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257

12. The Modern Corporation

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terms
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notes

Braverman, H. (1974). 12. The Modern Corporation. In Braverman, H. Labor and Monopoly Capital: The Degradation of Work in the Twentieth Century. Monthly Review Press, pp. 257-270

257

The scale of capitalist enterprise, prior to the development of the modern corporation, was limited by both the availability of capital and the management capacities of the capitalist or group of partners. These are the limits set by personal fortunes and personal capabilities. It is only in the monopoly period that these limits are overcome, or at least immensely broadened and detached from the personal wealth and capacities of individuals. The corporation as a form severs the direct link between capital and its individual owner, and monopoly capitalism builds upon this form. Huge aggregates of capital may be assembled that far transcend the sum of the wealth of those immediately associated with the enterprise. And operating control is vested increasingly in a specialized management staff for each enterprise. Since both capital and professional management—at its top levels—are drawn, by and large, from the same class, it may be said that the two sides of the capitalist, owner and manager, formerly united in one person, now become aspects of the class. It is true that ownership of capital and the management of enterprises are never totally divorced from each other in the individuals of the class, since both remain concentrated in a social grouping of extremely limited size: therefore, as a rule, top managers are not capital-less individuals, nor are owners of capital necessarily inactive in management. But in each enterprise the direct and personal unity between the two is ruptured. Capital has now transcended its limited and limiting personal form and has entered into an institutional form. This remains true even though claims to ownership remain, in the last resort, largely personal or familial in accordance with the rationale and juridical structure of capitalism.

—p.257 by Harry Braverman 22 hours ago

The scale of capitalist enterprise, prior to the development of the modern corporation, was limited by both the availability of capital and the management capacities of the capitalist or group of partners. These are the limits set by personal fortunes and personal capabilities. It is only in the monopoly period that these limits are overcome, or at least immensely broadened and detached from the personal wealth and capacities of individuals. The corporation as a form severs the direct link between capital and its individual owner, and monopoly capitalism builds upon this form. Huge aggregates of capital may be assembled that far transcend the sum of the wealth of those immediately associated with the enterprise. And operating control is vested increasingly in a specialized management staff for each enterprise. Since both capital and professional management—at its top levels—are drawn, by and large, from the same class, it may be said that the two sides of the capitalist, owner and manager, formerly united in one person, now become aspects of the class. It is true that ownership of capital and the management of enterprises are never totally divorced from each other in the individuals of the class, since both remain concentrated in a social grouping of extremely limited size: therefore, as a rule, top managers are not capital-less individuals, nor are owners of capital necessarily inactive in management. But in each enterprise the direct and personal unity between the two is ruptured. Capital has now transcended its limited and limiting personal form and has entered into an institutional form. This remains true even though claims to ownership remain, in the last resort, largely personal or familial in accordance with the rationale and juridical structure of capitalism.

—p.257 by Harry Braverman 22 hours ago
258

To belong to the capitalist class by virtue of ownership of capital, one must simply possess adequate wealth; that is the only requirement for membership in that sense. To belong to the capitalist class in its aspect as the direct organizer and manager of a capitalist enterprise is another matter. Here, a process of selection goes on having to do with such qualities as aggressiveness and ruthlessness, organizational proficiency and drive, technical insight, and especially marketing talent. Thus while the managerial stratum continues to be drawn from among those endowed with capital, family, connections, and other ties within the network of the class as a whole, it is not closed to some who may rise from other social classes, not through the acquisition of wealth on their part but through the co-optation of their talent on the part of the capitalist organization which they serve. In this case the ownership of capital later follows from the managerial position, rather than the other way around. But this is exceptional, not just because top management is drawn as a rule from within the class, but also because the stratum as a whole is not a large one.

