THE PLACE or HUMAN “Mucus
m scuemmcfi MANAGEMENT

Thais. fat flu Beam #3! M. A.
wcmm sun came:
9hiiipf my Raga ‘

11111111thwumwmuuwitifll

 

1405 7396

 

 

PLACE II RETURN BOX to roman this checkout from your record.
TO AVOID FINES mum on or Mon duo duo.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ms: puma [‘5‘ 55mm a'nmxcm n? swarm-‘10 ‘L‘J’AG mm

min? F1973? 3“”

Submitted to the School of Graduate Stud!“ or ‘Eflchigan
51:31:. 601107:- of Agriculture and Applied *zcionco
in prtitl fulflllmmt of tho rquirmfio
for tho dog". or
fifiFTSR OF ARTS

Departmant of Bud non Adminiutntton

1949

Tank? SP crvvsza
~. ....~

*1“

 

Chnflfiar 3.35.1.3 3.3.1?
I Swelomant of Sciontlfla Yhmgammt..uuu......u 1
II A Chtllongouc....oo................................. 12
III Thu 30:00. Camnuny: A Case Study................... 19
1? Outline for Overall £311,331: for I Coamny.......... 4O
‘7 “Chock-1131:" Question: for Anny-in of u Cmnyuu 81
3’1 rmppar Rndio. Inca A Can Studynuuuu..un 65
VII Tho Elm-nu Element. in mgnnlution....uuuoua..." 61

'J’III Th. Important 0’ Ladorlhipgooooooocoo00000.00000.0 70
IX Eindling PNPIOQnoocoocouoooooooooooonoo¢coaooone... 82
x Conciuntonn and.Rocoamondationl.o.o..o.............. 92

5923051311 Eaf9uncu00000000000000Gal-0:00:00...oqooQOOooom' o. 99

grammar? or: an owner "my: wear

 

were then any other individuel. Frederick fiineloe Tudor ie
reepomible for the eyetem known ee eoientii'io mmgement. It there-
fore eem fitting to review briefly hie beckground to e eetting for
the eyetn.

‘reylor lee born in 1866 or Phil-dolphin Quaker peronte. end In
employed by the Siidvele Steel Connery in 1978 me e laborer em! leter
eel-red hie epprenticeehip ee e. pattern-miter I113 mchiniet. Sub".
quently he worked ee the act, mohiniet, lathe gong-boon uni-tent
foreman. meter mhenio. chief zit-enema, end come to be chief engineer
et twenty-eight. Snob extensive, motion experience (during which be
ettonded «liege in hie ewe time to further proper-o himelt) acquired
in eo ehort e time. identified him ee e no of extnordimry energy.
determination, end wrpoen‘”)

PM the the Taylor beam lethe gong-boos until he roee to tore-
mn three yoere leter. e curiae etmggle took piece in which the per--
eonel frienhhip between the («emu and iuaieiduoi worker In oroeeed
by the bitter Maggie boteeen the foreman em! workmen u I group.

The letter ought to regulate the quantity of work produced to prevent
treditionel nte—mtting. In thie Itrife he no fortunate to have the
more' covariance. primiiy bowie hie upbringing he not that of
the rotten. u be no from en upper middle-ole" fondly. Aleo. tho
feet that he did not 11w in the worker omnity precluded hie being
eubjoot to the eooiel groom" that bioeed other Ice fortunate moor-

vieore. After he eee mde tot-mu, oer-are! friende eeked hie edvioe

.1.

in regerd to incl-seeing output under the prevailing price motion
He told them, friend to friend. he would reeiet if he were in their
poeition to e sorter. floreover. he one certain that the elnoet eon.
etent deily piece-marl: pay (due to rote onto it too mob production
reieed.engee eubetentielly ebove the onetooery everege) nee due priv
nerily to management'e leak of knowledge no to whet eonetituted e
fair dey’e work.

Accordingly be pereueded hie enplqyer to eponeor eone epeoiel
.etudiee edth reenect to e feir dey'e*enrk. He eeted thie on the
etrength of hie fine record of boring increeeed production where
omntleee othere bed foiled. Initial etudiee to determine criterie
{a e reeeemble day'e work led hin ultiutely elong ten linee of ear--
perinentetion. One releted to the toole. neohinee. end enteriele
(motel-cutting) end the other to the eorkmen'e nethode oi' hendling;
theee toole. nohinee. end meteriele - tiee end notion etndy. The
firet eeriee of experimente III continued et Bethlehem Steel, end led
to the diecoreny of high-epeed eteel, rerolntioniling the ert of motel
enticing. Out of then «permeate grew: the eyeten of eoordimted ehop
nenegenent Inter kneIn ee eolentlfie management.

Tqylor‘e convictione were treneformed into exporinentel conclu-
eione eubetentieted by eyetenntio. orgenieed notee node for eererel
or hie one end othere' experiment“ At Bethlehem, he inoreeeed e
nen'e pig iron eer loeding oepeoity from the preveiling 12.5 tone dolly
evorege to ‘7.8 tone. double even the‘noet optimistic eetimetee of non-

potent upeflieore. Bethlehem ehovelere reduced long ton handling

ooete of ore from 7.2 cente to 3.3 oente. by ecientific shovel eelocc
tion. increeeed my. end better work cleaning. Under Teylor. thirty-
five men bell-beefing inepeotore performed the earl: previouely
handled by one hundred twenty noun. end with eecurecy improved too-
thirde. Additionel edventenee were doubled pay. 10.5 hour deye reduced
to 3.5, end four epiced rest period- deily. In en ebove-everege eechine
ehop. ruler proved thet en everege nechine (e lathe in thie ceee) pro-'-
dnoing utiefectorily. could be chencod end regaleted in regerd to drive,
opceted eith the eid of e epeciel elide mle. end thue yield tine eav-
inge 2.5 to 9 timee the exieting average.) Gilbreth'e cleeeio brick-
leying experiment inoreeeed the old etenderd of 120 brioke per hour to
e nee figure of 350 :3: hour. ell or which one eccmliehed by improv-
ing nethode end annulment.z

Throughout ell theee uperinente cereml eelection or northern. trein-
ing. end job chengee for the unquelified were oeceeeery. Alec. the co-
operetion of where one coneietently maintained. beoeuee Taylor made
them feel thet he “Merely bed their beet intereete et heert. In eddi-
tion. their my one inoreeeed end opereticml difficultiee were removed
by mongeuent plenning end one fecilitiee. All the dieting eyetene or
nenegemnt elloeed the non generelly to "eelect theuelvee'. which {re-
quently reenlted in ace eieplecmente end reeultent lee quantity-quel-
ity output. Their correct pleoenent one in the bet intereete of ell
concerned. In the one or the gig iron lending. only one out or every
eight men in the cleting oreee nee phyeioelly eble to uintein the
higher-mid 47.5 ten deily output. Thoee diepleced were treneferred
to gate for ehioh they were better gunned}

Taylor joined the Amrioen Society of Mechenioel mineere (5.3353)
in 1886. The em ya: 3. 3. Tune. preeident of Yele end Toene Venu-
feoturing Coventry, proeented e paper entitled. "the Engineer no u:
&ononiet". Tome pointed out thet umgenent ie more then en expres-
eion of executive ebility. To ineure good neg-segment. executive ebil-
ity met be 3oined with ”e pecticel knowledge of hoe to churn. ree
cord. enelyee. end compare eeeentiel tecte in reletion to eegee. eup-
pliee. expenee eceaxnte. end ell elee thet entere into or effecte the
eoononv of production or production oute'z
' Of the immune pe‘nore [reunited within the neat ten yeere. feylor'e
"A Piece Rete Work Syeten". offered in 1895. wee the meet noteble. It
empheeieed hie differentiel piece rote rether than nemgeriel princi plee
implied but not epeoifioelly uprated. Teylor he more than e little '
diuppointed to eee hie heeio idm hi1 to gein recognition.
”Sshop Mmgmt" nee preeen'ted end diecueeed et the 1903 meeting
. of A8333. In thie now he ettenpted to correct the inpreeeicn of hie
preceding work. ”A Piece Rete dork System“. Be specirioelly eet forth
the ein beeio principles of hie version of eci entitle augment:
l. The objective of good augment ie the combimtion of
high engee end low “it eoete.

2. ‘l'hie objective one be eohiered only by the epplioetion
or etriotly eeientii'ic nethode or reeeerch end experi-
ment to the etndy of the deteiled problm of mmgenent.

3. The oetebliehnent thereby of lem or principlee ehich my

be expreeted in etenderde of procedure that give control

of onereti Olle

4. The eoiontifio eoloction of uofkmon. motoriole. and
wooeeaee. and tho establishment of working condition
to meet the requiremente or the etonderde.

8. '1’!“ eoientii'io treining of the workmen to improve the

application of their e'kill in accordance with tho
etlndarda.

6. 1')“: oetabl‘iahmnt of ouch intimte and friendly cocoon-
etion between mogmmt and workore on to insure a
etebility of the pyohologiool environment of the shop.
which would mire poeeibie the apolioetion of ell tho
principloe above end the utilisation of the mohaniem
to give thou effect.

II. 1.. {mutt eubofitted an article entitled. ”Training madman in
Habits of Induetry and Cooporetion" et the 1908 ASE‘FE convention. Gentt
on strongly oppoeod to erbitmry, eutocretio not: and deoieione on the
part or management. Coneeqnently he etreeeod tho dweiomont of mode
till batman employer! and employee“ fiie approach on to imiet that
mku‘e' efforts resulting in lower unit ooote ehould be abated with
those worker: thru inoroued worker earninge. Ho etrongly believed
that driving and exploiting wot-icon met give way to a policy of load-
ing end teaching. to the mtuel advantage of all concerned.

By 1911. Earrington films-on had difforod with Taylor in one im-

2 Both men agreed ineofer

patent roepoot, i. e... plant organisetion.
ee tho following, winery breakdown wee concerned:
1. Analyeie and accurate oetimto of productive olanonte

and preventable Into.

.5.

8. Stomkirdimtion of o’wteinoble partamnoo maximum.
3. Incentiree devised to shoe employer-employee intoroete.
ere parallel in attaining or hettorlng atonderde.
Taylor” organiution model one a. highly epooielieed. well-defined
uteri: type or “mnctioml. force” having two grimy-y divisions:
1. Planning
a) order of tori: clerk
h) instruction cord clerk
o) time and out clerk
d) dieciplimrien
8. ‘aooutim or operation
e) 23:15 boa.
1)) speed boss
o) impeotor
d) ropeir bole
Under this typo or organinetion ouch wofizor reported to ell eight or
the above epooieliete, at different time. depending on out kind of
help he oeodod. Taylor ohooo moi: an organization heoeuee he one con-
etently impressed by the difficulty in obtaining; in the individual
wmieore the voriedend epooiel infatuation end the different motel
end ml qoelitioe neoeaeary to perform all the dutioe nooeeeerily de-
nuded. Elfia orgeni ution ellmd no half-onetime in order to function
eetiefeotorily.
maroon mt back to the old linoutypo orgenieetioo but eupplemonted
it eith experte to guide. instruct. euggeet to, end oou-mel tho regular
line otrioiole. Thin nae e econ-oozed with Taylor” «tram moctioml
organization-type. and ie quite eimiler to oar-rent organizetion philoeo-v
phy. It ie between the rigid line type and the highly fluid functional

typo. Emerson directed that eny'givon oporetion‘e circa-uterine be

dmlfi with by the limo exawtirm. “worked and advised by staff
offloars.

‘Pho tom ”scientific mmgomant" may first usoj in Taylor's book
“firivtci plea of“ Scientific “-amijoznont“ and in tho Specie-.1 rouse Commit-
too hearinga (coo Phauter I?) inifiinted by organized labor to ourvoy
the affect oi‘ Tag-glor's method; in the tifatortmm Arum-11. Public inter-
out boom-.29 intemo. sushi-no.1, and o nouroo of comidornblo apiritad
discussion. Rio hock was translated into Iovon foreign lunguogoa.

The tad-romeo, unfortunate) affecto of the period following the pub-
liaising and popularizin; of scientific managmmout may be attributed to
auroral baton. Formoat ms the roporting o! the romltn of three
viowpointa:

1. those uhO'woro oincoro but conservative duo to professional

ethics

2. thorn biased by the dooiro to find controversial. reaudiat-

ing avidonco

8. those biased by preconceived philosophioo
Craft union appetition seized on unfortunnto. publicitod illustrations
and atatammnto .. taken out of their context or distorted.

?ho outbreak of world an: I, which just procodad Tqylor's dotth
in 1915. canted t motion demand for production that caught his followers
unprepared cud without odequato moihodn. Emerson's approach an: more
rapid than Taylor's, n+0“ secret was continued progress by evolution,
not rivolution. The sudden demand touod many solfootylod ”efficiency

exporta' serving inru manner that brought undoeorvod abuse and

«u?-

criticism to the true orpomnhs of better mmgtmrrnt from those who
failed to distinmaish between tho cmpotcnt snd the opportunists.
Taylor himself mule rtcmrmrts m the affect that incroncrd indentivs
{my mzimm should bo- aizty percent of the aims effort return bo-
cmxco ”it doosn't do for moor. mm to pat rich too fast". Tho stato-
mnt's srbitmry quality concoalc the logic. that tho moons of sttsin-
ing the sort-rs wtmh should in: mid to? in addition to mangomofit’s.
stockholcisrs', and mastcmm' logical claims for stun-cc.

