,libr>ies7       ,b>b>a ,we9/ock        
,lectures on ,! ,morals ( ,trade        
,,high] ,,education ,,& ,,bus9ess       
,,/&>ds4 ,by ,,will>d ,,eug5e           
,,hot*kiss4  ,,creat+ ,,capital3        
,,money-,,mak+ ,,z ,,an ,,aim ,,9       
,,bus9ess4 ,by ,,fr$]ick ,l4 ,,lipman4  
,,is ,,civilization ,a ,,disease8 ,by   
,,/anton ,,coit4  ,,social ,,ju/ice     
,,)\t ,,socialism4 ,by ,,john ,,bates   
,,cl>k4  ,,! ,,conflict ,,betwe5        
,,private ,,monopoly ,,& ,,good         
,,citiz5%ip4 ,by ,,john ,,graham        
,,brooks4  ,,comm]cialism ,,&           
,,j\rnalism4 ,by ,,hamilton ,,holt4  ,,!
 ,,bus9ess ,,c>e] ,,9 ,,its ,,public    
,,relations4 ,by ,,alb]t ,,%aw4         
,,high] ,,education ,,& ,,bus9ess       
,,/&>ds    ,by  ,,will>d ,,eug5e        
,,hot*kiss  ,,director ,,( ,,bus9ess    
,,education ,,at ,,! ,,univ]sity ,,(    
,,m9nesota    ,,bo/on ,,& ,,new ,,york  
,,h\ghton ,,miffl9 ,,company ,!         
,riv]side ,press ,cambridge #aiah       
,,copyright1 #aiah1 ,,by ,,! ,,reg5ts   

,,( ,,! ,,univ]sity ,,( ,,cali=nia      
,,all ,,rights ,,res]v$  ,publi%$ ,m>*  
#aiah     ,,b>b>a ,,we9/ock ,,lectures  
,,on ,,! ,,morals ,,( ,,trade   ,?is    
s]ies w conta9 essays by repres5tative  
s*ol>s & m5 ( affairs deal+ ) ! v>i\s   
phases ( ! moral law 9 its be>+ on      
bus9ess life "u ! new economic ord]1    
fir/ deliv]$ at ! ,univ]sity ( ,cali=nia
 on ! ,we9/ock f\ndation4     ,,high]   
,,education ,,& ,,bus9ess ,,/&>ds   ,la/
 summ]1 :5 we rea*$ ,cali=nia = a ye>'s 
soj\rn1 we _h ! good =tune to secure a  
h\se ) a spl5did g>d54 ,a few weeks ago1
 aft] ! e>ly w>m days ( a ,cali=nia     
,febru>y _h op5$ up ! fir/ blossoms ( ! 
season1 our little five-ye>-old discov]$
 t ! g>d5 furni%$ a f9e outlet = h]     
ent]prise1 & %e soon produc$ two        
gorge\s--,i w n say beautiful--b\quets4 
,b>r+ a c]ta9 d\bt ab\t h] "m's         
approval1 %e 0 well satisfi$ ) h]       
a*ievem5t1 %e felt a s5se ( complet5ess 
9 :at %e _h done--& well %e might1 = %e 
_h n left a visible bud4  ,!re is a     

/rong t5d5cy to g at bus9ess ! way ,hel5
 w5t at ! g>d54 ,%e knew :at to d )     
b\quets2 raw mat]ial = mak+ !m 0 )9 h]  
rea*2 :at m natural ?an to turn x1 9 !  
mo/ obvi\s & simple way1 into ! product 
= :i* x 0 design$4 ,f h] /&po9t su* a   
proc$ure 0 entirely correct--%e 0 mak+  
b\quets = h]self & h] fri5ds2 e "o 9 h] 
circle w\ld %>e ! b5efit ( h] indu/ry4  
,:5ev] 9 ! pa/ bus9ess ent]prise has    
proce$$ f a simil> viewpo9t1 we h /ood  
aside & let x proce$2 x 0 n our g>d52 we
 7 q will+ to take ! rle ( dis9t]e/$    
spectators4 ,rec5tly we h discov]$ t x  
is our g>d52 we h le>n$ t we are n      
dis9t]e/$2 we n[ see t bus9ess plays a  
l>ge "p 9 ! life ( e "o ( u4 ,t be+ !   
case1 we assume ! "r to "q its          
processes1 its und]ly+ policies1 & its  
results4 ,we are gradually com+ to ?9k (
 bus9ess 9 t]ms ( an integrat$ & unifi$ 
national life4 ,we desire ! national    
life to be bo? :olesome & secure4  ,:at 
! public really wants f bus9ess1 !n1 is 
a contribution to national welf>e1 & x  

has become conv9c$ t1 by tak+ ?\ght1 x c
 make ! contribution m c]ta9 & m uni=m  
?an x has be5 9 ! pa/4 ,_m bus9ess m5   
%>e ?is view2 ) v>y+ zeal !y are try+ to
 "w out /&>ds ( organization t w insure 
! k9d ( reg>d = g5]al welf>e :i* !      
public has come to dem&4  ,?is is ! new 
idea 9 bus9ess2 x has already tak5 deep 
root2 b x ne$s to be fur!r develop$4 ,we
 h ! difficult task ( r$uc+ an idea to a
 practical work+ plan4 ,h[ %all we g    
ab\t x8 ,=tunately ! idea itself conta9s
 a h9t = fur!r proc$ure4 ,a new attitude
 9 bus9ess mu/ be c\pl$ ) a new attitude
 9 public policy4  ,:5 my ent]pris+ *ild
 made an onslaught on ! g>d5 x w\ld h   
be5 easy en\gh to puni% h]2 b x is      
d\btful if m]e puni%m5t gets v f> 9 a   
case ( t sort4 ,unless we c tea* ! *ild 
to enjoy ! g>d5 )\t de/roy+ x1 ! re/ra9+
 influ5ce ( puni%m5t w be no /rong] ?an 
! memory ( its pa9 or ! fe> ( its       
repetition4 ,?is memory ( ! pa/ & fe> ( 
! future usually wage a mo/ unequal     
conte/ ) ! vivid & allur+ temptation ( !

 pres5t4  ,b %\ld n ! *ild be re/ra9$8  
,z f> z necess>y to protect ! g>d51 &   
p]haps also to make h] consci\s ( an    
au?ority 9 ! _w outside ( h] own w1     
yes--b t is n ! ma9 task4 ,! ma9 task is
 to educate h]1 to develop an und]/&+ ( 
! g>d51 to get h] 9 ! frame ( m9d 9 :i* 
%e w d]ive h] greate/ enjoym5t :5 %e    
cultivates x & sees x gr[1 & :5 %e      
re/ricts h] pick+ to a reasonable %>e ( 
:at ! g>d5 produces4  ,9 ! actual case  
be=e u1 ! *ild 0 aft] quick & easy      
results1 ! only k9d %e c\ld compreh5d2  
%e 0 unable to look ^u ! g>d5 z a liv+  
?+ ^: life & heal? mu/ be pres]v$ to-day
 9 ord] t x may yield returns to-morr[ &
 next week4 ,analyz$ ) adult und]/&+1 h]
 ess5tial fault 0 a failure to get      
beyond imm$iate results & to view ! g>d5
 f a long-"t angle4 ,we ought n to      
expect h] to d ?is n[1 b we d expect h] 
to d x :5 %e is gr[n up4 ,we expect 9 "t
 s to educate h] t %e w be able to ?9k (
 ! g>d5 9 t]ms ( p]man5ce & gr[? & to   
make an effective use ( x f t /&po9t2 & 

?is same education 9 long-"t            
effectiv5ess is :at we want 9 bus9ess4  
,bus9ess /&>ds mu/ be discuss$ f !      
/&po9t ( effici5cy1 b effici5cy ne$s to 
be int]pret$4 ,we may z well admit at ! 
/>t t ! effici5cy ideal is n entirely 9 
good repute at ?is mom5t4#a ,if ,i may  
import an expression f ,engl&1 we h be5 
some:at f$ up ) effici5cy dur+ ! rec5t  
pa/ & ! ration has be5 r too mu* = our  
dige/ion4        #a ,at ! "t ?is 0      
writt51 9 ! spr+ ( #aiaf1 x w       be  
recall$1 ! ,g]man w> ma*9e = ne>ly two  
ye>s _h be5       demon/rat+ its        
effici5cy2 ! ,allies _h n yet mat*$ x1  
& we did n l ! "w t effici5cy 0 do+4    
,away back 9 ! eighties1 be=e ! dom9ance
 ( bus9ess 9 ,am]ican society _h be5    
que/ion$1 effici5cy1 z ! t]m 0 !n       
und]/ood1 _h a place among ! elect2 x 0 
! intimate associate ( bus9ess success4 
,!n came ! muck-rak]1 & ) him came also 
anti-tru/ cases & insurance             
inve/igations4 ,we turn$ our att5tion to
 labor outbreaks1 to graft prosecutions1

 & to l& /eals4 ,we talk$ ab\t          
malefactors ( great weal?4 ,we ev5      
became int]e/$ 9 ,s*$ule ,k4 ,& s1 dur+ 
! fir/ decade ( ! new c5tury a :ole tra9
 ( revelations1 incid5ts1 & phrases     
temp]$ our reg>d = bus9ess & br\ght _m  
bus9ess practices "u ! ban ( law &      
ho/ile s5tim5t4 ,effici5cy 0 9 bad      
company & suff]$ 9 reputation4  ,b      
effici5cy 0 able to prove an alibi2 we 7
 told t ! ?+ :i* pos$ z effici5cy 0 n   
effici5cy1 b special privilege1 & we 7  
aga9 p]suad$ ( ! great s]vice a reg5]ate
 & socializ$ effici5cy c\ld r5d]4 ,j at 
?is po9t came ! outbreak 9 ,europe2     
effici5cy 0 aga9 caught 9 bad company1 &
 we began to he> su* phrases z ! moral  
breakd[n ( effici5cy1 effici5cy1 a false
 ideal1 & o!rs ( simil> import4 ,9 an   
article be>+ ! title1 ,moral ,breakd[n (
 ,effici5cy1 publi%$ 9 ! ,c5tury =      
,june1 #aiae1 x 0 ma9ta9$ t pursuit (   
effici5cy _h l$ & 0 /ill lead+          
civilization on a d[nw>d pa?4  ,9       
addition to ! reputation ( keep+ bad    

company1 effici5cy has to be> ! odium ( 
_m fooli% & ineffici5t de$s p]=m$ by its
 self-appo9t$ prophets4 ,! que/ =       
effici5cy has call$ =? 9 bus9ess a new  
function>y kn[n z ! effici5cy exp]t4 ,_m
 ( ^! m5 h done a va/ am\nt ( valuable  
"w1 b _m o!rs h n4 ,:ile ! real exp]t   
has be5 rais+ ! level ( bus9ess         
organization1 ! o!rs h be5 pil+ up a    
l>ge wa/age ( poor "w & lo/ confid5ce4  
,b ^! are side issues4 ,! ma9 fact /&s  
out above !m4 ,we h be5 /eadily add+ to 
! burd5s on indu/rial & comm]cial       
equipm5t2 ev5 m h we increas$ ! /resses 
& ! /ra9s on human life4 ,a deva/at+ w> 
is n[ sudd5ly tak+ up ! slack1 & ! sl[ &
 pa9ful task ( mak+ ! _w effici5t mu/ be
 ha/5$ 9 ord] t society may be> ! load4 
,9 ^! circum/ances we ne$ n apologize = 
mak+ effici5cy ! ma9 support ( bus9ess  
/&>ds4 ,nor ne$ we assume1 z does !     
au?or j cit$1 t ! effici5cy ideal 9 any 
way conflicts ) ! ideal ( moral         
responsibility & s]vice4  ,( c\rse1 if  
we reflect1 ! ab/ract & imp]sonal ?+ :i*

