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Archive for Organizational Sociology

C. Wright Mills, Labor and The Power Elite

December 14, 2012 by and tagged , , , , , , ,

It is with the third chapter of Stanley Aronowitz‘s Taking It Big – C. Wright Mills and The Making of Political Intellectuals, that things get more sociological and critical. This chapter is largely dedicated to Mills’s The New Men of Power – America’s Labor Leaders, published in 1948.

“The New Men of Power is not a book about the millions of industrial and service workers who swelled the ranks of organized labor during the turbulent 1930s. It does not purport to tell the story of the upsurge. Rather, it presupposes mass unionism and is concerned chiefly with the consequences of the integration of the labor movement into the political economy during the New Deal and the Truman administration. The New Men of Power resumes the tale at the moment when unions are in the process of institutionalization and when a more or less permanent labor bureaucracy is in formation, which, while still ultimately accountable to the membership, has given rise to a new type of elite. The labor elite tends to see the union as a military force in which the lower ranks, the rank and file, are subordinate to the union leaders and their staffs.

(…)

It is not a movement by, as well as for, its members and for working people as a whole. Most major unions, according to Mills, are run from the top by people who are part of a power elite. Thus, to grasp the present and future prospects of organized labor, the object of investigation is, necessarily, the labor leader, not the rank and file.” (104)

This emphasis on the consequences of institutionalization very much reflects Weber’s influence (combined with Marx) on Mills. Except that, for Mills, bureaucratization and institutionalization are not neutral processes of modernization or consequences of it. They are very much processes of power. And since Mills is very much a sociologist of the state, it is not surprising to see institutionalization as part of co-optation by the other branches of the power elite.

“Mills’s characterization of the labor leader as a member of the elite of power and far removed from the everyday lives of the workers he represents is a reflection not only of institutionalization but also of the labor leader’s penchant to hobnob with other members of the elites. The national labor leader tends to spend more time with members of Congress, officials in the executive branch of government, other top union leaders, and corporate counterparts than with the rank-and-file leaders of his own union.” (106)

This seems strikingly accurate still today, and, for Mills, this predicts the downfall of the labor movement (no longer a movement then, once institutionalized and bureaucratized).

“Mills concludes:

“If the CIO ideologists are not careful, the managers of corporate property will select only the reasonable concessions that are offered—that labor will not strike, that labor will help with the wars, that labor will be responsible, but they will reject labor’s pretensions to a voice in production, within the plants and in the planning of the U.S. political economy. (120–121)

The prescience of these remarks is all too apparent to students of current industrial relations: having cleared the “extremists and crackpots” from its ranks, labor rarely strikes, generally supports the wars, and has steadily lost power at the workplace. And demanding a voice in the larger political economy is as far from the minds of twenty-first-century American labor leaders as was the idea, in the immediate postwar period, that labor was a movement whose interests are diametrically opposed to those of capital. It took only a few more years after the publication of his study of labor leaders for Mills to consign organized labor to a “dependent variable” in the political economy”.

(…)

Mills’s main argument is that union power is doomed unless labor acquires an explicit ideology and has a series of ideas that are fully consistent with an assessment that, far from being benign, business and the political directorate are hostile, only occasionally tolerant of labor, and poised to wage full-scale class warfare on unions and their mass constituents.” (108 - 109)

“While large sections of the liberal center remained pro-union (at least in the general sense but often turning against union militants when they flexed their collective muscle by taking direct action), the tripartite alliance of labor leaders, capital, and the national political directorate forged elements of what the “mass public” perceived to be a new power elite. However, as Mills makes clear, labor leaders were junior partners, accumulating some concessions from the table of the main actors and playing an important part in stabilizing the political and economic systems, largely by controlling the wanton impulses of the rank and file—but never really sharing power.” (111)

Emphases mine.

Throughout the book, I have never being amazed at the prescience of Mills’s perspective on the labor movements, unions and their leadership in the context of late capitalism.

Labor leaders are prone to bemoan the apathy of the rank-and-file membership. Mills points out that their complaint carries little weight when they have committed the unions to supporting the two main political parties, which, in his estimation, offer little to the workers: “Such support only takes away their chance to organize politically and alert men to politics as live issues. The activities of these politics alienate people from politics in the deeper meanings and demoralizes those on the edge of political consciousness” (270). The alienation of many workers from politics and from their own union is not surprising; the picture Mills has painted is of a progressively tighter labor bureaucracy that privileges retention of power over a program of encouraging the rank and file to take over the union, let alone encroach on managerial prerogatives in the workplace.

(…)

Without the intellectuals and a new surge of rank-and-file involvement in the union, Mills foresees a grim future. As a slump deepens and mass unemployment eats into the moral fabric of society, large corporate capital and the state are likely to respond by inaugurating a major offensive against workers and their unions. Under present circumstances, workers and unions are poorly equipped to offer effective resistance and are likely to enter into a hopeless tailspin.” (115-117)

For Mills, there should have been a labor party in the US, one that would not depend on established political parties and that would have been truly (although non-communist, Mills had no time for them even though he was virulently anti-McCarthy, he did not disapprove of the purging of ranks of organized labor). To align itself with an established party has been a losing strategy and one can very clearly right now the efforts of the other political party to finish off the labor movements in the US, while the other party stands by and does close to nothing except come election time, expecting the union rank-and-file to fundraise and campaign based on nothing more  than “the other guys are worse.”

The state of organized labor today then, is the direct results, a few decades later, of the institutionalization of labor within the state and the structures of capitalism (a joint venture, despite illusions to the contrary). By joining the power elite, albeit in subordinate status, the leaders of the labor movement (the new men of power) basically signed the death warrant of a significant and radical component of the American society that had the potential to challenge the power elite.

Posted in Book Reviews, Corporatism, Labor, Organizational Sociology, Politics, Power, Social Institutions, Social Theory, Sociology | No Comments »

Book Review – Networked

August 8, 2012 by and tagged , , , , , , , , , , , , , , , , ,

With Networked: The New Social Operating SystemLee Rainie and Barry Wellman offer a very readable introduction to networks and their social consequences. This is a book that aims to reach a larger audience beyond academic walls. So, even though it extensively relies on research (quite a lot from Pew, unsurprisingly), it is not a tedious read at all as the data alternate with narratives and stories that facilitate comprehension. At the same time, the book is not full of jargon. It also seems that this book aims to convey the message that the sky is not falling because we are spending more time on Facebook and other social networking platforms. No, we have not stop interacting face-to-face with each other (or should I write f2f, as the cool kids do). No, we are not bowling alone. No, we are turning into sociopathic recluse.

