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Entrepreneur : dead or dying? Ciccozzi, Gary Wayne 1970

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ENTREPRENEUR: DEAD OR DYING? by GARY WAYNE CICCOZZI B. Comm., U n i v e r s i t y of B r i t i s h Columbia, 1968 A THESIS SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE MASTER OF BUSINESS ADMINISTRATION i n the Fa c u l t y of Commerce and Business A d m i n i s t r a t i o n We accept t h i s t h e s i s as conforming to the requ i r e d standard THE UNIVERSITY OF BRITISH COLUMBIA June, 1970 In presenting th i s thes i s in pa r t i a l f u l f i lment of the requirements for an advanced degree at the Un ivers i ty of B r i t i s h Columbia, I agree that the L ibrary sha l l make i t f r ee l y ava i l ab le for reference and study. I fu r ther agree that permission for extensive copying of th i s thes i s fo r scho lar ly purposes may be granted by the Head of my Department or by his representat ives. It i s understood that copying or pub l i ca t ion of th i s thes i s fo r f i nanc i a l gain sha l l not be allowed without my wr i t ten permiss ion. Department The Univers i ty of B r i t i s h Columbia Vancouver 8, Canada ABSTRACT I t was the o b j e c t i v e of t h i s t h e s i s to examine both the entrepreneur and e n t r e p r e n e u r i a l a c t i v i t i e s from a b e h a v i o r a l viewpoint. E s s e n t i a l l y , t h i s was an attempt to e s t a b l i s h a p e r s p e c t i v e of t h i s type of i n d i v i d u a l , which would be dyanmic, adaptable to a broad range of e n t r e p r e n e u r i a l s i t u a t i o n s , and devoid of many of the conceptual l i m i t a t i o n s o f t e n a p p l i e d to the entrepreneur and h i s a c t i v i t i e s . I t was assumed as a b a s i s f o r reasoning that the establishment of t h i s p e r s p e c t i v e would allow the entrepreneur to be seen as continu i n g h i s r o l e as a v i t a l force i n economic growth i n an age of r a p i d change and r e l a t i v e non-permanence. I t i s an age c h a r a c t e r i z e d among other things by i n c r e a s i n g l y l a r g e s c a l e o r g a n i z a t i o n s , emphasis on e f f i c i e n c y , and an ev o l v i n g s o c i a l e t h i c . The study i t s e l f i s broad i n i t s acceptance of ideas from other sources. A c c o r d i n g l y , the steps f o l l o w i n g i n the i n v e s t i g a t i o n were as f o l l o w s : (1) A d e f i n i t i v e o u t l i n e was developed of hypothesized e n t r e p r e n e u r i a l f u n c t i o n s , m o t i v a t i o n s , a t t i t u d e s , and behavior p a t t e r n s . This o u t l i n e was based on s e l e c t e d s t u d i e s of the t r a d i t i o n a l independent entrepreneur i n p a r t i c u l a r and other s t u d i e s making reference to the e n t r e p r e n e u r i a l type i n d i v i d u a l i n general. (2) An examination was made of various s t r u c t u r a l and o p e r a t i o n a l features o f t e n associated w i t h r e l a t i v e l y l a r g e s c a l e o r g a n i z a t i o n s , and deemed to be p o t e n t i a l l y consuming to i n d i v i d u a l i s t i c entre-p r e n e u r i a l type behavior. I t was intended that t h i s examination e s t a b l i s h a pe r s p e c t i v e of the la r g e s c a l e business o r g a n i z a t i o n which would f a c i l i t a t e the understanding of the development of the o r g a n i z a t i o n a l e n t r e p r e n e u r i a l type i n d i v i d u a l . The examination i t s e l f was based on s e l e c t e d s t u d i e s of management and large s c a l e o r g a n i z a t i o n s . A comparative p r e s e n t a t i o n was made of an hypothesized o r g a n i z a t i o n a l entrepreneur based on the f i n d i n g s of s e l e c t e d s t u d i e s of a par-t i c u l a r managerial mode of behavior i n large business o r g a n i z a t i o n s . The p r e s e n t a t i o n was made i n such a way as to be e a s i l y comparable w i t h the d e f i n i t i v e o u t l i n e of the entrepreneur provided p r e v i o u s l y , and was q u a l i f i e d by c e r t a i n o r g a n i z a t i o n a l features examined i n the t h e s i s p r i o r to t h i s comparative p r e s e n t a t i o n . An examination was made of e n t r e p r e n e u r i a l e v o l u t i o n from the viewpoint of i t s value to the attainment of the goals of a f r e e e n t e r p r i s e Western s o c i e t y . The examination was based on the hypothesis that the appearance of the o r g a n i z a t i o n a l entrepreneur represented e n t r e p r e n e u r i a l e v o l u t i o n . Selected s t u d i e s arguing e v o l u t i o n of the business sector and the managerial requirements of t h i s process of change were used as ref e r e n c e s . A p r e s e n t a t i o n was made of p o s s i b l e methods of encouraging the development of the e n t r e p r e n e u r i a l type i n d i v i d u a l by a l i g n i n g the methods of encouragement with the mo t i v a t i o n s , a t t i t u d e s , and behavior patterns hypothesized as being 'entrepreneurial throughout the t h e s i s . The general conclusions a r r i v e d at i n t h i s t h e s i s are t h a t : There i s a s i m i l a r i t y i n the mo t i v a t i o n s , a t t i t u d e s , and behavior patterns w i t h respect to business a c t i v i t y , between the t r a d i t i o n a l independent entrepreneur as defined i n t h i s t h e s i s and a type of executive defined as an o r g a n i z a t i o n a l entrepreneur i n t h i s t h e s i s and found i n la r g e s c a l e business o r g a n i z a t i o n s . The b a s i c s i m i l a r i t i e s i n the m o t i v a t i o n s , a t t i t u d e s , and behavior patterns of the t r a d i t i o n a l independent entrepreneur as defined and the o r g a n i z a t i o n a l entrepreneur as d e f i n e d , i n d i c a t e that the entrepreneur i s subject to a process of e v o l u t i o n j u s t as i s the business environment. I t i s both b e n e f i c i a l and p o s s i b l e to encourage the development of the o r g a n i z a t i o n a l e n t r e p r e n e u r i a l type i n d i v i d u a l by under-standing and appealing to the m o t i v a t i o n s , a t t i t u d e s , and behavior patterns of t h i s type of i n d i v i d u a l . TABLE OF CONTENTS CHAPTER Page I. GENERAL PERSPECTIVE 1 The Problem 1 Statement of the Problem 1 Importance of the Study 2 Chapter Organization 4 L i m i t a t i o n s of the Study 6 I I . THE TRADITIONAL INDIVIDUAL ENTREPRENEUR 9 The Heroic Image of the Entrepreneur 10 E n t r e p r e n e u r i a l Functions 14 Observation 14 Execution 17 Planning 22 E n t r e p r e n e u r i a l Behavior C h a r a c t e r i s t i c s 25 Risk 26 Energy 33 R e s p o n s i b i l i t y , C o n t r o l , and Feedback 42 Commitment 45 E n t r e p r e n e u r i a l Motives 48 E n t r e p r e n e u r i a l Backgrounds 52 I I I . THE LARGE SCALE ORGANIZATION AND THE ORGANIZATIONAL ENTREPRENEUR 58 C h a r a c t e r i s t i c s of the Large Scale Organization 60 H i e r a r c h i a l Consumption 63 I n d i v i d u a l Objectives 63 i i CHAPTER Page Operative Freedom 68 Innovation 75 Consumption Through S p e c i a l i z a t i o n 81 Consumption of I d e n t i t y 87 Be h a v i o r a l C h a r a c t e r i s t i c s of the O r g a n i z a t i o n a l Entrepreneur 96 Risk 99 Energy 108 R e s p o n s i b i l i t y , C o n t r o l and Feedback 114 Commitment 121 O r g a n i z a t i o n a l E n t r e p r e n e u r i a l Motives 127 M o b i l i t y '.' 130 E v o l u t i o n of the Entrepreneur--Advantageous or Detrimental? 145 IV. ENCOURAGING ENTREPRENEURIAL DEVELOPMENT 163 Education 165 E n t r e p r e n e u r i a l Recruitment 173 The Developmental Environment 176 BIBLIOGRAPHY 183 i i i LIST OF TABLES TABLE Page II-A. Canadian Commercial F a i l u r e s According to Si z e 12 II-B . C l a s s i f i c a t i o n of the Causes of Business F a i l u r e s i n Canada 13 i v LIST OF EXHIBITS EXHIBIT Page I I I - A . O r g a n i z a t i o n a l E n t r e p r e n e u r i a l Drive A c c e l e r a t i o n 117 I I I - B . Comparative O u t l i n e of the Behavior and A t t i t u d e s of the O r g a n i z a t i o n a l Entrepreneur and the T r a d i t i o n a l Independent Entrepreneur 142 CHAPTER I GENERAL PERSPECTIVE We l i v e i n an i n c r e a s i n g l y growth conscious world and, although i l l - d e f i n e d , the s o - c a l l e d e n t r e p r e n e u r i a l f u n c t i o n has long been recognized as a v i t a l component i n the process of economic growth.^ 2 As s t a t e d i n The E n t e r p r i s i n g Man, there has been co n t i n u i n g concern that the s o c i a l and economic cli m a t e of the n a t i o n i s so changing that the new business e n t e r p r i s e and the entrepreneur w i l l become phenomena of the past. Statements of t h i s s o r t are based on sentiments expressing: (1) lament f o r the passing of a value system on which the e n t r e p r e n e u r i a l f u n c t i o n i s thought to be based, (2) a fear that the i n c r e a s i n g l y dominant la r g e s c a l e o r g a n i z a t i o n w i l l not be f l e x i b l e enough to meet the changing needs of an advancing s o c i e t y , (3) a narrow and i n f l e x i b l e conception of what the entrepreneur i s and from whence he s p r i n g s , and (4) a b e l i e f that the t r a d i t i o n a l entrepreneur can not adapt to and f l o u r i s h i n a competitive environment such as that which i s e v o l v i n g . In the b e l i e f that these sentiments are unfounded and a r i s e out of somewhat f a u l t y i n t e r p r e t a t i o n s of c e r t a i n o r g a n i z a t i o n a l , b e h a v i o r a l , and economic trends i n the emerging f r e e i n d u s t r i a l s o c i e t y , i t i s the o b j e c t i v e of t h i s t r e a t i s e to provide a new i n t e r p r e t a t i o n of the forementioned trends and provide a new approach to entrepreneurship. I . THE PROBLEM Statement of the Problem: I t i s the purpose of t h i s t r e a t i s e to examine the r o l e of the entrepreneur t o : 2. (1) develop a workable d e f i n i t i o n of the entrepreneur, or a perspec-t i v e of those e n t r e p r e n e u r i a l t r a i t s , t a l e n t s , and functions which d i s t i n g u i s h the entrepreneur i n the business community and which render this, i n d i v i d u a l so v i t a l to economic growth; (2) examine the changing competitive environment to determine the p o s s i b i l i t y of the m a t e r i a l i z a t i o n and f u n c t i o n i n g of the entre-preneur i n a system c h a r a c t e r i z e d by la r g e s c a l e o r g a n i z a t i o n , mass markets, and a u n i v e r s a l i s t i c s o c i e t y ; and (3) determine the d e s i r a b i l i t y and f e a s i b i l i t y of developing means by which e n t r e p r e n e u r i a l a c t i v i t y or e n t r e p r e n e u r i a l behavior may be stim u l a t e d i n volume and i n t e n s i t y , and d i r e c t e d so that i t becomes more e f f i c i e n t i n an i n c r e a s i n g l y e f f i c i e n c y o r i e n t e d s o c i e t y . Importance of the Study: "The entrepreneur i s at the same time one of the most i n t r i g u i n g and one of the most e l u s i v e characters i n the cast that c o n s t i t u t e s the subject of economic a n a l y s i s . He has long been recognized as the apex of the h i e r a r c h y that determines the behavior of the f i r m and thereby bears a heavy r e s p o n s i b i l i t y f o r the 3 v i t a l i t y of the f r e e e n t e r p r i s e s o c i e t y . " However, q u a n t i f i c a t i o n of the e n t r e p r e n e u r i a l f u n c t i o n or r o l e as a c o n t r i b u t o r y f a c t o r i n economic growth or as an input i n the theory of the f i r m , has remained a dilemma unresolved by the t h e o r e t i c a l economists and those r e p r e s e n t a t i v e s of other d i s c i p l i n e s which could b e n e f i t g r e a t l y from the a b i l i t y to qu a n t i f y 4 the e n t r e p r e n e u r i a l f u n c t i o n . W i l l i a m J . Baumol, points out that formal economic models are e s s e n t i a l l y , "instruments of o p t i m a l i t y a n a l y s i s of w e l l - d e f i n e d problems," and as such read out e n t e r p r i s e and i n i t i a t i v e from the included v a r i a b l e s . Economic models are l a r g e l y mechanistic 3. and automatic, choosing among a l t e r n a t i v e values f o r p a r t i c u l a r v a r i a b l e s , the supply of which i s considered exogenous to and out of the c o n t r o l of the models or the managers who may employ them. Thus i t can be seen that economics has n e i t h e r developed the concept of entrepreneurship to the l e v e l where i t can be t r e a t e d or considered to the same "extent as other v a r i a b l e s i n formal economic models, nor has i t determined w i t h any degree of surety those f a c t o r s a f f e c t i n g the l e v e l of output of entre-preneurship. Professor Baumol thus saw f o r the immediate f u t u r e , "no formal, manipulative engine of c a l c u l a b l e a n a l y s i s " a r i s i n g from the c o n s i d e r a t i o n of entrepreneurship by economists. However, he d i d con-clude t h a t , "although we may not be able to analyze i n d e t a i l the supply of entrepreneurship, the entrepreneur's s t r a t e g y choices, h i s a t t i t u d e s to r i s k , or the sources of h i s ideas...one can hope to examine f r u i t f u l l y what can be done to encourage h i s a c t i v i t y . " ' " ' Baumol was apparently c o r r e c t i n h i s reasoning, as there has been a dearth of r e l e v a n t l i t e r a t u r e from the economic sphere on the subject of the entrepreneur. Most of the recent w r i t i n g on entrepreneurship has come from s o c i o l o g i s t s and p s y c h o l o g i s t s who have seemingly taken up the challenge inherent i n the preceeding quote and who through analyses of e n t r e p r e n e u r i a l a t t i t u d e s , behavior, motivations and so on, hope to estab-l i s h a l e v e l of understanding of the entrepreneur such that the problems of s u s t a i n i n g and propogating h i s a c t i v i t y may be approached on a more knowledgeable b a s i s . The b e h a v i o r a l s t u d i e s have been r e l a t i v e l y productive i n the p u r s u i t o f e n t r e p r e n e u r i a l understanding, but they too are somewhat l i m i t e d . Probing i n t o e n t r e p r e n e u r i a l behavior must n e c e s s a r i l y be an h i s t o r i c a l undertaking, Many of the s t u d i e s have managed to develop e x c e l l e n t r a t i o n a l e behind e n t r e p r e n e u r i a l development under c e r t a i n environmental circumstances. These p r i n c i p a l l y were i n v e s t i g a t i o n s of the backgrounds, sentiments, and act i o n s of i n d i v i d u a l s h i s t o r i c a l l y thought to be entrepreneurs because of t h e i r emergence as such under the inf l u e n c e s and circumstances considered to be of formative s i g n i f i -cance i n the eyes of the i n v e s t i g a t o r s , and i n many instances i n the eyes of the i n v e s t i g a t e e s . These studies have rendered a good pers p e c t i v e of what s h a l l be designated here as 'hingsight entrepreneurship, ' but they give l i t t l e i n d i c a t i o n of how entrepreneurship can or w i l l f a r e i n fut u r e environments p o t e n t i a l l y d i f f e r e n t from those which p r e v i o u s l y f o s t e r e d e n t r e p r e n e u r i a l development. Many t h e o r i s t s i n f a c t s t a t e that s i n c e the present or f u t u r e s o c i a l , p o l i t i c a l , and business environments are or w i l l be so d i f f e r e n t from those of the past, entrepreneurship may cease to e x i s t . I t i s intended that t h i s t r e a t i s e d e l i n e a t e the r e s u l t s of an examination of both the t r a d i t i o n a l concept of the entrepreneur and present environmental trends to determine i f i t i s indeed a n a c h r o n i s t i c to speak of the entrepreneur i n our or f u t u r e s o c i e t i e s . Hopefully i n the process of t h i s endeavor, advancement w i l l be made toward the develop-ment of a more f l e x i b l e and useable p e r s p e c t i v e of the entrepreneur so that entrepreneurship can shed many of i t s conceptual l i m i t a t i o n s and be observed c o n t i n u i n g i t s r o l e as a major f o r c e i n economic growth i n an age of r a p i d progress and r e l a t i v e non-permanence. I I I . CHAPTER ORGANIZATION Fol l o w i n g t h i s i n t r o d u c t o r y chapter, chapter I I s h a l l c o n s t i t u t e the i n i t i a l step i n answering the question, "The Entrepreneur—Dead or Dying?" I t s h a l l d e l i n e a t e various aspects of the t r a d i t i o n a l independent 5. entrepreneur from the viewpoint of the funct i o n s he performs, h i s a t t i t u d e s , h i s m o t i v a t i o n a l i n f l u e n c e s , s e l e c t e d b e h a v i o r a l c h a r a c t e r i s -t i c s , and the formative s i g n i f i c a n c e of h i s background and general environmental i n f l u e n c e s . The purpose of the chapter i s to endeavor to e s t a b l i s h a r e a l i s t i c and d e f i n i t i v e p e r s p e c t i v e of that mode of i n d i v i d u a l i s t i c behavior which w i l l i n the remainder of the t h e s i s be designated as ' e n t r e p r e n e u r i a l . ' Chapter I I I w i l l begin by examining c e r t a i n s t r u c t u r a l and o p e r a t i o n a l elements of the large s c a l e business o r g a n i z a t i o n to determine to what extent the large s c a l e business environment i s harboring the seeds of d e s t r u c t i o n f o r the e n t r e p r e n e u r i a l type i n d i v i d u a l . Subsequent to t h i s examination, a p a r t i c u l a r type of i n d i v i d u a l emerging i n the large s c a l e corporate environment w i l l be examined from the viewpoint of h i s apparent demonstrations of a mode of managerial behavior designated as 'entrepreneurial'on the b a s i s of the f i n d i n g s and proposals i n chapter I I . The purpose of t h i s examination i s e s s e n t i a l l y to i l l u s t r a t e that the forementioned i n d i v i d u a l i s an 'o r g a n i z a t i o n a l entrepreneur' and that the s o - c a l l e d entrepreneur i s not dead or dying, but r a t h e r e v o l v i n g . In the f i n a l s e c t i o n of chapter I I I the e v o l u t i o n of the business environment and the entrepreneur w i l l be d e a l t w i t h more e x t e n s i v e l y from the poi n t of view of background, advan-tages, consequences, e t c . Chapter I I I answers the question as to whether the entrepreneur i s dead or dying by i l l u s t r a t i n g through systematic a n a l y s i s that through a process of adaption to changing needs and circum-stances, and because of h i s r e c e p t i v i t y to a l t e r n a t e ways of a c t i n g i n accordance w i t h necessary change, the entrepreneur has perpetuated h i s species by e v o l v i n g w i t h the times, and remains as always, a v i t a l f o r c e i n the process of economic growth. Chapter IV i s a supplemental chapter included f o r the purposes of presenting some general g u i d e l i n e s w i t h respect to the encouragement and the d i r e c t i o n of the e n t r e p r e n e u r i a l type i n a s o c i e t y i n which he i s and probably always w i l l be necessary. L i m i t a t i o n s of the Study: A t r e a t i s e on the t o p i c of the entre-preneur has many l i m i t a t i o n s a r i s i n g out of the e x i s t i n g indeterminate s t a t e of knowledge on the s u b j e c t , the s t o c h a s t i c i t y of the e n t r e p r e n e u r i a l phenomenon, and most p a r t i c u l a r l y , the very complexity of the undertaking. As s t a t e d by Cole, "The character of knowledge or research i n entre-p r e n e u r i a l h i s t o r y . . . r e p r e s e n t s a comingling of economics and h i s t o r y , s o c i o l o g y and business a d m i n i s t r a t i o n , technology and s o c i a l psychology; i t c o n s t i t u t e s an i n t e r d i s c i p l i n a r y i n q u i r y . Obviously, i t i s " b e h a v i o r i s -t i c , " has a good deal to do w i t h communication , and comes c l o s e to con-cerning i t s e l f w i t h f o r e c a s t i n g , because the forces w i t h which i t has to deal are l a r g e l y slow-acting and slow changing, s i n c e ' h i s t o r y ' continues up to the present moment. Again, i t i s a meeting ground of many v a r i e t i e s of h i s t o r y : economic, s o c i a l , i n t e l l e c t u a l , i n s t i t u t i o n a l , and technolo-g i c a l , w i t h a l i t t l e r e l i g i o u s and s o c i o l o g i c a l h i s t o r y thrown i n . I t i s i n t e r n a t i o n a l i n i t s scope and c u l t u r a l i n i t s f o c u s . " In view of the multitude and types of parameters which must be considered, i t i s perhaps u n r e a l i s t i c to assume that any c o n c l u s i o n could be a r r i v e d at i n anything but very general terms. Nevertheless, although t h i s p o s s i b i l i t y may on one hand be a l i m i t a t i o n , i t may on the other hand be a s t r e n g t h i n that the g e n e r a l i t y of the conclusions may be conducive to the attainment of a f l e x i b l e and useable p e r s p e c t i v e of the entrepreneur. This p r o p o s i t i o n i s of course based on the contention that a hypothesis too s p e c i f i c would have a narrower and more s h o r t - l i v e d a p p l i c a t i o n . 7. I t i s f u r t h e r intended that no surveys of experiments w i l l be conducted to v e r i f y the hypotheses which w i l l a r i s e out of t h i s t r e a t i s e . The reason f o r t h i s i s the b e l i e f t h a t : (1) I t i s very o p t i m i s t i c to expect any number of r e p r e s e n t a t i v e i n d i v i d u a l s to a c c u r a t e l y r e c a l l and r e l a t e the m o t i v a t i o n s , needs, sentiments, and circumstances involved i n a p a r t i c u l a r a c t i o n of manner of behavior; (2) Most data c o l l e c t e d through surveys and int e r v i e w s can be i n t e r -preted i n such a way that they f i t a number of pre-determined o b j e c t i v e s ; and (3) Such things as motivations are not q u a n t i f i a b l e enough to a l l o w t e s t i n g . As a r e s u l t of the forementioned b e l i e f s , t h i s t r e a t i s e w i l l be based p r i m a r i l y on i n t u i t i o n and l o g i c a l i n t e r p r e t a t i o n of l i m i t e d experiences and o b s e r v a t i o n s , supplemented by the f i n d i n g s of other studies of the entrepreneur and r e l a t e d t o p i c s . Any conclusions reached i n t h i s t r e a t i s e w i l l i n a l l l i k e l i h o o d be v e r i f i a b l e only by f u t u r e observation of the e n t r e p r e n e u r i a l phenomenon i n the changing business environment. Never-t h e l e s s , s i n c e matters of entrepreneurship are matters of slow change, long run adjustment, and f u t u r e e x p e c t a t i o n s , there i s no reason to assume that t h e o r i e s about same should or can be accepted i n anything but a s i m i l a r time p e r i o d . FOOTNOTES FOR CHAPTER I "^William Baumol, "Entrepreneurship i n Economic H i s t o r y , " American  Economic Review, L V I I I (May, 1968), pp. 65-66. 2 0. F. C o l l i n s , David Moore, and D. B. Unwalla, The E n t e r p r i s i n g  Man (East Lansing: Bureau of Business Research, Michigan S t a t e , 1964). 3 Baumol, op_. c i t . , p. 64. 4 l b i d . , p. 67. ^Baumol, op_. c i t . , p. 70. Arthur Cole, Business E n t e r p r i s e i n i t s S o c i a l S e t t i n g (Cambridg Massachusetts: Harvard U n i v e r s i t y Press, 1959), p.227. CHAPTER I I THE TRADITIONAL INDEPENDENT ENTREPRENEUR The d i c t i o n a r y defines the entrepreneur as, "that person who organizes and manages a business or i n d u s t r i a l e n t e r p r i s e , t a k i n g the r i s k of not making a p r o f i t and g e t t i n g the p r o f i t when there i s one."''" This simple d e f i n i t i o n , i f accepted at face value would not suggest the need f o r any great understanding of or concern over the e n t r e p r e n e u r i a l r o l e . Nevertheless, when i t i s acknowledged that t h i s i n d i v i d u a l i s i n f a c t a human being, motivated by o f t e n deep-rooted sentiments and needs, possessing a c e r t a i n u n s p e c i f i e d l e v e l of i n t e l l i g e n c e , and r e a c t i n g to s o c i a l , p o l i t i c a l , c u l t u r a l , economic, and other environmental i n f l u e n c e s , then a d i c t i o n a r y d e f i n i t i o n v i r t u a l l y becomes meaningless and one may even question the v a l i d i t y of any attempt to pidgeon-hole the entre-preneur i n t o some l i m i t e d b e h a v i o r a l c o n s t r a i n t as the narrow d e f i n i t i o n above seems to do. Much of the m a t e r i a l and commentary i n t h i s chapter a r i s e s out of and i s modelled a f t e r a b e h a v i o r a l study by C o l l i n s , Unwalla, and Moore, based on t h e i r research i n t o the o r i g i n s , m o t i v a t i o n s , and behavior patterns of men who attempted to s t a r t t h e i r own ;businesses and succeeded. As a r e s u l t , the 'entrepreneur' f o r purposes of t h i s study, w i l l b a s i c a l l y be defined as an i n d i v i d u a l possessing the o r i g i n s , m o t i v a t i o n s , and behavior patterns i d e n t i f i e d by C o l l i n s et a l as being c h a r a c t e r i s t i c s possessed by i n d i v i d u a l s who s t a r t e d t h e i r own businesses and succeeded. In a d d i t i o n , the term 'entrepreneurship' w i l l be derived from t h i s d e f i n i t i o n and w i l l r e f e r to the behavior patterns of the entrepreneur. Before any r e a l i s t i c hypotheses may be a r r i v e d at concerning the fut u r e of entrepreneurship, a workable explanation of t h i s phenomenon must be formulated. Therefore, i n p u r s u i t of the immediate goal of f i n d i n g out j u s t what or who the entrepreneur i s , i t i s proposed that t h i s chapter expand upon the d e f i n i t i o n of the entrepreneur a r i s i n g out of the f i n d i n g s of C o l l i n s et a l and d e l i n e a t e the t r a d i t i o n a l image of the independent entrepreneur both ascribed and r e a l . I t i s intended that the image of the t r a d i t i o n a l independent entrepreneur which w i l l u n f o l d i n t h i s chapter, w i l l prove u s e f u l as a comparison w i t h the o r g a n i z a t i o n a l entrepreneur who w i l l be examined i n chapter I I I . I . THE HEROIC IMAGE OF THE ENTREPRENEUR The i n d i v i d u a l entrepreneur, or the, "innovating entrepreneur 3 who has .developed an ongoing business where none e x i s t e d b e f o r e , " has many times been c i t e d as the b a s i s of Western c a p i t a l i s t i c s o c i e t y . He i s seen as, "a r i s k - t a k e r - - a man who braves u n c e r t a i n t y , s t r i k e s out on h i s own, and through n a t i v e w i t , devotion to duty, and singleness of purpose, somehow creates a business and i n d u s t r i a l a c t i v i t y where none e x i s t e d before...he i s r e s o l u t e , d i s c i p l i n e d , and u t t e r l y devoted to the narrow goals he has set f o r h i m s e l f . He i s l i t e r a l l y a l i m i t e d purpose 4 man s t r i v i n g to b u i l d a l i m i t e d purpose o r g a n i z a t i o n . " One p a r t i c u l a r impression of the i n v e s t i g a t i o n s of C o l l i n s et a l i s that although many men c l a i m to a s p i r e to t h i s h e r o i c image, i n most cases i t i s merely a r a t i o n a l i z a t i o n motivated by the e g a l i t a r i a n conscience, r e f l e c t i v e of a d e s i r e to k i n d l e a b e l i e f i n the r e a l i t y of opportunity through e u l o g i z i n g personal ambition and perseverence, and 11. based on a perhaps u n r e a l i s t i c view of independence. In r e a l i t y , the p u r s u i t of e n t r e p r e n e u r i a l success i s n e i t h e r as g l o r y - f i l l e d and s o u l s a t i s f y i n g as the h e r o i c image would suggest, nor i s i t based s o l e l y on n a t i v e w i t , devotion to duty, and singleness of purpose. For the most p a r t , t h i s e n t r e p r e n e u r i a l hero l i v e s only i n the minds and misconceived i d e a l o g i e s of men. The road to e n t r e p r e n e u r i a l success i s i n r e a l i t y i n c r e a s i n g l y treacherous, demanding, and complex; a f a c t amply bourne out by s t u d i e s i n t o company h i s t o r i e s , businessmen's b i o g r a p h i e s , and the m ultitude of independent a s p i r a n t s who f a l l by the wayside i n t h e i r quest to s t r i k e out on t h e i r own. Table II-A gives some i n d i c a t i o n of the number of e n t r e p r e n e u r i a l a s p i r a n t s who f a i l under the r e a l pressures of the business environment, and the pre-aggrandizment stages at which they do so. Table II-B serves to i l l u s t r a t e that i n many in s t a n c e s , the brave independent s p i r i t and perseverence are not adequate to deal s u c c e s s f u l l y w i t h c e r t a i n s i g n i f i c a n t areas of business v u l n e r a b i l i t y . The demands upon the t r a d i t i o n a l independent entrepreneur to which the forementioned r e a l i s m may be a t t r i b u t e d are two-fold. F i r s t l y , there are those which a r i s e from the func t i o n s which he must perform to s u r v i v e i n a competitive business environment. In s e c t i o n I I an attempt w i l l be made, as i s done by most w r i t e r s on t h i s and r e l a t e d t o p i c s , to give some i n d i c a t i o n of the general nature of these functions i n the hope that the i n f o r m a t i o n s u p p l i e d w i l l a s s i s t the reader i n forming a deeper under-standing of the men who must perform them. Secondly, there are those demands upon h i s moral f i b r e which r e q u i r e the i n d i v i d u a l to act and react w i t h modes of behavior c o n s i s t e n t w i t h the r o l e of the s u c c e s s f u l entrepreneur as described by h i s t o r y and as determined by the p e c u l i a r i t i e s of the s i t u a t i o n , and i l l u s t r a t i v e of those o f t e n indeterminate strengths TABLE II-A CANADIAN COMMERCIAL FAILURES ACCORDING TO SIZE OF LIABILITIES* 1961 1962 1963 1964 Number Per Cent Number Per Cent Number Per Cent Number Per Cent Under $5,000 344 12, .9 364 11 .4 375 10 .2 301 8 .6 $5,000 to $25,000 1335 50, .2 1616 50, .7 1864 - 50, .7 1753 50 .2 $25,000 to $50,000 478 18, .0 617 19 .4 690 18, .7 695 19 .8 $50,000 to $100,000 274 10, .3 295 9 .2 367 10, .0 398 11 .3 Over $100,000 228 8 .6 298 9 .3 381 10, .4 352 10 .0 Totals 2659 100, .0 3190 100 .0 3677 100 .0 3499 100 .0 1965 1966 1967 1968 Number Per Cent Number Per Cent Number Per Cent Number Per Cent Under $5,000 238 7 .2 162 5, .4 117 4, .5 102 4, .1 $5,000 to $25,000 1557 47 .2 1411 47 .0 1227 46, .6 1219 48, .8 $25,000 to $50,000 668 20 .3 633 21 .1 558 21 .2 586 23 .4 $50,000 to $100,000 395 12 .0 376 12 .5 358 13 .6 314 12, .6 Over $100,000 440 13 .3 425 14 .0 371 14 .1 279 11, .1 Totals 3007 100 .0 2631 100 .0 2500 100, .0 2659 100, .0 *Figures obtained from Dominion Bureau of S t a t i s t i c s Quarterly (Catalogue No. 61-002) TABLE II-B CLASSIFICATION OF CAUSES OF BUSINESS FAILURES IN CANADA* 1962 1963 1964 1965 1966 Underlying Causes Number Per Cent Number Per Cent Number Per Cent Number'Per Cent Number Per Cent Neglect 29 1. .3 32 1 .9 39 1. .5 • 34 1. .3 28 1. .2 Fraud 13 .6 12 .6 17 .8 15 .6 30 1 .2 Lack of Experience 1 i n the Line 166 7. .8 151 7 .0 131 5, .2 120 4, .6 144 6 .0 Lack of Managerial Experience 485 22 .7 417 19 .3 579 23, .2 871 33 .5 788 32 .6 Unbalanced Experience 367 17 .2 324 15 .0 330 13 .2 155 6, .0 375 15 .5 Incompetence 1047 49 .0 1198 55 .5 1383 55 .3 1382 53, .2 1023 42 .3 Di s a s t e r 12 .5 19 .9 16 .6 12 .5 20 .8 Reason Unknown 19 .9 5 .2 4 .2 8 .3 10 .4 T o t a l 2138 2158 2499 2597 2418 -'Figures obtained from the p u b l i c a t i o n s of the Dun & Bradstreet research d i v i s i o n w i t h business f a i l u r e s being defined as those l i s t e d concerns involved i n court proceedings or vol u n t a r y actions i n v o l v i n g loss to c r e d i t o r s . They are only a p o r t i o n of the t o t a l turnover i n the business population but from t h i s very important segment a good measure of the areas of business v u l n e r a b i l i t y can be obtained. 14. which have perpetuated the e n t r e p r e n e u r i a l phenomenon. In s e c t i o n I I I c e r t a i n e n t r e p r e n e u r i a l behavior patterns w i l l be examined i n the shadow of the f u n c t i o n a l pressures. I I . ENTREPRENEURIAL FUNCTIONS Observation The f i r s t p r e r e q u i s i t e f u n c t i o n c o n f r o n t i n g the p o t e n t i a l entre-preneur i s what can f o r want of a b e t t e r term be r e f e r r e d to as 'observa-t i o n . 1 Arthur Cole s t a t e s that the entrepreneur can i n one dimension be looked upon as, "the possessor of a sense of l a t e n t market opp o r t u n i t y . " ^ The perceptive a b i l i t y of the p o t e n t i a l entrepreneur to detect a market d e f i c i e n c y i s a q u a l i t y which i s i n c r e a s i n g l y necessary to the s u c c e s s f u l development of the r e l a t i v e l y smaller independent businessman, p a r t i c u l a r l y i n view of the growing competition to small businesses from the l a r g e r more e s t a b l i s h e d firms which have more resources to devote to research and development i n the quest to uncover and f i l l d e f i c i e n t areas i n the market. Besides the i n i t i a l r e c o g n i t i o n of the d e f i c i e n c y , the observation f u n c t i o n r e q u i r e s f o r i t s completion, the mental conception and/or the m a t e r i a l m a n i f e s t a t i o n of an inn o v a t i o n , be i t product, process, p l a c e , or procedure, to f i l l the market v o i d . The development of t h i s market-f i l l e r may be the r e s u l t of a c a l c u l a t e d and r a t i o n a l innovation or research process, a chance or conditioned i n s p i r a t i o n , or a p e c u l i a r competence i n some f i e l d of endeavor. In some cases the entrepreneur may perform the observation f u n c t i o n h i m s e l f , i n which case success depends at t h i s stage on h i s own s k i l l , i n t u i t i o n , imagination and good judgment. Nevertheless, i n other instances the entrepreneur may perform the observation f u n c t i o n i n d i r e c t l y by having command of resources ( p r i m a r i l y human) which have p e r c e p t i v e , i n v e n t i v e , or innovative a b i l i t i e s . Under the l a t t e r circumstances, i n a d d i t i o n to the q u a l i -t i e s mentioned above, the entrepreneur must al s o have the a b i l i t y to d i r e c t and motivate those i n d i v i d u a l s on whom he r e l i e s to complete the tasks involved i n s u c c e s s f u l l y performing the observation f u n c t i o n . Such actions as these are c h a r a c t e r i s t i c of e n t e r p r i s e r s who are p i c t u r e d as f o l l o w i n g the adopted American i d e a l and seek to 'produce a b e t t e r mouse-trap or provide a b e t t e r s e r v i c e . ' However, depending on one's point of view, these same i n d i v i d u a l s may be regarded as i n t u i t i v e geniases, t e c h n i c a l wizards, undeserving c a p i t a l i s t s , or e x p l o i t i n g o p p o r t u n i s t s . Many supposedly u n f u l f i l l e d needs i n the marketplace that are subsequently s a t i s f i e d by i n d i v i d u a l entrepreneurs seeking to make t h e i r mark i n the business world, may i n r e a l i t y be c o n t r i v e d or non-existent, at l e a s t from the point of view of the determinable j u s t i f i c a t i o n f o r the venture at the time of i t s being undertaken. In instances of con-t r i v a n c e where there i s no r e a l supply d e f i c i e n c y , a non-existent demand p o t e n t i a l , or a non-investigated or inadequately searched need f o r the product or s e r v i c e , the success of the venture may be f o r t u i t o u s or dependent on the s u p e r i o r performance of some other e n t r e p r e n e u r i a l f u n c t i o n ( s ) . Case h i s t o r i e s suggest that a s u b s t a n t i a l number of businesses may not have been s t a r t e d as the r e s u l t of the c o l d , r a t i o n a l , c a l c u l a -t i o n of a l l f a c t o r s a f f e c t i n g the p o t e n t i a l i t i e s , requirements, and r i s k s of the venture. Many of these only survived i t seems because of, (1) the happenstance m a t e r i a l i z a t i o n of a market, (2) supernormal e x e r t i o n s , e f f o r t s , and i n g e n u i t i e s of the entrepreneurs, or (3) outside a s s i s t a n c e . A great many of the ventures s t a r t e d by i n d i v i d u a l s t r a d i t i o n a l l y thought to be independent entrepreneurs went through only meagre processes of s e l e c t i o n , information gathering, e v a l u a t i o n , or planned marketing s t r a t e g y ; steps which should r i g h t l y c o n s t i t u t e the observation f u n c t i o n to assure any measure of success except out of lu c k . ^ In f a c t f o r many s o - c a l l e d entrepreneurs, the d e c i s i o n to go i n t o business f o r themselves was not based on an i n s p i r a t i o n f o r a product or s e r v i c e , but was rather the only a l t e r n a t i v e based on circumstances such as, the i n a b i l i t y to get a job anywhere e l s e , or l i m i t e d business t r a i n i n g but high t e c h n i c a l competence coupled w i t h an independent a t t i t u d e asserted almost to the point of i r r e s p o n s i b i l i t y . I t i s perhaps i r o n i c that t h i s independent entrepreneur should be c i t e d as a mainstay of an e n t e r p r i s i n g s o c i e t y , when i t i s so easy to a r r i v e at the con c l u s i o n from case h i s t o r i e s , that many of these i n d i v i d u a l s survived ' i n s p i t e o f r a t h e r than 'because o f f a c t o r s surrounding t h e i r r e s p e c t i v e ventures. However, the f a c t that many of these men were s u c c e s s f u l ' i n s p i t e o f ' various circumstances which endangered t h e i r success, i s the reason that a t t e n t i o n has been d i r e c t e d toward the independent entrepreneur from a b e h a v i o r a l point of view i n an e f f o r t to understand j u s t what the strengths were that c a r r i e d him through and from whence they were d e r i v e d . The points to be made before l e a v i n g t h i s s e c t i o n are tha t : (1) Observation i s u s u a l l y the i n i t i a l and perhaps most important f u n c t i o n i n e n t r e p r e n e u r i a l r o l e f u l f i l l m e n t i n a free e n t e r p r i s e s o c i e t y developing as i t does through d i f f e r e n t i a t i o n and d i v e r s i t y . I t need not be the f i r s t f u n c t i o n a l step i n e s t a b l i s h i n g an enter-p r i s e , although as w i l l be discussed l a t e r i n t h i s chapter i t must be performed at some time i n the e n t r e p r e n e u r i a l process. (2) A review of e n t r e p r e n e u r i a l case h i s t o r i e s may lead one to b e l i e v e that the importance of the observation f u n c t i o n may have been underestimated and not given enough considered a t t e n t i o n i n the past by t r a d i t i o n a l independent entrepreneurs. This i s a c i r -cumstance which was l i k e l y the cause of many business f a i l u r e s p a r t i c u l a r l y when i t was accompanied w i t h an i n a b i l i t y to make up f o r t h i s d e f i c i e n c y i n other aspects of e n t r e p r e n e u r i a l p e r f o r -mance. For i n s t a n c e , a man leaves h i s success up to chance i f he says, " I have invented or can produce widgets and, t h e r e f o r e , the market w i l l need and accept widgets." (3) As the complexities of the business environment increase w i t h s o c i o l o g i c a l and t e c h n o l o g i c a l advance, the importance of the comprehensive and v e r i f i a b l e performance of the observation f u n c t i o n (the conception and m a n i f e s t a t i o n of worthy and u s e f u l innovation from a market point of view), w i l l a l s o i n c r e a s e . The r a p i d i t y of change i n s o c i e t y w i l l n e c e s s i t a t e constant performance of the observation f u n c t i o n to insure s u r v i v a l i n the market f o r any period of time. This point should be noted f o r l a t e r d i s -cussion of the a b i l i t y of the l i m i t e d resource independent entre-preneur to compete i n such an environment. Execution The second e n t r e p r e n e u r i a l f u n c t i o n can be designated as 'execution 1. This f u n c t i o n r e l a t e s to the planning, r e a l i z a t i o n , and s t r u c t u r i n g of resources towards s a t i s f y i n g p o t e n t i a l demand i n terms of f i n a n c i n g , a c c o u n t i n g p r o d u c t i o n , o r g a n i z a t i o n , and marketing c r i t e r i a . The execution f u n c t i o n i s perhaps the most poorly performed of the entre-p r e n e u r i a l functions as i s evidenced by the business f a i l u r e s t a t i s t i c s (see Table I I - B ) . Almost a l l business f a i l u r e s i n Canada can be 18. a t t r i b u t e d to f a u l t y performance of some aspect of t h i s f u n c t i o n , although i t i s qui t e p o s s i b l e that some problems o r i g i n a t e d at the observation stage through f a u l t y p r o j e c t i o n of p o t e n t i a l i t i e s and the c o n s t r a i n t s on the p o t e n t i a l i t i e s of the venture, and manifested g themselves i n insurmountable p r o p o r t i o n i n the execution stage. G e n e r a l l y , the execution stage i s c h a r a c t e r i z e d by the t r a d i n g of autonomy to secure supportive resources. In many instances t h i s may be the f i r s t point where the entrepreneur i s faced w i t h the r e a l i t i e s of the business world. Venturing i n t o the domain of the independent business man to escape e s t a b l i s h e d s o c i a l , p o l i t i c a l , and o r g a n i z a t i o n a l order, the entrepreneur i r o n i c a l l y f i n d s that he has to trade away present autonomy, always i n a n t i c i p a t i o n of some nebulous conception of a fu t u r e r o l e . For the most p a r t , t h i s apparent b e t r a y a l of independent i d e a l i s m i s n e c e s s i t a t e d by the r e l a t i v e lack of business acumen and o f t e n poor business record of the e n t r e p r e n e u r i a l a s p i r a n t , past and present. In c r e a t i n g t h e i r e n t e r p r i s e s and tur n i n g the p r o j e c t i o n s made at the observation stage i n t o r e a l i t y , they o f t e n f i n d that the c o n s t r a i n t s on t h e i r a c t i o n s that they sought to escape through the e n t r e p r e n e u r i a l mechanism are not el i m i n a t e d but only change form. As C o l l i n s et a l point out, " i n the end he (the entrepreneur) may f i n d 9 that he has traded sponsors f o r partners and employers f o r customers." The entrepreneur who does not acknowledge that business success b a s i c a l l y r e l a t e s to the s a t i s f a c t i o n of the needs and de s i r e s of others and thus where necessary the subordination of those personal d e s i r e s which may i n the short run appear contrary to the s a t i s f a c t i o n of the d e s i r e s of other s , be they employees, p a r t n e r s , c r e d i t o r s , or customers, i s exposing h i m s e l f to the p o s s i b i l i t y of f a i l u r e i n the task of advancing the 19. r e a l i z a t i o n of h i s long run goals. These are the f a c t s of l i f e i n the business community of a f r e e market economy. I t could be hypothesized that i t i s not n e c e s s a r i l y strong w i l l and autonomy alone that c a r r y the entrepreneur through the execution stage, although these are v i t a l and very instrumental a t t r i b u t e s to h i s success, but a l s o the w i l l i n g n e s s and wisdom to y i e l d through compromise to the r e s t r i c t i v e r e a l i t i e s of the business environment. However, i t could be noted that a temporarily dormant autonomous nature g r e a t l y a s s i s t s the entrepreneur to advance to higher l e v e l s i n the development of h i s e n t e r p r i s e and that a strong w i l l i s o f t e n necessary to counterbalance the managerial incompetence of many a s p i r i n g and s t r u g g l i n g entrepreneurs. The above statements may be some-what of an o v e r g e n e r a l i z a t i o n , as i t i s p o s s i b l e to f i n d examples of businesses that d i d t h r i v e p r i m a r i l y on the t e c h n i c a l competence and/or the blood, sweat, and t e a r s , r a t h e r than on the business a b i l i t i e s of the p r o p r i e t o r s . However, many of these same cases where e x c e p t i o n a l growth occurred, would probably show that the p r o p r i e t o r was very f o r -tunate to have other business men around at the proper moment to develop the mechanisms and adapt them to manufacturing o p e r a t i o n s , market the product, and provide f i n a n c i n g over the t r i a l p e r i o d s . The securing of f i n a n c i n g to provide purchasing power f o r the f i r m or to compensate f o r lags between the a c q u i s i t i o n of resources and the d i s p o s a l of the product or s e r v i c e , i s one of the greatest dilemmas f a c i n g the prospective entrepreneur during the execution stage. In f a c t , the a b i l i t y to secure f i n a n c i n g can be c l a s s e d as a s p e c i a l e n t r e p r e n e u r i a l s k i l l i n i t s e l f . The f i n a n c i a l community i s one of the most i n f l e x i b l e aspects of the business environment. F i n a n c i a l i n s t i t u -t i o n s are not prone to supporting e n t r e p r e n e u r i a l ventures which are 20. considered as 'high r i s k . ' Roland Robinson, i n h i s book Financing the 10 Dynamic Small Firm, points out t h a t , "Finance i s a f i e l d i n which convention and conformity may be given too high a v a l u e , w h i l e aggressive entrepreneurship i s given too l i t t l e weight." One can h a r d l y blame the f i n a n c i a l community f o r what seems to be a conservative a t t i t u d e as f a r as p r o v i d i n g venture c a p i t a l f o r small businesses. The firms w i t h i n i t are i n business f o r p r o f i t , and there are other o u t l e t s f o r t h e i r funds which y i e l d high returns but which do not e n t a i l the supporting of high r i s k , non-conforming, ' a l l eggs i n one basket' types of e n t e r p r i s e . The study by C o l l i n s et a l i n d i c a t e s that many entrepreneurs b u i l t up poor r i s k records as they obtained experience and knowledge i n the 'school of hard knocks,' chasing the pot of gold at the end of the rainbow. However, f i n a n c i a l sources do not and cannot r e a l i s t i c a l l y be expected to regard f a i l u r e as favorable experience or i n turn as c o l l a t e r a l , r egardless of the lessons that were learned from i t . In a d d i t i o n , i n a l a r g e number of i n s t a n c e s , the prospective entrepreneur i s not capable of preparing and presenting a proposal that d e l i n e a t e s h i s intended venture to the s a t i s f a c t i o n of the lenders f o r whose funds the i n d i v i d u a l entrepreneur i s competing w i t h stronger, more s o l v e n t , and more s o p h i s t i c a t e d borrowers 11 who can demonstrate p r o f i t a b i l i t y and who are t h e r e f o r e more a t t r a c t i v e . As a consequence of the forementioned f a c t o r s the lack of f i n a n c i a l support f o r the small independent businessman may n e c e s s i t a t e the use of improper, severely r e s t r i c t i v e , or f a t a l l y i n f l e x i b l e f i n a n c i n g , f o r c e operation i n a l i m i t e d number of a l t e r n a t i v e f i e l d s r e q u i r i n g l e s s c a p i t a l , or f o r c e o p e r a t i o n on a l i m i t e d resource and perhaps inadequate s c a l e i n a chosen f i e l d . I f t h i s i s the case then i t i s easy to see that the poor h i s t o r i c a l record of the small independent businessman and the adverse 21. s p e c u l a t i o n as to the p r o b a b i l i t y of success f o r the p o t e n t i a l entre-preneur may q u i t e f e a s i b l y lead to the i n e f f i c i e n t employment of resources i n our economy. The points to be made before l e a v i n g t h i s s e c t i o n are t h a t : (1) In most cases of s u c c e s s f u l independent entrepreneurship, complete autonomy must be temporarily s a c r i f i c e d f o r s u r v i v a l because of the n e c e s s i t y of amassing r e q u i r e d resources to sus-12 t a i n the venture. (2) The execution f u n c t i o n i s the most demanding upon the entrepreneur i n terms of the o p e r a t i o n a l requirements of the f u n c t i o n , the s k i l l needed to perform the f u n c t i o n , and the vast array of p o s s i b l e personal s a c r i f i c e s and o f t e n necessary reallignment or r a t i o n a l i z a t i o n of the i n d i v i d u a l ' s d e s i r e s and b e l i e f s a r i s i n g out of the need to temporarily subordinate same. (3) The r e f u s a l of the p r o s p e c t i v e entrepreneur to compromise h i s independent i d e a l s even i n the short run to conform to the standards of those e n t i t i e s on whom he may r e l y f o r advisory or m a t e r i a l a s s i s t a n c e , may hinder h i s e n t r e p r e n e u r i a l development by stopping the r e a l i z a t i o n of the f u l l p o t e n t i a l or even the k i c k - o f f of the venture, subsequently causing the i n e f f i c i e n t employment and/or loss of resources through, (1) the impeded development of the e n t e r p r i s e due to operation on an i n a p p r o p r i a t e s c a l e , or (2) the f a i l u r e of the e n t e r p r i s e based on a c r i t e r i a of r e l a t i v e p r o f i t a b i l i t y i n s o c i e t y . 