Understanding The Managerial Revolution and the Managerial Class

The question asks about the author who, in his significant book 'The Managerial Revolution', argued that a specific group, the managerial class, holds dominance in all industrial societies, regardless of whether they are capitalist or communist. This dominance, according to the author, stems from their specialized technical and scientific knowledge, along with their crucial administrative skills.

Let's examine the key idea presented: the rise and dominance of managers. The argument is that the traditional owners of capital (in capitalism) or the state/party leaders (in communism) are increasingly losing real control. Power is shifting to those who possess the practical knowledge and skills required to run complex industrial operations and organizations on a day-to-day basis. These individuals form a distinct 'managerial class'.

Analyzing the Options and Identifying the Author

The options provided are prominent thinkers associated with theories of power, elites, and social structure:

• James Burnham
• Robert Michels
• Gaetano Mosca
• Vilfredo Pareto

The specific argument about the managerial class dominating industrial societies through technical and administrative expertise, as presented in 'The Managerial Revolution', is famously associated with James Burnham. His book, published in 1941, posited that capitalism was being replaced not by socialism (as Marx predicted), but by a new form of society ruled by managers.

Let's briefly consider the other options:

• Robert Michels: Known for his "iron law of oligarchy," which argues that all complex organizations, regardless of their democratic goals, will eventually become dominated by a small group of leaders (an oligarchy). While related to elite power, his focus was on the inherent tendency towards oligarchy in organizational structures rather than the rise of a specific 'managerial' class based on technical skill across entire industrial societies.
• Gaetano Mosca: A key figure in elite theory. He argued that in all societies, a minority "ruling class" always emerges and holds power over the majority. He focused on how this ruling class organizes itself and maintains power, often through legal or political means. His concept is broader than just the managerial class.
• Vilfredo Pareto: Another major contributor to elite theory. Pareto discussed the circulation of elites, distinguishing between "lions" (who rule by force) and "foxes" (who rule by cunning and manipulation). His focus was on the psychological traits and circulation of different types of elites, not specifically the technical-managerial basis of power in industrial society.

Therefore, the author whose work directly addresses the rise and dominance of a managerial class based on technical and administrative skills in industrial societies, as detailed in 'The Managerial Revolution', is James Burnham.

James Burnham's Argument in The Managerial Revolution

Burnham's core argument can be summarized as follows:

• Modern industrial economies are characterized by large, complex organizations (corporations, state enterprises).
• The ownership of these organizations is often separate from their actual control. Shareholders may own corporations, but day-to-day decisions and strategic direction are handled by professional managers.
• In state-controlled economies, the political elite may formally own the means of production, but the practical management is carried out by a bureaucracy of administrators and technical experts.
• This group of managers, possessing essential technical knowledge (engineering, science) and administrative skills (organization, planning, logistics), holds the real power because they are indispensable to the functioning of the modern industrial system.
• This managerial class is a new ruling class, distinct from both traditional capitalists and the working class, and they are the true beneficiaries and power-holders in the emerging societal structure, regardless of whether the system is nominally capitalist or communist.

Revision Table: Key Thinkers on Elites and Power

Additional Information on Elite Theories and Social Class

The ideas discussed by Burnham, Michels, Mosca, and Pareto fall under the broader umbrella of elite theories. Elite theories contrast with Marxist theories that focus on class struggle based on ownership of the means of production. Elite theorists argue that power is concentrated in the hands of a small minority, regardless of the economic system.

• Elite Theory: The general proposition that in any large, complex society, a small group will inevitably come to hold a disproportionate amount of power and influence.
• Bureaucracy: Max Weber's work on bureaucracy is also relevant here. Weber described bureaucracy as a highly rational and efficient form of organization based on hierarchical authority, specialized roles, and rule-following. While Weber focused on the structure and functioning of bureaucracy, Burnham looked at the people who staff the top levels of these large organizations (the managers) as a potentially dominant class.
• Class vs. Elite: While 'class' often refers to groups based on economic position or relationship to the means of production (like in Marxism), 'elite' typically refers to a minority group holding power, which could be political, economic, military, or, as Burnham argued, managerial/technical.

James Burnham's contribution was unique in highlighting the specific rise of professional managers, separate from traditional owners, as the new power holders in the industrial age, bridging the analysis of both capitalist and state-controlled economies.