What the book explores is all the different ways in which social networking (and related technologies) have woven their way into our lives and reorganized and re-shaped some aspect of them, but not in the socially-disintegrating ways that the usual prophets of doom have been warning us against. As a result, the book conveys a relatively optimistic perspective on networks without being totally on the cyber-utopian side. There is not much in the book about the “dark side” of networks. That is Evgeny Morozov‘s turf. I actually think both books should be read in parallel: where Rainie and Wellman are more micro and optimistic, Morozov is more macro and critical. In all, there is not much in the book that will surprise those of us who read regularly on networks (or are already familiar with Wellman’s work) but we are not really the target audience. This is a book that is perfectly readable for undergraduate students and the general public and I think it is a nice piece of public sociology that demonstrates what sociology can do and tell on current topics. At the same time, it is rigorously researched (tons of end notes and sources), which is important because one of the points that Rainie and Wellman make is that a great deal of the doomsday scenarios on social networking are based on not much in terms of data. Very often, it is just columnists fears.

As much as the book does not rely on academic and technical jargon, it does revolve around a few concepts: networked individualism, the triple revolution, the social operating system. So, the book is

“the story of the new social operating system we call “networked individualism” in contrast to the longstanding operating system formed around large hierarchical bureaucracies and small, densely knit groups such as households, communities, and workgroups. We call networked individualism an “operating system” because it describes the ways in which people connect, communicate, and exchange information. We also use the phrase because it underlines the fact that societies— like computer systems— have networked structures that provide opportunities and constraints, rules and procedures. The phrase echoes the reality of today’s technology: Most people play and work using computers and mobile devices that run on operating systems. Like most computer operating systems and all mobile systems, the social network operating system is personal— the individual is at the autonomous center just as she is reaching out from her computer; multiuser— people are interacting with numerous diverse others; multitasking— people are doing several things; and multithreaded— they are doing them more or less simultaneously.” (Loc 341)

[All emphases mine. I read this in kindle edition and all the endnotes were turned into notes at the end of each chapter, which messed up the page numbers and therefore, kindle only identifies locations.]

So, the general shift is this:

“In generations past, people usually had small, tight social networks— in rural areas or urban villages— where a few important family members, close friends, neighbors, leaders and community groups (churches and the like) constituted the safety net and support system for individuals.

This new world of networked individualism is oriented around looser, more fragmented networks that provide succor. Such networks had already formed before the coming of the internet. Still, the revolutionary social change from small groups to broader personal networks has been powerfully advanced by the widespread use of the internet and mobile phones.

(…)

Our research supports the notion that small, densely knit groups like families, villages, and small organizations have receded in recent generations. A different social order has emerged around social networks that are more diverse and less overlapping than those previous groups. The networked operating system gives people new ways to solve problems and meet social needs. It offers more freedom to individuals than people experienced in the past because now they have more room to maneuver and more capacity to act on their own.

At the same time, the networked individualism operating system requires that people develop new strategies and skills for handling problems.

(…)

A major difference between the past and now is that the social ties people enjoy today are more abundant and more easily nourished by contact through new technologies. We will show throughout this book how the internet and other forms of information and communication technologies— what scholars call “ICTs”— actually aid community.” (Loc 401)

But the central concept, the one concept to unite them all is that of the Triple Revolution (social networking, Internet, mobile technologies):

“First, the Social Network Revolution has provided the opportunities— and stresses— for people to reach beyond the world of tight groups. It has afforded more diversity in relationships and social worlds— as well as bridges to reach these worlds and maneuverability to move among them. At the same, it has introduced the stress of not having a single home base and of reconciling the conflicting demands of multiple social worlds.

Second, the Internet Revolution has given people communications power and information-gathering capacities that dwarf those of the past. It has also allowed people to become their own publishers and broadcasters and created new methods for social networking. This has changed the point of contact from the household (and work group) to the individual. Each person also creates her own internet experiences, tailored to her needs.

Third, the Mobile Revolution has allowed ICTs to become body appendages allowing people to access friends and information at will, wherever they go. In return, ICTs are always accessible. There is the possibility of a continuous presence and pervasive awareness of others in the network. People’s physical separation by time and space are less important.

Together, these three revolutions have made possible the new social operating system we call “networked individualism.” The hallmark of networked individualism is that people function more as connected individuals and less as embedded group members. For example, household members now act at times more like individuals in networks and less like members of a family. Their homes are no longer their castles but bases for networking with the outside world, with each family member keeping a separate personal computer, address book, calendar, and mobile phone.

Yet people are not rugged individualists— even when they think they are. Many meet their social, emotional, and economic needs by tapping into sparsely knit networks of diverse associates rather than relying on tight connections to a relatively small number of core associates. This means that networked individuals can have a variety of social ties to count on, but are less likely to have one sure-fire “home” community. Looser and more diverse social networks require more choreography and exertion to manage. Often, individuals rely on many specialized relationships to meet their needs.” (Loc. 460)

This is the central thesis of the book and all the subsequent chapters explore the consequences of the Triple Revolution in our social institutions, intimate lives, and interactions. In many ways, this is highly reminiscent of Bauman’s liquidity thesis. Individuals are less members of fixed and (more or less) rigid groups and more likely to belong to a variety of loosely connected networks that are always in flux. What social networking technologies have added to the mix is an incredibly greater capacity to actually network beyond borders and geographical distances which is why social networking does not generate isolation. The different nodes in these networks are both relationships and resources that can be activated for a variety of purposes. And as we already know, there is strength in weak ties. At the same time, networks do not kill strong ties. If anything, they may intensify them since we can be in contact more extensively and intensively.

We also know that social networks involve participation. To be on Facebook or Twitter involves some degree of putting “stuff” out there, be it pictures, videos, blog posts, or just status updates. These social networking platforms turned a lot of us into content creators and sharers. In addition, the number and types of devices through which we can do all these things have expanded as well. All this can generate a sense of empowerment not just because we can become content creators but also because we get to define our identities across networks as we participate in different communities (virtual or not). Throughout institutions, networks have changed hierarchies and the ways in which individuals interact. Interestingly, common boundaries (between home and work, public and private, for instance) have become a lot blurrier.

The book also has some development on the history of the Triple Revolution, tracing its origins and trends that are social and technological. This also means that the story being told is that of Western (and mainly American) trends. After all, all the goods and capacities open by social networking are available to only those who can afford them and who live in societies that are rich enough to provide the infrastructure necessary for ICTs. The digital divide is a bit too underplayed in this book for my taste. But that second chapter is a really great primer on networks that stands on its own and where the main concepts of network analysis are clearly explained. At the same time, if the Internet did not invent networking, it certainly contributed massively to its expansion. The book also contains a quick history of the Internet in combination with the impact of the spreading of personal computers as well as the different subcultures that emerged along with the Internet (techno-elites, hackers, virtual communautarians and participators). The final layer of the Triple Revolution is mobility. Portable computers (ultrabooks), tablets and smartphones, along with reliable wifi everywhere ensure that we are continuously and reliable connected, which means that we have to devise strategies to manage the volume and types of social interactions and these technologies give us the tools to do just that but this changes the ways we do a lot of things:

“Before the mobile-ization of the world, time and space were critical factors for in-person contact. People needed to specify when and where they would meet. Coordinating a rendezvous, a party or a business meeting was a formal negotiation yielding firm coordinates. Early in the twentieth century, sociologist Georg Simmel pointed out that a similar, large-scale change occurred with the nineteenth century’s Industrial Revolution. With the coming of big machines, cities, bureaucracies, stores, and railroad lines running on strict timetables, people had to be at precise places at precise times— or else the machines wouldn’t be operated, papers wouldn’t be pushed, customers wouldn’t be served, and trains wouldn’t be boarded. Public clocks— and private wristwatches— regulated the industrialized world. This was a profound change from preindustrial village life, where people went to their farms, shops, or pubs according to their needs— not their clocks.

