False prophets the gurus who created modern management and why their ideas are bad for business today

FALSE PROPHETS Also by James Hoopes: Community Denied Consciousness in New England Van Wyck Brooks Oral History FALSE PROPHETS The Gurus Who Created Modern Management and Why Their Ideas Are Bad for Business Today JAMES HOOPES PERSEUS PUBLISHING A Member of the Perseus Books Group For Carol, Johanna, and Ben Many of the designations used by manufacturers and sellers to distinguish their products are claimed as trademarks Where those designations appear in this book, and where Perseus Publishing was aware of a trademark claim, the designations have been printed in initial capital letters Copyright © 2003 by James Hoopes All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher Printed in the United States of America Quote from Lawrence Richley's letter to Lillian Gilbreth: Lawrence Richley to Lillian Gilbreth, March 15, 1929, "Gilbreth, Dr Lillian M., 1929-1933," Presidential Secretary's File, Hoover Papers, Hoover Library Library of Congress Control Number: 2003101363 ISBN 0-7382-0798-5 Perseus Publishing is a member of the Perseus Books Group Find us on the World Wide Web at http://www.perseuspublishing.com Perseus Publishing books are available at special discounts for bulk purchases in the U.S by corporations, institutions, and other organizations For more information, please contact the Special Markets Department at the Perseus Books Group, 11 Cambridge Center, Cambridge, MA 02142, or call (800) 255-1514 or (617) 252-5298, or e-mail j.mccrary@perseusbooks.com Text design by Brent Wilcox Set in 11-point Berkeley by the Perseus Books Group First printing, March 2003 10—06 05 04 03 CONTENTS List of Illustrations Acknowledgments Introduction vii ix xiii PART Scientific Management: How Top-Down Power Increased American Productivity — 1 Handling People in Early America Why Management Is Un-American, Managing Slaves, 10 Managing Women, 15 Managing Men, 23 The Demon: Frederick W Taylor 33 A Battle for Speed, 33 The Method in His Madness, 39 The Lambs of Bethlehem, 48 Fame and Fall, 56 The Engineers: The Gilbreths and Gantt 65 A Cheerful Bricklayer, 65 Bonus Pay and Bad Accounting, 74 Financiers' Failure to Make the World Safe for Democracy, 80 Lillian Gilbreth, Herbert Hoover, and American Individualism, 89 PART Human Relations: Management as Moral Leadership of Bottom-Up Power — 97 The Optimist: Mary Parker Follett A Self-Made Woman, 101 101 vi CONTENTS The Corporation as a Person, 108 Integration, 115 Leadership and the Law of the Situation, 121 The Therapist: Elton Mayo 129 Democracy in Australia, 129 Managing American Social Science, 136 The Harvard Business School, Savior of Civilization, 141 The Hawthorne Experiment, 146 The Birth of Organizational Behavior, 153 The Leader: Chester Barnard Managing a Riot, 161 161 The Scholar as Manager, 167 Leadership and Democracy, 173 The USO: A Higher Stage of Americanism, 179 The A-Bomb and the American Trucking Boys, 185 PART Social Philosophy: Management as Everybody's Business — 193 The Statistician: W Edwards Deming 197 Wyoming's Willing Worker in Einstein's Universe, 197 Quality Widgets for an Inexact World, 202 Mr Deming Goes to Washington, 207 Rebuilding Japan, 214 Reorganizing America, 223 The Moralist: Peter Drucker 231 From the Hapsburg Empire to the Third Reich, 231 Management in America, 237 Detroit: Heart of Industrial Civilization, 241 From Social Critic to Management Guru, 248 Managerial Idealism Defeated, 254 Conclusion Notes Index 263 283 311 LIST OF ILLUSTRATIONS Photos 1.1 "Gordon." Courtesy of the Photographs and Prints Division, Schomburg Center for Research in Black Culture, the New York Public Library, Astor, Lenox and Tilden Foundations 12 1.2 Kirk Boott Courtesy of Baker Library, Harvard Business School 20 1.3 General Jack Casement Courtesy of Union Pacific Historical Collection 29 2.1 A machine shop before and after scientific management From H L Gantt's Organizing for Work © 1919 by Harcourt, Inc 2.2 Frederick W Taylor Courtesy of Frederick Winslow Taylor Collection, Stevens Institute of Technology, S C Williams Library, Castle Point on Hudson, Hoboken, NJ 2.3 Workers at the Watertown Arsenal Courtesy of Watertown Free Public Library 44 57 61 3.1 The Gilbreth Scaffold Courtesy of Purdue University Frank and Lillian Gilbreth Collection 67 3.2 Frank and Lillian Gilbreth Courtesy of the Smithsonian Institution, National Museum of American History 69 3.3 H L Gantt Courtesy of Frederick Winslow Taylor Collection, Stevens Institute of Technology, S C Williams Library, Castle Point on Hudson, Hoboken, NJ 75 4.1 Mary Parker Follett Courtesy of Henley College of Management VII 102 viii ILLUSTRATIONS 4.2 Mary Parker Follett Courtesy of Pauline Graham 5.1 Elton Mayo Courtesy of Baker Library, Harvard Business School 5.2 The Relay Assembly Test Room Courtesy of Baker Library, Harvard Business School 106 130 149 6.1 Police attacking demonstrators Photo published in the Trenton State Gazette 162 