CONCEPT
OF THE
CORPORATION
Peter F, Drucker
With a new introduction by the authorCONTENTS
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
724. 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.