22. Planning The planning f u n c t i o n may be looked upon g e n e r a l l y as the aggran-dizement of the e n t e r p r i s e or that stage of development beginning where the entrepreneur attempts to take steps to f i r m l y e s t a b l i s h a steady heart-beat f o r the venture. To the t r a d i t i o n a l independent entre-preneur, t h i s stage h o p e f u l l y and most notably represents the r e - a t t a i n -ment of autonomy. On one hand, t h i s re-establishment of independence t y p i c a l l y and i d e a l l y involves the s o l i d i f i c a t i o n of contacts which are deemed to be healthy from the point of view of a l l o w i n g the entrepreneur to perceive the e n t e r p r i s e as a v e h i c l e f o r personal goal attainment. On the other hand, i t inv o l v e s the severing of r e l a t i o n s h i p s , attachments to c e r t a i n modes of behavior, or any other element which i s deemed to be unhealthy on the b a s i s of the same c r i t e r i a considered w i t h respect to the s o l i d i f i c a t i o n of c o n t a c t s . Up u n t i l t h i s l e v e l of performance the e n t r e p r e n e u r i a l venture could be c h a r a c t e r i z e d as a 'contingent o p e r a t i o n , ' dependent f o r i t s s u r v i v a l on a number of u n c e r t a i n and o f t e n u n c o n t r o l l a b l e i n f l u e n c e s , be they: o p e r a t i o n a l , f i n a n c i a l , marketing, or management. At t h i s p o i n t as C o l l i n s et a l see i t , "both he (the entrepreneur) and the f i r m operate on a h i g h l y pragmatic, emotional, and h:and-to-mouth b a s i s . Now the entrepreneur must begin to disengage h i m s e l f from the minute problems of the f i r m , sever h i s bonds of c l o s e emotional involvement w i t h the present, and devote i n c r e a s i n g amounts of time and energy to the o v e r a l l o r g a n i z a t i o n of the f i r m and to the planning f o r i t s f u t u r e i n the i n t e r -13 mediate and long range." Up to t h i s point i t has been asserted that the goal of the entre-preneur at t h i s planning stage i s the r e g a i n i n g of c o n t r o l . I t i s almost 23. imperative that t h i s process occur through the b e n e f i t s of success: success which can f a c i l i t a t e the buying out of a p a r t n e r ; success which makes a v a i l a b l e new and b e t t e r means of f i n a n c i n g ; success which can a t t r a c t b e t t e r sources of supply; success which allows among other t h i n g s , i n t e g r a t i o n , s o p h i s t i c a t i o n , s y s t e m a t i z a t i o n , or r e - s t r u c t u r i n g w i t h i n and without the f i r m ; and success which breeds success i n the marketplace. I f the entrepreneur i s fortunate i n the performance of t h i s f u n c t i o n , he may have c o n t r o l of a greater mass of resources than those which he temporarily f o r f e i t e d c o n t r o l of i n previous stages of development. This s i t u a t i o n was a n t i c i p a t e d , as i t was on the b a s i s of t h i s e v e n t u a l i t y that he traded away some of h i s independence. However, what i s important and perhaps a l s o not a c t u a l l y contemplated, i s the f a c t that i n a l l p r o b a b i l i t y a b u r e a u c r a t i c o r g a n i z a t i o n a l s t r u c t u r e has been created as subordinated s p e c i a l i s t s were r e c r u i t e d to provide the f i r m w i t h the knowledge and t a l e n t i t needed to expand under the r u l e of an i n d i v i d u a l w i t h the character make-up of the t y p i c a l independent e n t r e p r e n e u r . ^ I t i s somewhat p a r a d o x i c a l that many entrepreneurs who proceed to an advanced stage of planning, on past mere r e g a i n i n g of c o n t r o l and i n t o what has been c a l l e d aggrandizement, end up c r e a t i n g the types of expansive h i e r a r c h i e s which they i n i t i a l l y sought to escape. This,may point out a s a l i e n t feature of the e n t r e p r e n e u r i a l type, and one which w i l l become i n c r e a s i n g l y important i n t h i s t r e a t i s e when e n t r e p r e n e u r i a l behavior i s examined i n large s c a l e o r g a n i z a t i o n s . The feature which i s r e f e r r e d to i s that i t may not n e c e s s a r i l y be the f a c t of o r g a n i z a t i o n a l h i e r a r c h i e s which i s abhorred by the escapee (the i n d i v i d u a l entrepreneur) but r a t h e r any s t r u c t u r e which places him i n a subordinate p o s i t i o n which seemingly l i m i t s or threatens to l i m i t h i s personal achievement or goal 24. attainment. While i t i s not intended that t h i s point be belabored at t h i s time, an explanation may be a p p r o p r i a t e . Every businessman i s subordinate to or y i e l d s to the d e s i r e s of another i n some re s p e c t , i f only to the consumer from the point of view of r e a c t i n g to changing demand. However, t h i s f a c t need not a f f e c t the independent entrepreneur to a great extent, as i t i s the o v e r - r i d i n g perception and not n e c e s s a r i l y the existence i n r e a l i t y of d e s t r u c t i v e subordination that seems to be harmful to entre-p r e n e u r i a l d r i v e . Entrepreneurs who have b u i l t s u c c e s s f u l o r g a n i z a t i o n s do not perceive the subordinate elements of t h e i r r o l e even though they may be present. This i s because of the o p e r a t i o n a l a u t h o r i t y and auto-nomy which they maintain i n t h e i r i n t e r n a l work r e l a t i o n s h i p s . I t i s mainly i n the making of d e c i s i o n s i n v o l v i n g t h e i r e x t e r n a l ecology that subordinate elements enter the business leader's r o l e . However, even here he may r a t i o n a l i z e h i s independence because as the head and u s u a l l y the owner of h i s o r g a n i z a t i o n he always r e t a i n s autonomy w i t h regard to the d e c i s i o n to y i e l d , s a t i s f y , f a i l , or q u i t . This element of perceived c o n t r o l i s very important i n the shaping of e n t r e p r e n e u r i a l behavior and w i l l be d e a l t w i t h more e x t e n s i v e l y i n the f o l l o w i n g s e c t i o n . The preceding s e c t i o n has very g e n e r a l l y o u t l i n e d the ' t e s t i n g process ' f o r the entrepreneur through the d e l i n e a t i o n of those primary functions which he must perform i n proving h i m s e l f worthy of the d i s t i n c -t i o n - -entrepreneur . However, the term entrepreneur does not r e f e r merely to the graduate of t h i s process, but r a t h e r more nebulously to the i n d i v i d u a l possessing c e r t a i n personal q u a l i t i e s and showing a d i s t i n c -t i v e temperament i n h i s actions manifest i n h i s business endeavors. I t i s these c h a r a c t e r i s t i c s , here l a b e l l e d as ' e n t r e p r e n e u r i a l ' , which have 25. d i s t i n g u i s h e d the entrepreneur as, "the bearer of the mechanism of change, and which have because of t h e i r s t o c h a s t i c i t y eluded those who would e x p l a i n them. In the f o l l o w i n g s e c t i o n , a p r e s e n t a t i o n w i l l be made of those b e h a v i o r a l a t t r i b u t e s deemed to be most r e l e v a n t i n determining e n t r e p r e n e u r i a l v a l u e , those b e h a v i o r a l a t t r i b u t e s which i t i s b e l i e v e d must be understood and catered to i f the e n t r e p r e n e u r i a l type i s to be employed i n our ever-changing s o c i e t y , and those b e h a v i o r a l a t t r i b u t e s which merit r e c o g n i t i o n on the b a s i s of t h e i r importance i n maintaining the ever-changing nature of s o c i e t y . I I I . ENTREPRENEURIAL BEHAVIOR CHARACTERISTICS There are c e r t a i n b e h a v i o r a l c h a r a c t e r i s t i c s and a t t i t u d e s which seem to be inherent i n the entrepreneur, and which a l s o appear to s u s t a i n or guide him through the performance of the e n t r e p r e n e u r i a l f u n c t i o n s . These c h a r a c t e r i s t i c s are not e x c l u s i v e to entrepreneurs, but they have g e n e r a l l y been found to be present i n i n d i v i d u a l s t r a d i t i o n a l l y and h i s t o r i c a l l y considered as e n t e r p r i s i n g men. Likewise, an entrepreneur need not always act i n a manner t y p i c a l of h i s status or c o n s i s t e n t w i t h h i s a t t r i b u t e d behavior mode, but may perform other r o l e s as w e l l and s t i l l remain an entrepreneur. E n t r e p r e n e u r i a l behavior as manifest i n an i n d i v i d u a l involved i n a business e n t e r p r i s e can be viewed as a l i n k between some motivating i n f l u e n c e and economic p r o d u c t i v i t y , i n that i t i s the entrepreneur who according to t r a d i t i o n a l theory organizes the f i r m and/or increases i t s p r o d u c t i v i t y . For t h i s reason i t i s very d i f f i c u l t to r e a l i s t i c a l l y discuss e n t r e p r e n e u r i a l behavior apart from the motivating in f l u e n c e s which i n large part determine i t . In a d d i t i o n , i t should a l s o be noted 26. that i t may be impossible to o b j e c t i v e l y analyze independent entrepreneurs as a group when i n r e a l i t y each i n d i v i d u a l may best be studied as some combination of environmental v a r i a b l e s culminating i n a c e r t a i n type of behavior. Therefore, i n t h i s s e c t i o n an attempt w i l l be made to o u t l i n e c e r t a i n modes of behavior and a t t i t u d e s that are u s u a l l y found i n s c r u t i n i -z i n g e n t r e p r e n e u r i a l performance. Whether or not they are i n f a c t found i s a matter of h i s t o r y , recorded i n i n d i v i d u a l cases of success and f a i l u r e . A l s o , whether or not they were instrumental i n determining the outcome of the venture i s l i k e w i s e recorded, although i n both instances d e t e c t i o n may be very s p e c u l a t i v e and i n t u i t i v e . In any case, i t w i l l be endeavored at t h i s point to e s t a b l i s h a general p e r s p e c t i v e of e n t r e p r e n e u r i a l behavior and a t t i t u d e s under the headings of r i s k ; energy; r e s p o n s i b i l i t y , c o n t r o l , and feedback; commitment; and entre-p r e n e u r i a l motives. R i s k The i n d i v i d u a l entrepreneur has t r a d i t i o n a l l y been looked upon as a r i s k - t a k e r due to the very nature of h i s a c t i v i t y i n ve n t u r i n g alone i n t o the business w o r l d . ^ The a t t r i b u t i o n of high r i s k stems mainly from two sources. F i r s t l y , there i s the p r o b a b i l i t y of f a i l u r e to get to the point of s e l l i n g or to s e l l the goods or s e r v i c e s once i n the market-place, as the business f a i l u r e s t a t i s t i c s amply confirm (Table II-B) . Secondly, there i s the requirement that the entrepreneur make d e c i s i o n s under c o n d i t i o n s of u n c e r t a i n t y , w i t h u n c e r t a i n t y being described as the degree of p r e d i c t i o n or c o n t r o l over the outcome or the v a r i a b l e s a f f e c t i n g the outcome. The d i f f i c u l t y to the pros p e c t i v e entrepreneur of p r e d i c t i n g and c o n t r o l l i n g may a r i s e because of: (1) 27. the entrepreneur's own inadequacy or incompetence; (2) the complexity of "the v a r i a b l e s inherent i n the task; or (3) the s t o c h a s t i c i t y of the r e l e v a n t parameters and t h e i r r e l a t i o n s h i p s . The concept of r i s k i s based on the p r o b a b i l i t y of loss or exposure to harm. The question w i t h regard to the entrepreneur's a t t i t u d e toward r i s k i s t h e r e f o r e : by what standard does he measure h i s a c t u a l or p o t e n t i a l loss?" Many t h e o r i s t s apply a r a t h e r l i m i t e d per-s p e c t i v e to what i s a c t u a l l y at stake i n an e n t e r p r i s e , and a s s e r t that i f the s o - c a l l e d entrepreneur i s not the e n t i t y whose c a p i t a l or other non-human resources are invested i n the e n t e r p r i s e , then he c e r t a i n l y cannot be a r i s k - t a k e r s i n c e he has nothing at stake i n the venture. There i s , n e v e r t h e l e s s , a strong arguement against t h i s a s s e r t i o n . A prospective entrepreneur may not appear at a present point i n time to be r i s k i n g anything except the l o s s of h i s own time due to the f a c t that he may have secured resources other than h i s own to s u s t a i n the venture which he i n i t i a t e d . Nevertheless, as mentioned i n the previous s e c t i o n i n the d i s c u s s i o n of the execution f u n c t i o n , on broad p o l i c y questions such as securing resources at the expense of h i g h l y valued autonomy and c o n t r o l , he appears to r a t i o n a l i z e the s i t u a t i o n i n terms of the a n t i c i p a t i o n of a f u t u r e r o l e and not h i s present s t a t e . I t i s reasonable that the r e a l r i s k to t h i s entrepreneur, and the one which he gives s u b s t a n t i a l l y more c o n s i d e r a t i o n than any other, may i n a l l p r o b a b i l i t y not be the immediate danger of the loss of c a p i t a l , even i f i t i s h i s own, but r a t h e r the danger of not being able to repay the borrowed c a p i t a l , r e g a i n c o n t r o l of the e n t e r p r i s e , and achieve an a n t i c i p a t e d status or r o l e . I f t h i s i s the case, then h i s a c t i o n s w i l l i n a l l l i k e l i h o o d be the same whether he i s involved w i t h the l o s s of 28. h i s own resources or those belonging to other i n d i v i d u a l s . That i s to say, he w i l l p r o t e c t borrowed resources w i t h the same d i l i g e n c e that he would h i s own because i t i s h i s long run goal which i s h i s major concern, which c o n t r o l s h i s d e c i s i o n , and which determines h i s a t t i t u d e toward r i s k , and t h i s a n t i c i p a t e d goal could be f o r f e i t under e i t h e r circum-stance of invested resource ownership. C a p i t a l need not be the only t h i n g which i s subject to loss or vu l n e r a b l e to danger. This p o s s i b i l i t y gains credence when i t i s observed that i n d i v i d u a l s may act or have acted i n an e n t r e p r e n e u r i a l manner even when i t was not t h e i r c a p i t a l that was i n v e s t e d , and that i n d i v i d u a l s do continue to act i n an entre-p r e n e u r i a l way even a f t e r t h e i r c a p i t a l i s secure or they are reaping s u b s t a n t i a l p r o f i t s . There have been various attempts to e x p l a i n e n t r e p r e n e u r i a l behavior under circumstances such as those mentioned above. Many of them maintain that there i s some other motive besides the ' p r o f i t motive' or the ' c a p i t a l l o s s motive' behind e n t r e p r e n e u r i a l behavior. 18 For i n s t a n c e , McClelland hypothesizes that i t i s the need to achieve which d i r e c t s e n t r e p r e n e u r i a l behavior, whereas C o l l i n s et a l seem to imply that the e n t r e p r e n e u r i a l path i s more l i k e an escape route from any number of v a r y i n g l i f e s i t u a t i o n s to which the entrepreneur may have been exposed. Both of these examples can be designated as 'push' approaches, w i t h the need to achieve or a past s i t u a t i o n , r e s p e c t i v e l y , pushing the i n d i v i d u a l i n t o a p r o t o t y p i c p a t t e r n of behavior t r a d i t i o n a l l y regarded as entrepreneurship. Out of the 'push' inf l u e n c e s a r i s e the ' p u l l ' g o a l s . These are i n r e a l i t y goals which are seen by the entre-preneur as measures of achievement, or as i n the second instance mentioned above, s t a t e s of existence which are perceived as d i f f e r e n t i n some 29. degree to those c o n d i t i o n s or r o l e s from which as escape was sought. The a c t u a l goals may be v a r i o u s l y , p r o f i t , r e c o g n i t i o n , independence, a u t h o r i t y , s t a t u s , r e s p e c t , or fame. Both the i n f l u e n c e s and the sub-sequently formed goals are important i n that they culminate i n a c e r t a i n type of behavior, and may be r e l e v a n t to the promotion and d i r e c t i o n of e n t r e p r e n e u r i a l behavior i n i n d i v i d u a l cases. The m o t i v a t i n g i n f l u e n c e on the entrepreneur w i l l have a con-s i d e r a b l e e f f e c t on h i s a t t i t u d e toward r i s k . More p a r t i c u l a r l y , i t i n f l u e n c e s h i s 'perception of r i s k ' or the perceived p r o b a b i l i t y of success or f a i l u r e i n a t t a i n i n g h i s g o a l , whatever that goal may be. An i n d i v i d u a l may be exposed to many v a r i a t i o n s of- circumstances i n h i s business endeavors, and of course h i s perception of r i s k w i l l i n l a r g e part determine h i s r e a c t i o n to those s i t u a t i o n s . H i s t o r i e s of entrepreneurs show that many i n d i v i d u a l s ventured i n t o s i t u a t i o n s where a wise and r a t i o n a l man would not proceed on the basis of known f a c t s . Although m o r t a l i t y i s high among those that f o l l o w t h i s course, c o l l e c -20 21 t i v e l y the movement may be r e l a t i v e l y productive. J . E. Sawyer a t t r i b u t e s t h i s phenomenon to the " e n t r e p r e n e u r i a l a c c e l e r a t o r . " He argues that c e r t a i n f a c t o r s , "repeatedly induce entrepreneurs and i n v e s t o r s to over-respond to e x i s t i n g market s t i m u l i and i n e f f e c t overleap e x i s t i n g economic r e a l i t i e s i n the s c a l e of t h e i r plans and i n the scope and timing of investment d e c i s i o n s ; and that i n the s p e c i a l circumstances of 19th century America t h e i r i n d i v i d u a l and c o l l e c t i v e overestimations operated to a c c e l e r a t e the process of growth and o f t e n , i n v a r y i n g measure, produced the r e s u l t , that ex post made 'economic' 22 t h e i r i n i t i a l e s timates." Thus h i s t o r i c a l l y , i n t h i s instance at l e a s t , i r r a t i o n a l i t y manifests i t s e l f as a s o r t of adventuresome s p i r i t . Those 30. that d i d s u r v i v e only d i d so out of determination, l u c k , or because of ex t r a o r d i n a r y a b i l i t y . Many i n d i v i d u a l s were s a c r i f i c e d so that a few could s u r v i v e , and i r r a t i o n a l i t y i n the undertakings, while i t d i d not prove d e f e a t i n g f o r the c o l l e c t i v e u n i t , d i d produce what might be seen as a very i n e f f i c i e n t movement from the point of view of wasted resources. The p r o v i s i o n of reasoning f o r the movement observed above does draw a t t e n t i o n to an apparent r e a l i t y of the independent entrepreneur w i t h regard to h i s perception of r i s k ; that i s h i s s e l f - c o n f i d e n c e and h i s i n c l i n a t i o n to b e l i e v e that he can do b e t t e r than the f a c t s warrant. This f a c t o r seems to be a predominant i n f l u e n c e i n most e n t r e p r e n e u r i a l h i s t o r i e s and a prime reason f o r f a i l u r e i n many of them where i n d i v i d u a l s advanced to the execution stage of e n t r e p r e n e u r i a l development with no regard f o r or ig n o r i n g the importance of the observation stage r e s u l t s , or e l s e made f a u l t y d e c i s i o n s during the execution or planning phases, being l ed by s e l f - c o n f i d e n c e r a t h e r than f a c t s . Nevertheless, i t must be acknowledged that innovation i s important to the development of a f r e e e n t e r p r i s e s o c i e t y , and that i n many instances of innovation by an entre-preneur there are no patterns to f o l l o w or f a c t s to be found. In t h i s case s e l f - c o n f i d e n c e takes up where a n a l y s i s leaves o f f i n causing the entrepreneur to act and proceed w i t h h i s venture. I t f o l l o w s that i f entrepreneurs a l l o w s e l f - c o n f i d e n c e to over-r i d e , supplement, or even rep l a c e r a t i o n a l a n a l y s i s and e v a l u a t i o n , then they must f e e l that they can i n some way i n f l u e n c e the outcome, thereby lowering the r e a l r i s k involved as f a r as they are concerned. Thus, s e l f - c o n f i d e n c e can be seen a f f e c t i n g e n t r e p r e n e u r i a l behavior w i t h regard to r i s k perception i n at l e a s t two general s i t u a t i o n s : 31. (1) In instances of moderate u n c e r t a i n t y , the entrepreneur w i l l proceed on the assumption that h i s e f f o r t s and s k i l l s w i l l make a d i f f e r e n c e i n the outcome; and (2) In instances of high u n c e r t a i n t y the s e l f - c o n f i d e n t entrepreneur w i l l go ahead even though the outcome may i n f a c t be so f o r t u i t o u s as to be based s o l e l y on l u c k . Of course, i f there i s a way to hedge the r i s k at l i t t l e expense r e l a t i v e to the reward aspects of the task, then the entrepreneur w i l l employ i t . However, he w i l l n e i t h e r be discouraged to any great extent by the i n a b i l i t y to o b t a i n b e t t e r odds f o r success nor w i l l he customarily deem excessive expenditures f o r some s o r t of insurance of hedge against loss as being j u s t i f i a b l e . Thus, i t could be summized that s e l f - c o n f i d e n c e exerts the most i n f l u e n c e on the entrepreneur's perception of h i s a b i l i t y to i n f l u e n c e the outcome of the venture, and as a r e s u l t the length of the odds as to the p r o b a b i l i t y of favorable outcome (measure of r e a l r i s k ) has a m i t i g a t e d i n f l u e n c e . In a sense one could say that the entrepreneur does not r e a l l y see h i m s e l f as a r i s k - t a k e r , as any r i s k that may be present i s tempered i n h i s own mind by h i s s e l f - c o n f i d e n c e . By way of summary i n t h i s s e c t i o n , a few points should be noted: (1) The q u a l i t y of being a r i s k - t a k e r , from the point of view of an observer, i s one of the most d i s c e r n a b l e a t t r i b u t e s of the entre-preneur. However, i t i s at one and the same time, one of the most val u a b l e elements i n h i s worth to a f r e e e n t e r p r i s e s o c i e t y and one of the most serious sources of i n e f f i c i e n t a p p l i c a t i o n 23 of resources i n our economy. (2) The entrepreneur may not evaluate of consider r i s k r e a l i s t i c a l l y i n the eyes of a non-entrepreneur because h i s perception of the r e a l r i s k involved seems to be a l t e r e d by: (A) s e l f - c o n f i d e n c e ; (B) incompetence r e s u l t i n g i n the i n a b i l i t y or neglect of proper r i s k e v a l u a t i o n ; or (C) fear of what the r e s u l t w i l l be of i n -24 a c t i o n or of not making the d e c i s i o n to accept the r i s k . As noted i n S e c t i o n I I of t h i s chapter under the d i s c u s s i o n of the execution f u n c t i o n , the entrepreneur's a b i l i t y to acquire resources to s u s t a i n h i s venture o f t e n depends on h i s a b i l i t y to i n s p i r e i n others the same confidence that he has i n h i m s e l f , w i t h regard to the undertaking of r i s k s i n the proposed venture. However, the business environment i s not always perceived r e a l i s -t i c a l l y by the entrepreneur, but r a t h e r as an 'image' shaped by h i s own e x p e c t a t i o n s . The image and not the f a c t u a l p i c t u r e i s o f t e n what the entrepreneur bases h i s a c t i o n s i n and p e r c e p t i o n of the venture upon. Those on whom the entrepreneur depends f o r resources based t h e i r d e c i s i o n s on observable f a c t . They do not see the image shaped by h i s s e l f - c o n f i d e n c e and they are t h e r e f o r e r e l u c t a n t to render a s s i s t a n c e , as they b e l i e v e that the outcome of the e n t e r p r i s e depends on the f a c t s and not on the image. I t i s the e x c e p t i o n a l entrepreneur who can r e l a y h i s image i n t o the minds of o t h e r s , but then i t i s the e x c e p t i o n a l entrepreneur who succeeds i n b u i l d i n g a prosperous business . Non-aversion to r i s k can be productive i f c o n t r o l l e d . However, i f i t becomes rampant to the point of i r r e s p o n s i b i l i t y then i t may r e s u l t i n the misuse of resources and subsequent i n e f f i c i e n c y i n the progress of a n a t i o n . 33. Energy The t r a d i t i o n a l independent entrepreneur i s u s u a l l y deemed to possess a q u a l i t y which manifests i t s e l f i n the working of long hours, and the d i s p o s i t i o n to hard work and c o n s i s t e n t i n n o v a t i o n seemingly d i r e c t e d to the attainment of some g o a l s , i r r e s p e c t i v e of whether that goal i s admitted or i d e n t i f i a b l e . In t h i s t r e a t i s e , t h i s q u a l i t y w i l l be designated as 'energy'. The untrained observer, conditioned as he i s by t r a d i t i o n a l b e l i e f s as to e n t r e p r e n e u r i a l endeavor and the i n f l u e n c e of the p r o t e s t a n t e t h i c which emphasizes the p u r s u i t of i n d i v i d u a l s a l v a t i o n through hard work, t h r i f t , and competitive s t r u g g l e , customarily a t t r i -butes e n t r e p r e n e u r i a l energy to productive i n i t i a t i v e or ambition. This may of course be t r u e , but there are a number of other p o s s i b l e l e s s m e r i t o r i o u s explanations which may r e s u l t i n what seems to be vigorous a p p l i c a t i o n of e f f o r t . For instance: (1) The i n d i v i d u a l may be incompetent, such that he works so i n -e f f i c i e n t l y or i n e f f e c t i v e l y , that long hours and hard work are necessary to a t t a i n even minimal l e v e l s of achievement; (2) The i n d i v i d u a l may be so f o o l i s h l y independent as to i n s i s t on doing everything h i m s e l f so as not to be c o n t r o l l e d by anything but h i s own d e s i r e s ; (3) The i n d i v i d u a l may be so conditioned by past environmental exposures and i n f l u e n c e s that he does not r e a l i z e or at l e a s t acknowledge that there i s any other way to l i v e . The s o - c a l l e d entrepreneurs c h a r a c t e r i z e d by the three examples suggested above are obviously not the ones whose existence i t i s d e s i r a b l e to perpetuate to s u s t a i n economic growth i n a f r e e e n t e r p r i s e s o c i e t y . 34. These might be seen as unstable forms of entrepreneurship, as i n the absence of t r u l y outstanding a b i l i t y , l u c k , or moral f o r t i t u d e , they u s u a l l y r e s u l t i n f a i l u r e , subsistence p r o d u c t i v i t y , or an outlook which i s e a s i l y a l t e r e d by even l i m i t e d successes. There i s some contention that hard work i s c h a r a c t e r i s t i c of most s u c c e s s f u l people and not j u s t entrepreneurs. This may be t r u e , as most case h i s t o r i e s of s u c c e s s f u l people r e v e a l traces of the age ol d idea that very l i t t l e of any worth comes easy i n l i f e and that success was the r e s u l t o f concentrated e f f o r t . What could be pointed out by the above observation i s that an i n d i v i d u a l need not be an entre-preneur to act i n an e n t r e p r e n e u r i a l way w i t h regard to the 'energy' f a c t o r , and that v i c e - v e r s a , an entrepreneur need not behave i n an e n t r e p r e n e u r i a l way i n a l l s i t u a t i o n s . However, what i s r e a l l y of i n t e r e s t and relevance to the study of entrepreneurship i s not whether hard work i s necessary to achieve success, but r a t h e r what produces i n the entrepreneur what appears to be ah almost i n s a t i s b l e d r i v e , need, or d e s i r e to go on i n the face of a d v e r s i t y or to seek f u r t h e r accomplishment through new inno-v a t i o n s even a f t e r short run l e v e l s of success have been a t t a i n e d . One q u i t e reasonable p r o p o s i t i o n that has been put forward i s that the 'need to achieve' i s r e s p o n s i b l e f o r e n t r e p r e n e u r i a l d r i v e or 25 energy. The very nature of e n t r e p r e n e u r i a l endeavor implies r e l a t i v e l y high r i s k . Yet, as suggested i n the previous s e c t i o n on the r i s k bearing a t t i t u d e s of the entrepreneur, r i s k w i l l not n e c e s s a r i l y be a discouraging i n f l u e n c e i f the i n d i v i d u a l perceives that h i s s k i l l s and e f f o r t s w i l l make a d i f f e r e n c e i n the outcome. As a r e s u l t , the entrepreneur considers h i m s e l f almost t o t a l l y r e s p o n s i b l e f o r the outcome of the task because he th i n k s b a s i c a l l y i n terms of what he has at stake, namely, 35. the achievement of h i s own aims be they i n the form of escape or achieve-ment, and more s p e c i f i c a l l y i n terms of what he must c o n t r i b u t e i n order that these aims are achieved. Therefore, i n view of the inherent r i s k of the t y p i c a l e n t r e p r e n e u r i a l s i t u a t i o n , and the perceived capacity to in f l u e n c e and the t o t a l r e s p o n s i b i l i t y outlook of the entrepreneur w i t h respect to t h i s s i t u a t i o n , the only r a t i o n a l a l t e r n a t i v e open to him i f he i s to make h i s t a l e n t , determination, f a i t h , and confidence manifest i n the achievement of the des i r e d end, i s the vigorous a p p l i c a t i o n of s k i l l and e f f o r t to the great e s t degree of .which he i s capable. In 26 support of t h i s c o n t e n t i o n , McClelland found i n h i s s t u d i e s , that people w i t h high achievement motives tended to work harder when i t counted f o r personal achievement or when personal e f f o r t would make a d i f f e r e n c e i n the outcome. This would apparently f i t the behavior of the independent entrepreneur very w e l l i n that he appears to d i r e c t l y r e l a t e h i s a n t i c i p a t e d achievement w i t h h i s own e f f o r t s . A second p r o p o s i t i o n which may e x p l a i n e n t r e p r e n e u r i a l energy, and which i s perhaps complementary to McClelland's need to achieve, i s that which i s designated i n t h i s t h e s i s as 'entrep r e n e u r i a l i d e n t i f i -c a t i o n . ' E n t r e p r e n e u r i a l i d e n t i f i c a t i o n i s the manner i n which an entre-preneur i d e n t i f i e s w i t h some groups of i n d i v i d u a l s and behaves i n a manner commensurate w i t h h i s perception of the sentiments, v a l u e s , and norms of the group. The question at hand i s t h e r e f o r e : What group i s i t w i t h whom the entrepreneur i d e n t i f i e s ? Since the entrepreneur seems to th i n k p r i m a r i l y i n terms of some nebulous a n t i c i p a t e d r o l e and not h i s present s t a t u s , i t stands to reason that he should seek i d e n t i f i c a t i o n w i t h some group of i n d i v i d u a l s w i t h whom he expects to be a peer at some f u t u r e time. In a l l l i k e l i h o o d 36. t h i s group w i l l be those whom he deems to have achieved e n t r e p r e n e u r i a l success. The key word to h i s a s p i r a t i o n l e v e l and i t s e f f e c t on h i s energy l e v e l i s the word 'success. 1 In seeking to a t t a i n h i s goal through the mechanism of becoming an independent businessman, the pros-p e c t i v e entrepreneur apparently d e s i r e s a ' d i r e c t reward' s i t u a t i o n and an escape from what he sees as the c o l l e c t i v i z i n g and b u r e a u c r a t i z a t i o n of s o c i e t y . As a r e s u l t , the new i n d i v i d u a l entrepreneur w i l l not customarily consider as h i s e n t r e p r e n e u r i a l model those firms which were p r e v i o u s l y designated i n t h i s chapter as being 'aggrandized,' because having reached a more s o p h i s t i c a t e d l e v e l of success t h e i r e n t r e p r e n e u r i a l q u a l i t i e s are i n a sense camoflaged and they appear to the entrepreneur as c o l l e c t i v i z e d and b u r e a u c r a t i z e d ; q u a l i t i e s which he s t i l l i d e a l i s -t i c a l l y b e l i e v e s he i s escaping. Consequently, he w i l l probably look to those firms which appear to be s u c c e s s f u l enough : but which are i n r e a l i t y perhaps only e n t e r i n g a period of planning and aggrandizment, are s t i l l working hard to b u i l d , but which t y p i f y what he expects to see i n an e n t r e p r e n e u r i a l f i r m i n view of h i s independent standards . This perception w i l l r e s u l t i n the e x h i b i t i o n of the d i l i g e n t hard working behavior which: (1) he perceives i s expected by and i s c h a r a c t e r i s t i c of those belonging to h i s a n t i c i p a t e d peerage group; and (2) he deems necessary to a t t a i n h i s a n t i c i p a t e d peerage l e v e l , i.e. D i l i g e n c e w i l l be rewarded by acceptance and achievement. Up to t h i s p o i n t under the general heading of 'energy,' t h i s t h e s i s d e a l t p r i m a r i l y w i t h e n t r e p r e n e u r i a l d i l i g e n c e and perseverance. These are without question very important aspects of the e n t r e p r e n e u r i a l character which i s so v a l u a b l e to a developing f r e e e n t e r p r i s e s o c i e t y . However, there i s another perhaps more important aspect to energy which w i l l be designated here as 'en t r e p r e n e u r i a l goal p e r s p e c t i v e . 1 In the f o l l o w i n g paragraphs a case w i l l be presented f o r the b e l i e f that i t i s e n t r e p r e n e u r i a l goal p e r s p e c t i v e which keeps an entrepreneur behaving i n an e n t r e p r e n e u r i a l manner even a f t e r he has achieved success and has b u i l t up h i s e n t e r p r i s e . Joseph Schumpeter, a s s e r t s t h a t , "Everyone i s an entrepreneur only when he a c t u a l l y ' c a r r i e s out new combinations' and loses that character as soon as he has b u i l t up h i s business, when he s e t t l e s down 27 to running i t as other people run t h e i r businesses." Various observa-t i o n s can be made or implied from t h i s statement among which are: (1) The term 'entrepreneur' i s a dynamic concept and a p p l i e s to those i n d i v i d u a l ( s ) who are developing resources. That i s , they are employing resources in.new or d i f f e r e n t ways. (2) An i n d i v i d u a l ( s ) ceases to be an entrepreneur not at that p o i n t where he has b u i l t up h i s o r g a n i z a t i o n but r a t h e r when he ceases 28 to employ the resources which he can command i n new combinations. By t h i s i t i s not meant that p r o f i t s , s a l e s , share of the market, or asset holdings must be increased, although these may or may not be a r e s u l t of the e n t r e p r e n e u r i a l endeavors. What i s meant i s that i n a competitive environment ( i m p e r f e c t ) , as an i n d i v i d u a l s t r i v e s to maintain a d i f f e r e n t i a l advantage i n order to surpass h i s competitors or even merely s u r v i v e at a set plateau of growth, he must do something new, b e t t e r than, or d i f f e r e n t than h i s competitors. I t i s the c o n s i s t e n t process of 'doing' these things which q u a l i f y a man as an entrepreneur and make him of , . .• 29 value i n our s o c i e t y . (3) There may come a time i n the development of a prosperous o r g a n i z a t i o n 38. when the o r i g i n a l founder ceases to be the a c t u a l innovator i n the o r g a n i z a t i o n , but rat h e r becomes a s o r t of comptroller of change or i n n o v a t i o n ; tasks which are assumed by other new blood i n the f i r m . The question then a r i s e s as to whether the founder i s s t i l l an entrepreneur now that he has become an o r g a n i z a t i o n b u i l d e r , s t a r t i n g w i t h an o r g a n i z a t i o n r a t h e r than from s c r a t c h . Harbison and Myers would say yes, "he i s the c a t a l y t i c agent i n the process of i n d u s t r i a l i z a t i o n ; i . e . he acts and rea c t s w i t h the economic and s o c i a l environment to b r i n g about economic 30 change." Therefore, Schumpeter's p r o p o s i t i o n that the i n d i v i d u a l ceases to be an entrepreneur at that point i n time when h i s o r g a n i z a t i o n i s ' b u i l t up 1 only a p p l i e s when the i n d i v i d u a l has no i n t e n t i o n of or does not attempt to b u i l d f u r t h e r or b u i l d anew. The preceding observations have been presented to set the stage f o r a c l e a r e r understanding of what has been designated as 'en t r e p r e n e u r i a l goal p e r s p e c t i v e . ' In a d d i t i o n , f o r purposes of c l a r i f i c a t i o n i n the explanation to f o l l o w , a goal per se w i l l be defined as: something which i s sought and f o r which an e f f o r t i s made as the r e s u l t of some moti v a t i n g i n f l u e n c e . The two extremes of goal p e r s p e c t i v e which w i l l be presented are: (1) closed-ended, and (2) open-ended. The closed-ended goal p e r s p e c t i v e i s a non-entrepreneurial per-s p e c t i v e , and can be represented as a s o r t of 'tunnel-vis i o n . ' I t i s described as such because i t i s a l i m i t e d p e r s p e c t i v e i n both i t s forward and l a t i t u d i n a l dimensions. The i n d i v i d u a l w i t h t h i s type of persp e c t i v e sees a goal i n the f u t u r e , a t t a i n a b l e through a c e r t a i n s p e c i f i e d process or s e r i e s of ste p s , and perhaps preceded by a number of stages which he may or may not perceive as sub-goals. He obtains s a t i s f a c t i o n 39. when he has reached that main goal and i s motivated p r i m a r i l y by h i s contemplation of i t s attainment. During the process of goal attainment the i n d i v i d u a l a n t i c i p a t e s very l i t t l e d e v i a t i o n from h i s chosen path and very l i t t l e to s t r i v e f o r of any consequence beyond h i s chosen g o a l . As a r e s u l t , when h i s goal i s a t t a i n e d he becomes very s e c u r i t y minded w i t h no perception of the future i n v o l v i n g any change i n h i s p o s i t i o n or ideas, and very much concerned w i t h preserving the status quo. This type of goal p e r s p e c t i v e represents an e a s i l y f r u s t r a t e d and unproduc-t i v e (from an innova t i o n standpoint) source of m o t i v a t i o n because: (1) Since the attainment of h i s main goal i s the only r e a l source of s a t i s f a c t i o n to the i n d i v i d u a l w i t h a closed-ended goal perspec-t i v e , he re c e i v e s very l i t t l e s a t i s f a c t i o n i n the i n t e r i m periods as the steps toward h i s goal are climbed. I f the process i s lengthy or delayed f o r some reason, then he may lose h i s d r i v e because i t i s i n essence not being f u e l e d . (2) Since the i n d i v i d u a l w i t h the closed-ended goal p e r s p e c t i v e has more or l e s s chosen the path to h i s g o a l , he w i l l develop a vested i n t e r e s t i n t h i s path as he advances along i t . The more vested h i s i n t e r e s t , the l e s s r e c e p t i v e he w i l l become to a l t e r -nate ways of a c t i n g and the l e s s adaptive he w i l l be to change. As a r e s u l t , he becomes l e s s i n c l i n e d to a l t e r e i t h e r h i s goal or h i s approach to i t . This a t t i t u d e i s not conducive to innovation e i t h e r from w i t h i n h i m s e l f or from the dark closed out areas i n h i s p e rception t u n n e l . The closed-ended goal p e r s p e c t i v e proposed above, was presented p r i m a r i l y f o r purposes of comparison and b e t t e r understanding of the open-ended goal p e r s p e c t i v e which w i l l now be presented. I t i s hypothesized 40. by t h i s t h e s i s that the open-ended goal p e r s p e c t i v e i s an e n t r e p r e n e u r i a l p e r s p e c t i v e . The i n d i v i d u a l w i t h t h i s type-of perspective sees a g o a l , not as an end i n i t s e l f , but r a t h e r as a measure of progress along an open-ended time-achievement continuum,"^ and a plateau i n the process of personal development. This i n d i v i d u a l derives s a t i s f a c t i o n through advancing along t h i s time-achievement continuum, s t r i v i n g f o r meaningful goals which he r e a l i z e s he may or may not a t t a i n because: (1) new knowledge and experience gained i n the achieving process may a l t e r the d e s i r a b i l i t y of these g o a l s , or (2) due to h i s needs f o r dynamism i n h i s endeavors, he may become r e s t l e s s during the f i n a l stages of task completion, l e a v i n g them to someone e l s e w h i l e he moves on to new and perhaps more c h a l l e n g i n g t a s k s . The plateaus mentioned above serve as p o i n t s of renewal, where on the b a s i s of an ever-widening pers p e c t i v e and an expanding inform a t i o n and experience base, new orders of innova-t i o n , achievement, and development may be i n i t i a t e d . The p r o p o s i t i o n that the open-ended goal p e r s p e c t i v e f a c i l i t a t e s the d e r i v i n g of s a t i s -f a c t i o n from the forward dynamics of the l e a r n i n g and achieving process r e l a t i v e to some s t a r t i n g p o i n t , i s a l o g i c a l e x p l a n a t i o n f o r the behavior of the e n t r e p r e n e u r i a l type i n abandoning tasks or p r o j e c t s which do not promise advancement on the r e l e v a n t continuum, because under the i m p l i -c a t i o n s of t h i s p r o p o s i t i o n h i s i n t e r e s t are vested i n the forward movement and not n e c e s s a r i l y the attainment of a s p e c i f i e d g o a l , and the abandonment does not n e c e s s a r i l y f r u s t r a t e h i s forward movement. I t l o g i c a l l y f o l l o w s that the e n t r e p r e n e u r i a l type w i l l i n a l l l i k e l i h o o d be r e c e p t i v e to a l t e r n a t e ways of a c t i n g and w i l l be q u i t e able and w i l l i n g to adapt to and i n i t i a t e changes as long as they do not impair or threaten h i s forward movement on h i s goal continuum. This type of 41. m o t i v a t i n g i n f l u e n c e i s not e a s i l y f r u s t r a t e d and i s r e l a t i v e l y produc-t i v e from an innovation standpoint because: (1) I f the i n d i v i d u a l ' s forward movement i s f r u s t r a t e d , h i s only a l t e r n a t i v e i s change, and change leads to in n o v a t i o n . (2) As long as the i n d i v i d u a l i s moving forward on h i s r e l e v a n t continuum h i s d r i v e i s co n s t a n t l y being f u e l e d . I f he becomes f r u s t r a t e d , he can q u i t at any time w i t h the f e e l i n g that he i s ahead and w i l l g a in r a t h e r than lose due to h i s abandonment of the task. (3) The i n d i v i d u a l who desires to advance i n an i m p e r f e c t l y competitive (excluding monopoly) labor market, must d i f f e r e n t i a t e h i s product; and any process of d i f f e r e n t i a t i o n i s conducive to in n o v a t i o n . Various approaches to the energy of the entrepreneur and h i s source of mo t i v a t i o n have been presented i n t h i s s e c t i o n , and although they are not e n t i r e l y s i m i l a r i n a l l r e s p e c t s , they do give some i n d i -c a t i o n of the p r e r e q u i s i t e s f o r the energy producing environment or s i t u a t i o n . F i r s t l y , there must be a p o t e n t i a l e n t r e p r e n e u r i a l type a s p i r i n g to some r o l e or goal as the r e s u l t of a strong m o t i v a t i n g i n f l u e n c e . Secondly, there must be a c h a l l e n g i n g or perhaps r i s k y s i t u a t i o n which acts as an o u t l e t f o r the entrepreneur's e n e r g e t i c quest to s a t i s f y h i s need f o r achievement, i r r e s p e c t i v e of the terms the achievement i s measured i n . T h i r d l y , the entrepreneur must perceive h i m s e l f as having d i r e c t c o n t r o l of the r e l e v a n t v a r i a b l e s determining the success of the venture, because from t h i s p e r c e p t i o n the venture i s seen as having a d i r e c t r e l a t i o n s h i p between h i m s e l f , the s a t i s f a c t i o n of h i s own needs and d e s i r e s , and the attainment of the goals which are a measure of h i s achievement. L a s t , there must be some method of feedback. In the 42. f o l l o w i n g s e c t i o n the v i t a l f a c t o r s of r e s p o n s i b i l i t y , c o n t r o l and feedback w i l l be examined i n greater d e t a i l . R e s p o n s i b i l i t y , C o n t r o l , and Feedback As noted i n the previous s e c t i o n , the perception of r e s p o n s i b i l i t y i s a v i t a l f a c t o r i n b r i n g i n g out the e n e r g e t i c behavior of the entre-preneur. The p r e s e r v a t i o n of t h i s perception i s d i r e c t l y r e l a t e d to the r i s k involved i n the undertaking, the amount of c o n t r o l the entre-preneur has of the task, and the feedback he has w i t h regard to h i s progress. The perception of r e s p o n s i b i l i t y by the entrepreneur i s a two way concept. That i s i t must embrace both the consequences of f a i l u r e and the rewards of success i f i t i s to have i t s hypothesized e f f e c t on the entrepreneur. On one hand, i f there were no rewards expected from the undertaking then the entrepreneur would most c e r t a i n l y not i n v o l v e h i m s e l f w i t h i t . On the other hand, i f there were no consequences ass o c i a t e d w i t h p o s s i b l e f a i l u r e then there would i n r e a l i t y be no r i s k . Without the perception of r i s k there would be l e s s personal i n v o l v e -ment on the part of the entrepreneur, i n that i t i s the r i s k i n a s i t u a -t i o n that makes the entrepreneur f e e l that h i s a t t r i b u t e s and c o n t r i b u -t i o n s are the f a c t o r s which w i l l determine the success of the venture. I t seems reasonable then that the greater the degree of r i s k i n a s i t u a t i o n , the greater the challenge i t w i l l represent to the energies of the entrepreneur. I f t h i s r i s k s i t u a t i o n i s a l s o a two way concept and the p o s s i b l e rewards balance the p i t f a l l s so that i t s undertaking i s not one-sided and foolhardy, then the entrepreneur w i t h an open-ended goal perception w i l l i n a l l l i k e l i h o o d view the s i t u a t i o n as p o t e n t i a l l y s a t i s f y i n g and subsequently devote h i s energies to i t . 43. The independent entrepreneur i s by the very nature of h i s a c t i v i t y the u l t i m a t e d e c i s i o n maker i n h i s o r g a n i z a t i o n . This d e c i s i o n making power must be a v a i l a b l e , even though i t may be delegated or temporarily traded i n some in s t a n c e s , so that the entrepreneur may j u s t l y f e e l that he has the u l t i m a t e c o n t r o l to match h i s perception of u l t i m a t e r e s p o n s i b i l i t y w i t h regard to both the outcome of the venture and h i s own goal achievement. Case h i s t o r i e s of e n t e r p r i s i n g men show them as being quick to escape through f l i g h t or abandonment, s i t u a t i o n s that are r e s t r i c t i v e or non-remunerative i n terms of t h e i r needs or goals. In most instances the d i s i l l u s i o n m e n t seems to a r i s e from e i t h e r a hopeless l o s s of c o n t r o l leading to the f e e l i n g of n o n - r e s p o n s i b i l i t y , or the i n a b i l i t y to o b t a i n remuneration i n the d e s i r e d form, whether i t be among other t h i n g s , money, power, knowledge, or independence. I t could be noted that independence does i n some instances of entrepreneurship have a s p e c i a l s i g n i f i c a n c e , because without i t some entrepreneurs may not be able to s u s t a i n any perception of c o n t r o l , r e s p o n s i b i l i t y , or personal i d e n t i f i c a t i o n w i t h the rewards of the p r o j e c t . Consequently, he w i l l l o s e the d r i v e which may be v i t a l to the success of the venture. Many i n d i v i d u a l s look upon the e n t r e p r e n e u r i a l behavior described above as being i l l u s t r a t i v e of an a t t i t u d e of s e l f i s h n e s s and complete e g o - c e n t r i c i t y i n that the entrepreneur appears to be concerned only w i t h h i m s e l f , and makes a l l h i s d e c i s i o n s r e l a t i v e to that concern. I t i s from t h i s type of viewpoint that negative overtones of entrepreneur-ship a r i s e , suggesting behavior such as t a k i n g , e x p l o i t i n g , d e s t r o y i n g , manipulating, and stepping on others to s a t i s f y greed. However, studies have shown that the entrepreneur need not cast aside the v i r t u e s of a l t r u i s m i n a c h i e v i n g h i s g o a l s . For i n s t a n c e , i n McClelland's s t u d i e s 44. of the achievement motivated i n d i v i d u a l , he found t h a t , "achievement s a t i s f a c t i o n a r i s e s out of having i n i t i a t e d the a c t i o n that i s s u c c e s s f u l . ' That i s , the e n t r e p r e n e u r i a l type i n d i v i d u a l can work i n a group even when i t i s the group which gets the c r e d i t f o r the t o t a l endeavor, so long as w i t h i n the group the entrepreneur's task or c o n t r i b u t i o n i s i d e n t i f i a b l e and he has c o n t r o l over i t and r e s p o n s i b i l i t y f o r i t . I n terpreted i n a d i f f e r e n t l i g h t t h i s could suggest that the s u c c e s s f u l entrepreneur does not n e c e s s a r i l y concern h i m s e l f over the question of who e l s e may b e n e f i t from h i s e f f o r t s as long as they do not b e n e f i t at h i s expense and he achieves h i s own personal need s a t i s f a c t i o n i n the process. Thus, w h i l e there i s no denying that the independent entre-preneur i s very e g o - c e n t r i c , the above observations point out a s o r t of compromising a t t i t u d e which w h i l e not completely contrary to independent ideas of self-advancement, allows the entrepreneur to operate i n a competitive market environment where s u r v i v a l depends on the s a t i s f a c t i o n of the needs of others whether i t i s s e l l i n g a product or s e r v i c e , 33 o b t a i n i n g resources, or n e g o t i a t i n g w i t h l a b o r . At t h i s p o i n t we are l e f t w i t h the l a s t v a r i a b l e i n t h i s s e c t i o n -that of feedback. Case st u d i e s i n d i c a t e that the entrepreneur w i l l abandon s i t u a t i o n s from which no knowledge of r e s u l t s i s a v a i l a b l e or from which no type of rewards or p e n a l t i e s which q u a l i f y as a measure of r e s u l t s are forthcoming. The absence of feedback which gives some i n d i c a t i o n as to the success of the p u r s u i t of a p a r t i c u l a r goal and which i s i n t u r n transmuted i n t o a measure of progress along a r e l e v a n t open-ended goal continuum, i s one reason that many entrepreneurs i n i t i a l l y went i n t o business f o r themselves hoping to escape the o r g a n i z a t i o n a l h i e r a r c h i e s of t h e i r former places of employment. Without feedback 45. from a s i t u a t i o n i n which an entrepreneur f e e l s he has made an iden-t i f i a b l e c o n t r i b u t i o n , he cannot j u s t i f y h i s perception of r e s p o n s i b i l i t y , and subsequently he loses h i s concept of a d i r e c t r e l a t i o n s h i p between the success of the e n t e r p r i s e and the attainment of h i s own go a l s . This leads i n turn to a l o s s of i n t e r e s t i n the continuance of the venture. The entrepreneur cannot accept the clouding of h i s c o n t r i b u t i o n i n a task or venture. He b e l i e v e s i n , gets h i s d r i v e from,and accepts the philosophy: blame f o r f a i l u r e and reward f o r success, i . e . C r e d i t where c r e d i t i s due. Commitment In the s e c t i o n of t h i s t h e s i s on the planning f u n c t i o n , i t was noted that the success of the entrepreneur i n aggrandizing h i s enter-p r i s e o f t e n depends on the severing of r e l a t i o n s h i p s which are unhealthy from the standpoint of the operations of the f i r m or unhealthy i n t h e i r e f f e c t on the mot i v a t i o n and behavior of the entrepreneur. In The E n t e r p r i s i n g Man i t i s pointed out that the entrepreneur i n h i s l e a r n i n g process goes through what seems l i k e a very r e s t l e s s p eriod of pre-development c h a r a c t e r i z e d by malcontentment and a 'grass i s always greener 1 a t t i t u d e . I t i s f u r t h e r contended that during t h i s p e r i o d , "these men were a l s o broadening and deepening t h e i r grasp of what may be c a l l e d the ' t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s . ' They were le a r n i n g s at a deeper l e v e l than they had p r e v i o u s l y known that no i n t e r -personal r e l a t i o n s h i p need ca r r y w i t h i t a co n t i n u i n g commitment on the pa r t of those i n v o l v e d . They were l e a r n i n g to b e l i e v e that such r e l a t i o n -ships are to be entered i n t o only as long as they are of mutual b e n e f i t to the p a r t i e s i n v o l v e d . T y p i c a l l y , the character formation of the 46. entrepreneur i s such that he has no qualms about breaking such r e l a t i o n -34 s h i p s . " The t y p i c a l i n d i v i d u a l entrepreneur r e q u i r e s t h i s s o r t of unattached per s p e c t i v e so that he may sever r e l a t i o n s h i p s which are r e s t r i c t i v e or non-rewarding from the poi n t of view of h i s own goal attainment. Entrepreneurship has t r a d i t i o n a l l y been thought to in v o l v e the b r i n g i n g together of m a t e r i a l and non-material resources, and the arranging of these resources i n t o productive u n i t s . Both the s t r u c t u r e that i s created and the operations or the dynamics of the s t r u c t u r e must be co n s t i t u e n t parts of an environment which w i l l be conducive to the s u r v i v a l and the feeding of those forces which motivate the entre-preneur who i n t u r n d r i v e s the f i r m . Therefore, i n order to perpetuate h i s own i n i t i a t i v e the entrepreneur must l e a r n to detect and sever a l l r e l a t i o n s h i p s which would be d e s t r u c t i v e to the forementioned f a v o r a b l e environment. The only hold any r e l a t i o n s h i p should have on the »entre-preneur, i n order that he may f u n c t i o n at h i s peak l e v e l as determined by h i s m o t i v a t i o n a l d r i v e , are those elements of the r e l a t i o n s h i p which are perceived as c o n t r i b u t i n g to the attainment of h i s own goals. This does not n e c e s s a r i l y imply that the i n d i v i d u a l entrepreneur i s i r r e s p o n s i b l e and immature to the poi n t where he immediately severs any r e l a t i o n s h i p or abandons any s i t u a t i o n i n which every d e t a i l i s not as he would have i t under i d e a l c o n d i t i o n s . As pointed out i n the previous s e c t i o n on the execution f u n c t i o n , entrepreneurs u s u a l l y have a long range p e r s p e c t i v e so that r e l a t i o n s h i p s which are only temporarily r e s t r i c t i v e or d i s h e a r t e n i n g may not n e c e s s a r i l y lead to an immediate te r m i n a t i o n of the r e l a t i o n s h i p . This i s due to the f a c t that' although these r e l a t i o n s h i p may i n the short run have some unfavorable i m p l i c a t i o n s , 47. i n the long run they may be a s s i s t i n g the attainment of the entrepreneur's g o a l . In other words, i f the unfavorable aspects of the s i t u a t i o n c o n t r i b u t e d to the progress along the entrepreneur's open-ended goal continuum then they would be endured even though temporary s a c r i f i c e s would have to be made by him. I t i s perhaps somewhat p a r a d o x i c a l that what appears to be back-stepping by the entrepreneur w i t h regard to h i s acceptance of co n d i t i o n s which he does not consider as i d e a l , i s a c t u a l l y progress i n terms of i t s long range i m p l i c a t i o n s to advancement along an open-ended goal continuum that does not have many s p e c i f i c points of reference i n respect to intermediate goal attainment. The t r a n s i e n t mode of commitment al s o makes a v i t a l c o n t r i b u t i o n to the entrepreneur's perseverence, i n that through h i s understanding of h i s own s e l f - c e n t r e d a t t i t u d e and h i s r e s u l t i n g behavior, he can understand t h i s a t t i t u d e i n oth e r s . That i s to say, when he i s abandoned because he d i d not meet the expected standards of others w i t h whom he was a s s o c i a t e d , or when he f i n d s that he has been used by someone f o r t h e i r own g a i n , he i s not destroyed because he r e a l i z e s that under s i m i l a r circumstances he would probably have acted i n a l i k e manner. He regards the s i t u a t i o n as a lesson i n a competitive l e a r n i n g process i n which the e n t r e p r e n e u r i a l behavior mode i s shaped. The entrepreneur understands that s u c c e s s f u l competition i n an imperfect market depends on change.. .successful and accepted change depends on the m a n i f e s t a t i o n of perceived improvement... the quest f o r improvement i s hindered by the presence of no n - c o n t r i b u t i n g or i n f e r i o r elements..and, t h e r e f o r e , i n the i n t e r e s t s of s u r v i v a l i n an environment such as t h i s , those u n d e s i r a b l e elements must be e l i m i n a t e d . The b e l i e f i n the e l i m i n a t i o n of dead weight can only c o n t r i b u t e to the value of an entrepreneur. So although on the 48. surface many of the entrepreneur's a c t i o n s may seem to show a lack of regard f o r others or a seemingly i r r e s p o n s i b l e t r a n s i e n c y , they are only attempts by the entrepreneur to perpetuate the phenomenon which he represents and s u s t a i n the process of change which he brings about. E n t r e p r e n e u r i a l Motives I t i s reasonable that s o c i e t y i n general should look upon the business man as being motivated e s s e n t i a l l y by p r o f i t . This perception evolves p r i m a r i l y from the f a c t that the very nature of business a c t i v i t y i nvolves the measurement of success i n terms of standards such as: s i z e and c o n t r o l of market; r a t e of growth; s i z e of f i r m ; and r a t e of r e t u r n , e t c . , a l l of which are u s u a l l y r e f l e c t e d i n the p r o f i t derived from the e n t e r p r i s e . One l o g i c a l but perhaps hasty c o n c l u s i o n i s that businessmen are motivated s o l e l y by p r o f i t . However, i f t h i s question i s approached by way of the r a t i o n a l e presented i n previous s e c t i o n s on feedback and e n t r e p r e n e u r i a l energy, then monetary p r o f i t may be a goal but not n e c e s s a r i l y the motive behind the behavior of the entrepreneur, i n that i t acts asna measure of achievement or progression along an open-ended goal continuum. 