The Principles of Economics, with Applications to Practical ProblemsFetter, Frank A. (Frank Albert)
General
The Principles of Economics, with Applications to Practical Problems
Fetter, Frank A. (Frank Albert)
Economics
2. _When men work in an associated group, the direction of effort
becomes relatively more important._ The first and simplest advantage of
association is working in unison. Men unite their muscular efforts for a
single task, and accomplish what is impossible to them working singly.
But when many work in unison, the right selection of time and way is of
greater importance; a mistake will waste more materials and agents. If
association is to yield its advantages, there must be division of labor;
hence harmony of effort, hence agreement or direction. While the gain of
well-directed association is large, the waste of ill-directed effort is
greater, when specialization has taken place, than with isolated
workers. Most communal societies have failed because of the lack of a
good head. The few exceptional successes have been due to the presence
of a man of superior ability, such as George Rapp of the Harmonist
Community, who, had he lived in this day, could have become easily the
head of a great business corporation.
[Sidenote: Direction of interrelated groups]
3. _Where various industrial groups are associated, direction becomes
still more important._ In the single group it is an internal harmony
alone that is needed. The work of a dozen men must be so arranged that
each is in his fitting place. But as this group comes into contact with
others, the relationship becomes two-fold, and there must be both
internal and external harmony. The more complex the economic
organization of society, the more the chance of mistake and the more
injurious are the mistakes to a wide range of interests. Large amounts
of capital and labor can be rapidly lost through lack of wise direction
of associated groups.
[Sidenote: Greatest need now of capable direction of industry]
Public-domain text, read in full here on John Shaqi.
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