Professional Documents
Culture Documents
The emphasis in much of the literature on the Industrial Revolution goes the
wrong waythat is, from technological change to
the factory system; rather than from central workplace, to supervision, to
greater specialization, to better measurement of input
contributions, to technical change. Transaction costs and technology are of
course inextricably intertwined: it was increased
specialization which induced organizational innovations, which
induced the technical change, which in turn required further organizational
innovation to realize the potential of the new technology.
In terms of the theoretical framework of this study, one additional point must
be raised. In chapter 4 I argued that the measurement costs of constraining
behavior in the absence of effective ideological constraints would he so high as
to make the new organizational forms nonviable. Both the political and the
economic changes described above created impersonal factor and product markets
and broke down old ideological loyalties. Factory discipline (that is, rules and
penalties to enforce behavior) had to be supplemented by investment in
legitimating the new organizational forms. The Industrial Revolution was
characterized by sustained efforts to develop new social and ethical norms.
Peter Mathias described this effort as follows: A set of social
norms, embodied in emergent social institutions, did develop in
response to these new needs, however imperfectly they were practised. The
virtues of hard workthe gospel of work preached
by Samuel Smilessaving, thrift, sobriety became the new social
imperatives dinned into the heads of the working classes by their
social betters by every known means of communication. They
were enshrined in nonconformist and evangelical doctrine. In
Sunday schools; pulpits, the mechanics institutes after 1824
and all forms of literature in the hands of middle-class publicists were
preached the golden rules as they attempted to diffuse the bourgeois virtues
down the social scale (1969:208). I shall have more to say about this issue in
examining the implications of the Second Economic Revolution.