Sociologists From The United States

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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?"

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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 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."

"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."

"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."

"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."

"[Institutional entrepreneurs must] size up the condition of the organizational field and figure out what kinds of action make sense."

"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."

"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 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."