A STUDY OF ADMINISTRATIVE POLICIES AND
PRACTICES IN FOOD DISTRIBUTION
PART III

Emit fer tho Doom of M. A.
MICHIGAN STAN UNIVRSITY
Edmund L. Aflanasio
I957

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A STUDY OF ADMINISTRATIVE POLICIES AND
PRACTICES IN FOOD DISTRIBUTION

PART III

by
EDMUND L. ATTANASIO

AN ABSTRACT

Submitted to the College of Business and Public Service
Michigan State University of Agriculture and

Applied Science in partial fulfillment of
the requirements for the degree of

MAS TER OF ARTS

Department of General Business

Curriculum in Food Distribution

1957

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EDMUND L. ATTANASIO ABSTRACT

In recent years, food chain executives have become
increasingly preoccupied with several significant areas of
administrative policies and practices. Three general sub-

jects of interest are Executive Development, Flow of Infor-

 

mation in the Firm, and Integrating the Chain and the

 

 

Community. This study attempts to discuss various problems

 

associated with these subject areas, highlighting several
practical tools and techniques which may be employed by the
retail food chain.

In order to properly study the development of executives,
businessmen should determine the nature of a trained executive
and what special skills and abilities he should possess. In
addition to profiling a trained executive, this study dis—
cusses the objectives and planning involved in any development
program. Emphasis is placed on resources available for
training executives which may be found either within or out-
side an organization. Special attention is devoted to several
developmental methods such as job rotation, guided experience,
conferences, role-playing and university programs. Since an
effective development plan requires a sound selection process,
several modern and useful techniques designed by military
researchers during World War II are studied. The role of the
executive trainee is studied with particular emphasis on

self-development. While the firm can devise and implement

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EDMUND L . ATTANASIO ABSTRACT

techniques to stimulate the growth of executives, the ulti-
mate task of executive development rests with the individual
himself.

The problem of facilitating the flow of information
in the firm is studied from at least three viewpoints--down-
ward, upward and horizontal communication. A distinction

must be made between communications which are employee maga-

 

zines, newsletters, pamphlets, et cetera and communication

 

which is the complex, dynamic interaction that takes place
every minute on the Job. In this process of communication,
the store manager plays a significant role. He provides the
person-to-person relationship so essential to effective
communications. This study illustrates the importance of
'"tailor-made" communications designed for the specific needs
of the individual firm. Another important consideration is
that a communication program must be implemented on a regular
basis. Management cannot suddenly initiate a program and
expect satisfying results immediately.

The responsibilities of a public relations department
and its director are discussed in the study of how a chain
integrates with the community. In analyzing the problems
attendant to maintaining favorable public relations, eight
different groups are enumerated: employees, the general

public, the community, suppliers, the government, special

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groups,stockholders and the people who disseminate informa-
tion. Because of the unique problems each group may present,
they are studied individually. Various techniques and media
which may be used to reach these groups are discussed, such
as corporate giving, annual reports, conducted tours, et
cetera. Although techniques are studied, it must be remem-
bered that the work of public relations does not involve a
complicated set of formulae but rather a down-to-earth way
of business which shouldsmem from a firm's moral awareness.
The chain must appreciate the fact that good public relations
begins in each supermarket. In the final analysis, business-
men must return to an emphasis on personal contacts to win

favorable public opinion.

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A STUDY OF ADMINISTRATIVE POLICIES AND
PRACTICES IN FOOD DISTRIBUTION

PART III

EDMUND L. ATTANASIO

Submitted to the College of Business and Public Service
Michigan State University of Agriculture and
Applied Science in partial fulfillment of
the requirements for the degree of

MASTER OF ARTS

Department of General Business

Curriculum in Food Distribution

TABLE OF CONTENTS

CHAPTER PAGE
I. EXECUTIVE DEVELOPMENT. . . . . . . . . 1
Introduction . . . . . . . . . . . l

The trained executive . . . . . . . . 3
Planning an executive development program . 7
Organizational environment . . . . . . l2
Implementing the progrmn . . . . . . . 1A

Job rotation . . . . . . . . . . 16
Administrative assistant positions. . . 18

Guided experience . . . . . . . . 19
Conference training method . . . . . 22

The case method . . . . . . . . . 26
University programs. . . . . . . . 29

Directed reading. . . . . . . . . 31
Selection techniques . . . . . . . . 33
Rating techniques . . . . . . . . . A1
Post-appraisal interviews. . . . . . . A3
Evaluating the development program. . . . 46
Summary. . . . . . . . . . . . . 49

II. FLOW OF INFORMATION IN THE FIRM . . . . . 52
Introduction . . . . . . . . . . . 52

The nature and types of communication in

industry . . . . . . . . . . . . 53

vii
CHAPTER PAGE
Public relations defined. . . . . . . . 102

The public relations director and department . 103

The various groups in public relations . . . llO
Employee relations. . . . . . . . . . 111
The general public. . . . . . . . . . 117
Community relations . . . . . . . . . 120
Contributions . . . . . . , . . . 123
Memberships . . . . . . . . . . . 125
Tours . . . . . . . . . . . . . 127
Scholarship program . . . . . . . . 128
Cooking courses. . . . . . . . . . 128
The suppliers . . . . . . . . . . . 128
The government . . . . . . . . . . . 129
Special groups . . . . . . .' . . . . 131
Stockholders. . . . . . . . . . . . 132
The people who disseminate information . . . 13A
Benefits of public relations summarized. . . 137
Conclusion . . . . . . . . . . . . 138

lBLBLIOGRAPHY . . . . . . . . . . . .' . . . 1A1

PREFACE

This study is divided into three chapters, Executive

Development, Flow of Information in the Firm and Integrating

the Chain and the Community. The material in each chapter

has been discussed from the administrative aspect.

Chapter I,'Executive Developmentf'deals with procedures
involved in planning and implementing an executive develop—

ment program. Selection techniques are described in additi0n

to several methods of training such as job rotation, guided

experience, conference and role-playing.

In Chapter II,"Flow of Information in the Firm," the

writer examines the process of communication along with its

techniques and media. More specifically, some concepts of

COmmunication and its various directional flows through such

Inedia as suggestion systems, company manuals, newsletters,

<30nmany publications, conferences and the like are discussed.

Chapter III,”Integrating the Chain and the Community,"
ifs concerned with an analysis of the public relations
l”‘Llnctions in a retail food chain. An examination is made
Of‘ the public relations department and its director, the

djefferent publics and some practical techniques of public

PE‘ilations.

The purpose of this study is to furnish part of the

Oai31c reference material to be used in General Business 437,

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Food Chain Administration. Due to the vast scope of each

f"!

subject presented in this study, the writer has :ound it

necessary to avoid a detailed discussion of each topic.
The purpose of this study is to present a broad survey of
current administrative practices and policies rather than
to develop an exhaustive investigation of each particular
subject.

The writer chose this study because it presented an
opportunity to gain additional knowledge about three inter-
esting and significant subject areas. This study also
afforded the opportunity to acquire information concerning
administrative practices and policies in the field of food
ciistribution. The information btained from the research
Inequired for this study should be invaluable to the writer
Lth is planning a career in this field.

Separate introductory headings have been utilized

Since each chapter deals with a different topic.

At K‘I'JIJLEDGIIENT S

The writer wishes to express sincere gratitude and

appre eeia tion to all those who have made this thesis and

A great measure of indebtedness is due the Grand Union
Company for tt eir kindness and interest in allowing the
writer an opportunity to study at Michigan tate University.

“a
Each member of the company has in some way helped to make
this stt d3 possible. Special atlnonleotment is due to Lloyd
w. Moseley and Charles W. Garratt for their confidence and
recommendations to attend this course of study.
The writer wishes to express sincere appreciation to

IDr. Edwar‘ A. Brand, Director of the Curriculum in Food

IDiStribution, for his interest, gt tidance and counsel which

IJ.

Eiided materially n the preparation of this the sis.

No list of ackno.le d2 gments would be complete without
Ifliblicly recognizing the encouragement, assistance and
I“tn’tiring effort of the writer's wife, Ann. The secretarial
W31fl< provided by her cortt ributed greatly to the completion

Of“ this school fear.

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II

EXECUTIVE DEVE

Introduction

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al environment .
the program

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The case method . . . .

Post—apprais
Evaluating t
Summary.
FLOW OF INFOPM
Introduction
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an executive development

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Communication techniques and media

Doxnward communication

Horizontal communication.

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111:. INTEGRATING THE CHAIN AND THE COMMUNITY

causes for communication

innual reports

Letters and newsletters

Emplo;ee manuals. .
Posters. . . . .
Bulletin toards .

Booklets and pamphle

Company puolications

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Social relation

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Emplo;ee relations.
The general puhlic.

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LIST OF FIGURES

Figure Page
1. Percentage of successes and failures according
to test estimate of potential. . . . . . 38
2. Basic formula for public relations conceived

t; Paul Garrett, formerly vice president of
General Motors and now public relations

consultant

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CHAPTER I

EXECUTIVE DEVELOPMENT

'th its emo asis on expanded operations

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tion has created a huge number’of executive

positions. Despite the fact that industry uses five to ten

imes as man; college men as a decade ago, there is still a
shortage of executive Lrainpower. Indications are that it

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act oi automation

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Hill increase even more as the full im

becomes felt.
The shortage has assumed serious proportions in the
netail food industry. Because of public acceptance oi the

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execui‘ive. The branch office keymen who supervise and sup—
port trhe activities of these store managers must possess
mu>Ltiiod of preadth and perspective which, juSt a few gears

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ranging from tfle top echelon to e depart memi s within a

supermarket. In addition to c anges trought by the industry‘s

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growth, the depression and World War II further intensifie
this problem of executive shortage.

Part o7 the current deficiency of executive manpower
has been compounded b” management itself. ”T e neces sitv

o; tusiness ezficien‘y nas resulted in the speCialization 0

management talent, up to and inclt Iding Vice presidents,

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:Pecognize that @XPC‘ ‘19 o -ioas require apilities ”I9“

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--ranscend technical Dalila. TLQ selection OI managers on
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t-e oasis 3: technical the ledge alone iaiis to recognize

the essential characteristic of management which is to

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‘tial to the performance of managcmen- functions--plan-
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Because of this s:rious shortage, the retail food

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lnCiustry has become deeply concerned about the qualit 3 o;
its goresent and future leaders. To an increasing degree,

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to are tne dc elopment oi executives. 31

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Before embarking on a study of the procedures followed

it: developing executives, it might be advisable to determine

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ߤflagement (New York: McGraw-Hill Book Co., l953), p. 359.

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speCiilc goal 0. sucn a program. Tre end prodic-, oi

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course, is the trained executive. Some companies become
so involved in developing programs that tbe3 make limited
progress in developing executives.

What are the prerequisites of polished executive?

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the American Management Association, "The ideal executive

is till the fellow who has been a successful specialist

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and can make the transition to generalist. The individual

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rno wou'd iecome an executive is usually a specialist who

pat he did not need earlier and

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must acquire knotl ge t
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exoert. Rather than learning techniques and skills for

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fine theoretical information that has b~

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-ul“ious -ields o. knowledge tuat tear on Lhe york Oi managing.

s well as the sociology of organ-

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he Inust learn the logic

iZation. In addition, his understanding should extend beyond
The executive trainee rust learn much that comes only

diffs the ass mption of responsibilities. He must be taught

irfiit decisions based on sketchy, unreliable information may

-cutive Shortage," Newsweek, Vol. XLIX, No.8

cost his company money and result in the loss of his job.
In addition, tit? future executixtrrmist learn tn
dvice is not a sign of weakness rut rather a sign of

Strength. He must be taught the importance of timeliness

“ess in execut ve ction. He must be tat grit

5.

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and orderl

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these things nd many others by précept, by example, or or

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experience.

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ne future executive seeks to attain challenging
ebJectives and then measure his actual acrie ement against
nese goals. The work completed, ne does not seek 31871-

fication for his s: o’toomirts In essence, he is emotionall;

d— a u r.‘ ‘~ 3 ~01, ‘ 1" —, :1 ‘3 ~. ‘ fp‘ . ‘ I“ -, 1.. A. 2 "V
mature, posses sing a niin degree o: sell-coniioxnce. Cull:

M“giris o; the School of Industrial and Labor Pelations,'

Cornell Unitersitg, lists qua

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tnis emotional maturity:

l. Abilit; to take "knocks

2. Ability to withstand ‘rustration

3. Abilit3'ixo be objectihe>_hi jrdgmcnt

4. Ability to set :ealistic goals

5. Abilit, to accept victorf and def:at grac fill

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P€oults Oi a study oi one thQusaMG -our nundreo and than-

ven managers and executives iound five characteristics

5A compre‘ensi“e list of what six:
I“Tiure executive has been compiled by
B. Mapel in tneir article,'”Tne Trained E
PPofile, ” The Development of Executive Ta'
Neu York: szer can Mana :ement Associati

nt,ed.M. J. Dooner
n. 1952), pp. 22- 43.

H

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quilton M. Mandell, "How to Gage Executive Potential,
QEQLs Peuie and Modern Industry, Vol. 69, No. 5 (N are

 

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Before planning a defl'c opmer t program, management m;

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keg positions
This reqtires the selection of promising 3mo og execu-
tives and acceleration 4? t'eir derelopmert in order
to q alif3 them for top positions at an age earl;
novgn to contribute maxim m service.

3. Dtvise met lods of testing executive
fore tne3 are promoted to key posit

4. Improve the morale of members oi tne management group.
Promotions should be based on svstematic review of
the qualifications of all exec .i3res. Tris increases
the probability that indixiduals will be assigned to
work best suited to their interests and abilities.

It minimizes oe possibility of promising individ—
U.als languisni_ ng in "blind alleys." It also reduces
the danger oi fa3oritism.

8

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Attract desirab e personnel to the company.

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8

Ening Peille3r and Bernard Muller-Tbym, ”Planning an
EJQPcutive Development Program," Tne De.elopment of Executive
\EiLgflfi, ed. M. Joseph Dooner (New York: Emeric an Manage-
mGrit Association, 1952), pp. 27-28.

 

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Nuile emphasis is usuall, placed ox tue :

developing executives, it must be rememoered that tie pr p-

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arator; stages are crucia p annir; process. Pains-

taking effort in these stages can save an organization a
comsi‘erable sum of money by minimizing the possibility of
a haphazard system which fills vacancieP as they occur

1 7"; : ‘ D . a ' 3 a A. ' yd .. -~. ;, ' v i" —, ‘
agile iailiug to recognize auc appiaise luture HGEGo.

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lie question oi moue,, thlGehcallV, is Ul paramoint

evelopment program. The

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importance in the planning of a
ciesien and extent of the program will be determined by tre
.fifm's abilit; to finance the undertaking. Enl; large
:organizatious or smaller companies as a group can afford

zan elaborate development Stall, cost g educational and
‘trairirg systems and sometimes, the expensive consulting

S rvices. Heavy costs are incurred in large company programs

"I "I

ifl the form of salaries :or staf: exoerts who eXplain,

6

F

mC>ti ate and follow-up on hundreds of exec tives to see

fi-l ‘_ 1 .. a o r‘ f" y_\ M V q 1" 1 .' . 3 .—~ . r1
wfieat tre program 18 opera.iug pzoperlg. This cost lactor,

1 , 1

hO‘Never, shorld not deter the smaller firms for there are

SeVeral ways of putting a program into effect with a minimum
eX-Denditure.

Before undertaking the study of specific methods which
mag? be used in creating executives, it is appropriate to

Vievrthe environment and organizational attitudes essential

\

+- 1 "3 " «
-3 tne success o1 any management development program.

O: anizational Environment

0’ g

The development of executives cannot be effected in a
vacuum where the environment in which executives must grow

is i nored. A development program is nurtured and becomes

m

fruitful in a firm which is oriented toward training execu-

tives. A firm thus oriented can make the growth of execu-

tives vigorous, can unleash the talents of each ind Vidual

and can encourage positive and resourceful behavior.

1

This environment can be achieved only by establisnin

u

01?

and m intaining sound personnel policies. There must be

SD

conf dence in the soundness and

H)

airness of the company's
Ioolicies. To create this needed climate is to ensure that
ever? supervisor throughout the firm believes--and practices--
that:

l. A general understanding of company objectives and
policies is a good thing. This means stating ob-
jectives and policies clearly and then seeing to
it that each supervisor recognizes his responsib -
lit; for letting each man know what the goals are
and what the rules of the game are.

tr. Each supervisor must maximize the opportunities for
his men. This means delegation of responsibility,

a lot of it; it means exposing young men to the
business' problems; letting them sit in when seniors
wrestle with the problems; assigning them special
projects that contribute to the meeting of such
problems; inviting their ideas.

UU

- Courage, as well as technical proficiency, must be
instilled in young men. This means eliminating the
fear of criticism; it means urging and helping
young men to make decisions without fear of making
mistakes. Mistakes are expensive. This does not
mean avoid criticism; criticizing can build a man's
confidence, pride,ambition and loyalty; but it does
mean constructive considered criticism, never made
in front of others.

 

13

H. A program of well—conceived incentives pays for
itself. This means basically that the company will
pay well; it means sound promotion policy; it means
the provision of incentive pay to stimulate that
still additional ounce of effort; and finally it
means recognition--recognition before one‘s fellows
may be a greater incentive than anything with a
dollar mark attached.

A substantial part of the development of future execu-
tives must be performed by the immediate supervisor. A pro-

gram will not produce satisfactory results unless the

.)
b\-‘

t

supervisor recognizes and dischar es 1is personal responsi-

O

bility for developing the people entrusted to his care.
’Training must include all major elements of the job. All

too often, supervisors will stress certain phases of the

*vork to the exclusion of others. A supervisor should
approach the training of each man as an individual problem--
ckmnanding special attention to individual strengths and
*meaknesses. In addition, he will be expected to "appraise
the trainee's rate of progress and incentive to get ahead."13
Thijs supervised training can reach its maximum effectiveness
Onlb’ when every manager is made to understand that the devel-

Opmewot of his immediate subordinates is an important, if

“St ‘the most important part of his job. Unfortunately,

 

N ngOhn Corson, "Managers Need Three Smart Teachers,"
.iilgfllls Business, V91. A5, No. 1 (January, 1957), 81-82.

 

P h l3Edward N. Hay, "Your Boss Is Your Training Director,‘
rs¢5¥23961 Journal, Vol. 35, No. 6 (November, 1956), 220.

 

in

management in some food chains has not aggressively promoted.
this attitude of developing subordinates.

In any development program, top management must set
the tone. Setting the tone is not the by-product of a
hasty visit by some management consultant; rather it is a
continuous process of setting good example for subordinates.
The program director should occupy a high-level position in
the organization, as close to the chief executive as possible.

The chief executive, in turn, should sponsor the program by

providing general support and leadership. While executive

development eXperts may sell and install case study, multiple
Inanagement, human relations courses and assorted plans
:regardless of top management's interest, understanding or
readiness, executive development is not possible without

the firm's support and acceptance of such programs.

Iflqllementing the Program

Assuming that a sound plan for executive development
has been drawn up and the organizational groundwork firmly
laiCi, top management can then approach the actual problem
of Ckeveloping executives. The vast array of methods used
in eJflecutive development can roughly be classified into
three? types: resources available within the company, out-
Side the company and either in or out of the company.

ReSCNArces available for executive development within the

Company are:

F‘J
\_'fl

1. Regular and continuous coaching by superior

2 Periodic "developmental planning" sessions with
superior

3. Planned experience on different jobs

Guided experience on present job

. "Managing-upward” experience

Planned rotation in other jobs

Committee assignments

Planned visits to company offices or plants

Special work assignments

10. Planned staff meetings

11. "Assistant-to" or administrative assistant positions

12. Temporary understudy positions

1 . "Task—force” assignments

Resources available outside the company:

Professional medical advice

1. Special evening classes, institutes, and so on

2. Selected workshops and seminars

3. Membership in technical societies and attendance at
special meetings

4. Uni ersity programs

5. Community service experience

6. Professional psychological advice

Resources available either in or out of the company:

Assigned or directed reading

Counseling by other than supervisor

Public speaking training and experience
Chairmanship and group leadership training and
experience

Planned visits to other companies

Creative writing experience

. road, general reading

. Depth interviewing for self—appraisal and self-
analysisl4

kw n.) +4

(I) “J O\ W

This comprehensive list offers resources by which the
eX€>cutive can develop any or all the needed managerial
\ . . . . . . , .
St<11.llls--know—how, leadersnip and understanding of the busi-

nEWSS environment. Resources listed as outside the company

a .

