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- W4292097908 abstract "Throughout history, scholars have set the division of labor in manufacturing in opposition to the division of labor in society. They have focused on the centralized decision-making that precedes the former and the market influence on the latter. However, conversations on the division of labor tend to overlook delegation of responsibility within the firm – particularly its ability to respond to market change. This chapter shows how employees’ wisdom can shape the decisions that have been delegated to them. To do so, it draws on the Aristotelian concept of phronesis (often translated as “prudence” or “practical wisdom”) and mobilizes the analysis of the market process developed by the Austrian school of economics. Instead of juxtaposing the two types of division of labor, it shows that both processes share a common point: the prudence of the individual, who divides and coordinates tasks that were initially centralized. The managerial process of division and coordination of labor is not different by its nature from the entrepreneurial process since both can be interpreted as forms of intermediation between producer and consumer. While both are examples of spontaneous order, however, the latter must only be supplemented by management practices that foster the empowerment of employees.KeywordsDivision of laborPrudencePractical wisdom Phronesis EntrepreneurshipEmpowerment" @default.
- W4292097908 created "2022-08-17" @default.
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- W4292097908 date "2022-01-01" @default.
- W4292097908 modified "2023-10-03" @default.
- W4292097908 title "Wisdom Within the Firm: An Aristotelian-Hayekian Approach to the Managerial Process of Division and Coordination of Labor" @default.
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- W4292097908 doi "https://doi.org/10.1007/978-3-319-48352-8_59-1" @default.
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