, we encounter people who are angry, deceitful, intent only on satisfying their own needs. There is so much anger, distrust, greed, and pettiness that we are losing our capacity to work well together."

"Whatever life we have experienced, if we can tell our story to someone who listens, we find it easier to deal with our circumstances."

"There is a simpler, finer way to organize human endeavor. I have declared this for many years and seen it to be true in many places. This simpler way is demonstrated to us in daily life, not the life we see on the news with its unending stories of human grief and horror, but what we feel when we experience a sense of life's deep harmony, beauty, and power, of how we feel when we see people helping each other, when we feel creative, when we know we're making a difference, when life feels purposeful."

"Over many years of work all over the world, I've learned that if we organize in the same way that the rest of life does, we develop the skills we need: we become resilient, adaptive, aware, and creative. We enjoy working together. And life's processes work everywhere, no matter the culture, group, or person, because these are basic dynamics shared by all living beings."

"Without reflection, we go blindly on our way, creating more unintended consequences, and failing to achieve anything useful. It's amazing to me how much we do, but how little time we spend reflecting on what we just did."

"When we can lay down our fear and anger and choose responses other than aggression, we create the conditions for bringing out the best in us humans."

"In the past, it was easier to believe in my own effectiveness. If I worked hard, with good colleagues and good ideas, we could make a difference. But now, I sincerely doubt that."

"Meg Wheatley was thrown into the public spotlight in 1992 with the publication of Leadership and the New Science, a groundbreaking look at how new discoveries in quantum physics, chaos theory, and biology challenge our standard ways of thinking in organizations. It showed how our reliance on old, mechanistic models stand in the way of innovation and effective leadership."

"The road must run save first and fast afterward."

"The magnitude of the business of this road, its numerous and important connections, and. the large number of employés engaged in operating it, have led many, whose opinions are entitled to respect, to the conclusion, that a proper regard to details, which enter so largely into the elements of success in the management of all railroads, cannot possibly be attained by any plan that contemplates its organization as a whole ; and in proof of this position, the experience of shorter roads is referred to, the business operations of which have been conducted much more economically. Theoretically, other things being equal, a long road should be operated for a less cost per mile than a short one. This position is so clearly evident and so generally admitted, that its truth may be assumed without offering any arguments in support of it ; and, notwithstanding the reverse, so far as practical results are considered, has generally been the case, we must look to other causes than the mere difference in length of roads for a solution of the difficulty."

"A superintendent of a road fifty miles in length can give its business his professional attention and may be constantly on the line engaged in the direction of its details; each person is personally known to him, and all questions in relation to its business are at once presented and acted upon; and any system however imperfect may under such circumstances prove comparatively successful. In the government of a five hundred miles in length a very different state exists. Any system which might be applicable to the business and extent of a short road would be found entirely inadequate to the wants of a long one. and I am fully convinced that in the want of system perfect in its details, properly adapted and vigilantly enforced, lies the true secret of their [the large roads’] failure; and that this disparity of cost per mile in operating long and short roads, is not produced by a difference in length, but is in proportion to the perfection of the system adopted."

"In my opinion a system of operations, to be efficient and successful, should be such as to give to the principal and responsible head of the running department a complete daily history of details in all their minutiae. Without such supervision, the procurement of a satisfactory annual statement must be regarded as extremely problematical. The fact that dividends are earned without such control, does not disprove the position, as in many cases the extraordinarily remunerative nature of an enterprise may ensure satisfactory returns under the most loose and inefficient management. It may be proper here to remark, that in consequence of that want of adaptation before alluded to, we cannot avail ourselves to any great extent of the plan of organization of shorter lines in framing one for this, nor have we any precedent or experience upon which we can fully rely in doing so. Under these circumstances, it will scarcely be expected that we can at once adopt any plan of operations which will not require amendment and a reasonable time to prove its worth. A few general principles, however, may be regarded as settled and necessary in its formation, amongst which are:"

"# A proper division of responsibilities."

"# Sufficient power conferred to enable the same to be fully carried out, that such responsibilities may be real in their character."

"# The means of knowing whether such responsibilities are faithfully executed."

"# Great promptness in the report of all derelictions of duty, that evils may be at once corrected."

"# Such information, to be obtained through a system of daily reports and checks that will not embarrass principal officers, nor lessen their influence with their subordinates."

"# The adoption of a system, as a whole, which will not only enable the General Superintendent to detect errors immediately, but will also point out the delinquent."

"1. The several divisions and branches are in charge of superintendents, who are held responsible for the successful working of their respective divisions, and for the maintenance of proper discipline and conduct of all persons employed thereon, except such as are in the employment of other offices "acting under directions from the general superintendent's office, as herein after stated. They possess all the powers delegated by the organization to the general superintendent, except in matters pertaining to the duties of general ticket agent, general freight agent, general wood agent, telegraph "management, and engine and car repairs."

"Each officer possesses all the power necessary to render his position efficient, and has the authority with the approval of the President and General Superintendent to appoint all persons for whose acts he is held responsible, and may dismiss any subordinate when, in his judgment, the interest of the company will be promoted thereby."

"The enforcement of a rigid system of discipline in the government of works of great magnitude is indispensable to success. All subordinates should be accountable to and be directed by their immediate superiors only; as obedience cannot be enforced where the foreman in immediate charge is interfered with by a superior officer giving orders directly to his subordinates."

"It is very important, that principal officers should be in full possession of all information necessary to enable them to judge correctly as to the industry and efficiency of subordinates of every grade."

"When the time-table is so arranged as to call for speed nearly equal to the full capacity of the engine, it is very obvious that the risks of failure in making time, must be much greater than at reduced rates, and when they do occur, the efforts made to gain time must be correspondingly greater and uncertain. A train whose prescribed rate of speed is thirty miles per hour, having lost five minutes of time, and being required to gain it, in order to meet and pass an opposing train at a station ten miles distant, must necessarily increase its speed to forty miles an hour; and a train whose rate of speed is 40 miles per hour, under similar circumstances, must increase its speed to 60 miles per hour."

"A single track railroad may be rendered more safe and efficient, by a proper use of the telegraph, than a double track railroad without its aid,"

"Collisions between fast and slow trains, moving in the same direction, are prevented by the application of the following rule: The conductor of a slow train will report himself to the Superintendent of Division immediately on arrival at a station where, by the time-table, he should be overtaken by a faster train; and he shall not leave that station until the fast train passes, without special orders from the Superintendent of Division."

"The passing-place for trains is fixed and determined, with orders positive and defined that neither shall proceed beyond that point until after the arrival of the other; whereas, in the absence of the telegraph, conductors are governed by general rules, and their individual understanding of the same,—which rules are generally to the effect, that, in case of detention, the train arriving first at the regular passing-place shall, after waiting a few moments, proceed cautiously (expecting to meet the other train, which is generally running as much faster, to make up lost time, as the cautious train is slower) until they have met and passed; the one failing to reach the half-way point between stations being required to back,—a dangerous expedient always,—an example of which operation was furnished at the disaster on the Camden and Amboy Railroad near Burlington; the delayed train further being subjected to the same rule in regard to all other trains of the same class it may meet, thus pursuing its hazardous and uncertain progress during the entire trip."

"Hourly reports are received by telegraph, giving the position of all the passenger and the principal freight trains. In all cases where passenger trains are more than ten minutes, or freight trains more than half-an-hour behind time, on their arrival at a station the conductors are required to report the cause to the operator, who transmits the same by telegraph to the General Superintendent; and the information being entered as fast as received, on a convenient tabular form, shows, at a glance, the position and progress of trains, in both directions, on every Division of the Road."

"This comparison [of division accounts] will show the officers who conduct their business with the greatest economy, and will indicate, in a manner not to be mistaken, the relative ability and fitness of each for the position he occupies. It will be valuable in pointing out the particulars of excess in the cost of management of one division with another, by comparison of details; will direct attention to those matters in which sufficient economy is not practiced; and it is believed, will have the effect of exciting an honorable spirit of emulation to excel."

"All that is required to render tho efforts of railroad companies in every respect equal to that of individuals, is a rigid system of personal accountability through every grade of service."

"Business of a private and important character, which cannot be neglected without great pecuniary sacrifice, has induced me to make this the occasion of tendering my resignation."

"Some differences of opinion exist in the Board of Directors, in regard to the discipline that has been pursued in the superintendence of the operations of the road. [It was his understanding that] a respectable number of them entertain views... somewhat at variance with my own."

"Mr. McCallum's strong point, lies in his power to arrange and systematize, and in his ambitions to perfect his systems. To this end he has untiringly devoted his energies since he was appointed in charge of this great work."

"His great strength was in sharpening lines of authority and communication, and in stimulating the flow of the minute and accurate information which top management needed for the complex decisions it was increasingly being called upon to make Hourly, daily, and monthly reports, more detailed than those called for earlier on the Baltimore & Ohio, provided this essential information."

"The "general principles" of management were set out by Daniel C. McCallum. superintendent of the New York and Erie Railroad, in that company's annual report for 1855."

"McCallum quickly moved to install a management system to replace the overloaded manager. He broke his railroad into geographical divisions of manageable size. Each was headed by a superintendent responsible for the operations within his division, Each divisional superintendent was required to submit detailed reports to central headquarters, from where McCallum and his aides coordinated and gave general direction to the operations of the separate divisions. Lines of authority between each superintendent and his subordinates and between each superintendent and headquarters were clearly laid out. In sketching these lines of authority on paper, McCallum created what might have been the first organizational chart for an American business (Chandler 1962). Soon the other great railroads copied the Erie's system, enabling the big railroads to function as effectively as small ones. As a result, railroads rapidly became the largest industrial companies of that time,"

"In the early 1850s, Daniel McCallum, the General Superintendent of the New York and Erie Railroad, had a problem. At the time, the New York and Erie Railway was the largest railroad in the world. It moved trains over one million miles a year and employed hundreds of people - locomotive engineers, conductors, mechanics, station agents and more. For the first time in history it was impossible for a single person to personally manage every one of his employees. The solution was an historic innovation: the middle manager. With it, the first administrative hierarchies in American business were born and the gap between the owner and the entry-level employee inevitably widened. The corporate ladder received its first rungs."

"The history of McCallum’s great contribution toward Union victory is buried in the forgotten records of that bitter struggle."

"The world needs specialists and highly trained people with advanced degrees, no question about it. But the world also needs diversity and versatility. It needs people who know as much about our value system as they do about our solar system system."

"We hope this car will be less labor intensive, less material intensive, less everything intensive than anything we have done before."

"[Roger B. Smith] identified the following skills and mental processes required of today’s managers as those acquired and sharpened in the study of the liberal arts."

"# Individuals are trained to recognize recurring elements and common themes."

"# They are trained to see relationships between things that may seem different."

"# They are trained to combine familiar elements into new forms."

"# They learn to arrange their thoughts in logical order, to write and speak clearly and economically."

"# They learn to tolerate ambiguity and to bring order out of confusion."

"# They are accustomed to a relatively unstructured and unsupervised research and discovery process and feel comfortable with nonconformity."

"# They have insight into the fit of form with function."

"# They have learned sideways thinking, the cross classifying habit of mind that comes from learning many different ways to look at things."

"# They have learned to replace confrontation with cooperation and the principles of conflict resolution."

"# They have learned the importance of intellectual integrity, social responsibility, and ethical commitment."

"# They learn that the effective management of change comes from the habit of being receptive to new information, to new paths to traditional goals, even to new goals."

"# They have learned to uncover truths in many forms, and that an answer need not be final."

"# They need to see the worth of the impact of what they do, to understand its place in the larger schemes of things."

"# They learn about the kinds of creativity that leads to visionary solutions"

"I don’t expect them to build a big stone monument to me; that’s not my goal in life. I’d like to think that if I did anything extraordinary, it was the work that we did in getting the corporation ready for the 21st century."

"Liberal Arts may ultimately prove to be the most relevant learning model. People trained in the Liberal Arts learn to tolerate ambiguity and to bring order out of apparent confusion. They have the kind of sideways thinking and cross-classifying habit of mind that comes from learning, among other things, the many different ways of looking at literary works, social systems, chemical processes or languages."

"The ultimate impact of the liberal arts on the art of management, then, is a major contribution to the evolution of an ethical and humanistic capitalism -- a system that stimulates innovation, fosters excellence, enriches society, and dignifies work."

"Whether you are carving a statue or reorganizing a corporation, you have a vision of what you want to create, as well as a sense of how to make that vision real by bringing different elements together according to an overall pattern... And just as artists communicate their intent through their works, managers must be able to convey their vision in an inspiring and forceful way - in other words to lead - or else that vision will never be fully realized."

"Roger B. Smith [is] the General Motors executive who tried to modernize the American automotive giant during the 1980s but instead became associated with its decline."

"Roger Smith’s tenure was one of the darkest in General Motors’ history, for customers, workers and for residents of G.M.’s factory towns."

"Many organizations and their managers drive toward the future while looking through the rear-view mirror. They manage in relation to events that have already occurred, rather than anticipate and confront the challenges of the future."

"Organization always hinges on the creation of shared meanings and shared understandings, because there have to be common reference points if people are to shape an align their activities in an organized way."

"Organizations are complex and paradoxical phenomena that can be understood in many different ways. Many of our taken-for-granted ideas about organizations are metaphorical, even though we may not recognize them as such. For example, we frequently talk about organizations as if they were machines designed to achieve predetermined goals and objectives, and which should operate smoothly and efficiently. And as a result of this kind of thinking, we often attempt to organize and manage them in a mechanistic way, forcing their human qualities into a background role. By using different metaphors to understand the complex and paradoxical character of organizational life, we are able to manage and design organizations in ways that we may not have thought possible before."

"Consider, for example, the mechanical precision with which many of our institutions are expected to operate. Organizational life is often routinized with the precision demanded of clockwork. People are frequently expected to arrive at work at a given time, perform a predetermined set of activities, rest at appointed hours, and then resume their tasks until work is over. In many organizations, one shift of workers replaces another in methodical fashion so that work can continue uninterrupted twenty-four hours a day every day of the year. Often, the work is very mechanical and repetitive. Anyone who has observed work in the mass-production factory or in any of the large “office factories” processing paper forms such as insurance claims, tax returns, or bank checks will have noticed the machine-like way in which such organizations operate. They are designed like machines, and their employees are in essence expected to behave as if they were parts of machines."

"Bureaucracy can have dehumanizing effect upon employees, making them more like machines, especially those at the lower levels of the organizational hierarchy"

"The metaphor suggests that different environments favor different species of organizations based on different methods of organizing and that congruence with the environment is the key to success."

"As we look around the organizational world we begin to see that it is possible to identify different species of organization in different kinds of environments. Just as we find polar bears in arctic regions, camels in deserts, and alligators in swamps, we notice that certain species of organization are better ‘‘adapted’’ to specific environmental conditions than others. We find that bureaucratic organizations tend to work most effectively in environments that are stable or protected in some way and that very different species are found in more competitive and turbulent regions, such as the environments of high-tech firms in the aerospace and microelectronics industries."

"Any system that insulates itself from diversity in the environment tends to atrophy and lose its complexity and distinctive nature"

"To self-regulate, learning systems must be able to 1. Sense, monitor and scan significant aspects of their environment, 2. Relate this information to the operating norms that guide system behavior 3. Detect significant deviations from these norms, and 4. Initiate corrective action when discrepancies are detected. If these four conditions are satisfied, a continuous process of information exchange is created between a system and its environment, allowing the system to monitor changes and initiate appropriate responses. In this way, the system can operate in an intelligent, self-regulating manner."

"Contingency theorists suggest that we can best proceed by appointing 'the right people' to the job we have in mind, and by creating flexible authority, communications, and reward structures that will motivate them to satisfy their own needs through the achievement of organizational goals."

"The organization as a coalition of diverse stakeholders is a coalition with multiple goals."

"Conflict may be personal, interpersonal, or between rival groups or coalitions. It may be built into organizational structures, roles, attitudes, and stereotypes or arise over a scarcity of resources. It may be explicit or covert. Whatever the reason, and whatever the form it takes, its source rests in some perceived or real divergence of interests."

"Power is the medium through which conflicts of interest are ultimately resolved. Power influences who gets what, when, and how."

"Groups and departments often attempt to incorporate key skills and resources within their boundaries and to control admissions through selective recruitment."

"While they create a way of seeing and suggest a way of acting, they also tend to create ways of not seeing, and eliminate the possibility of actions associated with alternative views of the world."

"In order to live in harmony with one another, humans must moderate and control their impulses, and that the unconscious and culture were thus really two sides of the same coin."

"Patriarchy operates as a kind of conceptual prison, producing and reproducing organizational structures that give dominance to males and traditional male values."

"Though we may in quiet times confront the fact that we are going to die, much of our daily life is lived in the artificial realness created through culture. This illusion of realness helps to disguise our unconscious fear that everything is highly vulnerable and transitory."

"In highlighting the role of the unconscious in organization, there is a danger that many will now want to find ways of managing the unconscious as well. This, of course, is impossible, because the unconscious is, by nature, uncontrollable."

"Dialectical analysis thus shows us that the management of organization, of society, and of personal life ultimately involves the management of contradiction."

"An organization has no presence beyond that of the people who bring it to life."

"Imaginization is about improving our abilities to see and understand situations in new ways."

"In the most basic sense, imaginization invites a way of thinking. It encourages us to become our own theorists and to feel comfortable about acting on the basis our insights. It invites us to develop a skill that I believe we all have, even though we may not realize that this is the case. By recognizing this, and thinking creatively and intelligently about ourselves and our situations, we can 'push the envelope' on our realities and reshape them positively."

"Look for every seed of enthusiasm, and try to build pockets of success."

"Gareth Morgan is best known as the creator of the concept of 'organisational metaphors' as a management tool. His greatest insight has been to determine that, while there is no one model of organisation that can entirely capture the essence of organisation, it is possible by means of metaphors to look at organisations from different angles and see different facets"

"Gareth Morgan provides a rich and comprehensive resource for exploring the complexity of modern organizations internationally, translating leading-edge theory into leading-edge practice."

"The basic value of any proposition is its commercial aspect, and naturally the first query of inventor, capitalist and layman is : "What conditions exist that will make a market for automobiles or create a desire in the public mind for their use?" Some will say progression, the spirit of which surrounds us everywhere; others say, expediency and the desire for saving- minutes and even seconds; others, again, their convenience and readiness for instant use; all of which are true but do not in a broad sense answer the question, but create another as to what has made all these things desirable on the part of the public as things necessary to its comfort and welfare."

"When we review all that has been done by mechanical devices toward the displacement of animal power, it is very hard to refrain from drawing a conclusion that the horse must go; that is, speaking in the broad sense of the word. Mechanically propelled vehicles for all purposes are here."

"The simplicity attached to the operation of an electric vehicle by any person of ordinary intelligence is too well known to need comment at this point ; but it is found from experience that there is the same difference in the care taken of an electric vehicle that there is among men who attend dynamos and steam engines, or drive horses, with a corresponding difference in troubles and aggravations."

"The unsightly appearance of automobiles has been commented upon this country a great deal."

"Nowhere in the world of business at the present moment are conditions and methods changing more rapidly than in the work shop and factory itself. The application of new methods of processing, the invention of new tools, and the use of new combinations of cutting steels, are some of the things that in themselves are revolutionizing not only factory practice, but the character and skill of the labor employed; which results in a tendency toward a vast increase in output per capita. These things are in turn all forcing new methods and ways into industrial administration."

"Factories today are being run less and less by the authority of experience only, and more and more by the authority of figures and facts. The superintendent and manager of long experience and intuitive knowledge only is forced to make room for the younger man, of less experience, perhaps, but who modernizes his work by the jurisdiction of figures alone."

"The writer has found, in analyzing and diagnosing organization and accounting work, that charts can express more on one page than is sometimes expressed in several chapters of writing, and has been the author and originator of many methods of charting industrial expressions. It is necessary, as a first step, for analytical and other purposes, to make a chart expressing all of the relations governing the organization of a business so as to show the very foundation upon which all authorities, accounting, and business transactions are based and conducted. There have been more failures scored both personally and financially for lack of these very elements in a business than by reason of any other one thing. As well try to build a house without a foundation as to try to conduct a business, especially a manufacturing business, without proper organization."

"The actual manufacture of material into a specific product is a sort of digestive process which must have a functioning organization purposed to meet the required ends, just as the human body has, and it is governed by similar conditions. It must also be directed by a specific intelligence and must have internal and external avenues of correspondence to keep it alive; and, like a living organism, must adhere to the eternal economy of things and show a profit by its activities or it cannot progress. To exemplify this in a simple way, the writer has laid out Figure I, showing the prime elements composing the anatomy of an industrial body. One does not have to draw on the imagination very far to make a comparison of this anatomy with that of man. It has its mind, will power, and brain to direct it, as indicated by the stockholders, directors and executive officers, a heart which keeps in flow the circulating medium internally ; and avenues of correspondence with the outside world which furnish to it the very elements of existence. This chart shows first, that the stockholders are simply elements belonging to the general public who have made an investment for some specific purpose; second, that immediately after this, the election of directors sets into action the first internal factor in the body, which is then divided into different functioning powers by the election of executive officers."

"Figure II, which is one of the most interesting and valuable charts made by the writer in his work for the larger industrials. While it is reduced here to the simplest possible expression, it at the same time contains all of the elements which govern the laying out of an organization of any magnitude. This is the Chart of Prime and Working Authorities, showing exactly where each authority is related to the others and how far each authority may extend in the business. The writer has retained in this chart the administrative, commercial and manufacturing sections in the Authorities for Position as exhibited in Figure I, and Industrial has separated these different sections into purpose of showing how the authorities governing different departments are related to the industrial body as a whole."

"Organization aims to unite individuals into a body which shall work together for a common end. Specifically, organization prepares for the transaction of business by electing and appointing officers and committees, delegating authorities and bringing into systematic connection and cooperation, each and every part of the industrial body. Right organization, in short, puts vitality into the entire factory, secures the efficient working-together of all employees, from the manager's office to the mechanic's bench, routes materials, sub-divides work, inspects output and delivers the right goods, fully processed, at the shipping room door on the correct delivery date."

"In analyzing organization work, a single chart can frequently express more than any amount of detailed written explanation. First of all, clearly define author- ities within your establishment ; then chart those authorities simply and graphically, so that every workman knows to whom he is responsible, and every executive knows who is responsible to him. Place this chart conspicuously in every department where each employee can see it. In case of disputed authority, final proof is immediately at hand. There is then no loop-hole through which a neglectful workman, foreman or executive can crawl no longer does he have the excuse that he thought somebody else was going to do it. In clean-cut form, his duties and relations to other men of the organization are laid down once and for all, and responsibility rests on the right man. Failure so to specify responsibilities inevitably means confusion all down the line."

"Clinton E. Woods... has become well known to electrical workers in the West during the last few years. Mr. Woods was born in Massachusetts in 1863, and at an early age was left an orphan and obliged to earn a living and acquire an education as best he might. In 1886 he drifted into steam and electrical work, being first identified with the local central station at Pittsfield, Mass; afterward at Peekskill and Newburg, N. Y. From this he worked at general construction and engineering until 1889, entered the employment of the National Electric Manufacturing Company, Eau Claire, Wis., as its inspecting engineer, and served in that capacity until 1892, when he was made electrician-in-chief. This position he held until the spring of 1893, when he entered the Standard Electric company of Chicago. His work has won for him reputation and prominence in the electrical field. He has designed for this company a complete line of arc, alternating and constant potential dynamos, motors, etc., such accessories as transformers and instruments for perfecting the system, during the last twelve months. Mr. Woods is not only an electrician but a manufacturer, having advanced many improved methods of manufacturing dynamo-electric machinery, which have greatly enhanced the value of his work from an artistic and mechanical standpoint. From the knowledge and ability Mr. Woods has displayed and opportunity for results which are in his possession, much is looked for from his future work. track."

"Clinton Edgar Woods was the son of a coach builder and a graduate of the Massachusetts Institute of Technology in mechanical and electrical engineering. He was one of the few American electric car pioneers to focus attention on the utilitarian application of electric traction right from its beginning in 1897. Woods set up the American Electric Vehicle Company with the support of none other than , the "utility car" of Chicago, and a number of "Standard Oil magnates"."

"C.E. Woods would perhaps be described by Law as a "heterogeneous engineer" who marshaled physical as well as social resources to help build an automotive industry."

"All human activity is a matter of motion and decision."

"We're all like tools. Not only like tools, we are tools, tools of Time. We're worn into grooves by Time — by our habits. In the end, these grooves are going to show whether we've been second-rate or champions, each in his way, in dispatching the affairs of every day. By choosing our habits, we determine the grooves into which Time will wear us; and these are grooves that enrich our lives and make for ease of mind, peace, happiness — achievement."

"Time study is the art of recording, analyzing, and synthesizing the time of the elements of any operation, usually a manual operation, but it has also been extended to mental and machinery operations."

"Motion study is the science of eliminating wastefulness resulting from using unnecessary, ill-directed, and inefficient motions. The aim of motion study is to find and perpetuate the scheme of least waste methods of labor."

"A better name for scientific management is "measured functional management." It is not sufficient to call it " labor saving 'management " for it deals with more than labor and labor saving. It is a way for obtaining methods of least waste. It not only saves useless labor, but it improves labor conditions; improves quality of product; prolongs the period of the worker's productivity; conserves, teaches and transfers skill and experience. The committee have caused the Society and the world to recognize at last the importance of the feature of the transference of skill, but they apparently still lack appreciation of the even greater feature of the recording and transference of experience of Mr. Taylor's measured functional management and of micro-motion study. Mr. Taylor's system is best described in his writings entitled A Piece Kate System, Shop Management, and On the Art of Cutting Metals, published by the Society, and Principles of Scientific Management, published by Harper & Brothers."

"It... has long been realized by those engaged in the work of installing scientific management, that transference of skill is one of the most important features(*)... The importance of transference of skill was realized many years ago. Studies in division of work and in elapsed time of doing work were made by Adam Smith, Charles Babbage, M. Coulomb and others, but accurate measurement in management became possible when Mr. Taylor devised his method of observing and recording elementary unit net times for performance with measured allowance for fatigue."

"Micro-motion study, presented for the first time at this meeting, is a new and accurate method of recording and transmitting skill. Based upon the principles of motion study and time study, it makes possible simultaneous measurement of both time and path of motions. It produces an entirely different result from any of the methods attempted by its predecessors, in that it shows a measured difference in the time of day on each and every cinematograph picture, even when the pictures are taken at a rate much faster than ever considered in work where positive films are printed and projected upon the screen."

"There is no waste of any kind in the world that equals the waste from needless, ill-directed and ineffective motions, and their resulting unnecessary fatigue."

"There is no industrial opportunity that offers a richer return than the elimination of needless motions, and the transformation of ill-directed and ineffective motions into efficient activity."

"This country has been so rich in human and material resources that it is only recently that the importance of waste elimination has come to be realized. The material element received the first consideration, and in the comparatively few years during which the subject has received attention, an enormous amount has been done to conserve natural resources, to economize in the use."

"No definite and permanent advance is made in any kind of work, whether with materials or men, until use is made of measurement."

"[A]dvancement of the human factor in industry... varies so much that unless we use measurement and abide by the results, there is no possibility of repeating the process accurately and efficiently at will, or of predicting and controlling the future conditions that assure that advancement."

"The first step in any great movement is to... arouse interest in the subject, to discuss the great problems involved, to outline the possible solutions, and to assign the various problems to those best fitted to undertake and handle them. The next step is to realize that all this discussion, valuable as it is, can grow into such action as it deserves, only if measurement is insisted upon from the very beginning of making the investigations outlined, if the records of measurement are in such form that they can be used by those who did not make them, that skill and experience may thus be transferred, and if the results of the measurements are incorporated into actual and universal practice as soon as they are properly synthesized into practical methods of least waste. The world has come to realize the truth of this as applied to material things. The day of standardization of materials and of machines is far advanced, and is daily progressing; but such has been rarely the case with measurement as applied to the human element."

"Motion Study is a means to permanent and practical waste elimination, — hence a prerequisite to efficient preparedness that shall be adequate, constructive and cumulative."

"There is some confusion today as to the meaning of scientific management. This concerns itself with the nature of such management itself, with the scope or field to which such management applies, and with the aims that it desires to attain. Scientific management is simply management that is based upon actual measurement. Its skilful application is an art that must be acquired, but its fundamental principles have the exactness of scientific laws which are open to study by everyone. We have here nothing hidden or occult or secret, like the working practices of an old-time craft; we have here a science that is the result of accurately recorded, exact investigation."

"The greatest misunderstandings occur as to the aims of scientific management. Its fundamental aim is the elimination of waste, the attainment of worth-while desired results with the least necessary amount of time and effort. Scientific management may, and often does, result in expansion, but its primary aim is conservation and savings, making an adequate use of every ounce of energy of any type that is expended."

"The Process Chart is a device for visualizing a process as a means of improving it. Every detail of a process is more or less affected by every other detail; therefore the entire process must be presented in such form that it can be visualized all at once before any changes are made in any of its subdivisions. In any subdivision of the process under examination, any changes made without due consideration of all the decisions and all the motions that precede and follow that subdivision will often be found unsuited to the ultimate plan of operation."

"The aim of the process chart is to present information regarding existing and proposed processes in such simple form that such information can become available to and usable by the greatest possible number of people in an organization before any changes whatever are actually made, so that the special knowledge and suggestions of those in positions of minor importance can be fully utilized."

"Process-chart notes and information should be collected and set down in sketch form by a highly intelligent man, preferably with an engineering training and experience, but who need not necessarily have been previously familiar with the actual details of the processes. In fact, the unbiased eye of an intelligent and experienced process-chart maker usually brings better results than does the study of a less keen man with more special information regarding present practices of the processes. The mere act of investigating sufficiently to make the notes in good enough condition for the draftsman to copy invariably results in many ideas and suggestions for improvement, and all of these suggestions, good and bad, should be retained and filed together with the description of the process chart. These suggestions and proposed improvements must be later explained to others, such as boards of directors, managers and foremen, and for best results also to certain workmen and clerks who have special craft or process knowledge. To overcome the obstacles due to habit, worship of tradition and prejudice, the more intelligence shown by the process-chart recorder, the sooner hearty cooperation of all concerned will be secured. Anyone can make this form of process chart with no previous experience in making such charts, but the more experience one has in making them, the more certain standard combinations of operations, inspection and transporting can be transferred bodily to advantage to the charts of proposed processes."

"Blessed is the man who makes two blades of grass grow where only one grew before. More blessed is he who multiplies the harvests of toil not merely two-fold, but three-fold or more-fold, for he virtually lengthens life when be adds to its fruitage. Such a man is Frank B. Gilbreth who tells in this book just how he wrought this wonder. For years he has closely watched workers at tasks of all kinds ; he has discovered how much they lose by moving unprofitably hither and thither, by neglecting to take the shortest and easiest paths. In the ancient trade of bricklaying he has increased the output almost four-fold by doing only what must be done, and using a few simple devices of his own invention."

"The things which concerned him more than anything else were the what and the why--the what because he felt it was necessary to know absolutely what you were questioning and what you were doing or what concerned you, and then the why, the depth type of thinking which showed you the reason for doing the thing and would perhaps indicate clearly whether you should maintain what was being done or should change what was being done."

"Management practitioners today largely ignore Frank and Lillian Gilbreth, possibly because the principles of motion study they pioneered are now very unfashionable. Motion study entailed the detailed examination of the movements individual workers made in the process of carrying out their work. It was, however, just one of the concepts the Gilbreths developed. Through Frank's concerns that the efficiency of employees should be balanced by an economy of effort and a minimisation of stress, and Lillian's interest in the psychology of management, their work laid the foundations for the development of the modern concepts of job simplification, meaningful work standards and incentive wage plans."

"A.D. Hall's (1962) classic account of the methodology was based on his experience with the Bell Telephone Laboratories. Hall sees systems as existing in hierarchies. In systems engineering, plans to achieve a general objective must similarly be arranged in a hierarchy, with the systems engineer ensuring the internal consistency and integration of the plans, The methodology itself ensures the optimization of the system of concern with respect to its objectives. This requires a number of steps, the most important being problem definition, choosing objectives, systems synthesis, systems analysis, systems selection, system development, and current engineering. With Hall, the system of concern is usually a physical entity."

"In the modern systems approach, the concept "system" is used not to refer to things in the world but to a particular way of organising our thoughts about the world."

"We consider the notion of "system" as an organising concept, before going on to look in detail at various systemic metaphors that may be used as a basis for structuring thinking about organisations and problem situations."

"Different methodologies express different rationalities stemming from alternative theoretical positions which they reflect. These alternative positions must be respected, and methodologies and their appropriate theoretical underpinnings developed in partnership."

"The classification of a system as complex or simple will depend upon the observer of the system and upon the purpose he has for considering the system."

"The problem solver needs to stand back and examine problem contexts in the light of different “Ws” (weltanschauungen). Perhaps he can then decide which “W” seems to capture the essence of the particular problem context he is faced with. This whole process needs formalizing if it is to be carried out successfully. The problem solver needs to be aware of different paradigms in the social sciences, and he must be prepared to view the problem context through each of these paradigms."

"Operational research OR is regarded by many as being in crisis. If OR is taken to be ‘classical OR’, this is indisputable … If, however, the definition of OR is widened to embrace other systems-based methodologies for problem solving, then a diversity of approaches may herald not crisis, but increased competence and effectiveness in a variety of different problem contexts."

"The traditional, scientific method for studying such systems is known as reductionism. Reductionism sees the parts as paramount and seeks to identify the parts, understand the parts and work up from an understanding of the parts to an understanding of the whole. The problem with this is that the whole often seems to take on a form that is not recognizable from the parts. The whole emerges from the interactions between the parts, which affect each other through complex networks of relationships. Once it has emerged, it is the whole that seems to give meaning to the parts and their interactions. A living organism gives meaning to the heart, liver and lungs; a family to the roles of husband, wife, son, daughter"

"There exists an alternative to reductionism for studying systems. This alternative is known as holism. Holism considers systems to be more than the sum of their parts. It is of course interested in the parts and particularly the networks of relationships between the parts, but primarily in terms of how they give rise to and sustain in existence the new entity that is the whole whether it be a river system, an automobile, a philosophical system or a quality system."

"The classical Greek philosophers, Aristotle and Plato, established some important systems ideas. Aristotle reasoned that the parts of the body only make sense in terms of the way they function to support the whole organism and used this biological analogy to consider how individuals need to be related to the State. Plato was interested in how the notion of control, or the art of steersmanship (kybernetes), could be applied both to vessels and the State. Ships had to be steered safely toward harbour by a helmsman. A similar role needed to be followed in societies if they were to prosper."

"Assessing the value of information technology (IT) has never been easy. Delayed benefits, unintended uses, business changes, and hidden support costs inhibit meaningful evaluation of individual IT investments. This was true when most investments were focused on the support of a single business process or functional area. It is even more true as business executives ponder implementations of shared technologies like data warehouses and networks, replacement of large legacy systems, and reskilling of the IT staff. Although firms introduce some systems to reduce costs and can evaluate them in terms of their success in doing so, they want many IT initiatives to support a firm's objectives. The value of these initiatives rest in their contributions to a firm's competitiveness, which is often non quantifiable and uncertain."

"To date, most research on information technology (IT) outsourcing concludes that firms decide to outsource IT services because they believe that outside vendors possess production cost advantages. Yet it is not clear whether vendors can provide production"

"IT architecture is often assumed to follow business strategy, to align IT with the business's strategic objectives. Increasingly, though, many business strategies depend on specific underlying IT capabilities. To develop a synergy between business strategy and IT architecture, firms must develop organizational competencies in IT architecture. My research has identified four IT architectural stages, each with its own requisite competencies. The "application silo architecture stage" consists of IT architectures of individual applications. The "standardized technology architecture stage" has an enterprise-wide IT architecture that provides efficiencies through technology standardization. The "rationalized data architecture stage" extends the enterprise-wide IT standards to data and processes. And the "modular architecture stage" builds onto enterprise-wide global standards with loosely coupled IT components to preserve the global standards while enabling local differences. Each stage demands different organizational competencies to implement the architecture and prepare the firm to move to the next stage."

"Organizations that operate under an IT monarchy place key business unit and technical decisions in the hands of the CIO. Under the duopoly method, decision-making for IT budgets, applications and technologies is shared among the CIO and business unit leaders."

"Many companies are not driving significant business value from the digitized platforms they build as part of their enterprise architecture initiatives. Our 2011 survey of 146 senior IT leaders found that the companies that benefit from their platforms' efforts are consistently relying on four architecture-related practices that encourage organizational learning about the value of enterprise architecture: 1) making IT costs transparent, 2) debating architectural exceptions, 3) performing post-implementation reviews, and 4) making IT investments with enterprise architecture in mind."

"This paper reports on a comparative case study of 13 industrial firms that implemented an (ERP) system. It compares firms based on their dialectic leaming process. All firms had to overcome knowledge barriers of two types: those associated with the configuration of the ERP package, and those associated with the assimilation of new work processes. We found that both strong core teams and carefully managed consulting relationships addressed configuration knowledge barriers. User training that included both technical and business processes, along with a phased implementation approach, helped firms to overcome assimilation knowledge barriers. However, all firms in this study experienced ongoing concerns with assimilation knowledge barriers, and we observed two different approaches to address them. In a piecemeal approach, firms concentrated on the technology first and deferred consideration of process changes. In a concerted approach, both the technology and process changes were undertaken together. Although most respondents clearly stated a preference for either piecemeal or concerted change, all firms engaged in practices that reflected a combination of these approaches."

"(ERP) software packages have become popular means for both large and medium-sized organizations to overcome the limitations of fragmented and incompatible legacy systems. ERP systems are designed as integrated sets of software modules linked to a common database, handling basic corporate functions such as finance, human resources, materials management, sales, and distribution. Most ERP packages also provide multiple language and currency capabilities, enabling integration of global operations. The popularity of ERP is documented in a study that showed that nearly 19 percent of organizations across all industry sectors have installed ERP software, with the manufacturing sector leading the trend. The study also showed that ERP's popularity continues to rise, with 34 percent of the surveyed organizations investigating, piloting, or implementing ERP packages. Davenport characterized ERP as "the most important development in the corporate use of information technology in the 1990s""

"Seventy percent of all IT projects fail—and scores of books have attempted to help firms measure and manage IT systems and processes better in order to turn this figure around."

"Senior executive teams create mechanisms to govern the management and use of each of these assets both independently and together.... Governance of the key assets occurs via a large number of organizational mechanisms, for example structures, processes, procedures and audits."

"In 1995 we started our study of enterprise architecture – we just did not know it. At the time we thought we were studying information technology infrastructure transformations. In 1998 we thought we were studying enterprise system implementations. In 2000 it was e-business. But sometime in 2000, we recognized that each of these studies examined basically the same thing: Enterprise Architecture."

"In a business world that is changing faster than ever before, the top performing firms create a stable base – they digitize their core processes and embed those processes into a foundation for execution. This stable foundation makes a company both more efficient and more agile than its competitors. With global supply chains, pressure for ever faster time to market, more complex regulation, and huge shifts in customer demographics and desires, companies cannot predict the future. But they can decide what makes them great. And then they can create a low cost, high quality core of stability and constancy in a turbulent world. With a strong digitized core great companies slide smoothly into the next opportunity while their competitors stumble."

"The insights in the book come from a series of research projects exploring enterprise architecture in more than 200 companies where our focus was on IT government from 1995 to 2005."

"Enterprise architecture is the organizing logic for business processes and IT infrastructure reflecting the integration and standardization requirements of a company's operation model... The key to effective enterprise architecture is to identify the processes, data, technology, and customer interfaces that take the operating model from vision to reality."

"The new rules of competition require managers to start by asking what's important to their customers and where the company can make new money. Then, they need to reinvent their businesses to create the next profit zones."

"Adrian Slywotzky believes the Internet will overturn the inefficient push model of supplier-customer interaction. He predicts that in all sorts of markets, customers will use choiceboards—interactive, on-line systems that let people design their own products by choosing from a menu of attributes, prices, and delivery options. And he explores how the shifting role of the customer—from passive recipient to active designer—will change the way companies compete."

"The fact is that middle managers have an effective veto power over whatever risk management system is created. If they don't buy it, it won't happen."

"Twenty years ago, the business world was taken by surprise when the work pyramid was up-ended. Suddenly customers were on top and a flattened corporate hierarchy made front-line workers responsible for understanding and satisfying the customer’s every whim. Today, we’re poised for the natural sequel to that revolution. It’s time to focus on keeping workers satisfied — or at least engaged in their work."

"Doctors, chess grand masters and football quarterbacks share a trait: the ability to recognize patterns and learn from them. A doctor can connect symptoms to causes and use that to make a diagnosis and offer a prescription. Top quarterbacks and grand masters can sense the shape of unfolding play, and profit from that knowledge. Great managers are also skilled at pattern recognition. Every industry is reshaped by patterns of strategic change that can dramatically shift profit and power."

"Today, as change speeds up, it’s even more important to anticipate how your company’s strategic landscape is changing. It won’t help you to predict the future with 100% accuracy. But it will prepare you to exploit change."

"The number one problem in business today is profitability. Where will you be allowed to make a profit in your industry? Where is the profit zone today? Where will it be tomorrow?"

"The profit zone is the area of your economic neighborhood where you are allowed to earn a profit. To reach and operate in the profit zone is the goal of every company."

"Market share was the grand old metric, the guiding light, the compass of the product-centric age. Companies focused on improving their product and building economies of scale. This product-centric thinking led to the battle cry: "Get more market share and the profit will follow.""

"Be in high-growth markets." In the old economic order, in the age of market share, volume growth was a guarantor of success. Growth was what we were taught to pursue. It created higher profits for all, including market share laggards, companies with poor business designs, and companies that were poorly managed. A rising tide raised all boats. One manager articulated the classic view: "There are no management problems that volume growth can't solve. Even if we manage poorly, rising revenue helps cover the mistakes we made."

"Leadership is that combination of qualities by the possession of which one is able to get something done by others, chiefly because through his influence they become willing to do it."

"[Committees are] a tool of the democratic, knowledge-pooling, and desire-harmonizing process which cannot be otherwise forwarded. And when committees fail, as they sometimes do, it is because the limits to their role are not clearly understood or because they have not benefited by proper leadership from the chairman."

"Administration is the process and agency which is responsible for the determination of the aims for which an organization and its management are to strive, which establishes the broad policies under which they are to operate and which gives general oversight to the continuing effectiveness of the total operation in reaching the objectives sought."

"More and more clearly every day, out of biology, anthropology, sociology, history, economic analysis, psychological insight, plain human decency and common sense, the necessary mandate of survival that we shall love all our neighbors as we do ourselves, is being confirmed and reaffirmed."

"Sooner or later a democracy which is to survive has to be able to rely upon that enlargement of vision and purpose of those individuals who compose it, which means that their craving for devotion and self-sacrifice is satisfied in a democratic society on a nobler level, and with a finer recognition of the value of individual personality than is true of a national purpose of a totalitarian state under a dictator."

"Leadership is the activity of influencing people to cooperate toward some goal which they come to find desirable."

"Almost every study of the secret of the successful leader has agreed that the possession of a generous and unusual endowment of physical and nervous energy is essential to personal ascendancy. Those who rise in any marked way above the mass of men have conspicuously more drive, more sheer endurance, greater vigor of body and mind than the average person,"

"The leader is one who knows with greater than average strength of intuition what he wants to get done and where he wants to go. 'The world stands aside to let pass the man who knows whither he is going.' This means that he possesses clarity and precision as to the objectives, purposes or aims that he desires for himself and his group, and that he holds these deeply enough and permanently enough to see them well on the way to being realized. Purposefulness to be effective requires that the aims are: (1) definite; (2) readily communicable to others; (3) potentially attractive to others; and (4) vigor¬ously, persistently and enthusiastically sustained by the leader."

"Many leaders are in the first instance executives whose primary duty is to direct some enterprise or one of its departments or sub-units... It remains true that in every leadership situation the leader has to possess enough grasp of the ways and means, the technology and processes by means of which the purposes are being realized, to give wise guidance to the directive effort as a whole... In general the principle underlying success at the coordinative task has been found to be that every special and different point of view in the group affected by the major executive decisions should be fully represented by its own exponents when decisions are being reached. These special points of view are inevitably created by the differing outlooks which different jobs or functions inevitably foster. The more the leader can know at first hand about the technique employed by all his group, the wiser will be his grasp of all his problems... But more and more the key to leadership lies in other directions. It lies in ability to make a team out of a group of individual workers, to foster a team spirit, to bring their efforts together into a unified total result, to make them see the significance of the particular task each one is doing in relation to the whole."

"Changing things is central to leadership. Changing them before anyone else is creative leadership"

"Managers are people who do things right and leaders are people who do the right thing. Both roles are crucial, and they differ profoundly. I often observe people in top positions doing the wrong things well."

"The manager accepts the status quo; the leader challenges it."

"Management is doing things right; leadership is doing the right things."

"We have more information now than we can use, and less knowledge and understanding than we need. Indeed, we seem to collect information because we have the ability to do so, but we are so busy collecting it that we haven’t devised a means of using it. The true measure of any society is not what it knows but what it does with what it knows."

"Leadership is the capacity to translate vision into reality."

"The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment."

"Good leaders make people feel that they're at the very heart of things, not at the periphery. Everyone feels that he or she makes a difference to the success of the organization. When that happens, people feel centered and that gives their work meaning."

"The most dangerous leadership myth is that leaders are born — that there is a genetic factor to leadership. This myth asserts that people simply either have certain charismatic qualities or not. That's nonsense; in fact, the opposite is true. Leaders are made rather than born. And the way we become leaders is by learning about leadership through life and job experiences, not with university degrees."

"Failing organizations are usually over-managed and under-led."

"A new leader has to be able to change an organization that is dreamless, soulless and visionless … someone's got to make a wake up call."

"Leaders encourage reflective backtalk. Norbert Wiener told me, “I never know what I say until I hear the response.” Leaders know the importance of having someone in their lives who will unfailingly and fearlessly tell them the truth."

"The schedule is a moral contract or agreement with the men as to a particular machine operation, rate of wages and time. Any change in men [etc.] calls for a new schedule."

"The individual effort method of increasing the reward of the wage-earner includes all that is best in other methods, and attempts to exclude all that is objectionable. Its good points are summed up as follows:"

"Staff standards are not theological abstractions, but scientific approximations, and are evolved for the use of the line, the sole justification of the standards being that they will make line work more efficient. Staff standards being for the benefit of the line and often entrusted to line officials, must be put in the form of permanent instructions so that all may understand what is being aimed at, and deviations by the line be noted and reprimanded."

"We have not put our trust in Kings; let us not put it in natural resources, but grasp the truth that exhaustless wealth lies in the latent and as yet undeveloped capacities of individuals, of corporations, of States."

"Twelve Principles of Efficiency"

"It is psychology, not soil or climate, that enables a man to raise five times as many potatoes per acre as the average in his own state."

"The type for the great newspaper is set up by linotype operators. Apprenticeship is rigorously limited. Some operators can never get beyond the 2500-em class, others with no more personal effort can set 5000 ems. Do the employers test out applicants for apprenticeship so as to be sure to secure boys who will develop into the 5000-em class? They do not: they select applicants for any near reason except the fundamental important one of innate fitness."

"In selecting human assistants such superficialities as education, as physical strength, even antecedent morality, are not as important as the inner attitudes, proclivities, character, which after all determine the man or woman."

"The competent specialist who has supplemented natural gifts and good judgment by analysis and synthesis can perceive attitudes and proclivities even in the very young, much more readily in those semi-matured, and can with almost infallible certainty point out, not only what work can be undertaken with fair hope of success, but also what slight modification or addition and diminution will more than double the personal power."

"The estimate that at least $1,000,000 a day could be saved by the pursuit of methods of scientific management was first made by Mr. Harrington Emerson. It is submitted that, with aggregate operating expenses by the railroads in 1908 of $1,669,938,717, of which $1,035,437,528 was for labor, this estimate appears moderate."

"With the triumph of scientific management, unions would have nothing left to do, and they would have been cleansed of their most evil feature: the restriction of output. To underscore this idea, Taylor fashioned the myth that 'there has never been a strike of men working under scientific management', trying to give it credibility by constant repetition. In similar fashion he incessantly linked his proposals to shorter hours of work, without bothering to produce evidence of "Taylorized" firms that reduced working hours, and he revised his famous tale of Schmidt carrying pig iron at Bethlehem Steel at least three times, obscuring some aspects of his study and stressing others, so that each successive version made Schmidt's exertions more impressive, more voluntary and more rewarding to him than the last. Unlike Harrington Emerson, Taylor was not a charlatan, but his ideological message required the suppression of all evidence of worker's dissent, of coercion, or of any human motives or aspirations other than those his vision of progress could encompass."

"By the time of Frederick Winslow Taylor's death, the gospel of industrial efficiency preached by American scientific managers was commonplace on both sides of the Atlantic. In the following years of world war, reconstruction, and adjustment, scientific management attracted a new generation of advocates and practitioners, many of whom would have perplexed and shocked Taylor and his immediate circle. Of the entrepreneurs of scientific management who succeeded Frank Gilbreth, Harrington Emerson, Richard Feiss, and other pioneers, none was more successful than (1886-1944). Unlike Tay­lor and his colleagues, Bedaux was and still is a mysterious figure. Secretive to a fault, he avoided professional contacts, refused to write for popular or technical journals, and spurned publicity. Yet he was a master salesman whose operations were global in scope and impact. Only in recent years, with the discovery of the papers of the British Bedaux Company, is it possible to gauge the impact of Bedaux and his extraordinary career."