To some extent, mobile phones allow us a slight return to this more casual negotiation of time. In the age of mobile connectivity, time is more fluid and people’s expectations have changed. In the felicitous phrase Ling uses, “hyper-coordination” is now possible and preferred, especially by younger mobile users.” (Loc. 2662)

In a way, one could argue that location is making a comeback as we more or less automatically update our locations at all times on social networking platforms. Technologies and platforms then give more flexibility in our opportunities for interaction and how we present ourselves in these interactions (Goffman would have a field day with this stuff), something that Rainie and Wellman call connected presence (interaction through technology without physical presence), absent presence (the annoying habit of checking one’s email / texts / Facebook timeline / Twitter feed while interacting with someone f2f), or present absence (incorporation of absent people to f2f interactions through technology). So, we are more or less always on at multiple levels but there is a bit of cultural lag as we try to figure out the proper norms to navigate these interactions. Is it rude to check your email while in f2f interaction with someone (a BIG one for teachers!)? How long and loud are you expected to gab on your cell phone in a public space? Etc. We are still working those out. And a lot of us as guided by a new anxiety: FOMO (fear of missing out). How many ultra-important tweets have I missed while writing up this blog post? Answer: none, I have my iPad on with a Twitter client open. I am typing this in Chrome with tabs open in Facebook, Google Reader, and others.

Having those basics in place, then, the book follows with a series of chapters on the ways the Triple Revolution has worked its way (as cause and effect) into our relationships and social institutions (such as family and work). That is where the main message of “the sky is not falling” comes through loud and clear. The authors also address why the digital dualism persists. Digital dualism refers to the preeminence of f2f interaction as “real” interaction and virtual ones as a defective, debased form of sociability because it does not involve all the bodily stuff that enrich interaction and all the other layers of subtle interactive clues that give rich texture to encounters. Digital dualism assumes the absence of all these dimensions of interaction and therefore declares it a poor substitute. The underlying assumption here is that individuals interact with different people f2f and online, which is simply not the case. It also ignores the fact that there are various ways of enriching virtual interactions (smileys come to mind) and that individuals integrate them in their communication toolkit and use them depending on the context of the interaction. But all of this does not lead to isolation but to what the authors call flexible autonomy:

“The personalized and mobile connectivity enhanced by the Triple Revolution and the weakening of group boundaries have helped relationships move from place-to-place networks to individualized person-to-person networks. Most have private internet connections and personal mobile phones, and their own cars. Lower numbers of children mean parents need to spend less time at home raising them. There are fewer children to keep parents housebound. The loosening of religious, occupational, and ethnic boundaries also encourages interpersonal free agentry.

Rather than ties between households or work groups, people connect as individuals to other individuals, in person-to-person networks. They maneuver through multiple sets of ties that shift in importance and contact by the day. Each person engages in multiple roles at home, with friends and relatives, and at work or school. Their networks are sparsely knit, with friends and relatives often loosely linked with each other. These loose linkages do not imply a complete untethering of social relations: There are only a few isolates “bowling alone.” Most people are connecting in shifting networks rather than in solidary groups. Such networks provide diversity, choice, and maneuverability at the probable cost of overall cohesion and long-term trust.

While place-to-place networks show how community has transcended local boundaries, person-to-person networks show how community has transcended group boundaries. It is the individual— and not the household, kinship group, or work group— that is the primary unit of connectivity. The shift puts people at the center of personal networks that can supply them with support, sociability, information, and a sense of belonging. People connect in person and via ICTs. Their networking activities shift as their needs shift. While network members relate to each other as persons, they often emphasize certain roles. They are bosses to their employees, husbands to their wives, friends to their friends, and so on— with somewhat different norms for each network.

Networked individualism means that people’s involvement in multiple networks often limits their involvement in and commitment to any one network. It is not as if they are going to the village square every day to see the same crowd. Because people can maneuver among milieus, their multiple involvements decrease the control that each milieu has over their behavior. Yet limited involvements work both ways. If a person is only partially involved in a milieu, then the participants in that milieu often are not as committed to maintaining that person’s well-being.” (Loc. 3234)

The idea of the networked self then, I think, is very close to Beck and Bauman’s notion of individualization that the condition of liquid modernity and risk society and flexible autonomy also refers back to the idea of the self as aself-constructed project where individuals have to assemble their own capital (including social) and resources in the absence of the institutional and structural support (i.e. generalized precarization). Individualization is a concept much less benign than flexible autonomy but the authors are not naive:

“Living in person-to-person networks has profound implications both for individuals and for the social milieus and overall societies that they are in. Networked individualism downloads the responsibility— and the burden— of maintaining personal networks on the individual. Networked individuals often have time binds, since they are constantly negotiating plans with disconnected sets of individuals within their expanding network. Active networking is more important than going along with the group. Acquiring resources depends substantially on personal skill, individual motivation, and maintaining the right connections.” (Loc 3257)

So, it is up to the networked individual to manage her networks and social capital. But these changes have also affected families (in addition to the changes brought about by changes in gender roles, the economy, etc.). The family itself now has porous boundaries and can be considered a network in itself. Family scholars will not be surprised by any of this. ICTs have accompanied and amplified these structural changes more than they have caused them but they are now thoroughly embedded in family dynamics both in terms of bonding and bridging links, within the family and outside of it. Here again, the sky is not falling and texting is not destroying families.

“Networked families have adapted to the Triple Revolution. They use ICTs to bridge barriers of time and space, weakening the boundaries between public and private life spaces. The mounting and interrelated changes in the composition of households— such as the life-cycle complexities of marriage and divorce and decisions to have children— mean that today’s households are varied, complex, and evolving. Networked families use ICTs to mediate these complexities and adapt ICTs to their varied needs.

(…)

Not only have families changed in size and composition, they have also changed in their lifestyles. ICTs have become thoroughly embedded in families’ everyday lives, helping them stay connected and in motion. The internet and mobile phones connect family members as they move around, help them find each other, and bring them together for joint work and play. The result is that ICTs— often in conjunction with personal automobiles— have paradoxically provided household members with the ability to go their separate ways while at the same time keeping them more connected. Families have less face time, but more connected time, using mobile phones and the internet.” (Loc 4461)

Similar changes have affected the organization of work and there has been a lot of ink spent already on the networked organization in the context of economic globalization, so, no need to belabor that point. But on a more micro level, we have seen the emergence of the networked worker, taken out of the office or the cubicle in a less hierarchical organization, capable to work everywhere at any time thanks to ICTs and for whom boundaries between home and work, between private and public time are blurry. 