 eng9e]s def9e z ! ratio betwe5 en]gy   
exp5d$ & result obta9$ has no moral     
quality 9 itself4 ,:atev] ( morality or 
lack ( morality ! ^w effici5cy calls =? 
is giv5 to x by ! mann] 9 :i* ! t]ms ( !
 ratio are def9$4 ,x is = society to    
make ! def9itions4 ,society may det]m9e 
! =ms & ! limitations "u :i* x w h      
bus9ess en]gy exp5d$1 & x may decide :at
 are ! social ends t[>d :i* x w h       
bus9ess ef=t contribute4 ,guid$ by wise 
social policy1 effici5cy & s]vice g h& 9
 h&4  ,s9ce bus9ess is subject to       
control by society1 x foll[s t !        
effici5cy factors 9 a p>ticul> bus9ess1 
9 a :ole indu/ry1 or 9 bus9ess g5]ally1 
mu/ adju/ !mselves to ! decisions t     
society has made1 & !y mu/ also take    
acc\nt ( decisions t x may make 9 !     
future4 ,& ^! decisions are n all       
record$ 9 ! law or ev5 9 ! vague ?+ we  
call public op9ion4 ,laws & op9ions (   
p>ticul> gr\ps1 gr\p morality1          
individual morality1 ev5 in]tia1 & a    
long li/ ( m subtle & (t5 caprici\s     

reactions are *annels ?r\gh :i* social  
purpose f9ds expression4  ,x is wor? our
 :ile to consid] h[ ^! reactions may    
affect practical adm9i/ration4 ,no      
reflection is ne$$ to see t 9 proportion
 z bus9ess m5 fail to take acc\nt ( =ces
 outside ! bus9ess1 9 t proportion !y   
are likely to miscalculate ! results (  
bus9ess policies4 ,/rik+ examples ( su* 
miscalculation are f\nd 9 ! exp]i5ce (  
,mr4 ,george ,m4 ,pullman back 9 !      
n9eties1 & ( ,mr4 ,patt]son1 ( !        
,national ,ca% ,regi/] ,company1 a      
decade lat]4 ,ea* ( ^! m51 ) app>5t good
 fai?1 und]took to surr\nd 8 labor]s )  
conditions ( physical1 m5tal1 & moral   
uplift1 & ea* und]took to d x z an act (
 pat]nal b\nty4 ,ea* ( !m1 z f> z we c  
judge1 expect$ appreciation1 gratitude1 
& increas$ effici5cy4 ,b !y fail$ to    
take acc\nt ( ! gr\p consci\sness ( _!  
labor]s2 !y did n "k :at ! labor]s 7    
?9k+2 & because ! labor]s 7 ?9k+ some?+ 
diff]5t f :at ! employ]s ?\ght1 policies
 int5d$ to ar\se gratitude ar\s$ in/ead 

res5tm5t & a /rike4  ,b !re are _m ?+s  
besides too mu* pat]nalism t may result 
9 a /rike4 ,ano!r conc]n ( int]national 
dim5sions & "o ^: (fic]s1 ,i c v\*1 are 
m5 ( high "* & public _s1 also f\nd     
itself confront$ ) a /rike 9 #aiaj4 ,?is
 0 a highly organiz$ bus9ess4 ,= ye>s   
its sales dep>tm5t _h tri$ to seek out !
 highe/ grade ( tal5t1 & ! result 0 a   
sell+ & di/ribut+ organization t 0 !    
model & ! envy ( competitors4 ,b        
que/ions ( employm5t seem to h gone by  
default1 ! g5]al policy be+ conf9$ to a 
s9c]e b vague good-w t[>d employees &   
acceptance ( ?+s z !y 74  ,! issues ( ! 
/rike 7 issues ) :i* we are all famili>4
 ,on ! work]s' side1 grievances & no    
workable ma*9]y = r$ress2 result3       
organization1 conc]t$ gr\p action1 =ce4 
,on ! o!r side1 !re 0 a p]sonal read9ess
 to he> grievances1 c\pl$ ) insi/5ce on 
! anci5t "r ( ! employ] to conduct 8 own
 bus9ess 9 8 own way1 )\t int]f]5ce f   
employees or ! public4  ,aft] weeks (   
deadlock ! /ra9 ( a di/ress+ situation1 

losses f ! int]ruption ( bus9ess1 reg>d 
= public op9ion & ! op9ion ( fri5ds1    
comb9$ ) _! own desire to d ! "r ?+1    
induc$ ! employ]s1 probably aga9/ _! be/
 judgm5t1 to rec$e f _! position4 ,an   
agreem5t 0 made provid+ = increas$      
wages1 /&>dization ( piece-"w1 a        
pref]5tial %op1 & appo9tm5t by ! firm ( 
a p]son to he> grievances & to cop]ate )
 a repres5tative ( ! union 9 secur+     
r$ress4  ,! union 9 ?is case 0 =tunate 9
 be+ repres5t$ by a high-m9d$ man :o 0 a
 real /atesman4 ,! firm select$ a tra9$ 
economi/ z labor exp]t1 & he soon _h an 
employm5t dep>tm5t 9 op]ation4 ,toge!r  
^! m5 & _! colleagues h kept peace 9 !  
conc]n & h develop$ & exp&$ ! ma*9]y =  
settl+ disputes into a model (          
indu/rial-relations organization4  ,"s  
f\r ye>s aft] ! /rike ! bus9ess head ( !
 firm te/ifi$ 9 a public he>+ t he %\ld 
sc>cely "k h[ to conduct 8 bus9ess )\t !
 organization :i* n[ obta9s = deal+     
collectively ) labor4 ,he also 9 ! same 
he>+ express$ ! view t a l>ge employ] is

 a tru/ee ( ! public1 responsible = !   
measure ( public welf>e 9 :i* 8 bus9ess 
results2 & ?is man1 rememb]1 is n a     
re=m] or ev5 a radical1 b j a successful
 bus9ess man4  ,9 ?is bit ( labor hi/ory
 !re 71 no d\bt1 _m =tunate b           
uncontrollable factors :i*1 o!rwise     
comb9$1 w\ld h br\ght a less happy      
result4 ,b two ?+s /& out3 fir/1 !      
labor]s li/5$ to wise c\nsel--!y 7 well 
l$2 & second1 ! employ]s1 :5 !y cons5t$ 
to make an agreem5t1 gave ! plan adopt$ 
_! g5u9e support4 ,comb9+ good citiz5%ip
 ) bus9ess s5se !y 7 able to und]/& !   
new social influ5ces t make ! =mulas (  
#ahhj a poor gauge ( effici5cy factors 9
 #aiaj4 ,!y are n[ enjoy+ ! b5efits ( _!
 will+ness to le>n4  ,! effect ( social 
=ces is se5 "u diff]5t circum/ances & f 
an entirely diff]5t angle 9 ! pres5t    
halt+ policy ( ,am]ican railroads4#b    
,"h1 9 addition to o!r social elem5ts 9 
! "q1 is ! fact ( def9ite gov]nm5t      
control4 ,?is circum/ance has accu/om$  
railway manag]s to look at bo? ! int]nal

 & ! public factors 9 _! success4 ,a    
numb] ( ye>s ago1 be=e ,mr4 ,ju/ice     
,br&eis became a memb] ( ! ,supreme     
,c\rt1 he po9t$ out1 z _m o!rs h s9ce   
done1 t ! railroads 7 look+ too mu* to !
 gov]nm5t factor1 & too little to !     
economy & effectiv5ess ( _! own int]nal 
adm9i/ration4 ,ev5 ?\gh we conc$e ?is   
po9t1 x is /ill cle> t ! highe/         
effici5cy ( our railroads mu/ wait ^u a 
cl>ification ( policy ) respect to !    
great social fact affect+ railway       
op]ation--! fact ( gov]nm5t control4 ,we
 may n approve ! precise mann] 9 :i* !  
railroads respond to ?is fact1 b        
obvi\sly !y _c be effici5t & ignore x4  
#b ,ref]r+ to ! situation e>ly 9 #aiaf  
:5 ?is s5t5ce       0 writt54           
,examples1 rang+ all ! way f accept$ &  
en=ceable legal re/rictions to !        
int]play ( ! mo/ subtle gr\p s5tim5ts1  
c\ld be multipli$ at w to br+ out !     
pres5ce ( ! social factor 9 effici5cy   
/&>ds4 ,7 x n t int]nal bus9ess         
policies1 on ! "o h&1 & public policy   

t[>d bus9ess1 on ! o!r1 are s frequ5tly 
vitiat$ by failure to reckon ) !        
probable reactions :i* a p>ticul>       
measure w call =?1 ,i %\ld n ret>d !    
discussion to emphasize a po9t s obvi\s4
 ,b ?\gh ! pres5ce ( social factors is  
obvi\s1 h[ to measure !m is n obvi\s4   
,g5]al pr9ciples t be> on a specific    
case are h>d to locate & difficult to   
apply4 ,ev5 ! broad l9es ( social &     
bus9ess policy are n always cle>1 & !   
probable tr5d ( future policy is /ill   
less cle>4  ,j :at are ! pr9ciples t are
 be+ work$ put 9 ord] to det]m9e ! =ms &
 ! limitations "u :i* bus9ess en]gy %all
 be exp5d$1 & h[ d !y diff] f ^? foll[$ 
a g5]ation ago8 ,take ! o!r side ( !    
effici5cy ratio3 t[>d :at results are we
 try+ to h bus9ess en]gy direct$8 ,aga91
 :at are ! in/rum5ts ) :i* society is   
en=c+ its purpose8 ,h[ effective are !y1
 h[ effective are !y likely to become8  
,f9ally1 :at be>+ w ?is social          
effectiv5ess or lack ( effectiv5ess h on
 /&>ds ( bus9ess effici5cy = ! g5]ation 

ab\t to beg9 its "w8  ,ev5 ?\gh we _c   
answ] ^! que/ions to-day1 we h1 to-day1 
! task ( educat+ ! g5]ation t mu/ answ] 
!m4 ,m ?an ?is1 ! education we provide =
 ! g5]ation ab\t to beg9 its "w w       
det]m9e1 9 no small measure1 ! k9d (    
answ]s ! future w give4 ,x is1 !re=e1 ( 
great importance t 9 our ideals & our   
policies = educat+ future bus9ess m5 we 
%\ld try to anticipate ! social         
environm5t 9 :i* ^! m5 w d _! "w4  ,we  
are 9 ! habit ( speak+ ( ! pres5t z a "t
 ( transition--! end ( ! old & ! beg9n+ 
( ! new4 ,9 a v real s5se e p]iod is a  
p]iod ( transition4 ,society is always 9
 motion1 b t motion at times is         
accel]at$ & at o!r times ret>d$4 ,cle>ly
 we are liv+ n[ 9 a p]iod (             
accel]ation--a p]iod :i* mu/ be         
int]pret$ n s mu* 9 t]ms ( :]e we are1 z
 ( :5ce we came & :i!r we are go+4 ,?is 
means t we _c hope to prep>e an         
educational *>t = ! future )\t und]/&+ !
 pa/4  ,9 our /udy ( bus9ess we are     
always emphasiz+ ! long-"t po9t ( view1 