Anothor unfortunate: and pox-1mg: inomplsto statuacni: nude by
Tsylor m, ”an“: constitutes s {sir day's work will be c question
for scientific investigation instead of s mbjsot to ho bsrgsimd and
hagglsd over." At present scientific investigstion lam more mostly
a mars of reducing guesswork in rsgard to 1 subject shore collective
bargaining is new standsrd procadurc. In tho #09:th Arsenal hasn-
ings i'cylor recognized the mood of collective bargaining by stating it
was modular)! to moi: labor halfway.

acupunsiblo, but poorly infomod. social scientists oitori ss cam—m
plea of mnagmnt‘c use or the system. various ins‘mnoos of speed-up,
scorch tins-studies, and rate misting. This clssrly highlights tho
difference batman aziministrativo policy and cpsrctivs mmgsmmt. The
csmo criticism my in iii rooted sgcinct my systom of assignment, which
mar-sly pus-form in sccortinnco with the dictates of farmland policy.

Incentive or officionoy rmrds mm primary commas-skim in
either tho Taylor or {shaman systems. fissioslly, saga incentive plans
srs of two gonorsl typos, straight picca sorlr sad cranium or bonus

schsms. F’isss sari: is tho oldor snd ususlly pro-viii" for incidsntsl

-8-

non-proéu tivo interruptions. Failure to prowida for unusual, extan-
aivc interruptions beyond the oparutor‘a con.rol and seapordizing his
income uacurity has bann tLa usual shortcoming of this type of incen-
it'o. its most chjoctiombln :‘T‘mituro is the. 391059? practice of rate
cutting; war. the jab cuntant has not charged to justify the cuts

Premium.pnymunts hava bean devised by numerouo individuals and
groupa, but the Gog‘nmtc, distinct types are Ionamaat fewer in number
auu to a minor change being the basis for n naW'tifilu. All have one
common, dintizmt characteristic, mmzy. a marantaod base rate um}
premium pagmnta far gsz‘oluction beyond an establiahegi standarci in unita
produced or producti :12. time; required. In cans were indiviamal work-r
output 0 anot‘ba detarnined, group incentive plans have been devised in
which the grmp terms is divided in prcportim to base mites and tins
'workad.‘

It is astimntac that in 19%? ncra than half the workorc unplqyed
in graduation proceaacu were undgr coma form or incentivé systam. Avnr-
age incentive earningu in three industries surveyed proved to ba twvlvo
to eighteen gar cant higuor thfln hourly earnings of day workers in the
same induatriaa.5 In 1946. thirty-five yanra after scientific manage.
want; me demlomi for nae-1. 3r. 3?.an Hagan. Cmrzisaionur of Labor
Statistics, gave one of the hast current darinitions6 P the basic
roquiromanta tar maximum productivity ~~ a definition which is unmistak~
ably like those of Taylor and éwcrsan:

1. Ehterial flow {tea 0? bottlenecks.

2. Heater“ onuiammt and moi-mnizntion.

3. Impr wed method“

4. High volumo 59.1% to man possi't..-lo ig‘u productivity.

6. morale to boost productivity.

In the light of the ac'niavaments. it. mom quite amropriuto to con-
cludo that America's most significant cantri‘oution to the industrial
revolution is sciazxtif‘ic management.

The but of typical :mmgemtmts. Just; urior to the turn of thc
century could null be tut-m -“ "initiative and incautivs". ”-3321 gave
their best (brmdly, initiative) he utilise the: mass of tmditioml,
“rulznoi'dimmb” knowledge imparted to them by various methods. In
return the worker raceivol varied, prcportiuml incentivw in tho form
of promotions. shorter hours, higher wages. gcod vork'r'; conditions,
incontive my, sud "personal comiderstions".

Is combu'isonpotwun the traditional and scientific ur new mange-
mat; systems reveals six pri'rm‘y differmwou

1. The new syntmm sssu'nws rmponsibility for gatimflug L11

im'orrrntion pertaining to x 30b and making it available
for mm by clasalfying, tabuluting, anci reducing: it to
rules, laws, and farmlan-

2‘. The mm ayatun prwiclm that the worker and}. be scientific-

ally Curler-to: and traimd.

3. The sciantific method straws: cucgmx‘aticn between workers

and {mmgmwnt to facilitate ummtiur-s.

4. flag traditioml water: had assigned mjor effort tnd remnan-

sibili’sy for {mrfct‘mmm to tho VOI‘RQP. sad-zone cnly racecourse

ma performance an best; he Irma-.- huw from personal exn-rioms.

Gciontifio mnegemone about” I logical divieion of
effort and roeponeibility between mmgemnt end vortex-e.
6. tradition“ management had made eome elight an of the

first three points ebme, Mt nowxr hed considered than

important. A: to tho fmrhh point. the work problem in

”up to the worker”. rather than being the reepooeibility

of malignant.

6. Scientific mmgemant'e bale wemiee ie the teak idee.
phoning, ee e «Animus. ouch tomorroe'e tut today.
>- fluent-inc mmgmmt. eepeoielly in ite cam-rent form, ie more day-

Dondont upon reel leadership than the lee: productive. older eyetem of
I mmgemt. The ert end eoienoe of mnegeme are definitely distinct.
Alec epperevm ie the neoeeeity of enlightened souroee of edminietretive
policy dweloment, for here reete the ultimte dotomimtion of mnem-
mnt euthority. It would be troll to reoell Teylor‘e etetement before e
Special House Committee in 1911, ”I! the roeulte of my earl: were merely
to inorooee the dividende of mmfecturing companies, I certainly ehould
not devote my time to thie object. Scientific mmgemont ie for me,
than. primarily e mm of bettering the condition of the working people.”
It in the author’s opinion that the :55 or loientitio mmgenmt lien in

the handling of the lumen element inherent in “reylor'e reel objective.

-11..

f7?zl‘:"f'"§". II

 

A (71111.1-1171713‘:

 

 

Although it; is €11.13 that}. i=’z;lu11“.;riul waif-101i: in this country sur-
pass 35.15.11? ac 15.1. ram-z mm: i“) a"; oiimr 01.11-11ny, thus-z: is no.1 1m cab-au-

gf'hogi of #111111 1:310:12: in 5.141181“. wry

3

11.1.3 110032139121?" . or a more soimtif’io
to koaj pace wi th our economy 6.111.! to my ' the challenge: 0:" union labor.
"sinful 1301:1113? tier. 0." the :“as‘ta cannot $3111: 1313'. to than conclusion
that if mom) sci ofiif‘io muff-.011: of mus-.ggnatz'; 11:921.) universally 8.791 10:!
to inmetrinl opzz'atio'm, tied w-lo 11 mi: 1" this science would be .he
most important c.-.;i~.~:'t..t1c:e in 111111;. : sine-3 ‘im inzz'aluction of‘ the factory
ayatsm 9.212! 31111:: me Kit-.1113 "“9 facts of" soiantif'ic wing-21:11:11.1: am
‘mriod in acazimio taxtliooka (113. technical tr-Jatisou. T119513 fac2.a
u1.291113. 33:3 ‘Jruugh‘; to 1111‘ 4- and 17.14.; into fem for m‘nlic uniarstanding

1.! acacpmnco.

5‘7: tho 3113‘: fifty years or more it 1111:: boon a prmo-i but not 5-911.-
11111111; a... 11mm I'm“; Limat the 1.1.19 0'." aciantific 1111:1113 3.31. 121.1 :13 in
industry raaulta in hig’wz‘ wages, Ut‘rri‘,‘ onjloynovm. uarm-m1:Il‘cmzlths’hion,
louver 1121 it c0318, lam: 923111115; prices, rocaior mriwts. and inomasozl
profitw. For a verification of this 01111 refer-once $143911 only be made
to the rermr‘raf'wle accomplishwzshs oi‘ i-‘z‘oduxiok 2' 811110. ' Taylor (18. ’36-15315),
30.111111. of solo "tific 1'11 111111110111,- 11111 fizo the 1:117:31: aqmnt 11:11:31.0?” a number

1133133431111 zoie.‘:icts who 3021:1113} him, .1123“. 1111 Y‘art'u, Can‘ht, Gil-

broth, ‘Emrson, and 111:1; other: who, collact' vol), cannot-11:1 t‘ 011mm!
01" experiments 111 t‘.’ r: {:32 (3 plants: 221' our 5.1 r5132: 2. .1! foremost industries.

atria; pried ot‘ about sixty yours the 17113129531111 of scientific

mmgmt have bow-1 in tho procee- of development, and during the past

-12.

thirty your- hove been oppliod in «no photos to o comma-obi. “toot.
Today, cmloto aoimtii‘io mmmmt is in operation in only a vary

for companion. Comm phases of it. however. are being onpiiod in a
largo number of companion. Witness otter witnou connected with nongo-
mnto who uplqvod those toothed“ tutifiod before 3 Special Bone Con-
nittoo in 1911-12, on: proaentod In impruoivo array of facts concerning
"cult- ut‘bainod. - groatnr productivity, grater profits. higher wages.
om! roduood prices to tho consume“? A. definition of then method. in
equinhm; to o definition of ociontifio mmgmont. It in the “tain-
mnt nod coordination of o W utilization of human ability and

energy plus on optima utilisation of technological renounce and facili-
ties, justified by accurate, scientific analyse: And manta-at.

It in obviouo to the intoroatod basins" chumor that m hovo now
entered on 011 wherein new and otnpgmmoding Iorviooo ouch u hum
"lotions survey” moment mdits. intorml goblin relation- insulin-
tiono, industrial relation. ”rum. nod mn-ouchino-hmr utilisation.
on incoming: «notion in 'tho duelopmnt or ooond organisation. It
thin or. in not to be oontimnlly confusing. it ”quires that governoout.
mung-mart, and labor bo mindful that thoir cooperation toward a common
«on in vital to our induct-mini lupl'moy. A. I matter or not. tho
ootud intensi- of mug-mt and labor or. animal. on. being umbi-
to prosper vithout the other. Ra on. bu yd: dariud o. my of producing
good- withwt tho application of human effort. 1.... work; hither has
anyone divinod a mthod of mating tho oompliostod nod. of present-day
11m without magmmt .. ciao. the thing. '0 min and market, the moi-

told union to on consumer: require, dmna mrtommo by group:

.13.

uhoee mitiferioue efforte met be coordinated.

Yhmgmt, on ite eide of the fence, he been prone to believe
that higher ngee. proportionate to preeent living ooete end to etend-
erde of ednoetion end health desired by labor, will inoreoee their
product ooete end deoreeee their profite. If mmgement were convinced
to the oontrery, thet in not efter the proper epplioetim of eoienti-
fin augment nethode to its bueineee it one proved thet the onpoeite
is true . merely. that [higher earnings end eegee controlled by nor-ml
etenderde oi‘ prformnoe end (taper incentivee (both fimnoiel end noo-
i‘inenciel) would inoreeee their profite end deoroeee their unit costs -
mneaemmta throughwt the country mid gladly emotion higher wage
eoelee olue inoreeeed earnings reuniting from equiteble incentives. A
mmber or theee pointe ere illuetreted by the one in Chapter III.

Lebor. on its side of the fence. demode higher pay along with
better writing oonditione end aethode. In edditioo to thie. the ever-
ege worker cheriehee the deeire to participate in my inoreeeed finen-
' eiel moose of the company for which he works. to the extent that he
contributee toeerd production our end ebove mmgemnt'e breakeven
point. The everege eorker eiehee to become e pertner eith management
ineo’er ee hie mrtimler eat ie concerned. He deeiree to be eppre-
oieteri ee en integrel pert of the company which employe hie. Indian-
tiooe ere this the worker note to be paid. first. en equiteble be"
communion: eeoondiy. no incentive over beee pay for 500:! production
ebove etenzierd pot-9mm” end thirdly, eome tangible recognition of
productive ideee or ingenuity contributed by him for the benefit of the

C MFR)“

Integration of the ebcre fine of unegemt em! lebor can be
eccmoliehed to the eetiefnction and benefit or eeoh. To be convinced
of thie feet. augment end labor met eee. by ectuel maple, the
reeolt of their coopereticn by the epplioetioo of eoientii'io menagmnt
winoiplee end realize thet each epplioetion corteinly can end will be
of benefit to ell concerned.

The mjority or induetriel mnagmam. u the; thomeolvee-wcll
know, todey employ indifiduel photos of eoientitic mongemnt in e
piecemeal {union to eoocmplieh certain epooifio reeulte. Likewise.
nanny lebor unione are realizing the benci'ite to their motel-e of the
me or certein phone or moro ecientii’io nothode of mmgeoont. The
difficulty inhorce in the foot that mmgamcnte and labor unione do not
know enmgh about. utilize. or correlete all the pimeee of ecientii’ic
mongment whioh ere neceeeory to realize e high etemlerd of living end
inductriel production. iurther. mongenoote and labor unione here not
ee yet developed eurficiont vision to cooperate in thie omen canoe.
There to tell: of it. but little or no notion.

It my be helpful to liet e manner of’ benefits that would result
from augment end labor mticimtlng Jointly in n more scientific
epproeo‘n to the eolving of their 'probleoe:

l. Incrooee in production in proportion to equitable eases
eni'i’icient for 1 high etamlnrd or living, eeourity, edu—
cation and health for ell Iorkere.

3. Improvemont in mmfncturing methode end procedural.

3. immanent in working, conditions.

-15.

4.

5.

Bo

7.

8;

10.

ll.

12.

Inoreeee in non-hour end machine-hour (burden and capitol
lnveetmont) utilizetion. .

Decreeee in meledjuatmente or etrife. if env. existing
betwoon'menegcmont end labor; greet influence toward oo-
operation.

Ettebliebment of oooiteble monetary incentives end eociel
benefits for‘eorkere in cooeidoretion of production and
ideee profiteble to nnnegement ovor ite breekevon point.
Improvement in'lork mothcde. thue decreeeing fetigue of
workore end resulting in butter work norfornenoee
Decrease in unit coete an e roeult of the foregoing bene-
rite.

Broedonod market: end nee'ueee for manufactured producte
ee e reeult of lonor unit coete.