"Learning can be defined as occurring under two conditions. First, learning occurs when an organisation achieves what it intended; that is, there is a match between its design for action and the actual outcome. Second, learning occurs when a mismatch between intention and outcome is identified and corrected; that is, a mismatch is turned into a match.... Single-loop learning occurs when matches are created, or when mismatches are corrected by changing actions. Double-loop learning occurs when mismatches are corrected by first examining and altering the governing variables and then the actions."

"Managers who are skilled communicators may also be good at covering up real problems."

"Success in the marketplace increasingly depends on learning, yet most people don't know how to learn."

"Most people define learning too narrowly as mere “problem-solving”, so they focus on identifying and correcting errors in the external environment. Solving problems is important. But if learning is to persist, managers and employees must also look inward. The need to reflect critically on their own behaviour, identify the ways they often inadvertently contribute to the organisation’s problems, and then change how they act."

"There are two dominant mindsets in the world of business or any kind of organization.One is a productive mindset, and it says it's a good idea to seek valid knowledge, it's a good idea to craft your conversations so you make explicit what you are thinking and trying to examine. You craft them in such a way that you can test, as clearly as you can, the validity of your claims. Truth is a good idea. All the managerial functions—accounting, all of them—have a fundamental notion that the productive mindset is what ought to be used to manage human beings.Then there's another mindset I call the defensive mindset. The idea is that even if you are seeking valid knowledge, you are seeking only that kind of valid knowledge that protects yourself or your organization or your department—it is defensive. From a defensive mindset point of view, truth is a good idea when it isn't threatening or upsetting. If it is, massage it, spin it. But if you massage it and spin it, you're violating the espoused theory of good management. When you spin, you have to cover up the fact that you're spinning. And in order for a cover up to work, it too has to be covered up."

"Human beings hold two types of theories of action. There is the one that they espouse, which is usually expressed in the form of stated beliefs and values. Then there is the theory that they actually use; this can only be inferred from observing their actions, that is, their actual behavior."

"Once employees base their motivation on extrinsic factors they are much less likely to take chances, question established policies and practices, or explore the territory that lies beyond the company vision as defined by management."

"But today's dilemmas are even harder to deal with: autonomy vs. control; innovation vs. no surprises; participation and ownership vs. meeting deadlines; and job security vs. excess employees through job design"

"Whenever undiscussables exist, their existence is also undiscussable. Moreover, both are covered up, because rules that make important issues undiscussables violate espoused norms... It is very difficult to manage [organizational defense routines]. They continue to exist and proliferate because they are relegated to the realm of “underground management” and all sides tacitly agree to this state of affairs. As a result, organizational defense routines often are very powerful"

"Argyris is best known for his theory, in collaboration with the late philosophy scholar Donald Schön, on the two types of learning — single-loop and double-loop. This theory refers to the way people respond to changes in their environment. Single-loop learning is the repeated attempt at the same problem by an organization or individual, without varying the method or questioning the goal. Double-loop learning goes beyond that, modifying the goal in light of the experience.Argyris’s work raises profound questions about how organizations run, and casts doubt on what is widely accepted as good practice. But he offers management a profound exploration of the fundamental principles of organizational behavior and human interaction in the workplace."

"Strategy can be defined as the determination of the long-term goals and objectives of an enterprise, and the adoption of courses of action and the allocation of resources necessary for carrying out these goals"

"The market remained the generator of demand for goods and services, but modern business enterprise took over the functions of coordinating flows of goods and services through existing processes of production and distribution, and of allocating funds and personnel for future production and distribution. As modern business enterprise acquired functions hitherto carried out by the market, it became the most powerful institution in the American economy and its managers the most influential group of economic decision makers. The rise of modern business enterprise in the United States, therefore, brought with it managerial capitalism."

"Multi-unit business enterprise replaced small traditional enterprise when administrative coordination permitted greater productivity, lower costs, and higher profits than coordination by market mechanisms."

"Complete accountability is established and enforced throughout; and if there there is any error committed, it will be discovered on a comparison with the books and can be traced to its source."

"Modern factory management (but not it must be stressed the management of large modern multi-unit enterprises) had the genesis in the United States in the Springfield Armory."

"The systems and controls developed at the armory were as critical to the development of what became known as the 'American System of Manufacturing' as the new metalworking machinery and machine tools."

"The swift victory of the railway over the waterway resulted from organizational as well as technological innovation. Technology made possible fast, all-weather transportation; but safe, regular, reliable movement of goods and passengers, as well as the continuing maintenance and repair of locomotives, rolling stock, and track, roadbed, stations, roundhouses and other equipment, required the creation of a sizable administrative organization. It meant the employment of an administrative command of middle and top executives to monitor, evaluate, and coordinate the work of managers responsible for the day-to-day operations. It meant, too, the formulation of brand new types of internal administrative procedures and accounting and statistical controls. Hence, the operational requirements of the railroads demanded the creation of the first administrative hierarchies in American business."

"Men's mind and abilities grow and expand with use of responsibilities."

"In the 1850s and 18605 the modern commodity dealer who purchased directly from the farmer and sold directly to the processor took over the marketing and distribution of agricultural products. In the same years the full-line, full-service wholesaler began to market most standardized consumer goods. Then in the 1 870s and 188os the modern mass retailer — the department store, the mail-order house, and the chain store — started to make inroads on the wholesaler's markets."

"To maintain and continue a high volume of flow demanded organizational innovation. It would be achieved only by creating an administrative hierarchy operated by many full-time salaried managers."

"In most British enterprises senior executives worked closely in the same office building, located in or near the largest plant, having almost daily personal contact with, and thus directly supervising middle and often lower-level managers. Such enterprises had no need for the detailed organization charts and manuals that had come into common use in large American and German firms before 1914. In these British companies, selection to senior positions and to the board depended as much on personal ties as on managerial competence. The founders and their heirs continued to have a significant influence on top-level decision-making even after their holdings in the enterprise were diminished."

"Effective coordination of throughput required the placing of vigorous management controls over these despots."

"The minutest details of cost of materials and labor in every department appeared from day to day and week to week in the accounts; and soon every man about the place was made to realize it. The men felt and often remarked that the eye of the company were on them through the books."

"Increase on productivity and decrease in unit costs (often identified with economies of scale) resulted far more from the increases in the volume and velocity of throughput then from a growth in the size of the factory and plant."

"There are very few scholars who can legitimately say that they founded a discipline. Al Chandler is one of them. Prior to Chandler, business history tended to be the study of individual businesses or entrepreneurs with little theoretical importance. To paraphrase one criticism of history as "damn fact after another," business history tended to be "damn business after another." Histories came out in conjunction with anniversaries of companies: They were highly celebratory, sometimes informative, but not very useful to practitioners. Studies of entrepreneurs were just hagiographies.Chandler developed for business history a coherent theoretical framework built around his "3-pronged investment" in manufacturing, marketing, and management, and the notion of "organizational capabilities." The firm was something much more than a network of individual contracts or the vision of its entrepreneur. The people inside firms learned, developed effective routines, and innovated. While we have sophisticated theories of competition in economics, the cooperative teamwork inside firms is just as important. Chandler stressed the importance of organizational capabilities, technological innovation through R&D, problem solving, knowledge, and continuous learning—investment in human capital and technology that only firms could generate. Chandler placed the issue of managerial coordination squarely in the center of understanding economic life."

"It is what we think we know that keeps us from learning."

"Executive processes are specialized functions in what we know as organizations. If these functions are to be adequately described, the description must be in terms of the nature of the organization itself."

"More than the topography and cartography of organization would be necessary to understand the executive functions; a knowledge of the kinds and qualities of the forces at work and the manner of their operation would also be needed."

"Formally this work is divided into four parts, but in a sense it consists of two short treatises. One is an exposition of a theory of cooperation and organization and constitutes the first half of the book. The second is a study of the functions and of the methods of operation of executives in formal organizations."

"Although the physical factors are distinguished from the biological they are not separable in specific organisms... Human organisms do not function except in conjunction with other human organisms."

"The individual is a single, unique, independent, isolated, whole thing, embodying innumerable forces and materials past and present which are physical, biological, and social factors."

"When a specific desired end is attained we shall say that the action is "effective." When the unsought consequences of the action are more important than the attainment of the desired end and are dissatisfactory, effective action, we shall say, is "inefficient." When the unsought consequences are unimportant or trivial, the action is "efficient."

"At a crisis in my youth he taught me the wisdom of choice: To try and fail is at least to learn; to fail to try is to suffer the inestimable loss of what might have been."

"Effectiveness relates to the accomplishment of the cooperative purpose which is social and non-personal in character. Efficiency relates to the satisfaction of individual motives and is personal in character."

"An organization comes into being when (1) there are persons able to communicate with each other (2) who are willing to contribute action (3) to accomplish a common purpose. The elements of an organization are therefore (1) communication; (2) willingness to serve; and (3) common purpose. These elements are necessary and sufficient conditions initially, and they are found in all such organizations. The third element, purpose, is implicit in the definition. Willingness to serve, and communication, and the interdependence of the three elements in general, and their mutual dependence in specifie cooperative systems, are matters of experience and observation."

"It is important at this point to make clear that every coöperative purpose has in the view of each coöperating person two aspects which we will call (a) the coöperative and (b) the subjective aspect, respectively."

"The inculcation of belief in the real existence of a common purpose is an essential executive function."

"An organization is a subordinate system of a specific larger system, the cooperative system, whose components are physical, biological, and personal systems. The relations with other organizations... are outside this specific cooperative system. Other organizations are a part of the social environment of the organization. It is for this reason I have used the phrase "complex of organizations" rather than "system." Usually the most significant relationships of a unit organization are those with the specific cooperative system of which it is a part. It is this system which primarily and on the whole in most instances determines the chief conditions of the organization's existence."

"Planning is one of the many catchwords whose present popularity is roughly proportionate to the obscurity of its definition."

"An organization can secure the efforts necessary to its existence, then, either by the objective inducements it provides or by changing states of mind. It seems to me improbable that any organization can exist as a practical matter which does not employ both methods in combination. In some organizations the emphasis is on the offering of objective incentives — this is true of most industrial organizations. In others the preponderance is on the state of mind — this is true of most patriotic and religious organizations."

"The making of decisions, as everyone knows from personal experience, is a burdensome task. Offsetting the exhilaration that may result from correct and successful decision and the relief that follows the termination of a struggle to determine issues is the depression that comes from failure, or error of decision, and the frustration which ensues from uncertainty."

"The fine art of executive decision consists in not deciding questions that are not now pertinent, in not deciding prematurely, in not making decision that cannot be made effective, and in not making decisions that others should make. Not to decide questions that are not pertinent at the time is uncommon good sense, though to raise them may be uncommon perspicacity. Not to decide questions prematurely is to refuse commitment of attitude or the development of prejudice. Not to make decisions that cannot be made effective is to refrain from destroying authority. Not to make decisions that others should make is to preserve morale, to develop competence, to fix responsibility, and to preserve authority."

"Organizations endure, however, in proportion to the breadth of the morality by which they are governed. Thus the endurance of organization depends upon the quality of leadership; and that quality derives from the breadth of the morality upon which it rests."

"When a condition of honesty and sincerity is recognized to exist, errors of judgment, defects of ability, are sympathetically endured. They are expected. Employees don’t ascribe infallibility to leaders or management. What does disturb them is insincerity and the appearance of insincerity when the facts are not in their possession."

"Prestige, competitive reputation, social philosophy, social standing, philanthropic interests, combativeness, love of intrigue, dislike of friction, technical interest, Napoleonic dreams, love of accomplishing useful things, desire for regard of employees, love of publicity, fear of publicity – a long catalogue of non-economic motives actually condition the management of business, and nothing but the balance sheet keeps these non-economic motives from running wild. Yet without all these incentives, I think most business would be a lifeless failure."

"It is in the nature of a leader’s work that he should be a realist and should recognize the need for action, even when the outcome cannot be foreseen, but also that he should be idealist and in the broadest sense pursue goals some of which can only be attained in a succeeding generation of leaders. Many leaders when they reach the apex of their powers have not long to go, and they press onward by paths the ends of which they will not themselves reach. In business, in education, in government, in religion, again and again, I see men who, I am sure, are dominated by this motive, though unexpressed, and by some queer twist of our present attitudes often disavowed. Yet, ‘Old men [and old women] plant trees’... to shape the present for the future by the surplus of thought and purpose which we now can muster seems the very expression of the idealism which underlies such social coherence as we presently achieve, and without this idealism we see no worthy meaning in our lives, our institutions, or our culture."

"The executive is primarily concerned with decisions which facilitate or hinder other decisions."

"The overvaluation of the apparatus of communication and administration is opposed to leadership and the development of leaders. It opposes leadership whose function is to promote appropriate adjustment of ends and means to new environmental conditions, because it opposes change either of status in general or of established procedures and habitual routine. This overvaluation also discourages the development of leaders by retarding the progress of the abler men and by putting an excessive premium on routine qualities."

"To the late Chester I. Barnard I owe a special debt: first, for his book, Functions of the Executive, which exerted a major influence on my thinking about administration. Secondly, for the extremely careful critical review he gave the preliminary version of this book; and finally for his Foreword to the first edition."

"The Functions of the Executive remains today, as it has been since its publication, the most thought-provoking book on organization and management ever written by a practicing executive."

"Before World War II management was the concern of a tiny band of “true believers,” mostly consultants and professors. Very few practicing managers paid any attention, though Alfred P. Sloan at General Motors, at Sears, Roebuck, and Chester Barnard at the American Telephone Company—to mention some prominent Americans—were significant exceptions. But even Barnard’s colleagues at the Telephone Company showed no interest in what they considered his hobby. Few managers at that time would have even realized that they practiced management; and concern with management as a field of study, as a discipline, and as a social function was practically nonexistent."

"In 1938... a business executive with academic talents named Chester Barnard proposed the first new theory of organizations: Organizations are cooperative systems, not the products of mechanical engineering. He stressed natural groups within the organization, upward communication, authority from below rather than from above, and leaders who functioned as a cohesive force. With the spectre of labor unrest and the Great Depression upon him, Barnard's emphasis on the cooperative nature of organizations was well-timed."

"Barnard inspired some of the very best work in organization theory that followed."

"One can list on the fingers of one hand the truly influential organizational scholars working prior to 1950. They include: Max Weber, Frederick Winslow Taylor, Henri Fayol, Elton Mayo, and Chester I Barnard. Of these, the two paying most attention to the sociological aspects of organizations were Weber and Barnard."

"Chester Barnard was best known as the author of The Functions of the Executive, perhaps the 20th century’s most influential book on management and leadership. Barnard offers a systems approach to the study of organization, which contains a psychological theory of motivation and behavior, a sociological theory of cooperation and complex inter−dependencies, and an ideology based on a meritocracy."

"Mooney's unpublished paper “The Science of Industrial Organization” (1929) portrays GM's multidivisional organization's use of the line-staff concept in organizing overseas assembly plants. Here I compare General Motors with Ford Motor Company, which had first-mover advantages overseas, and examine how each company organized and managed their international operations. “Linking pins,” a social-science concept, illustrates how GM's organizational hierarchy achieved vertical coordination of effort."

"Management as an activity has always existed to make people’s desires through organized effort. Management facilitates the efforts of people in organized groups and arises when people seek to cooperate to achieve goals."

"Although the Gordon and Howell report noted the diversity of approaches to the study of management, it was Harold Koontz who delineated the differences and applied the catchy label ‘‘management theory jungle.’’"

"As open systems, organizations faced an environment that might be placid and benevolent, or turbulent and harsh. Economic, social, political, and technological changes could come rapidly or slowly, and some organizational arrangements might be better able to cope with the changing environment than others. Could it be that there was no one way to structure an organization that design was influenced by environmental factors and could vary, depending on technology?"

"The Management of Innovation (1961) [by Tom Burns and George M. Stalker is]... the first major attempt to deal with the nature of organization-environment relations and identify the types of organizational structure and managerial practices that are appropriate for different environmental condition. Introduced the mechanistic-organic polarity (never a dichotomy) to the management lexicon."

"Historian Daniel A. Wren says that operations research/ management science has "… roots in scientific management." Like Taylor and the Gilbreths, today's management scientists use research and analysis to find optimal solutions to management problems. Modern-day management scientists, of course, use much more sophisticated mathematical tools and computers. And management science's goal is not to try to find a “science of management” but “to use scientific analysis and tools to solve management problems.”"

"Wren and Bedeian 2008 is the most important management history book, and it is the one most widely used as a primary source in courses on management history."

"We are in rapid transition today to a new world which threatens to be dominated by technological advance. In that new World. (1) man will have learned so much about nature's store of energy and its release that he will have the ability to virtually destroy civilization; (2) production, communication and transportation will all be "automatic" --these operations of man's material world will have become so vast and complex that they will have to proceed with a minimum of participation by man, his muscles, brains and senses; and (3) man will conquer space."

"Well, Benny, now that we know the thing can fly, all we have to do is improve its range a bit."

"In April 1946, when I came to Hughes Aircraft to institute high-technology research and development, it was far from the place it was to become. Howard Hughes, I was informed, rarely came around. When he did show up, it was to take up one or another trivial issue. He would toss off detailed directions, for instance, on what to do next about a few old airplanes decaying out in the yard or what kind of seat covers to buy for the company-owned Chevrolets, or he would say he wanted some pictures of clouds taken from an airplane. An accountant from Hughes Tool Co. ((started by Howard's father)) had the title of general manager but was there only to sign checks. A few of Howard's flying buddies were on the payroll, using assorted fanciful titles like some in Gilbert and Sullivan's Mikado, but apparently did next to nothing. A lawyer was on hand to process contracts, but there were practically none. In addition to the Spruce Goose flying freighter, a mammoth eight-engine plywood seaplane that barely managed to fly even once, there was an experimental Navy reconnaissance plane under development (which, with Hughes at the controls, later crashed, almost killing him). The contracts for both planes had been canceled. Perhaps, I said to myself, this is one of those unforeseeable lucky opportunities. Why not use Hughes Aircraft as a base to create a new and needed defense electronics supplier?"

"My final word about editing. I was to appear on the cover of a business magazine, and the writer who came to interview me was intrigued with engineers, scientists, PhDs founding and running companies. It was somewhat more unusual back in those days than now, although it was not without ample precedents in the past. So the question he put to me right away starting the interview was, "Would you say, Dr. Ramo, that engineers make the best managers?" And I said, "Engineers make the best engineers." It may be that some engineers will have managerial talents, and be in the right place at the right time, just as may be true of lawyers or accountants or salesmen, or tax experts or whatever. Now, on the magazine then, here was this picture of me, and here was this quote: "Engineers make the best engineers." Well, someone, before the cover actually got out, knew that that was a mistake. Obviously that had been a misprint. So looking at the text, and seeing the question that was asked of me, he changed it to: "Engineers make the best managers." "I quote Dr. Ramo on engineers." All right."

"Whether what you manage is a business, hospital, university department, government agency or even a symphony orchestra or dancing school, we suspect you will find it advisable to try to prepare ahead for what might happen in the future."

"Obama can't announce that man-in-space is out of date because of the political consequences... Senators and congressmen from Florida, Texas and Alabama (centers of space-program jobs) would give him so much trouble he can't cancel it."

"In any potential collectivity, members have different interests, capabilities, preferences, and so forth. They want to accomplish different things. However, to achieve some of these diverse ends, concerted, interdependent actions are required."

"They [laboratory groups] bypass such questions as how one comes to know that a problem exists, what it does to solution adequacy to be working on several different things concurrently with problem solving, what it's like to go about solving a felt, intuited problem rather than an explicitly stated consensually validated problem which was made visible to all members at a specific point in time."

"There is no methodological process by which one can confirm the existence of an object independent of the confirmatory process involving oneself. The outside is a void, there is only the inside. A person's world, the inside or internal view is all that can be known. The rest can only be the object of speculation."

"The environment is located in the mind of the actor and is imposed by him on experience in order to make that experience more meaningful. It is seldom dawns on organizational theorists to look for environments inside of heads rather than outside of them."

"If an organization is to learn anything, then the distribution of its memory, the accuracy of that memory, and the conditions under which that memory is treated as a constraint become crucial characteristics of organizing."

"By loose coupling, the author intends to convey the image that coupled events are responsive, but that each event also preserves its own identity and some evidence of its physical or logical separateness. Thus, in the case of an educational organization, it may be the case that the counselor's office is loosely coupled to the principal's office. The image is that the principal and the counselor are somehow attached, but that each retains some identity and separateness and that their attachment may be circumscribed, infrequent, weak in its mutual affects, unimportant, and/or slow to respond."

"If all of the elements in a large system are loosely coupled to one another, then any one element can adjust to and modify a local a local unique contingency without affecting the whole system. These local adaptations can be swift, relatively economical, and substantial."

"In a loosely coupled system there is more room available for self-determination by the actors. If it is argued that a sense of efficacy is crucial for human beings. ihen a sense of efficacy might be greater in a loosely coupled system with autonomous units than it would be in a tightly coupled system where discretion is limited."

"The typical coupling mechanisms of authority of office and logic of the task do not operate in educational organizations."

"Experience is the consequence of activity. The manager literally wades into the swarm of "events" that surround him and actively tries to unrandomize them and impose some order: The manager acts physically in the environment, attends to some of it, ignores most of it, talks to other people about what they see and are doing."

"Managers construct, rearrange, single out, and demolish many “objective” features of their surroundings. When people act they unrandomize variables, insert vestiges of orderliness, and literally create their own constraints."

"Action often creates the orderly relations that originally were mere presumptions summarized in a cause map. Thus language trappings of organizations such as strategic plans are important components in the process of creating order. They hold events together long enough and tightly enough in people's heads so that they act in the belief that their actions will be influential and make sense."

"The basic idea of sensemaking is that reality is an ongoing accomplishment that emerges from efforts to create order and make retrospective sense of what occurs."

"Any approach to the study of organizations is built on specific assumptions about the nature of organizations and how they are designed and function."

"Campbell (1979) has shown how the learning theory developed in the tight research group surrounding Kenneth Spence was less powerful than the learning theory developed within the much looser group surrounding Edward Tolman. These differences are explained in part by the relative ease people in Tolman's group had evaluating and changing ideas without regard for the effect of these changes on their reputations and the relative difficulty people in Spence's group had when they tried to do the same thing."

"The process of theory construction in organizational studies is portrayed as imagination disciplined by evolutionary processes analogous to artificial selection. The quality of theory produced is predicted to vary as a function of the accuracy and detail present in the problem statement that triggers theory building, the number of and independence among the conjectures that attempt to solve the problem, and the number and diversity of selection criteria used to test the conjectures."

"An ordered set of assertions about a generic behavior or structure assumed to hold throughout a significantly broad range of specific instances."

"By their very nature the problems imposed on organizational theorists involve so many assumptions and such a mixture of accuracy and inaccuracy that virtually all conjectures and all selection criteria remain plausible and nothing gets rejected or highlighted."

"To talk about sensemaking is to talk about reality as an ongoing accomplishment that takes form when people make retrospective sense of the situations in which they find themselves and their creations. There is a strong reflexive quality to this process. People make sense of things by seeing a world on which they already imposed what they believe. In other words, people discover their own inventions. This is why sensemaking can be understood as invention and interpretations understood as discovery. These are complementary ideas. If sensemaking is viewed as an act of invention, then it is also possible to argue that the artifacts it produces include language games and texts."

"In the recipe, How can I know what I think until I see what I say, saying equates to variation, seeing equates to selection of meaning in what was said, and thinking equates to retention of an interpretation. The retained interpretation may then be imposed subsequently to interpret similar saying (retention is credited) in order to construct cumulative understanding, test past labels for their validity, or generalize older labels to newer events."

"Enactment is first and foremost about action in the world, and not about conceptual pictures of the world."

"When people perform an organized action sequence and are interrupted, they try to make sense of it. The longer they search, the higher the arousal, and the stronger the emotion. If the interruption slows the accomplishment of an organized sequence, people are likely to experience anger. If the interruption has accelerated accomplishment, then they are likely to experience pleasure. If people find that the interruption can be circumvented, they experience relief. If they find that the interruption has thwarted a higher level plan, then anger is likely to turn into rage, and if they find that the interruption has thwarted a minor behavioural sequence, they are likely to feel irritated."

"Sensemaking tends to be swift, which means we are more likely to see products than processes."

"The point we want to make here is that sensemaking is about plausibility, coherence, and reasonableness. Sensemaking is about accounts that are socially acceptable and credible... It would be nice if these accounts were also accurate. But in an equivocal, postmodern world, infused with the politics of interpretation and conflicting interests and inhabited by people with multiple shifting identities, an obsession with accuracy seems fruitless, and not of much practical help, either."

"Sensemaking is about the enlargement of small cues. It is a search for contexts within which small details fit together and make sense. It is people interacting to flesh out hunches. It is a continuous alternation between particulars and explanations with each cycle giving added form and substance to the other."

"Organizations are presumed to talk to themselves over and over to find out what they are thinking."

"That’s what this entire book is about. The basic recipe coordinates with organizing in the way outlined in Figure 5.3 (saying = enactment, selection = seeing what I say, retention = knowledge of what I said). The organism or group enacts equivocal raw talk, the talk is viewed retrospectively, sense is made of it, and this sense is then stored as knowledge in the retention process. The aim of each process has been to reduce equivocality and to get some idea of what has occurred."

"The organism or group enacts equivocal raw talk, the talk is viewed retrospectively, sense is made of it, and then this sense is stored as knowledge in the retention process. The aim of each process has been to reduce equivocality and to get some idea of what has occurred."

"Roethlisberger argues that people who are preoccupied with success ask the wrong question. They ask, “what is the secret of success” when they should be asking, “what prevents me from learning here and now?” To be overly preoccupied with the future is to be inattentive toward the present where learning and growth take place. To walk around asking, “am I a success or a failure” is a silly question in the sense that the closest you can come to answer is to say, everyone is both a success and a failure."

"Simply pushing harder within the old boundaries will not do."

"The organizational design is the responsibility of the CEO, and the designer's role is to act as midwife to aid in the rebirth of the organization."

"The purpose of spending years developing an organizational theory is the hope that it will lead to improvements in organizations."

"A number of statistical assumptions are made in the application of his (Thurstone's) attitude scale e.g. that the scale values of the statements are independent of the attitude distribution of the readers who sort the statements assumptions which as Thurstone points out, cannot always be verified. The method is more over laborious. It seems legitimate to enquire whether it actually does its work better than the simple scales which may be employed and the same breath to ask also whether it is not possible to construct equally reliable scales without making unnecessary statistical assumptions."

"Conflict is viewed as the active striving for one's own preferred outcome which, if attained, precludes the attainment by others of their own preferred outcome, thereby producing hostility."

"As people acquire more education, their expectations rise as to the amount of responsibility, authority, and income they receive."

"Research reveal that managers achieving better performance (i.e., greater productivity, higher earnings, lower costs, etc. ) differ in leadership principles and practices from those achieving poorer performance."

"[It remains to be seen whether the newer management theories, based as they are on research in industrial concerns, will be] equally applicable to other kinds of organized human activity, such as schools, voluntary organizations, unions, hospitals, governmental agencies, scientific and professional organizations, and the like."

"How best to organize the efforts of individuals to achieve desired objectives has long been one of the world's most important, difficult, and controversial problems."

"As tasks become more varied and require greater training and skill, the relationship (between job attitudes and performance) appears to change progressively from the negative to positive."

"The leadership and other processes of the organization must be such as to ensure a maximum probability that in all interactions and all interactions and all relationships with the organization each member will, in the light of his background, values, and expectations, view the experience as supportive and one which builds and maintains his sense of personal worth and importance."

"[Each person] is a member of one or more functioning workgroups that have a high degree of group loyalty, effective skills of interaction and high performance goals."

"The superior in one group is a subordinate in the next group, and so on through the organization."

"To be effective in leading his own work group, a superior must be able to influence his own boss, that is he needs to be skilled both as a superior and as a subordinate."

"All component parts of any system of management must be consistent with each of the other parts and reflect the system's basic philosophy."

"A variety of studies in widely different fields show that supervisors who are getting the best production, the best motivation, and the highest levels of worker satisfaction are employee-centred appreciably more often than production-centred."

"Interaction and decision making rely heavily on group processes."

"The preceding analysis shows that a manager who has high performance goals and excellent job organization but who relies solely on economic needs and direct pressure to motivate his men is very likely to be to be disappointed by their achievements. The noneconomic motives must be used fully, along with the economic needs, to create high performance goals and establish the level of motivational forces which yield high productivity. Since the principle of supportive relationships and group methods of supervision enable a manager to make effective use of the noneconomic motives, some valuable insights can be obtained by examining how these managerial principles appear to affect the motivations, satisfactions, and behavior of the members of an enterprise. A substantial body of research findings demonstrates that the greater the loyalty of the members of a group toward the group, the greater is the motivation among the members to achieve the goals of the group, and the greater is the probability that the group will achieve its goals."

"The management system of an organization must have compatible component parts if it is to function effectively. This conclusion has a very important implication; experiments in organizations must involve internally consistent changes. The traditional atomistic research design is not appropriate for experiments involving organizational theory or management systems. Every aspect of a management system is related to every other part and interacts with it. The results obtained by altering a single variable or procedure while keeping all others the same usually will yield quite different results from those obtained when that variable is changed along with simultaneous and compatible changes in all other aspects of the management system. The true influence of altering one aspect of the system cannot be determined by varying it and it alone... In experiments involving organizational theory and management systems, therefore, a systems approach must be used. The organic integrity of each system must be maintained while experimental variations are being made."

"Younger and smaller firms would be more likely to adopt the MDF (Multidivisional Form) than older and larger ones."

"In this book Neil Fligstein takes issue with prevailing theories of the corporation and proposes a radically new view that has important implications for American competitiveness."

"I claim that the central goal of managers in the past hundred years has been to make sure their firms survived. To promote survival they proposed various forms of control, both inside and outside the firm. Internally, control was oriented to ensuring that organizational resources were deployed so that top management could be confident that their directives were being executed. Externally, this control was oriented toward establishing stable relations between competitors to promote the survival of their organizations."

"They are the basic mechanism of control of the external environment available to managers and entrepreneurs. Organizational fields are not generally benign and cooperative arrangements held in place by a sense of duty or honor the rhetoric and ideology of their proponents might lead one to think so. Instead, they are set up to benefit their most powerful members."

"All large organizations have an internal power struggle over the goals and resources of the organization.... In the largest firms, there are two bases of control : formal ownership and authority. Those who own the firm control by virtue of ownership. Authority relations embedded in the organizational structure legitimate how managers can control organizations."

"Once in place as control perspectives, they are widely shared ways of reducing complexity of the world. They come into the existence in a piecemeal fashion and are articulated by representatives of the largest, most successful firms. They are propagated by the business press and informal links between organizations and then are supported by those organizations and organizational fields."

"The finance conception of the modern corporation, which currently dominates, emphasizes control through the use of financial tools which measure performance according to profit rates. Product lines are evaluated on their short-run profitability and important management decisions are based on the potential profitability of each line. Firms are viewed as collections of assets earning differing rates of return, not as producers of given goods. The firm is not seen as being a member of only one industry. Consequently if the prospect of an industry in which it participates declines, the firm disinvests. The problem for management from this perspective is to maximize short-run rates of return by altering product mix, thereby increasing shareholder equity and keeping the stock price high"

"The basic insight of the finance conception was that such a firm could be more tightly controlled by strict accounting. This progression does not imply, however, that one conception of control caused the emergence of its successor. New conceptions of control evolved out of key interactions among firms and between firms and the state."

"The power struggle within the firm determines which conception of control will dominate and how that conception will be translated into concrete strategies. The winners of this struggle will push the organization into a certain direction and maintain that direction as long as their strategies bring positive results."

"their actors choose a course of action depending on what their competitors do."

"Markets are social constructs that reflect the unique political-cultural construction of their business enterprises and nations."

"By 1890, the corporate form had assume its modern guise. The managers and owners of corporations along with the actors in the courts, states, and federal government had helped develop sufficient law and precedence to protect the corporation from almost any attack."

"The purpose of the large horizontal (same-product) mergers was to reduce the number of plants and, hence, control production enough to insure a reasonable rate of profit. Mergers would allow a newly created large firm to produce full-time in its most efficient plants, and thereby maintain prices, production, and profits."

"The organizational fields of the largest firms continued to be unstable. There were no accepted rules to define how firms could avoid destructive competition, so they attempted to control their markets through various aggressive trade tactics, continued mergers, cartels, getting the federal government to guarantee profitability."

"... did not set out to destroy the large corporation. Instead, each attempted to protect the legitimacy of the system by using existing law against the worst offenders or proposing new laws to change the rules of the system."

"A leading firm that controlled a large portion of the output of a given organizational field operated as a price setter. To set prices, the actors in that firm had to control their suppliers and marketing in order to increase their own efficiency and have the potential to cut off other firms from supplies or customers."

"The experiences of the war changed both Baruch’s and Wilson’s attitude toward the large firm. Following the war their anti-firm rhetoric was replaced with praise for the large firm’s patriotism and contribution to progress."

"The leaders of the large firms dominated by the manufacturing conception saw the key problem as low prices. This meant that they were intent on controlling prices by cutting production. But once prices were stabilized, they were cautious about increasing production for fear that prices would again collapse. Since their competitors had roughly equal production capacities and costs, all would lose by too rapid an increase in production."

"The major reasons for diversification were by this time well established : to employ excess plant capacity, to eliminate seasonal humps, to guard against dependency on one industry, to enter new expanding industries, to supplement existing product lines, to use old products to create new product, and to secure a larger share of business in general."

"We know that most of the wealth and income of the country is owned by a few large corporations, that these corporations in turn are owned by an infinitesimally small number of people and that the profits from the operation of these corporations go to a very small group with the result that the new opportunities for new enterprise, whether corporate or individual, are constantly being restricted. The committee therefore recommends the vigorous and vigilant enforcement of the antitrust laws, confident that an awakening business conscience will realize the necessity of complete cooperation in the elimination of monopolistic practice."

"The Celler-Kefauver Amendment to Section 7 of the Clayton Act has now been made effective by judicial ratification. The Supreme Court has said that the Act means exactly what it says... It prohibits acquisitions, either stock or assets, where competition in any line of commerce in any section of the country may be substantially lessened."

"The firm-as-portfolio model implies both a practice (growth through diversification) and a form (the conglomerate). Unrelated diversification entails buying businesses in industries that are neither potential buyers, suppliers, competitors, or complements to the firm’s current business."

"The notion that advertising was a sort of corporate luxury, to be indulged in where there are no demands left over, now seems archaic and quaint. Businessmen are increasingly inclined to view the appropriation as a true capital investment – as much so as a new plant."

"The marketing director in each department reported directly to the department head and controlled market research and sales. More important, the marketing manager was also responsible for new product development, requesting production schedules, and controlling finished goods inventory."

"The farther afield mergers were, the less likely antitrust authorities were to intervene. Growth through mergers required that finance-oriented managers choose their targets carefully. They sought profitable and growing industries where their capital would earn higher rates of return and avoided mergers where the threat of antitrust prosecution might exist."

"The forms of social organization produced the market, not the reverse... Instead of markets calling forth efficient forms of social organization, political and social interactions produced the structuring of sociologically effective markets."

"The basis of social skill is the ability to relate to the situation of the ‘other.’ This means that whereas a given strategic actor has interests, he or she must take other people’s interests into account… to imaginatively identify with the states of others."

"[Institutional entrepreneurs must] size up the condition of the organizational field and figure out what kinds of action make sense."

"I use the metaphor "markets as politics" to create a sociological view of action in markets. I develop a conceptual view of the social institutions that comprise markets, discuss a sociological model of action in which market participants try to create stable worlds and find social solutions to competition, and discuss how markets and states are intimately linked. From these foundations, I generate propositions about how politics in markets work during various stages of market development-- formation, stability, and transformation. At the formation of markets, when actors in firms are trying to create a status hierarchy that enforces noncompetitive forms of competition, political action resembles social movements. In stable markets, incumbent firms defend their positions against challengers and invaders. During periods of market transformation, invaders can reintroduce more fluid social-movement-like conditions."

"The social structures of markets and the internal organisation of firms are best viewed as attempts to mitigate the effects of competition with other firms."

"Property rights, governance structures and rules of exchange are arenas in which modern states establish rules for economic actors. States provide stable and reliable conditions under which firms organize, compete, cooperate and exchange. The enforcement of the laws affects what conceptions of control can produce stable markets. There are political contests over the content of laws, their applicability to given firms and markets, and the extent and direction of state intervention into economy. Such laws are never neutral. They favor certain groups of firms."

"Conceptions of control refer to understandings that structure perceptions of how a market works and that allow actors to interpret their world and act to control situations. A conception of control is simultaneously a worldview that allows actors to interpret the actions of others and a reflection of how the market is structured. Conceptions of control reflect market-specific agreements between actors in firms on principles of internal organization (i.e., forms of hierarchy), tactics for competition or cooperation, and the hierarchy or status ordering of firms in a given market. The state must ratify, help to create, or at the very least, not oppose a conception of control."

"The key insight of the approach is to consider that social action takes place in arenas, what may be called fields, domains, sectors, or organized social spaces... Fields contain collective actors who try to produce a system of domination in that space. To do so requires the production of a local culture that defines local social relations between actors."

"State building can be viewed as the historical process by which groups outside of the state are able to get domains organized by the state to make rules for some set of societal fields. These rules reflect the interests of the most powerful groups in various fields. Politically oriented social movements are, by definition, outside of some established field of a given state. They are oriented toward either creating a new domain where they will have power, or taking over and transforming an existing domain or even the entire state. At any given moment, there are political projects in the fields that make up states (i.e., “normal politics”) and social movements oriented toward altering incumbents’ ability to set rules."

"The main problem actors face is uncertainty caused by difficulties in finding suppliers and customers and in controlling their own firm."

"Initial formation of policy domains and the rules they create affecting property rights, governance structures, and rules of exchange shape the development of new markets because they produce cultural templates that determine how to organize in a given society."

"Organizational and not financial or ownership embeddedness is likely to be a more important cause of actions of firms than anything else in the case of United States. This means efforts should concentrate on specifying models of relations between firms that focus on intra- and interorganizational processes, such as the construction of strategic action and the cultural frames by which such a construction makes sense."

"The key argument is that managers and owners in firms search for stable patterns of interaction with their largest competitors. Once stable patterns prove to be both legal and profitable, firms set up organizational fields that tend to produce and reproduce those patterns."

"Organizational theory is one of the most vibrant areas in sociological research. Scholars from many subfields, (medical sociology, political sociology, social movements, education) have felt compelled to study organizational theory because of the obviously important role that complex organizations play in their empirical research. But scholars who do not do organizational theory are often struck at how arcane the debates are within organizational theory. They also think most of organizational theory is about firms and thus, the theory does not seem to have much application to other kinds of social arenas."

"Organizational theories have three origins: Max Weber’s original work on bureaucracies which came to define the theory for sociologists, a line of theory based in business schools that had as its focus, the improvement of management control over the work process, and the industrial organization literature in economics. Unlike many fields in sociology, organizational theory has been a multidisciplinary affair since World War II, and it is difficult to understand its central debates without considering its linkages to business schools and economics departments."

"Neil Fligstein is one of the most productive empirical researchers in economic sociology. His new book [The Architecture of Markets, 2001] can be interpreted as an attempt to answer the questions just mentioned, among others. He argues that “the sociology of markets lacks a theory of social institutions” (p. 8) and “needs to be clarified theoretically” (p. 9). The book’s aim is to give an outline of new theoretical foundations of a sociology of markets. Fligstein points out that “there are real differences in theoretical assumptions” between institutional economics and his version of a sociology of markets (p. 10). The first major part of the book is devoted to an explication and elaboration of a specifically sociological approach to markets called the “political-cultural approach.” In the second part, Fligstein applies this approach to various empirical cases and data of twenty-first-century capitalist societies."

"Organizational design is the body of knowledge and techniques that seeks to offer useful advice to organizations about their structures (and other aspects) needed to attain their goals."

"In today's volatile world, organizational design is an everyday, ongoing activity and challenge for every executive, whether managing a global enterprise or a small work team. Globalization, worldwide competition, deregulation, and ever-new technologies drive the ongoing reassessment of the organization. The executive response has been many new forms of organizational design: virtual, learning, modular, cellular, network, alliance, or spaghetti – to name a few. New organizational forms challenge old ways of organizing for efficiency and effectiveness. Yet fundamental design principles underlie any well-functioning organization. Organizations still require a formal design."

"Today perhaps the most popular organizational theory is institutional theory."

"By far the most difficult skill I learned as a C.E.O. was the ability to manage my own psychology. Organizational design, process design, metrics, hiring and firing were all relatively straightforward skills to master compared with keeping my mind in check."

"In life, everybody faces choices between doing what's popular, easy, and wrong vs. doing what's lonely, difficult, and right. These decisions intensify when you run a company, because the consequences get magnified 1,000 fold. As in life, the excuses for CEOs making the wrong choice are always plentiful."

"It helps to have founded and run a company if you're going to help somebody run a company who is a founder."

"The important thing about mobile is, everybody has a computer in their pocket. The implications of so many people connected to the Internet all the time from the standpoint of education is incredible."

"Every time you make the hard, correct decision you become a bit more courageous and every time you make the easy, wrong decision you become a bit more cowardly. If you are CEO, these choices will lead to a courageous or cowardly company."

"Note to self: It's a good idea to ask, 'What am I not doing?'"

"Following conventional wisdom and relying on shortcuts can be worse than knowing nothing at all."

"Organization design is conceived to be a decision process to bring about a coherence between the goals or purposes for which the organization exists, the patterns of division of labor and interunit coordination and the people who will do the work."

"If management can identify the negatives of its preferred option, the other policies around the star model can be designed to counter the negatives while achieving the positives."

"There is no one best way to organize... Any way of organizing is not equally effective."

"The greater the task uncertainty, the greater the amount of information that must be processed among decision makers during task execution in order to achieve a given level of performance."

"[Task uncertainty is] the difference between the amount of information required to perform the task and the amount of information already possessed by the organisation."

"Organizations make two responses to deal with the behavior control problem. The first change involves the substitution of craft or professional training of the work force for the detailed centralized programming of the work processes."

"If the organization is faced with greater uncertainty due to technological change, higher performance standards due to increased competition, or diversifies its product line to reduce dependence, the amount of information processing is increased. The organization must adopt at least one of the four strategies when faced with greater uncertainty."

"The empirical research of the last fifteen years on the structure of large organizations seems to confirm the hypothesis of Herbert Simon that human cognitive limits are a basic limiting factor in determining organization structures ."

"The basic proposition is that the greater the uncertainty of the task, the greater the amount of information that has to be processed between decision-makers during the execution of the task. If the task is well understood prior to performing it much of the activity can be preplanned. If it is n~t understood, then during the actual task execution more knowledge is acquired which leads to changes in resource allocations, schedules, and priorities."

"Organizations are goal-directed, boundary-maintaining, activity systems."

"Organizational forms — specific configurations of goals, boundaries, and activities — are the elements selected by environmental criteria, and change may occur either through new forms eliminating old ones or through the modification of existing forms. Environmental niches are distinct in combination of resources and other constraints that are sufficient to support organizational form. Organizational forms, then, are organized activity systems oriented toward exploiting the resources within a niche. Selection pressures may favour or eliminate entire groups of organizations, such as industries, and the changing population distribution of organizations in a society reflects the operation of such selection pressures."

"A niche is created by the intersection of resource constraints— an abstract resource space consisting of a unique combination of resources (information, access to materials, customers, and so on) that could permit a form to survive there. Forms thus either take advantage of a niche resource space" or fail."

"Active loose coupling occurs when a subsystem of an organization is more tightly coupled to an environmental sector than other subsystems, and a feedback loop connects environmental conditions with organizational responses. A feedback loop is present when an organizational mechanism for monitoring the environment exists, and when the state of the environment (or intended target of the organization's action) is compared to some desired state by members of the organization."

"In general, growth is an intrinsic source of change with potentially unintended effects and some subunits are better positioned than others to protect themselves against such effects. Oligarchical tendencies are present in almost all membership-based organizations, such as unions and voluntary associations, and if unchecked, can lead to transformations. Organizations with diffuse goals or innovative leadership are sometimes able to survive the crisis of complementing their original mission by moving onto other goals."

"Organizations and Environments was originally issued in 1979, it increased interest in evolutionary explanations of organizational change. Since then, scholars and practitioners have widely cited the book for its innovative answer to this question: Under what conditions do organizations change?"

"Aldrich achieves theoretical integration across 13 chapters by using an evolutionary model that captures the essential features of relations between organizations and their environments. This model explains organizational change by focusing on the processes of variation, selection, retention, and struggle. The "environment," as conceived by Aldrich, does not refer simply to elements "out there"—beyond a set of focal organizations—but rather to concentrations of resources, power, political domination, and most concretely, other organizations."

"The study of human relations in business and the study of the technology of operating are bound up together."

"Group organization is to be the new method in politics, the basis of our future industrial system, the foundation of international order. Group organization will create the new world we are now blindly feeling after, for creative force comes from the group, creative power is evolved through the activity of the group life."

"Early psychology was based on the study of the individual; early sociology was based on the study of society. But there is no such thing as the "individual," there is no such thing as "society"; there is only the group and the group-unit — the social individual. Social psychology must begin with an intensive study of the group, of the selective processes which go on within it, the differentiated reactions, the likenesses and unlikenesses, and the spiritual energy which unites them."

"The group process contains the secret of collective life, it is the key to democracy, it is the master lesson for every individual to learn, it is our chief hope or the political, the social, the international life of the future."

"As the psychic coherence of the group can be obtained only by the full contribution of every member, so we see that a readiness to compromise must be no part of the individual's attitude. Just so far as people think that the basis of working together is compromise or concession, just so far they do not understand the first principles of working together."

"What then is the essence of the group process by which are evolved the collective thought and the collective will? It is an acting and reacting, a single and identical process which brings out differences and integrates them into a unity. The complex reciprocal action, the intricate interweavings of the members of the group, is the social process."

"We see now that the process of the many becoming one is not a metaphysical or mystical idea; psychological analysis shows us how we can at the same moment be the self and the other, it shows how we can be forever apart and forever united. It is by the group process that the transfiguration of the external into the spiritual takes place, that is, that what seems a series becomes a whole. The essence of society is difference, related difference. "Give me your difference" is the cry of society to-day to every man."

"Individuality is the capacity for union. The measure of individuality is the depth and breadth of true relation. I am an individual not as far as I am apart from, but as far as I am a part of other men. Evil is non-relation."

"It is a mistake to think that social progress is to depend upon anything happening to the working people: some say that they are to be given more material goods and all will be well; some think they are to be given more "education" and the world will be saved. It is equally a mistake to think that what we need is the conversion to "unselfishness" of the capitalist class."

"Democracy has meant to many "natural" rights, "liberty" and "equality." The acceptance of the group principle defines for us in truer fashion those watchwords of the past. If my true self is the group-self, then my only rights are those which membership in a group gives me."

"Man can have no rights apart from society or independent of society or against society."

"Democracy is a great spiritual force evolving itself from men, utilizing each, completing his incompleteness by weaving together all in the many-membered community life which is the true Theophany. The world today is growing more spiritual, and I say this not in spite of the Great War, but because of all this war has shown us of the inner forces bursting forth in fuller and fuller expression."

"Since I have been in England I have been asked several times why I am studying business management. I will try to tell you. Free to choose between different paths of study, I have chosen this for a number of reasons. First of all, it is among businessmen (not all, but a few) that I find the greatest vitality of thinking to-day, and I like to do my thinking where it is most alive. I said last winter to a Professor of Philosophy: 'Do you realize that you philosophers have got to look to your laurels, that businessmen are doing some very valuable thinking and may get ahead of you?' And he acknowledged this, which I think was a very significant concession. Moreover, I find the thinking of businessmen to-day in line with the deepest and best thinking we have ever had. The last word in science—in biology—is the principle of unifying. The most profound philosophers have always given us unifying as the fundamental principle of life. And now business men are finding it is the way to run a successful business. Here the ideal and the practical have joined hands. That is why I am working at business management, because, while I care for the ideal, it is only because I want to help bring it into our everyday affairs."

"Another reason is because industry is the most important field of human activity, and management is the fundamental element in industry. It is now generally recognized that not bankers, not stockholders, but management is the pivot of business success. It is good management that draws credit, that draws workers, that draws customers. Moreover, whatever changes should come, whether industry is owned by individual capitalists, or by the State, or by the workers, it will always have to be managed. Management is a permanent function of business."

"The third reason why I am working at business management is because I believe in control, and so do our most progressive business men. I believe in the individual not trusting to fate or chance or inheritance or environment, but learning how to control his own life. And nowhere do I see such a complete acceptance of this as in business thinking, the thinking of more progressive business men. They are taking the mysticism out of business. They do not believe that there is anything fatalistic about the business cycle that is wholly beyond the comprehension of men; they believe that it can be studied and to some extent controlled."

"One of the most interesting things about business to me is that I find so many business men who are willing to try experiments. I should like to tell you about two evenings I spent last winter and the contrast between them. I went one evening to a drawing-room meeting where economists and M.Ps. talked of current affairs, of our present difficulties. It all seemed a little vague to me, did not seem really to come to grips with our problem. The next evening it happened that I went to a dinner of twenty business men who were discussing the question of centralization and decentralization. Each one had something to add from his own experience of the relation of branch firms to the central office, and the other problems included in the subject. There I found L hope for the future. There men were not theorizing or dogmatizing; they were thinking of what they had actually done and they were willing to try new ways the next morning, so to speak. Business, because it gives us the opportunity of trying new roads, of blazing new trails, because, in short, it is pioneer work, pioneer work in the organized relations of human beings, seems to me to offer as thrilling an experience as going into a new country and building railroads over new mountains. For whatever problems we solve in business management may help towards the solution of world problems, since the principles of organization and administration which are discovered as best for business can be applied to government or international relations. Indeed, the solution of world problems must eventually be built up from all the little bits of experience wherever people are consciously trying to solve problems of relation. And this attempt is being made more consciously and deliberately in industry than anywhere else."

