Neil Fligstein: Controller

Neil Fligstein is American sociologist. Explore interesting quotes on controller.
Neil Fligstein: 80   quotes 0   likes

“A conception of control is simultaneously a worldview that allows actors to interpret the actions of others and a reflection of how the market is structured.”

Neil Fligstein

Source: Markets as politics: A political-cultural approach to market institutions, 1996, p. 658
Context: Conceptions of control refer to understandings that structure perceptions of how a market works and that allow actors to interpret their world and act to control situations. A conception of control is simultaneously a worldview that allows actors to interpret the actions of others and a reflection of how the market is structured. Conceptions of control reflect market-specific agreements between actors in firms on principles of internal organization (i. e., forms of hierarchy), tactics for competition or cooperation, and the hierarchy or status ordering of firms in a given market. The state must ratify, help to create, or at the very least, not oppose a conception of control.

“The marketing director in each department reported directly to the department head and controlled market research and sales. More important, the marketing manager was also responsible for new product development, requesting production schedules, and controlling finished goods inventory.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 234

“All large organizations have an internal power struggle over the goals and resources of the organization…. In the largest firms, there are two bases of control : formal ownership and authority. Those who own the firm control by virtue of ownership. Authority relations embedded in the organizational structure legitimate how managers can control organizations.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 10 ; As cited in: François L'Italien, BÉHÉMOTH CAPITAL. Contribution à une théorie dialectique de la financiarisation de la grande corporation. Université Laval, 2012. p. 147 (Many of the following quotes came from this source)

“The finance conception of the modern corporation, which currently dominates, emphasizes control through the use of financial tools which measure performance according to profit rates. Product lines are evaluated on their short-run profitability and important management decisions are based on the potential profitability of each line. Firms are viewed as collections of assets earning differing rates of return, not as producers of given goods. The firm is not seen as being a member of only one industry. Consequently if the prospect of an industry in which it participates declines, the firm disinvests. The problem for management from this perspective is to maximize short-run rates of return by altering product mix, thereby increasing shareholder equity and keeping the stock price high”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 15

Problem , Decision

“The basic insight of the finance conception was that such a firm could be more tightly controlled by strict accounting. This progression does not imply, however, that one conception of control caused the emergence of its successor. New conceptions of control evolved out of key interactions among firms and between firms and the state.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 16

“The power struggle within the firm determines which conception of control will dominate and how that conception will be translated into concrete strategies. The winners of this struggle will push the organization into a certain direction and maintain that direction as long as their strategies bring positive results.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 17

“The organizational fields of the largest firms continued to be unstable. There were no accepted rules to define how firms could avoid destructive competition, so they attempted to control their markets through various aggressive trade tactics, continued mergers, cartels, getting the federal government to guarantee profitability.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 89

“I claim that the central goal of managers in the past hundred years has been to make sure their firms survived. To promote survival they proposed various forms of control, both inside and outside the firm. Internally, control was oriented to ensuring that organizational resources were deployed so that top management could be confident that their directives were being executed. Externally, this control was oriented toward establishing stable relations between competitors to promote the survival of their organizations.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 5

Confidence , Past

“The leaders of the large firms dominated by the manufacturing conception saw the key problem as low prices. This meant that they were intent on controlling prices by cutting production. But once prices were stabilized, they were cautious about increasing production for fear that prices would again collapse. Since their competitors had roughly equal production capacities and costs, all would lose by too rapid an increase in production.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 117

Fear , Problem

“Organizational theories have three origins: Max Weber’s original work on bureaucracies which came to define the theory for sociologists, a line of theory based in business schools that had as its focus, the improvement of management control over the work process, and the industrial organization literature in economics. Unlike many fields in sociology, organizational theory has been a multidisciplinary affair since World War II, and it is difficult to understand its central debates without considering its linkages to business schools and economics departments.”

Neil Fligstein

Source: Organizations: Theoretical Debates and the Scope of Organizational Theory, 2001, p. 1

War , World , School , Literature

“Once in place as control perspectives, they are widely shared ways of reducing complexity of the world. They come into the existence in a piecemeal fashion and are articulated by representatives of the largest, most successful firms. They are propagated by the business press and informal links between organizations and then are supported by those organizations and organizational fields.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 12

World , Way , Fashion , Business

“Property rights, governance structures and rules of exchange are arenas in which modern states establish rules for economic actors. States provide stable and reliable conditions under which firms organize, compete, cooperate and exchange. The enforcement of the laws affects what conceptions of control can produce stable markets. There are political contests over the content of laws, their applicability to given firms and markets, and the extent and direction of state intervention into economy. Such laws are never neutral. They favor certain groups of firms.”

Neil Fligstein

Source: Markets as politics: A political-cultural approach to market institutions, 1996, p. 657

Law

“The main problem actors face is uncertainty caused by difficulties in finding suppliers and customers and in controlling their own firm.”

Neil Fligstein

Source: The architecture of markets, 2001, p. 16

Problem

“The purpose of the large horizontal (same-product) mergers was to reduce the number of plants and, hence, control production enough to insure a reasonable rate of profit. Mergers would allow a newly created large firm to produce full-time in its most efficient plants, and thereby maintain prices, production, and profits.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 55

Time

“They are the basic mechanism of control of the external environment available to managers and entrepreneurs. Organizational fields are not generally benign and cooperative arrangements held in place by a sense of duty or honor the rhetoric and ideology of their proponents might lead one to think so. Instead, they are set up to benefit their most powerful members.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 6

Thinking , Sense

“A leading firm that controlled a large portion of the output of a given organizational field operated as a price setter. To set prices, the actors in that firm had to control their suppliers and marketing in order to increase their own efficiency and have the potential to cut off other firms from supplies or customers.”

Neil Fligstein

Source: The transformation of corporate control, 1993, p. 89