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Vertical Trust Networks in the Nazi Bureaucracy

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Abstract

This chapter discusses the role of vertical trust—the trust that governs the relationship between superiors and subordinates in an organization—in determining both the capacity for efficient behavior within a bureau and the level of productivity of the subordinates within the bureau. Vertical trust is determined by a number of factors that are measurable, such as the frequency of promotions within the bureaucracy and the perquisites available to subordinates in the bureaucracy, which include bonuses and other benefits and awards. Examples of the factors present in the Nazi bureaucracy that are discussed in this chapter include advancement and perquisites in the SS, and rewards to those who orchestrated the Reichstag fire, which established Adolf Hitler’s dictatorship in 1933.

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Notes

  1. 1.

    Again, this is because the main impediment to subordinate investments in specific capital is the presence of high transactions costs or mistrust between superiors and subordinates (Breton and Wintrobe 1982: 134).

  2. 2.

    It seems straightforward how, at this point, the Breton and Wintrobe (1982, 1986) theses regarding bureaucratic organization are applicable to other organizations that constitute what is (and was) known as Nazi Germany.

  3. 3.

    See also www.zukunft-braucht-erinnerung.de/walter-warlimont/

  4. 4.

    Warlimont would later write an account of his experiences in Hitler’s military headquarters (Warlimont 1991).

  5. 5.

    Himmler’s position of Reichsführer-SS was equivalent to the rank of General of the Army in the case of the U.S. Army (Snyder 1989: 280).

  6. 6.

    Mixon et al. (2004a) indicate that SS ranks ranging from SS-Hauptsturmführer up through SS-Standartenführer (see Table 4.1) constitute, from a statistical perspective, the median range of ranks in that organization. As such, appointments ranging from the 30th percentile through the 70th percentile represent median-level appointments.

  7. 7.

    Goeth is one of the primary characters in the seven-time Academy Award-winning motion picture, Schindler’s List (Zaillian 1993), wherein he is portrayed by Ralph Fiennes.

  8. 8.

    Dates and events regarding the careers of officials in the SS often conflict from source to source. This discussion relies on data from Snyder (1989), Mixon et al. (2004a, 2004b), the Holocaust Encyclopedia (United States Holocaust Memorial Museum, www.ushmm.org), and elsewhere, including, but not limited to, Cesarini (2005) and www.historyplace.com

  9. 9.

    Only Eichmann, Franz, and Paul Blobel, the Commander of Einsatzkommando C who led the Babi Yar massacre, failed to ultimately rise above a median-level position. Of course, the relatively low starting point in each case is an important consideration regarding this result (Mixon et al. 2004a: 862).

  10. 10.

    Von dem Bach-Zelewski’s ranking in 1939 exceeds Heydrich’s 1941 ranking by one level.

  11. 11.

    In computing these percentages, Mixon et al. (2004b) include only Heydrich’s end-of-year 1931 rank of SS-Sturmbannführer (see Table 4.3), and not the ranks he held in the eight days preceding his promotion to that end-of-year rank. Thus, the percentages in Mixon et al. (2004b) at least slightly underestimate the speed of advancement.

  12. 12.

    See TL Editors (1990: 5).

  13. 13.

    See TL Editors (1990: 5).

  14. 14.

    See TL Editors (1990: 5–6).

  15. 15.

    According to d’Almeida (2011: 78), “[w]ithin such practices, a penchant for luxury dovetails with the idea of rareness and selection, which themselves were imbricated with notions of racial selection and superiority.” See Mixon (1993) for historical accounts of the importance of accolades, including medals, to honor the accomplishments of German Luftwaffe aces during World War II.

  16. 16.

    See TL Editors (1990: 64).

  17. 17.

    Hitler designed a badge that was awarded to officers who were injured in the July 1944 assassination attempt against Hitler that was carried out by the resistance movement (TL Editors 1990: 164–165).

  18. 18.

    See TL Editors (1989a: 121).

  19. 19.

    See TL Editors (1989a: 122–123).

  20. 20.

    See TL Editors (1989b: 70–71).

  21. 21.

    See TL Editors (1989a: 29).

  22. 22.

    Most new designs were created by students and masters at the state trade schools, and once a pattern had been selected, it was submitted to the Reich Goods Center for final approval (TL Editors 1989a: 29).

  23. 23.

    See TL Editors (1989a: 29).

  24. 24.