& we fall back ^u ?is conv5i5t phrase to
 h>monize _m discrepancies betwe5 our   
s-call$ sci5tific pr9ciples & pres5t    
facts4 ,on ! :ole1 we are well ju/ifi$ 9
 assum+ ^! long-"t h>monies1 b x w n d  
to ov]look ! fact t _m important &      
legitimate ent]prises h to ju/ify       
!mselves f a %ort-"t viewpo9t4 ,( m     
importance /ill is ! fact t 9 ?is c\ntry
 ent]prises ( ! latt] sort h pr$om9at$ 9
 ! pa/4 ,?is circum/ance has a v m>k$   
be>+ on ! nature ( our task1 :5 we try  
to approa* bus9ess f ! /&po9t (         
education4  ,!re are /rong hi/orical &  
temp]am5tal reasons :y n9ete5?-c5tury   
,am]icans 7 incl9$ to take a %ort-"t    
view ( bus9ess situations4 ,our fa!rs 7 
pione]s1 & ! pione] has nei!r ! "t1 !   
capital1 ! in=mation1 ! social insight1 
nor ! ne$ to build policies = a di/ant  
future4 ,! pione] mu/ support himself f 
! l&2 he mu/ get quick results1 & he mu/
 get !m ) ! mat]ial at h&4  ,e "o ( our 
great indu/ries--/eel1 oil1 textiles1   
pack+1 mill+1 & ! re/--has its e>ly /ory

 color$ ) pione] romance4 ,! same       
romantic atmosph]e gave a sett+ ( lights
 & %ad[s to m]*&is+ & f9ance & mo/ ( all
 to transportation4 ,:e!r we view ^!    
n9ete5?-c5tury activities f ! /&po9t (  
private bus9ess or ( public policy1 !y  
be> ! same te/imony to ! pione] attitude
 ( m9d4  ,consid]+ our bus9ess life 9   
its national aspects1 our two greate/   
ent]prises 9 ! n9ete5? c5tury 7 !       
settlem5t ( ! cont95t & ! build+-up ( a 
national indu/ry4 ,9 bo? ^! ent]prises  
we gave ! pione] _s wide range4 ,)      
respect to ! latt]1 indu/rial policy    
be=e #aijj 0 summ$ up 9 ?ree items3     
protective t>iff1 free immigration1 &   
ess5tial immunity f legal re/ra9ts4 ,?is
 is n ! place to ju/ify or condemn a    
policy ( laissez-faire1 or to /rike a   
balance ( tru? & error 9 ! intricate    
argum5ts = protection & free trade2 nor 
ne$ we "h trace ! indu/rial or social   
results ( immigration4 ,we ne$ only po9t
 out t ! policy 9 g5]al outl9e          
illu/rates ! attitude ( ! pione]4 ,! ?+ 

desir$ 0 obvi\s2 obvi\s in/rum5ts 7 at  
h&--imm$iate means us$ = imm$iate ends4 
,f 8 viewpo9t1 ! "q ( be/ means or (    
ultimate ends did n ne$ to be consid]$4 
,9 build+ our railways & settl+ our l&s 
! pione] _s op]at$ /ill m directly1 & 9 
?is connection x has produc$ at ! same  
"t its be/ & its wor/ results4 ,!       
problem ( transportation & settlem5t 0 n
 h>d to analyze2 its solution seem$ to  
pres5t no occasion = difficult sci5tific
 /udy or = a long look into ! future4 ,!
 nation _h l&s1 x want$ settl]s1 x want$
 railroads4 ,if half ! l& 9 a giv5 /rip 
( t]ritory 7 (f]$ at a price :i* w\ld   
attract settl]s1 ! settl]s w\ld insure  
bus9ess = a railroad4 ,! o!r half ( !   
l&1 turn$ ov] to a railroad company1    
w\ld give a basis = rais+ capital to    
build ! l9e4 ,) a railroad 9 op]ation1  
l& w\ld increase 9 value1 ! railroad    
c\ld sell to settl]s at an enhanc$ price
 & ) "o /roke recov] ! co/ ( build+ &   
add new settl]s to furni% m bus9ess4  ,9
 its !ory & its broad outl9e ! l&-grant 

policy is n h>d to def5d4 ,!            
difficulties came ) execution4 ,we "k t 
9 actual op]ation ! policy meant        
reckless speculation & di%one/ f9ance4  
,we "k t no di/9ction 9 favor ( ! public
 0 made betwe5 ord9>y f>m l&s1 =e/ l&s1 
m9]al l&s1 & p[] sites4 ,we "k t !      
b5efici>ies ( l& grants 7 p]mitt$ to    
ex*ange ord9>y l&s = l&s ( exceptional  
value )\t any adequate quid pro quo2 &  
we "k t !re 7 no adequate safegu>ds     
aga9/ !ft4  ,:olesale ali5ation ( public
 prop]ty 0 int5d$ to secure railroads & 
settl]s1 b ! gov]nm5t did n see to x t !
 result 0 actually a*iev$4 ,speculation 
imp$$ ! railways 9 do+ _! "p ( ! task1  
:ile individuals enri*$ !mselves f !    
proce$s ( grants or )held ! grants f    
settlem5t to become ! basis ( future    
speculative ent]prises4 ,all ?is seems  
to %[ t 9 execution at lea/ our policy f
 a national /&po9t 0 %ort-sight$4       
,c>eful analysis & a m pa9/ak+ ef=t to  
look ahead might h br\ght m happy       
results4  ,& h[ ab\t ! railroads f !    

/&po9t ( private ent]prise8 ,a railway  
f9anci] once describ$ a we/]n railway z 
a "r ( way & a /reak ( ru/4 ,! phrase 0 
applicable to _m railways4 ,det]ioration
 & lack ( repairs 71 ( c\rse1           
responsible = "p ( ! condition x        
sugge/s1 b mu* ( ! fault w5t back to    
orig9al con/ruction4 ,x 0 ! wond] & !   
reproa* ( ,european eng9e]s t _! s-call$
 reputable ,am]ican colleagues w\ld risk
 pr(essional /&+ on su* tempor>y &      
flimsy /ructures z ! orig9al ,am]ican   
l9es4 ,poor road b$2 poor con/ruction2  
tempor>y wood5 tre/les across dang]\s   
spans--ev]y?+ ! opposite ( :at s\nd     
eng9e]+ sci5ce seem$ to dem&4 ,:y did n 
! own]s ( ! roads ex]cise bus9ess       
=esight to provide = reasonably solid   
con/ruction8  ,:at seems l an obvi\s &  
easy answ] to all ^! que/ions is t bo? !
 ,gov]nm5t & ! road 7 controll$ 9 _m    
cases1 z ! p ( ,cali=nia well "k1 by !  
same m51 & ^! m5 7 privately int]e/$4 ,z
 public s]vants or z (fic]s (           
corporations !y 7 suppos$ to be promot+ 

settlem5t & transportation2 z           
individuals !y 7 promot+ _! own =tunes4 
,?is result 0 secur$ by ! appropriation 
( public l&s & ! conv]sion ( inve/m5ts  
:i* ! public l&s support$4 ,t ?is sort (
 ?+ occurr$ on a l>ge scale & t x       
involv$ ! violation ( bo? public &      
private tru/s is fairly cle>4  ,public  
s5tim5t has judg$ & condemn$ ! m5 :o 9  
_! own int]e/s ?us p]v]t$ national      
policy2 & we approve ! v]dict4 ,b x is n
 s easy to condemn ! policy itself or to
 indict ! g5]ation t adopt$ x4 ,look+ at
 ! matt] f ! /&po9t ( ! nation1 x 0     
precisely ! ineffici5cy & ! corruption 9
 gov]nm5t :i* augm5t$ ! !oretical di/ru/
 ( gov]nm5t & made x un?9kable to ! p ( 
! sev5ties1 t ! ,gov]nm5t %\ld build &  
op]ate railways directly4 ,! l&-grant   
policy entail$ corruption & wa/e1 (     
c\rse2 b :at matt]$ a few million acres 
( l&6 ,no "o _h he>d ( a cons]vation    
problem at ! close ( ! ,civil ,w>4      
,res\rces 7 limitless2 )\t ent]prise1   
)\t labor & capital1 )\t transportation 

!y _h no value1 !y 7 free goods4 ,!     
great public task ( ! n9ete5? c5tury 0  
to settle ! cont95t & make ^! res\rces  
available = mank9d4 ,?is task x p]=m$ ) 
n9ete5?-c5tury me?ods4 ,f our /&po9t !y 
may h be5 wa/eful me?ods1 b !y did get  
results4 ,9 its hi/orical sett+1 !      
viewpo9t f :i* ! task ( settlem5t 0     
approa*$ 0 n s f> wrong4  ,:5 we exam9e 
! c\nts aga9/ ! railroads z private     
ent]prises1 we f9d t ! poor con/ruction1
 :i* f our po9t ( vantage looks l       
dang]\s1 wa/eful1 h&-to-m\? policy1 is  
only 9 "p expla9$ by ! fact ( reckless &
 di%one/ f9ance4 ,i am advis$ by an     
em95t & discrim9at+ obs]v] t ! di/+ui%$ 
,italian eng9e] to :om ,arg5t9a entru/$ 
! build+ ( its railroad to ,patagonia1  
produc$ a /ructure :i* 9 eng9e]+        
excell5ce is ! equal ( any 9 ! ,unit$   
,/ates to-day4 ,b ! funds are exhau/$ & 
! ,patagonia railroad is halt$ "o hundr$
 & fifty miles %ort ( its goal2 !re are 
no e>n+s to ma9ta9 ! inve/m5t4  ,!      
reaction ( high int]e/ rates on !       

practical s5se ( ,am]ican capitali/s &  
eng9e]s has made op]ation at ! e>lie/   
possible mom5t & ) ! smalle/ possible   
inve/m5t ( capital ! v ess5ce ( ,am]ican
 railway build+ 9 new t]ritory4 ,actual 
e>n+s are expect$ to furni% capital1 or 
a basis = cr$it1 ) :i* to make good e>ly
 eng9e]+ defects4 ,all ?is1 ( c\rse1 is 
b ano!r way ( say+ t ! crit]ion (       
eng9e]+ effici5cy is n p]fection1 b good
 en\gh4 ,?is di/9ction has plac$ a l>ge 
measure ( g5u9e effici5cy to ! cr$it (  
,am]ican eng9e]s1 & x expla9s :y        
,am]icans h done _m ?+s t o!rs 7 unwill+
 to und]take4 ,x is a great ?+ to build 
a f9e railroad 9 ,patagonia1 b ,i am    
sure we all rejoice t ! fir/ ,pacific   
railroad did n h its t]m9us 9 ! ,nevada 
sagebru%4 ,! /&>d ( te*nical p]fection  
set by ! ,italian eng9e] did n fit !    
facts4 ,x is n ! failure to atta9 8 /&>d
 b ! failure to measure up to a         
well-consid]$ /&>d ( good en\gh t /&s z 
an indictm5t aga9/ ,am]ican railway     
ent]prise4  ,view$ 9 hi/orical          

p]spective ! bus9ess environm5t ( !     
pione] appe>s to h be5 dom9at$ by two   
out/&+ facts3 "o1 seem+ly inexhau/ible  
res\rces2 ! o!r1 a set ( political &    
economic doctr9es :i* told him t ^!     
res\rces mu/ be develop$ by individual  
initiative & n by ! ,/ate4 ,! fa/] !    
res\rces 7 develop$ ! m rapidly ! nation
 became economically indep5d5t &        
economically great1 & s9ce !y c\ld n be 
develop$ by ! ,/ate x is n /range t     
private initiative 0 /imulat$ by (f]+ m5
 great & imm$iate rew>ds4 ,^! rew>ds h  
enc\rag$ individuals & associations (   
individuals to aspire to a quick        
a*ievem5t ( great economic p[]1 & _!    
aspirations h be5 realiz$4 ,su*         
a*ievem5ts h be5 a dom9at+ feature ( our
 bus9ess life1 & we h reg>d$ !m z an    
index ( national greatness4  ,abundance 
( res\rces1 if x did n make ?is ! be/   
way1 at lea/ made x an obvi\s way1 = !  
n9ete5? c5tury to solve its bus9ess     
problems4 ,f our vantage po9t we c see t
 s]i\s mi/akes 7 made4 ,:5 we set !     

