My background in pure sciences made it hard to understand the conceptual arguments and ambiguity of business and management theories until I read Michael Kremer’s ‘The O-ring Theory of Economic Development’ (Kremer, 1993).

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Kremer draws similarities between productivity in the economy and the failure of NASA’s Challenger mission due to one minor seal called O-ring that failed in cold conditions. The failure of this small seal killed seven astronauts. Kremer refers to Rembrandt and how he would paint the face and hands only after his assistants have painted the rest of the figure. This is further extended to show how cheaper and standardized production is done by low skilled workers (often in poorer countries) and specialized production is done by high skilled workers (in richer countries).

Teamwork is the reality of modern day work. Elaborate networks of teamwork and collaboration are needed to manage complex products and services. Free riders and those who are squeamish about teamwork need to understand the reality of the working world and there is no place for those who cannot work together.

References:

Kremer, M., 1993. The O-ring theory of economic development. The Quarterly Journal of Economics108(3), pp.551-575.