Business theorists from the United States

2119 quotes found

"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."

- Jack Welch

0 likesBusiness theorists from the United StatesChemical engineers from the United StatesColumnists from the United StatesNon-fiction authors from the United StatesPhilanthropists from the United States
"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."

- Tom Peters

0 likesNon-fiction authors from the United StatesOrators from the United StatesBusiness theorists from the United StatesPeople from Baltimore
"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."

- Russell L. Ackoff

0 likesAcademics from the United StatesPeople from PhiladelphiaBusiness theorists from the United StatesSystems scientists
"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."

- C. West Churchman

0 likesAcademics from the United StatesPhilosophers from the United StatesBusiness theorists from the United StatesMathematicians from the United StatesSystems scientists
"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."

- C. West Churchman

0 likesAcademics from the United StatesPhilosophers from the United StatesBusiness theorists from the United StatesMathematicians from the United StatesSystems scientists
"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."

- Frederick Winslow Taylor

0 likesPeople from PhiladelphiaBusinesspeople from the United StatesBusiness theorists from the United StatesMechanical engineersEngineers from the United States
"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."

- Frederick Winslow Taylor

0 likesPeople from PhiladelphiaBusinesspeople from the United StatesBusiness theorists from the United StatesMechanical engineersEngineers from the United States
"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."

- Frederick Winslow Taylor

0 likesPeople from PhiladelphiaBusinesspeople from the United StatesBusiness theorists from the United StatesMechanical engineersEngineers from the United States
"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.""

- Frederick Winslow Taylor

0 likesPeople from PhiladelphiaBusinesspeople from the United StatesBusiness theorists from the United StatesMechanical engineersEngineers from the United States
"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."

- Clinton Edgar Woods

0 likesMechanical engineersInventorsBusiness theorists from the United StatesNon-fiction authors from the United StatesEngineers from Massachusetts
"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

0 likesMechanical engineersInventorsBusiness theorists from the United StatesNon-fiction authors from the United StatesEngineers from Massachusetts
"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."

- Frank Bunker Gilbreth

0 likesPeople from MaineIndustrial engineersBusiness theorists from the United StatesEngineers from the United States
"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."

- Alfred D. Chandler, Jr.

0 likesPeople from DelawareBusiness theorists from the United StatesPulitzer Prize winnersHarvard University alumniHarvard University faculty
"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?"

- Simon Ramo

0 likesPhysicists from the United StatesBusiness theorists from the United StatesSystems engineersPeople from UtahPeople from Salt Lake City
"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."

- Mary Parker Follett

0 likesBusiness theorists from the United StatesSociologists from the United StatesWomen academics from the United StatesPeople from BostonWomen from the United States
"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."

- Richard L. Daft

0 likesBusiness theorists from the United StatesPeople from Nebraska
"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."

- James D. Mooney

0 likesBusinesspeople from the United StatesBusiness theorists from the United StatesPeople from Cleveland
"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."

- Henry R. Towne

0 likesPeople from PhiladelphiaBusinesspeople from the United StatesBusiness theorists from the United StatesEngineers from the United States
"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."

- Luther H. Gulick

0 likesAcademics from the United StatesPolitical scientists from the United StatesBusiness theorists from the United StatesCentenariansPeople from Osaka
"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."

- Joseph M. Juran

0 likesPeople from RomaniaImmigrants to the United StatesEngineers from the United StatesBusiness theorists from the United StatesJews from the United States
"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."

- Joseph L. Bower

0 likesAcademics from the United StatesBusiness theorists from the United States
"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."

- Alfred P. Sloan

0 likesMechanical engineersBusinesspeople from the United StatesBusiness theorists from the United StatesPhilanthropists from the United StatesPeople from New Haven
"“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."

- William H. Starbuck

0 likesAcademics from the United StatesPsychologists from the United StatesBusiness theorists from the United StatesPeople from IndianaHarvard University alumni
"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."

- Kathleen M. Eisenhardt

0 likesWomen academics from the United StatesBusiness theorists from the United StatesFellows of the British AcademyWomen from the United StatesStanford University faculty
"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)."

- Wallace Brett Donham

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"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"

- Hugo Münsterberg

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