1 Joseph M. Tricket, "Fulfilling Individual Needs in
Management Development," Personnel, Vol. 33, No. 6 (May,
1957), 523.

 

,-

lc
stoill must be sponsored from within by top management to be
ei‘fective.

Generally, the most worthwhile training is effected
ttirpugh resources found within the company. This type of
tznaining is built into daily on-the-job experience. Implied
:is the recognition that leadership germinates under the
prwessure of need and grows in an environment of organizational
frweedom and responsibility. Leadership develops only through
iritellectual and energetic effort on the part of the trainee
arm: the reward of his talents by his boss and his organi—
zation. Development of executive talent is impossible
vfithout the delegation of responsibility for results and
aiithority to manage. "All this means that most development

w c u n ' ‘ r1 1
'UHASC take place oaSically within the company itseli." 5

Job rotation. Dne method of training which has come

 

ti) be considered most important by food retailers in recent
Ueéirs is job rotation. This is the planned movement of men
fr‘Om.one position to another for the basic purpose of
enCouraging and stimulating the growth of the individual.
The job rotation method offers several advantages to

thE’ employee. Periodic changing from one job to another

pPOVides-a well-rounded training and a background of

c: , L 4,-
B lJl'loward Johnson, LWhere Management Development
{Elongs,' Nation's Business, Vol. #5, No. 6 (June, 1957),

J

experience for the individual, familiarizing him with many
phases of the company‘s operations. The man so trained
considers his problems and makes his decisions more intelli-
gently, in the light of their effect on the operations of
the organization as a whole. The rotatee is afiorded t
opportunity of meeting and working with many company

employees.

s that he

H.

An important advantage to the employer
can test the individual trainee'florough job rotation. Execu-
tive ability and versatility demonstrated in the assignments
provide an indication of thich men are most suitable as
Inaterial from which top-flight executives can be drawn. In

addition, any lack of executive ability is similarly

16

demonstrated.
A major disadvantage of job rotation is that it can

Scnnetimes disrupt the normal business operation. This may

L

be’ overcome bv not moving too many trainees at one time

.1
aruj by retaining a nucleus of trained supervisors in each

department to steer the trainees until they become familiar

Wiqth their new positions.
Job rotation between highly specialized technical de-

perrtments or at higher levels in any department is often

1 ' fi 0 s c o "n 1 w . o

6A detailed listing oi the advantages in a job

I‘Dtation program may be found in the study by Dwight S.

Sargent, "The Job Rotation Method,” The Development of

%§§£Eflive Talent, ed. M. Joseph Dooher (New York: American
al’lagement Association, 1952), p. 95.

 

18

fficult. In fact, this technique lends itself easily to

F1.

d
the development of managers at lower levels. Accordingly,
many food retail chains utilize job rotation for the training
rof future store managers. Companies such as Grand Union and
liroger have basic courses designed for the young newcomer
to the business. This new man is introduced to each area
«of supermarket operations in order to acquire a broad
tvorking knowledge of the business. The goal is not to
cievelop an apprentice butcher or produce clerk but a manager
‘who can supervise and coordinate the varied supermarket
functions. To attain optimum cooperation, rotatees should
be told why they are beiig rottted and should be counseled
as to how they will be expected to fit into the over-all
picture.

More chains would benefit bv devoting extra attention

ti) the young trainee during the early years when he first

s.
JCDins the company. uring this time, the corporation's
irifluence is at its maximum and it could obtain the maximum

Pe>turn for effort expended.

Administrative assistant positions. A variation of
JCYb rotation is the use of assistants at top management
levels. These assistants aid in executive work and handle
SCHne executive responsibility for a few years. They are
then generally assigned to positions of line responsibility

be“heath those whom they may have served as assistants.

19
Although this method has the apparent advantages of
broadening experience, permittiig assistants to familiarize
themselves with the thinking of recogzized authorities, and
improving selectees' morale, it has several inherent disad-

vantages. An assiStant is "seldom subjected to the pres—

H

sures and challenges of an executive position. Perhaps

rnost detrimental is the "fair-haired boy" reputation which
'the assistant begets. This may hamper him for many years
tout can be offset by virtue of exceptional skill and

personality.

"I

Guided experience. Guided experience consists o;

 

planned on-the-job projects conducted under the directi n
‘3? each trainee‘s immediate superior. This type of develop-
rnent rests on two accepted facts, that the best way to learn
is tm*actually doing, and that training is most effective
tfioen.it takes place under the guidance of a capable and
uruierstanding supervisor.

This emphasis on the supervisor for training offers
a rnajor limitation. Some executives lack the attitude,
Chialities and skills demanded in guiding subordinates. Some
fYDod retailers, still believe in the survival—of—the-fittest

tlfiDe of development where the best men are filtered to

17Lewis A. Allen, "Can You Eliminate Assistants?,"

DEELLS Review and Modern Industry, Vol. 69, No. 2 (December,

1956, 118.

,~. 3%

cl“
top positions over a long period of self-instruction and
self-development.

The supervisor, to be a good instructor, should have
the desire to teach. He must have patience and the ability
to make himself understood. In addition, he must possess
a working knowledge of the job. Too often, this last factor
is over-emphasized in the selection of a supervisor-teacher.
rThe individual who is most proficient at the job is chosen
vnth little or no regard for his ability and desire to

\

teach. A wiser choice would be the man who can teach and

18

has a satisfactory knowledge of the job.

Added to this list of characteristics should be the

U)

supervisor' ability to appraise, analyze and understand
the trainee. An astute supervisor can avoid time-wasting
rnistakes such as trying to train or develop a man along lines
tme does not want to go or is not capable of going.

There are four basic steps in a program of guided
e)qperience. The first one is taken when a supervisor
exuamines or audits his daily experience to find the trainee's
Orne major weakness needing attention first. For example, it
mitght be found that a trainee‘s major weakness is that he

mEflces too many snap judgments based more on guesses or

OEIinions that on facts.

 

 

18The Research Institute of America reports a detailed
$1St of characteristics necessary for the supervisor—trainer
m the article, ". . .But wm Will Do the Coaching?,"
§£§fl§rvisory Management, Vol. 2, No. 4 (March, l957), 18.

 

El

The second step is to determine the effects of this
weakness. One effect might be the loss of confidence by
associates as the trainee is found to be making too many
mistakes.

The third and more difficult step is to determine the
causes of the weakness to be corrected. The supervisor must
list reasons for the man‘s doing things that reduce his

effectiveness, cost the company money and limit tis own

future. Some of these reasons might be that the trainee

L)

is too much a man of action for top policy-making or that
he does not know how to secura the facts needed ior consid-
ered decisions. The supervisor may find it necessarv to
seek the help of training men, fellow-executives, or outside
experts in this s.ep.

Finally, the supervisor build a

'O

rogram of action

(0

designed to remedy the defect by getting the subordinate to
recognize and remove its cause. Alone or with the help of
trained counseling personnel, the executive may work out a
plan of remedial action which might include committee work,
Special assignments or informal talks.

Guided experience, of course, does not meet all the
needs of executive development but it does provide a good
approach to training personnel for high level positions.

An important advantage of guided experience is that it
offers a structural core around which other methods may be

§POUped. Furthermore, this is the Hleast expensive way to

L

22

7 .
develop a man."‘9 Guided experience is timely and directly

related to the actual conduct of the business. The trainee

develops where his supervisor believes that development is

needed. Finally, it provides the opportunity to practice

and fix good habits.
Conference training method. The conference training

method is divorced from the authoritarian tradition of edu-

cation in that it attempts to achieve group action through

participation. Management has come to realize that con-

structive learning involves change and adjustment of atti-

tudes and behavior. This kind of learning is stifled by

aauthority; it requires participation in creating the learning

errvironment.

Participation for the sake of participating is not

eruough. In fact, unrestricted and self-oriented partici—

pEitfiion is likely to negatively influence the group‘s
eff‘eectiveness in evolving a solution and minimize the

lrhficividual's involvement. The problem, then, it to ”create

a. CCLimate in which participants are free to discuss real
p P P I. 1 1120
<3~olems in wnicn they have a sense of involvement.

\

19Earl G. Planty and Carlos Efferson, ”The Guided Ex-

.fiefrfiience Method," The Development of Executive Talent, ed.
- «Joseph Dooher (New York: American Management Association,

1952), p. 91.
2OThomas G. Spates, "What's Wrong with Executive

EEG”Yelopment?," The Management Review, Vol. XLV, No. 12
IM9cember, 19567, 1077.

23

The training conference should present problems that
can be closely associated with the individual‘s dominant
needs and goals. The individual must feel a genuine need
for trainin . All too often, the training director assumes
that this need exists. Emphasis should be directed toward
communicating the importance of the subject to the individ-
ual so that he can more readily appreciate the genuine need
for a solution to the problem presented.

The entire training program will be of little value
if the individual cannot readily apply the principles and
techniques used in solving the conference problem to his
actual job. The training situation will have a decreasing
degree of relevancy (and consequently participation) as the
Egap widens between knowing and doing, or words and actions.

When applied properly, the conference method benefits
tile individual by encouraging original thought and the
eicpression of new ideas. This training method also helps
tide individual rid himself of old ideas, prejudices and
fVPars. Finally, it provides information and encourages the
ifKiividual to seek more detailed information.

Like any other management tool, the conference approach

Inufst be handled carefully with a keen awareness of where it
Call best fit into the over-all picture. Careful screening

:18 required to set up problems for discussion. All the

a'Vailable facts must be presented beforehand if the analysis

W

is to be productive. The problem must be limited and ce-

1

fined so that it can be handled in the time alloted for

discussion.21

An important factor which undoubtedly affects the
success of any conference is the skill of the conference
leader. This skill must be developed in the art of posing
provocative questions and in encouraging discussion. Instead
of dogmatically presenting his ideas and asking for questions
the good leader presents the facts and then asks, "What do
you fellows think?"

The Kroger Company in formulating a Junior Conference
for management development advises the conference leader in
the following manner:

The Conference is purposely set up in such a may as
to secure maximum effort, participation, and discussion
from the men themselves and to aid them to learn to do

3

by doing.

Toss questions to the group, or to individuals,

in order to get them to think--this not only helps
to broaden the men, but helps you to identify the
'thinkers."

Please make important points wlich you feel will
stimulate or broaden the group, but make such a

point only as a “last resort"—-after every effort
has been made to draw the point out of the group.

Refrain from broad compliments or flattery toward
an individual candidate. Once the "brass" has OK'd
a man‘s performance, it is very improbable that

dlA detailed study of how to plan and implement the
Ific’hf‘erence method may be found in an article written by
iChae1 G. Blansfield, "Executive Development Started With
(Cnlference Leadership," Personnel Journal, Vol. 35, No. 5
C3C3tober, 1956), 182.

 

the group will give constructive criticism to the
man. Compliments are often discussion stoppers.

Avoid direct criticism of a man. If the “brass"
criticizes a man he is very apt to "clam up"
instead of "open up." Insofar as possible, use
questions to get the group to make constructive
criticism which is due.

In addition, the conference leader is advised as to
what points to look for in each man‘s performance.
ABILITY TO THINK—~B3TH IN BREADTH AND IN DEPTH

Does he see things in perspective? Does he dig
beneath the surface? Does he translate his experi—
ence into practical know-how? Does he react to
problems readily and surely?

ABILITY TO PUT IDEAS ACROSS CDNVINCINGLY AND CLEARLY

Can he get to the point? Can he sell, persuade
andinfluence? Does he make himself easily under;
Stood, or is he vague and confusing? Consider
both the quantity and quality of his comments in
discussions.

ABILITY T3 GET RESULTS THROUGH OTHERS—~HUMAN RELATIONS
KNOW ~HO W

Is he skillful in gaining cooperation? Does he
have a ”We" attitude? Does he work without
ruffling others and without building resistance?
Can he earn acceptance, attention?

AEBILITY TO WORK EFFICIENTLY-—PURPOSEFUL ENERGY

Does he direct his efforts toward goals and objectives?
Is he growing and learning?

ABILITY TO MAKE A cost) IMPRESSION--DISPLAY MATURITY AND
PERSONAL FORCEFULNESS

Is he self-reliant? Does he take the initiative?
Does he realize that the future depends on his

 

23"Junior Conferences in Management Development,"
Efifiigriptive Material Regarding the Development of Men, The
I‘Oger Company, unpublished material, n.d.

 

‘\

n)

own efforts? Is he a constructive thinker,positive
and helpful; or a "No" man, a chronic objector.23

As a final note, the conference leader is advised to
jhook for any additional qualities in the individual which

could.be used to advantage in the Kroger organization.

The case method.‘ Ano:her group approach to executive

 

denvelopment is the case study. This method of off-the-job
truaining augments the process of learning by doing. The
truiinee learns to develop skills in problem—solving by
Stnudying a written outline of a business problem. Finally,
the> case is thrown open for discussion. The leader‘s job
is to guide this discussion but not to force conclusions.
This training device can be used in several ways.
The? Tennessee Valley Authority's human relations training
prtogram uses ”live" case material submitted anonymously by

2A These real-—

the> trainees themselves for group discussion.
anci as yet unresolved—-problems enable the trainee to follow
a ciynamic case situation. At the same time, the individual
SL1bmitting the problem might gain helpful ideas during the
d1Seussion of his case.

The case method demonstrates the value of reaching
deCisions through group participation. A problem of this
metflaod is how to get the trainee to translate off-the job

\

23Ibid.

 

24C. W. Fredriksen and Helmer Martinson, ”Helping
SUpervisors Train Themselves in Human Relations," Personnel,
V01. 31, No. 4 (January, 1955), 323.

 

training into on-the-job behavior. This question may be
resolved by drawing only on real, current problems for
training material. A major weakness lies in the inability
cof a case to present the intricacies of the complete facts
01""feel" of the situation. The case cannot convey the

pruessures and responsibilities accompanying the actual

si;tuation.

Role-playing. A popular method used in developing

 

htunan relations skill is role-playing. This technique uses
true same approach as the case method, except that the sit-
tuition is acted out. Two or more members of the group are
gifizen a human relations case situation which they must act
OLIt without the use of a script or rehearsal. All the
baxzkground material leading up to the occasion where the
gruoup becomes involved in the plot is related. At this
pcxirm, it is up to the participants to show how they would
hamldle the problem.

As the acting proceeds, the training director and
Otfler members of the group evaluate the performance. After
U16“ role-playing has ended, others may be selected to act
OUT? the same situation or a general discussion might follow.
Th6? use of a sound recorder is often helpful in that the
performers can appraise their own efforts.

This technique may be used in a variety of ways in

the retail food operation. Better methods of motivating

28

department managers for special promotional activities might

be evolved. Supervisors might be requested to evaluate

various methods of handling store managers who resist policy

changes. In effect, role—playing can be used in any of the

aineas where there is a person-to-person relationship.

From a training standpoint, the role-playing technique

tuas several advantages. The trainee learns by doing, and

pLits what he has learned into immediate practice. He

atssists in training himself. A new approach to a problem

ntight be developed by the trainee assuming a position

ft>reign to his everyday role. For example, a member of

Inaliagement might benefit from having to assume the part of

a linion steward. This procedure also helps the trainee to

d€"velop his ability to speak and project ideas.
Another use of the technique is known as anticipatory

POiLe-playing. "Here, a supervisory group, for example, may
be concerned with how to present a problem to top management
as a group or how to conduct a staff meeting successfully."25

ihl these cases, a group would play a scene as they would

ac1: in a forthcoming situation and then analyze the potential

ef‘f‘ects of their actions.

Role-playing also suffers from some serious disadvan-
taéfiés. Too often, the group places major emphasis on acting

\

25L. P. Bradford and K. Lippitt, ”Role-Playing in
MEyflagement Training," The Development of Executive Talent,
93. M. Joseph Dooher (New York: American Management Asso—

Ciation, 1952), p. 202.

rather than on the problem inv lved. The participants may

1

be merely practicing the art of 'verbal fencing." The group
znay become so involved in the technique itself that the sub-
Ject matter and content are forgotten. In some cases, a

ciirect question or problem might be more effective and less

tinne-consuming.

’1

While these disadvantages seem iormidable, they can
be <overcome almost entirely by a trained, capable and experi-
eruoed role-playing leader. Maximum value will accrue from
Ixole-playing when the leader or director has developed

ccnisiderable skill in the use of this technique.

University programs. In recent years, increased

 

enqohasis has been placed on management courses at colleges
anti universities as a development technique. Management
COLirses are currently being offered at Massachusetts Insti—

tui:e of Technology, Harvard, Columbia, Northwestern,

[\D
O\

Pitrtsburgh, and many other schools.
Today, management is confronted with the problem of
dEtermining what contribution, if any, university programs
earl make to the development of executives. As mentioned
ear“lier in this chapter, most development must take place
baSiAoally within the company itself. "The university, how-
eveI”, can contribute much to the development of executives

\

20Kenneth R. Andrews, "Is Management Training Effective?,
'Part II, Measurements, Objectives and Policy," Harvard Business
‘Eggigw, Vol. 35, No. 2 (March-April, 1957), 7.

K A.)
(3

provided the company sends the people best qualified to
benefit."27 To appreciate what the university can offer,
it might be valuable to study the different stages of
development in a manager‘s career and relate these facts
tr) university training.

A prerequisite for successful management is the
chevelopment of know—how. Here is where the functimial
ffiields of management fit: accounting, marketing, production,
arui so forth. While in most of these areas a man develops
ttirough doing, university courses can offer valuable help.
Iriitially, the future manager‘s thought processes and
nuathod of problem analysis are sharpened. In special or
Iiezvly developing informational areas, such as market
Imesearch or industrial relations, the university is able
tC) provide the latest information.

Another area of development in the career of a manager
is his basic understanding of human behavior--his leadership
SLCill. Intellectual familiarity with leadership skills is
nc>t enough. Practice and improvement within the corporate
Si tuation is essential. Nevertheless, leadership can be
enCouraged and strengthened by exposure to the university
DIVDgremq Leadership skill can be developed within the

Uhi‘versity culture through practice and improvement.

27
Johnson, loc. cit., p. 36.

31

Finally, the manager must develop an understanding of
the total complex of business. He must have an under-
standing of where his company fits in his industry, in his
country-—the forces that impinge on it and shape and direct
iiis own effectiveness. This broadening of the executive‘s
OLrtlook can be almost uniquely provided by a good university
program

According to a survey conducted by Business Week the

 

puirticipation of retail units in advanced courses is rather
28

irifrequent. Nevertheless, several food chains have be-

ccnne interested in these courses. The Safeway chain uses

a tiniversity course in its development program. This course

recluires specialized study at either the University of

Wesstern Ontario or the Harvard Graduate School of Business

Adniinistration.

At a lower level, food retailers are definitely more
act:ive. Many food organizations sponsor the Food Distri—
blition Curriculum at Michigan State University where young
mer1 are trained and educated for future executive positions
hi the industry. A testimony to the success of this program
is the fact that similar courses are being planned in other

lea<iing universities.

Directed reading. Genuine learning is essentially

 

pefi?sonal, depending upon self—motivation and derived from
\

28"Retailers Join the Talent Hunt," Business Week,
N0. 1A25 (December 22, 1956), 111.

 

k 10
[U

the felt needs of the individual. An excellent tool for

this learning is the library. For many executives, good

reading has furnished that ”added plus" which put them to

the top of their organization.
Some companies have developed an "Executive Library“--

a growing collection of important books, journals and

special studies in administration, management, human rela-

tions, personnel administration and allied fields?9 One

firm, the Kroger Company, published a selected list of books

<jesigned to develop both present and future executives.

Fkor convenience, these books have been grouped under the

fkollowing categories: Organization and Administration,

Sticcessful Merchandising, Leadership and Supervision, The

Arot of Straight Thinking, Improving Your Communication

SLCillS, Understand Yourself and Others, and the Climb to

’\

the Top. 3”

In addition, some suggestions are given on how to get

moine out of reading. The good reader will read with a

defiTinite purpose in mind. He will pick a subject about

whiczh he wants to learn and then select those books or

artiCles which would be most informative. He will read

actigvely, looking for the main thoughts. Another requirement

\
29Nathanial Stewart, "Building Tomorrow's Management,"

IMMI'ES Peview and Modern Industry, Vol. 7, No. 1 (January,

i§§fi§7‘:‘fi.

t‘ 30"Knowledge is Power,” Descriptive Material Regarding

ffigg~12§yelopment of Men, The Kroger Company, unpublished
er‘1611, n. d.