And then there are the ways in which ICTs and social networking technologies revolutionize the way media and news content is produced and consumed:

“In the print-dominant era of news, news stories could have a handful of elements: headlines, narrative texts, photos, graphics, sidebar stories, and “pull quotes” that featured people cited in the article. In the digital age, the number of features of a news story could rise to over fifty items as websites could contain links to other stories and primary resources, spaces for readers to add their own comments, tags and pictures, links to archives of stories and timelines, full transcripts of interviews, audio material, video clips, background material from the reporter about the process of gathering the story, photo albums, details about the reporter such as a biography and an archive of her previous work. In other words, web treatment of news provides fuller context than print media because of the associations that can be built into a story such as links to background material, other stories, archives of past coverage, as well as newsmakers and organizations mentioned. Among other things, the digital, linked format invites browsing and “horizontal” reading through links, rather than linear “vertical” reading.

This display of digital material also invites challenge, amplification, and adjustment by users of the news site. Networked individuals can now respond to stories more easily and in more ways than they ever could in the “Letters to the Editor” sections of newspapers. With commenting features embedded within news stories, readers can immediately post their thoughts and opinions— not only for the editorial team to see but also for anyone else who happens to be reading that same article. With links to the writers’ email addresses or Twitter accounts, readers can communicate directly with journalists and may sometimes receive a response with greater speed than they would have in the days when readers would mail in their comments and await their publication— if they even made it to publication. Online follow-up chat sessions also give readers the opportunity to discuss matters directly with the journalists in real time.

(…)

Compared to the print environment, then, data in the digital environment are denser, broader, and deeper. The digitalization of news thus offers the potential for richer coverage and therefore deeper understanding. Moreover, decisions about the structure and hierarchy of content found online, on how to allocate attention, and on how to respond are now likely to rest in the hands of both the traditional editorial professionals and ordinary networked individuals. ” (Loc 6034)

This is an experience familiar to anyone who consumes their news online not through media outlets per se but through Newsreaders, Twitter and other filtering and curating technologies. Talking back to “experts” is also a new experience. To experience the news outside of traditional media is also new. One only has to think of the Arab Spring and similar social movements to realize that networking also creates news, as much as media organizations.

The authors also touch upon a topic that is important: that of surveillance. Even though that topic is not really developed, they do bring in a couple of additional concepts: where surveillance usually refers to governments and corporations monitoring what we do, produce and consume, co-veillance refers to mutual surveillance and monitoring of behavior online. We google people. We check out their Facebook profiles, etc. And there is sousveillance, that is, the riff-raff watching the elites, politicians and organization and reporting to online communities (often for the purpose of public shaming). But all this overall means we have all learned to live without much privacy and we need to factor that in to what we do online.

The book then ends with a set of recommendations on how to thrive in the networked context that is more and more shaping our lives, such as “segment your identity”, “learn to function in different contexts” or “be aware of invisible audiences”… maybe I should give that (fairly extensive) list to my students. But the authors also argue that in order to thrive and succeed, individuals need (and sometimes already have) new forms of literacy:

  • Graphic literacy
  • Navigation literacy
  • Context and connections literacy
  • Focus literacy
  • Multitasking literacy
  • Skepticism literacy
  • Ethical literacy
  • Networking literacy

Because the Triple Revolution is not quite over and the trends noted throughout the book are still unfolding. Legislations are still being drafted and avidly debated, especially things having to do with Net Neutrality and privacy. Informal norms of online etiquette are far from settled (especially, I might add, in the context of online rabid misogyny).

Again, as I mentioned above, this is a relatively optimistic book so there is limited critical examination of the dark side of all these things. This is something that will frustrate readers as the idea of networked individualism seems to erase issues of class, race and gender (among others) that are not addressed in the book. So, this is not by any means a complete examination of networking but it is a solid and engaging starting point.

Posted in Book Reviews, Culture, Globalization, Identity, Labor, Networks, Organizational Sociology, Privacy, Public Policy, Social Capital, Social Change, Social Institutions, Social Interaction, Social Research, Socialization, Sociology, Surveillance Society, Technology | No Comments »

Book Review – Les Rémunerations Obscènes

January 3, 2012 by and tagged , , , , , , , , , , , ,

Philippe Steiner‘s Les Rémunerations Obscènes is a pamphlet more than a book per se. With a 134 pages of text, it a short and clear read on the topic of the stratospheric compensations received by corporate CEOs and their lack of justification. However, the book is not just a rant against these compensations packages. Steiner systematically debunks one by one, armed with both economic and organizational sociology and some solid references to research, all the justifications commonly employed to rationalize the levels of CEO compensation.

The book is also shock full of data detailing the various levels of compensations, their evolution and trajectories, alongside some more well-known data on the increase of inequalities and wage stagnation for the rest of the population. The icing on the cake comes from some morceaux choisis from CEOs themselves, in their own words, explaining why they should be paid such obscene compensations. Finally, the book ends with a few suggestions as to what should be done.

The sociologists will also find in the book some constant references to classical (Weber, Durkheim) and more contemporary sociologists as Steiner goes through some SHiP (Structure / History / Power) demonstration to explain how we got to these levels of compensation, why the upward trend has been so steep and continues to this day irrespective of objective factors such as performance. Steiner has done his homework and the bibliographical references are quite extensive for such a short book.

Using Weber, Steiner argues that the obscene levels of compensation have nothing to do with capitalism, which is supposed to temper the irrational passion for profit-seeking through a variety of mechanisms. The unleashing of greed is not part of such mechanisms. The corporate übermenschen (as Steiner calls them, “surhommes”) have managed to disconnect themselves from social ties that would link them to social norms and a general sense of the way the mere mortals live. The strong ties to the political world also increase the amount control that these men (yes, men) exercise over their own enrichment. And has been recently exposed, it is Goldman Sachs world. The rest of us just live in it.

The strongest parts of the book are those where Steiner explains the organizational processes at work in determining CEO compensations, especially the work of compensation committees. These committees may be composed of other CEOs, and they may use information provided by consulting firms specialized in constructing remuneration packages. This is where social capital and social networks analysis is central. These compensation committees look like a game of revolving door and mutual back-scratching disguised under rationalizations such as preventing CEOs from leaving the country if they do not get a globally-competitive level of compensation, the ability to attract the best and brightest. In reality, this looks more like CEOs looking at each other’s compensation and saying “I want at least what they have!” The processes are those of a very close and tight-knit in-group.