35 McClelland hypothesizes that i t i s the achievement motive and not the p r o f i t motive which i s at the base of e n t r e p r e n e u r i a l endeavor. Some t h e o r i s t s see t h i s g e n e r a l i z a t i o n as somewhat naive to be a p p l i e d 3 6 over the whole span of entrepreneurship. However, McClelland d i d ad-m i t t e d l y d e rive some i n t e r e s t i n g f i n d i n g s through h i s research and t e s t s . For i n s t a n c e , he found that i n d i v i d u a l s c h a r a c t e r i z e d by high achievement motives do not respond to absolute money i n c e n t i v e s . That i s , they d i d not work harder when o f f e r e d more money f o r s u c c e s s f u l completion of a 49. task. However, he also found that the high achievement motivated i n d i v i d u a l s b e l i e v e d that marginal remuneration f o r s u c c e s s f u l completion of tasks of i n c r e a s i n g d i f f i c u l t y should increase at a f a s t e r r a t e than d i d the low achievement motivated i n d i v i d u a l s . The above f i n d i n g s would apparently f i t the model of entre-p r e n e u r i a l behavior already determined i n t h a t : (1) Entrepreneurs show by t h e i r a t t i t u d e toward r i s k t h a t , j u s t as achievement motivated i n d i v i d u a l s , they place a high premium on the importance of the c o n t r i b u t i o n of t h e i r s k i l l and e f f o r t to the success of the venture; and (2) The entrepreneur puts h i s f u l l e f f o r t i n t o any venture which he undertakes, and thus a d d i t i o n a l i n c e n t i v e s cannot p o s s i b l y make him work harder. He e i t h e r approaches the venture wholeheartedly or not at a l l ; to behave otherwise would be cheating h i m s e l f because he i n i t i a l l y accepts the challenge or r i s k of a venture i n contemplation of what success i n the venture w i l l mean to him a f t e r f u l l e v a l u a t i o n of whether h i s d e s i r e s or needs w i l l be compromised by any c h a r a c t e r i s t i c s of the p r o j e c t and i t s o p e r a t i o n s . I t i s very d i f f i c u l t and perhaps impossible to o b j e c t i v e l y d i f f e r e n t i a t e between the p r o f i t motive and the achievement motive. In the f i r s t p l ace i t i s hard to t e s t the i n f l u e n c e of the p r o f i t motive i n the la b o r a t o r y because the r e a l stakes which e x i s t i n the business world cannot be d u p l i c a t e d . In the second p l a c e , no one can deny w i t h a u t h o r i t y that p r o f i t i s a symbol or measure of achievement. To be motivated by one i s to be motivated by the other. As observed i n the s e c t i o n on e n t r e p r e n e u r i a l energy, i t i s perhaps more r e a l i s t i c to look at the question w i t h regard to a profit-achievement goal continuum. 50. To attempt to d i f f e r e n t i a t e between them may j u s t be h a i r - s p l i t t i n g . The above statements are not intended to b e l i t t l e the importance of p r o f i t to the entrepreneur because i t i s a prime c o n s i d e r a t i o n i n a l l cases of entrepreneurship. Only through the production of a p r o f i t can the entrepreneur hope to s u s t a i n h i s l i v e l i h o o d as a businessman. However, wh i l e i t i s most c e r t a i n l y a goal i n a l l instances of entrepreneurship i t i s not n e c e s s a r i l y that i n f l u e n c e which motivates the entrepreneur. The i n d i v i d u a l independent entrepreneur i s i n r e a l i t y motivated by a form of what has been c l a s s i f i e d as s e l f - a c t u a l i z a t i o n . By motivated i t i s not meant, 'made to move," but r a t h e r 'made to want to move.' S e l f - a c t u a l i z a t i o n r e f e r s to the d e s i r e of an i n d i v i d u a l to become a c t u a l i z e d i n whatever he f e e l s he can be or must be p o t e n t i a l l y . The t r a d i t i o n a l independent entrepreneur i s most l i k e l y to perceive h i s a c t u a l i z a t i o n p o t e n t i a l i n terms of an open-ended g o a l , the most pre-dominant of which w i l l be independence, r e c o g n i t i o n , power, or wealth. However, he w i l l measure the extent of h i s a c t u a l i z a t i o n by the r a p i d i t y of h i s movement along h i s goal continuum r a t h e r than the attainment of some f i n a l a s p i r e d to plateau of achievement. In other words, he i s motivated by advancement or movement (achievement) along a r e l e v a n t continuum; he i s n o t i v a t e d by m o t i v a t i o n i t s e l f as defined, i n that he wants to move because i t i s out of the movement (upward or forward m o b i l i t y ) that s a t i s f a c t i o n i s d e r i v e d . This inner m o t i v a t i o n i s some-th i n g that i s - b a s i c to the nature of an entrepreneur and when he ceases to have t h i s d e s i r e to move he ceases to be an entrepreneur, because he w i l l i n a l l p r o b a b i l i t y cease to act i n an e n t r e p r e n e u r i a l way. The understanding of t h i s hypothesis on e n t r e p r e n e u r i a l m o t i v a t i o n i s very important i n that i t leads to the suggestion that an entrepreneur cannot be motivated by e x t e r n a l f a c t o r s i n h i s environment; His movement may be helped or hindered, or the goal continuum on which he measures h i s achievement may be a l t e r e d . However, h i s b a s i c m o t i v a t i o n , move-ment i t s e l f , i s something that i s w i t h i n the man and cannot be a r t i f i -c i a l l y created by another i n d i v i d u a l . I t should be f u r t h e r noted that i n the context i n which movement i s used here, i t i s f a c s i m i l l o u s to achievement, and thus the need to achieve i s i n a sense the m o t i v a t i n g f o r c e behind the entrepreneur. For the entrepreneur there i s no p r o f i t motive, r e c o g n i t i o n motive, independence motive, or power motive. These things do not motivate but merely provide a c r i t e r i o n f o r measurement. The choice of c r i t e r i o n may vary and i s i n many cases f l e x i b l e and interdependent as are many open-ended g o a l s . For i n s t a n c e , i n our economy one may gain r e c o g n i t i o n , power, or f i n a n c i a l independence from the possession of wealth a r i s i n g out of the c r e a t i o n of p r o f i t . This i s only one example, but i t does show how goals may be interdependent and e a s i l y confused w i t h respect to t h e i r importance as goals to any i n d i v i d u a l . In a d d i t i o n , i t suggests that i f a man changes h i s goal h i s behavior may not be g r e a t l y a l t e r e d . The question now a r i s e s as to how or why an i n d i v i d u a l becomes motivated by movement, advancement, achievement, or whatever one wishes to c a l l the d r i v i n g f o r c e i n the entrepreneur. I t i s i n a l l l i k e l i h o o d merely something that a man has or has not got. I t i s not n e c e s s a r i l y innate but i s a product of the i n f l u e n c e s ^ o f the i n d i v i d u a l ' s formative environment. In the f o l l o w i n g s e c t i o n various f i n d i n g of C o l l i n s et a l w i t h respect to e n t r e p r e n e u r i a l backgrounds w i l l be b r i e f l y discussed i n the hope of p r o v i d i n g some ba s i s f o r the above s u p p o s i t i o n . 52. IV. ENTREPRENEURIAL BACKGROUNDS Most st u d i e s of entrepreneurship c o n t a i n references to the p r o p o s i t i o n that the entrepreneur i s a product of h i s environment. The environments r e f e r r e d to are composed of p r e - e n t r e p r e n e u r i a l and post-e n t r e p r e n e u r i a l i n f l u e n c e s . They include among other t h i n g s : the e f f e c t s of childhood s i t u a t i o n s ; education--whether i t be formal or the school of hard knocks; or the wounds and experiences of past and present attempts at entrepreneurship. The case studies conducted by C o l l i n s et 37 a l , d i d i n d i c a t e the development of c e r t a i n e n t r e p r e n e u r i a l a t t r i b u t e s through the i n f l u e n c e of o f t e n v a r i e d environmental s i t u a t i o n s . For ins t a n c e , i t was t y p i c a l l y found that c e r t a i n lessons such as s e l f -s u f f i c i e n c y , leadership and r e s p o n s i b i l i t y r e l a t i o n s h i p s , and achievement and d i l i g e n t e f f o i ' t r e l a t i o n s h i p s were s i t u a t i o n a l by-products. In a d d i t i o n , the i n d i v i d u a l s studied by C o l l i n s et a l i n d i c a t e d that they developed c e r t a i n a t t i t u d e s or modes of behavior to compensate f o r , or so that t h e i r a c t i o n s would conform to i n order to perpetuate, the circumstances which they v i v i d l y r e c a l l e d and had come to regard as having great formative s i g n i f i c a n c e i n determining t h e i r d e s t i n i e s . The entrepreneur i n l o o k i n g back seemed to always see h i m s e l f as a c t i n g d e c i s i v e l y , w i t h no other choice at the time than the one that he made under the circumstances under which he found h i m s e l f . The q u a l i t y of the remembrance of these circumstances and the r e a c t i o n s to them was notably high and they were obviously r e t a i n e d emotionally as part of the 38 entrepreneur's character formation. The educational attainments of the entrepreneurs studied by C o l l i n s et a l were random, and i t appeared as i f they e i t h e r r e c e i v e d 53. formal education or d i d not r e c e i v e formal education on the b a s i s o f , (1) the strength of v a r i e d s i t u a t i o n a l circumstances and the l e v e l of e n t r e p r e n e u r i a l development that the i n d i v i d u a l had a t t a i n e d through these i n f l u e n c e s and h i s r e a c t i o n s to them, and (2) the a n t i c i p a t e d r o l e that the i n d i v i d u a l a s p i r e d to and h i s perception of the c o n t r i b u t i o n that formal education would make to the attainment of that a n t i c i p a t e d s t a t u s . What i s of s i g n i f i c a n c e i s that C o l l i n s et a l found that w i t h regard to the attainment or non-attainment of formal education, "these men do not see themselves as passive r e c i p i e n t s of the d i c t a t e s of d e s t i n y . On the other hand they do not see themselves as by any means i n absolute c o n t r o l of'.the s i t u a t i o n . Their view i s pragmatic and r e a l i s t i c . As the l i f e s i t u a t i o n u n f o l d s , i t presents to them a s e r i e s of choices. They always make these choices, i n t h e i r own eyes, i n t e l l i g e n t l y and d e c i s i v e l y . . . the entrepreneurs r e c a l l themselves as men of v o l i t i o n and c o g n i t i o n . At each p a r t i c u l a r p o i n t i n t h e i r educational c a r e e r s , f a c t o r s balanced i n such a way that the choice was e i t h e r to remain i n or leave s c h o o l . The choice to leave or remain i s always made i n the 39 face of what might be c a l l e d a ' p r e c i p i t a t i n g i n c i d e n t . ' " The r e a c t i o n to t h i s i n c i d e n t was u s u a l l y determined on the b a s i s of s e l f -c o n s i d e r a t i o n s and conditioned by character development as determined by p r i o r i n f l u e n c e s and exposures, and/or the i n d i v i d u a l ' s p e r c e p t i o n of fu t u r e p o t e n t i a l s . Education, although not formal, may also have been a t t a i n e d i n what may be designated as the 'school of hard knocks' or as designated by C o l l i n s et a l 1 the school f o r entrepreneur's.' C o l l i n s et a l found that through experience the entrepreneur derived reinforcement f o r e x i s t i n g a t t i t u d e s , or developed other s o - c a l l e d e n t r e p r e n e u r i a l a t t i t u d e s w i t h respect to r i s k - t a k i n g , the t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s , achievement, and general business r e a l i t i e s . The e f f e c t i v e performance of the f u n c t i o n s of s u c c e s s f u l entre-preneurship seems to e n t a i l the possession of c e r t a i n a t t i t u d e s and c e r t a i n s k i l l s as described i n t h i s chapter. To attempt to s t a r t a business without these a t t i t u d e s and s k i l l s n a t u r a l l y increases the p r o b a b i l i t y of f a i l u r e . The preceding s e c t i o n was intended to note the strong r e l a t i o n s h i p between environment and the development of these forementioned s k i l l s and a t t i t u d e s i n the t r a d i t i o n a l independent entre-preneur . 55. FOOTNOTES FOR CHAPTER I I "^The World Book Encyclopedia D i c t i o n a r y 2 0. F. C o l l i n s , David Moore, arid D. B. Unwalla, The E n t e r p r i s i n g Man (East Lansing: Bureau of Business Research, Michigan S t a t e , 1964). 3 lb i d . , p. 20. 4 l b i d . , p. 4. ^Arthur Cole, Business E n t e r p r i s e i n i t s S o c i a l S e t t i n g (Cambridge, Massachusetts: Harvard U n i v e r s i t y Press, 1959), p. 47. See d i s c u s s i o n of competition by small firms at 'the i n t e r s t i c e s ' i n : E d i t h Penrose, The Theory of the Growth of the Firm (Oxford: B a s i l B l a c k w e l l , 1959). ^The above points note a general but not n e c e s s a r i l y undeviating impression from case s t u d i e s i n C o l l i n s , More and Unwalla, The E n t e r p r i s i n g  Man (East Lansing: Bureau of Business Research, Michigan S t a t e , 1964). 8 Dun and B r a d s t r e e t s t a t i s t i c s show that 50 to 60 percent of business f a i l u r e s occur i n the f i r s t f i v e years of operation or i n other words, during the execution stage. I t i s p r a c t i c a l l y impossible to deter-mine i f the problem which caused the business to f a i l was caused by mis-takes made i n the o b s e r v a t i o n stage or the execution stage or whether the mistakes made i n one stage could have been corrected by steps taken i n the other. For i n s t a n c e , i t i s very d i f f i c u l t to say i f a poor s a l e s record was wholly a t t r i b u t a b l e to bad f o r e c a s t i n g i n the observation stage or f a u l t y marketing i n the execution stage, because i n r e a l i t y , the product of e f f o r t s i n the observation stage i s put to the t e s t of the market i n the execution stage at which time i t i s clouded i n numerous other v a r i a b l e s . 9 C o l l i n s , Moore, and Unwalla, op_. c i t . , p. 62. •^Roland I . Robinson, Financing the Dynamic Small Firm (Belmont, C a l i f o r n i a : Wadsworth P u b l i s h i n g Company Inc., 1966). "'"''"The f a c t that the entrepreneur u s u a l l y has to attempt to o b t a i n resources by i n s p i r i n g confidence and convincing the p r o s p e c t i v e lender of the p r o f i t a b i l i t y of the venture i s one reason why he has to trade away so much autonomy because both he and the proposal have not been s u c c e s s f u l l y proven. 56. 12 Nowhere i s t h i s more true as a r u l e than i n securing f i n a n c i n g . 13 C o l l i n s , Moore, and Unwalla, op_. c i t . , p. 195. 14 Studies i n d i c a t e that i n instances where the entrepreneur was unable to r e g a i n c o n t r o l through these of other means he would abandon the venture . ^ S e e the balance of t h i s chapter f o r an o u t l i n e of the character of the independent entrepreneur. 16 Joseph A. Schumpeter, The Theory of Economic Development (New York: Oxford U n i v e r s i t y Press, 1961), p. 61 footnote. ^The extent to which the t r a d i t i o n a l entrepreneur i s u s u a l l y considered to be alone may be a f a l l a c y as has been pointed out i n previous s e c t i o n s which i n d i c a t e d that h i s success very o f t e n depended on the a s s i s t a n c e from outside p a r t i e s , p a r t i c u l a r l y sources of fi n a n c e . 18 David C. M c C l e l l a n d , The Achieving Society ( P r i n c e t o n , N.J.: D. Van Nostrand Company Inc., 1961). 19 C o l l i n s , Moore, and Unwalla, op_. c i t . , p. 52. 20 By r e l a t i v e l y productive i t i s meant that there was some advance i n production over what e x i s t e d p r e v i o u s l y , although not n e c e s s a r i l y the optimum advance p o s s i b l e . 21 J . E. Sawyer, Entrepreneurship i n Periods of Rapid Economic  Growth. In Entrepreneurship and economic growth. Mineographed. (Cambridge, Mass: S o c i a l Science Research Council and Harvard U n i v e r s i t y Research Centre i n E n t r e p r e n e u r i a l H i s t o r y , 1954). 22 M c C l e l l a n d , op_. c i t . , p. 222. 23 I say i n e f f i c i e n t employment of resources because of the high f a i l u r e r a t e which r e s u l t s because the s e l f - c o n f i d e n t prospective entre-preneur o f t e n undertakes ventures which do not prove j u s t i f i e d . This i n e f f i c i e n c y may be considered a cost of freedom i n a free e n t e r p r i s e s o c i e t y . 24 Because the entrepreneur i s i n a l l l i k e l i h o o d s t r i v i n g f o r escape or achievement, whether or not he perceives the venture as being r i s k y does not make much d i f f e r e n c e i n h i s behavior. 25 M c C l e l l a n d , op_. c i t . 57. 2 6 M c C l e l l a n d , op_. c i t . 27 Joseph A. Schumpeter, op_. c i t . , p. 78. 28 Joseph A. Schumpeter, op_. c i t . , p. 66; the l i s t of what con-s t i t u t e s a new combination w i l l give some idea of what i s a l l u d e d to when t h i s phrase i s used. 29 Joseph A. Schumpeter, op_. c i t . p. 68; observed t h a t , "The slow and continuous increase i n time of the n a t i o n a l supply of productive means and of savings i s obviously an important f a c t o r i n e x p l a i n i n g the course of economic h i s t o r y through the c e n t u r i e s , but i t i s completely over-shadowed by the f a c t that development c o n s i s t s p r i m a r i l y i n employing e x i s t i n g resources i n a d i f f e r e n t way, i n doing new things w i t h them, i r r e s p e c t i v e of whether those resources increase or not." 30 F r e d e r i c k Harbison and Charles Myer, Management i n the I n d u s t r i a l  World, (New York: McGraw H i l l Book Company, Inc., 1959), p. 17. 31 This open-ended goal continuum may be designated i n any number of ways depending on an i n d i v i d u a l ' s motivating f o r c e . For instance i t may be a time-power continuum, a t i m e - r e c o g n i t i o n continuum, a time-independence continuum, a time-money continuum, or any other c l a s s i f i -c a t i o n as long- as i t r e f e r s to an open-ended motive i n f l u e n c e and not a s p e c i f i c g o a l . 32 M c C l e l l a n d , op_. cit., p. 230. 33 Refer to f o l l o w i n g s e c t i o n on 'Commitment.' 34 C o l l i n s , More, and Unwalls, op_. c i t . , p. 52. 35 M c C l e l l a n d , op_. c i t . 3 6 W i l l i a m Baumol, "Entrepreneurship i n Economic H i s t o r y , " American  Economic Review L V I I I (May, 1968), p. 69 . 37 Since much of my i n v e s t i g a t i o n s and observations y i e l d e d r e s u l t s very s i m i l a r to the f i n d i n g s i n C o l l i n s , Moore and Unwalla, op_. c i t •, most of the m a t e r i a l i n t h i s s e c t i o n i s derived from that study. 38 Col l i n e , Moore, and Unwalla, op_. c i t . , p. 52. CHAPTER I I I THE LARGE SCALE ORGANIZATION AND THE ORGANIZATIONAL ENTREPRENEUR As the large s c a l e o r g a n i z a t i o n becomes an i n c r e a s i n g l y prevalent feature of our s o c i e t y , there seems to be a r i s i n g concern over the f a t e of the i n d i v i d u a l i s m which i s regarded by many as the prime f a c t o r i n the economic success of the free e n t e r p r i s e system. Subsequently, there i s a l i k e concern over the f a t e of the entrepreneur who i s thought to be the stronghold of i n d i v i d u a l i s m i n the business s e t t i n g . Those who despair over the i n f l u e n c e of the o r g a n i z a t i o n , foresee a trend toward c o l l e c t i v i s m and the propogation of a r i s k - a v e r t i n g , i n d e c i s i v e , s e c u r i t y - s e e k i n g , p u p p e t - l i k e o r g a n i z a t i o n man. This perceived s h i f t to an o r g a n i z a t i o n a l mode i s deemed dangerous from the point of view of i t s hypothesized d e s t r u c t i v e e f f e c t on the i n d i v i d u a l i s t i c f i b r e of the l a b o r i n g populus and i n tu r n on the economic and s o c i o l o g i c a l development of s o c i e t y . There are of course various assumptions i m p l i c i t i n the above statements. Among these are: (1) There are c e r t a i n s t r u c t u r a l and o p e r a t i o n a l elements present i n the large s c a l e o r g a n i z a t i o n which are not conducive to the develop-ment of e n t r e p r e n e u r i a l behavior; (2) There i s an i n d i v i d u a l i s t i c mode of behavior which t h r i v e s i n the absence of o r g a n i z a t i o n a l c h a r a c t e r i s t i c s such as those found i n large business o r g a n i z a t i o n s and which i s destroyed by those c h a r a c t e r i s t i c s ; and (3) This assumed d e s t r u c t i o n of the independent man i s de t r i m e n t a l to 59. the advancement of the goals of a f r e e e n t e r p r i s e s o c i e t y . In the f i r s t s e c t i o n of t h i s chapter c e r t a i n s t r u c t u r a l and o p e r a t i o n a l elements of the large s c a l e business o r g a n i z a t i o n w i l l be examined g e n e r a l l y w i t h p a r t i c u l a r reference to t h e i r hypothesized d e s t r u c t i v e e f f e c t s on i n d i v i d u a l behavior and i d e n t i t y . C e r t a i n common f a l l a c i e s concerning the d e s i r e , the i n c l i n a t i o n , and the a b i l i t y of the large business o r g a n i z a t i o n to consume the i n d i v i d u a l and l i m i t i n d i v i d u a l i s t i c modes of behavior were discussed w i t h the i n t e n t i o n of showing th a t : (1) In r e a l i t y , only the manifestations of i n d i v i d u a l i s m which are deemed d e s t r u c t i v e from both an o r g a n i z a t i o n a l and an i n d i v i d u a l standpoint are f i l t e r e d out by the o r g a n i z a t i o n , w i t h the element of d e s t r u c t i v e n e s s being based on the concept of p r o d u c t i v i t y and long range w e l f a r e , r e s p e c t i v e l y ; and that (2) Taken i n the proper perspectiveby the i n d i v i d u a l who d e s i r e s to preserve h i s i n d i v i d u a l i s m i n the workplace, has a high value as a producer to the o r g a n i z a t i o n , has the strength of character and s k i l l to s y s t e m a t i c a l l y assert h i s i n d i v i d u a l i s m i n the o r g a n i z a t i o n a l environment, the large business o r g a n i z a t i o n i s not an impersonal consuming monster but a v e h i c l e of i n d i v i d u a l achievement. With the p e r s p e c t i v e of the business o r g a n i z a t i o n provided by t h i s s e c t i o n and the p e r s p e c t i v e of the t r a d i t i o n a l independent entrepreneur provided by the previous chapter, i t w i l l be p o s s i b l e to proceed i n s e c t i o n I I , to the d e l i n e a t i o n of the e n t r e p r e n e u r i a l type to see i f and/ or how t h i s i n d i v i d u a l i s t i c s o - c a l l e d prime mover pe r c e i v e s , f a r e s , and behaves i n the environment of the large s c a l e o r g a n i z a t i o n . In the l a s t s e c t i o n of t h i s chapter the development of the e n t r e p r e n e u r i a l type 60. w i l l be examined i n the persp e c t i v e of the advantages and disadvantages to a f r e e e n t e r p r i s e s o c i e t y . I . CHARACTERISTICS OF THE LARGE SCALE ORGANIZATION As our s o c i e t y becomes i n c r e a s i n g l y a f f l u e n t , i t s c o l l e c t i v e d e s i r e s and needs, both m a t e r i a l and otherwise, grow i n magnitude, scope, and complexity. The problem of the s a t i s f a c t i o n of these needs and the demands that they represent on the productive c a p a b i l i t i e s of a n a t i o n n a t u r a l l y expand i n l i k e dimensions to the needs themselves.''" Advanced technology, d i v i s i o n of l a b o r , and the r e a l i z a t i o n of economies of s c a l e are among the methodological f a c t o r s which have f a c i l i t a t e d the growth i n productive capacity which was re q u i r e d to keep pace w i t h the growing demands upon i t . The s a t i s f a c t i o n of these demands can be looked upon as being achieved through the m o b i l i z a t i o n of resources, e i t h e r through a c t i v a t i n g formerly unused resources, or employing resources that are already i n use more e f f i c i e n t l y or i n d i f f e r e n t and more d e s i r a b l e ways. Whatever the case, the l a r g e s c a l e o r g a n i z a t i o n evolved as an i n s t i t u t i o n designed to f a c i l i t a t e t h i s twofold m o b i l i z a t i o n of resources through the implementation of methods such as those mentioned above. On the other side of the c o i n , the existence of markets growing i n s i z e and complexity both from the point of view of s t r u c t u r e and the mechanisms re q u i r e d to reach i t , n e c e s s i t a t e d g r e a t l y increased c a p i t a l investment i n means of i n v e n t i o n , development, production, and marketing. This c a p i t a l and resource accumulation came h i g h l y p r i c e d , and thus the c r e a t i o n , p e r p e t u a t i o n , and m o d i f i c a t i o n of more and l a r g e r markets was needed i n order that the increased expense and investment r e q u i r e d to b r i n g about the r e a l i z a t i o n of the b e n e f i t s of progress i n various f i e l d s 61. and supply more s o p h i s t i c a t e d products to a growing consumption en-lig h t e n e d s o c i e t y , could be absorbed and t h e i r incurrence j u s t i f i e d . Thus the l a r g e s c a l e business o r g a n i z a t i o n w i t h which t h i s t r e a t i s e i s con-cerned seemingly r e s u l t e d as the product of the p u l l of market demand, the push of the c a p i t a l costs and expenses of productive progress and t e c h n o l o g i c a l advance, and the i n c e n t i v e that the successes achieved by large s c a l e o r g a n i z a t i o n s represented f o r d u p l i c a t i o n of i t s form by those d e s i r i n g to r e a l i z e the b e n e f i t s i n other as yet unintegrated f i e l d s . In t h i s s e c t i o n of t h i s t h e s i s the major area of concern i s the e f f e c t that the large o r g a n i z a t i o n has on the manpower that i t employs. More p a r t i c u l a r l y , the concern i s w i t h those who manage and b u i l d the large o r g a n i z a t i o n , because as stated by Harbison and Myers, "In the march toward i n d u s t r i a l i s m , c a p i t a l , technology, and n a t u r a l resources are but passive agents. The a c t i v e forces are the human agents which create and c o n t r o l the o r g a n i z a t i o n s and i n s t i t u t i o n s which modern i n d u s t r i a l i s m 2 r e q u i r e s . " I t i s impossible to overemphasize the importance of 3 managerial resources to the la r g e s c a l e o r g a n i z a t i o n . In the studies 4 done by Harbison and Myers, c e r t a i n conclusions were a r r i v e d at which g e n e r a l l y i n d i c a t e the importance of managerial resources, and stated here they would perhaps provide a good persp e c t i v e i n which t h i s s e c t i o n on o r g a n i z a t i o n a l c h a r a c t e r i s t i c s should be viewed. They are: (1) " E n t e r p r i s e s d i f f e r both i n the s i z e and complexity of t h e i r a c t i v i t i e s and the more complex the o r g a n i z a t i o n the greater i s the i n t e n s i t y of the use of managerial resources. (2) The l a r g e r the market and the more complicated the market s t r u c -tures and mechanisms, the greater i s the i n t e n s i t y of the use of managerial resources. 62. (3) I n d u s t r i e s r e q u i r i n g large c a p i t a l investment appear to r e q u i r e a correspondingly heavy investment i n high t a l e n t managerial resour-ces . Or put i n a d i f f e r e n t way, large expenditures f o r c a p i t a l and machinery are l i k e l y to be q u i t e unproductive unless there i s a corresponding investment i n the t e c h n i c a l , p r o f e s s i o n a l , and managerial manpower to make them e f f e c t i v e . (4) Innovations of a l l kinds r e q u i r e very heavy investment i n high l e v e l managerial resources . (5) Management i s a p r i n c i p a l f a c t o r i n determining the p r o d u c t i v i t y of l a b o r , i f we assume that c a p i t a l and raw m a t e r i a l inputs remain the same.""' Those i n d i v i d u a l s who c o n t r o l l a r g e o r g a n i z a t i o n s r e a l i z e the need f o r q u a l i t y managerial resources and performance and, t h e r e f o r e , are c o n s t a n t l y searching f o r managerial methods which w i l l y i e l d e f f i c i e n t r e s u l t s . Contrary to what many be l i e v e , these methods are not n e c e s s a r i l y aimed at consuming the i n d i v i d u a l . As a r e s u l t of years of study i n t o the m o t i v a t i o n of i n d i v i d u a l s , the i d e a l methods are more l i k e l y to be d i r e c t e d at developing i n d i v i d u a l r e s p o n s i b i l i t y , promoting the i n d i v i d u a l w i l l to achieve w i t h i n a p a r t i c i p a t i v e environment, and n o u r i s h i n g the i n d i v i d u a l ' s d e s i r e s f o r freedom w i t h i n an ordered work system. However, the large s c a l e o r g a n i z a t i o n brought w i t h i t deep h i e r a r c h i e s of a u t h o r i t y , s p e c i a l i z a t i o n of task, and i m p e r s o n a l i z a t i o n of' the worker. I t i s features such as these that as hypothesized by t h i s t h e s i s are thought to produce a d o c i l e environment i n which i n d i v i d u a l i s m and i d e n t i f i c a t i o n are consumed, and which are thought not to be c o n s i s t e n t w i t h the aims of the i d e a l management methods as-.described above. Therefore, i n the f o l l o w i n g s e c t i o n these points w i l l be f u r t h e r examined under the headings 63. of (1) h i e r a r c h i a l consumption, (2) consumption through s p e c i a l i z a t i o n , and (3) consumption of i d e n t i t y . H i e r a r c h i a l Consumption As the trend toward 'hugeness' permeates the business environment, h i e r a r c h i e s of a u t h o r i t y , a d m i n i s t r a t i o n , and c o n t r o l expand both h o r i z o n t a l l y and v e r t i c a l l y i n response to the demands of e f f e c t i v e a d m i n i s t r a t i o n and c o n t r o l i n the o r g a n i z a t i o n . One very obvious charac-t e r i s t i c of these h i e r a r c h i e s i s that everyone cannot be at the top at any one time, and t h e r e f o r e , the m a j o r i t y of i n d i v i d u a l s i n the h i e r a r c h y must almost by d e f i n i t i o n be i n some s o r t of a subordinate r o l e . However, i n s p i t e of what many people assume, t h i s f a c t does not imply that because an i n d i v i d u a l i s a subordinate i n a h i e r a r c h y of an o r g a n i z a t i o n he must n e c e s s a r i l y forsake a l l aspects of i n d i v i d u a l i s m , show undevia-t i n g l o y a l t y to corporate o b j e c t i v e s at the expense of h i s own, lose a l l i n i t i a t i v e and innovativeness i n a m i l i e u of e s t a b l i s h e d r u l e s , boundaries, and procedures, trade the c a p a c i t y and d e s i r e f o r independent d e c i s i o n making f o r the s e c u r i t y of a non-responsible dependence, and g e n e r a l l y succumb to a comfortable modal p a t t e r n of o r g a n i z a t i o n a l conformity and c o l l e c t i v i s m . I n d i v i d u a l o b j e c t i v e s : The h i e r a r c h i e s which e x i s t i n a large business o r g a n i z a t i o n may be looked upon as arrangements of i n d i v i d u a l s according to q u a l i f i c a t i o n s , q u a l i t i e s , or other c h a r a c t e r i s t i c s on which the p r i v i l e g e of a u t h o r i t y and the burden of r e s p o n s i b i l i t y i s or should be based. These h i e r a r c h i e s form the frame of an o r g a n i z a t i o n whose a c t i v i t i e s are d i r e c t e d toward the attainment of some go a l ( s ) which i n business u s u a l l y centres around some aspect of p r o f i t - m a k i n g . The o r g a n i z a t i o n i t s e l f may be viewed as a system. Likewise, the i n d i v i d u a l s w i t h i n the o r g a n i z a t i o n may als o be considered as systems which may c l u s t e r i n f o r m a l l y or be grouped f o r m a l l y by the powers that be i n the o r g a n i z a t i o n , forming s o c i o l o g i c a l or f u n c t i o n a l subsystems, r e s p e c t i v e l y , of the o r g a n i z a t i o n a l whole. The l a r g e r system (the or g a n i z a t i o n ) may be seen as attempting to f o l l o w a path towards i t s chosen o b j e c t i v e . L i k e w i s e , i t s c o n s t i t u e n t systems, as i n d i v i d u a l s and/or as s o c i o l o g i c a l or f u n c t i o n a l system c l u s t e r s , a l s o seek to maintain a course which w i l l lead to the attainment of t h e i r own o b j e c t i v e s . The a c t u a l and perceived r e l a t i o n s h i p between the objec-t i v e s of the var i o u s c o l l e c t i v e or i n d i v i d u a l e n t i t i e s w i t h i n and i n c l u d i n g the o r g a n i z a t i o n i t s e l f , and the understanding by these separate e n t i t i e s of t h e i r b a s i c a l l y interdependent r e l a t i o n s h i p , can be a prime determinant i n the a b i l i t y of the p o t e n t i a l o r g a n i z a t i o n to f u n c t i o n e f f i c i e n t l y as an o r g a n i z a t i o n . Harbison and Myers s t a t e t h a t , "the essence of o r g a n i z a t i o n i s . the coordinated e f f o r t s of many persons toward common o b j e c t i v e s . " A common mis c o n s t r u a l of statements of t h i s type and content, and one which o f t e n leads to disenchantment w i t h the idea of the s u r v i v a l of i n d i v i d -u a l i t y w i t h i n l a r g e o r g a n i z a t i o n s , i s that the persons i n the organi-z a t i o n must adopt the o b j e c t i v e s of the o r g a n i z a t i o n as t h e i r prime concern, thereby making t h e i r personal o b j e c t i v e s matters of secondary concern. However, f o r a business o r g a n i z a t i o n to be f u n c t i o n a l under the i m p l i c a t i o n s of t h i s i n t e r p r e t a t i o n , e i t h e r : (1) There must be l i t t l e or no d i f f e r e n c e between the o b j e c t i v e s of the o r g a n i z a t i o n as a business e n t e r p r i s e and the o b j e c t i v e s of the i n d i v i d u a l s w i t h i n the o r g a n i z a t i o n ; or 65. (2) The i n d i v i d u a l s w i t h i n the o r g a n i z a t i o n must be w i l l i n g to place t h e i r own personal o b j e c t i v e s second to those of the o r g a n i z a t i o n ; or (3) The o r g a n i z a t i o n must have the means to fo r c e the i n d i v i d u a l s w i t h i n the o r g a n i z a t i o n to adopt the o b j e c t i v e s of the organi-z a t i o n as t h e i r prime concern. A l l three c o n d i t i o n s are u n l i k e l y . F i r s t l y , as a hypothesis, consider that the o b j e c t i v e of a l l business o r g a n i z a t i o n s i s or should be the maximum u t i l i z a t i o n o f a s s e t s . This o b j e c t i v e may be r e f l e c t e d i n chosen indexes of asset u t i l i z a t i o n such as per share earnings, s a l e s , s o c i a l b e n e f i t , greater employment, or r e t u r n on investment. The objec-t i v e s of those i n d i v i d u a l s that make up the personnel of the o r g a n i z a t i o n are i n a l l p r o b a b i l i t y based on some aspect of s e l f . I t i s h i g h l y u n l i k e l y that the o b j e c t i v e s themselves are the same as those of the o r g a n i z a t i o n . For i n s t a n c e , there i s no reason to expect that an i n d i v i d u a l w i l l d e r i v e any d i r e c t personal s a t i s f a c t i o n from the mere f a c t that the business i n which they are employed achieves i t s objec-t i v e s w i t h no b e n e f i t s accruing to the i n d i v i d u a l h i m s e l f . However, i t i s l i k e l y that even though the o b j e c t i v e s differ-,".,the method of o b j e c t i v e attainment may be the same. For i n s t a n c e , an i n d i v i d u a l may d e r i v e i n d i r e c t s a t i s f a c t i o n of t h e i r own o b j e c t i v e s from the attainment by the o r g a n i z a t i o n whole of i t s o b j e c t i v e s i n that through the success of the e n t e r p r i s e the r e c e i p t of f i n a n c i a l remuneration may be ascer-t a i n e d , promotions f o r c o n t r i b u t o r y i n d i v i d u a l achievement may be f o r t h -coming, or continuance of employment may be maintained. I t would appear that there i s something other than the e x i s t e n c e of common o b j e c t i v e s behind o r g a n i z a t i o n a l s o l i d a r i t y s i n c e there i s a very low p r o b a b i l i t y 66. that the o b j e c t i v e s of the business o r g a n i z a t i o n as a whole are the same as those of each i n d i v i d u a l member of the o r g a n i z a t i o n , as these objec-t i v e s are described above. Secondly, the human animal i s b a s i c a l l y e g o - c e n t r i c a l l y o r i e n t e d ; that i s , he i s motivated co n s c i o u s l y or unconsciously by some concern of s e l f , even i f t h i s concern f o r some aspect of s e l f s a t i s f a c t i o n mani-f e s t s i t s e l f i n behavior or acti o n s which are b e n e f i c i a l to o t h e r s . For t h i s reason i t i s u n l i k e l y that the m a j o r i t y of i n d i v i d u a l s w i t h i n business o r g a n i z a t i o n s would w i l l i n g l y place t h e i r o b j e c t i v e s second to those of the o r g a n i z a t i o n s o f which they were a c o n t r i b u t i n g p a r t , e s p e c i a l l y i f there was a perceived divergence between the r e s p e c t i v e o b j e c t i v e s and they were or were p o t e n t i a l l y mutually e x c l u s i v e to some degree. The v e r a c i t y of t h i s p r o p o s i t i o n i s s t r o n g l y r e l a t e d to the i n d i v i d u a l ' s sense of independence and h i s a b i l i t y to ass e r t t h i s independent s p i r i t which may depend on h i s a f f l u e n c e , h i s sense of compromise, and h i s wisdom. T h i r d l y , w h i l e i t i s p o s s i b l e f o r an o r g a n i z a t i o n to i n s t i t u t e and employ means that w i l l f o r c e i n d i v i d u a l s w i t h i n the s t r u c t u r e to operate as i f the o b j e c t i v e s of the o r g a n i z a t i o n were t h e i r prime con-cer n , i t i s al s o true that the more mutually e x c l u s i v e the o b j e c t i v e s of the o r g a n i z a t i o n and those of the i n d i v i d u a l s w i t h i n the organi-z a t i o n a l s t r u c t u r e are or seem to be, the more d r a s t i c and extensive w i l l be the means re q u i r e d to force conformity. A f t e r a point the c o o r d i n a t i o n f u n c t i o n becomes unweildy and the o r g a n i z a t i o n i n essence ceases to be an o r g a n i z a t i o n and faces d i s i n t e g r a t i o n through i n e f f i c i e n c y , l o s s of personnel, or frequent d i s s e n t , defensive a c t i o n , and confronta-t i o n on the part of the i n d i v i d u a l s w i t h i n the o r g a n i z a t i o n . The preceding arguments are suggestive r a t h e r than c o n c l u s i v e , but i t i s h i g h l y u n l i k e l y that a business o r g a n i z a t i o n of l a r g e s c a l e w i l l or can i n the long run s u c c e s s f u l l y demand that the i n d i v i d u a l s of which the o r g a n i z a t i o n i s composed adopt the o b j e c t i v e s of the organi-z a t i o n as t h e i r d i r e c t o b j e c t i v e s . Furthermore, i t i s u n l i k e l y that they would want t o , i n that i t i s r e a l l y not necessary f o r t h i s c o n d i t i o n of o b j e c t i v e homogeneity to be present f o r the o r g a n i z a t i o n to prosper and f u n c t i o n . What i s necessary i s homogeneity w i t h regard to the method of o b j e c t i v e attainment w i t h i n the o r g a n i z a t i o n a l system. Managerial p o l i c i e s are i n r e a l i t y a product of environmental pressures. That i s , the managerial p o l i c i e s that are l i k e l y to y i e l d the best r e s u l t s are those that accommodate the p h i l o s o p h i e s that are present i n a working environment. Since i n democratic nations the pre-dominant philosophy i s i n d i v i d u a l freedom, i t stands to reason that the i d e a l and somewhat extreme freedom o r i e n t e d management p o l i c y should be what has been c a l l e d 'management by o b j e c t i v e s . ' The e s s e n t i a l task i n management by o b j e c t i v e s i s as s t a t e d i n Harbison and Myers, "to arrange o r g a n i z a t i o n a l c o n d i t i o n s and methods of o p e r a t i o n so that people can achieve t h e i r own o b j e c t i v e s best by d i r e c t i n g t h e i r own e f f o r t s toward o r g a n i z a t i o n a l objectives."'' I t could be noted that the f e a s i b i l i t y of management by o b j e c t i v e s i s very much r e l a t e d to the v e r a c i t y of Douglas McGregor's 'theory Y', and the c a p a b i l i t y of the person to work under the i n f l u e n c e of h i s own i n d i v i d u a l i n i t i a t i v e , consent, persuasion, and s e l f - d i r e c t i o n . Since the large s c a l e o r g a n i z a t i o n i s an e n t i t y that amalgamates i n d i v i d u a l a c t i v i t y , t h e o r e t i c a l l y producing a whole that i s greater than the sum of the p a r t s , then f o r the i n d i v i d u a l s concerned i t becomes a 68. v e h i c l e by which d i v e r s e personal o b j e c t i v e s may be a t t a i n e d . This i s true at l e a s t under the assumptions of McGregor's 'theory Y' and forms of d i r e c t i o n approaching management by o b j e c t i v e s . While i t i s not necessary that the personal o b j e c t i v e s of the i n d i v i d u a l s i n the o r g a n i z a t i o n conform to those of the o r g a n i z a t i o n a l whole, i t i s neces-sary that they r e t a i n one p a r t i c u l a r element of conformity; t h i s element being the d e s i r e f o r the success of the o r g a n i z a t i o n as an e n t i t y i n i t s e l f . Thus, from the poin t of view of the s u r v i v a l of i n d i v i d u a l o b j e c t i v e s i n the l a r g e s c a l e o r g a n i z a t i o n , i t i s e n t i r e l y p o s s i b l e that an i n d i v i d u a l can r e t a i n h i s own o b j e c t i v e s as h i s primary d r i v e as long as h i s means of a t t a i n i n g i t are not contrary to the best i n t e r e s t s of the o r g a n i z a t i o n a l whole. Although what has been s a i d thus f a r has been a p p l i e d g e n e r a l l y to the personnel i n la r g e o r g a n i z a t i o n s , i n the f o l l o w i n g s e c t i o n on the 'behavior c h a r a c t e r i s t i c s of the o r g a n i z a t i o n a l entrepreneur,' the t r a n s a c t i o n a l mode of the unique i n d i v i d u a l who i s the subject of t h i s t h e s i s w i l l be examined amidst a view of company attempts to encourage him to vest him i n t e r e s t s i n the o r g a n i z a t i o n . Operative Freedom: O r g a n i z a t i o n , as stat e d i n the previous s e c t i o n , r e q u i r e s the c o o r d i n a t i o n of i n d i v i d u a l e f f o r t . This problem of coordina-t i o n i s p o t e n t i a l l y v o l a t i l e because of: (1) the p r o b a b i l i t y that a f e e l i n g may a r i s e among the c o n s t i t u e n t s of the o r g a n i z a t i o n a l system, that the o b j e c t i v e s of the f i r m are i n some way mutually e x c l u s i v e to those of the p a r t i c i p a n t s i n the operations of the o r g a n i z a t i o n ; or (2) the p r o b a b i l i t y that a divergence may develop among the con-s t i t u e n t parts of the o r g a n i z a t i o n as to the appropriate methods or means of o b j e c t i v e attainment. 69. Therefore, i n order to protect the o r g a n i z a t i o n d i r e c t l y and the con-s t i t u e n t parts i n d i r e c t l y from the i l l e f f e c t s of too much divergence i n both r e s p e c t s , c e r t a i n c o n s t r a i n t s on the operations or a c t i v i t i e s of the parts are necessary. Nevertheless, many t h e o r i s t s maintain that the extent to which t h i s process of p l a c i n g operating c o n s t r a i n t s on i n d i v i -duals i s ap p l i e d i n l a r g e o r g a n i z a t i o n s i s not conducive to maximum i n d i v i d u a l p r o d u c t i v i t y and the d e r i v i n g of i n d i v i d u a l need s a t i s f a c t i o n . In other words, too great a s o c i a l cost i s incur r e d by t h i s process i n the i n t e r e s t s of economic e f f i c i e n c y . This contention although widespread i s somewhat of an o v e r - g e n e r a l i z a t i o n and need not be t r u e , given the powers of i n d i v i d u a l to reason and r e a l i z e h i s own l i m i t a t i o n s . W i t h i n business o r g a n i z a t i o n s there are c e r t a i n f u n c t i o n a l r e l a t i o n -ships w i t h regard to elements of i n i t i a t i o n , p l anning, i n n o v a t i o n , adminis-t r a t i o n , c o n t r o l , c o o r d i n a t i o n , and s u p e r v i s i o n ; f u n c t i o n s which must be performed i n an i n c r e a s i n g l y complex and o f t e n s t o c h a s t i c e x t e r n a l environment to which a competing o r g a n i z a t i o n a l system i s exposed on i t s path toward the attainment of i t s o b j e c t i v e s . In a d d i t i o n , there i s al s o a strong element of u n c e r t a i n t y r e s u l t i n g from the complexity of the r e l a t i o n s h i p s which form an important part of the i n t e r n a l environ-g ment of the o r g a n i z a t i o n a l system. The r i s k of f a i l u r e which may r e s u l t from e r r o r o r i g i n a t i n g from w i t h i n or without the o r g a n i z a t i o n a l system, or the i n a b i l i t y to deal w i t h the u n c e r t a i n t y i n e i t h e r of the above mentioned domains, i s i n the f i n a l a n a l y s i s bourne by the o r g a n i z a t i o n as an e n t i t y i n i t s e l f . However, because of the vastness of the tas k , compensation f o r the r i s k l i e s i n the proper and e f f i c i e n t performance of the necessary func t i o n s which i s undertaken by the various c o n s t i t u e n t parts of sub-systems of the o r g a n i z a t i o n a l whole. I t i s t h i s l a t t e r 70. f a c t which r i g h t f u l l y places i n t e r i m r e s p o n s i b i l i t y f o r e r r o r or f a i l u r e w i t h the smaller component systems, and because of t h i s placement of r e s p o n s i b i l i t y and the rewards and punishments which accompany i t , the d i r e c t i o n of the f u n c t i o n a l sub-systems w i t h i n the o r g a n i z a t i o n w i l l be much more e f f e c t i v e , from the point of view of the acceptance of these rewards and punishments, i f there i s a common understanding of the r e l a t i o n s h i p between the o b j e c t i v e s of the o r g a n i z a t i o n a l whole and the o b j e c t i v e s of the c o n s t i t u e n t s or the o r g a n i z a t i o n a l whole, as w e l l as a common understanding as to the 'best means' of a t t a i n i n g the respec-t i v e objectives,. A problem may a r i s e because the 'best means' must n e c e s s a r i l y be those that w i l l lead to the success of the whole organi-z a t i o n , and i n d i v i d u a l s must accept reward and punishment on the ba s i s of achievements c o n t r i b u t i n g to the attainment of the o r g a n i z a t i o n a l objec-t i v e s and not on the ba s i s of actions or r e s u l t s f u r t h e r i n g i n d i v i d u a l o b j e c t i v e s to the e x c l u s i o n of those of the o r g a n i z a t i o n . Deviations from the expected o b j e c t i v e - a t t a i n i n g t r a j e c t o r y may r e s u l t from s t r a t e g i c e r r o r s o r i g i n a t i n g from elements outside the system or tac-t i c a l e r r o r s o r i g i n a t i n g from elements i n s i d e the system. W i t h i n the f i r m , e r r o r s may r e s u l t from the i n a b i l i t y to c o n t r o l the system i n t e r -n a l l y or an i n a b i l i t y to c o n t r o l the system on i t s e x t e r n a l path, both of which may be measured i n terms of the frequency of e r r o r , d i r e c t i o n of e r r o r , s i z e of e r r o r , and r e c t i f i c a t i o n of the e r r o r . The i n d i v i d u a l or c o l l e c t i v e competence of the c o n s t i t u e n t s of the o r g a n i z a t i o n a l whole i s obviously a very important f a c t o r i n the i n i t i a l making of the e r r o r . Nevertheless, i t i s competence as w e l l as the responsiveness of the system to r e c t i f i c a t i o n which determines the a b i l i t y of a business system ( o r g a n i z a t i o n ) to c o r r e c t or m i t i g a t e the e f f e c t s of an e r r o r . 