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April 10, 2026
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"Almost every organization... exhibits two faces — a smiling face which it turns toward its members and a frowning face which it turns to the world outside."
"The most important thing about organizations is that, though they are tools, each nevertheless has a life of its own."
"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."
"Organization is the arrangement of personnel for facilitating the accomplishment of some agreed purpose through the allocation of functions and responsibilities."
"Organization is as old as human society itself."
"Through all the years that I have been in business I have never yet found our business bad as a result of any outside force. It has always been due to some defect in our own company, and whenever we located and repaired that defect our business became good again - regardless of what anyone else might be doing. And it will always be found that this country has nationally bad business when business men are drifting, and that business is good when men take hold of their own affairs, put leadership into them, and push forward in spite of obstacles. Only disaster can result when the fundamental principles of business are disregarded and what looks like the easiest way is taken. These fundamentals, as I see them, are:"
"Tektology must clarify the modes of organization that are perceived to exist in nature and human activity; then it must generalize and systematize these modes; further it must explain them, that is, propose abstract schemes of their tendencies and laws; finally, based on these schemes, determine the direction of organizational methods and their role in the universal process. This general plan is similar to the plan of any natural science; but the objective of tektology is basically different. Tektology deals with organizational experiences not of this or that specialized field, but of all these fields together. In other words, tektology embraces the subject matter of all the other sciences and of all the human experience giving rise to these sciences, but only from the aspect of method, that is, it is interested only in the modes of organization of this subject matter."
"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."
"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."
"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 test of any scheme of factory organization is the extent to which it creates and fosters the atmosphere and spirit of cooperation and good-will, without in any sense lessening the loyalty of the worker to his own class and its organizations."
"The supreme principle [in Industrial Organization ] has been the belief that business efficiency and the welfare of the employees are but different sides of the same problem. Character is an economic asset ; and business efficiency depends not merely on the physical condition of employees, but on their general attitude and feeling towards the employer."
"Early British economists held that the application of the principle of division of labor was the basis of manufacture.... Charles Babbage, believed ... in [an] "Economy of Machinery and Manufacture." It appears, however, that another principle is the basic one in the rise of industry. It is the transference of skill. The transference of skill from the inventor or designer to the power-driven mechanism brought about the industrial revolution from handicraft to manufacture. It will be necessary to refer to this principle frequently throughout this report, in showing the meaning and position of management in industry."
"Modern industry is stated by some writers to have begun in 1738 when brought out a . Others place the period as between 1750 and 1800, when the and steam engine came into being. It was marked by the development of labor-saving machinery. It was brought about by the change from handicraft to manufacture."
"According to Taylor, the principles of Efficiency are:"
"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."
"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."
"In the railroad operation of this country an economy of $1,000,000 a day is possible."
"The administrative function has many duties. It has to foresee and make preparations to meet the financial, commercial, and technical conditions under which the concern must be started and run. It deals with the organization, selection, and management of the staff. It is the means by which the various parts of the undertaking communicate with the outside world, etc. Although this list is incomplete, it gives us an idea of the importance of the administrative function. The sole fact that it is in charge of the staff makes it in most cases the predominant function, for we all know that, even if a firm has perfect machinery and manufacturing processes, it is doomed to failure if it is run by an inefficient staff."
"Nowadays, the phenomenon (of division of labor) has developed so generally it is obvious to all. We need have no further illusions about the tendencies of modern industry; it advances steadily towards powerful machines, towards great concentrations of forces and capital, and consequently to the extreme division of labor. Occupations are infinitely separated and specialized, not only inside the factories, but each product is itself a specialty dependent upon others. Adam Smith and John Stuart Mill still hoped that agriculture, at least, would be an exception to the rule, and they saw it as the last resort of small-scale industry. Although one must be careful not to generalize unduly in such matters, nevertheless it is hard to deny today that the principal branches of the agricultural industry are steadily being drawn into the general movement. Finally, business itself is ingeniously following and reflecting in all its shadings the infinite diversity of industrial enterprises; and, while this evolution is realizing itself with unpremeditated spontaneity, the economists, examining its causes and appreciating its results, far from condemning or opposing it, uphold it as necessary. They see in it the supreme law of human societies and the condition of their progress."
