Home Organizational Psychology Leadership Leading into the Future IV: Order, Chaos and the Three Societies

Leading into the Future IV: Order, Chaos and the Three Societies

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The new industrial workers discovered a new commodity: money. They soon substituted wages for the production (or bartering) of their own food or commodities. With the shift to a money-based economy came the vast expansion of financial institutions. While banks exist in premodern societies (primarily to serve the upper class), they play a much larger role in modern societies, serving not only as a safe repository for saved money, but also as a source of unearned money. The modern worker soon discovered that banks would enable them to spend money that they had not yet earned and to take out long-term loans to make major purchases (especially homes). Modern societies inevitably become communities of debt and money becomes the most valued entity in these societies.

Industrial workers also substitute employment in modern organizations for their premodern reliance on the extended family. The organization becomes their new source of security and they look to their work site for friendship and a sense of purpose and community. Increasingly, the modern worker also began to look to the government for basic social services: education, health, retirement. Thus, we find in the modern society not only expansion in the size of private industrial organizations, but also in the size and scope of public institutions. Public education, social welfare and medical services for the elderly became the givens of modern societies. Citizens no longer looked primarily to their family or to their church or other philanthropic organizations for support. Rather, government became the new guarantor of health and happiness. Government soon also entered the much more controversial arenas of organizational operations (labor law and affirmative action), family life (protection of children against abuse) and private morality (the right for women to abort an unborn child).

With mass production came a shift in focus from quality to quantity. Industrialization (and an accompanying capacity for widespread distribution of products) shifted the focus of economics to productivity. Industries (and the workers in these industries) were considered successful if they were highly productive. High levels of productivity in turn led to the need for marketing and a new emphasis on sales. Profit could only be derived from large volume sales (to make up for the initial costs associated with purchase of the mass production equipment). Productivity without sales yielded nothing but a costly surplus of goods. The modern era (in conjunction with the move to suburbia) brought about the department store, the franchise fast food industry, and the abiding concern about crab grass and lawn fertilizers. Thus, the industrial revolution became a Commercial Revolution.

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