6.2 Barnard at a USO meeting Courtesy of Verizon 183 6.3 Chester Barnard Courtesy of Verizon 186 7.1 Deming lecturing and speaking in Japan Courtesy of the Japanese Union of Scientists and Engineers 8.1 Peter Drucker Courtesy of Peter Drucker 8.2 The cover of Drucker's pamphlet, The Jewish Question in Germany 198 232 237 Figures 7.1 Quality Control Chart Courtesy of the Graduate School, U.S Department of Agriculture 7.2 Quality Control Chart Courtesy of the Graduate School, U.S Department of Agriculture 7.3 The Deming Cycle 206 219 8.1 The M-form 243 205 ACKNOWLEDGMENTS D U R I N G T H E F I V E Y E A R S THAT I W O R K E D O N T H I S B O O K A N D for many years before, Carol Hoopes supported me in more ways than I can ever adequately acknowledge So did Johanna and Benjamin Hoopes, while also growing into fine young adults I thank them and love them I owe a large debt to friends and colleagues at Babson College, who over a course of more than twenty years have taught me much of what I know about the potential of management to both good and ill I have been lucky during the last five years to work for two exemplary managers of high standards and character—Michael Fetters, vice president of Academic Affairs, and Stephen Collins, chairman of the Division of History and Society Without their support, this book might not have been written or, for certain, would have been much longer in the writing They were also faithful friends Two other good friends gave indispensable emotional and intellectual support Ross Wolin discussed this book with me for more evenings and gave me more good advice than he probably cares to remember George Cotkin read parts of a wayward first draft, gently nudged me toward a course correction, and since then has supplied limitless encouragement Three Babson College colleagues read parts of the manuscript, saving me from errors and giving me the benefit of their insights—Allan Cohen, Ismael Dambolena, and Jack Stamm Stephen Collins read it all, adding to the large personal and intellectual debt I have come to owe him Many other faculty, administrators, and staff at Babson have supported this project in small ways and large while contributing to my understanding of management I thank them all and especially Mary Driscoll and Pat MacAlpine IX 306 NOTES p 224 "a burr under " Cole, Managing Quality Fads, 74 p 224 "would need years " Deming to Petersen, June 28, 1982, Deming Papers, Box 16, Folder p 224 "Ford surpassed GM " Ingrassia, Comeback, 136 p 225 "Petersen authored the " Donald E Petersen and John Hillkirk, A Better Idea: Redefining the Way Americans Work (Boston: Houghton Mifflin, 1991), 248, p 225 "a merciless tyrant " Ingrassia, Comeback, 221 p 225 "many elements of " "Petersen Restructures Ford's Future," Automotive Industries (February 1982): 53 p 225 "But many lower-level " Cole, Managing Quality Fads, 94 p 225 "Ouichi offered the " William G Ouichi, Theory Z: How American Business Can Meet the Japanese Challenge (Reading, MA: Addison-Wesley, 1981), 68-69, 129 p 226 "Deming deplored the " Deming, Out of the Crisis, 137 p 226 "originally meant a " A V Feigenbaum, Total Quality Control (New York: McGraw-Hill, 1991; first printing 1951), p 226 "came to stand " Deming, Out of the Crisis, 141 p 226 "damned American management " Deming, Out of the Crisis, 85, 129 p 227 "In 1989, an " Jerry Bowles and Joshua Hammond, Beyond Quality: How Fifty Winning Companies Use Continuous Improvement (New York: G P Putnam's Sons, 1991), 148-149; Cole, Managing Quality Fads: How American Business Learned to Play the Quality Game, 68-69 p 227 "its core emphasis " Cole, Managing Quality Fads, 148 p 227 "Acting the part " Mary Walton, The Deming Management Method (New York: Dodd, Mead, 1986), 40-54 p 227 "[T]he ranking of " Deming, The New Economics for Industry, Government, Education (Cambridge: MIT Press, 1993), 173 p 228 "Dispensing with grades " ibid., 149-150 Chapter 8, The Moralist: Peter Drucker p 233 "To hobble his " C A Macartney, The Habsburg Empire (New York: Macmillan, 1969), 410 p 233 "There is no " Andrea Gabor, The Capitalist Philosophers: The Geniuses of Modern Business—Their Lives, Times, and Ideas (New York: Times Business, 2000), 300 p 234 "Vienna remained a " Peter F Drucker, Adventures of a Bystander (New York: Harper and Row, 1978), 84 p 235 "A nation that " Peter F Drucker, The Future of Industrial Man: A Conservative Approach (New York: John Day, 1942), 71 (italics in original) p 235 "Marxism was no " Peter F Drucker, The End of Economic Man: A Study of the New Totalitarianism (New York: John Day, 1939), 26, 33 p 235 "Christianity, at l e a s t " ibid., 66–67 p 235 "He heard Hitler " ibid., 124 p 235 "Drucker also saw " ibid., 15 NOTES 307 p 236 "Once in power " Drucker, Adventures of a Bystander, 165 p 236 "This incident stuck " Drucker, End of Economic Man, 36-37 p 236 "Die Judenfrage in " Austrian National Archives, call number C54,052 p 237 "Drucker would soon " Drucker, Future of Industrial Man, 84, 97 p 238 "The earlier