"The directing motive, the end and aim of capitalist production, is to extract the greatest possible amount of surplus value, and consequently to exploit labor-power to the greatest possible extent."
"In the social production of their life, men enter into definite relations that are indispensable and independent of their will; these relations of production correspond to a definite stage of development of their material forces of production. The sum total of these constitutes the economic structure of society — the real foundation, on which rises a legal and political superstructure and to which correspond definite forms of The mode of production of material life determines the social, political and intellectual life process in general."
"# 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."
"# 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."
"# Great promptness in the report of all derelictions of duty, that evils may be at once corrected."
"# The means of knowing whether such responsibilities are faithfully executed."
"# Sufficient power conferred to enable the same to be fully carried out, that such responsibilities may be real in their character."
"# A proper division of responsibilities."
"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... A few general principles, however, may be regarded as settled and necessary in its formation, amongst which are:"
"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."
"Man experiences a multitude of needs, on whose satisfaction his happiness depends, and whose non-satisfaction entails suffering. Alone and isolated, he could only provide in an incomplete, insufficient manner for these incessant needs. The instinct of sociability brings him together with similar persons, and drives him into communication with them. Therefore, impelled by the self-interest of the individuals thus brought together, a certain division of labor is established, necessarily followed by exchanges. In brief, we see an organization emerge, by means of which man can more completely satisfy his needs than he could living in isolation. This natural organization is called society. The object of society is therefore the most complete satisfaction of man's needs. The division of labor and exchange are the means by which this is accomplished."
"The establishment of "The Times" newspaper is an example, on a large scale, of a manufactory in which the division of labour, both mental and bodily, is admirably illustrated, and in which also the effect of domestic economy is well exemplified. It is scarcely imagined, by the thousands who read that paper in various quarters of the globe, what a scene of organized activity the factory presents during the whole night, or what a quantity of talent and mechanical skill is put in action for their amusement and information."
"It appears to me, that any explanation of the cheapness of manufactured articles, as consequent upon the division of labour, would be incomplete if the following principle were omitted to be stated."
"This great increase of the quantity of work which, in consequence of the division of labour, the same number of people are capable of performing, is owing to three different circumstances; first, to the increase of dexterity in every particular workman; secondly, to the saving of the time which is commonly lost in passing from one species of work to another; and lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many."
"Management of many is the same as management of few. It is a matter of organization."
"The bourgeois … is tolerant. His love for people as they are stems from his hatred of what they might be."
"In the specialist culture of our bureaucratic-industrial age, the reliance on experts to interpret and evaluate inner life is in itself the most malignant and invasive reach of division of labor."
"Never before have people been so infantalized, made so dependent on the machine for everything; as the earth rapidly approaches its extinction due to technology, our souls are shrunk and flattened by its pervasive rule. Any sense of wholeness and freedom can only return by the undoing of the massive division of labour at the heart of technological progress. This is the liberatory project in all its depth."
"Just as the various trades are most highly developed in large cities, in the same way food at the palace is prepared in a far superior manner. In small towns the same man makes couches, doors, plows and tables, and often he even builds houses, and still he is thankful if only he can find enough work to support himself. And it is impossible for a man of many trades to do all of them well. In large cities, however, because many make demands on each trade, one alone is enough to support a man, and often less than one: for instance one man makes shoes for men, another for women, there are places even where one man earns a living just by mending shoes, another by cutting them out, another just by sewing the uppers together, while there is another who performs none of these operations but assembles the parts, Of necessity, he who pursues a very specialised task will do it best."
