We see now that the process of the many becoming one is not a metaphysical or mystical idea; psychological analysis shows us how we can at the same moment be the self and the other, it shows how we can be forever apart and forever united. It is by the group process that the transfiguration of the external into the spiritual takes place, that is, that what seems a series becomes a whole. The essence of society is difference, related difference. "Give me your difference" is the cry of society to-day to every man.
American academic (1868-1933)
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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.
It is a mistake to think that social progress is to depend upon anything happening to the working people: some say that they are to be given more material goods and all will be well; some think they are to be given more "education" and the world will be saved. It is equally a mistake to think that what we need is the conversion to "unselfishness" of the capitalist class.
Early psychology was based on the study of the individual; early sociology was based on the study of society. But there is no such thing as the "individual," there is no such thing as "society"; there is only the group and the group-unit — the social individual. Social psychology must begin with an intensive study of the group, of the selective processes which go on within it, the differentiated reactions, the likenesses and unlikenesses, and the spiritual energy which unites them.
What then is the essence of the group process by which are evolved the collective thought and the collective will? It is an acting and reacting, a single and identical process which brings out differences and integrates them into a unity. The complex reciprocal action, the intricate interweavings of the members of the group, is the social process.
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.
Since I have been in England I have been asked several times why I am studying business management. I will try to tell you. Free to choose between different paths of study, I have chosen this for a number of reasons. First of all, it is among businessmen (not all, but a few) that I find the greatest vitality of thinking to-day, and I like to do my thinking where it is most alive. I said last winter to a Professor of Philosophy: 'Do you realize that you philosophers have got to look to your laurels, that businessmen are doing some very valuable thinking and may get ahead of you?' And he acknowledged this, which I think was a very significant concession. Moreover, I find the thinking of businessmen to-day in line with the deepest and best thinking we have ever had. The last word in science—in biology—is the principle of unifying. The most profound philosophers have always given us unifying as the fundamental principle of life. And now business men are finding it is the way to run a successful business. Here the ideal and the practical have joined hands. That is why I am working at business management, because, while I care for the ideal, it is only because I want to help bring it into our everyday affairs.
Certain changes have been going on in business practice which are destined, I believe, to alter our thinking fundamentally. I think this is a contribution which business is going to make to the world, and not only to the business world, but eventually to government and international relations. Men may be making useful products, but beyond this, by helping to solve the problems of human relations, they are perhaps destined to lead the world in the solution of those great problems of coordination and control upon which our future progress must depend.
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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.
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.