Brandeis on Business

Page 22

20

WORLD VIEW

surpassed all others. If industrial democracy—true coöperation—should be substituted for industrial absolutism, there would be no lack of industrial leaders. Other People’s Money, The Oligarch Inefficient, pp. 207-208 President Wilson has said wisely: “No country can afford to have its prosperity originated by a small controlling class. The treasury of America does not lie in the brains of the small body of men now in control of the great enterprises… It depends upon the inventions of unknown men, upon the originations of unknown men, upon the ambitions of unknown

importance. He did, though, observe that a motivated, fulfilled worker was also a more productive one. For Brandeis, although its ostensible aim was greater efficiency, scientific management was intimately linked with the development of “industrial democracy.” The resulting gains in productivity— which he placed on a par with the Industrial Revolution—would be instrumental in satisfying demands for the better wages, hours and working conditions that were fundamental to the life of citizens in a democratic society. To achieve all this, however, it was necessary to win the confidence of the worker that profits were in fact being distributed equitably.

men. Every country is renewed out of the ranks of the unknown, not out of the ranks of the already famous and powerful in control.” Other People’s Money, The Oligarch Inefficient, p. 223

THE NEW SCIENCE OF MANAGEMENT

Brandeis acknowledged that there were also dangers in the application of scientific management, from which workers needed to be protected. He was aware that it would meet resistance from both workers and union representatives, not least because of the way particular employers chose to implement it. Convinced of the benefits of scientific management, however, Brandeis saw the issue as one of persuading both employers and workers that there was gain in its proper application.

In the essay “Business—A Profession” (quoted in full above), Brandeis argued that the longstanding distinction between the professions and business should be abandoned. The establishment of business schools in universities was evidence that business was taking its place beside the “learned professions,” together with scientifically based disciplines, such as engineering and agriculture. One of the reasons for this was that the increasing complexity and scope of the business world required a scientific approach. It was no longer good enough to be shrewd; success in business demanded “new and broader fields of knowledge.”

Scientific management seeks to do for industry

In Brandeis’s day, “scientific management” had a narrower application than “management” does in ours, connoting organizational efficiency in the work place. For Brandeis, however, the techniques of scientific management were not just about maximizing profit. A key measure of their success was the extent to which they improved the lot of the worker, increasing his self-respect and enabling his development. The financial gains that flowed from more motivated workers were to Brandeis of lesser

The introduction of scientific management in business

systematically and comprehensively in conserving effort, materials and capital, what heretofore has been done sporadically and partially. Its engineers refuse to recognize that there is any legitimate sphere in industry for ignorance or lack of skill. Ignorance and unskilfulness necessarily spell waste,—and waste is sinful, whether it be due to lack of training, of selection, of equipment or of planning. Business—A Profession, Organized Labor and Efficiency, p. 40

has, wherever applied, made regularity of employment its prime aim. It could not be otherwise; because irregularity is the most potent cause of waste, not only of labor, but of plant and of capital. The existence of irregularity of employment is one of the greatest reproaches to modern business. It proves that the management has not done its part; and the very essence of scientific management is to relieve the workingman from these


Issuu converts static files into: digital portfolios, online yearbooks, online catalogs, digital photo albums and more. Sign up and create your flipbook.