Business Theorists From The United States

"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."

"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."

"We need fewer ideologues and more pragmatists."

"When we react faster than thought, we don’t react thoughtfully."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"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."

"Mental attitude is more important than mental capacity"

"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."

"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:"

"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."

"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."

"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."

"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."

"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."

"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 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."

"Success or failure in business is caused more by mental attitude even than by mental capacity."

"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."

"1913: Hugo Münsterberg’s Psychology and Industrial Efficiency — presents a scientific study of human behavior in the work environment; analysis of individual differences."

"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."

"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."

"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 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."

"Munsterberg's Congress program seems to me to be sheer humbug."

"[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."

"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 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."

"Management is the development of people and not the direction of things ... Management is personnel administration."

"The highest standard for each individual is that which his conscience tells him is best."

"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."

"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."

"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."

"Achievements include first to fully classify human work into categories, a typology which facilities diagnosis and correction of organizational problems."

"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."

"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."