Increeee in ennlqymont ee e roeult.of inoreeeed eelee.
Development of the‘underetnnding between nenngement end
labor, through cooponetion, tnet thoir intoroete ere
notoele

lneurenoe of.&mericen induetriel eupreoeoy.

Theee benefite oen be re-etnted in enother Iey. cleaeified accord-

ing to the recipient: of the benefite-

1.

For the‘fietion: an economy etebilieed through neongenonte
labor ooonoretion; maximum emnlqymentg induetriel
eupronooy; highor etenderde of living; eeonrity;
better education end heelth.

For the Genera more profits: entiefeotion of beneficiel

eooompl iehmnt.

3. For Gporeting Lhmgrmmt: lowor unit costs: victor mrkste:
inoroeood solos.

6. For tho work”: high” wages, noro $0759: :20 etrifo; inter-
oet in work: bottor living ona.worhing conditions;
odocetioo.ond health standarde rained.

6. For the Consumer: bottof oroducte; lunar gricoe.

Tho oritor’o experience in e wide variety of congenioe has con-
vinood him.thnt e propor porepoctivo and acceptance of the place of
human relations in scientific monog mont will oontributa'vitolly to
the oooporetion eo oasootiol to tho ochiovoment of the benefits eug-
5actod libero.

Aotuel oaeo studio: of common: others scientific mnorooont prin-
oioloe end mothode have boon apoliod with none dagroo of conniotoneea
would ho invelunblo no e54: in spreading the ”gospel”. As the writer
eons it, when tho Continuiwg Education $orrioo of ”Schiraq State Collage
has bocoao firmly establiohod and ite eorvioos to influntry usil-eooopted
by the gaoarel yublio, it will be in en oxooilont position to ouroy on
eomo experimonto and develop case studies of this tyna. Data oouid be
antelope! that might: very well have revolutionary eff‘oote on iorhntry
in tho Ztato of Viohiran, not to mention eignificsnt implication: be-
yong otete hounderioe.

fliohignn ie one of the loading industrial etetoe in tho Vuion,
having toll ovor‘eix thousand manufacturing pleota of verioue eieee.

It otfore ozoellent facilities for tho indianutablo proving of the
workobility and eoundnoee of scientific managonont. Given e fcu'rooop-
tivo emell end modium-eieod coopanioe, plus the oxtonaive resources of

the College etteoking the problem froa the iooartiel, eoientific

-1 7-

Itendooint of o tron institution of higher learning, fruitful rooulte
Ihould be forthcoming. The entire ourcoss would be to develop module
that could bo used as training devices in improving tho management of
othor communion.

Yotamount a? theory or words con taks the place of an actual
picture or example or what can be accomplished than comm: appreciation
of tho mtuelity of human intorosto comma mnagnmont and labor to co-
ooorato. Tho dcvolopoont of such «XAmolcn as are mentionod above.
will providO‘tho oonortunity, with tho nooncorohio of the College, to
prove conclusively to management eno labor that their interest ere mut-
ual, ans that they can work togathor for tho profit and hsnafit of
each. The results of those examples will ioyluonco othor companies
to improve thoir operating etacdcrdo. Tho potentialities of o etuto
program can crouto industrial accomplishment far ahead of any other
ltato in tho Vniono

In the final onnlyelc. when scientific manogonont is undoratooa,
it is simple end easy. ”r. Everett 3. Karrie. formerly Chief Industriel
dnginoor for the Atlantic Hofiniog Company, once declared to tho writor
”Scientific Fanngamont is one-third common eonso, coo-third ordinary
ability and knorlazigo on tho mrt of :mmgmont and labor in any given
industty or trade. and oncnthird eoiontific analysis. application,
justificetion, end control”.

A oloersr undaretendiog of the coolication of both tho acianco
end art of oanagomont (Including the function of hunnn relations; nan
best be etteined by tho examination of on actual coco study. Chapter

III is intended to carve this purposo.

-152.

mum-3?. m

“‘77:? 1,-,,-_~,-,¢-. rrvnfisw. fl. Hf" “m1"

 

or!» once cute to the writer'u attention in 1944 when the War
Labor Board wna still in axistouco. The facts of the cana are nub-
otantially true as related, but all nnmoa are fictitious.

The Roscoe Connnqy. lovatcc inwupnar Fww'Ycrk ttate, manufacturon
Itool Iira troducts, cnd was founded in 1345. At the ting of this
case old Clint finccoa was provident and solo owner of tha nntnrprioo
which had been founded by his grandfather. whoa thn third Roscoe in-
haritod his fnthar’s mantle it 1914 it “no a ragrcd ona. ”ha father
had upoculutod with the firm’s anacts in the money panic of 1907, which
loft tho comnany in a greatly wankanaa condition, oven aftnr ocvnn your:
bad clam and.

Clint Roscoe's makodup was quite oinilar to that of his grandfather.
He was chroma, resourceful, and concealed of o tenacious dotarmination
whon‘working toward any choaen objective. At tho enthrank or florid War I
he want to tnglaud and baggcd a sizablc our contract for barhod wire.
0n the atrangth of this he can able to borrou'udflitionul monqy from the
local bank. Other war coctracto follovbd and the and of tho our found
his company in ozoollcnt financial condition.

than business alumna} in 1931, he bought a small manufacturing
plant cont door ct a bargaia and than effected extension nltorutiono
to dovetail the nou'noquilition with his own oparntiona, cud to proparo
for imorovod businaoo. In 1929, interacts identified with the local
bank offarod him $8,000,000 oath for hi- comoany. to hold out for

$9,000,000 cash and 3 place on the bank's board of diractora. Aftor

l
p:
w
l

considorablo dickering his harms wore finally accepted. and in August,
1929. he cold out, giving tho now armor: the right to continue opera-
tion: under tho some connnny name for tan years.

At tho beginning of the ensuing d procoion ioocoo bought a control-
ling interest in tho bank for $1,503,001) cash. 73y August. 1932. t‘m
Roscoo Comonny had nlmont coaxed oporationo. Order: had fallen off 70%
from 1929 and tho labor forco’hnd boon out to one quarter of its 1929
Iito. Three months later the commny was force-J into bankruptcy mi
Clint Rococo was opoointoi recoiVar. In tho legal proceeding: which
follovol Roscoe managed to regain control of the company for {2,530,000.
At thin time there'uoro two other manufacturer: in town mak‘ng niacalc
lanooul stool products. He bought both outright for a total cash outlay
of $2,000,009. Tito the throo cooonnioo ho controlloi, in normal times,
about 80} of the town's labor force. Tho othor 233 was occountoi for
by the oorvico trades.

In 1933, after to had pulloi his bank through the nationwiio finan-
cial crisis. ho ostoblishol his plant wage level. at 15% abovo'WRA rat...
just enough to discourago worker: from going on relief. in than incor-
porated his two new manufacturing holdings into the 303000 Company as
Plant: 2 ond 3. Eu conducted oxtonaivo oltorotiona and purchased o con-
siderable omount of now machinery and aquipoont. Ea hire! three expor-
ionood iniuotriol angina." to plant mrmgerl. with instructions to put
hi. plants on on officiant opornting basis. coat- to be cut to the bone.
Rococo told than he expects} business to ifiprcvo within eight or ton
months and he onntoi his company to be prepared. for a subutantial in-

cranes in onion.

.23.

m. mango" worked roll on I toms and not with him once ooolrlyo
Within three montho they hod oooompliohod the rmkohle foot or
oohbliohing In Ivorogo oommny hrookoveo point It 40% of capacity.

Soao of tho factoro contributing to thio ouooooo taro In Ivorogo hourly
oIgo rote of 55¢} modern plInt loyout, cororul routing of Interiolo,
tight production otondordo boood‘upoa tho performance of the moro offi-
oioot wot-Iron. ommw-gonerotod your, onlyobuilt nilrood oidingo to
the throo plonta. Ind longdtorn requiromonto oontrooto It loo griooo
with own“ important voudoro. to take offoct in oi: montho.

Duoioooo imp-mod for tho company for beyond ohot hod boon Intici-
ootod. Motion increaoori otudily until it onroged 603i of «paucity
in 1939. By Idhoring to the originol policy or keeping oxponooo It I
minioum. including on overogo hourly Iogo rote of 70f’in 1939, Rooooo’o
nonogoro (who'oero poid In.Innuol boouo boood on their efficiency) had
ozponded company profito enormously. Clint Roocoo'o peroonol fortune
had oliobod to $15,000,000.

The piorrt manage" felt thot I lorgo port of their ouocooo III duo
to tho foot thot they had tho labor oituotion woll in bond. Diooipliuo
«on; the mplwon no ootioi‘ootory. for oovorol roam. Firot, Rooooo
ondqyod shot Inountod to I loco! monopoly of labor. Sooondly, bio mono-
goro bod inouguroted I poliqy of diooiplinory loy-offo in connection Iith
tho nointononoo of production otondordo. One hundrod poroont of otondord
Ioo required It oil times. If. during I given‘oork nook In oporotor’o
offioionoy Ivorogod looo than 100%, Ind one Ittributoblo to Iny oouoo
other thou verifiod illnooo in hio imdiato tom! 1y, tho operator no

moo. If, during the throe ouch following thio Inning, tho operotor'o

~21-

woduotion again averaged leeo than 1001‘: in the one tanner. be no
laid off without pay for two working dare. If. during the month in.
uediatoly following, hie return toaork, hie production fell below 1001?,
he an laid off one week aithout pay. Folloving the latter penalty he
no required to saintaio at least three nontha of :00}: production.
Ctherriae he no dieohorgod. Aloe, the plant teenager-o bed on I fee occa-
aiooo imported a mll amount or oolored labor from Tenneoeee and Georgia
at ratee ae loo aa 60} per hour. to replace discharged looal ochre.
When World rear I! broke out in September. 1939 Clint Ezoaooe again
mde I trip to England and brought book three large oar oontracte for
I variety of ateel produoto. Forooeing I long ‘1’. he imadiately
erected addition to Plante 2 and 3. and inetrooted hie three manage"
to snob production to the limit. By 1941 the empany‘a plenta were
operating at an average capacity of BOT-i. Becaueo of inoreaaad ooato the
breakout: point had climbed to 6533. "filth America'a entry into the var.
a labor abortage developed throughout Rev York State. and rapidly become
acute. At firot. Roeooe felt he see are by inoreoeing Inge mtee aub-
etantially in I for akilled Job olaooifioatiooe. Thio increeeed hie
average hourly use rate to 85¢. Eventuolly it became oeoeaaory to im—
port I water of tool Ind die mkere all the way from Rev York City at
$2.50 an hour. It later developed that too of theae oer: were membera
of the united Stool waive-01 0.
The our tool and die eaters were nature men oith wide experience
in their trade and had obeerved the operation of production ataodarde
in mmroue plante in How England and along the Atlantic "aboard. The

Roscoe worker-a reepeoted the euporior okill and experience of theee men,

~32.

and gradually became diaeatiafied with their oonditiona of employ-
meat at Room. The new man advioed than that the Roaooe production
atandarda were unfair and the average age ratea far too low in none
pariaon oith the coat of living and wage rotea in other parto of the
waited Staten. However, moat of the workere had agent their livea
within twenty-five nilea of the company. and did not wiah to more elate-
vhora onlooe ahaolutely nooeaaary. The tool and die men countered a‘ith
the auggeation that I union be formed. an requeat, one of the new men,
who was already I M"? member, wrote I letter to 83W headquarter. in
Fitteburgh. explaining the aituation in detail. At the time the letter
one written the Roeooe Company employed I total lobar force or 6000.

In Auguat. 1942 the 1m: haldqulu‘tero diahttohed an organioer to
the Rococo Company. and within two mootha I aufl'ioient masher of oigna-
turoa we obtained to file I petition for a Rational Labor Relationa
Board election for oertif’ioation. li'he election nae held in Dumber.
19“, and to Clint Rooooe'a diemy the union wee voted in by an 85%“:
mjority. The new union immediately notified the Roaooe management that
it deeired to arrange for collective bargaining aeaeione aa eooo Ia poa-
aibla. but not later than Z-‘ebruary l. 1943. The union etated that ita
dmnda would be auhni ttad by Joinery 15th.

At the January board meeting of Roeooe'a book, he dieouaaed the
whole aituation in Iona detail with one of bio board when the III Ileo
e member or the 21.ng our Lahor Board. Thia board member Idvioed him
to engege the aervioea of a profaaeioml negotiator. imamoh II no one
in the Roeooe organisation nae akilled in the technique of collective

bargaining. He auggoeted the name of Werett Earrington. I well-known

.2 3-

eanegeaent coneultent in how York City. who had a reputation for fair-
eeee and time”. and who eae 1eellu-acawpaeitrtmi with and respected by a
wide range of internatioml uni on official» Eaacoe immediately tele-
phoned tier. tiarrington and a meeting was arranged for the next day. Aa
a raeult the magnum; omltant nae retained to renreunt the eommny
in the negotiation.