What of the argument that compensations packages are often tied to performance (in terms of stock value) and therefore, there is a level of accountability? Steiner reviews the research and shows that that is simply not the case. First of all, there are all the anecdotes of golden parachutes. Second of all, compensations never decrease based on bad performance. They might not increase but that is it. Steiner shows that salaries and bonuses rise in ways unconnected to stock prices and values.

So, are CEOs so rare and so incredibly talented that their compensation levels have exploded? Steiner invokes his Micromégas regime of competition, with reference to Voltaire: minuscule differences between individuals translate into massive differences in compensation between CEOs and the rest. At the same time, CEO contribution to the value of firms is minimal. At the same time, throughout organizations and recruiting firms, there is the belief in extreme individual agency, that is, the belief that whatever firm results are fully attributable to CEO decisions. This belief is taken as religious dogma (except, of course, when the company collapse and all of a sudden, someone like Enron’s Jeffrey Skilling argues that he didn’t know anything that was going on in the firm). If “I” did all this, then, “I” deserve to appropriate such a high share of profits, not the hundreds, or thousands, or tens of thousands of people who have contributed to innovation, productivity, etc. And this appropriation has to be at a level comparable to that of other CEOs, worldwide.

On the other side of things, firms that design compensation packages tend to think that (1) they will not be able to attract the “right” candidates if compensation packages are not tempting enough, and (2) that a company would symbolically debase itself if it did not come up with a phenomenal compensation package (one that is more impressive than that of comparable firms). This triggers compensation inflation as chain reaction.  Companies offer enormous compensation packages as status signals that reflect on them.

Steiner also analyzes the current indignation regarding executive compensation using Durkheim’s concept of moral economy, that is, the social evaluation of the functions and compensation. The level of contestation has to do with the legitimation crisis that has been intensified by the economic crisis, itself revealing the disconnect between compensation levels and the collapse of their justifications. Of course, politicians have grabbed the theme of a moralization of executive compensation, but the tangled web of political/corporate connections guarantees that said moralization will not go beyond rhetoric.

Invoking The Spirit Level, Steiner ends by noting that obscene compensation is a social pollution, contributing to rising inequalities and their deleterious effects. The book is a bit short on solution (fiscal policy), which is a shame but changing the structural nature of obscene compensation probably would take a whole book in itself.

In light of the current crisis and the imposition of “sacrifices” on populations across the Western world, this topic is highly relevant. In the context of the upcoming French presidential election, and as the main candidates start to unveil their platforms, this book comes out at the right time and should be mandatory reading to said candidates.

Posted in Book Reviews, Collective Behavior, Corporatism, Economic Sociology, Ideologies, Networks, Organizational Sociology, Public Policy, Social Capital, Social Inequalities, Social Institutions, Social Privilege, Social Stratification, Sociology | No Comments »

Organizational Culture and Religious Behavior

July 5, 2011 by and tagged ,

You must read this first-person account of a former Goldman Sachs “quant” (that’s how analysts are called) with a degree in physics (meaning, he can do fancy maths). There is a lot to love.

The hierarchy:

“There were other characters in this drama. The sales guys were complete tools, with a total IQ, summing over all of them, still safely in the double digits. The traders were crafty and quick-witted, but technically unsophisticated and with the attention span of an ADHD kid hopped up on meth and Jolly Ranchers. And the quants (strategists in Goldman speak)? Mostly failed scientists (like me) who had sold out to the man and suddenly found themselves, after making it through two years of graduate quantum mechanics, with a bat-wielding gorilla peering over their shoulder (that would be the trader) asking them where their risk report was.”

The organizational rituals that would make Durkheim proud:

“To cite a particularly grotesque example, once a year, one of the partners would buy a pallet of White Castle burgers and first-year analysts and associates would have a burger-eating competition (with some nominal amount donated to charity). All trading on the Goldman Sachs trading floor would stop as every man on the floor would gather ’round to watch the plebes stuff themselves.

Trading turned from interest-rate swaps (minimal notional size: $50MM) to the over/under on the burger count for a particular analyst. Occasionally, one poor schmuck would puke, and the partner would rush to catch it with a plastic trash bin.”

The cult-like culture and behavior:

“Wall Street, like Scientology, has an all-inclusive and claustrophobic value system all its own. Particularly at Goldman Sachs, which prided itself as a breed apart from other firms, this provincialism went even further. Former employees who had left Goldman were rarely mentioned. The unanimous phrase for it was ‘no longer with the firm,’ said in the same tone used to describe the passing of a family member.

This tendency reached the height of comedy inside the strategies division, where some of the quants published academic papers on the more theoretical aspects of their work. If an author quit Goldman though, his name would be removed from the official version of the publication. It got to the point that some papers had no authors, and had apparently written themselves. So it goes. No longer with the firm.

(…)

Wall Street is even simpler than religion. Your entire worth as a human is defined by one number: the compensation number your boss tells you at the end of the year. See, pay on Wall Street works as follows: your base salary is actually quite modest, but your ‘bonus’ is where the real money is. That bonus is completely discretionary, and can vary anywhere from zero to a manifold multiple of your base salary.

So, come mid-December, everyone on the desk lines up outside the partner’s office, like the communion line at Christmas Mass, and awaits their little crumb off the big Wall Street table. An entire year’s worth of blood, sweat, and tears comes down to that one moment. And the entire New York economy marches to the beat of that bonus drum.

Without that number though, your privileged place in the New York hierarchy goes away. Gone is the house in the East Hamptons. Gone is the $2mm duplex on the Upper West Side. Gone is your kid’s $25K/year pre-school.

And that’s why Wall Street has that roach motel property: people check in, but rarely check out. By the time you’ve been through a couple of bonus cycles and seen that wad of cash hit your bank account in mid-January, you can’t imagine a life without it.”

Read the whole thing.

Posted in Corporatism, Organizational Sociology | No Comments »

Book Review – Traȋtres A La Nation

April 16, 2011 by and tagged , , , , , , , , , , , , , , , , , ,

Stephane Béaud’s Traîtres À La Nation – Un Autre Regard Sur La Grève Des Bleus en Afrique du Sud (en collaboration avec Philippe Guimard) is perfect and great example of public sociology. It very nicely and powerfully shows what sociological analysis can do, especially with respect to a very high-profile event, such as the “strike” by the French football team during the 2010 World Cup in South Africa.

I really do hope that this book will get an English edition. If that were the case, I would jump on it and make my students use in my undergraduate classes. It is written at the perfect level, uses a lot of concrete examples. There isn’t too much jargon but the sociological analysis is crystal clear and very powerful. And, of course, the topic is guaranteed to get people’s attention. One can point at this book and say “this is what sociology does.”

