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Fayol's 14 Principles of Management

Fayol's principles are listed below:

1. Division of Work  – When employees arespecialized o!tp!t can increase beca!se they becomeincreasingly s"illed and e#cient.

$. Authority – Managers m!st ha%e the a!thority togi%e orders b!t they m!st also "eep in mind that witha!thority comes responsibility.

&. Discipline – iscipline m!st be !pheld in

organizations b!t methods for doing so can %ary.4. Unity of Command – (mployees sho!ld ha%e only

one direct s!per%isor.). Unity of Direction – *eams with the same ob+ecti%e

sho!ld be wor"ing !nder the direction of one manager!sing one plan. *his will ens!re that action is properlycoordinated.

,. Subordination of Individual Interests to the

General Interest – *he interests of one employeesho!ld not be allowed to become more important thanthose of the gro!p. *his incl!des managers.

-. Remuneration – (mployee satisfaction depends onfair rem!neration for e%eryone. *his incl!des nancialand non/nancial compensation.

0. Centralization – *his principle refers to how closeemployees are to the decision/ma"ing process. t isimportant to aim for an appropriate balance.

2. Scalar Chain – (mployees sho!ld be aware ofwhere they stand in the organization's hierarchy orchain of command.

13. rder – *he wor"place facilities m!st be clean tidyand safe for employees. (%erything sho!ld ha%e itsplace.

11. !"uity – Managers sho!ld be fair to sta at alltimes both maintaining discipline as necessary and

acting with "indness where appropriate.

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1$. Stability of #enure of $ersonnel – Managerssho!ld stri%e to minimize employee t!rno%er. Personnelplanning sho!ld be a priority.

1&. Initiative – (mployees sho!ld be gi%en the

necessary le%el of freedom to create and carry o!tplans.

14. !sprit de Corps – 5rganizations sho!ld stri%e topromote team spirit and !nity.

Fayol's 6i7 F!nctions of Management

Fayol's si7 primary f!nctions of management which go

hand in hand with the Principles are as follows:

1. Forecasting.

$. Planning.

&. 5rganizing.

4. 8ommanding.

). 8oordinating.

,. 8ontrolling.

9ey Points

enri Fayol's ;14 Principles of Management; ha%e been asignicant in<!ence on modern management theory. ispractical list of principles helped early $3th cent!ry

managers learn how to organize and interact with theiremployees in a prod!cti%e way.

=ltho!gh the 14 Principles aren't widely !sed today theycan still oer g!idance for today's managers. Many of theprinciples are now considered to be common sense b!tat the time they were re%ol!tionary concepts fororganizational management.

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 *his site teaches yo! the s"ills yo! need for a happy ands!ccessf!l career> and this is +!st one of many tools andreso!rces that yo!'ll nd here at Mind *ools. 6!bscribe too!r free ne%sletter or &oin the 'ind #ools Club and

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Henri FayolFrom Wikipedia, the free encyclopediaFor the French singer, see Lily Fayol .

Henri Fayol

Henri Fayol (Istanbul, 29 July 181 ! "aris, 19 #o$ember 192%& 'as a French mininenineer  and director of mines 'ho de$eloped a eneral theory of business administration that isoften called Fayolism)*1+ He and his colleaues de$eloped this theory independently of scientificmanaement but rouhly contemporaneously) ike his contemporary,Frederick Winslo' -aylor , he is 'idely ackno'leded as a founder of modern manaement methods)

Contents

  *hide+

• 1 .ioraphy

• 2 Work

o 2)1 /inin enineerin

o 2)2 Fayolism

2)2)1 Functions of manaement

2)2)2 "rinciples of manaement

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• 0 "ublications

• eferences

• % 3ternal links

Biography *edit+

Fayol 'as born in 181 in a suburb of Istanbul, 4ttoman mpire) His father (an enineer& 'asappointed superintendent of 'orks to build 5alata .ride, 'hich brided the 5olden Horn)*1+ -hefamily returned to France in 186, 'here Fayol raduated from the minin academy 7cole#ationale up:rieure des /ines7 inaint;tienne in 18<=)

In 18<= at the ae of nineteen Fayol started the minin company named 7>ompanie de>ommentry;Fourchambault;?eca@e$ille7 in >ommentry as the minin enineer) In 1888 hebecame manain director, 'hen the mine company employed o$er 1=,=== people, and heldthat position o$er 0= years until 1918) .y 19== the company 'as one of the larest producers ofiron and steel in France and 'as rearded as a $ital industry) *1+

.ased larely on his o'n manaement e3perience, he de$eloped his concept of administration)In 191< he published these e3perience in the book 7Administration Industrielle et 5:n:rale7, atabout the same time as Frederick Winslo' -aylor  published his Principles of ScientificManagement 

 Work *edit+

FayolBs 'ork became more enerally kno'n 'ith the 199 publication of General and industrialadministration,*2+ the nlish translation*0+ of the 191< article 7Administration industrielle et:n:rale7) In this 'ork Fayol presented his theory of manaement, kno'n as Fayolism) .eforethat Fayol had 'ritten se$eral articles on minin enineerin, startin in the 186=s, and somepreliminary papers on administration)*+

Mining engineering*edit+

tartin in the 186=s, Fayol 'rote a series of articles on minin subCects, such as on thespontaneous heatin of coal (1869&, the formation of coal beds (1886&, the sedimentation ofthe >ommentry, and on plant fossils (189=&,

His first articles 'ere published in the French Bulletin de la Société de l'Industrie minérale, andbeinnin in the early 188=s in the >omptes rendus de lBAcad:mie des sciences, theproceedins of the French Academy of ciences)

Fayolism*edit+Main article Fayolism

FayolBs 'ork 'as one of the first comprehensi$e statements of a eneral theory of manaement)*%+ He proposed that there 'ere fi$e primary functions of manaement and fourteen principles ofmanaement*<+

Functions of management*edit+

1) "lannin*6+

2) 4rani@in

0) eadin

) >ontrollin

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%) >oordinatin

-he control function, from the French contr!ler , is used in the sense that a manaer must recei$efeedback about a process in order to make necessary adCustments and must analyse thede$iations) ately scholars of manaement combined the commandin and coordinatin functioninto one leadin function)

Principles of management*edit+

1) ?i$ision of labor ; -he di$ision of 'ork is the course of tasks assined to, and completedby, a roup of 'orkers in order to increase efficiency) ?i$ision of 'ork, 'hich is alsokno'n as di$ision of labor, is the breakin do'n of a Cob so as to ha$e a number ofdifferent tasks that make up the 'hole) -his means that for e$ery one Cob, there can beany number of processes that must occur for the Cob to be complete)

2) Authority ; /anaers must be able to i$e orders) Authority i$es them this riht) #otethat responsibility arises 'here$er authority is e3ercised)

0) ?iscipline ; mployees must obey and respect the rules that o$ern the orani@ation)5ood discipline is the result of effecti$e leadership)

) Dnity of command ; $ery employee should recei$e orders from only one superior)

%) Dnity of direction ; ach roup of orani@ational acti$ities that ha$e the same obCecti$eshould be directed by one manaer usin one plan for achie$ement of one commonoal)

<) ubordination ; -he interests of any one employee or roup of employees should nottake precedence o$er the interests of the orani@ation as a 'hole)

6) emuneration ; Workers must be paid a fair 'ae for their ser$ices)

8) >entrali@ation ; >entrali@ation refers to the deree to 'hich subordinates are in$ol$ed indecision makin)

9) calar chain ; -he line of authority from top manaement to the lo'est ranks representsthe scalar chain) >ommunications should follo' this chain)

1=)4rder ; this principle is concerned 'ith systematic arranement of men, machine,material etc) there should be a specific place for e$ery employee in an orani@ation

11) Euity ; /anaers should be kind and fair to their subordinates)

12)tability of tenure of personnel ; Hih employee turno$er is inefficient) /anaementshould pro$ide orderly personnel plannin and ensure that replacements are a$ailable tofill $acancies)

10)Initiati$e ; mployees 'ho are allo'ed to oriinate and carry out plans 'ill e3ert hihle$els of effort)

1)sprit de corps ; "romotin team spirit 'ill build harmony and unity 'ithin theorani@ation)

FayolBs 'ork has stood the test of time and has been sho'n to be rele$ant and appropriate to

contemporary manaement)*citation needed + /any of todays manaement te3ts includin ichard )

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?aftBs*8+ ha$e reduced the si3 functions to fi$eG (1& plannin (2& orani@in (0& leadin (&controllin (%& forecastin) ?aftBs te3t is orani@ed around FayolBs fi$e functions)

Frederick Winslow TaylorFrom Wikipedia, the free encyclopedia

Frederick Winslow Taylor

Taylor circa 1900

Born March 20, 1856

Philadelphia, Pennsylvania, U.S.

Died March 21, 1915 (aged 59

Philadelphia, Pennsylvania, U.S.

Cause of death Pne!"onia #1$

Resting place %es& 'a!rel ill )e"e&ery

*ala )yn+yd, Pennsylvania, U.S.

Nationality "erican

Occupation -iciency e/per&

Manage"en& cons!l&an&

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Known for a&her o &he

Scien&iic "anage"en&

-iciency Move"en&, a&her o  3nd!s&rial

-ngineering

Hoe town 4er"an&o+n, Philadelphia, Pennsylvania

Religion !aer 

!pouse"s# 'o!ise M. Spooner 

Children 7e"p&on, oer& and -li:ae&h(all adopted orphans)

$arent"s# ranlin Taylor 

-"ily nne&&e %inslo+

%wards -llio&& )resson Medal (1902

Frederick Winslow Taylor  (/arch 2=, 18%< ! /arch 21, 191%& 'as an American mechanicalenineer  'ho souht to impro$e industrial efficiency)*2+ He 'as one of the first manaementconsultants)*0+ -aylor 'as one of the intellectual leaders of the fficiency /o$ement and his ideas,broadly concei$ed, 'ere hihly influential in the"roressi$e ra) -aylor summed up his efficiencytechniEues in his book "he Principles of Scientific Management ) -aylorBs pioneerin 'ork inapplyin enineerin principles to the 'ork done on the factory floor 'as instrumental in thecreation and de$elopment of the branch of enineerin that is no' kno'n as industrialenineerin) -aylor 'as also an athlete 'ho competed nationally in tennis and olf)

Contents

  *hide+

• 1 .ioraphy

• 2 Work

o 2)1 /anaers and 'orkers

o 2)2 hetorical techniEues

o 2)0 cholarly confirmation of increased efficiency mo$in pi iron at .ethlehem teel

o 2) /anaement theory

o 2)% elations 'ith A/

o 2)< "atents

• 0 -aylorBs influence

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o 0)1 Dnited tates

o 0)2 France

o 0)0 'it@erland

o 0) D

o 0)% >anada

o 0)< >riticism of -aylor 

• -ennis and olf accomplishments

• % "ublications

• < eferences

• 6 ources

• 8 Further readin

• 9 3ternal links

Biography *edit+

-aylor 'as born in 18%< to a uaker  family in 5ermanto'n, "hiladelphia, "ennsyl$ania) -aylorBsfather, Franklin -aylor, a "rinceton;educated la'yer, built his 'ealth on mortaes)*+ -aylorBs

mother, mily Annette -aylor (n:e Winslo'&, 'as an ardent abolitionist and a co'orker'ith ucretia /ott) His fatherBs ancestor, amuel -aylor, settled in .urlinton, #e' Jersey, in1<66) His motherBs ancestor, d'ard Winslo', 'as one of the fifteen oriinal /ayflo'er "ilrims'ho brouht ser$ants or children, and one of eiht 'ho had the honorable distinction of /ister)Winslo' ser$ed for many years as the 5o$ernor of the "lymouth colony)

ducated early by his mother, -aylor studied for t'o years in France and 5ermany and tra$eledurope for 18 months)*%+ In 1862, he entered "hillips 3eter Academy in 3eter, #e' Hampshire, 'ith the plan of e$entually oin to Har$ard and becomin a la'yer like his father) In 186, -aylor passed the Har$ard entrance e3aminations 'ith honors) Ho'e$er, due alleedly to rapidlydeterioratin eyesiht, -aylor chose Euite a different path)

Instead of attendin Har$ard Dni$ersity, -aylor became an

apprentice patternmaker  and machinist, ainin shop;floor e3perience at nterprise HydraulicWorks in "hiladelphia (a pump;manufacturin company 'hose proprietors 'ere friends of the-aylor family&) He left his apprenticeship for si3 months and represented a roup of #e' nlandmachine;tool manufacturers at "hiladelphiaBs centennial e3position) -aylor finished his four;yearapprenticeship and in 1868 became a machine;shop laborer at /id$ale teel Works) At /id$ale,he 'as Euickly promoted to time clerk, Courneyman machinist, an boss o$er the lathehands, machine shop foreman, research director, and finally chief enineer of the 'orks ('hilemaintainin his position as machine shop foreman&) -aylorBs fast promotions reflected not onlyhis talent but also his familyBs relationship 'ith d'ard >lark, part o'ner of /id$ale teel)(d'ard >larkBs son>larence >lark, 'ho 'as also a manaer at /id$ale teel, married -aylorBssister)&

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/id$ale teel Works Aerial ie', 1869)

arly on at /id$ale, 'orkin as a laborer and machinist, -aylor reconi@ed that 'orkmen 'erenot 'orkin their machines, or themsel$es, nearly as hard as they could ('hich at the time 'ascalled 7soldierin7& and that this resulted in hih labor costs for the company) When he became aforeman he e3pected more output from the 'orkmen) In order to determine ho' much 'orkshould properly be e3pected, he bean to study and analy@e the producti$ity of both the men andthe machines (althouh the 'ord 7producti$ity7 'as not used at the time, and the applied scienceof producti$ity had not yet been de$eloped&) His focus on the human component of production-aylor labeled scientific manaement)*<+

While -aylor 'orked at /id$ale, he and >larence >lark 'on the first tennis doubles tournamentin the 1881 D #ational >hampionships, the precursor of the D 4pen)*2+ -aylor became astudent of te$ens Institute of -echnoloy, studyin $ia correspondence*6+ and obtainin a dereein mechanical enineerin in 1880) 4n /ay 0, 188, he married ouise /) pooner of"hiladelphia)

-he .ethlehem teel plant, 189<)

From 189= until 1890 -aylor 'orked as a eneral manaer and a consultin enineer tomanaement for the /anufacturin In$estment >ompany of "hiladelphia, a company thatoperated lare paper mills in /aine and Wisconsin) He spent time as a plant manaer in /aine)In 1890, -aylor opened an independent consultin practice in "hiladelphia) His business cardread 7>onsultin nineer ; ystemati@in hop /anaement and /anufacturin >osts apecialty7) -hrouh these consultin e3periences, -aylor perfected his manaement system) In1898 he Coined .ethlehem teel in order to sol$e an e3pensi$e machine;shop capacity problem) As a result, he and /aunsel White, 'ith a team of assistants, de$eloped hih speed steel, pa$inthe 'ay for reatly increased mass production) -aylor 'as forced to lea$e .ethlehem teel in19=1 after discord 'ith other manaers)

 After lea$in .ethlehem teel, -aylor focused the rest of his career on publicly promotin hismanaement and machinin methods throuh lecturin, 'ritin, and consultin) In 191=, o'into the astern ate >ase, Frederick Winslo' -aylor and his cientific /anaementmethodoloies become famous 'orld'ide) In 1911, -aylor introduced his -he "rinciples ofcientific /anaement paper to the American mechanical enineerin society, eiht years afterhis hop /anaement paper)

4n 4ctober 19, 19=<, -aylor 'as a'arded an honorary deree of ?octor of cience bythe Dni$ersity of "ennsyl$ania)*8+ -aylor e$entually became a professor at the -uck chool of.usiness at ?artmouth >ollee)*9+ In early sprin of 191% -aylor cauht pneumonia and died, one

day after his fifty;ninth birthday, on /arch 21, 191%) He 'as buried in West aurel Hill >emetery,in .ala >yn'yd, "ennsyl$ania)

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 Work *edit+

-aylor 'as a mechanical enineer 'ho souht to impro$e industrial efficiency) -aylor is reardedas the father of scientific manaement, and 'as one of the first manaement consultants anddirector of a famous firm) In "eter ?rucker Bs description,

Frederick W) -aylor 'as the first man in recorded history 'ho deemed 'ork deser$in ofsystematic obser$ation and study) 4n -aylorBs Bscientific manaementB rests, abo$e all, thetremendous sure of affluence in the last se$enty;fi$e years 'hich has lifted the 'orkin massesin the de$eloped countries 'ell abo$e any le$el recorded before, e$en for the 'ell;to;do) -aylor,thouh the Isaac #e'ton (or perhaps the Archimedes& of the science of 'ork, laid only firstfoundations, ho'e$er) #ot much has been added to them since ! e$en thouh he has been deadall of si3ty years)*1=+

-aylorBs scientific manaement consisted of four principlesG

1) eplace rule;of;thumb 'ork methods 'ith methods based on a scientific study of thetasks)

2) cientifically select, train, and de$elop each employee rather than passi$ely lea$in themto train themsel$es)

0) "ro$ide 7?etailed instruction and super$ision of each 'orker in the performance of that'orkerBs discrete task7 (/ontomery 1996G 2%=&)

) ?i$ide 'ork nearly eEually bet'een manaers and 'orkers, so that the manaers applyscientific manaement principles to plannin the 'ork and the 'orkers actually performthe tasks)

Future D upreme >ourt Custice ouis .randeis coined the term scientific management  in thecourse of his arument for the astern ate >ase before theInterstate >ommerce >ommission in