Preliminary to the initial bargaining mating with the union. the
consultant obtained peraieaion to make a tour of the three planta and
interview varieua nowhere of euperviaion. In the treuureru office he
examined financial and coat recorda in come detail. and in the planning
department be carefully etudied the figurea back of eatabliahad produc-
tion atandarde. He aloe conferred at length with the three plant una—
gen and ten repreaentative nowhere or choc auperviaion. After three
daya' intensive work Hr. Harrington came to the following tentative con-
oluaionu

1. Employee humour ran abnomlly high. averaging about 15%.

2. Production etandarde were not hand on fair time studies.

3. There waa a notable abaenoe of both financial and non-

financial incentivea for increaeei promotivity.
4. spoilage ran abnorully high. averaging about 105;.
a. General efficiency or the labor force me proabaiy hair
of attaimblee

6. FJorale of the labor force aae ahoomlly low. with a grow-
in; animoe‘ity toeard aaoageeeot. I

when Clint Rococo received the couultant'e til-at cooclueiona, he

one enrol-iced and .Mt annoyed. He had oonaidered that hia plant

~24-

managers. being camyatont and experienced inmatrhl engineers. had
been doing an mtstmdlng 30b. far. Burr-1:131:01: remarked that employ”
roaming ubility and national reactions are difficult: to blend with
a and. rule and "log“ tables.
"mat do you mean?” deei 3205600.
'1 mean that tho human rolntlom 31d. of your management job 1-
3.13011: antlroly noglootoch'
‘But we can't let costs get out of line, Hut-imam"
*Vr. Roscoe, management would do all to study its competitors"
gout-mm tnd union loaders-«who haw wounded in ankentng co-
operation and increasing mule mg their countituonta mil» .1:
the um. than taking money from them in the ram of tuna or that.
A: ‘n matter at fact, WW'I manger. will be matured am by
' the nature and strength of their followlnzthnn by .213 other
single criterion. Thus than mt he “find to th. lid: of attri-
bute. essential to managerial mecca thin dmimnt fluent. Do
you honcstly {sol this 01mm: 1: strong-nor ”on proaant~1n your
om armament?”
"“Apparontly not. judging from the ‘73:: election ruultu"
”rho mum". Hr. Rowan. will not bu simply on. or aocophnoo on
the part of unplayou, but unniatchblo «Mom. of outnrd admin-
“on cud doep lmrd respect. Implicit in this in an. assumption-
manly, that unegommt will find 11: annual to crate I. work
onvtromat tint it omgtiomllz cttnctivo.”
”rho-o no strong words. Iigrring‘bon. mat a an or your experience

Ind reputation mat know what ho'I talk? up; about.”

45-

”I '11 be a little acre opooifio. w. Elooooo. We lave oriori

mt our Iinoere belief that m are the basis for the suc-
cou o! the businooo enterprise. that: ooeooolinhuont can come
only through people. that management out think worlutingly

in tom of people—but we have "looted our monger- olmoet
aolueinly on the buio of teohni col proficiency end knowledge.”
"0y punt manager-.0! couru. It seem that. labor in no longer
I commodity..." Rooooo'e emproeeiou we door.

"2%. w. Roscoe. it in not. It in not even enough tom your

employed. It is vital also to Laden-atom them—to oodereteod

 

the complex motivation-o and reaction of human being in on in-
dustrial moiety.”

'mo do you reomod, Harrington?"

”The chief negotiator for the onion hero, is. on you know. Vick
Sande". I have negotiated with hin many that before. and I
have him confident!“ I nomad that m w: the union to go
along with u. on t onward form 175?: contact. ma tint thio.
together with o joint "quasi: for I 15:" increase in the logo level.
be Iuhaitted to the EU! for oporonl. This contract would run
for on:- year. but be eubjooo to mooning on epeoirio provision.
within 90 Goya. Thio would giro no a breathing spell to mice n
more dottilod study to a bail for permanently imam-wing your
lobomoogemmt "lotion."

"I'll rely on your judgment. Go ahead.”

Earringtzoo quickly worked out thin tyoe of agreement with Sunder-o.

and it: no coon accepted by union Worship ntifioatioo. on Sands-0'

.26!-

roomndution. The stop we made mien by Virtue at the foot that
no poviouo labor ogre-moot minted in one own-puny u e precedent. In
the meantime the plant maxing-ire had been mode keenly euro of the deli-
cate labor eituation, and wolomood my euggoetim from Harrington. It
one egreod to etort imedio‘ooly to racetudy ell production globe on the
halo of \Ihet the average. tether than the moot efficient. worker oculd
perform. It one also agreed to review Inge retee on the buie or e job
evolution, :0 that bone rotoe on all John mild be in proper relation
to «ob other. Then I sound basis would be established for zone type
or group Inge incentive to be negotiated with tho union. Finally. it
one egroed that there ehould be e oontimme foreman twining prom-en
in the moor methods of mpervieion. ”r. Kerriogtoo daily cemented
that he would bogin the training; program with tho plant mmgore them-
Ielree. Rick Sender. m inept informed of these more. and he egreod that
they wore ell unload-nit}; one “caption. ire doubted thet any type of
iooentive plan would to fusible, ut least until considerable experience
had been eowmloted with the rum production etendarde end bue ratee.
Town-d the end of the owner of 1943. moi; progrou hid been node.
The plant maggot-oi competent time etudy stuffs had done In. thorough.
efficient job of re-etudying twice end evaluating jobs. iforrington
himelf had worked unremittiugly on the training of euporvieion. ’dorele
of enployoee bed ingrovod proeptibly end it no ostimted that produc-
tivity bed increased about 10:. Rerrington then turned to the problen
of derieing 0. ago incentive plan that would be eooepte‘ale to both the
compute; end the union. Mtur I eorioe of informal telke with various

cannons? executives end union offioiele. as well us other intensive

fainter. ho grandma a written rope“; for Iu‘miusion to "r. Roscoe.
In his report ho rocmmndod odozfoion of the: Buck.”- "F'hu‘a of flame-
tiara“ “lam. In the two months of incuooion and nag; tint-ion which
followod, both tho union and tho commm- mro inmrostrd in ho plan,
but felt it was. too new and untried as yet. Commquontly it ms
shelved, at least temporarily.

Rooontly tho writ-«s: ”m5 advised by ”r. Yiorringtm. that a few months
ago ‘€r. Roscoe had “‘59:! him to mire an attire new study of the plan.
'uch of the ream-on for this roqnoet me tho comidamhlo publicity which
lately hat}. boon accorded tho Mac, ospocially i. tho Rood-"'3' Digest

(53:11:19)». 134.8) and in tho Fort York Bomld “ribuno ('31:; 23, 19412).

 

 

During noon tho extensive meant-chm! of "71'. Z-inrringtoo, the writer has
prepared o brief roport an the plan and oppondod it to this chapter.

‘Iuch 0‘." this information is now nmiloblo it‘s-a public owl-coo.

91‘!
‘4.

cm. O. Pvt n '1' ° . "
i-zc Rue-tar .__..-.c.r=:: a) rrwiuc’szmz an

 

int-mossy:
Thin plan, which is c tom of group production incentive. has two
outstanding enacted-tics:
l. duplicity
2. tho determination of production wkcrc' income on c fixcd
parentage of the min. added to my mtoriolc by manho-
curing.
The plan in dwalopcd by All» ‘66. Sucker. mung-moat consultant, cftor
his study of industrial statistic. convinccd him that the wag-l worker:
hcd boon receiving for the loot half century “groomed, in a given
induttry Ind in c giwn company. c constant or fairly amount consent-
.50 of tho ulna added to row tutorials. '1?“- {tucker Plan 1. not a

mum m1 two-

glyceripticu

It: distinctive f-mturo is that it relqtm mtg-cs to ”orcizxction
values“ - dofinod no that portion of the colors vnluo of‘ finished goods
which in crmtod imido the zinc-rat. For mmmpla, in 1 rmtor plant, it
tho offipomrtc of a mtor cmld be bought for fifty dollars and the
accm?.alod motor sold for two hundred dollars, the ”woducti on value"
erected wsld to one imndmd f! tty dollarc.

The plan io booed on. than thesis that. over the years, mrkom have
boon cmwiotontly go‘rting in was: I fixed wrccmmgc of tho vuluo they
add to procusod mtoriola and that in (my one compo” this porcontagc

has rammed conctant or fairly so. This tat-zeal: in the result or studies

~29-

of oommnioo' recordo attending; over fifty you-o. 'E'ho ratio varioa
from induotry to induotry and comm to company. but tho ratio may
to detox-mince! in a opociric company by a thorough anoiyoio.

than tho plan io in effect. the production valuoo for tho poriod
aro d Iteminod at tho and of a camouiont accounting period, nouolly
monthly or quarterly. ‘nocauoo or incroaood moioyoo interoot in clini-
nating uoto and improving prohctivity. tho employooo' ohoro of this
production va‘iuo uouolly mu avocado tho booo rats myron coat of
tho period. Tho mployooo' ohnro of thio addoti niuo io diotributod
to thou on a wo rota baoio. according to their roguiar ago ocaloa.

For mph, tho credit for a givon period may to 17%}; of tho haoo
myroil. John Smith'o regular pay for tho poriod, including ovortimo,
may to $272.80. Rio oxtra oharo of production oarningo io 17.255 of
$272.80 or 247.47. Thio ”homo” my ho diotributoi in oaoh. pomion
fund oquity. or a combination. Part ia nouaily act aoido u a noes-n
to mko up dofloito thorn, in any period. tho wort-era might not create
enough valoo to juotify tho baaio Iago ooalo. Tho rooorvo mud 1o
liquidatoti periodically. An actual can boot innotratoo hour tho plan
nos-Ito.

airing tho {int 44 rooka that tho plan no in oporation at tho Con-
tinental Papor Canpany, Ridgofiald Park. For Jorooy. tho company tur-
niohod 8G.BO0.000 of raw mtarialo. onpplioo, and ropair parto which ooz'o
modo into papa-board with a ooioo value of $9,625,0m. Tho ”production
value” on than $4,325,000, or the difforonoo bottom tho oaloo M60
and tho who of raw mtorialo. oto. Tho poroontago duo tho worker-o had

boon ootabliohod ”on accounting rooordo ao 30.51123. Thoir oharo oao thuo

8»l.4?0.000. Cf this, €1.19»),009 had noon paid in regular maxi; mass.
'i'hot loft a cradit of f;2¢_‘:0,00’3, he” :33}? of the moo payroll. This
no distributozl lo follows: inc-fourth wont to tho reserve foul; of
tho romining throw-(martin, half no nod to incrouoa the omloyoo'o
oquity in ponoion and inauronoo bonoi‘ito, and half we distributed in
out: very four who among all hourly workora in :moportion to regular
oorningo.

A feature of the plan, no indicatcd by tho experience of various
companion. in that it toads to incroooo not profit fast-3r than produc-
tion nines due to:

l. oncwmgcmnt of cash «wings in material: oné ouyplies

2. added imam! from increasozi salable nroduction

3. reduced overhead cost per unit of production

Cvortimo io diooouragod ao it is entirely otmrgenhlo to employ-ea

,myroll coat.

.F-Jtporignco Hogan-d ofého P132:

 

Tho plan no originally developed about ton yoaro ago, and io now
in use in fivo companion

Continent”! T‘lpoi‘ Cmmny, Ridgofiold Park, For Jot-coy

K. ’6". Exinfiy Conway. Boston, f-‘aszaochuoottn (minim of surgical
inotmmnta)

'i‘nilty-Ihoon Conway, floo'ton, "igneous atta {p‘zmrmooutical mm-
focturoro)

L'i'aboooo Cotton Company, Ltd... Thu-a floors. Quoboc

c-rangoburg "fomfaoturing (tenancy, Crangabnrgg. Wow Jorocy (mkoro
of tibro conduit for oloctricol oquimcnt)

The following rooulto afa‘ord norm concept. of how the plan has

worked in timoo companies.

~31.

fort} into]. "’11 nor C cam-1;:

 

In July. 194'! tho Continental Pap-zu- Comma); and Local 29$? of
tho ‘Cnitod Papor ficrka'o of Ana-Pica (no) aimed a contract (guarantee-
ing tho aployc. 30.5.13": of the valuo addod to their nro'hxcto by tho
mmi‘octuring wocooooo. The plan no aoooptod by tho union in lion
of a raga incrmo domnd o! riftoen conto. {indol- tho uropcood 15;
incroooo, an «uployoo coming, £66.45 a and: mid hcvo been given a
rain of 33.73 a cock. Undor tho now plan ho addod $16.56 in carningo,
almost toico that tho union aakod.

Goorgo Cannio. orcoidont of Local 299, oaid. ”Rodd” boing profit-
ablo. tho plan boo lod to clean: undorotanding and oooporation.”

Barry O'Clopno. Acting Area Diroctor of tho United Paper Worker-o.
oaid. "We aro much gratifioti with tho my thio plan is working; at Conti-
nental. to do not record it ao a ouro for all labor illo. It to otill
in tho oxporinontal atago but I. an hooray with rmlte thus for and on
hopoful for tho tuturo.‘

A CIO rogional director ondorood tho plan in than words. 'Thio
appaaro to to tho moot wngroooivo otop in labormagmnt hiotory.
no aro oatiofioui that it io tho an.» oocporativo induotrial program
over dovolopod.'

Continental’o prooidcnt. ‘i‘. J. Alford, in aloo hcpw about coor-
icnoo with the plan... Ho acid, ”It ombloo tho cmpany and tho workoro
to auto annoy with sch other, not fit of each other. to think it
will grow to to tho mrtcot thing our comm! and its moloyo- over
did.”

E. F'. ”ahaciy roam. n):

‘3‘!» 91m: has bash in use: about tar. gramme at this 00:13am] wring
“ a
the 3.“? mt yaw my! carom n'mmgea 17”"... of that? rznjulrm pay in extra

earnirgfa. T'hia mmmtsge has run up to 473': uf tha regular Rafe.

:ailhy-Favegn Company

 

The plan is in it s am'nnth year at +hia cor-mug. fixtm earnings
{3314 out during. the first year were 9335 o? the rapier myroll. Tinca

than that}! heart: inns-mead to armmd 3217-.