influences " Drucker, End of Economic Man, 42 p 238 "In The End ibid., chap p 238 "The American founders " Drucker, Future of Industrial Man, 243 p 239 "Propertied Americans did " ibid., 244 p 239 "But there was " ibid., 80 p 239 "more power over " ibid., 79 p 240 "denial of the " Drucker, Concept of the Corporation (New Brunswick, NJ: Transaction Books, 1993; orig pub 1946), p 240 "[T]here has never " Drucker, Future of Industrial Man, 99 p 240 "The difference, Drucker " ibid., 294-295 p 240 "In his book " ibid., 291–295 p 242 "a cog in " Drucker, Adventures of a Bystander, 257 p 242 "The chairman of " ibid., 258 p 244 "The resident intellectual " Drucker, Future of Industrial Man, 158 p 244 "Although Brown had " Drucker, Adventures of a Bystander, 263, 258 p 245 "subterranean race war" Alfred McClung Lee and Norman Daymond Humphrey, Race Riot (New York: Dryden Press, 1943), 106 p 245 "Top GM managers " Frank Cormier and William J Eaton, Reuther (Englewood Cliffs, NJ: Prentice-Hall, 1970), 94 p 246 "Sloan worked as " Drucker, Adventures of a Bystander, 285, 280 p 246 "More volatile than " Drucker to author, November 13, 2000 p 247 "What an absurd " Drucker, Adventures of a Bystander, 282 p 248 "Drucker noted that " Drucker, Concept of the Corporation, 64-65 p 248 "Yet he disliked " Drucker, Adventures of a Bystander, 288 p 248 "recently been disputed " Daniel Seligman, introduction to John McDonald, A Ghost's Memoir (Cambridge: MIT Press, 2002), xiv-xv p 248 "But Drucker somewhat " Drucker, Adventures of a Bystander, 292 p 248 "Drucker believed not " Drucker, Concept of the Corporation, 11 p 248 "According to Drucker " ibid., 10–11 p 249 "Drucker claimed that " ibid., 11 p 249 "socially constitutive sphere" Drucker, Future of Industrial Man, 158 p 249 "Drucker saw the " Ducker, Concept of the Corporatio, 123, 115 p 249 "One of decentralization's " ibid., 127, 123 p 249 "Wherever Sloan stood " ibid., 122, 129 p 250 "Drucker also wrote " ibid., 130-136 p 250 "Sloan must therefore " ibid., 198–199 p 250 "[t]he primary object " Alfred E Sloan, My Years with General Motors (Garden City, NY: Anchor Books, 1963), 70 p 250 "In My Years " ibid., 237 308 NOTES p 250 "become again predominately " Drucker, Concept of the Corporation, 100 p 250 "Sloan also dismissed " Sloan, My Years with General Motors, 59 p 251 "However, McNamara, with " Gabor, The Capitalist Philosophers, 139 p 252 "In Concept of " Drucker, Concept of the Corporation, 155-156 p 252 "thumbed his nose " Richard C.S Trahair, The Humanist Temper: The Life and Work of Elton Mayo (New Brunswick, NJ: Transaction Books, 1984), 337 p 253 "Drucker, however, believed " Peter F Drucker, The Practice of Management (New York: Harper and Bros., 1954), 124-125 p 253 "To liberate employees " Drucker, Practice of Management, 119 p 253 "Hence, Drucker voiced " ibid., 281 p 253 "Nor did Drucker " ibid., 391-392 p 254 "Over time, Drucker " ibid., 310-311 p 254 "Recently, Drucker " Peter F Drucker, "The Next Society: A Survey of the Near Future," Economist (November 3, 2001), 17-18 p 255 "Drucker supplied Welch " Jack Welch, Jack: Straight from the Gut (New York: Warner Business Books, 2001), 108 p 255 "Drucker's other contribution " ibid., 314 p 256 "conscious transfer of " ibid., 398 p 256 "He had thought " Peter F Drucker, The Unseen Revolution: How Pension Fund Socialism Came to America (New York: Harper and Row, 1976), p 256 "But the pension " Peter F Drucker, The New Realities in Government and Politics/in Economics and Business/in Society and World View (New York: Harper and Row, 1989), 228 (italics in original) p 257 "Reluctantly, he admitted " Drucker on Asia: A Dialogue Between Peter Drucker and Isao Nakauchi (Newton, MA: Butterworth-Heinemann, 1997), 149 p 257 "Now he hoped " Drucker, New Realities in Government and Politics, 176 p 257 "a sense o f " Peter F Drucker, Managing the Non-Profit Organization: Practices and Principles (New York: HarperCollins, 1990), xviii p 257 "What could come " Drucker, New Realities in Government and Politics, 226 p 257 "changed human being " Drucker, Managing the Non-Profit Organization, xiv (italics in original) p 258 "Better yet, a " ibid., 15, 17 p 258 "According to Drucker " Drucker, New Realities in Government and Politics, 204 p 258 "Drucker thought, probably " Drucker, "Next Society," 10 p 258 "Drucker evidently believed " ibid., 8, 14, 16–17 p 259 "Yet Drucker believes " Drucker, Managing the Non-Profit Organization, xiv p 260 "Yet as soon " Drucker, Managing the Non-Profit Organization, 117, 3, 145-146 Conclusion p 264 "Profit is fine " "Tom Peters's True Confessions," FastCompany (December 2001), available: www.fastcompany.com/online/53/peters.html NOTES 309 p 264 "They overreach for " Jedidiah Purdy, For Common Things: Irony, Trust, and Commitment in America Today (New York: Knopf, 1999), 30 p 265 "Life at work " "Tom Peters's True Confessions." p 266 "Marketing surveys report " Daniel Yankelovich, New Rules: Searching for Self-Fulfillment in a World Turned Upside