CONCEPT OF THE CORPORATION Peter F, Drucker With a new introduction by the authorCONTENTS INTRODUCTION TO THE TRANSACTION EDITION ix PREFACE TO THE 1983 EDITION PREFACE TO THE ORIGINAL EDITION I. CAPITALISM IN ONE COUNTRY Capitalism in one country. The profit motive. Big, business. The large corporation as autonomous. Its function in Can the two be harmonized? Idealism and pragmatism, leading to totalitarianism. II. THE CORPORATION AS HUMAN EFFORT 1. ne for Production Es in the war. The problem of leadership. Recruiting ciallts and “generalisis.” Policy and initia te Ay of efficiency. . Decentralization General Motors’ policies, Line and staff. An essay in federal- ism, Central divisional management. Service staffs, Bo- nuses. The “Sloan meetings.” Freedom and order, Base pricing. Competition in the market. How Well Does It Work? ‘The conversion to war production. Reconversion to Peacetime work. Isolation of the top executives. Customer relations. Dealer relations, Community relations. General public re- ions, ¥v xiii XXV 1 88 41 724. The Small Business Partner 98 New-car sales and the used-car market. The dealer's franchise. Loans to dealers. 5. Decentralization as a Model? 115 Decentralization for other industries. The Fisher Body Divi- sion. Chevrolet. The competitive market check. The produc- tion of leaders. III. THE CORPORATION AS A SOCIAL INSTI- TUTION 130 1. The American Beliefs 130 Equal opportunity. Uniqueness of the individual. “Middle class” jety, Are iti ‘inking’ phasis education, Dignity and! dates tn indusrial taciety, Asssrabiy. line “monotony.” The failure of paternalism. Can the unions jo i? 2. The Foreman: The Industrial Middle Class 163 The foreman. His opportunities. The “forgotten man.” The drive to unionize foremen. 3. The Worker 176 The worker's industrial citizenship. Training. The plant com- com. munity. Lessons of the war. Flexibility of mass The worker's pride and interest. ws. lnventivenens, ial gad. gad Fiche Suggestion plans. Plant services. The wage issue. against General Motors. Profits, pricing, and The annual wage. Collectivism not the answer. Worker's participation in management. IV. ECONOMIC POLICY IN AN INDUSTRIAL SOCIETY 209 1. The “Curse of Bigness” 209 Socie take corporation The ol theoriee sip and demand. edn To regu ‘The “curse of bigness.” and iechologieal nese necessity. General Motors service staffs. Policy-making and long-term interests. Social stability. 2. Production for “Use” or for “Profit”? 230 Risks. Expansion. ts, The profit motive, “Creative instincts.” Capi for power, The market theory. Price. Economic wants. “Economic ” Social needs. The market as yardstick. Individual wants. socialist coun- terargument. Self-interest.