Abstract
Management theory and practice are facing unprecedented challenges. The lack of sustainability, the increasing inequity, and the continuous decline in societal trust pose a threat to ‘business as usual’ (Jackson and Nelson, 2004). Capitalism is at a crossroad and scholars, practitioners, and policy makers are called to rethink business strategy in light of major external changes (Arena, 2004; Hart, 2005). In the following, we review an alternative view of human beings that is based on a renewed Darwinian theory developed by Lawrence and Nohria (2002). We label this alternative view ‘humanistic’ and draw distinctions to current ‘economistic’ conceptions. We then develop the consequences that this humanistic view has for business organizations, examining business strategy, governance structures, leadership forms, and organizational culture. Afterward, we outline the influences of humanism on management in the past and the present, and suggest options for humanism to shape the future of management. In this manner, we will contribute to the discussion of alternative management paradigms that help solve the current crises.
Article PDF
Similar content being viewed by others
Avoid common mistakes on your manuscript.
References
Alter, S. K. (2006). Social Enterprise models and their mission and money relationships. Social Entrepreneurship – new models for sustainable social change. A. Nicholls. Oxford, Oxford University Press.
Anderson, C.: 1997, ‘Values-Based Management’, Academy of Management Executive 11(4), 25–46.
Arena, C. (2004). Cause for Success: 10 Companies That Put Profit Second and Came in First. New World Library.
Argyris, C. (1957). Personality and Organization. The Conflict Between System and Individual. New York, Harper.
Argyris (1973). “Some limits of rational man organizational theory.” Public Administration Review 33: 253-267.
Bass, B. M. and B. J. Avolio (1994). “Transformational Leadership And Organizational Culture.” International Journal of Public Administration 17(3/4): 541 - 554.
Bentham, J. (1789). Introduction to the Principles of Morals and Legislation. London.
Brickson, S. L. (2007). “Organizational Identity Orientation: The Genesis of the Role of the Firm and Distinct Forms of Social Value.” Academy of Management Review 32(3): 864-888.
Buckingham, M. and C. Coffman (1999). First Break All the Rules. New York, Simon and Schuster.
Cable, D. M. and T. A. Judge (1994). “Pay preferences and Job Search decisions: A Person-Organization Perspective’,.” Personnel Psychology 47(2): 317-348.
Chatman, J. A. (1989). “Improving Interactional Organizational Research: A Model of Person-Organization Fit.” Academy of Management Review 14(1): 333-349.
Collier, J. and R. Esteban (1999). “Governance in the Participative Organisation: Freedom, Creativity and Ethics.” Journal of Business Ethics 21(2-3): 173-188.
Collins, J. and J. Porras (2002). Built to last. New York, HarperCollins.
Darwin, C. (1909). The Descent of Man and Selection in Relation to Sex. New York, Appleton and Company.
Davis, J. H., F. D. Schoorman, et al. (1997). “Toward a Stewardship Theory of Management.” Academy of Management Review 22(1): 20-47.
De Cremer, D. and S. Blader (2005). “Why do people care about procedural fairness? The importance of belongingness in responding and attending to procedures.” European Journal of Social Psychology 36(2): 211-228.
Diener, E. and M. E. P. Seligman (2004). “Beyond money: Toward and economy of well-being.” Psychological Science in the Public Interest, 5: 1-31.
Dierksmeier, C. and M. Pirson (2008). Freedom and the Modern Corporation. ISBEE, Capetown, SA.
Donaldson, L. and J. H. Davis (1991). “Stewardship Theory or Agency Theory: CEO Governance and Shareholder Returns.” Australian Journal of Management 16(1): 49-66.
Frederick, W. C., K. Davis, et al. (1988). Business and Society: Corporate Strategy, Public Policy, Ethics. New York, McGraw-Hill.
Ghoshal, S. (2005). “Bad Management Theories Are Destroying Good Management Practices.” Academy of Management Learning and Education 4(1): 75-91.
Gratton, L. (2004). The Democratic Enterprise: Liberating your Business with Freedom, Flexibility and Commitment. London, Financial Times.
Hart, S. (2005). Capitalism at the Crossroads: The Unlimited Business Opportunities in Solving the World’s Most Difficult Problems. Philadelphia: Wharton School Publishing.