191=) .randeis arued that railroads, 'hen o$erned accordin to -aylorBs principles, did notneed to raise rates to increase 'aes) -aylor used .randeisBs term in the title of hismonoraph "he Principles of Scientific Management , published in 1911) -he astern ate >asepropelled -aylorBs ideas to the forefront of the manaement aenda) -aylor 'rote to .randeis 7Iha$e rarely seen a ne' mo$ement started 'ith such reat momentum as you ha$e i$en thisone)7 -aylorBs approach is also often referred to as "aylor's Principles, or, freEuentlydisparainly, as "aylorism)

Managers and workers*edit+

-aylor had $ery precise ideas about ho' to introduce his systemG

It is only throuh enforced  standardi@ation of methods, enforced  adoption of the best implementsand 'orkin conditions, and enforced cooperation that this faster 'ork can be assured) And theduty of enforcin the adoption of standards and enforcin this cooperation rests'ithmanagement  alone)*11+

Workers 'ere supposed to be incapable of understandin 'hat they 'ere doin) Accordin to-aylor this 'as true e$en for rather simple tasks)

BI can say, 'ithout the slihtest hesitation,B -aylor told a conressional committee, Bthat thescience of handlin pi;iron is so reat that the man 'ho is ))) physically able to handle pi;ironand is sufficiently phlematic and stupid to choose this for his occupation is rarely able tocomprehend the science of handlin pi;iron)*12+

-aylor belie$ed in transferrin control from 'orkers to manaement) He set out to increase thedistinction bet'een mental (plannin 'ork& and manual labor (e3ecutin 'ork&) ?etailed plans,

specifyin the Cob and ho' it 'as to be done, 'ere to be formulated by manaement andcommunicated to the 'orkers)*10+

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-he introduction of his system 'as often resented by 'orkers and pro$oked numerous strikes)-he strike at Waterto'n Arsenal led to the conressional in$estiation in 1912) -aylor belie$edthe laborer 'as 'orthy of his hire, and pay 'as linked to producti$ity) His 'orkers 'ere able toearn substantially more than those under con$entional manaement, *1+ and this earned himenemies amon the o'ners of factories 'here scientific manaement 'as not in use)

Rhetorical techniques*edit+-aylor promised to reconcile labor and capital)

With the triumph of scientific manaement, unions 'ould ha$e nothin left to do, and they 'ouldha$e been cleansed of their most e$il featureG the restriction of output) -o underscore this idea,-aylor fashioned the myth that Bthere has ne$er been a strike of men 'orkin under scientificmanaementB, tryin to i$e it credibility by constant repetition) In similar fashion he incessantlylinked his proposals to shorter hours of 'ork, 'ithout botherin to produce e$idence of7-aylori@ed7 firms that reduced 'orkin hours, and he re$ised his famous tale of chmidt carryinpi iron at .ethlehem teel at least three times, obscurin some aspects of his study andstressin others, so that each successi$e $ersion made chmidtBs e3ertions more impressi$e,more $oluntary and more re'ardin to him than the last) Dnlike *Harrinton+ merson, -aylor 'as

not a charlatan, but his ideoloical messae reEuired the suppression of all e$idence of 'orkerBsdissent, of coercion, or of any human moti$es or aspirations other than those his $ision ofproress could encompass)*1%+

Scholarly confirmation of increased efficiency moing pig iron at!ethlehem Steel*edit+

 A study published in the Journal of /anaement 'ritten by Jill ) Houh and /araret A) White,titledG Dsin stories to create chaneG -he obCect lesson of Frederick -aylors Kpi;taleL, pro$idescompellin historical e$idence of the truth of the assertions -aylor made reardin the Euitesubstantial increase in producti$ity, for e$en the most basic task of pickin up, carryin anddroppin pis of iron) *1<+

Management theory*edit+

-aylor thouht that by analy@in 'ork, the 7one best 'ay7 to do it 'ould be found) He is mostremembered for de$elopin the stop'atch time study, 'hich combined 'ith Frank 5ilbrethBsmotion study methods, later becomes the field of time and motion study) He 'ould break a Cobinto its component parts and measure each to the hundredth of a minute) 4ne of his mostfamous studies in$ol$ed sho$els) He noticed that 'orkers used the same sho$el for all materials)He determined that the most effecti$e load 'as 21M lb, and found or desined sho$els that foreach material 'ould scoop up that amount) He 'as enerally unsuccessful in ettin hisconcepts applied, and 'as dismissed from .ethlehem teel) #e$ertheless, -aylor 'as able tocon$ince 'orkers 'ho used sho$els and 'hose compensation 'as tied to ho' much theyproduced to adopt his ad$ice about the optimum 'ay to sho$el by breakin the mo$ements do'ninto their component elements and recommendin better 'ays to perform these mo$ements) It

'as larely throuh the efforts of his disciples (most notably H)) 5antt& that industry came toimplement his ideas) /oreo$er, the book he 'rote after partin company 'ith .ethlehemteel, Shop Management , sold 'ell)

Relations with "SM#*edit+

-aylorBs o'n 'ritten 'orks 'ere desined for presentation to the American ociety of /echanicalnineers (A/&) -hese include #otes on .eltin (189&, A "iece;ate ystem (189%&, hop/anaement (19=0&, Art of >uttin /etals (19=<&, and -he "rinciples of cientific /anaement(1911&)

-aylor 'as president of the A/ from 19=< to 19=6) While president, he tried to implement hissystem into the manaement of the A/ but 'as met 'ith much resistance) He 'as only ableto reorani@e the publications department and then only partially) He also forced out the A/Bs

lon;time secretary, /orris ) >ooke, and replaced him 'ith >al$in W) ice) His tenure as

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president 'as trouble;ridden and marked the beinnin of a period of internal dissension 'ithinthe A/ durin the "roressi$e Ae)*16+

In 1911, -aylor collected a number of his articles into a book;lenth manuscript, 'hich hesubmitted to the A/ for publication) -he A/ formed an ad hoc committee to re$ie' thete3t) -he committee included -aylor allies such as James /apes ?ode and Henry ) -o'ne)

-he committee deleated the report to the editor of the #merican Machinist , eon ") Alford) Alford 'as a critic of the -aylor system and the report 'as neati$e) -he committee modified thereport slihtly, but accepted AlfordBs recommendation not to publish -aylorBs book) -aylor anrily'ithdre' the book and published Principles 'ithout A/ appro$al)*18+ -aylor published the tradebook himself in 1912)

Patents*edit+

-aylor authored 2 patents)*19+

Taylor's influence*edit+

$nited States*edit+

4ne of  >arl 5) .arthBs speed;and;feed slide rules)

 A 5antt chart)

• >arl 5) .arth helped -aylor to de$elop speed;and;feed;calculatin  slide rules to apre$iously unkno'n le$el of usefulness) imilar aids are still used in machine shops today).arth became an early consultant on scientific manaement and later tauht at Har$ard)

• H) ) 5antt de$eloped the 5antt chart, a $isual aid for schedulin tasks and displayinthe flo' of 'ork)

• Harrinton merson introduced scientific manaement to the railroad industry, andproposed the dichotomy of staff $ersus line employees, 'ith the former ad$isin the latter)

• /orris >ooke adapted scientific manaement to educational and municipal orani@ations)

• Huo /Nnsterber created industrial psycholoy)

• illian 5ilbreth introduced psycholoy to manaement studies)

• Frank 5ilbreth (husband of illian& disco$ered scientific manaement 'hile 'orkin in theconstruction industry, e$entually de$elopin motion studies independently of -aylor) -hese

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loically complemented -aylorBs time studies, as time and motion are t'o sides of theefficiency impro$ement coin) -he t'o fields e$entually became time and motion study)

• Har$ard Dni$ersity, one of the first American uni$ersities to offer a raduate deree inbusiness manaement in 19=8, based its first;year curriculum on -aylorBs scientificmanaement)

• Harlo' ) "erson, as dean of  ?artmouthBs Amos -uck chool of Administration andFinance, promoted the teachin of scientific manaement)

• James 4) /cOinsey, professor of accountin at the Dni$ersity of >hicao and founder ofthe consultin firm bearin his name, ad$ocated budets as a means of assurinaccountability and of measurin performance)

France*edit+

In France, e >hatelier  translated -aylorBs 'ork and introduced scientific manaementthrouhout o$ernment o'ned plants durin World War I) -his influenced the French

theorist Henri Fayol, 'hose 191<  #dministration Industrielle et Générale emphasi@edorani@ational structure in manaement) In the classic 5eneral and Industrial /anaement Fayol'rote that 7-aylorBs approach differs from the one 'e ha$e outlined in that he e3amines the firmfrom the Bbottom up)B He starts 'ith the most elemental units of acti$ity ! the 'orkersB actions !then studies the effects of their actions on producti$ity, de$ises ne' methods for makin themmore efficient, and applies 'hat he learns at lo'er le$els to the hierarchy)))7 *2=+ He suests that-aylor has staff analysts and ad$isors 'orkin 'ith indi$iduals at lo'er le$els of the orani@ationto identify the 'ays to impro$e efficiency) Accordin to Fayol, the approach results in a 7neationof the principle of unity of command)7 *21+ Fayol critici@ed -aylorBs functional manaement in this'ayG In Shop Management , -aylor said*22+ P ))) the most marked out'ard characteristics offunctional manaement lies in the fact that each 'orkman, instead of comin in direct contact'ith the manaement at one point only, ))) recei$es his daily orders and help from eiht differentbosses))) these eiht 'ere (1& route clerks, (2& instruction card men, (0& cost and time clerks, (&an bosses, (%& speed bosses, (<& inspectors, (6& repair bosses, and the (8& shopdisciplinarian) Q*22+ Fayol said that this 'as an un'orkable situation and that -aylor must ha$ereconciled the differences in some 'ay not described in -aylorBs 'orks)

 Around 1922 the Cournalist "aulette .ernRe became interested in -aylorBs theories, 'hich 'erepopular in France in the post;'ar period)*20+ .ernRe became the faithful disciple of the ?omesticciences /o$ement that >hristine Frederick had launched earlier in the Dnited tates, 'hich.ernRe adapted to French homes) Frederick had transferred the concepts of -aylorism from thefactory to domestic 'ork) -hese included suitable tools, rational study of mo$ements and timinof tasks) cientific standards for house'ork 'ere deri$ed from scientific standards for'orkshops, intended to streamline the 'ork of a house'ife)*2+ -he$omité national del%organisation fran&aise (>#4F& 'as founded in 192% by a roup of Cournalists and consultin

enineers 'ho sa' -aylorism as a 'ay to e3pand their client base) Founders included prominentenineers such as Henry ouis e >hStelier  and :on 5uillet) .ernReBs Institute ofHousekeepin 4rani@ation participated in $arious conresses on the scientific orani@ation of'ork that led up to the foundin of the >#4F, and in 1929 led to a section in >#4F on domesticeconomy)*2%+

Swit%erland*edit+

In 'it@erland, the American d'ard Albert Filene established the International /anaementInstitute to spread information about manaement techniEues)

$SSR*edit+

In the o$iet Dnion, ladimir enin 'as $ery impressed by -aylorism, 'hich he and Joseph

talin souht to incorporate into o$iet manufacturin) -aylorism and the mass productionmethods of Henry Ford thus became hihly influential durin the early years of the o$iet Dnion)

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#e$ertheless, 7*)))+ Frederick -aylorBs methods ha$e ne$er really taken root in the o$ietDnion)7*2<+ -he $oluntaristic approach of the takhano$ite mo$ement in the 190=s of settinindi$idual records 'as diametrically opposed to -aylorBs systematic approach and pro$ed to becounter;producti$e)*26+ -he stop;and;o of the production process ! 'orkers ha$in nothin to doat the beinnin of a month and BstorminB durin illeal e3tra shifts at the end of the month !'hich pre$ailed e$en in the 198=s had nothin to do 'ith the successfully taylori@ed plants e)),

of -oyota 'hich are characteri@ed by continuous production processes (heiCunka& 'hicharecontinuously  impro$ed (kai@en&)*28+

7-he easy a$ailability of replacement labor, 'hich allo'ed -aylor to choose only Bfirst;class men,B'as an important condition for his systemBs success)7 *29+ -he situation in the o$iet Dnion 'as$ery different) 7.ecause 'ork is so unrhythmic, the rational manaer 'ill hire more 'orkers thanhe 'ould need if supplies 'ere e$en in order to ha$e enouh for stormin) .ecause of thecontinuin labor shortae, manaers are happy to pay needed 'orkers more than the norm,either by issuin false Cob orders, assinin them to hiher skill rades than they deser$e onmerit criteria, i$in them BlooseB piece rates, or makin 'hat is supposed to be Bincenti$eB pay,premia for ood 'ork, effecti$ely part of the normal 'ae) As /ary /c Auley has suestedunder these circumstances piece rates are not an incenti$e 'ae, but a 'ay of Custifyin i$in'orkers 'hate$er they BshouldB be ettin, no matter 'hat their pay is supposed to be accordinto the official norms)7*0=+

-aylor and his theories are also referenced (and put to practice& in the1921 dystopian no$el e by Te$eny Uamyatin)

Canada*edit+

In the early 192=s, the >anadian te3tile industry 'as re;orani@ed accordin to scientificmanaement principles) In 1928, 'orkers at >anada >otton td) inHamilton, 4ntario 'ent onstrike aainst ne'ly introduced -aylorist 'ork methods) Also, Henry 5antt, 'ho 'as a closeassociate of -aylor, re;orani@ed the>anadian "acific ail'ay)*01+

With the pre$alence of D branch plants in >anada and close economic and cultural tiesbet'een the t'o countries, the sharin of business practices, includin -aylorism, has beencommon)

Criticism of Taylor *edit+

/anaement theorist Henry /int@ber is hihly critical of -aylors methods) /int@ber states thatan obsession 'ith efficiency allo's measureable benefits to o$ershado' less Euantifiable socialbenefits completely, and social $alues et left behind) *02+

Harry .ra$ermanBs 'ork, La(or and Monopoly $apital "he )egradation of or* in the "+entieth$entury , published in 196, 'as critical of scientific manaement) -his 'ork pioneered the fieldof abor "rocess -heory)

-aylorBs methods ha$e also been challened by socialist intellectuals) -he aruments put for'ardrelate to proressi$e defanin of 'orkers in the 'orkplace and the subseEuent deradation of

'ork as manaement, po'ered by capital, uses -aylorBs methods to render 'ork repeatable,precise yet monotonous and skill;reducin)*00+ James W) inehart arued that -aylorBs methods oftransferrin control o$er production from 'orkers to manaement, and the di$ision of labor intosimple tasks, intensified the alienation of 'orkers that had beun 'ith the factory system ofproduction around 186=!189=)*0+

Tennis and golf accomplishments*edit+

-aylor 'as an accomplished tennis and olf  player) He and >larence >lark 'on theinauural Dnited tates #ational tennis doubles championship at #e'port >asino in 1881,defeatin Ale3ander an ensselaer  and Arthur #e'bold in straiht sets)*2+ In the 19== ummer4lympics, -aylor finished fourth in olf)

?r) "hilip Ootler 

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?r) "hilip Ootler is the )>) Johnson V on ?istinuished "rofessor ofInternational /arketin at the #orth'estern Dni$ersity Oello 5raduatechool of /anaement in >hicao) He is hailed by /anaement >entreurope as 7the 'orldBs foremost e3pert on the strateic practice of marketin)7

"ublications

?r) Ootler is kno'n to many as the author of 'hat is 'idely reconi@ed as the most authoritati$e te3tbook onmarketinG /arketin /anaement, no' in its 10th edition) He has also authored or co;authored do@ens ofleadin books on marketin) A list of books by ?r) Ootler is a$ailable here)

In addition, ?r) Ootler has published more than one hundred articles in leadin Cournals, includin the Har$ard.usiness e$ie', loan manaement e$ie', .usiness Hori@ons, >alifornia /anaement e$ie', and theJournal of /arketin)

peakin V >onsultin

?r) Ootler presents continuin seminars on leadin marketin concepts and de$elopments to companies andorani@ations in the D)), urope and Asia) Dpcomin speakin locations are listed here)

He participates in O/5 client proCects and has consulted to many maCor D)) and forein companies ; includinI./, /ichelin, .ank of America, /erck, 5eneral lectric, Honey'ell, and /otorola ; in the areas of marketinstratey and plannin, marketin orani@ation, and international marketin)

Mary Parker Follett (eptember 0, 18<8 ! ?ecember 18, 1900& 'as an American social'orker , manaement consultant and pioneer in the fields of  orani@ationaltheory and orani@ational beha$ior ) Alon 'ith illian 5ilbreth, /ary "arker Follett 'as one oft'o reat 'omen manaement urus in the early days of classical manaement theory) Follett iskno'n to be 7/other of /odern /anaement7) *2+

Biography *edit+

Follett 'as born in 18<8 in uincy, /assachusetts to a 'ealthy uaker Family) Her family 'as

composed of >harles Allen Follett, a machinist in a local shoe factory, and li@abeth >urtis (n:e

.a3ter& Follett, respecti$ely of nlish;cottish and Welsh descent, and a youner brother)

Follett attended -hayer Academy, a colleiate preparatory day school in .raintree, 'hile

spendin much of her free time carin for her disabled mother) In eptember 188% she enrolled

in Anna -icknor Bs ociety to ncourae tudies at Home)*0+

From 189=;91, she studied at the Dni$ersity of >ambride and then mo$ed to study at ociety

for the >olleiate Instruction of Women in >ambride (later kno'n as adcliffe >ollee&)*+ For the

ne3t < years Follett attended the uni$ersity on an irreular basis e$entually raduatin summacum laude in 1898) Her adcliffe thesis, "he Spea*er of the ouse of -epresentaties, 'as

published in 189<) he 'ould o on to apply to Har$ard but 'ould be denied entrance to the

uni$ersity on the basis that she 'as a 'oman) *%+

4$er the ne3t three decades, she published many 'orks) he 'as one of the first 'omen e$er

in$ited to address the ondon chool of conomics, 'here she spoke on cuttin;ede

manaement issues) he also distinuished herself in the field of manaement by bein souht

out by "resident -heodore oose$eltas his personal consultant on manain not;for;profit, non;

o$ernmental, and $oluntary orani@ations)*citation needed +

Ideas and influences*edit+

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Folletts educational and 'ork backround 'ould shape and influence her future theories and

