What is a leaven by itself? It is the worst of migrations, pure 28 Prof. Jay W. Forrester of Institute of Tech- bitterness. nology, as quoted (p. 78) in reprint of article from vol. 1, no. 3, Spring of 1959 of California Management Review, by Dr. Thomas H. Car- "The leaven must stimulate, raise the dough, be to it like a roll, Vice President of the Ford Foundation, writing on "Towards a great internal quarrel. The heavier the dough, the more violent Liberal Education for Business." must its effort be, the quicker its incitement, but the effort and 29 From "Memorandum for ASME," with letter of Jan., 1960, to the incitement must take place within the dough, and the leaven co-editors from Dr. Marshall E. Dimock, All-University Head of Department of Government, New York University Graduate School of must accept the dough for what it is because they are destined to Arts and Sciences. belong to each other" [44], 30 Letter—and appended memo and extensive bibliography—of Dec. 15, 1959, to co-editors from Prof. Charles R. Dechert, De- partment of History, Government and Philosophy, Purdue Univer- References sity. 1 Letter, Dec. 4, 1959, Luther Gulick to the co-editors of this 31 Memo of Dec. 22, 1959, on "Ten Years' Progress in Manage- ASME Report. ment Development" by T. E. Clemmons, Director Executive De- 2 Letter from Zay Jeffries, dated April 22, 1953, subsequently velopment, IBM Corporation. quoted on p. 95 of "New Frontiers for Professional Managers," by 32 Memo of Dec. 18, 1959, to co-editors from Melvin L. Hurni, Ralph J. Cordiner; published by McGraw-Hill Book Company, Inc., Manager—Operations Research & Synthesis Consulting Service,

New York, N. Y., to record the first annual McKinsey Foundation Co., New York, N. Y. Downloaded from http://asmedigitalcollection.asme.org/manufacturingscience/article-pdf/83/3/276/6495257/276_1.pdf by guest on 28 September 2021 Lectures at Columbia University, in 1956. 33 Letter of Dec. 2, 1959, to co-editors from Col. Lyndall F. 3 Definition (a) of "Science" and (b) of "Profession," The Win- Urwick, London. ston Simplified Dictionary, 1935. 34 Letter of Dec. 21, 1959, to co-editors from Dr. Peter F. 4 From p. 4 of "Administration: Its Purpose and Performance," Drueker, Professor at New York University, author and individual by Dr. Ordway Tead, published by Harper & Brothers, New York, Management Consultant. N. Y., 1959, to record the second annual Ford Distinguished Lectures 35 Letter of Dec. 8, 1959, to co-editors from Prof. M. J. Jucius, at New York University. Department of Business Organization, The Ohio State University. 5 Pamphlet, "Spiritual Experience in Administration"; pub- 36 Address by Very Reverend Felix A. Morlion, O.P., President lished, 1951, The American University Press, pp. 14-15. of the International University of Social Studies, Pro Deo, at Rome, 6 For example, see the deeply scholarly lecture at the CIOS Italy—at CIPM Luncheon in New York on June 5, 1957. Congress in Paris in 1957 by Col. Lyndall F. Urwiek on "The Life 37 Letter and memo of Dec. 14, 1959, to co-editors from Dr. and Work of Frederick Winslow Taylor," to commemorate the 100th Ralph C. Davis, author and Professor of Business Organization at Anniversary of Taylor's birth; especially pp. 12 to 15 of pamphlet Ohio State University. edition published by Urwick, Orr & Partners Ltd., London, England. 38 From keynote talk on "The Social Background to European 7 Pamphlet, "The Changing Philosophy of Management," by Management," at European Management Congress of CECIOS, at Dr. Erwin H. Schell, 1959 address before Society for Advancement of Torquay, England, Oct. 20-23, 1954, by the late Prof. Jose Management; p. 1 of reprint by Keystone Custodian Funds, Inc., Ortega y Gasset; translated from the German by Hon. Olaf Brann, Boston, Mass. then of the British Institute of Management. 