The Role of Self-Interest and Certainty in the Division of Labor, Slides of Management Fundamentals

Download The Role of Self-Interest and Certainty in the Division of Labor and more Slides Management Fundamentals in PDF only on Docsity! Two Human Characteristics and One Human Need • Characteristics – “the propensity to truck, barter, and exchange” – Self-interest • Need – Certainty Docsity.com Origin of the Division of Labor • Not farseeing wisdom or intention instead • “the propensity to truck, barter, and exchange” Docsity.com The need for Certainty • Propensity to exchange + Self-interest = Certainty • The division of labor makes us vulnerable; it gives us more of our good than we need and a lack of other goods we need. We must be able to exchange our good for the many other goods we need. Self-interest and the “propensity to truck, barter, and exchange” gives us this certainty. Docsity.com Importance of Self-interest • Awareness of self-interest assures us that we can be secure in dealing with our fellow man, even while knowing him to be the flawed creature that he is. • This is in contrast to economic systems based on a fanciful common interest, such as socialism. Such systems depend upon mankind having more virtue than it actually has. When mankind shows itself to be unworthy, the system will invariably respond to demonstrations of lack of virtue by instituting regulation and oppression. Docsity.com