ABSTRACT
A spirited enterprise appeals to the customer and hence has an edge over its competitors. But this spirit, which is vitality in administration, is hard to develop and harder to maintain. The conditions requisite to vitalized administration are, first, a social environment that emphasizes responsibility and a broad approach to education, incentives that encourage competition and self-development, and institutional management under unified leadership, accompanied by delegations of authority to foster the maximum development of the potential abilities of administrators and employees throughout the program. Vitality in administration applies not only to individual firms but also to whole nations. This chapter proposes the four main elements of bureaucracy are hierarchy, specialization, rules, and impersonality; and the four main ingredients of enterprise are incentive, idea, person, and process. Bureaucracy is the ordering of institutional management to secure the advantages of system. It is analogous to scientific management and to all "rational" method.
