Investing 34

homemoney to purchasehow But they are dead, meaningless words unless a sense of high purpose is breathed into them. A business is the reflection of the people within it. J Management fo)' Whom? IN the last twenty years, during which the Second World War was the great catalyst, the role of management, especially in Western Europe, has changed profoundly. In thinking about management ends it is essential to examine how this change has come about. Management, instead of being the task of men and women who made their decisions in an atmosphere pretty well insulated from the political, economic, and social conditions around them, has had to change course entirely. It is not overstating the case to describe the presentday conception of management as a social science. Technical, commercial and even financial factors are no longer the only and no longer indeed the really compelling ones which management has to understand before taking action. It is the human motivations-the motivations of the managed and the markets even of the political masters that management must grasp if it is to succeed in the new conditions. Why is this and how has all this come about? To appreciate what has happened since the late thirties it is necessary to look at the question from three angles political, economic, and social and relate the vast developments in each field to the management question. Stating briefly the chief political developments: the Second World War brought about the emergence of two great blocs, the East and the West, and, concurrently, the political weakening of the former European imperialist powers. This shift in the balance of world power has had the effect of making a weakened Europe far more interested in economic development than in its former preoccupation with political and administrative matters both within itself and visavis Asia and Africa. Although the rivalry between Russia and the U.S.A. for the allegiance of the world dominates the political scene the awakening political consciousness of the masses everywhere has had a progressive effect in the renewal of systems of government. Traditional systems have given place to new forms which, more often than not, have a basis in emotion and unquestioned authority: dictators, neardictators, and military groups have been having their day. While the European nations have been contracting their political power so have the hitherto European dominated 'colonies' begun to emerge politically and industrially. Nationalism has become a creed of incalculable importance. It is, perhaps, an inconsistency that combined with this political incoherence, which is a world phenomenon, economic development has steadily advanced. Reasons are not too hard to see. The war accelerated to a staggering extent technological development which in turn means a rise in productivity and an increase in available energy. Labour has been divided to a greater degree and, on the distribution front, channels)have been lengthened to look after the widening distances between markets and centres of production. interior Planning