"You may wonder why I have talked of government, and of the League of Nations, instead of spending all my hour on leadership in industry. I have done it deliberately, because it seems to me a fact of very great significance that we are finding the same trend in all these different fields. It reinforces us in our conviction that we are moving in harmony with the deeper and more vital forces of human progress."

"Certain changes have been going on in business practice which are destined, I believe, to alter our thinking fundamentally. I think this is a contribution which business is going to make to the world, and not only to the business world, but eventually to government and international relations. Men may be making useful products, but beyond this, by helping to solve the problems of human relations, they are perhaps destined to lead the world in the solution of those great problems of coordination and control upon which our future progress must depend."

"THE subject I have been given for these lectures is The Psychological Foundations of Business Administration, but as it is obvious that we cannot in four papers consider all the contributions which contemporary psychology is making to business administration — to the methods of hiring, promoting and discharging, to the consideration of incentives, the relation of output to motive, to group organization, etc. — I have chosen certain subjects which seem to me to go to the heart of personnel relations in industry. I wish to consider in this paper the most fruitful way of dealing with conflict. At the outset I should like to ask you to agree for the moment to think of conflict as neither good nor bad; to consider it without ethical prejudgment; to think of it not as warfare, but as the appearance of difference, difference of opinions, of interests. For that is what conflict means — difference. We shall not consider merely the differences between employer and employee, but those between managers, between the directors at the Board meetings, or wherever difference appears."

"There are three main ways of dealing with conflict; domination, compromise and integration. Domination, obviously, is a victory of one side over the other. This is the easiest way of dealing with conflict, the easiest for the moment but not usually successful in the long run, as we can see from what has happened since the War."

"Power is not a pre-existing thing which can be handed out to someone, or wrenched from someone. We have seen again and again the failure of "power" conferred. You could give me dozens of cases. The division of power is not the thing to be considered, but the method of organization which will generate power."

"There is no such thing as vicarious experience."

"We can never wholly separate the human from the mechanical side... But you all see every day that the study of human relations in business and the study of operating are bound up together."

"We can confer authority; but power or capacity, no man can give or take. The manager cannot share his power with division superintendent or foreman or workmen, but he can give them opportunities for developing their power"

"Before Mary Follett, industrial groups had seldom been the subject of study of political or social scientists. It was her special merit to turn from the traditional subjects of study - the state or the community as a whole - progressively to concentrate on the study of industry... Her approach was to analyse the nature of the consent on which any democratic group is based by examining the psychological factors underlying it. This consent, she suggested, is not static but a continuous process, generating new and living group ideas through the interpenetration of individual ideas."

"Mary Follett devoted a lifetime to searching for the true principles of organization which would ensure a stable foundation for the steady, ordered progress of human well-being. That her search was not in vain will be evident to all who read the lectures. Her teaching is not theoretical, but is based on a close study of the practice of a large number of business undertakings. She chose this field of enquiry to supplement her work on local and national government because she realized that the principles which should determine organization are identical, no matter what the purpose which that organization is designed to serve."

"WE SHOULDN'T FORGET "the woman who invented management," particularly when Peter Drucker is said to have referred to her as his "guru": Mary Parker Follett (1868-1933). Rising to prominence as a management consultant in the 1920s, she is generally recognized as the originator of management concepts based on human relationships, teamwork, win-win solutions, leadership through shared purpose, and what would come to be called knowledge work."

"One of the undesirable by-products of the factory system was the frequent abuse of unskilled workers, including children, who were often subjected to unhealthy working conditions, long hours, and low pay. The appalling conditions spurred a national anti-factory campaign. Led by Mary Parker Follett and Lillian Gilbreth, the campaign gave rise to the “human relations movement" advocating more humane working. Among other things, the human relations movement provided a more complex and realistic understanding of workers as people, instead of merely cogs in a factory machine."

"What is the "cost of capital" to a firm in a world in which funds are used to acquire assets whose yields are uncertain; and in which capital can be obtained by many different media, ranging from pure debt instruments, representing money-fixed claims, to pure equity issues, giving holders only the right to a pro-rata share in the uncertain venture? This question has vexed at least three classes of economists: (1) the corporation finance specialist concerned with the techniques of financing firms so as to ensure their survival and growth; (2) the managerial economist concerned with capital budgeting; and (3) the economic theorist concerned with explaining investment behavior at both the micro and macro levels."

"Think of the firm as a gigantic tub of whole milk. The farmer can sell the whole milk as it is. Or he can separate out the cream, and sell it at a considerably higher price than the whole milk would bring. (Selling cream is the analog of a firm selling debt securities, which pay a contractual return.) But, of course, what the farmer would have left would be skim milk, with low butter-fat content, and that would sell for much less than whole milk. (Skim milk corresponds to the levered equity.) The Modigliani-Miller proposition says that if there were no cost of separation (and, of course, no government dairy support program), the cream plus the skim milk would bring the same price as the whole milk."

"When I started worrying about stocks, it was the late 1930s and early 1940s and it didn't seem like a good way to make money then, either."

"What counts is what you do with your money, not where it came from."

"Most people might just as well buy a share of the whole market, which pools all the information, than delude themselves into thinking they know something the market doesn't."

"Organizations are (1) social entities that (2) are goal-directed, (3) are designed as deliberately structured and coordinated activity systems, and (4) are linked to the external environment."

"The key element of an organization is not a building or a set of policies and procedures; organizations are made up of people and their relationships with one another. An organization exists when people interact with one another to perform essential functions that help attain goals. Recent trends in management recognize the importance of human resources, with most new approaches designed to empower employees with greater opportunities to learn and contribute as they work together toward common goals."

"The management science approach to organizational decision making is the analog to the rational approach by individual managers. Management science came into being during World War II. At that time, mathematical and statistical techniques were applied to urgent, large-scale military problems that were beyond the ability of individual decision makers. Mathematicians, physicists, and operations researchers used systems analysis to develop artillery trajectories, antisubmarine strategies, and bombing strategies such as salvoing (discharging multiple shells simultaneously). Consider the problem of a battleship trying to sink an enemy ship several miles away. The calculation for aiming the battleship's guns should consider distance, wind speed, shell size, speed and direction of both ships, pitch and roll of the firing ship, and curvature of the earth. Methods for performing such calculations using trial and error and intuition are not accurate, take far too long, and may never achieve success. This is where management science came in. Analysts were able to identify the relevant variables involved in aiming a ship's guns and could model them with the use of mathematical equations. Distance, speed, pitch, roll, shell size, and so on could be calculated and entered into the equations. The answer was immediate, and the guns could begin firing. Factors such as pitch and roll were soon measured mechanically and fed directly into the targeting mechanism. Today, the human element is completely removed from the targeting process. Radar picks up the target, and the entire sequence is computed automatically."

"From a legal point of view, an organisation is a legal person. It is legitimised, under the laws of the land, by a legally recognised and binding constitution specifying purpose, procedures to be followed, hierarchical offices to be taken up, authority to be granted, and membership criteria and categories."

"Failure to delegate causes managers to be crushed and fail under the weight of accumulated duties that they do not know and have not learned to delegate."

"Management Mind in the has always had a great contempt for politics. The point has been missed that although we, in the Automobile Industry have continually dismissed politics and government as quite unworthy of the attention of serious-minded men like ourselves, politics and government have been continually increasing their interest in the Automobile."

"Organization is as old as human society itself."

"The reason for the phenomenon we call organization is as fundamental as human life itself. It has its roots in the fact that man, in every fibre of his being, with the full force of every motive he has brought with him through the ages, is stamped indelibly as a social creature."

"Organization is the form of every human association for the attainment of a common purpose."

"The technique of management, in its human relationships, can be best described as the technique of handling or managing people, which should be based on a deep and enlightened human understanding. The technique of organization may be described as that of relating specific duties or functions in a completely coordinated scheme. This statement of the difference between managing and organizing clearly shows their intimate relationship. It also shows, which is our present purpose, that the technique of organizing is inferior, in logical order, to that of management. It is true that a sound organizer may, because of temperamental failings, be a poor manager, but on the other hand it is inconceivable that a poor organizer may ever make a good manager... The prime necessity in all organization is harmonious relationships based on integrated interests, and, to this end, the first essential is an integrated and harmonious relationship in the duties, considered in themselves."

"In the practical sense the word principle may be applied to any underlying cause of more or less correlated facts in any particular field of investigation. The word principles, as applied to organization, is used by us strictly in the latter meaning."

"Organization begins when people, even if they be only two or more, combine their efforts for a given purpose. We have shown this by the simple illustration of two people uniting their efforts to lift and move some weighty object. This combination, however, is not the first principle of organization. It is only an illustration of organization itself. To find the first principle, let us carry the illustration a step further. The efforts of these two lifters must be coordinated, which means that they must act together. If first one lifted, and then the other, there would be no unity of action, and hence no true organization of effort. Here then we find the first principles of organization."

"The supreme coordinating authority must rest somewhere and in some form in every organization, else there could be no such thing as organized."

"As coordination contains all the principles of organization, it likewise expresses all the purposes of organization, in so far as these purposes relate to its internal structure. To avoid confusion we must keep in mind that there are always two objectives of organization, the internal and the external. The latter may be anything, according to the purpose or interest that calls the group together, but the internal objective is coordinative always."

"As coordination is the all-inclusive principle of organization, it must have its own principle and foundation in Authority, or the supreme coordinating power. Always, in every form of organization, this supreme coordinating authority must rest somewhere, else there would be no directive for any truly coordinated effort. The term authority as here used need imply nothing of autocracy."

"It is sufficient here to observe that the supreme coordinating authority must be anterior to leadership in logical order, for it is this coordinating force which makes the organization. Leadership, on the other hand, always presupposes the organization. There can be no leader without something to lead."

"It is essentially to the very idea and concept of organization that we there must be a process, formal in character, through which the supreme co-ordinating authority operates throughout the whole structure of the organized body. This process is not an abstraction; it is a tangible reality observable in every organization. It appears in a form so distinct and characteristic that it practically names itself, — hence the term Scalar Process."

"The scalar process is the same form in organization which is sometimes called hierarchical. But in order to avoid all definitional ambiguities the term scalar is much to be preferred. A scale means a series of steps; hence, something graduated."

"In organization it means the graduation of duties, not according to differentiated functions, for this involves another and distinct principle of organization, but simply according to degrees of authority and corresponding responsibility."

"Leadership is the form that authority assumes when it enters into process. As such it constitutes the determining principle of the entire scalar process, existing not only at the source, but projecting itself through its own action throughout the entire chain, until, through functional definition, it effectuates the formal coordination of the entire structure."

"The third and effectuating principle of the entire scalar process is Functional Definition."

"By the term functionalism, considered as a principle of organization, we mean the differentiation or distinction between kind of duties. Thus it is clearly distinguished from the scalar principle, in which there is also differentiation, but of quite another kind. The scalar differentiation refers simply to degrees or gradations of authority."

"Although a separate function of some kind is implicit in the very existence of a separate department, there may be, especially in manufacturing procedure, certain general functions, appearing in some form of departments, which in turn may require organized supervision and correlation. Thus we have cross-functionalism."

"Cross-functionalism, however, cannot eliminate departmental organization; on the contrary the organized supervision of any function of this character becomes itself departmental. Thus out of cross-functionalism must grow cross-departmentalism. Cross-departmentalism is an extended application of the principle of horizontal correlation."

"In every organization there must be some function that decides or determines the objective and the procedure necessary to its attainment... may be called the determinative... in secular government always known as the legislative."

"The fact that functions may not be separated in organization does not in any way way destroy their identity as functions... The ideal of organized efficiency is not the complete segregation but the integrated correlation |of the three primary functions... The organizer must identify these functional principles, as they appear in every job, and make them the basis of his correlation... his duty is to correlate functions as such... The duty of the manager is to correlate who performs these functions... Management however represents the scalar principle... perpendicular correlations... true horizontal correlation requires other contact... The dissemination of understanding... of common purpose, of the relation of individuals to that purpose & to each other."

"The staff function in organization means the service of advice or counsel, as distinguished from the function of authority or command. This service has three phases, which appear in a clearly integrated relationship. These phases ^ are the informative, the advisory, and the supervisory."

"The informative phase refers to those things which authority should know in framing its decisions; the advisory, to the actual counsel based on such information; the supervisory, to both preceding phases as applied to all the details of execution. The point is that the line represents the authority of man; the staff, the authority of ideas. The staff is purely an auxiliary service. Its function is to be informative and advisory with respect to both plans and their execution. This is implicit in the word "staff" which is something to support or lean upon but without authority to decide or initiate."

"No advance in human knowledge will ever exclude the leader's need for the counsel of elemental human wisdom, and especially of collective wisdom, in the making of all important decisions."

"There are two prime requisites in efficient staff service, coordination and infiltration. The tertn "co-ordination" describes the necessary method of sound staff procedure, but "infiltration of knowledge" is the ultimate purpose of all staff activities. Staff service is not alone for the top leader. It comes to him first, for he needs it in the making of his initial decisions, but the subordinates in the scalar chain, down to the very rank and file, likewise need it in the intelligent execution of all plans."

"The term organization, and the principles that govern it, are inherent in every form of concerted human effort, even where there are no more than two people involved. For example take two men who combine their efforts to lift and move a stone that is too heavy to be moved by one. In the fact of this combination of effort we have the reality of human organization for a given purpose. Likewise in the procedure necessary to this end we find the fundamental principles of organization. To begin with, the two lifters must lift in unison. Without this combination of effort the result would be futile. Here we have co-ordination, the first principle of organization. Likewise one of these two must give the signal "heave ho !" or its equivalent, to the other, thus illustrating the principle of leadership or command. Again the other may have a suggestion to make to the leader in the matter of procedure, which involves the vital staff principle of advice or counsel. And so on. Thus in every form of concerted effort principles of organization are as essential and inevitable as organization itself."

"My own principal interest lies in the sphere of , which of all major forms of human organization is, in its present magnitude, the most modern. For this the reason is evident. The vast present-day units of industrial organization are products mainly of one creating factor, namely the technology of mass production, and this technology, born of the industrial revolution, has been almost exclusively an evolution of the last century. In contrast other major forms of human organization — the state, the church, the army — are as old as human history itself. Yet if we examine the structure of these forms of organization we shall find that, however diverse their purposes, the underlying principles of organization are ever the same."

"Worthiness in the industrial sphere can have reference to one thing only, namely the contribution of industry to the sum total of human welfare. On this basis only must industry and all its works finally be judged… The lessons of history teach us that no efficiency of procedure will save from ultimate extinction those organizations that pursue a false objective; on the other hand, without such efficient procedure, all human group effort becomes relatively futile."

"Coordination, therefore, is the orderly arrangement of group efforts, to provide unity of action in the pursuit of a common purpose. As coordination is the all inclusive principle of organization it must have its own principle and foundation in authority, or the supreme coordination power. Always, in every form of organization, this supreme authority must rest somewhere, else there would be no directive for any coordinated effort."

"The common impression regards this scale or chain merely as a "type" of organization, characteristic only of the vaster institutions of government, army, church and industry. This impression is erroneous. It is likewise misleading, for it seems to imply that the scalar chain in organization lacks universality. These great organizations differ from others only in that the chain is longer. The truth is that wherever we find an organization even of two people, related as superior and subordinate, we have the scalar principled."

"While many brilliant writers and speech makers have been battling passionately about communism, fascism, socialism, and democracy, our studies of how governmental organizations actually function have forced us to the conclusion that there is little significance to these terms. Indeed, it has been our general observation that not only in different countries, but from generation to generation men go on organizing their governments and earning their living in much the same manner. Notable changes and improvements can be credited from time to time to the scientists and engineers, and in general to improved technology, but throughout history economic laws and the processes of production and distribution display an utter contempt for changes in the political complexion of government. In appraising the many experiments in governmental organization that are being tried currently throughout the world, it is important that we should not be thrown off the track by the circumstance that the various revolutionary movements or changes in government have adopted different symbols around which to rally supporters. The vital point is the plain fact that, once the controlling group gets into power, the practical circumstances of the situation force the new leaders to organize the government according to principles of organization that are as old as the hills."

"[Functionalism is] a distinction between kinds of duties."

"Delegation means the conferring of a specified authority by a higher authority. In its essence it involves a dual responsibility. The one to vhom responsibility is delegated becomes responsible to the superior for doing the job. but the superior remains responsible for getting the Job done. This principle of delegation is the center of all processes in formal organization. Delegation is inherent in the very nature of the relation between superior and subordinate. The moment the objective calls for the organized effort of more than one person, there is always leadership with its delegation of duties."

"When a member of an organization is placed in a position with duties ill defined in their relation to other duties what happens? Naturally he attempts to make his own interpretation of those duties and, where he can, to impose this view on those about him. In this process he encounters others in similar cases, with friction and lack of coordination as the inevitable result."

"The scalar principle is the same form in organization that is sometimes called hierarchical. But, to avoid all definitional variants, scalar is here preferred. A scale means a series of steps, something graded. In organization it means the grading of duties, not according to different functions, for this involves another principle of organization, but according to degrees of authority and corresponding responsibility. For convenience we shall call this phenomenon of organization the scalar chain. The common impression regards this scale or chain merely as a "type" of organization, characteristic only of the vaster institutions of government, army, church, and industry. This impression is erroneous. It is likewise misleading, for it seems to imply that the scalar chain in organization lacks universality. These great organizations differ from others only in that the chain is longer. The truth is that wherever we find an organization even of two people, related as superior and subordinate, we have the scalar principle. This chain constitutes the universal process of coordination, through which the supreme coordinating authority becomes effective throughout the entire structure."

"On January 17, 1940, Harold Nicolson heard that there was 'still a group in the war Cabinet working for appeasement and at present in negotiation via the former Chancellor Bruning to make peace with the German General Staff on condition that they eliminate Hitler'. But the chance that the German 'opposition' might play the deus ex machina was long gone. Roosevelt was even less realistic. He continued to act as if a compromise peace might still be concocted on the basis of Munich-style concessions to the dictators; hence the 1940 trips to Europe by the Under-Secretary of State, Sumner Welles, and the Vice-President of General Motors, James Mooney, the former touting concessions to Germany that even Chamberlain and Halifax thought laughable. Only with the fall of France was appeasement finally buried."

"In 1931, under the title "Onward Industry," Messrs. James D. Mooney and Alan C. Reiley published a full-length book examining the comparative principles of organization as displayed historically in governmental, ecclesiastical, military and business structures... Their book constitutes the first serious attempt to deal with the subject comparatively and synoptically."

"Mooney has made an exhaustive study of governmental, military, ecclesiastical and industrial organization in an effort to find underlying principles or precepts applicable to all forms of organization. He lists three basic principles: (l) the coordinative (2) the scalar) and (3) the functional. Each of these basic principles is further subdivided into subordinate principles for a total of nine identifiable principles."

"Among organization theorists general, if not universal agreement obtains that it is proper to view the development of organization theory as divided into three periods. Conventionally, this "history" is regarded as beginning early in this century; and the three periods are customarily are designed by the terms classic, neo-classic and modern... The classical period has its beginning, in the conventional view, with Frederick W. Taylor and Henri Fayol... [and] reaches its high point in the thirties with the work of James Mooney and of the editors and authors of the Paper in the Science of Administration."

"Von Hitler wurde der Präsident von GM, James D. Mooney, 1938 für seine Verdienste um die Aufrüstung mit dem Orden des Deutschen Adlers (Erste Klasse) ausgezeichnet."

"In retrospect, Mooney’s mission looks incredibly naive. It is astonishing that he could have been so close to affairs in Germany and yet not have realised the true nature of the Nazi regime; but it seems this was so. His efforts, though made in good faith, were kept secret at first, but eventually news leaked out and in the summer of 1940 PM magazine in the USA ran a series of articles accusing Mooney of Nazi sympathies and linking his meeting with Hitler to his earlier receipt of the German Order of Merit for services to industry in 1938."

"Mooney's unpublished paper “The Science of Industrial Organization” (1929) portrays GM's multidivisional organization's use of the line-staff concept in organizing overseas assembly plants. Here I compare General Motors with Ford Motor Company, which had first-mover advantages overseas, and examine how each company organized and managed their international operations. “Linking pins,” a social-science concept, illustrates how GM's organizational hierarchy achieved vertical coordination of effort."

"Mooney and Reiley were concerned with certain universal principles and contributed four principles of organization, namely, the coordinative principle, the scalar principle, the functional principle, and staff-line principle."

"Management cannot provide a man with self-respect or with the respect of his fellows or with the satisfaction of needs for self-fulfillment. It can create conditions such that he is encouraged and enabled to seek such satisfactions for himself, or it can thwart him by failing to create those conditions."

"The key question for top management is what are your assumptions (implicit as well as explicit) about the most effective way to manage people?"

"Every managerial act rests on assumptions, generalizations, and hypotheses — that is to say, on theory. Our assumptions are frequently implicit, sometimes quite unconscious, often conflicting; nevertheless, they determine our predictions that if we do a, b will occur. Theory and practice are inseparable."

"Human behavior is predictable, but, as in physical science, accurate prediction hinges on the correctness of underlying theoretical assumptions. There is, in fact, no prediction without theory; all managerial decisions and actions rest on assumptions about behavior. If we adopt the posture of the ostrich with respect to our assumptions under the mistaken idea that we are thus “being ‘practical,” or that “management is an art,” our progress with respect to the human side of enterprise will indeed be slow. Only as we examine and test our theoretical assumptions can we hope to make them more adequate, to remove inconsistencies, and thus to improve our ability to predict."

"The ingenuity of the average worker is sufficient to outwit any system of controls devised by management."

"Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization — hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc. — comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior."

"Classical organization theory suffers from "ethnocentrism": It ignores the significance of the political, social, and economic milieu in shaping organizations and influencing managerial practice."

"We live today in a world which only faintly resembles that of a half century ago. The standard of living, the level of education, and the political complexion of the United States today profoundly affect both the possibilities and limitations of organizational behavior. In addition, technological changes are bringing about changes in all types of organization. In the military, for example, it is becoming increasingly difficult to manage a weapons team in the field as a typical infantry unit was managed a couple of decades ago. Such a team requires a high degree of autonomy. Instead of following explicit orders from superiors, it must be able to adjust its behavior to fit local circumstances within the context of relatively broad objectives. (It is interesting to note the attempts that are made — by "programming" for example — to retain central control over the operations of such units. Established theories of control are not abandoned easily, even in the face of clear evidence of their inappropriateness.) Underlying the principles of classical organization theory are a number of assumptions about human behavior which are at best only partially true."

"Knowledge accumulated during recent decades challenges and contradicts assumptions which are still axiomatic in conventional organizational theory. Unfortunately, those classical principles of organization — derived from inappropriate models, unrelated to the political, social, economic, and technological milieu, and based on erroneous assumptions about behavior — continue to influence our thinking about the management of the human resources of industry. Management's attempts to solve the problems arising from the inadequacy of these assumptions have often involved the search for new formulas, new techniques, new procedures. These generally yield disappointing results because they are adjustments to symptoms rather than causes. The real need is for new theory, changed assumptions, more understanding of the nature of human behavior in organizational settings."

"If there is a single assumption which pervades conventional organizational theory, it is that authority is the central, indispensable means of managerial control."

"The effectiveness of authority as a means of control depends first of all upon the ability to enforce it through the use of punishment. In the two organizations which have been the models for classical organization theory, the situation with respect to enforcement is clear. In the military, authority is enforceable through the court-martial, with the death penalty as the extreme form of punishment. In the Church, excommunication represents the psychological equivalent of the death penalty."

"Behind every managerial decision or action are assumptions about human nature and human behavior."

"The average human being has an inherent dislike of work and will avoid it if he can."

"The capacity to exercise a relatively high degree of imagination, ingenuity and creativity in the solution of organizational problems is widely, not narrowly, distributed in the population."

"It is probable that one day we shall begin to draw organization charts as a series of linked groups rather than as a hierarchical structure of individual "reporting" relationships."

"The essential task of management is to arrange organizational conditions and methods of operations so that people can achieve their own goals best by directing their own efforts toward organizational objectives."

"Above all, it is necessary to recognize that knowledge cannot be pumped into human beings the way grease is forced into a machine. The individual may learn; he is not taught."

"Delegation means that he will concern himself with the results of their activities and not with the details of their day-to-day performance. This requires a degree of confidence in them which enables him to accept certain risks. Unless he takes these risks there will be no delegation."

"It is one of the favorite pastimes of headquarters groups to decide from within their professional ivory tower what help the field organization needs and to design and develop programs for meeting these "needs." Then it becomes necessary to get field management to accept the help provided, and a different role is taken by the staff: that of persuading middle and lower management to utilize the programs."

"Man will exercise self-direction and self-control in the service of objectives to which he is committed."

"The approach that dominates organizational theory, teaching, and practice for most of the twentieth century looked at organizations from the top-down, starting with a view of the CEO as the "leader" who shapes the organization's strategy, structure, culture, and performance potential. The nature of work and the role of the workforce enter the analysis much later, after considerations of technology and organization design have been considered. However, if the key source of value in the twenty-first-century organization is to be derived from the workforce itself, an inversion of the dominant approach will be needed. The new perspective will start not at the top of the organization, but at but at the front lines, with people and the work itself — which is where value is created. Such an inversion will lead to a transformation in the management and organization of work workers, and knowledge. This transformation was signalled by McGregor, but we must go further."

"[Douglas McGregor] coined the two terms and used them to label two sets of beliefs a manager might hold about the origins of human behaviour. He pointed out that the manager's own behaviour would be largely determined by the particular beliefs that he subscribed to....McGregor hoped that his book would lead managers to investigate. "But that isn't what happened. Instead McGregor was interpreted as advocating Theory Y as a new and superior ethic - a set of moral values that ought to replace the values managers usually accept."

"Organisations are technical instruments; designed as means to definite goals... they are expendable. Institutions... may be partly engineered, but they have also a “natural” dimension. They are the products of interaction and adaptation; they become the receptacles of group idealism; they are less readily expendable."

"Leadership, pure and simple, is the assumption of responsibility for the pursuit of excellence in group life."

"Running an organisation... generates problems, which have no necessary (and often an opposed) relationship to the professed or "original" goals of the organization. The day-to-day behaviour of the group becomes centered around specific problems and proximate goals, which have primarily an internal relevance. Then, since these activities come to consume an increasing proportion of the time and thoughts of participants, they are-from the point of view of actual behaviour – substituted for the professed goal."

"There seems to be little doubt that the factor of sheer size is a very important element in concrete bureaucratic structures. However, because of the patterns exhibited in the behavior of agents in small organized groups and because of the implications for greater generality, the formulation used here does not make the factor of size crucial for the existence of bureaucratic behavior patterns."

"The action of the officials tends to have an increasingly internal relevance , which may result in the deflection of the organization from its original path, which, however, usually remains as the formally professed aim of the organization."

"[Even if established procedures exist for replacing leaders,] they are relatively harmless to the entrenched leaders (because functionless) so long as the ranks fear the consequences of using them"

"Trade unions, governments, business corporations, political parties, and the like are formal structures in the sense that they represent rationally ordered instruments for the achievement of stated goals."

"[Formal structures of formal organizations] never succeed in conquering the non-rational dimensions of organizational behavior."

"The formal administrative design can never adequately or fully reflect the concrete organization to which it refers, for the obvious reason that no abstract plan or pattern can—or may, if it is to be useful—exhaustively describe an empirical totality. At the same time, that which is not included in the abstract design (as reflected, for example, in a a staff and-line organization chart) is vitally relevant to the maintenance and development of the formal system itself."

"The most important thing about organizations is that, though they are tools, each nevertheless has a life of its own."

"Cooptation is the process of absorbing new elements into the leadership or policy- determining structure of an organization as a means of averting threats to its stability or existence."

"Whereas some consequences of our actions occur as planned, others are unanticipated; social actions are not context-free but are constrained, and their outcomes are shaped by the setting in which they occur. Especially significant are the constraints on action that arise from commitments enforced by institutionalization. Because organizations are social systems, goals and procedures tend to achieve an established, value impregnated status. We say that they become institutionalized."

"An organization is a group of living human beings. The formal or official design for living never completely accounts for what the participants do. It is always supplemented by what is called the “informal structure,” which arises as the individual brings into play his own personality, his special problems and interests. Formal relations co-ordinate roles or specialized activities, not persons."

"To institutionalize is to infuse with value beyond the technical requirements of the task at hand. The prizing of social machinery beyond its technical role is largely a reflection of the unique way in which it fulfills personal or group needs. Whenever individuals become attached to an organization or a way of doing things as persons rather than as technicians, the result is a prizing of the device for its own sake. From the standpoint of the committed person, the organization is changed from an expendable tool into a valued source of personal satisfaction."

"The institutional leader, then, is primarily an expert in the promotion and protection of values."

"The relations outlined on an organization chart provide a framework within which fuller and more spontaneous human behavior takes place. The formal system may draw upon that behavior for added strength; it will in its turn be subordinated to personal and group egotism."

"Institutionalization is a process. It is something that happens to an organization over time, reflecting the organization’s own distinctive history, the people who have been in it, the groups it embodies and the vested interests they have created, and the way it has adapted to its environment."

"The term “leadership” connotes critical experience rather than routine practice."

"It has been well said that the effective leader must know the meaning and master the techniques of the educator."

"The art of the creative leader is the art of institution building, the reworking of human and technological materials to fashion an organism that embodies new and enduring values."

"Selznick's early fascination was the paradox that organizations are created for rational action, but that they never quite succeed in conquering non-rational elements of organizational behavior because they are "inescapably embedded in an institutional matrix" (Selznick, 1948, p. 25)."

"If you understand the technical work of a business, you understand a business that does that technical work."

"The difference between great people and everyone else is that great people create their lives actively, while everyone else is created by their lives, passively waiting to see where life takes them next."

"I see an entrepreneur as the chief designer of a business that works better than any other."

"The greatest business people I've met are determined to get it right no matter what the cost."

"Contrary to popular belief, my experience has shown me that the people who are exceptionally good in business aren't so because of what they know but because of their insatiable need to know more."

"Rather than being their greatest single asset, knowing to do the technical (professional) work of the business becomes their greatest single liability."

"Great people have a vision of their lives that they practice emulating each and every day. They go to work on their lives, not just in their lives."

"We humans are truly marvelous, adaptable creatures, products of an exciting and inspiring — even though often dangerous — evolutionary story, a story to be celebrated with conviction and enthusiasm even as we move on to new challenges."

"Humans have evolved a leadership brain. Good leaders are people with a conscience who respect and reward all the four drives of other stakeholders [the drive to acquire, to defend, to bond, and to comprehend], even as they respect and reward their own drives."

"This is a comparative study of six organizations operating in the same industrial environment. The subsystems (sales, research, and production) in each organization were differentiated from each other in terms of subsystem formal structures, the member's goal orientation, member's time orientations and member's interpersonal orientations. This differentiation was related to the requirements of the particular subenvironment with which each subsystem dealt. A relationship was found between the extent to which the states of differentiation and integration in each organization met the requirements of the environment and the relative economic performance of the organizations."

"CONSIDERABLE attention has recently been devoted to understanding behavior in large organizational systems. Although some of this work has been based on research, it has more typically been general theorizing with little support from research data. Our interest in examining complex organizations is to study more systematically and empirically their internal functioning in relation to the demands of the external environment on the organization and the ability of the organization to cope effectively with these demands, contributing to a theory of the functioning of large organizations based on empirical research."

"March and Simon's work reflects a key concern with the issue of inducing contributions from organizational members and emphasizes rationality in organizations. The writing of Likert and McGregor reflects a central interest in organizational arrangements for releasing the underutilized energy of individual members. Argyris' work emphasizes the impact of the organization on individual development. All of these writers tend to start with the individual as the basic unit of analysis and build toward the large organization, while we are proposing to start with larger, sociological entities- the entire organization and its larger subsystems."

"The state of segmentation of the organizational system into subsystems, each of which tends to develop particular attributes in relation to the requirements posed by its relevant external environment. Differentiation, as used here, includes the behavioral attributes of members of organizational subsystems."

"[Integration is defined as] the process of achieving unity of effort among the various subsystems in the accomplishment of the organization's task."

"Orientation of members toward others [is] a cognitive and affective orientation toward the objects of work, which is manifested in a person's interpersonal style."

"The act of segmenting the organization into departments would influence the behavior of organizational members in several ways. The members of each unit would become specialists in dealing with the particular tasks. Both because of their prior education and experience and because of the nature of their task, they would develop specialized working styles and mental processes."

"By differentiation we mean the differences in cognitive and emotional orientation among managers in different units and the differences in formal structure among units."

"The quality of the state of collaboration that exist among organizations that is required to achieve unity of effort by the demands of the environment."

"By integration we mean the process of achieving unity of effort among the various subsystems in the accomplishment of the organization's tasks."

"Sales personnel in all six organizations indicated a primary concern with customer problems, competitive activities, and other events in the marketplace. Manufacturing personnel were all primarily interested in problems of cost reduction, process efficiency, and similar matters."

"Other things being equal, differentiation and integration are essentially antagonistic, and that one can be obtained only at the expense of the other."

"To deal with the much-discussed but still poorly understood complex of economic affairs known as globalization, we must examine its several forms from a Renewed Darwinian Theory point of view. Some can have positive effects for all parties while others inherently benefit the rich and strong at the expense of the poor and weak. Furthermore, some can be beneficial but also lend themselves to abuse, especially by people without a conscience, and therefore call for some kind of world-level impulse/check/balance control."

"The positive and negative consequences of the various kinds of globalization and of economic growth versus economic stagnation are consistent with the Renewed Darwinism Theory's proposition that one's sense of dA fulfillment is relative to that of other people to whom one compares oneself. The innate insatiable drive to acquire cannot be fulfilled, even by a steady increase in wealth, if one is steadily falling behind others. This may be illogical—a Porsche is a Porsche, no matter what's parked in the driveway next door—but it is the way our minds have evolved to work."

"Globalization need not work this way. Its benefits can be steered to all nations and to all levels in each nation in a more equitable manner. But a free-market, laissez-faire process will not do this automatically. It will require governmental regulatory action with guidelines and incentives that can best be established at the world level."

"Humans will probably always need the help of especially gifted moral leaders in order to extend the bonds of caring and trust beyond the easy range of the family and the face-to-face community. Such bonds have become essential to the future of humanity."

"Paul R. Lawrence [was] a renowned sociologist and a pivotal figure in the intellectual history of who was one of the world's most influential and prolific scholars in the field of organizational behavior."

"When a firm chooses to allocate its most valuable resources away from clients and to young stars, the economic consequences are real and visible."

"I think a lot more decisions are made on serendipity than people think. Things come across their radar screens and they jump at them."

"Most of the time when these things go public... private-equity firms want to get the hell out of there. They want to monetize their investment and get their guys off the board, because they don't want to be caught in a conflict of interest."

"Because the activists usually cash out their holdings shortly after their demands are accepted or rejected, the question remains whether most of them are committed to companies’ future success. The risk is significant that their initiatives can weaken a company’s competitive position, to the detriment of long-term shareholders, and the high-leverage financing structures they often propose may put companies in jeopardy in the event of an economic downturn."

"Paul Lawrence and Jay Lorsch, pioneers in contingency theory of organizations, acknowledge that their notions are really an outgrowth of systems theory."

"Documents and records can seldom be taken for what they purport to be. They are not neutral and objective accounts of organizational purposes and activities but reflect the biases and interests of those who compile and use them. To take at face value reports of such complex and sensitive matters as costs, productivity, or hiring priorities is naive."

"Contingency theory is guided by the general orienting hypothesis that organizations whose internal features best match the demands of their environments will achieve the best adaptation."

"Institutions consist of cognitive, normative and regulative structures and activities that provide stability and meaning to social behaviour. Institutions are transported by various carriers – cultures, structures, and routines – and they operate at multiple levels of jurisdiction."

"Institutions are social structures that have attained a high degree of resilience. [They] are composed of cultural-cognitive, normative, and regulative elements that, together with associated activities and resources, provide stability and meaning to social life. Institutions are transmitted by various types of carriers, including symbolic systems, relational systems, routines, and artifacts. Institutions operate at different levels of jurisdiction, from the world system to localized interpersonal relationships. Institutions by definition connote stability but are subject to change processes, both incremental and discontinuous."

"Paul Lawrence and Jay Lorsch (1967), who coined the label “contingency theory,” argue that different environments place differing requirements on organizations: specifically, environments characterized by uncertainty and rapid rates of change in market conditions or technologies present different challenges—both constraints and opportunities—to organizations than do placid and stable environments"

"Different subunits within an organization may confront different external demands. To cope with these various environments, organizations create specialized subunits with differing structural features. For example, some subunits may exhibit higher levels of formalization than others; some may be more centralized in decision making; some may be oriented to longer planning horizons. The more varied the types of environments confronted by an organization, the more differentiated its structure needs to be."

"Organizations play a leading role in our modern world. Their presence affects - some would insist that the proper term us infects - virtually every sector of contemporary social life. This book is about organizations – what they are and what they do, how they have changed, and how people have thought about them and studied them."

"If people in the organization don't understand how a company is supposed to be different, how it creates value compared to its rivals, then how can they possibly make all of the myriad choices they have to make? Every salesman has to know the strategy — otherwise, he won't know who to call on. Every engineer has to understand it, or she won't know what to build."

"The best CEOs I know are teachers, and at the core of what they teach is strategy."

"The essence of formulating strategy is relating a company to its environment."

"Low cost relative to competitors becomes the theme running through the entire strategy, though quality, service and other areas cannot be ignored."

"The firm achieving focus may also potentially earn above-average returns for its industry. Its focus means that the firm either has a low cost position with its strategic target, high differentiation, or both."

"The grandfather of concepts for predicting the probable course of industry evolution is the familiar ."

"Early entry is appropriate when the following general circumstances hold:"

"Quasi-integration is to use debt or equity investments and other means to create alliances between vertically related firms without full ownership."

"The essential complement to the path-breaking book Competitive Strategy, Michael E. Porter’s Competitive Advantage explores the underpinnings of competitive advantage in the individual firm. Competitive Advantage introduces a whole new way of understanding what a firm does. Porter’s groundbreaking concept of the value chain disaggregates a company into “activities,” or the discrete functions or processes that represent the elemental building blocks of competitive advantage."

"The essence of strategy is choosing what not to do."

"There's a fundamental distinction between strategy and operational effectiveness. Strategy is about making choices, trade-offs; it's about deliberately choosing to be different. Operational effectiveness is about things that you really shouldn't have to make choices on; it's about what's good for everybody and about what every business should be doing."

"The success of a strategy depends on doing many things well – not just a few – and integrating among them."

"Business strategy probably predates Michael Porter. Probably. But today, it is hard to imagine confronting the discipline without reckoning with the Harvard Business School professor, perhaps the world's best-known business academic. His first book, Competitive Strategy: Techniques for Analyzing Industries and Competitors (Free Press, 1980), is in its 53rd printing and has been translated into 17 languages. For years, excerpts from that and other Porter works have been required reading in "Competition and Strategy," the first-year course that every Harvard MBA student must take. Porter's strategy frameworks have suffered some ambivalence over the years in academic circles — yet they have proved wildly compelling among business leaders around the world."

"When you read what’s in the World Economic Forum Competitiveness Yearbooks, you think this is just sort simplistic, arbitrary and vague. Nevertheless, these are also comfort blankets for high-level executives, it gives them what they need, hence commanding such fees. So if I am a bit scornful it is only because people like Michael Porter are manifestly and deliberately in the business of over-simplification. He did it for Ronald Regan in the mid-80s, he’s been doing it for corporations since the 70s, and he’s been doing it ever since. He produces methodological tools through which the world gets governed... Whereas Hayek sought to remind us that the world cannot be easily reduced to a set of simple facts, Porter has built his career on seeking to demonstrate precisely the opposite."

"The things which concerned him more than anything else were the what and the why--the what because he felt it was necessary to know absolutely what you were questioning and what you were doing or what concerned you, and then the why, the depth type of thinking which showed you the reason for doing the thing and would perhaps indicate clearly whether you should maintain what was being done or should change what was being done."

"Psychology of Management, as here used, means, the effect of the mind that is directing work upon that work which is directed, and the effect of this undirected and directed work upon the mind of the worker."

"... what is there in the subject of psychology to demand the attention of the manager?"

"Of what value is the study of management?"

"Management practitioners today largely ignore Frank and Lillian Gilbreth, possibly because the principles of motion study they pioneered are now very unfashionable. Motion study entailed the detailed examination of the movements individual workers made in the process of carrying out their work. It was, however, just one of the concepts the Gilbreths developed. Through Frank's concerns that the efficiency of employees should be balanced by an economy of effort and a minimisation of stress, and Lillian's interest in the psychology of management, their work laid the foundations for the development of the modern concepts of job simplification, meaningful work standards and incentive wage plans."

"One of the undesirable by-products of the factory system was the frequent abuse of unskilled workers, including children, who were often subjected to unhealthy working conditions, long hours, and low pay. The appalling conditions spurred a national anti-factory campaign. Led by Mary Parker Follett and Lillian Gilbreth, the campaign gave rise to the “human relations movement" advocating more humane working. Among other things, the human relations movement provided a more complex and realistic understanding of workers as people, instead of merely cogs in a factory machine."

"Marketing management is the analysis, planning, implementation, and control of programs designed to create, build, and maintain beneficial exchanges with target buyers for the purpose of achieving organizational objectives."

"The sales department isn't the whole company, but the whole company had better be the sales department."

"The art of marketing is largely the art of brand building. When something is not a brand, it will be probably be viewed as a commodity."

"Good companies will meet needs; great companies will create markets."

"The organization's marketing task is to determine the needs, wants and interests of target markets and to achieve the desired results more effectively and efficiently than competitors, in a way that preserves or enhances the consumer's or society's well-being."

"Is marketing management an art or a science? Some marketing observers maintain that good marketing is more of an art and does not lend itself to rigorous analysis and deliberation. Others strongly disagree and contend that marketing management is a highly disciplined enterprise that has much in common with other business disciplines."

"No company in its right mind tries to sell to everyone. Gillette does not try to sell razor blades to preteens, and Kimberly-Clark doesn't try to sell its Huggies to childless families. A savvy steel company doesn't try to sell steel to every steel-using company."

"Authentic marketing is not the art of selling what you make but knowing what to make! It is the art of identifying and understanding customer needs and creating solutions that deliver satisfaction to the customers, profits to the producers, and benefits for the stakeholders. Market innovation is gained by creating customer satisfaction through product innovation, product quality, and customer service. It these are absent, no amount of advertising, sales promotion, or salesmanship can compensate."

"Marketing is not the art of finding clever ways to dispose of what you make. It is the art of creating genuine customer value. It is the art of helping your customers become better of."

"Good mission statements focus on a limited number of goals, stress the company’s major policies and values, and define the company’s major competitive scopes. These include:"

"The good news is that marketing takes a day to learn. The bad news is that it takes a lifetime to master!"

"Companies pay too much attention to the cost of doing something. They should worry more about the cost of not doing it."

"First, he has done more than any other writer or scholar to promote the importance of marketing, transforming it from a peripheral activity, bolted on to the more "important" work of production. Second, he continued a trend started by Peter Drucker, shifting emphasis away from price and distribution to a greater focus on meeting customers' needs and on the benefits received from a product or service. Third, he has broadened the concept of marketing from mere selling to a more general process of communication and exchange, and has shown how marketing can be extended and applied to charities, political parties and many other non-commercial situations."

"Most of us understand that innovation is enormously important. It's the only insurance against irrelevance. It's the only guarantee of long-term customer loyalty. It's the only strategy for out-performing a dismal economy."

"A noble purpose inspires sacrifice, stimulates innovation, and encourages perseverance. In so doing, it transforms great talent into exceptional accomplishment."

"The most powerful way to prevail in global competition is still invisible to many companies. During the 1980s, top executives were judged on their ability to restructure, declutter, and delayer their corporations. In the 1990s, they'll be judged on their ability to identify, cultivate, and exploit the core competencies that make growth possible - indeed, they'll have to rethink the concept of the corporation itself."

"In the long run, competitiveness derives from an ability to build, at lower cost and more speedily than competitors, the core competencies that spawn unanticipated products."

"is communication, involvement, and a deep commitment to working across organizational boundaries."

"A company surrenders today's businesses when it gets smaller faster than it gets better. A company surrenders tomorrow's businesses when it gets better without getting different."

"Whatever market a company might dominate today, it is likely to change substantially over the next ten years. There's no such thing as "sustaining" leadership; it must be reinvented again and again."

"Only after Southwest Airlines became the most profitable airline in America did United and American challenge their long-held assumptions about how to compete. At worst, laggards follow the path of greatest familiarity. Challengers, on the other hand, follow the path of greatest opportunity, wherever it leads."

"Acquired through business schools and other educational experiences and from consultants and management gurus, absorbed from peers and the business press, and formed out of career experiences, a manager's genetic coding establishes the range and likelihood of responses in particular situations.... All of us are prisoners, to one degree or another, of our experience."

"If a top management team cannot clearly articulate the five or six fundamental industry trends that most threaten its firm's continued success, it is not in control of the firm's destiny."

"Our fifth premise is that the resource allocation task of top management has received too much attention when compared to the task of resource leverage."

"New business concepts are always, always the product of lucky foresight... The essential insight doesn't come out of any dirigiste planning process; it comes form some cocktail of happenstance, desire, curiosity, ambition and need. But at the end of the day, there has to be a degree of foresight -- a sense of where new riches lie. So radical innovation is always one part fortuity and one part clearheaded vision."

"Resilience is based on the ability to embrace the extremes—while not becoming an extremist. Most companies don't do paradox very well."

"All too often, a successful new business model becomes the business model for companies not creative enough to invent their own."

"Hamel's contributions to management thinking are found in the well-attended lectures he gives around the world each year, as well as in his publications. These include numerous articles, some of which have won awards, and books such as Competing for the Future (1995) (written with C. K. Prahalad), and Leading the Revolution (2002). His style is deliberately anecdotal, illustrating points with clear examples."

"Managers today come up against a few more communication barriers. One is the pressure of time. Listening carefully takes time, and managers have little of that to spare. In today’s business culture especially, with its emphasis on speed, already pressed managers may give short shrift to the slower art of one-on-one communication."

"The Hawthorne researchers became more and more interested in the informal employee groups which tend to form within the formal organisation of the Company, and which are not likely to be represented in the organisation chart. They became interested in the beliefs and creeds which have the effect of making each individual feel an integral part of the group and which make the group appear as a single unit, in the social codes and norms of behaviour by means of which employees automatically work together in a group without any conscious choice as to whether they will or will not co-operate. They studied the important social functions these groups perform for their members, the histories of these informal work groups, how they spontaneously appear, how they tend to perpetuate themselves, multiply, and disappear, how they are in constant jeopardy from technical change, and hence how they tend to resist innovation."

"That any social solidarity did develop in this heterogeneous group, was astonishing, and showed what could be accomplished through segregating workers into small compact groups."

"According to our analysis the uniformity of behaviour manifested by these groups was the outcome of a disparity in the rates of change possible in the technical organisation, on the one hand, and in the social organisation, on the other. The social sentiments and customs of work of the employees were unable to accommodate themselves to the rapid technical innovations introduced. The result was to incite a blind resistance to all innovations and to provoke the formation of a social organisation at a lower level in opposition to the technical organisation."

"In the 1920s Elton Mayo, a professor of Industrial Management at Harvard Business School, and his protégé Fritz J. Roethlisberger led a landmark study of worker behavior at Western Electric, the manufacturing arm of AT&T. Unprecedented in scale and scope, the nine-year study took place at the massive Hawthorne Works plant outside of Chicago and generated a mountain of documents, from hourly performance charts to interviews with thousands of employees."

"Future leaders will be less concerned with saying what they will deliver and more concerned with delivering what they have said they would."

"HR professionals help turn aspirations into actions by focusing on three things:"

"The responsibility for leaders developing results-based leaders is shared. Current leaders who are senior managers have the ultimate challenge of preparing a next generation of leaders, every one of whom should be more capable than themselves."

"Competencies can be communicated — and therefore can be taught and learned."

"Nowadays, HR professionals play three roles: • Storyteller • Strategy interpreter • Strategic facilitator"

"The best learners are also teachers."

"Dave Ulrich studies how organizations build capabilities of leadership, speed, learning, accountability, and talent through leveraging human resources. He has helped generate award winning data bases that assess alignment between strategies, organization capabilities, HR practices, HR competencies, and customer and investor results."

"This is not an age of castles, moats, and armor, where people can sustain a competitive advantage for very long. This is an age that calls for cunning, speed, and enterprise."

"From microchips to corn chips, software to soft drinks, and packaged goods to package delivery services, executives have watched the intensity and type of competition in their industries shift during the last few years. Industries have changed from slow moving, stable oligopolies to environments, characterized by intense and rapid competitive moves, in which competitors strike quickly with unexpected, unconventional means of competing. They now confront “hypercompetitors” who continuously generate new competitive advantages that destroy, make obsolete, or neutralize the industry leader’s advantages, leaving the industry in disequilibrium and disarray."

