When the Nazis were elected to power in 1933, they set out to dismantle the State to achieve what they deemed a "free" society. The Nazis sought to remove any constraints on actions to further the Nazis' goals, as the people were the State, and not the other way around. This created particular difficulties for the organization of labor, as corporations and businesses were organized around unions and management relations. The Nazis took over all unions, and enforced strict management rules. How could workers express their displeasures at labor policies under such a system? Reinhard Höhn, a technocrat and respected labor specialist, joined the Nazis and proposed changes that would increase German productivity without undermining the power of management to set goals and run their organizations as they saw fit.
Höhn promoted the concept of freedom for employees. Management could set goals, and employees were free to find ways to meet these goals. Obviously, they were expected to be successful, and would own any failure that resulted from attempting to reach these goals. In this way, employees gained flexibility while the rigid hierarchical structure that granted management power and control over the employees remained solidly in place, despite a push for eliminating the rest of the "State."
Following Germany's defeat, Höhn did not disappear from public life like many other former Nazis. Instead, he founded a management school that continued to extoll the virtues he promoted during the Nazi years, without the racial component so clearly loved by them. And over the following decades, more than half a million managers and white collar workers attended the school, receiving instructions and being formed to this management idea that workers should be free to obey. This definition remains a cornerstone of Western-style management today. Thus, Nazi-inspired ideas about organization of labor and the management of corporations remain with us to this day.
Fans of history and of management will appreciate this succinct history, and will wonder if there are better opportunities to structure labor / management relationships in organizations in businesses that will increase productivity while reducing labor conflicts.
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