The Archive · 1930

RATIONALIZATION OF INDUSTRY

Address by Dr. H. H. Kung to Business Leaders Dr, H. H. Kung, Minister of Industry, Commerce vened @ meeting of business leaders and industrial experts at the Bankers Association,. Hongkong Road, on May 26, to discuss ways fand means of establishing & special organ for the promotion of "ration alization" and-scientific management in various industrial and commercial enterprises. Over 150 of Shanghai prominent industrial leaders and experts were present, Dr. H. H. Kung presided over the meeting and doliveved the opening speech which was as follows:—China's industries are still in the infant stage and are far behind those of other leading industrial countries. The problems which we are facing are varied and numerous, The most outstanding ones among these are: (1) The need of applying scientific. methods in. management} (2) The importance of scientific training for the employees; (3) The promotion of efficiency in production andthe elimination of industrial waste in various forms; (4) 'The fostering of the ce-operative spirit, between' management and labour. In order to solve these problems in the most satisfactory way, there required the close ce-operation of industrial leaders, efficiency experts and the Government.

The movement for scientific management first started in' the United States, but gradually spread to many other countries. "It was originated by the American industrial expert, Dr. F. W. Taylor, who has been rightly "called " the "father of scientific: management", For this feason scientific manage: ment is often called "Taylorism,"

The principles were originally worked out with primary reference to the workshop, but they are applicable ina broad way to all departments of management and to all industries. Dr. Taylor advocated that the managers should assume the burden of gathering together all of the traditional knowledge which hi in the past been possessed. by workmen and then of classify tabulating, and reducing knowledge to rules, laws and for-inula for practice. This process involves four major duties, viz. (1) Development of a science for' each clement of a man's work, which replaces the old rule-of-thumb method; (2). Scientific selection, training, teaching and development, of the workman in contrast with the we man's choosing his own work and training himself, as in the past; (3) Hearty ce-operation with the' men 0 as to ensure all of the work being' done in accordance with principles of the science which has been developed; and (4) An almost equal division of the work and the responsibility between the management and the workmen, whereby the management takes over all the work for which they are better fitted than the workmen.

The International Institute at Geneva was created in 1927; its objects are:

(1) To further the development of efficient methods of business organization, administration and management; (2) To collect and distribute information; (3) To carry out research concerning such methods; and (4) To promote contents and to facilitate the exchange of experience between persons interested in the organization of industry and trade.

It is earnestly hoped that the National Institute of Scientific Management will receive the utmost backing and ce-operation of the business and industrial leaders of thi country. the Chinese Couneillors have fought very vigorously for the increase of the Chinese edueaional appropriations and paid special attention to the right to control Chinese education in the Settlement. Therefore, the Association will do its utmost to assist in [bringing about the rendition of the "educational rights" of the Settlement as soon as possible and will give every support to the Chinese

Text read from the printed page and cleaned; old type leaves the occasional error.

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