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Economics, Psychology, and Professional Coaching I: Three Worlds

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As organizations grow more complex in the modern world, increasing attention must be given to those activities that enhance coordination and cooperation among the differentiated functions of the organization. As organizations become larger (or older), they also require clearer boundaries so leaders can maintain control. Financial monitoring and auditing functions are added. Personnel offices ensure uniformity of hiring practices as well as coordinate training efforts.

Newsletters proliferate, as do office managers, purchasing agents, and departmental administrators. These offices, roles, and management functions are devoted to the integrative functions of the organization. As the organization grows larger and older, an increasingly large proportion of the resources of the organization must be devoted to these integrative functions. As a result, modern organizations that are large (or old) are likely to become less efficient. Unless they control the marketplace, these larger or older organizations may be unable to compete with those that are smaller or younger.

Both personal and organizational boundaries are clearly drawn in the modern world. While family and work are closely related in the premodern world, modern organizations tend to discourage the mixing of family life and work. While family connections form the base for many premodern organizations, modern societies have made it illegal for anyone in an organization to hire a relative (laws of “nepotism”). Paternalistic concerns are considered inappropriate in modern organizations. Modern leaders are not allowed to regulate the lives of their workers when not on the job, although they have much greater control over the lives of their employees when they are at work.

When it comes to mission and purpose in the modern world, there is much less clarity and consistency. In general, mission statements have been created primarily for public image and marketing or (in the case of private institutions) the mission is directed simply to the “bottom line.” In contrast with their visible and clear boundaries, the mission statements of most modern organizations do not provide much clarity or guidance for those who work in or evaluate these institutions. While the premodern world is built on land and reputation (with a strong parallel emphasis on service and community), the modern world is built on a different form of capital: money. In a modern world that values democratic ideals and fosters the expectation (or myth) of upward social mobility, new wealth and a more transient bourgeoisie are dominant.

In essence, the modern world has produced a shift from direct sources of personal meaning in life (through one’s work, family, and church) to indirect sources (wealth and consumption). The premodern man or woman takes pride in the cultivation of crops or production of crafts, and in the raising of a family and provision of food and shelter to members of the family. By contrast, modern workers are often alienated from the products of their work and from ownership of the production process itself. Alienation from the direct sources of meaning in our work is joined with the alienation that comes from the loss of personal voice and influence, and with the loss of interdependency among people who once worked together in premodern communities.

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