 

 

33

would be to read objectively, evaluating the author‘s

thoughts. Finally, he will read to increase his vocabulary}:l

Many executives attribute much of their success to

the habit of productive reading. Since their time is limited,

they must be discriminating in their reading sources. The

executive must select those publications which he feels

would give him a broad and comprehensive understanding of

business and current affairs.35

This type of self-improvement points up the fact that,

11o matter how much is done through training programs and by

the boss, a future executive must develop himself. In

ition, he must demonstrate through day—by-day performance

(L
C).

a

truat he wants to get ahead. He will work a little harder

Or” a little longer. He expresses a desire to learn and does

ruot‘ profess to know all the answers.

Sealeection Techniques

 

The best development program is worthless without a
SefLewotion process which can provide good executive material.

\

 

31Ibid.

 

32A food chain executive can choose from several trade
g:¥:i€3ciicals, Chain Store Age, Super Market Merchandising,
abofiifiessive Grocer, and Supermarket News Ior information
for tne fooo industry. There are many excellent sources
<3Lirrent business information, such as: Harvard Business

RE‘VIEPEv Wall Street Journal, Business Week, Nation's Business,

W:
Vfiig§lg£13, et cetera. Time, Newsweek, and U; S; News and
C1 Report capsule current world news in an easily diges-

MW—
b1~€‘ form for active executives.

 

This problem is further intensified with the realization

H

that only one or two persons out of ten thousand possess
personality qualifications,

the necessary characteristics,
drives and motivation that are required for top management

23
responsibility."’ To intensify the problem, many potential

executives are not attracted to the food industry as a

career. The industry suffers because of its low prestige,

relatively low starting salaries and inconvenient working

loours. Actually, they neglect to take into account the
lexig-range advantages of the food industry, rapid advance-

meuit, security, and good executive salaries.

This scarcity of leadership personnel necessitates a

caoreful determination of sources from which talent is to be
sefilected. Food chains use at least three methods: (1) rely

On. "natural selection,” (2) recruit from other companies,

anti (3) discover and develop potential executives from

Wifittiin the company.

”Natural selection” depends on the ”survival-of-the-

r - . .
*iVCTZest" concept in which the best executives are filtered

I

to tThe top. This is usually too lengthy a process and does

not: supply executive manpower in the quantity required by

moCletivlfbod chains. Furthermore, this attitude overlooks

H
‘“9 Inoral factor that a man should be given every opportunity

4..
o ,.
I ESITWJMflth his company.

\

 

gnl 33John C. Harkness, "Planting and Growing Executives,"
‘~53;E:;pan Business, Vol. 27, No. 1 January, 1957), 20.

35

The second alternative of bidding for executives among
other firms can become a costly expedient in this present
tight manpower situation. Conceivably, pirating can generate
ill will among businessmen. Filling top positions with
outsiders can also have a demoralizing effect on junior
executives. Nevertheless, this practice is still prevalent.
More than forty per cent of all firms hire more than ten
per cent of their executives from the outside.34

The most effective means of securing a pool of execu-
tive manpower is through development from within. The
search for executive talent should begin within the firm's
own ranks. Of course, complete reliance on this method
may mean sterility. When a food chain decides to merchan-
dise non-foods for example, it might be advisable, even
necessary, to secure the services of a variety or department
store executive.

Many chains find it necessary and advisable to hire
college graduates to supplement this source from within the
company. Some chains still avoid college trained personnel
preferring those with less education and more practical
experience.

The major weakness of any selection process, however,

is the lack of any precise means of evaluating executive

3it"Industry Beats the Bushes to Fill Top Management
JObs," Business Week, No. 1434 (February 23, 1957), 173.

 

36
ability. Edward R. Stettinius, late head of the United
States Steel Corporation has been quoted as saying: "Is it
not obvious that ways and means must be found to discover
and evaluate the executive in accordance with pre-established
standards? Isn‘t it at once desirable and imperative that
we bring to this problem something of the scientific spirit?"35
Almost every company can make successful strides in its
selection processes by the full use of demonstrated tech-
niques: interviews from the simple factual to the depth,
clinical and group types, tests to secure interest, per-
sonality, intelligence, attitudes, and biographical data.

As an approach to scientific selection and appraisal,

1

'specialists in the field of interviewing generally agree on

‘36

several principles. They suggest that interviews should

be conducted only by those who have demonstrated their
ability to size up other people. Interviewers should have
extensive information about the job to be filled. They

must know how to integrate results of appraisals, tests,

and work history data with interview information. Whenever
possible, several different interviewers should be used on

a consecutive basis. Proper interviewing methods when used
With psychological tests can perform a highly useful function
in providing a reasonably objective yardstick in reaching

personnel decisions.

/'

39Mandell, loc. cit., p. 35. 36Ibid., p. 9o.

 

37

Testing, too, is receiving increased attention in the
selection of management material. Thirty per cent of a
group of both large and small companies surveyed by the
Bureau of National Affairs in 1956 used tests in executive
selection. In 1952, twelve per cent of the larger and
twenty per cent of the smaller companies used testing
techniques.37

The Kroger Company has found tests to be most useful
in identifying "poor management risks." These tests are
used with a full awareness of their limitations. The test
result is merely one element among a variety of factors
which are considered. A management prospect within the
company is not eliminated from consideration on the basis
of these tests alone. On the other hand, a management
prospect from outside the company can be eliminated from
consideration by an "Unfavorable” result on the mental
alertness test.

Figure 1 shows the results of a five year study on the

’V

successes and failures o: keymen according to their test
estimate of potential. The two hundred and one successful
keymen consisted of those who operated effectively at Branch
Product Merchandiser level or above, plus men who (during

the five years) successfully held at least one Administration

Payroll job and moved up to a better job. The one hundred

37 ,
Ibid.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

| TEST ESTIMATE 3R PDTENTIAL ,
T’Jh" ' '—Tni_” A f ' d” ' l
g LETTER GRADE D C 1 B A f
.__._._._.... -- .-. _---_.- ._____._._,-_- -L- -.- T -.- .--.b_ . I
I T ' i
1 I :
! l :‘t; vf‘ :
r I ~ l
1 i 53:3 :
i
I
i .
. SUCCESSES j
l ' of»? '
= ‘\ 24M .
t _ - 7 1 .
. (2w. ) .
1 ‘ '
a
' v r
1 I :
. l E
a r
1 s
. I
g 3 :
p——~.*- t — ; - -u
i ' !
1 ‘ h
u ? .
c F ILUPES ' -
t 1 rag
‘ \ _L /Lz
/ '
l 1c) '
J I
' l
, ;
- if) z
I
5'
-____ __ _ L .. ___.._!,,_-, -__
1C? men 59 men 6? men _ C9 men

 

 

 

 

Fig. 1. Percentage of successes and failures
according to test estimate of potential.
Represented by letter grades: A, B, C, D

Source: '"Personnel Selection," Descriptive Material
Regarding the Development of Men. The Kroger
Company, unpublished material, n.d.

 

 

39

thirty failures were men who were demoted from Administration
Payroll Jobs to weekly payroll jobs. This chart shows the
percentages of successes and failures at each letter grade.
These figures should be considered against the five-year
average of sixty-one per cent successes and thirty-nine
per cent failures. Of particular significance is the fact
that there were-almost four times as many failures at "D”
than at "A"--sixty-six per cent versus seventeen per cent;
A variety of tests are now available to industry for
use in the selection of executive personnel. Interest
inventories are among the most valuable of written tests.
Many kinds of personality inventories are also available,
including the Bernreuter Personality Inventory, the Thurstone
Temperament Schedule and the Personal Audit. In addition,
projective tests are arousing increased interest among
businessmen. They include the well-known Rorschach inkblots
and the pictures of the Thematic Apperception Test. These
tests are being used to learn more about the potential
executive as an individual. They recognize that executive
ability is not measureable by work samples; it is not a
tangible, definable skill. Tests may indicate areas of
Satisfaction, the degree of an individual's motivation and

the extent of his emotional controls and defenses. The

38"Personnel Selection," Descriptive Material Regarding
EflgDevelopment of Men, The Kroger Company, unpublished
material, n. d.

 

expense of using psychologists and consultants might pre-
clude the use of these tests at other than top management
levels.39

A recent development in selecting personnel is the
group appraisal method. The prospective trainee is exposed
to a group of supervisors for appraisal after going through

A0

a battery of tests and depth interviews. This recognizes
the importance of personal judgment in the final selection
of executive material.

While these tests may be helpful, an organization
cannot go overboard on any one selection method. The general

s that "no

(T
|,_ Jo

(.11
CD

rule guiding the use of these s findings

J3

lindin 1

H.
C)

o . , ‘ ‘I
is to be accepted

SD

S 'v'

0Q
to

unless confirmed by

. 41
Other evidence independent of the tests themselves." In

the final analysis, subjective judgment factors form the

bases for personnel decisions.

39These tests are described in detail in a report by
Milton M. Mandell, in his article, ”How to Gage Executive
Potential," Dun‘s Review and Modern Industry, Vol. 69, No. 5
(March, 19577, 33.

uo"Group Appraisal Plan Helps Find Executive Timber
in Company Haystack,” Business Week, No. 1420 (November 17,
1956), 185.

 

 

Al .
James C. Worthy, "Case 3: Sears, Roebuck and

Company," The Development of Executive Talent, ed. M. Joseph
Dooher (New York: American Management Association, 1952),

p. 356.

 

This initial selection is only the first step.

Selection of prospective executives should be conducted

on a contiruous basis. To this end, rating or evaluation

plans are often used by management.

Rating Techniques

Rating plans are set up to serve at least six purposes:

promotion, transfer, improvement of employees, identification

of areas where training is needed, establishing a yardstick

for the evaluation of selection procedures, and layoff.

These purposes are seldom served equally well by any one

plan. In fact, the experience of those using this technique

has been that a plan serving one of the purposes effectively

causes considerable trouble if an attempt is made to use it

)ro

for another purpose for which it is not adapted.

Modern businessmen use a variety of rating techniques,

rvlnging from progress reports to standardized achievement

teasts. While management is not entirely satisfied with any

raj:ing system that has been developed thus far, the situation

1 .. w 1 o 1 4
mass been markedly improved during tne past few years. 3

Cheuflges have been brought about through military research

COflciucted by the armed forces during World War II. The

. 42Joseph Tiffin, "New Techniques in Merit Rating,"
%b§:il2evelopment of Executive Talent, ed. M. Joseph Dooher
DKPVJ Yerk: American Management Association, 1952), p. 301.

1;
3Ibid., p. 306.

 

 

42

research was necessitated by military recognition that the
traditional "efficiency ratings” (poor, fair, good, excel—
lent) were not serving the purpose of identifying promotable

men. A great majority of the men were rated "excellent" and

thus discrimination was impossible.
This study of rating techniques will be limited to
a brief examination of two new methods devised by military

reSearchers. These methods are significant in that they

lend a new emphasis to the problem of rating personnel.

One technique--the forced-choice method-~was devised

to avoid a piling up of the ratings at the'"good" end of

the scale and to also avoid the possibility of unrepresen-

‘tative ratings being given because of favoritism.
In its original form, this method lists descriptive

pkrrases, arranged in groups of four statements per block.

Tun: statements are obviously favorable and two unfavorable.

Thea rater is asked to check the one most descriptive state—

merlt of the subject and the one least descriptive. Actually,

OHJQV one of the favorable statements differentiates between

mer1 (of known ability, and this one is scored. The same

holxiss true for the unfavorable statements. The scoring key'
is not available to the raters, thereby eliminating the

p088 ibility of favoritism.
This technique would seem to be a very good method of

identif‘ying men who are doing a superior JOb- NevertheleSS,

it 5155 elaborate in design and would evoke union opposition

43

when implemented at the employee level. The fact that any

rating given allows no credit for certain favorable state-

ments that were checked but not scored (because they were

not discriminative) might be difficult for a union repre-

sentative to understand.

Another important new method is the critical-incidents

technique. Records are kept by superiors of the actual

occurrence of critical incidents in the job performance of

the employees under them. Each recorded incident concerns

o at a critical

,4
O
W
CL
Ho
OJ
3
L)
(if.
C);

something the employee did I~

point in his work experience. This method does not require

1.].

Ft
Q;

P900?

C);

an: evaluation, only an accurate, wr tten, and da e

of‘a.part of employee '.b. As these records
zaccumulate over a period of time, they form the basis for
arl eventual rating.

This particular technique would seem to be more

accoeptable to labor than the forced—choice method. In

adciition, this method could highlight crucial areas where

trflining is needed.

EEEEE;:Appraisal Interviews

Following the rating process, a supervisor should

(I n I
inicDPmthe trainee of his progress or lack o: it. Tne manner
111 hnfiich this communicating takes place will determine, to a
C ‘ a“ w 1 1
OHSiclerable extent, the trainee's attitude. Ideally, tne

S u a y -I 1 o a 1 ‘I
p6?rHJlSOP snould stimulate a deSlre in tne trainee for

Selra . .
Eippralsal and improvement.

AA

A technique commonly used in the post-appraisal inter-

view is counseling. In some cases, this counseling will be

clear and direct; in other cases it may be subtle and non-

directive. Spencer J. Hayden, Training Director for the

Metal and Thermit Company in New York, seems to consider

the latter method as actual counseling and the former one

as coaching. The distinction is that in coaching, "the boss

acts the part of the leader, through authoritative statements

' while in a counseling relationship, "he acts

and decisions,‘

the part of guide through perceptive questioning and com-

I

menting."1M To facilitate this discussion,the term "coaching‘

wilgl be used to signify the authoritarian approach to

c0tuoseling.
Counseling should give the employee a clear picture

Of know he is doing with emphasis upon strengths as well as

Wealuoesses. Strong personal relationships can be built

betvneen superior and subordinate in which both are willing

to txalk frankly about the job, how it is being done, what

ifnpr‘Ovement is possible, and how it can be achieved. The

CDunselor can get the subordinate to do a better job by

makiJog; clear desired standards of performance.“5

\
Pos AuSpencer J. Hayden, "Getting Better Results from
t"!¥ppraisal Interviews,” Personnel, Vol. 31, No. 6 (May,

1955) » 5A3.

four1 45A- detailed discussion of these objectives may be
Eff¥3Ci in an article written by Earl G. Planty and Carlos E.
Ifishon,‘"Counseling Executives After Merit Rating or

 

“5

How successful is coaching in achieving these objec-

tives? In a recent survey, Business Week found that most

executives seem to doubt that these person—to-person
no .- " 1,. , . 1 I 0 . M6
appraisals ellect any deep changes in their juniors.

Perhaps, the reason for this may be found in Spencer Hayden‘s

1

concept of coacning. This approach consists of "telling"

people "something for their own good." A man cannot be

expected to improve after another man has spent an hour

telling him what he is doing wrong. After all, how can a

Inan‘s ideas, attitudes and feelings be expected to change

d‘ ring the typical one—shot interview after appraisal?

Counseling, on the other hand, is not interested in

*leding out what this man should do to improve; it asks the

far does he

"Why does he act this way? How

questions:
reccognize the nature of his trouble?" Counseling is a non-
denuanding, non—directive approach to people--an approach to
whicoh the ordinary executive has difficulty in adjusting.

lTris Inethod lets the trainee being rated initiate the dis-

CuSESionof his own rating and lets him rate himself.

The scientific, objective approach to improving execu—

tive‘ toerformance is simple and practical, including only

threes: steps:

\

Ev . .
JO:;LLlation,” The Development of Executive Talent, ed. M.
eVpfio Dooher (New York: American Management Association,

1 r‘
933) , pp. 239—2uo.

 

4
1L‘3‘ uV"Executive Coaching Catches On,” Business Week, No.

C) (March 6, 1957), 61.

L"
C)\

1. Setting performance standards.

II. Rating, measuring, judging--as objectively as
possible--how close a particular executive
comes to the standings. Learning where the
man exceeds requirements, where he meets them

and where he misses them.

Counseling with the subordinate regarding the

III.
findings of step II above.”

In many cases, the first two steps are undertaken and

completed more or less objectively and fully but the third

step is rarely undertaken. Generally, executives do not

seem equipped to approach this complex task of counseling

subordinates. In the future, industry will either have to

(develop key men who can counsel, or arrange for subordinates

two be counseled by those few persons who are specially

:rained and equipped. Qualified psychologists may have to

‘—

bE? brought in as counselors to solve this problem of cor-

rwective interviewing.

ETIaluating the Development Program
Executive development is a long-range project, and

rnuust be judged as such. Although some of its improvements
Célruoot be measured directly, there should be some observable
CkfiiIiges in the organization as a result of the program.

After the program has been in operation for a reasonable
p91“1.od of time, some tests should be applied to measure how
*93~1. objectives have been accomplished. Without this

\

 

u7Planty, op. cit., p. 251.

1i 7

evaluation to show their ineffectiveness, poor techniques

are likely to be perpetuated. In addition, firms might

continue to spend money for training programs that are not
accomplishing their objectives. While the majority of
evaluation techniques leave much to be desired, even a
crude measure is better than none at all.

One method of measuring a program's effectiveness is
that of testing the participants before and after the

training to determine the extent of their learning. A

serious weakness of this type of testing is that performance

in.the classroom need not correspond with performance on the

.job. To overcome this deficiency, the trainee's job per-
fxormance might be evaluated. This type of evaluation may

CM? made by the participant's supervisor by means of rating

Sczales. This method has the advantage of involving super-

*5

H-

their pa t cipation

Vinsors in the training program through

ir1 the evaluation process.
Another source of information in evaluating the

trwaining program might be operational statistics. For

E’3“C~€:‘:mele, a store manager could be appraised on such data
supply expenditures and

as Gunployee turnover, labor rates,

is

Extle>s increases. The problem in such an evaluation,

v-

thafit these operational statistics could be affected by

faetOrs other than the manager's participation in a develop-

merlt progrmn.

An interesting attempt to control variable factors is
found in a method called "experimental evaluation." This
t chnique involves four major steps:
1. Establishing Criteria. Quantifiable indexes of

the change or changes in behavior which the program
is designed to accomplish.

 

2. Imposing Controls_ Experimental conditions or
statistical manipulation to hold constant as many
of the variables in the situation as possible.

 

3. Using Statistica Analysis. Use of accepted /
statistical techniques which meet the requirements
of the particular criteria used to measure the
changes associated with training.

 

Having a Built—In Design. The design for the
experimental evaluation, including criteria, control
and statistics, should be developed as an ntegral .0
+—
L,

“(1+-

i

part of the training rogram not as an alte
The B. P. Goodrich Company evaluated one of their
tr€1ining projects in this mann-r. They formed two gnoups of
foLLr hundred men each. Various criteria were tested in both
éEPCHips before the training period. One group was trained
’Nhifile the other remained untrained. After the development
pel‘icmi, both groups were tested again to determine the
extrerm of change brought about by the training.Mg This seems
to EN? one of the more realistic approaches to the problem of
eVEilwuating development programs.
\

u8Daniel M. Goodacre, "The Experimental Evaluation of

ginagement Training: Principles and Practices," Personnel,
1 - 32, No. 6 (May, 1956), 535.

 

LL
9Ibi

Q.

 

 

I

e

For many firms, however, experimental evaluation is

too costly. They must rely on the more subjective approach

f applying various criteria to determine how well the

program's objectives have been accomplished. A successful

program might be expected to effect several improvements.

There should be a reduction of executive turnover. Desirable

personnel are more easily attracted to the firm. Generallr
)

executives should have a better appreciation of the economic,

social, govern ental, and other external forces which affect
executives from outside the

the business. The need to hire

firvn is reduced. The summaries of executive appraisals show

s deficient-—more where it

*3
:1)
f3
0
('D
H-

fenver areas where perfo m

is improved. Teamwork in the management group has been

1H¥>roved by a better understanding of each other‘s responsi-

r‘r

bil:ities and a greater desire to coopera e.

3f course, a management cannot expect to meet all of

khesse criteria. Nevertheless, the attainment of as many

of TZhese objectives as possible, should be the goal of any

GG’JEClopment program. At the same time, an alert executive

Wi1.l try to learn more about what factors might influence

tne‘ EPffectiveness of a training program.

glusion

The benefits of a properly executed development plan

ar~ . .
E? Tnanyu Management skills are increased. Superior men

a P " 1 1 ‘ I "
e- Eittracted to a firm wnicn will advance tiem as rapidly

50

as their abilities permit. The lack of qualified personnel

may impede company expansion. This is particularly true in

many modern food chains where expansion has been restricted
or even halted because there are no managers to operate new
stores. More authority can be delegated down the line since

lower levels of supervision are better qualified to assume

greater responsibilities. A development program can supply

the high—level executives needed to survive today's intense
competitive struggle.