    The SS dagger was awarded to officers in the SS (TL Editors 1988: 40).

  25. 25.

    The SS swords were worn only at ceremonies (TL Editors 1988: 41). The SS ring, which was awarded to SS officers and ordinary members “in good standing,” displayed a death’s head and asterisk-like rune on the outside signifying heil (i.e., hail) and Himmler’s signature on the inside (TL Editors 1988: 40).

  26. 26.

    See TL Editors (1988: 40).

  27. 27.

    A seminal study in this particular stream of research by Merton (1973) asserts that one key function of awards is to curb acute self-doubt.

  28. 28.

    This finding is supported in more recent studies by Levitt and Neckermann (2014), Neckermann et al. (2014) and Kosfeld et al. (2016). Adding to their importance in the above regard, awards also often provide remuneration (for their recipients) that is not taxed in the same way as traditional work-related compensation (Frey and Neckermann 2009).

  29. 29.

    Studies by Chan and Torgler (2012) and Chan et al. (2014) focusing on awards in academia support the prior research by showing that academic awards induce greater motivation and effort in their recipients. For additional, related work see Faria et al. (2016, 2017) and Chan et al. (2018).

  30. 30.

    Hitler committed suicide inside his bunker in Berlin on April 30, 1945.

  31. 31.

    The newsreel cameras were also present (TL Editors 1992: 118), presumably in an effort to inspire similar loyalty from others fighting to defend Berlin.

  32. 32.

    Goering typically offered a token payment (or promise thereof) for stolen art in order to give the appearance of honest acquisition (Rothfeld 2002).

  33. 33.

    It took fire engines hours to quell the fire, which destroyed the debating chamber and the Reichstag’s gilded cupola, ultimately causing over $1 million in damage (Boissoneault 2017).

  34. 34.

    See Holocaust Encyclopedia (United State Holocaust Memorial Museum, www.ushmm.org).

  35. 35.

    See Holocaust Encyclopedia (United State Holocaust Memorial Museum, www.ushmm.org).

  36. 36.

    See Holocaust Encyclopedia (United State Holocaust Memorial Museum, www.ushmm.org).

  37. 37.

    As a result of the Decree, Germany became a police state in which citizens enjoyed no guaranteed basic rights and the SS wielded increasing authority through its control over the police (Holocaust Encyclopedia, United States Holocaust Memorial, www.ushmm.org).

  38. 38.

    On May 7, 1933, Oberfohren reportedly committed suicide in Kiel, Germany (Snyder 1989: 257).

  39. 39.

    As a successful fighter pilot in the German Luftwaffe during World War I, the rank of Haupsturmführer, which is equivalent to captain in the U.S. armed forces hierarchy, represented Goering’s position in that organization in 1933.

  40. 40.

    See also Katz (1933).

  41. 41.

    See also Tobias (1964).

  42. 42.

    See also Reed (1934).

  43. 43.

    The group of those supporting the Tobias-Mommsen thesis included consultants with the United States Holocaust Memorial Museum (Boissoneault 2017).

  44. 44.

    This particular presentation convention will be maintained throughout the remainder of this book.

  45. 45.

    See Holocaust Encyclopedia (United States Holocaust Memorial Museum, www.ushmm.org).

  46. 46.

    See Holocaust Encyclopedia (United States Holocaust Memorial Museum, www.ushmm.org).

  47. 47.

    See Snyder (1989).

  48. 48.

    In a subsequent report dated February 9, 1942, Jaeger proudly summed the killing to date by his unit: 136,421 Jews; 1064 Communists; 653 mentally ill; 134 others. Of these 138,272, there were 55,556 women and 34,464 children (Mixon et al. 2004b: 375).

  49. 49.

    See www.yadvashem.org/untoldstories/hyperlinks/karl_jaeger.html

  50. 50.

    Dean (2004) asserts that the Lithuanian genocide carried out by Rollkommando Hamann reached a total of 60,000 murders.

  51. 51.

    See also Yad Vashem’s The Holocaust Martyrs’ and Heroes’ Remembrance Authority at yadvashem.org

  52. 52.

    See also Mixon and Treviño (2010: 253).

  53. 53.

    “Prominents” were Jews with merits or connections who could not simply disappear (Mixon and Treviño 2010: 257).

  54. 54.

    The movie adaptation of Wouk (1978) depicts many of these elements of The Embellishment.

  55. 55.

