Organizational Theory

"It is an ancient belief, going back to classical antiquity, that specialization of any kind is illiberal in a freeman. A man willing to bury himself in the details of some small endeavor has been considered lost to these larger considerations which must occupy the mind of the ruler."

"The last of Smith’s regrettable failures is one for which he is overwhelmingly famous – the division of labor. How can it be that the famous opening chapters of his book, and the pin factory he gave immortality, can be considered a failure? Are they not cited as often as any passages in all economics? Indeed, over the generations they are. The failure is different: almost no one used or now uses theory of division of labor, for the excellent reason that there is scarcely such a theory. … there is no standard, operable theory to describe what Smith argued to be the mainspring of economic progress. Smith gave the division of labor an immensely convincing presentation – it seems to me as persuasive a case for the power of specialization today as it appeared to Smith. Yet there is no evidence, so far as I know, of any serious advance in theory of the subject since his time, and specialization is not an integral part of the modern theory of production, which may well be an explanation for the fact that the modern theory of economies of scale is little more than a set of alternative possibilities."

"No man can be a pure specialist without being in the strict sense an idiot."

"If a man is trained, purely and simply, to be expert and contented in a particular task he will not innovate; Freud would have remained an anatomist, Marx a philosopher, Darwin a field-naturalist."

"The idea of expertise in any one area of the humanities, with its subsequent phenomenon of faculty recruitment by time framed "slots," was always mistaken. It was inspired, in this masculine pioneer country that has never taken the arts seriously, by nervous emulation of the sciences, where one can indeed deeply and profitably specialize in moths, ferns, or igneous rocks. But there is no true expertise in the humanities without knowing all of the humanities."

"International specialization and division of labor requires institutions and organizations to safeguard property rights across international boundaries so that capital markets as well as other kinds of exchange can take place with credible commitment on the part of the players."

"Specialization in this world is rudimentary and self-sufficiency characterizes most individual households"

"... I think the right strategy for the mass of humanity is to specialize. Nobody wants to go a doctor who is half proctologist and half dentist. ... The ordinary way to succeed is to narrowly specialize."

"A second, related assumption of modern progress-philosophy is that intellectual production functions in essentially the same way as economic production: the progress of both results from “teamwork,” from the practice of the division of labor or specialization within a group. And just as the essential precondition of the economic division of labor is exchange, so the precondition of intellectual specialization is the efficient exchange of knowledge—through publication."

"Just as it is inconceivable that human society would have evolved to its present state without language, it is inconceivable that we would have gotten to this point without specialization and trade. Moreover, in order for society to progress further, patterns of specialization and trade must continue to evolve."

"The underlying principle of specialization is division of labor; but the term division of labor has become associated with the individual worker, whereas specialization is, in general, far reaching in its effects, and influences industrial enterprises of all kinds."

"A human being should be able to change a diaper, plan an invasion, butcher a hog, conn a ship, design a building, write a sonnet, balance accounts, build a wall, set a bone, comfort the dying, take orders, give orders, cooperate, act alone, solve equations, analyse a new problem, pitch manure, program a computer, cook a tasty meal, fight efficiently, die gallantly. Specialization is for insects."

"Previously men could be divided into the learned and the unlearned, … But your specialist cannot be brought in under either of these categories … We shall have to say that he is a learned ignoramus, which is a very serious matter, as it implies that he is a person who is ignorant, not in the fashion of the ignorant man, but with all the petulance of one who is learned."

"The inevitable counterpart of specialization is organization. This is what brings the work of specialists to a coherent result. If there are many specialists, this coordination will be a major task. So complex, indeed, will be the job of organizing specialists that there will be specialists on organization and organizations of specialists on organization. More perhaps than machinery, massive and complex business organizations are the tangible manifestation of advanced technology."

"The youth of humanity all around our planet are intuitively revolting from all sovereignties and political ideologies. The youth of Earth are moving intuitively toward an utterly classless, raceless, omnicooperative, omniworld humanity. Children freed of the ignorantly founded educational traditions and exposed only to their spontaneously summoned, computer-stored and -distributed outflow of reliable-opinion-purged, experimentally verified data, shall indeed lead society to its happy egress from all misinformedly conceived, fearfully and legally imposed, and physically enforced customs of yesterday. They can lead all humanity into omnisuccessful survival as well as entrance into an utterly new era of human experience in an as-yet and ever-will-be fundamentally mysterious Universe."

"Lack of knowledge concerning all the factors and the failure to include them in our integral imposes false conclusions."

"We are in an age that assumes the narrowing trends of specialization to be logical, natural, and desirable. Consequently, society expects all earnestly responsible communication to be crisply brief. . . . In the meantime, humanity has been deprived of comprehensive understanding. Specialization has bred feelings of isolation, futility, and confusion in individuals. It has also resulted in the individual's leaving responsibility for thinking and social action to others. Specialization breeds biases that ultimately aggregate as international and ideological discord, which, in turn, leads to war."

