FORMS OF INDUSTRIAL ORGANIZATION
OUTSIDE the contribution of nature to man's welfare in an industrial society capital and labor are the most important factors in the creation of products. Consequently the forms which the two factors take on in their organization have a vital influence upon the industrial activities of the community. The two differ materially, however, in the type of organization which they assume. Capital passes gradually from the partnership through the joint-stock company and corporation to the giant combination. Its organization form is entirely industrial in character and results. On the other hand the organization of labor outside of all consideration of the division of labor, functions which already have been discussed in a previous chapter, is social in character, touching more or less directly through the adjustment of wages the regulation of the conditions of employment and the production of commodities. The form of organization which labor takes on appears in the local trade union, the national union, and the Federation of Labor unions, and sometimes in an effort to eliminate the evils of capitalistic control of industries in cooperation.
The two groups of industrial organization are constantly meeting in the every-day conduct of production. The owners of capital, whether they have organized as a partnership or a corporation, are the directors of industry controlling the purchase of materials, the use of machinery,