A well-conceived supervisory program develops execu—
tives through a process of careful selection, sound training,
effective organization of functions and a judicious admin—
;istration of rewards and penalties in the development
girocess. In order to achieve a program of this caliber, it

is; necessary that (l) the firm‘s future needs are analyzed

llv, (2) the program is tailored to these needs, and

Lr

carefu
('3) top-management lends its active support and participation.
TVTG' third prerequisite--top-management's support-~points up
t?1e* fact that the development of executives is management‘s
Ivesgoonsibility. The personnel department may give the
pPCJEJPam its initial impetus but the actual training is done
by tide manager on the job.

Management's responsibility to develop executives
CarlrlCVt be regarded lightly. "A management must fully
l“ecggnize that the decisions it makes and the actions it

t
aLCE?ES in relation to management training are the decisions

F‘

(o

and actions that will most nearly shape the long—run

- . . a t. m. , . w H50
oestin; Oi tne organization. E

(I)

sentiallv, executive

IJ

development is based on the precept, "We grow or we die."

DOWillard E. Bennett, ”Why Management Training Can
§1j~1—," Super Market Merchandising, Vol. XXXI, No. 10
Q“tober, l956), 108.

 

LY]

CHAPTER II

FLOW 5F INFORMATION IN THE FIPM

Introduction
Communication has become a poprlar subject in both lay

Lectures, seminars, college courses,

and academic circles.
and a multitude of magazine articles are devoted to this

topic. Modern businessmen, in particular, have become in-

creasingly preoccupied with problems of communications and

their application to human relations, public relations, and

Inanagement functions, in general.
Today's worker is often widely removed from his
(organization‘s policy-forming grou, Few, if any, wage
ewarners ever have the opportunity to receive instructions
diqrectly from the president or vice president. They normally
Imeceive information through a chain of command-~from the

inunediate supervisor who, in turn, was informed by his

SUFNPPiOP. In the process of communicating, information
’naé’ be interpreted in a variety of ways. Too often, infor—

Ination is distorted, retarded or completely stopped in its

fiLQVV through channels. Herein lies one of management's

problems--to see that communications move through channels,

f - 1
Jée€>1xr effectively, and accurately.

w.”

U1
\A)

The communication process is of vital importance to
both superior and subordinate. In any organization, satis-
factory progress toward objectives requires an integration
of the thoughts and actions of all participants. To accom-
plish this integration and to achieve cooperation, an
effective system of communication must be established and
maintained. This communication is the complex, dynamic
interaction that takes place every minute on the job.

The purpose of this report will be to study problems
vfliich may be found in existing communication systems and to
«exandn. various techniques and media. More specifically,
s:nne concepts of communication and its various directional
fltows through such media as suggestion systems, company
Inaiiuals, newsletters, company publications, conferences,

arhi the like will be discussed.

’The> Nature and Types of Communication in Industry

As previously suggested, a major responsibility of
mariagement is the establishment and utilization of an ef-
fecrtive communication system. Through communication with
SLUZ-ordinates, the executive is able to direct their efforts.
He (ran define the goals of the organization, tell subor-
dinéites what is expected of them and what resources are
avadilJable to accomplish these goals. In addition, the
eXeCutive can reward or punish, thereby indicating what

he“ -- . . .. . ..
fiafi»ior'is approved or disapproved. Thus, the subordinate

 

can stabilize his work experience. Without an effective

flow of communication from the executive, a worker is unable

to measure how well he is doing or ascertain in which

direction he should be proceeding. This concept is con-

cerned primarily with communication flowing in a downward

direction—-from superior to subordinate.

Communication that flows upward, from subordinate to

superior, is equally important to management. Through this

upward communication, the executive is afforded an oppor—

tunity to know his workers. He can evaluate how well

{organizational goals are being fulfilled, the success of

tnis downward communications and whether employees understand

tflieir respective roles. An astute manager can, on the

baisis of these upward messages, see the role which he him-

sefilf plays by analyzing the subordinates' attitudes toward

ijn and thus adjust his behavior accordingly.

Modern management now devotes more attention to intra-

meuoagement communication systems. Previously, emphasis

wats placed on communications through the management group
witiiout regard for the necessity of communicating within

‘“19' group itself. Many food chain executives have come to

regilize that the lower levels of management (store managers,

diEStooict supervisors, etc.) are especially vital in the

or'Eé‘a-I'lization‘s communication system. Accordingly, there

has; 1Deenan increase of interest in horizontal communication

t »
echrliques, sucn as conferences, seminars, and committees.

\Jfl
km

The conference technique, in particular, "has been widely
adopted by industry as a basic method of training;"
Communication can occur in a formal and/or an informal

environment. A formal pattern is built around a system of

authority, with positions superior or subordinate to other

designated positions, as visualized on an organization

chart. Informal communications are made through personal

contact not in accord with the formal structure--that is,
communication with individuals not always immediately sub-

tordinate or superior to the communicator.

Iiasic Causes for Communication Failures

A basic deterrent to effective communications lies in

the> fact that everyone has different experiences and back-

grxiunds. Messages are translated in the light of an

intiividual's experience and environment. What the person

treuosmitting the message means may be entirely different
I“Pom the image which the recipient forms upon receiving the
mE“SSage; yet the recipient believes that he clearly under-
Stfiruis what was really meant by the person sending the

mPESSEige. Consequently, true communication can only occur

11‘ l a 1 1o 1
“7697 there is understanding on tne part of the recipient.

HO‘V <31osely the image of transmittor and recipient coincide
de . . .
tEPInnines now good the communication was.

\

 

1

1Stanley G. Dulsky, "Improving Conference Leadership,‘
ed. M. Joseph Dooher

1956), p. 27h.

7‘

Lf‘fi
Tifiééi£ifive Communication on the Job,
‘V ‘York: American Management Association,

56
This difference in experience seems to be a starting
poiJit for communication failures, giving rise to more
stxecific defects. Stuart Chase lists a number of failures
steumning from environmental misinterpretation. Some of

ttuese failures are:

1. Failure to check abstract terms with concrete
events. "Find the referent," the physical object or
occurrence to which the term refers.

2. Spurious identification. This communication
failure has been common on the front pages of news-
jpapers in the form of guilt-by-verbal—association.

3. The wholesale application of two—valued logic.
If an event is not black it must be white, with no
allowance for shades of gray. The actual world is
often many—valued, not just two-valued.

A. Failure to assemble the main facts before
toassing judgment. Prejudice, it has been said, is a
ggreat time saver; it enables the forming of opinions
xvithout bothering to get the facts.

5. Extrapolation. Plotting one or two points and
then riding the curve to cloud cuckooland; another
‘term for over-generalization.

6. Gobbledygook. Prolixity and obscurity; using
twen words where one would suffice, or drowning meaning
1J1 polysyllables and technical terms. Very common
iri large offices and in some academic groves.

7. Failure to listen, to hear the speaker out;
ffiailure to assume he has something worth saying.

8. Failure to appreciate the other man's background
811d point of view. What are his needs and wants and
1”ll-ibw do they affect his talk?

9. Failure to appraise motives. Does the speaker
rmPan what he says or something else?

10. Failure to allow for cultural differences.
I?E¥legates to the United Nations face this problem every
Gaff.

\

B 2Stuart Chase, Power of Words (New York: Harcourt,
Page

and Company, 1953), pp. ll-l2.

 

57
An understanding of these common failures is of benefit
to the executive since he can become more aware of possible
ccnnmunication pitfalls. The executive who becomes conscious
of‘ these failures in himself and attempts to correct them
ixs, in effect, practicing self-improvement in communication
Efl<ills. Consequently, he will enhance his effectiveness in

peioforming the management functions of planning, organizing,

aciruating, and controlling.

Clonnnunications Techniques and Media

Having viewed the nature of communication, it might be
agopxropriate to study some techniques employed in communi-
caitzion. More specifically, the discussion will be devoted
ti) techniqwes and media utilized in the food distribution
iJiCiustry. These media are not intended as models to
b€> llSed indiscriminately by the chain executive. Any com-
mbulinoation program must be tailored to the needs of the
pantfiicular organization. This study is designed to acquaint
If“? :reader with some communication techniques and media

Cul‘rwently'in use, and to describe their relative advantages

ant; (disadvantages.

Downward communication. The most commonly used channel
Of‘ (icownward communication is the formal organization lines--
U15” Iiormal chain of command. The information flow travels
frcorn top management to the superintendent of store operations,

‘—
to w . .
‘3fl1vision manager, to store manager, to department heads,

58

anti, ultimately, to all store personnel. Normally, orders

ccnicerning the work to be done are transmitted through this

c ha in o f command.
Unfortunately, one great shortcoming of executive

conununication downward is the lack of facts given along with

ari order. ‘"When giving an order, it is advisable to point
out? the facts or conditions that have made the order neces-

saioyu"3 Most communications require not only that they be
1H1d£9f8f00d, but that they be accepted and acted upon. '"If

tlie> communication not only states clearly what is to be done

bth inspires the recipient to want to do it, then we have

, a
trnllg communicated." Employees, motivated through under-

Straxiding rather than fear of punishment, will carry out
orxfie>rs with heightened interest and enthusiasm.

Another weakness in downward communication is the

faxot' that messages may become garbled and distorted when

tI‘arismitted through the chain of command. For this reason,
maflb’ organizations insist on putting everything in writing.
Adqtkuough sometimes necessary, this practice creates consid-
erYiEDle paperwork and, if not properly controlled, can
deéaeuierate into a "red tape" stereotype in which managers
quj~Ckly file all communications into the nearest waste basket.
\

f9 3Gerald L. Lund, "Fundamentals of Order Giving," Ef-
Tfi¥2;E£Lye Communication on the Job, ed. M. Joseph Dooher
eat? ‘York:_ American Management Association, 1956), p. 101.

Capt “Frank E. Fischer, "A New Look at Management Communi—
143n," Personnel, Vol. 31, No. 6 (May, 1955), 490,

 

59

Executives must also "exercise discretion when deciding

wruit information can be revealed."5 Total disclosure may

crmsate some problems. For example, employees should not be

tolxi about contemplated mergers, or proposed store sites

tuitil the business transactions are completed. Information

of" this nature, prematurely communicated throughout the

ctuain could prove embarrassing ifthe final negotiations are

riot: completed. By the same token, such information could

be ‘used by competitive firms in planning their market

8 t rategy.

Actually, there is "little conflict between what

erng>loyees want to know and what management wants to tell

tioenn."6 An employee wants to know how his work is being

Iweczeived. He wants to know about his security--company

piLeuos for the future and how they affect him individually—-

OIDENortunity for advancement and opportunity for partici-

pElttion. Generally, management has shown a willingness to

ccnnnuinicate this type of information.

In addition to planning what should be communicated,
arl €>ffective program will stipulate who should be informed.
1Wa313r supervisors seem to think that telling everybody every-

thingimmediately is good communication. This type of all-

\

T 5W. F. Rockwell, Jr., ”How Much Should A President
e’1~1fl’f Dun's Review and Modern Industry, Vol. 65, No. 2322

(IIEEEJruary, 1955), A8.

Yto 6Raymond Peters, Communication Within Industry (New
IFLC: Harper and Bros., 19A9), p. 167.

inclusive communication will ultimately reach a point of
diminishing returns in which people who are not concerned
will waste many work-hours wading through reams of written

material. "Communications should be directed to the right

\1

people at the right time." This directed flow also recog-

nizes the problem of status in a work group; emotional
conflicts easily arise when a superior does not receive the

communication ahead of his subordinates.

In the practical application of vis-a-vis communi-

coation, the supermarket manager is an important link between

erxecutive and employee. He is in an ideal position to relay

iiiformation to employees and can immediately clarify any

aunbiguous or confusing statements. He is in an excellent

twosition to study employees and their problems, their
stoinions and ideas, and can therefore transmit valuable

iriformation upward to management. In the ensuing discussion

le various communicative techniques and media, the general
”manager's role as a communicator will be more clearly defined.

To supplement the vis—a-vis method of communicating
Cialfliward, many companies have implemented one or more of

trie’ following types of communication media:

Annual Reports to employees and/or stockholders

 

l.
2. Letters and Newsletters
3. Payroll Inserts
A. Employee Manuals
_~_“‘ .
7R. J. Simpson, ". . . But Why Wasn't I Told?,"

§EHE’jirvisoryManagement, Vol. 2, No. 3 (February, 1957), 8.

61

Posters
Bulletin Boards
Booklets and Pamphlets
Company Publications

oo\1 (I\U7

An important point to remember is that the more pop-
ularly used media are not necessarily the most effective.
A recent su vey indicated that although management consid-
ered morale posters, "canned" pamphlets and payroll inserts

least effective media, they were used by more than fifty

Ioer cent of the companies surveyed.9

Annual reports—--The annual report is management‘s

 

”'report card“ for the year and the most important single
ccnmnunication with the owners.10 More businessmen are

txeginning to appreciate the importance of these reports in

toransmitting information to the stockholders. Accordingly,

eminual reports are being ”dressed up," as it were, with

pfiootographs, diagrams, bar charts, multi-colored print, and

tlie like, to further stimulate stockholder interest.
Many companies are also making these reports (or less

eXpensive facsimiles) available to employees. Some firms

plhapare special reports with emphasis placed on the rela~

tj.Onship of the employee to the company. "For example, net

\

 

8”Does Your Communication Pro ram Measure Up?," The

MEEEfiggement Review, Vol. XLV, No. 5 May, 1956), 400.

P 9“Downward Communications: A Survey of Company
I7“<E’~<2'tices,'" The Management Review, Vol. XLV, No. 5 (May,

1956), 3AA.

R lOThomas Kenney, ”The New Look In Annual Reports," Dun's
.J§:E;;ew and Modern Industry, Vol. 69, No. 3 (January,1957TTEET

62

profits per employee, annual wages per employee, capital

investment per employee, are shown." When tailored to

theparticular‘audience which is being sought, the annual

report can become an effective medium to be utilized as a

tool in the organization's over—all communication program.

Letters and newsletters---Some companies transmit

letters through the company mail to announce special news,

such as changes in executive personnel, purchase of new

stores and impending contests. The information contained

ir1 these letters is then relayed to store employees by the

suipermarket manager.

Letters from the president to employees‘ homes have

loet:ome a popular communication medium. Ideally, this tech—

rlitque tends to elevate the worker‘s status by making him

Fewel.as though he is essential to company objectives. Un-

fYDrfitunately, too many companies decide to indicate an inter-

esst in workers' welfare only when labor problems arise.

TVfieui, they suddenly send out personal letters, wooing the

enUDlxoyee and his family. The workers scoffingly characterize

and lacking

A

tflifs "new interest” as being hypocritical,

SinCerity--the "love me suddenly" approach. Management

\

 

*7

ll
Peters, op. cit., p. 51.

CC) l2R. Newcomb and M. Sammons, "The Sins 3f Employee
rnLrnunioation," Dun‘s Review and Modern Industry, Vol. 69,

NO - 6 (April, 1957), 112.

63

H

cannot expect to reap immediate benefits by "communicating
in this manner. Workers must be shown, through day-to-day

management activities, that they are important to the firm

and that their needs and interests are respected. Manage-

.ment's messages must be sincere, consistent, and insistent.

Payroll inserts---Closely related to the procedure of

 

rmailing letters to employees' homes is the practice of
irnserting a printed slip into the worker's pay envelopes.
Geruerally, these inserts treat on information related to
tbme employee‘s pay check, such as insurance, union dues,
ccnitributions, or bond deductions. A serious disadvantage
of‘ the payroll insert is that it must compete for attention

1Nith a more interesting piece of paper--the pay check.

Employee manuals---Many food retail chains use various

 

kimxis of employee manuals or handbooks. One type of hand—
b30klists company policies and is usually presented to the
new ewnployee. The Grand Union Company has published manuals
Outlixiing operating techniques and policies in particular
departments, such as a Meat, Dairy, or Produce Manual.
TheSE‘ manuals are important as transmitters of company
pOliCIies and as training devices.

To be effective, these manuals must be freely access-
ible tno employees. Each supermarket could be provided with
two COpies of each manual, one for the store office and the

Otner‘ to be kept in the appropriate department. The employee

64
manual should be written as an informal document--written
from the employee‘s rather than the company's viewpoint.

The terminology which employees understand may be quite
different from the wording of a president's resolution or
a legal document. An example of such differences follows:

Original wording:

The company shall grant every employee who has com-
pleted one full year of continuous employment, a vacation
period of one week with pay for forty hours at his basic
hourly rate. Vacations shall be scheduled in such a
manner as not to interfere with operations or require
the hiring of additional personnel.

Revised for the employee manual:

If you have been with us for a full year, you are
entitled to a full week's vacation with pay during the
vacation season. When you are eligible for a vacation
tell your foreman when you‘d like to take it, and he
will do his best to meet your wishes, provided it doesn‘t
conflict with vacation schedules of other employees or
with production requirements.1

An important consideration is that employees be in-

finnned of the availability of these manuals. Often, these

maniuils are distributed to the supermarket, stored there

in Scnne remote corner never again to be seen by human eye.

Posters---Another medium used for in—store communi-
caticnq is the poster. Several posters dealing with store
safetjy or courtesy may be found in the typical supermarket.

ManU-facturers, such as the Scott Paper Company, provide food

\

Pei 13Lee H. Hill, "How to Organize for Good Employee
1v atiuons," Business Management Handbook, ed. Jacob K. Lasser
ew York: McGraw-Hill Book, Co., 1952), p. 3143.

 

retailers with free,colorful posters dealing with health,
safety, and housekeepinG.

In some instances, poster campaigns have proven inef—
fective since many employee have formed a stereotype of
posters as propaganda tools, conveying a trite message
abounding with cliches. Management may have relied too
heavily upon poster campaigns, believing that such programs
are a panacea for poor communication.

Nevertheless, colorful and interesting posters,
strategically located in the supermarket, can be a helpful
and inexpensive communication tool. They can convey messages
quickly and dramatically in terms easily understood by all.
While posters should not be relied upon as a sole communi—
cation medium, they can be effective in a well-balanced

program.

Bulletin boards—-—According to a survey conducted by

 

the Esso Standard Oil Company, "bulletin boards and posters
are the most commonly used communication media in industry,
" 3 - ° 1 "1L“

used in ninety—Six per cent of the companies surveyed.
Bulletin boards are generally used to keep workers informed

about rules, regulations, educational items, employee

benefits, and management personnel changes.

1a
Peters, op. cit., p. 70.

66

At this point, it might be informative to list a few

 

basic rules given by Roger Bellows in his book, Psychology

 

of Personnel in Business and Industry, for the use of

bulletin boards.

Any message on the bulletin board must be brief.

1 0
it should aim at a maximum reading time

Arbitrarily,
of thirty seconds.

2. All such messages must be current; they must be
"Flash" messages related to immediate events or immediate

future action.

3. Any such message should tell something the
employee is interested in learning--about working sched-
ules, wages, rules, and privileges.

A. These messages should be confined to those which
assist the employee in guiding his positive action,
such as coming to work5 planning a vacation, or regis-

tering for the draft.
A fifth stipulation could be appended to this listing.

ldoe> manner in which the message is written is important.
Vfloihle a notice should be clear and concise,it should also
Corltain a personal touch which will stimulate employees to

feeel. that there is a real human being and not a legal mech-

ariismn.in top management‘s office. In addition, the board

SrKDLle be kept up to date and as ”uncluttered" as possible.

Booklets and pamphlets---Another method of transmitting

XDfYDInnation to employees is through the use of booklets and

pamIDFLlets. These are usually handy pocket-sized publications

\

15Roger M. Bellows, Psychology of Personnel in Business
(dustry (New York: McGraw-Hill Book Company, l95A),

and If
WEL—

 

\1

O\

which may deal with a plethora of topics ranging from

retirement benefits to the employee's role in the community.

Some organizations compile a series of booklets to be

presented the new employee. This material normally includes

information concerning insurance and hospitalization benefits

safety measures, company history, policy, philosophy, et

cetera. Such material must be presented in an interesting

yet simple format lest it becomes stereotyped as so much

"gobbledygook." When employees discount these booklets as

"mere propaganda," management's message will not be com-

rnunicated. When this happens, the firm could have spent

‘the appropriation for grocery sacks to better advantage.

Company publications---Practically every sizable food

ordain has, at one time or another, published some form of

ewnpdoyee magazine or house organ. Three-fourths of all large

Ccnnpanies now have house organs and some have them by the

CLozzen. Du Pont has seventy-five company publications. "The

lltjlantic and Pacific Tea Company's 'Woman's Day,‘ which
b6?8nan as a company publication, has a circulation of three

million, seven hundred fifty thousand readers and an adver-

/.

ifissjoog revenue of over nine million dollars." The company

EyukDJHication has been both widely used and, at the same time,

\

 

16"How To Play the House Organ," Fortune, VOl- L: N0-

10 (October, 1952), 11111.

misused. Too often, these magazines skillfully evade

questions that are on the worker's mind and dwell largely

On quality, productivity and the need for teamwork.