"It has become clear from the rumblings and soul-searching in the field of competitive strategy that a revolution is brewing. Managers and strategy researchers are discovering that existing models of strategy are nearly obsolete in the intensity of today's fast-paced competition. Some have called for a more dynamic approach, even questioning the sustainability of competitive advantage in this new environment. But so far, this revolution-waiting-to-happen has had no leader. Now it has."

"Hypercompetition is an environment of intense change, in which flexible, aggressive, innovative competitors move into markets easily and rapidly, eroding the advantages of the large and established players."

"t has become clear from the rumblings and soul-searching in the field of competitive strategy that a revolution is brewing. Managers and strategy researchers are"

"Disruption is his favourite word. He offers a vision for disruption, competences and tactics for disruption. Using compelling examples from hot-sauce wars to computer skirmishes, he makes it clear there's no place to hide from this new world order. Thence his relentless attack on the static bias of most strategic thinking, such as McKinsey's 7-S business model (strategy, structure, systems and so on, of which I was co-inventor in 1978)"

"Mr. D'Aveni argues that competitive advantage is no longer sustainable over the long haul. Advantage, instead, is continually created, eroded, destroyed and recreated through strategic maneuvering."

"Management as an activity has always existed to make people’s desires through organized effort. Management facilitates the efforts of people in organized groups and arises when people seek to cooperate to achieve goals."

"Th[e] uniqueness [of the role of dean] stems from an absence of objective and immediate measures of performance combined with arcane governance procedures that may permit some deans to hold office for years without being confronted by those who disagree with their judgments..."

"Organizations have been viewed from many perspectives. Depending upon the background and interests of the investigators, the dimensions and characteristics of organizations that are emphasized vary greatly. However, there does appear to be some agreement about the fact that organizations generally develop as instruments for attaining specific goals, and that they are likely to emerge in situations where people recognize a common or complementary advantage that can best be served through collective, as opposed to individual, action."

"Several features or attributes of organizations can therefore be recognized"

"While numerous studies have dealt with the nature of organization-environment relations, the first major attempt to identify the types of organizational structure and managerial practice that are appropriate for different environmental conditions was conducted by Burns and Stalker, who studied twenty manufacturing firms in England and Scotland. Of these, fifteen were in the electronics industry, four were in research and development, and one was a major manufacturer. The particular environmental conditions examined were the rates of change in the scientific technology and the relevant product markets of the firms being studied."

"It is the big enterprises which occupy the strategic centers. Most small businessmen, independents, professionals and even farmers gain their livelihood largely as suppliers or as distributors for the large enterprises. It is the large enterprises which establish the price and wage policies of the nation. The pattern of union-management relations is set by the contracts drawn between big labor and big business. Governmental regulations grow up to harness and channel the economic power and practice of large enterprise. The personnel policies adopted by the large industry become the models for the entire industrial society."

"faces a renaissance if the leaves of social change can be read correctly. The permissive freedom of the 1960s and 1970s is being curtailed by some harsh economic realities. Parents and students alike are seeking the economic promise of job guarantees when the students graduate. Liberal arts education is on the defensive. Such training must demonstrate it has vocational opportunity or can be converted to such opportunity by postgraduate training. Sociologists who have had the freedom to do their own thing for 20 to 30 years are being forced to make some agonizing appraisals. The entire field of sociology has been placed under scrutiny. The drastic cuts in research funding are only one index of the governmental depreciation of sociology and most other social sciences. The loss of sociology majors and enrollments is another index of student and parental lack of confidence in sociology as a good investment. Academic sociologists who have placed applied sociology in a second-rate category are beginning to recognize that research training of graduate students must turn to applied training or jobs will not be available for many, if not most, of their graduate students. In a similar manner, research funding and graduate fellowships will not be available unless this change is made."

"I find myself in complete agreement with Delbert Miller's argument that industrial sociology needs to be reestablished as a separate discipline-separate, that is, from organizational sociology, sociology of occupations, sociology of work, etc."

"As Miller and Form (1951) have suggested, the beginnings of industrial sociology as a specialized field within sociology can be traced to the Hawthorne experiments that took place at the Western Electric Company in Chicago between 1924 and 1927. Industrialization, which already had taken firm hold across Western society by the early 1900s, had given rise to a unique social form known as the bureaucracy or formal organization. Max Weber put organizational study "on the map," as it were, and by the time of his death in 1920 his work had laid the groundwork for the development of a full-blown research and theory agenda in bureaucracy and formal organization."

"One can avoid misinterpreting information or jumping to false conclusions by cross checking important pieces of information through other methods of data collection. For example, if a questionnaire indicates major problems around supervision in one department, it may be useful to interview some supervisors and nonsupervisory personnel in the specific department for more detailed information. It also may be valuable to spend some time in the department observing the interactions between supervisors and subordinates. The most effective data collection strategy, therefore, is one that uses multiple measures and multiple methods of data collection. It is by combining data from interviews, questionnaires, observations, and archival sources that the consultant is able to triangulate and thus discard the data that may be distorted or biased."

"When a broad and significant change occurs in the organization, the first question many people ask is “What's in it for me?” or “What's going to happen to me? This is an indication of the anxiety that occurs when people are faced with the uncertainty associated with organizational change."

"Concepts of uncertainty and information processing are used to integrate the diverse organization design/structure literatures. This approach more fully explicates the concept of congruence which lies at the heart of contingency ideas. The review suggests a contingency approach to design which develops a feasible set of structural alternatives from which the organization can choose."

"[Information processing is] the gathering, interpreting and synthesis of information in the context of organisational decision making."

"Organization structure must perform the major functions of facilitating the collection of information from external areas as well as permitting effective processing of information within and between subunits which make up the organization."

"[Synchronization increases the] opportunity for feedback and error correction and synthesis of different points of view."

"I’m fascinated by cross-level relationships: the influences between and among individuals, organizations, and society really engage me. And as romantic as it may sound, I think we are all called to try to leave the world a better place. The desire to better understand these cross-level relationships, done with a clear eye on enhancing our well-being, animates nearly everything I do."

"The extant representations of the concept of organizational memory are fragmented and underdeveloped. In developing a more coherent theory, we address possible concerns about anthropomorphism; define organizational memory and elaborate on its structure; and discuss the processes of information acquisition, retention, and retrieval. Next, these processes undergird a discussion of how organizational memory can be used, misused, or abused in the management of organizations."

"The construct of Organizational Memory is composed of the structure of its retention facility, the information contained in it, the processes of information acquisition and retrieval, and its consequential effects. In its most basic sense, organizational memory refers to stored information from an organization's history that can be brought to bear on present decisions. This information is stored as a consequence of implementing decisions to which they refer, by individual recollections, and through shared interpretations."

"[ Organizational culture comprises the way of] thinking and feeling about problems that is transmitted to members in the organization."

"Despite the general use of the term organizational memory, it is not clear that we have understood the concept or its implications for the management of organizations. To date, a myriad of unexamined conjectures has defined a concept that has even served as a basis for prescriptive management advice."

"Looking at the business corporation through something other than the eyes of its equity holders has inspired great efforts to translate that intuitive appeal into a theory... The promise of stakeholder theory to offer a cogent alternative to the economic account of the firm, however, is impeded by a set of assumptions designed to accommodate economic considerations."

"A preoccupation with instrumental consequences renders a theory that accommodates economic premises yet sidesteps the underlying tensions between the social and economic imperatives that confront organisations. Such a theory risks omitting the pressing descriptive and normative questions raised by these tensions, which, when explored, might hold great promise for a new theory and even for addressing practical management challenges."

"Organizational memory is fundamentally important to organizational learning. The seminal work on organizational memory is Walsh and Ungson’s article published in the Academy of Management Review in 1991"

"Webster defines profit as excess of value over cost, and gain as that which is obtained as an advantage. I have availed of this well-expressed though delicate distinction between the two terms, to coin a name for the system herein described, whereby to differentiate it from profit-sharing as ordinarily understood and practised. The right solution of this problem will manifestly consist in allotting to each member of the organization an interest in that portion of the profit fund which is or may be affected by his individual efforts or skill, and in protecting this interest against diminution resulting from the errors of others or other extraneous causes not under his control. Such a solution, while not simple, is attainable under many circumstances, and attainable by methods which experience has shown to be both practical and successful."

"Executives must have a practical knowledge of how to observe, record, analyze and compare essential facts in relation to... all... that enters into or affects the economy of production, the costs of the product."

"We conceive the prominent element in present-day industrial management to be: the mental attitude that consciously applies the transference of skill to all the activities of industry. Here emphasis is placed upon the word all, for the restricted application of this principle to machines and tools has been highly developed for a long period. But its conscious application in a broad way to the production departments, and particularly to the workmen, we believe has been made during the last quarter of a century."

"Among the names of those who have led the great advance of the industrial arts during the past thirty years, that of Frederick Winslow Taylor will hold an increasingly high place. Others have led in electrical development, in the steel industry, in industrial chemistry, in railroad equipment, in the textile arts, and in many other fields, but he has been the creator of a new science, which underlies and will benefit all of these others by greatly increasing their efficiency and augmenting their productivity. In addition, he has literally forged a new tool for the metal trades, which has doubled, or even trebled, the productive capacity of nearly all metal-cutting machines. Either achievement would entitle him to high rank among the notable men of his day; — the two combined give him an assured place among the world's leaders in the industrial arts."

"The monogram of our national initials, which is the symbol for our monetary unit, the dollar, is almost as frequently conjoined to the figures of an engineer's calculations as are the symbols indicating feet, minutes, pounds, or gallons. The final issue of his work, in probably a majority of cases, resolves itself into a question of dollars and cents, of relative or absolute values. This statement, while true in regard to the work of all engineers, applies particularly to that of the mechanical engineer, for the reason that his functions, more frequently than in the case of others, include the executive duties of organizing and superintending the operations of industrial establishments, and of directing the labor of the artisans whose organized efforts yield the fruition of his work."

"To insure the best results, the organization of productive labor must be directed and controlled by persons having not only good executive ability, and possessing the practical familiarity of a mechanic or engineer with the goods produced and the processes employed, but having also, and equally, a practical knowledge of how to observe, record, analyze and compare essential facts in relation to wages, supplies, expense accounts, and all else that enters into or affects the economy of production and the cost of the product. There are many good mechanical engineers; — there are also many good " businessmen ;"— but the two are rarely combined in one person. But this combination of qualities, together with at least some skill as an accountant, either in one person or more, is essential to the successful management of industrial works, and has its highest effectiveness if united in one person, who is thus qualified to supervise, either personally or through assistants, the operations of all departments of a business, and to subordinate each to the harmonious development of the whole."

"Engineering has long been conceded a place as one of the modern arts, and has become a well-defined science, with a large and growing literature of its own, and of late years has subdivided itself into numerous and distinct divisions, one of which is that of mechanical engineering. It will probably not be disputed that the matter of shop management is of equal importance with that of engineering, as affecting the successful conduct of most, if not all, of our great industrial establishments, and that the management of works has become a matter of such great and far-reaching importance as perhaps to justify its classification also as one of the modern arts."

"As an engineer by training and practice, and as a manufacturer having upwards of thirty-five years of practical experience in industrial management in many phases, I avail myself with pleasure of this opportunity of meeting this large body of students who are preparing themselves for active work in the world, and of submitting for your consideration some suggestions concerning your future work, especially in the field with which I am most familiar and in which some of you, I feel sure, will find your best opportunities, and which will form the topic of my argument, namely, Industrial Engineering"

"The dollar is the final term in almost every equation which arises in the practice of engineering in any or all of its branches, except qualifiedly as to military and naval engineering, where in some cases cost may be ignored. In other words, the true function of the engineer is, or should be, not only to determine how physical problems may be solved, but also how they may be solved most economically. For example, a railroad may have to be carried over a gorge or arroyo. Obviously it does not need an engineer to point out that this may be done by filling the chasm with earth, but only a bridge engineer is competent to determine whether it is cheaper to do this or to bridge it, and to design the bridge which will safely and most cheaply serve, the cost of which should be compared with that of an earth fill. Therefore the engineer is, by the nature of his vocation an economist. His function is not only to design, but also so to design as to ensure the best economical result. He who designs an unsafe structure or an inoperative machine is a bad engineer; he who designs them so that they are safe and operative, but needlessly expensive, is a poor engineer, and, it may be remarked, usually earns poor pay; he who designs good work, which can be executed at a fair cost, is a sound and usually a successful engineer; he who does the best work at the lowest cost sooner or later stands at the top of his profession, and usually has the reward which this implies."

"The Engineer is one who, in the world of physics and applied sciences, begets new things, or adapts old things to new and better uses; above all, one who, in that field, attains new results in the best way and at lowest cost."

"Afternoon Session, Wednesday, May 26th."

"Henry R. Towne is unquestionably the pioneer of management science. He began, as early as 1870, the systematic application at the Yale & Towne works, of what are now recognized as efficient management methods. In 1886, his paper "The Engineer as Economist," delivered before the American Society of Mechanical Engineers, probably inspired Frederick W. Taylor, then a young man of twenty, to devote his energies to the labor that formed his life work."

"Improvements in the prevailing methods of work and organization during this era were principally initiated by men actively engaged in industrial enterprises. The person most often referred to as the first to propose a rational and systematic science of management (and hence organization) was Henry R. Towne (1844-1924), president of the Yale and Towne Manufacturing Company, who in 1886 presented a paper titled "The Engineer as Economist." His comments, delivered at a meeting of the (ASME), stressed the importance of management as a field of independent study, equal to that of engineering. Noting the almost complete lack of management literature, the virtual absence of a medium for the exchange of administrative ideas and experience, and the total absence of management associations, Towne urged that ASME serve as a center for the development and study of industrial management. Such a suggestion was considered nothing less than revolutionary."

"Students are here not for service or for culture, but for the selfish end of preparing for salary to come. Constantly I hear them asking, 'If I change over to your course, what kind of a job will it help me to get when I graduate?' Students are weighing every subject they take on the scales of jobs to come."

"It is the business of the production engineer to know every single item that constitutes his finished product, and every step involved in the handling of every piece. He must know what is the most advantageous manufacturing quantity of every single item so as to secure uniformity of flow as well as economy of manufacture. He must know how long each step ought to take under the best attainable working conditions. He must be able to tell at any time the exact condition as regards quantity and state of finishedness of every part involved in his manufacturing process."

"The engineer must be able not only to design, but to execute. A draftsman may be able to design, but unless he is able to execute his designs to successful operation he cannot be classed as an engineer. The production engineer must be able to execute his work as he has planned it. This requires two qualifications in addition to technical engineering ability: He must know men, and he must have creative ability in applying good statistical, accounting, and " system" methods to any particular production work he may undertake."

"With regard to men, he must know how to stimulate ambition, how to exercise discipline with firmness, and at the same time with sufficient kindness to insure the good-will and cooperation of all. The more thoroughly he is versed in questions of economics and sociology, the better prepared will he be to meet the problems that will daily confront him. As economic production depends not only on equipment and plant, but on the psychological effect of wage systems, he must be able to discriminate in regard to which wage system is best applicable to certain classes of product."

"A manufacturing organization being a live, human thing, is like a municipality. Many of our shops are as fruitful fields for riddance of graft as are many of our cities. The graft in the shop consists mostly in the distortion of the managing and planning body into a wire-pulling and influence machine with easy berths filled by incompetents or idlers. This condition often exists not because of any intentional desire to be disloyal on the part of the employees, but simply on account of the work being allowed to drift without systematic attention to departmental organization."

"The Methods of Industrial Management. — A committee of the American Society of Mechanical Engineers made an extensive canvass in the fall of 1912 to determine what were the new elements in modern management as well as what the committee designated as the regulative principles of industrial management. The committee confirmed Adam Smith's statement made in 1776 in his Wealth of Nations, in which he held that the application of the principle of division of labor was the basis of manufacture. The committee also agreed with Charles Babbage, who in his work entitled Economy of Machinery and Manufacture written in 1832, added another principle, namely the transference of skill."

"The prominent element in present-day industrial management to be: the mental attitude that consciously applies the transference of skill to all the activities of industry."

"The regulative principles of management along scientific lines include four important elements:"

"Besides being in the forefront of the movement to add managerial training to the engineering curriculum, Diemer was among the first American educators to propose that manual technical skills (carpentry, metalworking, and the like) be taught in high schools and in special secondary institutions comparable to modern vocational-technical schools. He recognized that Penn State, with its long-standing two-year course in mechanic arts and its well-equipped shops, was in an ideal position to produce teachers for these manual training classes. With Dean Jackson's blessing, the Department of Industrial Engineering took over supervision of mechanic arts and renamed it the industrial education course. Seniors had the opportunity to do practice teaching in those few Pennsylvania high schools already equipped for shop instruction."

"The new industrial methods have greatly accelerated certain tendencies that had already manifested themselves in the old domestic factories and some of these deserve more than passing notice as they are affecting not only productive processes but our social organization as well. Perhaps the most important of these influences are those that tend toward"

"The underlying principle of specialization is division of labor; but the term division of labor has become associated with the individual worker, whereas specialization is, in general, far reaching in its effects, and influences industrial enterprises of all kinds."

"Specialization, as has been noted, is the confining of human activity to a limited field. In industrial work this means the limitation of an enterprise to a portion of the field and to the production of a limited line of products. But even when the line of products is limited, there are usually many types that are possible in that line and an infinite number of sizes of any one type. Thus suppose a manufacturer specializes in the manufacture of men's shoes. Here there is no limit to the types that may be produced and no limit to the number of sizes of any type since no two feet are exactly alike. Again a manufacturer may specialize on the production of motors between the sizes, say, of one-half horse-power and twenty horse-power. Here again many types are possible and an infinite number of sizes for each type. But it has been shown that one of the essentials of cheap production is quantity, and for a given total output the greatest number of each element entering into the product is secured when the numbers of types and sizes are a minimum."

"By standardization is meant the reduction of any one line to fixed types and sizes. Thus in the case of the manufacturer of shoes he selects a few types that, in his opinion, will find favor in the market. But each foot is not measured and a shoe of the required type made to these measurements. A limited number of sizes of each type is manufactured, these sizes being selected, by previous experience, so that any average man can find a pair that will fit him. The same holds true for the case of electric motors discussed above, and in fact for the entire field of manufactured products."

"There is another and very important ground for standardization and that is the desirability of having parts interchangeable. Standards of exchange have long been in general use, and these have, most usually, been fixed with a view to convenient use rather than on a scientific basis. The units of weight and measure are examples of this form of standard. They may not even be the most logical, or most convenient, but once established they can, in general, be changed only by slow degrees, if at all."

"It is human experience that as a man concentrates his efforts, either mental or manual, his skill in his chosen specialty, and the quantity of his product increase. It was shown... that specialization in machinery had a powerful influence in specializing the workman and thereby extending the principle of division of labor. But division of labor may be furthered by other influences. The very growth of all lines of human knowledge and activity makes it increasingly difficult for one man to retain a grasp of any one entire field. He must be content to cultivate a small portion of it."

"The term division of labor has, from long usage, become associated in the public mind with manual processes. But productive labor is, in general, both manual and mental and just as there may be division of manual labor so there may be division of mental labor or division of thought. Modern productive methods tend constantly to separate mental labor from manual labor and then to subdivide each into smaller and smaller parts. The subdivision of manual labor is greatly furthered, as has been seen, by the extended use of tools. Subdivision of mental labor on the other hand is hastened by an increase in the amount of knowledge and mental development necessary to successfully perform the work in hand. Thus the mental labor of designing machinery is performed largely apart from the actual production; and this mental labor has become very closely specialized as the scientific basis of engineering has grown. This process of subdivision is greatly hastened in both manual and mental operations by increased quantity since this, of itself, enables the manager to avail himself of the inherent advantages of division of labor already discussed."

"We are proud of Dean Kimball’s national fame as an engineer and leader in engineering education: we are mindful of his outstanding professional achievements which have contributed to the prestige of our College. Yet, in the intimacy of this Cornell group, our main desire is to record our respect and affection for one who in the discharge of his duties has evinced qualities of gentle humanity and gracious friendship adorning his technical skill and attainments."

"A full account of his life would read like a typical American success story of a career during the post-war years of rapid industrialization and mechanization."

"The Functions of the Executive remains today, as it has been since its publication, the most thought-provoking book on organization and management ever written by a practicing executive."

"My career as a teacher, researcher, and consultant has been focused on the education of practicing executives to direct their attention to the need for defining the purposes of their own lives and those of their organizations, and to the fact that such purposes should be worth pursuing in terms of profit outcomes and social responsibility."

"[Practicing executives] unevenly qualified by education and experience but uniformly burdened by the same kind of responsibility, is made elite not by inheritance or schooling; but by its assigned duties. Its members have responsibility for leading the organizations that develop material wealth in our society and thereby make possible all the other kinds of wealth that constitute our civilization and make life worthwhile."

"[It was Andrew's intention to supply a] conceptual framework for thinking about the problems that confront the general manager, breaking his problems down into more manageable units, and proposing a sequence in which they might be reasonably ranked and considered."

"Corporate strategy is the pattern of major objectives, purposes, or goals and essential policies and plans for achieving those goals stated in such a way as to define what business the company is in or is to be in and the kind of company it is or is to be. In a changing world it is a way of expressing a persistent concept of the business so as to exclude some possible new activities and suggest entry into others."

"It is important only to remember that the 'choice of goals and the formulation of policy cannot in any case be separate decisions."

"The personality of firms like Polaroid, Xerox, Control Data, IBM, ITT, LTV and General Motors clearly reflects aspects of company and management intent that are manifested only partially in such activities as research expenditures, choice of product line and recruitment and development of organization members."

"The determination of strategy also requires consideration of what alternative is preferred by the chief executive and perhaps by his immediate associates as well, quite apart from economic considerations. Personal values, aspirations, and ideals do, and in our judgement quite properly should, influence the final choice of purposes. Thus, what the executives of the company want to do must be brought into the strategic decision."

"There is no way to divorce the decision determining the most sensible economic strategy from the personal values of those who make the choice."

"We must acknowledge at this point that there is no way to divorce the decision determining the most sensible economic strategy for a company from the personal values of those who make the choice."

"We now move to what they ought to do — from the viewpoint of various leaders and segments of society and their own standards of right and wrong. Ethics, like preference, may be considered a product of values."

"This theory maintains that the objectives of the firm should be derived by balancing the conflicting claims of the various 'stakeholders' in the firm: managers, workers, stockholders, suppliers, vendors. The firm has a responsibility to all of these and must configure its objectives so as to give each a measure of satisfaction. Profit which is a return on investment to the stockholder is one of such satisfactions, but does not receive special predominance in the objective structure,"

"We shall approach practical objectives through a series of approximations. Keeping the maximization of the rate of return as the central theoretical objective, we shall develop a number of subsidiary objectives (which the economists call proxy variables) which contribute in different ways to improvement in the return and which are also measurable in business practice. A firm which meets high performance in most of its subsidiary objectives will substantially enhance its long-term rate of return. (The defect in our approach is that we cannot prove that the result will be a ‘‘maximum’’ possible overall return.) As will be seen, this road has its own obstacles: the difficulties of long term maximization are replaced by the problem of reconciling claims of conflicting objectives."

"By searching out opportunities which match its strengths the firm can optimize the synergistic effects."

"The triplet of specifications - the product-market scope, the growth vector and the competitive advantage - describes the firm's product-market path in the external environment."

"A natural companion to the competitive advantage is the synergy component of strategy. This requires that opportunities within the scope possess characteristics which will enhance synergy."

"Ansoff (1965) gives only some indication of what he means by environment. This can be explained by Ansoff's classification of decisions into strategic. administrative and operating decisions. He (1965, p. 8) defines these types of decision as follows:"

"The publication of the book, Corporate Strategy, by H. Igor Ansoff was a major event in the 1965 world of management. As early as it came in this literature, the book represented a kind of crescendo in the development of strategic planning theory, offering a degree of elaboration seldom attempted since."

"The stakeholder concept was originally defined as "those groups without whose support the organization would cease to exist." The list of stakeholders originally included shareowners, employees, customers, suppliers, lenders and society. Stemming from the work of Igor Ansoff and Robert Stewart (in the planning department at Lockheed) and, later Marion Doscher and Stewart at SRI, the original approach served an important information function in the SRI corporate planning."

"It is appropriate at the outset of this discussion to consider the reasons for and the effect of the division of work. It is sufficient for our purpose to note the following factors."

"The theory of organization... has to do with the structure of co-ordination imposed upon the work-division units of an enterprise."

"The efficiency of a group working together is directly related to the homogeneity of the work they are performing."

"What is the work of the chief executive? What does he do?"

"[POSDCORB as]... statement of the work of a chief executive is adapted from the functional analysis elaborated by Henri Fayol in his "Industrial and General Administration." It is believed that those who know administration intimately will find in this analysis a valid and helpful pattern, into which can be fitted each of the major activities and duties of any chief executive."

"Students of administration have long sought a single principle of effective departmentalization just as alchemists sought the philosophers' stone. But they have sought in vain. There is apparently no one most effective system of departmentalism."

"The power of an idea to serve as the foundation of co-ordination is so great that one may observe many examples of co-ordination even in the absence of any single leader or of any framework of authority."

"It may also be noted that the authoritarian states are in trouble internationally. Some regard this as intentional, as part of the diversion and scapegoat technique, while others think that it is more or less inevitable because of the very co-ordination of the economic activities of the individual nations in question."

"A workman subject to orders from several superiors will be confused, inefficient, and irresponsible; a workman subject to orders from but one superior may be methodical, efficient, and responsible."

"Administration has to do with getting things done; with the accomplishment of defined objectives. The science of administration is thus the system of knowledge whereby men may understand relationships, predict results, and influence outcomes in any situation where men are organized at work together for a common purpose."

"Public administration is that part of the science of administration which has to do with government, and thus concerns itself primarily with the executive branch, where the work of government is done, though there are obviously administrative problems also in connection with the legislative and the judicial branches. Public administration is thus a division of political science, and one of the social sciences."

"At the present time administration is more an art than a science; in fact there are those who assert dogmatically that it can never be anything else. They draw no hope from the fact that metallurgy, for example, was completely an art several centuries before it became primarily a science and commenced its great forward strides after generations of intermittent advance and decline."

"The fundamental objective of the science of administration is the accomplishment of the work in hand with the least expenditure of man-power and materials. Efficiency is thus axiom number one in the value scale of administration. This brings administration into apparent conflict with certain elements of the value scale of politics, whether we use that term in its scientific or in its popular sense. But both public administration and politics are branches of political science, so that we are in the end compelled to mitigate the pure concept of efficiency in the light of the value scale of politics and the social order. There are, for example, highly inefficient arrangements like citizen boards and small local governments which may be necessary in a democracy as educational devices. It has been argued also that the spoils system, which destroys efficiency in administration, is needed to maintain the political party, that the political party is needed to maintain the structure of government, and that without the structure of government, administration itself will disappear. While this chain of causation has been disproved under certain conditions, it none the less illustrates the point that the principles of politics may seriously affect efficiency. Similarly in private business it is often true that the necessity for immediate profits growing from the system of private ownership may seriously interfere with the achievement of efficiency in practice."

"Gulick divided the work of chief executives into seven functional elements. He used the acronym POSDCORB, representing the initials of the following activities, Planning... , Organizing... , Staffing... , Directing..., Coordinating..., Reporting..., Budgeting... Although Gulick visualized management as universal activity, his description of the preceding elements of a chief executive’s job primarily pertained to governmental administration. Gulick went on to identify four basic systems of departmentalization: purpose, process, person or things, and place. He held that "the major purpose of organization is co-ordination." In Gulick’s scheme, there is no one most effective system of departmentalization."

"In recent years there has been increased interest in the effects of internal communication on decision processes. A number of hypotheses relating the bias in information to the final decision have been proposed. In this paper we discuss two laboratory experiments which were designed to test two such hypotheses. The first experiment tests the hypothesis that cost and sales estimations are made with the implicit assumption that a biased pay-off structure exists. The second experiment tests explicitly the effects of biased and unbiased pay-off structures on estimation within an organization. An analysis of the data for the two experiments is made and some implications for further research are drawn from the results."

"Effective retention is heavily dependent on recruiting students with the potential to graduate."

"After two years of study, I'm happy to tell you that dire projections about declines in the U.S. work force due to technological change are exaggerated at best."

"We believe that, in order to understand contemporary economic decision making, we need to supplement the study of market factors with an examination of the internal operation of the firm – to study the effects of organizational structure and conventional practice on the developments of goals, the formation of expectations, and the execution of choices."

"Relatively unsuccessful firms would be more likely to innovate than relatively successful firms."

"In general, success tends to breed slack. One of the main consequences of slack is a muting of problems of resource scarcity. Slack provides a source of funds for innovations that would not be approved in the case of scarcity but that have strong subgroup support."

"Rational actors are significantly constrained by limitations of information and calculation."

"Management tries to make the best use of the resources available."

"Difficulties arise when an attempt is made to acclimatize the theory to an alien environment and, in particular, to adapt the analysis of the expansion of the innovating multi-product, ‘flesh and blood’ organisations that businessmen call firms."

"A firm is more than an administrative unit; it is also a collection of productive resources the disposal of which between uses and over time is determined by administrative decision."

"If profits are a condition of successful growth, but profits are sought primarily for the sake of the firm, that is, to reinvest in the firm rather than to reimburse owners for the use of their capital or their 'risk bearing,' then, from the point of view of investment policy, growth and profits become equivalent as the criteria for the selection of investment programmes."

"There is no need to deny that other 'objectives' are often important—power, prestige, public approval, or the mere love of the game— it need only be recognized that the attainment of these ends more often than not is associated directly with the ability to make profits."

"Internal inducements to expansion arise largely from the existence of a pool of unused productive services, resources and special knowledge, all of which will always be found within any firm."

"A firm is essentially a pool of resources the utilization of which is organized in an administrative framework."

"Mrs Penrose was a senior economist in the Merrill/ Johns Hopkins research into the growth of firms and her book was much looked forward to. She does indeed make wise observations, out of her research and her wide reading, about various things which happen, or may happen, in a growing business... A theory of the growth of firms surely should involve generalizations about their economic environment, or, in other words, just those questions about the (equilibrium) structures of industries which the author rules out of court at the start."

"In recent years economists and historians have increasingly turned their attention to modern economic institutions. Economists such as Edward S. Mason, A. D. H. Kaplan, John Kenneth Galbraith, Oliver E. Williamson, William J. Baumol, Robin L. Marris, Edith T. Penrose, Robert T. Averitt, and R. Joseph Monsen, following the pioneering work of Adolph A. Berle, Jr., and Gardiner C. Means, have studied the operations and actions of modern business enterprise. They have not attempted, however, to examine its historical development, nor has their work yet had a major impact on economic theory. The firm remains essentially a unit of production, and the theory of the firm a theory of production."

"Edith Penrose has been one of the most significant economists of the second part of the twentieth century. Her contribution to the theory of the firm has reinvented and productively developed the classical tradition in economics. It has informed the currently dominant resource/knowledge-based theory of the firm. Penrose's contribution, however, extends to a great variety of areas, to include industry organization, strategic management, international business, human resource management, economics of innovation and technological change, history, methodology, macroeconomics, and much more."

"I’m sick of hearing how far we’ve come. I’m sick of hearing how in some cases women are superseding men, progressing to positions of middle and upper management. Above all, I’m sick of hearing about the pipeline, about the path to the top supposedly thick with women who will, in the fullness of time, be rewarded for their patience and virtue. The following figures speak for themselves: Three percent of Fortune 500 companies are headed by women; 16.8 percent of members of the U.S. Congress are women; 7 percent of tenured engineering faculty in four-year institutions are women. The fact is that so far as leadership is concerned, women in nearly every realm are hardly any better off than they were a generation ago.”"

"'Becoming a leader' has become a mantra. The explosive growth of the 'leadership industry' is based on the belief that leading is a path to power and money, a medium for achievement, and a mechanism for creating change. But there are other, parallel truths: that leaders of every stripe are in disrepute; that the tireless and often superficial teaching of leadership has brought us no closer to nirvana; and that followers nearly everywhere have become, on the one hand, disappointed and disillusioned,and, on the other, entitled and emboldened."

"Women who do not opt out of demanding professional positions are more likely to opt out of demanding family obligations."

"Women face trade-offs that men do not. Aspiring female leaders risk being liked but not respected, or respected but not liked, in settings that may require individuals to be both in order to succeed."

"People more readily credit men with leadership ability and more readily accept men as leaders. What is assertive in a man can appear abrasive in a woman, and female leaders risk appearing too feminine or not feminine enough."

"Double standards in domestic roles are deeply rooted in cultural attitudes and workplace practices. Working mothers are held to higher standards than working fathers and are often criticized for being insufficiently committed, either as parents or professionals. Those who seem willing to sacrifice family needs to workplace demands appear lacking as mothers. Those who take extended leave or reduced schedules appear lacking as leaders. These mixed messages leave many women with the uncomfortable sense that whatever they are doing, they should be doing something else."

"Here we were at Davos, moderating a discussion on value innovation, and yet only one European, Hasso Plattner [the founder and CEO of SAP AG], was on the panel. This raised the question, ‘Why aren’t there more European CEOs and companies worth listening to on this subject?’ What is the problem in Europe? The answer that kept coming back is this: Europe is strong in science and technology, but weak in connecting innovation and commerce."

"In the United States, international business still means the U.S. and the rest of the world. Here it is different. We wanted to learn about the reality of international business and understand the role and scope of strategy within that."

"We have worked together for the last 20 years, first in America and now at INSEAD in France, with time also spent in Asia along the way. From the get-go, we shared an intellectual curiosity to understand what it takes to stand apart and create strong profitable growth. In search of an answer to this question, we looked back more than 100 years and across more than 30 industries. Contrary to common thought, we did not find any permanently excellent companies, nor permanently excellent industries in our research. What we did find, however, were smart strategic moves. And the strategic move that we found matters centrally is to create blue oceans. Blue oceans allow companies to stand apart and create strong profitable growth. This led to our book, Blue Ocean Strategy. Even before Blue Ocean Strategy was released, it broke Harvard Business School Press's historical record for most foreign licenses ever obtained."

"Their recent publication, Blue Ocean Strategy (2005), is a summation of a decade of articles on value innovation, including one in the Harvard Business Review. Kim and Mauborgne have presented themselves as unashamed strategic iconoclasts. The thinking behind most business strategy sees the agents as either individual companies or industries as a whole. The scene for strategic activity is essentially fixed and finite. Analogies were often made with the field of battle or the theater of war. Some strategists went further in borrowing military symbols. They talked about headquarters rather than the corporate head office. The battlefield was fixed in area; no new land could be added to it or created. Any struggles that took place were zero-sum games. These conflicts were intense and bloody (in figurative terms), staining red the ground on which they were fought."

"Contingency Theory is not a theory at all, in the conventional sense of theory as a well-developed set of interrelated propositions. It is more an orienting strategy or metatheory, suggesting ways in which a phenomenon ought to be conceptualized or as approach to the phenomenon ought to be explained. Drawn primarily from large-scale empirical studies, contingency theory relies on a few assumptions that have been explicitly stated, and these guide contingency research."

"If you peruse the table of contents of a textbook on organizational theory or search the web for courses in organizational sociology, you cannot help but notice how many of the key contributors to the field spent time at Stanford between 1970 and 2000, as faculty members, post-docs, or graduate students... Of the five most influential macro-organizational paradigms in play today — institutional theory, network theory, organizational culture, population ecology, and resource dependence theory (in alphabetical order) – Stanford served as an important pillar, if not the entire foundation, for all but network theory. By the 1990s, it became an important site for network theory as well."

"Contingency theories dominate scholarly studies of organization behavior, design, performance, planning and management strategy. While they vary widely in subject matter, they have the common proposition that an organizational outcome is the consequency of a "fit" or match between two or more factors. "Fit" is the key concept in this proposition, and the core problem common to contingency theories is not defining this term clearly. This paper examines three ways to define and test this concept of fit: Selection, Interaction, and Systems approaches. A critical discussion of these three approaches will clarify much of the current confusion in the literature on contingency theories, and suggest ways that future theorizing and research can become more systematic and constructive."

"Fit is a feasible set of equally effective internally consistent patterns of organizational context and structure."

"A central purpose of this book is to identify a framework which might link at important points several of the now independent approaches to the understanding of complex organizations."

"If we now reintroduce the conception of the complex organization as an open system subject to criteria of rationality, we are in a position to speculate about some dynamic properties of organizations."

"Most of our beliefs about complex organizations follow from one or the other of two distinct strategies. The closed-system strategy seeks certainty by incorporating only those variables positively associated with goal achievement and subjecting them to a monolithic control network. The open-system strategy shifts attention from goal achievement to survival and incorporates uncertainty by recognizing organizational interdependence with environment. A newer tradition enables us to conceive of the organization as an open system, indeterminate and faced with uncertainty, but subject to criteria of rationality and hence needing certainty."

"Under norms of rationality, organizations seek to seal off their core technologies from environmental influences."

"Under norms of rationality, organizations seek to buffer environmental influences by surrounding their technical cores with input and output components."

"Under norms of rationality, organizations seek to smooth out input and output transactions."

"Under norms of rationality, organizations seek to anticipate and adapt to environmental changes which cannot be buffered or leveled."

"When buffering, leveling, and forecasting do not protect their technical cores from environmental fluctuations, organizations under norms of rationality resort to rationing."

"Organizations under norms of rationality seek to place their boundaries around those activities which if left to the task environment would be crucial contingencies."

"The incorporation of subsidiary competencies along with major missions is commonplace in organizations of all types and is not a major discovery. But our proposition is not an announcement of the fact; rather it attempts to indicate the in which domains are expanding"

"The more sectors in which the organization subject to rationality norms is constrained; the more power the organization will seek over remaining sectors of its task environment... many constraints and unable to achieve power in other sectors of its task environment will seek to enlarge the task environment."

"Organizations in Action (1964) [was] a masterpiece on the behavior of organizations, incorporating an open-systems perspective to explain the influence of technology on the matter in which work systems are structured for task accomplishment."

"Thompson’s Organizations in Action was published more than three decades ago but is still one of the classics of organization theory. The book provides a unifying perspective on open- and closed-systems thinking in organization theory that has been recognized as an important contribution in its own right (Scott 1998). The environment is a key source of uncertainty for an organization, and Thompson argued that much of organizational action can be explained by the need to reduce uncertainty. Consider a specific action such as “buffering” (e.g., building warehouses or storages), aiming to seal off the organization’s technical or operational core from environmental uncertainty. The main lines of his arguments always are couched in explicitly formulated propositions but also are brought to life by examples such as the typologies of technologies (long-linked, mediating, or intensive), interdependencies (pooled, sequential, or reciprocal), and coordination (by standardization, by plan, or by mutual adjustment). His typologies have inspired much research in organizational design (Galbraith 1977) and contingency theory (Mintzberg 1979)."

"There is a direct relationship between the absence of celebrity and the presence of good-to-great results. Why? First, when you have a celebrity, the company turns into “the one genius with 1,000 helpers.” It creates a sense that the whole thing is really about the CEO. At a deeper level, we found that for leaders to make something great, their ambition has to be for the greatness of the work and the company, rather than for themselves."

"This is not a book about charismatic visionary leaders. It is not about visionary product concepts or visionary market insights. Nor even is it about having a corporate vision. This is a book about something far more important, enduring, and substantial. This is a book about visionary companies. What is a visionary company? Visionary companies are premier institutions -- the crown jewels -- in their industries, widely admired by their peers and having a long track record of making a significant impact on the world around them. The key point is that a visionary company is an organization -- an institution. All individual leaders, no matter how charismatic or visionary, eventually die; and all visionary products and services -- all "great ideas" -- eventually become obsolete. Indeed, entire markets can become obsolete and disappear. Yet visionary companies prosper over long periods of time, through multiple product life cycles and multiple generations of active leaders."

"Those who built the visionary companies wisely understood that it is better to understand who you are than where you are going — for where you are going will almost certainly change"

"Core values = The organization’s essential and enduring tenets – a small set of general guiding principles, not to be confused with specific cultural or operating practices, and not to be compromised for financial gain or short-term expediency."

"The good news is that one of the key elements of being a visionary company is strikingly simple: Good old-fashioned hard work, dedication to improvement, and continually building for the future will take you a long way... The bad news is that creating a visionary company requires huge quantities of good old-fashioned hard work, dedication to improvement, and continually building for the future. There are no shortcuts. There are no magic potions. There are no work-arounds. To build a visionary company, you’ve got to be ready for the long, hard pull. Success is never final."

"It is better to first get the right people on the bus, the wrong people off the bus, and the right people in the right seats, and then figure out where to drive."

"The most effective leaders of companies in transition are the quiet, unassuming people whose inner wiring is such that the worst circumstances bring out their best. They're unflappable, they're ready to die if they have to. But you can trust that, when bad things are happening, they will become clearheaded and focused."

"For no matter what we achieve, if we don't spend the vast majority of our time with people we love and respect, we cannot possibly have a great life. But if we spend the vast majority of our time with people we love and respect – people we really enjoy being on the bus with and who will never disappoint us – then we will almost certainly have a great life, no matter where the bus goes. The people we interviewed from the good-to-great companies clearly loved what they did, largely because they loved who they did it with."

"Most businesses -— like most of anything else in life -— fall somewhere between mediocre and good. Few are great. When you compare great companies with good ones, many widely practiced business norms turn out to correlate with mediocrity, not greatness. So, then, why would we want to import the practices of mediocrity into the social sectors?"

"A culture of discipline is not a principle of business, it is a principle of greatness."

"Good is the enemy of great. That good is the enemy of great is not just a business problem. It is a human problem"

"The Organization of the Future presents the latest and best thinking of acclaimed visionaries and practitioners who ponder the future of human enterprise everywhere -- in government, business, and community. Supported by two giants -- Peter Drucker opens the book, and Charles Handy closes it -- the authors within provide their own perspectives on tomorrow, in thoughtful, to-the-point chapters. Together they underscore where, when, and how organizations and their leaders must evolve, not only to survive but also to prosper. In The Organization of the Future, the contributors show:"

"People who believe they can succeed see opportunities where others see threats."

"Ten years ago we had a very simple yet powerful idea—call many of the greatest thinkers in the world, ask them each to write a chapter sharing their vision for the future of leadership, and put together an edited book titled The Leader of the Future."

"The Leader of the Future 2 is divided into five parts. In Part One, our book begins where it should, with Peter Drucker’s vision of leadership... Part Two, "Leading in a Diverse World," begins with the recognized world authority on building a learning organization. "Systems Citizenship" presents MIT’s Peter Senge at his best, as he challenges us to understand systems, implement systems intelligence, and build partnerships that are a mandate for the new millennium... Part Three, "Leading in a Time of Crisis and Complexity," begins with Ron Heifetz of Harvard’s Kennedy School. Ron describes new approaches to solving leadership dilemmas as he challenges leaders in "Anchoring Leadership in the Work of Adaptive Progress"... Part Four, "Leading Organizations of the Future," shows how changing context has an impact leadership needs, demanding changes in leadership styles. Charles Handy is one of the great social philosophers of our time... Part Five, "The Quality and Character of the Leader of the Future," begins with one of the most influential thought leaders in history, Stephen Covey. In "Leading in the Knowledge Worker Age.""

"The more we are committed to believing that something is true, the less likely we are to believe that its opposite is true, even in the face of clear evidence that shows we are wrong."

"Successful people become great leaders when they learn to shift the focus from themselves to others."

"The Great Western Disease is that we fixate on the future at the expense of enjoying the life we're living now."

"If we can stop, listen, and think about what others are seeing in us, we have a great opportunity. We can compare the self that we want to be with the self that we are presenting to the rest of the world. We can then begin to make the real changes that are needed to close the gap between our stated values and our actual behavior."

"Lasting goal achievement requires lots of time, hard work, personal sacrifice, ongoing effort, and dedication to a process that is maintained over years."

"We find support for the contingency logic, suggesting that effective organization design has to take into account the underlying characteristics of the firm's knowledge base."

"Some bodies of knowledge emerge over time in a process of coevolution with the location in which they are embedded."

"While few customer offerings have a life, all great products and services have a soul."

"It is also worth noting that it is extremely difficult to be a great buyer of complementary competencies if you do not have any knowledge about the stuff you are acquiring. Friedrich Nietzsche pointed out that a man has no ears for that to which experience has given him no access. We need knowledge to be able to outsource knowledge."

"Gallery visitors did not tell Picasso to invent cubism. Jazz fanatics did not suggest that should work with hip-hoppers. Moviegoers did not propose to Lars von Trier, the Danish film director, that he make Breaking the Waves. And customers sure as hell did not come up with the idea for CDNow or Amazon.com. If you want to do something really interesting and revolutionary, learn to ignore your customers."

"Of all possible resources that a firm might possess, its knowledge base has perhaps the greatest ability to serve as a source of sustainable differentiation and hence competitive advantage."

"The more you hardwire a company on total quality management, [the more] it is going to hurt breakthrough innovation... The mindset that is needed, the capabilities that are needed, the metrics that are needed, the whole culture that is needed for discontinuous innovation, are fundamentally different."

"Organizations are not designed for innovation. Quite the contrary, they are designed for ongoing operations."

"Innovation plans, by contrast, are loaded with assumptions. Sure, some hard facts are available, but more is unknown than known. The past is no longer precedent. Thus, the innovator's job cannot be to deliver a proven result; it must be to discover what is possible, that is, to learn, by converting assumptions into knowledge as quickly and inexpensively as possible."

"A reverse innovation is any innovation that is adopted first in the developing world."

"Inside a big experiment, there are little experiments."

"The innovation leader’s job is to execute a disciplined experiment."

"A company's ability to innovate, improve, and learn ties directly to the company's value."

"Today, organizations are competing in complex environments so that an accurate understanding of their goals and the methods for attaining those goals is vital. The translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system."

"Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products."

"Industrial age companies created sharp distinctions between two groups of employees. The intellectual elite—managers and engineers—used their analytical skills to design products and processes, select and manage customers, and supervise day-to-day operations. The second group was composed of the people who actually produced the products and delivered the services. This direct labor work force was a principal factor of production for industrial age companies, but used only their physical capabilities, not their minds. They performed tasks and processes under direct supervision of white-collar engineers and managers. At the end of the twentieth century, automation and productivity have reduced the percentage of people in the organization who perform traditional work functions, while competitive demands have increased the number of people performing analytic functions: engineering, marketing, management, and administration. Even individuals still involved in direct production and service delivery are valued for their suggestions on how to improve quality, reduce costs, and decrease cycle times..."

"Today, organizations are competing in complex environments so that an accurate understanding of their goals and the methods for attaining those goals is vital. The translates an organization’s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system."

"Companies are in the midst of a revolutionary transformation. Industrial age competition is shifting to information age competition. During the industrial age, from 1850 to about 1975, companies succeeded by how well they could capture the benefits from economies of scale and scope. Technology mattered, but, ultimately, success accrued to companies that could embed the new technology into physical assets that offered efficient, mass production of standard products."

"Industrial age companies created sharp distinctions between two groups of employees. The intellectual elite—managers and engineers—used their analytical skills to design products and processes, select and manage customers, and supervise day-to-day operations. The second group was composed of the people who actually produced the products and delivered the services. This direct labor work force was a principal factor of production for industrial age companies, but used only their physical capabilities, not their minds. They performed tasks and processes under direct supervision of white-collar engineers and managers. At the end of the twentieth century, automation and productivity have reduced the percentage of people in the organization who perform traditional work functions, while competitive demands have increased the number of people performing analytic functions: engineering, marketing, management, and administration. Even individuals still involved in direct production and service delivery are valued for their suggestions on how to improve quality, reduce costs, and decrease cycle times..."

"What does it mean to be “successful”? How do you achieve your dreams?"

"There’s no single right way to accomplish your goals. Each of us has a number of avenues to reach our potential. The world constantly changes. Life often unfolds as a series of phases. Our potential is likely to evolve as the world evolves and as we continue to learn, grow, and develop our capabilities."

"Effective leadership begins with having the right mindset; in particular, it begins with having an ownership mind-set. This means a willingness to put oneself in the shoes of a decision maker and think through all of the considerations that the decision maker must factor into his or her thinking and actions."

"A comparative social science requires a generalized system of concepts which will enable the scientific observer to compare and contrast large bodies of concretely different social phenomena in consistent terms."

"A World to Make treats a subject that is both complex and controversial. Since the end of the Second World War, and with increasing rapidity in the 1950s and 1960s, Europe's former colonial possessions acquired independence and emerged as new states with new frontiers. That process proved to be immensely difficult both for those who had recently acquired their independence and for those in Latin America and elsewhere who had enjoyed that status for a century or longer."

"Characteristically, the factors determining, the outcome of business efforts are numerous, and difficult both to assess and control. The sale of goods on a more or less free market is, of course, one major source of these difficulties; the disposition of buyers are subject to only limited control and prediction. They in turn are influenced by those diffuse but important factors which go under the label of general business conditions. Even within the context of a given firm there may be conditions and possible courses of action (such as personal appointments, or the performance of certain equipment) which may be beyond ready prediction and control. A great part of the efforts of entrepreneurs is directed towards minimising uncertainties."

"It is characteristic of executive roles that they are specialized for the handling of situations which call for something more than routine action. When business executives are asked what is the essential content of their roles, they characteristically say, 'We make decisions.' This emphasis on decision-making is symptomatic of a specialized concern of executives with situations in which there is significant uncertainty as to the results of proper courses of action. (One does not make a 'decision' when there is a predictable, correct outcome, as in getting the sum of a column of figures.)"

