"The Visible Hand: The Managerial Revolution in American Business" by Alfred D. Chandler Jr.
Alfred D. Chandler Jr.'s "The Visible Hand" is the culmination of one of the most unique scholarly projects in American historiography. One of the first academic historians to be based in a business school, the Harvard professor's data-driven approach was inspired by his training in sociologist Talcott Parsons' methodology of structural functionalism, which holds that society as a complex system oriented toward stability. However, his inheritance of the papers of distant ancestor Henry Varnum Poor, who published a wellspring of empirical arcana in the American Railroad Journal from 1849 to 1861 before co-founding the Standard & Poors financial services firm, proffered both a viable dissertation topic and a career-spanning leitmotif. Because stability-seeking businesses fundamentally were reactive and risk-averse in their orientation, Chandler contended, the Industrial Revolution mitigated the influence of owners and market forces by situating a managerial class as the interlocutor in the strategic process, leading to the baroque, "M-form" management structure of General Motors that privileged division-level autonomy and C-suite central planning. After delineating the basic tenets of his thesis in the case-driven "Strategy and Structure" (1962), he employed "The Visible Hand" as a prequel, charting the convergent influence of railroads, telegraphy, mass production and scientific management (in particular, the uniquely American innovation of organizational charts) on the behemoths chronicled in the earlier book. In summation: "Effective coordination of throughput required the placing of vigorous management controls over [...] despots." Although some of his proteges (including Apple's Richard Tedlow and Columbia's Richard John) have cultivated significant scholarly profiles in their own right, the Chandlerist center of business history would not hold by the turn of the century; in the years following the publication of "The Visible Hand," the mien of corporate administration shifted from the forces examined in his meticulous industrial research to entrepreneurship, deindustrialization and the maximization of shareholder value through deregulation and financial engineering, all developments that he denigrated.