"[O]ur failures are a consequence of many factors, but possibly one of the most important is the fact that society operates on the theory that specialization is the key to success, not realizing that specialization precludes comprehensive thinking. ...All universities have been progressively organized for ever finer specialization. ...Yet ...a little child ...is interested in everything and spontaneously apprehends, comprehends, and co-ordinates an ever-expanding inventory of experiences. ...Nothing seems to be more prominent about human life than its wanting to understand all and put everything together. One of humanity's prime drives is to understand and be understood. ...We had assumed the child to be an empty brain receptacle into which we could inject ...wisdom until ...educated ...In the light of modern behavioral science ...that was not a good working assumption. ...[W]hy is it that we have disregarded all children's significantly spontaneous and comprehensive curiosity ...We do not have to go back very far in history for the answer."

"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."

"This is an era of specialists, each of whom sees his own problem and is unaware of or intolerant of the larger frame into which it fits."

"The market system, as it gets more specialized, will give more and more to the top people. If we were back in 1800 and we were all working on farms, you'd probably be worth more a little more than I am, because you'd work harder and be stronger. But the top person working at a farm would be worth one-and-a-half to maybe two times what the bottom person was. But as we get more and more specialized, the guy that is the best at knocking out some other guy who weighs two hundred pounds is worth ... thirty million dollars a fight. Now, he's worth thirty million dollars a fight because someone invented television and cablevision. As we get more specialized, the rich will get even richer."

"The first, and best known, hazard of the specialist system is that it produces specialists—people who are elaborately and expensively trained to do one thing. We get into absurdity very quickly here. There are, for instance, educators who have nothing to teach, communicators who have nothing to say, medical doctors skilled at expensive cures for diseases that they have no skill, and no interest, in preventing. More common, and more damaging, are the inventors, manufacturers, and salesmen of devices who have no concern for the possible effects of those devices. Specialization is thus seen to be a way of institutionalizing, justifying, and paying highly for a calamitous disintegration and scattering-out of the various functions of character: workmanship, care, conscience, responsibility."

"The disease of the modern character is specialization. Looked at from the standpoint of the social system, the aim of specialization may seem desirable enough. The aim is to see that the responsibilities of government, law, medicine, engineering, agriculture, education, etc., are given into the hands of the most skilled, best prepared people. The difficulties do not appear until we look at specialization from the opposite standpoint—that of individual persons. We then begin to see the grotesquery—indeed, the impossibility—of an idea of community wholeness that divorces itself from any idea of personal wholeness."

"Everyone who achieves strives for totality, and the value of his achievement lies in that totality—that is, in the fact that the whole, undivided nature of a human being should be expressed in his achievement. But when determined by our society, as we see it today, achievement does not express a totality; it is completely fragmented and derivative. It is not uncommon for the community to be the site where a joint and covert struggle is waged against higher ambitions and more personal goals. ... The socially relevant achievement of the average person serves in the vast majority of cases to repress the original and nonderivative, inner aspirations of the human being."

"Thus we are brought to the third circle of this hell, which, perhaps, will some day find its Dante. In this third social circle, a sort of Parisian belly, in which the interests of the town are digested, and where they are condensed into the form known as /business/, there moves and agitates, as by some acrid and bitter intestinal process, the crowd of lawyers, doctors, notaries, councillors, business men, bankers, big merchants, speculators, and magistrates. Here are to be found even more causes of moral and physical destruction than elsewhere... Their genuine stupidity lies hid beneath their specialism. They know their business, but are ignorant of everything which is outside it. So that to preserve their self-conceit they question everything, are crudely and crookedly critical. They appear to be sceptics and are in reality simpletons; they swamp their wits in interminable arguments..."

"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."

"The former distrust of specialization has been supplanted by its opposite, a distrust of generalization. Not only has man become a specialist in practice, he is being taught that special facts represent the highest form of knowledge."

"Corporation, n. An ingenious device for securing individual profit without individual responsibility."

"[...] legal curbs on corporate freedoms are needed to protect citizen's freedom."

"A century and a half after its birth, the modern business corporation, an artificial person made in the image of a human psychopath, now is seeking to remake real people in its image."

"As a psychopathic creature, the corporation can neither recognize nor act upon moral reasons to refrain from harming others."

"It is a fiction, a shade, a nonentity, but a reality for legal purposes. A corporation aggregate is only in abstracto—it is invisible, immortal, and rests only in intendment and consideration of the law."

"A corporation can have no legal existence out of the boundaries of the sovereignty by which it is created."

"Cities are immortal."

"Corporations cannot commit treason, nor be outlawed, nor excommunicate, for they have no souls."

"We ought, as far as we can by law, to support the government of all societies and corporations, especially this of the city of London; and if the mayor and aldermen should not have power to punish offenders in a summary way, then farewell the government of the city."

"The situation the Lord Mayor holds is the first officer of the first city in the world in point of commerce and riches, and everything that can constitute the magnificence of a city. He is a judicial officer, and a municipal officer too, and from these combined characters there are duties incumbent upon him, which by all the ties that can bind a man to the discharge of duty, he is bound to discharge. It stands at the head of his duties, next after protecting the religion which binds us to God, to govern that civil policy which binds government together, and prevents us from being a state of anarchy and confusion."