"Where Adam Smith and David Ricardo had envisaged a growing worldwide division of labor, they had thought that each country would freely select the commodities it was most qualified to produce, and that each would exchange its optimal commodity for the optimal commodity of others. Thus in Ricardo's example, Britain would send Portugal its textiles, while Britons would consume Portuguese wines in turn. What his vision of free commodity exchange omits are the constraints that governed the selection of particular commodities, and the political and military sanctions used to ensure the continuation of quiet asymmetrical exchanges that benefited one party while diminishing the assets of another."
"Slaving gave rise to a division of labor in which the business of capture, maintenance, and overland transport of slaves was in African hands, while Europeans took charge of transoceanic transport, the "seasoning" or breaking in of slaves, and their eventual distribution."
"The number 2 thought of by one man cannot be added to the number 2 thought of by another man so as to make up the number 4."
"For the Confucian, the specialistic expert could not be raised to truly positive dignity, no mater what his social usefulness. The decisive factor was that the "cultured man" (gentleman) was "not a tool"; that is, in his adjustment to the world and in his self-perfection he was an end unto himself, not a means for any functional end. This core of Confucian ethics rejected professional specialization, modern expert bureaucracy, and special training; above all, it rejected training in economics for the pursuit of profit."
"The Confucian aspirant to office, stemming from the old tradition, could hardly help viewing a specialized, professional training of European stamp as anything but a conditioning in the dirtiest Philistinism. ... The fundamental assertion, ‘a cultured man is not a tool’ meant that he was an end in himself and not just a means for a specified useful purpose."
"Limitation to specialized work, with a renunciation of the Faustian universality of man which it involves, is a condition of any valuable work in the modern world."
"Success for a woman means absolute surrender, in whatever direction. Whether she paints a picture, or loves a man, there is no division of labor possible in her economy. To the attainment of any end worth living for, a symmetrical sacrifice of her nature is compulsory upon her."
"[A world-system is] a system that is a world and which can be, most often has been, located in an area less than the entire globe. World-systems analysis argues that the units of social reality within which we operate, whose rules constrain us, are for the most part such world-systems (other than the now extinct, small mini-systems that once existed on the earth). World-system analysis argues that there have been thus far only two varieties of world-systems: world-economies and world empires. A world-empire (examples, the Roman Empire, Han China) are large bureaucratic structures with a single political center and an axial division of labor, but multiple cultures. A world-economy is a large axial division of labor with multiple political centers and multiple cultures."
"I believe in the virtues of professional division of labor, however, and I am troubled, therefore, when economists adopt the role and the tactics of the prophet or the politician, especially when there is any ground for suspicion that what is involved is false prophecy."
"The movement of people and ideas is ... more than useful; it is sacrosanct. It forms part of the process by which the whole human race becomes both one and diverse, and makes itself more godlike, by affirming in the individual as well as in the species, its preeminence over the particular social and cultural worlds that it builds and inhabits. Both the movement of people and the movement of ideas can unsettle and frighten us, driving us back into ourselves. They can also inspire us to reimagine and to remake our interests, our ideals, and even our identities, by beginning to detach them from the settings with which we habitually associate them. Each of them is therefore an invitation to open ourselves to the new, in a world in which every man and woman has a better chance to become the original that he imagines himself to be."
"The proposition that markets drive economic efficiency is central to much of economics. Adam Smith illustrated that the “invisible hand” of the market drives efficient allocation of resources in a system of division of labor. Friedrich Hayek illustrated the central importance of the price system as an information processing mechanism more powerful than any centrally planned system could ever be. Kenneth Arrow and Gerard Debreu illustrated that complete and perfect markets deliver a Pareto-efficient equilibrium, in which no one person can be made better off without making someone else worse off. And the development of the efficient- market and rational- expectations hypotheses suggested that financial markets are in fact efficient, and that the conditions required for efficiency and for rational and stable equilibria apply even in contracts between the present and the future, which financial markets provide."