Down (New York: Random House, 1981) p 266 "Information technology is " Peter M Senge, The Fifth Discipline: The Art and Practice of the Learning Organization (New York: Doubleday, 1990), 172 p 266 "Michael Hammer, one " Michael Hammer, The Agenda: What Every Business Must Do to Dominate the Decade (New York: Crown, 2001), xiv p 266 "Unfortunately, the reengineers claimed " Michael Hammer and James Champy, Reengineering the Corporation: A Manifesto for Business Revolution (New York: Harper Business, 1993), 69-70 p 267 "And because process-centered " Michael Hammer, Beyond Reengineering: How the Process-Centered Organization Is Changing Our Work and Our Lives (New York: HarperCollins, 1996), 59-60 p 268 "Like the pitchmen " ibid., 60–61 p 269 "In the 1970s " Christopher Lasch, The Culture of Narcisissm: American Life in an Age of Diminishing Expectations (New York: W W Norton, 1978), 90 p 270 "Business Week ran " "Corporate Culture: The Hard-to-Change Values That Spell Success or Failure," Business Week (October 27, 1980), 148–160 p 270 "The gurus raced " Thomas J Peters and Robert H Waterman, Jr., In Search of Excellence: Lessons from America's Best-Run Companies (New York: Harper and Row, 1982), 105 (italics in original); cf Terrence E Deal and Allan A Kennedy, Corporate Cultures: The Rites and Rituals of Corporate Life (Reading, MA: Addison-Wesley, 1982), 3-19 p 270 "But Senge advocated " Senge, The Fifth Discipline, 287 p 271 "arrangements of status " The anthropologist Sidney Mintz, quoted in Herbert G Gutman, "Work, Culture, and Society in Industrializing America, 1815-1919," American Historical Review (June 1973): 542 p 271 "Senge was only " Senge, The Fifth Discipline, 289 (italics in original) Senge sometimes brought power in through the back door He called, for example, for preserving systemwide interests against selfish local managers by establishing "signals, perhaps coupled to rewards and costs, that alert local actors that a 'commons' is in danger" (298) p 274 "Because leadership is " Abraham Zaleznik, "Managers and Leaders: Are They Different?" Harvard Business Review (May-June 1977): 70 p 274 "The leader, in s h o r t " Warren Bennis, On Becoming a Leader (Reading, MA: Addison-Wesley, 1989), 49 p 275 "begin the arduous " ibid., 32 p 275 "Power, Warren Bennis " Warren Bennis and Burt Nanus, Leaders: The Strategies for Taking Charge (New York: Harper and Row, 1985), 17 p 275 "According to Bennis " ibid., 16 p 276 "Only by omitting " Warren Bennis and Philip Slater, "Is Democracy Inevitable?" in Warren Bennis, An Invented Life: Reflections on Leadership and Change (Reading, MA: Addison-Wesley, 1993), 42, originally published in the Harvard Business Review 310 NOTES p 276 "leadership, not management" ibid., 88 p 276 "But what else " Hammer, Beyond Reengineering, 61 p 276 "When Peter Senge says " Peter Senge, "Building Learning Organizations," Journal for Quality and Participation 15 (2): 32 p 277 "Recently, a CEO " Annual Report 2000, the AES Corporation, p p 277 "Moral authority only " John Chester Miller, The Wolf by the Ears: Thomas Jefferson and Slavery (New York: Free Press, 1977), 42 p 278 "Hamel used Enron " Gary Hamel, Leading the Revolution (Boston: Harvard Business School Press, 2000), 153 p 278 "Hamel saw Jeffrey " ibid., 216 p 278 "At Enron, failure " ibid., 218 p 279 "Coming to Enron " April Witt and Peter Behr, "The Fall of Enron" (July 29, 2002), available: www.washingtonpost.com/wp-dyn/articles/A14229-2002July 28.htm NDEX A-bomb, 185-191, 214 Abuse, 11-15, 21, 27-28, 33-34, 76 Accounting, 78-80, 85, 88 Acheson, Dean, 185-186, 191 AFL See American Federation of Labor African Americans See Slavery Age-assigning cart, 211 Agriculture, 7-10, 208 Agriculture Department (USDA), 207-210 Air of importance, 220 American Federation of Labor (AFL), 60, 117 American Individualism (Hoover), 91 American Magazine, 59 American Revolution, 9-10 American Society of Mechanical Engineers, 72, 83, 95 American Statistical Association, 212 American Trucking Boys, 187-191 American War Standards on Quality Control (Deming, Dodge, and Simon), 211, 216 Amoral realism, 158–159 Arkwright frame, 16 Armorers, 23-26, 50-56 Army Appropriation Act, 62 Arsenals, government, 60-62 Art of management, 215-216 Atlanta Braves, xiv Atlantic Monthly magazine, 59 Atomic energy, 185-191 AT&T, 169-171 Auto manufacturing, 212-213, 223-225, 241-250, 252,255 Baker, George, 142 Baker, Ray Stannard, 59 Baldrige Award, 227 Bank Wiring Test Room, 152 Barnard, Chester, 159 as president of USO, 179-185 climbing through corporate management, 167-173 conversion to corporate cooperation, 173-179 limitations of power, 99 manipulation of relief riots, 161-167 moral authority, xxiv, xxviii nuclear arms race, 185-191 Earth, Carl, 45, 53, 57, 60-61 Baruch, Bernard, 84-85, 87, 170, 189-191 Bell Labs, 202-207 Benjamin Franklin (Van Doren), 238 Bennis, Warren, 265, 275 Berle, Adolf, 237 Bethlehem Steel, 50-56, 76-77 Big idea business book, 266 The Big Money (Dos Passos), 63 Birge, R T, 