n made, have seemed to justify
such resistance and have fortified men in the belief that business and
response to social influence should be kept separate in water-tight
compartments.

More recently men have been coming to understand the fundamental
defects in the Pullman and the original Cash Register plans and have
come to realize that even a separate welfare department may be
successfully incorporated in a business, if only certain fundamental
policies are followed in its management. Still more significant is the
view looking-outward and the consequent harmonizing of social and
business motives, which is coming in the ordinary development of
business policies as a result of their more fundamental analysis.

Perhaps the greatest step toward a fuller consideration of facts on the
outside is taken, when a business creates a separate department of
employment. It is hard to see how the head of an employment department
can have the largest measure of success if he sees only the facts on
the inside. A comprehensive application of scientific method to
problems of employment leads a long way into analysis of the social
facts affecting the people who are employed.

From different angles the same thing is true in other departments of
business, notably so in the case of advertising and sales. One of the
most obvious outside facts which affect sales, is the location and
density of the population, and yet it is a fact which frequently is
neglected. Another outside fact, which ultimately advertisers will have
to consider, is the consuming power of population. They have been very
keen to study our psychological reactions, and in doing this they have
undertaken the entire charge of the evolution of our wants. But they
have not always gone at their work from the long-time point of view.
Sometime they will have to take account of the fact that unwise
consumption impairs efficiency and depletes the purchasing power from
which advertisers must be paid.

The next step in the scientific analysis of business is to provide for
more ample analysis of facts on the outside. Weakness at this point
explains the defects in many plans for the welfare of employees, it
explains the defects in scientific management, mentioned above, and it
explains many other shortcomings in projects for increasing the
effectiveness of business.

But men who approach business from the standpoint of university
research are not free from the same danger. In their