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Technical detail. Centralisation of functions of decision-making and management
p. 268 - 295].
The most fundamental change
"The system at which self-assured and hazardous accept on is
Itself risk or insure doubting and shy, guaranteeing it in advance
The certain income in exchange for the valid result of work... With the account
Our knowledge of a human nature it would be impracticable or it is the extremely unusual,
If someone guaranteed to another results of its actions, without having received
Possibilities to operate its work. And on the other hand, anybody would not allow
To operate itself, without having received such guarantees... Result of this multilateral
Specialisations of functions the enterprise and hiring system in the industry is.
Its existence is direct result of the fact of uncertainty"
[Ibid., p. 270].
These citations contain an essence of the theory of Knight. Uncertainty existence
Means that people are compelled to foresee the future requirements. As a result
There is a special class of the people operating activity of others, which they
Give the guaranteed wages. The system works, as
Reasonableness of judgements is the usual companion of a self-confidence [Ibid., p. 269 - 270].
In the several moments Knight has left itself opened for criticism. First, as
He notices, from this the fact that to some people are peculiar the best
Ability of judgement or the best knowledge, does not follow that they should
Actively to participate in manufacture, to take from this the income. They can
To sell councils or knowledge. Each business buys set services
Advisers. It is possible to present system, in which all councils or knowledge
Are bought as required. I repeat, there is a possibility to take the income
From the best knowledge or the best ability of judgement, without accepting the active
Participations in manufacture, but concluding contracts with manufacturers. The wholesaler,
Buying for the future for distribution to the future, sets a corresponding example.
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