The Visible Hand: The Managerial Revolution in American Business by Alfred D. Chandler Jr.

The Visible Hand: The Managerial Revolution in American Business, written by Alfred D. Chandler Jr., is a book which looks at how the development of managerial functions and forms changed the face of American business during the era of industrialization. Chandler argues that the emergence of large-scale enterprises between the late 19th and early 20th centuries required the implementation of a new form of business organization, with a corresponding set of managerial functions. He explains that such functions, which he refers to as the “visible hand” of management, enabled companies to effectively coordinate their large-scale operations.

The Visible Hand was first published in 1977 and was met with great enthusiasm from the academic community. At the time, Chandler’s novel approach to the study of business revolutionized the field of management, providing new insight into the key changes that allowed for the large-scale operations of the modern corporation. The book has since become a classic in the field and is still an essential source of study in the areas of business and management history.

Chandler begins by discussing the emergence of the modern corporate form. He explains how, due to the increasingly complex nature of business, organizations had to create a new organizational structure in order to effectively diversify their businesses and enhance their control over their operations. He argues that this new corporate structure was distinct from the traditional pyramid structure of management which had been prevalent in the 19th century. Chandler then outlines the managerial functions which developed as a result of this new structure. He argues that these managerial functions comprised the “visible hand” of management which enabled companies to coordinate their large-scale operations and exercise control over their businesses.

In addition to outlining the emergence of the “visible hand,” Chandler looks at the impact of this new form of management on the development of the American economy. He argues that the implementation of these new managerial functions was instrumental in transforming the American economy from a regional, pre-industrial economy, to a large and powerful national economy. Chandler credits managerial knowledge as the “driving force behind the economic transformation and growth of the American economy during the period of industrialization”.

Chandler’s examination of the “visible hand” of management and its impact on the American economy is both comprehensive and authoritative. Throughout the book, his analysis of key examples such as the Standard Oil Company and the Baltimore & Ohio Railroad illustrates his thorough knowledge of the period. His argument is well-structured and convincing and offers a unique perspective on the role of management in the development of the American economy.

For students of economics and management, The Visible Hand: The Managerial Revolution in American Business provides a valuable insight into the emergence and development of the “visible hand” of management. The book is a must-read for anyone interested in understanding the impact of managerial functions on the development of the American economy in the era of industrialization.