The contents of some company magazines or newspapers

Inay be described without even reading them. A typical pub-

lication might contain a message from the president, an
article on the company's progress, some news stories several
days or weeks old, pages of social notes, gossip, a few
Jokes, a badly drawn cartoon, and an inspirational quotation

Or tvwo. This stereotyped format led observers to label

compauiy publications as "Paragons of Pap and Paternalism."l7

Today, this unflattering concept has been revised to

Some eaxtent. A great many house organs have "gone slick."

They rrow seek to reach various groups with different publi-

catioris. The firms may issue ”internal" publications for

employnees; “external" for dealers and/or customers; "external-

interuaail" for everybody. To further improve the effective-

ness c>f' these publications, many organizations are hiring

experixericed and qualified journalists.

Iridications are that workers want to learn about

plans, Ebolicies, and operations that directly affect their

J0b3~ “Idoey want "usable news" of general interest which

tn“ \ ‘ , . o
“3U1G k>€> :reao in a regular daily newspaper. In view of this,

 

 

69

it is unfortunate that, all too often, the only knowledge

that a company gives its people is either openly propagan-

distic or purely social. Paul Cifrino, General Manager of

Supreme Markets located in Metropolitan Boston, contends
that employees want to read articles dealing with business

matters. The following is an illustration substantiating

his argument:

Each large supermarket contains half a dozen key
executives--the manager and the department heads; and
also there are a number of general supervisors. At
certain seasons, it is a problem to get a series of
digfferent bulletins, all on the same theme, to the
riéght people in each of the supermarkets in the chain.
Scnne years ago, in order to avoid overlooking anybody,
we gprepared a general sales bulletin of about twenty
pegges with different sections for each department,

anti sent a copy to all executives and supervisors.

We expected, of course, that the people in a given
degoartment would skip over material which did not apply
to ‘them. Instead, everybody read everything. The fact
thEit each department felt it was under public scrutiny
adtiewj to the interest. Ever since, we have sought to
gixxe~'broad circulation to all sales and operating
bulfiletins. We make no attempt tO'"glamorize" the
rm1te>rial, yet it continues to be studied very closely.
TNN? zeal of the worker for simple étatistical data on
his gparm of’the Job is boundless.l

MUoile the preceding statement furnishes interesting
infornuat:ion concerning bulletins as an effective communi-
cation medium, it further indicates that articles dealing

WIUQTHCDrwe factual businesslike matters will be read by the

worker?. 131 addition, employees will read articles dealing

with tDpies in other than their own particular sphere of

..__~______‘~______
lEB ‘
Paul Cifrino, "The Mainspring of Business Leadership,"
siness Review, Vol. 34, No. 5 (September-October,

Harvard~ 13
W

\1
Ci)

interest. Worker intereSt is nOt aroused by "educating"

them on the economic facts of American life. At any rate,

no one yet knows what kind of information is most effective

in selling the firm and its management to the employees.

In presenting these commonly used media, emphasis has

been placed, on communications rather than communication.

Communications are employee magazines, newsletters, and the

like while, as previously mentioned, communication is the
Complex, dynamic interaction that takes place every minute
On time job. These media are worthless without an effective
daguvto-day philosophy of communication. nfortunately,
man;' executives see communication as a gimmick, to be taken

Off 1:he peg and used as needed. ”Too few see it as the

heart’ of all business and industrial operations, the most

19

imporvtant tool management has for getting things done."

An important point to remember is that the selection

Of a ccmnmunication plan depends upon the particular firm's

reSources and objectives. An effective program is not one

Where:ir1 all types of media are used and the rationale seems

An important

to be '"INhat is needed is more communication."

COHSicieexoation is that all groups cannot be served with one

mediuun . By expecting one medium to reach a diversified

N

l. v
F 9Frank Fischer and Lydia Strong, 'Communication: ‘X
tSCtor~' :Ln.the Management Job," Effective Communication on
e J013_, ed. M. Joseph Dooher (New York: American Manage-

ment Assssc>c1ation, 1956), p. 16.

7l
audience, management is trying to hit several targets with
one bullet. More progressive firms use various media to
reach different groups, such as stockholders, employees,
employees‘ families, suppliers, and customers.

An excellent set of principles for effective communi-
cation has been devised by Frank Fischer and Lydia Strong
and published by the American Management Association.
Basically, these rules are applicable to the manager who
is communicating downward.

1. Seek to clarify own ideas before communicating.

The more systematically we analyze the problem or idea
to be communicated, the clearer it becomes. . "I
don' t advise you ” says Clarence Randall, "to start
talking until you have begun thinking. It' s no good
opening the tap if there is nothing in the tank."
Management communications commonly fail because of

the inadequate planning. Good planning must con-

sider the goals and attitudes of those who will receive
the communication and those who will be affected by it.

 

2. Examine the true purpose of each communication.
Before you communicate, ask yourself what you really
want to accomplish with your message-—obtain information,
initiate action, change another person's attitude?
Identify your most important goal and then adapt your
language, tone and total approach to serve that specific
objective.

 

3. Consider the total physical and human setting
whenever you communicate. Meaning and intent ana con—
veyed by more than words alone. Many other factors
influence the over-all impact of a communication, and
the manager must be sensitive to the total setting in
which he communicates. . . . Like all living things,
communication must be capable of adapting to its en-
vironment.

 

 

A. Consult with others where appropriate, in planning
communications. Frequently, it is desirable or necessary
to seek the participation of others in planning a com-
munication or developing the facts on which to base it.

Moreover, those who have helped plan your com-

munication will give it their active support.

 

 

5. Be mindful, while you communicate, of the over-
tones as well as the basic content of the message.

Subtleties of communication often affect a listener's
reaction to a message even more than its basic content.
Similarly, our choice of language--particularly our
awareness of the fine shades of meaning and emotion in
the words we use--predetermines in a large part the re-
actions of our listeners.

 

 

6. Take the opportunity, when it arises, to convey
something of help or value to the receiver. Consider—
ation of the other person's interests and needs-~the
habit of trying to look at things from his point of
view--will frequently point up opportunities to convey
something of immediate benefit or long-range value to
him. People on the job are most responsive to the
manager who takes their interests into account.

 

 

7. Communicate for tomorrow as well as today. While
communications may be aimed primarily at meeting the
demands of an immediate situation, they must be planned
with the past in mind if they are to maintain consistency
in the receiver's view; but most important of all, they
must be consistent with long-range interests and goals.

 

8. Be sure your actions support your communications.
In the final analysis, the most persuasive kind of com:
munication is not what you say but what you do. When a
man's actions or attitudes contradict his words, we
tend to discount what he has said-—and perhaps to view
it as an attempt to mislead us. For every manager, this
means that good supervisory practices--such as clear
assignment of responsibility, adequate delegation of
authority, fair rewards for effort, and consistency in
policy enforcement-—serve to communicate more than all
the gifts of oratory.

 

9. Follow-up your communication. Our best efforts
at communication may be wasted, and we may never know
whether we have succeeded in expressing our true meaning
and intent, if we do not follow up to see how well we
have put our message across. This we can do by asking
questions, by encouraging the receiver to express his
reactions, by follow-up contacts, by subsequent review
of performance. Make certain that every important
communication has a "feedback" so that complete under-
standing and appropriate action result.

 

10. Last but by no means least: Seek not only to be
understood but to understand--be a good listener. . . .
Listening is one of the most important, most difficult--

73
and most neglected--skills in communication. . . . The
complex art of listening demands concentration not only
on the explicit meanings anOther person is expressing,
but on the implicit meanings, unspoken words, and under-
tones that may be far more significant.20

The ninth and tenth principles can be applied to the
discussion of upward communication. Both these concepts of

following through and listening will be examined in the

ensuing section.

Upward communication. Management is being constantly

 

exhorted to listen. Recently, many observers have stressed
the philosophy that communication is a two—way street.
Enlightened executives readily agree that communication must
be facilitated in both a downward and upward flow. These

I!

men appreciate the many values that accrue to those who

listen willingly, who urge their subordinates to talk freely

n21

and honestly, Overemphasis on upward communication,

though, could conceivably result in a situation where manage-
ment is spending all its time explaining actions and policies
instead of formulating them.

Effective upward communication affords many benefits
to both management and the worker. Earl Planty and William

lflachaver of Johnson and Johnson listed several benefits of

 

2OIbid., pp. 23-25.

21Earl G. Planty and William Machaver, "Stimulating
thoward Communication," Effective Communication on the Job,
6%3. M. Joseph Dooher (New York: American Management Associ-

ation, 1956), p. 1A2.

74
good upward communications which are equally applicable to
the food chain organization.

1. It is through unobstructed communication upward
that we learn how fertile and receptive the soil is for
communications downward. Many of management's best
ideas are sown on cold and sour soil not tilled and
prepared in advance for the information.

2. If we are to gain understanding and full accep—
tance of our decisions, subordinates must be given the
opportunity to participate in their making, or at least
to discuss the merits and defects of proposed action.
Appreciation and loyalty result from self-expression in
a situation in which the subordinate feels there is
personal sympathy toward him and his views.

3. From upward communication, we discover whether
subordinates get the meaning from downward communi-
cation that is intended by the superior. It is highly
unlikely that a subordinate left completely to his own
interpretation will understand a directive or an action
just as the originator intended it.

A. Effective upward communication encourages sub-
ordinates to offer ideas of value to themselves and
the business. The need here is to devise and use every
form of upward communication that will draw these ideas
from all who are qualified to submit them.52

Upward communication also helps to satisfy basic

human needs. All subordinates look upon themselves as having
inherent worth at least as great as the personal worth of
their superiors. This is true even if they feel their own
inferiority in managerial ability. This sense of personal
worth is injured when workers do not get a chance to express
their ideas--when they are merely told, without opportunity

to comment or reply. This principle applies even if the

 

22 J ,
Ibid., pp. 142-143

 

telling is very well done. A district manager, who asks a
store manager to express his reactions to a new idea,
develops a close tie with his manager and will soon gain
his respect.

Despite these apparent advantages in upward communi-
cation, surveys indicate that management does not really
seem to be listening. In 1953, only fifteen per cent of
all manufacturing concerns maintained suggestion systems.
A study of two hundredeighty-seven.firms employing about
forty-five thousand white collar workers, revealed that
eight per cent of the companies employing nineteen per cent

. 23

of the workers used attitude surveys. Executives have
cited several reasons for not listening. First, they dis-
trust the ability of supervisors to relay information from
the workers. Secondly, these executives feel that unions,
as a medium for upward communications, are not reliable in
relaying workers' feelings. Finally, it is felt that employees
are not capable of expressing themselves through these devices.
These executives generally agree that there is a need for
‘bettei*information but_they flatly reject major ways of
obtaining that information.

Barriers to effective upward communications are not

Iwestrdcted to the three aforementioned problems. Another

 

23Dalton E. McFarland, "How Management Can Improve Its
Lijitening Technique," Business Topics, Vol. 1, No. 2 (Sept-

ember, 1953)) 5-

76
significant barrier is the physical distance between employer
and employee. In a food chain division, the distance between
headquarters and a particular unit may be several hundred
miles.

The complexity of the organization is another impedi—
ment to good upward communication. Food chain management
is no longer a one—man affair. Buyers, merchandisers, sales
promotion men, specialists in real estate, transportation,
accounting, personnel, and many others are essential to the
operation of a modern food chain. A problem resulting from
this complex organization is the editing and filtering of
information as it passeSLg>through the various channels.
Employees have a tendency to edit information and report
only what they feel the supervisor wants to hear. This
handicaps the management function since policies and deci—
sions may be formulated on half-truths and untruths passed
on from lower levels.

Other barriers might be the hesitancy of lower level
supervisors to cooperate since they resent having their
Inanagement practices exposed. They view upward communi—
cation techniques as evaluative instruments used to check
'upon.the quality of their supervision. One of the strongest
deteqwents to upward communication is the failure of manage-
Inent to act on undesirable conditions previously brought to
;its attention. The result is that "the workers lose faith

txath in the sincerity of management and in the value of

77
communication."2u Finally, listening is often considered
to be too time-consuming. Many executives argue that they
are too involved with daily problems and responsibilities
to set aside adequate time for listening to their subordin-
ates' ideas, reports and criticism. Nevertheless, "many
time-consuming problems could be minimized or eliminated if
superiors were free to listen to their employees, for in
listening, they can discover solutions to present problems
or anticipate causes for future ones."25

Of course, there are also several barriers involving
employees which may reduce the effectiveness of upward com-
munications. Employees in many organizations are not free
to intrude upon a supervisor's time for discussing a problem.
Neither the facilities nor the talent are as readily
available to the employee for upward communication as they
are to management for downward communication. In addition,
employees tend to view the problem solely from their own

orientation and intermix facts with personal opinions and

prejudices.

Methods and media---Various media have been developed

 

to stimulate and improve the upward flow of communications

in the firm. To list a few, they are:

 

2A
Planty, op. cit., p. lflé.

251bid., p. 1A7.

 

78
1. Social Relationships
Grievance Procedures

Employee Meetings

JZ‘UURD

Attitude Surveys

5. Suggestion Systems

Sympathetic listening in the many day-to-day informal
contacts both within and outside the workshop is by far the

most effective method of learning what subordinates think.

Social relationships--—The social gathering or party

 

is sometimes used by management to effect informal, casual
communication between employer and employee. Christmas
parties, picnics, participation in recreational programs
and planned annual outings are examples of this communi-
cation technique. A major drawback to the use of social
gatherings is the unfortunate tendency on the part of both
employer and employee to "let their hair down” too far.
Often, something may be said or done which reflects the true
feelings of an individual but is hardly conducive to good
employer-employee relations.

The Jewel Tea Company of Chicago holds a three-day

convention in some major city each year for its store and

 

2
6"DOes Your Communication Program Measure Up?,"
op. cit., p. 400.

meat managers._ These men meet with other members of the

.7

. . 2!
management team to exchange ideas and information.

Another technique in assembling employees for communi-
cative purposes is Grand Union's annual "Clerks' Day."
Promising employees are selected to fill executive positions
for one day, thereby learning some of the problems and re-
sponsibilities faced by management.28 Learning how each
piece of the organization fits into the broad pattern has
a tendency to further employee understanding and improve

cooperation.

Employee meetings---Employee meetings are another

 

useful communication tool. Generally, the geographical
separation of each retail unit precludes the use of mass
Ineetings for communication in the food industry. Small
group meetings are more easily arranged. Group discussion
meetings, labor—management committees and counseling can
be used effectively for both downward and upward communi-
cation.

The disadvantages of most employee meetings include
'Wiigh cost and the possibility that lines of authority may
29

be> circumvented." In addition, supervisors, conducting

 

27Personal interview with Merrill Morse, Vice President
of'.Jewel Tea Company, April 5, 1957.

28Personal interview with Lansing P. Shield, President
of‘ the Grand Union Company, February 1A, 1957,

29Peters, op. cit., p. 78.

80

these meetings require a high degree of skill to stimulate
employee participation and discussion.

Supervisors are sometimes expected to communicate the
results of these meetings upward to top management. If, at
regular intervals management members are requested to
report on employee attitudes toward specific subjects, they
might be motivated to listen more attentively to employee
expressions and opinions. This method may serve a two-fold
purpose. First,it may foster the idea that management is
sincerely interested in the employee and secondly, it
encourages department heads to listen and interpret atti-
tudes more closely. This philosophy of watchfulness coupled
with employee meetings helps management discover possible
sources of unrest before they become grievances and helps

department heads prepare for greater responsibility in the

future.

Grievance procedures--—The grievance procedure is an
important medium in getting ideas upward. However, this
procedure cannot be expected to do the major job. A primary
goal of upward communication is an awareness of the normal
dayeto-day attitudes and ideas of employees. A grievance
Inay be considered an "abnormal method of upward communi-

cation, the basis of which is misunderstanding."3O

 

O
3 Planty, op. cit., p. 156.

 

 

 

81
Many excellent articles have been written concerning
the handling of grievances.31 One study, in particular,
gives some excellent advice on handling grievances in both
union and non-union situations. A synopsis of some of these
principles that will be helpful in handling grievances with

non-unionized employees are:

1. Try first to put the employee at ease.
2. Be courteous. Have real consideration of
other people's wishes, situations and feelings.
3. Tempers must be controlled, regardless of
the employee's attitude.
Always begin with a question.
Try to get all the facts.
Give the employee ample opportunity to talk.
Keep an open mind.
Consider all the evidence.
Follow up with a second interview, if necessary.
10. If it is necessary to reprimand, remember that
there is only one justifiabhepurposeitu1a.reprimand
and that is to be constructive.
ll. Only when the person has indicated that he
has talked himself out is the interview over.
12. Finally, keep a record of ghe grievance
interview for personal reference. 2

\OCDNOU‘IJ?

In the case of a unionized organization, the technique

is modified to some extent. The Aluminum Company of America

 

31The American Management Association has compiled a
series of articles in one text, entitled Effective Communi-
cation on the Job. Two articles of particular interest
dealing—With_g?T5vances may be found in Chapters XX and XXI.
They are a Western Electric study, "Complaints and Griev-
ances; Getting at Causes," and a report by D. M. Welton of
(General Foods, "When an Employee Has A Grievance."

32D. M. Welton, "When an Employee Has A Grievance,"
ISffective Communication on the Job, ed. M. Joseph Dooher
(Tfiew York: American Management Association, 1956), pp.
215-217.

has suggested four major points for handling grievances
properly and without delay in a unionized firm. They are:

1. Receive the Grievance Properly.

Give the man a good hearing

Ask the man to repeat his story
Repeat the essentials

Tell him when he can expect an answer

CLOU‘SD

2. Get the Facts.

a. Remember to handle the case from the begin-
ning as if you expected to defend your case
before an arbitrator

b. Check every angle of the complaint

c. Check the union agreement

d. Check company policy-

e. Examine the employee's record

3. Take Action.
a. Make correction if the company is wrong
b. If company is right, maintain the decision
but explain it to the employee
c. Pass on all facts to the next level as prep—
aration for the next step in the grievance
procedure

A. Follow Up.
a. Make sure plan of action was carried out.33

Grievances should be received with an open mind, free
from self—consciousness and class distinction. While
settling grievances is not a particularly pleasant task for
the supervisor, it does provide an opportunity for developing
cxmnmon understanding between employees and management.
.Iustified grievances may also indicate weaknesses in the

cmxnpany's practices and policies.

 

33”A Four-Step Approach to Handling Grievances,"
liffective Communication on the Job, ed. M. Joseph Dooher
(Thaw York: American Management Association, 1956), pp. 217-

21S).

83

Attitude surveys---The attitude survey is an important

 

method/of finding out what employees think. On the basis of
information obtained through a survey, it may be possible
for a firm to remedy situations which are found to be causing
employee discontent. In addition, the survey may, itself,
aid in reducing discontent by allowing employees an oppor-
tunity to "let off steam" and also by indicating to the
employees that management is really interested in listening.

"The commonly used methods of accomplishing a survey
may be broadly divided into two approaches, the question-
naire method and the interview method."34 The questionnaire
is probably more widely used, principally because of its
ease of administration and its relatively low cost. The
questionnaire makes possible the coverage of specific items
in a uniform fashion, thereby facilitating the gathering and
tabulating of data. The questionnaire, however, may be so
specific that the employee feels restricted and is unable
to discuss attitudes which may be pertinent to the situation.
'This handicap may be partially overcome by leaving adequate
space at the end of the question so that the employee can
erite additional comments.

The interview is another method which may be used to

dEVtermine employee attitudes and opinions. The interview

 

34Robert Dawson, ”Human Behavior: Feeling the Pulse,”
Pségghology of Industrial Relations, ed. C. H. Lawshe (New
ifixrk: McGraw-Hill Book Company, 1953), p. 62.

84
techniques may range from the non-directive interview, in
which the employee is encouraged to discuss whatever may be
foremost in his mind, to the formalized interview, in which
the interviewer follows a list of questions and receives
simple-choice responses. The latter type ”may be similar to
the printed questionnaire except that the questions are
used to inquire into specific areas which may then be dis—

n35

cussed in greater detail.

