With the greater stability in national finances and the general improvement in European economic conditions of 1927 the stage was thus set for a forward step. The initiative was provided by a group of internationally-minded Americans who saw, in the theories of industrial management which had proved so valuable to many of their own enterprises, a strong impetus towards European economic recovery. Mr. E. A. Filene and Mr. H. S. Dennison, on behalf of the Twentieth Century Fund, approached the International Labour Office. A careful report on the position of the scientific management movement in Europe was prepared by P. Devinat, an official of the I.L.O. selected for this pur pose. As a result of this report the International Management Institute was established at Geneva in the early months of the year, under the joint administration of the International Com mittee for Scientific Management, the Twentieth Century Fund and the I.L.O. A permanent establishment was thus provided for the comparative study of methods of industrial management on an international scale, and to promote a wider knowledge of scientific management practices.
Two immediate consequences followed. In the first place the documentation prepared for the Industrial Committee of the In ternational Economic Conference on the whole question of ra tionalization was thorough, comprehensive and authoritative. The resolutions of the conference on the subject constituted a whole hearted recommendation to traders, industries and Governments all over the world to study and apply the underlying philosophy developed by F. W. Taylor, not only to individual factories but to whole industries, both nationally and internationally, and to every phase of economic life including commerce, agriculture and the home. Thus the full weight of the greatest body of experts in the economic field which has ever been brought together was thrown definitely into the scales in favour of the ideas which Taylor had initiated. European countries which had viewed his practices with doubt and distrust suddenly found that they had received the official sanction and endorsement of the representa tives of capital, labour and economic thought, specially convened to discover methods by which European trade might recover from its post-war difficulties.
The effect of these resolutions was very great. The third In ternational Scientific Management Congress, convened at Rome in Sept. 1927 gave evidence of the widespread effort and inter est which had been aroused. Over iso papers were contributed to the proceedings, covering the application of scientific manage ment methods not only to industrial production, but to agricul ture, public administration, selling, office management and do mestic work. Many of the papers were devoted to the special problems involved in introducing these methods into established organizations. The congress was attended by over 1,400 delegates representing 45 different countries.
The adaptation of scientific management technique to Euro pean conditions presents many difficulties. In countries where the standard of living is lower and the opportunities of economic expansion at a rapid rate are less favourable than in the United States, the immediate displacement of workers owing to improved efficiency requires special methods of approach. The psychology both of industrialists and of their employees differs widely from the American model. The consumers as a body are less ready to accept the results of standardized mass production. But on the whole it seems clear that the movement started by Taylor is fairly established in the great majority of industrialized coun tries. His ideas are being pursued with a vigour and enthusiasm almost unparalleled in any other department of thought. There is ground for belief that in Europe as in America the claim of his immediate followers will be substantiated. He will come to be regarded as the founder of a second industrial revolution.
(L. U.)