:i’amafilfiottm amply

 

This mmpany has hast: upgrating under the flan for almat five
years. hang. as war-amt! apnrozrimte 53;; 8"? min-a ear" ism thn first
year. The third your their sham was 371.11 . For the quarter ended
lea-ii 30, 1948, employs“ mod an additional 4975 of thair regular
my, ths highwt re... .9! 1m to that time: under the :z'ucksr Pia“. "tr.
Inclem- making: that this ma partly as to a ring in prices. It;
illustrn ts: Emma unis: thap ism fluctuations in {V1063 ara imodiatoiy

raflo-f-ta-i if: maloyan .mrnirifa.
gnaraburg ‘famxfacturitg Company

this ooanamg adapts! tha Dian April 26, 1943.8. signing a six-Month
trial agrnsmt. ‘t'r. Nth .. . Robertson, wsaidmt . var: Moor-tad aa

ont‘“ xaiast‘| a over the nmsibilitiu a!" ths val-am.

“3.-

..i"n**'u313 of tie: “Eco.

 

ii.

a.

1": :x‘ovidsa a ccntiatsom 1:12:31? “'3 for :32Lvi. 1.1m nroluctivity.
T‘s. in 3".“1113, ruquir'ing no {21-113 15431111135, pic-co ratcc, coffi-
ci 9.1ch r... .i 15.1, o‘sc. Cm» 11% or: 12 2131.1 to a minimm and
is miorctan labia to «1:103:33. Coni'inorzt'l! T’uper report“
”In och: a1 092'“an tho plan in ax'tromly simple. 1th”
roquirod no 11.! liti anal pzrconnol or rocordnxzoopicg.”
The 91:33 racyl'iroa, in itself, no change in prevailing: wage:
a trur‘turo.
It outmnticaily aguoto m.,.'r011 coats to clam-too in orc-
ilxctio on 1:7 no... :rotodi .15; both labor anti mac-.gomzmt.
It my: mnologtam 11111;.- for' added cff’ol‘t £11111 oixm'!‘ 213011313:
incrmsr as not pl 0.19:. this increase in not profit ic (mo
to 01ccx_.z.m.:owmt o‘.’ outings 1!". Mat-viola, 3.11::ch from 171-
cr‘naoi callable production, am! rozuction of worhaad cooto
par unit of prof: ctio on.
2‘; i1pr'rrcc coopzmtic..a am} "can work, ro-I mm 5.313 amnion,
and givw 91.19qu so: a ammo oz" {urticipation in tho progress
of tho 11.153.310.13.

‘ (haired, the plan gal-mi: :a com of tho finnncing for on
employee r'rtiremnt And.

713 plan runovoo tho friction of poriodic wages norotioticma
by 0311111 iohing mohinory for contimzoua automatic aijuot-
mnt. This lays the: groundwork for conotmctivo ccoparuticm

hotwmm management and labor all 1110.15; tho lino.

9.

Poo sibla

Z’ho
inhorant
vantages
RiOgsl'a

l.

2-.

3o

4.

113:1; ‘lo'ns:?i.i:3 rli' -r1clo":i.'i?ic m1:..; “rust 1'sz attaimhlc
without a 11;}; {1313-11icctiwr1 o.“ 1'51 satire r2127.) of

s pacific “33617111203.

Biocdvaoto; 21a of the Man

Fhlcimr Plan ia of the piantdwicic typo, and tho disadvantages
in any ouch plan apnoar to bo applicable to it. Those ama-
say he avatar-ind as follows, an adapted from Dr. John 3?.
#3333“!qu of Incontiva Commgaticg.

Roma namro is ouch that am individuala M11 loaf and
hora to bc carried by tho more inalotrioua. This tends
tmd flsoatiaf‘action am! Ericka-int: ammg cowlcyoca.

Equal opportunity for icons”: atficimcy is not usually
available to all vol-1mm hoclmao of differ-anew in techni-n
cal grace-am.

'i‘ho caution or how to oompcmto indirect. technical.
supervisory, and clarion! workora for their added work duo
to lucroaocd woiuction fill-thaw compliant” the adminiatra-
tion of a plant-side plan. 7h: Pucker Plan occlude-a ouch
pcraoanol and so loavoa that groblas wholly unaclvad. Coc-
tinootal Paps:- ha a «par-at: profit-ahariag plan for
atlaricd paraoancl.

Tho lay batman affort and rmrd ahioh ia inhcront in a
plant-aide plan tends to moons-ago «ploy» diuatiafao-
tion with ouch a plan. Thia liability ia largely "or-

com in the Booker flan by proviaioa for monthly

.35:-

5.

payments to $3133.03 doa-
'i'uo :‘not that poor promotion by aomo groupa offaots
extra effort: by action accootuotoa moldy» allocatio-

footion with a plant-wide incontivo plan.

{gpliubilitymoL P1131 to _HoacoafiCgmoaoz

 

A plan that atabiliaaa payroll coat in tom of wmctivity in

a uy which on already be.) aocopbod by one C10 union could ‘oo of

valua to Boaooa induotriol relationa. 'fiorcovcr. tho adaptability of

tho plan to pomim financing; is of 1.1-1:on intu'oat (orcaont union

demanda throughout tho country). Other advantages of the plan also

apocar to ba applicabla to the Roacoo Couoany:

1-

Q
Ca.

3.

4.

5.

5.

Cu

Continuoua incontivo for maxim productivity

Simplicity.

l‘Zo clung. in gal-wailing “so atructura required.

Bot wu‘it iaoraaaa aa wall aa iacroaao in apologies
earnings.

Salfodiaoiplino romlting from onliataont of ornoloyooo'
intarut in promoting ottioiaacy and aalabla producti on.
Roaml of friction of periodic mega negotiation. thoroby
laying tho groundwork for ooratruotivo la'ocronananoamt

cooperation all along the lino.

tho othor hand, tho diaadvantagoa naturally inherent in a

plant-nick imantiva would be ngniriad aith tho (growth in aiaa and

midty of production activitioa of tho Roaooa Company. However. this

davolopmat could be offaat by a program of duaotraliaation. in which

.564-

wont tho plan could be installed gradually, unit by unit.

A buio omnidontion is whether a soon-cl rotio for diotritution
of “promotion values” could, ho dams-mined. This would dopoozi prin-
nrily noon ooown‘tizzg record“ and o first examination of post record-
is-Liicotos that tho; wool-:3 erQ adequate for this put-mo.

Another major ennui derotion in that tho Company is two omitted
to as policy of strengthening tho mmxgmm‘t i‘onction of ito former“,
thich began with on intensive ouporvioory training orogmo in 1343.
Cmml ”madam with incontivo {alarm ( oapeciolly 13er group or
plant-wide) indimtoo that they toad to trons!” some ci‘ the managerial
responsibility for production and diociglioo to the worker. "oroovar.
incentivo plan: often tom! to “cover up" for poor auparvioion and to
become less wluoblo u the quality of supervision inorovoo. In that”
respects, the adoption of on incontivo plan for production 49:131on93
might "on: inconsistent with tho present Roscoe policy of oncmraging
good cuprvioion and enlightened poroonnal policies omong fermion.
Favour. it in quito likely that this objection could be not: by the
«onion! “option of n opooiol financial inocutivo for sumrvic ion.

Still another comidmtion in the (nation of the affects of o
dopruoioo. ‘toais incentive plan: now in opontiou, including tho Rocker
Plan. have boon installed niooo tho deposition of the 1980'“ no that
oxporimoo with than under doprouioo conditions in not conclusive.

It spoon" lilcoly that workers mould meant incentive plans under such
confitiono become of, tho inconmtibility of ouch plow with "share the
work” philoscpiw. Karim“ wright tend to fool that looms-nevi graduation

by om troop- onothor out of a. job. ”fho curtailed volume of work available

olcc night tend to rcducs onthusiom for incentives for root or work-
ing onsssl! out of o Job. Impound hum-u "lotions would toad to
mitinizo thin situotion in the individual may. but they citation
in main bigger than the individmtl oompcny, ond requires ths coolin-
ticn of coma public policy to truly incur. tho worker's fooling of
smityo

Forum tho mcptcncs of tho lhxckor Plus by soother C10 union mid
iznorcvvs its chances of scooptcncs by the Rosco. uniooumc that in qua.
tionlblc. cod onion attitude is still 1 actor to consider in mighing
tho mitobility of tho plan for tho Rocco. Conpnny.

Tho Rachm- ”3hu'c of Production“ Flow in not to in confused with
tho Rudy 'Ccs‘b tastings muting" Plan. Both uttblllh a fixed gyrosco-
cgs or cmw inocm u Inherit-shore. but the ones of dctofmining and
distributing thin shots differ.

Siailaritioi

1. Both us group platoon-ids plum.

2. Both Qublish o fixed percentage of company income as
labor's on".

3. finch mimic: izho omitting; wags “new. nuchcngod.

4. Both on solos Volvo n o bu. for detaching the homo.
Diffcrcoccc

l. Dotcrnimtioo of lobcr'o than
Tho Rocker Plan datomims c fixed pu'oontsgs of “produc-

tion voluo" (ulna croutoci by mmhctom. 1.... «la

.58-

vslue mime cost of mtorisls sod supplies) by one--
lysing post cost history of the company. This sffords
an incentive to workers to‘utilise‘oeteriels smd eup-
plies fully.
The {Bondy Plan uses e percentage of the soles vslue or
the woducc. The percentage see determined by on ens-
lysis of labor coat for the specific ledsoek period of
October 1. 1945 to~Jennsry 22. 1946. It secures. pre-
suosbly boosuss of the nature of the openstion. thsb
the rstio of the cost of the mtwisls and supplies to
soles vslue routine conetsot. This does not give the
‘oorhsr on incentive to conserve materials.

2. Essie of bonus
In the Rocker Plea the worker's shsre is distributed
proportionstely to the employee's boss rote. In the
hundy Plea sll eligible employees share equslly on
the hssis of hours worked.
In the Ruolcer Plan e reserve mod 1. mimined to
protect the compsny trom"belos~bsseerste” production.
In the Bondy Plan the bonus. if any. is split 60-60
between the employees end the economy.

3. Frequency of pymenc
In the Booker Plan, distribution of the bonus is of-

fected monthly, while in the Fundy Plan ii: is quarterly.

49-

CEEAF’I'YEEI I?

C’YTLIY? .‘W‘R (V3133. A‘WK'WTB 5"." A C"’-"‘"".“'Y

Viewing scientific mnagemeat from the stendpoint of emlysing: e
particular business situetion, the writer hes prepared from his volumi-
nous notes. collected over the you-s. that he believes to be the most
comprehensive. yet pointed. wtline he hes seen for the over-ell snely-
sis of s omuy. He believes it night prove useful es s ”control“. no
to speak. in considering e ompew where on ell-round check-up might be
sfivieeble.

The mjor points to be covered in making this ell-round check-up
ere:

reuse end nature of present problems

mtlook for ommr

Policies

Orgsnisstioo

Personnel

Feeilitiee

‘Fethods end procedures

Finencisl condition sud opmtions

rimnciel requiruente
Etch of the stove pointe sill be oonsidereci in more deteil. It is ob-
viws that such so wtline as this will need to be sppliezl with judg-
ment to concrete oases. Hers espeoislly 's little looming is s dengen-
one thing“. The investigator should sxereise his ingenuity in devising;

edeptetioos to meet speciel eooclitions.

-40.

A. gages and Eetgre ogjcfresent Prole
1. Here it is desirsble to present s chronological sum
or the history of the oompsny, emphasising dwelopeents
of the lost ton years.
2. Santeria in outline for: the msjor problem with which
the economy is reced st ties of imsstigetioe.
3. Swiss in outline fore the renew for these problems.
The reasons usually will tell omiar one or soother or the
following:
I) business conditions
t) eoepstitive conditions in the industry
s) improper museum
In sens asses. reeeons for problem stated ere implicit in the oompsny

history, end it may he unnecesssry to seek soy fili‘thfl' for ressons.

13. Outlook for (:me
1. To octet-mine the outlook for e mosey. it is osuslly necose
ssry to give oomsiderstion to the outlook for the industry
in ehioh the ontogeny is engaged. This will ordinsrily re.
quire s considerstion of the following.
s) effect of present end future business conditions
on the industry
1:) effect of competitive products on the industry.
(For sxsmpls. the possible effect of conditions
in the limestone industry on conditions in the
term cotts industry.)
o) competitive conditions within the industry.
Sometimes it is she messesry to amider the conditions in the indus-
try or industries Ihioh ere the customers for the industry of which

the fine is s gel-t. For steeple, in considering s company in the fort--

~41-

illssr industry. it is necessary to consider first the mtlook for

the agricultural inMetry, since this will determine to A large de-

gree the outlook for the fertiliser industry.

is

6..

Plsos of firm in industry. This involves s consideretien

or the comparative position of the firm being studied. first
Vwith the industry es s mole, then with its anger competita's.
In examining this meetion, it is importent that the stand-
ing of the fire with the trsde be esoerteined ss fully es pos-
sible. It ties permits. it is desirsble thst s market study
he ends to ”certain the sttitude of the trsde.

Efficiency of the mongeoont. es measured by on epmissl of
company policies, orgenisntion sod personnel.

Present timeoiel condition so sheen by so snelysis of the
belenoe sheet. else the income end expense statements. In
edditi on. finsnoisl possibilities sod requirsmots ss shoes
by openting sud fimnoisl budgets.

Smrise the fsvoreble sod unfavorsbls footers shich my
street the future of the firm, end drew conclusions. In

may once it will be neoesssry to seke certsin “emotions
es s basis for predicting the future. Caution should be

exercised in drawing conclusions on the basis of sswnotiooe.

c. Policies

1.

Soles policies should be studied in respect to number sod
types or products. types of oustoners. ohsenele of distribu-

tion. pricing, sales sppssl, sod soles praotion.

2. Produotim policies should he considered from the follow-
ing standpointo:

e.) that to produce, such es dotorm’zmtion of the merits
‘ or making; or owing finished products sod pisoe out-ts.

