Strategy (127 page)

3
. Frederick W Taylor,
Principles of Scientific Management
(Digireads.com: 2008), 14. First published 1911.

4
. Charles D. Wrege and Amadeo G. Perroni, “Taylor's Pig-Tale: A Historical Analysis of Frederick W. Taylor's Pig-Iron Experiments,”
Academy of Management Journal
17, no. 1 (1974): 26.

5
. Jill R. Hough and Margaret A. White, “Using Stories to Create Change: The Object Lesson of Frederick Taylor's ‘Pig-Tale,'”
Journal of Management
27 (2001): 585–601.

6
. Robert Kanigel,
The One Best Way: Frederick Winslow Taylor and the Enigma of Efficiency
(New York: Viking Penguin, 1999); Daniel Nelson, “Scientific Management, Systematic Management, and Labor, 1880–1915,”
The Business History Review
48, no. 4 (Winter 1974): 479–500. See chapter on Taylor in A. Tillett, T. Kempner, and G. Wills, eds.,
Management Thinkers
(London: Penguin, 1970).

7
. Judith A. Merkle,
Management and Ideology: The Legacy of the International Scientific Movement
(Berkeley: University of California Press, 1980), 44–45.

8
. Peter Drucker,
The Concept of the Corporation
, 3rd edn. (New York: Transaction Books, 1993), 242.

9
. Oscar Kraines, “Brandeis' Philosophy of Scientific Management,”
The Western Political Quarterly
13, no. 1 (March 1960): 201.

10
. Kanigel,
The One Best Way
, 505.

11
. V. I. Lenin, “The Immediate Tasks of the Soviet Government,”
Pravda
, April 28, 1918. Available at
http://www.marxists.org/archive/lenin/works/1918/mar/x03.htm
.

12
. Merkle,
Management and Ideology
, 132. See also Daniel A. Wren and Arthur G. Bedeian, “The Taylorization of Lenin: Rhetoric or Reality?”
International Journal of Social Economics
31, no. 3 (2004): 287–299.

13
. Mary Parker Follett,
The New State
(New York: Longmans, 1918), cited by Ellen S. O'Connor, “Integrating Follett: History, Philosophy and Management,”
Journal of Management History
6, no. 4 (2000): 181.

14
. Peter Miller and Ted O'Leary, “Hierarchies and American Ideals, 1900–1940,”
Academy of Management Review
14, no. 2 (April 1989): 250–265.

15
. Pauline Graham, ed.,
Mary Parker Follett: Prophet of Management
(Washington, DC: Beard Books, 2003).

16
. Mary Parker Follett,
The New State: Group Organization—The Solution of Popular Government
(New York: Longmans Green, 1918), 3.

17
. Irving L. Janis,
Groupthink: Psychological Studies of Policy Decisions and Fiascos
(Andover, UK: Cengage Learning, 1982)

18
. This is drawn from Ellen S. O'Connor, “The Politics of Management Thought: A Case Study of the Harvard Business School and the Human Relations School,”
Academy of Management Review
24, no. 1 (1999): 125–128.

19
. O'Connor, “The Politics of Management Thought,” 124–125.

20
. Elton Mayo,
The Human Problems of an Industrial Civilization
(New York: MacMillan, 1933) and Roethlisberger and Dickson,
Management and the Worker
(Cambridge, MA: Harvard University Press, 1939); Richard Gillespie,
Manufacturing Knowledge: A History of the Hawthorne Eexperiments
(Cambridge, UK: Cambridge University Press, 1991); R. H. Franke and J. D. Kaul, “The Hawthorne Experiments: First Statistical Interpretation,”
American Sociological Review
43 (1978): 623–643; Stephen R. G. Jones, “Was There a Hawthorne Effect?”
The American Journal of Sociology
98, no. 3 (November 1992): 451–468.

21
. On Mayo's life, see Richard C. S. Trahair,
Elton Mayo: The Humanist Temper
(New York: Transaction Publishers, 1984). Of particular interest is the damning foreword by Abraham Zaleznik, who joined the human relations team at Harvard as Mayo was leaving.

22
. Barbara Heyl, “The Harvard ‘Pareto Circle,' ”
Journal of the History of the Behavioral Sciences
4 (1968): 316–334; Robert T. Keller, “The Harvard ‘Pareto
Circle' and the Historical Development of Organization Theory,”
Journal of Management
10 (1984): 193.

