CHAPTER XXI

THE HUMAN RELATIONSHIPS TO BE RECTIFIED IN INDUSTRY

Capital and the Administrative Staff—Capital and the Manual

Workers—The Manual Workers _inter se_—The Administrative

Staff and the Manual Workers—Industry and the Consuming

Community—Industry and the Nation.

Before we can construct any scheme of reform of our industrial system we

must have a clear idea of what is industry. In the prosaic language of

economics it is a purposive production of commodities and services, the

immediate object of those engaged in it being to provide, through the

result of their work, the material means of satisfying their wants and

desires.

Viewed in broad outline, industry will be seen to involve three

fundamental processes:

(i) The combination in due proportion of the five things requisite for

all production, viz., capital, enterprise, organization, labour—both hand

and brain—and natural forces and resources.

(ii) The realisation of the product—industrial work is nowadays useless

unless and until the product is marketed. The amount realized depends

mainly on the public demand for the product, and invariably the cheaper

the selling price, the greater is the demand.

(iii) The division of the realized surplus amongst those associated in

production.

Further, it will also be observed that industry necessarily involves six

fundamental human relationships, the importance of which has been much

neglected in the past.

1. _The Industrial_, i.e. between the classes of persons associated

together in industry:

(_a_) Capital and the Administrative Staff.

(_b_) Capital and the Manual Workers.

(_c_) The Administrative Staff and the Manual Workers.

(_d_) Manual Workers between themselves.

2. _The Social_—between industry and the community.

3. _The National_—between industry and the nation. These relationships

are of paramount importance. The individual is no longer the unit—in

things industrial, it is the group of those associated in production—in

things social, it is the community—in things national, the whole people.

Each small group is included in, and directly reacts on, a larger group.

Labour, in its _Official Policy for Reconstruction after the War_, truly

says: “We are members one of another. No man liveth to himself alone. If

any, even the humblest, is made to suffer, the whole community and every

one of us, whether or not we recognize the fact, is thereby injured.” How

frequently Labour forgets its own irrefutable proposition! The problem

then is so to organize the processes of industry and harmonize the human

relationships involved in it, that to the utmost practicable extent

productive efficiency will be secured, the human qualities of all those

associated in industry recognized, their capacities fully developed and

utilized, their aspirations satisfied, and their respective services

co-ordinated to promote the benefit and happiness of all of them, the

good of the community, and the welfare of the nation.

Capital and the Administrative Staff

Let us first examine the relationship between Capital and the

Administrative Staff. In the Administrative Staff, I include every one

from the managing director down to the gate-keeper. They are the brains

and mechanism of the organization and management, the connecting link

between Capital and Labour. The success of an employer’s business is

dependent on their tact, judgment, and power of governing men, but

Capital has not yet risen to that conception. It has not conceded to the

Administrative Staff a status commensurate with their enormous private

and public responsibilities, nor, except at the very top, adequate

financial recognition. The art of managing men so as to get the best out

of them and secure their cordial co-operation, is generally considered

by Capital to be a customary by-product of technical ability. In truth,

it is a special qualification requiring its own special training,

exceptional attributes of mind and temperament, and particular fibres of

character, of the possession of which technical ability is no criterion

whatsoever. If industry is to progress, Capital must elevate its

conception of the duties of the Administrative Staff and recognize that

administration, even in its lowest branches, is work as skilled as that

of an expert craftsman.

Capital and the Manual Workers

We must next scrutinize the basic industrial relationship between Capital

and the Manual Workers. Permeating it, we find, as the result of the

causes already mentioned, seething discontent and active antagonism—not

cordiality—not mutual confidence, but unreasoning distrust. We see on

both sides black suspicion twisting the motive behind every action, and

the task is to create contentment among the workers, and enlist their

hearty co-operation with employers in the process of production.

The Manual Workers _inter se_

The Manual Workers are far from being a happy family. In this country

all work in every industry is allocated by tradition or Trade Union

agreement to this trade or that trade as its sacrosanct preserve. Woe

betide an unskilled man who invades the industrial territory of a

tradesman! These rigid lines of demarcation of work are the cause of

untold industrial friction and operate most detrimentally to prevent an

employer introducing modern methods or installing time- and labour-saving

appliances. There is no greater need in industry than for a peace-treaty

between the warring Trade Unions under which this system of dividing work

into so many water-tight compartments will be modified.

The Administrative Staff and the Manual Workers

The Administrative Staff has not yet attained to a true conception

of their great part in industry. I often found that, so far as their

relationship to Labour is concerned, they are inclined to regard their

general functions as solely to maintain discipline. The preservation of

robust discipline is a vital matter. Too often discipline is bolstered

up by arbitrary and dictatorial methods, to which means weak men usually

have recourse. That, if not productive of immediate friction, certainly

sows broadcast the seeds of trouble and unrest. The vital matter,

the atmosphere of the shop, is mainly dependent on the conciliatory

personalities of the Administrative Staff. What has to be remembered in

industry is that despotism is not leadership, and arbitrariness is not

good government. “The moral effects of good leadership,” as Professor

McDougall truly says in _The Group Mind_, “work throughout a mass of men

by subtle processes of suggestion and emotional contagion rather than

by a process of purely intellectual appreciation.” This many employers

have yet to learn; they regard courtesy on the part of the Administrative

Staff in dealing with Labour as cowardice, and consideration as

subversive of good discipline. But consideration is the oil which makes

shop wheels go round, and there never was more scope for its application

in industry than at the present time, especially in such things as

interviewing, selecting and taking on, promoting and dismissing men, and

dealing with shop complaints.

Industry and the Consuming Community

Industry as a whole does not appreciate the close relationship between

itself and the community, nor its responsibilities to the community. In

reality industry has to rely on the community for innumerable services,

and for many facilities vital to its existence, and to its prosperity,

and for a market for its product. Yet almost invariably strikes and

lock-outs are called, regardless of the effect upon the consuming public.

In fact, Labour claims the right to use its economic power in furtherance

of its own interests, irrespective of the damage to the community. If,

under compelling necessity, the community attempts to carry on the

services for itself, or provide the commodities of which by organized

strikes it is deprived, it is charged with anti-social conduct, and

condemned for declaring a class-war against Labour, those who assist

being stigmatized as strike-breakers and black-legs. Labour has gone even

further in recent years. In a number of cases it has deliberately adopted

the policy of depriving the community of essential services through

strikes, in order to produce such social hardship as will drive the

community to constrain employers to accept Labour’s industrial demands.

There have also been recent instances of agreements between employers

and Trade Unions—as in the building industry—by which wages have been

forced up to unreasonably high rates simply because those industries

were necessary to the community and, with the knowledge that whatever

the resulting cost of the product might be, the community would have to

pay. At the same time, the community is largely dependent upon industry,

and if the whole of an industry, or each section of it, fulfils its

obligations to the community, the community must perform certain duties

in return. I speak more fully of these later.

Industry and the Nation

Industry will never progress to vigorous and healthy development unless

our conception of the relationship between industry and the nation is

radically revised. That conception to-day is mean, stunted, and utterly

devoid of any power of inspiration. Industry I have defined, in the

language of economics, as the production of commodities and services

for the purpose of satisfying the wants and desires of men. On this

commonplace process, which sounds so dull in definition, and on none

other, the future well-being of our country and the practicability

of further social improvements and reforms depend. Production ought,

therefore, to be regarded as the principal means of advancing the

happiness, social welfare and material prosperity of the nation, and

industry, the chief instrument in that beneficent work, as the highest

and the noblest form of national service.

Labour policy—false and true · 第 2 / 10 章