The starting point of the book, obviously, is the strike by the players of the national French team during the World Cup, followed by their shameful exit from that competition in the early stages (after a very controversial qualification), and the social and political fallout from these events. Considering how discussed these events have already been, what does sociology have to bring to the table? First off, most of the discussion has been tainted by moral, classist and racist considerations. Exit the glorious days of the “black, blanc, beur” winning team of 1998, now, the strike is denounced by politicians as the work of low-class, highly-paid little bosses and the hapless followers. The media and politicians engaged in moral condemnations. Putting oneself in the position of judge, prosecutor and jury is not what sociology does. The job of the sociologist, for Béaud, is the Weberian injunction of Verstehen.

The point of sociological analysis then is to put these events in the proper context (what I call SHiP – structure, history, power) and to retrace the sociological factors that shaped this French national football team (especially in contrast with the 1998 team). What Béaud engages in is what he calls “live sociology” in which moral judgment is suspended and social action is re-situated in is (muli-layered) context, understood as a system of constraints in which individual behavior occurs. That is, the challenge is to treat this event as a social fact (in Durkheim’s sense): the strike is a product of the deregulation of French professional football, structural causes, changes in recruitment, training and socialization of French footballers, the internationalization and precarization of football careers (based on changes in the legal framework). Alongside these structural factors are more institutional and symbolic factors, such as relationships between players and the media, as well as the group dynamics within the French team.

For those of you who don’t remember, the strike of the French team occurred after France’s main sports daily newspaper published the photo to the right, on its front page, after the defeat against Mexico. The comment between quotation marks is supposed to have been said by Anelka against French coach Domenech in the locker rooms. Following the alleged incident, Anelka was expelled from the team by the French Federation.

Arguing the fact that what goes on in the locker rooms is supposed to stay there, and never be divulged to the public, the players went on strike and issues a communiqué (actually drafted by the attorney of one of the players) also blaming the Federation for mismanaging the situation.

For Béaud, this reflects the growing tensions that have been building up between players and the media as well as the changes in these relationships. Whereas these relationships used to be simple and straightforward, if not friendly, they have become more formal, complex and marked by the professionalization of the players. While players used to be approachable, and locker rooms were not closed off to the press, interactions with players are now mediated by the entourage that is characteristic of the main players (attorneys, PR consultants, etc.) and the creation of mixte zones in stadiums is a perfect reflection of that. As a result, it is more difficult to get more than canned talking points out of the players who are already uncomfortable with public speaking.

At the same time, Béaud shows that what happened was not the product of the “little bosses” from the projects pushing the other players into the strike. The French team was indeed divided but not along racial and ethnic lines but rather into group statuses such as established players (incumbent players, those more or less guaranteed to play) versus substitutes. The established group is composed of players who have the most sport legitimacy and credibility, which puts them in positions of leadership.

Compared to other players also from the project, the established players are more sensitive to any feeling of symbolic humiliation and injustice, and they are more likely to experience a relative frustration with the poor game strategy of the French team in recent years, under the leadership of a discredited coach. So, in the 2010 French team, one finds the dominated group, the newcomers, and the recently selected players from African origin. Their lack of either integration in the team or football capital reduced the probability that they would go against the decisions of the established group. And the newspaper frontpage gave the team a unity it had never achieved before.

Add to this the role of the French Football Federation and its incomprehensible to reappoint a discredited coach (which appointing his successor right before the World Cup, thereby undermining him even further), the respective relationships between the players and this coach (certainly, several players from the established group had a grudge against him), the conflict between the FFF and the other major institution involved, the Professional Footballers League. And finally, the infiltration of the political and social tensions from the housing projects into the team all created a bundle of tensions that were bound to explode at some point… and did.

These events are also a reflection of the change in recruitment of players in French football. In the post-War period, one finds most French football players came from the blue-collar working-class (especially the clubs from Northern France). The trajectories of these players are quite different than what they are today. They usually spent their youth years in amateur football, still going to school to obtain technical and vocational qualifications. They become professional relatively late (in their 20s). Therefore, they receive a rather typical working-class socialization. The 1998 team is basically the last fling of that generation of players, with a specific sport and social ethos based on humility, collectivism, respect for the elders and explicit patriotism. This is the working-class before the precarization of the working-class of the deindustrializing years and the defeat of its political power. And the players of the 1998 team who did grow up in the housing projects did so before the ethnic contraction and marginalization of these areas and increased polarization.

There are three major differences between the 1998 team and the 2010 team, sociologically speaking:

(1) There are now more players in the great and economically powerful European teams of England, Italy and Spain. A minority of them now play for French teams.

(2) Players are now recruited by training centers (famous institutions that detect football talents and develop them over several years, with hopes of professionalization right after graduation. These centers have made France the second exporting countries – after Brazil – when it comes to footballers, but they also close off earlier and earlier any real education and occupy a greater part of the players’ socialization) at an earlier and earlier age, and especially from the lower classes. Fewer players now come from the working-class French heartland, and more and more from the housing projects on the outskirts of France’s largest cities.

(3) There are now more players of African origin, especially sub-saharan Africa, as opposed to the Maghreb, and from players from France’s territories (Antilles, Guadeloupe, etc.).

This greater internationalization of football out of France is directly connected to the legal context created by the Bosman Ruling, which allowed players to have greater freedom of movement from one club to the next. This greater freedom has also led to the massive inflation of footballer compensation. All of a sudden, the most powerful European clubs were able to recruit players from all over Europe, and the players were able to demand higher pay for their services. These teams have been accused of pillaging other countries for their own benefit. If French football creates great players, the French teams are not economically strong enough to retain them once these players fully develop their potential. This has led former players to deplore the lack of “fidelity to the jersey”. This also means that teams are less likely to have a trademark style of play, as the recruitment is no longer local and long-term.

Now, a player will typically enter a training center around 15 years old (if not pre-training centers that recruit even younger players) and they may leave for a non-French team even before their training is complete to start playing for the club that has recruited them. And the Bosman Ruling allows these young players to change club more easily (making more money in the process). As a result, their trajectories are much less smooth and their socialization more chaotic as they leave their families at a fairly young age. For the lower-class parents of these players, to sign a professional contract is a way out of the project for their son and club scouts start contacting parents as early as possible (the competition is extreme), making them incredible offers. From the clubs’ perspective, these young players are commodities, and they expect rather rapid returns on investment, so as to re-sell the players at an even higher price than they paid for him.

This means that, at a young age, players have to be surrounded by a whole entourage of agents, attorneys for themselves and their parents, along with the usual trainers, PR people, etc. But in the context of increased precarization for the lower classes, social tensions in the projects, and the ever-more repressive policies put in place by the Sarkozy government, who could resist?

So, Béaud argues that the strike of 2010 in South Africa is an act of civil disobedience and also a reflection of all these structural and cyclical factors: the changes in socialization of the players, transformation of the labor market for French football players, the impact of geographical and sport migration and the corresponding social uprooting, along with the pressures tied to the obligation to perform earlier, faster and better in a very competitive context… on top of the group dynamics and the interpersonal and institutional issues mentioned above.