23
. Chester Irving Barnard,
The Functions of the Executive
(Cambridge, MA: Harvard University Press, 1938), 294–295.

24
. Peter Miller and Ted O'Leary, “Hierarchies and American Ideals, 1900–1940,”
Academy of Management Review
14, no. 2 (April 1989): 250–265; William G. Scott, “Barnard on the Nature of Elitist Responsibility,”
Public Administration Review
42, no. 3 (May–June 1982): 197–201.

25
. Scott, “Barnard on the Nature of Elitist Responsibility,” 279.

26
. Barnard,
The Functions of the Executive
, 71.

27
. James Hoopes, “Managing a Riot: Chester Barnard and Social Unrest,”
Management Decision
40 (2002): 10.

1
. I have drawn particularly on Ron Chernow,
Titan: The Life of John D. Rockefeller, Sr
. (New York: Little, Brown & Co., 1998) and Daniel Yergin,
The Prize: The Epic Quest for Oil, Money & Power
(New York: The Free Press, 1992).

2
. Chernow,
Titan
, 148–150.

3
. Allan Nevins,
John D. Rockefeller: The Heroic Age of American Enterprise
, 2 vols. (New York: Charles Scribner's Sons, 1940).

4
. Ibid., 433.

5
. Richard Hofstadter,
The Age of Reform
(New York: Vintage, 1955), 216–217.

6
. The book made up of her articles is still in print: Ida Tarbell,
The History of the Standard Oil Company
(New York: Buccaneer Books, 1987); Steven Weinberg,
Taking on the Trust: The Epic Battle of Ida Tarbell and John D. Rockefeller
(New York: W. W. Norton, 2008).

7
. Yergin,
The Prize
, 93.

8
. Ibid., 26.

9
. Chernow,
Titan
, 230.

10
. Steve Watts,
The People's Tycoon: Henry Ford and the American Century
(New York: Vintage Books, 2006), 16; Henry Ford,
My Life and Work
(New York: Classic Books, 2009; first published 1922).

11
. Cited in Watts,
The People's Tycoon
, 190.

12
. Richard Tedlow, “The Struggle for Dominance in the Automobile Market: The Early Years of Ford and General Motors,”
Business and Economic History
Second Series, 17 (1988): 49–62.

13
. Watts,
The People's Tycoon
, 456, 480.

14
. David Farber,
Alfred P. Sloan and the Triumph of General Motors
(Chicago: University of Chicago Press, 2002), 41.

15
. Alfred Sloan,
My Years with General Motors
(New York: Crown Publishing, 1990), 47, 52, 53–54.

16
. Farber,
Alfred P. Sloan
, 50.

17
. Sloan,
My Years with General Motors
, 71.

18
. Ibid., 76. See also John MacDonald,
The Game of Business
(New York: Doubleday: 1975), Chapter 3.

19
. Sloan,
My Years with General Motors
, 186–187.

20
. Ibid., 195–196.

21
. Sidney Fine, “The General Motors Sit-Down Strike: A Re-examination,”
The American Historical Review
70, no. 3, April 1965, 691–713.

22
. Adolf Berle and Gardiner Means,
The Modern Corporation and Private Property
(New York: Harcourt, Brace and World, 1967), 46, 313.

1
. Solow had the distinction of inspiring two novels,
The Unpossessed
, by his ex-wife Tess Slesinger, and James T. Farrell's posthumously published
Sam Holman
, which has a theme of intellectual brilliance transformed into mediocrity through the political journey of the 1930s. McDonald appears as Holman's (Solow's) closest friend, a source of skepticism and conscience.

2
. Amitabh Pal, interview with John Kenneth Galbraith,
The Progressive
, October 2000, available at
http://www.progressive.org/mag_amitpalgalbraith
.

3
. Alfred Chandler,
The Visible Hand
(Harvard, MA: Belknap Press, 1977), 1

4
. Galbraith,
The New Industrial State
, 2nd edn. (Princeton, NJ: Princeton University Press, 2007), 59, 42.

5
. Drucker,
The Concept of the Corporation
, see Chapter 28, n. 8.

6
. Ibid., Introduction.

7
. Peter Drucker,
The Practice of Management
(Amsterdam: Elsevier, 1954), 3, 245–247.

8
. Ibid., 11.

9
. Ibid., 177. See his observations in his autobiography, Peter Drucker,
Adventures of a Bystander
(New York: Transaction Publishers, 1994).