8 Letter Nov. 23, 1959, Malcolm P. MacNair, Lincoln Filene 39 Keynote address at Xth International Management Con- Professor of Retailing at Graduate School of gress at Sao Paulo, Brazil, on February 19, 1954; by the late Hen- Business Administration, to co-editors. ning W. Prentis, Jr., Chairman of the Board, Armstrong Cork Co., 9 Paper on "Managerial Decision-Making," at Annual Fall Con- Lancaster, Pa. ference, Society for Advancement of Management, New York, N. Y., 40 Memorandum in July, 1953, by Albrecht M. Lederer, President October, 1958, by Harold F. Smiddy. of Council for International Progress in Management (USA) Inc., 10 Dr. Norbert Wiener, "Human Use of Human Beings: Cyber- the affiliate national management committee of CIOS. netics and Society," Houghton Mifflin Company, Boston, Mass., 41 Excerpts from highly condensed summary of working papers 1950. of some Management Research—from 1955 to 1960—still in process 11 Dr. Donald K. David, in interview on Dee. 16, 1959, with of development at this writing by Edward D. Kemble, Manager— co-editors of this ASME Report. Management Research Service, and Hasan Ozbekkan—Consultant, 12 Chart, "The Work of a Professional Manager," from Book Management Research, General Electric Management Research & Three (after p. 232) of series on "Professional Management in Gen- Development Institute, Crotonville, Ossining, N. Y. eral Electric," (1954); limited copies made available to United States 42 Article on "The Conditions of Success," by Dr. Jacques business school reference libraries in 1959. Barzun, in Vogue magazine, March 1, 1960. 13 Article by Dean Aeheson in New York Times Magazine, Oct. 11, 43 Proceedings of Annual Meeting, 1959, of Academy of Manage- 1959, on "Thoughts About Thought in High Places." ment at Washington, D. C.; paper (p. 23) by Harold F. Smiddy, 14 Letter to co-editors of this Report, Dee. 4, 1959, from Vice President, Management Consultation Services, General Electric Dr. , Executive Vice President of Thompson Ramo Company, New York, N. Y. Wooldridge Inc. 44 From "One Sky to Share," by Father R. L. Bruckberger, P. J. 15 Inaugural talk by Raul Saez, General Manager of ENDESA Kennedy & Sons, New York, N. Y., 1952; pp. 147-148. (large Chilean electric power system) and Chairman of ICARE; at first PACCIOS Management Congress, Sao Paulo, Brazil, November 12, 1956. 16 Article by Dr. Sumner H. Slichter, on "Basic Trends in the DISCUSSION Economy and Effect Upon Securities," reprinted from The Commer- Ralph C. Davis3 cial and Financial Chronicle, November 15, 1956; pp. 3, 4. 17 Urwick Lecture reprint, reference [6], p. 11. The author of this paper is a mature experienced executive and 18 Book "The Two Cultures and the Scientific Revolution," by management scholar. It is difficult according^ to find areas of C. P. Snow, Cambridge University Press, New York, N. Y., 1959. disagreement with him. One must agree, for example, that man- 19 Article from Fortune magazine for August, 1957, by Henry R. Luce, entitled: "The Character of the Businessman," p. 108. agement is an emerging profession; that it has a long way to go 20 "New Frontiers for Professional Managers," reference [2], pp. before achieving professional status and certification. On the 16-17. other hand a constructive contribution would require the de- 21 Letter Nov. 30, 1959, to co-editors from George R. Hobart, lineation of some points of difference. These differences of opin- Vice-President—Administration, Worthington Corporation. ion would have to do chiefly with the nature and requirements for 22 Letter Nov. 24, 1959, to co-editors from AVilliam R. Spriegel, Professor of Management, The University of Texas. professionalism, their meaning and significance in the case of the 23 See reference [11]. field of management, or related considerations. Perhaps we 24 Letter Nov. 25, 1959, to co-editors from Mr. Allen of Louis should begin, therefore, with a brief review of the requirements A. Allen Associates, Palo Alto, Calif. for the development of a professional field. 25 See reference [4], p. 71. 26 Adapted from a letter of April 21, 1960, by Dr. Howard W. There is some substantial agreement concerning the nature of Johnson, Dean of the School of Industrial Management at Massa- these basic requirements. Most professional people would chusetts Institute of Technology. agree probably that a professional field must have: 27 Book on "Facing the Future's Risks," edited by the late Dr. Lyman Bryson of Columbia University, Harpers, 1953, p. 1. 3 Ohio State University, Columbus, Ohio.