=esight ( our fa!rs aga9/ our own in=m$ 
& *a/5$ h9dsight _! me?ods appe> clumsy 
& amateuri%4 ,b 9 ! ma9 !y did solve _! 
problems3 !y gave u a settl$ cont95t2 !y
 gave u transportation & div]sifi$      
indu/ry4 ,we n[ h our g>d5 & ! tools )  
:i* to "w x4 ,if ! pione] all[$ ! *ildr5
 to pick fl[]s & 9 "s cases to run away 
) ! plants & ! soil1 he did n fail to   
develop ! e/ate4  ,our inh]itance f !   
pione] is n only mat]ial b psy*ological4
 ,! pione] attitude ( m9d has made a    
real contribution to our bus9ess /&>ds4 
,! v magnitude ( our ent]prises1 ! fact 
t we h _h to develop our me?ods z we    
w5t1 our success 9 approa*+ problems t  
way1 h giv5 u a confid5ce 9 ourselves & 
a read9ess to und]take big ?+s )\t c\nt+
 ! co/4 ,?is read9ess is a l>ge1 p]haps 
a dom9ant1 factor 9 our contribution to 
_w progress4 ,x is n an accid5t t !     
greate/ problems ( m\nta9 railway build+
 h be5 met & solv$ by ,am]ican eng9e]s1 
or t !y h c>ri$ a great railroad "u two 
riv]s to ! he>t ( our greate/ city4 ,^! 

9 a private way1 & ! ,panama ,canal 9 a 
public way1 are typical ( ,am]ican      
eng9e]+ ent]prise4  ,z ) eng9e]+1 s )   
g5]al bus9ess4 ,our pione] manag]s did n
 lack imag9ation2 !y 7 n afraid to      
und]take2 !y 7 n con/ra9$ by worry le/  
!y make mi/akes4 ,!y made _m mi/akes4   
,"s 7 correct$1 o!rs ignor$1 b _m m 7   
conceal$ by an abundant success4 ,!     
pione] c\ld af=d to d ! next ?+ & let ! 
di/ant ?+ take c>e ( itself1 & 9 l>ge   
measure he escap$ ! p5alties :i*        
normally foll[ a failure to look ahead4 
,sub/antial =ces h t5d$ to keep ! pione]
 _s alive4 ,if "s res\rces h be5        
deplet$1 o!r res\rces h be5 f\nd to take
 _! place4 ,sci5tific discov]y1         
inv5tion1 & ! developm5t ( te*nique h   
plac$ new =ces at our comm&4 ,products h
 be5 multipli$1 b ! dem& = products has 
multipli$ fa/]4 ,we h be5 able to       
cont9ue (f]+ m5 great & imm$iate rew>ds 
= ! developm5t ( new ent]prises4 ,z     
labor 0 ne$$1 our neighbors h cont9u$ to
 supply x4 ,! result is t our bus9ess   

has cont9u$ to g ahead )\t be+ too mu*  
conc]n$ ab\t ! direction 9 :i* x 0 go+4 
,bus9ess has eag]ly appropriat$ !       
results ( sci5ce )\t itself becom+      
sci5tific4 ,! difficult way ( sci5ce    
makes sl[ progress aga9/ ! dazzl+ rew>ds
 ( unbridl$ d>+4 ,s _m /rong b untra9$  
m5 h be5 enri*$ by seiz+ ^u ! imm$iate &
 obvi\s circum/ance--!re has be5 s      
little necessity = sp>+ mat]ials or m5 &
 s little p5alty = wa/e--t we h develop$
 a national impati5ce ) ! sl[ & t$i\s   
process ( f9d+ out4  ,along ) our       
te*nical & bus9ess ent]prise1 ) ! c\rage
 & imag9ation ( :i* we are ju/ly pr\d1 a
 too easy success has giv5 u a t5d5cy to
 drop into a com=table & optimi/ic frame
 ( m9d4 ,imag9ation1 intuition1 p[] to  
picture ! future int]play ( =ces1 c\rage
 & capacity = quick action--all ^!      
qualities are z ess5tial to-day z !y ev]
 7 to bus9ess success4 ,! pione]        
environm5t react+ on our native         
temp]am5t has giv5 u ^! qualities 9 full
 measure1 b x has also giv5 u a habit ( 

do+ ?+s 9 a hit-or-miss fa%ion4 ,our v  
imag9ation & c\rage appli$ to wrong     
circum/ances & 9 p]v]t$ =m h (t5 borne !
 fruit ( national defects4  ,!re is a   
/rong incl9ation to assume t ! old      
approa* to problems w br+ ! same results
 t x did 9 ! pa/1 & to =get t we are    
liv+ 9 a new _w4 ,! problems confront+ !
 pione] 7 n ! problems we face to-day4  
,x requires great ability to draft a    
prospectus2 9 _m ( our greate/          
ent]prises draft+ ! prospectus has be5 !
 crucial task4 ,b a prospectus is n a   
go+ conc]n4 ,!re is a va/ diff]5ce      
betwe5 promotion & adm9i/ration4 ,9 !   
promotional /age ( our bus9ess life we 7
 solv+ problems made up ( unkn[n        
quantities1 problems = :i* ! only angle 
( approa* 0 f\nd 9 ! =mula xyz4 ,we /ill
 h & %all always h problems ( ! xyz     
type1 b if we apply t =mula to a problem
 9 :i* #bbd we are n likely to get ! be/
 results4  ,bus9ess may n yet be a      
sci5ce1 b x is rapidly becom+ sci5tific4
 ,sci5tific inquiry is all ! :ile c>ry+ 

new factors f ! category ( ! unkn[n to t
 ( ! kn[n1 & by s do+ x is sett+ a new  
/&>d ( bus9ess effici5cy4 ,! m brilliant
 qualities1 l c\rage & imag9ation1 mu/  
be c\pl$ ) capacity = inve/igation &    
analysis1 ) endless pati5ce 9 seek+ out 
! twos & ! f\rs & elim9at+ !m f !       
equation4 ,:5 x is possible by sci5tific
 rese>* to di/+ui% a "r way & a wrong   
way to d a task1 x is n an evid5ce (    
c\rage or imag9ation b ( folly to act on
 a faulty & imp]fect reckon+ ) ! facts4 
,! p]son :o uses sci5tific me?od takes  
acc\nt ( all 8 kn[n =ces2 he prep>es 8  
mat]ials1 controls 8 processes &        
isolates 8 factors s z to reveal ! be>+ 
( e /ep 9 ! process ^u an ultimate & (t5
 a f> di/ant result4 ,9 o!r words1 he   
tries at e /age to build ^u a sure      
f\ndation4 ,8 tra9$ imag9ation & judgm5t
 work+ on kn[n facts set ! limit on :at 
he may expect to f9d1 & int]pret :at he 
does f9d1 all along ! way4  ,9 s f> z   
p>ticul> bus9ess ent]prises h re/$ on   
eng9e]+1 *emi/ry1 biology1 & o!r        

sci5ces1 a sci5tific me?od ( approa* has
 long _h l>ge use 9 bus9ess2 b ! sci5ti/
 9 bus9ess has usually be5 a sal>i$     
exp]t--a man ap>t f ! managem5t--& x has
 be5 8 results1 & n necess>ily 8 me?ods1
 t h influ5c$ bus9ess practice4 ,we are 
n[ com+ to und]/& t sci5tific me?od is !
 only sure approa* to all problems2 x is
 a ?+ ( univ]sal application1 & f> f be+
 conf9$ to ! te*nical dep>tm5ts (       
bus9ess1 :]e ! te*nical sci5ti/s hold   
sway 9 _! p>ticul> specialties1 x may h 
its wide/ application 9 work+ out !     
problems ( managem5t4  ,! way 9 :i* a   
man tra9$ 9 sci5tific me?od may det]m9e 
bus9ess practice 9 a sci5tific mann]    
f9ds illu/ration 9 a multitude (        
practical bus9ess problems1 rang+ all ! 
way f ! simple/ (fice detail to ! mo/   
f>-rea*+ que/ions ( policy4 ,to cite an 
example1 ( ! simpl] sort3 if an item 9  
an ord] %eet is id5tical = eight out (  
t5 ord]s is x bett] to h a cl]k         
typewrite ! eight repetitions along ) ! 
two deviations or to use a rubb] /amp8  

,( c\rse1 !re are n "o or two1 b _m1    
items 9 an ord] %eet & ! repetitions &  
deviations are n ! same = all items4 ,9 
practical application1 ! rubb]-/amp     
me?od means a rack ( rubb] /amps plac$ 9
 ! mo/ advantage\s position4 ,x requires
 also a decision z to ! precise p]c5tage
 ( repetitions :i* makes ! /amp         
advantage\s4 ,!n arises ! fur!r "q1 :y n
 h ! mo/ num]\s repetitions numb]$ &    
key$ & ?us avoid ! necessity (          
transcrib+ !m at all8  ,! rule-(-?umb   
approa* to ?is k9d ( problem w\ld proce$
 f speculations conc]n+ ! effect (      
int]rupt+ ! process to use ! /amp1 !    
result ( su* int]ruptions on ! accuracy 
( "w1 difficulties 9 ! way ( necess>y   
physical adju/m5ts1 & _m o!r que/ions t 
w\ld occur to ! practical manag]4  ,!   
sci5tific me?od ( approa* w\ld fir/     
inquire :e!r !re are any pr9ciples d]iv$
 f previ\s motion /udy or o!r           
inve/igations1 t apply to ! case 9 h&4  
,9 accord ) su* pr9ciples x w\ld !n     
proce$1 z f> z possible1 to elim9ate    

neutral or di/urb+ ?ird factors & to    
arrange a te/4 ,! results ( ! te/ w\ld  
lead1 ei!r to a cont9uance ( ! old      
practice1 or to ! e/abli%m5t ( a new    
practice = a c]ta9 p]iod1 aft] :i*1 if  
s]i\s difficulties 7 n reveal$1 ! new   
practice w\ld be def9itely in/all$4  ,x 
%\ld be emphasiz$ at ?is po9t1 t !re is 
a fundam5tal diff]5ce betwe5            
inve/igations or te/s :i* contemplate an
 imm$iate modification ( practice & ^?  
inve/igations 9 :i* rese>*--t is1 !     
discov]y ( new tru?s--is ! sole object4 
,te/s :i* are c>ri$ on )9 ! bus9ess mu/ 
nev] lose sight ( ! fact t a bus9ess is 
a go+ conc]n & t x is impracticable &   
usually undesirable to trans=m a bus9ess
 into a rese>* laboratory4 ,sci5tific   
me?ods 9 bus9ess %\ld n be confus$ ) !  
l>g] problem ( sci5tific bus9ess rese>*4
 ,?is l>g] task1 if und]tak5 by !       
individual bus9ess conc]n1 is ! "w ( a  
sep>ate dep>tm5t4 ,= bus9ess g5]ally1 x 
w h to be conduct$ ei!r by ! ,gov]nm5t1 
or by bus9ess-rese>* end[m5ts4 ,! po9t  