    Both Eichmann and Burger, along with Hans Guenther, Head of the Reich Central Security Office in Prague, were present when Rahm was officially installed as Theresienstadt’s third commandant (Mixon and Treviño 2010: 254).

  56. 56.

    As Mixon and Treviño (2010: 257) point out, Moes was in Theresienstadt often enough to justify having a personal office within the SS headquarters at the camp.

  57. 57.

    Prager (2008) states that Guenther held the rank of SS-Sturmbannführer, which would have placed him one level below Eichmann and one level above Moes.

  58. 58.

    In their application of the Breton and Wintrobe (1982) approach to bureaucratic conduct to The Embellishment, Mixon and Treviño (2010) suggest that Breton and Wintrobe’s (1982) model is a precursor to a subsequent management model known as New Public Management. Seminal work on this model or approach is found in Aucoin (1990), Pollitt (1990), Hood (1991), Dunleavy and Hood (1994), and Walsh (1995).

  59. 59.

    Yad Vashem (www.yadvashem.org).

  60. 60.

    Yad Vashem (www.yadvashem.org).

  61. 61.

    Prager (2008) cites evidence indicating that Guenther began the film project as early as December 1943.

  62. 62.

    Less than one year after participating in The Embellishment, Guenther was killed by Czech partisans (Klee 2005).

  63. 63.

    Holocaust Encyclopedia (United States Holocaust Memorial Museum, www.ushmm.org).

  64. 64.

    The notion that Eichmann and his subordinates were adversely affected by bureaucratic turnover near the top of the SS that occurred with the assassination of Heydrich is discussed in Appendix 1 within the context of Mandel (2001).

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Correspondence to Franklin G. Mixon Jr. .

Appendix 1: Conspiracy—A Rejoinder

Appendix 1: Conspiracy—A Rejoinder

The Hollywood adaptation of the Wannsee Conference depicted in the movie Conspiracy (Mandel 2001), which is the subject of Appendix 1 (Chap. 3), yet again provides a useful insight into the workings of the Nazi Holocaust bureaucracy as framed in Breton and Wintrobe (1982, 1986). In this case, a small piece of dialogue near the beginning of the movie illuminates the importance, as discussed in Chap. 2, of turnover at the senior bureaucratic levels of an organization (i.e., turnover among superiors), which results in a lower net return to investments in trust between superiors and subordinates (Breton and Wintrobe 1982). In this case, the dialogue provides a window into the substantial trust that had been built between Adolf Eichmann, portrayed in Mandel (2001) by Anthony Tucci, and his superior, Reinhard Heydrich, who is portrayed by Kenneth Branagh.

The relevant verbal exchange between Heydrich and Eichmann occurs just after the Conference has begun. At this point in the movie, a member of Eichmann’s staff enters the meeting room and announces that a telephone call for Heydrich has been received at the Wansee mansion. This particular verbal exchange is as follows, with emphasis added to the relevant portion:

Staff: :

Enters the meeting room, “Apologize. A call for General Heydrich.”

Heydrich: :

Speaking to Eichmann, “See who it is, and end the calls.”

Eichmann: :

[upon returning] Whispering to Heydrich, “A ‘Major’ is reluctant to give me a message.”

Heydrich: :

Whispering to Eichmann, “Hmm … he does not appreciate you as I do.’”

Refusing to leave with Eichmann a message for Heydrich indicates that the “Major,” who is outranked by Eichmann, lacks trust in Eichmann. This lack of trust is not indicative of any action taken by Eichmann in the past that was, in the view of the “Major,” deceitful or owing to mistrust. It is simply the result of not having interacted with Eichmann in a way that builds human capital in the form of trust between the two SS officers. Thus, Eichmann is not “appreciated” by the “Major” in the same way the he (Eichmann) is by Heydrich, who has been Eichmann’s superior for some time leading up to the Conference. With Heydrich’s assassination less than six months after the Wannsee Conference, all of the investment made by Eichmann in building trust with Heydrich (and vice versa), his superior, was lost in an instant. Thus, it is not surprising that Eichmann, and his subordinates, fared relatively poorly in terms of career advancement and perquisites after Heydrich’s death.

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Mixon, F.G. (2019). Vertical Trust Networks in the Nazi Bureaucracy. In: A Terrible Efficiency. Palgrave Pivot, Cham. https://doi.org/10.1007/978-3-030-25767-5_4

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