"That corporations are the creatures of the Crown must be universally admitted."

"The Court are bound to consider all the circumstances of the case, before they disturb the peace and quiet of any corporation."

"We ought not to encourage vexatious prosecutions, which tend to throw corporations into confusion."

"13 million children are hungry in America. Yet most politicians do not even talk about it... The political establishment has simply normalized the despair of millions of American children who are chronically traumatized by poverty, hunger, and all manner of violence. This is what happens when government becomes more an instrument of corporate profits then of conscience... This country shouldn’t be run like a business, it should be run like a family."

"Everyone has the right to own property alone as well as in association with others. No one shall be arbitrarily deprived of his property."

"In addition to this immediate drowning out of noncorporate voices, there may be deleterious effects that follow soon thereafter. Corporate ‘domination’ of electioneering can generate the impression that corporations dominate our democracy. When citizens turn on their televisions and radios before an election and hear only corporate electioneering, they may lose faith in their capacity, as citizens, to influence public policy. A Government captured by corporate interests, they may come to believe, will be neither responsive to their needs nor willing to give their views a fair hearing. The predictable result is cynicism and disenchantment: an increased perception that large spenders ‘call the tune’ and a reduced ‘willingness of voters to take part in democratic governance.’ To the extent that corporations are allowed to exert undue influence in electoral races, the speech of the eventual winners of those races may also be chilled. Politicians who fear that a certain corporation can make or break their reelection chances may be cowed into silence about that corporation. On a variety of levels, unregulated corporate electioneering might diminish the ability of citizens to ‘hold officials accountable to the people,’ and disserve the goal of a public debate that is ‘uninhibited, robust, and wide-open.’"

"(TH: In Justice Stevens’ dissent in Citizens United, he pointed out that corporations in their modern form didn’t even exist when the Constitution was written in 1787 and got its first ten amendments in 1791, including the First which protects free speech)"

"All general business corporation statues appear to date from well after 1800.. The Framers thus took it as a given that corporations could be comprehensively regulated in the service of the public welfare. Unlike our colleagues, they had little trouble distinguishing corporations from human beings, and when they constitutionalized the right to free speech in the First Amendment, it was the free speech of individual Americans they had in mind. The fact that corporations are different from human beings might seem to need no elaboration, except that the majority opinion almost completely elides it…. Unlike natural persons, corporations have ‘limited liability’ for their owners and managers, ‘perpetual life,’ separation of ownership and control, ‘and favorable treatment of the accumulation of assets….’ Unlike voters in U.S. elections, corporations may be foreign controlled. ...It might be added that corporations have no consciences, no beliefs, no feelings, no thoughts, no desires. Corporations help structure and facilitate the activities of human beings, to be sure, and their ‘personhood’ often serves as a useful legal fiction. But they are not themselves members of ‘We the People’ by whom and for whom our Constitution was established."

"The economic fate of a corporation, like that of other business enterprises, is ultimately controlled by individual consumers. But most consumers may be no more interested in taking on management responsibility than stockholders are. Nor is it enough that those consumers who don’t want to be bothered don’t have to be. The very existence of enhanced powers for non-management individuals to have a say in the running of a corporation would force other consumers and stockholders to either take time to represent their own views and interests in this process or risk having people with other agendas over-ride their interests and interfere with the management of the enterprise, without these outsiders having to pay any price for being wrong."

"There can be no effective control of corporations while their political activity remains. To put an end to it will be neither a short nor an easy task, but it can be done. We must have complete and effective publicity of corporate affairs, so that the people may know beyond peradventure whether the corporations obey the law and whether their management entitles them to the confidence of the public. It is necessary that laws should be passed to prohibit the use of corporate funds directly or indirectly for political purposes; it is still more necessary that such laws should be thoroughly enforced. Corporate expenditures for political purposes, and especially such expenditures by public-service corporations, have supplied one of the principal sources of corruption in our political affairs. It has become entirely clear that we must have government supervision of the capitalization, not only of public-service corporations, including, particularly, railways, but of all corporations doing an interstate business. I do not wish to see the nation forced into the ownership of the railways if it can possibly be avoided, and the only alternative is thoroughgoing and effective legislation, which shall be based on a full knowledge of all the facts, including a physical valuation of property. This physical valuation is not needed, or, at least, is very rarely needed, for fixing rates; but it is needed as the basis of honest capitalization."

"Corporations are people, my friend … course they are!"

"Given the extensive involvement of state violence in the process by which the corporate elite not only achieved its wealth in the past but continues to maintain and augment it in the present, it is clear that the massive inequalities of wealth that characterise present-day “capitalist” society are radically inconsistent with any approach to justice in holdings that is even remotely Nozickian."

"I have not tried to investigate it. It’s no use. There is no information about corporations. There is only disinformation. Even after they collapse, imploding into a cratered ruin stinking of burnt stockholder and surrounded by an impenetrable barrier formed by members of Congress and other government officials holding hands and wearing yellow tape marked Private Property, No Trespassing, Keep Out, No Hunting, Fishing, or Accounting—even then there is no truth in them."