at :i*1 9 practical bus9ess1 rese>* %\ld
 give place to action is a "q t wise    
c\nsel & ! s\nd s5se ( ! tra9$ executive
 mu/ det]m9e4  ,an example ( ! contra/  
betwe5 a sci5tific & a rule-(-?umb      
approa*1 z appli$ to a "q ( major       
policy1 is f\nd 9 discussions ( !       
relative advantages ( a catalogue &     
mail-ord] policy ov] aga9/ a policy (   
di/ribution by travel+ salesm54 ,a few  
ye>s ago ! head ( "o ( ! l>ge/ :olesale 
organizations 9 ! ,unit$ ,/ates1 talk+ )
 an intimate fri5d1 express$ fe> t 8    
h\se1 :i* employ$ salesm51 might be at a
 dang]\s disadvantage ) its *ief        
competitor1 :i* did an exclusively      
mail-ord] bus9ess4 ,! fri5d com=t$ him )
 ! assurance t !re are _m buy]s :o pref]
 to be visit$ by salesm5 & to h goods   
display$ be=e !m4 ,?is fact1 he held1   
w\ld always give an adequate basis = !  
prosp]ity ( a h\se t employ$ ! salesman 
me?od ( di/ribution4  ,nei!r ! fe> nor !
 assurance "h express$ reveals a        
sci5tific attitude ( m9d4 ,c>eful       

analysis %[s1 on ! "o h&1 t ! mail-ord] 
policy is n ! mo/ effective means (     
cultivat+ int5sively a well populat$    
t]ritory4 ,on ! o!r h&1 x %[s t ! exp5se
 ( s5d+ salesm5 to di/ant po9ts 9       
sp>sely populat$ areas m ?an absorbs !  
pr(its f _! sales4 ,individual conc]ns h
 arriv$ at ^! conclusions by exp]im5t & 
accurate co/-keep+ & h succe$$ 9 rea*+ a
 sci5tific decision z to :i* t]ritories 
%\ld be cultivat$ by salesm5 & :i* ones 
%\ld be cov]$ exclusively ?r\gh adv]tis+
 & ! di/ribution ( catalogues & o!r     
lit]ature4  ,! difficulty t bus9ess m5  
f9d 9 apply+ sci5tific me?od consi/5tly 
9 ! analysis ( _! problems is /rik+ly   
reveal$ 9 ! labor policy ( ! great      
majority ( indu/rial conc]ns4 ,:ile _m  
m5 ( sci5tific tra9+ are deal+ )        
problems ( employm5t1 probably no conc]n
 has und]tak5 to make a sci5tific       
analysis to det]m9e :at are ! f\ndations
 ( p]man5t effici5cy ( ! labor =ce :i*  
!y employ4 ,?is is n surpris+1 :5 we    
rememb] h[ complicat$ is ! problem & h[ 

%ort ! "t dur+ :i* we h be5 emphasiz+ ! 
human relations z di/+ui%$ f ! mat]ial  
or me*ani/ic aspect ( bus9ess           
organization4  ,to /ate ev5 a simple    
problem ( managem5t1 l ! "o conc]n+ !   
ord] %eet1 set =? above1 is to reveal "s
 ( ! difficulties ( analysis :i*        
*>act]ize all subject-matt] hav+ to d ) 
human activity4 ,?is means t we %\ld n  
expect results too quickly nor %\ld we  
be disappo9t$ if ! fir/ results ( ef=ts 
at sci5tific analysis are n absolutely  
conclusive4 ,z soon z we recognize t    
bus9ess is prim>ily a matt] ( human     
relations1 t x has to d ) gr\ps &       
organizations ( human be+s1 we see t    
sci5tific analysis ( x _c proce$ 9      
exactly ! same way z ) units ( inanimate
 matt]4 ,! reaction ( human relations to
 *ang$ influ5ces1 frequ5tly _c be       
pr$ict$ until ! *anges occur4 ,bus9ess1 
9 o!r words1 is a social sci5ce &1 l all
 social sci5ces1 mu/ deal prim>ily )    
cont+5t r ?an exact data2 likewise      
conclusions drawn f sci5tific analysis  

mu/ 9 l>ge measure be cont+5t r ?an     
exact4  ,al?\gh we _c always isolate our
 factors1 control our processes1 &      
o!rwise apply sci5tific me?od1 ) results
 z conclusive z ^? obta9$ 9 laboratories
 ( *emi/ry1 physics1 or biology1 we ne$ 
n !re=e reject sci5tific me?od 9 favor (
 a rule-(-?umb4 ,we %\ld1 h[ev]1 be     
suspici\s ( too sweep+ claims bas$ on   
any b ! mo/ c>eful & pa9/ak+ analysis ( 
facts by p]sons :o are ?or\ghly tra9$ 9 
! k9d ( analysis !y und]take4  ,:ile a  
sci5tific approa* w help 9 solv+ _m     
problems ( bus9ess detail1 ! sub/itution
 ( sci5tific me?od = a rule-(-?umb      
approa* w realize its object mo/        
completely 9 ! influ5ces ex]t$ ^u       
fundam5tal long-"t policy1 influ5ces :i*
 _c be> fruit 9 a day or a ye>4 ,!      
circum/ances ( our hi/ory h ret>d$ !    
acceptance ( a long-"t sci5tific        
viewpo9t 9 bus9ess1 b =ces n[ at "w are 
mak+ p[]fully = a sci5tific approa* to  
bus9ess managem5t4 ,fir/ among ^! is a  
realization t our res\rces are measur$ 9

 f9ite t]ms4 ,we h begun to take acc\nt 
( :at we h1 & we are able 9 a r\gh way  
to figure ! loss f :at we h squ&]$4 ,!  
situation is n desp]ate1 b we c see t x 
may become s4 ,to insure aga9/ possible 
disa/] 9 ! future we ne$ to ex]cise     
effective economy 9 turn+ res\rces into 
f9i%$ goods1 & we ne$ to elim9ate wa/e 9
 ! di/ribution & ! consumption ( ^!     
goods4 ,9 private bus9ess ! ne$ = su*   
economy is reflect$ 9 ris+ prices = raw 
mat]ials4 ,9 its public aspect we h     
label$ ! problem1 cons]vation4  ,a      
second =ce mak+ = a sci5tific approa* to
 bus9ess is f\nd 9 ! beg9n+s ( a social 
policy to :i* ,i h ref]r$4 ,?is policy  
is %[+ itself 9 limitations ^u ! way 9  
:i* mat]ials & m5 may be utiliz$ & 9 a  
%>p] def9ition ( ! bus9ess man's        
obligations to employees1 to competitors
 & consum]s4 ,z long z res\rces are to  
be _h = ! ask+1 :ile *eap labor c be    
import$ & utiliz$ )\t re/ra9t1 & :]e no 
que/ions are ask$ 9 m>ket+ ! product1   
!re is n ! "r inc5tive to d ?+s 9 a     

sci5tific way4 ,z bus9ess becomes m & m 
! subject ( legal def9ition1 z ! t5d5cy 
gr[s ( reg>d+ x z a def9ite s]vice1     
p]=m$ "u def9ite limitations1 & =       
def9ite social ends1 m>g9s w be n>r[$ & 
x w become increas+ly necess>y to d ?+s 
9 ! "r way4  ,! sci5tific approa* to    
bus9ess has made great progress dur+ !  
pa/ decade4 ,out ( ! ho/ile criticism to
 :i* s-call$ big bus9ess has be5        
subject$ h come sev]al gov]nm5t         
inve/igations & c\rt records1 9 :i*     
policies ( diff]5t conc]ns h be5        
expla9$1 criticiz$1 & comp>$4 ,besides1 
bus9ess m5 !mselves h become less jeal\s
 ( trade secrets & h %[n an increas+    
incl9ation to comp>e results4 ,a good   
illu/ration ( ?is t5d5cy is se5 9 ! gr[?
 ( op5 price associations & 9 ! _s 9 :i*
 cr$it m51 sales manag]s' associations1 
& o!r bus9ess gr\ps ex*ange in=mation4  
,9 ! same _s1 bus9ess & trade j\rnals h 
giv5 a l>ge exposition ( individual     
exp]i5ce & increas+ att5tion to que/ions
 ( fundam5tal importance4  ,m           

significant /ill has be5 ! sci5tific    
managem5t propag&a4 ,mr4 ,br&eis's      
dramatic exposition ( ?is movem5t 9 !   
railway rate cases 9 #aiaa at once made 
x a matt] ( public int]e/4 ,lat]        
discussion may n h ext5d$ acceptance (  
sci5tific managem5t1 b x has n caus$    
int]e/ 9 x to flag4 ,! movem5t has      
become ess5tially a cult4 ,its prophet1 
! late ,fr$]ick ,taylor1 by ignor+      
trade-unionism & labor psy*ology 9 !    
exposition ( 8 doctr9es1 at once drew   
d[n ^u !m ! ho/ility ( organiz$ labor2 !
 movem5t 0 br&$ z ano!r spe$+-up device4
 ,m s]i\s ?an ! antagonism has be5 ! _s 
9 :i* "s ( ! sci5tific managem5t        
en?usia/s--n all--h met x4 ,!y seem to  
assume t _! sci5ce is absolute &        
inexorable1 t x elim9ates di/urb+       
factors & h5ce ne$s no adju/m5t to adapt
 x to ! difficulties met 9 its          
application4 ,?is air ( omnisci5t       
dogmatism1 toge!r ) ! disa/]s ( false   
prophets1 has some:at compromis$ !      
movem5t & has dim9i%$ its direct        

influ5ce4 ,h[ev]1 bus9ess m5 h be5 /irr$
 up4 ,!y h become accu/om$ to us+ !     
words sci5ce & bus9ess 9 ! same s5t5ce4 
,!y are 9 a receptive attitude = ideas4 
,! indirect influ5ce has be5 great4  ,a 
f9al1 & probably 9 ! long-run ! mo/     
p]man5t1 influ5ce mak+ = ! ext5sion (   
sci5tific me?od 9 bus9ess has be5 ! new 
viewpo9t f :i* univ]sities h be5        
approa*+ ! task ( educat+ m5 = bus9ess4 
,prior to #aijj1 univ]sity education =  
bus9ess 9 ! few univ]sities t attempt$  
any?+ ( ! sort 0 conf9$ to su* bran*es (
 appli$ economics z money & bank+1      
transportation1 corporation f9ance1     
comm]cial geography1 ) acc\nt+ & bus9ess
 law to give x a pr(essional flavor4    
,!re 7 also g5]al c\rses label$         
comm]cial organization & indu/rial      
organization1 b ^! 7 almo/ entirely     
descriptive ( ! g5]al bus9ess fabric ( !
 c\ntry1 & _h b ! mo/ remote be>+ on !  
int]nal problems ( organization &       
managem5t :i* an individual bus9ess man 
has to face4 ,! assumption 0 t a man :o 