The non-directive interview may become a "tailor-made"
questionnaire for each employee. This interview requires
a trained and skilled interviewer who can probe for atti-
tudes and then use the information to draw valid conclusions.
This interviewer best performs his function by listening
rather than by giving free advice and reassurance. By
allowing the individual to talk freely and release pent-up
tensions, he is clearing the atmosphere so far as the
employee is concerned and he will perhaps be able to deter-
Inine the underlying causes of this tension. If there is
some change in the work situation that can bring relief or
lessening of this tension, the interviewer is then in a
jposition to communicate his information to top management
where'the required changes can be inaugurated.

Some firms, notably Sears, Roebuck and Company, make

tise (of the questionnaire and interview in combination.36

 

35Ibid., p. 79. 361bid., p. 80.

85
The questionnaire is used first "to take the temperature"
of the organization. If the responses indicate employee
problems, an interviewing team is brought in for a more
thorough study of the situation. The questionnaire locates
the problem area and the interview is intended to determine
the ”why" of any discontent.

These attitude surveys can be an effective means of
securing upward communication. They are a valuable supple-
ment to the everyday personal contact between the employees
and management. Of course, when management receives the
results of these surveys, it should use this information

in its policy-making and personnel practices.

Suggestion systems—--Suggestion systems have come into

 

the limelight in recent years as a method of discovering
and using employees' ideas. Much has been written about
how to introduce and utilize a suggestion system. The
widespread publicity and elaborate ”success stories” per—
taining to suggestion systems may have glossed over some
serious problems encountered in implementing such a system.
The fact that seventy per cent of all suggestion systems
initiated in recent years have failed leads the writer to

believe that these problems are of major importance.37

 

37"Stimulating WorkerS' Suggestions,‘ Supervisory

Management, Vol. 2, No. 6 (May, 1951), 11.

 

 

86

Generally, most supervisors feel that suggestion boxes

are not paying their way. They list the following as common
complaints:

1. Employees submit too many little ideas that
don't pay off.

2. Few employees take the time or trouble to
formulate an idea fully.

3. Employees are more interested in improving
working conditions than efficiency.

A. Employees often resent it if their pet sug-
gestion is rejected.

5. Even if the company accepts an idea, the
employee may be unhappy about the size of
aWard or bonus he receives.

6. Too many suggestion systems suffer rom lack
of control and inadequate records.3

Another problem resulting from suggestion systems is
the fact that they detour the normal channels of communi-
cation and thereby violate a fundamental management principle.

Despite these criticisms, a well administered plan
can provide worthwhile benefits. An effective suggestion
system can create better employee morale. In addition, it
.can pay off in real savings. While only thirty per cent of
all employee suggestions turn out to be valuable, this
figtue, converted to dollars and cents, represents a sub-
steu1tia1 savings. In 1955, General Motors received 228,437

smiggestions and paid out over three million dollars. In

 

8
3 Ibid., pp. 11-12.

87

1953, General Electric awarded six hundred eighty thousand
dollars in prizes and, in lQSu, Ford Motor disbursed seven
hundred fifty thousand dollars.39

The National Association of Suggestion Systems reports
that its eight hundred association members accepted two
hundred sixty thousand employee suggestions in 1955 and
paid out seven million dollars in awards. Since actual
savings are estimated at ten times their cost, employee
suggestions saved industry approximately seventy million

dollars in 1955 alone.u0

Perhaps, then, the weaknesses of a suggestion system
are predominantly attributable to faulty administration.
In order to develop a sound plan, management must commit
itself to a very thorough study of each suggestion. Both
the validity and the cause for a suggestion must be examined.

In implementing the suggestion system in a supermarket
operation, the store manager plays a critical role in deter-
mining its success. He can guide the employee, when neces-
sary, on how to write up suggestions. He may help screen
out impractical suggestions before they reach higher manage-
ment. In addition, he can cushion the blow of a rejected
idea.and encourage employees to try again.

The store manager, in turn, must be shown how he, as

well as the employees, benefit from a suggestion system.

 

MO
391b1d., p. 12. I

(3‘
H.
O;

 

 

88

He must be instilled with the thought that employees have
valuable ideas which may help him operate his market more
profitably. The store manager must be recognized along
with the employee submitting a valid suggestion. This
recognition is effected by having all suggestions answered
by an executive above store level. In this way, managers
may be encouraged to seek suggestions from their employees.
Giving the employee an opportunity to bypass the next
level of supervision may encourage him to express himself;
but it must be kept firmly in mind that the ultimate objec-
tive is to direct the communication through rather than
around the store manager. In this way, emphasis can be

placed on the quality rather than quantity of suggestions.

Open-door policy~--Any discussion of upward communi-

 

cation inevitably leads to mention of the so-called open-
door policy. This communication technique is claimed by
rnany executives as evidence of their democratic philosophy.
This method ignores the established procedure for handling
ggrievances since an employee can circumvent the chain of
command by approaching a superior on a higher level than
lqis immediate supervisor. "The typical open—door policy
<oreates havoc in most of the concerns where it is tried,
bewzause a company cannot build respect for the chain of

conunand with one policy and tear it down with the rest."ul

 

ulNewcomb and Sammons, loc. cit., p. 112.

89

A district supervisor, in a chain where this policy is
practiced, might be forced to spend a substantial portion
of his work day in handling grievances which could normally
be resolved by the store manager.

"The boss's open door may score a point as a symbol,
but that it actually aids communication . . . is rather
dubious."42 Do the employees really come streaming through
that open door? If they did, the executive would soon
tire of such a policy when he finds his time occupied with
explaining decisions rather than making them. In addition,
employees may not be overly eager to visit with a top
executive. There is a certain stigma attached to the

employee who becomes "buddy-buddy with the bosses.”

Horizontal communication. In recent years, executives
have become aware of the importance of communication within
the management group. Previously, emphasis was placed prim-
arily on communication through the management group without
regard.for the necessity of communications within, as the
rmeans whereby the organization's efforts could become more
effective.

The relatively recent awareness that this horizontal
ccmununication is of vital importance to the continued ef-

waztiveness and efficiency of the firm may be traced to the

itillowing causes:

 

ugRobert Sheehan, "Business Manners," Fortune, Vol.
LV, No. 1 (January, 1957), 206. ——

Jill \ ffl‘. l1

90

1. Many organizations gave impetus to the horizontal
communications movement as a result of top management's
desire to improve communication throughout the firm.

Many top executives agree that the lower level of manage-
ment (general managers) is an especially critical link

in the organization‘s communication system. The general
manager should be able to represent management to the
worker in relaying organizational policies and other
communications required by the worker.

2. An increase in the organization of rank and file F‘
workers has also increased the need for more effective
communications in the management group. The union, in
many instances, developed communication channels within ,
itself that functioned more efficiently than management's. ;
A union steward, as a result of inefficient management 3‘
communications,often received the information before the f

I

lower levels of management.

3. Some organizations felt, too, that the promotion
of rank andfile employees into the management structure
posed a problem resulting from their (employees) union
background. The problem centered around integrating

the labor-management concepts of new management personnel
to include agfair and workable view of management's

philosophy.

All of the‘foregoing factors point up the need for
increased organizational attention toward improving the
intra-management communications system as a means toward
increasing efficiency and effectiveness.

A popular tool for intra-management communication~
(exxcluding the day-to-day personal contact of supervisors)
113 the conference. This method may be employed in various
vways to serve different purposes. Human relations training

Inagr be an objective of the conference method. Other meetings

 

43William w. Mussman, Communication Within the Manage-
rnerrt Group (New York: National Industrial Conference Board,

1947), p.1.

 

 

91
may be designed to communicate specific information about
the organization. Perhaps the most common type of con-
ference utilized in the food industry is the sales meeting.
Conferences may also deal with decisions concerning new
merchandise, space allocation, site selection, and the like.
Still other programs afford the opportunity of participation
for all management levels in the formulation and development
of personnel policies.

The question which logically arises at this point is
whether the use of conference methods is too time-consuming.
While this technique does require additional time, the
extra effort may be compensated by the cooperation and in—
creased efficiency in administration achieved through
management's participation and understanding. The added
emphasis on conference techniques leads the writer to con-
clude that many executives consider this method of communi-
cation worth the extra time and effort.uu

Conference programs should not displace the informal
day-to-day communication contacts within the organization.
Basically, the conference method should be applied as a
supplement to an effective communication program.

The McCormick Spice Company has used a form of intra-

management communication known as "Multiple Management,"

 

quffective Communication on the Job, ed. M.Jfi Dooher
(New York: American Management Association, 1956) includes
articles on effective conference leadership. See: United
States Rubber Company, "How to Lead a Conference," Chapter
XXIV; Stanley Dulsky, "Improving Conference Leadership,"
Chapter XXV.

92
since 1932. This unique approach provides for three junior
'boards of directors, one for each office, factory and sales
function of the business. Original members of the junior
boards were appointed, but three new members are selected
every six months by means of merit ratings developed by the
members themselves. Eligibility starts at the supervisory
level. This approach extends active participation in policy
making and high-level management problems to junior execu-
tives and supervisors. In addition to facilitating intra—
management communication, this system also provides an

approach to supervisory development.

The grapevine. A discussion of communications within

 

thefood chain would certainly be incomplete without due ref-
erence to the grapevine. This amazing aspect of communication
never seems to break down as do other types of more formal
communication.

Since the grapevine is such an effective means of
disseminating information, why can't it be made to work for
management? According to Juliet Halford who has conducted
several studies on "grapevines," the news is spread among,
clusters of about two or three people. The news is kept
,going by a few "liaison individuals" who are job—centered
:hiformal leaders. They are intensely interested in anything

that may possibly affect their jobs or those of the people

93
with whom they work and they are quite vocal about it.u5
Why then can‘t management find these informal leaders and
see that they have the right facts and attitudes to pass
along?

At least one executive has used the grapevine to
ascertain employee reactions to an impending management
change.“6 Usually, the grapevine is thought of as unplanned
and uncontrollable, more likely to spread insecurity and
create tenseness than serve any useful purpose. Neverthe-
less, thissupermarket operator fed a rumor into the grape-
vine experimentally to check the acceptability of an
employee he had tentatively selected as department head.
This manager circulated the name of the young man as the
next department head and then, through feedback reports,
checked the acceptance or rejection of this man by the
employees.

This strategy, while successful on this particular
occasion, could cause serious repercussions. If the
employees discover that they have been misled in such a
Inanner, they could conceivably grow resentful at having been

'"used." 'A store manager who depends upon employees to screen

 

uDJuliet M. Halford, "The Care and Feeding of the
Grapevine," Supervisory Management, Vol. 2, No. 2 (December,

1956), 16.

46B. J. Speroff, "Grapevine Helps Pick Supervisor,"
Personnel Journal, Vol. 351, No. 7 (December, 1956), 12.

9M
promotions in this manner may suffer a loss of prestige and
respect.

A better understanding of how rumors incubate and
spread might suggest methods for their control. Rumors
travel only when the story has importance for both the
speaker and the hearer and the true facts are shrouded in
some kind of ambiguity. Most rumors that fly in the face
of fact can be traced to a breakdown in communication be-
tween management and the worker.

Robert Hershey, personnel director of the Bulova
Watch Company, suggests some measures which may be taken
by supervisors to curtail the flow of rumors. They are:

1. Keep normal communication channels open--rumors
flourish in the absence of reliable information.

2. Don't use the public address system to debunk
a rumor; this method seems to make the rumor
better remembered then the refutation.

3. Prevent idleness and monotony in the plant
wherever possible.

A. Debunk a rumor by presenting solid facts about
the topic rather than by trying to disprove the
logic of the rumor.

. Campaign against rumors and rumor-mongering.

O\U1

Educate supervisors in the dynamics of the rumor.

Distract people's attention from the rumor area.

N1

8. Don‘t just deny a rumor and leave it at that.
9

. Interpret the rumor as a psychiatrist would a
symptom. Ask yourself what anxiety or attitude
does this rumor reflect? Then try to relieve the

95

tension by,correcting the situation which
caused it.4

These precautions might be expected to reduce rumor-
mongering because those concerned are more in touch with

the facts and less unsure of themselves.

Conclusion

 

"If the people around you are spiteful and callous
and will not hear you,"wrote Dostoevsky in 1880 in The

Brothers Karamazov, "fall down before them and beg their

 

forgiveness; for in truth you are to blame for their not
wanting to hear you."il*8 This counsel is still good today.
The crux of the communication problem is getting one's self
understood. In communication, either oral or written,
"management must take the time and pains to make sure it

is reasonably understood."u9

In this regard, the lower level of management, the
store manager, is the key to what most experts consider the
best type of communication--the everyday face—to-face rela-

tionship. Accordingly, the manager should learn to develop

 

1

47Robert Hershey, "How to Control the 'Rumor Factoryt,'
The Management Review, Vol. XLVI, No. 3 (March, 1957), A5,

ABFyodor Dostoevsky, The Brothers Karamazov (New York:
'The Heritage Press, 1933), p. 2&6,

ugGeorge Smith, Jr., "Questions the Business Leader
Stkmild Ask Himself," Harvard Business Review, Vol. 34,
No. 2 (March-April, 1956), 1+9. -

96
habits of being precise in giving instructions. He should
tell why something is being done in a certain manner.50

In helping workers to keep daily facts in line with
appropriate feelings and worthwhile purposes, Paul Pigors
of the Massachusetts Institute of Technology says that
management has three major responsibilities:

1. To make the facts of work and of daily work
relationships such that they do not necessarily deaden
appropriate feelings. '

2. To communicate its own purposes about work, and
its feelings about the employment relationship, in such
a way that employees can understand and assent.

3. To develop better communication, so that the
suitable feelings and purposes of management and workers
can be ut to work to strengthen the bonds of group
living.

A good communication system is based on the particular
organization's specific needs. The answer to the communi-
cations problem is not more communication but a plan tailored
to the firm's needs. Above all, the program must be imple—
mented on a regular basis. Management cannot suddenly

initiate a communication program and expect satisfying

results immediately.

 

50The text Effective Communication on the Job, ed. M.
Joseph Dooher (New YOrk: AmeriEan Management Association,
1956) contains an interesting series of articles dealing
with the manager's day-to—day communications job. Chapters
VII to XIII discuss such topics as how to introduce new
employees, how to get an idea across, how to instruct and
give orders, how to reprimand, et cetera.

 

51Paul Pigors, "What Is Meaning and How Can We Share
It?," Effective Communication on the Job, ed. M. Joseph
Dooher (New York: American Management Association, 1956),

p. 51.

 

97
Finally, management must learn to listen attentively.

In this way, supervisors can learn what workers want and
how they react to various communication methods. Of course,
as has been pointed out in this study, there are definite
costs in establishing an intensive communication program.
Nevertheless, there are also costs accompanying poor com— We
munication, such as less efficiency and more labor disputes.
While this traditional rationale of self-interest is often
cited by executives, a few have come to look upon communi-
cation as a moral obligation--that of enabling the employee 3
to participate in a democratic organization. Whichever
motive he acknowledges, the businessman is still faced with
the basic task of improving the organization‘s communication

system.

CHAPTER III

INTEGRATING THE CHAIN AND THE COMMUNITY

Introduction

 

Within the past twenty years, public relations has grown
into an important profession in American Industry. The
press agent of yesterday has been transformed into today‘s
dignified public relations consultant. Many colleges and
universities now offer public relations courses and one,
Boston University, has a School of Public Relations which
awards a Master of Science degree.1

Businessmen, too, have begun to recognize the impor-
tance of public relations. According to a recent study,
nearly five thousand corporations now support public
relations departments or engage public relations counsel.
In addition, at least half a billion dollars are spent in
annual salaries for personnel engaged in the work of public
relations.2

The concept of "caveat emptor" (let the buyer beware)

which may have prompted William Vanderbilt's notorious

lRobert Heilbroner,'"Public Relations: The Invisible
Sell," Harper‘s Magazine, Vol. 214, No. 1285 (June,.l957),
23.

 

2
Ibid.

_-——

99

' is diametrically

utterance in 1879, "The public be damned,‘
opposed to the current philosophy of public relations.
Today's executives generally appreciate the fact that busi-
ness successes are closely related to the degree of public

approbation the? enjoy. Within the retail food industry

I.

in particular, public acceptance can mean the difference

between an operation‘s success or failure.

Historical Background of Public Relations in the Food

 

Industry

History has taught the food retail industry that
effective public relations cannot be attained passively.
During the 1930's when the chains underwent a period of
rapid expansion their relations with the general public were
quite unfavorable. Public opinion was directed toward
stunting and even reversing the expansion trend as evidenced
by punitive legislation and organized anti-chain group
activity.3

Chains soon discovered the effectiveness of organized
minority activities in influencing the action and opinion
of the general public. Housewives were told that the chains
were taking money out of the community and driving local

retailers out of business. At the same time, chains failed

 

3M. M. Zimmerman, The Super Market (New York: McGraw-
Hill Book Compa y, 1955), p. 5.

 

100
to associate their continued expansion with a need for com-
munications to the various groups. Generally, the chains
failed to foresee the need for understanding the various
groups or for these groups' understanding the chains.

The virulence of anti-chain campaigns combined with
legislation to abolish the advantages of procurement which
the chains enjoyed would seem to provide insurmountable
obstacles for food retail executives to overcome. Ironically,
the need to allay this resistance may have provided the
stimulus required to achieve the industry‘s present status
in the United States. Faced with these common problems,
individual chains combined efforts, hired professional
public relations men to initiate counter-campaigns and
.concentrated their operational endeavors on the improvement
of their distributive activities. Both plans were successful
and, today, more people appreciate the fact that chains can
afford a lower price to the consumer because of economies
in distribution, shifting of functions and integrated,
more efficient management.

The chains did not limit their public relations
activities to the consumer group alone. Some organizations
actively sought better relations with farm groups. An ideal
opportunity presented itself in February, 1936, when the
California cling peach growers were suffering considerable
losses due to an under—consumption of canned peaches. The

chains acted quickly and effectively in this situation.

The Food and Grocery Chain Stores of America, a national
association which a few months later became the National
Association of Food Chains, launched a nationwide drive to
promote this surplus to the public. Instead of suffering
a seemingly inevitable disaster, the peach growers were
able to dispose of their crop at a substantial profit be-
cause of this intervention.
Later, when beef prices dipped due to the abnormal
rate of slaug.ter necessitated by drought, the chains again
demonstrated the value of organized distribution. On another
occasion, they earned the gratitude and respect of Calif-
ornia‘s dried fruit producers by moving an unprecedented
volume of produce into consumption. Following these experi—
ences, the food chains developed a permanent agricultural
relief program which has channeled many surplus crops to
the American consumer.5
Many food retailers have not forgotten those troubled
years of public hostility. They have learned the importance
of effective public relations. Consequently, many chains
have become actively engaged in programs designed to gain
the understanding and acceptance of the various publics.
Unfortunately, too many programs never achieve this objective.

Reasons which might cause a public relations program to

 

“Godfrey M. Lebhar, Chain Stores In America (Clinton,
Massachusetts: The Colonial Press, 1952), p. 11.

 

5Ibid.

 

102
either fail or succeed will be examined in the following
sections. Accordingly, this study will be concerned with
an analysis of the public relations director and department,

the different publics and some tools of public relations.

Public Relations Defined

 

Before undertaking a study of public relations plan-
ning, it might be helpful to define what is meant by public
relations. To some, the most effective public relations
is largely an application of the "Golden Rule plus publicity;
it is a matter of doing good and seeing to it that the light
shines as far and as brightly as possible." The objective
of public relations may be defined as "making people like
you, understand you and appreciate the value of the products
which you sell or the services you perform.”7 Public rela-
tions may be described simply as doing the correct thing
and then telling the public about it. This concept involves
more than saying things people like; it is doing things
people know are right. An organization must have integrity
in order to merit the public's confidence.

Perhaps the basic formula for public relations as

conceived by Paul Garrett, formerly vice president of General

 

6Ed Lipscomb, Grassroots Public Relations for Agri-
culture (Little Rock, Arkansas: Democrat Printing and
Lithographing C0,, 1950), p. 29.

 

7Paul Sayres, Food Marketing (New York: McGraw-Hill
Book Company, Inc.,l950), p. 199.

 

103
Motors and now public relations consultant, would depict a
clear and concise image. In essence, he states that manage-
ment policies, as applied through people connected with the
company, determine the acceptance of the company and its
products. Figure 2 might aid in the visualization of this
concept.

This formula can provide a guide within which retail
food chains may plan and implement an aggressive public
relations program. An important point to remember is that
public relations is a function of all levels of management.
Every executive who has contact with employees, customers,
suppliers and the other publics has a major responsibility
for public relations. Every employee has a similar respon-

sibility to make a good public impression for his firm.

