Changes in Capitalism: 1960s vs 1990s

This text tries to make known the changes that capitalism has had in the last thirty years, second the opinion of several authors. It makes a comparison between different texts of the 1960s, where  family capitalism is criticized, and the texts of the 1990s, where there are already large planned organizations, hierarchies.

Objective Management in 1960

In relation to Objective Management in 1960, two major problems arise:

• Strong dissatisfaction on the part of the “Cadres”
• Management problems that are linked to the giant size of companies.

Cadres, it is the meaning of the value they have for a company. On the one hand, we have the role of “technical expert” and on the other the “relay management” the transmission of orders from above and the adoption of problems from below. They aspire to share the power of decision, to be more autonomous, to be informed of the progress of business, etc.

Objective Management in 1990s

In the 1990s, with respect to Objective Management, they refer to the “Cadres” as a new social body that accompanies the growth of companies. The separation of property would not matter, until thirty years later. This was because the desire for a lack of interest in family capitalism had been fulfilled, and it was no longer important to define what was the most modern category.

Managers added more levels of hierarchy, without giving any kind of power. In addition, big business inspires fear, as it is presented as a major factor threatening freedom in democratic countries. There is a view that sees the capitalists with points in common with a fascist enterprise. They propose as solutions to these problems: decentralization, meritocracy and management by objectives.

New Spirit of Capitalism

With respect to the new spirit of capitalism, the authors describe two new methods of management. Management by objectives serves to give the Cadres the autonomy they want and to decentralize decision-making, as this will benefit the interested.

All Cadres are autonomous but still controlled: on the one hand, by job descriptions which allow the detailed specification of the autonomy granted and, setting objectives in line with the general policy of the enterprise.

Now, the “Cadres” will be evaluated by the degree of success in their work. They are given greater autonomy, given resources and monitored for the overall outcome. In this way, Cadres have autonomy and companies have a motivated workforce. Promotion will be given to those who meet its objectives.

The new evaluation systems, have the same objective of eliminating preference for seniority reasons, which rewards only loyalty and not efficiency, and also reducing the role played by social relations in professional success.

Legitimization of the “Cadres”

On the other hand, in the 1960s, the legitimization of the “Cadres” had a negative point the delegitimization of traditional employers with criticism of their authoritarianism and irresponsibility. Especially for small employers.