0 look+ =w>d to bus9ess w\ld probably d 
well to secure "s in=mation ab\t        
bus9ess1 b !re 0 little attempt at      
def9ite pr(essional tra9+ ( ! k9d giv5  
to prospective lawy]s1 physicians1 or   
eng9e]s4  ,)9 ! pa/ few ye>s univ]sities
 h begun to und]take s]i\sly !          
developm5t ( pr(essional tra9+ =        
bus9ess4 ,! result has be5 t ?r\gh      
organiz$ rese>* & ?r\gh inve/igations by
 individual tea*]s & /ud5ts1 !          
univ]sities are ga!r+ up ! ?reads (     
diff]5t t5d5cies t[>d sci5tific bus9ess 
& are !mselves contribut+ important     
sci5tific results4 ,out ( all ?is !re is
 em]g+ a body ( pr9ciples & ( te/$      
practice :i* con/itutes an appropriate  
subject-matt] = a pr(essional c\rse (   
/udy1 & po9ts ! way to /ill fur!r       
rese>*4  ,"o ( ! e>lie/ results ( an    
approa* to bus9ess 9 an attitude (      
sci5tific rese>*1 is ! discov]y t !re   
are c]ta9 fundam5tal pr9ciples :i* are  
alike = all l9es ( bus9ess1 h[ev] div]se
 ! subject-matt] to :i* analysis is     

appli$4 ,sub/itut+ ! pr9ciple ( lik5ess 
= div]sity z ! />t+-po9t ( bus9ess      
analysis1 has f>-rea*+ consequ5ces n    
only = education & rese>* b = managem5t 
z well4 ,fir/ among ^! consequ5ces is ! 
fact t se>* = elem5ts ( lik5ess leads at
 once to replac+ ! trade or indu/ry ) ! 
function z ! significant unit bo? (     
rese>* & organization4  ,if we />t our  
/udy ( bus9ess by sep>at+ manufactur+1  
railroad+1 m]*&is+1 bank+1 & ! re/1 ) a 
l>ge numb] ( m or less logical          
subdivisions 9 ea* field1 & !n try to "w
 out a body ( pr9ciples applicable to   
ea* subdivision1 we soon run into       
endless comb9ations & lose all s5se (   
unity 9 bus9ess z a :ole4 ,z soon1      
h[ev]1 z we approa* bus9ess f ! /&po9t (
 acc\nt+1 sales managem5t1 employm5t1   
executive control1 & :5 we f9d t lessons
 9 /ati/ics1 adv]tis+1 mov+ mat]ials1 or
 executive managem5t1 le>n$ 9 connection
 ) a factory1 c be c>ri$ ov] ) b slight 
adaptation to ! managem5t ( a /ore1 we  
at once get a manageable body ( mat]ial 

on :i* to "w4  ,recognition ( ! pr9ciple
 ( lik5ess & ( its coroll>y1 analysis by
 function r ?an by trade1 m>ks p]haps ! 
greate/ s+le /ep yet tak5 9 ! developm5t
 ( sci5tific bus9ess4 ,! pr9ciple1      
h[ev]1 has its dang]s4 ,analysis by     
function implies functional             
specialization 9 rese>* & a simil>      
t5d5cy 9 bus9ess practice4 ,)\t         
specialization !re c be no adequate     
analysis ( any l>ge & complex body (    
facts4 ,) too int5se specialization !re 
is always dang] t ! assembl+ & dige/+ ( 
facts1 & especially ! conclusions drawn 
f !m1 w reflect "s peculi> slant ( an   
individual or ( a p>ticul> specialty4   
,! acc\ntant does n always g aft] ! same
 facts z ! sales manag]1 & ev5 ) ! same 
facts ! two are likely to draw q diff]5t
 conclusions z to _! be>+ on a g5]al    
policy4 ,specialization1 too1 may result
 9 sett+ an int5se analysis ( "o gr\p ( 
facts ov] aga9/ a v sup]ficial view (   
o!r facts--or aga91 an int5se analysis (
 ! same facts f "o viewpo9t ) failure to

 consid] !m f ano!r1 & p]haps equally   
important1 viewpo9t4 ,unless ^!         
weaknesses are correct$1 ! bus9ess w    
lack balance2 ! "w ( dep>tm5ts w n      
h>monize2 !re w be no fundam5tal policy2
 goods sold on a quality basis w be     
manufactur$ on a price basis--all ( :i* 
leads to disa/r\s results4  ,sci5tific  
me?od is ! fir/ article 9 ! cre$ by :i* 
bus9ess tra9+ mu/ be guid$4 ,! gr[+     
necessity = critical & se>*+ analysis ( 
bus9ess problems1 ju/ifies all ! ef=t we
 c put =? to develop plans = tra9+ into 
a /ructure ( :i* sci5tific me?od %all be
 ! corn]-/one4 ,b analysis is n all4    
,foll[+ analysis mu/ come syn!sis4      
,some:]e all ! facts & conclusions mu/  
be assembl$ & ga!r$ up into a work+     
plan4 ,x is ?is task ( level+ up r\gh   
places 9 ! comb9$ "w ( dep>tm5t         
speciali/s1 t puts ! tra9+ & insight (  
bo? ! executive & ! director ( rese>* to
 ! mo/ sev]e te/4 ,x is a m>k ( a       
well-tra9$ executive t 9 p]=m+ 8 task he
 in/9ctively foll[s pr9ciples in/ead (  

tru/+ alone to mom5t>y intuitions1 h[ev]
 valuable & necess>y ^! may be4  ,& "h x
 is t ! second article 9 ! cre$ (       
bus9ess tra9+ appe>s4 ,! executive's    
task is prim>ily to adju/ human         
relations1 & ! nature ( ! pr9ciples by  
:i* ^! adju/m5ts are made1 det]m9es !   
relations ( a conc]n to its labor]s1 to 
competitors1 to cu/om]s1 & to ! public4 
,if ! executive comes to 8 task )\t a   
m9d & _s tra9$ to an appreciation (     
human relations1 he is n likely s to    
syn!size ! "w ( 8 subord9ates z to make 
= ei!r maximum effici5cy )9 ! bus9ess or
 its maximum contribution to ! life ( ! 
,/ate4  ,! t]m executive 9 l>ge & highly
 organiz$ conc]ns is likely to mean !   
head ( a dep>tm5t4 ,a l>ge proportion ( 
! dep>tm5t heads n[ 9 bus9ess are m5 (  
purely empirical tra9+4 ,_! horizon is  
likely to be limit$ & to c5t] too mu* 9 
! dep>tm5tal viewpo9t4 ,!y may p]haps be
 able to see ! :ole bus9ess1 b if !y d1 
!y w probably see x exclusively f !     
inside4 ,!re is frequ5tly no?+ 9 _!     

bus9ess exp]i5ce t has made !m ?9k ( !  
great =ces at "w 9 society at l>ge4 ,z !
 bulk ( bus9ess has be5 organiz$ 9 !    
pa/1 !re has be5 no dep>tm5t 9 :i*1     
automatically & 9 ! regul> c\rse (      
bus9ess1 a view look+ outw>d is br\ght  
to be>4 ,if x came at all1 x 0 reflect$ 
back f ! l>g] relations & ! l>g] social 
contacts ( ! head ( ! bus9ess4 ,_m g5]al
 executives h be5 promot$ f ! position (
 head ( dep>tm5t at a p]iod 9 life :5 _!
 habits ( ?\ght _h become cry/alliz$1 & 
x 0 n natural t !y %\ld entirely *ange  
^? habits ) ! *ange 9 _!                
responsibilities4  ,besides1 ! economics
 ( competition & a /rong gr\p s5tim5t   
among bus9ess m5 h t5d$ to make !m resi/
 social influ5ces :i* might react ^u !  
policies ( _! own bus9ess4 ,sup]ficial  
conclusions drawn f su* exp]im5ts z ^? (
 ,pullman & ( ,patt]son1 to :i* ref]5ce 
has be5 made1 h seem$ to ju/ify su*     
resi/ance & h =tifi$ m5 9 ! belief t    
bus9ess & response to social influ5ce   
%\ld be kept sep>ate 9 wat]-tight       

comp>tm5ts4  ,m rec5tly m5 h be5 com+ to
 und]/& ! fundam5tal defects 9 !        
,pullman & ! orig9al ,ca% ,regi/] plans 
& h come to realize t ev5 a sep>ate     
welf>e dep>tm5t may be successfully     
incorporat$ 9 a bus9ess1 if only c]ta9  
fundam5tal policies are foll[$ 9 its    
managem5t4 ,/ill m significant is ! view
 look+-outw>d & ! consequ5t h>moniz+ (  
social & bus9ess motives1 :i* is com+ 9 
! ord9>y developm5t ( bus9ess policies z
 a result ( _! m fundam5tal analysis4   
,p]haps ! greate/ /ep t[>d a full]      
consid]ation ( facts on ! outside is    
tak51 :5 a bus9ess creates a sep>ate    
dep>tm5t ( employm5t4 ,x is h>d to see  
h[ ! head ( an employm5t dep>tm5t c h ! 
l>ge/ measure ( success if he sees only 
! facts on ! inside4 ,a compreh5sive    
application ( sci5tific me?od to        
problems ( employm5t leads a long way   
into analysis ( ! social facts affect+ !
 p :o are employ$4  ,f diff]5t angles ! 
same ?+ is true 9 o!r dep>tm5ts (       
bus9ess1 notably s 9 ! case ( adv]tis+ &

 sales4 ,"o ( ! mo/ obvi\s outside facts
 :i* affect sales1 is ! location &      
d5sity ( ! population1 & yet x is a fact
 :i* frequ5tly is neglect$4 ,ano!r      
outside fact1 :i* ultimately adv]tis]s w
 h to consid]1 is ! consum+ p[] (       
population4 ,!y h be5 v ke5 to /udy our 
psy*ological reactions1 & 9 do+ ?is !y h
 und]tak5 ! entire *>ge ( ! evolution ( 
our wants4 ,b !y h n always gone at _!  
"w f ! long-"t po9t ( view4 ,sometime !y
 w h to take acc\nt ( ! fact t unwise   
consumption impairs effici5cy & depletes
 ! pur*as+ p[] f :i* adv]tis]s mu/ be   
paid4  ,! next /ep 9 ! sci5tific        
analysis ( bus9ess is to provide = m    
ample analysis ( facts on ! outside4    
,weakness at ?is po9t expla9s ! defects 
9 _m plans = ! welf>e ( employees1 x    
expla9s ! defects 9 sci5tific managem5t1
 m5tion$ above1 & x expla9s _m o!r      
%ortcom+s 9 projects = increas+ !       
effectiv5ess ( bus9ess4  ,b m5 :o       
approa* bus9ess f ! /&po9t ( univ]sity  
rese>* are n free f ! same dang]4 ,9 _! 

ef=t to ori5t !mselves ) ! bus9ess      
facts1 !y get ! bus9ess po9t ( view &   
run ! risk ( c5t]+ att5tion too mu* on  
mat]ials & mat]ial =ces4 ,ev5           
psy*ological reactions ( m5 & wom5 may  
be analyz$ f ! /&po9t ( _! me*anics1 )\t
 ev] go+ back to ^? impell+ motives :i* 
h _! roots 9 ! human in/9cts & complex  
social reactions ( :i* ! m5 & wom5 are a
 "p4  ,approa*$ f ! /&po9t ( sci5tific  
me?od1 ! field ( conflict betwe5 diff]5t
 int]e/s 9 bus9ess & betwe5 s-call$ good
 bus9ess & good e?ics becomes measurably
 n>r[$4 ,i d n mean to give sci5ce !    
sole cr$it = a*ievem5ts along ?is l9e4  
,m frequ5tly advance 9 moral /&>ds has  
be5 =c$ on unwill+ victims ?r\gh        
legislation1 public op9ion1 or class    
/ruggle1 & !n m5 h discov]$1 z a happy  
surprise aft] ! ev5t1 t good e?ics 0    
pr(itable4 ,b sci5ce has done some?+1 & 
might h done /ill m1 if our ef=ts at    
sci5tific analysis _h n be5 s (t5       
und]weight$ on ! human side4 ,^! v      
discov]ies ( h>mony betwe5 :olesome     

practice & good bus9ess con/itute a "p (
 ! body ( fact ( :i* a truly sci5tific  
me?od mu/ take acc\nt4 ,:5 a review (   
all ! cases 9 :i* compulsion has *ang$  
exi/+ me?ods %[s an almo/ inv>iable     
adaptation & a t5d5cy t[>d bett] results
 aft] ! level ( competition is rais$1 a 
man ( sci5tific tra9+ imm$iately asks ! 
"q1 :e!r a fundam5tal law is n at "w4   
,a glance at social legislation dur+ !  
la/ c5tury reveals "s int]e/+           
uni=mities4 ,e /ep 9 ! developm5t ( !   
,engli% ,factory ,acts z !y /ood at !   
beg9n+ ( ! pres5t w>1 />t+ ) ! fir/     
,*ild ,labor ,bill 9 #ahjb & end+ ) !   
,%op ,regulation ,act ( #aiab1 _h be5   
tak5 aga9/ ! prote/ ( ! mo/ vocal       
elem5ts 9 ! trades conc]n$4 ,9 ne>ly e  
case inve/igation w %[1 ei!r t !        
requirem5ts ( ! measure enact$ fell     
consid]ably bel[ ! practice ( ! be/     
conc]ns1 or t ! :ole indu/ry 0 9 ne$ (  
"s outside impulse to />t x 9 ! way ( m 
effici5t organization4 ,z long z x is   
p]missible to employ five wom5 & five   