Herzberg, F. (1976). The managerial choice: to be efficient and to be human. Homewood, Dow Jones-Irwin.
Jackson, I. and J. Nelson (2004). Profits with Principles- seven strategies for delivering value with values. New York, Currency Doubleday.
Jensen, M. C. (2002). “Value maximization, stakeholder theory and the corporate objective function.” Business Ethics Quarterly 12(2): pp.235-257.
Judge, T. A. and R. D. J. Bretz (1992). “Effects of Work Values on Job Choice Decisions.” Journal of Applied Psychology 77(3): 261-271.
Lawrence, P.: 2007a, Being Human – A Renewed Darwinian Theory of Human Behavior (Cambridge, MA). www.prlawrence.com.
Lawrence, P.: 2007b, ‘Organizational Logic – Institutionalizing Wisdom in Organizations’, in E. H. Kessler and J. R. Bailey (eds.), Handbook of Organizational and Managerial Wisdom (Sage, Thousand Oaks, CA), Chap. 3.
Lawrence, P. and N. Nohria (2002). Driven: How Human Nature Shapes Our Choices. San Francisco, Jossey-Bass.
Macus, M. (2002). Towards a Comprehensive Theory of Boards - Conceptual Development and Empirical Exploration. St. Gallen, HSG: 1-37.
Maslow, A. H. (1954). Motivation and Personality. New York, Harper & Brothers.
Mayo, E. (1933). The human problems of an industrial civilization. New York, Macmillan.
Mayo, E. (1946). The social problems of an industrial civilization. Cambridge, UK, Cambridge University Press.
McGregor, D. V. (1960). The Human Side of Enterprise. New York, McGraw-Hill.
Mele, D. (2009). Current Trends of Humanism in Business. In: H. Spitzeck, M. Pirson, W. Amann, S. Khan and E. von Kimakowitz (eds.), Humanism in Business: Perspectives on the Development of a Responsible Business Society. Cambridge, UK: Cambridge University Press.
Muth, M. M. and L. Donaldson (1998). “Stewardship Theory and Board Structure: a contingency approach.” Corporate Governance: An International Review 6(1): 5-29.
Nicholls, A. (2006). Introduction. Social Entrepreneurship- new models of sustainable social change. A. Nicholls. Oxford, Oxford University Press.
Nida-Ruemelin, J. (2009). Philosophical Grounds of Humanism in Economics. In: H. Spitzeck, M. Pirson, W. Amann, S. Khan and E. von Kimakowitz (eds.), Humanism in Business: Perspectives on the Development of a Responsible Business Society. Cambridge, UK, Cambridge University Press.
Pfeffer, J. and J. F. Veiga (1999). “Putting people first for organizational success.” Academy of Management Executive 13(2): 37-48.
Porter, M. and M. Kramer (2006). “Strategy and Society: The Link between competitive advantage and corporate social responsibility.” Harvard Business Review 84(12):78-92.
Prahalad, C. K. (2005). The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits. Wharton School Publishing.
Rangan, K.: 1993, The Aravind Eye Hospital, Madurai, India: In Service for Sight. H. c. 9-593-098. Harvard Business School Publishing.
Sharp Paine, L. (2003). Value Shift: Why Companies Must Merge Social and Financial Imperatives to Achieve Superior Performance. McGraw Hill, New York.
Simon, H. A. (1979). “Rational Decision Making in Business Organizations.” American Economic Review 69: 493-513.
Simon, H. A. (1982). Models of Bounded Rationality. Cambridge, MA, MIT Press.
Tichy, N. and W. Bennis (2007). Judgment: How Winning Leaders Make Great Calls. New York, Penguin Group.
Tyler, T. R.: 2006, Social Justice Research. S. f. S. o. Justice. Cambridge, MA.
Yunus, M. (2009). Social Entrepreneurs are the Solution. Humanism in Business: Perspectives on the Development of a Responsible Business Society. H. Spitzeck, M. Pirson, W. Amann, S. Khan and E. von Kimakowitz. Cambridge, UK, Cambridge University Press.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Pirson, M.A., Lawrence, P.R. Humanism in Business – Towards a Paradigm Shift?. J Bus Ethics 93, 553–565 (2010). https://doi.org/10.1007/s10551-009-0239-1
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10551-009-0239-1