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Copyright © 1961 by ASME 1 Service objectives that are recognized and accepted by the A third concept of the objective may be called the "Balanced members of the profession. Best Interest" concept. For example, the author quotes Presi- 2 A basic philosophy that can serve as a source of value con- dent Ralph J. Cordiner of General Electric as saying: "The cepts, and as a basis for effective thinking. professional approach requires, in fact, a dedication of the man's 3 A code of ethics for the guidance of the members of the pro- self and service, not oidy to the owners of the business through fession in what constitutes correct professional conduct. his board of directors, but also as a steward to the company's cus- 4 A basic body of professional knowledge, properly organized tomers, its industry, its employees, and to the community at large. and classified, that can be taught. The professional manager must consciously place the balanced 5 A logic of effective thinking for the solution of problems that best interests of those ahead of his own personal interests...." are found in the particular professional field. This concept considers all of the interests that may be effected by 6 Adequate organization and facilities for research in the field. the operation of a business organization to be its primary objec- 7 Recognition by the members of the profession of their tives. It would appear to violate the principle of paucity in the obligations to conform voluntarily to the requirements of the pro- selection of objectives. When many objectives are designated fession's basic philosophy, including its code of ethics. as the principal objectives of an organization, it is likely that 8 Acceptance and support of the field by the general public, as none of them will be accomplished well. A fourth concept might Downloaded from http://asmedigitalcollection.asme.org/manufacturingscience/article-pdf/83/3/276/6495257/276_1.pdf by guest on 28 September 2021 one in which professional competence, together with effective be entitled "The Economic Service" concept. It is the one that farsighted leadership of thought and action, are necessary for the this commentator favors. It merely says that the rights of pri- promotion and protection of the public interest. vate property and private capitalism create certain corresponding 9 Control of admission to the professional field, or of rec- responsibilities and obligations for the private enterprises. These ognition as a professional member, on the basis of criteria of pro- have to do with a continuing contribution to an increasing stand- fessional competence that are generally accepted. ard of living for our citizens. The general public is composed 10 Some organization of professional practitioners and ed- largely of all customers of all business organizations everywhere. ucators in the field. This organization should be able to promote The values provided by those business organizations constitute the development of the field, take appropriate disciplinary' largely the economic interests of the public. The primary ob- action with or without the concurrence of the state, and engage jectives of the business organization are, accordingly, satisfac- in or promote professional adult education in its field. tions of customer needs with goods and services of the kind de- sired. These must be of an acceptable quality rendered when Limitations of time and space preclude any thorough discus- and where wanted. These values must be provided at a price sion of these basic requirements, This commentator will con- that the public will pay, and at a cost that will leave the organiza- fine his remarks to a few points where he may be able to amplify tion with a competitive profit. These differences in concept of or extend Mr. Smiddy's analysis. the business objectives can result in some wide differences in the A good place to begin might be with the objectives of a profes- emphasis that is placed on the various functions of the business sion. These are certain service values. These are values that organization. Furthermore, the decision as to the primary are needed by individuals whom we may call patients or customers, objectives of the business organization can change its entire char- or by organizations for whom the professional man may work, acter. If certain social objectives of the business organiza- either as an employee or a consultant. The objectives of a busi- tion are placed ahead of its economic objectives, for example, ness profession, accordingly, are determined by the objectives of the business organization tends to be changed from an economic in- the business organizations that must be served. There are some stitution into a social agency. If the public's interest in the busi- wide differences of opinion, however, concerning what the general ness organization is chiefly in its ability to serve the economic objectives of the business organization should be. There is, first, needs of the public, then obviously, the business organization will the point of view of the social or beliavorial scientist. The fail to accomplish what the public regards as its primary mission. author quotes Paul F. Douglass as saying that scientific man- Be that as it may, it will be difficult to develop a profession agement is ".. .a better and better way of doing things by first of business management until the general public agrees on what making better and better people. .. .Our job is to make people; should be the basic objectives of a business organization. We our by-product is things...." This makes human development may then be able to agree on what should be the basic objectives the primary objective of the business objective. There is, how- of a profession that serves the business organization. ever, another school of thought that says that the objective of the business organization is profit. This concept emphasizes the Harold Smiddy's paper has brought out many other points personal interest of owners and general executives. It makes of fundamental importance. Limitations of time and space profit the primary objective of the business organization placing prevent a discussion of them here. It is hoped that his paper it ahead of our obligations to the customer, or to other interests. will stimulate the widespread discussion that it deserves.

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