*ildr5 to t5d five ma*9es1 !re is n ! "r
 inc5tive to make adju/m5ts by :i* all  
five ( !m c be t5d$ by "o man4  ,9 ?is  
c\ntry 9 our =ty-n9e jurisdictions we h 
be5 go+ =ty-n9e times ov] ! exp]i5ce (  
,engl& & o!r c\ntries1 9 connection )   
ea* ef=t to =ce up ! competitive level4 
,we h seem$ to be q unable to apply !   
mo/ obvi\s lessons ( exp]i5ce ei!r at   
home or abroad to new cases1 & yet      
ess5tially ! same uni=mity ( adaptation 
has occurr$ "h z abroad4 ,l our employ]1
 :om a /rike impell$ to adopt an advanc$
 policy t[>d labor1 we f9d aft] ! ev5t t
 we %\ld n "k h[ to d bus9ess "u ! /&>ds
 9 =ce be=e ! law compell$ a *ange4     
,en=cem5t ( ! ,%]man ,anti-,tru/ ,law   
has be5 frequ5tly cit$ z an example (   
unwise gov]nm5t int]f]5ce4 ,) respect to
 _m ( ! incid5ts ( en=cem5ts1 criticism 
has be5 well f\nd$4 ,b ! net result ( t 
en=cem5t has be5 a mu* s\nd] body ( law 
on ! important subject ( fair & unfair  
competition4 ,besides1 we n[ h 9 !      
,f$]al ,trade ,commission ! beg9n+s ( an

 adm9i/rative organization = deal+ ) !  
:ole subject ( monopoly & re/ra9t (     
trade4 ,& m ?an all ?is1 we h a bett]   
prospect ?an ev] be=e1 ( "s sort (      
mutual respect betwe5 gov]nm5t &        
bus9ess1 & ( hone/ cop]ation 9 work+ out
 _! mutual problems4 ,x is n likely t ! 
,anti-,tru/ ,law has prev5t$ hone/ m5 f 
e>n+ legitimate pr(its f legitimate     
bus9ess s]vice to any?+ l ! ext5t :i*   
w\ld be indicat$ by ! vigor ) :i* x has 
be5 oppos$4 ,b ev5 if x has1 we h       
receiv$ some?+ = ! price paid4  ,& s !  
li/ might be l5g!n$1 pure food & drugs1 
meat inspection1 public s]vice          
regulation1 indu/rial safety1 & !       
re/1--9 ne>ly e case1 f a purely bus9ess
 po9t ( view1 opposition1 9 s f> z x    
relat$ to ! ma9 po9t ( gov]nm5t policy1 
has be5 a mi/ake4 ,refusal ( ! bus9ess  
m5 affect$ to accept a policy (         
regulation has t5d$ to %ut !m out ( !   
c\ncils 9 mak+ adju/m5ts ( detail4 ,?is 
fact has h9d]$ ! gov]nm5t 9 p]=m+ a     
s]vice :i* 9 mo/ cases bo? ! public & ! 

bus9ess ne$$ to h done4  ,ev5 :5 we     
admit1 z obvi\sly we mu/1 ! p]si/5ce (  
conflict betwe5 diff]5t int]e/s )       
respect to a l>ge mass ( bus9ess detail1
 ! fact ( gr\p influ5ces & social       
control /ill rema9s an important        
consid]ation to :i* bus9ess analysis mu/
 give due weight4 ,!re has be5 a l>ge   
mass ( bus9ess 9 ?is c\ntry1 9 :i* !    
community has be5 unable to recognize   
any productive s]vice2 x has be5 reg>d$ 
only z a means ( acquisition = ^? :o    
pursue x4 ,legislation1 public op9ion1 &
 ! evolution ( en=ceable /&>ds )9       
p>ticul> bus9ess gr\ps are t5d+ all !   
:ile to n>r[ ! sph]e ( purely           
acquisitive bus9ess4 ,) respect to t    
great mass ( bus9ess :i* has bo? an     
acquisitive & a productive side1 ^! =ces
 are gradually br++ u to an attitude (  
m9d 9 :i* we reg>d ga9 z a by-product ( 
s]vice4  ,! public is also recogniz+ t !
 purpose ( goods & s]vices is to promote
 individual & community welf>e1 & z fa/ 
z public policy to t end c be work$ out1

 x is c>ry+ emphasis ev5 beyond specific
 products & s]vices to ! social ends =  
:i* ^! products & s]vices exi/4 ,9 ^!   
ways society too is try+1 clumsily      
p]haps1 to take a long-"t view ( its    
bus9ess & to cons]ve ! human values t   
make = progress4  ,obvi\sly x is b a    
p>tial & incomplete analysis ( a bus9ess
 situation t omits ^! human factors2 a  
work+ policy t fails to anticipate _!   
=ce & !n to r$uce ! zone ( conflict to  
its l[e/ limits is neglect+ an important
 elem5t 9 ! def9ition ( long-"t         
effici5cy4 ,& bus9ess m5 are beg9n+ to  
see ?is4  ,a few weeks ago ! manag] ( a 
l>ge dep>tm5t /ore 9 ,san ,francisco 0  
k9d en\gh to %[ me 8 record ( dep>tm5tal
 pr(its = a numb] ( mon?s4 ,!           
fluctuation 9 relative pr(its ( diff]5t 
dep>tm5ts mon? by mon? 0 app>5t1        
especially ! fact t aft] a c]ta9 mon?   
sev]al dep>tm5ts :i* _h previ\sly e>n$  
high pr(its became relatively mu* less  
pr(itable4 ,i ask$ ! manag] to expla91 &
 he did 9 ?is way3 ,at ! "t :5 ! *ange  

occurr$ a new policy _h be5 inaugurat$  
by :i* employm5t ( help _h be5 c5traliz$
 & /&>diz$ = ! :ole conc]n4 ,z a result1
 :5 c]ta9 dep>tm5ts :i* _h be5 decid$ly 
sub-/&>d ) respect to wages 7 br\ght up 
to /&>d1 !y 7 unable to e>n any?+ l !   
pr(its :i* !y _h previ\sly %[n4  ,)\t   
go+ into ! "q ( ! connection betwe5 high
 wages & pr(its1 ( :i* ?is incid5t 9 my 
op9ion 0 an exception1 x 0 cle> to !    
manag] z to me t ! increase 9 wages 9 ^!
 p>ticul> dep>tm5ts _h be5 accompani$ by
 an imm$iate loss 9 pr(its4 ,fur!rmore1 
! manag] 0 unable to det]m9e1 f figures 
available be=e & aft] ! *ange1 t ?is    
loss _h be5 directly comp5sat$ by ga9s 9
 o!r dep>tm5ts4 ,9 ord] to get 8        
viewpo9t conc]n+ ! *ange at issue1 ,i   
ask$ him two que/ions3 7#a7 ,:y 0 he    
will+ to make a *ange ( su* a fundam5tal
 "* )\t be+ able to asc]ta9 9 advance   
:e!r or n x w\ld be pr(itable8 7#b7 ,9 !
 abs5ce ( facts t c\ld be incorporat$ 9 
! acc\nts1 0 x 8 belief t ! *ange w\ld 9
 "t be pr(itable1 & if s1 h[ did he rea*

 8 conclusion8  ,8 response to ! fir/ "q
 reveal$ to me an int5sely natural b    
nev]!less complex motive4 ,he said1     
sub/antially1 t he 0 confid5t t /&>diz$ 
employm5t 0 ! only acceptable policy1 f 
! /&po9t ( ! g5]al manag]4 ,giv5 !      
necessity ( /&>diz+1 x 0 necess>y = !   
g5]al reputation ( ! bus9ess to /&>dize 
upw>d r ?an d[nw>d4 ,he want$ 8 bus9ess 
to be reg>d$ z "o 9 :i* ! be/ /&>ds (   
employm5ts obta9$4 ,fur!rmore1 he add$1 
,cali=nia w soon h a m9imum wage law1 & 
,i want ?is bus9ess to be well 9 advance
 ( any wage /&>ds :i* may be impos$ by  
law4  ,answ]+ ! second "q m             
specifically1 ! manag] recogniz$ !      
adv]tis+ value ( a reputation = hav+    
good conditions ( employm5t4 ,he _h     
discov]$ no t5d5cy = g5]al pr(its to    
dim9i% or = ! rate ( increase to be     
ret>d$ m ?an tempor>ily4 ,9 ! abs5ce (  
def9ite facts to ! contr>y he consid]$ x
 safe to assume t z soon z ! bus9ess    
%\ld become adju/$ to ! new /&>ds1      
/&>dization ( wages upw>d w\ld be       

pr(itable = ! bus9ess z a :ole4 ,he     
want$ to make ! *ange volunt>ily & to   
comm5ce op]at+ successfully on ! new    
basis 9 advance ( competitors4  ,x is   
sc>cely possible to discuss ?is sort (  
bus9ess situation ) a progressive       
manag]1 )\t feel+ t he does n approa*   
bus9ess exclusively f ! /&po9t ( ga92 9 
o!r words1 to use ! phrase ( ,adam      
,smi?1 he is n exclusively an economic  
man4 ,! manag] ( a mod]n bus9ess1 on !  
contr>y1 is a man v mu* l ! re/ ( u1 &  
be+ su* a man he is fir/ ( all desir\s (
 con=m+ to :atev] /&>ds are 9 way (     
acceptance by t "p ( society 9 :i* he   
moves4 ,obvi\sly1 ^! /&>ds are made up (
 bo? selfi%ness & altruism1 ) selfi%ness
 t5d+ all ! "t to become m enlight5$ z  
society advances4  ,z we come to di/+ui%
 m cle>ly betwe5 rew>d = s]vice & m]e   
"o-sid$ ga91 !re occurs a p>allel *ange 
9 m5's motives2 !y become m s5sitive to 
social disfavor & to social e/eem & less
 & less will+ to devote _! lives to     
activity by :i* no "o b !mselves is     

b5efit$4 ,9 ?is reaction ( altruism )   
enlight5$ selfi%ness !re em]ges 9 m5's  
m9ds a new concept ( _! own int]e/ & a  
bett] und]/&+ ( ! k9d ( bus9ess policy t
 9 ! long-run br+s !m ! greate/ rew>d4  
,( c\rse1 ?is does n mean t enlight5$   
selfi% int]e/ has ceas$1 or t x w ev]   
cease1 to be a motive =ce 9 bus9ess4 ,b 
!re is a va/ diff]5ce betwe5 selfi%ness 
untemp]$ ) o!r motives & selfi%ness eag]
 = ! e/eem ( "o's fell[s4  ,cle>ly x is 
a task ( high] education to help promote
 response to ! m enlight5$ motives4 ,!  
difficulty :i* ev5 m5 ( advanc$         
univ]sity tra9+ h 9 tak+ full acc\nt (  
human factors indicates some?+ ( !      
nature & importance ( ! task4 ,! s-call$
 sci5tifically tra9$ manag] t5ds to     
und]value ! human factor ( 8 equation4  
,8 analysis is likely to be ov]weight$  
on ! mat]ial side4 ,:5 ! univ]sity      
/>ts--z x is />t+ & %\ld />t--to tra9   
future executives1 x ne$s to analyze its
 own problem1 & take full acc\nt ( !    
dang]s aga9/ :i* x has to gu>d4 ,o!rwise