'ritins) 4ne of her earliest career positions 'ould see her 'orkin as a social 'orker in the

o3bury neihborhood of .oston from 19==;=8) ?urin this period her interactions 'ith the

o3bury community 'ould lead her to reali@e the importance of community spaces as areas to

meet and sociali@e)*<+

Her e3perience in de$elopin $ocational uidance and e$enin prorams in public schools, she

'ould de$elop 'hat 'ould be her lifeBs 'ork and her theories in roup dynamics) 7-he #e'

tate7, her second 'ritin published in 1918, 'ould e$ol$e from a report into her second

published 'ork) -his publication 'ould o on to lay the foundational theories for her most

important theories and become a maCor center of attention of her career) *6+

&rgani%ational theory*edit+

In her capacity as a manaement theorist, Follett pioneered the understandin of lateral

processes 'ithin hierarchical orani@ations ('hich reconition led directly to the formation of

matri3;style orani@ations, the first of 'hich 'as ?u"ont, in the 192=s&, the importance ofinformal processes 'ithin orani@ations, and the idea of the 7authority of e3pertise7'hich really

ser$ed to modify the typoloy of authority de$eloped by her 5erman contemporary, /a3 Weber ,

'ho broke authority do'n into three separate cateoriesG rational;leal, traditional and

charismatic)*8+

he reconi@ed the holistic nature of community and ad$anced the idea of 7reciprocal

relationships7 in understandin the dynamic aspects of the indi$idual in relationship to others)

Follett ad$ocated the principle of 'hat she termed 7interation,7 or noncoerci$e po'er;sharin

based on the use of her concept of 7po'er 'ith7 rather than 7po'er o$er)7 *citation needed +

Follett contributed reatly to the 'in;'in philosophy, coinin the term in her 'ork 'ith roups)Her approach to conflict 'as to embrace it as a mechanism of di$ersity and an opportunity to

de$elop interated solutions rather than simply compromisin) *9+ he 'as also a pioneer in the

establishment of  community centers)

Follett's writings*edit+

FollettBs 'ritins span the decades) In "he /e+ State, she ponders many of the social issues at

hand todayG

It is a mista*e to thin* that social progress is to depend upon anything happening to the +or*ing

 people some say that they are to (e gien more material goods and all +ill (e +ell0 some thin*they are to (e gien more 1education1 and the +orld +ill (e saed. It is e2ually a mista*e to thin*

that +hat +e need is the conersion to 1unselfishness1 of the capitalist class.7 *1=+

Transformational (eadership*edit+

-his section needs additional citations for erification) "lease help impro$e this

article by addin citations to reliable sources) Dnsourced material may be

challened and remo$ed) 34une 56789

 Ann "a'elec ?eschenes (1998& found obscure reference pointin to /ary "arker Follet ha$in

coined the term 7-ransformational eadership7) he Euotes from dith A) uschBs "he Social

$onstruction of Leadership From "heory to Pra:is  (1991&G

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... +ritings and lectures (y Mary Par*er Follet from as early as 7;5< contained references to

transformational leadership, the interrelationship of leadership and follo+ership, and the po+er of 

collectie goals of leaders and follo+ers (p) 8&)

.urns makes no reference to Follett in Leadership) Ho'e$er, usch 'as able to trace 'hat

appear to be parallel themes in the 'orks of .urns and Follet)7 usch presents direct referencesin Appendi3 A) "a'elec (?eschenes& found further parallels of transformational discourse

bet'een FolletBs (196, 1986& 'ork and .urns (1968&) *citation needed +

Influences*edit+

 Althouh most of FollettBs 'ritins remained kno'n in $ery limited circles until republished at the

beinnin of this decade, her ideas ained reat influence after >hester .arnard, a #e' Jersey

.ell e3ecuti$e and ad$isor to "resident Franklin ?) oose$elt, published his seminal treatment of 

e3ecuti$e manaement, "he Functions of the =:ecutie) .arnardBs 'ork, 'hich stressed the

critical role of 7soft7 factors such as 7communication7 and 7informal processes7 in orani@ations,o'ed a tellin yet undisclosed debt to FollettBs thouht and 'ritins) Her emphasis on such soft

factors paralleled the 'ork of lton /ayo at Western lectricBs Ha'thorne "lant, and presaed

the rise of the Human elations /o$ement, as de$eloped throuh the 'ork of such fiures

as Abraham /aslo', Ourt e'in,?oulas /c5reor , >hris Aryris and other breakthrouh

contributors to the field of 4rani@ational ?e$elopment or 74?7)*11+

Her influence can also be seen indirectly perhaps in the 'ork of on ippitt, Oen .enne, ee

.radford, die eashore and others at the #ational -rainin aboratories in .ethel, /aine,

'here -;5roup methodoloy 'as first theori@ed and de$eloped) *12+ FollettBs 'ork set the stae for

a eneration of effecti$e, proressi$e chanes in manaement philosophy, style and practice,

re$olutioni@in and humani@in the American 'orkplace, and allo'in the fulfillment of ?oulas

/c5reorBs manaement $isionEuantum leaps in producti$ity effected throuh the

humani@ation of the 'orkplace)*10+

Later life and legacy *edit+

Follet died on ?ecember 18, 1900, in .oston, /assachusetts) After her death her 'ork and ideas

'ould disappear from American orani@ational and manaement circles of the time but 'ould

continue to ain follo'ership in 5reat .ritain) In the last decades her 'ork has been

redisco$ered) ?urin the 19<=s her ideas 'ould re;emere in Japan 'here manaement

thinkers 'ould apply her theories to business)

Her te3ts outline modern ideas under participatory manaementG decentrali@ed decisions,

interatin role of roups, and competition authority) Follett manaed to reduce the ap bet'een

the mechanistic approach and contemporary approach that emphasi@es human beha$ior)*1+

Her ad$ocacy for schools to be used after hours for recreational and $ocational use affected the

.oston area 'here schools opened their doors after hours for such uses, and community centers

'ere built 'here schools 'ere not located, a re$olutionary concept durin the 2=th century) Her

e3perience 'orkin in this area tauht her a lot about notions of democracy and led her to 'rite

more for a 'ider audience ! particularly the business 'orld) he belie$ed that ood practice

amonst business people 'ould ha$e a sinificant impact on other institutions) *10+

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Publications*edit+

he authored a number of books and numerous essays, articles and speeches

on democracy, human relations, political philosophy, psycholoy,orani@ational

beha$ior  and conflict resolution)

• "he Spea*er of the ouse of -epresentaties(189<&*1%+

• "he /e+ State (1918&*1<+

• $reatie =:perience (192& *16+

• "he Giing of >rders(192<&

• )ynamic #dministration "he $ollected Papers of Mary Par*er Follett  (192& (a collection

of speeches and short articles 'as published posthumously& *18+

eferences*edit+

1) )ump up *

!ouglas "c#regorFrom Wikipedia, the free encyclopedia"his article is a(out the professor from MI". For others named, see ??)ouglas Macgregor 3humanside enterprise9. 3disam(iguation9@@.

+ouglas Murray Mc,regor  (19=< ! 1 4ctober 19<& 'as a manaement professor at the /I-loan chool of /anaement and president of Antioch >olleefrom 198 to 19%)*1+ He alsotauht at the Indian Institute of /anaement >alcutta) His 19<= book "he uman Side of=nterprise had a profound influence on education practices)

?oulas /c5reor is a contemporary of Abraham /aslo') ike'ise, he also contributed much tothe de$elopment of the manaement and moti$ational theory) He is best kno'n for his -heory Xand -heory T as presented in his book Y-he Human ide of nterprise (19<=&, 'hich proposedthat manaers indi$idual assumptions about human nature and beha$iour determined ho'indi$idual manaes their employees) *2+

Contents

  *hide+

• 1 >areer 

• 2 "he uman Side of =nterprise

• 0 eacy

• ee also

• % #otes and references

• < 3ternal links

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$areer*edit+

/c5reor 'as born in ?etroit) He earned a .)) (/echanical& from anoon Institute of-echnoloy, an A).) from Wayne tate Dni$ersity in 1902, then earned an /)A) and "h)?) inpsycholoy from Har$ard Dni$ersity in 19 and 19%% respecti$ely)*0+

The Human Side of Enterprise*edit+

In the book "he uman Side of =nterprise, /c5reor identified an approach of creatin anen$ironment 'ithin 'hich employees are moti$ated $ia authoritati$e, direction and control orinteration and self;control, 'hich he called theory X and theory T,*+ respecti$ely) -heory T is thepractical application of ?r) Abraham /aslo'Bs Humanistic chool of "sycholoy, or -hird Forcepsycholoy, applied to scientific manaement)

He is commonly thouht of as bein a proponent  of -heory T, but, as dar chein tells in hisintroduction to /c5reorBs subseEuent, posthumous (19<6&, book "he Professional Manager  G7In my o'n contacts 'ith ?ou, I often found him to be discouraed by the deree to 'hichtheory T had become as monolithic a set of principles as those of -heory X, the o$er;

enerali@ation 'hich ?ou 'as fihtin))))Tet fe' readers 'ere 'illin to ackno'lede that thecontent of ?ouBs book made such a neutral point or that ?ouBs o'n presentation of his point of$ie' 'as that coldly scientific7)

5raham >le$erley in Managers A Magic  (onmanBs, 1961& commentsG 7)))he coined the t'oterms -heory X and theory T and used them to label t'o sets of beliefs a manaer miht holdabout the oriins of human beha$iour) He pointed out that the manaerBs o'n beha$iour 'ouldbe larely determined by the particular beliefs that he subscribed to))))/c5reor hoped that hisbook 'ould lead manaers to in$estiate the t'o sets of beliefs, in$ent others, test out theassumptions underlyin them, and de$elop manaerial strateies that made sense in terms ofthose tested $ie's of reality) 7.ut that isnBt 'hat happened) Instead /c5reor 'as interpreted asad$ocatin -heory T as a ne' and superior ethic ; a set of moral $alues that ought  to replace the$alues manaers usually accept)7

"he uman Side of =nterprise 'as $oted the fourth most influential manaement book of the2=th century in a poll of the Fello's of the Academy of /anaement)*%+

"a% WeberFrom Wikipedia, the free encyclopediaFor other people named Ma: e(er, see Ma: e(er 3disam(iguation9.

&a' We(er

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%eer in 189;

Born 7arl -"il Ma/i"ilian %eer 

21 pril 186;

-r!r&, Sa/ony, 7ingdo" o Pr!ssia

Died 1; <!ne 1920 (aged 56

M!nich, *avaria, 4er"any

Nationality 4er"an

Fields-cono"ics

Sociology

is&ory

'a+

Poli&ics

Philosophy

)nstitutions Universi&ies o  *erlin

rei!rg

eidelerg

=ienna

M!nich

%la ater

Universi&y o *erlin

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Universi&y o eidelerg

Doctoral

ad*isor

'evin 4oldsch"id&

Known for

%eerian !rea!cracy

>isenchan&"en& + 3deal &ype

3ron cage + 'ie chances

Me&hodological individ!alis"

Monopoly on violence

Pro&es&an& +or e&hic

a&ionalisa&ion + Social ac&ion

Three?co"ponen& s&ra&iica&ion

Tripar&i&e classiica&ion o a!&hori&y

Verstehen

)nfluences

er"ann *a!"gar&en #1$

3""an!el 7an& + riedrich @ie&:sche

Sig"!nd re!d + %ilhel" >il&hey

einrich icer& + 4eorg Si""el

%erner So"ar& #2$

)nfluenced

7arl <aspers + 4eorg Si""el

Talco&& Parsons + '!d+ig von Mises

4yArgy '!Bcs + Theodor %. dorno

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)arl Sch"i&& + <Crgen aer"as

<oseph Sch!"pe&er  + ). %righ& Mills

)orneli!s )as&oriadis + '!d+ig

'ach"ann + 7arl Polanyi

-arl #mil Ma.imilian /Ma./ We0er  (5ermanG * maks $e b +@ @ A B 21 April 18< ! 1 June 192=& 'asa 5ermansocioloist, philosopher, Curist, and political economist 'hose ideas profoundlyinfluenced social theory andsocial research)*0+ Weber is often cited, 'ith mile ?urkheim and Oarl/ar3, as amon the three founders of socioloy) *+*%+*<+*6+*8+

Weber 'as a key proponent of methodoloical antipositi$ism, aruin for the study of socialaction throuhinterpreti$e (rather than purely empiricist& means, based on understandin thepurpose and meanin that indi$iduals attach to their o'n actions) WeberBs main intellectual

concern 'as understandin the processes of rationalisation, secularisation, and 7disenchantment7that he associated 'ith the rise of capitalism andmodernity,*9+ and 'hich he sa' as the result of ane' 'ay of thinkin about the 'orld)*1=+

Weber is best kno'n for his thesis combinin economic socioloy and the socioloy of reliion,elaborated in his book "he Protestant =thic and the Spirit of $apitalism, in 'hich he proposedthat ascetic "rotestantism'as one of the maCor 7electi$e affinities7 associated 'ith the rise in theWestern 'orld of  market;dri$en capitalism and the rational;leal nation;state) Aainst /ar3Bs7historical materialism7, Weber emphasised the importance of cultural influences embedded inreliion as a means for understandin the enesis of capitalism) *11+ -he Protestant =thic  formedthe earliest part in WeberBs broader in$estiations into 'orld reliion he 'ent on to e3aminethe reliions of >hina, the reliions of India and ancient Judaism, 'ith particular reard to theirdifferin economic conseEuences and conditions of social stratification)*a+

In another maCor 'ork, Politics as a ocation, Weber defined the state as an entity thatsuccessfully claims a 7monopoly of the leitimate use of physical force 'ithin a i$en territory7)He 'as also the first to cateorise social authority into distinct forms, 'hich he labelled ascharismatic, traditional, and rational;leal) His analysis of  bureaucracy emphasised that modernstate institutions are increasinly based on rational;leal authority)

Weber also made a $ariety of other contributions in economic history, as 'ell as economic theoryand methodoloy) WeberBs analysis of modernity and rationalisation sinificantly influencedthe critical theoryassociated 'ith the Frankfurt chool)

 After the First World War , /a3 Weber 'as amon the founders of the liberal 5erman ?emocratic"arty) He also ran unsuccessfully for a seat in parliament and ser$ed as ad$isor to the committeethat drafted the ill;fated democratic Weimar >onstitution of 1919) After contractin panish flu, he

died of  pneumonia in 192=, aed %<)*+

Contents

  *hide+

• 1 .ioraphy

o 1)1 arly life and family backround

o 1)2 ducation

o 1)0 arly 'ork

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o 1) ater 'ork

o 1)% "olitical in$ol$ements

o 1)< ast years

• 2 /a3 WeberBs thouht

o 2)1 /a3 WeberBs .ureaucratic /odel (eal;ational /odel&

o 2)2 Inspirations

o 2)0 /ethodoloy

o 2) ationalisation

o 2)% ocioloy of reliion

2)%)1 "he Protestant =thic and the Spirit of $apitalism

2)%)2 "he -eligion of $hina $onfucianism and "aoism

2)%)0 "he -eligion of India "he Sociology of induism and Buddhism

2)%) #ncient 4udaism

2)%)% =conomy and Society 

2)%)< -heodicy of Fortune and /isfortune

o 2)< "olitics and o$ernment

2)<)1 ocial stratification

o 2)6 -he >ity

o 2)8 conomics

2)8)1 /ethodoloical indi$idualism

2)8)2 /arinalism and psychophysics

2)8)0 conomic history

2)8) conomic calculation

• 0 eacy

• >ritical responses to Weber 

•

% #otes

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• < ee also

• 6 eferences

• 8 Further readin

• 9 3ternal links

Biography *edit+

#arly life and family 0ackground*edit+

Oarl mil /a3imilian Weber 'as born in 18<, in rfurt, "ro$ince of a3ony, "russia)*+ He 'asthe oldest of the se$en children of /a3 Weber r), a 'ealthy and prominent ci$il ser$ant andmember of the #ational iberal "arty, and his 'ife Helene (Fallenstein&, 'ho partly descendedfrom French Huuenot immirants and held stron moral absolutist ideas) *+*12+ Weber r)Bsin$ol$ement in public life immersed his home in both politics and academia, as his salon'elcomed many prominent scholars and public fiures) *+ -he youn Weber and his

brother Alfred, 'ho also became a socioloist and economist, thri$ed in this intellectualatmosphere) WeberBs 186< >hristmas presents to his parents, 'hen he 'as thirteen years old,'ere t'o historical essays entitled 7About the course of 5erman history, 'ith special reference tothe positions of the mperor and the "ope7, and 7About the oman Imperial period from>onstantine to the miration of nations7)*10+ In class, bored and unimpressed 'ith the teachers !'ho in turn resented 'hat they percei$ed as a disrespectful attitude ! he secretly read all forty$olumes of 5oethe,*1+*1%+ and it has been recently arued that this 'as an important influence onhis thouht and methodoloy*1<+ .efore enterin the uni$ersity, he 'ould read many otherclassical 'orks)*1%+ 4$er time, Weber 'ould also be sinificantly affected by the marital tensionbet'een his father, 7a man 'ho enCoyed earthly pleasures7, and his mother, ade$out >al$inist 7'ho souht to lead an ascetic life7)*16+*18+

