EMPLOYEE REPRESENTATION 
of manual workers, as the result of changes which the factory system 
has wrought, has become the heritage of administrative and manage- 
rial forces. The manager of today is engaged mn constructing and 
continually perfecting a business concern rather than an article of 
furniture or of wearing apparel. Unless he keeps it a going concern, 
his fellow craftsmen are likely to regard him as a failure. 
The passing of the pioneer stage of American industry has impressed 
upon owners, as well as upon managers, respect for intelligent ap- 
preciation of long-run considerations. Continuance of income is as 
vital a matter to investors as to those who are paid for labor per- 
formed. The exploitative economy of an earlier era no longer suf- 
fices now that natural resources and markets appear to have limits. 
Policies and methods are seen to be necessary which will avoid mis- 
directed production, reduce costs, keep goods flowing from producing 
enterprises to consumers, and maintain the purchasing power which 
is a condition precedent to demand for goods. 
This larger concept is one which recognizes the social function of 
industry as opposed to the older view which conceived of business as 
but an open sesame to private aggrandizement. There is evident in 
the world of industry an evolution in ethical norms not unlike that 
which has characterized the efforts of statesmen to eradicate the 
“spoils system” from politics. 
After resources had been appropriated and title taken by individuals; after 
enterprise by new generations became possible only with borrowed capital; after 
materials for enterprise could be secured only by purchase with the capital; 
after large-scale industry and division of labor with the necessity for coérdinated 
direction developed; after recognition of such facts of experience as these, new 
concepts concerning the individual and social obligations of enterprisers found a 
place. It became apparent that as a matter of necessity, as a matter of survival, 
enterprise must render a service to everyone concerned—capitalist, enterpriser, 
workers, consumers; and that service must consist of creating the satisfactions 
which will maintain not only the developing industrial order but also the de- 
veloping social order—the principal satisfaction being livelihood. . . . . In- 
dustry, sensing a change from dominance of material things as survival asset to 
the necessity of some system of relationship as survival asset, is learning to think 
in terms of a common service system.? 
2 Person, H. S., “Major Problems of Administration,” in Metcalf, H. C., ed., 
Scientific Foundations of Business Administration, p. 223. 
62