208-209 Blood pressure, 139-140 Bogatowicz, Adeline, 147-149 Bolshevism, 87-88, 149 Bonus pay, xxii, 74, 76-77 Boott, Kirk, 19-20 B&O Railroad, 58 Bosanquet, Bernard, 127 Boston Associates, 16-17, 19 Boston Marriage, 107 311 312 INDEX Bottom-up power, xxiii-xxiv, xxviii, 3, 99, 175-179, 181-182, 222 Braiding machinery, 71 Brain Trust, 237 Brandeis, Louis, 58-59 Bricklayers, 65-66, 69 Briggs, Isobel, 107-108, 112, 126-127 Brown, Donaldson, 242-246 Bundy, McGeorge, 190 Burnham, James, 240 Bush, George W, xxxi Bush, Vannevar, 186, 189 Business concept innovation, 278 Carding and Spinning Masters Assistant (Montgomery), 21 Career advancement, 47-48 Carter, Jimmy, 270 Casement, Jack, 28 Census Bureau, U.S., 210-211 Champy, James, 266 Cheaper by the Dozen (Gilbreth and Carey), 68 Chinese immigrants, 27-28 Civil rights, xiv Class consciousness, 42 Cody, Buffalo Bill, 199 Cold War, 185-191, 213-214 Colonial era, 23-26 Come-back, 124-125 Communism, 238 Community, companies as, 97-99, 108-115, 150 Competition, 221 Compromise, 119-120 Conant, James, 186, 189 Concept of the Corporation (Drucker), 248, 250-252 Conduct codes, 26-27 Conflict management, xix-xx Congress, U.S., 62 Consent theory, 175-179 Construction labor, 65-68 Consumer research, 218-220 Control, personal, 40-41, 246-247 Convicts, transporting to Australia, 133 Coolidge, Calvin, 91-92 Cooperative labor Barnard's commitment to, 173-179 Japanese management, 222-223 reorganizing American labor, 224 USO relations, 182 Cooperative syndicalism, 134-136 Copley, Frank, 63 Cordiner, Ralph, 255 Corruption, 30-31, 278-279 Cost cutting measures, 38, 41, 50-56 Cotton industry, 10-15 Coughlin, Charles, 245 Craig, Henry, 25 Creative citizenship, 113 Creative Experience (Follett), 115 Croly, Herbert, 81 Culture, corporate, xxvii-xxviii, 269-273, 281 The Culture of Narcissism (Lasch), 270 Curley, James, 110 Customer relations, 249 Czechoslovakia, 73-74 Dartmouth College, 58 Davenport, Russell, 51 David, Donald, 157 Death, by management, 25 Decentralization, 249-250, 255 Decline of the West (Spengler), 142 Deming, W Edwards, xxv American pride in, 194 attraction to SQC, 202-207 government service in quality control, 207-214 humble beginnings, 197-202 rebuilding Japanese manufacturing, 216–223 reorganizing American manufacturing, 223-229 Deming, William, 199 Deming Prize, 222, 226-227 NDEX Democracy, 282 Barnard's cooperation theory, 178 Barnard's moral influence theory, 161-166 conflict with top-down power, 5-10 decentralization of GM, 250-251 Drucker's experience in America, 237-239 Follett's participatory democracy idea, 118-119 Gantt's commitment to, 80-89 human relations management, 97-99 in Japanese industry, 222-223 Massachusetts textile industry, 15-23 Mayo and, 140-141, 143-146, 157 myth of, 231, 263-265 Democracy and Freedom (Mayo), 135 Dennison, Henry, 112, 117-118, 120 Depression, Great, 3, 127, 145 Dickens, Charles, 18 Dickson, William, 152, 154-156 Differential piece rate, 38 Dodge, Harold, 208-209, 211 Dollar-a-year men, 84-87 Donham, Wallace, 141-142, 146, 157, 165 Dos Passes, John, 63 Dostoyevsky Fyodor, 235 Drucker, Adolph, 231-234 Drucker, Peter, xxvii, 194-195 automotive industry, 241-248 decentralization of General Motors, 248-254 Hapsburg Empire and Nazi domination, 231-236 idealism versus profit, 254-260 merging Nazi philosophy with American manufacturing, 237-241 Dumbarton Oaks, 188-189 Dunn, Thomas, 25 du Pont, Pierre, 242-244 Du Pont Company, 242-243 Du Pont formulas, 243, 248 Durant, William "Billy," 243-244 313 Eastern Rate Case, 58, 70 Efficiency, increasing, 47, 59 Einstein, Albert, 201 Emergency Fleet Corporation, 86-87 Emerson, Ralph Waldo, 17, 122 Employee relations, 249 Employee rights, xiv-xv Empowerment, of employees, 207, 268 The End of Economic Man (Drucker), 238 Enron Corporation, xxix, 278-280 Enterprise, 264 Ergonomics, 71 Erie Railroad, 26 Erikson, Erik, 274 Ethics, xxix-xxx, 253-254, 256-257, 277-282 Evaluation, of employees, 227-228 Existentialism, 235 Extortion, 30-31 Factories See Manufacturing Fatigue studies, 71, 144 Fear, in the workplace, 228-229 Ferguson, Charles, 81-82 Fichte, Johann, 106, 122 The Fifth Discipline (Senge), 270 Filene, Edward, 112, 126 Film industry, 146 Florida Power and Light, 227 Follett, Charles, 103-104 Follett, Elizabeth, 104 Follett, George, 105 Follett, Mary Parker, xxiii community unification and integration, 115-121 corporation as a person, 108-115 emergence as intellectual power, 101-108 integration versus culture, 281-282 leadership of an integrated group, 121-128 limitations of power, 98 value of democracy, 141 Fellowship, 124 314 NDEX Ford, Henry, 245-246 Ford Motor Company, 224-225, 244, 251 Foremanship Bethlehem Steel reforms, 51 early manufacturing, 29-31 foremen as therapists, 151-152 Hawthorne experiment, 147-148 Taylor's job as shop foreman, 36-39 Taylors reforms of, 42-48 under Gantt's softer methods, 77 Fortune magazine, 238 Foundations of the Theory of Signs (Morris), 203 France, 72 Freud, Sigmund, 234 Friedrich Julius Stahl (Drucker), 