/a3 Weber and his brothers,  Alfred and Oarl, in 1869

#ducation*edit+

In 1882 Weber enrolled in the Dni$ersity of Heidelber as a la' student)*19+ After a year of militaryser$ice, he transferred to theDni$ersity of .erlin)*1+  After his first fe' years as a student, durin'hich he spent much time 7drinkin beer and fencin7, Weber 'ould increasinly take hismotherBs side in family aruments and re' estraned from his father) *16+*18+*2=+imultaneously 'ithhis studies, he 'orked as a Cunior la'yer )*1+ In 188< Weber passed the e3aminationfor -eferendar , comparable to the bar association e3amination in the .ritish and American lealsystems) -hrouhout the late 188=s, Weber continued his study of la' and history) *1+ He earned

his la' doctorate in 1889 by 'ritin a dissertation on leal history titled)eelopment of thePrinciple of 4oint Lia(ility and the Separate Fund in the Pu(lic "rading $ompany out of

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ousehold and "rade $ommunities in Italian $ities) -his 'ork 'as used as part of a loner'ork >n the istory of "rading $ompanies in the Middle #ges, (ased on SouthC=uropeanSources, published in the same year )*21+ -'o years later, Weber completedhisHabilitationsschrift, -oman #grarian istory and its Significance for Pu(lic and Priate La+ ,'orkin 'ith Auust /eit@en)*22+*20+Ha$in thus become a PriatdoDent , Weber Coined theDni$ersity of .erlinBs faculty, lecturin and consultin for the o$ernment) *2+

#arly work*edit+

In the years bet'een the completion of his dissertation and habilitation, Weber took an interest incontemporary social policy) In 1888 he Coined the erein fEr Socialpoliti* ,*2%+ a ne' professionalassociation of 5erman economists affiliated 'ith the historical school, 'ho sa' the role ofeconomics primarily as findin solutions to the social problems of the ae and 'ho pioneeredlare scale statistical studies of economic issues) He also in$ol$ed himself in politics, Coinin theleft;leanin $anelical ocial >onress)*2<+ In 189= the erein established a research proram toe3amine 7the "olish Euestion7 or >stflucht G the influ3 of "olish farm 'orkers into eastern5ermany as local labourers mirated to 5ermanyBs rapidly industrialisin cities)*+ Weber 'as putin chare of the study and 'rote a lare part of the final report,*+*2%+ 'hich enerated considerableattention and contro$ersy and marked the beinnin of WeberBs reno'n as a social scientist)*+ From 1890 to 1899 Weber 'as a member of the #lldeutscher er(and  ("an;5erman eaue&,an orani@ation that campained aainst the influ3 of the "olish 'orkers the deree of WeberBssupport for the 5ermanisation of "oles and similar nationalist policies is still debated by modernscholars)*26+*28+ In some of his 'ork, in particular his pro$ocati$e lecture on 7-he #ation tate andconomic "olicy7 deli$ered in 189%, Weber criticises the immiration of "oles and blamesthe Junker  class for perpetuatin la$ic immiration to ser$e their selfish interests) *29+

/a3 Weber and his 'ife /arianne in 189

 Also in 1890 he married his distant cousin /arianne chniter , later a feminist acti$ist and author 

in her o'n riht,*+*0=+ 'ho 'as instrumental in collectin and publishin WeberBs Cournal articles asbooks after his death, 'hile her bioraphy of him is an important source for understandinWeberBs life)*01+*02+ -hey 'ould ha$e no children and it is usually ackno'leded that their marriae'as ne$er consummated)*2=+ -he marriae ranted lon;a'aited financial independence toWeber, allo'in him to finally lea$e his parentsB household) *18+ -he couple mo$ed to Freibur in189, 'here Weber 'as appointed professor of economics at the uni$ersity,*20+*2+ before acceptinthe same position at the Dni$ersity of Heidelber in 189<)*20+*2+ -here Weber became a centralfiure in the so;called 7Weber >ircle7, composed of other intellectuals such as his 'ife/arianne,5eor Jellinek, rnst -roeltsch, Werner ombart, /arc .loch, obert/ichels and 5yZry uk[cs)*+ Weber also remained acti$e in the erein and the $anelicalocial >onress)*+ His research in that period 'as focused on economics and leal history)*00+

In 1896 /a3 Weber r) died t'o months after a se$ere Euarrel 'ith his son that 'as ne$erresol$ed)*+*0+  After this, Weber became increasinly prone to depression, ner$ousnessand insomnia, makin it difficult for him to fulfill his duties as a professor )*1+*20+ His condition forced

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him to reduce his teachin and e$entually lea$e his course unfinished in the autumn of 1899) After spendin months in a sanatorium durin the summer and autumn of 19==, Weber and his'ife tra$elled to Italy at the end of the year and did not return to Heidelber until April 19=2) He'ould aain 'ithdra' from teachin in 19=0 and not return to it till 1919) WeberBs ordeal 'ithmental illness 'as carefully described in a personal chronoloy that 'as destroyed by his 'ife)-his chronicle 'as supposedly destroyed because /arianne Weber feared that /a3 WeberBs

'ork 'ould be discredited by the #a@is if his e3perience 'ith mental illness 'ere 'idely kno'n) *+

*0%+

(ater work*edit+

 After WeberBs immense producti$ity in the early 189=s, he did not publish any papers bet'eenearly 1898 and late 19=2, finally resinin his professorship in late 19=0) Freed from thoseobliations, in that year he accepted a position as associate editor of the  #rchies for SocialScience and Social elfare,*0<+ 'here he 'orked 'ith his colleaues dar Jaff: (de& and Wernerombart)*+*06+ His ne' interests 'ould lie in more fundamental issues of social sciences his 'orksfrom this latter period are of primary interest to modern scholars)*00+ In 19=, Weber bean topublish some of his most seminal papers in this Cournal, notably his essay "he Protestant =thicand the Spirit of $apitalism, 'hich became his most famous 'ork *08+ and laid the foundations for

his later research on the impact of cultures and reliions on the de$elopment of economicsystems)*09+ -his essay 'as the only one of his 'orks from that period that 'as published as abook durin his lifetime) ome other of his 'orks 'ritten in the first one and a half decades of the2=th century ! published posthumously and dedicated primarily from the fields of socioloy ofreliion, economic and leal socioloy ! are also reconised as amon his most importantintellectual contributions)*+

 Also in 19=, he $isited the Dnited tates and participated in the >onress of Arts and ciencesheld in connection 'ith the WorldBs Fair  (ouisiana "urchase 3position& in t) ouis) ?espite hispartial reco$ery, Weber felt that he 'as unable to resume reular teachin at that time andcontinued on as a pri$ate scholar, helped by an inheritance in 19=6) *2+*0<+ In 19=9, disappointed'ith the erein, he co;founded the 5erman ocioloical Association ()eutsche Gesellschaft fErSoDiologie, or ?5& and ser$ed as its first treasurer)*+ He 'ould, ho'e$er, resin from the ?5

in 1912)*+ In 1912, Weber tried to oranise a left;'in political party to combine social;democrats and liberals) -his attempt 'as unsuccessful, in part because many liberals fearedsocial;democratic re$olutionary ideals)*=+

Political inolements*edit+

/a3 Weber (foreround& in 1916 'ith rnst -oller  (facin&

 At the outbreak of World War I, Weber, aed %=, $olunteered for ser$ice and 'as appointed as areser$e officer and put in chare of orani@in the army hospitals in Heidelber, a role he fulfilleduntil the end of 191%)*0<+*1+ WeberBs $ie's on the 'ar and the e3pansion of the 5ermanempire chaned durin the course of the conflict)*=+*1+*2+ arly on he supported the nationalistrhetoric and the 'ar effort, thouh 'ith some hesitation as he $ie'ed the 'ar as a necessity tofulfill 5erman duty as a leadin state po'er) In time, ho'e$er, Weber became one of the mostprominent critics of 5erman e3pansionism and of the Oaiser Bs 'ar policies)*+ He publicly attackedthe .elian anne3ation policy andunrestricted submarine 'arfare and later supported calls forconstitutional reform, democratisation and uni$ersal suffrae)*+

Weber Coined the 'orker and soldier council of Heidelber in 1918) He then ser$ed in the5erman deleation to the"aris "eace >onference and as ad$isor to the >onfidential >ommittee

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for >onstitutional eform, 'hich drafted the Weimar >onstitution)*0<+ /oti$ated by hisunderstandin of the American model, he ad$ocated a stron, popularly elected presidency as aconstitutional counterbalance to the po'er of the professionalbureaucracy)*+ /ore contro$ersially,he also defended the pro$isions for emerency presidential po'ers that became  Article 8 of theWeimar >onstitution) -hese pro$isions 'ere later used by Adolf Hitler  to sub$ert the rest of theconstitution and institute rule by decree, allo'in his reime to suppress opposition and ain

dictatorial po'ers)*0+

Weber also ran, unsuccessfully, for a parliamentary seat, as a member of the liberal 5erman?emocratic "arty, 'hich he had co;founded)*+*+ He opposed both the leftist 5erman e$olutionof 1918!1919 and the ratification of the -reaty of ersailles, a principled position that defied thepolitical alinments in 5ermany at that time,*+ and 'hich may ha$e pre$ented Friedrich bert, thene' social;democratic "resident of 5ermany, from appointin Weber as minister or ambassador)*1+ Weber commanded 'idespread respect but relati$ely little influence) *+ WeberBs role in 5ermanpolitics remains contro$ersial to this day)

(ast years*edit+

WeberBs ra$e in Heidelber

Frustrated 'ith politics, Weber resumed teachin durin this time, first at the Dni$ersity ofienna, then, after 1919, at the Dni$ersity of /unich)*+*2+*0<+ His lectures from that period 'erecollected into maCor 'orks, such as the General =conomic istory , Science as aocation and Politics as a ocation)*+ In /unich, he headed the first 5erman uni$ersity instituteof socioloy, but ne$er held a professorial position in socioloy) /any colleaues and students in/unich attacked his response to the 5erman e$olution and some riht;'in students heldprotests in front of his home)*=+/a3 Weber contracted the panish flu and died of pneumonia in/unich on 1 June 192=)*+  At the time of his death, Weber had not finished 'ritin his magnumopus on socioloical theoryG =conomy and Society ) His 'ido' /arianne helped prepare it for itspublication in 1921!22)

"a% Weber's thought*edit+/a3 WeberBs .ureaucratic theory or model is sometimes also kno'n as the 7eal;ational7model) -he model tries to e3plain bureaucracy from a rational point of $ie' $ia nine (9& maincharacteristics or principles these are as follo'sG*%+

Ma. We0er's !ureaucratic Model 1(egal2Rational Model3*edit+

Weber 'rote that the modern bureaucracy in both the public and pri$ate sector relies on thefollo'in principles)

7First, it is based on the eneral principle of precisely defined and orani@ed across;the;boardcompetencies of the $arious offices) these competencies are underpinned by rules, la's, oradministrati$e reulations)7*<+ For Weber, this means*6+

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1) A riid di$ision of labor is established 'hich clearly identifies the reular tasks and dutiesof the particular bureaucratic system)

2) -here are firmly established chains of command, and the duties and capacity to coerceothers to comply is described by reulation)

0) eular and continuous e3ecution of the assined duties is undertaken by hirin people'ith particular Eualifications 'hich are certified)

Weber notes that these three aspects 7constitute the essence of bureaucratic administration)))inthe public sector) In the pri$ate sector, these three aspects constitute the essence of abureaucratic manaement of a pri$ate company)7 *8+

/ain "rinciples (>haracteristics&G

1) peciali@ed roles)

2) ecruitment based on merit (e)) tested throuh open competition&)

0) Dniform principles of placement, promotion, and transfer in an administrati$e system)

) >areerism 'ith systematic salary structure)

%) Hierarchy, responsibility and accountability)

<) ubCection of official conduct to strict rules of discipline and control)

6) upremacy of abstract rules)

8) Impersonal authority) (e)) 4ffice bearer does not brin the office 'ith him&)

9) "olitical neutrality)

/eritsG /a3 Weber himself noted, real bureaucracy 'ill be less optimal and effecti$e than hisideal type model) ach of WeberBs principles can deenerate, more so, 'hen it is utili@ed toanaly@e the indi$idual le$el in the orani@ation) .ut 'hen implemented in a roup settin inorani@ational, some form of efficiency and effecti$eness can be achie$ed, especially 'ithreards to better output) -his is especially true 'hen the .ureaucratic model emphasis onEualification (merits&, speciali@ation of Cob;scope (labour&, hierarchy of po'er, rules anddiscipline)*9+

?emeritsG Ho'e$er, competencies, efficiency and effecti$eness can be unclear and contradictoryespecially 'hen dealin 'ith o$ersimplified matters) In a dehumani@ed bureaucracy, infle3ible in

distributin the Cob;scope, 'ith e$ery 'orker ha$in to speciali@e from day one 'ithout rotatintasks for fear of decreasin output, tasks are often routine and can contribute to boredom) -hus,employees can sometimes feel that they are not part of the orani@ationBs 'ork $ision andmissions) >onseEuently, they do not ha$e any sense of belonin in the lon term) Furthermore,this type of orani@ation tends to in$ite e3ploitation and underestimate the potential of theemployees, as creati$ity of the 'orkers is brushed aside, in fa$our of strict adherence to rules,reulations and procedures)*%+

4nspirations*edit+

WeberBs thinkin 'as stronly influenced by 5erman idealism and particularly by neo;Oantianism, to 'hich he had been e3posed throuh Heinrich ickert, his professorial colleaueat the Dni$ersity of Freibur)*+ specially important to WeberBs 'ork is the neo;Oantian belief that

reality is essentially chaotic and incomprehensible, 'ith all rational order deri$in from the 'ay in'hich the human mind focuses its attention on certain aspects of reality and oranises the

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resultin perceptions)*+ WeberBs opinions reardin the methodoloy of the social sciences sho'parallels 'ith the 'ork of contemporary neo;Oantian philosopher and pioneerinsocioloist 5eor immel)*%=+

Weber 'as also influenced by Oantian ethics, 'hich he nonetheless came to think of as obsoletein a modern ae lackin in reliious certainties) In this last respect, the influence of Friedrich

#iet@scheBs philosophy is e$ident)*+

 Accordin to the Stanford =ncyclopedia of Philosophy , the7deep tension bet'een the Oantian moral imperati$es and a #iet@schean dianosis of themodern cultural 'orld is apparently 'hat i$es such a darkly traic and anostic shade toWeberBs ethical 'orld$ie'7)*+  Another maCor influence in WeberBs life 'as the 'ritins of Oarl/ar3 and the 'orkins of socialist thouht in academia and acti$e politics) While Weber sharessome of /ar3Bs consternation 'ith bureaucratic systems and malins them as bein capable ofad$ancin their o'n loic to the detriment of human freedom and autonomy, Weber $ie'sconflict as perpetual and ine$itable and does not host the spirit of a materially a$ailable utopia)*%1+-houh the influence of his motherBs >al$inist reliiosity is e$ident throuhout WeberBs life and'ork, and thouh he maintained a deep, lifelon interest in the study of reliions, Weber 'asopen about the fact that he 'as personally irreliious)*%2+*%0+

 As a political economist and economic historian, Weber beloned to the 7younest7

5erman historical school of economics, represented by academics such as5usta$ $onchmoller  and his student Werner ombart) .ut, e$en thouh WeberBs research interests 'ere$ery much in line 'ith that school, his $ie's on methodoloy and the theory of $alue di$eredsinificantly from those of other 5erman historicists and 'ere closer, in fact, to those of >arl/ener  and the Austrian chool, the traditional ri$als of the historical school)*%+*%%+ (ee sectionon conomics)&

Methodology*edit+

 A pae from the typescript of the socioloy of la' 'ithin conomy and ociety

Dnlike some other classical fiures (>omte, ?urkheim& Weber did not attempt, consciously, tocreate any specific set of rules o$ernin social sciences in eneral, or socioloy in particular)*+ In comparison 'ith ?urkheim and /ar3, Weber 'as more focused on indi$iduals and cultureand this is clear in his methodoloy)*1+ Whereas ?urkheim focused on the society, Weberconcentrated on the indi$iduals and their actions (see structure and action discussion& and'hereas /ar3 arued for the primacy of the material 'orld o$er the 'orld of ideas, Weber $aluedideas as moti$atin actions of indi$iduals, at least in the bi picture)*1+*%<+*%6+

ocioloy, for /a3 Weber, isG

))) a science 'hich attempts the interpreti$e understandin of social action in order thereby toarri$e at a causal e3planation of its course and effects)

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/a3 Weber *%8+

Weber 'as concerned 'ith the Euestion of  obCecti$ity and subCecti$ity)*+ Weberdistinuished social action from social beha$ior , notin that social action must be understoodthrouh ho' indi$iduals subCecti$ely relate to one another)*+*%9+tudy of social actionthrouh interpreti$e means (erstehen& must be based upon understandin the subCecti$emeanin and purpose that indi$iduals attach to their actions)*+*00+ ocial actions may ha$e easilyidentifiable and obCecti$e means, but much more subCecti$e ends and the understandin of thoseends by a scientist is subCect to yet another layer of subCecti$e understandin (that of thescientist&)*+ Weber noted that the importance of subCecti$ity in social sciences makes creation offool;proof, uni$ersal la's much more difficult than in natural sciences and that the amount ofobCecti$e kno'lede that social sciences may achie$e is precariously limited)*+ 4$erall, Webersupported the oal of obCecti$e science, but he noted that it is an unreachable oal ! althouhone definitely 'orth stri$in for )*+

-here is no absolutely 7obCecti$e7 scientific analysis of culture)))) All kno'lede of culturalreality ))) is al'ays kno'lede from particular points of $ie')))) an 7obCecti$e7 analysis of culturale$ents, 'hich proceeds accordin to the thesis that the ideal of science is the reduction of

empirical reality to 7la's7, is meaninless ))) *because+ ))) the kno'lede of social la's is notkno'lede of social reality but is rather one of the $arious aids used by our minds for attaininthis end)