1:) quality required to meet the demons of the sorbet
thst is sought.

o) wintertime of prayer control oi" production. so so to
secure products Ihioh comply Iith the standsrds of
quality establishes}...

d) when and in shot quantity to produce. or the ooordins-
tion of solos and graduation, which involves In con-
sidrtsrstion of sensoml requirements. economic produc-
tion units, end economic pro-motion flow.

0) standsrds of efficiency, loss. establishmert. of defin-
nite standards for judging efficiency, end progm
for eetshliohnent end mintensnoe of these stsndsrds.

f) coordimtion of WOxl‘alCthB costs with sales price.
shich moons first. the effect of "lune on production
costs, taking: into consideration the importance of
fixed end verisble expense" second, the relstioo or
sol on price to seine volume, end consequently, produc—
tion volume.

8. Meaning; policies should be mined for:

s) determination of the snonnt to be bought. shioh involves
remix-meats of the oporstion program. snd mrohsndising
versus the speculative point of ties.

h) standards of quality,

0) selection of vendors. this involves s oonsiderstion of
the advantages end dissdvsntsgges of buying froze s few
or eevorsl vendors. slso the factors which should be
weighed in tho selection of vendors.

d) price determination: significance of Moe es s rector
in selecting; mrchsndiee and the extent to shieh poli-
cies my be sdjusted to some lower prices.

9) control and limidntion of inventories; coordinstion
of the sctivitios of the wrohssinr, end oporeting deo
partnents with the requii‘smon‘ts of the financial do.
wthQ

4. Fiannoisl policies should be examined from the following
standpoint"
s) determination of fineneiel requirements end coordi-

nation or finencisl sctivities with s11 other oporst-
ing sotivities of the businsos.

‘ 43-

5.

b) courses from which capitsl is or can be obtained.
in utichoticn of requirmcntt.

0) control of tho non of capital after it is Docurcd.
with reference to ccccuntc roccivcblo (including
credit and ccllccticn policies). inventor-in.
fixed nuts, and other ”lots.

:1) protwtion of capital, principally policies in re-
cp-ce to insurance.

a) distribution of capital. upcciclly dividend policies.

Parconncl policies should be command with respect to:

n) analysis of requirmtu a! job- uud gunman for
unlocking mm to fill than requimoutc.

h) tnining of pwnonncl.

c) communion of panonncl (mg-I and inccntivu),

d) wolf”. cctivitiu.

o) cmnimtim between mmgcunut Ind employs”.

3. WE 11! ution

1.
2.

8.

h

6.

Composition cud function: of board of director“
Comittm of the bard: their names, composition, Mid
functions.
Chief umtivoz his raupmibiliticc. efficiency of per-
formance. and relationship to mbcrdiuntu.
C'luuiticcticn of activities under chic! executing:
a) an than classified in tho proper manor?
b) an all coconut-y functim recognised?
a) hn promr judgment been examined in determine-
ing the attach to which control cud parrot-mm.
of activities should be cmmlindi
Apprais- tbo organiution by nonn- oi‘ tcccptod candied. such
a tho tailoring:
a) in sufficient rmmuibility delegatod?
in) do authority and rmmibility go inrxd-in-hcnd?
o) no responsibilities carefully defined?

1!) it distinction bottom lim cud functional author-
it)! :31me ambushed?

.44-

6o

o) is promu- provision mdo for tho porter-mace of
staff activities?

1‘) :50 only 1 few subordinates report to catch. excru-
tire?

g) are the activities of the various mncticml dc-
Mounts properly coordinatod?

b? has tho pox-loom] been taught to {min}; proporly
chant organisation problem?

Comidcntion of tho officicncy of the orpnintioo pica of
sack of the mjor departments. mat giro ottwtion to the
direction 1nd «pavilion of etch of the following octivi-
tic"

u) “lot

is) production

0) mrchcoing

(1) financial
a) mammal

3. Personnel

1.

2o

3.

4.

ippniu cll agar cxocubivo pummel cod chair imcdiatc

mbcrdimtu.
Such on opmiul roquiroc the. in

c) prom standards in utcblichc'i for judging tho
pcflonncl,

b) proper octhcdc bo mod for applying than choic-
‘rdly

c) the iovcatigctcr be fair, cmmgnouc. and funk.

standard. for Judging oxocutivc 17911th
c) nmlyticcl mind.
1:) logical Mimi,
c) sufficient koovlodgc for the petition hold.
«3) prrgrcuivoneaa and open-oindcdnu. so that help
will be caught and used,
c) directing and Iupcrvixing ability.
The“ shadow. my be applied in judging cxooutim. by tho

relieving mom 1

«~45-

“) intrfiWifl’iW.

b) chlcmtim of executivc at lurk. capacidly in
his dealings with subordinates ani an o ”lumbar of
conforoncu.

c) otmiy of tho rmiltc obtainxi ‘a «motives.

d) “termination of tho tttitudc of cubordioctoc to-
ward «reactivoc.

5. amcific rocmmiatim should be) magic as to which ozocutivo

mammal timid b2; diccfmrgoéi, marinated. tmmfcrrcd, and

new mraomml magical.

E". F'Ici'litio‘o
i. In thi- outlioo of a, gmml annoy. production tocilitiu

or. tractod from tho commuting: rather than the i‘imnoiul

- point of vi cm

a) officimcy of plant location from c manufacturing
lundpoint,

b) suitability of the production facilities for the
purposes of the cmw. with pcrticulnr nth-ntion
to whether tho chat in so designed choc «comical
operations on poaeiblc. and that equipmmt in
modern cod in satisfactory condition to opus-ct. attic
cicntly.

c) in layout of mimont in plant such an to provido
for the moat efficient 1‘ch of procuaim; open-
titans?

d) in capacity of phat and cquimt so large tint
cxcocaivc coats result from oxpmditurcc on idle
camcity, or in than a lack of equiomcnt for per-
fox-mace of moo opemtiom?

c) ”on common apmico the offioioocy of noxilicry
oquimont such an trucks, autos. or oquimont used
in the grace" of distribution—«och u roi‘rigom-
tico facilities in a cooking may.

(.3 . ”atomic

1. Existing burlgct procedure lhmld to cppnicci. and c prqgm
for the future on of mags» should be outlined to commonly

to condition- pemi t.

0480

2s

3s

Carefully study ti“. o Opsruting; nomads of tho solos. producn
tion, guard-mining, finance» and p room-31 activitios, and
mire room-rum titans: for tho imprcrmcnt of.’ those mothods,
Cs fist
of: anrcEmso orzlaro om} invoices,
b) cclss orders arm invoiocs,
c) productioo orders and opomtions.
d) csoh rocipts snxi disburssosntso
Mina the extent and dopmdcbility of control methods. 1.0..

soomnting. statistics, and standsnio.

It. {immisl Condition curl {33373th

1. Obtain s tmlcnco shoot as of latest data possible which

2.

3.

smlysos assets and lisbilit’oo sufficient-1;: to bring to
sttsntion sll significant items. For sxomplo, if any offh-
cars of the canyon; was it money, the amount of thsir obliga-
tions should be shown as s scmmto itm. I! the inventory
is composed of some disolcto mtcrisls, this should in sub
up as s combo item on the bslcncc shoot. The objectivs
should be to bring to sttmiirm all item on which spsoific
sotion should be taken.

Show trend in fimncial condition by prwonting campufltifl
bslcoco aim-etc for c pot-10d of three or more yscru. and or.
range in fan so that significant itsos srs rudily notice-
this.

Analyse balance shock. in respect to such scset and liability

itc's. giving particular cttamticn to receivables. invsotorics.

47o

.4.

5o

6.

8o

‘v's

10.

11.

cut-r, rz“; liabilitioa or firm-i linhilitios m-Jcazrin; in near
fixture), and contingont 119.5111 9:71:23.

If ant-Alysia inlicnt-m :1 mm!- !‘or nijuotaowtn, prays-1‘9 on
naijuofioi halanco shoot and configures with original balance
shout to 3633 not affect of marijusmn‘ts.

{Raisin s oma-;nriaon of” working capital for a period of

throes or mars your: and soot: uolawaizions for any significant
chomas.

Obtain a ststommt of source and application of fun-is for ss

long s prim! as it corms foosiblo and desirable. anal noes

rslsfisi{Imamii bot-mam dots. in this stotamant and working
capital inform-ti an proviausly obtoinoi.

Um»: s :11er of conclusions in rssooct to the {mass-at
finanoisl comiition oi" tho firm.

Obtains statement of ham and stigma-so for tho isot- you
or for tho patriot! since the and of the lsst- fiscal yum it
this is sufficiently long to be of nine.

first! comparative statmontm of income uni (apnoea for tho
mat three or mots yours.

Analyzo mjor itrm of inco-m on'i «cameo and note trends
mm: com tobo aicgoifioont. Qatar-aim masons for favor-
ably on! unfavomblo trends indicated by tmos comparative
statommta.

If helpful prepare only“ of inoooo and expanse by owns
a? supplomntnry stntmnta. For multiple, it might be

moussry to propors s dotsilod analysis of solos in orda-

.480

to reveal the ressone for important trends in sales
volume. It might also be oeoeesu-y to propose so
smlysis of mmzi’sctm'ing costs in order to show the
tessons for trends in those costs.

13. Sunrise conclusions with reference to, apex-sting results
or the fins. smnging roots in e logiosl order of impor-

hence.

I. flosncisl Roqjlmcffig:

 

l. Propel-e e toreoest of future operstione by masses of budget.
which rill provide the followings

e) estinsted inoom end expense by moths for one your,

1:) estimtee of cosh receipts sod disbursements by
months for one your.

e) «tinted bshnoe sheet for six months end twelve
moths in the More.

2. In granting these budgets carefully consider the following:

1) sales possibilities in terms of conclusions
mived so in preceding sections of this outline.
with reference to outlook for company. soles
policy. end sela organisation.

1:) enslyss s11 expenses in terms of proposed sslee
promo sud seek es summons). reductions ss
”’lbIU'

o) relstioo of volume to unit costs sod, hence. to
soles prices.

a. Coops" estimated income sod espemes with hista'y of income
and expexsee for three or more years; noes important trends
indiosted by this comparison.

4. lni‘omtlon secured II I result 01‘ these budgets should be
eunrised to show the followings

s) mother the firm am he plsoed on s orofitsble
“'1‘.

b) i! it cannot be placed on s profitsbls besie
immediately. mother it con to pieced on s tussle
there it can operate without additional ash.

o) if sdditionsl cash is required. the probeble
smount necessary. end whether it is believed future
operstions sill Justify the expenditure of these
funds.

d) whether future operstions of the company sill in.
crease or dooreese the sssets of the fire,

e) if these oomtions will door-else the sseets. deter-
mine whether there ere commuting scivsntsges to
the tire shit?) will offset the diesdvsntsgee of this
decrease.

-55)-

”ovary-3,13?" CZ"‘-:S’:‘IG,'~!S :r-ofz AWJRI'SM or A comm-y

 

is s follmzp to Chspter 1?, pwhsps it might be helpful to

teach upon the ”question spprosch" es s vslneble tool in enslysing

s oooosny simstion. The properstion of en exhsuetive check-list

of queetioos to be ensured for the investigator by the eompsuy dur-

ing s survey is e stimlsnt to thinking end s protection sgsiost the

danger of overlooking important upsets of so investigetioo. The follow-

ing is not intended to be e coagulate list of questions. but only es ill-

uetrstive of the vslue of the ”question eporosoh":

A. figural Question;

1.
2.
3o

4.

5.
6..

7.

9.

lo.

‘fihst ere the oompsmr's products? ifstsloguoe?
Through shot channels ere the products sold!

Boss may employees. mls end fouls separately?
tht neutel types?

Approximate peroentsge of skilled. average, and
unskilled employees?

How may shifts?

Is there e union? Which? numb-er end type of shop
stewards?

Are there union difficulties? Tibet ere they?

Is thee someone in the union in whom you hsve confidence?
”coho?

Do you hsve s single or rote-range shop?

Sic: ere your bees slices srrived st? Do you here so incentive

.51.

Be

11.
12.

13.

14.

goat

1.

8o

4.
5.

6s

plan in say out of tho pleat? which mrts sod mt
type of incentive? How did you strive st the sonnet

of incentive to he peid‘! If by time study, did you
uploy vsioro-«sotion study or visusl notion study?

()0 ya: have on orgsnisstion chart? Ros old?

no you have SPI’s (Standard Preotioe Instructions) for
pleat sod office jobs?

Y-‘i’ho hes done my sun-k or e awaiting nature for your
comm in the past? that results? ‘
that sort slong this line ere you slresdy doing yourself?

Rhet i'soilitios do you one possess to do work or this type?

Mediating Questions

Csn you detox-aim without smlysis the snot cost or soy
individusl operation?

Cse you dotomine without enslysis the outset cost of s
group of opmtious up to soy point in the processing?
Are you sstistied with your method of burden distribu-
tion? Are you sure it is distributed properly to ob-
tsin sooorste opentios oostsi Whet oost tormls do
you use for burden distribution?

has ere you sure thet your costs sotnslly ere scout-eta?
What is the whiny-hour rste for your nohinery sod
eminent?

What is your percents” of techies-hour utilisetion?

flow do you dotemine this?

.52-

7.

8e

‘e

5e
5e

”flint ins been the poroontago of increase in mn-hmr
utilisation for the pest two years?
Are you obtaining promotion in proportion to your pres»

ent evaluated or agreed heee rages?

Mlustion to cations

Do you have job mlustiou?

Do you establish the relative nine of each job es tampered
with every other Job in the pleat?

Do you equitably distribute gross pyroll so thst Jobs shioh
oreste the most profit for mmgmnt will be psid in propor-
tion to their worth end vslue?