"Businessmen have not shied away from the responsibility implied in Emerson's famous definition of a business as the lengthening shadow of a man. They have readily brushed aside complications and assigned crucial importance to the decisions of the guiding executives."

"The logical reader can only conclude that had Mr. Du Pont been as devoted to the facts as Mr. Sloan alleges, he would have been paralyzed in indecision, or even more, he certainly have discontinued the production of Chevrolets."

"There is a strong tendency among businessmen to emphasize that their decisions are based on 'facts' and thus to make favorable outcomes the consequence of perspicacity and 'judgment' rather than good fortune."

"The key definitions for the entrepreneur seem to centre around the concept of responsibility. Responsibility implies individualism. It is not tolerable unless it embraces both credit for success' and blame for failures, and leaves the individual. free to claim or accept the consequences, whatever they may be."

"Viewed schematically, the activities of governments involve first the politician, who buys votes for the party in power; then the impractical theorist in the civil service — usually a professor in disguise — who conceives grandiose and unworkable plans; finally, these are executed and administered by the hidebound bureaucrat. The characteristic vices of these three species of homo politicus differ, , but they share a common feature: the absence of those personal virtues possessed by businessmen. Their heads are neither clear, hard, nor level; none of them is really honest; all of them lack practical imagination and the desire to get things done.Their heads are neither clear, hard, nor level; none of them is really."

"Extravagance, inefficiency, and waste are inherent in government, because nothing which government does is forced to meet the test of the market. Further, government does not even meet the internal criteria of rationality which the balance sheet and the profit and loss statement impose on every individual business enterprise. The power of government to pay for itself through taxes and deficits, and to force on people things which they do not really want, deprives government activity of any semblance of restraint."

"In contrast to such organizations as governments and universities, the prime criteria of business achievement are relatively definite and tangible. These standards include profitability, percentage control of the market, size of firm, and rate of growth."

"In an interesting example of partial cognition, the authors of The American Business Creed present an analysis on the basis of selected materials. But what is the basis upon which the selection is made? They maintain that their material are representative of what American businessman think. Many of the quotations presented as American Business thought, however, are from professional writings. Others are from trade groups which represent only a small portion of the business community."

"I can charge a man's battery, and then recharge it, and recharge it again. But it is only when he has his own generator that we can talk about motivation. He then needs no outside stimulation. He wants to do it."

"If you want people to do a good job, give them a good job to do — an enriched job."

"In 1950, I received my PhD in psychology. I was offered a fellowship to attend the Graduate School of Public Health at the . My major was to be in industrial mental health under the direction of an industrial psychiatrist from McGill University in Canada by the name of Graham Taylor. Unfortunately, I soon discovered that the concepts of industrial mental health were really a restatement of the concepts of that I had previously studied in clinical and abnormal psychology. Reflecting this disappointment, I entitled my Public Health Practice thesis Mental Health Is Not the Opposite of Mental Illness. After receiving my master’s degree in public health, I took a job as research director for Psychological Services of Pittsburgh. A local industrialist came to see me after a nasty labor relations disturbance and asked me plaintively, ‘What do people want from their jobs?’ I answered him in typical academic fashion, ‘Sir, I don’t know but if you give me enough money I will find out.’. I followed up on my School of Public Health thesis by designing a study to test the hypothesis that job satisfaction and job dissatisfaction were separate concepts. The result was the book, The Motivation to Work, which led to a fundamentally different approach to the study of people’s affective states."

"Idleness, indifference and irresponsibility are healthy responses to absurd work... If you want people motivated to do a good job, give them a good job to do."

"It's the job of the manager not to light the fire of motivation, but to create an environment to let each person's personal spark of motivation blaze."

"True motivation comes from achievement, personal development, job satisfaction, and recognition."

"This book reports the findings from a study of job motivation based on a fresh approach to this problem. It is an important study, since the analyses and interpretations of the authors suggest that a breakthrough may well have been made to provide new insights into the nature and method of operation of job attitudes."

"There is a great variety of measures of job attitudes. Basically, however, the identification of job attitudes has been done in three ways. In the first of these the worker is asked to express his "[job satisfaction]]" directly by answering questions that investigate his over-all attitude toward his job, whether he likes or dislikes it."

"In our first pilot study we talked with clerical and production workers as well as professional and managerial people. We discovered that the professional and managerial groups were more verbal, showed a quicker grasp of the technique, and gave more and better delineated sequences of events than the clerical and production groups."

"A sample limited to one profession would have yielded results of doubtful generality. To develop findings independent of the peculiar circumstances of the engineer, we needed to study a comparable group. Accountants were chosen because their jobs, like those of engineers,· are rich in technique. This richness makes it likely that the accountant, like the engineer, would have much to tell us. However, the groups are vastly different in the nature of their training, their present degree of professionalization, the kind of work they do, and, presumably, the kind of people attracted into them. Last, by covering accountants and engineers, we examined the job attitudes of two of the most important staff groups in modern industry"

"As a first step in preparing the analytic scheme, all of the interviews were read by one of our staIr members and the replies were broken down into "thought units." A thought unit is defined as a statement about a single event or condition that led to a feeling, a single characterization of a feeling, Or a description of a single effect."

"The results of this study are presented under three general headings. The first, and most extensive, section consists of data relating to the factors that lead to positive and negative attitudes toward the job. It will be recalled that the major question this study set out to investigate was whether different kinds of factors were responsible for bringing about job satisfaction and job dissatisfaction."

"The factors that are rarely instrumental in bringing about high job attitudes focus not on the job itself but rather on the characteristics of the context in which the job is done: working conditions, interpersonal relationships, supervision, company policies, administration of these policies, effects on the worker's personal life, job security, and salary. This is a basic distinction. The satisfiers relate to the actual job. Those factors that do not act as satisfiers describe the job situation."

"All the basic satisfiers, recognition, achievement, advancement, responsibility, and work itself, appeared with significantly greater frequencies in the highs than they did in the low sequences of-events."

"The job satisfiers deal with the factors involved in doing the job, whereas the job dissatisfiers deal with the factors that define the job context. Poor working conditions, bad company policies and administration, and bad supervision will lead to job dissatisfaction. Good company policies, good administration, good supervision, and good working conditions will not lead to positive job attitudes."

"Let us summarize briefly our answer to the question, "What do people want from their jobs?" When our respondents reported feeling happy with their jobs, they most frequently described factors. related to their tasks, to events that indicated to them that they were successful in the performance of their work, and to the possibility of professional growth. Conversely, when feelings of unhappiness were reported, they were not associated with the job itself but with conditions that surround the doing of the job. These events suggest to the individual that the context in which he performs his work is unfair or disorganized and as such represents to him an unhealthy psychological work environment. Factors involved in these situations we call factors of hygiene, for they act in a manner analogous to the principles of medical hygiene."

"Among the factors of hygiene we have included supervision, interpersonal relations, physical working conditions, salary, company policies and administrative practices, benefits, and job security."

"Man has two sets of needs: his need as an animal to avoid pain and his need as a human to grow psychologically."

"Dissatisfiers led to dissatisfaction because of the need to avoid pain for situations that caused discomfort; satisfiers led to job satisfaction because of a need for growth or self-actualization."

"Factors involved in producing job satisfaction were separate and distinct from the factors that led to job dissatisfaction."

"Job satisfaction and job dissatisfaction are not the obverse of each other... The opposite of job satisfaction would not be job dissatisfaction, but rather would be no job satisfaction. Similarly, the opposite of job dissatisfaction is no job dissatisfaction, not satisfaction with one's job."

"Any form of organization that cuts across normal bureaucratic lines to capture opportunities, solve problems, and get results. In an era of accelerating change, organizations, and national economies, most likely to succeed are those with the ability to adjust and adapt. Robert H. Waterman Jr., ... shows how and what this sort of innovation must become a way of life for business organizations across the board. What is needed is an environment that fosters the use of an ad-hoc problem-solving technique, in effect an -adhocracy- that functions outside the often initiative-stifling bureaucracy-"

"True or false? "America is falling behind in world competition". The surprise answer is "false". Recent research on industrialized nations shows that American workers outproduce workers in Germany and France by 20 percent, workers in Britain by over 30 percent, and Japanese workers by over 60 percent. The reason has nothing to do with technology, worker attitude, or worker skill... [Looking] at some of the best American firms... [we can concluded] that the key to strategic advantage is organization: they are organized to focus on the things that motivate their own people, and organized to anticipate customer needs."

"In today's business environment, more than in any preceding era, the only constant is change. Somehow there are organizations that effectively manage change, continuously adapting their bureaucracies, strategies, systems, products, and cultures to survive the shocks and prosper from the forces that decimate their competition. They move from strength to strength, adjusting to crises that bedevil others in their industry. They are masters of Renewal. No organization can maintain excellence without renewing. No organization can strive for excellence, or even attempt to improve, without the ability to renew."

"The renewing companies treat everyone as a source of creative input. What's most interesting is that they cannot be described as either democratically or autocratically managed. Their managers define the boundaries, and their people figure out the best way to do the job within those boundaries. They give up a measure of control in order to gain control over what counts - results"

"Visible management attention, rather than management exhortation, gets things done. Action may start with the words, but it has to be backed by symbolic behavior that makes those words come alive."

"Man is a maker of meanings in a world that sometimes seems without meaning. Few things help us find meaning more than a cause to believe in, better yet, about which to get excited. Renewing organizations seem to run on causes."

"Organizational change is a set of behavioral science-based theories, values, strategies, and techniques aimed at the planned change of the organizational work setting for the purpose of enhancing individual development and improving organizational performance, through the alteration of organizational members' on-the-job behaviors."

"Success in the long run has less to do with finding the best idea, organizational structure, or business model for an enterprise, than with discovering what matters to us as individuals."

"The essential difference with Builders is that they've found something to do that matters to them and are therefore so passionately engaged, they rise above the personality baggage that would otherwise hold them down. Whatever they are doing has so much meaning to them that the cause itself provides charisma and they plug into it as if it was electrical current."

"Companies that enjoy enduring success have core values and a core purpose that remain fixed while their business strategies and practices endlessly adapt to a changing world. The dynamic of preserving the core while stimulating progress is the reason that companies such as Hewlett-Packard, 3M, Johnson & Johnson, Procter & Gamble, Merck, Sony, Motorola, and Nordstrom became elite institutions able to renew themselves and achieve superior long-term performance."

"Core ideology provides the glue that holds an organization together as it grows, decentralizes, diversifies, expands globally, and develops workplace diversity. Think of it as analogous to the principles of Judaism that held the Jewish people together for centuries without a homeland, even as they spread throughout the Diaspora. Or think of the truths held to be self-evident in the Declaration of Independence, or the enduring ideals and principles of the scientific community that bond scientists from every nationality together in the common purpose of advancing human knowledge. Any effective vision must embody the core ideology of the organization, which in turn consists of two distinct parts: core values, a system of guiding principles and tenets; and core purpose, the organization’s most fundamental reason for existence."

"In addition to vision-level BHAGs [shorthand for Big, Hairy, Audacious Goals], an envisioned future needs what we call vivid description – that is, a vibrant, engaging, and specific description of what it will be like to achieve the BHAG. Think of it as translating the vision from words into pictures, of creating an image that people can carry around in their heads. It is a question of painting a picture with your words. Picture painting is essential for making the 10-to-30- year BHAG tangible in people’s minds."

"There is so much to be learned by studying how Dr. Ishikawa managed to accomplish so much during a single lifetime. In my observation, he did so by applying his natural gifts in an exemplary way. He was dedicated to serving society rather than serving himself. His manner was modest, and this elicited the cooperation of others. He followed his own teachings by securing facts and subjecting them to rigorous analysis. He was completely sincere, and as a result was trusted completely."

"The key issues facing managers in sales are no different than those faced by managers in other disciplines. Sales managers say they face problems such as "It takes us too long...we need to reduce the error rate." They want to know, "How do customers perceive us?" These issues are no different than those facing managers trying to improve in other fields. The systematic approaches to improvement are identical. ... There should be no reason our familiar principles of quality and process engineering would not work in the sales process."

"Total Quality Management (TQM) in the Department of Defense is a strategy for continuously improving performance at every level, and in all areas of responsibility. It combines fundamental management techniques, existing improvement efforts, and specialized technical tools under a disciplined structure focused on continuously improving all processes. Improved performance is directed at satisfying such broad goals as cost, quality, schedule, and mission need and suitability. Increasing user satisfaction is the overriding objective. The TQM effort builds on the pioneering work of Dr. W. E. Deming, Dr. J. M. Juran, and others, and benefits from both private and public sector experience with continuous process improvement."

"In 1897, Italian economist Vilfredo Pareto (1848-1923) noticed a regular pattern in distributions of wealth or income, no matter the country or time period concerned. He found that the distribution was extremely skewed toward the top end: A small minority of the top earners always accounted for a large majority of the total wealth. The pattern was so reliable that Pareto was eventually able to predict the distribution of income accurately before looking at the data. Pareto was greatly excited by his discovery, which he rightly believed was of enormous importance not just to economics but to society as well. But he managed to enthuse only a few fellow economists.... Pareto's idea became widely known only when Joseph Moses Juran, one of the gurus of the quality movement in the twentieth century, renamed it the "Rule of the Vital Few." In his 1951 tome The Quality Control Handbook, which became hugely influential in Japan and later in the West, Juran separated the "vital few" from the "trivial many," showing how problems in quality could be largely eliminated, cheaply and quickly, by focusing on the vital few causes of these problems. Juran, who moved to Japan in 1954, taught executives there to improve quality and product design while incorporating American business practices into their own companies. Thanks to this new attention to quality control, between 1957 and 1989, Japan grew faster than any other industrial economy."

"Quality is conformance to requirements - nothing more, nothing less."

"In a true zero-defects approach, there are no unimportant items."

"Improving quality requires a culture change, not just a new diet."

"Change should be a friend. It should happen by plan, not by accident."

"A rule to live by: I won't use anything I can't explain in five minutes."

"The problem of quality management is not what people don't know about it. The problem is what the think they do know."

"Management has to get right in there and be active when it comes to quality."

"The first erroneous assumption is that quality means goodness, or luxury, or shininess or weight. The word "quality" is used to signify the relative worth of things in such phrases as "good quality," "bad quality," and that brave new statement 'quality of life.' 'Quality of life' is a cliche because each listener assumes that the speaker means exactly what he or she, the listener, means by the phrase. It is a situation in which individuals talk dreamily about something without ever bothering to define it."

"Quality management is a systematic way of guaranteeing that organized activities happen the way they are planned."

"Most managers are so concerned with today, and with getting our own real and imagined problems settled, that we are incapable of planning corrective or positive actions more than a week or so ahead."

"Quality is free, but no one is ever going to know it if there isn't some sort of agreed-on system of measurement. Quality has always suffered from the lack of an obvious method of measurement in spite of the fact such a method was developed by General Electric in the 1950' s as a tool for determining the need for corrective action on a specific product line."

"[ Total Quality Management (TQM) is] a term first used to describe a management approach to quality improvement. Since then, TQM has taken on many meanings. Simply put, it is a management approach to long-term success through customer satisfaction. TQM is based on all members of an organization participating in improving processes, products, services and the culture in which they work. The methods for implementing this approach are found in the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran."

"You can manage what you do not understand, but you cannot lead it."

"If you try to improve the performance of a system of people, machines, and procedures by setting numerical goals for the improvement of individual parts of the system, the system will defeat your efforts and you will pay a price where you least expect it."

"The great quality teacher, Shoji Shiba, often tells people that the biggest barrier to changing understanding is the following word: IAKI, which is not a Japanese word at all. It is an acronym for I ALREADY KNOW IT... Professor Shiba then goes on to say: “Yes, you may know it, but you don't know how to do it!” There is an enormous difference between knowledge and know-how... Too many executives believe that if they listen to a lecture or read a book they will know how to do something....Nobody ever became a great lover by just reading a book or watching a video. You have to get in and do it. There are some things you can only learn through experience."

"Tomas Bata and Bata-System of management are not well known today even though their success and heritage value are undisputed and awe-inspiring in the New Economy. T. Bata died in 1932 in a plane crash. By the time of his death he had introduced fundamental changes in management philosophy and techniques. Many of Bata approaches have been ‘discovered’ during the last 20 years by the Western World as part of what has become known as the ‘Quality Revolution’. Quality management was practiced by the Bata enterprises since before the World War I, through 1920s, 1930s and 1940s, well before the ‘gurus of quality’ even started thinking about the subject. Japanese visitors came to Zlin to learn about the Bata system well before the World War II. In addition, Bata executives traveled to Japan in 1937 and predicted the industrial rise of Japan at that time."

"Product quality can then be defined as: The composite product characteristics of engineering and manufacturing that determine the degree to which the product, in use, will meet the expectations of the customer."

"Engineers, scientists, and statisticians have, until recently, been the groups chiefly interested in activity called quality control. These technologists have been primarily concerned with the technical methods which have become associated with the subject. They have applied these methods to a number of industrial quality problems."

"The materials presented in this book have been developed in industry for use in meeting a wide variety of practical industrial problems. They have been used in several factories both as the "plan of attack" for organizing new quality-control programs and as text material for in-service training courses."

"Quality control may be defined as:"

"In the phrase "quality control" the word quality does not have the popular meaning of "best" in any absolute sense. It means "best for certain customer conditions." These conditions are (a) the actual use and (b) the selling price of the product. Product quality cannot be thought of apart from product cost."

"In the phrase, "quality control" the word control represents a management tool with four steps:"

"Several of the quality-control methods have been carried on in industry for many years. What are new in the modern approach to quality control are integration of these often uncoordinated activities into an over-all administrative program for a factory and the addition to the time-tested methods used of a few new techniques which have been found useful in dealing with and thinking about the increased emphasis upon precision in manufactured parts."

"The outstanding quality accomplishments of industry during the past decade are familiar history. Particularly during World War II, the accomplishments made by the precision equipment in our tanks and guns and planes were indelibly impressed upon the entire world. This results side of the quality picture makes impressive reading."

"Product and service quality can be defined as the total composite product and service characteristics of marketing, engineering, manufacturing, and maintenance through which the product and service in use will meet the expectations of the customer."

"Total quality control is an effective system for integrating the quality development, quality maintenance, and quality improvement efforts of the various groups in an organization so as to enable production and service at the most economical levels which allow full customer satisfaction."

"Feigenbaum's philosophy is summarized in his Three Steps to Quality:"

"[ Total Quality Management (TQM) is] a term first used to describe a management approach to quality improvement. Since then, TQM has taken on many meanings. Simply put, it is a management approach to long-term success through customer satisfaction. TQM is based on all members of an organization participating in improving processes, products, services and the culture in which they work. The methods for implementing this approach are found in the teachings of such quality leaders as Philip B. Crosby, W. Edwards Deming, Armand V. Feigenbaum, Kaoru Ishikawa and Joseph M. Juran."

"To succeed at reengineering, you have to be a missionary, a motivator, and a leg breaker."

"Reengineering has captured the imagination of managers and shareholders alike, sending corporations on journeys of radical business redesign that have already begun to transfigure global industry. Yet aside from earning them improvements in their business performance, the shift into more-process-centered organizations is causing fundamental changes in the corporate world, changes that business leaders are only now beginning to understand. What will the revolutions final legacy be?"

"THIS BOOK is not about reengineering; it is about reengineering’s consequences, about its aftermath and its abiding legacy."

"Despite a decade or more of restructuring and downsizing, many U.S. companies are still unprepared to operate in the 1990s. In a time of rapidly changing technologies and ever-shorter product life cycles, product development often proceeds at a glacial pace. In an age of the customer, order fulfillment has high error rates and customer inquiries go unanswered for weeks. In a period when asset utilization is critical, inventory levels exceed many months of demand."

"It is time to stop paving the cow paths. Instead of embedding outdated processes in silicon and software, we should obliterate them and start over. We should “reengineer” our businesses: use the power of modern information technology to radically redesign our business processes in order to achieve dramatic improvements in their performance."

"Reengineering cannot be planned meticulously and accomplished in small and cautious steps. It’s an all-or-nothing proposition with an uncertain result."

"Business reengineering isn't about fixing anything. Business reengineering means starting all over, starting from scratch. Business reengineering means putting aside much of the received wisdom of two hundred years of industrial management,... How people and companies did things yesterday doesn't matter to the business reengineer."

"The genesis of reengineering lies in a phrase one of us coined in the late 1980s: “Automating a mess yields an automated mess.” Unless an organization reconceptualized its operations, overlaying new technology on these operations accomplished little."

"Reengineering posits a radical new principle: that the design of work must be based not on hierarchical management and the specialization of labor but on end-to-end processes and the creation of value for the customer."

"America's business problem is that it is entering the twenty-first century with companies designed during the nineteenth century to work well in the twentieth. We need something entirely different"

"Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical contemporary measures of performance such as cost, quality, service and speed."

"A business process is a collection of activities that takes one or more kinds of input and creates an output that is of value to the customer. A business process has a goal and is affected by events occurring in the external world or in other processes."

"Observing and performing the process is the best way to develop insight into it. However, the team must be vigilant about avoiding the temptation to overstudy. The goal must be to move quickly to redesign. Before concluding we should comment on another tool that is available to reengineering teams, namely benchmarking. Essentially, benchmarking means looking for the companies that are doing something best and learning how they do it in order to emulate them... Used this way, benchmarking is just a tool for catching up, not for jumping way ahead. Benchmarking can, however, spark ideas in the team—especially if teams use as their benchmarks companies from outside their own industries."

"Sadly, we must report that despite the success stories described in previous chapters, many companies that begin reengineering don’t succeed at it... Our unscientific estimate is that as many as 50 to 70 percent of the organizations that undertake a reengineering effort do not achieve the dramatic results they intended."

"Without Ambition, No Conquests Are Made, No Lands Discovered, No Businesses Created Ambition Is the Root of All Achievement."

"Half a revolution is not better than none... It may, in fact, be worse."

"It is not enough for a leader to have a vision. A leader needs to attract followers, men and women who can commit themselves to the new ideal of customer focus. But if the mobilization process is to succeed, those followers must become leaders, too, finding their own sense of purpose in the shared challenge and spreading the call and vision of change."

"Managers model the way by first changing themselves."

"People claim that significant change requires commitment from the top. True, the top is necessary, but it's not enough. No CEO can do this alone."

"Values are our moral navigational devices."

"Don't live too long with people who refuse to change their behavior, especially if their work is important to achieving your reengineering goals."

"Unless you can subject your decision‐making to a ruthless and continuous JUDGMENT BY RESULTS, all your zigs and zags will only be random lunges in the dark, sooner or later bound to land you on the rocks."

"People must know that their ideas will be listened to and, if they have merit, acted upon. If they do, it is possible to mobilize individual creativity on a very broad scale."

"We are in the grip of the second managerial revolution, one that's very different from the first. The first was about a transfer of power. This one is about an access of freedom."

"Business process reengineering encompasses the envisioning of new work strategies, the actual process design activity, and the implementation of the change in all its complex technological, human, and organizational dimensions"

"James March, a Stanford-based social scientist... is much more a gurus’ guru than a guru to the general public. He finished second on the gurus’ gurus list and 48th on the original list."

"Attention is focused mental engagement on a particular item of business. Items come into our awareness, we attend to a particular item, and then we decide whether to act."

"Every decade or so, the business world invents another term for how it extracts managerial and decision-making value from computerized data. In the 1970s the favored term was “decision support systems,” accurately reflecting the importance of a decision-centered approach to data analysis. In the early 80s, “executive information systems” was the preferred nomenclature, which addressed the use of these systems by senior managers. Later in that decade, emphasis shifted to the more technical-sounding “online analytical processing,” or OLAP. The 90s saw the rise of “business intelligence” as a descriptor. In the middle of 2000’s first decade, “analytics” began to come into favor, at least for the more statistical and mathematical forms of data analysis."

"In definitional terms, a process is simply a structured, measured set of activities designed to produce a specific output for a particular customer or market. It implies a strong emphasis on how work is done within an organization, in contrast to a product focus’s emphasis on what. A process is thus a specific ordering of work activities across time and space, with a beginning and an end, and clearly defined inputs and outputs: a structure for action."

"Defined simply, innovation is, of course, the introduction of something new. We presume that the purpose of introducing something new into a process is to bring about major, radical change. Process innovation combines a structure for doing work with an orientation to visible and dramatic results. It involves stepping back from a process to inquire into its overall business objective, and then effecting creative and radical change to realize order-of-magnitude improvements in the way that objective is accomplished."

"Knowledge workers have high degrees of expertise, education, or experience, and the primary purpose of their jobs involves the creation, distribution or application of knowledge."

"Ultimately, knowledge worker performance comes down to the behaviors of individual knowledge workers."

"Companies should have well-defined procedures for dealing with the planned departure of a valued knowledge worker... Unfortunately, the evidence suggests that most firms are moving in the wrong direction on recruitment and retention issues."

"Peter Drucker wasn’t exaggerating when he noted that the fate of advanced economies depends on making knowledge workers more productive. There is no business or economic issue that is more important to our long-term competitiveness and standard of living."

"Thomas Davenport proposes a revolutionary new way to look at information management, one that takes into account the total information environment within an organization. Arguing that the information that comes from computer systems may be considerably less valuable to managers than information that flows in from a variety of other sources, the author describes an approach that encompasses the company's entire information environment, the management of which he calls information ecology."

"Instead of celebrating what makes each child unique, most parents push their children to "fit in" so that they don't "stick out.""

"Perhaps the ultimate test of a leader is not what you are able to do in the here and now - but instead what continues to grow long after you're gone."

"Well-being is about the combination of our love for what we do each day, the quality of our relationships, the security of our finances, the vibrancy of our physical health, and the pride we take in what we have contributed to our communities. Most importantly, it's about how these five elements interact."

"Overcoming deficits is an essential part of the fabric of our culture. Our books, movies, and folklore are filled with stories of the underdog who beats one-in-a-million odds. And this leads us to celebrate those who triumph over their lack of natural ability even more than we recognize those who capitalize on their innate talents. As a result, millions of people see these heroes as being the epitome of the American Dream and set their sights on conquering major challenges. Unfortunately, this is taking the path of most resistance."

"The reality is that a person who has always struggled with numbers is unlikely to be a great accountant or statistician... This might sound like a heretical point of view for those of us who grew up believing the essential American myth that we could become anything we wanted. it's clear from [our] research that each person has greater potential for success in specific areas, and the key to human development is building on who you already are."

"At its fundamentally flawed core, the aim of almost any learning program is to help us become who we are not... From the cradle to the cubicle, we devote more time to our shortcomings than to our strengths."

"Hector had always been known as a great shoemaker. In fact, customers from such far-off places as France claimed that Hector made the best shoes in the world. Yet for years, he had been frustrated with his small shoemaking business. Although Hector knew he was capable of making hundreds of shoes per week, he was averaging just 30 pairs. When a friend asked him why, Hector explained that while he was great at producing shoes, he was a poor salesman -- and terrible when it came to collecting payments. Yet he spent most of his time working in these areas of weakness."

"IT is one of the most common themes of books, television shows and movies, and it is a central part of conventional wisdom: If you are willing to spend enough time overcoming the obstacles in your path — if you practice enough jump shots, or study hard enough, or make enough sales calls — you have the potential to achieve anything."

"How lasting the impact of social media will have is yet to be determined, but one thing for sure, it has turned the chain of influence upside down. Today the reader, the lowly reader, that presumably passive consumer of all the great insight handed down by the reporter, confirmed by the analyst, attested to by the reference customer—this reader, I say, has now become the writer! Except it is not a reader/writer. It is reader/writers at large, many readers, the wisdom (or madness) of crowds. We have embarked upon the world's largest and longest cocktail party, and every issue imaginable is up for grabs."

"Without "big data", you are blind and deaf and in the middle of a freeway."

"Marketing has long known how to exploit fads and how to develop trends."

"[Several] companies holds market share in excess of 50 percent in its prime market. All of them have been able to establish strongholds in the early majority segment, if not beyond, and to look forward from that position to continued growth, wondrously strong profit margins, and increasingly preferred relationships as suppliers to their customers. To be sure, some like Oracle and, more dramatically, Netscape have fallen on hard times, but even then customers often bend over backward to give market share leaders second and third chances, bringing cries of anguish from their competitors who would never be granted such grace."

"Visionaries are the first people in their industry segment to see the potential of the High Tech Marketing Enlightenment new technology. Fundamentally, they see themselves as smarter than their opposite numbers in competitive companies—and, quite often, they are. Indeed, it is their ability to see things first that they want to leverage into a competitive advantage. That advantage can only come about if no one else has discovered it. They do not expect, therefore, to be buying a well—tested product with an extensive list of industry references. Indeed, if such a reference base exists, it may actually turn them off, indicating that for this technology, at any rate, they are already too late."

"Entering the mainstream market is an act of burglary, of breaking and entering, of deception, often even of stealth. Mapping out a global assault plan, attacking on all fronts at once, may work for massively intimidating market leaders who already have troops in place throughout the world, but it is just plain silly for stripling challengers. Instead, we need to pick our spots carefully, attack fiercely, and then dig in and hold."

"Just as in literature, where memorable characters like Hamlet or Heathcliff or even Dirty Harry stand out and become symbols for a larger segment of humanity, so in marketing can whole target-customer populations become imagined as teenyboppers, yuppies, pickups and gun racks, or the man in the gray flannel suit. These are all just images—stand-ins for a greater reality—picked out from a much larger set of candidate images on the grounds that they really “click” with the sum total of an informed person’s experience. These were, in short, the memorable ones."

"You need to understand that informed intuition, rather than analytical reason, is the most trustworthy decision-making tool to use."

"First, please note that we are not focusing here on target-market characterization. The place most crossing-the-chasm marketing segmentation efforts get into trouble is at the beginning, when they focus on a target market or target segment instead of on a target customer."

"Six Sigma is a system for improving the quality of organizational processes. It was originally developed at in the 1980's and has become one of the most widely discussed and reported trends in business over the past two years, thanks largely to the phenomenal successes of the Six Sigma program at one of the world's most successful companies, . General Electric CEO Jack Welch, has been preaching about and implementing the Six Sigma philosophy throughout General Electric, and credits the program with millions of dollars in annual cost savings and product quality improvements."

"So much has happened since the first publication of The Six Sigma Way, and it has been rewarding to find that much of what was in the book then still holds true. At the same time, the opportunity to reflect on how organizations have used, or misused, Six Sigma had offered a lot of new insights. We're pleased that this updated book will offer some real benefit to individuals and organizations still focused on driving continuous improvement today.”"

"Six Sigma is a comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding and customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business process."

"The most challenging question confronting business leaders and managers in the new millennium is not "How do we succeed?" It’s: "How do we stay successful?""

"The term "Six Sigma" is a reference to a particular goal of reducing defects to near zero. Sigma is the Greek letter statisticians use to represent the "standard deviation of a population." The sigma, or standard deviation, tells you how much variability there is within a group of items. In statistical terms,, therefore, the purposes of Six Sigma is to reduce variation to reduce variation to achieve very small standard variations so that almost all of your products or services meet or exceed customer expectations"

"One virtue of Six Sigma is that it translates the messiness of variation of variation into a clear black or white measure of success: either a product or service meets customer requirements or it doesn’t. Anything that does not meet customer requirements is called a defect. [One] approach to determining a sigma level is to calculate how many defects occur per opportunities for things to go wrong. The outcome of this calculation is called Defects per Million."

"Six Sigma has three basic parts, which are process improvement, process design/redesign, process management. These parts are important because these three parts affect your organization and the process that were established and are in use on a daily basis. Six Sigma teams when the project is focused on process improvement finds the critical Xs (causes) that create the unwanted Ys (defects) produced by the process."

"Proactive Management : In real world though proactive management means making habits out of what we are, too often, neglected business practices; defining ambitious goals and reviewing them frequently, setting clear priorities, focus on problem prevention rather than firefighting and questioning why we do things instead of blindly defending them."

"Six Sigma is today's most talked-about system for improving the quality of organizational processes. Written by bestselling author Peter Pande, What Is Six Sigma? is a concise summary of the core themes and processes of Six Sigma. Unlike almost all other books on Six Sigma, it is written for the employees of organizations rolling out Six Sigma­­ not just managers. This helpful overview describes what Six Sigma is, why companies are implementing it, and how employees can make it a success in their own organizations."

"Understanding Six Sigma doesn't require any skill or background in statistics."

"Processes are where the Action is: Whether focused on designing products and services, measuring performance, improving efficiency and customer satisfaction or even running the business, Six Sigma positions the process as the key vehicle of success."

"When the technology that has the potential for revolutionizing an industry emerges, established companies typically see it as unattractive: it’s not something their mainstream customers want, and its projected profit margins aren’t sufficient to cover big-company cost structure. As a result, the new technology tends to get ignored in favor of what’s currently popular with the best customers. But then another company steps in to bring the innovation to a new market. Once the becomes established there, smaller-scale innovation rapidly raise the technology’s performance on attributes that mainstream customers’ value."

"The definitive examination of strategic investment from the viewpoint of the people who run the company--the CEO and principal officers. Includes four case histories that follow specific investment projects from their inception to their approval by top management."

"The research described in this book is based on a field investigation of resource allocation in a very large firm. It was motivated by my conviction, stated above, that for purposes of management and research, adequate models of the allocation process are not available. I believe that this lack stems from the fact that prescriptive theories of economic choice have not yet been set in the context of the large organization's political process. The research described below is an attempt to take a step in that direction by developing a descriptive conceptual scheme of the resource allocation process. Because "resource allocation" is an all-encompassing phrase, it is not particularly operational as a subject for research."

"How can we use our new understanding to help top management change the process by which resources are invested so that strategic objectives are more effectively achieved? Strangely enough, given the argument above in favor of recognizing complexity, the next paragraphs develop a very simple conceptual scheme for viewing the firm. This is done because the relationships among the essential forces that have been discussed can be most clearly revealed. Furthermore, a more formal discussion facilitates a more precise statement of the research questions. It might be useful to begin a statement of the scheme with an informal description of its structure. Briefly, the scheme describes a firm's position at any point in time as representing a sum or resultant of past decisions and acts which commit the firm's resources. The process of changing that position is deemed to consist of two parts: (1) routine, and (2) critical. Routine change is the continual use of assets and generation of profit which results from the activities of ongoing business. No more will be said about this class of change. The process of critical change is described in the scheme as consisting of two parts: (1) the "business planning process" and (2) the "investment process." The former involves the problem solving which results in the choice of markets and broad product objectives. The latter involves the problem solving which results in the commitment of corporate resources in an attempt to achieve the chosen objectives."

"[Firms rotate managers ] across functional and divisional lines to help build cooperative climate and contribute to the development of generalist viewpoints... [This practice moves] managers at the business level... where new strategic ideas are developed... every two to three years."

"While evidence reveals the relative unimportance of a particular technique of financial analysis and limited usefulness of the [theoretical] financial model, it also indicates that management can control the investment process."

"To make further progress it is necessary to go beyond the financial model."

"The leading attempt at a complete normative theory of planning and resource allocation is provided by the concept of "strategy.""

"One of the most consistent patterns in business is the failure of leading companies to stay at the top of their industries when technologies or markets change. and entered the radial-tire market quite late. Xerox let Canon create the small-copier market. Bucyrus-Erie allowed Caterpillar and Deere to take over the mechanical excavator market. Sears gave way to ."

"Different types of technological innovations affect performance trajectories in different ways. On the one hand, sustaining technologies tend to maintain a rate of improvement; that is, they give customers something more or better in the attributes they already value... On the other hand, disruptive technologies introduce a very different package of attributes from the one mainstream customers historically value, and they often perform far worse along one or two dimensions that are particularly important to those customers."

"Each time a emerged, between one-half and two-thirds of the established manufacturers failed to introduce models employing the new architecture-in stark contrast to their timely launches of critical sustaining technologies."

"One approach to identifying technologies is to examine internal disagreements over the development of new products or technologies. Who supports the project and who doesn't? Marketing and financial managers, because of their managerial and financial incentives, will rarely support a disruptive technology. On the other hand, technical personnel with outstanding track records will often persist in arguing that a new market for the technology will emerge-even in the face of opposition from key customers and marketing and financial staff. Disagreement between the two groups often signals a disruptive technology that top-level managers should explore."

"We contest the conclusions of scholars such as Tushman and Anderson (1986), who have argued that incumbent firms are most threatened by attacking entrants when the innovation in question destroys, or does not build upon, the competence of the firm. We observe that established firms, though often at great cost, have led their industries in developing critical competence-destroying technologies, when the new technology was needed to meet existing customers’ demands."

"Our findings support many of the conclusions of the resource dependence theorists, who contend that a firm's scope for strategic change is strongly bounded by the interests of external entities (customers, in this study) who provide the resources the firm needs to survive."

"Bower and Christensen (1995) coined the term “disruptive technologies” and Christensen (1997) further describes the theory of disruptive innovations."

"Joseph L. Bower... has been a leader in general management at for 51 years. He also served on the faculty of the Harvard Kennedy School during its first decade. He has served in many administrative roles including Senior Associate Dean. An expert on corporate strategy, organization, and leadership, he has devoted much of his teaching and research to challenges confronting corporate leaders in today’s rapidly changing hyper-competitive conditions. Professor Bower has been active in the development of institutions and programs. Between 1968 and 73 he helped establish the in Vienna, Austria. In 1978, he founded the Program for Senior Managers in Government as a joint program of Harvard Business School and the School of Government; and in 1995 he founded the General Manager Program at Harvard Business School. He was deeply involved in the efforts to build the new joint MBA-MPP degree program offered by the Business School and the Kennedy School of Government."

"The purpose of this book is to show how economic analysis can be used in formulating business policies. It is therefore a departure from the main stream of economic writings on the theory of the firm, much of which is too simple in its assumptions and too complicated in its logical development to be managerially useful. The big gap between the problems of logic that intrigue economic theorists and the problems of policy that plague practical management needs to be bridged in order to give executives access to the practical contributions that economic thinking can make to top-management policies."

"Economic theory makes a fundamental assumption that maximizing profits is the basic objective of every firm. But in recent years, profit maximization has been extensively qualified by theorists to refer to the long run; to refer to management’s rather than to owners’ income; to include non-financial income such as increased leisure for high-strung executives and more congenial relations between executive levels within the firm; and to make allowance for special considerations such as restraining competition, maintaining management control, warding off wage demands, and forestalling anti-trust suits. The concept has become so general and hazy that it seems to encompass most of men’s aims in life."

"Joel Dean [is] one of the most brilliant and fruitful of contemporary business economists."

"Joel Dean has suggested following possible approaches to the problem of forecasting demand for new products :"

"Managerial Economics as a subject gained popularity in U.S.A after the publication of the book “Managerial Economics” by Joel Dean in 1951. Joel Dean observed that managerial Economics shows how economic analysis can be used in formulating policies."

"I never give orders. I sell my ideas to my associates if I can. I accept their judgment if they convince me, as they frequently do, that I am wrong. I prefer to appeal to the intelligence of a man rather than attempt to exercise authority over him."

"Get the facts. Recognize the equities of all concerned. Realize the necessity of doing a better job every day. Keep an open mind and work hard. The last is most important at all. There is no short cut."

"Take my assets — but leave me my organization and in five years I'll have it all back."

"Having been connected with industry during my entire life, it seems eminently proper that I should turn back, in part, the proceeds of that activity with the hope of promoting a broader as well as a better understanding of the economic principles and national policies which have characterized American enterprise down through the years."

"It looks as if the war in Europe is rapidly moving towards a conclusion. Probably I am wrong about that but I can't see how it can be otherwise. It seems clear that the Allies are outclassed on mechanical equipment, and it is foolish to talk about modernizing their Armies in times like these, they ought to have thought of that five years ago. There is no excuse for them not thinking of that except for the unintelligent, in fact, stupid, narrow-minded and selfish leadership which the democracies of the world are cursed with."

"There has to be this pioneer, the individual who has the courage, the ambition to overcome the obstacles that always develop when one tries to do something worthwhile, especially when it is new and different."

"Some have an idea that the reason we in this country discard things so readily is because we have so much. The facts are exactly opposite-the reason we have so much is simply because we discard things so readily. We replace the old in return for something that will serve us better."

"Only in more production and in new production can the American standard of living be increased and the economy be sound."

"Bedside manners are no substitute for the right diagnosis."

"The greatest real thrill that life offers is to create, to construct, to develop something useful. Too often we fail to recognize and pay tribute to the creative spirit. It is that spirit that creates our jobs. There has to be this pioneer, the individual who has the courage, the ambition to overcome the obstacles that always develop when one tries to do something worthwhile, especially when it is new and different."

"Gentlemen, I take it we are all in complete agreement on the decision here. Then, I propose we postpone further discussion of this matter until the next meeting to give ourselves time to develop disagreement, and perhaps gain some understanding of what the decision is all about."

"In the spring of 1920, found itself, as it appeared at the moment, in a good position. On account of the limitation of automotive production during the war there was a great shortage of cars. Every car that could be produced was produced and could be sold at almost any price. So far as any one could see, there was no reason why that prosperity should not continue for a time at least. I liken our position then to a big ship in the ocean. We were sailing along at full speed, the sun was shining, and there was no cloud in the sky that would indicate an approaching storm. Many of you have, of course, crossed the ocean and you can visualize just that sort of a picture yet what happened? In September of that year, almost over night, values commenced to fall. The liquidation from the inflated prices resulting from the war had set in. Practically all schedules or a large part of them were cancelled. Inventory commenced to roll in, and, before it was realized what was happening, this great ship of ours was in the midst of a terrific storm. As a matter of fact, before control could be obtained General Motors found itself in a position of having to go to its bankers for loans aggregating $80,000,000 and although, as we look at things from today's standpoint, that isn't such a very large amount of money, yet when you must have $80,000,000 and haven't got it, it becomes an enormous sum of money, and if we had not had the confidence and support of the strongest banking interests our ship could never have weathered the storm."

"The industry has not grown much during the past three or four years. It is practically stabilized at the present [1927]. What has taken place is a shift from one manufacturer to another."

"You of course appreciate that this industry of ours the is today the greatest in the world. Three or four years ago it passed, in volume, steel and steel products, the next largest industry. This means, expressed otherwise, that upon its prosperity depends the prosperity of many millions of our citizens and the degree to which it has become stabilized in turn has a tremendous influence on the stabilization of industry as a whole, and therefore on the prosperity and happiness of still many more of our citizens. Directly and indirectly, this industry distributes hundreds of millions of dollars annually to those who are connected with it, in one way or another, as workers. It also distributes hundreds of millions of dollars in the aggregate to those who have invested in its securities. The purchasing power of this total aggregation, as you must appreciate, is tremendous."

"What has taken place is a shift of business from one manufacturer to another, and the announcements in the press as well as the general publicity of those manufacturers who have succeeded in increasing their business give, I think, the impression that this is true of the whole industry. If we could assume, for the sake of argument, that we will reach the point at which twenty-five million cars and trucks will be registered in the United States an assumption that from what we have accomplished so far is certainly perfectly reasonable then I think we could safely say that the replacement demand, plus the export demand which will increase for many years yet, plus the normal growth, would amount to something like four to four and one half million vehicles a year and would require the manufacture of a number of cars equal to or greater than has yet been produced in any year in the history of the industry..."

"Let me deal here with what General Motors includes and with the responsibility that rests on its management."

"Let me tell you about what we call our field trips. It may surprise you to know, that I have personally visited, with many of my associates, practically every city in the United States, from the Atlantic to the Pacific and from Canada to Mexico. If any of you has done this, you realize what big a country it is. It has taken me weeks and weeks of the hardest kind of work and continual travel to accomplish this. I which that my duties were such that I could do more of it; and I am trying to arrange my affairs so that I can. On these trips I visit from five to ten dealers a day. I meet them in their own places of business, talk with them across their own desks and solicit from them suggestions and criticisms as to their relations with the Corporation; the character of the product; the Corporation's policies; the trend of consumer demand; their viewpoint as to the future, and many other things that such contact makes possible. I solicit criticism of anything and everything."

"We must move toward a soundly based and widely distributed economic well-being. This is the 'theory of plenty' as distinguished from the 'theory of scarcity' which has dominated our recent economic thinking and politics. Our yardstick, according to my thinking, I consists of the most effective balance between the following: First, the reduction in the real costs and selling! prices of goods and services; second, a more economic balance of national income through policies affecting wages, hours, prices and profits."

"Industry must further expand its horizon of thinking and action Industry must further expand its horizon of thinking and action. It must assume the role of an enlightened industrial statesmanship. To the extent that it accepts such broadened responsibilities, to that degree does it assure the maintenance of private enterprise, and with it the exercise of free initiative as the most efficient creator of wealth."

"First let us ask whether our wealth-creating agencies, particular that of industry, are to be based upon private enterprise of policy management. I can not see how any intelligent observer can have any possible faith in the capacity of political management to provide either stability or progress if it should set out to operate the agencies of wealth creation, particularly industry. It is my firm conviction that any form of 'Government Regulation of Business' is bound to result in an ever-increasing interference with the broad exercise of initiative - the very foundation of the American system. That is the natural evolution of bureaucracy. If that be so, might not the ultimate logical result be the necessity for the socialization of industry through the break down of the profit system induced by the accumulative effect of the ever-increasing political management. We do not need to go far afield to see definite evidences of that possibility"

"I have already remarked that the 'theory of scarcity has been a dominating influence in many of our economic policies. In the case of taxation, however, there is involved the 'theory of plenty' and there must now be involved the 'theory of plenty more.' Every dollar of the billions that are being indiscriminately spent without accountability is a mortgage on the income, the savings, as well as the security of the people. There must be brought home to the consciousness of all that the more the government takes, the less each one has no one can possibly escape."

"A recovery after a depression is as inevitable as that day follows night. It can not be permanently suppressed. Its vitality is so powerful that it will break down the barriers set up by the most arbitrary dictator. Hence there is developing a new confidence and a new faith in those principles which have formed the the foundation of economic evolution and industrial progress during the last several decades — principles which we have been proud to call "American principles," and for which we have been reared with a wholesome respect. There are still lacking the assurances of a broad and definitely defined opportunity and the elimination of certain unsound economic policies, thus limiting the application of these vital principles we have always known and retarding their ability to accelerate our economic recovery."

"Some see danger in bigness. They fear the concentration of economic power that it brings with it. That is in a degree true. It simply means, however, that industrial management must expand its horizons of responsibility. It must recognize that it can no longer confine its activities to the mere production of goods and services. It must consider the impact of its operation on the economy as a whole in relation to the social and economic welfare of the entire community. For years I have preached this philosophy. Those charged with great industrial responsibility must become industrial statesmen."

"Industry's responsibilities broaden. Its leaders must develop an enlightened and militant statesmanship, for progress in the solution of these problems is vital. If this responsibility is not assumed and discharged from within industry, it is bound to be superimposed from without."

"There was excitement for us all in the fact that I had a job in the mechanical field, so that my education would count.... Well, I am bound to admit the first sight of my opportunity was disappointing... Not far from a city dump on a weed-grown, marshy plain was an old weather-worn building, like an overgrown barn. In its indefinite yard there was a small mound of coal and a great mound of reddish-gray cinders and ashes; also a disorderly accumulation of discarded machinery ... Once the factory had been painted brown. Only one word describes it: "dirty." Smoke from the dump carried an acric odor. Eventually across the wall nearest the railroad track there was lettered in black this legend: HYATT ROLLER BEARING COMPANY"

"Technological progress — and it is a pity more do not appreciate it — is the one sound approach to increased employment and higher wages. There is no other way. Irrespective of what is being said to the contrary, new industries can be created, present industries can be expanded, unemployment can be eliminated in a practical way"

"Roll a ball under your hand on a table and roll a pencil in the same manner. What you feel are "point" and "line" bearings. But to understand what mechanics mean by a surface "bearing," grasp a pencil in your hand and use your other hand to make it turn as a piece of shafting. Now, the lower half of the shaft is supported everywhere by contact with your hand — the upper half is not supported, merely covered. The advantages of ball and roller bearings were obvious many years ago to mechanical people... Solid steel rollers, being inflexible, were not satisfactory at that stage, but a Hyatt flexible roller bearing was different. We had something. Our spirally wound tube roller had a springlike quality, yielded to irregularities caused by poor manufacture, thus making automatic adjustments between housing and bearing."

"It is astonishing what you can do when you have a lot of energy, ambition and plenty of ignorance."

"Naturally. I like to see General Motors stock register a good price on the market, but that is just a matter of pride... What has counted with me is the true value of the property as a business return on investment."

"Manifestly, in any organization men should move from the bottom up to the top. That develops loyalty, ambition and talent, because there is a chance for promotion. Never inject a man into the top if it can be avoided. In a big organization to have to do that, I think, is a reflection on management. Of course there are always exceptional cases. As the years have passed, developing, as they naturally have, emergencies at times, I have been gratified to find that we have, with very few exceptions, been able to find right within ourselves some individual capable of assuming a greater responsibility, and he has always been given the opportunity."

"Many associate the word scientific with physics. But it means much more than that. Scientific management means a constant search for the facts, the true actualities, and their intelligent, unprejudiced analysis. Thus, and in no other way, policies and their administration are determined. I keep saying to the General Motors organization that we are prepared to spend any proper amount of money to get the facts. Only by increased knowledge can we progress, perhaps I had better say survive. That is really research, but few realize research can and should be just as effectively used in all functional branches of industry as in physics"

"But as president of General Motors, I realized our thinking affected the lives of hundreds of thousands directly and influenced the economic welfare of many important communities, in some of which we were almost the sole provider. In some way, visible or invisible, as we expanded, the economic welfare of millions was becoming linked with the welfare of General Motors. Previously, when industry was smaller, the absorbing problems of industrial management were largely limited to the fields of engineering, production and distribution. Out of its endeavors in these fields had come a continuous stream of new products, providing new comforts and making possible better ways of living. General Motors was becoming large through a process of evolution, but only because it was rendering a service to community. As its volume of business expanded it became able to do more for workers, stockholders and customers."

