The modern society is a byproduct of Western industrialization. As machine were being invented and built that enabled mass production, there was an increasing need for centralization of both capital (for the machines were very expensive) and a work force (to run the machines). Extended families from premodern communities were broken up as the younger members of the family were lured by the prospect of money and material possessions to the new urban centers of industry. Of even greater importance (especially in modern American life) was the creation of a new form of community—called the suburb. Often identified as “the sultans of sprawl,” William Levitt, James Rouse and Robert Moses led the way following World War II by creating the first large-scale housing developments (Levitttown, New York), commercial malls (Rouse) and expressways (Moses) to connect the suburbs to one another and the urban centers that employed the suburbanites.
The new industrial workers discovered a new commodity: money. They soon substituted wages for the production (or bartering) of their own food or commodities. With the shift to a money-based economy came the vast expansion of financial institutions. While banks exist in premodern societies (primarily to serve the upper class), they play a much larger role in modern societies, serving not only as a safe repository for saved money, but also as a source of unearned money. The modern worker soon discovered that banks would enable them to spend money that they had not yet earned and to take out long-term loans to make major purchases (especially homes). Modern societies inevitably become communities of debt and money becomes the most valued entity in these societies.
Industrial workers also substitute employment in modern organizations for their premodern reliance on the extended family. The organization becomes their new source of security and they look to their work site for friendship and a sense of purpose and community. Increasingly, the modern worker also began to look to the government for basic social services: education, health, retirement. Thus, we find in the modern society not only expansion in the size of private industrial organizations, but also in the size and scope of public institutions. Public education, social welfare and medical services for the elderly became the givens of modern societies. Citizens no longer looked primarily to their family or to their church or other philanthropic organizations for support. Rather, government became the new guarantor of health and happiness. Government soon also entered the much more controversial arenas of organizational operations (labor law and affirmative action), family life (protection of children against abuse) and private morality (the right for women to abort an unborn child).
With mass production came a shift in focus from quality to quantity. Industrialization (and an accompanying capacity for widespread distribution of products) shifted the focus of economics to productivity. Industries (and the workers in these industries) were considered successful if they were highly productive. High levels of productivity in turn led to the need for marketing and a new emphasis on sales. Profit could only be derived from large volume sales (to make up for the initial costs associated with purchase of the mass production equipment). Productivity without sales yielded nothing but a costly surplus of goods. The modern era (in conjunction with the move to suburbia) brought about the department store, the franchise fast food industry, and the abiding concern about crab grass and lawn fertilizers. Thus, the industrial revolution became a Commercial Revolution.
While the premodern craftsman typically only made a product when it was requested and tended to custom make each item, mass production processes called for uniformity of product and for interchangeable parts. The new emphasis on uniform production and marketing and sales set the stage for new organizational roles that were not directly connected to the production process. These non-production roles in marketing, sales and production control were soon complimented by another set of organizational roles—those associated with the overall coordination of organizational functions. These roles (called “management”) soon came to dominate the culture of the modern organization and provided much of the leadership for 20th Century organizations. Thus, the industrial and commercial revolutions produced yet another revolution: the Managerial Revolution.