71. H i e r a r c h i e s of a u t h o r i t y , chains of command, or channels of communi-c a t i o n , depending on one's viewpoint and the name one wishes to place on the a d m i n i s t r a t i v e and/or c o n t r o l s t r u c t u r e of the la r g e o r g a n i z a t i o n , are the manifestations of attempts to f o r m a l i z e r e l a t i o n s h i p s of: s u p e r i o r i t y and su b o r d i n a t i o n ; c o n t r o l , a d m i n i s t r a t i o n , and respon-s i b i l i t y ; and communication. They are n e c e s s a r i l y i n s t i t u t e d because: (1) They provide some means of communication throughout the organi-z a t i o n so that there w i l l be some common understanding and pers p e c t i v e of the intended o b j e c t i v e - a t t a i n i n g t r a j e c t o r y and the o b j e c t i v e s of the o r g a n i z a t i o n , the c o n t r i b u t o r y demands on the various c o n s t i t u e n t parts of the o r g a n i z a t i o n , and the r e l a -t i o n s h i p between the c o n t r i b u t i o n to the attainment of the objec-t i v e s of the f i r m and the r e c e i p t of" rewards by and the o b j e c t i v e 9 attainment of the c o n t r i b u t o r s . I t could be noted that on the bas i s of t h i s communication and understanding, m i s f i t s or i n -a p p r o p r i a t e l y placed i n d i v i d u a l s may be detected and e l i m i n a t e d , r e l o c a t e d , or may chose to e x t r i c a t e themselves from the organi-z a t i o n . (2) They c o n s t r a i n the domain of the smaller systems of which the o r g a n i z a t i o n a l whole i s composed to such a degree that the number of innovative l e v e l s i n the o r g a n i z a t i o n i s l i m i t e d i n the i n t e r e s t s of the p r e s e r v a t i o n of the q u a l i t y of responsiveness to re c -t i f i c a t i o n or r e q u i r e d c o n t r i b u t i o n . The l a t t e r element of r e s -ponsiveness provides the system w i t h checks and balances so that the occurrence of e r r o r i s avoided as much as p o s s i b l e and so that the a c t i v i t i e s of the various parts of the o r g a n i z a t i o n have a r e l a t i o n to each other and the goals of the f i r m . In the absence of the c o n s t r a i n t s mentioned above there i s much more of 72. a p o s s i b i l i t y that perceived d i f f e r e n c e s between, (1) the o b j e c t i v e s of the o r g a n i z a t i o n a l whole and those of the component systems, and (2) thoughts as to the best manner of a t t a i n i n g the r e s p e c t i v e o b j e c t i v e s , w i l l manifest themselves i n behavior which i s deviant from an organi-z a t i o n a l viewpoint. Should t h i s occur, i n the long run i t may not be conducive to the attainment of the o b j e c t i v e s of the o r g a n i z a t i o n or the i n d i v i d u a l s who make up the o r g a n i z a t i o n , since i t may lead to a d e s t r u c t i o n of the o r g a n i z a t i o n a l whole i n which a l l concerned have a vested i n t e r e s t i n s o f a r as i t i s a v e h i c l e employed to achieve i n d i v i d u a l o b j e c t i v e s . The vast amount of r u l e s , procedures, boundaries, and c o n s t r a i n t s which are t y p i c a l l y present i n l a r g e o r g a n i z a t i o n s serve as means of i n t e g r a t i n g the i n d i v i d u a l s strengths w i t h i n the o r g a n i z a t i o n so that the product of the c o l l e c t i v e e f f o r t s w i l l indeed be greater than the product which could be a t t a i n e d by the parts were they operating independently. The c o n s t r a i n t s on i n n o v a t i v e a c t i o n as f a r as deter-mining the means and methods of a t t a i n i n g o b j e c t i v e s are necessary so that the incurrence and the r e c t i f i c a t i o n of e r r o r can be c o n t r o l l e d , and the i n i t i a t i v e , c r e a t i v i t y , and i n n o v a t i v e a c t i o n s of i n d i v i d u a l s do not run rampant but r a t h e r c o n t r i b u t e to the attainment of determined objec-t i v e s . ^ Were t h i s not the case, not only would o r g a n i z a t i o n s compound the e f f e c t s of i n d i v i d u a l energies and t a l e n t s , but they would a l s o compound the e f f e c t s of i n d i v i d u a l e r r o r , In large o r g a n i z a t i o n s there i s a great respect f o r precedence, p a r t i c u l a r l y w i t h regard to the incurrence of previous e r r o r . Therefore, w h i l e i t i s true that the c o n t r o l and a d m i n i s t r a t i o n mechanisms of l a r g e o r g a n i z a t i o n s do l i m i t i n d i v i d u a l freedom to make the same mistakes that others have made 73. before them, i t i s very d i f f i c u l t to r a t i o n a l i z e any condemnation of la r g e o r g a n i z a t i o n s on t h i s f e a t u r e . I t i s hypothesized here based on general o b s e r v a t i o n s , that i t i s unfortunate that because i t may o f t e n be assumed that large business o r g a n i z a t i o n s possess some degree of c e n t r a l i z a t i o n and the r e d u c t i o n of autonomous thought and a c t i o n , i t i s thought that o r i g i n a l i t y f i g h t s a l o s i n g b a t t l e i n the large o r g a n i z a t i o n and, t h e r e f o r e , the large organi-z a t i o n n a t u r a l l y c a r r i e s the seeds of i n d i v i d u a l s t a g n a t i o n . However, t h i s i s very misleading and much too much of an o v e r - g e n e r a l i z a t i o n . In the f i r s t p l a c e , the large business o r g a n i z a t i o n i n the modern environ ment must remain f l e x i b l e , adaptive, and innovative i f i t i s to su r v i v e the r i g o r s and pressures of the competitive environment. I t i s reasonabl then that the a c t i v e agents i n an o r g a n i z a t i o n (the human element) must possess s i m i l a r q u a l i t i e s . In a recent issue of Fortune Magazine'''''" i n an a r t i c l e on large corporate recruitment methods, i t was noted that such companies as Humble O i l search f o r q u a l i t i e s such as a w i l l i n g n e s s to take r i s k s , confidence i n le a d e r s h i p r o l e s , and widely v a r y i n g i n t e r e s t s , i n t h e i r management personnel. This would suggest that w h i l e t h i s type of behavior would not be re q u i r e d or encouraged at a l l l e v e l s of a l a r g e o r g a n i z a t i o n f or reason noted i n preceding d i s c u s s i o n i n t h i s s e c t i o n , i t could c e r t a i n l y be of great b e n e f i t i n s e l e c t e d l e v e l s of the organi-z a t i o n . Just how these q u a l i t i e s which are u s u a l l y found i n an entre-p r e n e u r i a l type i n d i v i d u a l can be used i n a large o r g a n i z a t i o n w i l l be discussed f u r t h e r i n l a t e r sections of t h i s chapter. In the second pl a c e , i t i s u n r e a l i s t i c to assume that an i n d i v i d u a w i l l stagnate i n an environment i n which he i s not allowed to make o r i g i n a l c o n t r i b u t i o n s or maintain complete autonomy w i t h regard to h i s 74. a c t i o n s . I t i s safe to say that the m a j o r i t y of i n d i v i d u a l s i n our s o c i e t y do not have the character make-up, the moral f o r t i t u d e , the a t t i t u d e s , or the s k i l l s and t a l e n t s which are r e q u i r e d , or seem to be r e q u i r e d , of an i n d i v i d u a l who would be s u c c e s s f u l i n an independent e n t e r p r i s e i n a market economy. In a d d i t i o n , i t i s u n l i k e l y i f most i n d i v i d u a l s would want to be autonomous or would make the s a c r i f i c e s that 12 are r e q u i r e d to be autonomous i n our modern i n d u s t r i a l s t a t e . The i n d i v i d u a l who a s s e r t s h i s independence i n our s o c i e t y i s o f t e n seen as 13 q u i t e immature and c h i l d l i k e i n manner. That i s , as s t a t e d by Gardner, "he i s a model of openness to new e x p e r i e n c e — r e c e p t i v e , c u r i o u s , eager, u n a f r a i d , w i l l i n g to t r y anything, and above a l l not i n h i b i t e d by f i x e d h a b i t s and a t t i t u d e s . " He i s f l e x i b l e and adaptive, and he must be inno v a t i v e i f he i s to s u r v i v e . In a d d i t i o n , he i s e a s i l y perceived as being i r r e s p o n s i b l e . These i n d i v i d u a l s are few. Successful men of t h i s type, we have come to regard as 'entrepreneurs.' However, s o c i e t y as we know i t produces co n d i t i o n s which are not conducive to t h i s a t t i t u d e f o r the m a j o r i t y . For i n s t a n c e , because of the high l e v e l of m a t e r i a l s a t i s -f a c t i o n enjoyed by the populus, low s u r v i v a l margins produced by r i s i n g expectations as to what l e v e l of m a t e r i a l holdings i s d e s i r a b l e or necessary to maintain a c e r t a i n s t a t u s , and perhaps a deeper i n s i g h t of people i n t o t h e i r own l i m i t a t i o n s as compared to what they b e l i e v e i s r e q u i r e d to be an independent e n t e r p r i s e r i n the market economy, i n d i v i d u a l s are induced to vest t h e i r i n t e r e s t s , come to accept the status quo, and become commited without the nerve or the i n d i v i d u a l strength to change. By w i l l i n g l y submitting to a u t h o r i t y , an i n d i v i d u a l r e l i e v e s h i m s e l f of the r e s p o n s i b i l i t y f o r h i s a c t i o n s and the a n x i e t i e s of i n d i v i d u a l autonomy, and by r a t i o n a l i z i n g a b e l i e f i n a system of r e l a t i v e dependence, an i n d i v i d u a l achieves a sense of s e c u r i t y which he could not f i n d elsewhere. He sees no reason to assert h i s independence from the o r g a n i z a t i o n because he enjoys the r e l a t i v e a f f l u e n t s t a t e that the large o r g a n i z a t i o n has made p o s s i b l e through increased p r o d u c t i v i t y . He also lacks the confidence and moral f o r t i t u d e to change and remove himsel f from the l a r g e o r g a n i z a t i o n a l system when he r e a l i z e s he can 14 increase h i s l o t throughtthe use of mechanisms w i t h i n them. As a r e s u l t he does not change. This man has resigned h i m s e l f to a l i f e of r e l a t i v e m e d i o c r i t y , but he probably made a wise choice. The o r g a n i z a t i o n a l entrepreneur, i s an i n t e l l i g e n t , e g o - c e n t r i c , independent i n d i v i d u a l who regards the la r g e o r g a n i z a t i o n as a v e h i c l e which he employs to achieve h i s own o b j e c t i v e s . He survi v e s the res-t r i c t i o n s on h i s independent a c t i o n through the acceptance of the f a c t that the c o n s t r a i n t s on h i s innovative a c t i o n c o n t r i b u t e to the strength and w e l l - b e i n g of h i s v e h i c l e without which as w i l l be seen i n the f o l l o w i n g s e c t i o n on the o r g a n i z a t i o n a l entrepreneur, he would not achieve or would at l e a s t have a more d i f f i c u l t time i n achiev i n g h i s o b j e c t i v e s . He does however, have various c h a r a c t e r i s t i c s which d i f f e r e n t i a t e him from the s e c u r i t y - s e e k e r or the commited and subsequently i n f l e x i b l e and 'immobile' i n d i v i d u a l . These w i l l be examined l a t e r i n t h i s t r e a t i s e , where i t w i l l become c l e a r e r as to how he uses the large o r g a n i z a t i o n and how i t uses him. Innovation: S u r v i v a l of the f i r m i n a competitive environment depends on the maintenance of a d i f f e r e n t i a l advantage by the f i r m . There are various ways i n which a d i f f e r e n t i a l advantage may be a t t a i n e d or maintained. Among the l e g a l and l e g i t i m a t e methods are: (1) the 76. possession of superior resources, (2) the superior o r g a n i z a t i o n and employment of a v a i l a b l e resources, and (3) i n n o v a t i o n . When a f i r m possesses a store of resources i t attempts to c a p i t a l i z e on t h e i r c o l l e c t i v e energy and s t r e n g t h as a u n i t through the t h e o r e t i c a l l y i n t e g r a t i n g e f f e c t s of r u l e s , procedures, c o n s t r a i n t s , and the productive i n f l u e n c e s of precedence and a u t h o r i t y . However, as pointed out p r e v i o u s l y , these l i m i t a t i o n s may i n v o l v e the supression of i n n o v a t i v e a c t i o n at s e l e c t e d l e v e l s i n the o r g a n i z a t i o n . Varying degrees of bureaucracy are inherent i n the h i e r a r c h i a l s t r u c t u r e s of large business o r g a n i z a t i o n s and t h i s feature does provide s t a b i l i t y i n s o f a r as the c o n t r o l l e d res-ponse of sub-systems i s concerned. However, c a r r i e d to extremes, enforced a u t o m a t i c i t y of response may v a r i o u s l y destroy or u n d e r - u t i l i z e the productive and i n n o v a t i v e c a p a c i t i e s w i t h i n the o r g a n i z a t i o n . Never-t h e l e s s , t h i s s u t a t i o n need not occur, and many of those who maintain that i t w i l l , base t h e i r contention on the hypothesis that as an organi-z a t i o n expands, c o n t r o l and decision-making become more c e n t r a l i z e d through attempts to i n t e g r a t e the d i f f e r e n t f u n c t i o n a l elements of the o r g a n i z a t i o n a l whole, thereby decreasing the demands upon the i n i t i a t i v e and i n n o v a t i v e a b i l i t i e s of the i n c r e a s i n g number of subordinate l e v e l s . This c o n d i t i o n would, t h e r e f o r e , decrease the need f o r i n d i v i d u a l s w i t h i n n o v a t i v e or decision-making a b i l i t i e s at lower l e v e l s i n the organi-z a t i o n . However, the hypothesis can be opposed from a number of view-points . F i r s t l y , the large s c a l e o r g a n i z a t i o n i s i t s e l f the product of innovation w i t h i n the business sphere as a method of e f f e c t i v e l y m o t i l i z i n g resources. The businesses which have been transformed i n t o l a r g e o r g a n i z a t i o n s were themselves the product of e n t r e p r e n e u r i a l endeavors and innovative s t r e n g t h s . In a d d i t i o n , since the i n c e p t i o n of the large s c a l e o r g a n i z a t i o n , t h i s form of business e n t e r p r i s e has continued to spread i n i t s use and succeed i n adapting to the c o n d i t i o n s and meeting the demands of i t s environment. I t i s unreasonable to main-t a i n that the s i z e of these giant o r g a n i z a t i o n s s e r i o u s l y suppresses otherwise productive i n i t i a t i v e and innovativeness i n areas where these t r a i t s are d e s i r a b l e , when they have been so obviously s u c c e s s f u l i n perpetuating t h e i r form and a c h i e v i n g t h e i r o b j e c t i v e s i n an ever-changing competitive environment wherein s u r v i v a l depends to such a major degree on i n n o v a t i o n , be i t s c i e n t i f i c , t e c h n i c a l , o r g a n i z a t i o n a l , or adminis-t r a t i v e , and wherein the powers and o p p o r t u n i t i e s of the i n d i v i d u a l to compete w i t h , r e s i s t , c h a llenge, defy, or even overtopple these large o r g a n i z a t i o n s are s t i l l very much present. The f a c t i s that the execu-t i v e s i n large s c a l e o r g a n i z a t i o n s , i n t h e i r e f f o r t s to develop new products, conceive new market s t r u c t u r e s , finance expanded a c t i v i t i e s , and develop o r g a n i z a t i o n s of people, t o o l s , and machines i n the p u r s u i t of e n t r e p r e n e u r i a l o b j e c t i v e s , must be j u s t as e n t r e p r e n e u r i a l and i n n o v a t i v e were each i n d i v i d u a l i n the o r g a n i z a t i o n attempting to conduct a business e n t e r p r i s e independently; perhaps even more so because of the immense resources that must be continuously r e v i t a l i z e d through new a c t i v i t i e s i n a changing environment. Under these c o n d i t i o n s , r a t h e r than a decrease, there w i l l be an increase i n the demand f o r t a l e n t e d manpower from the point of view of competence, energy, i n i t i a t i v e , and innovativeness r e q u i r e d to a s s i s t the business o r g a n i z a t i o n remain com p e t i t i v e , e f f e c t i v e l y m o b i l i z i n g i t s growing resource inventory amidst the i n c r e a s i n g l y complex human and non-human r e l a t i o n s h i p s which accompany the growth of the o r g a n i z a t i o n i n t e r n a l l y and e x t e r n a l l y . 78. Secondly, as an o r g a n i z a t i o n grows l a r g e r i n s i z e , attempts to c o n t r o l the workings of the o r g a n i z a t i o n a l system through the c e n t r a l i -z a t i o n of p o l i c y and d e c i s i o n making a u t h o r i t y may prove to be d i s f u n c -t i o n a l i n that they may lead to what may nebulously be r e f e r r e d to as a breakdown i n communication, thereby r e s u l t i n g i n a lack of c o n t r o l l e d response of subordinate l e v e l s , a lack of s e n s i t i v i t y of s u p e r i o r s to subordinate l e v e l s , and a lack of f l e x i b i l i t y which allows a f i r m to adapt to change i n a competitive environment. A v e r t i c a l l y expanding o r g a n i z a t i o n a l h i e r a r c h y normally can be expected to increase adminis-t r a t i v e d i s t ance i n the s t r u c t u r e , or i n other words, the number of l e v e l s between those l e v e l s i n the chain of command where the p o l i c i e s are made, where the d e c i s i o n s are made, and where the p o l i c i e s and the d e c i s i o n s are expected to be followed and c a r r i e d out, r e s p e c t i v e l y . I t may reasonably f o l l o w t h a t , given a s i t u a t i o n of extreme a d m i n i s t r a t i v e distance and poor communication, c e r t a i n types of i n d i v i d u a l s may come to f e e l that they are d e c i s i o n f o l l o w e r s , dependent on the whims and d i r e c t e d by the d e s i r e s of o t h e r s , part of a 'mass man' i n the organi-z a t i o n a l set-up, and unable to be i d e n t i f i e d , f u n c t i o n , or r e c e i v e r e c o g n i t i o n or s a t i s f a c t i o n as i n d i v i d u a l s . However, i t i s important that some q u a l i f i c a t i o n s be made w i t h regard to the above p r o p o s i t i o n . F i r s t l y , i t i s u n l i k e l y that a l l i n d i v i d u a l s are concerned w i t h t h e i r 16 o p e r a t i v e status as i n d i v i d u a l s w i t h i n the work environment. Secondly, as o r g a n i z a t i o n s and the h i e r a r c h i e s w i t h i n them expand, i t i s u n l i k e l y that a l l t a c t i c a l decis ion-making can or w i l l o r i g i n a t e from top p o s i t i o n s i n the h i e r a r c h y . Consider as a hypothesis that i t i s l i k e l y that because of i n c r e a s i n g problems of communication, e x p e r t i s e , s i z e and complexity of encountered r e l a t i o n s h i p s , and the expanding s t o r e of 79 . knowledge, data, and informat i o n r e q u i r e d to do business i n the modern i n d u s t r i a l world, deeper and wider h i e r a r c h i e s w i l l lead e i t h e r through circumstance of design, to more d e c i s i o n s and more f r e e i n t e r p r e t a t i o n of d e c i s i o n s being made at lower l e v e l s i n the o r g a n i z a t i o n a l h i e r a r -chies of large s c a l e business o r g a n i z a t i o n s . As a hypothesis i t may be stated that as a business e n t e r p r i s e increases i t s s c a l e of operations, and i t s a d m i n i s t r a t i v e h i e r a r c h i e s expand beyond some minimum l i m i t which would determine i t s c l a s s i f i c a t i o n as a la r g e s c a l e o r g a n i z a t i o n , the amount of d i s c r e t i o n a r y decision-making done at the subordinate l e v e l s of management i n the h i e r a r c h y w i l l increase regardless of whether or not the o r g a n i z a t i o n i s f o r m a l l y s t r u c t u r e d f o r c e n t r a l i z e d or d e c e n t r a l i z e d decision-making. This hypothesis i s based on two proposi-t i o n s : P r o p o s i t i o n 1: I f a large o r g a n i z a t i o n i s administered through a de-c e n t r a l i z e d decis ion-making s t r u c t u r e , then almost by d e f i n i t i o n t h i s i n v o l v e s the absence of c l o s e s u p e r v i s i o n by upper echelon a d m i n i s t r a t i n g bodies, and the dissemination of decision-making a u t h o r i t y through a hi e r a r c h y which i s developed more h o r i z o n t a l l y than v e r t i c a l l y . ^ P r o p o s i t i o n 2: I f a large o r g a n i z a t i o n i s administered through a c e n t r a l i z e d decision-making s t r u c t u r e , then as the o r g a n i z a t i o n expands, a point w i l l be reached i n the process of ' o r g a n i z a t i o n a l deepening' where a d m i n i s t r a t i v e distance reaches a c r i t i c a l l e v e l , and the problems of mutual communication and e f f e c t i v e span of c o n t r o l e i t h e r make i t imperative or at l e a s t a l l o w an independent a t t i t u d e on the part of the subordinated management l e v e l s such that they w i l l be i n f o r m a l l y r e q u i r e d or may e a s i l y f i n d the opportunity to make t h e i r own d e c i s i o n s 18 i n order to be operative i n the performance of t h e i r f u n c t i o n s . 80. Under e i t h e r p r o p o s i t i o n mentioned above, the i n d i v i d u a l w i t h i n i t i a t i v e and competence w i l l be able to f u n c t i o n r e l a t i v e l y independently i f he so chooses, being removed by design or distance i n the o r g a n i z a t i o n a l h i e r a r c h y from the d i r e c t decision-making a u t h o r i t y and i n f l u e n c e of h i s s u p e r i o r s . In the instance of d e c e n t r a l i z e d management, the proper f u n c t i o n i n g of the management system i s dependent by design on the existence of s e l f - e n e r g i z i n g , managerially competent, independent type i n d i v i d u a l s who can make f r u i t f u l d e c i s i o n s subject only to the s o l i c i t e d 19 advice of s u p e r i o r s . In the instance of c e n t r a l i z e d management, because of the a d m i n i s t r a t i v e d i s t a n c e , the proper f u n c t i o n i n g of the system may als o be dependent on the existence at lower l e v e l s of the type of i n d i v i d u a l mentioned above as being an i n t e g r a l component of a d e c e n t r a l i z e d management system. However, i n the c e n t r a l i z e d system, the i n d i v i d u a l may have a harder time g e t t i n g r e c o g n i t i o n f o r h i s independent a c t i o n because as i s f r e q u e n t l y the case, the c e n t r a l bodies i n which formal a u t h o r i t y and r e s p o n s i b i l i t y are vested may not make allowance i n t h e i r t h i n k i n g f o r the a b i l i t y of subordinate l e v e l s to accomplish and grow. As a consequence t h i s c e n t r a l body spends most of i t s time performing the tasks which i t normally should delegate, has l i t t l e time f o r inn o v a t i v e t h i n k i n g or a c t i o n , and tends to a t t r a c t those managers who are so i n c l i n e d . The independent i n d i v i d u a l can u s u a l l y f i n d many o p p o r t u n i t i e s to make an i d e n t i f i a b l e c o n t r i b u t i o n because of the communication gaps mentioned p r e v i o u s l y . In t h i s type of an o r g a n i z a t i o n any independent a c t i o n c e r t a i n l y stands out. Whether or not i t i s appreciated w i l l determine the independent type person's a b i l i t y to f u n c t i o n and achieve i n t h i s type of an a d m i n i s t r a t i v e s t r u c -t u r e , and h i s subsequent w i l l i n g n e s s to remain i n i t . 81. The c o o r d i n a t i o n of i n d i v i d u a l o b j e c t i v e s , the p r e s e r v a t i o n of f u n c t i o n a l u n i t y w i t h i n the f i r m , and i n n o v a t i o n , become i n c r e a s i n g l y complex because among other t h i n g s ; (1) the s i z e of business o r g a n i z a t i o n i s i n c r e a s i n g and along w i t h i t , the number of i n d i v i d u a l s employed by these o r g a n i z a t i o n s , (2) the competitive domain of the business organi-z a t i o n i s expanding and competition i s becoming more severe, and (3) because of the s i z e of the firms and the vastness of t h e i r undertakings, commitments, and competitive pressures, every idea or a c t i o n i n v o l v i n g change i s of great consequence as i t could e n t a i l massive r e - s h u f f l i n g of resources, and could be v i t a l to s u r v i v a l . For i n s t a n c e , the process of inn o v a t i o n no longer concerns j u s t one or a few i n d i v i d u a l s , but r a t h e r a s e r i e s of i n n o v a t i v e t h i n k e r s i n o f t e n lengthy processes, from i n v e n t i o n to marketing i n some cases. The d i v i s i o n of tasks such as innovation i n l a r g e s c a l e o r g a n i z a t i o n — t a s k s which were t r a d i t i o n a l l y thought to be performed by a few s e l e c t and g i f t e d i n d i v i d u a l s , o f t e n leads to confusion which manifests i t s e l f i n ideas suggesting that the performance of the task i t s e l f i s being e l i m i n a t e d . This i n t u r n leads to the suggestion that i n d i v i d u a l s who would o r d i n a r i l y perform these tasks would no longer be r e q u i r e d or would f i n d t h e i r t a l e n t s unappreciated were they to attempt to f u n c t i o n i n such an environment. In the f o l l o w i n g s e c t i o n on consumption through s p e c i a l i z a t i o n , an examination of the performance of e n t r e p r e n e u r i a l functions i n g e n e r a l , should prove u s e f u l i n forming a true p i c t u r e of the l a r g e s c a l e o r g a n i z a t i o n . Consumption Through S p e c i a l i z a t i o n As business o r g a n i z a t i o n s grow i n s i z e , of the f i r m i t s e l f and i t s undertakings, i t becomes i n c r e a s i n g l y u n l i k e l y that one i n d i v i d u a l 83. can f e a s i b l y undertake the performance of the e n t i r e gamut of entre-p r e n e u r i a l f u n c t i o n s w i t h i n the o r g a n i z a t i o n . The i m p o s s i b i l i t y of such an undertaking stems from the (1) growing requirements of data, knowledge, and info r m a t i o n necessary to make de c i s i o n s i n modern business, and (2) i n c r e a s i n g s i z e and complexity of r e l a t i o n s h i p s which are encountered both i n t e r n a l l y and e x t e r n a l l y due to the expanded operations and scope of the large s c a l e business's a c t i v i t i e s . As a r e s u l t , problems of r e q u i r e d e x p e r t i s e , c a p a c i t y , complexity, and communication make i t necessary that v a r i o u s aspects of the performance of the e n t r e p r e n e u r i a l f u n c t i o n s of o b s e r v a t i o n , execution, and planning, be shared. I t i s from t h i s d i v i d e d performance of the forementioned func t i o n s that the concept of the ' e n t r e p r e n e u r i a l team' or 'multiple entrepreneur 1 i s d e r i v e d . As o u t l i n e d by Cole, entrepreneurship i n large business organi-z a t i o n s i s , "the purposeful a c t i v i t y ( i n c l u d i n g an i n t e g r a t e d sequence of d e c i s i o n s ) of an i n d i v i d u a l or group of associated i n d i v i d u a l s , undertaken to i n i t i a t e , maintain, or aggrandize a p r o f i t o r i e n t e d business u n i t f o r the production or d i s t r i b u t i o n of economic goods or s e r v i c e s . The aggregate of i n d i v i d u a l s which together and c o o p e r a t i v e l y develop the d e c i s i o n s might perhaps be denominated as the ' e n t r e p r e n e u r i a l team. 1 I t i s r e a l l y a team i n the senses (a) that each person or o f f i c e r plays a p a r t i c u l a r p o s i t i o n or represents a p a r t i c u l a r aspect of the t o t a l e n t e r p r i s e , and (b) that each such person or o f f i c e r i s i n some measure a complement of the others as f a r as the t o t a l purposes of the u n i t are 20 concerned." Each member of the team i s t h e o r e t i c a l l y , i n knowledge or at l e a s t i n s o f a r as the performance of a p a r t i c u l a r delegated task i s concerned, a s p e c i a l i s t . One could conceive of a l a r g e e n t r e p r e n e u r i a l team being composed of a number of smaller f u n c t i o n a l teams which are 84. i n t u r n composed of other f u n c t i o n a l s p e c i a l i s t s (teams or i n d i v i d u a l s ) and so on down through the o r g a n i z a t i o n a l s t r u c t u r e w i t h each u n i t con-t r i b u t i n g to the t o t a l product of the whole e n t r e p r e n e u r i a l team. I t i s because of t h i s s e q u e n t i a l s p e c i a l i z a t i o n that many t h e o r i s t s fear that i n d i v i d u a l s i n the o r g a n i z a t i o n lose a sense of c o n t r i b u t i o n too, r e s p o n s i b i l i t y f o r , and i d e n t i f i c a t i o n w i t h , the t o t a l product of the o r g a n i z a t i o n . With these losses i t i s assumed that the i n d i v i d u a l w i l l l o s e h i s i n i t i a t i v e , i n n o v a t i v e c a p a c i t i e s , and the a b i l i t y to d e r i v e 2 personal s a t i s f a c t i o n of h i s achievement needs from h i s work environment. Admittedly, extreme s p e c i a l i z a t i o n does make i t more d i f f i c u l t f o r the subordinated i n d i v i d u a l to i d e n t i f y w i t h the t o t a l or end product of the e n t e r p r i s e . However, t h i s f a c t need not destroy the perception of i n d i v i d u a l i t y and achievement which comes from p u t t i n g f o r t h an i d e n t i -f i a b l e c o n t r i b u t i o n i n the completion of a task or production of a product C e r t a i n types of i n d i v i d u a l s such as the strong-minded e g o - c e n t r i c , have through t h e i r powers of reason, the c a p a c i t y to l i m i t t h e i r perception of the- scope of t h e i r endeavors i n the o r g a n i z a t i o n to such a degree that they are able to f i x a t e t h e i r a t t e n t i o n on those aspects of t h e i r task-performing environment which are conducive to the production w i t h i n themselves of a f e e l i n g of importance and having c o n t r i b u t e d . As a r e s u l t t h i s type of i n d i v i d u a l , by l i m i t i n g h i s perception of h i s working domain, may be able to see h i m s e l f as a b i g f r o g i n the pond of l i m i t e d s i z e r a t h e r than a small f r o g i n an ocean of complex r e l a t i o n s h i p s . There i s of course a l i m i t to the circumstances which the human mind can r e a l i s t i c a l l y r a t i o n a l i z e i n the manner o u t l i n e d above, and i t i s up to the e n t e r p r i s e concerned to some extent to provide a working environment which the s p e c i a l i s t may d i s s e c t i n h i s mind so that he may 85. perceive a sphere of i d e n t i f i c a t i o n which from performance t h e r e i n he 22 may d e r i v e s a t i s f a c t i o n of h i s psychic needs as an i n d i v i d u a l . The r e a l i t y of t h i s d i s s e c t i o n must of course be c o n t r o l l e d so that i t i s not d e s t r u c t i v e to the f u n c t i o n a l u n i t y or c o o r d i n a t i o n of the comple-ments i n the o r g a n i z a t i o n . However, understanding of t h i s mental de-c e n t r a l i z a t i o n by otherwise consumed i n d i v i d u a l s , provides an e x c e l l e n t b a s i s f o r f o r m a l l y d e c e n t r a l i z e d o r g a n i z a t i o n a l s t r u c t u r e s and the imple-mentation of reward and r e c o g n i t i o n p o l i c i e s from which maximum b e n e f i t may be derived i n s o f a r as s a t i s f y i n g i n d i v i d u a l needs and expectations. Not a l l i n d i v i d u a l s are capable of reasoning w i t h respect to t h e i r s p e c i a l i s t n s t a t u s as described p r e v i o u s l y , but then not a l l i n d i v i d u a l s are o v e r l y concerned w i t h t h e i r status and achievement as independent i n d i v i d u a l s i n t h e i r work environment. In s e c t i o n I I of t h i s chapter on the O r g a n i z a t i o n a l Entrepreneur, i t w i l l become more evident that the type of i n d i v i d u a l who has the strongest d e s i r e to achieve as an i n d i v i d u a l and who i s very much concerned w i t h h i s i n d i v i d u a l status per se, w i l l i n a l l l i k e l i h o o d be the same person who has been endowed w i t h or has developed the a t t i t u d e s and powers of reason which would p o t e n t i a l l y a l l o w him to s u r v i v e and f u n c t i o n very w e l l i n an environment of s p e c i a l i -z a t i o n as described i n t h i s s e c t i o n , assuming that he has the wisdom to employ these a t t i t u d e s to h i s own best advantage. There are of course other types of i n d i v i d u a l s who do not attempt to a s s e r t t h e i r i n d i v i d u a l i t y and who care l i t t l e i f perhaps there are r e s t r i c t i o n s on t h i s a s s e r t i o n should they decide to t h i n k or act otherwise. In the f o l l o w i n g s e c t i o n on consumption of i d e n t i t y , the workplace as a source of i d e n t i f i c a t i o n w i l l be examined more c l o s e l y to provide some i n s i g h t i n t o the question of j u s t how and to what extent i s the large business o r g a n i z a t i o n 87. important w i t h regard to i t s i n d i v i d u a l i s m consuming c h a r a c t e r i s t i c s . Consumption of I d e n t i t y Much of the concern f o r the s u r v i v a l of i n d i v i d u a l i s m i n the environment of the large s c a l e business o r g a n i z a t i o n i s perhaps o v e r l y dramatized by a b e l i e f i n two widely held assumptions. These assumptions are t h a t : (1) The work environment provides a major source of i d e n t i f i c a t i o n as w e l l as achievement or reward f o r the i n d i v i d u a l ; and (2) There i s a very high p r o b a b i l i t y that the work environment of large s c a l e business o r g a n i z a t i o n s i n h e r e n t l y possesses charac-t e r i s t i c s which are p e c u l i a r to large business o r g a n i z a t i o n s and which are completely d e s t r u c t i v e to i n d i v i d u a l t i c modes of behavior. These assumptions can be very misleading i f accepted at face value and merit c l o s e r s c r u t i n y to e s t a b l i s h t h e i r v a l i d i t y . As our i n d u s t r i a l s o c i e t y develops, and i t s p r o d u c t i v i t y i n c r e a s e s , people i n general become most a f f l u e n t and man i s r e q u i r e d to spend or spends out of choice, decreasing amounts of time at some income producing a c t i v i t y . As a b a s i s f o r d i s c u s s i o n , consider that i t i s probable that the average man spends approximately one-half of h i s non-sleeping hours employed at the 'job' from which he derives f i n a n c i a l support. This amount of time although decreasing, i s s t i l l s i g n i f i c a n t , and i t i s l i k e l y that the i n d i v i d u a l w i l l take and may demand every opportunity w i t h i n or without reason to make t h i s time as appealing and s a t i s f y i n g as p o s s i b l e , i f not simply because of the p r o p o r t i o n of h i s time i n v o l v e d . However, t h i s does not mean that the workplace i s n e c e s s a r i l y the only 88. or even the most important source of need s a t i s f a c t i o n f o r the i n d i v i d u a l . In f a c t , i t i s e n t i r e l y p o s s i b l e that the workplace as a source of iden-t i f i c a t i o n and achievement f o r the i n d i v i d u a l has decreased even more than the time spent i n the workplace. The general populus of our f r e e e n t e r p r i s e s o c i e t y seem to be i n c r e a s i n g l y disposed, and various groups completely commited, to the idea that during an i n d i v i d u a l ' s l i f e t i m e he can expect, and what's more he i s e n t i t l e d to expect, that the amount of time that he w i l l or must spend at the job from which he derives m a t e r i a l support w i l l decrease. This e x p e c t a t i o n i s based on the contemplation of e i t h e r : (1) a decreased need to work because f i n a n c i a l remuneration i s s u f f i c i e n t during the shorter periods worked to s a t i s f y a l l demands upon i t , or f i n a n c i a l remuneration i s forthcoming from other sources not r e q u i r i n g work such as various forms of s o c i a l support which are a v a i l a b l e ; or (2) a decreased demand f o r the q u a l i t y of s e r v i c e which an i n d i v i d u a l can o f f e r to the business s e c t o r . Therefore, as our technology advances and we progress toward a system of economic goods production i n which more and more people are superfluous to the production side of the business sector which i s and must be concerned p r i m a r i l y w i t h economic e f f i c i e n c y , those i n d i v i d u a l s who are not competitive as f a r as the q u a l i f i c a t i o n s that they possess i n comparison to other productive means, those i n d i v i d u a l s who are s t i l l competitive but whose q u a l i f i c a t i o n s place them on the t h r e s h o l d of being o b s o l e t e , and those i n d i v i d u a l s who are competitive but who perhaps prematurely contemplate being o b s o l e t e , are f i n d i n g other o u t l e t s f o r t h e i r energies and other sources of p h y s i c a l and psychic s a t i s f a c t i o n . The number of i n d i v i d u a l s who f i n d themselves i n these circumstances or who have these sentiments can be expected to 89 . i n c r e a s e . However, these i n d i v i d u a l s are not l i k e l y to be concerned w i t h t h e i r a b i l i t y to d e r i v e s a t i s f a c t i o n from t h e i r work environment of what might be r e f e r r e d to as 'upper l e v e l psychic concerns ' such as s e l f - a c t u a l i z a t i o n and the p r e s e r v a t i o n of independent p r e r o g a t i v e . I t i s to be expected that those i n d i v i d u a l s who are d e f i n i t e l y a non-competitive resource i n the business system and those i n d i v i d u a l s who are on the threshold of being non-competitive, w i l l r e v e r t to being concerned w i t h b a s i c remunerative aspects of t h e i r employment such as s e c u r i t y and f i n a n c i a l r e t u r n s , at the expense of t h e i r concern f o r d e r i v i n g psychic s a t i s f a c t i o n . L i k e w i s e , those i n d i v i d u a l s who are not. yet superfluous to the business system from a productive viewpoint but who are consumed by t h e i r perhaps premature contemplation of the idea and/or f a c t that they w i l l be at some f u t u r e time, are l i k e l y to place decreasing emphasis on the work environment as a source of psychic need s a t i s f a c t i o n because of t h e i r own understanding, p e r c e p t i o n , and r e s i g n a t i o n to the i n e v i t a b l e trends of an advancing f r e e e n t e r p r i s e i n d u s t r i a l s o c i e t y . The preceding arguments are c e r t a i n l y not con-c l u s i v e , but they do suggest that the workplace, of which the l a r g e s c a l e business o r g a n i z a t i o n i s i n c r e a s i n g l y c h a r a c t e r i s t i c , i s decreasing i n i t s importance, as a major source of i d e n t i f i c a t i o n which comes from making a worthy and i d e n t i f i a b l e c o n t r i b u t i o n i n a system, f o r an i n c r e a s i n g number of i n d i v i d u a l human productive u n i t s . By these argu-ments i t i s not intended that the importance of attentionsnand e f f o r t s d i r e c t e d toward the p r o v i s i o n of working environments conducive to i n d i v i d u a l development and p r o d u c t i v i t y i n the business sphere be down-graded i n any way, but merely to suggest that these e f f o r t s and a t t e n t i o n s need be d i r e c t e d toward decreasing numbers of i n d i v i d u a l s i n these large 90. o r g a n i z a t i o n s to.whom the work environment does provide a major source 23 of i d e n t i f i c a t i o n as w e l l as achievement and reward. These i n d i v i d u a l s are the expanding nucleus of h i g h l y t a l e n t e d manpower which t h i s t r e a t i s e i s concerned, because the bulk of the work f o r c e w i l l i n c r e a s i n g l y f a l l i n t o one of the c o n t i n g e n t l y superfluous s t a t e s mentioned p r e v i o u s l y , and as such are._not g r e a t l y concerned w i t h the working environment as a source of i d e n t i f i c a t i o n . In a d d i t i o n to questions a r i s i n g out of the assumed importance to the i n d i v i d u a l of the 'job' environment as discussed above, there are those questions which a r i s e as to the trueness of perspectives of large s c a l e business o r g a n i z a t i o n s which would i s o l a t e these o r g a n i z a t i o n s on the b a s i s of c h a r a c t e r i s t i c s deemed to be inherent i n or p e c u l i a r t o ' l a r g e o r g a n i z a t i o n s and p a r t i c u l a r l y d e s t r u c t i v e to i n d i v i d u a l i s t i c modes of behavior. Viewpoints which are based on the perceived e x i s t e n c e of a d e f i n i t e dichotomy between the working environment of the l a r g e s c a l e business o r g a n i z a t i o n and what s h a l l here be r e f e r r e d to as the non-working environment outside the o r g a n i z a t i o n , are somewhat outdated and erroneous--a f a c t due p r i n c i p a l l y to a misunderstanding o f , or a r e f u s a l to acknowledge the e v o l v i n g ecology of the large s c a l e business organi-z a t i o n . In the emerging i n d u s t r i a l s o c i e t y the large business corpora-t i o n - i s l e g a l l y an e n t i t y of i t s e l f . However, i f the l a r g e business o r g a n i z a t i o n i s to perpetuate i t s e x i s t e n c e , i t cannot operate as an i s o l a t e d e n t i t y i n that s o c i e t y . The l a r g e s c a l e business o r g a n i z a t i o n , as suggested e a r l i e r i n t h i s chapter, i s nothing more than a t o o l ; a combination of productive means and methods f i l l i n g a need, and created i n response to a demand. In the i n i t i a l stages of the i n d u s t r i a l r e v o l u t i o n when the large business 91. o r g a n i z a t i o n f i r s t evolved, i t i s probable that t h e i r sudden impact on the scene, t h e i r o f t e n a u t o c r a t i c and e x p l o i t i v e operating forms, t h e i r apparent c a p a b i l i t i e s to produce massive amounts of goods and s e r v i c e s through the absorption and employment of human and non-human resources, and g e n e r a l l y the somewhat r a d i c a l d i f f e r e n c e s that t h i s form of business o r g a n i z a t i o n or manner of resource m o b i l i z a t i o n was from and too the economic development and business forms which had preceded i t , served to r e i n f o r c e , perhaps j u s t i f i a b l y , any b e l i e f that t h i s form of business and economic co n c e n t r a t i o n p o t e n t i a l l y threatened i n d i v i d u a l i d e n t i f i c a t i o n i n the work environment. However, as the l a r g e s c a l e business o r g a n i z a t i o n matured and became e s t a b l i s h e d and more or l e s s accepted as a permanent featu r e of the business environment, i t was i n c r e a s i n g l y evident that competitive pressures and general market c o n s i d e r a t i o n s , both w i t h regard to input supply and output demand, were propogating the r e a l i -z a t i o n on the part of these maturing business o r g a n i z a t i o n s that they were not economically or s o c i a l l y independent e n t i t i e s i n s o c i e t y but r a t h e r i n t e g r a l and dependent parts of a f r e e e n t e r p r i s e s o c i a l system. This r e a l i z a t i o n i n turn l e d to a c t i o n s and a t t i t u d e s i n d i c a t i v e of a , new s o c i a l awareness and a growing d i s p o s i t i o n toward open-endedness w i t h regard to r e a c t i o n to i n f l u e n c e s outside the a c t u a l business o r g a n i z a t i o n but nevertheless included i n the business o r g a n i z a t i o n ' s t o t a l environment. While i t i s very d i f f i c u l t to determine whether the forementioned apparently humanistic i n c l i n a t i o n s , a c t i o n s , and a t t i t u d e s are the r e s u l t of p r a c t i c a l and r e a l i s t i c a n a l y s i s of market c o n s i d e r a t i o n s ^ or a r e a l m a n i f e s t a t i o n of an e v o l v i n g s o c i a l concern, i t i s perhaps not v i t a l to t h i s d i s c u s s i o n that t h i s determination be made. I t i s probable that both f a c t o r s have been instrumental i n b r i n g i n g about what may be c a l l e d the 'new look' i n l a r g e corporate perspective 92. and appearance; and r e g a r d l e s s , i n e i t h e r instance, the r e s u l t w i l l be e s s e n t i a l l y the same. That i s , i t serves to b r i n g the perceived work environment and the non-work environment, as w e l l as the r o l e s i n d i v i d u a l s perceive themselves as p l a y i n g i n these r e s p e c t i v e environments, more i n al l i g n m e n t ; t h i s on the b a s i s of a common d i r e c t i o n , that being the sur-25 v i v a l of the f i r m as an e n t i t y or simply as a t o o l . Just as the process of maturing seemingly a l t e r e d the p e r s p e c t i v e and the appearance of the l a r g e s c a l e business o r g a n i z a t i o n , so a l s o d i d a s i m i l a r maturing process a l t e r the sentiments of those people i n our f r e e e n t e r p r i s e s o c i e t y . Generally they s t i l l f e a r and r e s i s t anything or anyone threat e n i n g t h e i r s o - c a l l e d democratic processes and i n a l i e n a b l e r i g h t s to i n d i v i d u a l freedom and choice. However, i n our s o c i e t y , people i n general have a t t a i n e d higher l e v e l s of development and awareness, both economically and s o c i a l l y . The people as a whole dr. i n various i n t e r e s t groups have stood t h e i r grounds on numerable occasions, i n many areas of p o t e n t i a l oppression, against massive business o r g a n i z a t i o n s which must be both stimulated to preserve democracy, f r e e e n t e r p r i s e , and the h i g h standards of l i v i n g to which an i n c r e a s i n g p r o p o r t i o n of the populus 26 have become accustomed, and c o n t r o l l e d f o r the same reasons. C e r t a i n mechanisms, i f they can be c a l l e d t h a t , r e s u l t e d d i r e c t l y or i n d i r e c t l y out of these c o n f r o n t a t i o n s . These i d e a l l y provide some means of c o n t r o l over the large s c a l e business sector and i t s composite u n i t s so that maximum b e n e f i t s may be reaped f o r the maximum number of i n d i v i d u a l s i n the whole of s o c i e t y from these economic con c e n t r a t i o n s . The e x i s t e n c e of these mechanisms, as w e l l as the c a p a c i t y f o r and an already deeper understanding by people i n general of the large s c a l e business o r g a n i z a t i o n - - i t s s t r e n g t h s , weaknesses, b e n e f i t s , and 93. disadvantages, have f a c i l i t a t e d the perception by a l a r g e p r o p o r t i o n of the o v e r a l l populus of a s o r t of m u l t i p l e p a r t n e r s h i p , d i r e c t l y and i n d i r e c t l y between the a r t i f i c i a l e n t i t i e s w i t h i n the business or goods and s e r v i c e s producing sec t o r of our s o c i e t y , and the i n d i v i d u a l s i n our s o c i e t y , both i n t h e i r r o l e s w i t h i n and without the work environment. The various aspects of p a r t n e r s h i p through which the general populus i n a democratic f r e e e n t e r p r i s e s o c i e t y may p a r t i c i p a t e i n and i n f l u e n c e the l a r g e s c a l e business are: (1) the government e l e c t e d by the people; (2) r e g u l a t o r y bodies appointed by the e l e c t e d government; (3) the labor unions and other s i m i l a r groups composed of the people; (4) the schools of business and p r o f e s s i o n a l a s s o c i a t i o n s which teach and i n f l u e n c e , r e s p e c t i v e l y , s i g n i f i c a n t numbers of s t r a t e g i c a l l y located i n d i v i d u a l s employed i n managerial c a p a c i t i e s by these l a r g e o r g a n i z a t i o n s ; (5) shareholders who own the o r g a n i z a t i o n s ; people who do not n e c e s s a r i l y manage:,*,but who nevertheless r e t a i n u l t i m a t e c o n t r o l of the o r g a n i z a t i o n ; (6) a l l the various educational i n s t i t u t i o n s which i n s t i l l the c o l l e c t e d knowledge of the past, present, and f u t u r e , thereby developing'.