“In modern industry the managerial groups in many areas rise to a position more significant than that of the owners or the workers. Decision often rests largely in their hands, providing, of course, they are able to point to a generous measure of financial success in their particular enterprise. Wages to the workers, profits to the owners, prices and goods to the consumers--these are allocated in great measure by the managers of the concern and tolerated on the terms just stated.
The managerial group develops also in other social groups as well as in industry. Labor, agriculture, and professional associations tend to set up a strong structure in which the managerial skills and personalities are very prominent. In the ecclesiastical groupings this form of organization has long been evident, not only in the Catholic church but in other creeds and organizations as well.”

Source: Systematic Politics, 1943, p. 162-3 ; as cited in Albert Lepawsky (1949), Administration, p. 15-16

Adopted from Wikiquote. Last update June 3, 2021. History

Help us to complete the source, original and additional information

Do you have more details about the quote "In modern industry the managerial groups in many areas rise to a position more significant than that of the owners or t…" by Charles Edward Merriam?

Charles Edward Merriam8

American political scientist 1874–1953

Alfred D. Chandler, Jr. (1918–2007) American historian

Source: The Visible Hand (1977), p. 1.

“It is not necessary to conclude that the managerial groups have assumed complete domination over the concerns in which they are found, although this may be the fact in various instances, but only to reckon with the undoubted truth that the managerial factor in public and private enterprise has taken on a far more significant role than before.
This new role which has puzzled and alarmed the "owners" in industry and the policy-makers in government is not, however, primarily a power role, but a specialization of the evolving and complex character which we now confront in our civilization.
We may, of course, always raise the question-not in point of fact always raised-of what the relation of these managers is to the t! nds of the state or the ends of other groups and to the special techniques of the particular group and to its special social composition. In the complex power pattern of organization how are these managerial element-related to the organization of the consent of the governed, so vital a force in the life of every form of human association? In the struggle for advantage and mastery these larger factors may, indeed, pass unnoticed, but from the point of view of the student of politics and government, they are of supreme importance in judging the trends and possibilities of managerial evolution in modem society.”

Charles Edward Merriam (1874–1953) American political scientist

Source: Systematic Politics, 1943, p. 163-4 ; as cited in Albert Lepawsky (1949), Administration, p. 15-16

“We wish to control big business so as to secure among other things good wages for the wage-workers and reasonable prices for the consumers.”

Theodore Roosevelt (1858–1919) American politician, 26th president of the United States

Speech at Progressive Party Convention, Chicago http://www.ssa.gov/history/trspeech.html (17 June 1912) <br class="br">1910s <br class="br">Context: We wish to control big business so as to secure among other things good wages for the wage-workers and reasonable prices for the consumers. Wherever in any business the prosperity of the businessman is obtained by lowering the wages of his workmen and charging an excessive price to the consumers we wish to interfere and stop such practices. We will not submit to that kind of prosperity any more than we will submit to prosperity obtained by swindling investors or getting unfair advantages over business rivals.

“Workers work hard enough to not be fired, and owners pay just enough so that workers won't quit.”

Robert T. Kiyosaki book Rich Dad Poor Dad

Source: Rich Dad, Poor Dad

“Good management are rarely overcompensated to an extent that makes any significant difference with respect to the stockholder's position. Poor management are always overcompensated, because they are worth less than nothing to the owners.”

Benjamin Graham (1894–1976) American investor

Source: The Intelligent Investor: The Classic Text on Value Investing (1949), Chapter XIV, Stockholders and Managements, p. 209

“Another reason is because industry is the most important field of human activity, and management is the fundamental element in industry. It is now generally recognized that not bankers, not stockholders, but management is the pivot of business success. It is good management that draws credit, that draws workers, that draws customers. Moreover, whatever changes should come, whether industry is owned by individual capitalists, or by the State, or by the workers, it will always have to be managed. Management is a permanent function of business.”

Mary Parker Follett (1868–1933) American academic

Source: Dynamic administration, 1942, p. xx

“In particular, a free market and capitalism, both subject to state control, are now being permitted and are developing; on the other hand, the socialised state enterprises are being put on what is called a profit basis, i. e., they are being reorganised on commercial lines, which, in view of the general cultural backwardness and exhaustion of the country, will, to a greater or lesser degree, inevitably give rise to the impression among the masses that there is an antagonism of interest between the management of the different enterprises and the workers employed in them.”

Vladimir Lenin (1870–1924) Russian politician, led the October Revolution

“The Role and Functions of the Trade Unions under the New Economic Policy”, LCW, 33, p. 184. Decision Of The C.C., R.C.P.(B.), January 12, 1922. Published in Pravda No. 12, January 17, 1922; Lenin’s Collected Works https://www.marxists.org/archive/lenin/works/cw/pdf/lenin-cw-vol-33.pdf, 2nd English Edition, Progress Publishers, Moscow, 1965, Volume 33, pages 188–196. <br class="br">1920s

“A powerful consumers cooperative movement helps to maintain an equitable balance between prices and profits, and thereby decreases the power of owners and investors.”

Kirby Page (1890–1957) American clergyman

Property (1935)

“We want industry to be in the public sector, to change the power structure of our society…We have not yet carved out of public enterprise a wide enough area of management decision which ought properly to be brought within the ambit of the workers themselves.”

Tony Benn (1925–2014) British Labour Party politician

Speech in Brighton (6 October 1971)
1970s

“Not only have material wealth and the possibilities for freeing mankind definitively from the burden of meaningless, repetitive and mechanical work increased, but so too has the polarization of society between fewer and fewer owners of capital and more and more workers of hand and brain, forced to sell their labour-power to these owners. The concentration of wealth and power in a small number of giant industrial and financial corporations has brought with it an increasingly universal struggle between Capital and Labour.”

Ernest Mandel (1923–1995) Belgian economist and Marxist philosopher

Introduction to Capital. Introduction to volume 1 (1976)

Help us to complete the source, original and additional information

Charles Edward Merriam8

Related quotes

Related topics