Béaud wraps up his study with an analysis of the evolution of the players of Maghreb origin in French football, inserting it as well in the social context of immigration and integration. The last two chapters of the book are less directly related to the 2010 fiasco but they additional layers to an understanding of French football in its social context.

As I mentioned above, this book is a great read (something that does not happen enough in sociology!) and a great example of public sociology and live sociology. Highly recommended… if you can read French.

<p style=”text-align: justify;”><a href=”http://www.amazon.fr/Tra%C3%AEtres-nation-autre-regard-Afrique/dp/2707167169/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1302999785&amp;sr=1-1″ target=”_blank”><img style=”margin: 5px;” src=”http://ecx.images-amazon.com/images/I/41FnLegOc1L._SL500_AA300_.jpg” alt=”" width=”300″ height=”300″ /></a>Stephane Béaud’s <a href=”http://www.amazon.fr/Tra%C3%AEtres-nation-autre-regard-Afrique/dp/2707167169/ref=sr_1_1?s=books&amp;ie=UTF8&amp;qid=1302999785&amp;sr=1-1″ target=”_blank”>Traîtres À La Nation – Un Autre Regard Sur La Grève Des Bleus en Afrique du Sud</a> (en collaboration avec Philippe Guimard) is perfect and great example of public sociology. It very nicely and powerfully shows what sociological analysis can do, especially with respect to a very high-profile event, such as the “strike” by the French football team during the 2010 World Cup in South Africa.</p>
<p style=”text-align: justify;”>I really do hope that this book will get an English edition. If that were the case, I would jump on it and make my students use in my undergraduate classes. It is written at the perfect level, uses a lot of concrete examples. There isn’t too much jargon but the sociological analysis is crystal clear and very powerful. And, of course, the topic is guaranteed to get people’s attention. One can point at this book and say “this is what sociology does.”</p>
<p style=”text-align: justify;”>The starting point of the book, obviously, is the strike by the players of the national French team during the World Cup, followed by their shameful exit from that competition in the early stages (after a very controversial qualification), and the social and political fallout from these events. Considering how discussed these events have already been, what does sociology have to bring to the table? First off, most of the discussion has been tainted by moral, classist and racist considerations. Exit the glorious days of the “black, blanc, beur” winning team of 1998, now, the strike is denounced by politicians as the work of low-class, highly-paid little bosses and the hapless followers. The media and politicians engaged in moral condemnations. Putting oneself in the position of judge, prosecutor and jury is not what sociology does. The job of the sociologist, for Béaud, is the Weberian injunction of Verstehen.</p>
<p style=”text-align: justify;”>The point of sociological analysis then is to put these events in the proper context (what I call SHiP – structure, history, power) and to retrace the sociological factors that shaped this French national football team (especially in contrast with the 1998 team). What Béaud engages in is what he calls “live sociology” in which moral judgment is suspended and social action is re-situated in is (muli-layered) context, understood as a system of constraints in which individual behavior occurs. That is, the challenge is to treat this event as a social fact (in Durkheim’s sense): the strike is a product of the deregulation of French professional football, structural causes, changes in recruitment, training and socialization of French footballers, the internationalization and precarization of football careers (based on changes in the legal framework). Alongside these structural factors are more institutional and symbolic factors, such as relationships between players and the media, as well as the group dynamics within the French team.</p>
<p style=”text-align: justify;”><a href=”http://e-blogs.wikio.co.uk/wp-content/uploads/2010/06/LEquipe_Anelka_Domenech_UNE1.jpg” target=”_blank”><img style=”margin: 5px;” src=”http://e-blogs.wikio.co.uk/wp-content/uploads/2010/06/LEquipe_Anelka_Domenech_UNE1.jpg” alt=”" width=”320″ height=”217″ /></a>For those of you who don’t remember, the strike of the French team occurred after France’s main sports daily newspaper published the photo to the right, on its front page, after the defeat against Mexico. The comment between quotation marks is supposed to have been said by Anelka against French coach Domenech in the locker rooms. Following the alleged incident, Anelka was expelled from the team by the French Federation.</p>
<p style=”text-align: justify;”>Arguing the fact that what goes on in the locker rooms is supposed to stay there, and never be divulged to the public, the players went on strike and issues a communiqué (actually drafted by the attorney of one of the players) also blaming the Federation for mismanaging the situation.</p>
<p align=”center”><object classid=”clsid:d27cdb6e-ae6d-11cf-96b8-444553540000″ width=”480″ height=”390″ codebase=”http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0″><param name=”allowFullScreen” value=”true” /><param name=”allowscriptaccess” value=”always” /><param name=”src” value=”http://www.youtube.com/v/GBl8Ia5_dCA?fs=1&amp;hl=en_US” /><param name=”allowfullscreen” value=”true” /><embed type=”application/x-shockwave-flash” width=”480″ height=”390″ src=”http://www.youtube.com/v/GBl8Ia5_dCA?fs=1&amp;hl=en_US” allowscriptaccess=”always” allowfullscreen=”true”></embed></object>
<p style=”text-align: justify;”>For Béaud, this reflects the growing tensions that have been building up between players and the media as well as the changes in these relationships. Whereas these relationships used to be simple and straightforward, if not friendly, they have become more formal, complex and marked by the professionalization of the players. While players used to be approachable, and locker rooms were not closed off to the press, interactions with players are now mediated by the entourage that is characteristic of the main players (attorneys, PR consultants, etc.) and the creation of mixte zones in stadiums is a perfect reflection of that. As a result, it is more difficult to get more than canned talking points out of the players who are already uncomfortable with public speaking.</p>
<p style=”text-align: justify;”>At the same time, Béaud shows that what happened was not the product of the “little bosses” from the projects pushing the other players into the strike. The French team was indeed divided but not along racial and ethnic lines but rather into group statuses such as established players (incumbent players, those more or less guaranteed to play) versus substitutes. The established group is composed of players who have the most sport legitimacy and credibility, which puts them in positions of leadership. Compared to other players also from the project, the established players are more sensitive to any feeling of symbolic humiliation and injustice, and they are more likely to experience a relative frustration with the poor game strategy of the French team in recent years, under the leadership of a discredited coach. So, in the 2010 French team, one finds the dominated group, the newcomers, and the recently selected players from African origin. Their lack of either integration in the team or football capital reduced the probability that they would go against the decisions of the established group. And the newspaper frontpage gave the team a unity it had never achieved before.</p>
<p style=”text-align: justify;”></p>

Posted in Book Reviews, Collective Behavior, Commodification, Globalization, Identity, Institutional Racism, Media, Migration, Nationalism, Organizational Sociology, Racism, Social Institutions, Social Interaction, Social Sanctions, Social Stigma, Social Structure, Socialization, Sociology, Sports, Teaching Sociology | No Comments »

Teaching Sociology of Labor, Organizations and Inequalities – Undercover Boss

February 7, 2010 by and tagged , , , , , ,

Anyone teaching sociology must watch this series on CBS and make students watch as well:

It’s all there: the organizational, gender and class disconnect between the company’s layers. How the gender of workers is assumed when rules are made up (male is default). How treating workers like human beings improves morale and productivity more than dumb clock rules as well the embedding of labor into other parts of the social structure.