/a3 Weber, 1>(ectiity1 in Social Science, 19=*<=+

-he principle of 7methodoloical indi$idualism7, 'hich holds that social scientists should seek tounderstand collecti$ities (such as nations, cultures, o$ernments, churches, corporations, etc)&solely as the result and the conte3t of the actions of indi$idual persons, can be traced to Weber,particularly to the first chapter of  =conomy and Society , in 'hich he arues that only indi$iduals7can be treated as aents in a course of subCecti$ely understandable action7) *%%+*%9+ In other 'ords,Weber arued that social phenomena can be understood scientifically only to the e3tent that theyare captured by models of the beha$iour of purposeful indi$iduals, models that Weber called

7ideal types7, from 'hich actual historical e$ents 'ill necessarily de$iate due to accidental andirrational factors)*%%+ -he analytical constructs of an ideal type ne$er e3ist in reality, but pro$ideobCecti$e benchmarks aainst 'hich real;life constructs can be measured)*<1+

We kno' of no scientifically ascertainable ideals) -o be sure, that makes our efforts morearduous than in the past, since 'e are e3pected to create our ideals from 'ithin our breast in the$ery ae of subCecti$ist culture)

/a3 Weber, 19=9*<2+

WeberBs methodoloy 'as de$eloped in the conte3t of a 'ider debate about methodoloy ofsocial sciences, the Methodenstreit )*00+ WeberBs position 'as close to historicism, as heunderstood social actions as bein hea$ily tied to particular historical conte3ts and its analysis

reEuired the understandin of subCecti$e moti$ations of indi$iduals (social actors&)*00+

 -husWeberBs methodoloy emphasises the use of comparati$e historical analysis)*<0+ -herefore, Weber 'as more interested in e3plainin ho' a certain outcome 'as the result of $arious historicalprocesses rather than predictin an outcome of those processes in the future)*%6+

Rationalisation*edit+

/any scholars ha$e described rationalisation and the Euestion of indi$idual freedom in anincreasinly rational society, as the main theme of WeberBs 'ork) *+*<+*<%+*<<+ -his theme 'as situatedin the larer conte3t of the relationship bet'een psycholoical moti$ations, cultural $alues andbeliefs (primarily, reliion& and the structure of the society (usually determined by the economy&)*%6+

.y rationalisation, Weber understood first, the indi$idual cost;benefit calculation, second, the

'ider, bureaucratic oranisation of the oranisations and finally, in the more eneral sense as theopposite of understandin the reality throuh mystery and maic (disenchantment&)*<<+

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-he fate of our times is characterised by rationalisation and intellectualisation and, abo$e all, bythe 7disenchantment of the 'orld7

/a3 Weber *<6+

Weber bean his studies of the subCect in "he Protestant =thic and the Spirit of $apitalism , in

'hich he arued that the redefinition of the connection bet'een 'ork and piety in "rotestantismand especially in ascetic "rotestant denominations, particularly >al$inism, shifted human effortto'ards rational efforts aimed at achie$in economic ain) *<8+*<9+ In "rotestant reliion, >hristianpiety to'ards 5od 'as e3pressed throuh oneBs secular $ocation (secularisation of callin&)*<9+-herational roots of this doctrine, he arued, soon re' incompatible 'ith and larer than thereliious and so the latter 'ere e$entually discarded) *6=+

Weber continued his in$estiation into this matter in later 'orks, notably in his studieson bureaucracy and on the classification of leitimate authority into three types ! ational;leal, traditional and charismatic ! of 'hich the leitimate (or rational& is the dominant one in themodern 'orld)*+ In these 'orks Weber described 'hat he sa' as societyBs mo$ement to'ardsrationalisation)*+ imilarly, rationalisation could be seen in the economy, 'ith the de$elopment ofhihly rational and calculatin capitalism)*+ Weber also sa' rationalisation as one of the main

factors settin the uropean West apart from the rest of the 'orld) *+ationalisation relied on deepchanes in ethics, reliion, psycholoy and culture chanes that first took place in the Westernci$ilisation)*+

What Weber depicted 'as not only the secularisation of Western culture, but also and especiallythe de$elopment of modern societies from the $ie'point of rationalisation) -he ne' structures ofsociety 'ere marked by the differentiation of the t'o functionally intermeshin systems that hadtaken shape around the oranisational cores of the capitalist enterprise and the bureaucraticstate apparatus) Weber understood this process as the institutionalisation of purposi$e;rationaleconomic and administrati$e action) -o the deree that e$eryday life 'as affected by this culturaland societal rationalisation, traditional forms of life ! 'hich in the early modern period 'eredifferentiated primarily accordin to oneBs trade ! 'ere dissol$ed)

JNren Habermas, Modernity's $onsciousness of "ime, 7;;6 ?7;8@ *9+

Features of rationalisation include increasin kno'lede, ro'in impersonality and enhancedcontrol of social and material life)*+ Weber 'as ambi$alent to'ards rationalisation 'hile admittinit 'as responsible for many ad$ances, in particular, freein humans from traditional, restricti$eand illoical social uidelines, he also criticised it for dehumanisin indi$iduals as 7cos in themachine7 and curtailin their freedom, trappin them in the bureaucratic iron cae of rationalityand bureaucracy)*+*<+*61+*62+ elated to rationalisation is the process of disenchantment, in 'hich the'orld is becomin more e3plained and less mystical, mo$in from polytheistic reliionsto monotheistic ones and finally to the 5odless science of modernity)*+ -hose processes affect allof society, remo$in 7sublime $alues))) from public life7 and makin art less creati$e)*60+

In a dystopian critiEue of rationalisation, Weber notes that modern society is a product of

an indi$idualistic dri$e of the eformation, yet at the same time, the society created in thisprocess is less and less 'elcomin of indi$idualism) *+

Ho' is it at all possible to sal$ae any remnants of 7indi$idual7 freedom of mo$ement in anysense i$en this all;po'erful trend\

/a3 Weber *+

Sociology of religion*edit+

WeberBs 'ork in the field of  socioloy of reliion started 'ith the essay "he Protestant =thic andthe Spirit of $apitalism and continued 'ith the analysis of  "he -eligion of $hina $onfucianismand "aoism, "he -eligion of India "he Sociology of induism and Buddhism and #ncient

4udaism) His 'ork on other reliions 'as interrupted by his sudden death in 192=, 'hichpre$ented him from follo'in #ncient 4udaism 'ith studies of early >hristianity and Islam)*6+ Histhree main themes in the essays 'ere the effect of reliious ideas on economic acti$ities, the

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relation bet'een social stratification and reliious ideas and the distinuishable characteristics ofWestern ci$ilisation)*6%+

Weber sa' reliion as one of the core forces in the society) *<0+ His oal 'as to find reasons for thedifferent de$elopment paths of the cultures of the 4ccidentand the 4rient, althouh 'ithout Cudin or $aluin them, like some of the contemporary thinkers 'ho follo'ed the social

?ar'inist paradim Weber 'anted primarily to e3plain the distincti$e elements of the Westernci$ilisation)*6%+ In the analysis of his findins, Weber maintained that >al$inist (and more 'idely,"rotestant& reliious ideas had had a maCor impact on the social inno$ation and de$elopment ofthe economic system of the West, but noted that they 'ere not the only factors in thisde$elopment) 4ther notable factors mentioned by Weber included the rationalism of scientificpursuit, merin obser$ation 'ith mathematics, science of scholarship and Curisprudence,rational systematisation and bureaucratisation of o$ernment administration and economicenterprise)*6%+ In the end, the study of the socioloy of reliion, accordin to Weber, focused onone distinuishin part of the Western culture, the decline of beliefs in maic, or 'hat he referredto as 7disenchantment of the 'orld7)*6%+

Weber also proposed a socioe$olutionary model of reliious chane, sho'in that in eneral,societies ha$e mo$ed from maic to polytheism, then topantheism, monotheism and

finally, ethical monotheism)*6<+ Accordin to Weber, this e$olution occurred as the ro'ineconomic stability allo'edprofessionalisation and the e$olution of e$er moresophisticated priesthood)*66+  As societies re' more comple3 and encompassed different roups,a hierarchy of ods de$eloped and as po'er in the society became more centralised, theconcept of a sinle, uni$ersal 5od became more popular and desirable) *68+

The Protestant Ethic and the Spirit of Capitalism*edit+Main article "he Protestant =thic and the Spirit of $apitalism

>o$er of a 5erman edition of "he Protestant =thic and the Spirit of $apitalism

WeberBs essay "he Protestant =thic and the Spirit of $apitalism is his most famous 'ork)*08+ It isarued that this 'ork should not be $ie'ed as a detailed study of "rotestantism, but rather as anintroduction into WeberBs later 'orks, especially his studies of interaction bet'een $ariousreliious ideas and economic beha$iour as part of the rationalisation of the  economic system)*69+In "he Protestant =thic and the Spirit of $apitalism, Weber put for'ard the thesis that >al$inistethic and ideas influenced the de$elopment of capitalism) *69+ He noted the post;eformation shiftof uropeBs economic centre a'ay from >atholic countries such as France, pain and Italy, andto'ard "rotestant countries such as the #etherlands, nland, cotland and 5ermany) Weberalso noted that societies ha$in more "rotestants 'ere those 'ith a more hihly de$elopedcapitalist economy)*8=+imilarly, in societies 'ith different reliions, most successful businessleaders 'ere "rotestant)*69+ Weber thus arued that oman >atholicism impeded the

de$elopment of the capitalist economy in the West, as did other reliions suchas>onfucianism and .uddhism else'here in the 'orld)*69+

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-he de$elopment of the concept of the callin Euickly a$e to the modern entrepreneur afabulously clear conscience ! and also industrious 'orkers he a$e to his employees as the'aes of their ascetic de$otion to the callin and of co;operation in his ruthless e3ploitation ofthem throuh capitalism the prospect of eternal sal$ation)

/a3 Weber *<9+

>hristian reliious de$otion had historically been accompanied by reCection of mundane affairs,includin economic pursuit)*81+Weber sho'ed that certain types of "rotestantism !notably >al$inism  ! 'ere supporti$e of rational pursuit of economic ain and 'orldly acti$itiesdedicated to it, seein them as endo'ed 'ith moral and spiritual sinificance) *<8+ Weber aruedthat there 'ere many reasons to look for the oriins of modern capitalism in the reliious ideas of the eformation)*82+ In particular, the "rotestant ethic (or more specifically, >al$inist ethic&moti$ated the belie$ers to 'ork hard, be successful in business and rein$est their profits infurther de$elopment rather than fri$olous pleasures)*69+ -he notion of callin meant that eachindi$idual had to take action as an indication of their sal$ation Cust bein a member of the>hurch 'as not enouh)*<9+ "redestination also reduced aonisin o$er economic ineEuality andfurther, it meant that a material 'ealth could be taken as a sin of  sal$ation in the afterlife)*69+

*80+

 -he belie$ers thus Custified pursuit of profit 'ith reliion, as instead of bein fuelled by morallysuspect reed or ambition, their actions 'ere moti$ated by a hihly moral and respectedphilosophy)*69+ -his Weber called the 7spirit of capitalism7G it 'as the "rotestant reliious ideoloythat 'as behind ! and ine$itably led to ! the capitalist economic system)*69+ -his theory is often$ie'ed as a re$ersal of /ar3Bs thesis that the economic 7base7 of society determines all otheraspects of it)*<8+

Weber abandoned research into "rotestantism because his colleaue rnst -roeltsch, aprofessional theoloian, had beun 'ork on the book "he Social "eachings of the $hristian$hurches and Sects) Another reason for WeberBs decision 'as that -roeltschBs 'ork alreadyachie$ed 'hat he desired in that areaG layin the round'ork for a comparati$e analysis ofreliion and society)*8+

-he phrase 7'ork ethic7 used in modern commentary is a deri$ati$e of the 7"rotestant ethic7discussed by Weber) It 'as adopted 'hen the idea of the "rotestant ethic 'as eneralised toapply to the Japanese people, Je's and other non;>hristians and thus lost its reliiousconnotations)*8%+

The Religion of China: Confucianism and Taoism*edit+Main article "he -eligion of $hina $onfucianism and "aoism

"he -eligion of $hina $onfucianism and "aoism 'as WeberBs second maCor 'ork on thesocioloy of reliion) Hans H) 5erth edited and translated this te3t into nlish, 'ith anintroduction by >) O) Wan)*8<+ Weber focused on those aspects of >hinese society that 'eredifferent from those of Western urope, especially those aspects that contrasted 'ith "uritanism)His 'ork also Euestioned 'hy capitalism did not de$elop in >hina) *86+ He focused on the issues of>hinese urban de$elopment, >hinese patrimonialism and officialdom and >hinese

reliion and philosophy (primarily, >onfucianism and -aoism&, as the areas in 'hich >hinesede$elopment differed most distincti$ely from the uropean route) *86+

 Accordin to Weber, >onfucianism and "uritanism are mutually e3clusi$e types of rationalthouht, each attemptin to prescribe a 'ay of life based on reliious doma) *88+ #otably, theyboth $alued self;control and restraint and did not oppose accumulation of 'ealth) *88+ Ho'e$er, toboth those Eualities 'ere Cust means to the final oal and here they 'ere di$ided by a keydifference) *80+ >onfucianismBs oal 'as 7a cultured status position7, 'hile "uritanismBs oal 'as tocreate indi$iduals 'ho are 7tools of 5od7) *88+ -he intensity of belief and enthusiasm for action 'ererare in >onfucianism, but common in "rotestantism)*88+  Acti$ely 'orkin for 'ealth 'asunbecomin a proper >onfucian)*80+ -herefore, Weber states that it 'as this difference in socialattitudes and mentality, shaped by the respecti$e, dominant reliions, that contributed to thede$elopment of capitalism in the West and the absence of it in >hina) *88+

The Religion of India: The Sociology of Hinduism and Buddhism*edit+

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Main article "he -eligion of India "he Sociology of induism and Buddhism

"he -eligion of India "he Sociology of induism and Buddhism 'as WeberBs third maCor 'orkon the socioloy of reliion) In this 'ork he deals 'ith the structure of Indian society, 'iththe orthodo3 doctrines of  Hinduism and the heterodo3 doctrines of .uddhism, 'ith modificationsbrouht by the influence of popular reliiosity and finally 'ith the impact of reliious beliefs on the

secular ethic of Indian society)*89+

 ike >onfucianism in >hina, for Weber, Hinduism in India 'as abarrier for capitalism)*80+ -he Indian caste system made it $ery difficult for indi$iduals to ad$ance inthe society beyond their caste)*80+ Acti$ity, includin economic acti$ity, 'as seen as unimportant inthe conte3t of the ad$ancement of the soul)*80+

Weber ended his research of society and reliion in India by brinin in insihts from his pre$ious'ork on >hina to discuss similarities of the Asian belief systems)*9=+ He notes that the beliefs sa'the meanin of life as other'orldly mystical e3perience)*9=+ -he social 'orld is fundamentallydi$ided bet'een the educated elite, follo'in the uidance of a prophet or 'ise man and theuneducated masses 'hose beliefs are centered on maic) *9=+ In Asia, there 'as no/essianicprophecy to i$e plan and meaning to the eeryday life of educated and uneducated ali*e)*9=+ Weber Cu3taposed such /essianic prophecies (also called ethical prophecies&, notably fromthe #ear ast reion to the e3emplary prophecies found on the Asiatic mainland, focused more

on reachin to the educated elites and enlihtenin them on the proper 'ays to li$e oneBs life,usually 'ith little emphasis on hard 'ork and the material 'orld) *9=+*91+ It 'as those differences thatpre$ented the countries of the 4ccident from follo'in the paths of the earlier >hinese andIndian ci$ilisations) His ne3t 'ork, Ancient Judaism'as an attempt to pro$e this theory)*9=+

 Ancient Judaism*edit+Main article  #ncient 4udaism 3(oo*9

In #ncient 4udaism, his fourth maCor 'ork on the socioloy of reliion, Weber attempted toe3plain the factors that resulted in the early differencesbet'een4riental and 4ccidental reliiosity)*92+ He contrasted theinner'orldly asceticism de$eloped by Western >hristianity 'ith mystical contemplation of thekind de$eloped in India) *92+ Weber noted that some aspects of >hristianity souht to conEuer and

chane the 'orld, rather than 'ithdra' from its imperfections)*92+

-his fundamental characteristicof >hristianity ('hen compared to Far astern reliions& stems oriinally from ancientJe'ish prophecy)*90+

Weber claimed that Judaism not only fathered >hristianity and Islam, but 'as crucial to the riseof the modern 4ccidental state JudaismBs influence 'as as important as Hellenistic and omancultures)

WeberBs premature death in 192= pre$ented him from follo'in his planned analysis of "salms,the .ook of Job, -almudic Je'ry, early >hristianity and Islam)

Economy and Society *edit+Main article =conomy and Society 

In his manum opus, =conomy and Society , Weber distinuished three ideal types of reliiousattitudesG 'orld;flyin mysticism, 'orld;reCectin asceticism, and inner;'orldly asceticism) Hedefined maic as a pre;reliious acti$ity)*9+

Theodicy of Fortune and Misfortune*edit+

-he -heodicy of fortune and misfortune 'ithin socioloy is the theory, as Weber suested, ofho' 7members of different social classes adopt different belief systems, or theodices, to e3plaintheir social situation7)*9%+

