Friday, January 30, 1998
Professor minds his ‘Manors’
ANDERSON Jacoby’s book traces employer responsibility’s history,
modern welfare capitalism
By J. Sharon Yee
Daily Bruin Contributor
Wednesday night, the only voice that could be heard at the
Anderson Graduate School of Management (AGSM) was that of Professor
Sanford Jacoby.
Jacoby, who also teaches in the history and public policy
departments at UCLA, read an excerpt from his new book, "Modern
Manors: Welfare Capitalism Since the New Deal," in front of a
standing-room only audience.
The book focuses largely on the idea of welfare capitalism in
America by chronologically outlining the successful histories of
three major corporations: Kodak-Eastman, Sears-Roebuck, and
Thompson Industries (now TRW).
These companies decided to adopt new ways of ensuring employee
loyalty by providing them with security and benefits traditionally
taken care of by the government and by avoiding labor unions, a
phenomenon termed welfare capitalism.
"The notion that companies have a responsibility to their
employees is not a new or revolutionary idea, but it is essential
to understand the history of welfare capitalism in fathoming what
is happening now," Jacoby said, referring to recent trends of
widespread corporate downsizing.
He further described welfare capitalism as a kind of "corporate
paternalism," whereby employers are committed to providing their
employees with long-term benefits and compensation (such as health
insurance and pension) in addition to their salaries.
Jacoby, who received his B.A. at the University of Pennsylvania
and Ph.D. at the University of California, Berkeley, spent nine
years traveling around the country researching the book, often
looking up company archives and interviewing former employees.
Though predominantly a scholarly work which requires a
background knowledge of business, Jacoby recommended the book to
undergraduates who have a general interest in working in the
corporate sector.
"A lot of students see today’s job market different from what it
was for their parents, and though this book doesn’t provide a quick
answer to anything, it can shed light on historical perspectives
that can ultimately affect what happens in the future," he
said.
Jacoby challenges the conventional view that welfare capitalism
faltered in the post-war era, according to Edward Berkowitz, a
professor of history at George Washington University.
"(Jacoby’s) basic argument is that welfare capitalism did not
die in the 1930s," he added, referring to a time when the U.S.
government pushed large labor programs such as the New Deal.
"Employers, either out of a sense of paternalistic benevolence
or, more likely, a dollars-and-cents understanding of the labor
market, have tried to reduce turnover by linking pay to the
company’s productivity and by improving the conditions of work
beyond those of their competitors," Berkowitz said.
Jacoby explained the title of the book as an analogy to the
Middle Ages, when feudalism reigned and the lords of the manors
offered "security and identity in return for deference and
fealty."
Since its publication a few months ago, the book has received
wide critical acclaim and rave reviews, gaining the attention of
prestigious book reviews, such as that of the New York Times.
"The book promises to be important to our understanding of the
current nature of the employment relationship," said Daniel
Mitchell, a fellow professor and colleague at AGSM.
"Welfare capitalism is less paternalistic today than in the
past," he continued, "Employees, on the other hand, are more
skeptical of corporate promises and support political mechanisms to
enforce a certain degree of paternalism."
"’Modern Manors’ is an engaging work that will become a standard
reference in the field of human resource studies/industrial
relations and will be cited widely by economic and business
historians," said Thomas A. Kochan, a management professor at the
Massachusetts Institute of Technology.
"One can predict with confidence that this book will exercise an
important influence over modern American historiography," Berkowitz
concluded. "It represents an extremely impressive achievement."
INGA DOROSZ
Professor Sanford Jacoby signs his book, "Modern Manors," as his
daughter Margaret Jacoby looks on.