"Growth and progress are related, for there is no resting place for an enterprise in a competitive economy."

"I had trouble at first, in the early 1900s, in selling Mr. Leland our roller bearings. He then taught me the need for greater accuracy in our products to meet the exacting standards of interchangeable parts. Mr. Leland came to the industry with a mature experience in general engineering and in gasoline engines, which he had long made for boats. One of his specialties was precision metalwork, which went back to his experience in toolmaking for a federal arsenal during the Civil War, and which he afterward developed in the Brown and Sharpe Company, machine-tool makers of Providence, Rhode Island. It has been called to my attention It has been called to my attention that Eli Whitney, long before, had started the development of interchangeable parts, a fact which suggests a line of descent from Whitney to Leland to the automobile industry."

"My father was in the wholesale tea, coffee, and cigar business, with a firm called Bennett-Sloan and Company. In 1885 he moved the business to New York City, on West Broadway, and from the age of ten I grew up in Brooklyn. I am told I still have the accent. My father's father was a schoolteacher. My mother's father was a Methodist minister. My parents had five children, of whom I am the oldest. There is my sister, Mrs. Katharine Sloan Pratt, now a widow. There are my three brothers — Clifford, who was in the advertising business; Harold, a college professor; and Raymond, the youngest, who is a professor, writer, and expert on hospital administration. I think we have all had in common a capability for being dedicated to our respective interests."

"Starting in 1918 at General Motors I found to my surprise] that if I followed the prevailing practice of intercorporate relations I would no longer be able to determine the rate of return on investment for these accessory divisions individually or as a group. This would necessarily mean that I would lose some degree of managerial control over my area of operations. At that time, material within General Motors was passing from one operating division to another at cost, or at cost plus some predetermined percentage. My divisions in the United Motors Corporation had sold both to outside customers and to their allied divisions at the market price. I knew that I operated a profit-making group, and I wished to continue to be able to demonstrate this performance to the general management, rather than to have my operating results on interdivisional business swallowed up in the extra bookkeeping profits of some other division. It was a case of keeping the information clear."

"It was not, however, a matter of interest to me only with respect to my divisions, since as a member of the Executive Committee, I was a kind of general executive and so had begun to think from the corporate viewpoint. The important thing was that no one knew how much was being contributed — plus or minus — by each division to the common good of the corporation. And since, therefore, no one knew, or could prove, where the efficiencies and inefficiencies lay, there was no objective basis for the allocation of new investment. This was one of the difficulties with the expansion program of that time. It was natural for the divisions to compete for investment funds, but it was irrational for the general officers of the corporation not to know where to place the money to best advantage. In the absence of objectivity it was not surprising that there was a lack of real agreement among the general officers. Furthermore, some of them had no broad outlook, and used their membership on the Executive Committee mainly to advance the interests of their respective divisions."

"I had taken up the question of interdivisional relations with Mr. Durant [president of GM at the time] before I entered General Motors and my views on it were well enough known for me to be appointed chairman of a committee "to formulate rules and regulations pertaining to interdivisional business" on December 31, 1918. I completed the report by the following summer and presented it to the Executive Committee on December 6, 1919. I select here a few of its first principles which, though they are an accepted part of management doctrine today, were not so well known then. I think they are still worth attention."

"Competition is the final price determinant and competitive prices may result in profits which force you to accept a rate of return less than you hoped for, or for that matter to accept temporary losses. And, in times of inflation, the rate-of-return concept comes up against the problem of assets undervalued in terms of replacement. Nevertheless, no other financial principle with which I am acquainted serves better than rate of return as an objective aid to business judgment. This principle had governed the thinking of the Finance Committee of General Motors since 1917."

"By The middle of The 1920s General Motors had accomplished some things, but apart from survival and reorganization, they were more in the realm of the mind than of reality. We knew, as I have related, the strategy with which we proposed to approach the car business, how we proposed to manage the enterprise financially, and the relationships we wanted to establish among persons in different roles. But by the end of 1924 little of this was reflected in Our activities in the automobile market. That our volume of business had increased after the slump of 1921 — and especially in 1923 — could be attributed less to our own wits than to the improvement in the general economy and the rising demand for automobiles. While internally we had made much progress, externally we had marked time. But the time had come to act."

"The transformation of the automobile market was essentially complete in 1929. If Mr. Ford, in that pivotal year in the modern economy, still held stubbornly to his old concept in his new Model A, he was counterbalanced by Mr. Chrysler, who had come up from nowhere with tremendous vitality and with a market policy similar to General Motors'. The fact that Mr. Ford built nearly two million of the five million U.S.-produced cars and trucks sold that year was only incidental from the long-term point of view. it was a splurge, not the sign of a trend."

"Competition is the final price determinant and competitive prices may result in profits which force you to accept a rate of return less than you hoped for, or for that matter to accept temporary losses."

"I then went on to suggest that we make a serious effort to gauge the demand over the next five to ten years, and make plans to meet that demand. In building new facilities, I suggested that we "use corporation funds for such new plants needed for armament if that gives us better control over same from the long term position in relation to the master plan." Accelerated depreciation made the use of corporate funds all the more feasible, and relieved the government of the necessity of providing capital for the plants."

"I am sure we all realize that this struggle that is going on though the World is really nothing more or less than a conflict between two opposing technocracies manifesting itself to the capitalization of economic resources and products and all that sort of thing."

"In the 1920... the closed body rose to dominance, the Model T came to an end, and the upgrading of cars began. The events of the past few years of car market, I believe, have validated the General Motors product policy that we formulated in 1921. John Gordon, president of General Motors, recently observed that our slogan of “a car for every purse and purpose” is as appropriate as ever; indeed, we have never offered our customers greater variety and choice than we do today. In the 1963 model year the industry offers 429 models of domestically produced cars, compared with 272 in 1955; General Motor alone had 138 models in 1963, compared with 85 in 1955."

"I hold that if companies are attacked simply because they are big then an attack on efficiency must be a corollary of that attack. If we penalize efficiency, how can we as a nation compete in the economy of the world at large?"

"The business of business is business."

"Before World War II management was the concern of a tiny band of “true believers,” mostly consultants and professors. Very few practicing managers paid any attention, though Alfred P. Sloan at General Motors, at Sears, Roebuck, and Chester Barnard at the American Telephone Company—to mention some prominent Americans—were significant exceptions. But even Barnard’s colleagues at the Telephone Company showed no interest in what they considered his hobby. Few managers at that time would have even realized that they practiced management; and concern with management as a field of study, as a discipline, and as a social function was practically nonexistent."

"Around 1930, Sloan considered the problem of ride quality as one of the most pressing and most complex in , and the problem was getting worse as car speeds increased. The early solid rubber tyres had been replaced by vented thick rubber, and then by inflated tyres. In the 1920s, tyres became even softer, which introduced increased problems of handling stability and axle vibrations. On a trip to Europe, Sloan met French engineer who had patented a successful independent suspension, and had him visit the US to make contact with GM engineers. Also, by 1933 already had an independent front suspension, which was on cars imported to the USA. , who had previously worked for Rolls-Royce, was employed by GM, and worked on the introduction of independent suspensions there. In Sloan's autobiography, a letter from Olley describes an early ride meter, which was simply an open-topped container of water, which was weighed after a measured mile at various speeds. Rolls-Royce had been looking carefully at ride dynamics, including measuring body inertia, trying to get a sound scientific understanding of the problem, and Olley introduced this approach at GM."

"The power structure will generally dictate the operative goals of the organization."

"Multiple leadership, as a stable system of goal determination and policy setting, is most likely to be found in organizations where there are multiple goals and where these goals lack precise criteria of achievement and allow considerable tolerances with regard to achievement. Organizations with a single goal [i.e., proprietary hospitals] or a clear hierarchy of goals provide little basis for multiple leadership. Multiple leadership arises because important group interests diverge, and each group has the power to protect its interests."

"For many purposes of organizational analysis technology might not be an independent variable but a dependent one."

"In a modern society, where large organizations have acquired unprecedented importance, social scientists have increasingly sought to understand the nature of organizational goals - what they are, what shapes or determines them, what their impact is upon the environment, and how they change."

"Product of complex interactions within and between the organization’s social structure, leadership groups and environment. ... They are never static but subject to continual pressure and changes over time."

"Covers the history and tradition, the precedents and established commitments involved in all past action. These limit, though not determine, the present actions that any one group may take. If any single thing deserved the designation “the institution” or “the hospital” it would be this.”"

"Some of these by-products [of official goals] may become so important to the participants who make up the institution as to constitute unofficial goals. “I would not be interested in this hospital unless it...” did something or other. “The trouble with this place is everyone is so concerned with” this or that pursuit. Where these blanks are not filled in with good patient care, teaching and research we have unofficial goals of some group or individual, and thus we have uses to which the institution is put other than the avowed ones."

"What do individuals or groups of similarly hope to gain from participation in the affairs of the organization? Or, to use an awkward phrase we shall reiterate frequently, what are the uses to which they put the organisation?"

"Unambiguous pursuit of official goals is not likely to be common."

"Where and how will official goals be subverted?"

"Most studies of the internal operation of complex organizations, if they mention goals at all, have taken official statements of goals at face value. This may be justified if only a limited problem is being investigated, but even then it contributes to the view that goals are not problematical. In this view, goals have no effect upon activities other than in the grossest terms; or it can be taken for granted that the only problem is to adjust means to given and stable ends. This reflects a distinctive "model" of organizational behavior, which Gouldner has characterized as the rational model. Its proponents see the managerial elite as using rational and logical means to pursue clear and discrete ends set forth in official statements of goals, while the worker is seen as governed by non-rationalistic, traditionalistic orientations."

"Official goals are the general purposes of the organization as put forth in the charter, annual reports, public statements... Official goals are purposely vague and general and do not indicate two major factors which influence organizational behavior: the host of decisions that must be made among alternative ways of achieving official goals, and the priority of multiple goals and the many unofficial goals pursued by groups within the organization."

"Operative goals designate the ends sought through the actual operating policies of the organization; they tell us what the organization actually is trying to do, regardless of what the official goals say are the aims."

"The dominant group, reflecting the imperatives of the particular task that is most critical (to the organization), their own background characteristics (distinctive perspectives based on their training, career lines, and areas of competence) and the unofficial uses to which they put the organization for their own ends."

"The operative goals will be shaped by the dominant group, reflecting the imperatives of the particular task area that is most critical, their own background characteristics (distinctive perspectives based upon their training, career lines, and areas of competence) and the unofficial uses to which they put the organization for their own needs."

"Organisations are viewed as systems which utilise energy in a patterned, directed effort to alter the condition of basic materials in a predetermined manner."

"From one point of view, structure is a part of technology; for example the spread of the bureaucratic form of organization might be said to be the most profound technological innovation in the last 3 or 4 centuries."

"Technology is a technique or complex of techniques employed to alter “materials” (human or nonhuman, mental or physical) in an anticipated manner."

"Two aspects of this work process are of critical importance."

"In research terms, the issue is to examine and explain the variations within and among residential institutions."

"All complex organizations use people to pursue their tasks, but people-changing organizations work not only with or through people but also on them. People constitute the raison d'etre of these organizations, and, and, as our label suggests, the desired product is a new or altered person. People-changing organizations can be contrasted with organizations that produce, distribute, or service inanimate objects or symbols. The latter may have important consequences for their members' statuses, role-orientations, identities, and personalities, but these alterations are usually incidental, personal, or instrumental. In people-changing organizations the alterations re the primary end. Conceived in this way, the term "people-changing" encompasses a broad variety of organizations, ranging from the monastery (which cleanses the soul while teaching the outward signs of grace) to Menninger's (which restructures the personality), and even to the House of Venus (which reshapes buttocks and identity simultaneously)."

"Executives were closely observed at work at their desks, at staff meetings, while talking with inmates or moving about the grounds and so on, and again in the feedback sessions when we gave them findings."

"[People-processing institutions are] a type of social institution in which human beings constitute both the raw materials and the products of organizational work. Although all social institutions are involved in some degree in people-processing activities, the term is properly restricted to those whose primary goal is the shaping, reshaping, removing, overhauling, retooling, reassembling, and recording the physical, psychological, social, legal, or moral aspects of human objects."

"Inspection of the questionnaires also indicated that because staff members in the more custodial institutions were more willing to use negative sanctions they probably were confronted with less disruptive behavior, since the inmates recognized the costs of acting as they felt."

"Frequent scheduling of mass activities in the company of other inmates, group punishment, and administering physical punishment before groups of inmates enhance the probability that inmates identify strongly with one another against staff. When, in addition, staff maintain domineering authority relationships and considerable social dishance, inmates further perceive themselves as members of a group opposed to staff, and divergent interests between these groups are more fully recognized"

"Organizations are seen primarily as systems for getting work done, for applying techniques to the problem of altering raw materials - whether the materials be people, symbols or things."

"By technology is meant the actions that an individual performs upon an object, with or without the aid of tools or mechanical devices, in order to make some change in that object. The object, or 'raw material', may be a living being, human or otherwise, a symbol, or an Inanimate object. People are raw materials in people-changing or people-processing organizations; symbols are materials in banks, advertising agencies, and some research organizations; the interactions of people are raw materials to be manipulated by administrators in organizations; boards of directors, committees, and councils are usually Involved with the changing or processing of symbols and human interactions, and so on."

"Techniques are performed upon raw materials. The state of art of analyzing the characteristics of the raw materials is likely to determine what kind of technology will be used. (Tools are also necessary, of course, but by and large, the construction of tools is a simpler problem than the analysis of the nature of the material and generally follows the analysis.) To understand the nature of the material means to be able to control it better and achieve predictability and efficiency in transformation. We are not referring here to the 'essence of the material, only the way the organization perceives it to be ... The other relevant characteristic of the raw material, besides the understandability of Its nature, is Its stability and variability; that is, whether the material can be treated in a standardized fashion or whether continual adjustment to it is necessary. Organizations uniformly seek to standardize their raw material In order to minimize exceptional situations. This is the point of de-individualizing processes found in military academies, monasteries and prisons, and the superiority of the synthetic shoe material Corfam over leather."

"To call for decentralization, representative bureaucracy, collegial authority, or employee-centered, innovative or organic organizations - to mention only a few of the highly normative prescriptions that are being offered by social scientists today - is to call for a type of structure that can be realized only with a certain type of technology, unless we are willing to pay a high cost in terms of output. Given a routine technology, the much maligned Weberian bureaucracy probably constitutes the socially optimum form of organizational structure."

"The less the expertise, the more direct the surveillance, and the more obtrusive the controls. The more the expertise, the more unobtrusive the controls. The best situation of all, though they do not come cheap, is to hire professionals, for someone else has socialized them and even unobtrusive controls are hardly needed. The professional, the prima donna of organizational theory, is really the ultimate eunuch - capable of doing everything well in that harem except that which he should not do, and in this case that is to mess around with the goals of the organization, or the assumptions that determine to what ends he will use his professional skills."

"It is surprising how much discipline is imposed upon theory by requiring that it ‘make a difference’ and provide guidance or useful illumination. I learned long ago from students in professional schools that questions of ‘so what’ or ‘what relevance does this have’ do not signify impatience with theory per se, much less anti-intellectualism, but only impatience with the obvious, general, remote, and vague statements that often parade as social science theory. One test of good theory is that it have practical implications."

"Chapter Five deals with the messiest problem of all— but the one to which all analytical roads should lead : the nature of organizational goals and the strategies used to achieve them."

"The structural viewpoint considers the roles people play, rather than the nature of the personalities in these roles. It deals with the structures in which roles are performed— the relationship of groups to each other, such as sales and production, and the degree of centralization or decentralization."

"People's attitudes are shaped at least as much by the organization in which they work as by their pre-existing attitudes."

"Apparent leadership problems are often problems of organizational structure."

"Once a definition is embedded in a program, the opinions of personnel who remain at the institution become congruent with it."

"Bureaucracy is a dirty word, both to the average person and to many specialists on organizations. It suggests rigid rules and regulations, a hierarchy of offices, narrow specialization of personnel, an abundance of offices or units which can hamstring those who want to get things done, impersonality, resistance to change."

"A great deal of organizational effort is exerted to control the effects of extra-organizational influence:; upon personnel. Daily, people come contaminated into the organization... Many of the irritating aspects of [[organizational structure] are designed to control these sources of contamination."

"For our purposes then, the bureaucratic model refers to an organization which attempts to control extra-organizational influences (stemming from the characteristics of personnel and changes in the environment) through the creation of specialized (staff) positions and through such rules and devices as regulations and categorization."

"Routine tasks... are well-established techniques which are sure to work, and these are applied to essentially similar raw materials, That is, there is little uncertainty about methods and little variety or change in the tasks that must be performed."

"Nonroutine tasks:... There are few well-established techniques; there is little certainty about methods, or whether or not they will work. But it also means that there may be a variety of different task to perform, in the sense that raw materials are not standardized, or orders for customers ask for many different or custom-made products."

"Most social scientists consider the non-bureaucratic, or nonroutine organization to be good and the bureaucratic or routine organization to be bad (it impedes progress, is old- fashioned, is hard on its employees, etc.). But this judgment is debatable."

"While [bureaucratic] solutions have been frequently criticized by those within and without the organization, no alternative way has been found to cope with the problem of organizing large numbers of people to produce goods and services efficiently."

"The concept of organizational goals, like the concepts of power, authority, or leadership, has been unusually resistant to precise, unambiguous definition. Yet a definition of goals is necessary and unavoidable in organizational analysis. Organizations are established to do something; they perform work directed toward some end."

"Organization theory...has been altogether too accommodating to organizations and their power."

"People do not exist just for organizations. They track all kinds of mud from the rest of their lives into the organization, and they have all kinds of interests that are independent of the organization."

"Without this form of social technology, the industrialized countries of the West could not have reached the heights of extravagance, wealth and pollution that they currently enjoy."

"Particularism means that irrelevant criteria like e.g. only relatives of the boss have a chance at top positions, in contrast to universalistic criteria like e.g. competences is all that counts, are employed in choosing employees... The particularistic criteria are likely to be negatively related to performance."

"Barnard comes close to joining Roethlisberger and Dickson in their assumption that management behavior is mainly rational and workers' behavior nonrational."

"People in these fields no longer agree that such things as norms, values, and personality really exist or account for much; these concepts may only give a false sense of order to a world that both the academic and the person in the street desperately want to order. Sociology, too, is having some difficulty swallowing the simple, obvious proposition that attitudes predict behavior. (The proposition that morale predicts productivity is just one specification of this.)"

"It [the human relations school ] lacks empirical support and conceptual clarity, and it fails to grapple with the realities of authoritarian control in organizations and the true status of the subordinate"

"The vast proportion of the activity in organizations goes on without personal directives and supervision – and even without written rules – and sometimes in permitted violation of the rules."

"Since organizations are established to do something, to perform work directed to some end, all organizations have goals – some implied, some explicit."

"The Basic Argument In its simplest form, the argument goes like this: when the tasks people perform are well understood, predictable, routine, and repetitive, a bureaucratic structure is the most efficient. Things can be "programmed," to use March and Simon's term. Where tasks are not well understood, generally because the 'raw material' that each person works on is poorly understood and possibly reactive, recalcitrant or self activating. the tasks are non-routine. Such units or organizations are difficult to bureaucratize."

"As with all theories, we can learn something from agency theory and transaction-costs economics, since they emphasize something others hide. But as with all theories, they also distort; in fact, I will argue that their distortions outweigh the value of what they highlight."

"From the beginning, the forces of light and the forces of darkness have polarized the field of organizational analysis, and the struggle has been protracted and inconclusive. The forces of darkness have been represented by the mechanical school of organizational theory — those who treat the organization as a machine. This school characterizes organizations in terms o£ such things as:"

"Then the works of Max Weber, first translated from the German in the 1940s — he wrote around 1910, incredibly — began to find their way into social science thought. At first, with his celebration of the efficiency of bureaucracy, he was received with only reluctant respect, and even with hostility. All writers were against bureaucracy. But it turned out, surprisingly, that managers were not. When asked, they acknowledged that they preferred clear lines of communication, clear specifications of authority and responsibility, and clear knowledge of whom they were responsible to. They were as wont to say "there ought to be a rule about this," as to say "there are too many rules around here," as wont to say "next week we've got to get organized," as to say "there is too much red tape." Gradually, studies began to show that bureaucratic organizations could change faster than non-bureaucratic ones, and that morale could be higher where there was clear evidence of bureaucracy."

"Another discipline began to intrude upon the confident work and increasingly elaborate models of the human relations theorists (largely social psychologists) and the uneasy toying with bureaucracy of the "structionalists" (largely sociologists). Both tended to study economic organizations. A few, like Philip Selznick, were noting conflict and differences in goals (perhaps because he was studying a public agency, the Tennessee Valley Authority), but most ignored conflict or treated it as a pathological manifestation of breakdowns in communication or the ego trips of unreconstructed managers."

"The burning cry in all organizations is for “good leadership,” but we have learned that beyond a threshold level of adequacy it is extremely difficult to know what good leadership is."

"The hundreds of scientific studies of this phenomenon come to one general conclusion: Leadership is highly variable or "contingent" upon a large variety of important variables such as nature of task, size of the group, length of time the group has existed, type of personnel within the group and their relationships with each other, and amount of pressure the group is under. It docs not seem likely that we'll be able to devise a way to select the best leader for a particular situation. Even if we could, that situation would probably change in a short time and thus would require a somewhat different type of leader."

"I once believed that if organizations had a better fit between their technology and their structure, they would be more efficient and thus more profitable."

"It [a power based model of organization] sees organizations a intentional human constructions but not necessarily rational systems guided by official goals; as bargaining areas rather than cooperative systems; as systems of power rather than coercive institutions reflecting cultural norms, and as resources for other organizations and groups rather than closed systems. If we define organizations, then, as intentional human constructions wherein people and groups within and without the organization compete for outputs of interest them under conditions of unequal power, we have posed the issue of effectiveness quite differently"

"This article [entitled A framework for the comparative analysis of organizations], was one of three independent statements in 1967 of what came to be called "contingency theory." It held that the structure of an organization depends upon (is ‘contingent’ upon) the kind of task performed, rather than upon some universal principles that apply to all organizations. The notion was in the wind at the time."

"American society today is shaped not nearly as much by vast open spaces as it is by vast, bureaucratic organizations. Over half the working population toils away at enterprises with 500 or more employees--up from zero percent in 1800. Is this institutional immensity the logical outcome of technological forces in an all-efficient market, as some have argued?"

"I consider all large organizations troublesome, including governmental and nonprofit organizations. They concentrate power in the hands of their top management; the larger the organization, the greater the power being concentrated. There are degrees of concentration of course, and some large organizations are so disorganized that they lose much of their potential power. But size is generally correlated with these kinds of power: By deciding where to locate they determine economic opportunities for some communities and deny it to others. Their hiring decisions affect the life chances of people, and can, unless checked, favor religious, ethnic, racial, and political affiliations. As consumers of resources, they can favor certain producers over others, and not necessarily on the grounds of “efficiency.” They can mobilize political resources to insure favored treatment better than small organizations."

"As an organizational sociologist, I was interested in the system characteristics of large accidents, but the discipline also made me aware of the organizational genesis of male-made disasters."

"The essence of the normal accident [is] the interaction of multiple failures that are not in a direct operational sequence."

"Most normal accidents have a significant degree of incomprehensibility."

"The nuclear power industry, for example, lacks a strong union, has random public victims with delayed effects, has no safety board that is independent of licensing and regulatory functions, and does not see an immediate effect on its profits if safety flags (though a far more severe incentive exists to avoid a catastrophic accident which could shut down the industry)"

"Engineers speak of a “control loop,” in which the “man in the loop” is the problematical element. This is the human component in a series of sequentially interacting pieces of equipment that control or adjust a function. But when the pilot is suddenly and unexpectedly brought into the control loop (in other words, participates in decision making) as a result of (inevitable) equipment failure, he is disoriented. Long periods of passive monitoring make one unprepared to act in emergencies. The sudden appearance of several alarms, all there for safety reasons, leads to disorientation."

"Organizational theorists, at least since the pioneering work of Burns and Stalker, 1961 and Joan Woodward, 1965 and others in what came to be called the contingency school, have recognized that centralization is appropriate for organizations with routine tasks, and decentralization for those with nonroutine tasks. For an early statement see Perrow 1967, and Lawrence and Lorch, 1967."

"It takes just the right combination of circumstances to produce a catastrophe, just as it takes the right combination of inevitable errors to produce an accident."

"If one has heard of Charles Perrow, it is usually in connection with the book Complex Organizations. While this monograph provides an excellent overview of various schools of organizational thought, it deals only marginally with Perrow's own theories. The scholarship that focuses solely on his conception of organization, however, is far less known and well received for a number of reasons. Perrow is an organizational sociologist working in a field dominated by management theorists and economists whose scholarship revolves around human relations and econometric models - approaches Perrow largely reject."

"Normal Accidents contributed key concepts to a set of intellectual developments in the 1980s that revolutionized the conception of safety and risk. It made the case for examining technological failures as the product of highly interacting systems, and highlighted organizational and management factors as the main causes of failures. Technological disasters could no longer be ascribed to isolated equipment malfunction, operator error or acts of God... Perrow concluded that the failure at Three Mile Island was a consequence of the system's immense complexity. Such modern high-risk systems, he realized, were prone to failures however well they were managed. It was inevitable that they would eventually suffer what he termed a 'normal accident'. Therefore, he suggested, we might do better to contemplate a radical redesign, or if that was not possible, to abandon such technology entirely."

"Organization is the arrangement of personnel for facilitating the accomplishment of some agreed purpose through the allocation of functions and responsibilities. It is the relat­ing of efforts and capacities of individuals and groups engaged upon a common task in such a way as to secure the desired objective with the least friction and the most satisfaction to those for whom the task is done and those engaged in the enterprise."

"New plains frontier was politically organized and opened and settled with little, if any, heed to its natural features of climate and land cover."

"Leonard D. White's desire "to organize his own knowledge" reminds us of how much hacking away at a jungle has to be done at such an early stage in the study of and reporting on a new field."

"You who are apprentices in the field of public administration share with me who am older the task of trying to understand the new conditions in our field. Within a single generation, two world wars and a major depression have engulfed mankind. Within the past few months, the successful trial of the atomic bomb has opened the minds of the thoughtful to new possibilities, threats and coercions, and the defeat of Germany and Japan has abruptly presented the problems of peacemaking and reconstruction to war- weary masses of people. They seek release from their tragedies, deprivations and tensions, often in ways that defeat efforts to understand and attack the problems that confront them. To make progress in such a time, we must recruit widely and work as a guild, young and old together, to achieve a co-operative and cumulative effort whether in academic or governmental posts."

"The study of public administration must include its ecology. "Ecology," states the Webster Dictionary, "is the mutual relations, collectively, between organisms and their environment." J. W. Bews points out that "the word itself is derived from the Greek oikos a house or home, the same root word as occurs in economy and economics. Economics is a subject with which ecology has much in common, but ecology is much wider. It deals with all the inter-relationships of living organisms and their environment." Some social scientists have been returning to the use of the term, chiefly employed by the biologist and botanist, especially under the stimulus of studies of anthropologists, sociologists, and pioneers who defy easy classification, such as the late Sir Patrick Geddes in Britain."

"An ecological approach to public administration builds, then, quite literally from the ground up; from the elements of a place — soils, climate, location, for example — to the people who live there — their numbers and ages and knowledge, and the ways of physical and social technology by which from the place and in relationships with one another, they get their living. It is within this setting that their instruments and practices of public housekeeping should be studied so that they may better understand what they are doing, and appraise reasonably how they are doing it. Such an approach is of particular interest to us as students seeking to co-operate in our studies; for it invites — indeed is dependent upon — careful observation by many people in different environments of the roots of government functions, civic attitudes, and operating problems."

"The task will be more fruitfully performed if the citizen, and his agents in public offices, understand the ecology of government."

"Students of administration, writes J. M. Gaus, have become "more uncertain in recent years as to the ends, aims and methods which they should advocate/' It is difficult to view in their entirety and in perspective the writings on public administration that now pour from the presses. But this is hardly necessary to confirm the truth of Gaus' statement."

"One can only wonder what the discussions must have been like when John M. Gaus and were colleagues in the same department. On the subject of technology in administration, their interests overlapped and at the same time diverged. White repeatedly focused on the first of the three crossover (exchange) relationships between technology and administration. His tendency, though with a full knowledge of politics, led toward the technocrats. He focused repeatedly on how equipment was used in the administrative process. Gaus placed "physical technology" among the seven factors that were "useful in explaining the ebb and flow of the functions of government.""

"If both a legal rule and its opposite can be efficient because neither affected party can induce the other to waive the initially assigned rights, then either seems to be wealth maximizing."

"At the broadest and vaguest level, cost-benefit analysis may be regarded simply as systematic thinking about decision-making. Who can oppose, economists sometimes ask, efforts to think in a systematic way about the consequences of different courses of action? The alternative, it would appear, is unexamined decision-making. But defining cost-benefit analysis so simply leaves it with few implications for actual regulatory decisionmaking."

"My own judgement is that modest efforts to assess levels of benefits and costs are justified, although I do not believe that government agencies ought to sponsor efforts to put dollar prices on non-market things. I also do not believe that the cry for more cost-benefit analysis in regulation is, on the whole, justified. If regulatory officials were so insensitive about regulatory costs that they did not provide acceptable raw material for deliberative judgments (even if not of a strictly cost-benefit nature), my conclusion might be different. But a good deal of research into costs and benefits already occurs-actually, far more in the U.S. regulatory process than in that of any other industrial society. The danger now would seem to come more from the other side."

"Much of the pioneering work in organization theory was written about public organizations, or with public organizations in mind. When Weber wrote about bureaucracy, he was thinking of the Prussian civil service. Philip Selznick began his scholarly career writing about the New Deal Tennessee Valley Authority in TVA and the Grass Roots (1953). Herbert Simon’s first published article (1937) was on municipal government performance measurement, and Simon also coauthored early in his career a book called Public Administration (1950) and a number of papers (e.g., Simon, 1953) published in Public Administration Review. Michel Crozier’s classic, The Bureaucratic Phenomenon (1954), was about two government organizations in France."

"As the field of organization studies has grown enormously over the last decades, the attention the field pays to public organizations and public policy problems has withered. This despite the fact that the public sector, as a percentage of GNP, is much larger now than it was when these classics were written."

"In recent years there has been increased interest in the effects of internal communication on decision processes. A number of hypotheses relating the bias in information to the final decision have been proposed. In this paper we discuss two laboratory experiments which were designed to test two such hypotheses. The first experiment tests the hypothesis that cost and sales estimations are made with the implicit assumption that a biased pay-off structure exists. The second experiment tests explicitly the effects of biased and unbiased pay-off structures on estimation within an organization. An analysis of the data for the two experiments is made and some implications for further research are drawn from the results."

"“Organization theory,” a term that appeared in the middle of the twentieth century, has multiple meanings. When it first emerged, the term expressed faith in scientific research as a way to gain understanding of human beings and their interactions. Although scientific research had been occurring for several centuries, the idea that scientific research might enhance understanding of human behavior was considerably newer and rather few people appreciated it. Simon (1950, 1952-3, 1952) was a leading proponent for the creation of “organization theory”, which he imagined as including scientific management, industrial engineering, industrial psychology, the psychology of small groups, human-resources management, and strategy. The term “organization theory” also indicated an aspiration to state generalized, abstract propositions about a category of social systems called “organizations,” which was a very new concept. Before and during the 1800s, people had regarded armies, schools, churches, government agencies, and social clubs as belonging to distinct categories, and they had no name for the union of these categories. During the 1920s, some people began to perceive that diverse kinds of medium-sized social systems might share enough similarities to form a single, unified category. They adopted the term “organization” for this unified category."

"Most of the time, organizations generate actions unreflectively and non-adaptively. To justify their actions, organizations create problems, successes, threats and opportunities. These are ideological molecules that mix values, goals, expectations, perceptions, theories, plans, and symbols. The molecules form while people are result watching, guided by the beliefs that they should judge results good or bad, look for the causes of results, and propose needs for action. Because organizations modify their behavior programs mainly in small increments that make sense to top managers, they change too little and inappropriately, and nearly all organizations disappear within a few years."

"Labeling a firm as knowledge-intensive implies that knowledge has more importance than other inputs."

"A knowledge-intensive firm may not be information intensive... Knowledge is a stock of expertise, not a flow of information."

"In deciding whether a firm is knowledge-intensive, one ought to weigh its emphasis on esoteric expertise instead of widely shared knowledge. Everybody has knowledge, most of it widely shared, but some idiosyncratic and personal. If one defines knowledge broadly to encompass what everybody knows, every firm can appear knowledge-intensive. One loses the value of focusing on a special category of firms. Similarly, every firm has some unusual expertise. To make the knowledge-intensive firm a useful category, one has to require that exceptional expertise make important contributions. One should not label a firm as knowledge-intensive unless exceptional and valuable expertise dominates commonplace knowledge."

"Professionals identify strongly with their professions, more strongly than with their clients or their employers. They not only observe professional standards, they believe that only members of their professions have the competence and ethics to enforce these standards. Similarly, professionals insist that outsiders cannot properly supervise their activities."

"The history of organization theory contrasts with the history of managerial thought. When people began to compose texts about organized activities, between 2,000 and 3,000 years before the Christian era (BCE), they focused on managerial practices rather than on organizations as such. Several writers proposed general principles for managerial practice before 1000 BCE, so one can say that theories about managing have existed for at least 3000 years. However, these writings often said nothing about the organizational contexts in which managing was to occur. When the writers did make statements about organizations, they did not generalize. They wrote about specific organizations."

"Another forerunner of modern organization theorists was Andrew Ure, a professor of chemistry. An enthusiastic proponent of “the factory system,” Ure (1835) took a step beyond Adam Smith. Whereas Smith’s pin factory was solely an example of division of labor, Ure pointed out that a factory poses organizational challenges. He asserted that every factory incorporates “three principles of action, or three organic systems”: (a) a “mechanical” system that integrates production processes, (b) a “moral” system that motivates and satisfies the needs of workers, and (c) a “commercial” system that seeks to sustain the firm through financial management and marketing. Harmonizing these three systems, said Ure, was the responsibility of managers."

"[The Integrated Model of Work Stress (ISR) model] is straightforward, easy to understand, and has guided much of the work stress research and theorizing in the past 25 years."

"The investigation of job-related stress involves studying the relationship between stressful aspects of jobs (normally termed {[w|stressors}}) and the reputed results of stressor exposure (normally termed strains). Although several diverse theoretical models of the process by which stressors impact employees exist (e.g., Ivancevich & Matteson, 1980; Jex, in press; Jex & Beehr, 1991; Kahn & Byosiere, 1992), most models propose that employees are exposed to stressful working conditions, these conditions are perceived, and finally employees exhibit strains, which can include behaviors (e.g., increased smoking), physical illness, and psychological distress. On the job stressor side, there have been only a limited number of scales developed, which has tended to focus the field on a relatively small number of potential job stressors, for example, role ambiguity and role conflict. Yet research clearly suggests an important role for other job stressors that have received inadequate attention, such as interpersonal conflict in the workplace (Keenan & Newton, 1985) and organizational constraints on performance."

"Organizational constraints represent situations or things that prevent employees from translating ability and effort into high levels of job performance. The [Organizational Constraints Scale] OCS was based on the work of Peters and O'Connor (1980), who listed 11 areas of constraints that interfered with job performance. These common situational constraints in organizations may include faulty equipment, incomplete or poor information, or perhaps interruptions by others."

"Despite frequent criticism, the vast majority of job stress researchers continue to use subjective self-reports measures for both job stressors and job strains (Jex & Beehr, 1991). Part of the reason is undoubtedly because it makes data collection relatively easy, but ease alone has not made this approach so popular. First, there is a sound theoretical reason behind this choice. Serf-reports represent incumbent perceptions, and perceptions represent an important mediating process in the occupational stress process."

"Like role ambiguity, the assessment of role conflict has been primarily through self-report measurement. The scale that has been used most often is that developed by Rizzo et al. (1970). These items ask respondents whether they experience things such as “incompatible requests” and situations in which their work is “accepted by one group but not accepted by others.” A sample item from this scale is, “I receive incompatible requests from two or more people.” Strong agreement with a statement such as this indicates a high level of role conflict. Like the Rizzo et al. role ambiguity scale, this scale has also been the focus of much criticism and debate in the occupational stress literature (Kelloway & Barling, 1990, Netemeyer et al., 1990; Smith et al., 1993; Tracy & Johnson, 1981). Unfortunately, there have been few attempts to develop alternative measures."

"According to Goldstein (1993), many organizations do not train employees adequately. For example, training programs are either poorly designed or designed in a way that does not meet the needs of employees. Either way, employees may be inadequately prepared to meet their role demands. Like the other two role stressors covered in this chapter, role overload is most often assessed through self-report questionnaires. One popular role overload measure is a scale developed by Caplanet al. (1975). As would be expected, these items appropriately reflect the frequency and intensity of role demands (e.g., “How much workload do you have?”). Respondents would typically respond to these items on a scale ranging from “very light” to “extremely heavy. Despite the popularity of this measure, there are undoubtedly other ways to measure role overload that employ non-self-report methods... [such as] some combination of objective and subjective measures."

"Organizations are complex social systems that sometimes perform remarkably well and sometimes fail miserably. Organizational psychology is a subfield within the larger domain of industrial/organizational psychology that seeks to facilitate a greater understanding of social processes in organizations. Organizational psychologists also seek to use these insights to enhance the effectiveness of organizations—a goal that is potentially beneficial to all."

"In the most general sense, organizational psychology is the scientific study of individual and group behavior in formal organizational settings. Katz and Kahn, in their classic work, The Social Psychology of Organizations (1978), stated that the essence of an organization is “patterned” human behavior. When behavior is patterned, some structure is imposed on individuals. This structure typically comes in the form of roles (normative standards governing behavior) as well as a guiding set of values. An organization cannot exist when people just “do their own thing” without any awareness of the behavior of others."

"Job performance is a deceptively simple term. At the most general level, it can be defined simply as “all of the behaviors employees engage in while at work.” Unfortunately, this is a rather imprecise definition because employees often engage in behaviors at work that have little or nothing to do with job-specific tasks."

"By definition, job performance is behavior, so job performance is rarely measured directly. More typically, what is measured is some external assessment of job performance."

"Job satisfaction is, without a doubt, one of the most heavily studied topics in organizational psychology, as well as in the broader field of industrial/organizational psychology. To emphasize this point, many authors, over the years, have referred to Locke’s chapter in the Handbook of Industrial and Organizational Psychology (1976), where he reported that studies dealing with job satisfaction numbered in the thousands."

"Job satisfaction is typically defined as an employee’s level of positive affect toward his or her job or job situation... Along with positive affect, we can add both a cognitive and a behavioral component to this definition... The cognitive aspect of job satisfaction represents an employee’s beliefs about his or her job or job situation; that is, an employee may believe that his or her job is interesting, stimulating, dull, or demanding—to name a few options... The behavioral component represents an employee’s behaviors or, more often, behavioral tendencies toward his or her job. An employee’s level of job satisfaction may be revealed by the fact that he or she tries to attend work regularly, works hard, and intends to remain a member of the organization for a long period of time."

"Hackett and Guion (1985) offer a number of explanations for the weak relation between job satisfaction and absenteeism. One reason is the measurement of absenteeism itself. Although at first glance absenteeism would appear to be a rather simple variable, it is actually quite complex. For example, when measuring absences, one can distinguish between excused and unexcused absences. Excused absences would be allowed for events such as illnesses and funerals. In unexcused absences, the employee simply does not show up at work. One could argue that job satisfaction would be more likely to play a role in unexcused than in excused absences."

"The earliest scientific investigations related to the field of occupational stress were conducted by the well-known physiologist in the early part of the twentieth century (e.g., Cannon, 1914). Cannon was a pioneer in the investigation of the relationship between emotions and physiological responses, and is perhaps best known for having coined the term homeostasis."

"’s work was undoubtedly pioneering, but it must be remembered that he focused primarily on physiological reactions to aversive physical stimuli. He was not focusing on stress in the workplace. The first large-scale program of research focusing exclusively on stress in the workplace was undertaken at the University of Michigan’s Institute for Social Research in the early 1960s. What is particularly noteworthy about this research effort is that the focus was on psychosocial factors in the workplace that may be stressful to employees. Psychosocial factors represent aspects of the work environment having to do with interactions with other people. In particular, the Michigan researchers focused much of their attention on what they termed role stressors... which are aversive working conditions associated with behaviors expected of each employee in an organization."

"In the organizational sciences (e.g., organizational behavior, organizational psychology), one of the more misunderstood terms is “organizational theory.” To some, organizational theory is a field of study; to others, it is the process of using metaphors to describe organizational processes... or it represents an attempt to determine the best way to organize work organizations. The term is used to indicate all of these things, but an “organizational theory” is really just a way of organizing purposeful human action. Given the diversity of purposeful human endeavors, there are numerous ways to organize them, and, hence, a great many organizational theories."

"In terms of academic roots, the field that really has taken the lead in theorizing about the organization of purposeful human behavior is sociology. Sociology is essentially the study of macro-level forces (e.g., social stratification, social institutions) on human behavior (e.g., Merton, 1968; Parsons, 1951)... Given this historical backdrop, it is natural that sociologists would be more interested in the impact of the structure and design of organizations than psychologists would be. In fact, the Hawthorne studies, which are considered one of the most important historical events contributing to the development of organizational psychology, were conducted under the direction of sociologist Elton Mayo."

"Given that organizational theory deals with different ways of organizing human activity, how does one “theorize” about organizations? In most scientific disciplines, if one wants to theorize about something and ultimately study it, the most common approach is to bring it into a laboratory for closer inspection. Unfortunately, organizational theorists cannot do this because organizations are largely abstractions, and thus cannot be subjected to laboratory investigations. Although we can draw elegant organization charts to represent reporting relationships, and so on, what keeps an organization together is the fact that an organization’s employees understand it and adapt their behavior accordingly."

"American corporations often say human resources are their most important asset. In our national discourse, everyone talks about jobs. Yet as a society we somehow tolerate persistent high unemployment, 30 years of stagnating wages and growing wage inequality, two decades of declining job satisfaction and loss of pension and retirement benefits, and continuous challenges from the consequences of unemployment on family life. If we really valued work and human resources, we would address these problems with the vigor required to solve them."

"Our central argument is that industrial relations practices and outcomes are shaped by the interactions of environmental forces along with the strategic choices and values of American managers, union leaders, workers and public policy decision makers."

"A critical aspect of the operation of the New Deal system was the long history of incremental change and resistance to more fundamental modification. This incremental adjustment orientation was apparent in government policy, managerial practice, and union bargaining objectives."

"The workplace changes being introduced jointly have two basic objectives: (1) to increase the participation and involvement of individuals and informal groups work so as to overcome adversarial relations and increase employee motivation, commitment, and problem-solving potential; and (2) to alter the organization of work so as to simplify work rules, lower costs, and increase flexibility in the management of human resources."

"Unions are an essential part of the democratic fabric of society, but they are not necessarily desirable or acceptable `in my firm or on my property."

"Employee participation cannot and will not be divorced from other human resource practices and organisational strategies. The implication of this argument is that we need to look at the total set of organisational strategies and assess their effects on performance."

"The importance of top management commitment to organizational change is so well accepted that it is almost cliché to repeat the fact. We would therefore expect managerial values to be just as important in this area as in others that require strategic direction and leadership."

"Democratically elected worker representatives cannot get away with symbolic or partially diffused innovations; they will be thrown out of office. They will demand that the program be 39 either abandoned or institutionalized and spread to cover more of their constituents"

"Nearly fifty years ago... Douglas McGregor launched a debate over how to manage The Human Side of the Enterprise. By comparing what he called Theory X and Theory Y perspectives, he challenged the management profession to reexamine its assumptions about the motivations employees bring to their jobs. The question was: Could employees be trusted and empowered to do good work, or did they have to be closely directed, monitored, and controlled to act in the interests of the firm? While McGregor’s Theory Y sparked important innovations in human resource practices, it did not challenge fundamental assumptions underpinning the 20th Century organizational model. If, as is widely recognized, human capital and knowledge are the most important sources of value for the 21st Century organization, then fundamental assumptions about the relationship between work and organizations will also need to be challenged."

"The approach that dominates organizational theory, teaching, and practice for most of the twentieth century looked at organizations from the top-down, starting with a view of the CEO as the "leader" who shapes the organization's strategy, structure, culture, and performance potential. The nature of work and the role of the workforce enter the analysis much later, after considerations of technology and organization design have been considered. However, if the key source of value in the twenty-first-century organization is to be derived from the workforce itself, an inversion of the dominant approach will be needed. The new perspective will start not at the top of the organization, but at but at the front lines, with people and the work itself — which is where value is created. Such an inversion will lead to a transformation in the management and organization of work workers, and knowledge."

"The approach that dominates organizational theory, teaching, and practice for most of the twentieth century looked at organizations from the top-down, starting with a view of the CEO as the "leader" who shapes the organization's strategy, structure, culture, and performance potential. The nature of work and the role of the workforce enter the analysis much later, after considerations of technology and organization design have been considered. However, if the key source of value in the twenty-first-century organization is to be derived from the workforce itself, an inversion of the dominant approach will be needed. The new perspective will start not at the top of the organization, but at the front lines, with people and the work itself — which is where value is created. Such an inversion will lead to a transformation in the management and organization of work workers, and knowledge. This transformation was signalled by McGregor, but we must go further."

"This paper develops a new theoretical model with which to examine the interaction between technology and organizations. Early research studies assumed technology to be an objective, external force that would have deterministic impacts on organizational properties such as structure. Later researchers focused on the human aspect of technology, seeing it as the outcome of strategic choice and social action. This paper suggests that either view is incomplete, and proposes a reconceptualization of technology that takes both perspectives into account. A theoretical model-- the structurational model of technology--is built on the basis of this new conceptualization, and its workings explored through discussion of a field study of information technology. The paper suggests that the reformulation of the technology concept and the structurational model of technology allow a deeper and more dialectical understanding of the interaction between technology and organizations. This understanding provides insight into the limits and opportunities of human choice, technology development and use, and organizational design. Implications for future research of the new concept of technology and structurational model of technology are discussed."

"Technology has always been a central variable in organizational theory, informing research and practice. Despite years of investigative effort there is little agreement on the definition and measurement of technology, and no compelling evidence on the precise role of technology in organizational affairs. I will argue that the divergent definitions and opposing perspectives associated with technological research have limited our understanding of how technology interacts with organizations, and that these incompatibilities cannot be resolved by mutual concession. What is needed is a reconstruction of the concept of technology, which fundamentally re-examines our current notions of technology and its role in organizations."

"Two views on the scope of technology have pervaded (and shaped) studies of technology, reflecting the different claims to generalizability that researchers have intended with their work. The one set of studies has focused on technology as "hardware," that is, the equipment, machines, and instruments that humans use in productive activities, whether industrial or informational devices."

"Rather than positing design and use as disconnected moments or stages in a technology's lifecycle, the structurational model of technology posits artifacts as potentially modifiable throughout their existence. In attempting to understand technology as continually socially and physically constructed, it is useful to discriminate analytically between human action which affects technology and that which is affected by technology. I suggest that we recognize human interaction with technology as having two iterative modes: the design mode and the use mode. I emphasize that this distinction is an analytical convenience only, and that in reality these modes of interaction are tightly coupled."

"Technology is built and used within certain social and historical circumstances and its form and functioning will bear the imprint of those conditions."

"As both technologies and organizations undergo dramatic changes in form and function, organizational researchers are increasingly turning to concepts of innovation, emergence, and improvisation to help explain the new ways of organizing and using technology evident in practice. With a similar intent, I propose an extension to the structurational perspective on technology that develops a practice lens to examine how people, as they interact with a technology in their ongoing practices, enact structures which shape their emergent and situated use of that technology. Viewing the use of technology as a process of enactment enables a deeper understanding of the constitutive role of social practices in the ongoing use and change of technologies in the workplace. After developing this lens, I offer an example of its use in research, and then suggest some implications for the study of technology in organizations."

"Technology - and its relationship to organizational structures, processes, and outcomes - has long been of interest to organizational researchers. Over the years, different research perspectives on technology have developed in parallel with research perspectives on organizations - for example, contingency theory (Woodward 1965, Galbraith 1977, Carter 1984, Daft and Lengel 1986), strategic choice models (Child 1972, Buchanan and Boddy 1983, Davis and Taylor 1986, Zuboff 1988), Marxist studies (Braverman 1974, Edwards 1979, Shaiken 1985, Perrolle 1986), symbolic interactionist approaches (Kling 1991, Prasad 1993), transaction-cost economics (Malone et al. 1987, Ciborra 1993); network analyses (Barley 1990, Burkhardt and Brass 1990, Rice and Aydin 1991), practice theories (Suchman 1987, Button 1993, Hutchins 1995, Orr 1996), and structurational models (Barley 1986, Orlikowski 1992, DeSanctis and Poole 1994)."

"Every piece of data suggests that workplaces are in dire shape and there is low levels of trust in leaders. For instance, data on employee engagement from Gallup show that worldwide only about 13% of employees report being engaged with their work, and in the U.S., the number is barely higher at 20%. Job satisfaction has declined almost linearly since 1987 to the present. The Edelman Trust index indicates that the public at large has low trust in leaders, while other surveys show that employees do not expect their own leaders to make ethical decisions or to consistently tell them the truth about difficult situations."

