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
4. _The increased efficiency of industry has been accompanied by the
specialization of control._ The crude, early methods of enforcing
harmony in industry were slavery and political subordination. Under
division of labor, with free workmen, industry is ruled by impersonal
economic forces that bring the less capable under the direction of the
more capable. This work is rudely done, no doubt, but the penalties of
bad direction of labor and capital are so great that blundering cannot
be permitted. The man who shovels dirt must do it at the right time and
place if, in this complex society, it counts for something and gives the
effort value. If he cannot choose well for himself, he comes under
direction. The average man cannot decide nearly as well here as he could
on a desert island where and when to put in his spade. There it would be
to raise food for the current year; here it may be to dig a canal or a
tunnel whose uses will not become actual for many years. The more
distant the end sought, the more difficult is the choice. To every
worker, according to his personal skill, is left some degree of choice
in the method of his work, but in a large part of industry the range of
choice is very narrow. The man with the shovel and the man with the hoe
come under direction.
§ II. QUALITIES OF A BUSINESS ORGANIZER
[Sidenote: Technical knowledge and skill]
1. _The organizer and director of industry must first have technical
knowledge of methods, processes, and materials._ The qualities required
in the direction of industry are implied in the foregoing section, but
they may be more specifically enumerated. Knowledge of technical
processes is relatively more important in the direction of industry in
the earlier stage. In the single independent producer it is the quality
most desirable. He must know the quality of the materials with which he
works and the best modes of combining them. But, as industrial
organization becomes more complex, only a broad knowledge and ability to
judge of the results of different processes and to compare plans are
necessary in the organizer. He can hire the technical knowledge of
details required in the larger management of business. Draftsmen,
engineers, pattern-makers, men with far more education and capacity in
certain lines than the business manager, work under his direction.
[Sidenote: Judgment of men]
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