-he concept of theodicy 'as e3panded mainly 'ith the thouht of Weber and his addition ofethical considerations to the subCect of reliion) -here is this ethical part of reliion, includin 7(1&soterioloy and (2& theodicy) -hese mean, respecti$ely, ho' people understand themsel$es to beable to be in a correct relationship 'ith supernatural po'ers, and ho' to e3plain e$il ! or 'hy bad

thins seem to happen to those 'ho seem to be ood people7) *9<+ -here is a separation ofdifferent theodicies 'ith reard to class) 7-heodicies of misfortune tend to the belief that 'ealth

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and other manifestations of pri$ilee are indications or sins of e$il)))) In contrast, theodicies offortune emphasise the notion that pri$ilees are a blessin and are deser$ed)7 *9<+ Weber also'rites that 7the affluent embrace ood fortune theodicies, 'hich emphasise that prosperity is ablessin of 5od)))*'hile+ theodices of misfortune emphasise that affluence is a sin of e$il andthat sufferin in this 'orld 'ill be re'arded in the ne3t)7 *9%+ -hus these t'o distinctions can beapplied not only to class structure 'ithin society but denomination and racial sereation 'ithin

reliion)Weber defines the importance of societal class 'ithin reliion by e3aminin the differencebet'een the t'o theodicies and to 'hat class structures they apply) -he concept of 7'ork ethic7is attached to the theodicy of fortune thus, because of the "rotestant 7'ork ethic7, there 'as acontribution of hiher class outcomes and more education amon "rotestants) *96+ -hose 'ithoutthe 'ork ethic clun to the theodicy of misfortune, belie$in 'ealth and happiness 'ere rantedin the afterlife) Another e3ample of ho' this belief of reliious theodicy influences class, is thatthose of lo'er status, the poor, clin to deep reliiousness and faith as a 'ay to comfortthemsel$es and pro$ide hope for a more prosperous future, 'hile those of hiher status clin tothe sacraments or actions that pro$e their riht of possessin reater 'ealth)*9%+

-hese t'o theodicies can be found in the denominational sereation 'ithin the reliious

community) -he main di$ision can be seen bet'een the mainline "rotestant and e$anelicaldenominations and their relation to the class into 'hich their particular theodicy pertains) Fore3ample, mainline churches, 'ith their upper class conreations, 7promote*d+ order, stability,and conser$atism, and in so doin pro$ed to be a po'erful source of leitimation of the statusEuo and of e3istin disparities in the distribution of 'ealth and po'er7 because much of the'ealth of the church comes from the conreation) *98+ In contrast, "entecostal churches adoptedthe theodicy of misfortune) -hey instead 7ad$ocated chane intended to ad$ance the cause of Custice and fairness7)*98+ -hus the learned and upper class reliious churches 'ho preach thetheodicy of fortune, ultimately support capitalism and corporation, 'hile the churches 'hoadopted the theodicy of misfortune, instead preached eEuality and fairness)

Politics and goernment*edit+

In political socioloy, one of WeberBs most influential contributions is his Politics as aocation essay) -herein, Weber un$eils the definition of the state as that entity that possessesa monopoly on the leitimate use of physical force)*99+*1==+ Weber 'rote that politics is the sharin of stateBs po'er bet'een $arious roups, and political leaders are those 'ho 'ield this po'er )*99+ Apolitician must not be a man of the 7true >hristian ethic7, understood by Weber as bein the ethicof the ermon on the /ount, that is to say, the inCunction to turn the other cheek) *1=1+ An adherentof such an ethic ouht rather to be understood to be asaint, for it is only saints, accordin toWeber, that can appropriately follo' it)*1=1+ -he political realm is no realm for saints a politicianouht to marry the ethic of ultimate ends and the ethic of responsibility and must possess both apassion for his $ocation and the capacity to distance himself from the subCect of his e3ertions (theo$erned&) *1=1+

Weber distinuished three ideal types of political leadership (alternati$ely referred to as three

types of domination, leitimisation or authority&G*%+

1) charismatic domination (familial and reliious&,

2) traditional domination (patriarchs, patrimonialism, feudalism& and

0) leal domination (modern la' and state, bureaucracy&)*1=2+

In his $ie', e$ery historical relation bet'een rulers and ruled contained such elements and theycan be analysed on the basis of this tripartite distinction)*1=0+ He notes that the instability ofcharismatic authority forces it to 7routinise7 into a more structured form of authority)*61+ In a puretype of traditional rule, sufficient resistance to a ruler can lead to a 7traditional re$olution7) -he

mo$e to'ards a rational;leal structure of authority, utilisin a bureaucratic structure, is ine$itablein the end)*1=+ -hus this theory can be sometimes $ie'ed as part of the social e$olutionism theory)

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-his ties to his broader concept of  rationalisation by suestin the ine$itability of a mo$e in thisdirection)*61+

.ureaucratic administration means fundamentally domination throuh kno'lede)

 &dam mithFrom Wikipedia, the free encyclopedia

For other people named #dam Smith, see  #dam Smith 3disam(iguation9.

%da !ith

Born 16 <!ne 1D2E  @S

(5 <!ne 1D2E FS

7ircaldy, ie, Sco&land,Uni&ed 7ingdo"

Died 1D <!ly 1D90 (aged 6D

-din!rgh, Sco&land, Uni&ed 7ingdo"

Nationality Sco&&ish#1$

%la ater Universi&y o 4lasgo+

*alliol )ollege, F/ord

Nota(le work  The Wealth of Nations, The Theory of Moral

Sentiments

Religion )hris&ian

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Region %es&ern philosophy

!chool )lassical econo"ics

&ain

interests

Poli&ical philosophy, e&hics, econo"ics

Nota(le ideas )lassical econo"ics,

"odern ree "are&,

division o lao!r ,

&he invisile hand

)nfluences#sho+$

)nfluenced#sho+$

!ignature

"dam Smith (1< June 1620 # (% June 1620 4& ! 16 July 169=& 'as a .ritish moral philosopher ,pioneer of  political economy, and key cottish nlihtenment fiure)*2+

mith is best kno'n for t'o classic 'orksG "he "heory of Moral Sentiments (16%9&, and #nIn2uiry into the /ature and $auses of the ealth of /ations (166<&) -he latter, usuallyabbre$iated as "he ealth of /ations, is considered his magnum opus and the first modern 'orkof economics) mith is cited as the father of modern economics and is still amon the mostinfluential thinkers in the field of economics today)*0+

mith studied social philosophy at the Dni$ersity of 5laso' and at .alliol >ollee, 43ford,'here he 'as one of the first students to benefit from scholarships set up by fello' cot, Johnnell) After raduatin, he deli$ered a successful series of public lectures at  dinburh, leadinhim to collaborate 'ith ?a$id Hume durin the cottish nlihtenment) mith obtained aprofessorship at 5laso' teachin moral philosophy, and durin this time he 'rote andpublished "he "heory of Moral Sentiments) In his later life, he took a tutorin position thatallo'ed him to tra$el throuhout urope, 'here he met other intellectual leaders of his day)

mith laid the foundations of classical free market economic theory) "he ealth of /ations 'as aprecursor to the modern academic discipline of economics) In this and other 'orks, hee3pounded upon ho' rational self;interest and competition can lead to economic prosperity)mith 'as contro$ersial in his o'n day and his eneral approach and 'ritin style 'ere oftensatirised by -ory 'riters in the moralisin tradition of William Hoarth andJonathan 'ift) In2==%, "he ealth of /ations 'as named amon the 1== .est cottish .ooks of all time)*+ It issaid former DO "rime /inister /araret -hatcher  carried a copy of the book in her handba) *%+

Contents

  *hide+

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• 1 .ioraphy

o 1)1 arly life

o 1)2 Formal education

o 1)0 -eachin career 

o 1) -utorin and tra$els

o 1)% ater years

• 2 "ersonality and beliefs

o 2)1 >haracter 

o 2)2 eliious $ie's

• 0 "ublished 'orks

o 0)1 "he "heory of Moral Sentiments

o 0)2 "he ealth of /ations

o 0)0 >riticism and dissent

o 0) 4ther 'orks

• eacy

o )1 In economics and moral philosophy

o )2 In .ritish Imperial debates

o )0 "ortraits, monuments, and banknotes

o ) esidence

o )% As a symbol of free market economics

• % ee also

• < #otes

• 6 >itations

• 8 eferences

• 9 Further readin

• 1= 3ternal links

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Biography *edit+

#arly life*edit+

"ortrait of mithBs mother, /araret ?oulas

mith 'as born in Oirkcaldy, in the >ounty of Fife, in cotland) His father, also of the same

name, 'as a cottish riter to the Signet (senior  solicitor &, ad$ocate, and prosecutor  (Jude Ad$ocate& and also ser$ed as comptroller of the >ustoms in Oirkcaldy)*<+ In 162= he married/araret ?oulas, dauhter of the landed obert ?oulas of trathendry, also in Fife) His fatherdied t'o months after he 'as born, lea$in his mother a 'ido')*6+ -he date of mithBs baptisminto the >hurch of cotland at Oirkcaldy 'as % June 1620, *8+and this has often been treated as if it'ere also his date of birth,*<+ 'hich is unkno'n) Althouh fe' e$ents in mithBs early childhoodare kno'n, the cottish Cournalist John ae, mithBs biorapher, recorded that mith 'asabducted by ypsies at the ae of three and released 'hen others 'ent to rescue him) *# 1+ mith'as close to his mother, 'ho probably encouraed him to pursue his scholarly ambitions) *1=+ Heattended the .urh chool of Oirkcaldycharacterised by ae as 7one of the best secondaryschools of cotland at that period7*9+from 1629 to 1606, he learned atin, mathematics, history,and 'ritin)*1=+

Formal education*edit+

 A commemorati$e plaEue for mith is located in mithBs home to'n of Oirkcaldy)

mith entered the Dni$ersity of 5laso' 'hen he 'as fourteen and studied moralphilosophy under Francis Hutcheson)*1=+ Here, mith de$eloped his passion for liberty, reason,and free speech) In 16= mith 'as the raduate scholar presented to undertake postraduatestudies at .alliol >ollee, 43ford, under the nell 3hibition)*11+

 Adam mith considered the teachin at 5laso' to be far superior to that at 43ford, 'hich hefound intellectually stiflin)*12+ In .ook , >hapter II of "he ealth of /ations, mith 'roteG 7In theDni$ersity of 43ford, the reater part of the public professors ha$e, for these many years, i$en

up altoether e$en the pretence of teachin)7 mith is also reported to ha$e complained tofriends that 43ford officials once disco$ered him readin a copy of ?a$id HumeBs "reatise onuman /ature, and they subseEuently confiscated his book and punished him se$erely for

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readin it)*9+*10+*1+ Accordin to William obert cott, 7-he 43ford of *mithBs+ time a$e little if anyhelp to'ards 'hat 'as to be his life'ork)7*1%+ #e$ertheless, mith took the opportunity 'hile at43ford to teach himself se$eral subCects by readin many books from the shel$es of thelare .odleian ibrary)*1<+When mith 'as not studyin on his o'n, his time at 43ford 'as not ahappy one, accordin to his letters)*16+ #ear the end of his time there, mith bean sufferin fromshakin fits, probably the symptoms of a ner$ous breakdo'n)*18+ He left 43ford Dni$ersity in 16<,

before his scholarship ended)*18+*19+

In .ook of "he ealth of /ations, mith comments on the lo' Euality of instruction and themeaer intellectual acti$ity atnlish uni$ersities, 'hen compared to their cottish counterparts)He attributes this both to the rich endo'ments of the collees at 43ford and >ambride, 'hichmade the income of professors independent of their ability to attract students, and to the fact thatdistinuished men of letters could make an e$en more comfortable li$in as ministers ofthe >hurch of nland)*1+

 Adam mithBs discontent at 43ford miht be in part due to the absence of his belo$ed teacher in5laso', Francis Hutcheson) Hutcheson 'as 'ell rearded as one of the most prominentlecturers at the Dni$ersity of 5laso' in his day and earned the approbation of students,colleaues, and e$en ordinary residents 'ith the fer$or and earnestness of his orations ('hich

he sometimes opened to the public&) His lectures endea$oured not merely to teach philosophybut to make his students embody that philosophy in their li$es, appropriately acEuirin theepithet, the preacher of philosophy) Dnlike mith, Hutcheson 'as not a system builder rather it'as his manetic personality and method of lecturin that so influenced his students and causedthe reatest of those to re$erentially refer to him as 7the ne$er to be forotten Hutcheson7 ! atitle that mith in all his correspondence used to describe only t'o people, his ood friend ?a$idHume and influential mentor Francis Hutcheson)*2=+

Teaching career *edit+

mith bean deli$erin public lectures in 168 in dinburh, sponsored by the "hilosophicalociety of dinburh under the patronae of ord Oames)*21+ His lecture topicsincluded rhetoric and (ellesClettres,*22+ and later the subCect of 7the proress of opulence7) 4n this

latter topic he first e3pounded his economic philosophy of 7the ob$ious and simple systemof natural liberty7) While mith 'as not adept at public speakin, his lectures met 'ith success)*20+

?a$id Hume 'as a friend and contemporary of mith)

In 16%=, he met the philosopher ?a$id Hume, 'ho 'as his senior by more than a decade) Intheir 'ritins co$erin history, politics, philosophy, economics, and reliion, mith and Humeshared closer intellectual and personal bonds than 'ith other important fiures of the cottishnlihtenment) *2+

In 16%1, mith earned a professorship at 5laso' Dni$ersity teachin loic courses, and in 16%2he 'as elected a member of the "hilosophical ociety of dinburh, ha$in been introduced tothe society by ord Oames) When the head of /oral "hilosophy died the ne3t year, mith took

o$er the position)*20+

 He 'orked as an academic for the ne3t thirteen years, 'hich he

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characterised as 7by far the most useful and therefore by far the happiest and most honorableperiod *of his life+7)*2%+

mith published "he "heory of Moral Sentiments in 16%9, embodyin some of his 5laso'lectures) -his 'ork 'as concerned 'ith ho' human morality depends on sympathy bet'eenaent and spectator, or the indi$idual and other members of society) mith defined 7mutual

sympathy7 as the basis of moral sentiments) He based his e3planation, not on a special 7moralsense7 as the -hird ord haftesbury and Hutcheson had done, nor on utility as Hume did, buton mutual sympathy, a term best captured in modern parlance by the t'entieth;century conceptof empathy, the capacity to reconise feelins that are bein e3perienced by another bein)

Follo'in the publication of "he "heory of Moral Sentiments, mith became so popular thatmany 'ealthy students left their schools in other countries to enroll at 5laso' to learn undermith)*2<+ After the publication of "he "heory of Moral Sentiments, mith bean to i$e moreattention to Curisprudence and economics in his lectures and less to his theories of morals) *26+ Fore3ample, mith lectured that the cause of increase in national 'ealth is labour, rather than thenationBs Euantity of old or sil$er, 'hich is the basis for  mercantilism, the economic theory thatdominated Western uropean economic policies at the time) *2<+

Fran]ois uesnay, one of the leaders of the"hysiocratic school of thouht

In 16<2, the Dni$ersity of 5laso' conferred on mith the title of ?octor of a's ()?)&) At theend of 16<0, he obtained an offer from >harles -o'nshend ! 'ho had been introduced to mithby ?a$id Hume ! to tutor his stepson, Henry cott, the youn ?uke of .uccleuch) mith thenresined from his professorship to take the tutorin position) He subseEuently attempted to returnthe fees he had collected from his students because he resined in the middle of the term, buthis students refused)*28+

Tutoring and traels*edit+

mithBs tutorin Cob entailed tourin urope 'ith cott, durin 'hich time he educated cott on a$ariety of subCects ! such as proper "olish) *28+ He 'as paid ^0== per year (plus e3penses& alon'ith a ^0== per year pension rouhly t'ice his former income as a teacher )*28+ mith firsttra$elled as a tutor to -oulouse, France, 'here he stayed for one and a half years) *28+ Accordin tohis o'n account, he found -oulouse to be some'hat borin, ha$in 'ritten to Hume that he 7hadbeun to 'rite a book to pass a'ay the time7) *28+ After tourin the south of France, the roupmo$ed to 5ene$a, 'here mith met 'ith the philosopher oltaire)*29+

From 5ene$a, the party mo$ed to "aris) Here mith came to kno' se$eral reat intellectualleaders of the time in$ariably ha$in an effect on his future 'orks) -his list includedG .enCaminFranklin,*0=+ -urot, Jean ?BAlembert,  Andr: /orellet, Hel$:tius, and, notably, Fran]ois uesnay,the head of the "hysiocratic school)*01+ o impressed 'ith his ideas*02+ mith considereddedicatin "he ealth of /ations to him ! had uesnay not died beforehand) *00+ "hysiocrats 'ereopposed to mercantilism, the dominatin economic theory of the time) Illustrated in their

motto aisse@ faire et laisse@ passer, le monde $a de lui m_me`  (et do and let pass, the 'orldoes on by itself`&) -hey 'ere also kno'n to ha$e declared that only aricultural acti$ityproduced real 'ealth merchants and industrialists (manufacturers& did not) *0=+ -his ho'e$er, did

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not represent their true school of thouht, but 'as a mere 7smoke screen7 manufactured to hidetheir actual criticisms of the nobility and church aruin that they made up the only real clients of merchants)*0+

-he 'ealth of France 'as $irtually destroyed by ouis XI and ouis X in ruinous 'ars,*0%+ byaidin the American insurents aainst the .ritish, and perhaps most destructi$e (in terms of

public perceptions& 'as 'hat 'as seen as the e3cessi$e consumption of oods and ser$icesdeemed to ha$e no economic contribution ! unproducti$e labour) Assumin that nobility andchurch are essentially detractors from economic ro'th, the feudal system of ariculture inFrance 'as the only sector important to maintain the 'ealth of the nation) 5i$en that the nlisheconomy of the day yielded an income distribution that stood in contrast to that 'hich e3isted inFrance, mith concluded that the teachins and beliefs of "hysiocrats 'ere, 7'ith all *their+imperfections *perhaps+, the nearest appro3imation to the truth that has yet been published uponthe subCect of political economy7)*0<+ -he distinction bet'een producti$e $ersus unproducti$elabour ! the physiocratic classe steril  ! 'as a predominant issue in the de$elopment andunderstandin of 'hat 'ould become classical economic theory)

