Alfred Chandler's Managerial Revolution

In Morgen Witzel & Malcolm Warner (eds.), The Oxford Handbook of Management Theorists. Oxford University Press. pp. 361 (2013)
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Abstract

This article discusses Alfred Chandler’s intellectual journey, in which he dedicated himself to understanding the role of management in developing and utilizing productive resources. During the first part of that journey, from the 1950s through the 1980s, Chandler viewed the role of management almost entirely in terms of the utilization of productive resources, as evidenced in Strategy and Structure and The Visible Hand. During the 1980s, as Chandler wrote Scale and Scope, his attention shifted from the utilization to the development of productive resources. He delved into organization and competition in the consumer electronics, computers, chemicals, and pharmaceuticals industries. An understanding of the dynamics of industrial capitalism requires, as Chandler ultimately showed, a theoretical analysis of the role of management in ensuring both the development and utilization of productive resources. This dual focus is important for business strategy, organizational structure, and industrial finance.

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