-or at l e a s t p a r t i a l l y shaping the p e r s p e c t i v e and behavior of those i n d i v i d u a l s are or w i l l be i n the f u t u r e members of the labor f o r c e ; and (7) the consumers of the products of these o r g a n i z a t i o n s ; people who c o l l e c t i v e l y form the markets to which the o r g a n i z a t i o n s must appeal i n t h e i r e f f o r t s to s a t i s f y and c o n t r o l demand. A l l of these groups are i n a sense partners i n the massive o r g a n i z a t i o n s which have appeared i n the emerging i n d u s t r i a l s t a t e . As a consequence, the l a r g e business o r g a n i z a t i o n becomes a mechanism i n i t s e l f ; p r o v i d i n g some semblance of order to the barrage of concepts, t h e o r i e s , points of view, and d e s i r e s , be they economic, s o c i a l , r e l i g i o u s , or p o l i t i c a l , which flow from the v a r i o u s sectors 94. i n our world of ideas as represented by the forementioned mechanisms making the m u l t i p l e i n f l u e n c e s of the people manifest i n the large business o r g a n i z a t i o n and demanding that t h e i r d e s i r e s and b e l i e f s be r e f l e c t e d i n the standards, v a l u e s , o b j e c t i v e s , and methods of operation of these o r g a n i z a t i o n s . In our p l u r a l i s t i c s o c i e t y : (A) acceptance of the paradox that freedom i s l i m i t e d without order; (B) a manner of f a i t h by the general populus i n the adequacy o f , and a constant updating of the mechanisms by which they combat any m o n o l i t h i c or coe r c i v e ten-dencies of the vast business complexes to which they are i n c r e a s i n g l y exposed and through which they gain i n d i v i d u a l or group expression w i t h i n these o r g a n i z a t i o n s ; and, (C) acceptance by the l a r g e business organi-z a t i o n s of the f a c t that to s u r v i v e they must y i e l d to and balance the m u l t i p l e i n f l u e n c e s from t h e i r many 'partners' and acknowledge the exis t e n c e of and the n e c e s s i t y f o r the mechanisms which a f r e e and demo-c r a t i c s o c i e t y r e q u i r e s to insure that there i s not order without freedom; serve to b r i n g about a s o r t of cohesiveness which lessens the b e l i e f i n t h e , p r o p o s i t i o n that an i n d i v i d u a l assumes a d i f f e r e n t i d e n t i t y i n the work and non-work environments and that more p a r t i c u l a r l y the work environment o f the l a r g e o r g a n i z a t i o n must n e c e s s a r i l y destroy the i n d i v i d u a l i s t i c m a n ifestations of i d e n t i t y i n those i n d i v i d u a l s which i t employs. The l a r g e s c a l e business o r g a n i z a t i o n i s not an e n t i t y i n i t s e l f ; due p r i m a r i l y to the f a c t that we l i v e i n a market economy, the business o r g a n i z a t i o n i s what the people deem that i t should be. In the long run i t cannot consume the i d e n t i t y of the i n d i v i d u a l unless the i n d i v i d u a l , or s o c i e t y as a whole, decides that i n d i v i d u a l expression or i d e n t i t y i s no<:longer d e s i r a b l e and th e r e f o r e i n a sense choose to consume t h e i r own i d e n t i t i e s as d i f f e r e n t i a t e d i n d i v i d u a l s . To summarize t h i s s e c t i o n on i d e n t i t y — i t would seem that the a b i l i t y to as s e r t i n d i v i d u a l i s t i c tendencies i n the workplace are c l o s e l y r e l a t e d to p r o d u c t i v i t y i n the workplace. The business o r g a n i z a t i o n as an e f f i c i e n t productive u n i t both economically and s o c i a l l y cannot a f f o r d to impair i t s e f f i c i e n c y by a l l o w i n g unproductive i n d i v i d u a l i s m to mani-f e s t themselves i n the o r g a n i z a t i o n . However, i t al s o cannot a f f o r d to a l i e n a t e productive i n d i v i d u a l s by r e f u s i n g them the freedom on which t h e i r p r o d u c t i v i t y i s based thereby f l o u n d e r i n g because the medi o c r i t y which i s sure to be t h e i r s i f they do a l i e n a t e these i n d i v i d u a l s has no place i n an economy c h a r a c t e r i z e d by an i n c r e a s i n g tempo of growth and change. As a r e s u l t of t h i s f a c t , one i s tr e a d i n g p r e c a r i o u s l y on the b r i n k of nonsense i n condeming large business o r g a n i z a t i o n s on the ba s i s of des t r u c t i v e n e s s of operating forms to i n d i v i d u a l i s t i c behavior. I t i s a f i l t e r i n g process and not a consuming process to which i n d i v i d u a l behavior i s exposed i n large business o r g a n i z a t i o n s , and without t h i s f i l t e r i n g process i t i s u n l i k e l y that the p r o d u c t i v i t y of the economy can be maintained or grow at a l e v e l or r a t e , r e s p e c t i v e l y , adequate to support the i n c r e a s i n g numbers of i n d i v i d u a l s who are or w i l l be un-productive from an economic standpoint f o r i n c r e a s i n g proportions of t h e i r l i v e s but who s t i l l w i l l d e s i r e to maintain the r e l a t i v e l y high standards of l i v i n g to which they became accustomed w h i l e they were product i v e . 96. I I . BEHAVIORAL CHARACTERISTICS OF THE ORGANIZATIONAL ENTREPRENEUR27 In chapter I I of t h i s t h e s i s the t r a d i t i o n a l independent entre-preneur was examined from a number of viewpoints, the primary ones being: the functions he performed, h i s behavior c h a r a c t e r i s t i c s , and h i s back-ground. In an e f f o r t to f i n d some meaning i n the term 'entrepreneur,' a number of d e f i n i t i o n s were presented. However, i n the f i n a l a n a l y s i s i t was evident that the entrepreneur was best viewed not merely as that i n d i v i d u a l who was s u c c e s s f u l i n e s t a b l i s h i n g a business, but r a t h e r as one demonstrating a mode of behavior or c e r t a i n a t t i t u d e s which were pre-dominantly manifest i n those i n d i v i d u a l s who were s u c c e s s f u l i n b u i l d i n g going concerns i n the business environment. I f any one word was to be chosen to summarize or describe the mode of behavior and a t t i t u d e mentioned above, i t would be " i n d i v i d u a l i s t i c . " In one sense the e n t r e p r e n e u r i a l quest may be seen as ' k i n e t i c i n d i v i d u a l -ism' i n the business sector of s o c i e t y , although as demonstrated i n chapter I I , s u c c e s s f u l entrepreneurship o f t e n e n t a i l s compromising one's i n d i v i d u a l i s t i c tendencies i n the short run to a t t a i n s a t i s f a c t i o n of one's i n d i v i d u a l i s t i c needs i n the f i n a l a n a l y s i s . The f i r s t s e c t i o n of t h i s chapter' rendered an examination and e x p l a n a t i o n of c e r t a i n charac-( t e r i s t i c s of large s c a l e business o r g a n i z a t i o n s ; c h a r a c t e r i s t i c s which many people fear are not conducive to the existence of c o n d i t i o n s and forces which would a l l o w the perpetuation of k i n e t i c i n d i v i d u a l i s m . This s e c t i o n c o n s t i t u t e d the f i r s t step i n p r o v i d i n g a p e r s p e c t i v e of the large s c a l e business environment which would f a c i l i t a t e the understanding of not only the s u r v i v a l but a l s o the propogation of the e n t r e p e n e u r i a l type i n t h i s environment. I t i s r e a d i l y obvious that i f an i n d i v i d u a l i s employed i n an o r g a n i z a t i o n that he d i d not i n i t i a t e , then he cannot by d e f i n i t i o n be regarded as an independent entrepreneur from the t r a d i t i o n a l viewpoint as described i n chapter I I . I t f o l l o w s then, that the s o - c a l l e d 'entre-preneur' per se w i l l not appear i n the large s c a l e business o r g a n i z a t i o n . However, t h i s does not mean that the i n d i v i d u a l f a l l i n g i n t o the more f l e x i b l e and t h e r e f o r e u s e f u l c l a s s i f i c a t i o n of ' e n t r e p r e n e u r i a l type' w i l l not appear and f l o u r i s h i n the emerging large s c a l e i n d u s t r i a l business c l i m a t e . The i n d i v i d u a 1 whose behavior i s the f o c a l point of t h i s t r e a t i s e i s a mutated entrepreneur; he i s an o r g a n i z a t i o n man who e x h i b i t s what may properly be regarded as e n t r e p r e n e u r i a l behavior. That i s , he i s an ' o r g a n i z a t i o n a l entrepreneur.'' This s e c t i o n i s designed to d e l i n e a t e the behavior of what w i l l appear as an e n t r e p r e n e u r i a l type found i n large business o r g a n i z a t i o n s . I t i n t e g r a t e s the s o - c a l l e d e n t r e p r e n e u r i a l behavior and a t t i t u d e s e s t a b l i s h e d i n chapter I I w i t h the large s c a l e business environment portrayed i n the f i r s t s e c t i o n of chapter I I I , and i l l u s t r a t e s the e v o l u t i o n which has occurred i n the new organi-z a t i o n a l entrepreneur from h i s t r a d i t i o n a l independent e n t r e p r e n e u r i a l f o r b e a r e r s . Hopefully what w i l l emerge from t h i s s e c t i o n i n p a r t i c u l a r i s a b a s i s f o r a broader and more u s e f u l perspective of the entrepreneur, or moreover, the e n t r e p r e n e u r i a l type. To f a c i l i t a t e comparison between the t r a d i t i o n a l independent entrepreneur described i n chapter I I and the o r g a n i z a t i o n a l entrepreneur to be described i n t h i s s e c t i o n , t h i s s e c t i o n w i l l employ approximately the same o u t l i n e as used i n the previous chapter to examine the r e l e v a n t b e h a v i o r a l c h a r a c t e r i s t i c s of the t r a d i t i o n a l independent entrepreneur. I t i s a l s o intended that t h i s 98. approach r e v e a l as c l e a r l y as p o s s i b l e that not only are the entre-p r e n e u r i a l type's i n d i v i d u a l i s t i c tendencies not destroyed by the large corporate environment, but that i t i s the mature c o n s i d e r a t i o n and mani-f e s t a t i o n of these same tendencies which a l l o w t h i s i n d i v i d u a l to glean s a t i s f a c t i o n and achieve as an i n d i v i d u a l i n the la r g e o r g a n i z a t i o n . Before examining the o r g a n i z a t i o n a l entrepreneur i t i s important that a b a s i c understanding of the type and content of the tasks and functi o n s of t h i s i n d i v i d u a l i n the business o r g a n i z a t i o n be e s t a b l i s h e d . G e n e r a l l y , h i s f u n c t i o n i s that of p r o v i d i n g ' e n t r e p r e n e u r i a l s e r v i c e s . ' 28 Penrose describes e n t r e p r e n e u r i a l s e r v i c e s as, "those c o n t r i b u t i o n s to the operations of the f i r m which r e l a t e to the i n t r o d u c t i o n and acceptance on behalf of the f i r m of new ideas, p a r t i c u l a r l y w i t h respect to products, l o c a t i o n , and s i g n i f i c a n t changes i n technology, to the a c q u i s i t i o n of new managerial personnel, to fundamental changes i n the a d m i n i s t r a t i v e o r g a n i z a t i o n of the f i r m , to the r a i s i n g of c a p i t a l , and to making plans f o r expansion, i n c l u d i n g the choice of method of expansion." This quote gives a l i m i t e d p e r s p e c t i v e of e n t r e p r e n e u r i a l s e r v i c e s , but i s by no means complete due to the changing nature of the business environment. For instance, these s e r v i c e s are contrasted w i t h 'managerial s e r v i c e s , ' which r e l a t e to the execution of e n t r e p r e n e u r i a l ideas and proposals and 29 to the s u p e r v i s i o n of e x i s t i n g o p e r a t i o n s . However, the v a l i d i t y of t h i s contrast may be becoming i n c r e a s i n g l y meaningless. In a business environment c h a r a c t e r i z e d by s o p h i s t i c a t e d , complex, and r a p i d l y changing market s t r u c t u r e s , and a m u l t i p l i c i t y of influences emanating from the 30 i n t e r n a l and e x t e r n a l environment of the f i r m , the managerial f u n c t i o n becomes one of i n t e g r a t i o n of the o l d with the new; a task which involves change to such a degree that even i t can e a s i l y be seen as the 99 . e n t r e p r e n e u r i a l execution of managerial s e r v i c e s . However, the question of what i s new and what i s not, i s not a question which must be d e a l t w i t h here. The point which i s r e l e v a n t to the understanding of the p o s i t i o n of the o r g a n i z a t i o n a l entrepreneur i s that the tasks and func-t i o n s which he performs are s i g n i f i c a n t to the f i r m and i t s s u r v i v a l . They demand r e s p o n s i b l e decis ion-making, and they r e q u i r e e x t r a o r d i n a r y a b i l i t y i n the i n d i v i d u a l performing them. The r e a l i z a t i o n of t h i s f a c t w i l l f a c i l i t a t e to some extent the understanding of the p e r s p e c t i v e , a t t i t u d e s , and behavior of the o r g a n i z a t i o n a entrepreneur which w i l l be expanded upon i n the m a t e r i a l that i s to f o l l o w . Risk The o r g a n i z a t i o n a l entrepreneur i s not customarily regarded as a r i s k - t a k e r due to the nature of h i s a c t i v i t y and h i s p o s i t i o n i n the business environment, w i t h p a r t i c u l a r reference to any t i t l e which he may have to the resources w i t h which he works. Since the o r g a n i z a t i o n a l entrepreneur i s i n essence an employee of a business o r g a n i z a t i o n which i s owned and/or c o n t r o l l e d by persons other than h i m s e l f , then the resources w i t h which he works, other than h i s own personal a t t r i b u t e s , and which may be f o r f e i t as the r e s u l t of an i n c o r r e c t d e c i s i o n on h i s p a r t , are l i k e w i s e not h i s own as f a r as t i t l e i s concerned. Therefore, from t h i s one viewpoint, since the o r g a n i z a t i o n a l entrepreneur does not bear the r i s k of c a p i t a l l o s s as the r e s u l t of any i n c o r r e c t d e c i s i o n s which he may make, then he cannot be a r i s k - t a k e r . However, t h i s proposi-t i o n must be q u a l i f i e d . F i r s t l y , s ince i n t h i s t r e a t i s e the major concern i s w i t h the a f f e c t that r i s k perception has on i n d i v i d u a l behavior, then the presence of a c t u a l r i s k may not n e c e s s a r i l y be r e l e v a n t , because i t 100. i s the perceived r i s k , r e a l or otherwise, which has the i n f l u e n c e on the i n d i v i d u a l . Secondly, as was proposed i n chapter I I , p o t e n t i a l m a t e r i a l loss need not be the c r i t e r i o n by which an i n d i v i d u a l judges h i s exposure to r i s k . The o r g a n i z a t i o n a l entrepreneur i s f i r s t and foremost a d e c i s i o n -maker. What i s more, he has and demands the r e s p o n s i b i l i t y f o r those d e c i s i o n s i n the o r g a n i z a t i o n . In the performance of h i s f u n c t i o n he i s subject to the same u n c e r t a i n t i e s as i s the t r a d i t i o n a l independent entrepreneur; perhaps even more so due to the scal e of business i n which he makes h i s d e c i s i o n s . He i s b a s i c a l l y an ego-centric i n d i v i d u a l and i s thus concerned p r i m a r i l y w i t h h i m s e l f and h i s achievement. He makes a l l h i s d e c i s i o n s w i t h due c o n s i d e r a t i o n to how the va r i o u s i m p l i c a t i o n s of that d e c i s i o n w i l l a f f e c t h i s ^ p o s i t i o n i n the o r g a n i z a t i o n , r e a l i z i n g that h i s p o s i t i o n i n the o r g a n i z a t i o n i s d i r e c t l y r e l a t e d ( i d e a l l y ) to how h i s d e c i s i o n a f f e c t s the achievement by the f i r m of i t s goals and that h i s p o s i t i o n and performance i n the f i r m i s d i r e c t l y r e l a t e d to h i s a b i l i t y to employ the o r g a n i z a t i o n i n h i s quest to a t t a i n personal s a t i s -f a c t i o n i n a form determined by h i s i n d i v i d u a l m o t i v a t i n g i n f l u e n c e . I t i s proposed, t h e r e f o r e , that the o r g a n i z a t i o n a l entrepreneur does perceive h i m s e l f as being i n a r i s k - b e a r i n g p o s i t i o n , but that t h i s p o s i t i o n and subsequently h i s decision-making a b i l i t y i s not a f f e c t e d by the mere f a c t that he i s not the owner of the r i s k e d m a t e r i a l resources. The question i s t h e r e f o r e : What does the o r g a n i z a t i o n a l entrepreneur perceive as being at stake when he makes a d e c i s i o n , the regard f o r which would cause him to perceive the presence of r i s k and see himse l f as a r i s k - t a k e r ? The answer to t h i s question l i e s not only i n the man h i m s e l f , but a l s o i n h i s regard f o r the o r g a n i z a t i o n . 101. The o r g a n i z a t i o n a l entrepreneur, l i k e the t r a d i t i o n a l independent entre-preneur, a t t a i n s s a t i s f a c t i o n p r i m a r i l y through achieveing. As a r e s u l t of t h i s d e s i r e to achieve, the o r g a n i z a t i o n a l entrepreneur has an a f f i n i t y to competition. His pragmatic nature makes him very r e s u l t o r i e n t e d , and the chance to achieve a ' r e a l win,' or i n other words, to accomplish on the b a s i s of v i s i b l e d i f f e r e n c e s i n performance, ipso f a c t o means greater challenge and a chance to d e r i v e greater s a t i s f a c t i o n of h i s achievement needs. The value of the large business o r g a n i z a t i o n to the o r g a n i z a t i o n a l entrepreneur i s d i r e c t l y r e l a t e d to i t s use as a competitive device. He perceives an exposure to a two-fold competition through h i s r e l a t i o n s h i p w i t h the large o r g a n i z a t i o n . F i r s t l y , he perceives that the f i r m i n which he i s employed and to which he i s making a meaningful c o n t r i b u t i o n i s competing i n an e x t e r n a l environment i n which i t must achieve; producing a d i f f e r e n t i a l advantage to s u r v i v e . Secondly, he perceives h i m s e l f as competing w i t h h i s colleagues i n the firm's ' s u r v i v a l of the achiever' environment. He accepts and t h r i v e s on both competitive aspects of t h i s corporate environment and the constant demands f o r b e t t e r performance 31 which are inherent i n i t . Since as was proposed i n chapter I I the e n t r e p r e n e u r i a l type i s motivated by an inner d e s i r e to achieve along an 32 open-ended goal continuum, the presence and perception of an expectant atmosphere i n the f i r m serves to accentuate the competitive d r i v e of the o r g a n i z a t i o n a l entrepreneur because: (1) i t brings the arena where the competition takes place and where the rewards f o r winning are presented even c l o s e r than i f the i n d i v i d u a l was i n business f o r h i m s e l f ; and (2) i t i s one aspect of the very important compounding of competitive arenas which he p e r c e i v e s , because as a decision-maker i n a 102. r e s p o n s i b l e p o s i t i o n not only i s he an i n t e g r a l part of the e n t i r e firm's competition w i t h other firms but he i s also competing f o r r e c o g n i t i o n and advancement with other a s p i r i n g decision-makers. There i s one other f a c t o r i n f l u e n c i n g the o r g a n i z a t i o n a l entre-preneur's v a l u a t i o n of the large s c a l e business o r g a n i z a t i o n . This f a c t o r r e l a t e s to the very s i z e of the f i r m and the vastness of i t s 33 undertakings. Guzzardi found i n h i s studies of the young executive that many of those i n d i v i d u a l s at the management l e v e l who f e l t that they could be s u c c e s s f u l i n a business of t h e i r own d i d not endeavor to make t h i s move because they would have to decrease t h e i r s c a l e of opera t i o n s . They placed a high value on the opportunity to work w i t h the vast resources of the la r g e o r g a n i z a t i o n because not only d i d they derive greater s a t i s f a c t i o n from manipulating these resources but they a l s o appreciated the as s i s t a n c e that they were rendered i n t h e i r development process by these resources, p a r t i c u l a r l y the human element. As a r e s u l t of what has been stat e d i n the above paragraphs, i t i s a l o g i c a l p r o p o s i t i o n that i n making a d e c i s i o n w i t h respect to some aspect of the firm's o p e r a t i o n s , the o r g a n i z a t i o n a l entrepreneur does perceive h i m s e l f as being exposed to probable l o s s of something of va l u e , or i n other words, r i s k . These r i s k s a r i s e out of the a b i l i t y of the i n d i v i d u a l to continue to use the c o r p o r a t i o n or f i r m as a v e h i c l e to s a t i s f y h i s achievement or a c t u a l i z a t i o n needs. Everytime he makes a d e c i s i o n which can be traced to him, he runs the r i s k of being wrong and i n c u r r i n g the wrath of the powers that be i n the o r g a n i z a t i o n . While a mistake may not lead to d i s m i s s a l and the complete l o s s of the v e h i c l e , i t most c e r t a i n l y w i l l hinder him i n h i s competitive s t r u g g l e f o r more challenge, r e s p o n s i b i l i t y , a u t h o r i t y , f i n a n c i a l remuneration or other 103. means of development and/or r e c o g n i t i o n i n the large corporate system. This r i s k i s very r e a l to the o r g a n i z a t i o n a l entrepreneur and so even though he may have no c a p i t a l at stake i n the venture, there i s s t i l l a consequence of h i s d e c i s i o n s ; a consequence which i f i n f l u e n t i a l i n h i n d e r i n g h i s decisiveness could q u a l i f y him as a r i s k a v e r t o r , and which i f not i n f l u e n t i a l i n h i s d e c i s i o n s could q u a l i f y him as a r i s k - t a k e r i n the eyes of someone analyz i n g h i s d e c i s i o n methodology. Therefore, the question to be d e a l t w i t h at t h i s point i s t h a t : Given that there i s a p o t e n t i a l source of r i s k f o r the o r g a n i z a t i o n a l entrepreneur as a decision-maker i n an employee r e l a t i o n s h i p w i t h i n a f i r m , w i l l he be a r i s k - t a k e r or a r i s k - a v e r t o r ? 33 Studies by Guzzardi i n d i c a t e that the i n d i v u d a l who i s here designated as an o r g a n i z a t i o n a l entrepreneur, w i l l be a r i s k - t a k e r . That i s , he i s w i l l i n g under most circumstances to take a 50-50 chance of being c o r r e c t i n h i s d e c i s i o n . The reasons that the o r g a n i z a t i o n a l entrepreneur i s a r i s k - t a k e r are two-fold and are e s s e n t i a l l y the'same as those which were proposed as an explanation f o r the r i s k - t a k i n g a t t i t u d e of the t r a d i t i o n a l independent entrepreneur. They are: (1) s e l f - c o n f i d e n c e ; and (2) the d e s i r e to achieve. The o r g a n i z a t i o n a l entrepreneur approaches h i s tasks w i t h the a t t i t u d e that he can perform i n the competitive arena as good i f not b e t t e r than anyone e l s e . Furthermore, he has confidence that h i s . a b i l i t i e s and h i s a p p l i c a t i o n of those a b i l i t i e s w i l l make a d i f f e r e n c e i n the out-come of the task which he i s performing. However, u n l i k e the t r a d i t i o n a l independent entrepreneur, he does not p r i m a r i l y r e l y on or base h i s s e l f -confidence on h i s own f e e l i n g of i n t u i t i o n and judgment. Pragmatism i s h i s g u i l d i n g philosophy and even h i s f e e l i n g s of confidence have a very 104. strong p r a c t i c a l s i d e . He r e a l i z e s that s c i e n t i f i c and t e c h n i c a l a n a l y s i s as w e l l as knowledge are r e p l a c i n g the old''gut f e e l ' as a means of making d e c i s i o n s i n a business e n t e r p r i s e . Under the i n f l u e n c e of t h i s b e l i e f he i s c o n s t a n t l y s t r i v i n g to l e a r n , he goes to whatever length p o s s i b l e to gather f a c t s r e l e v a n t to the task at hand, and r i g h t or wrong he subjects h i s experiences, h i s d e c i s i o n making processes, and a l l considerata to a n a l y t i c a l e v a l u a t i o n . He uses whatever resources are at h i s command, inclu d i n g . t h o s e people who surround him i n the o r g a n i z a t i o n . He i s con-f i d e n t i n the a b i l i t y of these resources to a s s i s t him i n h i s t a s k s , confident in. h i s own a b i l i t y to use these resources, and competent i n h i s use of them. A l l of'these f a c t o r s c o n t r i b u t e to the extreme s e l f -confidence that the o r g a n i z a t i o n a l entrepreneur has i n h i m s e l f and the system of which he i s a p a r t . As a r e s u l t of the above a t t i t u d e s and behavior, the o r g a n i z a t i o n a l entrepreneur perceives the presence of r i s k i n a somewhat m i t i g a t e d l i g h t and may only acknowledge those elements of r i s k r e l a t i n g to the l i m i t a t i o n s of the f a c t s he has gathered and a p p l i e d i n d e a l i n g w i t h complex tasks and perhaps s t o c h a s t i c r e l a t i o n s h i p s . The second f a c t o r a f f e c t i n g the o r g a n i z a t i o n a l entrepreneur's per-c e p t i o n of r i s k or more p a r t i c u l a r l y h i s r e a c t i o n to r i s k , i s h i s d e s i r e to achieve or accomplish i n h i s own eyes and i n the eyes of others. In the competitive environment i n which the f i r m operates and i n the competi-t i v e arena of the f i r m i t s e l f , the o r g a n i z a t i o n a l entrepreneur seeks to render a meaningful c o n t r i b u t i o n t o the attainment of a d i f f e r e n t i a l advantage by the f i r m i n i t s competitive s t r u g g l e s and a l s o seeks to f a v o r a b l y d i f f e r e n t i a t e h i s own s e r v i c e s or performance i n h i s competition w i t h i n the f i r m . As one General E l e c t r i c p s y c h o l o g i s t put i t , he seeks 34 an 'opportunity f o r impact.' As a pragmatist he f e e l s that to make t h i s 105. impact he must be v i s i b l y p roductive, and as an executive he f e e l s that h i s p r o d u c t i v i t y i s d i r e c t l y r e l a t e d to h i s a b i l i t y to make a d e c i s i o n based on h i s a n a l y s i s of whatever s i t u a t i o n he i s involved i n . With respect to the a c t u a l making of the tr a c e a b l e d e c i s i o n , the executive i s exposed to the p o s s i b i l i t y of making two a l t e r n a t i v e types of e r r o r s : (1) he may make an e r r o r of omission. This i s an e r r o r incurred by o m i t t i n g to make a d e c i s i o n when a d e c i s i o n should have been made. This i s an e r r o r t y p i c a l l y made by the r i s k - a v e r t o r and as such i s considered a p o s s i b l e cost of conservatism. (2) He may make the e r r o r of comission. This i s an e r r o r i n c u r r e d e i t h e r because a d e c i s i o n was made when one was not warranted on the b a s i s of a v a i l a b l e i n f o r m a t i o n , or because an i n c o r r e c t d e c i s i o n was made as the r e s u l t of bad judgment. This i s an e r r o r t y p i c a l l y made by the r i s k - t a k e r and as such i s considered to be a p o s s i b l e cost of inn o v a t i o n . The greater the p r o b a b i l i t y of making an e r r o r of comission, the greater i s the r i s k . The greater the r i s k , the greater w i l l be the opportunity f o r the executive to make a tr a c e a b l e personal c o n t r i b u t i o n , or i n other words, an impact. Therefore, s i n c e the o r g a n i z a t i o n a l entrepreneur b e l i e v e s that he cannot advance or achieve without making an impact i n h i s working environment, and sin c e he a l s o b e l i e v e s that no impact of any s i g n i f i c a n c e can be made unless a d e c i s i o n i s made i n v o l v i n g the r i s k of making an i n c o r r e c t d e c i s i o n , the i n d i v i d u a l w i t h t h i s a t t i t u d e and outlook w i l l make a d e c i s i o n . In doing so he demonstrates that he would r a t h e r assume the r i s k concerning h i s status and achievement w i t h i n the organi-z a t i o n as r e l a t e d to the p r o b a b i l i t y that the d e c i s i o n made was i n c o r r e c t (chancing an e r r o r of comission), than d e f i n i t e l y not achieve anything 106. but s t i l l endanger h i s status because he omitted to make a d e c i s i o n which should have been made (chancing an e r r o r of omission). As stat e d p r e v i o u s l y , t h i s a t t i t u d e i s d i r e c t l y r e l a t e d to h i s extreme confidence i n h i s a b i l i t y to make a c o r r e c t d e c i s i o n , as i s the r i s k - t a k i n g a t t i t u d e of the t r a d i t i o n a l independent entrepreneur. However, u n l i k e the t r a d i -t i o n a l independent entrepreneur, he only allows t h i s confidence to supple-ment and not repl a c e or ov e r r i d e r a t i o n a l a n a l y s i s and e v a l u a t i o n . He w i l l expend every e f f o r t to hedge the r i s k involved because h i s d e c i s i o n s , regardless of whether they are good or bad, may be subject to s c r u t i n y by h i s superiors at any time i n h i s d e c i s i o n making process. Unless there i s a j u s t i f i a b l e e x p l a nation f o r a good or bad d e c i s i o n , one cannot hope to r e c e i v e r e c o g n i t i o n or rewards i n the la r g e corporate environment. Luck i s not r e a l l y an accomplishment i n the emerging i n d u s t r i a l environ-ment of b i g business because i t s reoccurrence i s als o f o r t u i t o u s . As a r e s u l t , unless the o r g a n i z a t i o n a l entrepreneur can gather enough data to at l e a s t render a 50-50 chance of success, i t i s u n l i k e l y that he w i l l make a d e c i s i o n to proceed based s o l e l y on h i s i n t u i t i o n . He i s a r i s k - t a k e r but not a f o o l . Facts and experience are the t o o l s of h i s t r a d e ; he respects them and has confidence i n them. As a summary to t h i s s e c t i o n a few points should be noted: (1) The q u a l i t y of being a r i s k - t a k e r , or i n other words the a b i l i t y to be d e c i s i v e under co n d i t i o n s of u n c e r t a i n t y , i s an a t t r i b u t e of the o r g a n i z a t i o n a l entrepreneur which forms a s u b s t a n t i a l part of h i s value to the e n t e r p r i s i n g large s c a l e o r g a n i z a t i o n . The f a c t that the confidence which i s at the root of t h i s q u a l i t y i s a r r i v e d at o b j e c t i v e l y by t h i s i n d i v i d u a l , increases h i s worth over that of the t r a d i t i o n a l independent entrepreneur whose 107 . confidence i s o f t e n i n t u i t i v e , because i t increases the p r o b a b i l i t y that the r i s k s involved have been i n v e s t i g a t e d and hedged to an appropriate degree thereby decreasing the chance that the resources under the c o n t r o l of t h i s i n d i v i d u a l w i l l be w a s t e f u l l y a p p l i e d . This n a t u r a l l y decreases the i n e f f i c i e n c y which r e s u l t s from e r r o r s made as a nation-'progresses through innovation and change. U n l i k e the t r a d i t i o n a l independent entrepreneur, the o r g a n i z a t i o n a l entrepreneur does evaluate r i s k o b j e c t i v e l y and r e a l i s t i c a l l y i n the eyes of a competent observer. Although h i s perception of r i s k i s somewhat a l t e r e d by h i s s e l f - c o n f i d e n c e and d e s i r e to avoid the r e s u l t s of i n a c t i o n , i t i s n e c e s s a r i l y coupled w i t h a demonstrated competence i n r i s k e v a l u a t i o n and the employment of h i s a b i l i t i e s and experiences. I f the o r g a n i z a t i o n a l entrepreneur i s to main-t a i n h i s p o s i t i o n i n the o r g a n i z a t i o n wherein he has d e c i s i o n -making powers and thus the opportunity f o r impact, he must al s o i n s p i r e confidence i n those who have u l t i m a t e or i n t e r i m c o n t r o l of the resources of the f i r m . He may do t h i s i n two general ways. F i r s t l y he may be c o n s i s t e n t l y c o r r e c t i n h i s d e c i s i o n s . Secondly, he may j u s t i f y h i s d e c i s i o n s not on the ba s i s of i n t u i t i o n and b l i n d f a i t h , but rat h e r on the ba s i s of competent and exhaustive e v a l u a t i o n of meaningful v a r i a b l e s . In t h i s l a t t e r i n stance, although he may not make the c o r r e c t d e c i s i o n , he may r e c e i v e p a r t i a l r e c o g n i t i o n f o r at l e a s t a j u s t i f i a b l e or understandable d e c i s i o n a r r i v e d at l o g i c a l l y through a- process of some acknow-ledgeable m e r i t . In an analagous sense the o r g a n i z a t i o n a l entre-preneur can be seen as f o r g i n g ahead, not burning the bridges behind him, and c a r e f u l l y e v a l u a t i n g every c r o s s i n g before i t i s 108 . made. He has the confidence that h i s own s k i l l s and e f f o r t s can make a d i f f e r e n c e i n the outcome, but he als o a p p l i e s t h i s s k i l l and e f f o r t at the e v a l u a t i o n stages of h i s task, making every e f f o r t to insure that he doesn't enter unwisely i n t o s u t a t i o n s which put unwarranted s t r a i n on h i s w i l l i n g n e s s to devote h i s time and e f f o r t to making some p r o j e c t a success when the undertaking of the p r o j e c t was r e a l l y the r e s u l t of an unwise d e c i s i o n or poor e v a l u a t i o n . Energy L i k e the t r a d i t i o n a l independent entrepreneur whose behavior was examined i n chapter I I , the o r g a n i z a t i o n a l entrepreneur a l s o possesses a q u a l i t y , here designated as 'energy,' which manifests i t s e l f i n demon-s t r a t i o n s of r e l e n t l e s s determination, an unshakeable d i s p o s i t i o n to d i l i g e n t a p p l i c a t i o n of e f f o r t i n his'work, and u n y i e l d i n g perseverence i n h i s a t t i t u d e to advance and achieve under any and a l l circumstances regardless of the demands such advancement may make f o r the expenditure of time and e f f o r t and reg a r d l e s s a l s o of the success already achieved. The energy f a c t o r i s p a r t i c u l a r l y d i f f i c u l t to understand i n the instance of the o r g a n i z a t i o n a l entrepreneur, because u n l i k e the t r a d i t i o n a l independent entrepreneur who i s i n business f o r h i m s e l f , the organi-z a t i o n a l entrepreneur i n h i s r o l e as an employee does not appear to be i n a d i r e c t reward s i t u a t i o n . That i s , on the surface i t appears as i f the employer r e c e i v e s the d i r e c t rewards of the e f f o r t s expended and the employee (the o r g a n i z a t i o n a l entrepreneur) the i n d i r e c t rewards. There-f o r e , the question i s : What motivates the o r g a n i z a t i o n a l entrepreneur to perform w i t h such v i g o r under the above circumstances? The answer to 109. t h i s question l i e s i n understanding the i n d i v i d u a l h i m s e l f and h i s per-c e p t i o n of h i s i n t e r a c t i o n w i t h the environment of the large s c a l e business o r g a n i z a t i o n . 35 As proposed i n chapter I I , the e n t r e p r e n e u r i a l type i s possessed by a consuming d e s i r e to accomplish, and a t t a i n s s a t i s f a c t i o n i n the work-place through constant and c o n s i s t e n t achievement along an open-ended goal continuum. In the instance of the o r g a n i z a t i o n a l entrepreneur, t h i s 36 d e s i r e u s u a l l y manifests i t s e l f i n a quest f o r promotion which Guzzardi found was regarded as both a s i g n of accomplishment and r e c o g n i t i o n . He i s extremely s e l f - c o n f i d e n t and b e l i e v e s that there i s a d i r e c t r e l a t i o n s h i p between h i s e f f o r t s and s k i l l and both the outcome of the tasks which he 37 undertakes and h i s achievement along h i s goal continuum. In a d d i t i o n , the o r g a n i z a t i o n a l entrepreneur i s an e g o - c e n t r i c , even to the extent that he has h i s own i n t e r n a l set of standards by which he gauges h i s advancement and h i s work output. In f a c t , due to h i s high o p i n i o n of h i m s e l f and h i s p o t e n t i a l , these standards are o f t e n higher than those which he would normally be r e q u i r e d to meet. Therefore, to the observer he may appear to be o v e r - c r i t i c a l and demanding of h i m s e l f and/or may appear to overwork. However, to the o r g a n i z a t i o n a l entrepreneur, working any l e s s or to any lower standard would mean s e l f - d e n i a l w i t h respect to h i s own s e l f - a c t u a l i z a t i o n f o r which he f e e l s t o t a l l y r e s p o n s i b l e . A b a s i s to the preceeding a t t i t u d e can be found i n c o n s i d e r i n g , (1) the i n f l u e n c e of the protestant e t h i c , and (2) the i n f l u e n c e of the competitive environment of the large s c a l e business o r g a n i z a t i o n and what was p r e v i o u s l y designated i n t h i s t r e a t i s e as ' e n t r e p r e n e u r i a l i d e n t i f i -38 c a t i o n . ' I t i s r e a d i l y obvious that energy i n the sense that i t i s used here i s a n a t u r a l m a n i f e s t a t i o n of the i n f l u e n c e of the protestant 110. e t h i c and f o r t h i s reason i t r e q u i r e s l i t t l e more d i s c u s s i o n than has already been afforded i t throughout t h i s t h e s i s . However, energy as a r e s u l t of 'entrepreneurial i d e n t i f i c a t i o n ' i s a somewhat deeper and more complex p r o p o s i t i o n to comprehend. Gen e r a l l y , i t can be viewed as another aspect of the o r g a n i z a t i o n a l entrepreneur's preoccupation w i t h ' m o b i l i t y . ' In chapter I I i t was proposed that the t r a d i t i o n a l independent entrepreneur was s e l f - m o t i v a t e d by the dynamics of h i s progress along an open-ended goal continuum. I t was f u r t h e r suggested that the combined i n f l u e n c e of the preceeding m o t i v a t i o n f a c t o r , the entrepreneur's i n d i v i d u a l i s t i c tendencies, and h i s personal elevated l e v e l of long range e x p e c t a t i o n s , caused him to i d e n t i f y w i t h those i n d i v i d u a l s who had a t t a i n e d the l e v e l of e n t r e p r e n e u r i a l development where a d e f i n i t e dynamic was s t i l l r e a d i l y observable i n the process. The degree to which he i d e n t i f i e d w i t h these i n d i v i d u a l s and to which h i s perception of t h e i r a c t i v i t i e s i n f l u e n c e d h i s behavior, was d i r e c t l y r e l a t e d to the r a p i d i t y of t h e i r movement along an achievement continuum i n those areas of con-s i d e r a t i o n that the t r a d i t i o n a l entrepreneur deemed r e l e v a n t to h i s own circumstances. In other words, even though the sense of i d e n t i f i c a t i o n was based merely on the t r a d i t i o n a l entrepreneur seeing what he wanted to see or expected to see, t h i s perception d i d i n f l u e n c e h i s standard of energy output to a considerable degree. The o r g a n i z a t i o n a l entrepreneur i s s i m i l a r l y i n c l i n e d to i d e n t i f y and be i n f l u e n c e d i n the above manner. In a study done by Professor 40 Eugene Jennings, a p r o f i l e of a type of o r g a n i z a t i o n member (managerial) was developed. This i n d i v i d u a l was designated as a 'mobicentric' and was i n many respects s i m i l a r to the o r g a n i z a t i o n a l entrepreneur described i n t h i s t r e a t i s e . For i n s t a n c e , Jennings found that the forementioned 111. manager " r e f e r s h i m s e l f p s y c h o l o g i c a l l y to people s e v e r a l l e v e l s above him who were f a s t climbers and tends to be somewhat a l o o f w i t h superiors who are slow c l i m b e r s . " This i s i n d i c a t i v e of behavior which i s to be expected of the o r g a n i z a t i o n a l entrepreneur as he has been described thus f a r , i n that (1) he i s v i t a l l y concerned w i t h upward m o b i l i t y , (2) he seeks greater opportunity f o r impact, more a u t h o r i t y , greater respon-s i b i l i t y , and increased rewards, and (3) he possesses h i g h , d r i v i n g , long range ex p e c t a t i o n s . I t i s important to note that the i d e n t i f i c a t i o n i s not w i t h a s u p e r i o r l e v e l per se, but r a t h e r w i t h the dynamic of a su p e r i o r l e v e l . In a sense, i t can be seen as an ' a s p i r a t i o n a l dynamic' as w e l l as an i d e n t i f i c a t i o n w i t h a b e h a v i o r a l mode. In e i t h e r case, as a r e s u l t o f t h i s i d e n t i f i c a t i o n the o r g a n i z a t i o n a l entrepreneur puts f o r t h the 'energy' that he expects, (1) w i l l a f f o r d him the a u t h o r i t y and r e s -p o n s i b i l i t y which he deems i s necessary f o r the propogation of h i s impact c a p a c i t y , (2) w i l l both j u s t i f y and a l l o w him to take f u l l advantage of the a u t h o r i t y and r e s p o n s i b i l i t y already afforded him, and (3) w i l l provide him w i t h a b a s i s on which to e s t a b l i s h an a f f i n i t y w i t h h i s ' a s p i r a t i o n a l dynamic' or i d e n t i f i c a t i o n b e h a v i o r a l group. A f u r t h e r query w i t h regard to the energy f a c t o r i n the behavior of the o r g a n i z a t i o n a l entrepreneur concerns the question of h i s d i l i g e n t and persevering approach to h i s tasks while i n the employ of an organi-z a t i o n from which so many others r e c e i v e the apparent b e n e f i t s of h i s e f f o r t s . I t was explained i n chapter I I that the t r a d i t i o n a l independent entrepreneur expends h i s e f f o r t s to the maximum extent of which he i s capable because he thi n k s p r i m a r i l y i n terms of h i m s e l f and more p a r t i c u -l a r l y i n terms of how h i s s e l f - a c t u a l i z a t i o n w i l l s u f f e r or progress as the d i r e c t r e s u l t of h i s e f f o r t s and s k i l l . In t h i s i n stance, the above 112. a t t i t u d e was e a s i e r to understand because he was self-employed and, t h e r e f o r e , i f h i s business was a success then so was he. However, ;in the instance of the o r g a n i z a t i o n a l entrepreneur t h i s type of d i r e c t r e l a t i o n s h i p i s more d i f f i c u l t to e s t a b l i s h because appearances and f a c t would i n d i c a t e that there i s no d i r e c t r e l a t i o n s h i p of t h i s type. In s p i t e of appearances and f a c t s w i t h respect to the r e a l i t i e s of the r e l a t i o n s h i p of the o r g a n i z a t i o n a l entrepreneur and the business o r g a n i z a t i o n , the explanation f o r the energy output of t h i s i n d i v i d u a l i s s t i l l r e l a t e d to s e l f - c o n s i d e r a t i o n s . I t i s important to r e a l i z e that i t i s the o r g a n i z a t i o n a l entrepreneur's perception of h i s r e l a t i o n s h i p w i t h the o r g a n i z a t i o n which determines h i s behavior and t h i s p e r c e p t i o n may be e n t i r e l y d i f f e r e n t than that of an observer of h i s s i t u a t i o n . As a case i n p o i n t , consider the p r o p o s i t i o n that the o r g a n i z a t i o n a l entre-preneur does not i n any way f e e l that h i s p o s i t i o n i n the business o r g a n i z a t i o n i s one of subservience, i n s p i t e of the f a c t that he works f o r i t and r e c e i v e s h i s rewards from i t . He does assent to i t s funda-mental purpose to the extent that such assent s u i t s h i s needs. However, he views the o r g a n i z a t i o n as a t o o l or v e h i c l e which he employs to h i s own ends. The expenditure of energy i s one of the mechanisms by which he takes f u l l advantage of the o r g a n i z a t i o n , or moreover, What i t can c o n t r i b u t e to h i s personal f u l f i l l m e n t . His r e l a t i o n s h i p w i t h the o r g a n i z a t i o n i s one of mutual b e n e f a c t i o n , w i t h each e n t i t y u s i n g the other to i t s own best advantage. Only the h i g h l y developed t r a n s a c t i o n a l mode which comes 41 w i t h e n t r e p r e n e u r i a l maturity allows the o r g a n i z a t i o n a l entrepreneur to t h r i v e as an i n d i v i d u a l i n t h i s type of a r e l a t i o n s h i p . The o r g a n i z a t i o n a l entrepreneur i s an independent i n d i v i d u a l s t r i v i n g f o r h i s own s e l f - a c t u a l i z a t i o n . Furthermore, he f e e l s that 113. t h i s s e l f - a c t u a l i z a t i o n r e s t s squarely on h i s own shoulders and depends, t h e r e f o r e , on the a p p l i c a t i o n of h i s own e f f o r t and s k i l l and h i s a b i l i t y to assert h i s own i n d i v i d u a l i s m i n h i s work environment. In the large s c a l e business o r g a n i z a t i o n he i s n a t u r a l l y faced w i t h the problem of overcoming r e s i s t a n c e to h i s i n d i v i d u a l i s m based on the question of the merit of a l l o w i n g t h i s i n d i v i d u a l i s m to manifest i t s e l f i n an o r g a n i z a t i o n which depends f o r i t s s t r e n g t h and s u r v i v a l on u n i t y and common endeavor. He r e a l i z e s that h i s only hope to b r i n g about and s u s t a i n h i s o p p o r t u n i t i e s f o r i n d i v i d u a l a c t i o n and the attainment and progression of h i s ' a s p i r a -t i o n a l dynamic,' i s to prove s u c c e s s f u l f o r the o r g a n i z a t i o n thereby e s t a b l i s h i n g h i s personal worth as an i n d i v i d u a l to the o r g a n i z a t i o n as a whole. I t i s here that he encounters a v i c i o u s c i r c l e , because i n most cases to be r e c o g n i z a b l y s u c c e s s f u l i n the business o r g a n i z a t i o n an i n d i v i d u a l must have a t t a i n e d a s t a t e of dynamism where he i s able to make the impact which he d e s i r e s so that he may progress toward h i s ' a s p i r a t i o n a l d y n amic' The a p p l i c a t i o n of energy i s i n essence a 'dynamic a c c e l e r a t o r ' which can be s e l f - g i v e n and as such i s not a point on the forementioned c i r c l e . I t c o n t r i b u t e s to progress around the c i r c l e but acts as s o r t of an outside f o r c e . On the other hand, others*^ given dynamic a c c e l e r a t o r s ' such as a u t h o r i t y and r e s p o n s i b i l i t y are w i t h h e l d as points of progress i n the v i c i o u s c i r c l e of o r g a n i z a t i o n a l advancement. The expenditure of energy i s the one 'dynamic a c c e l e r a t o r ' which i s not d i s -c r e t i o n a r y on anyone's part except the o r g a n i z a t i o n a l entrepreneur. There are other f a c t o r s which determine the energy output of the o r g a n i z a t i o n a l entrepreneur. These f a c t o r s may be regarded as working c o n d i t i o n s demanded by the o r g a n i z a t i o n a l entrepreneur f o r h i s develop-ment and s e r v i c e s . S p e c i f i c a l l y , these f a c t o r s are c h a l l e n g i n g 114. o p p o r t u n i t i e s j r e s p o n s i b i l i t y , c o n t r o l , and feedback. These f a c t o r s are v i t a l to the development of the e n t r e p r e n e u r i a l type i n the la r g e •business o r g a n i z a t i o n , and w i l l t herefore be discussed i n the f o l l o w i n g s e c t i o n . R e s p o n s i b i l i t y , C o n t r o l and Feedback There are c e r t a i n a t t r i b u t e s of the o r g a n i z a t i o n a l s i t u a t i o n which must n e c e s s a r i l y be present to both a t t r a c t the o r g a n i z a t i o n a l entre-preneur to the f i r m and s t i m u l a t e h i s energies during the employment p e r i o d . As explained i n previous s e c t i o n s , the o r g a n i z a t i o n a l entre-preneur i s most v i t a l l y concerned w i t h h i s own personal development and achievement. In h i s work environment he r e l a t e s the forementioned achievement d i r e c t l y to h i s opportunity to make an impact or the a t t a i n -ment of h i s ' a s p i r a t i o n a l dynamic. 1 The a b i l i t y to make the de s i r e d impact i s determined by both the exis t e n c e of a challenge (a r i s k bearing s i t u a t i o n ) and the possession by the o r g a n i z a t i o n a l entrepreneur of means i n the o r g a n i z a t i o n w i t h which to be e f f e c t i v e i n meeting the forementioned challenge and b e n e f i t from a s u c c e s s f u l encounter. These means s h a l l be designated here as 'dynamic a c c e l e r a t o r s . ' They may be s e l f - g i v e n to a s i t u a t i o n as i n the instance of energy, s k i l l or knowledge, or e l s e they may be others-given as i n the instance of r e s p o n s i b i l i t y , c o n t r o l or a u t h o r i t y , and autonomy. As w i l l be seen i n E x h i b i t I I I - A and explained i n the f o l l o w i n g paragraphs, the output of s e l f - g i v e n dynamic a c c e l e r a t o r s by the o r g a n i z a t i o n a l entrepreneur i n the o r g a n i z a t i o n a l s i t u a t i o n i s dependent on the presence of others-given dynamic a c c e l e r a t o r s . 42 In h i s studies of the young ex e c u t i v e , Guzzardi found that the two prime d e s i d e r a t a i n e v a l u a t i n g the o r g a n i z a t i o n a l s i t u a t i o n were challenge and r e s p o n s i b i l i t y . This i s understandable because the absence of e i t h e r of these would d e f i n i t e l y l i m i t the opportunity f o r impact which i s so important to the o r g a n i z a t i o n a l entrepreneur because of h i s o b j e c t i v e a s s o c i a t i o n of impact and progressive development i n the business o r g a n i z a t i o n . Furthermore, the absence of e i t h e r challenge or r e s p o n s i b i l i t y would a l t e r the o r g a n i z a t i o n a l entrepreneur's pe r c e p t i o n of r i s k w i t h respect to the p a r t i c u l a r s i t u a t i o n to such a great degree that i t would destroy the perception o f personal involvement which has i t s b a s i s i n the i n d i v i d u a l ' s expectations that h i s personal e f f o r t s and s k i l l s w i l l make a d e c i s i v e d i f f e r e n c e i n the outcome of the c h a l l e n g i n g s i t u a t i o n or task. This occurrence could i n t u r n be expected to c u r t a i l the energy output which c h a r a c t e r i z e s the o r g a n i z a t i o n a l entrepreneur under i d e a l circumstances because t h i s b a s i c a l l y e g o - c e n t r i c i n d i v i d u a l cannot be expected to devote h i s energies to any s i t u a t i o n which i s not p o t e n t i a l l y s a t i s f y i n g from an impact or ah achievement standpoint. Before d e l i n e a t i n g the concept of dynamic a c c e l e r a t i o n f u r t h e r i t i s important to give c o n s i d e r a t i o n to one o t h e r v v a r i a b l e i n the o r g a n i z a t i o n a l entrepreneur's v a l u a t i o n of h i s p o t e n t i a l dynamism. This v a r i a b l e i s c o n t r o l , or freedom to c o n t r o l . In one sense r e s p o n s i b i l i t y and c o n t r o l may be seen as dual v a r i a b l e s i n that one without the other i s d i s f u n c t i o n a l as f a r as appealing to the e n t r e p r e n e u r i a l type i n a given s i t u a t i o n . U n l i k e the t r a d i t i o n a l independent entrepreneur, the o r g a n i z a t i o n a l entrepreneur i s not customarily the u l t i m a t e d e c i s i o n -maker i n the o r g a n i z a t i o n . However, si n c e he i s e s s e n t i a l l y task o r i e n t e d he does demand the freedom i n p a r t i c u l a r instances to d i r e c t the e f f o r t s of h i s own ideas. In a l a r g e business o r g a n i z a t i o n an i n d i v i d u a l ' s impact i n a job s i t u a t i o n i s p a r t i a l l y determined by the 116. number of superior l e v e l s where an i n d i v i d u a l ' s d e c i s i o n i s subject to r e v e r s a l . As a r e s u l t of t h i s f a c t and the o r g a n i z a t i o n a l entrepreneur's c o n v i c t i o n s and d e s i r e f o r impact, he demands as u l t i m a t e a decision-making a u t h o r i t y as may be afforded him subject to the f u n c t i o n a l l i m i t a t i o n s o f o r g a n i z a t i o n a l u n i t y . Furthermore, l i k e the t r a d i t i o n a l independent entrepreneur, he w i l l terminate any r e l a t i o n s h i p which proves or may prove d i s a p p o i n t i n g from a reward (money, promotion, etc.) or a job q u a l i t y (challenge, r e s p o n s i b i l i t y , c o n t r o l , etc.) standpoint. What has been proposed above i s not meant to suggest that the o r g a n i z a t i o n a l entre-preneur i s independent and s e l f - c e n t r e d to the extent that he i s i n h e r e n t l y d i s f u n c t i o n a l to an o r g a n i z a t i o n per se. .The o r g a n i z a t i o n i s h i s achieve-ment v e h i c l e and he i s ever cognizant and considerate of the importance of i t s w e l f a r e . Inr.addition he i s aware that i f he i s to do w e l l by h i m s e l f from a reward and achievement standpoint then he must do w e l l by others from a s a t i s f a c t i o n or mutual advantage standpoint. As simply 43 s t a t e d by Guzzardi, "through the dual and r e l a t e d processes of d i s s e n t and d e c i s i o n , the young executive has found i n the corporate m i l i e u an expression of h i s true i n d i v i d u a l i t y . " However, r e s p o n s i b i l i t y , c o n t r o l , and freedom are too c l o s e l y associated w i t h h i s personal achievement cap a c i t y (as r e l a t e d to impact) to take a place of secondary concern i n h i s outlook. The o r g a n i z a t i o n a l entrepreneur chances the consequences of f a i l u r e , expects the rewards of success, but demands the means w i t h which to make a t r a c e a b l e impact. In E x h i b i t I I I - A the concept of o r g a n i z a t i o n a l e n t r e p r e n e u r i a l dynamic a c c e l e r a t i o n i s diagrammatically represented. I t i s designed to i l l u s t r a t e , (1) the r e l a t i o n s h i p between o t h e r s — g i v e n dynamic a c c e l e r a t o r s and s e l f - g i v e n dynamic a c c e l e r a t o r s , and (2) the i n f l u e n c e of pre-performance Basic M o t i v a t i o n Dynamics of movement along open-ended goal continuum. S a t i s f a c t i o n 799? 