At the same time, the usual frustration is present: it’s as if changes can only come from individuals and keeps the system untouched. Yes, this company might operate better, but ultimately, it is to the benefit of the company (as well as SOME individuals), but the system is not questioned.

Posted in Embeddedness, Gender, Labor, Organizational Sociology, Social Inequalities, Sociology, Teaching Sociology | No Comments »

Book Review – Inside Toyland

January 27, 2010 by and tagged , , , , , , , , , , , , , , , , , , , , , , , ,

Among the sociological topics I like reading about, I particularly enjoy sociology of labor, especially those based on deep ethnographic work combining micro-analysis of social relationships in the workplace with macro-analysis of structural inequalities.

So, this is why when my colleague Mike recommended Christine L. Williams‘s Inside Toyland: Working, Shopping, and Social Inequality, it was a no-brainer for me to jump on that book. It also has to do with the fact that I am always on the lookout for potential sociological readings for my freshmen / Sophomore classes.

For this audience, good qualitative sociological work is often much more palatable than peer-reviewed articles with incomprehensible statistics (for their level). Part of it is because I remember, as a first year student, how refreshing it was to read Howard S. Becker’s Outsiders or anything by Goffman compared to Lazarsfeld.

Inside Toyland is an ethnography of work in toy retail. Williams spent time working at two different toy stores, catering to different social classes and therefore with different normative expectations of what service is and of employee relations. It is a book that is a rather quick read, with very little jargon but a lot of sociological content as Williams closely relates her ethnographic experience with social theories and works relating to her work. One will find references to Bourdieu’s cultural capital and habitus as well as domination, alongside Hochschild’s classical study of emotional labor and time bind, among many others. But overall, the writing is fairly informal and the insertion of a lot of examples from her field notes breaks up the reading in pleasant ways.

Inside Toyland is a rather short book but it covers all the bases of sociology of work and labor relations. Williams addresses a multiplicity of topics from changes in the US workforce, to the stratification within each toy store along with the privileges associated with each status. The book deals with class, gender and racial issues in the workplace within and between stores as structural inequalities are a major topic. It does a great job of exposing the invisible flip side of racial discrimination: white privilege and the naturalization of white entitlement.

But the book is also a study in the sociology of consumption, that is, not simply where people buy toys (by social class, for instance) but also what and how people consume toys and the various meanings and social relations symbolized through toy consumption.

In other words, Inside Toyland covers all the aspects I emphasize to my students in terms of the sociological imagination: SHiP, structure, history and power. In that last respect, the book goes into some details into the ways in which management tries to control shop floor workers (associates) in contrast to the ways in which associates find ways to resist such attempts at control and how social interactions in the workplace contribute to the reproduction to social inequalities on the macro level.

The fact that the ethnographic locus of the book is toy stores also means that there is a lot in the book about parent-children relationship (with obligatory reference to Lareau) based on social class, within the context of US individualistic and consumerist culture. Overall, the book shows how much Lareau’s class-based parenting styles are incarnated in shopping practices.

As I mentioned above, this book is a rather quick read that covers a lot of sociological territory at a level acceptable for undergraduates. It certainly illustrates the rich aspects of participant observation and introduces a lot of sociological thinkers in an approachable manner.

Posted in Book Reviews, Commodification, Consumerism, Cultural Capital, Culture, Dramaturgy, Gender, Institutional Racism, Labor, Microsociology, Organizational Sociology, Patriarchy, Precarization, Racism, Sexism, Social Inequalities, Social Interaction, Social Research, Social Stratification, Social Theory, Sociology, Structural Violence, Symbolic Interactionism, Symbolic Violence, Teaching Sociology | 1 Comment »

Against Economic Narrative: Bringing Sociology Back In or Economic Sociology 101

December 11, 2009 by and tagged , , , , ,

“As soon as one observes the formation and operation of real markets, it becomes obvious that none of [their] dynamism is possible without deep involvement by entrepreneurs, managers, workers, firms, and governments. The people who run firms have to conceptualize opportunities, figure out ways to exploit them, and motivate others to help attain those ends. They have to obtain funding, secure raw materials, and build an organization. They have to figure out ways to stabilize their interactions vis-à-vis their principal competitors. Finally, the conflict between owners and those who work for them is under constant negotiation.

Moreover, firms operate against an extensive backdrop of common understandings, rules and laws. These are most often supplied by the government. One cannot overestimate the importance of governments to modern markets. Without stable, more or less non-rent-seeking states, modern production markets would not exist. War, plunder, and mercantilism would dominate and swamp entrepreneurs.

(…) These social structures, social relations, and institutions have not been created automatically in market society. They have been long-run historical projects ongoing in all industrial societies that have worked through waves of crisis (sometimes violent). Solutions that have been  crafted required social experimentation during specific market crises and more general economic depressions (not to mention during upheavals produced by war and conquest).  These events have pushed people to think about the ways that they needed to organize in order to make and take advantage of market opportunities.

(…) Technological change certainly can have independent effect on social structures. But technological change can have these effects only where the social organization exists that makes technology relevant. So, for example, a hunter-gatherer society has little use for highways and telecommunications. But a society in which lowering the costs of transportation and communications makes it easier for firms to move goods and services where there are opportunities to sell them gives huge incentives to firms that can figure out how to lower those costs.

(…) Similarly, competition produces social-organizational responses as well. Firms try to find ways to control the worst aspects of competition in order to continue to exist. Much of the market-making project is to find ways to stabilize and routinize competition. Much of the history of the largest corporations can be read as attempts to stabilize markets for these forms in the face of ruinous competition and economic downturns.

(…) In order to take advantage of new technology, firms need to establish stable relationships to their suppliers, workers, and principal competitors. The ability to establish these relationships is itself dependent on the production of stable societal institutions such as governments and law. In every advanced industrial society, governments, firms, and workers have solved their collective problems by producing rules to help stabilize their interactions. These solutions have varied historically and across societies. They depend greatly on the relative power of different groups to produce the modern state. Modern states have produced social welfare systems, money, and the rule of law and have worked to find solutions to the conflict between labor and capital. They have promoted competition, protected workers, and provided opportunities for basic research, thus developing new technologies. Stable, non-rent-seeking governments make the difference between societies where markets are possible and those where they are not.”

Neil Fligstein (2001), The Architecture of Markets – An Economic Sociology of Twenty-First-Century Capitalist Societies, Princeton, NJ: Princeton University Press, pp. 1 – 5.

First excerpt with more to come.

Posted in Culture, Economic Sociology, Economy, Embeddedness, Organizational Sociology, Sociology | 4 Comments »