The Public Relations Director and Department

To facilitate this work,.many organizations have
staff public relations departments. This department is not
designed to relieve the organization's personnel of the
responsibility for public relations but to advise, plan and
program public relations activities. In addition, the de-
partment can provide management with the specialized skills

and communication tools needed to carry out public relations

policies.

 

8Bertrand R. Canfield, Public Relations: Principles
and Problems (Homewood,lllinois: Richard D. Irwin, Inc.,

1952), p. 6.

 

' . t-.v(.-_J !“_o '

lCii

BASIC FORMULA

Management As \
Policies Applied y

     
  

Through

  
 

 
     
 

Determi

 

\

'|\

”A

‘Acceptance
of the com-
pany and its

  
    

products
Designing
Engineering -by millions of in-
Personnel dividuals who have
Manufacturing PEOPLE their own opinions
Purchasing Connected with but whose opinions
Finance the company are influenced by
Distribution the opinions of
Executive others
Personnel
Supervision Workers
Dealers

Suppliers Stockholders

Fig. 2. Basic formula for public relations
conceived by Paul Garrett, formerly
vice president of General Motors
and now public relations consultant

105
The work of this department is normally supervised by
a public relations director who must possess a variety of
unusual skills. A successful public relations director has
been described as one who must possess:

Common sense

News sense

Business sense

Dramatic sense

Ability to write

An understanding of the editorial and printing ;
practices of newspapers and other periodical 1
publications '
A knowledge of the workings of radio (and

television) 3
8. Specialized knowledge of the field in which the 5
publicity is sought

mm JI'WFUF"

\1

an!

At least one more requirement should be added--manage—
ment ability. A public relations director must be able to
plan, organize, and control the operations of his department.

CIn selecting the public relations director, it must
be decided whether he is to be taken from within the company
or from an outside source. The advantages and disadvantages
of either choice should be carefully weighed. If a company
man is used, the benefits are that he is well acquainted
with the company, its internal operations and difficulties.
The principal disadvantage is that he is usually untrained
in the public relations field. In most cases, the'respon-

sibility is assigned as a secondary duty to a staff executive

 

9Milton Wright, How to Get Publicity (New York: Mc
Graw—Hill Book Company, Inc., 1935), pp. l9b-l95. '

 

106

who can devote only part of his work day to this particular

job. This restricts the scope of the program since the

staff executive will be limited in his ability to appreciate

the individual problems of each public.

Manr more companies emplov or retain professional
3 t

gultx1ic relations people today than was the case five or

tend years ago.10 By choosing an outsider, the chain can

'bE? rnore discriminating and select a person who is experi-

GIICK?d in the public relations field. In addition, the

zafkolrementioned "key executive" will be released for his ;
I

ijoirnary duties. 0n the other hand, this outside man would

Ioc>t be familiar with the chain‘s specific problems and
tloe>rwefore might find it difficult to determine the source

CDf‘ trroublesome situations. This disadvantage, of course,

SIWCDLlld be offset in time as the public relations man becomes

Oriented to the firm.

Some companies utilize both internal and external

p11h>1uic relations adminiStrators; one as the departmental

C111T‘G‘crtor, the other as a public relations counselor. The

'151t3tter>is retained by the company but remains independent

CDI‘ .i‘ts organizational structure. He provides an objective

aIDEDI?C)aCh to the firm's public relations program, serving

843 .
VVcould a proxessional attorney, engineer, or accountant.

\

 

ties 10John McCaffrey, "A Company President Looks at Public
lglations," The Management Review, Vol. XLV, No A (April,
56) .278.

107

The next step in organizing an adequate department is
to determine its functions. These functions will be dictated
by the number, size and importance of the publics served by
the chain; the size and financial resources of the business;
the attitudes of the public toward the business; and the
external social, economic, and political conditions of the
community. The specific functions of the department should
include research, planning, coordination, administration,
and production.

Research might involve opinion surveys of the various
publics, interpretation of social, economic, and political
trends and studiescfl7public relations techniques.

Planning should include the determining of basic
public relations policies. In addition, planning would in-
volve establishing objectives, selecting methods of communi-
cation, timing, assigning personnel, and budgeting.

Coordination is the process of bringing all depart-
ments of the organization together into a harmonious unit.
This necessitates the internal contacting, informing and
advising of directors, key officials, operating executives,
debartment heads, and field public relations representatives.

Administration involves the rendering of service to
all departments of the business. The control of budgets,
the supervision of services and personnel and the employment
and direction of the clerical and stenographic force are

activities related to the administrative function.

.‘anlJC‘J .‘n-Jxfim‘ ”.,_, “.1 .1. .-.-

108

Production involves the actual contact work of the
public relations department. This includes the implemen-
tation and development of publicity, motion pictures, slide
films, publications, special events, community participation,
public appearances, correspondence, and institutional
advertising. F‘

Carleton P. Alams, in his article, "How to Organize

an Effective Public Relations Department,‘ enumerated ten

practical guides which should be considered in establishing

“#4“ "‘u— "' ‘4' ‘

a public relations department. They are:

1. Fix responsibility. The director should be
able to report directly to a major executive.
Establish a budget.

Set up a program. What does the company want
to publicize and how widely?

Develop news sources.

Secure approval for release.

Set up a filing system.

Develop a mailing list. Don't mail blindly.
Develop a master photo file.

Make monthly reports.

Merchandise the results.11

O\OOD\]O‘\U1JZ‘ LORD

}__J

To attain maximum efficiency, the department should be
placed in the organization at the top-management level and
made responsible directly to the president and board of
directors. Since every action and policy of the company
affects at least one public, it is only logical that public

relations should be a top-management function and the public

 

llCarleton P. Adams, "How to Organize an Effective
Public Relations Department," Industrial Marketing, Vol. 41,
No. 12 (December, 1956), M6.

 

109

relations director a major officer. In this position, the

director can maintain better coordination and closer contact

with the various department supervisors and gain their sup-

port in different activities.

The organization's degree of emphasis on public

relations is often reflected in the position of the director

in the company's hierarchy. Though titles may not be a com-

pletely true reflection of organizational philosophy, it is

noteworthy that a number of chain public relations depart-

ments are administered by vice presidents. Marshall Field

has a special vice president in charge of civic affairs.l2

To summarize, the supermarket executive should keep

close contact with his public relations director and depart-

ment. He should cooperate with the director in accomplishing

the following objectives:

1.

KA)

Establishing public relations objectives before
initiating publicity actively.

Phasing the program as a high-level function of
management, assigned to a senior executive.

Educating the company on the nature and purpose of
public relations,and developing a cooperative
attitude on a company-wide basis.

Understanding what to-expect from public relations
and learning the difference between public rela-
tions and advertising.

Understanding the tools of public relations.

Being open-minded about recommendations that
differ from familiar ideas.

 

.H

 

12”Today's Civic-Minded Executivess The Management

Review, Vol. XLVI, No. 2 (February, 1957

28.

110

-4

Periodically renewing both the objectives and
the accomplishments of the program at a high
level in an atmosphere conducive to creative
redirection of a program to meet changing needs.

8. Establishing a budget adequate for the successful
execution of a program designed to meet the
specified objectives.

Favorable public opinion can be achieved only through

the efforts of every employee in each department. When

every employee and executive recognizes his role in the

public relations task, the department is then in a position

Mom‘fi" .:--.-

to effectively guide and stimulate the actions of these

.. '1” A1"

workers in integrating the chain with society. __o

The Various Groups in Public Relations

Public relations must serve the interests of all groups;
it should not be directed to any one particular group. To
attain optimum results, general policies andtwulosophies must
be presented in different aspects to various publics. At
least eight types of social groups, toward which a modern
organization must promote public relations, have been sug-

gested. They are:

l. The employees. This includes everyone from the
newest worker to the highest executive.

 

R)

The general public. Present customers constitute
a large proportion of this group but potential
customers should not be disregarded.

 

 

13"Here Are Your 1957 Public Relations Resolutions,"
Industrial Marketing, Vol. A2, No. 2 (February, 1957), 55.

lll

 

3. The community. This indicates the people
surrounding an area in which the chain is
operating.

A. The suppliers. Each chain has numerous
suppliers~~wholesalers, brokers and the like.

 

5. The governments. This includes local, state
and federal governments.

 

6. The special groups. Labor unions, church and Fflfi
youth organizations may be categorized as 1
special groups.

 

7. The stockholders. Any individual who holds
shares in the chain is a stockholder.

 

8. The people who disseminate information. These
are members of radio, television, newspapers
and other communication media.1

 

Of course, there may be overlapping of interests be—
tween these groups. For example, one who is a member of
the employee public, may also belong to the community and
stockholder groups. Nevertheless, for practical purposes,
each group must be treated as a separate entity. In case
of conflicting interests, the public relations director
must not attempt to impress a particular group with one
side of an issue and then seek to impress another group

with the other side.

Employee Relations

 

Good public relations "begins at home,’ by developing

understanding and creating enthusiasm among the employees;

 

1“John W. Darr, Public Relations for Profit (New York:
Funk and Wagnalls Co., 19u5), p. 7.

 

112
not only store employees, but every member of the organi-
zation up to and including the president. Only when person-
nel are enthusiastic about their work and their company can
they radiate a positive attitude toward the other publics.
"Employee ambassadorship is governed to a large part on
how the individual feels about his job and the company."15
In addition, each employee must feel that he is an impor-
tant element of the organization and thus closely identify
himself with the company. This association must be extended
to such a degree that the employee will feel criticized when
someone criticizes the organization, or rightfully feel
responsible for part of the praise bestowed upon the enter-
prise.

In order to develop effective employee relations,
management should first try to determine the employees'
attitudes toward the company. Do they think that wages are
fair? Are they satisfied with working conditions? Do
employees feel that they are receiving adequate recognition?
Do they believe that promotions are given those with the
most ability or that the best jobs are being handed to
friends or relatives of executives? Are workers satisfied
with the company's security measures-~pensions, health,

accident and life insurance, sick leaves, and other benefits

lSKeith S. MCHugh, "Your Most Important Spokesman,"
Dun's Review and Modern Industry, Vol. 68, No. 1 (July,
95 ),‘3A.

'THT
5

‘Iw—’** 7T 4

113
designed to improve employee job satisfaction? These
surveys offer employees an opportunity to express their
satisfactions and dissatisfactions and may reveal ways of
improving personnel policies and working conditions. Recog-
nizing the.importance of satisfied employees to public rela-

tions in general, management often conducts these surveys

prior to the implementation of a full-scale public relations T“

program. é
Although public relations is the responsibility of 3_

each food chain employee, the supermarket manager occupies ;

a strategic position in this continuing battle for consumer
favor. The manager represents his company at the store
level. A customer‘s attitude toward a particular chain

is affected by her relationship with the store manager.
Even deeper than this relationship is the impact that the
store manager can exert upon store personnel. First, he
can impress all employees with the importance of their
particular jobs within the supermarket. This attitude may
be further developed by offering adequate wages, satis-
factory working conditions and reasonable opportunities
for promotion. Lansing P. Shield, president of the Grand
Union Company, conceived four major planks which should
improve employee satisfaction. They are:

Security

Opportunity

Rewards to each man in proportion to his
contributions

 

WRDH

llh

4. Fulfill%ng the employee's desire to
belong1 '“‘

A satisfied employee can mean satisfied customers. If the
workers are content, they will perform their functions well
and will create a pleasing atmosphere in the supermarket.
Good employee relations is also promoted by investing
status in each worker‘s role in the supermarket organization. r“?
Unfortunately, too many people still perceive of the food '

store as a sweat shop where employees work long and arduous

hours at dirty and unsavory tasks. Some think of the

”AB-V ”gl- v. . 4'

supermarket as a place where a high school boy may earn a
few dollars working part-time; but where no one with any
intelligence and ambition would ever seek a career. Indeed,
such Judgments must be deeply—rooted, for they are still
retained by many despite the impressive supermarkets of
today, shorter working hours and the use of progressive
personnel techniques for selection, placement and training.
Because of these unfavorable attitudes, the retail food
industry is confronted with a fundamental communication
problem-~how to inform the public of the opportunities
provided for useful and satisfying careers.

As the public becomes more aware of this changing

concept in food retailing, they will develop a greater

 

l6Speech presented by Lansing P. Shield, President of
the Grand Union Company, at a Food Distribution Club meeting,
Michigan State University, February 14, 1957.

115
respect for the "professionalism" of the food industry.
Consequently, this will improve the grocer‘s status as a
productive and respected member of the community. Such edu—
cation while within the realm of public relations can be
promoted by each employee reflecting credit upon both him-

self and the industry.

As previously mentioned, the supermarket manager is f_fi
in an ideal position to create a feeling of good will among 3
his employees. He can instill in each employee a spirit jg
of cooperation-~a feeling of working with rather than for E
the company. Although it may be of some benefit to apply {—4

such public relations techniques as illustrating the dollar
value of each shopper or explaining what the loss of several
good customers can mean to a supermarket's earnings, this
treatment seems somewhat superficial. A more basic approach
is to engender in each employee a feeling for the customer
as a person rather than a statistic. '"Warm, friendly action
comes from having a real feeling for people and their
problems."17 Employees with this attitude are public
relations ambassadors, true administrators of any effective
program.

The importance of friendly employees to a modern food

chain cannot be over-emphasized. Due to the high degree of

 

'17"The Friendly Store: Manager's Training Course,"
Chain Store Age, Vol. 33, No. 2 (February, 1957), 67.

116
self-service in a supermarket operation, employee—customer
contacts have been limited to such areas as the checkstand,
bottle-refund desk and pick—up station. Consequently,the
impressions a customer receives during these infrequent
contacts will determine, to a considerable degree, her
attitude toward the particular supermarket.

A chain, to be successful, must develop a favorable
personality; it must create a psychological label or sign.
."This personality is built through a combination of factors--
merchandising, advertising and public relations."18 Person- 5
ality though is not based merely upon a unique pylon or
quaint cartoon character. A chain's personality depends
uporlits merchandising policies, its employee relations,
store layout, services offered, et cetera.

An alert executive will critically evaluate his chain's
publicrelations“output," so to speak. Some have devised
checklists designed to appraise each unit‘s "personality."

A well-planned checklist might attempt to determine whether:

1. Friendliness and prompt attention are extended
to all customers.

2. Accurate and courteous directions are given to
all customers.

3. Courtesy is extended to the "hard to please"
shopper.

\

 

l8Pierre Martineau, "Your Company Personalit --How
Important Is It?," Business Topics, Vol. 4, No. 1 July,

1956), 6.

 

117

A. Enthusiastic salesmanship and service is
demonstrated where customers refund bottles,
cash checks or order special cuts of meat.

5. Quality is religiously maintained and the
customer is treated honestly at all times.

6. E ery employee has adequate knowledge of the
store's merchandise.

7. Prompt and cheerful adjustments are made. F"‘
8. The entire market radiates cleanliness and 3
orderliness. a
l
9. The store offers good food, attractively priced .
and displayed. '7
M
10. In general, customers are treated as company.19 i

While these conditions may be difficult to attain,
the feat is not impossible. Every store manager should
strive for the achievement of these high standards. In so
dtdxlg, he should be able to mold favorable public opinion

and encourage loyal customer patronage.

The General Public

 

Another group which demands careful consideration when
fknmnulating policies for a public relations program is the
germaral public. The chain must appeal not only to those
vfiuo already patronize their supermarkets but also to poten-
‘tial customers. To larger food chains, such as the Atlantic

arui Pacific Tea Company and Safeway Stores, the general

 

l
9“The Friendly Store: Manager's Training Course,"
op. cit., p. 67.

118
public is practically the national population. Chains
which do not enjoy these advantages of ”bigness” have
pooled their resources in trade associations, such as the
National Association of Food Chains and Super Market Insti-
tute, to promote the industry in general. These groups
have implemented institutional advertising to inform the
public of the many social and economic benefits resulting
from the food chains' productive efforts. Americans are
better fed and enjoy greater dietary education because of
the industry‘s activities. Despite increased living costs
and a lower valuation of the consumer dollar, an average
laborer can purchase more units of food with his hourly
earnings than ever before. These and various other benefits
are brought to the general public's attention in an effort
to foster better public relations throughout the industry.

The Atlantic and Pacific Tea Company, while tradi-
tionally secretive about its policies and activities, is
intensely interested in promoting good public relations.

The Atlantic and Pacific Tea Company advertises nationally
that it is an integral part of the American way of life;

that no community is complete without one of its markets.

The company publicizes every occurrence which might favorably
impress public opinion. Typical of such advertisements is
the following excerpt:

Now a 5 day week for A&P employees throughout the

nation. Stores will be open 6 days a week as usual
but no employee will work more than 5 days.

lwww _— 4-

119
This, we believe, constitutes the first 5 day week
and the shortest general working hours of any major
food retail establishment.
For many years, it has been a source of pride to
us that we have been able to maintain the highest
average wage scale and the shortest working hougg in
a field where long hours have been traditional. .
Through such releases, the company attempts to inform the
public that its employees are treated fairly and paid well.
The chain promotes the fact that it is a good corporate
citizen sincerely interested in the welfare of its employees.
Of course, the majority of food chains cannot approach
the magnitude and scope of such a public relations program.
The size and far—flung interests of the Atlantic and Pacific
Tea Company make these large-scale promotions profitable.
Nevertheless, the philosophy behind these campaigns can
be applied to advantage by the smaller chains. Wrigley
tores, Incorporated, of Detroit has made a number of out-
standing contributions which inevitably resulted in favorable
reactions from the general public. A shipment of foodstuffs
was flown by Wrigley's to hurricane victims in Haiti. During
the same period, Wrigley‘s had shipped a cargo of canned
vegetables through the American—Korean Foundation to insti-

21

tutions and hospitals in Korea. Such manifestations of

 

2OTom Mahoney and Rita Hession, Public Relations for
Retailers (New York: The MacMillan Co., 19497, p. 239.

 

21"Wrigley's is Active in Civic Affairs," The Spirit
of Wrigleys, Vol. 9, No. 12 (December, 1954), 10.

the food industry's willingness to devote its facilities
and know-how to serving not only the American public but
people of all nations are gradually eliminating the tradi-
tional concept of food retailing as a non-productive and

low status form of endeavor.

Community Relations

Closely allied with influencing the general public is
the problem of integrating the chain and the community which
it serves. One of the major problems confronting any chain

is that of gaining acceptance as a business with vested

‘5 “.lwm\\'u' .nvig *"."5I:'- u..i. W

interests in a particular community. A large chain operating
in several hundred small communities has difficulty in main-
taining a close relationship with each and every one of

them. An independent grocer has a decided advantage in that
his business has developed within and is dependent upon the
community. In many instances, he is a native or owns a home
in the area.

Chain stores labor under two inherent handicaps.
First, in a decentralized operation it is sometimes difficult
for home office executives to visualize problems in small
and distant towns. Secondly, store managers must frequently
‘be moved from community to community as part of their own
jpersonal development as well as to meet the needs of the
cxxmpany. Thus, they may not have the time to become as

widely acquainted with the communities in which they work

 

121
or to deveIOp as much civic pride as do the independent
retailers.

Nevertheless, the task can and must be accomplished.
”The bigger and more widespread an outfit grows, the more
its strength must stem from local_understanding and sup-
port."22 In order to secure this local support the com-
munities should be told how the company functions—-what it Fm“!
makes, the nature of its business, how many people it
employs, what is pays in taxes, what it spends locally, how

it regards its community responsibilities and what it con-

.fii‘. 1:...1 0! L'jo \- '

tributes to the social and economic life of the community.
Good community relations can be expressed in simple terms
as:

1. Having a policy of doing only those things
which are right and decent.

2. Acting according to these principles, doing
the things which all good citizens do for
their home town.

3. Doing everything possible to make people
know who the company is, what it is doing and
why.

Today's retail food executive has at his disposal

various tools and techniques which may be utilized to

accomplish these aforementioned objectives. The chain may

 

22Lawrence M. Hughes, "General Electric Builds Com-
munity Relations on Product Sales Method," Sales Management,
Vol. 76, No. 3 (February 1, 1956), 32.

 

23G. H. Achenbach, The Community and Your Business
are Inseparable, National Association of Food ChainsT Manage-
ment Clinic on Public Relations, Summary Report, February 1-
2, 195A.