236 The Functions of the Executive (Barnard), 171, 174-175, 178, 181-183 Furse, Katharine, 107, 116, 126-127 The Future of Industrial Man (Drucker), 238-240, 242, 244 Gandhi's Truth (Erikson), 274 Gantt, Henry, xxii, xxvi, xxviii, 2-3, 64, 74-89, 113 Gantt Chart, 85-87 Gantt Medal, 95 Gauss, C.F., 208 Gay, Edwin, 57, 63 General Electric, 255 General Motors, 224-225, 242-244, 248-250, 252, 255 Germany, 72-73, 81, 88-89, 234-235 Gifford, Walter, 169-171, 173 Gilbreth, Frank, xxii, xxvi, xxviii, 2-3, 64-66, 68-74, 146 Gilbreth, Lillian, xxii, xxvi, xxviii, 2-3, 64,68-74,89-96, 118 Gilbreth Scaffold, 66 Goldman, Emma, 70 Golf club, Taylors invention of, 41 Gompers, Samuel, 60 Greene, William, 117 Groves, Leslie, 186-189 Gunsmiths, 23-26 Hall, G Stanley, 71 Hamel, Gary, 278-279 Hamilton, Alexander, 8-9 Hammer, Michael, 266, 276-277 Hansen, Morris, 210 Harding, Warren, 91, 115 Harpers Ferry Armory, 24-26 Harrison, William Henry, 25 Hart, Albert Bushnell, 109 Harvard Business School, xxiii, 57-58, 63, 141-146, 156-159, 252 Harvard human relations group, 143, 172 Hawthorne experiment, xxvi, 146-156, 201, 215-216 Heavy laboring, the law of, 53-54 Henderson, Lawrence, 144-145, 158, 161-162, 174, 178-179 Henry, Patrick, 176 Hensch, Reinhold, 236 Herzberg, Frederick, 193 Hibarger, Homer, 147-148, 155 Highland Union, 110-111 High-speed steel, 51-52, 76 Hoover, Herbert, xxii, 3, 89-96, 117-118, 137, 234 The Human Problems of and Industrial Civilization (Mayo), 153 Human relations, xx, xxii-xxiv, 97-99 Barnard's manipulation of relief protests, 161-167 Drucker's criticism of, 247, 252-253 Harvard human relations group, 143-144 in A-bomb development, 189 Mayo's poverty and isolation, 129-131 Roethlisberger's continuation of, 158 versus motion savings, ICC See Interstate Commerce Commission NDEX Immigrants at the mercy of the foreman, 30 Australia's convict immigrants, 133-134 auto manufacturing, 245 Chinese labor, 27-28 Hawthorne experiment, 147-148 women in textile factories, 22-23 Imperial Germany and the Industrial Revolution (Veblen), 81 Incentives Barnard's theories about the unemployed, 166-167 bonus pay, xxiv, 74, 76-77 conflicting relay test room data, 155-156 for ethical behavior, 278 Hawthorne experiment, 147 Mayo's social factors versus pay, 152-153 Taylor's use of, 34-38 Industrial psychology, 139-141 Industrial Workers of the World, 134 Industrial Worker (Whitehead), 144 Information technology, 255, 266 In Search of Excellence (Peters and Waterman), 270, 279 Intangibles, xvi Integration, 115-128 Intellectual integrity, 99 International Association of Machinists, 61-62 International Management Conference, 74 Interstate Commerce Commission (ICC), 58,70 Irish immigrants, 22-23 Ishikawa, Ichiro, 220 Ishikawa, Kaoru, 222 Jackson, Andrew, 18, 25 James, William, 106-109, 122, 274 Janet, Pierre, 132-133 Japan, xxiv-xxv Americans ignoring Deming, 212-213 315 Deming's rebuilding Japanese manufacturing, 197, 216-223 Drucker's criticism of Japanese corporatism, 256-257 increased competition from, 193-194 superiority to American manufacturing, 223-224 Japanese Union of Scientists and Engineers (JUSE), 216, 220, 222 Jefferson, Thomas, xv-xvi, 6-10 Jewish Welfare Board, 179, 182 Jews, in pre-war Vienna, 233, 236 Johnson, Samuel, Die Judenfrage in Deutschland (Drucker), 236 Juran, Joseph, 217 JUSE See Japanese Union of Scientists and Engineers Keidanren, 220 Kellogg, Vernon, 137-138 Kierkegaard, S0ren, 235 Knowledge, versus power, Knowledge workers, 258 Korean War, 222 Koyanagi, Kenichi, 216, 220 Ku Klux Klan, 245 Labor movement, 60-63 Lasch, Christopher, 270 Laura Spelman Rockefeller Foundation, 138 Law of the situation, 123-125 Lay, Ken, 280 Leadership, xxviii-xxix, 121-128, 273-277 Leadership in a Free Society (Whitehead), 144 League of Nations, 125 Learning-curve strategy, 78 Lee, Roswell, 24-25 Lesbianism, 104, 107 Lewis, C I., 203 Lewis, John L, 238, 245 Light assembly, 99 316 NDEX Lilienthal, David, 187-188, 190-191 Lincoln (Sandburg), 238 Lindeman, Eduard, 102 Linderman, Robert, 50-51, 55 Link-Belt, 56-57 Lippmann, Walter, 81, 113, 115 Loading efficiency, 52-54 Loose-tight language, 279 Los Alamos National Laboratory, 186-187 Louiasey, Martin, 123 Louisiana Purchase, Lowell, Abbott Lawrence, 141-142, 174 Lowell, Francis Cabot, 16 Lowell, Massachusetts, 17-23 Lowell Laboratory, 66 Luce, Henry, 238 MacArthur, Douglas, 214-215, 218, 220 Machiavelli, 5-6 Machine age See Manufacturing Machine Shop, Age of, 35-39 Magretta, Joan, xvi Malaise, 270 Malinowski, Bronislaw, 132, 143-144 Management and the Worker (Dickson and Roethlisberger), 154-156 Managerial Revolution (Burnham), 240 Manhattan Project, 186-187 Mann, Thomas, 234 Manufacturing, xxi, 7-8 Deming rebuilding Japanese manufacturing, 216-223 managing men versus managing women, 15-31 Mayo's psychotherapeutic ideas, 139 profits driving treatment of employees, 39-40 SQC, 202-207, 211-213 Marxism, 235 Masaryk, Thomas, 233-234 Maslow, Abraham, 193 Mayo, Elton, xxiii-xxiv, xxviii at Harvard Business School, 141-146 