4 S e l f Confidence Feedback Re s u l t s of E f f o r t s (reward or consequence) A c t u a l Performance O r g a n i z a t i o n a l S i t u a t i o n Presence of challenge and others given dynamic a c c e l e r a t o r s . •I Performance Expectations Plus <r Reward - Performance Expectations Plus Value of Expected Reward to the I n d i v i d u a l S e l f - g i v e n Dynamic A c c e l e r a t o r s Output: energy, s k i l l , knowledge E x h i b i t III-A. O r g a n i z a t i o n a l E n t r e p r e n e u r i a l Drive A c c e l e r a t i o n . 118. expectations and s a t i s f a c t i o n and the a c t u a l performance of the organi-z a t i o n a l entrepreneur. As i n d i c a t e d by the diagram, the d r i v e a c c e l e r a -t i o n c y c l e i s b a s i c a l l y r e l a t e d to the m o t i v a t i o n a l d r i v e of the organi-z a t i o n a l entrepreneur and i s predicated on h i s s e l f - c o n f i d e n c e , deter-mination, and expectations as to h i s s e l f - r e a l i z a t i o n both from the viewpoint of opportunity and need. The o r g a n i z a t i o n a l entrepreneur i s motivated by the a n t i c i p a t e d dynamics of h i s movement along an open-ended 44 goal continuum. As w i l l be explained s h o r t l y , the s p e c i f i c goals become re l e v a n t to the a c c e l e r a t i o n c y c l e at that p o i n t where the i m p l i c a t i o n s of feedback and reward are considered. In view of h i s b a s i c d e s i r e f o r achievement, the o r g a n i z a t i o n a l entrepreneur seeks an o r g a n i z a t i o n a l s i t u a t i o n which has an achievement p o t e n t i a l . He judges t h i s achievement p o t e n t i a l by the presence of o t h e r s — g i v e n dynamic a c c e l e r a t o r s such as challenge, r e s p o n s i b i l i t y , c o n t r o l , r e l a t i v e autonomy, and o b j e c t i v e feedback mechanisms. The presence of these a c c e l e r a t o r s determine the o r g a n i z a t i o n a l entrepreneur's perception of the o r g a n i z a t i o n a l s i t u a t i o n w i t h respect t o : (1) the ^ p o s s i b i l i t i e s f o r s i t u a t i o n a l impact, (2) the a v a i l a b i l i t y of means w i t h which to take advantage of the f o r e -mentioned p o s s i b i l i t i e s , and (3) the mechanisms through which achievement and the attainment of an a s p i r a t i o n a l dynamic i n the o r g a n i z a t i o n serve to c o n t r i b u t e to dynamism i n h i s quest to advance along h i s personal' goal continuum. A f t e r c a r e f u l s c r u t i n y of the o r g a n i z a t i o n a l s i t u a t i o n the organi-z a t i o n a l entrepreneur w i l l form an o p i n i o n , based on h i s own expectations and d e s i r e s , concerning the adequacy of the others-given dynamic a c c e l e r a -t i o n content of the o r g a n i z a t i o n i n general and h i s p o s i b l e s i t u a t i o n i n p a r t i c u l a r . I f the o r g a n i z a t i o n a l entrepreneur's o p i n i o n of the 119. o r g a n i z a t i o n i s unfavorable w i t h respect to the p r o v i s i o n of others-given dynamic a c c e l e r a t o r s to him i n the s i t u a t i o n under c o n s i d e r a t i o n , then he w i l l abandon or r e j e c t i t . However, i f h i s o p i n i o n i s favorable w i t h respect to the p r o v i s i o n by the o r g a n i z a t i o n of others-given dynamic a c c e l e r a t o r s , then the f o l l o w i n g sequence of events i s l i k e l y to occur: (1) The combined i n f l u e n c e of the o r g a n i z a t i o n a l entrepreneur's deter-mination, s e l f - c o n f i d e n c e , and favorable impression of the org a n i -z a t i o n a l s i t u a t i o n as explained above, w i l l r e s u l t i n an expectation by him of s u c c e s s f u l performance i n the o r g a n i z a t i o n a l s i t u a t i o n . (2) Since the o r g a n i z a t i o n a l entrepreneur i s fav o r a b l y impressed w i t h the o r g a n i z a t i o n a l s i t u a t i o n as a whole, and i n as much as t h i s impression was a r r i v e d at a f t e r due c o n s i d e r a t i o n f o r the process through which rewards are to be derived i n the p a r t i c u l a r s i t u a t i o n , i t i s l i k e l y that i n view of t h i s i n d i v i d u a l ' s expectation of s u c c e s s f u l performance i n the s i t u a t i o n should he decide to under-take i t , he f u l l y expects the forementioned rewards to be f o r t h -coming and a matter of course. (3) Since the o r g a n i z a t i o n a l entrepreneur- i s favorably impressed w i t h the o r g a n i z a t i o n a l s i t u a t i o n as a whole, and i n as much as t h i s impression was a r r i v e d at a f t e r due c o n s i d e r a t i o n of the p a r t i c u l a r rewards which he expects w i l l be forthcoming, i t i s l i k e l y that the value of t h i s p a r t i c u l a r reward to t h i s p a r t i c u l a r i n d i v i d u a l i s of a p o s i t i v e nature and can be expected upon r e c e i p t to give the i n d i v i d u a l i n question s a t i s f a c t i o n i n terms of h i s personal m o t i v a t i o n a l f u e l . Subsequent to the development by the o r g a n i z a t i o n a l entrepreneur of those 120. expectations d e l i n e a t e d above, i t i s proposed here that t h i s i n d i v i d u a l derives a s o r t of 'pre-performance s a t i s f a c t i o n . ' This s a t i s f a c t i o n i s of course not r e a l i n the sense that i t i s based on the a c t u a l r e c e i p t of rewards or a c t u a l movement along the i n d i v i d u a l ' s goal continuum. However, because of i t , the o r g a n i z a t i o n a l entrepreneur a p p l i e s to the s i t u a t i o n those dynamic a c c e l e r a t o r s over which he has c o n t r o l and which ipso f a c t o make h i s expectations a r e a l i t y . 45 In a study done by Lyman Porter and Edward Lawler of job p e r f o r -mance and a t t i t u d e s , i t was found that managers ranking high i n p e r f o r -mance reported s i g n i f i c a n t l y greater job s a t i s f a c t i o n than d i d low ranking managers. Furthermore, i t was found that the greater s a t i s f a c t i o n o f the best performing managers could be traced to the greater o p p o r t u n i t i e s given them to express autonomy and o b t a i n s e l f - r e a l i z a t i o n . These f i n d i n g s lend support to the p r o p o s i t i o n s set forward i n t h i s s e c t i o n i n that they point out a s i g n i f i c a n t r e l a t i o n s h i p between the presence i n a job s i t u a t i o n of others-given dynamic a c c e l e r a t o r s and b e t t e r job performance. Porter and Lawler could not f i n d any d i f f e r e n c e i n the type of e x t r i n s i c rewards promised or e v e n t u a l l y given to the b e t t e r performing managers, and thus i t could be concluded that i t was the perception by these managers of greater opportunity to r e c e i v e rewards, and the greater a p p r e c i a t i o n of the a n t i c i p a t e d rewards which made the d i f f e r e n c e i n the performance of these i n d i v i d u a l s which would r e s u l t not only i n more rewards but a l s o i n even more opportunity to be top achievers i n the 46 o r g a n i z a t i o n . Before l e a v i n g t h i s s e c t i o n i t i s important that the f i n a l step i n the c y c l e of d r i v e a c c e l e r a t i o n be discussed i n s l i g h t l y more d e t a i l . This step i s of course, feedback.. A s r i n the case of the t r a d i t i o n a l 121. independent entrepreneur, i t i s feedback which r e a f f i r m s the perception by the o r g a n i z a t i o n a l entrepreneur of a d i r e c t r e l a t i o n s h i p between h i s achievements f o r the e n t e r p r i s e (the success of the e n t e r p r i s e ) and the attainment of h i s personal goals (advancement along an open-ended goal continuum). Feedback i s at one and the same time, a measure of t h i s i n d i v i d u a l ' s success or f a i l u r e i n h i s e f f o r t s f o r the o r g a n i z a t i o n , and a measure of h i s success or f a i l u r e to r e c e i v e from an o r g a n i z a t i o n a l s i t u a t i o n those r e s u l t s which s a t i s f y h i s needs and d e s i r e s . U n l i k e the t r a d i t i o n a l independent entrepreneur, the o r g a n i z a t i o n a l entrepreneur t r u s t s the corporate system to d i s t r i b u t e j u s t and appropriate rewards. However, as stat e d p r e v i o u s l y , i f t h i s t r u s t i s not f u l f i l l e d ; t hat i s to say, the rewards that are forthcoming are not appropriate or s a t i s f y i n g i n the es t i m a t i o n of t h i s o r g a n i z a t i o n a l entrepreneur, then he w i l l q u i t the o r g a n i z a t i o n . The e n t r e p r e n e u r i a l type i n the large business organi-z a t i o n uses the feedback to give h i m s e l f some i n d i c a t i o n of (1) how he has achieved f o r the o r g a n i z a t i o n by i t s standards, and more p a r t i c u l a r l y , (2) how he has achieved according to h i s own standards and expectations as w e l l as (3) how h i s performance was judged r e l a t i v e to the performance 47 of h i s colleagues. He i s an ego - c e n t r i c but he w i l l work d i l i g e n t l y f o r the o r g a n i z a t i o n a l goals as long as the o r g a n i z a t i o n provides him w i t h the t o o l s over which i t has c o n t r o l , and provides him w i t h the feedback which he r e q u i r e s . Commitment The i n c r e a s i n g trend toward greater m o b i l i t y i n management ranks i n recent years can e a s i l y be i n t e r p r e t e d as being i n d i c a t i v e of weakening corporate l o y a l t i e s or a decrease i n the l e v e l of management commitment 122. 48 to the business o r g a n i z a t i o n . Quoting from Time Magazine, "Dr. Edgar Schein of the M.I.T. Sloan School of Management estimates that companies l o s e h a l f of t h e i r c o l l e g e graduates w i t h i n the f i r s t three to f i v e years of employment. Graduates of f i f t e e n years ago o f t e n regarded a j o b , l i k e a marriage, as being f o r l i f e ; todays young men are more i n c l i n e d to equate i t w i t h an a f f a i r - - g o o d u n t i l something more f e t c h i n g 49 comes along." The preceding quote g e n e r a l l y sums up the a t t i t u d e toward commitment t y p i c a l of the o r g a n i z a t i o n a l entrepreneur as described by t h i s t h e s i s , and i t i s not coincidence that the a t t i t u d e mentioned above i s s t r o n g l y reminiscent of the ' t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s ' described i n chapter I I I n the s e c t i o n on the commitment of the t r a d i t i o n a l independent entrepreneur. In the preceding s e c t i o n i t was shown that the o r g a n i z a t i o n a l entre-preneur i s v i t a l l y concerned w i t h those aspects of h i s o r g a n i z a t i o n a l s i t u a t i o n determining h i s dynamic and opportunity f o r impact, as w e l l as h i s a b i l i t y to glean s a t i s f a c t i o n of h i s own d e s i r e s through h i s achievements f o r the o r g a n i z a t i o n . Furthermore, were i t not f o r the f a c t that he would probably have to decrease h i s s c a l e of o p e r a t i o n s , the o r g a n i z a t i o n a l entrepreneur would i n a l l l i k e l i h o o d be i n business f o r h i m s e l f . However, the f a c t remains that even though he i s a freedom l o v i n g , i n d i v i d u a l i s t i c , and g e n e r a l l y ego-centric type of a person, he i s by d e f i n i t i o n i n the employ of a business o r g a n i z a t i o n which i s not under h i s personal ownership c o n t r o l . In f a c t , i n h i s study of the young exec u t i v e , Guzzardi found t h a t , "predominant i n h i s ephemeral and s h i f t i n g r e l a t i o n s h i p w i t h h i s company i s h i s c o n v i c t i o n that he can express him-49 s e l f as a f r e e man through the o r g a n i z a t i o n . I f t h i s were not so, and the o r g a n i z a t i o n d i d not provide t h i s e n t r e p r e n e u r i a l type i n d i v i d u a l 123. w i t h the working environment which conformed to h i s formula f o r the attainment of h i s a s p i r a t i o n a l dynamic, then he would e i t h e r (A) r e s i s t the r e s t r i c t i v e elements wherever he could, (B) leave the o r g a n i z a t i o n f o r another more s u i t a b l e to h i s demands and expectations, or (C) s t a r t h i s own business. In order f o r the o r g a n i z a t i o n a l entre-preneur to f u n c t i o n as the dynamic i n d i v i d u a l which he i s p o t e n t i a l l y , and i n order to perpetuate the output of s e l f - g i v e n dynamic a c c e l e r a t o r s which i s i n f a c t h i s greatest asset, i t i s necessary that the o r g a n i z a t i o n come up to h i s standards concerning h i s expectations of the co n d i t i o n s which he r e q u i r e s to a t t a i n h i s a s p i r a t i o n a l dynamic. I f these standards are not met and h i s expectations are disapp o i n t e d , then upon d e t e c t i o n , he w i l l sever t h i s or any r e l a t i o n s h i p which f r u s t r a t e s h i s dynamic. Just as w i t h the t r a d i t i o n a l independent entrepreneur, the only hold any r e l a t i o n s h i p has on the o r g a n i z a t i o n a l entrepreneur are those elements of the r e l a t i o n s h i p which are perceived by him as c o n t r i b u t i n g to h i s advancement along h i s open-ended goal continuum. I t should be evident at t h i s point that the o r g a n i z a t i o n a l entre-preneur has a matured grasp of what was designated i n chapter I I as the ' t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s . ' In f a c t i t i s even p o s s i b l e that t h i s mode of behavior i s learned even deeper by the organi-z a t i o n a l entrepreneur than i t was by^jthe t r a d i t i o n a l independent entre-preneur. He perceives the business o r g a n i z a t i o n as a v e h i c l e ; a combina-t i o n of resources which he may employ to h i s own advantage. He i s ever cognizant of the f a c t that the o r g a n i z a t i o n may possess c h a r a c t e r i s t i c s which may consume h i s i n d i v i d u a l i s t i c tendencies to any degree which he al l o w s . I t i s easy to as s e r t that an i n d i v i d u a l need not submit to the c o l l e c t i v i z i n g forces present i n the large o r g a n i z a t i o n . However, the 124. f a c t remains that most w i l l submit because i t gives them a s e c u r i t y which i s u n a t t a i n a b l e elsewhere. I t takes an e x c e p t i o n a l man to withstand the onslaught of these forces and the o r g a n i z a t i o n a l entrepreneur i s such a man. He i s a t r i e d and true p r a c t i t i o n e r of the ' t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s . ' In the business environment no r e l a t i o n s h i p c a r r i e d the o b l i g a t i o n s f o r c o n t i n u i n g commitment and only r e l a t i o n s h i p s which are mutually b e n e f i c i a l are to be entered i n t o at a l l . He i s concerned w i t h h i s dynamic and he i s concerned w i t h h i s m o b i l i t y . I n view of t h i s concern, he devotes h i s utmost energies to a r e l a t i o n s h i p i n which the c o n d i t i o n of mutual b e n e f i t p r e v a i l s , but he e a s i l y severs any r e l a t i o n s h i p c o n t a i n i n g elements which f r u s t r a t e e i t h e r h i s dynamic, h i s m o b i l i t y , or more g e n e r a l l y h i s advancement along h i s personal goal continuum. I t i s i n the above manner that the o r g a n i z a t i o n a l entrepreneur approaches h i s r e l a t i o n s h i p w i t h the large business o r g a n i z a t i o n . To quote v a r i o u s l y from Guzzardi concerning the young executive and h i s r e l a t i o n s h i p w i t h the business o r g a n i z a t i o n , "Their l o y a l t y they keep l a r g e l y f o r themselves. But they are able to do t h i s and s t i l l g i v e a very large segment of themselves to t h e i r company....While they are i n a company's employ, they assent to i t s fundamental purposes and i t s o b j e c t i v e s . That assent, however, i s f a r d i f f e r e n t from the dependence and submission that i n the past has been popularized as t y p i c a l . The t e r r i b l e temper of these men--their angry k i n d of confidence, t h e i r r e l e n t l e s s i n s i s t e n c e on t h e i r own c a p a c i t i e s , t h e i r u n r e m i t t i n g shove toward"achievement--makes subservience impossible.... In r e t u r n f o r that segment of themselves that they give the young executives demand a l o t . T h e i r a l l e g i a n c e to t h e i r company i s c u r i o u s , complex, and c o n d i t i o n a l . . . . When they are dissappointed i n t h e i r expectations of the way they should 125. be rewarded--with money and, more important to them, w i t h "more challenge and more r e s p o n s i b i l i t y " - - t h e y terminate t h e i r r e l a t i o n s w i t h t h e i r company q u i c k l y and finally.""'''' As can be r e a d i l y derived from the above quotes f o r comparison w i t h the proposals set f o r t h i n chapter I I w i t h regard to the a t t i t u d e of the t r a d i t i o n a l independent entrepreneur toward commitment, the e n t r e p r e n e u r i a l type i n the la r g e o r g a n i z a t i o n , which according to t h i s t h e s i s i s what Guzzardi i s r e a l l y d e s c r i b i n g , i s every b i t as k i n e t i c a l l y i n d i v i d u a l i s t i c as the independent entrepreneur. In f a c t , by not only s u r v i v i n g , but t h r i v i n g i n the p o t e n t i a l l y consuming environment of the la r g e s c a l e business o r g a n i z a t i o n , the o r g a n i z a t i o n a l entrepreneur demonstrates an even greater mastery of the ' t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s ' than the independent entrepreneur who may have chosen not to face t h i s challenge. I t i s not to be assumed that the o r g a n i z a t i o n a l entrepreneur must at a l l times have every d e t a i l of a s i t u a t i o n j u s t as h i s perception of an i d e a l r e l a t i o n s h i p would d i c t a t e , and that i f t h i s i s not the case he w i l l w i t h r e c k l e s s abandon terminate t h i s r e l a t i o n s h i p . On the con-t r a r y , he approaches h i s use of the o r g a n i z a t i o n as a v e h i c l e , r e s p o n s i b l y , r a t i o n a l l y and o b j e c t i v e l y ; j u s t as he would any other business problem. He considers that an important part of h i s use of the o r g a n i z a t i o n i s h i s employment of i t s resources to educate h i m s e l f and f u r t h e r h i s business acumen. In some in s t a n c e s , t h e r e f o r e , he may have to accept a temporarily non-dynamic l e a r n i n g status i n the o r g a n i z a t i o n . This he may do w i l l i n g l y r e a l i z i n g that even though to the observer i t may appear to be back-stepping i n terms of h i s present dynamic, i t i s productive or progressive i n terms of h i s o r g a n i z a t i o n a l impact and the attainment of h i s open-ended goals i n the long run. The observation of t h i s i n d i v i d u a l maintaining t h i s 126. l e a r n i n g status i n an o r g a n i z a t i o n may e a s i l y r e s u l t i n h i s being branded as a s o - c a l l e d ' o r g a n i z a t i o n man.' However, i t i s a very d i f f i c u l t p r o p o s i t i o n to accept that because a person uses the f u l l f a c i l i t i e s of h i s v e h i c l e (the o r g a n i z a t i o n ) to increase h i s q u a l i t y as a human asset w i t h i n or without the o r g a n i z a t i o n , that he i s securely commited to t h i s v e h i c l e . In f a c t as w i l l become more evident i n the s e c t i o n on ' m o b i l i t y ' the f a c t that the o r g a n i z a t i o n a l entrepreneur has the a b i l i t y to use h i s v e h i c l e to the f u l l e s t increases r a t h e r than decreases h i s commitment i n d i r e c t l y , because i t increases h i s m o b i l i t y . I t may be thought that the lack of commitment on the part of the o r g a n i z a t i o n a l entrepreneur and the ease w i t h which he may 'move on' may be d e s t r u c t i v e to an o r g a n i z a t i o n i n that he would not put up w i t h the t y p i c a l d e c i s i o n making mechanisms i n the average o r g a n i z a t i o n . This i s not n e c e s s a r i l y so. Objective processes of d i s s e n t and decision-making i n an o r g a n i z a t i o n serve to provide the o r g a n i z a t i o n w i t h a f u n c t i o n a l tenseness. Combined w i t h high achievement or performance demands, t h i s tenseness serves to s t i m u l a t e the d r i v e of the e n t r e p r e n e u r i a l type. The competition i s made keener and the rewards are., t h e r e f o r e , p o t e n t i a l l y more s a t i s f y i n g when they are a t t a i n e d . In a d d i t i o n , they are played f o r w i t h r u l e s or demands f o r performance which he understands. From h i s viewpoint i t f u r t h e r s h i s opportunity f o r impact and the s a t i s f a c t i o n therefrom. As a pragmatist he s t r i v e s f o r o b j e c t i v e r e s u l t s and meaningful d i f f e r e n c e s i n performance. A tense o r g a n i z a t i o n t h e o r e t i c a l l y appreciates these same standards. The o r g a n i z a t i o n a l entrepreneur bases h i s demands f o r 'dynamic a c c e l e r a t o r s and other rewards on demonstrated worth and competent performance. In the o r g a n i z a t i o n a l environment he competes fo r these a c c e l e r a t o r s and other rewards. Therefore, a tense competition 127. and a strong hold on these t o o l s and rewards i s not only acceptable to the o r g a n i z a t i o n a l entrepreneur but i t serves to s t i m u l a t e h i s d r i v e f o r t h e i r a c q u i s i t i o n . However, when he does prove"his worth, he demands that the o r g a n i z a t i o n loosen up to the extent that they provide him w i t h a few s t r i n g s to p u l l i n the t i g h t l y bound o r g a n i z a t i o n and f o l l o w through w i t h feedback i n the d e s i r e d form. I f they do not, they w i l l have dissappointed and subsequently l o s t one o r g a n i z a t i o n a l entrepreneur. O r g a n i z a t i o n a l E n t r e p r e n e u r i a l Motives Although at t h i s p o i n t i t i s obvious that the motives of the o r g a n i z a t i o n a l entrepreneur w i l l be c l o s e l y a l l i g n e d w i t h the motives of the t r a d i t i o n a l independent entrepreneur as described i n chapter I I , i t would perhaps be advantageous to deal p a r t i c u l a r l y w i t h the motives of t h i s e n t r e p r e n e u r i a l type i n d i v i d u a l . The o r g a n i z a t i o n a l entrepreneur has been presented as being: (1) a f i e r c e l y competitive i n d i v i d u a l ; (2) a s e l f - c o n f i d e n t i n d i v i d u a l who places a high premium on the con-t r i b u t i o n that h i s s k i l l and e f f o r t w i l l make to the success of h i s undertakings; (3) an i n d i v i d u a l who a f t e r f u l l e v a l u a t i o n of a s i t u a t i o n from the poin t of view of others-given dynamic a c c e l e r a t o r s and rewards, a p p l i e s h i m s e l f ( s e l f - g i v e n dynamic a c c e l e r a t o r s ) wholeheartedly to the s i t u a t i o n because i n view of h i s e v a l u a t i o n c r i t e r i a , to do otherwise would be s e l f - d e p r i v a t i o n w i t h regard to h i s personal a c t u a l i z a t i o n . In view of these personal c h a r a c t e r i s t i c s i t i s to be expected that t h i s i n d i v i d u a l would value rewards or feedback such as, promotion, money, 128. a u t h o r i t y , s t a t u s , r e c o g n i t i o n , r e s p o n s i b i l i t y , challenge, e t c . , because of t h e i r s i g n i f i c a n c e as a r e l a t i v e measurement device between h i s achievement and that of h i s colleagues. In f a c t , t h i s was e x a c t l y what 53 Guzzardi found i n h i s study. I t i s d i f f i c u l t to say e x a c t l y what rewards or feedback devices have the greatest i n f l u e n c e on the behavior of the o r g a n i z a t i o n a l entre-preneur because of t h e i r b a s i c interdependency, or at l e a s t the expecta-t i o n s of t h e i r interdependency. For ins t a n c e , i t i s l o g i c a l that the managerial employee i n an o r g a n i z a t i o n can expect increased f i n a n c i a l remuneration from a promotion. Greater status can be expected to accom-pany the promotion, and p o s s i b l y even the things that the increased wealth can buy may a f f o r d the i n d i v i d u a l more status outside the o r g a n i z a t i o n . Any reward given i s of course a symbol of r e c o g n i t i o n , and c e r t a i n l y r e c o g n i t i o n i n the form of more a u t h o r i t y , more r e s p o n s i b i l i t y , and greater challenge i l l u s t r a t e s how interdependence a r i s e s out of f u n c t i o n a l n e c e s s i t y . These rewards are not mot i v a t o r s , but i n that they are a measure of achievement, they act as s t i m u l i . I t i s the d e s i r e to achieve which motivates the o r g a n i z a t i o n a l entrepreneur. I t i s the d e s i r e to advance along an open-ended goal continuum which makes 54 the o r g a n i z a t i o n a l entrepreneur want to perform. I t should not be i n f e r r e d from what was proposed above that the p a r t i c u l a r s t i m u l i are not important to the performance of the entre-p r e n e u r i a l type i n the o r g a n i z a t i o n a l s i t u a t i o n . On the co n t r a r y , they are very instrumental i n perpetuating h i s perseverence, d i l i g e n c e , and l o y a l t y . The o r g a n i z a t i o n a l entrepreneur's goal continuum i s an achievement continuum but the increments on t h i s continuum are.set.not' 129. only i n terms of achievement but r a t h e r achievement i n a p a r t i c u l a r form(s). For i n s t a n c e , i t may be money-achievement, power-achievement, s t a t u s -achievement, e t c . The o r g a n i z a t i o n a l entrepreneur i s a s e l f - a c t u a l i z i n g man and thus by d e f i n i t i o n he d e s i r e s to become a c t u a l i z e d i n what he f e e l s he can or must be p o t e n t i a l l y . An i n d i v i d u a l cannot be achievement per se. He can however, be r i c h , powerful, high s t a t u s - w i s e , e t c . For t h i s reason the s t i m u l i are important, and i f the o r g a n i z a t i o n d e s i r e s to perpetuate the e f f o r t s and performance of the o r g a n i z a t i o n a l entre-preneur, they should expend every e f f o r t themselves to f i n d out what p a r t i c u l a r s t i m u l i i s important to the i n d i v i d u a l i n question. As noted i n the s e c t i o n on r e s p o n s i b i l i t y , c o n t r o l and feedback, c e r t a i n s t i m u l i (others-given dynamic a c c e l e r a t o r s ) must be n e c e s s a r i l y provided to make the o r g a n i z a t i o n a l entrepreneur f e e l that he can achieve or that he has the t o o l s to achieve f o r the company. In a d d i t i o n , c e r t a i n s t i m u l i (rewards and other feedback) must be n e c e s s a r i l y provided so that the o r g a n i z a t i o n a l entrepreneur f e e l s that he has p e r s o n a l l y achieved i n terms of h i s own goals from h i s achievements f o r the o r g a n i z a t i o n . I t i s up to the company to provide these s t i m u l i , both i n the c o r r e c t terms and i n the c o r r e c t amounts. As i n the instance of the t r a d i t i o n a l independent entrepreneur, the motivating f o r c e ( d e s i r e to achieve) behind the performance of the o r g a n i z a t i o n a l entrepreneur i s something that cannot be a r t i f i c i a l l y created i n an i n d i v i d u a l by the o r g a n i z a t i o n . While i t i s easy to confuse the o f f e r i n g of i n c e n t i v e s to i n d i v i d u a l s , thereby making them perform b e t t e r or achieve more f o r the o r g a n i z a t i o n , w i t h the c r e a t i o n of the d e s i r e to achieve; i n r e a l i t y i t i s not. The need to achieve i n the o r g a n i z a t i o n a l entrepreneur i s a product of h i s formative years, although 130. there i s some question as to whether these formative years are ever 56 ended. This need may be nutured but not created. This need i n i t s t r u e form makes an i n d i v i d u a l perform to h i s utmost not because of incen-t i v e s , but r a t h e r under c e r t a i n c o n d i t i o n s . The achievement motivated person, and more p a r t i c u l a r l y the o r g a n i z a t i o n a l entrepreneur, once having e s t a b l i s h e d the co n d i t i o n s under which he f e e l s h i s performance i s warranted, w i l l perform i n one way; to h i s optimum c a p a b i l i t y . In t h i s sense, the rewards and feedback which were formerly presented as s t i m u l i are i n essence not only s t i m u l i , but a l s o j u s t i f i e r s w i t h respect to the i n d i v i d u a l ' s o r i g i n a l d e c i s i o n to perform. Achievement i s a dynamic concept. I t connotes movement. The d e s i r e to achieve causes movement. A c t u a l achievement r e s u l t s i n move-ment w i t h regard to advancement along a goal continuum. In a d d i t i o n , achievement f o r the o r g a n i z a t i o n a l entrepreneur gives him the a b i l i t y to move. I t gives him m o b i l i t y . In the f o l l o w i n g s e c t i o n the o r g a n i z a t i o n a l entrepreneur w i l l be looked at from the viewpoint of the concept of ' m o b i l i t y . ' M o b i l i t y M o b i l i t y may be defined as, "the readiness or a b i l i t y to move or be m o v e d . A l m o s t every c h a r a c t e r i s t i c of the o r g a n i z a t i o n a l entre-preneur r e l e v a n t to h i s behavior i n the o r g a n i z a t i o n i s r e l a t e d to some aspect of m o b i l i t y . For instance, as a g e n e r a l i z a t i o n : (1) Consider the o r g a n i z a t i o n a l entrepreneur's a t t i t u d e toward r i s k . He i s a r i s k - t a k e r r a t h e r than a r i s k - a v e r t o r and a decision-maker r a t h e r than a d e c i s i o n - a v o i d e r due to h i s concern over h i s dynamic"? and impact i n the o r g a n i z a t i o n , h i s d e s i r e to move ahead r e l a t i v e 131. to h i s competitors w i t h i n and without the o r g a n i z a t i o n , and h i s concern over h i s movement along h i s achievement or goal continuum. Consider the o r g a n i z a t i o n a l entrepreneur's a t t i t u d e toward h i s output of energy and other s e l f - g i v e n dynamic a c c e l e r a t o r s . F i r s t l y , he i d e n t i f i e s w i t h those i n d i v i d u a l s who have the greatest observable dynamic i n the o r g a n i z a t i o n . Secondly, he a p p l i e s h i s energies and s k i l l s to the highest degree of which he i s capable so that i n g e n e r a l , he may achieve and advance i n the o r g a n i z a t i o n , and so that i n p a r t i c u l a r , he may take f u l l advantage of the d i r e c t i v e s a f f o r d i n g him the t o o l s f or advancement or he may earn promised t o o l s which would increase h i s a b i l i t y f o r i n t r a - f i r m upward m o b i l i t y . G e n e r a l l y , t h i s behavior i s the r e s u l t of h i s contem-p l a t i o n of the attainment of not only h i s a s p i r a t i o n a l dynamic but a l s o movement along h i s personal goal continuum. T h i r d l y , by the very output of s e l f - g i v e n dynamic a c c e l e r a t o r s he shows a d e s i r e or readiness to move. F o u r t h l y , he regards a l l business o r g a n i z a t i o n s as p o t e n t i a l v e h i c l e s which he may employ to achieve i n terms of h i s own goals . However, h i s use of these o r g a n i z a t i o n s or v e h i c l e s i s predicated on h i s m o b i l i t y between them which i s i n turn p r e d i c a t e d on the establishment by him of a m e r i t o r i o u s record of achievement w h i l e associated w i t h any p a r t i c u l a r one of them. Therefore, the o r g a n i z a t i o n a l entrepreneur's devotion of energy and other s e l f - g i v e n dynamic a c c e l e r a t o r s to achie v i n g i n p a r t i c u l a r firms i s . i n d i r e c t l y a devotion of energy to the a t t a i n -ment of i n t e r - f i r m m o b i l i t y . Consider the o r g a n i z a t i o n a l entrepreneur's a t t i t u d e toward respon-s i b i l i t y , c o n t r o l , challenge, feedback, and any other others-given 132. dynamic a c c e l e r a t o r s . His c o n s i d e r a t i o n of these f a c t o r s i s d i r e c t l y r e l a t e d to h i s dynamic, h i s opportunity f o r impact, and h i s achievement therefrom. Each r e f l e c t s some aspect of h i s a b i l i t y or readiness to move or be moved; be i t h i s freedom to d i r e c t the e f f o r t s of h i s own ideas, h i s opportunity to have a f o r c e f u l e f f e c t i n the o r g a n i z a t i o n , or the a b i l i t y to move upward w i t h i n the f i r m and forward on h i s goalr.continuum. (4) Consider the o r g a n i z a t i o n a l entrepreneur's a t t i t u d e toward commit-ment. His commitment to the o r g a n i z a t i o n i s e s s e n t i a l l y c o n d i t i o n a l on the p r o v i s i o n by the o r g a n i z a t i o n of the t o o l s that w i l l enhance h i s i n t r a - f i r m m o b i l i t y , and i r o n i c a l l y , a l s o h i s i n t e r - f i r m m o b i l i t y . I t i s important to note again that the i n t r a and i n t e r -f i r m m o b i l i t y of the o r g a n i z a t i o n a l entrepreneur i s perceived by him as having a d i r e c t r e l a t i o n to h i s movement along h i s open-ended goal continuum. (5) Consider the o r g a n i z a t i o n a l entrepreneur's b a s i c m o t i v a t i o n and the f u e l i n g of t h i s d r i v e . He i s motivated by the d e s i r e to advance or move forward on h i s achievement goal continuum. The s t i m u l i , which are both t o o l s and rewards, provide him w i t h the a b i l i t y to move or achieve a dynamic i n the o r g a n i z a t i o n , and al s o provide him w i t h an i n d i c a t i o n of h i s movement. The preceding examples suggest that perhaps cons i d e r a t i o n s of m o b i l i t y have played a s i g n i f i c a n t r o l e i n the e v o l u t i o n of the s o - c a l l e d entre-preneur. In a sense, m o b i l i t y appears as a s o r t of i n c l u s i v e d e s i g n a t i o n f o r a complex assortment of i n t e r i m or f a c i l i t a t i v e o b j e c t i v e s detectable i n the behavior patterns of the o r g a n i z a t i o n a l entrepreneur. As the r e s u l t of a r e c e n t l y concluded study of 1,500 managers i n 500 la r g e c o r p o r a t i o n s , 133. Professor Eugene E. Jennings developed a p r o f i l e of a manager whom he designated as a 'mobicentric. ' As d e s c r i b e d , t h i s contemporary executive: " i s a manager whose s t y l e i s predicated upon r a p i d movement from p o s i t i o n to p o s i t i o n , never expects to complete a j o b , i s prepared to depart as soon as he a r r i v e s , i s impatient i n doing the f i n a l stages of an assignment, i s preoccupied w i t h the m o b i l i t y of the people around him, i s quick to f e e l m i l d anxiety when he stays i n a job too long, r e j e c t s the b e l i e f that a person can move too f a s t , d e f i n i t e l y does not b e l i e v e that he has moved or i s moving too f a s t , r e f e r s h i m s e l f p s y c h o l o g i c a l l y to people s e v e r a l l e v e l s above him whouare f a s t c l i m b e r s , and tends to be somewhat a l o o f w i t h s u p e r i o r s who are slow c l i m b e r s , demands a great deal from subordinates, sees a d i r e c t r e l a t i o n s h i p between t h e i r e f f o r t s and h i s m o b i l i t y r a t e , tends to seek and accept assignments t h a t give him high v i s i b i l i t y . . . The m o b i l i t y - d i r e c t e d manager i s more i n t e r e s t e d i n h i s career than i n h i s c o r p o r a t i o n . He i s prepared to leave h i s c o r p o r a t i o n i f i t means he 59 can go higher or f a s t e r i n another." There i s observable i n Professor Jenning's p r o f i l e of the 'mobicentric, 1 c e r t a i n c h a r a c t e r i s t i c s which have h e r e t o f o r e been as c r i b e d to the e n t r e p r e n e u r i a l type both w i t h i n 60 and without the l a r g e s c a l e business o r g a n i z a t i o n . For i n s t a n c e , there i s observable: (1) a concern w i t h the attainment, r a t e , and l o s s of both h i s dynamic and impact i n and beyond a p a r t i c u l a r o r g a n i z a t i o n , (2) the f a c t that he has a high o p i n i o n of h i s p o t e n t i a l and t h e r e f o r e b e l i e v e s that he i s worthy of and d e s i r e s advancement at the f a s t e s t r a t e p o s s i b l e , (3) an i d e n t i f i c a t i o n w i t h an a s p i r e d - t o dynamic l e v e l , 134. (4) a concern w i t h r e l a t i v e achievement i n d i c a t i n g the p o s s i b i l i t y of a penchant f o r competition, (5) a quest f o r c h a l l e n g i n g s i t u a t i o n s promising achievement s a t i s f a c t i o n , (6) h i s use of the human resources of a f i r m as a v e h i c l e to f u r t h e r h i s own personal goal attainment,.and (7) a b a s i c achievement d r i v e and ego-centric character development manifesting themselves i n a low c o n d i t i o n a l commitment l e v e l ( t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s ) . I t i s perhaps not c o i n c i d e n t a l that the behavior of Jenning's mobicentric i s so reminiscent of the behavior of the e n t r e p r e n e u r i a l type as described i n t h i s t r e a t i s e . S t a t i s t i c a l l y Jennings found that s i n c e the end of the Korean war managerial turnover i n the o r g a n i z a t i o n s s t u d i e d had increased f i v e f o l d . A l s o , i n a back Lup study conducted by Fortune Magazine of some s i x t y r e p r e s e n t a t i v e c o r p o r a t i o n s , 57 percent reported that managerial turnover had r i s e n . Jennings describes t h i s apparent penchant f o r m o b i l i t y i n managerial personnel as 'endemic,' j u s t as the penchant f o r independence was p e c u l i a r to the t r a d i t i o n a l entre-preneur.- As a b a s i c o b s e r v a t i o n , i t could be noted that m o b i l i t y and independence are very much r e l a t e d i n themselves i n that each i s concerned w i t h the freedom, a b i l i t y , and readiness to move. Therefore, i t i s proposed here that i t i s the replacement of an outward concern w i t h complete independence, by a concern f o r m o b i l i t y , which c h a r a c t e r i z e s the e v o l u t i o n of the t r a d i t i o n a l independent entrepreneur to the organi-z a t i o n a l entrepreneur. A s u p e r f i c i a l view of the o r g a n i z a t i o n a l entrepreneur can be expected to y i e l d the view that i n h i s r o l e as an employee of a l a r g e business o r g a n i z a t i o n he has traded much of h i s independence and autonomy f o r a very nebulous 'something.' However, a more exa c t i n g i n v e s t i g a t i o n 135. may r e v e a l that the 'something' which c o n d i t i o n a l l y sealed the bargain i s the use f o r personal goal attainment of a c e r t a i n q u a n t i t y and q u a l i t y of human and non-human resources, and a l l f a c e t s of i n t r a - f i r m and i n t e r -f i r m m o b i l i t y which are earned by s u c c e s s f u l l y u s i n g the forementioned resources to the b e n e f i t of the o r g a n i z a t i o n i n question. Although the t r a d i t i o n a l independent entrepreneur was very s e l f - c o n f i d e n t and adept at the employment of the t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s , 61 he e i t h e r d i d not or could not j o i n an o r g a n i z a t i o n and face the threat that the demands f o r conformity, f e a l t y , and a l t r u i s t i c performance perceived as being inherent to o r g a n i z a t i o n l i f e , represented to him. From one viewpoint, he avoided the challenge to glean personal s a t i s -f a c t i o n from the o r g a n i z a t i o n a l way of l i f e . However, t h i s a s s e r t i o n of independence deprived him of the use of the resources of e x i s t i n g business o r g a n i z a t i o n s , and o f t e n deprived him of the use of resources from other sources. In any case, the most s a l i e n t feature of h i s behavior i s that the strength of h i s b e l i e f s regarding the consumptive aspects of the corporate o r g a n i z a t i o n a l environment was great enough to surpass the i n f l u e n c e of h i s s e l f - c o n f i d e n c e i n h i s a b i l i t i e s to use a s i t u a t i o n to h i s own best advantage. Although the o r g a n i z a t i o n a l entrepreneur does not a s s e r t h i s independence by avoiding any employment a f f i l i a t i o n w i t h a large business o r g a n i z a t i o n , h i s behavior i s nevertheless somewhat a l l i g n e d w i t h the behavior of the t r a d i t i o n a l independent entrepreneur as described above. He too de s i r e s not to have h i s i n d i v i d u a l i s t i c tendencies consumed by the o r g a n i z a t i o n , and demands that he r e c e i v e the b e n e f i t s of h i s e f f o r t s w h i l e employed i n the o r g a n i z a t i o n . However, c e r t a i n economic, demo-graphic and edu c a t i o n a l forces have apparently r e s u l t e d i n circumstances which perceived by the o r g a n i z a t i o n a l entrepreneur make him confident that he can ass e r t c e r t a i n performance aspects of h i s i n d i v i d u a l i s m and s u c c e s s f u l l y achieve i n the o r g a n i z a t i o n a l environment. This observation alone suggests that the o r g a n i z a t i o n a l entrepreneur: (1) Demonstrates a greater s e l f - c o n f i d e n c e than the t r a d i t i o n a l independent entrepreneur, w i t h the q u a l i f i c a t i o n that i t i s a confidence i n h i s a b i l i t y to overcome or r e s i s t the r e s t r i c t i v e elements of a r e l a t i o n s h i p that i f used i n the c o r r e c t manner could prove s a t i s f y i n g ; and (2) He demonstrates a maturity that i s not o f t e n a t t r i b u t e d to the t r a d i t i o n a l independent entrepreneur i n that he may acknowledge that freedom does not n e c e s s a r i l y mean the absence of a l l r e s t r i c -t i o n s but ra t h e r s u c c e s s f u l adjustment to them w i t h p a r t i c u l a r reference to r e a l i z i n g t h e i r worth to the wel f a r e of the organi-z a t i o n a l v e h i c l e and usin g them to glean greater achievement and s a t i s f a c t i o n i n the o r g a n i z a t i o n . I t may be advantageous i n the i n t e r e s t s of p r o v i d i n g a c l e a r e r p e r s p e c t i v e of the a t t i t u d e s of the o r g a n i z a t i o n a l entrepreneur toward the business environment and h i s place and behavior i n i t , to review g e n e r a l l y the forces r e f e r r e d to i n the preceding paragraph. The young o r g a n i z a t i o n a l entrepreneur grew up, recei v e d h i s education, and i s now working i n an age of unprecedented a f f l u e n c e and n a t i o n a l growth. C h a r a c t e r i z i n g h i s formative and working environment has been the l a r g e s c a l e o r g a n i z a t i o n , c o n s t a n t l y reminding through i t s successes of the advantages of massive resource bases, economies of s c a l e , emphasis on technology, and the strength of planning, c o n t r o l , and o r g a n i z a t i o n a l u n i t y . The large s c a l e o r g a n i z a t i o n has proved i t s worth as a v e h i c l e 137. f o r n a t i o n a l economic progress. However, as a r e s u l t of the r a p i d growth of the large business o r g a n i z a t i o n s e c t o r , the low b i r t h r a t e s during the depression years, and the d r a i n of t a l e n t e d manpower i n t o other growing sectors such as government and teaching, there i s a great demand by these business o r g a n i z a t i o n s f o r able and ambitious manpower. The o r g a n i z a t i o n a l entrepreneur's a t t i t u d e s as described i n t h i s t r e a t i s e , a l l o w him to take f u l l advantage of t h i s s i t u a t i o n . For in s t a n c e , he i s part of a generation which takes u n i v e r s a l higher education f o r granted. He uses the educational system to q u a l i f y h i m s e l f to use the o r g a n i z a t i o n a l v e h i c l e , and then he uses the o r g a n i z a t i o n i t s e l f as an academy to supple-6 2 ment h i s s c h o o l i n g . He i s the product o f an upwardly mobile s o c i e t y . He does not seek s e c u r i t y because he does not value i t or need i t . He i s i n demand, and he doesn't expect that demand to d i m i n i s h g r e a t l y under any circumstances. He i s commited to self-development and s e l f - r e n e w a l . He uses the business o r g a n i z a t i o n as a ' l e v e r ' i n the processes of develop-ment and renewal. He demands from the c o r p o r a t i o n , "what the c o r p o r a t i o n 63 demands f o r i t s e l f : the r i g h t to maximum choice and m o b i l i t y . " He i s McGregor's s e l f - a c t u a l i z i n g man, and the circumstances are such that the world has opened up f o r h i s type of i n d i v i d u a l . He i s b e t t e r educated, has higher estimates of h i s own a b i l i t i e s , and has greater expectations of h i s o p p o r t u n i t i e s and rewards than h i s predecessors. He has seen the o r g a n i z a t i o n s consume h i s predecessors, and he sees the dangers j u s t as they probably d i d , although they could not or d i d not escape them. However, 'times have changed,' and so has the man. He does not y i e l d to the o r g a n i z a t i o n as does the 'organization man,' nor does he decl a r e h i s independence of the o r g a n i z a t i o n as does the t r a d i t i o n a l independent entrepreneur. The choice i s no longer two-sided. The 138. t a b l e s have turned and how he i s the demanded commodity, groomed and prepared to perform as a d v e r t i s e d . He w i l l give h i s ' a l l ' to an o r g a n i z a t i o n under the proper circumstances but when he has consumed a l l he can from the o r g a n i z a t i o n he w i l l move on to greener pastures. He i s the product of an a c h i e v i n g s o c i e t y ; made i n i t s own upwardly mobile image. M o b i l i t y i n the behavior of the o r g a n i z a t i o n a l entrepreneur i s a m u l t i - s i d e d concept. E a r l i e r i n t h i s s e c t i o n i t was noted as an i n c l u s i v e d e s i g n a t i o n f o r a complex assortment of i n t e r i m or f a c i l i t a t i v e o b j e c t i v e s detectable i n the behavior of the o r g a n i z a t i o n a l entrepreneur because of the d i s c e r n a b i l i t y of a concern f o r various aspects of movement i n h i s a t t i t u d e s toward r i s k , the output of s e l f - g i v e n dynamic a c c e l e r a t o r s , the input of others-given dynamic a c c e l e r a t o r s , commitment, and h i s b a s i c m o t i v a t i o n a l i n f l u e n c e . In the above in s t a n c e s , m o b i l i t y served e s s e n t i a l l y as a c r i t e r i o n of both the p r o b a b i l i t y of and the attainment of need 64 f u l f i l l m e n t . In a survey conducted by Fortune Magazine, the most common reasons given f o r r e s i g n a t i o n by managerial employees were: f a s t e r development (28 p e r c e n t ) , more a u t h o r i t y (26 p e r c e n t ) , more money (24''. p e r c e n t ) , b e t t e r use of t r a i n i n g (18 percent) , and change of l o c a t i o n (1.2 p e r c e n t ) . In one sense these general s t a t i s t i c s confirm what has been proposed thus f a r i n t h i s t h e s i s concerning movement at the executive l e v e l . However, from another p o i n t of view taken by 6 5 Professor Jennings, the f a c t that no p a r t i c u l a r motive stands out, 66 suggest that m o b i l i t y has become an end i n i t s e l f . To quote Fortune, " i t seems p o s s i b l e that i n many cases these motives are only the s h i f t i n g and changing f a c e t s of a l a r g e r f e e l i n g that t a k i n g on a new j o b , mastering i t , and moving on to another i s i t s e l f a hallmark of 139. success and growing competence." This suggestion i s well-founded as i t r e l a t e s to an achievement motivated i n d i v i d u a l and h i s behavior i n an environment c h a r a c t e r i z e d by many fac e t s of upward m o b i l i t y . I t stands to reason that an achievement motivated i n d i v i d u a l w i l l not stay i n a s i t u a t i o n from which he has derived a l l the achievement s a t i s f a c t i o n that i s p o s s i b l e , and i t i s l o g i c a l that he should move on to a s i t u a t i o n where he can make a renewed impact as f a r as both outward and inner achievement are concerned. Therefore, i t would seem that Professor Jenning's proposal i s a n a t u r a l c o n c l u s i o n as the r e s u l t of the observa-t i o n of the e n t r e p r e n e u r i a l type i n the l a r g e business o r g a n i z a t i o n as described i n t h i s t h e s i s . This s e c t i o n has been somewhat of a summary, b r i n g i n g together much of what was proposed i n t h i s t r e a t i s e w i t h respect to the t r a d i t i o n a l independent entrepreneur and the o r g a n i z a t i o n a l entrepreneur. To con-clude t h i s major s e c t i o n d e s c r i b i n g the o r g a n i z a t i o n a l entrepreneur, .