(ater years*edit+

In 16<<, Henry cottBs youner brother died in "aris, and mithBs tour as a tutor ended shortlythereafter )*0=+ mith returned home that year to Oirkcaldy, and he de$oted much of the ne3t tenyears to his manum opus)*06+ -here he befriended Henry /oyes, a youn blind man 'ho sho'edprecocious aptitude) As 'ell as teachin /oyes, mith secured the patronae of ?a$id Humeand -homas eid in the youn manBs education)*08+ In /ay 1660, mith 'as elected fello' ofthe oyal ociety of ondon,*09+ and 'as elected a member of the iterary >lub in 166%)*=+ "heealth of /ations 'as published in 166< and 'as an instant success, sellin out its first editionin only si3 months)*1+

In 1668, mith 'as appointed to a post as commissioner of customs in cotland and 'ent to li$e'ith his mother in "anmure House in dinburhBs>anonate)*2+ Fi$e years later, as a member ofthe "hilosophical ociety of dinburh 'hen it recei$ed its royal charter, he automaticallybecame one of the foundin members of the oyal ociety of dinburh,*0+ and from 1686 to

1689 he occupied the honorary position of ord ector of the Dni$ersity of 5laso')*+

 He died inthe northern 'in of "anmure House in dinburh on 16 July 169= after a painful illness and'as buried in the >anonate Oirkyard)*%+4n his death bed, mith e3pressed disappointment thathe had not achie$ed more)*<+

mithBs literary e3ecutors 'ere t'o friends from the cottish academic 'orldG the physicist andchemist Joseph .lack, and the pioneerin eoloist James Hutton)*6+ mith left behind manynotes and some unpublished material, but a$e instructions to destroy anythin that 'as not fitfor publication)*8+ He mentioned an early unpublished istory of #stronomy  as probably suitable,and it duly appeared in 169%, alon 'ith other material such as =ssays on PhilosophicalSu(ects)*6+

mithBs library 'ent by his 'ill to ?a$id ?oulas, ord eston (son of his cousin >olonel obert?oulas of trathendry, Fife&, 'ho li$ed 'ith mith) It 'as e$entually di$ided bet'een his t'osur$i$in children, >ecilia /araret (/rs) >unninham& and ?a$id Anne (/rs) .annerman&) 4nthe death of her husband, the e$) W) .) >unninham of "restonpans in 1868, /rs) >unninhamsold some of the books) -he remainder passed to her son, "rofessor obert 4li$er>unninham of ueenBs >ollee, .elfast, 'ho presented a part to the library of ueenBs >ollee) After his death the remainin books 'ere sold) 4n the death of /rs) .annerman in 1869 herportion of the library 'ent intact to the #e' >ollee (of the Free >hurch&, dinburh)

Personality and beliefs*edit+

Character *edit+

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James -assieBs enamel paste medallion of mith pro$ided the model for many enra$ins and portraits that

remain today)*9+

#ot much is kno'n about mithBs personal $ie's beyond 'hat can be deduced from hispublished articles) His personal papers 'ere destroyed after his death at his reEuest) *8+ He ne$ermarried,*%=+ and seems to ha$e maintained a close relationship 'ith his mother, 'ith 'hom heli$ed after his return from France and 'ho died si3 years before his o'n death) *%1+

mith 'as described by se$eral of his contemporaries and bioraphers as comically absent;minded, 'ith peculiar habits of speech and ait, and a smile of 7ine3pressible beninity7) *%2+ He'as kno'n to talk to himself,*<+ a habit that bean durin his childhood 'hen he 'ould smile inrapt con$ersation 'ith in$isible companions)*%0+ He also had occasional spells of imainary illness,*<+ and he is reported to ha$e had books and papers placed in tall stacks in his study )*%0+ Accordinto one story, mith took >harles -o'nshend on a tour of a tannin factory, and 'hilediscussin free trade, mith 'alked into a hue tannin pitfrom 'hich he needed help to escape)*%+ He is also said to ha$e put bread and butter into a teapot, drunk the concoction, and declaredit to be the 'orst cup of tea he e$er had) Accordin to another account, mith distractedly 'ent

out 'alkin in his nihto'n and ended up 1% miles (2 km& outside of to'n, before nearbychurch bells brouht him back to reality)*%0+*%+

James .os'ell 'ho 'as a student of mithBs at 5laso' Dni$ersity, and later kne' him atthe iterary >lub, says that mith thouht that speakin about his ideas in con$ersation mihtreduce the sale of his books, and so his con$ersation 'as unimpressi$e) Accordin to .os'ell,he once told ir Joshua eynolds that Bhe made it a rule 'hen in company ne$er to talk of 'hathe understoodB)*%%+

"ortrait of mith by John Oay, 169=

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mith, 'ho is reported to ha$e been an odd;lookin fello', has been described as someone 'ho7had a lare nose, bulin eyes, a protrudin lo'er lip, a ner$ous t'itch, and a speechimpediment7) *1+ mith is said to ha$e ackno'leded his looks at one point, sayin, 7I am a beauin nothin but my books)7*1+ mith rarely sat for portraits,*%<+ so almost all depictions of him createddurin his lifetime 'ere dra'n from memory) -he best;kno'n portraits of mith are the profileby James -assie and t'oetchins by John Oay)*%6+ -he line enra$ins produced for the co$ers of

19th century reprints of "he ealth of /ations 'ere based larely on -assieBs medallion) *%8+

Religious iews*edit+

-here has been considerable scholarly debate about the nature of mithBs reliious $ie's)mithBs father had sho'n a stron interest in >hristianity and beloned to the moderate 'in ofthe >hurch of cotland)*%9+ -he fact that Adam mith recei$ed the nell 3hibition suests thathe may ha$e one to 43ford 'ith the intention of pursuin a career in the >hurch of nland)*<=+

 Anlo;American economist onald >oase has challened the $ie' that mith 'as a deist, basedon the fact that mithBs 'ritins ne$er e3plicitly in$oke 5od as an e3planation of the harmonies of the natural or the human 'orlds)*<1+ Accordin to >oase, thouh mith does sometimes refer tothe 75reat Architect of the Dni$erse7, later scholars such as Jacob iner  ha$e 7$ery much

e3aerated the e3tent to 'hich Adam mith 'as committed to a belief in a personal 5od7,*<2+

 abelief for 'hich >oase finds little e$idence in passaes such as the one in the ealth of/ations in 'hich mith 'rites that the curiosity of mankind about the 7reat phenomena ofnature7, such as 7the eneration, the life, ro'th and dissolution of plants and animals7, has ledmen to 7enEuire into their causes7, and that 7superstition first attempted to satisfy this curiosity,by referrin all those 'onderful appearances to the immediate aency of the ods) "hilosophyafter'ards endea$oured to account for them, from more familiar causes, or from such asmankind 'ere better acEuainted 'ith than the aency of the ods7) *<2+

ome other authors arue that mithBs social and economic philosophy is inherently theoloicaland that his entire model of social order is loically dependent on the notion of 5odBs action innature)*<0+

mith 'as also a close friend and later the e3ecutor of ?a$id Hume, 'ho 'as commonlycharacterised in his o'n time as an atheist)*<+ -he publication in 1666 of mithBs letter to Williamtrahan, in 'hich he described HumeBs courae in the face of death in spite his irreliiosity,attracted considerable contro$ersy)*<%+

Published works*edit+

The Theory of oral Sentiments*edit+Main article "he "heory of Moral Sentiments

In 16%9, mith published his first 'ork, "he "heory of Moral Sentiments) He continued makine3tensi$e re$isions to the book, up until his death) *# 2+ Althouh"he ealth of /ations is 'idelyrearded as mithBs most influential 'ork, it is belie$ed that mith himself considered "he

"heory of Moral Sentiments to be a superior 'ork)*<6+

In the 'ork, mith critically e3amines the moral thinkin of his time, and suests thatconscience arises from social relationships)*<8+ His oal in 'ritin the 'ork 'as to e3plain thesource of mankindBs ability to form moral Cudements, in spite of manBs natural inclinationsto'ards self;interest) mith proposes a theory of sympathy, in 'hich the act of obser$in othersmakes people a'are of themsel$es and the morality of their o'n beha$iour) *<9+

cholars ha$e traditionally percei$ed a conflict bet'een "he "heory of MoralSentiments and "he ealth of /ations the former emphasises sympathy for others, 'hile thelatter focuses on the role of self;interest)*6=+ In recent years, ho'e$er, some scholars*61+*62+*60+ ofmithBs 'ork ha$e arued that no contradiction e3ists)*6+ -hey claim that in "he "heory of MoralSentiments, mith de$elops a theory of psycholoy in 'hich indi$iduals seek the appro$al of the7impartial spectator7 as a result of a natural desire to ha$e outside obser$ers sympathise 'iththem) ather than $ie'in "he "heory of Moral Sentiments and"he ealth of /ations aspresentin incompatible $ie's of human nature, some mith scholars reard the 'orks as

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emphasisin different aspects of human nature that $ary dependin on thesituation) kelund and Hebert offer a differin $ie', obser$in that self;interest is present in both'orks and that 7in the former, sympathy is the moral faculty that holds self;interest in check,'hereas in the latter, competition is the economic faculty that restrains self;interest)7*6%+

The !ealth of "ations*edit+

Main article "he ealth of /ations

ater buildin on the site 'here mith 'rote "he ealth of /ations

-here is a fundamental disareement bet'een classical and neoclassical economists about thecentral messae of mithBs most influential 'orkG #n In2uiry into the /ature and $auses of theealth of /ations) #eoclassical economists emphasise mithBs in$isible hand,*6<+ a conceptmentioned in the middle of his 'ork ! .ook I, >hapter II ! and classical economists belie$e thatmith stated his proramme for promotin the 7'ealth of nations7 in the first sentences)

mith used the term 7the in$isible hand7 in 7History of Astronomy7 *66+ referrin to 7the in$isiblehand of Jupiter7 and t'ice ! each time 'ith a different meanin ! the term 7 an in$isible hand7Gin "he "heory of Moral Sentiments*68+ (16%9& and in"he ealth of /ations*69+ (166<&) -his laststatement about 7an in$isible hand7 has been interpreted as 7the in$isible hand7 in numerous'ays)

 As e$ery indi$idual, therefore, endea$ours as much as he can both to employ his capital in thesupport of domestic industry, and so to direct that industry that its produce may be of the reatest$alue e$ery indi$idual necessarily labours to render the annual re$enue of the society as reatas he can) He enerally, indeed, neither intends to promote the public interest, nor kno's ho'much he is promotin it) .y preferrin the support of domestic to that of forein industry, heintends only his o'n security and by directin that industry in such a manner as its produce maybe of the reatest $alue, he intends only his o'n ain, and he is in this, as in many other cases,led by an in$isible hand to promote an end 'hich 'as no part of his intention) #or is it al'ays the'orse for the society that it 'as no part of it) .y pursuin his o'n interest he freEuently promotesthat of the society more effectually than 'hen he really intends to promote it) I ha$e ne$er kno'nmuch ood done by those 'ho affected to trade for the public ood) It is an affectation, indeed,not $ery common amon merchants, and $ery fe' 'ords need be employed in dissuadin them

from it)-hose 'ho reard that statement as mithBs central messae also Euote freEuently mithBsdictumG*8=+

It is not from the bene$olence of the butcher, the bre'er, or the baker, that 'e e3pect our dinner,but from their reard to their o'n interest) We address oursel$es, not to their humanity but totheir self;lo$e, and ne$er talk to them of our o'n necessities but of their ad$antaes)

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-he first pae of "he ealth of /ations, 166< ondon edition

mithBs statement about the benefits of 7an in$isible hand7 is certainly meant to ans'er *citation

needed + /ande$illeBs contention that 7"ri$ate ices ))) may be turned into "ublic .enefits7) *81+ It sho'smithBs belief that 'hen an indi$idual pursues his self;interest, he indirectly promotes the ood of 

society) elf;interested competition in the free market, he arued, 'ould tend to benefit societyas a 'hole by keepin prices lo', 'hile still buildin in an incenti$e for a 'ide $ariety of oodsand ser$ices) #e$ertheless, he 'as 'ary of businessmen and 'arned of their 7conspiracyaainst the public or in some other contri$ance to raise prices7)*82+  Aain and aain, mith 'arnedof the collusi$e nature of business interests, 'hich may form cabals or monopolies, fi3in thehihest price 7'hich can be sEuee@ed out of the buyers7) *80+ mith also 'arned that a business;dominated political system 'ould allo' a conspiracy of businesses and industry aainstconsumers, 'ith the former schemin to influence politics and leislation) mith states that theinterest of manufacturers and merchants 7)))in any particular branch of trade or manufactures, isal'ays in some respects different from, and e$en opposite to, that of the public)))-he proposal ofany ne' la' or reulation of commerce 'hich comes from this order, ouht al'ays to be listenedto 'ith reat precaution, and ouht ne$er be adopted till after ha$in been lon and carefullye3amined, not only 'ith the most scrupulous, but 'ith the most suspicious attention)7*8+

-he neoclassical interest in mithBs statement about 7an in$isible hand7 oriinates in thepossibility to see it as a precursor of neoclassical economics and its 5eneralEuilibrium concept) amuelsonBs 7conomics7 refers < times to mithBs 7in$isible hand7) -oemphasise this relation, amuelson*8%+ Euotes mithBs 7in$isible hand7 statement puttin 7eneralinterest7 'here mith 'rote 7public interest7) amuelson*8<+ concludedG 7mith 'as unable topro$e the essence of his in$isible;hand doctrine) Indeed, until the 19=s no one kne' ho' topro$e, e$en to state properly, the kernel of truth in this proposition about perfectly competiti$emarket)7

ery differently, classical economists see in mithBs first sentences his proramme to promote7-he Wealth of #ations7) -akin up the physiocratical concept of the economy as a circularprocess means that to ha$e ro'th the inputs of period2 must e3cel the inputs of period1)

-herefore, the outputs of period1 not used or usable as input of period2 are rearded asunproducti$e labour as they do not contribute to ro'th) -his is 'hat mith had learned inFrance 'ith uesnay) -o this French insiht that unproducti$e labour should be pushed back touse more labour producti$ely, mith added his o'n proposal, that producti$e labour should bemade e$en more producti$e by deepenin the di$ision of labour ) ?eepenin the di$ision oflabour means under competition lo'er prices and thereby e3tended markets) 3tended marketsand increased production lead to a ne' step of reoranisin production and in$entin ne' 'aysof producin 'hich aain lo'er prices, etc), etc)) mithBs central messae is therefore that underdynamic competition a ro'th machine secures 7-he Wealth of #ations7) It predicted nlandBse$olution as the 'orkshop of the World, undersellin all its competitors) -he openin sentencesof the 7Wealth of #ations7 summarise this policyG

-he annual labour of e$ery nation is the fund 'hich oriinally supplies it 'ith all the necessaries

and con$eniences of life 'hich it annually consumes ))) ) *-+his produce ))) bears a reater or

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smaller proportion to the number of those 'ho are to consume it ))) )*.+ut this proportion must ine$ery nation be reulated by t'o different circumstances

• first, by the skill, de3terity, and Cudment 'ith 'hich its labour is enerally applied and,

•

secondly, by the proportion bet'een the number of those 'ho are employed in usefullabour, and that of those 'ho are not so employed *emphasis added+) *86+

Criticism and dissent*edit+

 Alfred /arshall criticised mithBs definition of economy on se$eral points) He arued that manshould be eEually important as money, ser$ices are as important as oods, and that there mustbe an emphasis on human 'elfare, instead of Cust 'ealth) -he 7in$isible hand7 only 'orks 'ell'hen both production and consumption operates in free markets, 'ith small (7atomistic7&producers and consumers allo'in supply and demand to fluctuate and eEuilibrate) In conditionsof monopoly and oliopoly, the 7in$isible hand7 fails) #obel "ri@e;'innin economist Joseph )tilit@ says, on the topic of one of mithBs better kno'n ideasG 7the reason that the in$isiblehand often seems in$isible is that it is often not there)7*88+

&ther works*edit+

mithBs burial place in>anonate Oirkyard

hortly before his death, mith had nearly all his manuscripts destroyed) In his last years, heseemed to ha$e been plannin t'o maCor treatises, one on the theory and history of la' and oneon the sciences and arts) -he posthumously published=ssays on Philosophical Su(ects, ahistory of  astronomy do'n to mithBs o'n era, plus some thouhts on ancientphysics andmetaphysics, probably contain parts of 'hat 'ould ha$e been the lattertreatise) Lectures on 4urisprudence 'ere notes taken from mithBs early lectures, plus an earlydraft of "he ealth of /ations, published as part of the 196< 5laso' dition of the 'orks and

correspondence of mith) 4ther 'orks, includin some published posthumously,include Lectures on 4ustice, Police, -eenue, and #rms (16<0& (first published in 189<&and =ssays on Philosophical Su(ects (169%&)*89+

Legacy *edit+

4n economics and moral philosophy*edit+

"he ealth of /ations 'as a precursor to the modern academic discipline of economics) In thisand other 'orks, mith e3pounded ho' rational self;interest and competition can lead toeconomic prosperity) mith 'as contro$ersial in his o'n day and his eneral approach and'ritin style 'ere often satirised by -ory 'riters in the moralisin tradition of Hoarth and 'ift,as a discussion at the Dni$ersity of Winchester suests)*9=+ In 2==%, "he ealth of /ations 'asnamed amon the 1== .est cottish .ooks of all time) *+Former DO "rime /inister /araret-hatcher , it is said, used to carry a copy of the book in her handba) *91+