10
. This account appeared in an appendix to the book's 1983 edition, and was repeated in an introduction he wrote to a 1990 edition of Sloan's
My Years with General Motors
. It also appears in his autobiography.

11
. Christopher D. McKenna, “Writing the Ghost-Writer Back In: Alfred Sloan, Alfred Chandler, John McDonald and the Intellectual Origins of Corporate Strategy,”
Management & Organizational History
1, no. 2 (May 2006): 107–126.

12
. Jon McDonald and Dan Seligman,
A Ghost's Memoir: The Making of Alfred P. Sloan's My Years with General Motors
(Boston: MIT Press, 2003), 16.

13
. The lawyers were worried about references to Sloan's early plan to take on Ford. A phrase in the original plan, stating that the company was not after a monopoly, might concede the point that a monopoly was an option.

14
. Edith Penrose,
The Theory of the Growth of the Firm
(New York: Oxford University Press, 1959). In 1995, she described Chandler's “analytical structure congruent with my own” (Foreword to the third edition). John Kay,
Foundations of Corporate Success: How Business Strategies Add Value
(Oxford: Oxford University Press, 1993) stresses Penrose's foundational role, 335.

15
. Alfed Chandler, “Introduction,” in 1990 edition of
Strategy and Structure
(Cambridge, MA: MIT Press, 1990), v. In 1956, when he had first published on the topic, Chandler had described as long-range policy what he now called strategy.

16
. Chandler, “Introduction,”
Strategy and Structure
, 13.

17
. Chandler saw other examples of the same theme, for example with DuPont. Alfred D. Chandler and Stephen Salsbury,
Pierre S. du Pont and the Making of the Modern Corporation
(New York: Harper & Row, 1971).

18
. Chandler,
Strategy and Structure
, 309. Robert F. Freeland, “The Myth of the M-Form? Governance, Consent, and Organizational Change,”
The American Journal of Sociology
102 (1996): 483–526; Robert F. Freeland, “When Organizational Messiness Works,”
Harvard Business Review
80 (May 2002): 24–25.

19
. Freeland, “The Myth of the M-Form,” 516.

20
. Neil Fligstein, “The Spread of the Multidivisional Form Among Large Firms, 1919–1979,”
American Sociological Review
50 (1985): 380.

21
. McKenna, “Writing the Ghost-Writer Back In.” Other large firms studied by Chandler, such as IBM and AT&T, would also have discouraged too much exploration of the impact of antitrust legislation on corporate structure.

22
. Edward D. Berkowitz and Kim McQuaid,
Creating the Welfare State: The Political Economy of Twentieth Century Reform
(Lawrence, KS: Praeger, 1992), 233–234. Cited by Richard R. John, “Elaborations, Revisions, Dissents: Alfred D. Chandler, Jr.'s, ‘The Visible Hand' after Twenty Years,”
The Business History Review
71, no. 2 (Summer 1997): 190. Sanford M. Jacoby,
Employing Bureaucracy: Managers, Unions, and the Transformation of Work in American Industry, 1900–1945
(New York: Columbia University Press, 1985), 8. John, “Elaborations, Revisions, Dissents,” 190.

23
. Louis Galambos, “What Makes Us Think We Can Put Business Back into American History?”
Business and Economic History
21 (1992): 1–11.

24
. John Micklethwait and Adrian Wooldridge,
The Witch Doctors: Making Sense of the Management Gurus
(New York: Random House, 1968), 106.

25
. See foreword to the 1986 edition of
Managing for Results
.

26
. Stewart,
The Management Myth
, see Chapter 28, n. 2, 153.

27
. Walter Kiechel III,
The Lords of Strategy: The Secret Intellectual History of the New Corporate World
(Boston: The Harvard Business Press, 2010), xi–xii, 4.

28
. Kenneth Andrews,
The Concept of Corporate Strategy
(Homewood, IL: R. D. Irwin, 1971), 29.

29
. Henry Mitzberg, Bruce Ahlstrand, and Joseph Lampel,
Strategy Safari: The Complete Guide Through the Wilds of Strategic Management
(New York: The Free Press, 1998). See also the companion volume of readings,
Strategy Bites Back: It Is Far More, and Less, Than You Ever Imagined
(New York: Prentice Hall, 2005).

30
. “The Guru: Igor Ansoff,”
The Economist
, July 18, 2008; Igor Ansoff,
Corporate Strategy: An Analytic Approach to Business Policy for Growth and Expansion
(New York: McGraw-Hill, 1965).