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Abstract

Business students typically do not read James Madison’s Federalist #10, a seminal work in political theory on the causes of and remedies for factions. I make the case that they should and offer suggestions for teaching and assessment. Factions are a subset of stakeholders that have interests adverse to the organization. Madison cogently argues that the causes of factions are rooted in human nature; therefore, managers should embrace diversity and not try to eliminate factions by surrounding themselves with “yes men.” Rather, he urges managers to focus on organizational design to channel ambition in a positive way and constrain the more corrosive effects of factions. Madison emphasizes a critical lesson for negotiation by focusing on adverse interests rather than positions or characteristics. Beyond these management lessons, Federalist #10 exposes business students to the foundations of American politics and helps to inform the ongoing debate about the relationship between business and government. Finally, Federalist #10 takes business students out of their comfort zone, changing their reading workout and strengthening their ability to learn management lessons from the broader world around them.

Keywords

factions stakeholders management education business and government

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Federalist #10 in Management #101

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