Barnard and, 165 birth of organizational behavior, 153-156 decline and fall, 156-159 Drucker's criticism of, 252-253 influence on Barnard, 172 limitations of power, 98-99 loneliness and success in the United States, 136-141 teaching career, 131-136 the Hawthorne experiment, 146-153 versus Sloan, 247 Mayo, George, 131 Mayo, Helen, 129 McCallum, Daniel, 26-27 McConnel, Dorothea, 131 McGregor, Douglas, 193, 265 McNamara, Robert, 251-252 Means, Gardner, 237 Men, managing, 23-31 Mental health and productivity, 139-141 Mergers-and-acquisitions, 80 Merit pay, 227-228 Merriam, Charles, 140, 177-178 Metcalf, Henry, 116 M-form, 243, 248-251, 255 Mica transmitters, 201 Midvale Steel, 35-39, 41, 48-49, 75 Military-style management, 23-31, 43-48 Mind and the World Order (Lewis), 203 Mitchell, William, 131 The Modern Corporation and Private Property (Berle and Means), 237 Monsanto Corporation, 186, 188 Montgomery, James, 21 Moody, Dwight, 168-169 Moral authority, 273-282 Moral behavior, 6, 240 Barnard as president of USO, 181-182 Barnard's advocacy of, 161-167, 173-174 Barnard's bottom-up power theory, 175-179 INDEX myth of moral legitimacy in the workplace, 263-265 white slave owners views of slaves and of themselves, 11-13 Morale, 39, 74, 86-87, 269-273 Morgenthau, Henry, 183 Morris, C W, 203 Motion study, 65, 69, 71-72 Mount Hermon School, 168-169 Movies, 71-72 Muckrakers, 59 Munsterberg, Hugo, 71 My Years with General Motors (Sloan), 248, 250 Nanus, Bert, 275 National Recovery Act, 118 National Research Council, 137-138 Nazis and Nazism, xxv, 235-236, 238, 240, 245, 248, 250 Nelson, Daniel, 48 The New Economics for Industry, Government, Education (Deming), 228-229 New England Butt Company, 70-71 New Jersey Bell, 170-173 New Machine, xxii, 83 New Republic, 113 New School for Social Research, 89 The New State (Follett), 113-114, 127 Noll, Henry, 53-54, 59-60 Nonprofit organizations, xxiv, 258-260 Objectives, management by, 195, 253 OMB See White House Office of Management and Budget Oppenheimer, J Robert, 186-187, 191 Organizational behavior, 129, 153-156, 158-159 Organization Engineering (Dennison), 118 Organizing for Work (Gantt), 87 Ouichi, William, 225 Out of the Crisis (Deming), 226 Outsourcing, 255-256 317 Pareto, Vilfredo, 145, 165 Paris Exposition (1900), 52 Pearson, Egon, 209 Pearson, Karl, 208 PECE See President's Emergency Committee for Employment Peirce, Charles Sanders, 203 Pennock, George, 147-151, 153, 155 Pension funds, 256 Personality, as reason for success, 248 Personality dissociation, 132-133 Peters, Tom, 264-265, 270 Petersen, Donald, 224-225 Philanthropy, 179-185, 257 Physics, 200-201 Piece-rate pay, 36-39, 49-50, 52-54, 70, 152 Pig iron, 52-54, 62 Plantation economy, 2, 10-15 Plato, 5-6 Platt, Boss, 123 Power, xv-xvi, 3, 248-249, 275, 282 The Practice of Management (Drucker), 253 Pragmatism, 203 President's Emergency Committee for Employment (PECE), 93-94 Princeton University, 178 The Principles of Scientific Management (Taylor), 59 Productivity conflicting relay test room data, 155-156 empowering workers through quality production, 207 Gantt Chart's measure of, 85-86 Gilbreth's increasing, 65-70, 73 Hawthorne experiment, 146-153 improving mental health, 139-141 improving work, 265-269 Japan's Quality Control Circles, 222 loading pig iron, 52-54 quality as fad, 226 sacrificing quality for, 213 318 NDEX Taylor's methods of raising, 35-39, 41-50 Profit, xv as discipline for management, 247, 249-250 Bethlehem Steel's overcharging the government, 50 ethics and, 278 learning-curve strategy, 78 working slaves to death, 11 Profound knowledge, 226 Protzman, Charles, 215-216 The Psychology of Management (Gilbreth), 68 Psychotherapy, 132-133, 135-138, 145-146, 150-151 Public Opinion (Lippmann), 115 Quality control See Statistical Quality Control Quality Control Circles, 222, 225-226 Quality management, xxvi, 194, 197 Quincy Massachusetts, 103 Race relations, 183-184, 245 Radcliffe Annex, 105-106, 127 Railroads, 26-28, 58 Ranking, of employees, 227-228 Reagan, Ronald, 223 Red bead exercise, 227-228 Red Scare, 87-88 Reed, Thomas, 109 Reengineering, 266-269 Reengineenng the Corporation (Hammer and Champy), 266 Relay Assembly Test Room, 147-148, 152-156 Relief programs, 161-167 Religion, 235-236, 274 Barnard's conversion, 168-169 Follett, Mary Parker, 104 James's divine self concept, 108-109 Nazism and, 236 Taylor's behavior, 40 USO and, 181, 183-184 Return on investment, 243 Riots, 161-167 Rivets driven, 86-87 Rockefeller, John D Jr., 138-140, 179 Rockefeller Foundation, 137, 143, 154-155, 173, 177, 181 Rocker, John, xiv Roethlisberger, Fritz, 143, 153-156 Roosevelt, Franklin, 177-185 Roosevelt, Theodore, 59, 110 Rowntree, Seebohm, 101, 120 Royce, Josiah, 106-107 Ruml, Beardsley, 138, 140 Russian Revolution, 87-88 Rybacki, Irene, 147-149, 152 Safety issues, 26 Sandburg, Carl, 238 Sarasohn, Homer, 215-216 Sayles Bleacheries, 77 Schwab, Charles, 77 Scientific management, xx, xxi-xxii, xxv, 2-3, 48-50, 58-64 Segregation, 184 Sellers, William, 36 Senge, Peter, 