It’s Not What You Think
- New Horizons in Management series
2. Traditional organizations The traditional organization was the culmination of 300 years of organizational evolution. In the simpler, agrarian society, landowners and laborers lived and worked together. The living was hard, and the hours were long, but both shared in the work as well as the rewards. The Industrial Revolutions in England and the United States changed all of that. No longer could technical prowess alone ensure business success. Professional managers were needed to administer the new, complex organizations, and ﬁnanciers with deep pockets were required to raise the large sums of money needed to build premises, buy new equipment and employ personnel. In addition, these sweeping changes inaugurated a new class of organizational problems. The traditional organization succeeded the American Industrial Revolution. Although Britain had industrialized before the United States, the organizational form that followed had only a minor inﬂuence elsewhere, for example, in similar industries in New England. The traditional organization that followed the American Industrial Revolution, however, changed not only the way in which work was organized and managed in the United States, but it also became a template for the rest of the industrialized world. This chapter will describe how that new organization functioned and will provide an important step towards understanding the value-based organization. CHAOS TO ORDER It is the desire of all human beings to create order out of chaos, whether at home or at work.1 The relative serenity and stability of the agri-economy gave that sense of order. By comparison, the apparent...
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