ABSTRACT

WITH the organized marketing policies described in Chapter III must come a development of the internal relations within the firm, if the full possibilities of efficient large-scale operation are to be realized and exploited. The economy of large-scale operation ultimately depends upon the full use of mechanical and human specialization. Once relations with the consumer are so organized that a large-scale of production is feasible, then the producer may invest in the special machinery, equipment, and plant adapted to the particular variety of product concentrated upon, and may proceed to employ separate specialist managers. The results of this investment in specialized machines upon the internal relations within a firm, particularly that of employment, will be considered in the next three sections, while the problems of relations and organization consequent upon specialization of management will be taken up in the concluding sections.