-' E x h i b i t I I I - B compares various r e l e v a n t c h a r a c t e r i s t i c s of the independent entrepreneur and the o r g a n i z a t i o n a l entrepreneur, w i t h the purpose of the comparison being to i l l u s t r a t e by way of summary that the i n d i v i d u a l -i s t i c mode of behavior represented as ' e n t r e p r e n e u r i a l ' based on the examination of the t r a d i t i o n a l independent entrepreneur i n chapter I I , i s not destroyed by the la r g e business o r g a n i z a t i o n . In view of widely h e l d t r a d i t i o n a l b e l i e f s concerning the supposed consuming a f f e c t of various aspects of the l a r g e corporate environment on the i n d i v i d u a l , i t i s perhaps s u r p r i s i n g to f i n d such a strong s i m i l a r i t y i n the r e l e v a n t b e h a v i o r a l patterns of the t r a d i t i o n a l independent entreprenrur who i s considered the stronghold or the prime demonstrator of k i n e t i c i n d i v i d u a l i s m on the free e n t e r p r i s e business scene and the o r g a n i z a t i o n a l personage 140. who has been designated i n t h i s t r e a t i s e as an o r g a n i z a t i o n a l entre-preneur. The greatest d i f f e r e n c e which appeared from the a n a l y s i s of t h e i r r e s p e c t i v e behavior patterns was that based on h i s f e e l i n g s of confidence and independent s e l f - r e l i a n c e , the t r a d i t i o n a l independent entrepreneur chose to a t t a i n a dynamic s t a t e of achievement and s a t i s -f a c t i o n through self-employment, whereas based on h i s f e e l i n g s of con-fidence and dependent but non-committal s e l f - r e l i a n c e , the o r g a n i z a t i o n a l entrepreneur chose to a t t a i n a dynamic s t a t e of achievement and s a t i s -f a c t i o n through being employed by others. These men chose t h e i r courses of a c t i o n which were not d i r e c t l y enforced by the o b j e c t i v e data of the environment; but they chose from standpoints, views, and p r o p e n s i t i e s that d i d not form another set of independent data but were themselves molded by the o b j e c t i v e s e t . In other words, the t r a d i t i o n a l independent entrepreneur and the o r g a n i z a t i o n a l entrepreneur are both products of t h e i r environment but more so the products of t h e i r p e r c e p t i o n of t h e i r environment. The formative environments themselves from which economic, p o l i t i c a l , c u l t u r a l , and s o c i a l i n f l u e n c e s emanate, are c o n s t a n t l y e v o l v i n g at an i n c r e a s i n g r a t e . I t ther e f o r e stands to reason that the entrepreneur who i s a product of h i s environment should a l s o pass through some form of e v o l u t i o n . Furthermore i t i s reasonable to assume that e v o l u t i o n of the t r a d i t i o n a l independent entrepreneur under the same con d i t i o n s and c i r -cumstances which c o n t r i b u t e d to the present a t t a i n e d status of the business system^ 7 would r e s u l t i n the m a t e r i a l i z a t i o n of an e n t r e p r e n e u r i a l type such as the o r g a n i z a t i o n a l entrepreneur described i n t h i s s e c t i o n meeting the demands of the emerging business s t r u c t u r e , operations methodology, and e v o l u t i o n . From a b e h a v i o r a l viewpoint w i t h respect to the business s i t u a t i o n , the o r g a n i z a t i o n a l entrepreneur i s e s s e n t i a l l y the same type 141. of i n d i v i d u a l as the t r a d i t i o n a l independent entrepreneur except that because of h i s exposures to various p h y s i c a l and p s y c h o l o g i c a l manifesta-t i o n s of the e v o l u t i o n of the s o c i e t y i n which he l i v e s , he has or seems to have a t t a i n e d a higher developmental s t a t e of t r a n s a c t i o n a l acumen which from many viewpoints appears to r e f l e c t a more r e a l i s t i c perspec-t i v e o f , b e t t e r p r e p a r a t i o n f o r , and a more mature approach t o , the e x i s t i n g and f u t u r e s t a t e of the business environment. The attainment of t h i s s t a tus has allowed him to employ the l a r g e business o r g a n i z a t i o n to h i s best advantage w h i l e s t i l l r e t a i n i n g h i s i n d i v i d u a l i s t i c i d e n t i t y and s a t i s f y i n g h i s i n d i v i d u a l i s t i c and q u i t e independent needs and d e s i r e s . In c l o s i n g t h i s s e c t i o n , one point should be made before proceeding to the next s e c t i o n where the merits of the forementioned e v o l u t i o n willT. be discussed. The o r g a n i z a t i o n a l entrepreneur i n a p e r f e c t form i s a r a r e b i r d j u s t as i s the s u c c e s s f u l t r a d i t i o n a l independent entrepreneur. Most i n d i v i d u a l s employed i n l a r g e business o r g a n i z a t i o n s w i l l not be o r g a n i z a t i o n a l entrepreneurs, j u s t as most i n d i v i d u a l s would not be s u c c e s s f u l i f they ventured to an e n t e r p r i s e of t h e i r own. This non-attainment of o r g a n i z a t i o n a l e n t r e p r e n e u r i a l status or t r a d i t i o n a l independent e n t r e p r e n e u r i a l status i s as discussed i n t h i s t r e a t i s e based on such f a c t o r s as a b i l i t y , a t t i t u d e , o p p o r t u n i t y , moral f o r t i t u d e , e t c . However, i n that the entrepreneur i n both instances ( o r g a n i z a t i o n a l and independent) i s i n r e a l i t y a behavior mode, i t i s p o s s i b l e that c e r t a i n i n d i v i d u a l s may r e t a i n s e l e c t e d e n t r e p r e n e u r i a l c h a r a c t e r i s t i c s while never a t t a i n i n g f u l l e n t r e p r e n e u r i a l s t a t u s . The r e s u l t i n g behavior could be designated as ' e n t r e p r e n e u r i a l t y p e 1 behavior. The r e l a t i v e merits of developing t h i s type of behavior w i l l become more evident i n the f o l l o w i n g s e c t i o n , and i n the concluding chapter of t h i s t h e s i s , s e l e c t e d general EXHIBIT I I I - B COMPARATIVE OUTLINE OF THE BEHAVIOR AND ATTITUDES OF THE ORGANIZATIONAL ENTREPRENEUR AND THE TRADITIONAL INDEPENDENT ENTREPRENEUR Risk: The t r a d i t i o n a l independent entrepreneur can be c h a r a c t e r i z e d as a r i s k - t a k e r i n that he i s i n c l i n e d toward p o s i t i v e actions under conditions of u n c e r t a i n t y wherein l i e r e l a t i v e l y high p r o b a b i l i t i e s of loss and/or exposure to harm. This i n c l i n a t i o n toward p o s i t i v e a c t i o n i s the r e s u l t of h i s s e l f - c o n f i d e n c e and b e l i e f that the a p p l i c a t i o n of h i s s k i l l and e f f o r t w i l l make a d i f f e r e n c e i n the outcome of the r i s k - b e a r i n g s i t u a t i o n . His decisiveness per se i s p o s i t i v e l y r e l a t e d to h i s d e s i r e to achieve and h i s fear of the r e s u l t s of i n a c t i o n . The bas i c stakes r e l e -vant to h i s d e c i s i o n making behavior are the loss of the con d i t i o n s conducive to h i s achievement (his independence) and h i s achievement v e h i c l e (his b u s i n e s s ) , both of which he values f o r t h e i r v i t a l c o n t r i b u t i o n (as r e l a t e d to h i s dynamic and impact) to h i s achievement as an i n d i v i d u a l . Energy: The energy output of the t r a d i t i o n a l independent entrepreneur i s predicated on the perceived possession by him of r e s p o n s i b i l i t y f o r , c o n t r o l over, and a d i r e c t r e l a t i o n between a n t i -c i p a t e d personal reward or achievement and h i s own e f f o r t s i n , a cha l l e n g i n g and therefore p o t e n t i a l l y s a t i s f y i n g (from an achievement standpoint) s i t u a -t i o n . He i d e n t i f i e s with and s t r i v e s to behave commensurately with an a s p i r a t i o n peerage l e v e l , determined by h i s expectations of e n t r e p r e n e u r i a l success or more e x a c t l y , e n t r e p r e n e u r i a l dynamic. Risk: The o r g a n i z a t i o n a l entrepreneur can l i k e w i s e be c h a r a c t e r i z e d as a r i s k - t a k e r i n that he al s o i s i n c l i n e d toward p o s i t i v e a c t i o n under conditions of un c e r t a i n t y wherein l i e r e l a t i v e l y high p r o b a b i l i t i e s of loss and/or exposure to harm. His i n c l i n a t i o n toward p o s i t i v e a c t i o n i s the r e s u l t of h i s s e l f -confidence, h i s b e l i e f that the a p p l i c a t i o n of h i s s k i l l and e f f o r t w i l l make a d i f f e r e n c e i n the outcome of the s i t u a t i o n , and h i s confidence i n c e r t a i n non-personal decision-making t o o l s at h i s d i s p o s a l (the resources of the o r g a n i z a t i o n ) . His decisiveness per se i s p o s i t i v e l y r e l a t e d to h i s d e s i r e to achieve and his c o n s i d e r a t i o n of the non-plus aspects of i n a c t i o n . The stakes r e l e v a n t to h i s d e c i s i o n s are the p o s s i b l e loss of co n d i t i o n s i n the o r g a n i z a t i o n (others-given dynamic a c c e l e r a t o r s ) conducive to various aspects of hi s achievement and the loss of the o r g a n i z a t i o n i t s e l f as a v e h i c l e i n h i s o v e r a l l quest f o r personal achieve-ment . Energy: In the case of the o r g a n i z a t i o n a l entrepreneur, the output of s e l f - g i v e n dynamic a c c e l e r a t o r s (energy, s k i l l , etc.) i s p o s t i v e l y r e l a t e d to the presence i n the o r g a n i z a t i o n a l s i t u a t i o n of others-given dynamic a c c e l e r a t o r s ( r e s p o n s i b i l i t y , c o n t r o l , challenge and a d i r e c t r e l a t i o n between personal achievement and hi s e f f o r t s on behalf of the employing o r g a n i z a t i o n . He i d e n t i f i e s w i t h a superior executive l e v e l as .determined by h i s expectations of an a s p i r a t i o n a l dynamic. He derives s a t i s f a c t i o n from constant and co n s i s t e n t achievement as can be expected of an ,_, -p-His constant and consistent quest f o r renewed success, and h i s energy output i n general, can be d i r e c t l y r e l a t e d to h i s open-ended goal p e r s p e c t i v e . Advancement along h i s time-achievement-goal continuum i s the most prominent i n f l u e n c e behind h i s energetic behavior and maximum energy i s rendered i n the i n t e r e s t of a p o s i t i v e dynamic and success. R e s p o n s i b i l i t y , Control and Feedback: The t r a d i t i o n a l independent entrepreneur places prime importance on hi s a b i l i t y to derive a achievement s a t i s f a c t i o n from the success of h i s e n t e r p r i s e , and functions under the p r o p o s i t i o n that he i s d i r e c t l y responsible f o r the success of the e n t e r p r i s e because i t i s h i s s k i l l and e f f o r t which w i l l f o r the most part make h i s expectations of success a r e a l i t y i n a r i s k -bearing or ch a l l e n g i n g s i t u a t i o n . For t h i s p r o p o s i t i o n to be f u n c t i o n a l i n p o s i t i v e l y i n -f l u e n c i n g h i s energy output and commitment l e v e l , the s i t u a t i o n must appear c h a l l e n g i n g and/or p o t e n t i a l l y s a t i s f y i n g (from a long-range achieve-ment standpoint and he must perceive that he has u l t i m a t e c o n t r o l of the s i t u a t i o n . A maturing process w i l l reduce the entrepreneur's negative c o n s i d e r a t i o n of the b e n e f i t s that others may der i v e from h i s e f f o r t s , as long as h i s a b i l i t y to i n i t i a t e a c t i o n i n h i s e n t e r p r i s e , d i r e c t the operations of h i s e n t e r p r i s e , and achieve i n terms of advancement along h i s personal goal continuum are not threatened on a continuing or long run bas i s . i n d i v i d u a l w i t h an open-ended goal p e r s p e c t i v e . T o t a l l y committed to h i s effort-achievement perception he d i l i g e n t l y a p p l i e s the t o o l s over which he has c o n t r o l ( s e l f - g i v e n a c c e l e r a t o r s ) to earn the i n d u l -gence of the powers that be i n the o r g a n i z a t i o n w i t h respect to the c o n t r i b u t i o n demanded of them toward h i s s e l f - a c t u a l i z a t i o n . R e s p o n s i b i l i t y , C o n t r o l , and Feedback: The organi-z a t i o n a l entrepreneur places prime importance on h i s opportunity f o r impact i n the o r g a n i z a t i o n a l s i t u a t i o n This impact from which he expects to derive achieve-ment s a t i s f a c t i o n i s i n tu r n r e l a t e d to h i s dynamic. His o v e r a l l dynamic i s measured by the presence i n the o r g a n i z a t i o n a l s i t u a t i o n of others-given dynamic a c c e l e r a t o r s (the prime ones being r e s p o n s i b i l i t y , challenge, c o n t r o l , and feedback), plus h i s own output of s e l f - g i v e n dynamic a c c e l e r a t o r s as deter-mined ex post by h i s pre-performance expectations predicated on the adequacy of the forementioned others given dynamic a c c e l e r a t o r s ; Although b a s i c a l l y an eg o - c e n t r i c , he i s resigned to the p r o p o s i t i o n that he must achieve f o r the o r g a n i z a t i o n so that he may achieve f o r h i m s e l f ; but a c c o r d i n g l y , he demands feedback i n the form of rewards which give him achieve ment s a t i s f a c t i o n i n terms of h i s personal goals, punishment i n terms acceptable to him, or simply i n t e r i m information of progress, so that he may gauge h i s achievement both f o r the o r g a n i z a t i o n and for himself and thereby determine h i s f u t u r e energy output and commitment. Commitment: In accordance with the concept of a t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s , the t r a d i t i o n a l independent entrepreneur i s c o n d i t i o n -a l l y committed only to those r e l a t i o n s h i p s i n which he f e e l s he has a b e n e f i c i a l i n t e r e s t as determined by h i s judgment of t h e i r c o n t r i b u t i o n to h i s long run advancement along h i s goal con-tinuum. Since he perceives that the success of the venture and h i s own d e r i v a t i o n of achievement s a t i s f a c t i o n i s d i r e c t l y r e l a t e d to the a p p l i -c a t i o n of h i s energies and s k i l l s he w i l l t e r -minate any r e l a t i o n s h i p which threatens h i s achievement expectations by f r u s t r a t i n g h i s i n i t i a t i v e , c o n t r o l , and/or d e r i v a t i o n of required feedback. The a t t i t u d e toward commit-ment as described i s b e n e f i c i a l to the entre-preneur i n coping personally w i t h competitive r e l a t i o n s and dissappointments. Motives: The t r a d i t i o n a l independent entre-preneur i s motivated or 'made to want to move,' by the d e s i r e to advance along an open-ended time-achievement. The c r i t e r i a against which he measures h i s progress along t h i s continuum may be v a r i o u s l y ; wealth, s t a t u s , power, r e c o g n i t i o n , e t c . These c r i t e r i a serve most importantly as r e l a t i v e measures of h i s accom-plishments and the meeting of feedback expec-t a t i o n s on which he bases h i s energy output and commitment. Commitment: E f f e c t i v e use of the large s c a l e business as an achievement v e h i c l e r e q u i r e s that the organi-z a t i o n a l entrepreneur be an e x c e p t i o n a l l y adept p r a c t i t i o n e r of the t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s , i f i n the process he i s to r e t a i n h i s i n d i v i d u a l i s t i c tendencies. A c c o r d i n g l y , he i s c o n d i t i o n a l l y committed only to those r e l a t i o n s h i p s which c o n t r i b u t e to advancement along h i s open-ended goal continuum, and he w i l l terminate any r e l a t i o n s h i p which does not meet h i s expectations concerning h i s dynamic and opportunity f o r impact on a long range b a s i s . This a t t i t u d e toward commitment a s s i s t s the o r g a n i z a t i o n a l entrepreneur i n understanding and cope with the favorable and unfavorable aspects of an ob j e c t i v e competitive environment. Motives: The o r g a n i z a t i o n a l entrepreneur i s motivated by the dynamics of h i s movement along an open-ended goal or achievement continuum. The c r i t e r i a against which he measures h i s progress along t h i s continuum may be v a r i o u s l y ; wealth, promotion, s t a t u s , power, r e c o g n i t i o n , r e s p o n s i b i l i t y , challenge, e t c . These c r i t e r i a serve as an i n d i c a t i o n of h i s r e l a t i v e competitive accomplishment i n the o r g a n i z a t i o n a l environment, h i s achievement by h i s own standards, and as s t i m u l i and j u s t i f i e r s with regard to h i s output of s e l f - g i v e n dynamic a c c e l e r a t o r s and commitment. 145. methods and measn of developing the 'entrepreneurial type' behavior w i l l be presented. I I I . EVOLUTION OF THE ENTREPRENEUR ADVANTAGEOUS OR DETRIMENTAL? In the previous s e c t i o n i t ' was hypothesized that through the process of e v o l u t i o n , there has been an apparent resurgence of the e n t r e p r e n e u r i a l type i n a non-ownership r o l e i n the l a r g e business o r g a n i z a t i o n s which a r e i n c r e a s i n g l y c h a r a c t e r i s t i c of the business environment i n free e n t e r p r i s e western s o c i e t i e s . I t was not intended that there be any i m p l i c a t i o n that the o p p o r t u n i t i e s f o r independent e n t r e p r e n e u r i a l endeavor be a r t i f i c i a l l y l i m i t e d i n the economy f o r any reason, because i f the system i s to remain e s s e n t i a l l y f r e e , then the a l t e r n a t i v e open to each i n d i v i d u a l to attempt to i n i t i a t e and succeed i n h i s own e n t e r p r i s e must n e c e s s a r i l y be present regardless of the f e a s i b i l i t y or wisdom of the choice. However, i t i s p o s s i b l e that the e v o l u t i o n of the e n t r e p r e n e u r i a l type as described i n the previous s e c t i o n w i l l r e s u l t i n the n a t u r a l c u r t a i l m e n t of the f u t u r e development of t r a d i t i o n a l independent entre-preneurship. In a d d i t i o n , i t i s p o s s i b l e that t h i s occurrence would not be d e t r i m e n t a l to the f r e e e n t e r p r i s e system i n any way as long as the e n t r e p r e n e u r i a l type was s t i l l able to f l o u r i s h . Recent s p e c u l a t i o n suggests that we are at present and may always be l i v i n g i n a ' s c a r c i t y economy'; one that a l l o c a t e s i t s l i m i t e d resources e f f i c i e n t l y through the n a t u r a l feedback systems embodied i n 68 the p r o f i t motive and the market. The business o r g a n i z a t i o n i s a v i t a l part of t h i s process. In the words of Kenneth Andrews i n h i s d e s c r i p t i o n of business; " I t s purpose i n Western s o c i e t i e s - i s to produce and d i s t r i b u t e the i n t e r r e l a t e d products and s e r v i c e s comprising m a t e r i a l e x i s t e n c e , 146. making l i f e agreeable, and p e r m i t t i n g the p u r s u i t of non-material g o a l s . In i n d u s t r i a l l y developed c o u n t r i e s these a c t i v i t i e s m u l t i p l y , change, d i e out, and s p r i n g up i n an unstable complexity e f f e c t e d by entre-p r e n e u r i a l energy, developing technology, i n c r e a s i n g expectations of 69 m a t e r i a l w e l l - b e i n g , and i d e a l s of s o c i a l j u s t i c e . " The output of the business sector may be d i v i d e d i n t o two s e c t o r s — t h e production of goods (manufacturing, mining, farming, and c o n s t r u c t i o n ) and the p r o v i s i o n of s e r v i c e s (business and personal) . In i t s a c t i v i t i e s as a mechanism whereby l i m i t e d m a t e r i a l and non-material resources are transformed i n t o l i m i t e d q u a n t i t i e s of goods and s e r v i c e s and henceforth d i s t r i b u t e d i n the market, i t i s also an important user of resources. I f resources are i n f a c t l i m i t e d , and the o b j e c t i v e of the system as a whole i s to provide the greatest good or s a t i s f a c t i o n (as determined by the meeting of expec-t a t i o n s as to m a t e r i a l and non-material w e l l - b e i n g ) to the greatest number of i n d i v i d u a l s (based on e q u i t a b l e standards as determined by i d e a l s of s o c i a l j u s t i c e ) , then e f f i c i e n c y i n the use and d i s t r i b u t i o n of these resources and/or the product of these resources, i s a d e s i r a b l e standard. I t i s p o s s i b l e to deduce from the preceding reasoning that the f o r e -mentioned e f f i c i e n c y i s d i r e c t l y r e l a t e d to how technology i s developed and how e n t r e p r e n e u r i a l energy i s d i r e c t e d . The question i s t h e r e f o r e : Can the e n t r e p r e n e u r i a l type be more e f f i c i e n t , e f f e c t i v e , and productive i n the t r a d i t i o n a l independent r o l e or an o r g a n i z a t i o n a l r o l e ? I t i s not intended that the d i s c u s s i o n of t h i s question centre around the r e l a t i v e merits of the small and the large business e n t e r p r i s e , although when i t i s considered that f o r the most part the t r a d i t i o n a l e n t r e p r e n e u r i a l venture i s r e l a t i v e l y small at i t ' s i n c e p t i o n and that very few ever grow to the proportions of the s e l f - p e r p e t u a t i n g , widely 147. h e l d , large s c a l e business i n s t i t u t i o n s , then i t becomes evident that t h i s approach may deserve some c o n s i d e r a t i o n . Small businesses are customarily assumed to possess advantages i n r e l a t i o n to s i m p l i c i t y , e a s i e r i n t e r n a l communications, f l e x i b i l i t y , adaptiveness, e t c . ; a l l of which are c h a r a c t e r i s t i c s deemed to be b e n e f i c i a l i n an economy advancing through processes of constant i n n o v a t i o n , d i f f e r e n t i a t i o n , d i v e r s i f i c a t i o n , and o v e r a l l r a p i d change and renewal. However, from an e f f i c i e n c y standpoint the small f i r m may not be q u i t e so b e n e f i c i a l or appropriate as i t i s u s u a l l y considered to be. Table I I I - A i n d i c a t e s that by f a r the l a r g e s t p r o p o r t i o n of commercial f a i l u r e s occur i n the c l a s s i f i c a t i o n of the small business. I t was p r e v i o u s l y e s t a b l i s h e d i n chapter I I . (see Table II-B) that the m a j o r i t y of these f a i l u r e s could probably be a t t r i b u t e d to incompetence of inadequacies w i t h regard to experience on the part of the t r a d i t i o n a l independent entrepreneur who has been eulogized (perhaps wrongly) so o f t e n i n economic l i t e r a t u r e . These f i g u r e s suggest that i n s p i t e of the advantages of the small f i r m and i n s p i t e of v arious s o - c a l l e d strengths of the t r a d i t i o n a l independent entrepreneur, they were i n the cases t a b l e d , not adequate to counteract the lack of c a p a c i t y to meet the great range of e v e n t u a l i t i e s dependent on the possession of m a t e r i a l and non-material resources . In f a c t as noted i n chapter I I , i n many cases i t may have been due to c e r t a i n charac-t e r i s t i c s of the entrepreneur and h i s development that these resources were not a v a i l a b l e . I t may i n f a c t be p o s s i b l e that the business environ-ment i n general and business requirements i n p a r t i c u l a r are changing to the extent that the small business and the t r a d i t i o n a l independent entre-preneur are becoming obsolete from a competitive viewpoint, e s p e c i a l l y i n the goods production s e c t o r of the economy. 7^ Studies i n d i c a t e that the 148. large i n d u s t r i a l e n t e r p r i s e s are s t e a d i l y growing i n t h e i r share of business i n Western s o c i e t i e s . For i n s t a n c e , i n the United States f o r the year 1968, the f i v e hundred l a r g e s t i n d u s t r i a l f i r m s : (1) rangmp 64 percent of a l l i n d u s t r i a l sales (up from 62 percent i n 1967) , (2) employed 687 out of every 1,000 workers, and (3) accounted f o r 72 percent of a l l p r o f i t s (note...the f a c t that the percentage of p r o f i t s i s greater than the percentage of s a l e s i n d i c a t e s that not only i s the l a r g e f i r m a s u p e r i o r p r o f i t 'grabber' but a l s o a s u p e r i o r p r o f i t maker) In a d d i t i o n , other f i g u r e s suggest that the two hundred l a r g e s t companies i n the United Stated c o n t r o l l e d 58 percent of a l l manufacturing assets 72 i n 1968 (up from 48 percent i n 1948). I t i s p o s s i b l e to induce from the preceding examples that among other t h i n g s , the depth of m a t e r i a l and non-material resources, economies of s c a l e , r e l a t i v e high degree of i n t e r n a l d i v e r s i t y , not to mention the a c t i o n s and r e a c t i o n s of the markets themselves, have given the large business o r g a n i z a t i o n a competitive 73 edge over i t s smaller e n t r e p r e n e u r i a l counterparts. In as much as the i n a b i l i t y of the smaller firms to compete e i t h e r i n the resource market where they o b t a i n t h e i r goods and s e r v i c e s or i n the market where they s e l l t h e i r goods and s e r v i c e s , r e s u l t s i n the impeded development of the e n t e r p r i s e due to operations on an i n a p p r o p r i a t e s c a l e and/or the f a i l u r e of the e n t e r p r i s e based on the c r i t e r i a of r e l a t i v e p r o f i t a b i l i t y i n the economy, then the smaller f i r m i s i n e f f i c i e n t from the viewpoint of wasted time, energy, and resources. In a d d i t i o n , i t i s important to note that i f i n the case of the t r a d i t i o n a l independent entrepreneur i t i s h i s independent and autonomous nature that a l i e n a t e s him from advisory or other more m a t e r i a l resources which could a s s i s t h i s development and/or prevent h i s f a i l u r e , then from an e f f i c i e n c y standpoint he i s an 149. i n d i v i d u a l that a s o c i e t y , which must s t r i v e f o r e f f i c i e n c y i f i t i s to meet the o p t i m i s t i c p r o j e c t i o n s of i t s expansion and m a t e r i a l w e l f a r e , can s c a r c e l y r e l y on to c o n t r i b u t e to the attainment of the d e s i r e d standard. Few men can a f f o r d or are capable of a business l i f e of complete independence, and on the b a s i s of the reasoning above, s o c i e t y can i l l - a f f o r d to have them do so. I t i s not so much that the conception of an idea or even an i n v e n t i o n r e q u i r e s the resources of the large 74 o r g a n i z a t i o n , although as Jewkes et a l points out, nowadays resources to support the innovator come from large i n s t i t u t i o n s , even i f they are i n s t i t u t i o n s designed to protect the independence of the i n v e n t o r . I t i s r a t h e r i n the areas of the t e c h n i c a l and market development of these innovations that i n c r e a s i n g amounts of resources ( p a r t i c u l a r i l y f i n a n c i a l ) and w o r l d l y knowledge are required or are d e s i r a b l e . By way of i l l u s -t r a t i o n , consider that as one moves from i n v e n t i o n or b a s i c innovation on to and through the development stage, t e c h n i c a l c o n s i d e r a t i o n s g r a d u a l l y give way to market or economic c o n s i d e r a t i o n s . I t i s impossible to measure j u s t how much independent, i n v e n t i v e , or innovative genius has been wasted, or how many businesses have f a i l e d and more m a t e r i a l resources wasted, because of the shortage or inadequacy of m a t e r i a l and non-m a t e r i a l resources, the i n a b i l i t y to develop f u r t h e r because of the i n a b i l i t y to undertake the r i s k , or even proceeding w i t h the development without adequate c o n s i d e r a t i o n of the market i m p l i c a t i o n s . 7 ^ The question i s : Can s o c i e t y a f f o r d these i n e f f i c i e n c i e s , and moreover, should the r e s u l t i n g waste be incurred i n the name of f r e e e n t e r p r i s e and i n d i v i d u a l freedom i f there i s a f e a s i b l e a l t e r n a t i v e which i s not d e s t r u c t i v e to the d o c t r i n e of freedom? The a l t e r n a t i v e mentioned above i s of course the development of 150. the o r g a n i z a t i o n a l entrepreneur. I t i s l i k e l y that i n the f i n a l a n a l y s i s , the competitive pressures i n our economic system w i l l determine i f and how the e n t r e p r e n e u r i a l type w i l l play a s i g n i f i c a n t r o l e i n the e v o l v i n g business environment. I t i s very probable that the demands of continued economic growth w i l l put extreme pressure on the i n e f f i c i e n t process of t r a d i t i o n a l e n t r e p r e n e u r i a l development wherein many businesses are e s t a b l i s h e d , few s u r v i v e , r e l a t i v e economic growth i s gained from the e f f o r t s of the s u r v i v o r s , but vast amounts of resources, time, and energy are wasted through the c o l l e c t i v e i n e f f i c i e n c i e s of the process. I t was e s t a b l i s h e d i n the previous s e c t i o n o u t l i n i n g the behavior and a t t i t u d e s of the o r g a n i z a t i o n a l entrepreneur, that the e n t r e p r e n e u r i a l type could not only s u r v i v e i n the environment of the l a r g e s c a l e business o r g a n i z a t i o n , but that under c e r t a i n c o n d i t i o n s he could a t t a i n greater l e v e l s of achievement than i f he were i n business f o r h i m s e l f . The Western s o c i e t i e s w i t h which t h i s t h e s i s i s e s s e n t i a l l y concerned can be ch a r a c t e r i z e d as en t e r i n g a t e c h n o l o g i c a l and a n a l y t i c a l r e v o l u t i o n . The question i s t h e r e f o r e : Can the e n t r e p r e n e u r i a l type f i n d a place i n t h i s r e v o l u t i o n a r y environment and i f so how w i l l he be accommodated? Speculation based on apparent trends i n our s o c i e t y would i n d i c a t e that an i n c r e a s i n g need f o r the e n t r e p r e n e u r i a l type by the large business o r g a n i z a t i o n i n the emerging economic s t a t e w i l l a r i s e out of r a d i c a l l y new co n d i t i o n s w i t h i n and without the large c o r p o r a t i o n . As stat e d by Me l v i n Anshen, "the c r i t i c a l new c o n d i t i o n i s an a c c e l e r a t i o n i n the r a t e of change of such magnitude that change i t s e l f becomes the c e n t r a l object 76 of management a t t e n t i o n . " He f u r t h e r s t a t e s t h a t , "In t h i s emerging management world, what w i l l be the main task of management common to a l l types and s i z e s of companies? I suggest a combination of s p a t i a l and 151. temporal i n t e l l e c t u a l v i s i o n , w i t h the a b i l i t y to transform v i s i o n i n t o operating r e s u l t s through the f l e x i b l e a d m i n i s t r a t i o n of p h y s i c a l , human, and f i n a n c i a l resources i n any environment. This might be described as ap p l i e d c o n c e p t u a l i z a t i o n o r , more simply, as the management of i d e a s . " 7 7 To h i s way of t h i n k i n g , t h i s management of ideas would demand, " s p e c i a l i n t e l l e c t u a l a b i l i t y to v i s u a l i z e the t r a n s l a t i o n of ideas i n t o c o n t r o l l e d 78 operating systems responsive to dynamic change." Upon a n a l y s i s , the preceding statements, r e s p e c t i v e l y , o u t l i n e i n a general manner: (1) con d i t i o n s under which the e n t r e p r e n e u r i a l type, an i n d i v i d u a l r e c e p t i v e to a l t e r n a t e ways of a c t i n g , adaptive to change, and. dedicated to renewal on an expanding and changing information base, i s most c e r t a i n to f l o u r i s h ; (2) the performance of the funct i o n s of ob s e r v a t i o n , execution, and planning which the entrepreneur has n e c e s s a r i l y undertaken s i n c e the beginning of commercial e n t e r p r i s e , and funct i o n s which the o r g a n i z a t i o n a l entrepreneur s p e c i f i c a l l y and l a b o r i o u s l y prepares him s e l f to perform i n a changing environment; and (3) q u a l i t i e s which have been hypothesized as being c h a r a c t e r i s t i c a l l y possessed by the s u c c e s s f u l e n t r e p r e n e u r i a l type. Obviously, i f Anshen's p r e d i c t i o n s are accepted, then there w i l l d e f i n i t e l y be a place f o r the e n t r e p r e n e u r i a l type i n the emerging economic and s o c i o l o g i c a l environment. What he i s i n essence c a l l i n g f o r i s a c r e a t i v e response by a capable and c r e a t i v e responder, to tech-n o l o g i c a l and s o c i o l o g i c a l change, because of t e c h n o l o g i c a l and s o c i o l o g i c a l change. In a recent a r t i c l e by Robert F. V a n d e l l , he speculates that t e c h n o l o g i c a l change i n general and e l e c t r o n i c data processing i n par-t i c u l a r , are about to p r e c i p i t a t e a 'management r e v o l u t i o n , ' and that profound changes are imminent i n the economic environment. He a s s e t t s 152. t h a t , "over the next 10 to 15 years, new found o p p o r t u n i t i e s f o r r a p i d q u a n t i t a t i v e a n a l y s i s w i l l shorten the decision-making c y c l e and increase 79 the competitive demand f o r managerial e x c e l l e n c e . " He speculates that t e c h n o l o g i c a l e q u a l i z a t i o n w i t h respect to the use of e l e c t r o n i c data processing i n a n a l y s i s and decision-making w i l l again render ' a r t ' the c r i t i c a l element i n management s k i l l r a t h e r than ' s c i e n t i f i c method.' The computer i s e s s e n t i a l l y an i n f o r m a t i o n processor and not a c r e a t o r , and i n view of t h i s Vandell b e l i e v e s t h a t , "management tasks i n the f u t u r e w i l l s t i l l be handled by men. V i s i o n , c r e a t i v i t y , i n t u i t i v e h e u r i s t i c s k i l l s , l e a d e r s h i p , and so f o r t h , w i l l a l l be important i n the f u t u r e 80 of management." Of p a r t i c u l a r relevance to t h i s t r e a t i s e i s the composition of the managerial e x c e l l e n c e mentioned above. He g e n e r a l l y proposes that the new manager must n e c e s s a r i l y be an e f f e c t i v e , independent, r e s p o n s i b l e , ad hoc operator and decision-maker, able to f u n c t i o n under con d i t i o n s of extreme u n c e r t a i n t y r e s u l t i n g from the f l u i d i t y of the system. In a d d i t i o n , t h i s i n d i v i d u a l must be both i n c i s i v e and d e c i s i v e , able to make r a p i d , courageous, imaginative, but s t i l l r e a l i s t i c d e c i s i o n s , and have the s k i l l to implement h i s d e c i s i o n s . Whether Vandell r e a l i z e d i t or not, he was d e s c r i b i n g a need f o r the o r g a n i z a t i o n a l entrepreneur, and he even went so f a r as to s t a t e that the competitive edge i n the f u t u r e would f a l l to the companies which could preserve t h e i r maneuverability; d e c e n t r a l i z i n g and passing respon-s i b i l i t y and s t r a t e g i c c o n t r o l to lower l e v e l s i n the o r g a n i z a t i o n thereby a l l o w i n g freedom and e n t r e p r e n e u r i a l m o t i v a t i o n to f l o u r i s h at the lower o r g a n i z a t i o n a l l e v e l s . In other words, i f the modern c o r p o r a t i o n i s to remain f l e x i b l e , adaptive, and innovative i n i t s e f f o r t s to s u r v i v e the r i g o r s of the competitive environment, i t must develop an i n t r a - f i r m 153. environment which w i l l a t t r a c t and hold the competent, v e r s a t i l e , and adaptive a d m i n i s t r a t o r . The e n t r e p r e n e u r i a l type i n d i v i d u a l i s deemed to be an ad m i n i s t r a t o r of t h i s nature, and the d e c e n t r a l i z a t i o n and l o c a l i z e d management co n d i t i o n s p r e d i c t e d as being imminent by V a n d e l l , appear to be i d e a l from the viewpoint of those aspects of achievement 81 s a t i s f a c t i o n r e l a t e d to dynamic and opportunity f o r impact. I t i s i n t e r e s t i n g to speculate w i t h respect to the e f f e c t that Vandell's management r e v o l u t i o n w i l l have on the e n t r e p r e n e u r i a l type w i t h respect to h i s m o b i l i t y . In the previous s e c t i o n i t was proposed that the need f o r constant achievement and renewal caused the e n t r e p r e n e u r i a l type to employ i n t e r - f i r m m o b i l i t y to a t t a i n s i t u a t i o n a l challenges and renewed impetus i n h i s quest to achieve. His f l u i d i t y i n the business environment as a whole was due p r i n c i p a l l y to h i s competence, the shortage of i n d i v i d u a l s of h i s c a l i b r e , and the f a c t that the economy was so dynamic from the viewpoint of both change and expansion. I t i s l i k e l y that t h i s dynamism w i l l increase i n i t s pace and that the need fo r managerial t a l e n t p a r t i c u l a r l y of the e n t r e p r e n e u r i a l type w i l l a l s o grow commensurately. However, the autonomous nature of the l o c a l i z e d management s i t u a t i o n s and the v a r i e t y of r a p i d l y changing s i t u a t i o n a l circumstances which c h a r a c t e r i z e the o r g a n i z a t i o n a l niches may give the o r g a n i z a t i o n a l entrepreneur both the freedom he d e s i r e s to d i r e c t the e f f o r t s of h i s own Ideas and the s a t i s f a c t i o n of renewed challenges such that he no longer f e e l s he has to move from s i t u a t i o n to s i t u a t i o n i n 82 order to achieve the forementioned c o n d i t i o n s . In summary, i t may be advantageous to consider v a r i o u s general i m p l i c a t i o n s of the e v o l u t i o n of e n t r e p r e n e u r i a l v e n t u r i n g and a fu t u r e business environment c h a r a c t e r i z e d by large s c a l e o r g a n i z a t i o n s set up 154. on a c e n t r a l i z e d p o l i c y and o v e r a l l c o n t r o l b a s i s but being e f f e c t i v e l y operated and managed on a l o c a l i z e d p u l s e - f e e l i n g market b a s i s . F i r s t l y , and most important, the e n t r e p r e n e u r i a l type i n d i v i d u a l w i l l not be e l i m i n a t e d or even phased out of the economic scene. In f a c t , he w i l l continue to play a most v i t a l e n t r e p r e n e u r i a l r o l e i n an economic system which w i l l s t i l l be e s s e n t i a l l y dependent on h i s type of i n d i v i d u a l f o r i t s growth, s u r v i v a l , and m a t e r i a l w e l f a r e . Secondly, a s o c i a l system i n c r e a s i n g l y i n need of and n e c e s s a r i l y cognizant of e f f i c i e n c y i n the use and d i s t r i b u t i o n of scarce resources, w i l l , w h i l e reaping the b e n e f i t s of the c o n t r i b u t i o n s of the e n t r e p r e n e u r i a l type i n d i v i d u a l , e l i m i n a t e many of the i l l - a f f o r d e d i n e f f i c i e n c i e s a s s ociated w i t h t r a d i t i o n a l independent e n t r e p r e n e u r i a l development. The o r g a n i z a t i o n a l entrepreneur who i t i s proposed w i l l f o r the most part r e p l a c e the t r a d i t i o n a l independent entrepreneur, i s an environmental mutation of same, and through h i s behavior i n the large corporate environment, e n t r e p r e n e u r i a l energy and s k i l l w i l l be a p p l i e d under the c o n t r o l l i n g but not d e s t r u c t i v e i n f l u e n c e of various checks and balances designed to d i r e c t renewal and change i n l i n e w i t h the long term goals and purposes of our Western s o c i e t y . FOOTNOTES FOR CHAPTER I I I I t i s a l s o notable, that the more a f f l u e n t a s o c i e t y becomes, the e a s i e r i t becomes to create needs and demands i n that s o c i e t y . 2 Fr e d e r i c k Harbison and Charles Myers, Management i n the I n d u s t r i a l World (New York: McGraw H i l l Book Company, Inc., 1959), p. 3. 3 In a recent p u b l i c a t i o n : John Kenneth G a l b r a i t h , The New Indus-t r i a l State (Boston: Houghton M i f f l i n Company, 1967), Mr. G a l b r a i t h even goes so f a r as to ass e r t that the technostructure, or a l l those who con-t r i b u t e to group d e c i s i o n s , are i n possession of the c o n t r o l s and the power i n the large s c a l e o r g a n i z a t i o n . 4 Harbison and Myers, op_. c i t . ^Harbison and Myers, op_. c i t . , p. 21-32. ^In recent years as s o c i e t y i n general seemingly becomes more conscious of s o c i a l matters, so al s o have the large corporations i n d i c a t e d an awareness and concern f o r p u b l i c r e s p o n s i b i l i t y . In a recent a r t i c l e ; Robert C. Albrook, Business Wrestles w i t h i t s S o c i a l Conscience (Harvard Business Review, August 1968), Mr. Albrook s t a t e s as a j u s t i f i c a t i o n f o r the apparent i n t e r e s t that large corporations have i n s o c i a l needs and the f u n n e l i n g of funds i n t o same that t h i s phenomenon i s or may be a t t r i b u t e d to a d e s i r e to increase management morale, because the young managerial candidates: " b e t t e r than t h e i r predecessors...are o f t e n H seeking i n t h e i r careers a greater i d e n t i f i c a t i o n w i t h s o c i e t y and i t s needs." For deeper i n s i g h t i n t o the new r o l e of l a r g e business organi-z a t i o n s , see the s e c t i o n of t h i s chapter e n t i t l e d "Consumption of I d e n t i t y . ^Harbison and Myers, op_. c i t . , p. 42. g As noted e a r l i e r i n t h i s chapter, as the s c a l e of an o r g a n i z a t i o n and i t s a c t i v i t i e s i n c r e a s e s , the number and complexity of r e l a t i o n s h i p s and thus the p o s s i b i l i t y of misinformation, lack of inf o r m a t i o n , and c o n f l i c t s of information from which u n c e r t a i n t y may flow, a l s o increases.. As a r e s u l t , increased s c a l e normally n e c e s s i t a t e s increased c o n t r o l s to insure communication and cooperation i f the o r g a n i z a t i o n i s to remain f u n c t i o n a l . 9 I t w i l l become more evident as t h i s chapter unfolds that the a b i l i t y of the i n d i v i d u a l to enter only i n t o those s i t u a t i o n s i n which the rewards and o p p o r t u n i t i e s a v a i l a b l e meet h i s expectations and i n which the rewards i f r e c e i v e d c o n t r i b u t e to progress along a chosen o b j e c t i v e continuum, and the a b i l i t y of the s i t u a t i o n o f f e r e r s (large business o r g a n i z a t i o n s i n t h i s case) to employ those i n d i v i d u a l s to whom i t can 156. o f f e r those rewards and o p p o r t u n i t i e s which they know and should make an e f f o r t to f i n d out are expected by the a s p i r i n g employees, w i l l to a l a r g e extent determine the :the task performance e f f i c i e n c y and the degree of i n d i v i d u a l s a t i s f a c t i o n to be found i n the large o r g a n i z a t i o n . In one sense t h i s i s an example of a more s o p h i s t i c a t e d a p p l i c a t i o n of-what was described i n chapter I I as the t r a n s a c t i o n a l mode of i n t e r p e r s o n a l r e l a t i o n s . The suggestion that innovation should be c o n t r o l l e d and not allowed to run rampant, i s based on the p r o p o s i t i o n that c r e a t i v i t y f o r the sake of c r e a t i v i t y i s a waste of resources when there are unattained the d e s i r a b l e o b j e c t i v e s at hand. ''"''"Robert C. Albrook, "How to Spot Executives E a r l y , " Fortune, LXXVIII No. 1, ( J u l y , 1968), pp. 106-111. Again as pointed out i n chapter I I , the extent to which anyone i s r e a l l y independent or autonomous i n the sphere of s u c c e s s f u l entre-preneurs i s i n c r e a s i n g l y d o u b t f u l . John W. Gardner, Self-Renewal: The I n d i v i d u a l and the Innovative  S o c i e t y , (New York: Harper & Row, 1963), p. 3. 14 The labor union movement has done much to b r i n g about these so-c a l l e d mechanisms, and i n a sense the union i t s e l f can be considered as a mechanism which the i n d i v i d u a l uses to improve h i s l o t i n the large o r g a n i z a t i o n . •^Many of the large o r g a n i z a t i o n s now i n e x i s t e n c e s t a r t e d large because of the nature and c a p i t a l requirements of t h e i r a c t i v i t i e s . For i n s t a n c e , i t i s d i f f i c u l t to conceive of a small r a i l r o a d or a small competitive auto manufacturer. In many i n d u s t r i e s such as those mentioned i t i s d i f f i c u l t i f not impossible to s t a r t small due to the nature of the competition and the demands of the marketplace and the marketingplace. 16 See s e c t i o n of t h i s chapter e n t i t l e d "Consumption of I d e n t i t y . " I t i s important to note that i s i s decis ion-making and not u l t i m a t e c o n t r o l which i s properly disseminated i n a d e c e n t r a l i z e d a d m i n i s t r a t i o n . I f t h i s were not the case then the o r g a n i z a t i o n would i n a l l l i k e l i h o o d d i s i n t e g r a t e due to the absence of a f o c a l point f o r the e f f o r t s of the o r g a n i z a t i o n . In Harbison and Myers, Management i n the I n d u s t r i a l World, op. c i t . , p. 44, t h i s i s r e f e r r e d to as the major paradox of d e l e g a t i o n : that the more top management t r i e s to d e c e n t r a l i z e decision-making, the more i t must c e n t r a l i z e i t s c o n t r o l of the d e c i s i o n s . This i s a problem which i s most l i k e l y to occur under extreme a p p l i c a t i o n s of c e n t r a l i z a t i o n i n very large o r g a n i z a t i o n s . 157. 19 The independence of t h i s i n d i v i d u a l should under i d e a l circumstances be tempered by the wisdom of t h i s i n d i v i d u a l to evaluate h i s q u a l i f i c a t i o n s and acknowledge h i s l i m i t a t i o n s , w h i l e searching f o r and u s i n g the resources at hand to supplement and compensate f o r these q u a l i f i c a t i o n s and l i m i t a -t i o n s , r e s p e c t i v e l y . 20 Arthur Cole, Business E n t e r p r i s e i n I t s S o c i a l S e t t i n g , (Cambridge: Massachusetts: Harvard U n i v e r s i t y Press, 1959), p. 7. 21 A major part of t h i s suggestion becomes questionable on the basis of the p r o p o s i t i o n that not a l l i n d i v i d u a l s are concerned to a great extent w i t h achievement per se, and can be s a t i s f i e d i n the work environment with such rewards as monetary payments, s e c u r i t y , appealing b a s i c working c o n d i t i o n s , and favorable r e l a t i o n s h i p s w i t h peers and s u p e r v i s o r s . 22 One p o l i c y that an o r g a n i z a t i o n may i n s t i t u t e to provide a favorable environment f o r t h i s d i s s e c t i o n , i s the g i v i n g of some form of r e c o g n i t i o n on the b a s i s of achievements w i t h i n these s m a l l e r domains where the domains are formal d i v i s i o n s w i t h i n the o r g a n i z a t i o n s . In a d d i t i o n , i t i s not u n l i k e l y that strong c o n s i d e r a t i o n should be given to the f o r m a l i z i n g of the informal domains formed i n the minds of i n d i v i d u a l s , because i n many instances t h i s could prove o p e r a t i o n a l l y sound as w e l l as s a t i s f y i n g to the i n d i v i d u a l needs i n the o r g a n i z a t i o n . 23 In order that human resources can be released from the productive process thereby a l l o w i n g these re l e a s e d human resources time to enjoy the b e n e f i t s of the advancing technology, i t becomes important that those resources, human and otherwise, which are s t i l l needed i n the productive processes of the advancing i n d u s t r i a l s t a t e , be a v a i l a b l e t o , a t t r a c t e d t o , and e f f i c i e n t l y s t imulated i n the production environment. Therefore, although fewer people are d i r e c t l y involved from a p a r t i c i p a t i v e standpoint and thus concerned w i t h the q u a l i t i e s of the work environment, t h i s does not decrease i n any way the importance of s t u d i e s of the s t i m u l a t i o n of productive c a p a c i t i e s i n the workplace. In f a c t i t may even increase t h e i r importance because even though fewer people are i n v o l v e d , the a l i e n a t i o n of those who are p a r t i c i p a t i n g from a production standpoint and the subsequent decrease i n t h e i r p r o d u c t i v i t y becomes more serious due to the l a r g e r per man p r o d u c t i v i t y . 24 The need f o r the large business o r g a n i z a t i o n to cooperate, conform, and compromise i n i t s working environment i n order that t h i s same environ-ment can be c o n t r o l l e d and p r e d i c t e d to such a degree that the inputs and outputs i n the economic processes w i l l become r e l a t i v e l y s t a b l e elements thereby so v i t a l to t h e i r s u r v i v a l , i s a p r o p o s i t i o n which appears throughout John Kenneth G a l b r a i t h ' s , The New I n d u s t r i a l State (Boston: Houghton M i f f l i n Company, 1967). This p r o p o s i t i o n must be q u a l i f i e d by the s t i p u l a t i o n that the goals of the f i r m be i n alignment w i t h s o c i e t y and i t s needs. 158. 26 In a democratic f r e e e n t e r p r i s e s o c i e t y i t has been th e o r i z e d that the ' r i c h get r i c h and the poor get poorer.' I f t h i s p r o p o s i t i o n was v a l i d then i t i s l i k e l y that a r e v o l u t i o n by the i n c r e a s i n g propor-t i o n of the i n c r e a s i n g l y poor members of s o c i e t y would be very probable. However, the large s c a l e business o r g a n i z a t i o n f a c i l i t a t e d such a high r a t e of growth i n the p r o d u c t i v i t y of the n a t i o n that the l a r g e s t propor-t i o n of s o c i e t y are not 'poor' r e l a t i v e to human standards and th e r e f o r e take only passing n o t i c e to the ' r i c h g e t t i n g r i c h e r ' which i s i n i t s e l f a s i t u a t i o n i n which anyone w i t h i n i t i a t i v e , t a l e n t , and perhaps a l i t t l e l u c k may f i n d h i m s e l f . 27 A s u b s t a n t i a l p r o p o r t i o n of the p r o p o s i t i o n s put forward i n t h i s s e c t i o n are based on the f i n d i n g s of Walter Guzzardi i n h i s book, The Young Executives , (New York: The New American L i b r a r y , 1964). 28 E d i t h Penrose, Business E n t e r p r i s e i n i t s S o c i a l S e t t i n g , (Cambridge, Massachusetts: Harvard U n i v e r s i t y Press, 1959), p. 31. 29 T Loc. c i t . 30 The execution of these managerial s e r v i c e s may be l i k e n e d to the execution f u n c t i o n of the t r a d i t i o n a l independent entrepreneur as described i n chapter I I . 31 Refer to s e c t i o n of t h i s chapter on ' r e s p o n s i b i l i t y , c o n t r o l , and feedback' to examine the p r o p o s i t i o n that the o r g a n i z a t i o n a l entre-preneur must perceive and be able to j u s t i f y h i s b e l i e f that h i s personal achievement i s d i r e c t l y r e l a t e d to h i s performance i n the f i r m i n order f o r him to t h r i v e on the competitive aspects of corporate performance. 32 See s e c t i o n on 'entrep r e n e u r i a l energy' i n chapter I I . 33 Walter Guzzardi, The Young Executives, (New York: The New American L i b r a r y , 1964). 