Home Organizational Psychology Leadership Leading into the Future V: Transition in Organizational Forms and Roles

Leading into the Future V: Transition in Organizational Forms and Roles

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Capital and Worker Values

Land and other natural resources (for example, gold, oil, and timber) are the dominant and most tangible forms of capital in the premodern era. Ancestry and reputation are two less tangible, but equally as important forms of premodern capital. The divine right of kings prevails. The Catholic Church has emphasized property and prohibited the use of money to make money, hence one could not charge interest on a loan. Thus, an emphasis was placed on property rather than money. Workers, in turn, tended to focus on shelter, food and water—and quality of life. They readily conformed because they looked outside themselves for the essentials of life. They looked toward people in positions of authority to provide both guidance and sustenance and asked for little in return.

The modern forms of capital, by contrast, have been money and buildings. Reputation and ancestry have become less important. The new wealth and new bourgeoisie are more liquid and more volatile. Rich men come and go. This new form of capitalism was supported by Calvinistic doctrine and by the Protestant churches that became more dominant and influential (at least in middle and upper classes) during the modern era. One’s worldly success (as manifest in the non-conspicuous accumulation of monetary wealth) is a sign of one’s predestined salvation. Thus, poverty is considered in some very basic sense to be sinful and a sign of one’s damnation, as is laziness and a questioning attitude about the dominant social order. This Protestant Ethic has dominated European-American notions about the meaning of work and capital for several centuries.

Modern workers no longer owned the business in which they worked, nor did they have a close familial (paternal) relationship with the person who did own the business in which they worked. Workers were now confronted with large, faceless corporations in which responsibility for worker welfare was absent or at best diffuse. As Marx suggested (at the start of the Modern era in Europe), workers were now alienated from the profits for which they toil. They no longer “owned” the products and services they were employed to provide. Thus, the primary motivators for workers in modern organization concerned assurance regarding job, wages and health. Modern workers wanted three things: job security, adequate pay and benefits (a living wage) and a safe work environment. They often unionized in order to obtain assurance in these three areas.

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