Higher Education and Business StandardsHotchkiss, Willard E. (Willard Eugene)
Philosophy
Higher Education and Business Standards
Hotchkiss, Willard E. (Willard Eugene)
Business education; Business ethics
It should be emphasized at this point, that there is a fundamental
difference between investigations or tests which contemplate an
immediate modification of practice and those investigations in which
research--that is, the discovery of new truths--is the sole object.
Tests which are carried on within the business must never lose sight of
the fact that a business is a going concern and that it is
impracticable and usually undesirable to transform a business into a
research laboratory. Scientific methods in business should not be
confused with the larger problem of scientific business research. This
larger task, if undertaken by the individual business concern, is the
work of a separate department. For business generally, it will have to
be conducted either by the Government, or by business-research
endowments. The point at which, in practical business, research should
give place to action is a question that wise counsel and the sound
sense of the trained executive must determine.
An example of the contrast between a scientific and a rule-of-thumb
approach, as applied to a question of major policy, is found in
discussions of the relative advantages of a catalogue and mail-order
policy over against a policy of distribution by traveling salesmen. A
few years ago the head of one of the largest wholesale organizations in
the United States, talking with an intimate friend, expressed fear that
his house, which employed salesmen, might be at a dangerous
disadvantage with its chief competitor, which did an exclusively
mail-order business. The friend comforted him with the assurance that
there are many buyers who prefer to be visited by salesmen and to have
goods displayed before them. This fact, he held, would always give an
adequate basis for the prosperity of a house that employed the salesman
method of distribution.
Neither the fear nor the assurance here expressed reveals a scientific
attitude of mind. Careful analysis shows, on the one hand, that the
mail-order policy is not the most effective means of cultivating
intensively a well populated territory. On the other hand, it shows
that the expense of sending salesmen to distant points in sparsely
populated areas more than absorbs the profits from their sales.
Individual concerns have arrived at these conclusions by experiment and
accurate cost-keeping and have succeeded in reaching a scientific
decision as to which territories should be cultivated by salesmen and
which ones should be covered exclusively through advertising and the
distribution of catalogues and other literature.
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