34 Time Magazine, "The Generation Gap i n the Corporation," August 15, 1969, p. 56. 35 See s e c t i o n on 'energy' i n chapter I I . Guzzardi, op_. c i t . 37 As w i l l be discussed at greater length i n the f i n a l chapter of t h i s t r e a t i s e , i t i s up to the f i r m to provide the c o r r e c t or de s i r e d feedback to the o r g a n i z a t i o n a l entrepreneur so as not to d i s i l l u s i o n him wi t h respect to h i s perception of a d i r e c t r e l a t i o n s h i p between h i s achieve-ments f o r the f i r m and h i s own personal achievement. 159. 38 E n t r e p r e n e u r i a l i d e n t i f i c a t i o n was f i r s t mentioned i n t h i s t r e a t i s e i n the s e c t i o n on 'energy' i n chapter I I . 39 See s e c t i o n i n t h i s chapter on ' m o b i l i t y . ' 40 Robert C. Albrook, "Why i t s Harder to Keep Good Execu t i v e s , " Fortune Magazine, LXXVIII No. 6, c i t i n g from the f i n d i n g s of Eugene Jennings as set out i n h i s book "The Mobile Manager." 41 See s e c t i o n on 'commitment' i n t h i s chapter. Guzzardx, op_. c i t . , 43 I b i d . , p. 62. 44 See s e c t i o n on 'energy' i n chapter I I . 45 Lyman Porter and Edward Lawler, "What Job A t t i t u d e s T e l l About M o t i v a t i o n , " Harvard Business Review, XLVI (January-February, 1968), pp. 118-126. 46 I t i s important to note that the e n t r e p r e n e u r i a l i n d i v i d u a l also gets s a t i s f a c t i o n from and considers as a reward i n i t s e l f , the opportunity f o r autonomy and s e l f - r e a l i z a t i o n . This i s one of h i s most important d i f f e r e n t i a t i n g c h a r a c t e r i s t i c s . 47 This l a t t e r p o i n t w i l l be discussed at greater length i n the f o l l o w i n g s e c t i o n on o r g a n i z a t i o n a l e n t r e p r e n e u r i a l motives. 48 Time Magazine "The Generation Gap i n the C o r p o r a t i o n , " August 15, 1969, p. 56. 49 Guzzardi, op_. c i t . , p. 62. " ^ M o b i l i t y w i l l be discussed i n the f o l l o w i n g s e c t i o n e n t i t l e d " m o b i l i t y . ' "'''"Guzzardi, o_p_. c i t . , pp. 66-67. 52 Refer to s e c t i o n on ' r e s p o n s i b i l i t y , c o n t r o l and feedback.' 53 Guzzardi, op_. c i t . , p. 38-39. 54 Refer to the s e c t i o n on 'energy' i n chapter I I of t h i s t h e s i s f o r a f u l l e x p l a n a t i o n of the 'open-ended goal continuum. 160. "^This w i l l be discussed at greater length i n the l a s t chapter of t h i s t h e s i s . 56 The o r g a n i z a t i o n a l entrepreneur's quest f o r constant achievement i n the large s c a l e business environment n e c e s s i t a t e s c o n t i n u i n g education and constant r a t i o n a l i z a t i o n of the system of which he i s a p a r t . Achievement and s a t i s f a c t i o n therefrom i n t h i s environment serve to r e i n -f o r c e the i n f l u e n c e s which formed h i s a t t i t u d e s and h i s b e l i e f i n and approach to the system i n i t i a l l y . ~^The World Book Encyclopedia D i c t i o n a r y . 58 As defined by the World Book Encyclopedia, 'dynamic' has to do with the energy or f o r c e producing motion. 59 Robert C- Albrook, "Why i t s Harder to Keep Good Exec u t i v e s , " Fortune Magazine, LXXVIII no. 6, c i t i n g from the f i n d i n g s of Eugene Jennings as set out i n h i s book "The Mobile Manager." Loc. c i t . ^ T h i s r e f e r s to cases where the i n d i v i d u a l went i n business f o r hi m s e l f because he lacked the q u a l i f i c a t i o n s f o r employment by a l a r g e business o r g a n i z a t i o n . 6 2 Guzzardi, op_. c i t . , found that among the executive that he s t u d i e d , nine out of ten were c o l l e g e graduates and o n e - t h i r d had gone to graduate s c h o o l . 63 Albrook, op_. c i t • 64 Albrook, op_. c i t . ^ A l b r o o k , op_. c i t . ^ A l b r o o k , op_. c i t . 6 7 See s e c t i o n I , of chapter I I I . 68 G i l b e r t Burck, T h e r e ' l l Be Less L e i s u r e Than You Think," Fortune LXXXI No. 3 (March, 1970), p. 86. 69 Kenneth R. Andrews, "Toward P r o f e s s i o n a l i s m i n Business Manage-ment," Harvard Business Review, XLVII ( M a r c h - A p r i l , 1969), p. 51. 161. Burck, op_. c i t . Studies of United States f i g u r e s i n d i c a t e that i n the l a s t twenty years the bulk of the increase i n t o t a l employment can be a t t r i b u t e d to the s e r v i c e i n d u s t r i e s . However, the greatest p o r t i o n of the increase i n t o t a l output could be a t t r i b u t e d to the goods produc-t i o n s e c t o r . This trend i s expected to continue u n t i l by 1980 i t i s expected that the s e r v i c e s w i l l employ twice as many people as the r e s t of the economy but i n d o l l a r value of output the s e r v i c e s w i l l be about equal to the goods producing sector . This phenomenon can be accounted for by the f a c t that the goods production sector i s e s s e n t i a l l y c a p i t a l i n t e n s i v e and t h e r e f o r e puts emphasis on q u a l i t y rather than the q u a n t i t y of i n d i v i d u a l s employed. I t i s subsequently more e f f i c i e n t than the s e r v i c e s e c t o r . Since the greatest hurdle to the independent entrepreneur i s t h e a c q u i s i t i o n of c a p i t a l , i t i s reasonable to assume that he w i l l be l e s s competitive i n the c a p i t a l i n t e n s i v e sectors of the economy. 7^Time Magazine, "Corporations--the B i g Grow Much Bigger,," May 23, 1969. Time Magazine, " A n t i - t r u s t - - A t t a c k i n g the G i a n t s , " J u l y 4, 1969. 73 In many instances i t i s not r e a l l y v a l i d to compare the small business w i t h the l a r g e c o r p o r a t i o n because f o r the most part a small business i s l i k e l y to be a f i r m that s e r v i c e s an economy and i s not engaged i n primary i n d u s t r y on which i n r e a l i t y the s e r v i c e sector r e l i e s f o r i t s w e l l - b e i n g through the c r e a t i o n of money by the goods producing s e c t o r . There are admittedly r e l a t i v e l y few small firms i n the goods producing s e c t o r of the economy, but i t i s nevertheless these'"firms that are r e f e r r e d to i n the d i s c u s s i o n of p o s s i b l e competitive disadvantages. 74 John Dewkes et a l , The Sources of Invention (New York: St. M a r t i n i s Press, 1959). The process of innovation and development may take more than the inventor or the idea man has to o f f e r w i t h respect to the resources and the s k i l l r e q u i r e d to get the product to a u s e f u l or marketable stage and then to promote and s e l l i t . The 'product champion'' i s o f t e n c i t e d as the i n d i v i d u a l or type of i n d i v i d u a l who i s needed to undertake the r i s k s involved i n developing and marketing a product. 7 6 Melvin Anshen, "The Management of Ideas," Harvard Business Review, XLVII (July-August, 1969), p. 102. 77 I b i d . , p. 100, 78 I b i d . , p. 102. Robert F. V a n d e l l , "Management E v o l u t i o n i n the Q u a n t i t a t i v e World," Harvard Business Review, XLVIII (January-February, 1970), p. 83. 162. 8 0 I b i d . See previous s e c t i o n on the behavior and a t t i t u d e s of the o r g a n i z a t i o n a l entrepreneur, f o r f u l l e x p l a n ation of the importance and s i g n i f i c a n c e of these s i t u a t i o n a l a t t r i b u t e s . 82 I t could be noted that i n order f o r the o r g a n i z a t i o n a l entre-preneur to be autonomous i n these l o c a l i z e d niches he may be re q u i r e d to be somewhat of a s e m i - s p e c i a l i s t i n whatever he i s doing. This f a c t may l i m i t h i s m o b i l i t y to some degree w i t h respect to h i s i n a b i l i t y to move f i g h t i n t o other s e m i - s p e c i a l i z e d but unr e l a t e d niches i n the o r g a n i z a t i o n . 83 These checks and balances have to do w i t h such things as: (1) e l i m i n a t i n g various haphazard elements of independent e n t r e p r e n e u r i a l development, (2) c o n t r o l l i n g various aspects of i n e f f i c i e n c y a r i s i n g out of the question of t e c h n i c a l and economic f e a s i b i l i t y , and (3) f i l l i n g i n information gaps so as to prevent the i n e f f i c i e n c y which r e s u l t s from the d u p l i c a t i o n of mistakes and productive f a c i l i t i e s which i s an occurrence c h a r a c t e r i s t i c of independent e n t r e p r e n e u r i a l development. i CHAPTER IV ENCOURAGING ENTREPRENEURIAL DEVELOPMENT In our modern world, e f f o r t s are b a s i c a l l y d i r e c t e d , as i n ages past, towards s u r v i v a l . This end i s a t t a i n e d t h e o r e t i c a l l y through endeavoring to c o n t r o l a l l that touches or i s around us . The problem of c o n t r o l may be approached i n only a few ways, a l l of which have proved r e l a t i v e l y unsuccessful when a p p l i e d to the phenomenon of entrepreneurship. The e a s i e s t approach to c o n t r o l , i n the i n i t i a l stages at l e a s t , i s understanding through s i m p l i f i c a t i o n . However, i n most instances, a l l that s i m p l i f i c a t i o n manages to achieve, as i s evident from viewing a d i c t i o n a r y d e f i n i t i o n which i s a prime example of s i m p l i f i c a t i o n , i s to avoid a n a l y s i s and o f t e n the issue through g e n e r a l i z a t i o n and non-considera-t i o n of the complexities of the s u b j e c t . I f complexity i s not acknowledged or considered when i t i s i n f a c t i n e x i s t e n c e , then the conclusion or answer a r r i v e d at may be at best as u s e f u l or l e s s u s e f u l than no answer at a l l . The inadequacies of s i m p l i f i c a t i o n have p a r t i c u l a r bearing on the study of entrepreneurship because of the l i k e l i h o o d that the complexity of the entrepreneur may be a prime f a c t o r i n the engendering of the f l e x i b i l i t y and adaptiveness that have i n the past and promise i n the future to allow the e n t r e p r e n e u r i a l type to m a t e r i a l i z e and maintain h i s f u n c t i o n a l p o s i t i o n through many environmental a l t e r a t i o n s and under the c o n s t r a i n t s and p e c u l i a r i t i e s of various s o c i a l systems. The second i n i t i a l approach to c o n t r o l i s understanding through a n a l y s i s and d e l i n e a t i o n of a l l the complexities of a p a r t i c u l a r s u b j e c t , w i t h the subsequent q u a n t i f i c a t i o n and a p p l i c a t i o n of i t as a v a r i a b l e i n some l i m i t e d f u n c t i o n model. This method may be productive i f a l l the components and i n t e r r e l a t i o n s h i p s can be i d e n t i f i e d and p r e d i c t e d , w i t h the necessary degree of c e r t a i n t y . However, i f these c o n d i t i o n s cannot be a t t a i n e d , as i n the case where there i s a strong s u b j e c t i v e element to be considered, then again t h i s method may lead to s i m p l i f i c a t i o n , and i s o f t e n approached under conditions of c e t e r i s paribus when i n r e a l i t y c e t e r i s paribus does not apply. This f a u l t i s p a r t i c u l a r l y r e l e v a n t to the e f f o r t s to d i s s e c t entrepreneurship so that i t may be a p p l i e d i n economic models. What has been stated above may give the impression that entre-preneurship cannot r e a l i s t i c a l l y be c o n t r o l l e d , at l e a s t i n s o f a r as c o n t r o l depends on complete understanding. I t might a l s o be suggested that perhaps attempts at c o n t r o l l i n g i t are b a s i c a l l y unwise. Might we not i n c o n t r o l l i n g i t , c o n s t r a i n the very essence of entrepreneurship--the freedom to innovate and adapt f o r s u r v i v a l i n an environment charac-t e r i z e d by i n c r e a s i n g s t o c h a s t i c i t y and change? I t i s u n l i k e l y that we can ever understand a l l the complexities of the e n t r e p r e n e u r i a l phenomena, and f o r that reason i t i s u n r e a l i s t i c to suppose that the entrepreneur should or could be c o n t r o l l e d to the extent where he can be measured, or f o r that matter, even p r e d i c t e d . However, t h i s i s not to say that entrepreneurship cannot be encouraged and given d i r e c t i o n , thereby a l l o w i n g i t to be employed to that extent which would y i e l d as f a v o r a b l e , i f not more favorable r e s u l t s were i t completely c o n t r o l l a b l e , w h i l e not endangering i t s very e x i s t e n c e . This process would of course e n t a i l the acceptance of entrepreneurship as a s u b j e c t i v e r e a l i t y , and the d i r e c t i o n of e f f o r t s to the p r o v i s i o n of 165. o p p o r t u n i t i e s , resources, general moral support, and o v e r a l l c o n d i t i o n s conducive to the development and f u n c t i o n i n g of the e n t r e p r e n e u r i a l type i n d i v i d u a l . This approach obviously e l i m i n a t e s the need to i d e n t i f y and q u a n t i f y c e r t a i n elements of entrepreneurship, and i t allows the o b j e c t i v e u t i l i z a t i o n of the s u b j e c t i v i t y which has hindered economic studies of the e n t r e p r e n e u r i a l type i n the past. As a r e s u l t , i n s p i t e of the i n a b i l i t y to completely 'solve' the phenomenon, we are not l i m i t e d i n the extent to which we may c a p i t a l i z e upon i t . The preceding chapters were designed to provide a f l e x i b l e but d e f i n i t i v e perspective of the 'entrepreneur' such t h a t , on the basis of an adequate but r e l a t i v e l y cursory a n a l y s i s of s e l e c t e d r e l e v a n t f u n c t i o n s , t r a i t s , t a l e n t s , a t t i t u d e s , and behavior, a more usable perspective of an 'entrepreneurial type' was developed. A f t e r examining the actions and r e a c t i o n s of t h i s ' entrepreneurial type' i n the e v o l v i n g competitive environment, i t was proposed that not only could t h i s i n d i v i d u a l f l o u r i s h i n such an environment but that he was d e s i r a b l e and necessary from the viewpoint of h i s continued c o n t r i b u t i o n to the v i t a l i t y of change and economic growth i n the system. I t i s now intended that t h i s chapter o u t l i n e various general g u i d e l i n e s as to methods by which the development of the e n t r e p r e n e u r i a l type may be encouraged and stimulated i n volume and i n t e n s i t y . This o b j e c t i v e w i l l be approached from the viewpoint of: (1) h i s education, (2) h i s absorption i n t o the business system, and (3) the p r o v i s i o n of a work environment during the period of h i s p r o d u c t i v i t y . Education As defined by the d i c t i o n a r y , education i s , "the development of knowledge, s k i l l , a b i l i t y , or character by teaching, t r a i n i n g , study, or 166. experience."''' As such, i t i s e s s e n t i a l l y a process that begins at b i r t h and ends f o r a l l p r a c t i c a l purposes at death. As stated many times throughout t h i s t r e a t i s e , the e n t r e p r e n e u r i a l type i s most d e f i n i t e l y a product of h i s environment. I t i s v i r t u a l l y impossible to a s c e r t a i n w i t h any degree of accuracy j u s t when i n h i s developmental process the i n d i v i d u a l assumes the b a s i c form of the achievement-motivated, s e l f - a c t u a l i z i n g e n t r e p r e n e u r i a l type. I f t h i s point could be determined, then i t may be a probable s t a r t i n g point at which to begin encouraging and d i r e c t i n g h i s development. C e r t a i n l y , circumstances to which the e n t r e p r e n e u r i a l type i n d i v i d u a l i s exposed p r i o r to U n i v e r s i t y age have formative s i g n i f i c a n c e , but i t i s u n l i k e l y that he i s mature enough or h i s character i s s t a b l e enough that d i r e c t i v e e f f o r t s could render e f f i c i e n t r e s u l t s . Probably a l l that can be done p r i o r to the point at which he undertakes what i s u s u a l l y deemed to be higher education, i s to ensure that business does not appear to be a n t i - s o c i e t y , thereby warping h i s outlook of business. In previous chapters i t was proposed that the entrepreneur of the f u t u r e w i l l i n a l l l i k e l i h o o d be what was designated as an o r g a n i z a t i o n a l entrepreneur. I t i s g e n e r a l l y accepted that i n the e v o l v i n g business environment, as an i n t e g r a l part of an advancing s o c i e t y , the attainment of higher l e v e l s of s c h o o l i n g w i t h become i n c r e a s i n g l y necessary. The o r g a n i z a t i o n a l entrepreneur has been c h a r a c t e r i z e d i n t h i s t h e s i s as a part of a growing, i n q u i s i t i v e , f o r ward-thinking segment of the population who accept t h i s f a c t as a matter of course, and therefore i t i s l i k e l y that one of the most probable places to begin to encourage and provide d i r e c t i o n to the development of the e n t r e p r e n e u r i a l type i s at the i n s t i t u t i o n s of higher l e a r n i n g . In t h i s regard, i t i s a l s o probable that the most i n f l u e n c e can be exerted, and the most and best a s s i s t a n c e 167. rendered i n the areas of program content and education c o u n s e l l i n g . Upon e n t e r i n g and i n s t i t u t i o n of higher l e a r n i n g an i n d i v i d u a l i s immediately faced w i t h the problem of program and subsequent course s e l e c t i o n . His choice of program i s r e l a t e d i d e a l l y to the purposes to which he f e e l s he should and d e s i r e s to educate h i m s e l f . He must there-f o r e make a d e c i s i o n of some s o r t as to what he wants to be. I t i s l o g i c a l that the best d e c i s i o n could be made i n t h i s regard i f there was an alignment o f , (1) the demands that would be made on the i n d i v i d u a l i n a t t a i n i n g and once he has a t t a i n e d h i s o b j e c t i v e , and (2) h i s c a p a b i l i t i e s , a t t i t u d e s , b e l i e f s , e t c . In t h i s way the i n d i v i d u a l i s more l i k e l y to become not only what he wants to be but a l s o what he i s s u i t e d to be. What would be of great b e n e f i t to the pragmatic e n t r e p r e n e u r i a l type i n a s i t u a t i o n such as t h i s , would be o b j e c t i v e educational c o u n s e l l i n g . G e n e r a l l y , t h i s o b j e c t i v e educational c o u n s e l l i n g would r e q u i r e that business schools: (A) Develop through o b j e c t i v e a n a l y s i s a r e a l i s t i c p e r s p e c t i v e of the business environment and the demands that t h i s environment w i l l make both p h y s i c a l l y and p s y c h o l o g i c a l l y on the i n d i v i d u a l that they are preparing. The attainment of t h i s goal would probably e n t a i l a much c l o s e r a l l i a n c e of business schools and the r e a l business community, as w e l l as much superi o r l i n e s of communication between them than now e x i s t . (B) Relay the r e s u l t i n g data, i n f o r m a t i o n , and analyses to the e x i s t i n g and prospective business students through c o u n s e l l i n g or even course work i f necessary. The i n d i v i d u a l counselled i n t h i s way would then be i n a b e t t e r p o s i t i o n to judge on the b a s i s of f a c t and not merely assumption and rumor, the merits of h i s chosen 168. purpose i n educating h i m s e l f to take or not to take a place i n the business community. I t i s not to be thought that t h i s i s a p u b l i c r e l a t i o n s approach to the r e c r u i t i n g of business students. I t i s moreover, a campaign r e f l e c t i n g a f a i t h i n the power of knowledge. I t i s an attempt to educate the i n d i v i d u a l i s t i c personage i n g e n e r a l , and the p o t e n t i a l o r g a n i z a t i o n a l entre-p r e n e u r i a l type i n p a r t i c u l a r , as to the o p p o r t u n i t i e s that the business community, c h a r a c t e r i z e d as i t i s by the large s c a l e o r g a n i z a t i o n , has f o r i n d i v i d u a l expression and achievement. I t i s an attempt to show p o t e n t i a l producers i n the business environ-ment, how i t r e a l l y i s and what i t r e a l l y takes. I t i s an attempt to c o r r e c t various f a l l a c i e s which e x i s t concerning c e r t a i n charac-t e r i s t i c s of the l a r g e o r g a n i z a t i o n s which are dominating the business environment. (C) Give a s s i s t a n c e and d i r e c t i o n to i n d i v i d u a l s i n analysing and understanding t h e i r own strengths and d e f i c i e n c i e s w i t h respect to t h e i r a t t i t u d e s , b e l i e f s , t a l e n t s , e t c . , i n r e l a t i o n to t h e i r p o t e n t i a l p r o d u c t i v i t y and subsequent achievement i n the business environment, and t h e i r a b i l i t y and probable i n c l i n a t i o n to deal e f f e c t i v e l y and p r o d u c t i v e l y w i t h the pressures and demands to which they may be exposed i n the e v o l v i n g business o r g a n i z a t i o n s . I t i s not intended that o b j e c t i v e educational c o u n s e l l i n g methods manage the i n d i v i d u a l to the extent that they force him to pursue or not pursue a business career. They are intended merely to a s s i s t him through b e t t e r p r e p a r a t i o n and knowledge, to make a c o r r e c t career choice and understand h i s choice and i t s i m p l i c a t i o n s once having made i t . The method of c o u n s e l l i n g i t s e l f i s e s s e n t i a l l y the p r e s e n t a t i o n of f a c t s and knowledge 169. f a c i l i t a t i n g s e l f - a n a l y s i s and s i t u a t i o n a l e v a l u a t i o n by the i n d i v i d u a l being c o u n s e l l e d . To many i n d i v i d u a l s t h i s method of c o u n s e l l i n g w i l l have no a p p e a l a n d w i l l render no v i s i b l y productive r e s u l t s . However, h y p o t h e t i c a l l y i t w i l l appeal to the p o t e n t i a l o r g a n i z a t i o n a l entre-p r e n e u r i a l type--the pragmatic, achievement o r i e n t e d , s e l f - a c t u a l i z i n g , i n d i v i d u a l i s t i c , e g o - c e n t r i c personage who i s s e n s i t i v e to o b j e c t i v e r e a l i t i e s and acts a c c o r d i n g l y . As a r e s u l t , i f t h i s p r e s e n t a t i o n of f a c t s and knowledge i s e f f e c t i v e i t w i l l encourage the number of entre-p r e n e u r i a l types which chose business as a career and w i l l d i r e c t t h e i r development by g i v i n g them an information base from which to develop a t r a n s a c t i o n a l mode of behavior and expectations i n the e v o l v i n g business environment. One of the most v i t a l questions regarding the educationoof the e n t r e p r e n e u r i a l type i s : What should the course content of h i s program be during t h i s l i m i t e d period of study at the i n s t i t u t i o n s of higher learning? In h i s study of the new young ex e c u t i v e , Guzzardi found that t h e i r i n t e l l e c t was very narrow and r a r e l y d i f f u s e d i n t o more broad areas of l e a r n i n g such as the humanities and l i b e r a l a r t s . This manner of behavior i s to be expected of the e n t r e p r e n e u r i a l type i n that because of h i s job or r e s u l t o r i e n t a t i o n , he tends to be a t t r a c t e d to a c t i v i t i e s and mental e x e r c i s e which leads to v i s i b l e d i f f e r e n c e s or change r e l f e c -t i n g worthiness of h i s time and energy expenditure and approaches h i s r e l a t i o n s h i p s from the viewpoint of t h e i r p r a c t i c a l r e s u l t s or v a l u e , i . e . They are e s s e n t i a l l y regarded as part of business problems, p r e p a r a t i o n , and achievement. However, i n an e v o l v i n g age of s o c i a l concern and r e s p o n s i b i l i t y , the new entrepreneur may f i n d that humanistic knowledge has i n c r e a s i n g value from a p r a c t i c a l viewpoint i n that h i s 170. e f f e c t i v e n e s s i n problem s o l v i n g and s i t u a t i o n a l c o n t r o l may depend on h i s s e n s i t i v i t y to and knowledge of 'people' problems. As stat e d by Guzzardi "In the future the young executive may f e e l the lack of a l i b e r a l a r t s education. When h i s r e s p o n s i b i l i t i e s broaden, he may be c a l l e d on to deal w i t h large quest ions--the broad r e l a t i o n s h i p s between the business community and the government or between that community and the s o c i a l 2 currents running i n the country." Business i s dependent on markets, and i n the f i n a l a n a l y s i s markets are people. The point to be made i s that i f t h i s p o s s i b l e d e f i c i e n c y i s l i k e l y to occur, then c o r r e c t i v e measures can be taken before i t does manifest i t s e l f . I t was observed e a r l i e r i n t h i s t h e s i s that the trend f o r managerial candidates to seek i n t h e i r l i v e s and careers a greater:, i d e n t i f i c a t i o n w i t h s o c i e t y and i t s needs, i s apparently being accommodated by the large business o r g a n i z a t i o n s to a greater degree than ever before. These new managerial candidates are not an t i - b u s i n e s s and do not b e l i e v e that business i s or should even appear to be an t i - p e o p l e . The knowledge of the behavior, a t t i t u d e s , b e l i e f s , needs, and de s i r e s of people, as w e l l as the e v o l u t i o n of s o c i e t y i n general, has always been a v i t a l component of management acumen. I f the e n t r e p r e n e u r i a l type i n general and the o r g a n i z a t i o n a l entrepreneur i n p a r t i c u l a r i s to develop i n the business environment by being able to assume the management of autonomous u n i t s i n the business o r g a n i z a t i o n as proposed i n the previous chapter, he w i l l have to be not only a market s p e c i a l i s t , but al s o a business and people g e n e r a l i s t . I t i s up to the i n s t i t u t i o n s of higher l e a r n i n g , p a r t i c u l a r l y the business schools to f o l l o w the lead of the i n c r e a s i n g l y number of aware o r g a n i z a t i o n s , and to cater to h i s needs and a s s i s t the young a s p i r i n g executive to e s t a b l i s h a productive perspective of business and 171. people r e l a t i o n s h i p s i n order to l i m i t h i s confusion and e l i m i n a t e the torn l o y a l t i e s which r e s u l t from a lack of complete knowledge on the s u b j e c t . H y p o t h e t i c a l l y t h i s end can be achieved by supplementing the t y p i c a l business c u r r i c u l u m i n business schools w i t h courses i n behavior, psychology, s o c i o l o g y , e t c . as r e l a t e d to business problems and environ-mental p e r s p e c t i v e . Confidence i s a v i t a l q u a l i t y of the e n t r e p r e n e u r i a l type i n d i v i d u a l , and confusion and u n c e r t a i n t y which r e s u l t s from having inadequate or inaccurate knowledge on subjects which are important i n the performance of management f u n c t i o n s , p a r t i c u l a r l y e n t r e p r e n e u r i a l f u n c t i o n s , puts pressure, through i t s e f f e c t on the element of confidence, on the development of the e n t r e p r e n e u r i a l type i n d i v i d u a l . Therefore, through the p r o v i s i o n of more adequate and accurate knowledge i n areas where there i s an undesirable d e f i c i e n c y , such as i n those subject areas i n d i c a t e d by the preceding r e f e r e n c e s , i t i s reasonable to assume that the development of the e n t r e p r e n e u r i a l type could be a s s i s t e d . Education f o r the e n t r e p r e n e u r i a l type i n general and the organi-z a t i o n a l entrepreneur i n p a r t i c u l a r , i s n e c e s s a r i l y a c o n t i n u i n g process. A type of humanitarian e t h i c has developed of l a t e i n the business environ-ment to the e f f e c t that i f a man has given the most productive years of h i s l i f e to an o r g a n i z a t i o n , then h i s employment and/or f i n a n c i a l s e c u r i t y w i l l not be threatened, and under most circumstances he w i l l be ' c a r r i e d ' by the f i r m even though he may be r e l a t i v e l y unproductive i n comparison to the man or machine that should replace him from an e f f i c i e n c y stand-p o i n t . However, there i s a growing r e a l i z a t i o n that t h i s type of p r a c t i c e i s i n e f f i c i e n t i n a s o c i e t y which must emphasize e f f i c i e n c y to maintain i t s present standards and meet fu t u r e p r o j e c t i o n s of m a t e r i a l w e l f a r e . In our advancing s o c i e t y men as a whole are becoming i n c r e a s i n g l y i n e f f i c i e n t f o r the many tasks that can be performed b e t t e r and more economically by various manifestations of t e c h n o l o g i c a l advance, and they must also face the f a c t that they w i l l have shorter productive l i v e s i n the business world because of the advancing knowledge r a t e ( i . e . the i n d o c t i n a t i o n of r e c r u i t s w i t h knowledge at the i n s t i t u t i o n s of higher l e a r n i n g outpaces the n a t u r a l unimposed r a t e of absorption at the 3 experience l e v e l ) . The new executive--the e n t r e p r e n e u r i a l type accepts m o b i l i t y and turnover based on performance and achievement c r i t e r i a , as a way of l i f e . Furthermore they r e a l i z e that unless t h e y continue • i to educate themselves and s o r t of keep abreast of the times, they w i l l be replaced by those that do. They therefore demand contin u i n g educational o p p o r t u n i t i e s w i t h i n and without t h e i r work environment. To meet these demands the companies themselves must become academies, teaching and reteaching t h e i r personnel, and e l i m i n a t i n g i n the i n t e r e s t s of e f f i c i e n c y those i n d i v i d u a l s that w i l l not l e a r n new ideas. Due to h i s b a s i c a p p r e c i a t i o n of higher education and a f a i t h i n the power of knowledge, the new executive expects to spend much of h i s time being educated i n a classroom even a f t e r he has supposedly l e f t a l l 'that' and entered the r e a l business world. The p r o v i s i o n of t h i s c o n t i n u i n g education i s the r e s p o n s i b i l i t y of both the business o r g a n i z a t i o n s and the i n s t i t u t i o n s of higher l e a r n i n g i n s o c i e t y ( p a r t i c u l a r l y the business s c h o o l s ) . I t would be b e n e f i c i a l to the development of the e n t r e p r e n e u r i a l type i f a c l o s e r a l l i a n c e was formed f o r t h i s purpose between the business community and the academic community. They must undertake the j o i n t development of methods to insure that the o r g a n i z a t i o n a l entrepreneur--the emerging bearer of the mechanism of change, r e c e i v e s the c o n t i n u i n g education that c o n t r i b u t e s so v i t a l l y to the maintenance of h i s dynamic r o l e i n the process of economic growth. 173. E n t r e p r e n e u r i a l Recruitment This s e c t i o n i s b a s i c a l l y concerned w i t h the e f f i c i e n t absorption of the e n t r e p r e n e u r i a l type i n t o the business o r g a n i z a t i o n . The prime c r i t e r i a of e f f i c i e n c y i s the attainment of as p e r f e c t a match as p o s s i b l e between the e n t r e p r e n e u r i a l type i n d i v i d u a l from the point of view of h i s d e s i r e s , needs, b e l i e f s , a t t i t u d e s , and behavior, and the business o r g a n i z a t i o n from the viewpoint of the c h a r a c t e r i s t i c s they are seeking i n a managerial candidate, the demands that they w i l l make upon him while he i s i n t h e i r employ, the c o n d i t i o n s that the i n d i v i d u a l can expect to work under i n the o r g a n i z a t i o n , how the o r g a n i z a t i o n s expect the i n d i v i d u a l to perform, and what the i n d i v i d u a l can achieve i n the o r g a n i z a t i o n . This match i s d e s i r a b l e from the point of view that i t i s most l i k e l y to lead to the best performance of the e n t r e p r e n e u r i a l type i n the o r g a n i z a t i o n . There are various general methods of managerial assessment that would be conducive to the attainment of t h i s alignment between the f i r m and the managerial candidate. In t h i s t r e a t i s e we are concerned p r i m a r i l y w i t h those methods which appeal to and are t h e r e f o r e conducive to the develop-ment of the e n t r e p r e n e u r i a l type i n as much as h i s development i s r e l a t e d to h i s a b i l i t y to secure p o s i t i o n s i n which he can a t t a i n the dynamic and opportunity f o r impact to which he a s p i r e s . Since the e n t r e p r e n e u r i a l type has been c h a r a c t e r i z e d as a pragmatist, i t i s reasonable to assume that such managerial e v a l u a t i o n techniques as 'simulated s i t u a t i o n a l t e s t i n g ' would appeal to him because they would t e s t and/or r e v e a l h i s a b i l i t i e s , a t t i t u d e s , behavior, and performance under dynamic c o n d i t i o n s r a t h e r than on the b a s i s of s u b j e c t i v e impressions or hunches, misleading performance on non-managerial or pre-managerial jobs, or t e s t s that examine 174. only a few assumed managerial q u a l i t i e s or q u a l i t i e s that may be bene-f i c i a l under some circumstances but which are i r r e l e v a n t f o r the job i n question and the duties i t e n t a i l s . Organizations employing the 'simulated s i t u a t i o n a l t e s t i n g ' techniques should take great pains to design s i t u a t i o n s which r e v e a l t r a i t s which are appropriate to t h e i r p a r t i c u l a r firms and not n e c e s s a r i l y an i d e a l i z e d set of management v i r t u e s . Furthermore, they should attempt to judge the r e s u l t s on a completely pragmatic b a s i s because i n a l l l i k e -l i h o o d that i s the approach to the situat'ioh taken by the e n t r e p r e n e u r i a l type. The e f f e c t i v e use of the above technique would of course r e q u i r e that the o r g a n i z a t i o n be completely o b j e c t i v e , r e a l i s t i c , a n d t r u t h f u l w i t h themselves i n an a l y s i n g t h e i r company and formulating g u i d e l i n e s i n d i c a t i n g j u s t what t h e i r o r g a n i z a t i o n demands of an i n d i v i d u a l and e x a c t l y what i t has to o f f e r the i n d i v i d u a l w i t h respect to the a c t u a l meeting of these demands and expe c t a t i o n s , and i n r e t u r n f o r same. Good e n t r e p r e n e u r i a l management r e q u i r e s not j u s t i n t e l l i g e n c e and a b i l i t y , but a l s o f l e x i b i l i t y i n the use of i n t e l l i g e n c e and a b i l i t y and a general openness, adaptiveness, and s e n s i t i v i t y to new ideas, new ways of doing t h i n g s , and changing environmental c o n d i t i o n s . Although the use of p r a c t i c a l s i t u a t i o n a l t e s t i n g may be the best way to probe the managerial q u a l i t i e s of the e n t r e p r e n e u r i a l type, i t should be supplemented w i t h other methods l e s t the o r g a n i z a t i o n e l i m i n a t e at the t e s t i n g stage, the f l e x i b i l i t y that they demand at the performance stage. The employment of 'simulated s i t u a t i o n a l t e s t i n g ' may be supplemented w i t h a process of 'reverse assessment.' Based on the p r o p o s i t i o n that the e n t r e p r e n e u r i a l type i n d i v i d u a l i s as i n t e r e s t e d i n f i n d i n g the most s u i t a b l e p o s i t i o n f o r h i m s e l f as the o r g a n i z a t i o n i s i n f i n d i n g the best 175. man f o r the job, the technique of reverse assessment r e q u i r e s t h a t : (A) The i n d i v i d u a l be t o l d i n d e t a i l j u s t what w i l l be demanded on him and even h i s f a m i l y , both p h y s i c a l l y and p s y c h o l o g i c a l l y , i n the o r g a n i z a t i o n ; (B) The i n d i v i d u a l be t o l d i n d e t a i l j u s t what he w i l l have to be l i k e intterms of h i s a t t i t u d e s , behavior, performance, e t c . i n order to compete w i t h the i n d i v i d u a l s who are already i n the o r g a n i z a t i o n , and other prospective managerial candidates; (C) The i n d i v i d u a l be t o l d how he i s expected to act i n a general context w i t h respect to the company's go a l s , o b j e c t i v e s , methods, and a t t i t u d e s e t c . which w i l l a l s o be o u t l i n e d i n the process; (D) The i n d i v i d u a l be informed of the a l t e r n a t i v e s open to him such as employment i n government or teaching where he may be more s u i t e d to the task and decision-making environment which should be o u t l i n e d to the greatest extent p o s s i b l e . A f t e r the managerial candidate has been informed i n the above manner, he w i l l be asked to judge him s e l f i n r e l a t i o n to the information that he has r e c e i v e d and based on h i s own assessment of h i s a b i l i t i e s , a t t i t u d e s , b e l i e f s , 3 s t r e n g t h s , weaknesses, expected behavior and performance, e t c . . Like a marriage--a r e l a t i o n s h i p between an e n t r e p r e n e u r i a l type and a business o r g a n i z a t i o n should not be based on the expected a b i l i t y of one party to change the other. Therefore, i f on the b a s i s of the comprehensive and d e t a i l e d i n f o r m a t i o n provided to the i n d i v i d u a l the process of reverse assessment brings the i n d i v i d u a l to the c o n c l u s i o n that he i s s u i t e d to the o r g a n i z a t i o n and the o r g a n i z a t i o n s u i t s him; and i f on the b a s i s of the information that the simulated s i t u a t i o n a l t e s t i n g provided the organi-z a t i o n about the managerial candidate they are s a t i s f i e d that the 176. i n d i v i d u a l meets t h e i r requirements and can be developed but not changed to meet t h e i r e x p e c t a t i o n s , then i n a l l l i k e l i h o o d there i s a good compatible match between o r g a n i z a t i o n and i n d i v i d u a l . The methods o u t l i n e d i n t h i s s e c t i o n are suggestive r a t h e r than c o n c l u s i v e i n t h e i r e f f e c t i v e n e s s i n encouraging and d i r e c t i n g entre-p r e n e u r i a l development. In a d d i t i o n , i t i s important to note that the forementioned e f f e c t i v e n e s s i s predicated on, (1) n e i t h e r the o r g a n i z a t i o n nor the managerial candidate having a competitive disadvantage as f a r as the supply or demand of o p p o r t u n i t i e s or s e r v i c e s , r e s p e c t i v e l y , i s con-cerned, and (2) both the o r g a n i z a t i o n and the managerial candidate understanding and r e l a t i n g t r u t h f u l l y to each other what they have summized w i t h respect to t h e i r r e s p e c t i v e s e l f - a n a l y s e s . Each of these c o n d i t i o n s i s q u i t e an undertaking i n i t s e l f . The Developmental Environment Quite r e c e n t l y , Time Magazine wrote t h a t , "A new g e n e r a t i o n -c o n f i d e n t , i c o n o c l a s t i c , and thoroughly p r o f e s s i o n a l has entered the nations corporations .... they want i n s t a n t r e s p o n s i b i l i t y , a chance f o r i n d i v i d u a l expression...these younger better-educated people demand a d i f f e r e n t k i n d of d i r e c t i o n . . y o u have to give them t h e i r head, put them 3 i n p o s i t i o n s where they can make mistakes." " The i n d i v i d u a l described i n the a r t i c l e i s o b v i o u s l y the e n t r e p r e n e u r i a l type as developed i n t h i s t h e s i s , and one of the most serious problems c o n f r o n t i n g the modern day o r g a n i z a t i o n i s how i t can b e n e f i t from the p r o f e s s i o n a l knowledge, a b i l i t i e s , and p e r s o n a l i t i e s of t h i s i n d i v i d u a l . Everett C. Hughes suggests that to do t h i s , "management must s t a r t from the premise that i t w i l l b u i l d on the egoism, aggressiveness and the dreams of i t s p r o f e s s i o n a l s t a f f . 177 . This i s not a chancy d e c i s i o n because most of the time management w i l l 4 be d e a l i n g w i t h t r a i n e d and c o n t r o l l e d egos." In s e c t i o n I I of chapter I I I , proposals were made concerning the behavior and a t t i t u d e s of the e n t r e p r e n e u r i a l type and what he demanded of the o r g a n i z a t i o n , and f o r t h i s reason i t w i l l only be b r i e f l y r e s t a t e d at t h i s p o i n t . These men c l a i m to and apparently do r e j e c t t r a d i t i o n a l i n c e n t i v e s such as money and p o s i t i o n ( t o o l s of the t r a d i t i o n a l ' s t i c k and c a r r o t ' r o u t i n e ) . They t r u s t the corporate system to d i s t r i b u t e j u s t rewards and are confident i n t h e i r a b i l i t y to earn them, given the opportunity. Therefore, as a r e s u l t of the i n f l u e n c e of t h e i r egoism and aggressiveness they emphasize and d e r i v e s a t i s f a c t i o n from the a v a i l a b i l i t y to them i n the work environ-ment of o p p o r t u n i t i e s f o r impact and others-given dynamic a c c e l e r a t o r s such as r e s p o n s i b i l i t y , c o n t r o l , challenge,, r e c o g n i t i o n and feedback. The question i s : Can the business o r g a n i z a t i o n s , w i l l the business o r g a n i z a t i o n s , and should the business o r g a n i z a t i o n s , accede to the demands of these e n t r e p r e n e u r i a l u p s t a r t s ? The answers are: yes they should, yes they can, and yes they w i l l . F i r s t l y , the large business o r g a n i z a t i o n s must innovate, change, and adapt to change i f they are to perpetuate t h e i r form as an e f f i c i e n t u n i t of production i n the economy. The e n t r e p r e n e u r i a l type has already been c h a r a c t e r i z e d as the bearer of the mechanism of change. He may be f u r t h e r c h a r a c t e r i z e d as being both p r o a c t i v e and r e a c t i v e - - h e i s a performer. With respect to the r e l a t i o n s h i p between the r e c e i p t of rewards and h i s s e r v i c e s : he demands nothing f o r nothing. In a d d i t i o n , as f a r as b e h a v i o r a l sciences can determine, there i s no other type of i n d i v i d u a l w i t h the moral f o r t i t u d e , a t t i t u d e s , and t e n a c i t y capable of r e s i s t i n g the n a t u r a l forces and pressures f o r s t a b i l i t y which make 178. innovation d i f f i c u l t i n most e s t a b l i s h e d o r g a n i z a t i o n s . Yes, they should accede to the demands of these e n t r e p r e n e u r i a l u p s t a r t s . Yes, they must! Secondly, the question of how the large o r g a n i z a t i o n can meet the demands of the e n t r e p r e n e u r i a l type i s a serious dilemma. I t i s p o s s i b l e that no corporate s t r u c t u r e i s f l e x i b l e enough to r e t a i n those i n d i v i d u a l s who b a s i c a l l y would r a t h e r 'grow a garden than tend i t . ' However, there are various b a s i c g u i d e l i n e s that could be observed: (1) Management should recognize that the v i t a l i t y and the s t a b i l i t y of the o r g a n i z a t i o n i n an extremely competitive and r a p i d l y changing environment, i s i n the f i n a l a n a l y s i s , dependent on the development of i n d i v i d u a l i n i t i a t i v e i n the o r g a n i z a t i o n and not on the development of conformity to a model p a t t e r n of o r g a n i z a t i o n a l subservience. (2) In l i n e w i t h the forementioned g u i d e l i n e , o r g a n i z a t i o n s must recognize the need f o r heterogeniety and f l e x i b i l i t y i n leadership p a t t e r n s , o r g a n i z a t i o n a l s t r u c t u r e , and types of lea d e r s h i p s k i l l s 1 required . (3) Management must r e a l i z e that the e n t r e p r n e e u r i a l type i s not a n t i -business, but he i s anti-management; they have a fear and a d i s l i k e of being managed, of being manipulated. One does not emphasize a u t h o r i t y and chain of command to these young p r o f e s s i o n a l s who are s t r i v i n g to make o r i g i n a l c o n t r i b u t i o n s to the company. Rather, management should describe and p r a c t i c e a mode of management designated by Ever e t t Highes as " p a r t i c i p a t i v e - c o n s u l t i v e . (4) Management should recognize that these o r g a n i z a t i o n a l entrepreneurs want b a s i c a l l y to f e e l that they are i n business f o r themselves. However, there i s t r u t h i n the p r o p o s i t i o n that they appreciate 179. the necessary muscle that the f i n a n c i a l , personnel and other resources possessed by the la r g e o r g a n i z a t i o n give to t h e i r programs of achievement f o r the company and f o r themselves. In view of t h i s i t i s p o s s i b l e that the e n t r e p r e n e u r i a l type may derive the same reward--if given the chance--from p l a y i n g a p a r t i c i p a t o r y r o l e i n bigger ventures as he would from p l a y i n g a leading r o l e i n smaller e n t e r p r i s e s . I f the o r g a n i z a t i o n can i n s t i t u t e that type of o r g a n i z a t i o n a l system then i t w i l l render e x c e l l e n t o p p o r t u n i t i e s to develop and t e s t the e n t r e p r e n e u r i a l i n d i v i d u a l . As Hughes describes t h i s process, "each q u a l i f i e d p r o f e s s i o n a l on the team must have h i s own o b j e c t i v e s and make h i s own t a c t i c a l plans. He must have the opportunity to c o n t r i b u t e i n d i v i d u a l l y and v i s i b l y . His ego-drive w i l l then be s a t i s f i e d . At the same time h i s work . b b j e c t i v e s - t h e c o n t r i b u t i o n he seeks to make to the team g o a l - - w i l l be approved and coordinated by h i s manager." In r e a l i t y , the o r g a n i z a t i o n a l entrepreneur i s temporarily l a y i n g aside h i s prime o b j e c t i v e of o b t a i n i n g autonomous c o n t r o l of some aspect of the firm's operations, or i n other words, of being a team leader. However, the independence and r e s p o n s i b i l i t y that he i s given under ' p a r t i c i p a t o r y - c o n s u l t i v e ' management methods does render some so r t of dynamic and impact s a t i s f a c t i o n to the extent that he does not abandon the s i t u a t i o n and seek o p p o r t u n i t i e s elsewhere. In a d d i t i o n , the org a n i z a t i o n s keep the s e r v i c e s of t h i s very v a l u a b l e i n d i v i d u a l w h i l e not endangering i t s o r g a n i z a t i o n a l u n i t y . In t h i s process i t i s v i t a l that the i n d i v i d u a l not be asked to l a y aside h i s prime o b j e c t i v e , even i n the i n t e r e s t s of supposed development, f o r too long a time p e r i o d . 180. The forementioned g u i d e l i n e s give a general idea how the demands of the o r g a n i z a t i o n a l entrepreneur may be approached. In essence, they i n d i c a t e that he be given the r e s p o n s i b i l i t y and a u t h o r i t y that he demands. This can be done; but management a l s o has a r e s p o n s i b i l i t y to the o r g a n i z a t i o n , and, t h e r e f o r e , to accede to the demands of the o r g a n i z a t i o n a l entrepreneur r e q u i r e s both courage and judgment. I f he i s given what he wants then the only defense against e r r o r i s , "constant and s t r i n g e n t t r a i n i n g and r e t r e a d i n g on the j o b . " 7 In the words of Hughes which are extremely r e l e v a n t to the e n t r e p r e n e u r i a l s i t u a t i o n , "the package which in d u s t r y must provide f o r the p r o f e s s i o n a l might be l a b e l l e d , g " t r u s t and t r a i n , w i t h feedback." The accommodation of the e n t r e p r e n e u r i a l type i n d i v i d u a l i n the large business o r g a n i z a t i o n i s a f u n c t i o n of enlightenment. Fortune's 9 surveys i n d i c a t e d that many large o r g a n i z a t i o n s are aware of the changes that have to be made i n t h e i r o r g a n i z a t i o n s , and theytiare attempting to make them wherever p o s s i b l e . For i n s t a n c e , some three out of four executives surveyed by Fortune i n d i c a t e d that they were r e v i s i n g t h e i r t ables of o r g a n i z a t i o n w i t h an eye to i n c r e a s i n g job s a t i s f a c t i o n by broadening the base of management and a l l o w i n g more executives the opportunity to run a p i e c e , i f only a small p i e c e , of the company show. In a d d i t i o n executives were implementing programs o f f e r i n g stock o p t i o n s , r e c o g n i t i o n - s a t i s f a c t i o n , cash bonus i n c e n t i v e s , and r e s p o n s i b i l i t y -challenge, to appeal to the e n t r e p r e n e u r i a l achievement-motivated i n d i v i d u a l s . Large s c a l e business o r g a n i z a t i o n s are aware that t h e i r continued dominance i n the economic scene depends on t h e i r a b i l i t y to a t t r a c t and hold the i n d i v i d u a l w i t h the s k i l l s , a t t i t u d e s , h a b i t s of mind, and kinds of knowledge and understanding that are the instruments 181. of continuous change and growth. They should, can, and w i l l change t h e i r o r g a n i z a t i o n s to a t t r a c t and hold the i n d i v i d u a l w i t h these q u a l i t i e s — the o r g a n i z a t i o n a l entrepreneur. 182. FOOTNOTES FOR CHAPTER IV. ^The World Book Encyclopedia D i c t i o n a r y . 2 Walter Guzzardi, The Young Executives , (New York: The New American L i b r a r y , 1964), p. 62. 3 I t i s important to note that one of the i n c r e a s i n g l y serious problems of s o c i e t y i s p l a c i n g these men that are 'obsolete' at the jobs they customarily perform i n the o r g a n i z a t i o n , and who cannot be expected to step 'down' so they are asked to step 'out.' 4 Everett C. Hughes, "Preserving I n d i v i d u a l i s m on the R&D Team," Harvard Business Review, XLVI (January-February, 1968), p. 73. Although Hughes was not s p e c i f i c a l l y w r i t i n g about the e n t r e p r e n e u r i a l types, he was r e f e r r i n g to an i n d i v i d u a l i s t i c mode of behavior, and h i s p r o p o s i t i o n s are q u i t e a p p l i c a b l e to the e n t r e p r e n e u r i a l type i n d i v i d u a l . 5 l b i d . , p. 73. 6 lb i d . , p. 76. 7 l b i d . , 8 I b i d . 9 The Fortune 500--Yankelovich Survey, "What Business Thinks About Management I n c e n t i v e s , " LXXX No. 7 (December, 1969), p. 115. BIBLIOGRAPHY A. Books Cole, Arthur H. Business E n t e r p r i s e i n I t s S o c i a l S e t t i n g . Cambridge, Massachusetts: Harvard U n i v e r s i t y Press, 1959. C o l l i n e , 0. F., David G. Moore, and D. B. Unwalla. The E n t e r p r i s i n g Man. East Lansing: Bureau of Business Research, Michigan State U n i v e r s i t y , 1964. G a l b r a i t h , John Kenneth. The New I n d u s t r i a l S t a t e . Boston: Houghton M i f f l i n Company, 1967. 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Time, "The Generation Gap i n the Corporations," August 15, 1969, p. 56. Va n d e l l , Robert F., "Management E v o l u t i o n i n the Q u a n t i t a t i v e World," Harvard Business Review, XLVIII (January-February, 1970), pp. 83-92. The Fortune 500--Yahkelovich Survey, "What Management Thinks--. About Management I n c e n t i v e s , " LXXX No. 7 (December, 1969), p. 115. 

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