Power is not a pre-existing thing which can be handed out to someone, or wrenched from someone. We have seen again and again the failure of "power" conferred. You could give me dozens of cases. The division of power is not the thing to be considered, but the method of organization which will generate power.
American academic (1868-1933)
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There are three main ways of dealing with conflict; domination, compromise and integration. Domination, obviously, is a victory of one side over the other. This is the easiest way of dealing with conflict, the easiest for the moment but not usually successful in the long run, as we can see from what has happened since the War.
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Democracy is a great spiritual force evolving itself from men, utilizing each, completing his incompleteness by weaving together all in the many-membered community life which is the true Theophany. The world today is growing more spiritual, and I say this not in spite of the Great War, but because of all this war has shown us of the inner forces bursting forth in fuller and fuller expression.
As the psychic coherence of the group can be obtained only by the full contribution of every member, so we see that a readiness to compromise must be no part of the individual's attitude. Just so far as people think that the basis of working together is compromise or concession, just so far they do not understand the first principles of working together.
The third reason why I am working at business management is because I believe in control, and so do our most progressive business men. I believe in the individual not trusting to fate or chance or inheritance or environment, but learning how to control his own life. And nowhere do I see such a complete acceptance of this as in business thinking, the thinking of more progressive business men. They are taking the mysticism out of business. They do not believe that there is anything fatalistic about the business cycle that is wholly beyond the comprehension of men; they believe that it can be studied and to some extent controlled.
You may wonder why I have talked of government, and of the League of Nations, instead of spending all my hour on leadership in industry. I have done it deliberately, because it seems to me a fact of very great significance that we are finding the same trend in all these different fields. It reinforces us in our conviction that we are moving in harmony with the deeper and more vital forces of human progress.
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Another reason is because industry is the most important field of human activity, and management is the fundamental element in industry. It is now generally recognized that not bankers, not stockholders, but management is the pivot of business success. It is good management that draws credit, that draws workers, that draws customers. Moreover, whatever changes should come, whether industry is owned by individual capitalists, or by the State, or by the workers, it will always have to be managed. Management is a permanent function of business.
THE subject I have been given for these lectures is The Psychological Foundations of Business Administration, but as it is obvious that we cannot in four papers consider all the contributions which contemporary psychology is making to business administration — to the methods of hiring, promoting and discharging, to the consideration of incentives, the relation of output to motive, to group organization, etc. — I have chosen certain subjects which seem to me to go to the heart of personnel relations in industry. I wish to consider in this paper the most fruitful way of dealing with conflict. At the outset I should like to ask you to agree for the moment to think of conflict as neither good nor bad; to consider it without ethical prejudgment; to think of it not as warfare, but as the appearance of difference, difference of opinions, of interests. For that is what conflict means — difference. We shall not consider merely the differences between employer and employee, but those between managers, between the directors at the Board meetings, or wherever difference appears.
One of the most interesting things about business to me is that I find so many business men who are willing to try experiments. I should like to tell you about two evenings I spent last winter and the contrast between them. I went one evening to a drawing-room meeting where economists and M.Ps. talked of current affairs, of our present difficulties. It all seemed a little vague to me, did not seem really to come to grips with our problem. The next evening it happened that I went to a dinner of twenty business men who were discussing the question of centralization and decentralization. Each one had something to add from his own experience of the relation of branch firms to the central office, and the other problems included in the subject. There I found L hope for the future. There men were not theorizing or dogmatizing; they were thinking of what they had actually done and they were willing to try new ways the next morning, so to speak. Business, because it gives us the opportunity of trying new roads, of blazing new trails, because, in short, it is pioneer work, pioneer work in the organized relations of human beings, seems to me to offer as thrilling an experience as going into a new country and building railroads over new mountains. For whatever problems we solve in business management may help towards the solution of world problems, since the principles of organization and administration which are discovered as best for business can be applied to government or international relations. Indeed, the solution of world problems must eventually be built up from all the little bits of experience wherever people are consciously trying to solve problems of relation. And this attempt is being made more consciously and deliberately in industry than anywhere else.
Group organization is to be the new method in politics, the basis of our future industrial system, the foundation of international order. Group organization will create the new world we are now blindly feeling after, for creative force comes from the group, creative power is evolved through the activity of the group life.