The Harvard "Pareto Circle" and the Historical Development of Organization Theory

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Abstract
A small group of influential scholars, who met at Harvard University during the 1930s and early 1940s to discuss the ideas of Vilfredo Pareto, is shown to have significantly influenced the development of organization theory and the behavioral sciences. The concepts of social system and social equilibrium were posited in a physiological, homeostatic system framework that was a paramount theory for more than three decades. It is proposed that the development of organization theory can be understood best from an historical perspective that includes the influence of cultural, economic, and political conditions and the values of those who developed the theoretical formulations. In addition, it is argued that the personal and institutional academic prestige of those who propose a theory contributes to the influence and acceptance of that theory.

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