The Concept Of The Corporation

( 2 )

Overview

Concept of the Corporation was the first study ever of the constitution, structure, and internal dynamics of a major business enterprise. Basing his work on a two-year analysis of the company done during the closing years of World War II, Drucker looks at the General Motors managerial organization from within. He tries to understand what makes the company work so effectively, what its core principles are, and how they contribute to its successes. The themes this volume addresses go far beyond the business ...

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Overview

Concept of the Corporation was the first study ever of the constitution, structure, and internal dynamics of a major business enterprise. Basing his work on a two-year analysis of the company done during the closing years of World War II, Drucker looks at the General Motors managerial organization from within. He tries to understand what makes the company work so effectively, what its core principles are, and how they contribute to its successes. The themes this volume addresses go far beyond the business corporation, into a consideration of the dynamics of the so-called corporate state itself.

When the book initially appeared, General Motors managers rejected it as unfairly critical and antibusiness. Yet, the GM concept of the corporation and its principles of organization later became models for organizations worldwide. Not only businesses, but also government agencies, research laboratories, hospitals, and universities have found in Concept of the Corporation a basis for effective organization and management.

Because it offers a fundamental theory of corporate goals, this book is a valuable resource for business professionals and organization analysts. It will also be of interest to students and professionals in economics, public administration, and political science. Professional and technical readers who admire Peter Drucker’s work will want to be certain this volume is in their personal library. At a time when everything from the size to the structure of corporations is being questioned, this classic should prove a valuable guide.

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Editorial Reviews

From the Publisher

"Concept of the Corporation is a valuable text for anyone teaching business history (broadly defined) or the history of political economy. Drucker describes one of the most important American companies at the apex of its success and elucidates the context in which it operated: labor relations, politics, regulation, and even the impact of war. At the same time, Drucker is interested in the larger issues affecting company operations, and he discusses them in a clear, often original way, with an appealing mix of pragmatism and optimism."

—Wyatt Wells, Business History Review

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Product Details

  • ISBN-13: 9781560006251
  • Publisher: Transaction Publishers
  • Publication date: 6/8/1993
  • Edition description: Revised
  • Pages: 360
  • Sales rank: 350,097
  • Product dimensions: 6.00 (w) x 9.00 (h) x 0.80 (d)

Meet the Author

Peter F. Drucker (1909-2005) is known by many as the father of modern management. He was Clarke Professor of Social Science and Management at Claremont Graduate School in California and was a recipient of the Presidential Medal of Freedom. He is the author of over thirty-five books, including The Ecological Vision, The Concept of the Corporation, and A Functioning Society.

Peter F. Drucker (1909-2005) is known by many as the father of modern management. He was Clarke Professor of Social Science and Management at Claremont Graduate School in California and was a recipient of the Presidential Medal of Freedom. He is the author of over thirty-five books, including The Ecological Vision, The Concept of the Corporation, and A Functioning Society.

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Table of Contents

Introduction to the Transaction Edition
Preface to the 1983 Edition
Preface to the Original Edition
I Capitalism in One Country 1
II The Corporation as Human Effort 20
1 Organization for Production 20
2 Decentralization 41
3 How Well Does It Work? 72
4 The Small Business Partner 98
5 Decentralization as a Model? 115
III The Corporation as a Social Institution 130
1 The American Beliefs 130
2 The Foreman: The Industrial Middle Class 163
3 The Worker 176
IV Economic Policy in an Industrial Society 209
1 The "Curse of Bigness" 209
2 Production for "Use" or for "Profit"? 230
3 Is Full Employment Possible? 264
Epilogue (1983) 291
Index 323
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  • Anonymous

    Posted June 15, 2007

    A reviewer

    FOCAL POINTS OF BOOK: American society-and society in all other advanced countries as well as from Japan to Soviet Russia-has increasingly become a society of big, organized power centers: government agencies and hospitals, large universities and research laboratories, trade unions( which by the way were fundamental in building America's middle class, and they have a vital role today in preserving the American dream for working families) and armed services, in addition to the Big Businesses. THE CORPORATION AS HUMAN EFFORT Harmony Out Of Conflict: Harmony can always be achieved if there is at least one area where the self-interest of the one is identical with the self-interest of the other. Then cooperation can be anchored in the joint pursuit of this common interest, to which the other and divergent interests can be subordinated. THE CORPORATION AS A SOCIAL INSTITUTION The American Beliefs: It is, for instance, certainly true that the United States will not be a perfect democracy as long as Social, Economic and Justice gaps continue to exist. Are Opportunities Shrinking? However great the advantage which the character of modern industrial enterprise and of modern technology gives to the formally trained man over the man who has picked up his education in the shop or office, we certainly suffer from a tremendous overvaluation of the formal education offered today and of the diploma as a proof of attainment or ability. Opportunities to acquire a formal education must be provided by those willing and able to carry the extra work involved but not able to carry the financial burden of an education through the normal channels. Dignity and Status in Industrial Society: The essence of 'independence' is a social and psychological satisfaction which cannot be replaced by economic satisfaction alone. It is perhaps the biggest job of the modern corporation as the representative institution of industrial society to find a synthesis between justice and dignity, between equality of opportunities and social status and function. Assembly Line Monotony: But real creative ability-ability to live largely in a world based on ones own inner resources-is the rarest quality in the world. For as very old wisdom has it, a man who works only for a living and not for the sake of the work and of its meaning is not and cannot be a citizen. The Wage Issue: Wages are determined not by the policies of labor and management but by objective economic facts of productive efficiency of labor, price for the product, and the size of its market at a given price. This means that wages are capable by and large of being determined objectively they should not and need not be a contentious issue. But unless two contending parties of equal weight have a principle decision in common, their bargaining is not likely to end in peace and harmony but in deadlock, frustration, mutual recrimination, and bitterness. Economic Policy In an Industrial Society The ' Curse Of Bigness': Whatever the terminology, the large corporation is a tool and organ of society. Finally, there is the question whether the free enterprise system, an economy based on politically uncontrolled corporations, motivated by the desire to make profits, and regulated by a competitive market, can satisfy society's demand for stable, expanding employment- politically the most important question today. Production for 'Use or for 'Profit'?: Profit is thus an inevitable risk premium and the basis of all economic activity, whether capitalist, socialist, or cave man. The sole source of capital is profit. Capital formation will have to be based on the one resource which, instead of being destroyed by being used, reproduces itself, namely profit. The Lust For Power: We must harness the lust for power to a social purpose. Is Full Employment Possible?: Expansion The main source of future expansion must

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  • Anonymous

    Posted May 15, 2007

    Classic!

    One of the top ten best business books of all time. Its truly a classic!

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