 

 

122
participate in community affairs, distributive education
programs, civic improvement, social and charitable projects.
An important rule to be remembered is that under no cir-
cumstances should the chain participate in political
campaigns. Although the chain's viewpoint may be sanctioned
by the majority, patronage will inevitably be withdrawn by
many local citizens. An adage appropriate to this note of t
caution is, "You might win the argument, but you'll surely
lose the sale;" yj

There is a wide assortment of channels for promoting

 

1

community relations, such as the Chamber of Commerce, tne
Parents and Teachers Association, church and fund raising
campaign organizations. Of course, a majority of the chains
will not be expected to emulate the generous contributions
of the huge Kroger Company, which pledged sixty thousand
dollars as prizes in cooperation with the General Federation
of Women's Clubs to sponsor a "Build a Better Community"
contest.24 The Kroger name and its civic contributions are
well-remembered in communities ranging from Lamoille, Nevada
to Marianna, Florida.

Many opportunities are open to the executive who

wishes to improve his community relations. These opportuni-

ties are limited only by the executive‘s imagination and

 

214 n 1 .11
Joseph B. Hall, Build A Better Community, Kroger
Pamphlet,p.l.

 

123
ingenuity. One food chain president, Fred C. Pockrandt of
Acme Markets, has his own local radio program.25 While
he refrains from promoting the chain directly, the community
knows him as "the Acme Man." Community acceptance of "the
Acme Man” has gained favorable local identity for the Acme
organization itself. rflm

At this point, it might be appropriate to discuss 5
specific techniques used in fostering community relations.

This study will include some observations on corporate

giving, membership in community functions, guided tours

rTTT-r— --» .—_ A A

and cooking courses. Perhaps, through this discussion,
general principles pertaining to each of the aforementioned

subjects can be evolved.

Contributions. The question of how to handle contri-

 

butions properly has been subject to considerable contro-
versy. Who will make the actual contribution? How much
should be donated? What limitations should be placed on
contributions? These are only a few questions which must
be resolved by the public relations department.

Some chains have instructed the store manager to refer
the solicitor to the central office. When a donation is

reqfiested, the manager supplies the solicitor with a printed

 

25Fred C. Pockrandt, "Acme‘s Business is Public
‘Relations," Super Market Merchandising, Vol. 22, No. 6
(June, 1957), 86.

12A
form and explains the procedure of writing directly to com-
pany headquarters. This system seems to defeat the chain's
objectives of closely allying itSEupermarket with the com-
munity. For example, if the chairlady of a local women's
league has requested a contribution from the store manager
for a proposed civic center and is told she must refer the .
matter to a central office, she is clearly reminded that r‘ i
the particular market is only one in a huge, corporate

chain which is "merely in town to make money." This atti-

tude will be reinforced when the local merchant next door

. fix. _..__,4 _ _ _- .—
_.
1

immediately responds by going to the cash register and
making a direct contribution. 8

Other chains allocate a specific sum which the super-
market manager must budget to cover his annual donations.
This arrangement,too, contains obvious weaknesses. Often,
the manager may exercise poor judgment and expend this
budget long before the year has expired. He may establish a
preCedent embarrassing to the entire chain by donating to
a local solicitor. For example, using his own discretion
the store manager might contribute to a municipal volunteer
fire department fund. The managers in the neighboring
communities who have not included this group in their con-
tribution plans might be forced to donate anyway when
solicitors use the first manager as an example. In effect,
this store manager would be setting a company policy for

donations.

 

125

Headquarters, of course, should determine the policy
for handling contributions. They could establish before-
hand what donations are to be made, to whom and in what
amount. An analysis of ”all continuing contributions could
be made annually to see whether each organization's objec—
tives are valid and their expenditures reasonable.“26 A
sound program would include an estimation of the donations
budget for the coming year. The total budget figure is
normally represented as a percentage of net income before

taxes. (Nationally, contributions average 1.23 per cent

I .‘at -w.-.- '.‘ IPA;
.1

of net income before taxes.27) A good contribution plan
should have a written policy, proper administration and a

donation budget.

Memberships. Most food retail chains encourage parti-

 

cipation in community organizations such as the Chamber of
Commerce, Retail Merchants Association, and the Board of
Trade. The National Association of Food Chains sponsors

an industry-wide contest to select supermarket managers who
have demonstrated "outstanding achievement in promoting
better community relations;" The winners receive inscribed

bronze medallions and other enviable recognition when they

 

26
Claude Alexander, "Ground Rules for Giving," Public
Relations Journal, Vol. XII, No.8 (August, 1956), 21.

 

27“The Art of Corporate Giving " Public Relations
Journal, Vol. x11, No. 6 (June, 19573, 19.

126

gather in Washington, D. C. to attend an awards banquet.
At that time, these civic—minded managers are also given an
opportunity to meet with many important officials of the
federal government.28 Promotions such as this will cer-
tainly help elevate the status of the supermarket manager
and the chain which he represents in each local community.

Of course, membership alone is insufficient. The
manager must become an active participant in these organi-
zations. He should attend meetings regularly and make
himself available for committees and special projects.
Unfortunately, many managers honestly feel that they do
not have sufficient time to engage in these extra-curricula
activities. They contend that their store duties consume
ten to twelve hours each day and consequently leave them
little time for joining clubs. This unwillingness to parti-
cipate in community activities may be due, in part, to the
Short-range objectives of many managers who regard their
current store assignment as being of limited duration.
Accordingly, they are more concerned with showing a good
Sales and profit figure in the present than building good
Will in the future. Most managers rightfully feel that
they are being judged on their present production figures

and not how many friends they are making for the company.

28"Winner of NAFC Good Citizenship Award Announced,"
QEEEB;StOP€ Age, Vol. 33, No. 2 (February, 1957), ll.

 

To offset this short-range viewpoint, greater emphasis
might be placed on other managerial responsibilities such
as employee development and public relations. Of course,
the intelligent manager realizes that the new friends he

gains will be reflected in the store's present and future

earnings.

Egugg. As part of their public relations program, a 3
number of chains conduct tours through their stores and g
distribution centers. The companies that conduct these i~t
tours believe the customers,local citizens and school child— .

ren should be familiar with behind-the-scenes operations

in food chains. In fact, many are deeply interested in

seeing the operation of a food chain. The range of interest

of these visiting groups is wide and may vary from school

and college associations to farm bureaus and women's clubs.

A properly planned tour involves learning the particular

interests of the group. In this way, the tour can be made

more interesting by being directed specifically to each group.

A general type of tour is not usually appealing to all groups.
Store tours for school children are also part of a

mass education program designed to acquaint them with econ-

omical shopping methods. These youngsters represent a

pOtentially large group of future chain store customers.

An extension of this idea is found in tours conducted for

high school students and teachers to emphasize the many em-

ployment opportunities in the food field.

128

Scholarship programs. Along these lines, some chains
and chain associations offer scholarships to outstanding
local high school graduates. These scholarship programs
establish good public relations with the family and com-
munity of each winner, with the faculties of the colleges

and with all those who read the widespread publicity accom-

panying the granting Of SChOlaPShipS. The most important F I
advantage is that,in helping worthy students, the chains i
are helping train future leaders in agriculture, home 3_
economics and food distribution. (
;——4

Cooking courses. Some food chains sponsor cooking

 

courses for their customers. By conducting these classes,
the chain impresses each housewife with its interest in
her family's welfare and health. The housewife, in turn,
may develop a feeling of obligation to the chain.

These courses are designed to educate the housewife
in planning balanced diets, selecting and preparing nour-
ishing food. In addition, these courses can be used to
stimulate the sale of private label merchandise. Such pro-
grams definitely improve community relations and promote
the company name with a most potent propaganda weapon--the

housewife.

The Suppliers

Another area for promoting good public relations lies

131 the chain‘s association with suppliers: manufacturers,

129
packers, jobbers and brokers. Suppliers, as a result of
their business dealings, will develop definite opinions
about various chains. These opinions are quickly spread
to other suppliers and food chains in the industry. A
broker operating in the Detroit area recently commented on

the different methods of handling suppliers in three large

food chains. He judged each chain according to the treat- {—5
ment received in the buying office and openly expressed a %
definite preference to other members of the industry.29 :
Many companies, cognizant of the supplier's role in E
shaping public opinion,have devoted considerable attention L—9

to the vendor-buyer relationship. An example of this can
be found in the Grand Union buying offices at East Paterson,
New Jersey. The company has developed a purchasing schedule
designed to reduce the time wasted by salesmen when calling
upon buyers.

Above all, any supplier and retailer relationship must
be predicated upon the principles of honesty and fair play,

which will generate mutual respect, understanding and con-

fidence.

The Government

When one tries to influence a local banker or the
president of a women's club, he is conducting a public

relations program. When he does the same with a politician,

 

29Personal interview with Richard Grimes, Vice Presi-
dent of‘Fellmen Associates, Coldwater, Michigan, April 18,

1957.

130
he is called a "lobbyist." Actually, there is only one
kind of lobbying that is sure to pay off, and that is
lobbying with the public. The Atlantic and Pacific Tea Com-
pany discovered this in 1938 when it appealed to the citizens

and caused a bill imposing chain store taxes to die in com-

mittee.30

On the local level, a sanitation officer's opinion of r 5
a chain may affect his judgment of an organization's sani- ; ~
tation practices. Along these lines, a supermarket manager %
must be careful in his business dealings with the town i“
officials. An incident may be recalled which involved a i_——

dispute between a town mayor and a supermarket manager. The
mayor, who regularly purchased hamburger meat for his
restaurant from this particular supermarket, complained
of having been sold rancid meat. In the ensuing argument,
the mayor threatened to sue. In retaliation, the supermarket
manager threatened to sue the mayor as proprietor of the
restaurant for having served pie containing some foreign
matter. As a result, the supermarket manager was dismissed
and the chain was placed in a bad light in that particular
community.

When dealing with local, state and even federal govern-

ments, the chains should keep the officials fully and

 

3O"Carl Byoir's Death Recalls His Aid to A&P Public
Relations," Supermarket News, Vol. 6, No. 6 (February 11,

1957), 8.

 

 

131

accurately informed of policy changes which might attract a
government's attention. A realistic public relations pro-
gram will avoid alienation of government groups since the
ensuing expense to tell the public the chain's viewpoint
can become quite prohibitive. '

Recently, the National Association of Food Chains was
able to improve its government relations by cooperating
with the United States Department of Agriculture on a
special project--the installation of an American-style

31

supermarket in Rome, Italy. Relations were also improved
with the foreign public who visited and shopped in this
supermarket. The chain executives who aided in the work

of this project proved to be excellent ambassadors for both
the United States and the food industry. This first project
was so successful that another model market has been sch-
eduled for September, 1957, at the International Fair in

Zagreb, Yugoslavia.32

Special Groups
Public relations objectives in appealing to special
groups such as unions, church and youth organizations have

been discussed to a limited extent earlier in this study.

 

31"American-Style Supermarket in Rome,‘ Food Topics,

Vol. 12, No. 11 (June 3, 1957), 9.

32"First American Supermarket to be Seen in A Com-
munist Country," Bulletin, National Association of Food
Chains, Vol. XXIV, No. 27 (Ju y 6, 1957), 2.

 

132
The policies have been viewed with respect to employee re-
lations and community affairs. Managers and store personnel
should be encouraged to participate in church and youth
activities.

Union relations continue to pose serious problems.
Difficulties may be minimized through better communications
with labor and by maintaining sound employee relations. An
astute public relations man realizes that the improvement
of labor relations may be reflected in relations with other

publics.

I*—uf-n.:-—I~¢vammu. A .1... T- mg-W
'3

As an example, the management and employees of a small
firm worked together to raise ten thousand dollars for a
Community Fund. Each man donated half a day's wages. This
was combined with an open house to which local business and
civic leaders were invited. The results were threefold:

1. It improved labor management relations (the
local union conceived the idea).

2. It increased the amount of the company and
employee Community Fund donation.

3. It attracted notice in the press by performing
a useful service in a novel way.

Stockholders

 

The field of stockholder relations is a large one and

pleads for more attention. The objectives are simple and

 

33"Employee-Customer Relations Get A Lift," Industrial
Marketing, Vol. 41, No. 2 (February, 1956), 12A.

 

 

133
attainable. “"Do everything that is practical to promote and
deserve the loyalty and friendship of stockholders."3u The
results would be varied and profitable. For example, new
investor interests in the company might be stimulated or
stockholder patronage of the food chain increased.

In order to cultivate the investors' good will and
loyalty, the company should:
1. Keep the stockholders' welfare constantly in
mind in every decision which could possibly have a
bearing on the investor; fair play is an unbeatable
force in good stockholder relations.
2. Strive for corporate attainment and leadership

which will build stockholder confidence and pride of
ownership.

3. Gain their steady interest by keeping them
informed about the things that matter to them; try
to give them advance notice of company events and
developments in which they might be interested.

u. Enlist their active help in promoting the
company's welfare; educate them in corporate prob-
lems, in product promotion and in their tasks as
corporate members.

5. Take full advantage of every opportunity to
increase the investors' confidence, respect and ap-
preciation for the company and its management.

To effect these objectives, the chain may utilize the
following techniques:

1. The annual report. A company's report of its

 

year's progress and operations.
2. Interimgpublications. Booklets, periodicals and

the like.

 

34

Glenn and Denny Griswold Your Public Relations (New
'YOxac: Funk and Wagnalls Co., 19387, p. 227.

35Ibid., p. 213.

 

FM":

134

3. Correspondence.

u. Annual Meetings. The public relations director's

 

problem here is to plan an interesting and infor-
mative program which will encourage attendance.
Some companies schedule annual meetings in various
key cities simultaneously so that more stockholders

can attend without traveling great distances.

The People Who Disseminate Information

Good relations with members of radio, television, and
the press are essential to any successful public relations
program. Since communication is vital to the development
of favorable public opinion, the importance of any support
and cooperation which these publicity people may provide
cannot be over-emphasized.

In order to achieve and retain a favorable press,
the public relations director must remember several basic
considerations. First, he cannot exert pressure to have any
release publicized. To put the power of radio, television,
and newspaper behind his public relations program, the
director should be straight-forward and friendly with the
atmnwopriate executives. These men, it must be remembered,

are interested in items with news or human interest values.

1

If it is news, they will expect “newness,' reporting the

happening or event as quickly as possible after it occurs.
Human interest stories capitalize on the fact that

people would rather read about people than anything else

135
and would rather have their emotions played upon than their
intellects. Recently, the Bell Telephone Company managed
to inundate local newspapers in New York City with human
interest anecdotes relating the perseverance of many switch—
board operators in securing transportation to their jobs

during a tie—up due to heavy snowstorms. Practically every-

thing but dog sled was used and these Stories provided inter- F55
esting reading. The result was that more people came to i "
regard the Bell Telephone Company as a human organization, (5
comprised Of people interested in performing their jobs %7
L...

well. In addition, employee relations were improved by
elevating the status of the switchboard operator.

In effect, the public relations director can display
considerable cleverness and imagination in promoting the
company name. Rather than pay for a television commercial
the astute director will devise a method whereby the same
promotional material becomes a news or human interest item.
Grand Union was able to present a meat-cutting demonstration
on Steve Allen's ”Tonight" television show. The result was
an interesting and amusing session, publicizing the company
name at an extremely low cost. Another example of alert
public relations was provided by the same company when its
president; Lansing P. Shield, appeared on a television
panel show. This type of imaginative and aggressive
thinking separates the true public relations man from the

office clerk who merely issues drab blurbs from day-to—day.

136

There are several do's and don'ts which might be

useful guides for the public relations man who is attempting

to disseminate company information to the press. These are:

1.

Do make the first paragraph tell if possible:
Who-~What--When--Where--Why--How. Keep the
meaning clear and put the most important facts
in the first paragraph.

Do stay away from ten dollar words and all
efforts to be "literary."

Do remember that names make news. Use as
many of them as possible and be careful--very
careful-—about their spelling.

Do type the story double-spaced on one side
of the sheet.

Do deliver the story, in person, if possible.

Don't include opinions in a straight news
account unless they are put in quotation
marks and credited to the proper person.

Don't be disappointed when the long account
written for the front page appears in five
inches on the back.

Don't raise the roof about minor errors in
editing or about typographical misprints.36

A potent self-restraining influence might be imposed

by the public relations director who asks the question,

"How will this release benefit the company?" Obviously, an

attempt to merely place the company name in the public eye

is not enough. The publicity release must servezaspecific

purpose in keeping with the general public relations objec-

tives of the firm.

 

36Lipscomb, op. cit., p. 71.

137
Other communication media which may be utilized in
promoting good will are house organs, slides and films,
trade magazines and newspapers,booths at county fairs, et
cetera. In a very real sense, public relations is the

"publishing of a house organ to build worker morale."37

Benefits of Public Relations Summarized

 

F”‘
Up to this point, the various publics, how‘they may 5

be reached, and some public relations policies and objectives 3

have been discussed. In addition, benefits resulting from g

effective public relations have been suggested in the g

analyses of these publics. For greater clarity, it may be
illuminating to re-state these benefits more concisely. An
effective public relations program will afford:

An assured labor supply.

Better community life and improved morale

of workers.

Better consumer sales opportunities.

Better civic service to the business.

An additional source of new capital.

A defense against discriminatory local
legislation. '

Favorable local identity.

A better understanding of the economic system.
Prevention of misconceptions about the company
by presenting knowledge of its operations to
the public.3

\OCIJQ ONUTJEUO IDF"

Chain executives should be acutely aware of what public

relations can and cannot do. Under today's concept of the

 

37Robert McIntyre, "What's Public Relations? It's
Many, Many Things," Editor and Publisher, Vol. 88, No. 1
(July 7, 1956), 117.

38Canfie1d, op. cit., p. 137.

 

138

public relations function in business, it is not the proper
job of a corporate public relations staff to devote its

primary efforts to the direct selling of products or ser-

vices. This is the function of the marketing or sales de-

partment. The primary function of public relations is "to

achieve broad public understanding of the manner in which

the company operates to satisfy those for whom it was

"39

created to serve.
Above all, it must be remembered that these benefits

cannot be accomplished or measured over-night. Constructive

results come only from patient effort in building toward

long-term, carefully defined objectives.

Conclusion

Any public relations program in order to be effective
Inust appeal to people in terms of their own self—interest.
Eatflljperson decides for himself whether he likes or dislikes
a,;xarticu1ar chain. He takes opinions and impressions

gairmxi from a variety of sources and pieces them together

jjyflj a pattern. On the basis of the information he finds

pllus his prejudices, values, et cetera, he forms judgments--
aijxys keeping personal welfare foremost in his mind.

.Acccnfliingly, the mass approach directed at the different

 

 

 

39Franklyn Waltman, "Corporate Public Relations Prob-
lenus Stemlfkom.Marketing Operations," Editor and Publisher,

Vol. 90, No. 13 (March 23, 1957), 11.

 

139

publics through mass communication techniques, although
fairly effective, must be reinforced by the more important
person-to-person contacts between members of the organi-
zation and the public.

Competition has now centered about customer conveni-
ences. Supermarket patrons demand clean, neat stores,
adequate checkout facilities, high quality and good variety
merchandise, sufficient parking and friendly, courteous
service. Chain stores, in turn, are deferring to these
demands. When the organization consults its present and
potential customers, complies with their wishes in regard
to facilities and presentation of merchandise, it is working
in the field of public relations as well as operations.

This public relations work does not involve a com-
plicated set of formulae directing the use of communication
media and techniques, but rather a down-to-earth way of
business which should stem from a philosophy of life in
general. This is particularly true when it is realized that
all the fancy frills, high pressure promotions and gimmicks
commonly associated with public relations are not worth
the expense and endeavor which produce them if the message
they convey is not radiated in each market in the chain.

A customer may not always remember what she reads in the
papers, but does remember that Bob at the Food-O-Rama told
her a new way of cooking pot roast. She will also remember

the last time she was treated rudely in a particular market

1A0

and, in all probability, that was the last time she shopped
there.

This simple fundamental approach to human relations
is conducive to the development of a most effective public
relations program. Essential to this human approach is
the realization that public relations begins at home. All
the participation in community affairs will go for naught
unless sound relationships are established with employees.
A happy, well-adjusted working force will ensure customer
satisfaction at point-of-sale. This aspect of public
relations combined with an intelligent program to communicate
worthwhile information to the various publics, will assure
success in gaining new food friends. In the final analysis,
the chains must return to this emphasis on personal contacts.
While this technique is most effective, it is also least
expensive, for in fact, it costs not a penny to smile and

extend a warm, friendly greeting.

.. .‘IN

..".‘...s‘-"~‘_"~.' v' -\ ‘ ., .-

 

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Lgarned Organizations and Government Publications

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1&9

Unpublished Material

H

"Junior Conferences in Management Development, Descriptive
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"Knowledge is Power," Descriptive Material Regarding the
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material, n.d.

 

"Personnel Selection," Descriptive Material Regarding the
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material, n. d.

 

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