The Visible Hand: The Managerial Revolution in American Business
Have you ever played a game with your toys and friends where you all pretend to be something different? Maybe you pretended to be a doctor or a firefighter, and you all had different jobs and responsibilities in the pretend world. Well, grown-ups do the same thing, but instead of playing pretend, they run big businesses that make things like toys and food.
A long time ago, before you were born, these businesses only had one person in charge, the owner. The owner made all the decisions and told everyone else what to do. But as the businesses got bigger and more complicated, they needed more people to help make decisions and run things. That's when a "manager" became a thing.
A manager is like the boss of the workers, but they don't own the business. They make sure everyone is doing their job and getting things done effectively. Think of it like your teacher in school. They are not the owner of the school, but they make sure everyone is learning and following the rules.
The "visible hand" is a way of talking about how these managers help make the business run smoothly. The phrase comes from an economist named Adam Smith, who said that businesses needed an "invisible hand" to guide them. But in the modern age of big businesses, there were too many people involved for the hand to be invisible, so it became the "visible hand."
Now, businesses have lots of managers that work together to make sure everything runs well. They figure out which products to make, how much to charge, and how much to pay the workers. Sometimes, they need to change things in the business, like when new technology comes out or when the economy changes. Managers work together to make those changes happen smoothly.
So, when you're playing pretend, remember that grown-ups do the same thing, but instead of toys, they're running big businesses with the help of lots of managers using the "visible hand."
A long time ago, before you were born, these businesses only had one person in charge, the owner. The owner made all the decisions and told everyone else what to do. But as the businesses got bigger and more complicated, they needed more people to help make decisions and run things. That's when a "manager" became a thing.
A manager is like the boss of the workers, but they don't own the business. They make sure everyone is doing their job and getting things done effectively. Think of it like your teacher in school. They are not the owner of the school, but they make sure everyone is learning and following the rules.
The "visible hand" is a way of talking about how these managers help make the business run smoothly. The phrase comes from an economist named Adam Smith, who said that businesses needed an "invisible hand" to guide them. But in the modern age of big businesses, there were too many people involved for the hand to be invisible, so it became the "visible hand."
Now, businesses have lots of managers that work together to make sure everything runs well. They figure out which products to make, how much to charge, and how much to pay the workers. Sometimes, they need to change things in the business, like when new technology comes out or when the economy changes. Managers work together to make those changes happen smoothly.
So, when you're playing pretend, remember that grown-ups do the same thing, but instead of toys, they're running big businesses with the help of lots of managers using the "visible hand."