Would it benefit you or strengthen your position with the
union or pet you in s strong bergsining position if you
knew the oorreot worth of ell jobs end it sll incomioten-
oies sod inequalities were moletely elimineted?

Would Job mlustioo mist you in employing men?

Do you set your stondsrd costs fer lehor on the evaluated

worth of jobs?

9. mtorisl Control Questions

1e

5.

Are ell notes-isle to be processed or to he used in the
process oentrslly stored?

Do you here one storeskeeper in complete charge with full
responsibility?

tho my tske mstorisls out of stores?

--53-

4e

6.

6.

7e

8e
9.
10s
11s
12:.

How end by whom sre tutorials for tho various procsosiog
departments withdrawn and delivered?

Is it noossssry at all tinge to hove s requisition for
vithdressle from stores? Who mime out the requisitions
for materials for tho various processing dopertmonts?
who my eithor purohsse autos-isle or rmioition s our-
chose ”do? for materials? .

Are perpetusl inventory cards or ledger sheets kept for
esoh itom or meta-isle? I

Do you taste periodio pivsiosl inventories?

«but vetoes of costing asterisk is used?

Do you use bin cards for stores?

mat is the snot cost '0: storing end hemiling outer-isle?
Here you uosrtsinsd axioms sod minim: qusntitiss to

have on hand i

3. Motion Control Questions

I.

3.

Do you hero‘s spoolsl (50%») order shop or do you man.
boom-e for stock?

Egon receipt of sselos order would it be possible for
you to immediately write the wstmor's invoice? It so,
do you follow this procedure?

90 you More s proxiuotion control system which ooosists

of proplanning st t «nu-e1 point?

.64.

CIIAF’T H ‘71

'5”-3"".‘.~".Pi?‘1‘.! macro, Ira: A 05?: .0on

 

A osse study illustrating the soplicstioo of the outlines set
forth in Chspters I? end ‘7 mid be most illunimtingz, but is properly
the subject of s seoorste thesis. The priosry objective in presenting
the outlines in this thesis is to identify em of the techniques of
spprmch to problems utilized by scientific moogement, Enortmlosc,
it is uithio the scope of the mount thesis to select one sspeot of
the outline in Chsotor I? and illustrste its sppliostion. With this in
mind "Section t: Personnel”. hes been selected for this purpose. Such Is
selection thus can be rude to fit in with the euthar'e genersl homo
reletions than. The feats of the oose ere substsntislly true es re-
leted, but ell name ere fictitious.

Empepor deio, Inc. one orgsnised by J. i'. Pearce in 1925 for
the purpooe of receiving end transmitting internstioml nose for the
Marion press. Pearce cos 1: ma poeeeseod of contradictory ohersoter-
istics. A number of his useoietes in retrospect hsve mentioned the
{aliasing es being gnrtimlarly descriptive of his nature:

practical icsginetion end initiative

tenacity o? pnrooeo

enthusiasm

unbounded self-confidence bordering on unity

broad teohnicsl knowledge or cmniostions problems
unwillingness to delegate suthority

poor judge of men

tecklesenece

unsystemst io plsmer

.55.

"J. 1.”, so be we colic! Yr; hie imediete aseocietee. achieved re-
mhhle mouse with this odd assortment of characteristics during
the first fifteen yeere of his cmmny'e eczieteuce. Within five yesrs
{eliciting organitsticn of the enterprise, he hm! refined new tnffio
rstes to Ill comers from twenty cents to five canto e mi. 'Ehen dens
World We! 11.

In 1941 J. 1‘. Marco functioned es president, secenl csnsger. end
bcsrd oheirmn or fienpsper Radio. Ris peremlity donimted the entire
crgsnisetion of three hundred employees. Four of his innediete subordi-
notes were oorporete officers and nevi:ers of s board of directors of
nine members. Thus the president in effect controlled the hostel. The
stockholders. comprised entirely of ierge nee-ppm end press seeceis-
tione. had been sowstoned to dining Hr. Pearce his own my in rule-
eicg the may.

'J. T.‘ liked to think of his employees to one "big hepoy family“,
of which he see the "kindly tether“. ire ooheietentlgi minteined whet
he termed so “open door policy” tonerd all employees. he" he encour-
aged then to bring all. their problems to his for sdvioe sod sic! in solo:-
tion. to cede neglect trips to the oompsoyis verioue hues of sperm-
tion end telked with individusl empioyees st notion. fie often issued
personal orders on the epot to nske en mpicyee'e let heppier immediately,
end to impress hie eith the feet that quick ecticn on personal problems
could be obtained tron “Jet.“ whatever neceeury. es 1 result 'JJ."
had heme quite populou- with the real: end file of enphyeee. 0c the
other heed. boomse of his frequent by-pseeing end over-ruling of. his

executives. he me get popular with them. They were in the meculeted.

056!-

Inamro position of I'mvlng: flammability rdthcuh authnrity.

With the advent nf’ World “far I! ”mmpapor Rualo'c labor tore.
begin to 00:13am! rapidly, and by early 1943 had reached 150’). The com--
puny ind open“ firtom foreign offices and Hr. Puree spout moh of
hi. t1!» entailing. ”in subordinate” unaccustomed to functioning
without their chiet’n presence, tom! it difficult to rank. ciao dedu-
tom. and kept in touch with him :1 but they could by Mia. Also.
they van often need with diuolgumry problem fro-I older employ“.
rho hunted on uniting; until 'JJ." returned from I trip. to that they
«mm diam" grim“ diroctly with his.

About tho fiddle of 1944 Rmppor‘fiadio In "quest“! by the
muted sum AM; Signal Corps to manufacture I comidaublo lino of
wigs-at for no. in Army £1014 apontlm. Tho 82.ng Corp. m do-
urau. that donut-1o- bogfl: “thin {our mouth... M: tho um 351'. Pure.
too-1nd tho toque-f; he an preparing to In" on m urgent trip to the
mropan That” of Operations for I no?!” of confer-non with high-
linking Am public rohtlom offlcoro. II. hutfly moi hi. coo-puma
¥o making-ton. instructed hi. mbwdlmtu to aux-t the no! ”03001: and
push it u fut u poo-1131.. um! loft by plane for Buoys. II. «mated
to» be may than: a month, but tho terrific multiplication of amnion-u»
than women following may“ male it impossible for his to “turn
until three months had ohpuod. Outing thiu parted raglan} commutat-
tlon with MI company headqutrten an: impossible due to m fabrication-o
mama: the omrhmlty ufrardod ho coulntmly ordarod hi. amtim

to pm”: the Signal Corps 03'er at 311 south

~57-

Upon romzrning has fauna”: ‘Tmognpxr Thais in critical financial
condition. forgo smote of‘ cas‘: Md hem opont for mta'iolo and
odditiaml labor in connection with the Signal Corps contract. Tho
mmfooturing opwatima for this oq'aimant, two to hio o'xooutivoo'
look of familiarity with such wori‘, .‘mi not poocoodoi beyond tho ini-
tial ottgoo. Tho company's book bolanoo hurl dropnoci to o point who“
than mo not: outriciont fundo to our” the out poyroll.

With ohmotario‘hio oolfooonfldmo. ‘32-. Pooroo named on nor-
canny making of tho omromx'o board of dirootwo. 8o odviood than of
tho “tuition and denuded the they outhoriso him to borro'o £750,060
to com tho ompany thrmgh its financial orioio. Tho boom opyrovod
by o fivo to {our roofiorit-y. all tho non-employ” umber: diooonting.
After tho bonk‘o roprooontotivo hui attained tho ompony'o books. tho
loin m rnfuood. Tho'praoidmt imdiotoly oollori on amoncy out--
in; of ooookholdom out! dundod thou thoy odnnoo outfioiont moy
for tho may to flow in business. He otntoi thot union thoy pro-
vidod oddiiioml Nod- ho would be forood to oubmit bio rooignotion.
“not: to bio om'prioo and mortifieotion tho stockholdoro votod to coupe
bio rooignotion. ‘rho retaining corporate offiom minor! from tho
boom imdiatoly to unto my for further otookholdor action.

Tho otookholdoro odmncod oufri'cioni: cash for opproxiutoly ono
month'o omroticmo, om! author! nod o now boord or directory comps-ind
- ontiroly or otookholdm. to oogago o. oompotout mmgmoot consultant
to me fine Emoinooo. within throo my: following J. 1'. Puroo'o

forood Arooigmtioo, fymo Ear-wood, o velluknm amnion“. took ahargo.

'Jr. Homo'i'a first nova no a. trip to "mo-‘1! sgtou for a confor-
onoo with tho Army's C‘aio! nigml atrium. Bo prmilofl noon tho
- Gonnl to loan Nmmoor Radio Colo-.191 Clark, 3 Signal Coma officer
with omidomhlo indnotriol oxparionco. to limo dimti on of tho
mnufnoturing project. 511: second more no to ooll a staff mating
o! the omw‘o hm flood-presidents. tho ooorotory, and tho troomror.
'i'hoy oaouroi him that tiny would bo only too glad to ooopcoto oith
him in motor” mooouroo ho dooiziozi to take. but thoy offered no spool-
no suggestion. Aft-or tho otof'i‘ mating the oomultont had o long
intmimv with not: offioor oomrotoly.

Them ho toliemd ot length with o manom- of subordinate” who our-'-
rontly hod boon reporting: to mob of tho office". On the whole thooo
oubordinotoo taro “only critical and rofloctori o loo mania. Mlle-«-
ing thio ho opont two full doyo studying tho "port ond room filo:
mintainoti by oooh of tho offiooro. Ho {and than okotohy, roploto
with rooomodotiono booed on inmffioiont roots, and gononlly inferior.
Tim-o no oloo omidonblo evidence in tho recordo that pointed toward
o tondmoy to "poo: tho buck". ”Kr. fiomod than no convinced that none
of tho offiooro no too mmgmt oolibm. Fin ”zoom ooulri ho manh-
iaod oo follm: o.

l. imufficimt analytical ohility

2. inouffioiout knowledge for tho job

3. foiluro to obtain help from ovoiloblo oourooo

4. poor directing om! oupozfvioing obilitjv.

within throo oooiro, through tho «forto or Colouol Clork. o largo

quontity of oquipont m: boon mmfooturod and ohippod to tho alropooo

flutter of Camz‘a'tlona. and suf’ficle'z‘; 9.1M: had ham receive! on
acomt from :‘t‘ashlnfion to carry tho company: ruming atoms” for
onothor sixty days. In tho monnfilme. after several frank conforonooo
batman Yfr. lion-mod an?! the four company office“. the latter volun-
toani their resignations as top necutlvoa an! «3:31 for taunt-r to
any typo of torolgn service that 'z‘g‘xt be available. "672'. Womood hold
them ho mold «mafia? if; a favor 1! they would twain in their gru-
ont position: for mm: weak; until he had an opportunity to roplooo
than. 1.20 stated this would also afford him the to lmutigato tho
foreign condos poul‘willtlos. Somlow‘mt 15011191”. they readily con-
stated.

'fi'lt'hln another wm‘z ”5r. farmed had nocm'od {tho sex-view of an
upodmaod dividioml opamtlons' managers" from I. oompofifior and I.
rate export from the Federal Cmmlcatiom Commission. A little Inter.
when the 315531 Corps mbatuntlully inormnod it: equipment orders.
‘Jr. Rammed was wcooaarul 1n owing Colonel Clark (with hi: can oomont,
of? course) gm: on tho inactive rooorvo lint lo that he could Bo uppolntod
head of tho ommr'a mnm'ooturim; division; 5‘an {mo positions we
found onlloblo 1n the revamper Ila-din tor-alga sorvloo. Transfor- oooord-
ingly were ofz‘octod for the two vice-prooldont. but Hr. Homod In ml.
to place the socmtary and treasumr overcoat: with the “uteri States
Cffico or T5” Information. .

A‘; tho 3%.an 1M4 mowing. of the canyon": board of directa‘l.
they «ran; him tho presidency of Ympupor Radio. Re agrood to our"
in thl! capacity until the reorganinoloa was corny-l stud and u mttablo

lnmnbcnt could be found to «no in. thin capacity on t wmnont but“

.60.

CHIP”? VI I

Wt I??"-.’A?! 5.1.2"??? tn: mommwmr

what is c-rmn‘al 1y t’rsmg‘zt of of.» $2119 phraoo ”to organizer” is
fiontfa'loi?

Tho im'iiafi'z rmctim of many pram-9.: is to hocomo as tachnical
an: involved a: ooasiblo, on we}: tiny my be cofiaid-wrmi ”aciontifi o”.
Thoy might well doclam that to organize mmns has design I. waiting
with people as 00’1‘36".6‘l‘35 which can pro-time certain oxpoctod results--
cowpleizo as to parts, Ca ntro'fis, and semantifig mochrmi was. Than nrioun
."mgo exports" wig-xi; ndmnco di‘IM‘B my: of going about this design work:

”Doug‘s: from the top dorm."_

’Mign from tho bottom up.“

"M3"?! 'n“ if; 30!) to be. dona.‘

”Avoid prjrsomlitinn, :1: auto": to thm i." you can‘t avoid it.”

"'7th this a actual plum-none of that 'Iciontific' stuff.”

"Got It fow'higiiopricod' man—lat thorn dominate tho mono and

'got all tho wcr‘z: done wi‘oh tho help of a few otoogos.”

Actually, designraru of oqmlly good organizatiom can go about tho
job in difforont ways. Any tachniquo that will profiuce the desired
results it worth an kg, romrdlms of its ctr-called ”technical" morits.
21o organixo for tho 311129039 01' achlmlng coordinator! offort. It my be
said that :gdmgnziing by tho mrticipmtu in an organization plan is
more ifiportan‘b than the eroollonoo of its design.