"The theme of this book, and the underlying premise of the external perspective on organizations, is that organizational activities and outcomes are accounted for by the context in which the organization is embedded."

"The criticality of a resource can be measured as the ability of an organization to function in the absence of the resource or in the absence of the market for the output."

"The domain of organization theory is coming to resemble more of a weed patch than a well-tended garden. Theories of the middle range (Merton, 1968; Pinder and Moore, 1979) proliferate, along with measures, terms, concepts, and research paradigms. It is often difficult to discern in what direction knowledge of organizations is progressing — or if, it is progressing at all. Researchers, students of organization theory, and those who look to such theory for some guidance about issues of management and administration confront an almost bewildering array of variables, perspectives, and inferred prescriptions."

"The neglect of context, it is argued, leads to the development of theories that do not have the potential of understanding development and change over time or for understanding the subtle nuances of interaction that are critical in apprehending what is really occurring."

"According to the resource dependence perspective, firms do not merely respond to external constraint and control through compliance to environmental demands. Rather, a variety of strategies may be undertaken to somehow alter the situation confronting the organization to make compliance less necessary."

"The theories in this chapter, focusing on the individual level of analysis, differ somewhat from those in the next chapter, in which a more organizational level of analysis is employed. Although all of the theories are essentially cognitive and social definitionist in nature, particularly as developed in the general sociological literature, there are at least two important subgroups within the social constructionist perspective."

"In New Directions for Organization Theory, Jeffrey Pfeffer offers a comprehensive analysis and overview of the field of organization theory and its research literature. This work traces the evolution of organization studies, particularly its more recent history, and highlights the principle concepts and controversies characterizing the study of organizations. Pfeffer argues that the world of organizations has changed in several important ways, including the increasing externalization of employment and the growing use of contingent workers; the changing size distribution of organizations, with a larger proportion of smaller organizations; the increasing influence of external capital markets on organizational decision-making and a concomitant decrease in managerial autonomy; and increasing salary inequality within organizations in the US compared both to the past and to other industrialized nations. These changes and their public policy implications make it especially important to understand organizations as social entities. But Pfeffer questions whether the research literature of organization studies has either addressed these changes and their causes or made much of a contribution to the discussion of public policy..."

"BEHAVIORAL THEORIES OF THE FIRM: A turn from structure to internal processes was the theme of authors such as Richard Cyert and James March, Daniel Katz and Robert Kahn, and Karl Weick... All but one... was a psychologist by education, so it should not be surprising that their view of organization theory emphasizes internal processes and resembles the micro approach of organizational behavior. Another group of theorists, all but one educated as a sociologist, viewed organizations as a product of macro environmental forces. These behavioralists were Jeffrey Pfeffer and Gerald Salancik, Michael Hannan and John Freeman, and John Meyer and Richard Scott. Pfeffer (the only non-sociologist) and Salancik presented a resource-dependent theory that postulates that organizations require support from their external environment and can only survive to the extent that this support is forthcoming. Managers form coalitions to gather support in an open system of external relationships in which there are constraints that create either a munificent or scarce resource situation."

"The effects of subunit power on organizational decision making and the bases of subunit power are examined in a large midwestern state university. It is hypothesized that subunits acquire power to the extent that they provide resources critical to the organization and that power affects resource allocations within organizations in so far as the resource is critical to the subunits and scarce within the organization. Departmental power is found to be most highly correlated with the department's ability to obtain outside grants and contracts, with national prestige and the relative size of the graduate program following closely in importance. Power is used most in the allocation of graduate university fellowships, the most critical and scarce resource, and is unrelated to the allocation of summer faculty fellowships, the least critical and scarce resource."

"The most frequently encountered view of commitment in organizations is one having to do with an individual's psychological bond to the organization."

"Two contributors to explicitness are the observability of the act and the unequivocality of the act. Some acts are not observable and we may know them only by inference from assumed consequences. You leave a dollar bill on a checkout counter, turn away for a moment, then find it missing. The consequence is obvious, but do you know if the customer next to you took it or if it was carried away by a draft from the open door? Acts themselves can be equivocal, forgotten, or otherwise intractable."

"Commitment is a state of being in which an individual becomes bound by his actions and through this actions to beliefs that sustain his activities and his own involvement."

"Success ruins everything.Pfeffer, Jeffrey, and Christina T. Fong. "The business school ‘business’: Some lessons from the US experience." Journal of management studies 41.8 (2004): 1501-1520."

"This article outlines a approach to explain . In comparison with need-satisfaction and expectancy models of job attitudes and motivation, the social information processing perspective emphasizes the effects of context and the consequences of past choices, rather than individual predispositions and rational decision-making processes. When an individual develops statements about attitudes or needs, he or she uses social information - information about past behavior and about what others think. The process of attributing attitudes or needs from behavior is itself affected by commitment processes, by the saliency and relevance of information, and by the need to develop socially acceptable and legitimate rationalizations for actions. Both attitudes and need statements, as well as characterizations of jobs, are affected by informational social influence. The implications of the social information processing perspective for organization development efforts and programs of job redesign are discussed."

"People as adaptive organisms adjust their behavior and beliefs to the social context and to the reality of their own past and present behavior and situation."

"The term rationalize refers to any situations in which a person's action is described with reference to some supporting reason or cause. The term “legitimate” refers to one criterion by which rationalizations are selected from the many possible explanations for action. Justifications or rationalizations are selected primarily when they are acceptable explanations in a given social context. This means they fit with the facts as known according to the rules of behavior generally followed."

"The theme of this book, and the underlying premise of the external perspective on organizations, is that organizational activities and outcomes are accounted for by the context in which the organization is embedded."

"The criticality of a resource can be measured as the ability of an organization to function in the absence of the resource or in the absence of the market for the output."

"There is one word that best describes Jerry Salancik: mischievous. He was always full of mischief and brought an attitude and spirit of fun and playfulness to his research and colleagues that made life interesting and stimulating."

"BEHAVIORAL THEORIES OF THE FIRM: A turn from structure to internal processes was the theme of authors such as Richard Cyert and James March, Daniel Katz and Robert Kahn, and Karl Weick... All but one... was a psychologist by education, so it should not be surprising that their view of organization theory emphasizes internal processes and resembles the micro approach of organizational behavior. Another group of theorists, all but one educated as a sociologist, viewed organizations as a product of macro environmental forces. These behavioralists were Jeffrey Pfeffer and Gerald Salancik, Michael Hannan and John Freeman, and John Meyer and Richard Scott. Pfeffer (the only non-sociologist) and Salancik presented a resource-dependent theory that postulates that organizations require support from their external environment and can only survive to the extent that this support is forthcoming. Managers form coalitions to gather support in an open system of external relationships in which there are constraints that create either a munificent or scarce resource situation."

"Changes don't come along in nice annual packages, so the need for strategy work is episodic, not necessarily annual."

"[ Diversification strategy is] a firm’s commitment to diversity per se, together with the strengths, skills or purposes that span this diversity, shown by the way in which business activities are related one to another."

"[In related businesses] common skill, market or resource applies to each."

"The enhanced ability to obtain external funding and ... capacity to deploy capital internally to the most promising of a wide range of divisional ventures."

"It is commonly accepted that successful performance of a firm hinges on restricting activities to cultivating a related and familiar range rather than 'bold moves into uncharted'."

"Prior work has shown an association between diversification strategy and profitability. This paper replicates that association using more recent and complete data and goes on to investigate the sources of the association. Theoretical arguments are advanced which predict the association which will remain once the effects of varying industry profitability are removed. Empirical tests verify this prediction and permit the discrimination between the effects of industry and diversification strategy on profitability."

"Ambiguity as to what factors are responsible for superior (or inferior) performance acts as a powerful block on both imitation and factor mobility."

"In summary, uncertain imitability obtains shen creation of new production functions is inherently uncertain and when either causal ambiguity or property rights in unique resources impede imitation and factor mobility."

"This study partitions the total variance in rate of return among FTC Line of Business reporting units into industry factors (whatever their nature), time factors, factors associated with the corporate parent, and business-specific factors. Whereas Schmalensee (1985) reported that industry factors were the strongest, corporate and market share effects being extremely weak, this study distinguishes between stable and fluctuating effects and reaches markedly different conclusions. The data reveal negligible corporate effects, small stable industry effects, and very large stable business-unit effects. These results imply that the most important sources of economic rents are business-specific; industry membership is a much less important source and corporate parentage is quite unimportant."

"I consider myself a mainstream researcher in the field of business policy, and the ideas I want to describe in this paper concern the foundations of a theory of business strategy that is rooted in economics. But is such a paper, whatever its merits, really appropriate at a conference entitled 'Non-traditional Approaches to Policy Research'? Surprisingly, it is. The use of economic theory to model and explicate business strategy, as it is understood within the field of business policy, is distinctly non-traditional."

"A major advancement in the strategy field is the development of models where firm heterogeneity is an endogenous creation of economic actors."

"For Schumpeter the most important firms are those that serve as the vehicles for action of the real drivers of the system — the innovating entrepreneurs."

"Some of the biggest changes have been in the process of generating business strategies—what I call “strategy work.” Around 1980, the received wisdom was to decentralize into business units, which would each generate a strategic plan. These plans were then amalgamated up the hierarchy, in some portfolio way, for senior management. That approach has all but disappeared, and we’ve seen a dramatic recentralization of strategy work."

"Back in the mid-1990s I was researching strategy in the global electronics industry. I interviewed 20 to 30 executives, CEOs, and division managers and asked fairly simple questions. Which company was the leader in their market? How did that company become the leader? What’s their own company’s strategy?"

"Then, in 1998, I had the chance to talk with Steve Jobs after he’d come back and turned Apple around. I was there to help Telecom Italia try to do a deal with Apple, but after that business was completed I couldn’t help asking a question. “Steve,” I said, “this turnaround at Apple has been impressive. But everything we know about the personal-computer business says that Apple will always have a small niche position. The network externalities are just too strong to upset the de facto “Wintel” standard. So what are you trying to do? What’s the longer-term strategy?”"

"In 1805, England had a problem. Napoléon had conquered big chunks of Europe and planned the invasion of England. But to cross the Channel, he needed to wrest control of the sea away from the English. Off the southwest coast of Spain, the French and Spanish combined fleet of thirty-three ships met the smaller British fleet of twenty-seven ships. The well-developed tactics of the day were for the two opposing fleets to each stay in line, firing broadsides at each other. But British admiral Lord Nelson had a strategic insight. He broke the British fleet into two columns and drove them at the Franco-Spanish fleet, hitting their line perpendicularly. The lead British ships took a great risk, but Nelson judged that the less-trained Franco-Spanish gunners would not be able to compensate for the heavy swell that day. At the end of the Battle of Trafalgar, the French and Spanish lost twenty-two ships, two-thirds of their fleet. The British lost none. Nelson was mortally wounded, becoming, in death, Britain’s greatest naval hero. Britain’s naval dominance was ensured and remained unsurpassed for a century and a half."

"Nelson’s challenge was that he was outnumbered. His strategy was to risk his lead ships in order to break the coherence of his enemy’s fleet. With coherence lost, he judged, the more experienced English captains would come out on top in the ensuing melee. Good strategy almost always looks this simple and obvious and does not take a thick deck of PowerPoint slides to explain. It does not pop out of some "strategic management" tool, matrix, chart, triangle, or fill-in-the-blanks scheme. Instead, a talented leader identifi es the one or two critical issues in the situation—the pivot points that can multiply the effectiveness of effort—and then focuses and concentrates action and resources on them."

"Despite the roar of voices wanting to equate strategy with ambition, leadership, “vision,” planning, or the economic logic of competition, strategy is none of these. The core of strategy work is always the same: discovering the critical factors in a situation and designing a way of coordinating and focusing actions to deal with those factors."

"The kernel of a strategy contains three elements: a diagnosis, a guiding policy, and coherent action."

"Given that background, I was interested in what Steve Jobs might say about the future of Apple. His survival strategy for Apple, for all its skill and drama, was not going to propel Apple into the future. At that moment in time, Apple had less than 4 percent of the personal computer market. The de facto standard was Windows-Intel and there seemed to be no way for Apple to do more than just hang on to a tiny niche."

"Having conflicting goals, dedicating resources to unconnected targets, and accommodating incompatible interests are the luxuries of the rich and powerful, but they make for bad strategy. Despite this, most organizations will not create focused strategies. Instead, they will generate laundry lists of desirable outcomes and, at the same time, ignore the need for genuine competence in coordinating and focusing their resources. Good strategy requires leaders who are willing and able to say no to a wide variety of actions and interests. Strategy is at least as much about what an organization does not do as it is about what it does."

"A leader’s most important job is creating and constantly adjusting this strategic bridge between goals and objectives."

"When organizations are unable to make new strategies — when people evade the work of choosing among different paths in the future — then you get vague mom-and-apple-pie goals everyone can agree on. Such goals are direct evidence of leadership’s insufficient will or political power to make or enforce hard choices."

"The kernel of strategy contains three elements:"

"A strategy coordinates action to address a specific challenge. It is not defined by the pay grade of the person authorizing the action."

"Throughout his long career Rumelt published little. But his influence grew slowly, and interest in his ideas was reignited in 2007 by a widely read interview published in McKinsey Quarterly. His most influential thoughts were contained in just two articles published some ten years apart. In 1982 he demonstrated that there was a statistical link between corporate strategy and profitability, showing that somewhat diversified companies performed better than highly diversified ones. And in 1991 he published a controversial paper arguing that neither the ownership of a business nor the industry that it was in could explain the bulk of the difference in profitability between different businesses. Being good at what you do, he maintained, counted for a lot more."

"Professor Rumelt’s research has centered on corporate diversification strategy and the sources of sustainable advantage to individual business strategies. His current research interests center on the dynamics of industry transitions with a focus on the patterns and forces shaping the evolution of complex industries."

"Entrepreneurs often are organizational products... The capital required, human resources, space, information, permits and licenses are all provided, perhaps grudgingly, by existing organizations."

"Hannan and Freeman examine the ecology of organizations by exploring the competition for resources and by trying to account for rates of entry and exit and for the diversity of organizational forms. They show that the destinies of organizations are determined more by impersonal forces than by the intervention of individuals by the intervention of individuals."

"Until the mid-1970s, the prominent approach in organization and management theory emphasized adaptive change in organizations. In this view, as environments change, leaders or dominant coalitions in organizations alter appropriate organizational features to realign their fit to environmental demands.. Since then, an approach to studying organizational change that places more emphasis on environmental selection processes, introduced at about that time (Aldrich and Pfeffer 1976; Hannan and Freeman 1977; Aldrich 1979; McKelvey 1982), has become increasingly influential. The stream of research on ecological perspectives of organizational change has generated tremendous excitement, controversy and debate in the community of organization and management theory scholars. Inspired by the question, Why are there so many kinds of organizations?"

"Freeman’s early research focused on organizational politics and the variations among organizations in the ratios of managers and supervisors to the rest of the work force. Freeman’s empirical studies revealed that organizations in decline have higher “administrative intensity” than similar-sized growing organizations because staffing decisions are made by managers, who might be expected to favor their close associates. The pattern came to be known as the “Freeman effect” and became a staple of macro-organization theory."

"Hannan and Freeman examine the ecology of organizations by exploring the competition for resources and by trying to account for rates of entry and exit and for the diversity of organizational forms. They show that the destinies of organizations are determined more by impersonal forces than by the intervention of individuals by the intervention of individuals."

"A population ecology perspective on organization-environment relations is proposed as an alternative to the dominant adaptation perspective. The strength of inertial pressures on organizational structure suggests the application of models that depend on competition and selection in populations of organizations. Several such models, as well as issues arising in attempts to apply them to the organization-environment problem, are discussed."

"Once standards of procedures and the allocation of tasks and authority become the subject of normative agreements, the cost of change greatly increased. Normative agreements constrain adaptation in at least two ways. First, they provide a justification and an organizing principle for those elements that wish to resist reorganization (i.e. they can resist in terms of a shared principle). Second, normative agreements preclude the serious consideration of many alternative responses."

"Legitimacy constraints also emanate from the environment. Any legitimacy an organization has been able to generate constitutes an asset in manipulating the environment. To the extent that adaptation (e.g., eliminating undergraduate instruction in public universities) violates the legitimacy claims, it incurs considerable costs. So external legitimacy considerations also tend to limit adaptation."

"We argue that in order to deal with the various inertial pressures the adaptation perspective must be supplemented with a selection orientation. We consider first two broad issues that are preliminary to ecological modelling. The first concerns appropriate units of analysis. Typical analyses of the relation of organizations to environments take the point of view of a single organization facing an environment."

"The concept of "niche," initially borrowed by biologists from early social science, plays a central role in ecological theory... The niche... consists of all those combinations of resource levels at which the population can survive and reproduce itself."

"For wide classes of organizations there are very strong inertial pressures on structure arising from both internal arrangements (for example, internal politics) and from the environment (for example, public legitimation of organizational activity). To claim otherwise is to ignore the most obvious feature of organizational life. Failing churches do not become retail stores nor do firms transform themselves into churches."

"A system with greater organizational diversity has a higher probability of having in hand some form that does a reasonably satisfactory job of dealing with the changed environmental conditions. Adaptation in such a system means reallocating resources from one type of existing organization to another, either by command or by market mechanisms, rather than trying to identify and create appropriate organizational forms."

"Natural selection, as it is actually used in evolutionary population biology, serves mainly as an optimization process. In fact, the reasoning that underlies much evolutionary biology often strikes social scientists as strongly reminiscent of neoclassical economics."

"Inertial pressures prevent most organizations from radically changing strategies and structures."

"The existing literature usually stresses the capacity of organizations to learn about and adapt to uncertain, changing environments. We think this emphasis is misplaced. The most important issues about the applicability of evolutionary-ecological theories to organizations concern the timing of changes. Learning and adjusting structure enhance the chance of survival only if the speed of response is commensurate with the temporal patterns of relevant environments."

"[In the early 1900s, ecologists Alfred Lotka and ] independently proposed models of populations dynamics that incorporate effects of competition between populations."

"Organizational design often focuses on structural alternatives such as matrix, decentralization, and divisionalization. However, control variables (e.g., reward structures, task characteristics, and information systems) offer a more flexible approach. The purpose of this paper is to explore these control variables for organizational design. This is accomplished by integration and testing of two perspectives, organization theory and economics, notably agency theory. The resulting hypotheses link task characteristics, information systems, and business uncertainty to behavior vs. outcome based control strategy. These hypothesized linkages are examined empirically in a field study of the compensation practices for retail salespeople in 54 stores. The findings are that task programmability is strongly related to the choice of compensation package. The amount of behavioral measurement, the cost of measuring outcomes, and the uncertainty of the business also affect compensation. The findings have management implications for the design of compensation and reward packages, performance evaluation systems, and control systems, in general. Such systems should explicitly consider the task, the information system in place to measure performance, and the riskiness of the business. More programmed tasks require behavior based controls while less programmed tasks require more elaborate information systems or outcome based controls."

"Recent organizational approaches to control (e.g., Ouchi 1979) suggest two underlying control strategies. On the one hand, control can be accomplished through performance evaluation. Performance evaluation refers to the cybernetic process of monitoring and rewarding performance. This strategy emphasizes the information aspects of control. Namely, to what degree can the various aspects of performance be assessed? Alternatively, control can be achieved by minimizing the divergence of preferences among organizational members. That is, members cooperate in the achievement of organizational goals because the members understand and have internalized these goals. This strategy emphasizes people policies such as selection, training, and socialization."

"Agency theory is an important, yet controversial, theory. This paper reviews agency theory, its contributions to organization theory, and the extant empirical work and develops testable propositions. The conclusions are that agency theory (a) offers unique insight into information systems, outcome uncertainty, incentives, and risk and (b) is an empirically valid perspective, particularly when coupled with complementary perspectives. The principal recommendation is to incorporate an agency perspective in studies of the many problems having a cooperative structure."

"We struggle to manage complexity every day. We follow intricate diets to lose weight, juggle multiple remotes to operate our home entertainment systems, face proliferating data at the office, and hack through thickets of regulation at tax time. But complexity isn’t destiny. Sull and Eisenhardt argue there’s a better way: By developing a few simple yet effective rules, you can tackle even the most complex problems."

"The literature on product development continues to grow. This research is varied and vibrant, yet large and fragmented. In this article we first organize the burgeoning product-development literature into three streams of research: product development as rational plan, communication web, and disciplined problem solving. Second, we synthesize research findings into a model of factors affecting the success of product development. This model highlights the distinction between process performance and product effectiveness and the importance of agents, including team members, project leaders, senior management, customers, and suppliers, whose behavior affects these outcomes. Third, we indicate potential paths for future research based on the concepts and links that are missing or not well defined in the model."

"In contrast to the punctuated equilibrium model of change, this inductive study of multiple-product innovation in six firms in the computer industry examines how organizations engage in continuous change. Comparisons of successful and less-successful firms show, first, that successful multiple-product innovation blends limited structure around responsibilities and priorities with extensive communication and design freedom to create improvisation within current projects. This combination is neither so structured that change cannot occur nor so unstructured that chaos ensues. Second, successful firms rely on a wide variety of low-cost probes into the future, including experimental products, futurists, and strategic alliances. Neither planning nor reacting is as effective. Third, successful firms link the present and future together through rhythmic, time-paced transition processes. We develop the ideas of "semistructures," "links in time," and "sequenced steps" to crystallize the key properties of these continuously changing organizations and to extend thinking about complexity theory, time-paced evolution, and the nature of core capabilities."

"Complexity theory began with an interest u how order spring from chaos. According to complexity theory, adaption is most effective in systems that are only partially connected. The argument is that too much structure creates gridlock, while too little structure creates chaos. A good example would be the traffic lights in a city. If there are no lights, traffic is chaotic. If there are too many lights, traffic stops. A moderate number of lights creates structure, but still allows drivers to adapt their routes in surprising ways in response to changing traffic conditions. Consequently, the key to effective change is to stay poised on this edge of chaos. Complexity theory focuses managerial thinking on the interrelationships among different parts of an organization and on the trade-off of less control for greater adaptation."

"Although the behavior that emerges is complex, the rules that guide it are necessarily simple. In fact, it is their simplicity that creates the freedom to behave in complicated adaptive, and surprising ways."

"Coadaptation is the process whereby systems of related agents take mutual advantage of each other in order to change more effectively, yet still be adaptive in each agent's particular situation."

"In our work in fast- changing markets, we often see that time pacing helps managers avert the danger of changing too infrequently. By setting a regular pace for change, managers avoid becoming locked into old patterns and habits."

"Managers who extensively plan the future get the timing wrong. Sometimes they arrive to market too early and so must wait for the demand to catch up. Sometimes they are too late and so must accelerate to rejoin the future."

"The relationship of agency is one of the oldest and commonest codified codes of social interaction. We will say that an agency relationship has arisen between two (or more) parties when one, designated as the agent, acts for the other, designated the principal, in a particular domain of decision problems. Examples of agency are universal."

"It is traditional in the theory of the firm to define the production opportunity set available to the firm in terms of its boundary -- the maximum attainable set of output quantities for various input quantities, given the state of technology and knowledge. This boundary is the production function of the firm. One of our purposes here is to point out the dependence of such production functions on the structure of property rights and contracting rights within which the firm exists. We redefine the production function in order to recognize the dependence of output on the structure of property and contracting rights. That expanded framework is then used to discuss a concrete set of problems surrounding the role of labor in the firm ranging from the 'labor-managed firm' system (in which tradable capital value residual claims [common stock] are legally prohibited), and the codetermination and industrial democracy movements (in which management participation by labor is required by law), to cooperatives and professional partnerships (i.e., quasi-labor-managed firms which arise out of the voluntary contracting process), and the capitalist corporation."

"A major social problem we face today is how to control the political process that is eroding the free enterprise market system. Although I am pessimistic that we will in fact ever resolve this problem completely, we will surely never solve it unless we develop a viable positive theory of the political process. Such a political theory will not be complete until we also have developed a theory that explains why we get the results we do out of the mass media."

"The corporation as an organizational form is an enormously productive social invention. Partly because of its success it is under increasing attack from various quarters, often under the guise of “protecting” investors from self-interested managers. Some of these attacks are successful simply because the corporation is a poorly understood entity. This paper discusses what the corporation is, what it is not, and how certain misconceptions about the corporate form are fostered by its critics as part of their attack."

"This paper analyzes the relations between knowledge, control and organizational structure both in the market system as a whole and in private organizations. Limitations on the mental capacity of the human mind and the costs of producing and transferring knowledge means that knowledge relevant to all decisions can never be collected in the mind of a single individual or a small body of experts. This means that if the knowledge valuable to a particular decision is to be used in making that decision, there must be a system for partitioning out decision rights to individuals who already have the relevant knowledge and abilities or who can acquire or produce them at the lowest cost. Self interest on the part of individual decision-makers means a control system is required to motivate individuals with the decision rights and the relevant knowledge to use those decision rights appropriately. This control problem is solved in a capitalist economy by a system of alienable property rights."

"This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the 'separation and control' issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears the costs and why, and investigate the Pareto optimality of their existence. We also provide a new definition of the firm, and show how our analysis of the factors influencing the creation and issuance of debt and equity claims is a special case of the supply side of the completeness of markets problem."

"We define an agency relationship as a contract under which one or more persons (the principal(s)) engage another person (the agent) to perform some service on their behalf which involves delegating some decision making authority to the agent. If both parties to the relationship are utility maximizers there is good reason to believe that the agent will not always act in the best interests of the principal."

"We define agency costs as the sum of:"

"Most organisations firms are simply legal fictions which serve as a nexus for a set of contracting relationships among individuals."

"This paper integrates elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm. We define the concept of agency costs, show its relationship to the 'separation and control' issue, investigate the nature of the agency costs generated by the existence of debt and outside equity, demonstrate who bears the costs and why, and investigate the Pareto optimality of their existence. We also provide a new definition of the firm, and show how our analysis of the factors influencing the creation and issuance of debt and equity claims is a special case of the supply side of the completeness of markets problem."

"It is traditional in the theory of the firm to define the production opportunity set available to the firm in terms of its boundary -- the maximum attainable set of output quantities for various input quantities, given the state of technology and knowledge. This boundary is the production function of the firm. One of our purposes here is to point out the dependence of such production functions on the structure of property rights and contracting rights within which the firm exists. We redefine the production function in order to recognize the dependence of output on the structure of property and contracting rights. That expanded framework is then used to discuss a concrete set of problems surrounding the role of labor in the firm ranging from the 'labor-managed firm' system (in which tradable capital value residual claims [common stock] are legally prohibited), and the codetermination and industrial democracy movements (in which management participation by labor is required by law), to cooperatives and professional partnerships (i.e., quasi-labor-managed firms which arise out of the voluntary contracting process), and the capitalist corporation."

"The corporation as an organizational form is an enormously productive social invention. Partly because of its success it is under increasing attack from various quarters, often under the guise of “protecting” investors from self-interested managers. Some of these attacks are successful simply because the corporation is a poorly understood entity. This paper discusses what the corporation is, what it is not, and how certain misconceptions about the corporate form are fostered by its critics as part of their attack."

"This paper analyzes the relations between knowledge, control and organizational structure both in the market system as a whole and in private organizations. Limitations on the mental capacity of the human mind and the costs of producing and transferring knowledge means that knowledge relevant to all decisions can never be collected in the mind of a single individual or a small body of experts. This means that if the knowledge valuable to a particular decision is to be used in making that decision, there must be a system for partitioning out decision rights to individuals who already have the relevant knowledge and abilities or who can acquire or produce them at the lowest cost. Self interest on the part of individual decision-makers means a control system is required to motivate individuals with the decision rights and the relevant knowledge to use those decision rights appropriately. This control problem is solved in a capitalist economy by a system of alienable property rights."

"Economics is a discipline that can help students solve the sort of problems they meet within the firm."

"The examples [of economics] all had to relate to management. In price theory, we talked about two divisions within a firm, a manufacturing division and a distribution division. We talked about what price manufacturing would set if it set the price and what price distribution would set. We didn't talk about the social implications of this; we talked about what it would mean to the profits of the firm. Then we introduced competition and asked what the outcome would be. Out of this came a new way of looking at markets and the internal organization of firms. A key problem is assigning decision rights within a firm. You want to assign the rights where the knowledge to use them exists."

"[William H. Meckling was] the consummate scholar who was constantly probing and questioning, and always stimulating each of us to produce the best work possible. He created an exciting, vibrant intellectual environment where each faculty member was encouraged to interact and create knowledge."

"[William H. Meckling was] a most unusual man – one who has never managed a business, who has no advanced degree, and who has never been on a university staff as a teacher or administrator, but who, nevertheless, has just been appointed dean of the Graduate School of Management at the University of Rochester."

"[ Managementlove can be defined as] the function of getting things done through others."

"Organization charts are subject to important limitations. A chart shows only formal authority relationships and omits the many significant informal and informational relationships."

"I see too many academics forgetting what I think our job is in management, and that is to organize available knowledge; develop new knowledge, of course, but organize it in such a way that it can be useful to practicing managers to underpin management. I am surprised as I watch the literature, that some people are discovering what we’ve known for years. For example, some things like this: that technology affects management organization. I found that out when I was in the airline industry a few years ago and I never thought it was anything very surprising. Another, that the actual managing depends on the situation... I thought, my gosh, there must be something new there. Only to find, after spending a lot of time reading, that there wasn’t anything, and I don’t know any practicing manager who doesn’t manage in light of the situation. I think we have to agree that management theory and science should underpin practice, otherwise why develop it?"

"Although students of management would readily agree that there have been problems of management since the dawn of organized life, most would also agree that systematic examination of management, with few exceptions, is the product of the present century and more especially of the past two decades."

"The Management Process School : This approach to management theory perceives management as a process of getting things done through and with people operating in organized groups. It aims to analyze the process, to establish a conceptual framework for it, to identify principles underlying it, and to build up a theory of management from them. It regards management as a universal process, regardless of the type that the environment of management differs widely between enterprises and levels. It looks upon management theory as a way of organizing experience so that practice can be improved through research, empirical testing of principles, and teaching of fundamentals involved in the management process."

"Empirical School ; A second approach to management I refer to as the "empirical" school. In this, I include those scholars who identify management as a study of experience, sometimes with intent to draw generalizations but usually merely as a means of teaching experience and transferring it to the practitioner or student. Typical of this school are those who see management or "policy" as the study and analysis of cases and those with such approaches as Ernest Dale's "comparative approach.""

"The Human Behavior School: This approach to the analysis of management is based on the central thesis that, since managing involves getting things done with and through people, the study of management must be centered on interpersonal relations. Variously called the "human relations," "leadership," or "behavioral sciences" approach... This school concentrates on the "people" part of management and rests on the principle that, where people work together as groups in order to accomplish objectives, "people should understand people.""

"The Social System School: Closely related to the human behavior school and often confused or intertwined with it is one which might be labeled the social system school. This includes those researchers who look upon management as a social system, that is, a system of cultural interrelationships. Sometimes, as in the case of March and Simon, the system is limited to formal organizations, using the term "organization" as equivalent to enterprise, rather than the authority-activity concept used most often in management. In other cases, the approach is not to distinguish the formal organization, but rather to encompass any kind of system of human relationships."

"The Decision Theory School : Another approach to management theory, undertaken by a growing and scholarly group, might be referred to as the decision theory school. This group concentrates on rational approach to decision-the selection from among possible alternatives of a course of action or of an idea. The approach of this school may be to deal with the decision itself, or to the persons or organizational group making the decision, or to an analysis of the decision process. Some limit themselves fairly much to the economic rationale of the decision, while others regard anything which happens in an enterprise the subject of their analysis, and still others expand decision theory to cover the psychological and sociological aspect and environment of decisions and decision-makers."

"The Mathematical School ; Although mathematical methods can be used by any school of management theory, and have been, I have chosen to group under a school those theorists who see management as a system of mathematical models and processes. Perhaps the most widely known group I arbitrarily so lump are the operations researchers or operations analysts, who have sometimes anointed themselves with the rather pretentious name of "management scientists." The abiding belief of this group is that, if management, or organization, or planning, or decision making is a logical process, it can be expressed in terms of mathematical symbols and relationships. The central approach of this school is the model, for it is through these devices that the problem is expressed in its basic relationships and in terms of selected goals or objectives."

"Management is defined here as the accomplishment of desired objectives by establishing an environment favorable to performance by people operating in organized groups. Each of the managerial functions (planning, organizing, staffing, , directing, and controlling) is analyzed and described in a systematic way. As this is done, both the distilled experience of practicing managers and the findings of scholars are presented. This is approached in such a way that the reader may grasp the relationships between each of the functions, obtain a clear view of the major principles underlying them."

"This book undertakes the study of management by utilizing analysis of the basic managerial functions as a framework for organizing knowledge and techniques in the field. Managing is defined here as the creation and maintenance of an internal environment in an enterprise where individuals, working together in groups, can perform efficiently and effectively towards the attainment of group goals. Managing could, then, be called "performance environment design." Essentially, managing is the art of doing, and management is the body of organized knowledge which underlies the art."

"Every organization structure, even a poor one, can be charted, for a chart merely indicates how departments are tied together along the principal lines of authority. It is therefore somewhat surprising to find top managers occasionally taking pride in the fact that they do not have an organization chart or, if they do have one, feeling that the chart should be kept a secret."

"A prominent manufacturer once said that although he could see some use for an organization chart for his factory, he had refused to chart the organization above the level of factory superintendent. His argument was that charts tend to make people overly conscious of being superiors or inferiors, tend to destroy team feeling, and give persons occupying a box on the chart too great a feeling of "ownership"?Another top executive once said that if an organization is left uncharted, it can be changed more easily and that the absence of a chart also encourages a competitive drive for higher executive positions on the part of the uncharted middle-management group."

"The various schools of or approaches to management theory that I identified nearly two decades ago, and called "the management theory jungle," are reconsidered. What is found now are eleven distinct approaches, compared to the original six, implying that the "jungle" may be getting more dense and impenetrable. However, certain developments are occurring which indicate that we may be moving more than people think toward a unified and practical theory of management."

"The Current Approaches to Management Theory and Science"

"The management theory jungle is still with us... Perhaps the most effective way [out of the jungle] would be for leading managers to take a more active role in narrowing the widening gap... between professional practice and our college and university business [schools]."

"Although the Gordon and Howell report noted the diversity of approaches to the study of management, it was Harold Koontz who delineated the differences and applied the catchy label ‘‘management theory jungle.’’"

"Management policies and the quality of leadership have a lot to do with individual performance."

"The application of systematic methods to the conduct of business is one of the most striking developments of the present day. The successful pursuit of business activities is increasingly based on carefully developed plans and well-ordered arrangements. The body of knowledge, called Organization, has become increasingly helpful in accomplishing the objectives of the enterprise."

"This book is an analysis of the development and change of the organization structure of the individual company. It is an attempt to combine the systematic thinking on this subject with the "rule of thumb" of practical experience. It essays an integration of the formal structure of the enterprise with the human forces that mold and are molded by it. Thus it is designed to aid the practical man of affairs as well as the student of organization."

"In this study, the primary aim has been to provide a perspective on organization development which would combine basic truths with practical realities. The answers had to be drawn, in the first place, from the wisdom of the great authorities of the past. These were the pioneers in scientific management and their followers, and the economists who evolved the principles of profit maximization."

"Organization planning is the process of defining and grouping the activities of the enterprise so that they may be most logically assigned and effectively executed. It is concerned with the establishment of relationships among the units so as to further the objectives of the enterprise."

"The following basic characteristics of organization should be kept in mind in any discussion of organization planning:"

"I find myself just a little annoyed at the tendency of all of us to adopt certain clichés about decentralization and then glibly announce that we're for it. I have been somewhat amused at some of my colleagues who are most vocal in expounding the virtues of decentralization and yet quite unconsciously are apt to be busily engaged in developing their own personal control over activities for which they are responsible."

"The major problems of organization can perhaps best be studied in dynamic terms, i.e., as they arise and change with the evolution of the company. In this dynamic setting the causes and nature of organization problems can be recognized most easily. Each major problem can be analyzed at the stage of the company's growth when it typically arises, when there are few complications and the organizational problem is centered about just one factor or change in the company's mode of operation. Just as it is easier to study the workings of democracy as they arise in one of the small towns of New England rather than in the United States as a whole, so it appears to be desirable, in dealing with a subject of such scope as organization, to isolate and study the major problems individually."

"Organization studies usually are devoted to the study of large-scale enterprise because information about larger companies is generally more widely recorded and more readily available. Because of this, more emphasis needs to be placed on organization planning in the smaller firms. It was at the suggestion of Lt. Colonel Lyndall Urwick that AMA undertook this study of companies of different sizes, as a means of improving our knowledge of organization—a field in which he has made major contributions. Many of the larger companies face small-scale problems in their subsidiaries and small units. However, those starting work in the large firm find it difficult to visualize the evolutionary process on which their company's present operation is based. Therefore, it may be of interest even for large companies to study the various stages of growth, up to and including, of course, their own present stage of development."

"Centralized control is provided for in a number of different ways:"

"In and of itself managerial decentralization is neither desirable nor undesirable. We must apply certain criteria in order to evaluate it. One such criterion is economic efficiency: At what point in the management hierarchy and by what individual is a particular decision made most efficiently? Is a particular function exercised or a service performed more cheaply if it is "centralized" or "decentralized"? It is impossible to say in general that either centralization or decentralization is more efficient."

"This section will deal with the mechanics of organization—the actual processes or methods of creating and changing the company's organization structure. The problem is essentially that of best utilizing the people and resources presently on hand, as contrasted with the building up of an organization from scratch, described in Part I."

"In some cases the changes may represent just one part of a general improvement program. Such steps as the following, for example, will generally affect the organization structure:"

"The functions or job contents necessary to reach objectives must be defined. This step is governed by two precepts."

"A list of major management functions and their contents may be helpful in reorganization and in preparation of job descriptions, organization manuals, and charts. The major management functions, analyzed in this Appendix on the basis of a number of manuals, job descriptions, and interviews, are as follows:"

"An organization that is based on pure rationality ignores many facets of human nature."

"The administrative unit that usually covers the company as a whole as well as all Its plants is broken Into smaller administrative units — often on a geographical or product basis. Each is headed by a manager who may be compared to the head of a smaller enterprise. Usually he has fairly complete control over basic line functions; if he also has staff services, such as accounting, engineering, research, and personnel. the unit may be largely self- contained."

"Centralized controls are designed to ensure that the chief executive can find out how well the delegated authority and responsibility are being exercised."

"Provision is made for utilization of a centralized staff of specialists to aid the decentralized operations."

"Every manager, up to the president of the company, must handle some phases of staffing, even though personnel may provide at least technical help in every case... Again, the personnel department seldom makes the final decision on selection, except in cases where large numbers of people must be hired at one time and the line managers would not have the time to interview them all. More commonly, even in the case of rank-and-file employees, it merely screens the applicants and picks out a few whom it considers the most promising. Then the immediate supervisors make a choice among these few."

"The extent to which personnel handles recruitment varies among companies, but in almost all large ones it will recruit all candidates for rank-and-file jobs, plant, or office, and for some of the lower and middle management jobs as well. As one goes up the line, the line managers are likely to take on more of the recruitment task."

"The scientific study of leadership in complex organizations, as an area of enquiry in its own right, is relatively new; hardly more than a decade old. As in any new "science" there is yet no comprehensive framework within which to operate. Unlike medical men after Harvey's great discovery on the circular system of the human body, we have no unifying concepts around which to make further refinements and discoveries."

"Empirical School ; A second approach to management I refer to as the "empirical" school. In this, I include those scholars who identify management as a study of experience, sometimes with intent to draw generalizations but usually merely as a means of teaching experience and transferring it to the practitioner or student. Typical of this school are those who see management or "policy" as the study and analysis of cases and those with such approaches as Ernest Dale's "comparative approach.""

"23rd Academy President Ernest Dale, 79, a consultant to top executives of some of the world's largest corporations, emeritus professor at the University of Pennsylvania's Wharton School of Finance & Commerce and 23rd President of the Academy of Management (1968), passed away."

"Each type of action is related to the degree of authority used by the boss and to the amount of freedom available to subordinates in reaching decisions. The actions seen on the extreme left characterize managers who maintain a high degree of control while those seen on the extreme right characterize managers who release a high degree of control."

"If they can see them as forces that consciously or unconsciously influence their behavior, they can better understand what makes them prefer to act in a given way. And understanding this, they can often make themselves more effective."

"In recent years the areas of leadership, training, and organization have increasingly challenged theorists, researchers, and practitioners. Evidence of this has been a growing literature from many disciplines and approaches. Without self-consciously determining the long-range directions of our work, we have found ourselves challenged by these issues and contributing to this literature."

"Human relations today has its iconoclasts and believers, critics and supporters, detractors and zealots. This is not surprising; for during the past twenty years, numerous research groups have burgeoned, and many individual investigators have become most active in the field. There has been a fantastic outpouring of professional and popular books and articles, untold new or revised college and university offerings, a plethora of in-plant training courses, a growing number of training laboratories and seminars, and a seemingly ever-increasing schedule of meetings and speeches—all concerned, in whole or in part, with "human relations.""

"The term "human relations" is being used to denote a field of inquiry - one which cuts across the jurisdictional boundaries of traditional social sciences in an effort to avoid fragmented, compartmentalized, or partial approaches to human problems."

"[The human relations movement ] will bring to bear existing and newly developed theories, methods, and techniques of the relevant social sciences upon the study of inter- and intrapersonal phenomena, ranging fully from the personality dynamics of individuals at one extreme to the relations of cultures at the other."

"Leadership is interpersonal influence, exercised in a situation, and directed, through the communication process, toward the attainment of a specified goal or goals."

"Bob Tannenbaum’s intellectual work described organizational systems not as machines with interchangeable human parts, but as living communities that can be designed to enable people to grow and learn while achieving business goals. His writings, as well as his teaching and consulting, reflected the value he placed on people, and his belief that, to a great extent, leadership effectiveness derives from awareness of one’s own basic assumptions about human nature and the testing out and revision of those assumptions."

"The majority of students studying for the master's degree in business are enrolled in makeshift programs which are generally unsatisfactory... Business administration gets a much larger portion of poor students and a smaller percentage of the best students than do the traditional professional fields."

"A study of business education in the United States was recently conducted by Professors Robert A. Gordon of the University of California (Berkeley) and John E. Howell of Stanford University. Their book, Higher Education for Business, has been published by Columbia University Press. Among their major recommendations are:"

"This pioneer work, written for both the professional economist and the businessman, has become a classic in its field. It is a detailed examination of the structure of the large business corporation in relation to its actual economic functioning. Because Gordon views the corporation not as an external institution but as organized human activity, his emphasis is on the personal and volitional elements in leadership, or how businessmen actually shape their practices. His analysis is based on a formidable mass of case material and statistical data"

"In the infinitely complex economic system on which we rely for our daily bread, no productive function is more important than that of our business leaders. These men are charged with the responsibility of giving direction and unity to the efforts of the many who participate in economic activity. It is their job to make the plans and decisions which will transform economic effort into the particular goods and services wanted by a myriad of consumers. Conversely, it is their job also to translate consumers' needs into employment opportunities for labor and other economic resources"

"Speak... of the separation of ownership and active leadership. Ordinarily the problem is stated in terms of the divorce between ownership and "control". This last word is badly overused, and it needs to be precisely defined... Our procedure... will be to study the ownership of officers and directors and then to ascertain the extent to which non-management stockholdings are sufficiently concentrated to permit through ownership the wielding of considerable power and influence (control?) over management by an individual, group or another corporation."

"Production management courses are often the repository for some of the most inappropriate and intellectually stultifying materials to be found in the business curriculum... many faculty members have little respect for such courses... and students complained more strongly to us about the pointlessness of the production requirement than of any other."

"Corporation executives, particularly the more prominent ones, and wealthy individuals generally decry the fact that the "New Deal" has fostered a feeling of class-consciousness among workers and low-income groups. Class-consciousness, however, is not new in this country, and it is most pronounced among those groups who decry it while not recognizing the phenomenon themselves. Common social backgrounds, common business interests, and common fears, prejudices, and loyalties create among those who possess wealth and economic power a strong and clear-cut feeling of membership in an economic and social class."

"Except for specialists such as market analysts and the like, economists as a professional group have had surprisingly little influence on businessman."

"The more active working directors become, the more closely involved they resemble the executives now responsible for providing business leadership. A full-time working director is merely another official who is also a director. Wide adoption of the proposal for professional directors, particularly if management is able to select the directors itself, may merely make general the situation now found in some companies in which only the executive group is represented on the board."

"Merely professionalizing the board of directors is not enough to achieve competent business leadership and at the same time the necessary independent check on executives."

"The real revolution (in property rights) has already largely taken place; the great majority of stockholders have been deprived of control of their property through the diffusion of ownership and the growth in the power of management."

"Business-cycle theorists concerned themselves with why the economy naturally generated fluctuations in employment and output, [while the rest of the profession] continued to operate on the assumption that full employment was the natural, equilibrium position for the economy."

"Robert Aaron Gordon [was] an economist and an international authority on business cycles and manpower policy... Dr. Gordon, a professor emeritus at the University of California at Berkeley, had been consultant to the President's Council of Economic Advisers under Presidents Eisenhower, Kennedy and Johnson. In 1975, he served as the president of the American Economic Association. Dr. Gordon, who was a strong critic of the current computer techniques used on economics, helped to design today's unemployment statistics when he was the bead of a Presidential commission that bore his Warne in the early 1960's."

"Already before World War II he had turned his attention to what would become a life-long preoccupation; business cycle theory and policy, with special emphasis on man-power problems and unemployment. His books on The Dynamics of Economic Activity (1947) and Business Fluctuations (1952) were for many years standard reading at American universities, and it was an obvious choice when in the early sixties the American Economic Association asked him to co-edit (with Lawrence Klein) its second volume on Readings in Business Cycles (1965), his most outstanding contributions in this field. His last book in this field was Economic Growth and Instability (1974). His primary interest, however, was in the more narrow field of unemployment, which he saw as his country's most serious."

"Although the Gordon and Howell report noted the diversity of approaches to the study of management, it was Harold Koontz who delineated the differences and applied the catchy label ‘‘management theory jungle.’’"

"Much time was wasted and ink spilled in the late 1960s and early 1970s trying to interpret the lagged effect of prices on wages as reflecting adaptive lags in the formation of expectations. But if we have learned anything from the new Keynesian economics of Fischer, Taylor, Blanchard, and their younger followers, it is that price and wage inertia is compatible with rational expectations."

"Since the late 1960s macroeconomic debates in the United States have centered on the competing interpretations of the new classical and new Keynesian macroeconomics. The initial new classical model developed in the early 1970s by Robert E. Lucas, Jr., combined market-clearing, imperfect information, and rational expectations. After much testing, it was eventually rejected in the late 1970s for failing to explain why business cycles lasted on average four years while information delays lasted only a few weeks. It was soon replaced by a second new classical approach, the Real Business Cycle (RBC) model, which was also based on continuous market clearing and competitive equilibrium, but now generated the business cycle through serially correlated procyclical technology shocks."

"There are four headwinds that are just hitting the American economy in the face. They're demographics, education, debt and inequality. They're powerful enough to cut growth in half. So we need a lot of innovation to offset this decline. And here's my theme: Because of the headwinds, if innovation continues to be as powerful as it has been in the last 150 years, growth is cut in half. If innovation is less powerful, invents less great, wonderful things, then growth is going to be even lower than half of history."

"The postwar era has not surprised Arthur Burns, for business cycles have continued their "unceasing round." although the United States recession of 1981-82 was the eighth since World War II and the deepest postwar slump by almost any measure, the 1983-84 recovery displayed an upward momentum sufficient to befuddle forecasters and delight incumbent politicians. Nor would a reincarnated Joseph Schumpeter be disappointed in the current status of business cycle research in the economics profession. To be sure, interest in business cycles decayed during the prosperity of the 1960s, as symbolized in the 1969 conference volume, Is the Business Cycle Obsolete? and in Paul Samuelson's remark the same year that the National Bureau of Economic Research "has worked itself out of one of its first jobs, namely, the business cycle.""

"But business cycles as a subject for study have enjoyed a revival for at least a decade now, stimulated in part by the severity of the 1974-75 and 1981-82 recessions and in part by the intellectual ferment surrounding the development of the "equilibrium business cycle model" and the attention paid to the seminal work of Robert E. Lucas, Jr., contained in his book Studies in Business Cycle Theory (1981). Indeed, there is no longer any need to lament the passing of economics courses explicitly carrying the title "Business Cycles," since the topic of business cycle behavior and analysis has so infiltrated courses carrying the title "Macroeconomics" that the two subjects have become almost interchangeable. 2 In this light it is fitting that the major research program of the NBER in this area is called "Economic Fluctuations" rather than "Macroeconomics.""

"During the relatively brief period in the late 1960s when economists were pondering the possible obsolescence of business cycles, the scholarly discipline of macroeconomics showed signs of becoming fragmented into speciality areas devoted to components of the then popular large-scale econometric models-for example, consumption, investment, money demand, and the Phillips curve. But more recently the revival of severe real world business cycles, together with the revolutions associated with Milton Friedman's monetarism and Lucas's classical equilibrium models, has brought about a revival of interest in economic analysis that focuses on a few broad aggregates summarizing activity in the economy as a whole-nominal and real income, the inflation rate, and the unemployment rate."

