employment, executive control, and when we find that lessons in statistics, advertising, moving materials, or executive management, learned in connection with a factory, can be carried over with but slight adaptation to the management of a store, we at once get a manageable body of material on which to work.

Recognition of the principle of likeness and of its corollary, analysis by function rather than by trade, marks perhaps the greatest single step yet taken in the development of scientific business. The principle, however, has its dangers. Analysis by function implies functional specialization in research and a similar tendency in business practice. Without specialization there can be no adequate analysis of any large and complex body of facts. With too intense specialization there is always danger that the assembling and digesting of facts, and especially the conclusions drawn from them, will reflect some peculiar slant of an individual or of a particular specialty.

The accountant does not always go after the same facts as the sales manager, and even with the same facts the two are likely to draw quite different conclusions as to their bearing on a general policy. Specialization, too, may result in setting an intense analysis of one group of facts over against a very superficial view of other facts—or again, an intense analysis of the same facts from one viewpoint with failure to consider them from another, and perhaps equally important, viewpoint. Unless these weaknesses are corrected, the business will lack balance; the work of departments will not harmonize; there will be no fundamental policy; goods sold on a quality basis will be manufactured on a price basis—all of which leads to disastrous results.

Scientific method is the first article in the creed by which business training must be guided. The growing necessity for critical and searching analysis of business problems, justifies all the effort we can put forth to develop plans for training into a structure of which scientific method shall be the corner-stone. But analysis is not all. Following analysis must come synthesis. Somewhere all the facts and conclusions must be assembled and gathered up into a working plan. It is this task of leveling up rough places in the combined work of department specialists, that puts the training and insight of both the executive and the director of research to the most severe test. It is a mark of a well-trained executive that in performing his task he instinctively follows principles instead of trusting alone to momentary intuitions, however valuable and necessary these may be.

And here it is that the second article in the creed of business training appears. The executive's task is primarily to adjust human relations, and the nature of the principles by which these adjustments are made, determines the relations of a concern to its laborers, to competitors, to customers, and to the public. If the executive comes to his task without a mind and spirit trained to an appreciation of human relations, he is not likely so to synthesize the work of his subordinates as to make for either maximum efficiency within the business or its maximum contribution to the life of the State.

The term "executive" in large and highly organized concerns is likely to mean the head of a department. A large proportion of the department heads now in business are men of purely empirical training. Their horizon is likely to be limited and to center too much in the departmental viewpoint. They may perhaps be able to see the whole business, but if they do, they will probably see it exclusively from the inside. There is frequently nothing in their business experience that has made them think of the great forces at work in society at large. As the bulk of business has been organized in the past, there has been no department in which, automatically and in the regular course of business, a view looking outward is brought to bear. If it came at all, it was reflected back from the larger relations and the larger social contacts of the head of the business. Many general executives have been promoted from the position of head of department at a period in life when their habits of thought had become crystallized, and it was not natural that they should entirely change those habits with the change in their responsibilities.

Besides, the economics of competition and a strong group sentiment among business men have tended to make them resist social influences which might react upon the policies of their own business. Superficial conclusions drawn from such experiments as those of Pullman and of Patterson, to which reference has been made, have seemed to justify such resistance and have fortified men in the belief that business and response to social influence should be kept separate in water-tight compartments.

More recently men have been coming to understand the fundamental defects in the Pullman and the original Cash Register plans and have come to realize that even a separate welfare department may be successfully incorporated in a business, if only certain fundamental policies are followed in its management. Still more significant is the view looking-outward and the consequent harmonizing of social and business motives, which is coming in the ordinary development of business policies as a result of their more fundamental analysis.

Perhaps the greatest step toward a fuller consideration of facts on the outside is taken, when a business creates a separate department of employment. It is hard to see how the head of an employment department can have the largest measure of success if he sees only the facts on the inside. A comprehensive application of scientific method to problems of employment leads a long way into analysis of the social facts affecting the people who are employed.

From different angles the same thing is true in other departments of business, notably so in the case of advertising and sales. One of the most obvious outside facts which affect sales, is the location and density of the population, and yet it is a fact which frequently is neglected. Another outside fact, which ultimately advertisers will have to consider, is the consuming power of population. They have been very keen to study our psychological reactions, and in doing this they have undertaken the entire charge of the evolution of our wants. But they have not always gone at their work from the long-time point of view. Sometime they will have to take account of the fact that unwise consumption impairs efficiency and depletes the purchasing power from which advertisers must be paid.

The next step in the scientific analysis of business is to provide for more ample analysis of facts on the outside. Weakness at this point explains the defects in many plans for the welfare of employees, it explains the defects in scientific management, mentioned above, and it explains many other shortcomings in projects for increasing the effectiveness of business.

But men who approach business from the standpoint of university research are not free from the same danger. In their effort to orient themselves with the business facts, they get the business point of view and run the risk of centering attention too much on materials and material forces. Even psychological reactions of men and women may be analyzed from the standpoint of their mechanics, without ever going back to those impelling motives which have their roots in the human instincts and complex social reactions of which the men and women are a part.

Approached from the standpoint of scientific method, the field of conflict between different interests in business and between so-called "good business" and "good ethics" becomes measurably narrowed. I do not mean to give science the sole credit for achievements along this line. More frequently advance in moral standards has been forced on unwilling victims through legislation, public opinion, or class struggle, and then men have discovered, as a happy surprise after the event, that "good ethics" was profitable. But science has done