American academic (1868-1933)
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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.
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.
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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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.
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.
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.
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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.
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.