270, 276-277 Shewhart, Walter, 202-209, 211 Shipbuilding, 86 Shoveling, science of, 52 Shupe, Lola, 210 Sidgwick, Henry, 107 Simon, Herbert, 193 Simon, Leslie, 208-209, 211 Skilled labor, 23, 45-48 Skilling, Jeffrey, 278-280 Slater, Samuel, 16 Slavery, xxiii, 2, 9-15 Slide rule, 45 Sloan, Alfred, 244, 246-250, 254 Smith, Adam, 10, 131 Social conscience, 78, 251-252 Social order, 145, 250 Social philosophy, xx, xxiv-xxvi, 193-195, 217-218 INDEX Social reform, Taylorism as, 56-59 Social Science Research Council, 137, 177 Society for the Advancement of Management, 70 SONY Corporation, 215 Soviet Union, xxii, 87-88, 175, 189-191 Spanish-American War, 50, 52 Speaker of the House of Representatives (Follett), 109-110 Speculation, 256 Spengler, Oswald, 142 Springfield Armory, 23-25 SQC See Statistical Quality Control Stanford, Leland, 28 Stanford University, 211-212 State Department, U.S., 214 Statistical Quality Control (SQC), 197, 201-213 Statistics, 200-201 Steam hammer, 41 Stereocyclechronograph, 72 Stevenson, T K., 146, 148 Stock offerings, 170-171 Stoll, Clarence, 153 Stone, Nan, xvi Strikes, labor against Gantt's innovations, 77 automotive industry, 245, 256-257 Barnard's relief works, 166-167 Harpers Ferry Armory, 25-26 rebelling against Gilbreth's piece-rate pay, 69-70 telephone operators, 172-173 women in textile factories, 22 Structural reform, 110 Suppliers, 221, 255 Tabor Company, 56-57 Tarbell, Ida, 59 Taylor, Frederick Winslow, xxi-xxii, xxvi Bethlehem Steel reforms, 48-56 Drucker's respect for, 253 Gantt and, 75-77 319 inventions and innovations at Midvale Steel, 39-48 life and history of scientific management, 33-39 Mayo versus, 150 observing bricklayers, 65 scientific management, struggling to save scientific management, 56-64 the Gilbreths and, 68-72 value of labor, 267-268 wielding top-down power, 31 Taylor Society, 70, 116 Teamwork, 39 Telegraph, 28 Telephones, 146-153, 169-173, 204, 215 Tennessee Valley Authority, 187 Textile industry, 15-23, 77, 139-140 Theory of Business Enterprise (Veblen), 81 Theory Z (Ouichi), 225 Therapeutic supervision, xxiii-xxiv Therbligs, 67 Thomas, Charles, 186, 188 Thompson, Anna Boynton, 106 Thompson, Dorothy, 189 Time magazine, 189, 238 Tokyo Telecommunications, 215 Tolerance, in manufacturing, 202-203 Tool room, 46-47 Top-down power, xxviii, 2, 5-10, 34, 50-56, 78, 222, 231 See also Scientific management Total quality management, 226 Transcontinental railroad, 27-28 Treasury Department, U.S., 183 Treatise on Concrete (Taylor), 68 Truman administration, 185-191 Tyler, John, 25-26 Union labor, 60-63, 117-118, 134, 218, 277 See also Strikes, labor United Nations, 188-190 United Service Organizations (USO), 179-185 320 NDEX Unskilled labor, 30, 45-48, 77 Uranium, 185-191 Urwick, Lyndall, 101, 108, 121, 126-127 USDA See Agriculture Department USO See United Service Organizations Vail, Theodore, 169-170 Values, governing management, xix, 271-272 Van Doren, Carl, 238 Variability, in production, 204-207 Varieties of Religious Experience (James), 274 Veblen, Thorstein, 81, 88-89 Vienna, Austria, 231-233 Vietnam War, 251 Violence, 37-38, 161-167 Volunteerism, 257 Wages contradicting Mayo's findings, 152 Follett's fight for women's wage reform, 112 Hawthorne experiment, 148 Mayo's indifference to workers' needs, 140-141 piece-rate pay, 36-39, 49-50, 52-54, 70, 152 Taylor's wage reforms, 48 women, 119 Wallace, Henry, 208, 238 Wall Street Journal, 238 Waltham factory, 16-17 War Department, U.S., 211-213 War Industries Board, 84-85 Warner, W Lloyd, 143-144, 151, 158 War production, 83-87 Washington, George, 8-9, 24 Waterman, Robert, 270 Watson, J B., 138 The Wealth of Nations (Smith), 131 Weapons production, 82-83, 197, 211-213 Welch, Jack, 255-256 Western Electric Company, 146-153, 201 Wharton School, 138-140 What Management Is (Magretta and Stone), xvi-xvii Whitehead, T N., 144, 158 White House Office of Management and Budget (OMB), 177-178 Whitney, Eli, 10 Whitney, William Collins, 49 Whiz Kids, 251 Wilson, "Engine" Charlie, 248 Wilson, William, 62 Wilson, Woodrow, 62, 83, 110, 125 Winne, Harry, 186-187 Women, 15-23, 146-156 See also Follett, Mary Parker; Gilbreth, Lillian Work, xxvi-xxvii, 265-269 Workday, lengthening, 22, 25 Working conditions, 18-19, 61-62, 146-153, 202 WorldCom, xxix, 278 World War I, xxii, 3, 72-73, 83-84, 134-136,170, 231-232, 234 World War II, xxiv, 98, 178-191, 211-213, 252 Yale University, 200-201 Zero defects, 226 .. .FALSE PROPHETS Also by James Hoopes: Community Denied Consciousness in New England Van Wyck Brooks Oral History FALSE PROPHETS The Gurus Who Created Modern Management and Why Their Ideas Are. .. charge of their departments, their offices, their janitorial closets, and make of them what they willed And they soon grew disturbed at the result, or lack thereof The lucky were those who did... employees, and citizens get what is best from the gurus' ideas and protect us from the worst The gurus have had a big job on their hands, getting freedom-loving Americans to accept management