The Winds of Change: The Progressive Movement and the Bureaucratization of Thrift

Posted: 2 Dec 2008

See all articles by Heather Haveman

Heather Haveman

University of California, Berkeley

Hayagreeva Rao

Stanford Graduate School of Business

Srikanth Paruchuri

University of Florida

Date Written: November 29, 2008

Abstract

This article examines how the values espoused by social movements become entrenched in political culture and spawn many new kinds of institutions, which in turn shape organizations far from movements' original targets. We demonstrate the diffuse and indirect effects of social movements, and also show that the diffusion of social-movement values is often selective - some are retained, while others are discarded. Our empirical site is the Progressive movement and the early thrift industry in California. We draw on social-movement research and organizational theory to argue that a new ideal of thrift, bureaucratized cooperation among strangers, replaced the original idea of thrift, friendly cooperation among neighbors. This shift was possible only after the modernizing temper of Progressivism gave rise to two institutions, the news media and role-model organizations, that made bureaucracy culturally appropriate. The bureaucratization of thrift occurred even though it resulted in a centralization of power, which clashed with the Progressive ideal of equitably distributing power. Our study provides a compelling example of the fundamental revolution in American social organization in the twentieth century: the replacement of community-based groups by bureaucracies.

Keywords: Social movement, thrifts, progressive movement

Suggested Citation

Haveman, Heather and Rao, Hayagreeva and Paruchuri, Srikanth, The Winds of Change: The Progressive Movement and the Bureaucratization of Thrift (November 29, 2008). Available at SSRN: https://ssrn.com/abstract=1308888

Heather Haveman

University of California, Berkeley ( email )

Hayagreeva Rao

Stanford Graduate School of Business ( email )

655 Knight Way
Stanford, CA 94305-5015
United States
(650) 724-7708 (Phone)
(650) 725-7979 (Fax)

HOME PAGE: http://faculty-gsb.stanford.edu/rao/contact.html

Srikanth Paruchuri (Contact Author)

University of Florida ( email )

Warrington Collge of Business Administration
STUZIN 211E
Gainesville, FL Florida 32611
United States

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