—p.258 by Harry Braverman 21 hours, 59 minutes ago

To belong to the capitalist class by virtue of ownership of capital, one must simply possess adequate wealth; that is the only requirement for membership in that sense. To belong to the capitalist class in its aspect as the direct organizer and manager of a capitalist enterprise is another matter. Here, a process of selection goes on having to do with such qualities as aggressiveness and ruthlessness, organizational proficiency and drive, technical insight, and especially marketing talent. Thus while the managerial stratum continues to be drawn from among those endowed with capital, family, connections, and other ties within the network of the class as a whole, it is not closed to some who may rise from other social classes, not through the acquisition of wealth on their part but through the co-optation of their talent on the part of the capitalist organization which they serve. In this case the ownership of capital later follows from the managerial position, rather than the other way around. But this is exceptional, not just because top management is drawn as a rule from within the class, but also because the stratum as a whole is not a large one.

—p.258 by Harry Braverman 21 hours, 59 minutes ago
265

The overall purpose of all administrative controls is, as in the case of production controls, the elimination of uncertainty and the exercise of constraint to achieve the desired result.* Since markets must remain the prime area of uncertainty, the effort of the corporation is therefore to reduce the autonomous character of the demand for its products and to increase its induced character. For this purpose, the marketing organization becomes second in size only to the production organization in manufacturing corporations, and other types of corporations come into existence whose entire purpose and activity is marketing.

These marketing organizations take as their responsibility what Veblen called “a quantity-production of customers.” His description of this task, while couched in his customarily sardonic language, is nevertheless a precise expression of the modern theory of marketing: “There is, of course, no actual fabrication of persons endowed with purchasing power ad hoc…; nor is there even any importation of an unused supply of such customers from abroad,—the law does not allow it.” Rather, as he points out, there is “a diversion of customers from one to another of the competing sellers.” But, from the point of view of each seller, this appears as “a production of new customers or the upkeep of customers already in use by the given concern. So that this acquisition and repair of customers may fairly be reckoned at a stated production-cost per unit; and this operation lends itself to quantity production.” Veblen goes on to point out that “the fabrication of customers can now be carried on as a routine operation, quite in the spirit of the mechanical industries and with much the same degree of assurance as regards the quality, rate and volume of output; the mechanical equipment as well as its complement of man-power employed in such production of customers being held to its work under the surveillance of technically trained persons who might fairly be called publicity engineers.”8

—p.265 by Harry Braverman 21 hours, 58 minutes ago

The overall purpose of all administrative controls is, as in the case of production controls, the elimination of uncertainty and the exercise of constraint to achieve the desired result.* Since markets must remain the prime area of uncertainty, the effort of the corporation is therefore to reduce the autonomous character of the demand for its products and to increase its induced character. For this purpose, the marketing organization becomes second in size only to the production organization in manufacturing corporations, and other types of corporations come into existence whose entire purpose and activity is marketing.

These marketing organizations take as their responsibility what Veblen called “a quantity-production of customers.” His description of this task, while couched in his customarily sardonic language, is nevertheless a precise expression of the modern theory of marketing: “There is, of course, no actual fabrication of persons endowed with purchasing power ad hoc…; nor is there even any importation of an unused supply of such customers from abroad,—the law does not allow it.” Rather, as he points out, there is “a diversion of customers from one to another of the competing sellers.” But, from the point of view of each seller, this appears as “a production of new customers or the upkeep of customers already in use by the given concern. So that this acquisition and repair of customers may fairly be reckoned at a stated production-cost per unit; and this operation lends itself to quantity production.” Veblen goes on to point out that “the fabrication of customers can now be carried on as a routine operation, quite in the spirit of the mechanical industries and with much the same degree of assurance as regards the quality, rate and volume of output; the mechanical equipment as well as its complement of man-power employed in such production of customers being held to its work under the surveillance of technically trained persons who might fairly be called publicity engineers.”8

—p.265 by Harry Braverman 21 hours, 58 minutes ago

(noun) an intervening space

269

government fills the interstices left by these prime decisions.

—p.269 by Harry Braverman
notable
21 hours, 58 minutes ago

government fills the interstices left by these prime decisions.

—p.269 by Harry Braverman
notable
21 hours, 58 minutes ago