"The original Lucas version of the new-classical macroeconomics combined the undeniable appeal of rational expectations with two more dubious assumptions inherited from Friedman (1968), that is, continuous market clearing and imperfect information, to form the foundation of the famous “Lucas supply function” (more justly, the Friedman-Lucas supply function). Soon Sargent and Wallace (1975) extracted from Lucas’s model its implication for monetary policy, the famous “policy-ineffectiveness proposition.” The demonstration by Barro (1977) that one could interpret historical U.S. data to be consistent with the proposition and the theory brought new-classical economics to its shortlived period of peak influence."

"Part of the downfall came early and on theoretical grounds, with the realization that real-world information lags for aggregate variables like the price level and money supply were much too short to rationalize the persistent multiyear deviations from equilibrium that seemed to characterize business cycles in most industrialized countries. The second dubious assumption, continuous market clearing, was viewed more critically once it was recognized that it was not an inextricable concomitant of rational expectations, especially when Stanley Fischer (1977) and Edmund Phelps and John Taylor (1977) showed that rational expectations could be embedded in a model containing real-world institutional features like multiperiod wage and price contracts to generate nonmarket-clearing behavior. Once Fischer and Phelps-Taylor had shown that rational expectations by itself was a necessary but not a sufficient condition to validate new-classical policy conclusions, the race was on to develop the new-Keynesian theory based on rational expectations and one or another institutional impediment to continuous market clearing."

"New-classical economics has been undeniably influential, but not in the way that its three prominent creators originally imagined. Its most important contribution to macroeconomics, the assumption of rational expectations, was stolen almost immediately, and applied more fruitfully, by the new Keynesians."

"The century of revolution in the United States after the Civil War was economic, not political, freeing households from an unremitting daily grind of painful manual labor, household drudgery, darkness, isolation, and early death. Only one hundred years later, daily life had changed beyond recognition. Manual outdoor jobs were replaced by work in air-conditioned environments, housework was increasingly performed by electric appliances, darkness was replaced by light, and isolation was replaced not just by travel, but also by color television images bringing the world into the living room. Most important, a newborn infant could expect to live not to age forty-five, but to age seventy-two. The economic revolution of 1870 to 1970 was unique in human history, unrepeatable because so many of its achievements could happen only once."

"This theme of mismeasurement interacts with the designation of the one hundred years between 1870 and 1970 as the “special century.” Measurement errors are greatest in the early years, both in the scope of the standard of living and in the extent of price index bias. Clearly the welfare benefits to consumers in the categories of life entirely omitted from GDP were greatest long ago: the transition from the scrub board to the automatic washing machine was a more important contributor to consumer welfare than the shift from manual to electronic washing machine controls or from a twelve-pound tub to an eighteen pound tub. The most important unmeasured benefit of all, the extension of life expectancy, occurred much more rapidly from 1890 to 1950 than afterward."

"Business cycles are a type of fluctuation found in the aggregate activity of nations that organize their work mainly in business enterprises: a cycle consists of expansions occurring at about the same time in many economic activities, followed by similarly general recessions, contractions, and revivals which merge into the expansion phase of the next cycle; this sequence of changes is recurrent but not periodic; in duration business cycles vary from more than one year to ten or twelve years; they are not divisible into shorter cycles of similar character with amplitudes approximating their own."

"For well over a century business cycles have run an unceasing round. They have persisted through vast economic and social changes; they have withstood countless experiments in industry, agriculture, banking, industrial relations, and public policy; they have confounded forecasters without number, belied repeated prophecies of a "new era of prosperity" and outlived repeated forebodings of "chronic depression.""

"THE AMERICAN people have of late been more conscious of the business cycle, more sensitive to every wrinkle of economic curves, more alert to the possible need for contra-cyclical action on the part of government, than ever before in our history. Minor changes of employment or of productivity or of the price level, which in an earlier generation would have gone unnoticed, are nowadays followed closely by laymen as well as experts."

"This sensitivity to the phenomena of recession and inflation is a symptom of an increased public awareness of both the need for and the attainability of economic progress. It is precisely because so much of current industrial and governmental practice can be better in the future that our meetings this year are focused on the broad problem of improving the performance of the American economy. However, as we go about the task of appraisal and criticism, it will be well to discipline our impatience for reform. In the measure that we avoid exaggerating our nation's failures or understating its successes, we shall make it easier for ourselves as well as for economists in other countries to see current needs and developments in a just perspective."

"Clearly, the broad effect of economic evolution until about 1920 was to increase the concentration of jobs in the cyclically volatile industries, and this was a major force tending to intensify declines of employment during business contractions. Since then, the continued progress of technology, the very factor which originally was mainly responsible for the concentration in the cyclical industries, has served to arrest this tendency. The upward trend of production in manufacturing and the other highly cyclical industries has remained rapid in recent decades."

"The only disagreement among economists is whether Burns fully understood the mistakes he was making, or was so wedded to incorrect Keynesian theories that he didn't realize what he was doing. The only alternative is that he was under irresistible political pressure from Nixon and had no choice. Neither explanation is very favorable to Burns. Economists now recognize the Nixon era as Exhibit A in how the adoption of bad economic policies in pursuit of short-term political gain eventually turns out to be bad politics as well."

"The OPEC oil-price hike caused inflation to shoot up in the USA. The stock markets took a real hit, causing considerable nervousness, while there was some serious supply and demand confusion within American industry. However, there was no collapse of the stock markets or the currency or the banking system. Under the chairmanship of Arthur Burns from 1970 to 1978, the Federal Reserve, which followed aggressive deflationary policies, proved robust and, although demand remained lower for a while, manufacturing had improved by mid-1974."

"[ Management can be defined as] the function of getting things done through others."

"After joining the faculty at UCLA in 1948, Professor O'Donnell quickly became a leader in the newly developing field of management theory and policy. He taught the basic courses in this area. In 1955 the first edition of the textbook Principles of Management, coauthored with Professor Harold Koontz, was published by McGraw-Hill. This book synthesized an operational approach to the management of enterprises. By filling a long-felt need in colleges and universities, it soon became the outstanding college textbook on its subject."

"Harold D. Koontz (1908–1984) and Cyril O’Donnell (1900–1976) of the University of California at Los Angeles defined management as "the function of getting things done through others." They furthered Fayol’s ideas and sought to provide a conceptual framework for the orderly presentation of the principles of management. According to Koontz and O’Donnell, managers were known by the work they performed, which was planning, organizing, staffing, directing, and controlling. These authors pointed out that, although some authorities maintained that these functions were exercised in the sequence given, in practice managers actually used all five simultaneously. They stressed that each of these functions contributed to organizational coordination. Coordination, however, was not a separate function itself but was the result of effective utilization of the five basic managerial functions. Koontz and O’Donnell offered a number of principles: in organizing, for example, "the principle of parity of authority and responsibility" and "the principle of unity of command"; in planning, "the principle of strategic factors"; and so on. The Koontz and O’Donnell text became an enduring, integral part of the search for a systematic body of management knowledge."

"The increasing importance of advanced manufacturing technology, total quality management, and just-in-time to manufacturing firms raises some basic questions as to the strategic use of these techniques in manufacturing. Does strategic use of these techniques influence performance? How is the impact of these techniques influenced by the competitive environment? Are the techniques actually being used strategically? A study in a large sample of manufacturing organizations confirms that the use of integrated manufacturing techniques-particularly total quality-influences performance, and that these effects are magnified or diminished by both the competitive environment and manufacturing strategy. It also shows that, in some cases, firms are missing opportunities to combine integrated manufacturing and strategy in ways that would substantially impact their performance."

"This study examines two alternative views—universal and contingency—of the human resources (HR)-performance relationship in manufacturing settings. Results from a survey of 97 plants primarily support a contingency approach to human resource management (HRM). An HR system focused on human capital enhancement was directly related to multiple dimensions of operational performance (i.e., employee productivity, machine efficiency, and customer alignment), but subsequent analysis revealed that this main effect was predominately the result of linking human-capital-enhancing HR systems with a quality manufacturing strategy. Other manufacturing strategies also moderated the HR-performance relationship."

"Adaptation is a crucial challenge for organizations, and an important theme in the strategy and organization theory literature. We still have much to learn, however, about the strategic processes by which adaptation is achieved. In this paper we focus on a basic element in the adaptation process, i.e. flexibility within the strategic decision-making process. We concentrate on strategic decisions because these choices are the most important adaptations the firm makes. We suggest that the core of all organizational adaptation is a decision-making process. Unless the decision-making process itself is flexible, it is unlikely the organization can be flexible enough to adapt."

"We introduce this theory-development forum by comparing total quality and management theory at both global and topic-specific levels. Our analysis suggests that management research could be enhanced by incorporating some insights of total quality into management theory. We also conclude, however, that management practice could be improved by incorporating insights from management theory into total quality efforts, and that, in fact, total quality has already incorporated many such insights. Finally, we suggest some directions for theory development and research on total quality."

"Management theory is a multidisciplinary academic field, whose links to practice are controversial (eg, Astley & Zammuto, 1992; Barley, Meyer, & Gash, 1988; Hambrick, 1994)."

"Quality management is ... an approach to management made up of a set of mutually reinforcing principles, each of which is supported by a set of practices and techniques."

"Total Quality Management presents the basic principles and tools associated with TQ and provides many illustrations and end-of-chapter cases that can be used as the basis for class discussion. Many cases focus on large and small companies in manufacturing and service industries in North and South America, Europe, and Asia–Pacific. Unlike most books on TQ, this one is organized according to traditional management topics. This organization helps students to see the parallels between TQ and management theories in areas such as organizational design and leadership. TQ is often presented as new or different, which it clearly is not. This book has three objectives: to show students how these principles and methods have been put into effect in a variety of organizations, to illustrate the relationship between TQ principles and the theories and models studied in management courses and to familiarize students with the basic principles and methods associated with total quality."

"Total quality is a matter of survival."

"Building the house of quality requires six basic steps:"

"Brand loyal behavior is defined as the overt act of selective repeat purchasing based on evaluative psychological decision processes, while brand loyal attitudes are the underlying predisposition to behave in such a selective fashion."

"The succes of a brand on the long term is not based on a number of consumers that buy it once, but on the number of consumers who become regular buyers of the brand."

"Our position is that a deterministic orientation can be meaningfully applied to a distinct subset of RPB, a subset we refer to as BL [Brand Loyalty]."

"The present status of brand loyalty research can be characterized as that of a construct undergoing substantial revision and redirection in measurement orientation. From an overly behavioral macro approach, it is gradually making the transition to a more micro understanding of the cognitive mechanisms underlying choice behavior. If brand loyalty is ever to be managed, not just measured, it will have to be elaborated in a much more detailed description of cognitive activities."

"If brand loyalty is ever to be managed, not just measured, it will have to be elaborated in a much more detailed description of cognitive activities."

"Chaos in Research-land: the sorry status of brand loyalty measurement."

"[Brand loyalty is] (1) the biased (i.e., nonrandom), (2) behavioral response (i.e., purchase), (3) expressed over time, (4) by some decision-making unit, (5) with respect to one or more alternative brands out of a set of such brands, and (6) is a function of psychological (decision-making, evaluative) processes"

"Before one could speak of brand loyal, one must have the opportunity of being disloyal."

"Although "loyalty" itself is a fertile relationship concept, its nuances have been lost in traditional brand loyalty research. Operationalizations relying on sequence or proportion of purchase perhaps better reflect a notion of inertia than loyalty with its full relational significance. Even well-intentioned attempts to consider loyalty as more than repeat purchase (Jacoby and Chestnut 1978) reduce the process to 'narrowly cognitive utilitarian decision-making' thus failing to capture 'the talismanic relationships consumers form with that which is consumed' (Belk, Wallendorf and Sherry 1989, p.31)"

"The coordination of information technology management presents a challenge to firms with dispersed IT practices. Decentralization may bring flexibility and fast response to changing business needs, as well as other benefits, but decentralization also makes systems integration difficult, presents a barrier to standardization, and acts as a disincentive toward achieving economies of scale. As a result, there is a need to balance the decentralization of IT management to business units with some centralized planning for technology, data, and human resources."

"Decentralization may bring flexibility and fast response to changing business needs, as well as other benefits, but decentralization also makes systems integration difficult, presents a barrier to standardization, and acts as a disincentive toward achieving economies of scale. As a result, there is a need to balance the decentralization of IT management to business units with some centralized planning for technology, data, and human resources"

"In today's volatile world, organizational design is an everyday, ongoing activity and challenge for every executive, whether managing a global enterprise or a small work team. Globalization, worldwide competition, deregulation, and ever-new technologies drive the ongoing reassessment of the organization. The executive response has been many new forms of organizational design: virtual, learning, modular, cellular, network, alliance, or spaghetti – to name a few. New organizational forms challenge old ways of organizing for efficiency and effectiveness. Yet fundamental design principles underlie any well-functioning organization. Organizations still require a formal design."

""Ask any two managers precisely what they mean by 'staff', or 'decentralization,' or 'budget.' The differences in interpretation will make communication difficult. If we are to develop professional practices of management work, semantics requires first attention."

"A manager is a leader who enables people to work most effectively together by performing primarily the work of planning, organizing, leading and controlling."

"The manager is a new kind of professional, destined to take his place with the scientist and the educator in shaping the society of the future. Expert in a complex, difficult, and most demanding kind of work, the role of the professional manager is critical and his potential is unlimited. In the years ahead, competence in management will mark the difference between the leaders and the also-rans. This will hold true not only in business, but also in government and education, and in all those situations in which people wish to maximize their efforts for their common benefit."

"Far-reaching changes have been taking place in the economy over the past twenty years. Growth and diversification mark the long-term character of the business climate. Technological improvements have been occurring with startling rapidity. New materials, new products and processes present a host of challenging opportunities to the individuals and the firms ready to exploit them. At the same time, however, short-ages in skilled manpower are prevalent, the costs of doing business have increased sharply, and there is keen competition in every aspect of enterprise."

"New and dynamic concepts of management and organization are evolving which are a measure of the span and the challenge of the business of tomorrow. These concepts are predicated upon the assumption that management is an identifiable, measurable, and transferable activity and that it can be mastered as can any other skill. Many of the older concepts of management and organization have been put to question and abandoned or replaced. Much of this new thinking has taken place so quietly and unobtrusively, even secretly, that it has not generally been reported. The fact is that some companies consider their methods of management and organization as much a competitive factor as marketing methods, applied research, or new production processes. And often they guard such information as carefully as other classified data about their businesses"

"The manager is one of the great unknowns in business. Although perhaps the most common word in the corporate lexicon, the term "manager" meets with little agreement as to nature, meaning, or scope. This is all the more surprising when we consider the vital importance of precise understanding of this expression to most enterprises. Most company organization charts are studded with dozens of boxes entitled manager of one kind or another. Each such position, presumably, has been assigned management responsibility and authority. In most cases, the performance of the person holding this position is being appraised as a manager and his potential for advancement is gauged against what is assumed to be a management yardstick."

"Objectives are goals established to guide the efforts of the company and each of its components. Effective management is always management by objectives. An organization can grow and change in an orderly and progressive manner only if well-defined goals have been established to guide its progress. Not only must there be an objective for the total organization, but, since each component can accomplish only limited work, there should be spelled out division and departmental goals which serve as specific guides for subordinate units. These enable individual managers to operate with maximum freedom but always within the framework of over-all company objectives. Unless such goals are established, there is likely to be haphazard activity, uneconomical commitment of capital funds, poor utilization of people, and mediocre operating results over the long term."

"Almost any business manager will affirm that sound organization is highly important to business success. Many will characterize organization as the foundation upon which the whole structure of management is built. Unfortunately, there are many differences of opinion as to the precise nature of organization, as of other aspects of management; and there is even less concurrence on what specific work must be accomplished in organizing."

"Organization is a mechanism or structure that enables living things to work effectively together. The evolution of life and of human society demonstrates the need for organization."

"Organization is a mechanism or structure that enables things to work effectively together. The basic elements of organization are division of labour, a source of authority, and relationships. This is true for all forms of living organizations."

"Delegation is the dynamics of management; it is the process a manager follows in dividing the work assigned to him so that he performs that part which only he, because of his unique organizational placement, can perform effectively, and so that he can get others to help him with what remains. How can he best share his burden? First, he must entrust to others the performance of part of the work he would otherwise have to do himself; secondly, he must provide a means of checking up on the work that is done for him to ensure that it is done as he wishes."

"The organization... is not an end in itself. Organization, properly designed, can help improve teamwork and productivity by providing a framework within which people can work together most effectively. But we must relate the people to the design. In many cases, the organization structure which has technical excellence is, for practical purposes, quite useless because it is not fitted to the needs of the people it is designed to serve, ft is a lifeless pattern."

"The early nineteen-fifties saw the first widespread emergence of business dictionaries in the United States. The first management vocabulary, however, was not published until the year 1958. It was entitled, Common Vocabulary of Professional Management (COMVOC), and was prepared the direction of Louis A. Allen, President of Louis A. Allen Associates, Incorporated."

"Achievements include first to fully classify human work into categories, a typology which facilities diagnosis and correction of organizational problems."

"Prior to establishing Louis Allen Worldwide, Louis Allen was with the international consulting organisation Booz, Allen and Hamilton, Inc. His assignment focussed primarily on companies facing problems of organisational growth and development. During this assignment, he discovered that although organisations differ significantly, they also shared many similarities. He then began to distil the commonalities, organising them into a teachable form, and teaching client companies how to use this knowledge for themselves."

"In our company we have had the experience if starting our appraisal at the top level. It was my privilege to serve on the staff of the president if our company as he appraised those people who reported directly to him. He made his own notes and he acted as a chairman of the meeting. Subsequently, I saw the reflection of his conscientiousness when the three vice presidents sat together as a committee and appraised the people who report directly to them. They, too, took the same painstaking care."

"Management is the accomplishment of results through the efforts of other people."

"The highest standard for each individual is that which his conscience tells him is best."

"Management is the development of people and not the direction of things ... Management is personnel administration."

"The application of systematic methods to the conduct of business is one of the most striking developments of the present day. The successful pursuit of business activities is increasingly based on carefully developed plans and well-ordered arrangements. The body of knowledge, called Organization, has become increasingly helpful in accomplishing the objectives of the enterprise."

"This book is an analysis of the development and change of the organization structure of the individual company. It is an attempt to combine the systematic thinking on this subject with the "rule of thumb" of practical experience. It essays an integration of the formal structure of the enterprise with the human forces that mold and are molded by it. Thus it is designed to aid the practical man of affairs as well as the student of organization."

"[the professional manager is] an individual who, because of his training, experience, and competence, is employed to develop and expand the assets and realizations of owners."

"The future of America is dependent upon the caliber of management to be found in the ranks of business and industry. It is management that sets the pace and motivates labor to do its job. It is the combination of a courageous, competent management and a high-moraled, highly productive labor force that makes more things available for more people, and therefore, increases the standard of living."

"Lawrence A. Appley, a Methodist minister’s son who served on the boards of 35 corporations and for almost 45 years preached the gospel of quality management in corporate life and Government service, died on Friday at his home in Hamilton, N.Y. He was two weeks short of his 93d birthday."

"Lawrence A. Appley, 92, an authority on quality management and recipient of the Presidential Medal of Merit, died Friday in Hamilton, N.Y. He was on the boards of 35 corporations and preached management that emphasized human relations over technology."

"A delegate is a person who is appointed to represent and act for another... The process of delegation is one whereby certain of the executive's functions, responsibilities and authority are released and committed to designated subordinate positions. The appointment of an individual to a Job and his acceptance of the obligations associated with it entitle him to use the corresponding authority for the duration of his appointment... Delegation enables the principal executive to extend his abilities beyond the limits of his personal powers. It makes it possible for an executive to accomplish successfully a mission that exceeds many times his immediate, personal limits of time, physical energy, and knowledge. The delegations of responsibility and authority usually are made simultaneously, since the latter is a derivative of the former."

"Administration is sometimes referred to by specialized words such as management or organization, by particular terms such as executive work, or by general concepts such as public administration. Regardless of the name or nature of this supposedly new science, it is an art and technique which reaches far back into the experience of civilized man. For this reason, we include in this book ideas about administration presented by many authorities ranging from Aristotle and Socrates to Wilson and Stalin. Also included are the contributions of some three hundred other writers less renowned but no less convincing as to the importance of administration and its related subjects of management and organization."

"Administration, like other fields of knowledge, may be defined in various ways, but there is wide agreement on the following aspects of the subject:"

"One motive for Henri Fayol's vigorous defense of administration as a subject for serious scientific study was the fact that he saw France, in the period between the and World War I, disintegrating for lack of administrative ability and managerial efficiency. Hoping to make sounder administrative practices available to French civil and military agencies, he fostered the "Center of Studies in Administration" in Paris, as a kind of French Public Administration Clearing House. Fayol was one of the principal consultants to the French government during the crisis period of World War I and a leading participant in the International Congress of Administrative Sciences. Despite his conservative views about French politics, he was in complete agreement on questions of governmental organization with the rising French socialist of those days, Leon Blum, who, as Prime Minister, was later to try out some of the administrative ideas they both held in common. This is... but one of several such instances of agreement on administrative matters among political opposites, an instance which helps to establish the view Fayol insisted upon, namely, that administration is a subject of universal importance."

"Brooks Adams advocated that the chief function of administration should be to facilitate social change, or paradoxical as it may seem, to assure social stability by facilitating social change. Great-grandson of President John Adams, grandson of President Quincy Adams, brother of the "educated" Henry Adams, Brooks Adams produced, during the early 1900'S, a series of unorthodox historical essays. Their titles were more radical than their contents: The Law of Civilization and Decay, "The Collapse of Capitalistic Government," and The Theory of Social Revolutions. The last of these is quoted below; the first was regarded by Theodore Roosevelt as a "melancholy" but "powerful" book with "a very ugly element of truth.""

"Charles E. Merriam... attributed a decisive position to the managers of a democratic society. As Chairman of the Department of Political Science at the University of Chicago between the two World Wars, Professor Merriam inspired a generation of students and practitioners of public administration. As a local political leader in Chicago and as a national adviser to liberal American Presidents from Theodore Roosevelt to Franklin Roosevelt, Merriam recognized the practical significance of public management. In his overall treatise on Systematic Politics, Merriam devoted the final but perhaps the most significant section of his chapter on "The Organs of Government" to what he calls "the managerial organ.""

"Admitting that business and government are both bureaucratic giants, most authorities take the view that an intrinsic difference separates them. This position was expressed effectively by: (a) Professor Wallace Donham, Dean of the Graduate School of Business Administration at Harvard University; (b) Sir Josiah Stamp, an English businessman and public servant; and (c) Professor Nathan Isaacs, also of Harvard University."

"THE MOST ELEMENTARY ASPECT of administration is organization the structure of social institutions and their constituent parts, the composition of economic enterprises and their various branches, the organization of governmental agencies and their numerous departments. As it is mainly a matter of structure, organization bears the same rudimentary relationship to administration as does the science of anatomy or skeletology to the field of medicine. An administrative organization can be sketched and charted just as the human body can be physically depicted. Apart from its graphic convenience and its "teachable" quality, however, what intrinsic relationship does organization bear to administration?"

"MANAGEMENT involves the concrete practices and the observable techniques of administration. Frequently the term management is used synonymously with administration, and it is invariably assumed that a good manager is a good organizer. All of these usages are justified in the general terminology of administration, but in its more specialized sense management refers to the following specific techniques:"

"Many scholars who studied at the in the 1930s knew him well, due to his role in the intellectual ferment within political science and the other social sciences at Chicago during these years. At the age of 23 he was already a Ph.D. and a research collaborator with . By the age of 27, he had published three books with the University of Chicago Press: Judicial Systems of Metropolitan Chicago (1932); Movement of the Metropolitan Region of Chicago (1933), (co-authored with Charles E. Merriam and Spencer Parratt); and Home Rule for Metropolitan Chicago (1935). Among the best of his publications was a report of the in 1939, which helped to launch modern research on local government as a component in tri-level federal system that is the foundation for intergovernmental relations in the United States. During these years, he was an active participant in the New Deal, and the ideals of the New Deal remained a cornerstone of his approach to government and politics."

"I'm a professor all right. But I was always violently anti-New Deal."

"We usually think of an individual doing administrative work not as an administrator, but as a businessman, an Army officer, or a civil servant. More specifically, we think of him, if he is a businessman, as a merchant, a production man, a sales manager, or a financial expert; while the Army officer may be a company commander, a staff officer, or a tactician; and the civil servant, a diplomat, a postmaster, or a revenue collector. It is true that all of these jobs involve administration: yet each of them is intimately bound up with a more or less specialized subject matter and it does not follow that a good production man win make a good diplomat or company commander."

"Although good administrators are not necessarily interchangeable, there appear to be certain recurring aspects of administrative work to which attention may be profitably directed."

"It may be that the process of education can do no more than make a man aware of the need for making decisions and taking action, and of the advantages of doing so wisely and with good judgment. But even that, though it can be expressed in a sentence, is manifested in many different ways that its full development and the appreciation of it may be a lengthy process. Can a formal educational process assist students to develop facility in making and implementing wise decisions in administrative matters? There are many aphorisms about the advantages of self-education, the dangers of the theorist with his learning and lack of common sense, and the value of experience as the best teacher. Certainly. it is difficult to match, with formal education, the wisdom that comes from experience. It may be noted, however, that experience may lead to a lack of mental flexibility in meeting new situations; an experienced but opinionated man is as ineffective as one with a formalized doctrinaire approach."

"Though it is possible to develop various principles of administration by generalizing from particular cases, the resulting abstractions seem to have little significance. The process of administration involves action requiring the application of any given principle in infinitely varying actual situations. In brief, administration is an art requiring skill, practice, and judgment. However much it can be analyzed in the abstract, it becomes manifest only in specific concrete situations. In fact, the best administrators may have difficulty in relating their actions to explicit principles; the fully developed skill will most often lead to quasi-intuitive action without a conscious frame of reference or checklist of points to be considered."

"Dan Throop Smith [was] one of the nation's leading tax experts and the principal architect of the present ... Professor Smith belonged to an elite group of economists who switched back and forth from top academic positions at Harvard, Stanford and other major universities to policy-making positions in Government. He was generally regarded as a conservative economist."

"How did the innovations of yesterday become the institutions of today? An idea does not institutionalize itself. It has to be organized. When the initiator has proposed a plan and inspired a group of followers with the desire to pursue it, he must devise a way in which their joint purpose can be realized. It is this process of organization and management which I call administration. No group movement endures without it. The administrator just sets up a structure of laws, rules, mechanisms, that is designed to accomplish a specific purpose and then directs the working of all its constituent elements, so that an institution is comparable to a machine with standard parts. Each part is designed to perform a specialized purpose to which it is adapted. It is replaceable, and the demand is not so much for individuals with creative imagination as for trained functionaries with suitable abilities. Every part of the machine conforms to a standard pattern and professional schools or colleges turn out candidates to replace those who drop out of active service. In this way institutions are maintained from year to year. They aim at that balance between energy expended and results achieved, which we call efficiency"

"The administrative function, therefore, insures the continuance of the existing order with a minimum of effort and risk. Its fundamental aim is to "carry on" rather than to venture along new and untried paths. Administrators are, therefore, the stabilizers of society and the guardians of tradition. They are stabilizers in both a positive and a negative sense, for not only do they make possible the continuance of the ideas which they convert into institutions: they also frustrate many innovations to which they deny their support. With the weight of their authority they confront every attempt to initiate a new development, and test it with a view to its effect on established interests. They resist change and stow down the rate of experimentation so that the main body of society can keep pace with it. The ponderous social machinery which is so irritating to the impulsive initiator is thus a safeguard against sudden changes which paralyze the Jess adaptable members of society and which would result in chaos if subjected to no check."

"The administrative function comes easily to conservatives for the principal requirement of administration is unquestioning conformity to the standards embodied by the particular institution."

"Professor Paul Pigors of the Massachusetts Institute of Technology... feels that a primary function of administration is that of stabilizing social institutions. Interested not only in the leadership function of society's managers but also in the "followership" role of both the administrators and the "administered," industrial psychologists like Pigors have shown an abiding interest in administration as a means of keeping society in balance while its institutions are at the same time undergoing a process of change and adjustment."

"While Paul Pigors contends that the main purpose of administration is to preserve the status quo in society, Brooks Adams regards administration as a chief agent of social change."

"All these associates were willing to help me in expanding my habit of trying to look all around things before interpreting them, as it seemed to me that the administrator should, instead of limiting his range of thought to some specialized point of view."

"The problem is one in the general physiology of society. The continuance of life and health for any individual depends on maintenance of a moving organic equilibrium within certain definite limits of tolerance. The daily work of the world is done by individuals living their specialized economic and social lives within a moving equilibrium... But specialized progress brought uneven social and economic developments and serious maladjustment. General equilibrium is lost. The limits of tolerance, the margins of safety, are exceeded."

"The inability of business and political leadership to rise to new heights [required by the] unprecedented situation, [familiar to us now as the Great Depression.. urged for] bold policies...bold anything is needed at this time."

"Everything ahead of us is dangerous. There isn’t a power the President has asked for that isn’t dangerous. But there isn’t a power or a combination of powers he has asked for so dangerous as continuing to do nothing."

"In the social sciences there has been a serious gap, except where administration is involved, between the theorist and the man who must act. As a result our social science theory continues to be detached from reality. There is great need for a new social science, namely, the Science of Administration, where social theory and action must meet. Administration as conceived in this paper is, therefore, a social science with its own techniques, its own abstractions clustering around the concept of action through human organizations, and its own problems of theory. It is vitally concerned in integrating other sciences, physical, biological, psychological, and social, at the point where action is involved. Its social importance is great. Indeed if our civilization breaks down, it will be mainly a breakdown of administration, both private and public."

"At this point water-tight compartments of university specialization and theories founded on the selected isolation of facts easily break down. Specialized thinking is rarely a sufficient foundation for concrete decisions involving action. The social scientist cannot often form sound administrative judgments solely on the basis of elements which he has picked out simply because they relate directly to his particular specialty. The present emphasis on artificial subdivisions of knowledge and on specialized thinking and teaching in universities, technical schools, and colleges and the relative neglect of administrative problems involving action have a dangerously narrowing effect on graduates of these institutions. While we may and frequently do arouse the intellectual interest of students in a considerable variety of subjects intimately related to the civilization of which they are a part, we pay almost no attention to the web of cross ties among these subjects."

"As a result our graduates leave us without having formed the habit of seeking wide generalizations related to diverse variables in the social situations which surround them. Because they lack both habits and methods which lead them to seek generalizations, they become, after they leave us, Specialists themselves and make decisions without the guides to action within their special fields which wider viewpoints might give. To develop them as we must, the artificial dividing lines between social sciences must in large measure be broken down. Specialized training must be both counteracted and supplemented by training which brings in the widest social implications. Otherwise men will not be trained to meet the problems faced by public and private administrators."

"Dimock makes the generalization that 90 percent of the characteristics of public government executive management are identical with those of private executive management. In spite of large areas of similarity, I strongly dissent. I would place the percentage very much lower - whether 30 per cent or SO per cent lower, I shall not attempt to say."

"I find from experience both with government agencies and with private business that there are striking differences. One of those differences is that, in government, there is more continuity and definition in the mandate. The limits of action are often clearly defined. in many cases by Congress. No such situation exists in large private business. Dimock says bureaucracies are related, for example, to size. Yet he points out some bearings on bureaucracies of the inadequacies in our federal civil service system and the conflict of loyalties which arises out of it. This, he states, he succeeded in overcoming. I have had contact with several war agencies made up mainly of businessmen. These men rapidly took on bureaucratic characteristics radically different from their own behavior in private life. The only close parallels I find in the areas of private business to the deadening effects of the present civil service are, on the one hand, what one of my old labor leaders used to call the "sonority" system and, on the other, the very real problems faced by management in dealing with labor which arise immediately out of the prolonged governmental support for organized labor-which is in my judgment bad for labor."

"To me, there are multifarious forces at work in government departments which are different from those in private business; the responsibility to and necessary interference of Congress, the responsibility to the President, to defined over-all controls, have little parallel in private business. The power politics of government departments are radically different from the power politics of private companies. The existence of pipe lines into Congress strengthens the bureaucracy against the chief executive of the particular subdivision of government. It may strengthen it against the President of the United States or Congress itself. Dimock himself points out how easily government bureaucracies develop organized opposition to policies involving change. This opposition may in substance, though not in form, sabotage all change which appears to threaten the security of the bureaucracy. Power politics, of course, exists in large private companies; but the urge to expand functions and simultaneously to defend what exists seems to me radically less in the case of well-run, large, private industry than in the case of big departments of the government. The quantitative difference becomes a qualitative change."

"p. 176; cited in: Albert Lepawsky (1949), Administration, p. 194-5"

"Admitting that business and government are both bureaucratic giants, most authorities take the view that an intrinsic difference separates them. This position was expressed effectively by: (a) Professor Wallace Donham, Dean of the Graduate School of Business Administration at Harvard University; (b) Sir Josiah Stamp, an English businessman and public servant; and (c) Professor Nathan Isaacs, also of Harvard University."

"As Dean, Donham developed the "case method" of teaching business administration by the study of actual experiences from day-to-day business life. He was also a leader in the scientific study of human relations, and after World War II helped to introduce human relations courses in Harvard College... When he resigned from the deanship in 1942, Donham still continued as George F. Baker Professor of Business Administration until 1948. During this six year period, he especially studied the human factor in economic relationships. His book, "Education for Responsible Living," in 1944 was a critique of college education and stressed the importance of courses in human relations."

"His imaginative nature led him to a wider conception of the character of business administration than had been current. The administrator, he said, must "look all around things before interpreting them" and be aware that administration takes place in a context of face-to-face human relations and of conditions imposed by the broader social situation. Thus he came to develop a new way of teaching businessmen about their work and to encourage a field of research that has subsequently had an important influence on the growth of the social sciences generally."

"The search for original cases and the "superior" rules that would emerge from them spread far outside legal practice. Wallace Donham, dean of the Harvard Business School from 1919 to 1942, was trained at the law school in the heady days of the case system's early and enthusiastic reception. Where law and business parted ways was in the contingent matter of the availability of ready- made cases — law faculty simply reached for their shelves, while professors of business needed to create a new literary species — the business case book."

"To Donham, the case study stood squarely in the legal and cultural tradition of Anglo-American thought. Unlike French or Spanish law. Donham emphasized, English law was grounded on the doctrine of stare decisis, in which the written case decisions of the past shape, and instantiate, the law. Just as the recording of cases allowed English common law to break the arbitrariness of local law. Donham argued in 1925, business needed to universalize its procedures by itself adopting the case system. The chaos of local law that ruled in England before the common law. Donham contended, "is exactly the same situation that we have [in the world of business] where practically every large corporation is tightly hound by traditions which are precedents in its particular narrow field and narrow held only The recording of decisions from industry to industry [enables] us to start from facts and draw inferences from those facts; [it] will introduce principle... in the field of business to such an extent that it will control executive action in the field where executive action is haphazard or unprincipled or bound by narrow, instead of broad precedent and decision" ( W. Donham, transcript of talk to the Association of Coll. School of Business Committee Reports and Other Literature, 5-7 May 1925. Harvard Business School, box 17, folder 10. 62)."

"Mary Parker Follett was a prominent business philosopher of the period, who agreed with Sheldon about the need to emphasize human factors in management, but placing greater stress on the need to develop a science of cooperation. According to Follett, what she called her 'Law of the Situation' could be a means for bridging the gap between an ideal of scientific management and the unilateral position that it seemed to involve in practice. In effect she was proposing the same collaboration between leaders and subordinates that was usually to be found between leaders of the same rank."

"Miss Follett was not a “business woman,” in the sense of having actually managed any sort of business. But her lucid and illuminating ideas about organization were of priceless interest and value to the many industrial leaders and students of human relations problems, organization and politics with whom she came in contact. Her conceptions were in advance of her time. They are still in advance of current thinking. But they are a gold-mine of suggestion for anyone who is interested in the problems of establishing and maintaining human co-operation in the conduct of an enterprise. They have the added advantage of being presented with remarkable simplicity and clarity."

"Briefly stated, the Follett philosophy is that any enduring society, any continuously productive industrial organization, must be grounded upon a recognition of the motivating desires of the individual and of the group. Consistently, Miss Follett sought to force home a realization of the fact that the democratic way of life, implemented by intelligent organization and administration of government and of industry, is to work toward an honest integration of all points of view, to the end that every individuality may be mobilized and made to count both as a person and as an effective part of his group and of society as a whole."

"Follett was always preoccupied with the dynamic view of organization, with the thing in process, so to speak. Authority, Power, Leadership, the Giving of Orders, Conflict, Conciliation — all her keywords are active words. There is a static or structural approach to the problem of organization which has its value; but those who are most convinced of the importance of such structural analysis would be the first to admit that it is only a step on the journey, an instrument of thought; it is not and cannot be complete in itself; it is only the anatomy of the subject. As in medicine, the study of anatomy may be an essential discipline, but it is in the physiology and psychology of the individual patient that that discipline finds its working justification."

"Fifteen years ago Follett expounded a philosophy of management that even to-day is a generation ahead of practice, and one can find therein a significant parallel with the pioneering work of Frederick W.Taylor. In his teaching, the adoption of a new philosophy of management—“the mental revolution” as he put it—was a fundamental part of his new technique; but, as knowledge of his methods spread, the practice of scientific management was allowed to develop and expand shorn from its underlying philosophy. Mary Follett was not concerned merely with the technique, the methods of management; her contacts with business and its leaders gave her ample chance of seeing the new technique emerge and grow. But with deeper insight she could see what too many business leaders missed, that the philosophy of management and its psychological foundations were still unheeded, perhaps even unknown. In this lies the greatness of her contribution. It is as modern and applicable to-day as it was when first she spoke; it will be as modern and applicable tomorrow."

"Ethics could teach us only those purposes and ideals. If the teachers seeks insight into the means by which the aim can be reached, into the facts by which the child can be molded, his way must lead from ethics to psychology. (...) Water flows downhill, anyhow, but to bring the water uphill hydraulic forces are indeed necessary. To overcome nature and instead to prepare for a life of ideals, to inhibit personal desires and instead to learn to serve the higher purposes indeed demands most serious and most systematic efforts. It is the teachers' task to make these efforts with all his best knowledge of mind and body, of social and of cultural values."

"Our aim is to sketch the outlines of a new science which is to intermediate between the modern laboratory psychology and the problems of economics: the psychological experiment is systematically to be placed at the service of commerce and industry. So far we have only scattered beginnings of the new doctrine, only tentative efforts and disconnected attempts which have started, sometimes in economic, and sometimes in psychological, quarters. The time when an exact psychology of business life will be presented as a closed and perfected system lies very far distant. But the earlier the attention of wider circles is directed to its beginnings and to the importance and bearings of its tasks, the quicker and the more sound will be the development of this young science. What is most needed to-day at the beginning of the new movement are clear, concrete illustrations which demonstrate the possibilities of the new method. In the following pages, accordingly, it will be my aim to analyze the results of experiments which have actually been carried out, experiments belonging to many different spheres of economic life. But these detached experiments ought always at least to point to a connected whole; the single experiments will, therefore, always need a general discussion of the principles as a background. In the interest of such a wider perspective we may at first enter into some preparatory questions of theory. They may serve as an introduction which is to lead us to the actual economic life and the present achievements of experimental psychology"

"The knowledge of nature and the mastery of nature have always belonged together."

"Applied psychology can, therefore, speak the language of an exact science ill its own field, independent of economic opinions and debatable partisan interests."

"The inner labor, the inner values, and the inner difficulties and frictions are too often unknown to those who decide for a vocation, and they are unable to correlate those essential factors of the life-calling with all that nature by inheritance, and society by surroundings and training, have planted and developed in their minds."

"The theorists of scientific management seem to think that the most subtle methods are indispensable for physical measurements, but for psychological inquiry nothing but a kind of intuition is necessary."

"Only the subtle psychological individual analysis can overcome the superficial prejudices of group psychology."

"WE have placed our psychotechnical interest at the service of economic tasks... The purpose before us was to find for every economic occupation the best-fitted personality, both in the interest of economic success and in the interest of personal development."

"If they (the ) had not been (aware of human problems involved) — and Taylor either failed to encounter, or to recognize the significance of, the early work in industrial psychology contributed by Walter Dill Scott, Hugo Munsterberg, and others — there was the amazing fact that one of them, Frank Bunker Gilbreth, happened to fall in love with a girl who was a psychologist by education, a teacher by profession, and a mother by vocation. I know of no occurrence in the whole history of human thought more worthy of the epithet "providential" than that fact. Here were three engineers — Taylor, Gantt, and Gilbreth — struggling to realize the wider implications of their technique, in travail with a "mental revolution," their great danger that they might not appreciate the difference between applying scientific thinking to material things and to human beings, and one of them married Lillian Moller, a woman who by training, by instinct, and by experience was deeply aware of human beings, the perfect mental complement in the work to which they had set their hands."

"1913: Hugo Münsterberg’s Psychology and Industrial Efficiency — presents a scientific study of human behavior in the work environment; analysis of individual differences."

"Munsterberg's Congress program seems to me to be sheer humbug."

"An efficient and contented employee has a positive money value to any employer. To hold him and keep him efficient, his personal comfort and needs should be considered in every way not detrimental to the company's interests."

"Mental attitude is more important than mental capacity"

"Advertising is a serious thing with the businessman of to-day. It is estimated that the businessmen of the United States are spending $600,000,- a year in printed forms of advertising. Furthermore one authority claims that seventy-five per cent, of all this is unprofitable. Every business man is anxious that no part of these unprofitable advertisements shall fall to his lot. The enormity of the expense, the keenness of competition, and the great liability of failure has awakened the advertising world to the pressing need for some basis of assurance in its hazardous undertakings."

"Man has been called the reasoning animal but he could with greater truthfulness be called the creature of suggestion. He is reasonable, but he is to a greater extent suggestible."

"The senses (the organs of sight, sound, taste, smell, temperature, and touch) are the guardians of the body, and whatever appears good to these sentinels is instantly desired, and ordinarily such things tend to the preservation and furtherance of the welfare of the body, but we choose them simply because they appear pleasing and not for ulterior ends."

"Some time ago a tailor in Chicago was conducting a vigorous advertising campaign. I did not suppose that his advertising was having any influence upon me. Some months after the advertising had begun I went into the tailor's shop and ordered a suit. While in the shop I happened to fall into conversation with the proprietor and he asked me if a friend had recommended him to me. I replied that such was the case. Thereupon I tried to recall who the friend was and finally came to the conclusion that this shop had never been recommended to me at all. I had seen his advertisements for months and from them had formed an idea of the shop. Later, I forgot where I had received my information and assumed that I had received it from a friend who patronized the shop. I discovered that all I knew of the shop I had learned from advertisements and I doubt very much whether I ever read any of the advertisements further than the display type. Doubtless many other customers would have given the same reply even though, as in my case, no friend had spoken to them concerning the shop."

"One young lady asserted that she had never looked at any of the cards in the cars in which she had been riding for years. When questioned further, it appeared that she knew by heart almost every advertisement appearing on the line (Chicago and Evanston line), and that the goods advertised had won her highest esteem. She was not aware of the fact that she had been studying the advertisements, and flatly resented the suggestion that she had been influenced by them. Some of the goods advertised were known to her only by these advertisements, yet she supposed that they had nothing to do with her esteem of the goods. She supposed that she had always known them, that they were used in her home, or that they had been recommended to her. She did not remember when she had first heard of them."

"Success or failure in business is caused more by mental attitude even than by mental capacity."

"During the last few decades the business world has brought about a complete revolution in the methods of manufacturing, distributing and selling goods. That the revolution is beneficial and important no businessman will deny. But however important'these things? are, the business man realizes that his most pressing problem is methods of influencing and handling men rather than things:"

"Goods offered as means of gaining social prestige make their appeals to one of the most profound of the human instincts. In monarchies this instinct is regarded as a mere tendency to imitate royalty. In America, with no such excuse, the eagerness with which we attempt to secure merchandise used by the "swell and swagger" is absurd, but it makes it possible for the advertiser to secure more responses than might otherwise be possible.. As an illustration of this fact we need but to look at the successful advertisements of clothing, automobiles, etc. The quality of the goods themselves does not seem to be so important as the apparent prestige given by the possession of the goods."

"The man with the proper imagination is able to conceive of any commodity in such a way that it becomes an object of emotion to him and to those to whom he imparts his picture, and hence creates desire rather than a mere feeling of ought."

"The selecting of men is one of the important functions in business and yet one that has not received much scientific attention. I feel sure that the time is ripe for action for two reasons. The psychologists have during the past few years made distinct advance in Mental Tests. My proposal is this: You get from your Class A members data as to their methods of selecting men. Any statements as to actual experience and as to principles or methods will be very valuable. I would make a study of these data and would have some of the men from our School of Commerce go over them with me. We would try to criticize them constructively. Perhaps we could make some suggestions that would be worth while. We would try to indicate the good points used and thus be of assistance to all members of the organization."

"There was a dearth of psychologists familiar with business operations. I finally persuaded Northwestern University to loan us Walter Dill Scott, who took up his duties in Pittsburgh on June 1, 1916, as the first American professor of applied psychology. His personal leadership coupled with his scientific preoccupations and his shrewd insight into business affairs were invaluable in this movement to study live problems in management by the methods of psychology."

"If they (the ) had not been (aware of human problems involved) — and Taylor either failed to encounter, or to recognize the significance of, the early work in industrial psychology contributed by Walter Dill Scott, Hugo Munsterberg, and others — there was the amazing fact that one of them, Frank Bunker Gilbreth, happened to fall in love with a girl who was a psychologist by education, a teacher by profession, and a mother by vocation. I know of no occurrence in the whole history of human thought more worthy of the epithet "providential" than that fact. Here were three engineers — Taylor, Gantt, and Gilbreth — struggling to realize the wider implications of their technique, in travail with a "mental revolution," their great danger that they might not appreciate the difference between applying scientific thinking to material things and to human beings, and one of them married Lillian Moller, a woman who by training, by instinct, and by experience was deeply aware of human beings, the perfect mental complement in the work to which they had set their hands."

"Organization theory is the branch of sociology that studies organizations as distinct units in society. The organizations examined range from sole proprietorships, hospitals and community-based non-profit organizations to vast global corporations. The field’s domain includes questions of how organizations are structured, how they are linked to other organizations, and how these structures and linkages change over time. Although it has roots in administrative theories, Weber’s theory of bureaucracy, the theory of the firm in microeconomics, and Coase’s theory of firm boundaries, organization theory as a distinct domain of sociology can be traced to the late 1950s and particularly to the work of the Carnegie School. In addition to sociology, organization theory draws on theory in economics, political science and psychology, and the range of questions addressed reflects this disciplinary diversity. While early work focused on specific questions about organizations per se – for instance, why hierarchy is so common, or how businesses set prices – later work increasingly studied organizations and their environments, and ultimately organizations as building blocks of society. Organization theory can thus be seen as a family of mechanisms for analysing social outcomes."

"This study compares the agency theory of the firm with interorganizational theory in examining the factors associated with the adoption of the poison pill-a takeover defense issued by a firm's board of directors that can dramatically increase the cost that a hostile buyer would have to pay to acquire the firm-by a panel of Fortune 500 firms between July 1984 and August 1989. The pill's rapid spread is traced to a combination of ownership structure and other firm-level factors and an interlock network diffusion process. The results support a social structural perspective on the market for corporate control in which the interlock network provides a social context favoring continued managerial dominance. The findings are also more consistent with models of cohesion rather than structural equivalence as the social structural mechanism responsible for diffusion."

"Davis’s research is broadly concerned with the effects of finance on society. Recent writings examine how ideas about corporate social responsibility have evolved to meet changes in the structures and geographic footprint of multinational corporations; whether "shareholder capitalism" is still a viable model for economic development; how income inequality in an economy is related to corporate size and structure; why theories about organizations do (or do not) progress; how architecture shapes social networks and innovation in organizations; why stock markets spread to some countries and not others; and whether there exist viable organizational alternatives to shareholder-owned corporations in the United States."

"In a life-long partnership with his wife Jessie, James Grier Miller contributed substantially to the development of and to the integration of disciplines through general systems theory, remaining actively engaged in these areas throughout his working life. From his early work on the human brain in the 1940s, Miller worked for over 60 years within influential circles to foster a wide range of new endeavours. In 1949, as Chair of the Psychology Department at the University of Chicago, he founded the new field of behavioural science, devoted to the theoretical integration of the biological and social sciences, through the establishment of the influential Committee on Behavioral Science. In 1955, he got funding from the State of Michigan to set up the Mental Health Research Institute at the University of Michigan; and in 1967, he became President of the University Louisville where he established a Systems Science Institute. His comprehensive integration of the sciences, in Living Systems (1978), remains core to the study of Living Systems and many other fields of research and practice within the systems community."

"We need fewer ideologues and more pragmatists."

"We have a tendency to credit our grit and our character for our successes and blame the markets for our failures. And the reality is, market dynamics trump individual performance."

"When we react faster than thought, we don’t react thoughtfully."

"Looking at the business corporation through something other than the eyes of its equity holders has inspired great efforts to translate that intuitive appeal into a theory... The promise of stakeholder theory to offer a cogent alternative to the economic account of the firm, however, is impeded by a set of assumptions designed to accommodate economic considerations."

"A preoccupation with instrumental consequences renders a theory that accommodates economic premises yet sidesteps the underlying tensions between the social and economic imperatives that confront organisations. Such a theory risks omitting the pressing descriptive and normative questions raised by these tensions, which, when explored, might hold great promise for a new theory and even for addressing practical management challenges."