THE ROLE OF MANAGEMENT
The dynamic element in every business--A distinct and a leading group--The emergence of management--The free world's stake in management.
THE manager is the dynamic, life-giving element in every business. Without his leadership the "resources of production" remain resources and never become production. In a competitive economy, above all, the quality and performance of the managers determine the success of a business, indeed they determine its survival. For the quality and performance of its managers is the only effective advantage an enterprise in a competitive economy can have.
Management is also a distinct and a leading group in industrial society. We no longer talk of "capital" and "labor"; we talk of "management" and "labor." The "responsibilities of capital" have disappeared from our vocabulary together with the "rights of capital"; instead, we hear of the "responsibilities of management," and (a singularly hapless phrase) of the "prerogatives of management." We are building up a comprehensive and distinct system of "education for management." And when the Eisenhower Administration was formed in 1952, it was formed consciously as a "Management Administration."
The emergence of management as an essential, a distinct and a leading institution is a pivotal event in social history. Rarely, if ever, has a new basic institution, a new leading group, emerged as fast as has management since the turn of this century. Rarely in human history has a new institution proven indispensable so quickly;