Monday, December 19, 2011

David Warsch — The Making of the Managerial Class

Warsh reflects on The Roots, Rituals, and Rhetorics of Change: North American Business Schools after the Second World War, by Mie Augier and James G. March (Stanford Business Books, 2011).

Read it at CounterPunch
How Business Schools Came to Be the Way They Are
by David Warsh

Understanding managerialism is essentially for approaching institutional economics. This is the managerial age, and managerialism has shaped contemporary institutional arrangements and practice.

Managerialism results in a fallacy of composition. When most managers act in the same way by following common principles, then what might benefit one or a few firms if practiced is reversed when almost all firms do the same thing. Randy Wray considers rampant managerialism in finance as one of the chief contributors to institutional dsyfunctionality and systemic risk.

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