 ! tra9+ itself w be ov]weight$ on !    
mat]ial side & w p]petuate ! weakness t 
x ought to correct4  ,! greate/ dang] 9 
?is connection1 z ,i see x1 arises out (
 ! di/9ction betwe5 ! s-call$ cultural &
 ! vocational po9t ( view4 ,?is         
di/9ction comes to u ) a l>ge mass (    
traditional au?ority1 & we h classifi$  
subjects & erect$ b>ri]s on ! assumption
 t ! di/9ction is real4 ,z f> z ! tra9+ 
( bus9ess executives is conc]n$1 ,i am  
confid5t t ! di/9ction is "o :i* ought  
nev] to be made4 ,x is a great mis=tune1
 :5 "y m5 & wom5 :o are prep>+ = a s]i\s
 c>e] are p]mitt$ to ?9k ( culture z a  
non-function+ ornam5t2 equally un=tunate
 is x = !m to ?9k ( _! prospective      
vocations z activities devoid ( cultural
 association4  ,a few days ago a /ud5t  
:o _h already select$ 8 pr(ession & 0   
anxi\s to be ab\t x confid$ to me1 z _m 
o!rs h done1 h[ di/a/eful he 0 f9d+ !   
task ( work+ (f 8 culture4 ,does any "o 
really suppose t ! sophomore :o is work+
 (f 8 culture "u faculty compulsion1 9  

ord] to get 8 college degree1 is really 
absorb+ f 8 /udy any?+ :i*1 z ! faculty 
assumes1 makes him a bett] man & yet1 z 
he himself believes1 contributes no?+ to
 effectiv5ess 9 8 pr(ession8 ,or take ! 
case ( ! man :o devotes himself )       
pr(essional e>ne/ness to 8 two1 ?ree1 or
 f\r ye>s ( college "w--w he f9d t he   
has inve/$ 8 "t & 8 money on a purely   
ornam5tal luxury t has no relation to 8 
lat] "w8  ,! fir/ great elem5t ( tra9+  
:i* ! univ]sity c give to future bus9ess
 m5 is a ma/]y ( sci5tific me?od z a    
means ( analyz+ problems & syn!siz+     
results4 ,q z fundam5tal z ?is is !     
developm5t ( an intellig5t & sympa!tic  
approa* to que/ions ( human relation%ip4
 ,only ! beg9n+ /eps 9 ! direction (    
bus9ess effici5cy c be tak5 :ile        
att5tion is conf9$ to ! mat]ial &       
me*ani/ic side ( bus9ess organization4  
,no secure basis = p]man5t effici5cy c  
be e/abli%$ until we are prep>$ to g    
deeply into ! "q ( human motives & to   
und]/& some?+ ( ! complex reactions t   

come f individual & gr\p associations4  
,)\t su* a basis we _c hope = a         
nationally effective bus9ess            
organization4  ,bus9ess is a =m (       
cop]ation ?r\gh :i* m5 ex]cise control  
ov] natural =ces & !reby produce ?+s )  
:i* to satisfy human wants4 ,any subject
 well taught1 :i* gives an insight into 
human relations or into nature & man's  
control ov] x1 w help prep>e a p]son to 
deal ) ! intricate problem ( human      
relations 9 bus9ess--t is1 if ! /ud5t   
has /udi$ ! subject 9 an attitude ( m9d 
to see its be>+ on :at he is prep>+ to  
d4  ,! "q is n s mu* "o ( too few or too
 _m s-call$ culture subjects1 b r ( !   
attitude ( m9d 9 :i* all subjects are   
und]tak54 ,x is a "q ( gett+ su* a      
survey ( ! great facts ( human exp]i5ce 
& ( s po9t+ _! significance z to enable 
m5 to approa* a problem ( human         
relation%ip ) sympa?y & some?+ ( a      
long-"t dynamic viewpo9t4 ,:5 ?is is    
accompani$ by a ma/]y ( sci5tific me?od1
 ! f\ndations are reasonably secure4    

,)\t su* f\ndations1 secur$ ei!r 9      
college or out1 analysis ( problems 9 a 
specializ$ bus9ess field is almo/ sure  
to be "o-sid$ & incomplete4  ,! k9d (   
pr(essional tra9+ t ,i w\ld sugge/ = !  
future bus9ess executive w\ld be laid on
 ! f\ndation ( a college c\rse ( two1   
?ree1 or f\r ye>s 9 :i* ! viewpo9t & !  
v>i$ me?ods ( /udy 9 sev]al div]se      
bran*es ( k _h be5 ?or\ghly in/ill$4 ,:5
 ! /ud5t pass$ to ! pr(essional /udy (  
bus9ess he w\ld be expect$ to ma/] !    
fundam5tals ( bus9ess organization &    
managem5t1 includ+ ! basic elem5ts (    
subjects l acc\nt+1 f9ance1 & o!r       
divisions ( organization common to all  
l9es ( bus9ess4 ,all ( ^! /udies w\ld be
 pursu$ ) con/ant ref]5ce to ! fact t   
bus9ess is c>ri$ on 9 a community 9 :i* 
c]ta9 public policies are en=c$ & 9     
recognition ( ! fact t bus9ess %\ld     
con=m to ^! policies & help to make !m  
effective 9 contribut+ to public welf>e4
  ,z ! /ud5t advances1 ! c\rse w\ld     
proce$ t[>d great] & great]             

specialization1 & w\ld f9ally culm9ate 9
 an int5sive /udy ( "s fairly n>r[      
bus9ess problem1 pursu$ until ! /ud5t   
has ma/]$ x 9 pr9ciple & 9 detail4 ,!   
result ( 8 /udy w\ld be set =? 9        
dignifi$ readable ,engli% :i* an        
intellig5t layman c\ld compreh5d & :i*  
w\ld make ! article acceptable =        
publication 9 a j\rnal ( /&+4           
,pr(essional /udy ( bus9ess1 !n1 %\ld   
give /ud5ts a compreh5sive _m-sid$      
survey ( bus9ess & a ?or\gh grasp (     
sci5tific me?od z us$ 9 analyz+ bus9ess 
facts4 ,x %\ld prep>e ! /ud5t to ?9k    
complicat$ bus9ess problems ?r\gh to !  
end & to put ! results ( 8 ?9k+ toge!r  
into an effective work+ plan4 ,f9ally1 x
 %\ld ma9ta9 an atmosph]e 9 :i* bus9ess 
problems are reg>d$ 9 a l>ge &          
public-spirit$ way4  ,we are well "u way
 ) pr(essional tra9+ = bus9ess2 b if    
/ud5ts fail to get ! g5]al educational  
f\ndation = x1 x w n accompli% ! be/    
results4 ,if ! two1 ?ree1 or f\r ye>s ( 
college /udy is reg>d$ z some?+ purely  

ornam5tal & irrelevant1 :ile !y are     
gett+ x1 if x fails to ar\se an         
appreciation bo? ( sci5tific me?od & (  
human values1 or if ^! values are ?\ght 
( z some?+ to =get :5 ! /ud5t comes to !
 analysis ( practical problems1 !       
univ]sity w n h done :at x might d = !  
promotion ( high /&>ds ( effici5cy 9    
bus9ess4  ,9 all ( ! discussions ,i h   
tri$ to po9t out h[ emphasis 9 bus9ess  
is gradually %ift+ f acquisition1 to    
production & s]vice2 h[ !re are         
gradually evolv+ 9 bus9ess1 pr(essional 
/&>ds ( fitness1 ( conduct1 & ( motive2 
& h[ m & m ^! /&>ds ent] into ! measur+ 
( bus9ess success4 ,our educational     
assumptions /ill re/ too l>gely on ! old
 doll> /&>d ( success ) its well-kn[n   
inf]5ces ab\t ! blood-&-iron equipm5t ) 
:i* t success c be atta9$4  ,psy*ologi/s
 tell u t we t5d to get :at we expect4  
,if we fail to create en?usiasm = !     
opportunity = s]vice 9 bus9ess2 if we   
assume t "y p]sons :o ent] bus9ess are  
go+ to measure _! returns 9 doll>s      

alone2 or if we cont9ue to feature1 z we
 h done1 ! break betwe5 ! s-call$       
cultural & ! pr(essional p>ts ( !       
univ]sity c\rse1 !re w be dang] t we    
%all cont9ue to get ! ?+ = :i* we plan4 
,!re c be no d\bt t _m ( our old        
assumptions ab\t ! relative dignity &   
social di/9ction atta*+ to diff]5t k9ds 
( /udy1 z well z ! assumption ( a purely
 m]c5>y motive 9 bus9ess1 h imp$$ a     
:olesome reaction betwe5 high] education
 & bus9ess /&>ds4 ,^! assumptions h     
creat$ an atmosph]e--an objective &     
subjective attitude ( m9d1 a set (      
motives & desires1 ( appreciations &    
valuations1 all ( :i* /& 9 ! way ( ! mo/
 f>-rea*+ educational results4  ,s f> z 
^! assumptions c be rationally expla9$1 
!y re/ on ideas t are 9 "p mi/ak51 9 "p 
exagg]at$1 & 9 "p obsolete4 ,!          
application ( sci5tific me?od to bus9ess
 has creat$ an entirely new relation%ip 
betwe5 bus9ess & education4 ,sci5tific  
analysis & social policy are e/abli%+ a 
new connection betwe5 ! mat]ial & !     

human facts ( bus9ess4 ,9 ! new         
atmosph]e ! bus9ess executive requires  
^? f9e qualities ( m9d & _s1 & ! ability
 to comm& ^! qualities = a giv5 task1   
:i* peculi>ly x is ! "w ( ! univ]sity to
 cultivate4  ,9 proportion z univ]sities
 h vigor\sly und]tak5 ?is "w1 & h appli$
 sci5tific me?od to _! own problem (    
articulat+ x ) high] education 9 g5]al1 
! l9e ( approa* to pr(essional bus9ess  
tra9+ has become increas+ly cle>4 ,among
 ! notable developm5ts ( ! pa/ decade   
has be5 a %ift+ ( emphasis f ! tra9+ (  
speciali/s to ! tra9+ ( bus9ess         
executives4 ,z prep>ation = executive "w
 comes to be g5]ally recogniz$ z an     
appropriate field = sy/ematic           
pr(essional /udy1 ! /&>ds t sci5tific   
me?od has already a*iev$ w become fix$ &
 bett] /&>ds ( bus9ess effici5cy &      
s]vice w em]ge4   ,! ,riv]side ,press   
,,cambridge  ,,massa*usetts ,u  ,s  ,a