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The New Zealand Railways Magazine, Volume 5, Issue 7 (December 1, 1930)

[section]

The old term “a rational being” was quite easily and clearly understood to mean someone in full possession of his mental faculties—in other words, a commonsense person. Consequently, when the long-drawn out, ugly and haphazardly constructed word “rationalisation” was coined to describe a type of industrial development, it was a simple matter of transposition to treat the word as meaning the application of common-sense to industry. This meaning is in line with the general statement published by the World Economic Conference of 1927 that Rationalisation was understood as “the methods of technique and organisation designed to secure the minimum waste of either effort or material. It includes the scientific organisation of labour, standardisation both of material and products, simplification of processes, and improvements in the system of transport and marketing.”

It is one of the surprises among word and meaning confusions to find that this word was first used, in its German form, in connection with the quota system for “rationing” production amongst the industrialists of the Ruhr during the French occupation. So these two words “ration” and “rational” so different in meaning, though related in appearance, became, through chaotic world-building, hybridised into that polysyllabic conglomeration of suffixes known to the industrial world as “rationalisation.”

Germany's post-war reconstruction was made possible of quick and effective accomplishment by a practical application of rationalisation. This was probably much more easily accomplished in Germany than it could be in English-speaking countries, because of the German's natural liking for regulation. The greatest effects of British industrialism in the past have been secured by individualism in enterprise, secretiveness regarding processes, rigid enforcements of patent rights “to make sure to each his own,” a large and often fetish-like belief in the law of the survival of the fittest in a “fight or fail” attitude towards all business relationships, and a generally scornful and completely antagonistic outlook towards all regulations promulgated “for the general good.” Business was a battle, not a boxing match, and all that the contestants asked for was to be left alone by those not in their line of business and for freedom to fight, untrammelled by hampering conventions, for supremacy against all competitors in their own field.

The pooling of knowledge, methods and resources in the interests of national effici- page 5 ency was forced upon all nations concerned in the supreme struggle of the Great War, and the industrial lessons then learned in the stress of sheer necessity have now been applied with marked success in certain countries to the particular uses of civil life, and have been given the general term of “rationalisation.” Outstanding examples of the application of this principle are the chemical industry in Great Britain, and coalmining and transportation in Germany.

“Co-operative action” has been described as “a fundamental condition of successful rationalisation.” Hence regulation of transportation or industries by law must be placed in another category. But the marked success of rationalised undertakings where it has been possible to create a friendly atmosphere and point clearly to general benefits for all to be obtained by pooled knowledge and resources makes the extension of the principle to important Dominion undertakings well worth further serious consideration and study.