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In liht of the aruments put for'ard by mith and other economic theorists in .ritain, academicbelief in mercantalism bean to decline in nland in the late 18th century) ?urin the Industriale$olution, .ritain embraced free trade and mithBs laisse@;faire economics, and $ia the .ritishmpire, used its po'er to spread a broadly liberal economic model around the 'orld,characterised by open markets, and relati$ely barrier free domestic and international trade) *92+

5eore tiler  attributes to mith 7the most important substanti$e proposition in all ofeconomics7) It is that, under competition, o'ners of resources (for e3ample labour, land, andcapital& 'ill use them most profitably, resultin in an eEual rate of return in eEuilibrium for alluses, adCusted for apparent differences arisin from such factors as trainin, trust, hardship, andunemployment) *90+

"aul amuelson finds in mithBs pluralist use of supply and demand as applied to 'aes, rents,profit a $alid and $aluable anticipation of the eneral eEuilibriummodellin of  Walras a centurylater) mithBs allo'ance for 'ae increases in the short and intermediate term from capitalaccumulation and in$ention contrasted 'ith /althus, icardo, and Oarl /ar3 in their propoundina riid subsistence!'ae theory of labour supply)*9+

4n the other hand, Joseph chumpeter  dismissed mithBs contributions as unoriinal, sayin7His $ery limitation made for success) Had he been more brilliant, he 'ould not ha$e been takenso seriously) Had he du more deeply, had he unearthed more recondite truth, had he used moredifficult and inenious methods, he 'ould not ha$e been understood) .ut he had no suchambitions in fact he disliked 'hate$er 'ent beyond plain common sense) He ne$er mo$edabo$e the heads of e$en the dullest readers) He led them on ently, encourain them bytri$ialities and homely obser$ations, makin them feel comfortable all alon)7*9%+

>lassical economists presented competin theories of those of mith, termed the 7labour theoryof $alue7) ater /ar3ian economics descendin from classical economics also use mithBs labour theories, in part) -he first $olume of  Oarl /ar3Bs maCor 'ork, $apital , 'as published in 5erman in18<6) In it, /ar3 focused on the labour theory of $alue and 'hat he considered to be thee3ploitation of labour by capital) *9<+*96+ -he labour theory of $alue held that the $alue of a thin 'asdetermined by the labour that 'ent into its production) -his contrasts 'ith the modern contention

of neoclassical economics, that the $alue of a thin is determined by 'hat one is 'illin to i$eup to obtain the thin)

-he Adam mith -heatre inOirkcaldy

-he body of theory later termed 7neoclassical economics7 or 7marinalism7 formed from about186= to 191=) -he term 7economics7 'as popularised by such neoclassical economists as   Alfred/arshall as a concise synonym for 7economic science7 and a substitute for the earlier, broaderterm 7political economy7 used by mith)*98+*99+ -his corresponded to the influence on the subCect ofmathematical methods used in the natural sciences)*1==+ #eoclassical economicssystematised supply and demand as Coint determinants of price and Euantity in marketeEuilibrium, affectin both the allocation of output and the distribution of income) It dispensed'ith the labour theory of $alue of 'hich mith 'as most famously identified 'ith in classicaleconomics, in fa$our of a marinal utility theory of $alue on the demand side and a more eneraltheory of costs on the supply side)*1=1+

-he bicentennial anni$ersary of the publication of "he ealth of /ations 'as celebrated in 196<,resultin in increased interest for "he "heory of Moral Sentiments and his other 'orks

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throuhout academia) After 196<, mith 'as more likely to be represented as the author ofboth "he ealth of /ations and "he "heory of Moral Sentiments, and thereby as the founder ofa moral philosophy and the science of economics) His homo economicus or 7economic man7 'asalso more often represented as a moral person) Additionally, economists ?a$id e$y and andra"eart in 7-he ecret History of the ?ismal cience7 point to his opposition to hierarchy andbeliefs in ineEuality, includin racial ineEuality, and pro$ide additional support for those 'ho point

to mithBs opposition to sla$ery, colonialism, and empire)*1=2+ -hey sho' the caricatures of mithdra'n by the opponents of $ie's on hierarchy and ineEuality in this online article) mphasi@edalso are mithBs statements of the need for hih 'aes for the poor, and the efforts to keep'aes lo') In -he 7anity of the "hilosopher7G From Euality to Hierarchy in "ostclassicalconomics "eart and e$y also cite mithBs $ie' that a common street porter 'as notintellectually inferior to a philosopher,*1=0+ and point to the need for reater appreciation of thepublic $ie's in discussions of science and other subCects no' considered to be technical) -heyalso cite mithBs opposition to the often e3pressed $ie' that science is superior to commonsense)*1=+

mith also e3plained the relationship bet'een ro'th of pri$ate property and ci$il o$ernmentG

7/en may li$e toether in society 'ith some tolerable deree of security, thouh there is no ci$il

maistrate to protect them from the inCustice of those passions) .ut a$arice and ambition in therich, in the poor the hatred of labour and the lo$e of present ease and enCoyment, are thepassions 'hich prompt to in$ade property, passions much more steady in their operation, andmuch more uni$ersal in their influence) Where$er there is reat property there is reat ineEuality)For one $ery rich man there must be at least fi$e hundred poor, and the affluence of the fe'supposes the indience of the many) -he affluence of the rich e3cites the indination of the poor,'ho are often both dri$en by 'ant, and prompted by en$y, to in$ade his possessions) It is onlyunder the shelter of the ci$il maistrate that the o'ner of that $aluable property, 'hich is acEuiredby the labour of many years, or perhaps of many successi$e enerations, can sleep a sinleniht in security) He is at all times surrounded by unkno'n enemies, 'hom, thouh he ne$erpro$oked, he can ne$er appease, and from 'hose inCustice he can be protected only by thepo'erful arm of the ci$il maistrate continually held up to chastise it) -he acEuisition of $aluable

and e3tensi$e property, therefore, necessarily reEuires the establishment of ci$il o$ernment)Where there is no property, or at least none that e3ceeds the $alue of t'o or three daysB labour,ci$il o$ernment is not so necessary) >i$il o$ernment supposes a certain subordination) .ut asthe necessity of ci$il o$ernment radually ro's up 'ith the acEuisition of $aluable property, sothe principal causes 'hich naturally introduce subordination radually ro' up 'ith the ro'th ofthat $aluable property) ()))& /en of inferior 'ealth combine to defend those of superior 'ealth inthe possession of their property, in order that men of superior 'ealth may combine to defendthem in the possession of theirs) All the inferior shepherds and herdsmen feel that the security oftheir o'n herds and flocks depends upon the security of those of the reat shepherd orherdsman that the maintenance of their lesser authority depends upon that of his reaterauthority, and that upon their subordination to him depends his po'er of keepin their inferiors insubordination to them) -hey constitute a sort of little nobility, 'ho feel themsel$es interested todefend the property and to support the authority of their o'n little so$erein in order that he maybe able to defend their property and to support their authority) >i$il o$ernment, so far as it isinstituted for the security of property, is in reality instituted for the defence of the rich aainst thepoor, or of those 'ho ha$e some property aainst those 'ho ha$e none at all)7 (ourceG -heWealth of #ations, .ook %, >hapter 1, "art 2&

4n !ritish 4mperial de0ates*edit+

mithBs chapter on colonies in turn 'ould help shape .ritish imperial debates from the mid;nineteenth century on'ard) "he ealth of /ations 'ould become an ambiuous te3t reardinthe imperial Euestion) In his chapter on colonies, mith pondered ho' to sol$e the crisisde$elopin across the Atlantic amon the empireBs thirteen American colonies) He offered t'odifferent proposals for easin tensions) -he first proposal called for i$in the colonies theirindependence and, by thus partin on a friendly basis, .ritain 'ould be able to de$elop andmaintain a free;trade relationship 'ith them, and possibly e$en an informal military alliance)mithBs second proposal called for a theoretical imperial federation that 'ould brin the colonies

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and the metropole closer toether throuh an imperial parliamentary system and imperial freetrade)*1=%+

mithBs most prominent disciple in nineteenth;century nland, peace ad$ocate ichard>obden, preferred the first proposal) >obden 'ould lead the Anti;>orn a' eaue ino$erturnin the >orn a's in 18<, shiftin nland to a policy of free trade and empire 7on the

cheap7 for decades to come) -his hands;off approach to'ard the .ritish mpire 'ould becomekno'n as >obdenism or the /anchester chool)*1=<+ .y the turn of the century, ho'e$er,ad$ocates of mithBs second proposal such as Joseph hield #icholson 'ould become e$ermore $ocal in opposin >obdenism, callin instead for imperial federation) *1=6+ As /arc;William"alen notesG 74n the one hand, Adam miths late nineteenth and early t'entieth;century>obdenite adherents used his theories to arue for radual imperial de$olution and empire Yonthe cheap) 4n the other, $arious proponents of imperial federation throuhout the .ritish Worldsouht to use miths theories to o$erturn the predominant >obdenite hands;off imperialapproach and instead, 'ith a firm rip, brin the empire closer than e$er before)7 *1=8+mithBs ideasthus played an important part in subseEuent debates o$er the .ritish mpire)

Portraits5 monuments5 and 0anknotes*edit+

 A statue of mith indinburhBs Hih treet, erected throuh pri$ate donations oranised by the Adam

mith Institute)

mith has been commemorated in the DO on banknotes printed by t'o different banks hisportrait has appeared since 1981 on the ^%= notes issued by the >lydesdale .ank in cotland,*1=9+

*11=+ and in /arch 2==6 mithBs imae also appeared on the ne' series of ^2= notes issued by

the .ank of nland, makin him the first cotsman to feature on annlish banknote)*111+

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tatue of mith built in 18<6!186= at the old headEuarters of the Dni$ersity of ondon, < .urlinton

5ardens)

 A lare;scale memorial of mith by Ale3ander toddart 'as un$eiled on July 2==8 indinburh) It is a 1= feet (0)= m&;tall bron@e sculpture and it stands abo$e the oyal/ileoutside t 5ilesB >athedral in "arliament Euare, near the /ercat cross)*112+ 2=th;centurysculptor Jim anborn (best kno'n for the Hryptos sculpture at the Dnited tates >entralIntellience Aency& has created multiple pieces 'hich feature mithBs 'ork) At >entral>onnecticut tate Dni$ersity is $irculating $apital , a tall cylinder 'hich features an e3tractfrom "he ealth of /ations on the lo'er half, and on the upper half, some of the same te3t butrepresented in binary code)*110+ At the Dni$ersity of #orth >arolina at >harlotte, outside the .elk>ollee of .usiness Administration, is #dam Smith's Spinning "op)*11+*11%+  Another mith sculpture

is at >le$eland tate Dni$ersity)*11<+ He also appears as the narrator in the 2=10 play "he Lo+-oad , centred on a proponent on laisse@;faire economics in the late eihteenth century butdealin obliEuely 'ith thefinancial crisis of 2==6!2==8 and the recession 'hich follo'ed ! in thepremiere production, he 'as portrayed by .ill "aterson)

Residence*edit+

 Adam mith resided at "anmure house from 1668!9=) -his residence has no' been purchasedby the dinburh .usiness chool at Heriot Watt Dni$ersity and fundraisin has beun to restoreit)*116+*118+ "art of the #orthern end of the oriinal buildin appears to ha$e been demolished in the19th century to make 'ay for an iron foundry)

"s a sym0ol of free market economics*edit+

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 #dam Smith's Spinning "op, sculpture by Jim anborn at >le$eland tate Dni$ersity

mith has been celebrated by ad$ocates of free market policies as the founder of free marketeconomics, a $ie' reflected in the namin of bodies such as the Adam mith Institute in ondon,the Adam mith ociety*119+ and the Australian Adam mith >lub, *12=+ and in terms such as the Adam mith necktie)*121+

 Alan 5reenspan arues that, 'hile mith did not coin the term laisseDCfaire, 7it 'as left to Adammith to identify the more;eneral set of principles that brouht conceptual clarity to the seeminchaos of market transactions7) 5reenspan continues that "he ealth of /ations 'as 7one of thereat achie$ements in human intellectual history7)*122+ ") J) 4Bourke describes mith as the7founder of free market economics7) *120+

Ho'e$er, other 'riters ha$e arued that mithBs support for laisseDCfaire ('hich in French meanslea$e alone& has been o$erstated) Herbert tein 'rote that the people 'ho 7'ear an Adam mithnecktie7 do it to 7make a statement of their de$otion to the idea of free markets and limited

o$ernment7, and that this misrepresents mithBs ideas) tein 'rites that mith 7'as not pure ordoctrinaire about this idea) He $ie'ed o$ernment inter$ention in the market 'ith reatskepticism)))yet he 'as prepared to accept or propose Eualifications to that policy in the specificcases 'here he Cuded that their net effect 'ould be beneficial and 'ould not undermine thebasically free character of the system) He did not 'ear the Adam mith necktie)7 In teinBsreadin, "he ealth of /ations could Custify the Food and ?ru Administration, the >onsumer"roduct afety >ommission, mandatory employer health benefits, en$ironmentalism, and7discriminatory ta3ation to deter improper  or lu3urious beha$ior 7)*12+

imilarly, i$ienne .ro'n stated in "he =conomic 4ournal  that in the 2=th century Dnitedtates, eaanomics supporters, the all Street 4ournal , and other similar sources ha$e spreadamon the eneral public a partial and misleadin $ision of mith, portrayin him as an 7e3tremedomatic defender of  laisseDCfaire capitalism and supply;side economics7)*12%+ In fact, "he ealth

of /ations includes the follo'in statement on the payment of ta3esG

7-he subCects of e$ery state ouht to contribute to'ards the support of the o$ernment, as nearlyas possible, in proportion to their respecti$e abilities that is, in proportion to the re$enue 'hichthey respecti$ely enCoy under the protection of the state)7 *12<+

ome commentators ha$e arued that mithBs 'orks sho' support for a proressi$e, not flat,income ta3 and that he specifically named ta3es that he thouht should be reEuired by the state,amon them lu3ury oods ta3es and ta3 on rent)*126+

 Additionally, mith outlined the proper e3penses of the o$ernment in "he ealth of /ations,Boo* , $h. I ) Included in his reEuirements of a o$ernment is to enforce contracts and pro$ide Custice system, rant patents and copy rihts, pro$ide public oods such as infrastructure,

pro$ide national defence and reulate bankin) It 'as the role of the o$ernment to pro$ideoods 7of such a nature that the profit could ne$er repay the e3pense to any indi$idual7 such asroads, brides, canals, and harbours) He also encouraed in$ention and ne' ideas throuh his

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patent enforcement and support of infant industry monopolies) He supported public educationand reliious institutions as pro$idin eneral benefit to the society) Finally he outlined ho' theo$ernment should support the dinity of the monarch or chief maistrate, such that they areeEual or abo$e the public in fashion) He e$en states that monarchs should be pro$ided for in areater fashion than maistrates of a republic because 7'e naturally e3pect more splendor in thecourt of a kin than in the mansion;house of a doe7)*128+ In addition, he 'as in fa$our of retaliatory

tariffs and belie$ed that they 'ould e$entually brin do'n the price of oods) He e$en stated inWealth of #ationsG

7-he reco$ery of a reat forein market 'ill enerally more than compensate the transitoryincon$enience of payin dearer durin a short time for some sorts of oods)7 *129+

conomic historians such as Jacob iner  reard mith as a stron ad$ocate of free markets andlimited o$ernment ('hat mith called 7natural liberty7& but not as a domatic supporterof laisseDCfaire)*10=+

conomist ?aniel Olein belie$es usin the term 7free market economics7 or 7free marketeconomist7 to identify the ideas of mith is too eneral and slihtly misleadin) Olein offers si3characteristics central to the identity of mithBs economic thouht and arues that a ne' name is

needed to i$e a more accurate depiction of the 7mithian7 identity)*101+*102+

 conomist ?a$idicardo set straiht some of the misunderstandins about mithBs thouhts on free market) /ostpeople still fall $ictim to the thinkin that mith 'as a free market economist 'ithout e3ception,thouh he 'as not) icardo pointed out that mith 'as in support of helpin infant industries)mith belie$ed that the o$ernment should subsidise ne'ly formed industry, but he did fear that'hen the infant industry re' into adulthood it 'ould be un'illin to surrender the o$ernmenthelp)*100+ mith also supported tariffs on imported oods to counteract an internal ta3 on the sameood) mith also fell to pressure in supportin some tariffs in support for national defence)*100+ ome ha$e also claimed, mma othschild amon them, that mith supported a minimum'ae)*10+

-houh, mith had 'ritten in his book "he ealth of /ationsG

7-he price of labour, it must be obser$ed, cannot be ascertained $ery accurately any'here,different prices bein often paid at the same place and for the same sort of labour, not onlyaccordin to the different abilities of the 'orkmen, but accordin to the easiness or hardness ofthe masters) Where 'aes are not reulated by la', all that 'e can pretend to determine is 'hatare the most usual and e3perience seems to sho' that la' can ne$er reulate them properly,thouh it has often pretended to do so)7 (ourceG -he Wealth of #ations, .ook 1, >hapter 8&

mith also noted the ineEuality of barainin po'er G*10%+

 A landlord, a farmer, a master manufacturer, a merchant, thouh they did not employ a sinle'orkman, could enerally li$e a year or t'o upon the stocks 'hich they ha$e already acEuired)/any 'orkmen could not subsist a 'eek, fe' could subsist a month, and scarce any a year'ithout employment) In the lon run the 'orkman may be as necessary to his master as hismaster is to him but the necessity is not so immediate)