The very ossonco or? scientific mvmgottmt lo the rule of law,
which must toolnca unsuoaorted individxml opinion, ”mlo-of-timmb",
guns, or ignorance. Chg mmnca or the halo of 1am manna n mental

revolution on the part or both mmgmmt and workers. banging: to

.171.

light the indiaputablo fact that unnngunont and labor hart nor: in
summon fihun in conflict. Scientific mantgamunh in I nocigl force.

not a tnlnnfcrnblo. mechanistic schema of managing. It is a univer-
sal mnthod of aggroach to discovering tad ontnblilhing the particular
management policy and unthoda moat auiEnbln tor i particulgr nituution.e

F<379n in noun Iupaosoily'unllumnnugod companion on. ortan hear!
imposing manual. of procedure or back: a! datailoi arganination chart.
fondly-nor contomytuouoly-nroforrod to no "bibles“. This very wall can
be c dangarouo minus: of tho holyinrd. The oonhantc of then. inaonllod
‘biblaa' quite frequently nrs kept in blind use even though obsolete.
or urn parnittod to multiply pramiaauously latch: also of incanprohsn-
tibia. uncorrelatud ooanlicttion. fio doubt tho'unlluaunning originator:
of web book: would otmtly mint-Jain that they arc «spouting thnir busi-
nuul thrmgh the nu at tutu! haulage inotud of Quantum. ‘Parhnm
they did m that my.

4‘ l‘ho thory is told of can ompmv which renewed to its logical
autumn the Frodorick 3. Taylor precept of gating all operating fact.
on 01‘ the realm of mos-work tad armory. i'hio canny, after you. of
offers. ”mandated volum upon volume or cmndihg «dam. covering
ovary operating situation 1nd proeuduru. ForMOXtaplo, a standing order
m let up for shipping olwkl prnuribing the and: timber of mill to
be and in closing the top or c pairing am. After this 0mm; In ro-
ormiud, this «run accumulation or standing «dun In discarded
without noticeable In. of cffioicmy and with oomidornbla «ring in

out of compilationfl...‘

.52.. ‘

It not be ”mm that ociontifio magma requiru continuous
root-anon, for it: in the paradox of tho Ioioutirio method that to no soon.
or concur!- in solving a probloa than it opens up :53! ones. It in o
chollocgo to mmgmont to keep cutout of wags-cos. A frequmt mic:
or ”audit” of the entire mung-1mm. situation and it: cathode is highly
daoi roblo.

F’Jamoa Cr. Romano-y, a fax-mun wtiagomcnt consultant floaty ya" ago,
had o dotinito opprooch in analysing, ovary buoinona wdnlom. This Ip-
proooh omitted of five fundnmnecl, scorching questions. which or.
hero par-notified no questions that mmgomont might well «it iii-elf from
tins to that

1. What: in our objectivomthoi: is. that oro m 1517ng to accomp-

lioh? (thaw-In mmaring thio caution, to may find our-
Iolvoo hanging; on to ”nothing tho: ohmic! not ovum uni-t.)

2. mm pocplo om ovailublo to do tho ooompliohing-dbhat is,

that. in our citation with rmpoct to practical?

3. Now do those pmplo fit into tho total operation and whit

or. their dutioawthai: in, what: is our organization chart

4. What on tho nature cm! the amoral. opooit'iootiom of the

physical plont in which the Oporotim is executed?

5. much rimnciol manure" or. onilcblo?

It in trident imodintoly that: 1’1". ‘chifiooy gov-a prior omidmticn
to the Mann odor-amt in organizationpgf

an organic-Horn in establish-d to oooozaolioh «loath and reason-

oblo objootlvoo which con ms :11le be clearly doting. ‘i’hooo objoctivoo

on: ho ottoiaod by tho parrot-mom of octivitioo which can in turn be
cloudy d-zriood and no onoootod that thoro is o minim-2a or duplioo-
tion of. oftort. Roopomibinty for tho porrommo of thono activi-
tioo would bo otplioitly delegatoi to pooitiono and oouplod with cor-
Impending authority. .“y “dolomting” is mam: tho assigning of activi-
tioo to tho armament of mot-hon Tho dologofzor hon tho authority to
inotruoi: and control tho poe'ition to which ho has dalmtori oortnin ro-
opoooihilitioo. Decisions, bosoi on procodont, should be mdo by posi-
tiooo moot oloooiy associated oi‘sh tho problem nod-n- ooui aeration.
Docioimo involving nor-ml moon or prob!" should ba mdo on o lower
lovoi thou dooioiono involving oxooéptioml «on. or cases that requiro
policy ootorrnimtion or portion!” tact orxi yoga-soot.

A hyooohooiooi coon in point'aight bo that or o. genes-11 form'o
o‘lofit rho no poid on o straight seam? basis. Assuming that too" too
boon o dooth in tho olor-‘z'o ammo family, ho asked his homo for too
doyo of! tit!) poy to otfiomi tho funeral was. wind up the personal oftoiro
of tho doomed. the general form immiiotoly tsp-gamed tho timo of!
on his own authority alone» ”Ho ho did boonuoo thoro no on ootobliohod
03mm policy paroftting my ooloriod mployoo not ooro thou throo fly!
off filth pay when n dath had occurrod in tho mlwoo'o imaiato fondly,
ond tho omployoo bod roquootoi tho tine oft. According; to tho conmny
policy opprovol woo noon-oz? only by on omployoo’o imodioto ouporior.
Thus tho dooioion no soda by the position nose oloooiy oooooiotod oitb
tho problovo under oomidorotion.

Suppooo tho om gonorol formu'o olort oohd for oi: rooko off

.oithmt gay to to” o opooiol onivoroity mor curriculum in notary

monogonont. In thio inotonoo tho gonorol foronno too outhoriood to
grout loovoo “about: pay up to o mimm of throo «ska. flo thorofoto
consultod his immodiofio ouparior, tho production vaporintandont. who
had tho pooor to authorize loavoo'without pay up to o maximum of three
months. Upon roviowing the case caroml'iy, ho conciudoc Unis. oinoo
tho oonpnny would oioo bonoi‘it from tho clerk's course) of study after
the clerk's roturn to work, thoro.nEght ho oomo‘jusfiification for par-
tial tailor}! payment to tho olor'c during bio absonco. 'E'ho ouporintondmt
corriod ”tho mttor to hio own ouporior. the vioo-prooidorzt or mnufnctur-
ing. for further cozmicloz‘aizi-m. Thin 003:3er ofi‘icor dooidoi ‘50 pay {ho -
olofik’o tuition at too incoptioo of bio Ioovo. and. it ho oornod on ovor.
ogo gmdo of “‘3" or better in his otudid, to pay him tho mn oix moko‘
oolory on his return to work. Sinco thin oooo oorolopod into on oxoop-
tionol one, it ooo nocoooory to carry it high in tho management hiororchy
for final docioion.

Tho nunbor-o! pooitiono reporting diroctly to a ouporvioor ohould
dooronso no tho loval of tho supervisory position rioao. It boo boon
' pointod out by several mama-wont oyzporto that o sonior' officer or oop-
om»:- o'noulxi have no more than fivo or oi: individmlo roporting div-
ootiy to 2113.9 It coma-V: ‘rm proved readily one my or anothor that tin
or oi: individuals should be tho maximum number. Tho higher tho lovol
of fiho supervisory position tho Hora coaplox tho prohlomo of policy and
tho ootobiiohoon'c of? yr-aoodeni boom, and tho more timo io noodod to
proporiy handles thooo promo-no. xi.“}mr'23£'o:~o. high level political ohould
“not'ho homoerod by problems of ouporvioion and common problomo of
coordination of activitioo that conic! bo mm ottoctivoiy ond oftioionhly

hondlod by mbordinoto mpomiooro.

Ioorooocd complexity in no orgoniution dog to inorouud 101m,
ohtngo of product. or clung. or prooul, loom-u tho no.4 for crucial-
isvioo within 1 lino or am: department. flora-r, it my be the an
manly“. of an organisatiootrou a magnum: originating Itoudpoint
would indicnto that greater Officiant-y by in simplifying procedure.
than in main; to. I! u of the organiution to emanate for in-
orouod oompluity.

standard control: should be aublhhd to direct the attention
of supervisor: to matters of most importance. A Input-titer is vitally
intorutod in the dog". to mien ho is othining tho ohjoctivu of hi:
petition. Control report. should ho to duignad tint thoy I111 "flock
thin dog". of attainment. Any «peruse! when work a product in be-
ing hold to upoolfio weddbominod outward. would b. givon tho unio-
tmoo out! mmem mom“? to «In-bl. him to no» this standard.

moor-amt cooperation but“ position on tho un- level
of roupomibility but not 1'01:th by ofminti cool 11m in mouury
for tho affluent functioning of an organisation. [This in, honour", on
infoml relatimhip thnt '11! not in round on the commotion“ organi-
ution chart. In closely uni-d d—rpaflmonto. Inter-departmnt coopera-
tion batman position. on diffomt 10701. of rumibility my in
noon-try to upodito production.

Wham. omo-fortiliution can be Iohiwod through I viuly Rimmed
mos or ineor-dopuruae coopcatiln. Ono inpatont tool in this con--
auction in tho conform“. upooidly when tho mthod of dotomimto dio-
ouuion‘o is utilind undat- the dirocticn of a. tninod conform” louder.
Originaly thou confer-onco- won out up atriotiy dong 6W1 or

~68-

divieiomi linee end ehretified ee to levele of management. but eioce
tine-id For 11 there bee been e tendency toward the oration of confer-
ence groupe comprieed or green eeiected from eideiy eoettered wish
and levele throughout en orgenieetion. When-e thie unprecedented develop-
ment. hoe been preceded by eound augment poiioiee end buie eupcvieory
treining of the orthodox type. eneceee hoe been 'mtetending. In met
caeee gyrigde com end undereunding have ehmd eignifi not improve-
ment. It em to the writer tint here ie ueietenoe in «crooning the
euree of epeoieliutioo that etteohee iteelf to meet middle augment
m ehoa1‘0:~nrmted to the make or top management.

There in en urgent need for the mining of more ”genenliete' in
the field of numb-men drilled in the relation of epeoidieed tech-
nique end knowledge to the totel eiiuetioo. men who recognize in their
phoning end operating that when phyeioel or phyoheiogioel forces ere
either created or ehenged in may one eree. there will be reverberation
throughout the eotire univeree of which thie ere: ie e pvt. fhey met
eterneny be "are of their reepmibility in creating the whole environ.
3:332 within which individual pereme gain than; experienoe. utilise their
epeciei urine—end m1: important or oil. develop their pereeneiieiee.
Thue eeneideretieo ehirte‘ from more individuel efficiency teem-d 322.3.
gfleciivmegge

It he been the writer'e experience than: my nmgenente either
hi! to undereteod or they ridicule the impatience of peyohoiegioei
foreee. M eeeee em to mind that iiiuetnte thie point.

wiieon nee firir'e predeoeeeor ee pereonnei director or the dire

‘-.hmteoturing 6mm. end hed been fired. fiie‘ boee (the preeidmt,

.87-

eleo fired) had eaverel year-e prior to thie commented ehet be deemed
to be e neat piece of etretegy by giving the job of poreonnel director
to the lone! union president. The “old an" figured thie meter more
mid oer-mt reletione between labor end nmgeeent. fiileon. being pom-
ler but imetore. decided the proper thing to do one turn completely
egeinet the union, end he 'mnegmnt eluded“. soon hie populerity even-
oreted. end en inpoeing; egende or grimncee eomleted to en extent
thet e etrike lee imminent. At thie point Eileen went out end Kirk oene
in. Kirk'e initiel eeeignmnt one to flew up the grievenoee, end, it
poeeible. prevent e etrike. The firet importent dieoovery Kirk suede one
thet there In no ectnel eubetenoe to ninety percent of the grimnoee.
He further found, to hie enrpriee. that the toele of enelyeie end logio
were required only to e very limited extent in diepoeing orithe grimnoee.
In thie eitnetion he learned the reel meaning of good home reletione. In
hie effort to rant to the bottom of the ”gripee' in e feir, heme runner,
he interviewed the mime eggrieved employeee individnelly, edopted e
friendly. interested ettitude. end let them tel}! 11' he kept the eggrieved
onployee telking long enwgh the grimnoe owed to dieeipet'e into thin
eir.

In the eeoond cue Certer eee eeked. hecenee or hie reputetion ee
e n-ethode men, to reorgeniee the eelery payroll depertamt for e ierge
eiroreft mmfeoturing pleat. Re nee told the mtinee were ”in e neee".
end thet eeverel tie. the depertnmt hed elnoet ”peeeed the payroll".
e major dieeeter in en office of tour thoueend employm. He etndied the
routinee ceremlly for e for deye end found thet. if tenured. they were

at but variable. Then, rether then refine the routinee. he turned to e

.68.

etndy of the employee- in the d~ps~zrtmtg With only e little eyetmtio
interviewing he dieoarored thet the dopartment wee divided into two hoe-
tile oempe (inflornei organisation). One or the too eenior olerke in
the department‘ene Itelinn Renee Cetholio end the other wee Orenge Trieh.
The bieerre»etnoephere of medieval enimoeity polluting the working on-
viroment would here been emeing hed it not been tragic. Roth these
olerhe'eere technically competent. but definitely uncooperetive. end one-
tinnelly ettempting'to ”got” eomething on eech other. Carter grednelly
befriended both entegoniete. carefully evoiding the religioue iesuee
within two nonthe he hed helped pranote the Orengemn to e better job
Idth Inother oomptny. Thin more proved to be the foundetionel etop that
led to the eventuel etreightoning out of the department. In thie eitue-
tion Certor found that ivproved heme reietione end not innrored methode
were nodule

Although Frederick ‘féinelow i’eylor epzreoieted the importance of
the human.element, he ohoee to devote hie life to the improvement of
methode end meteriele, rather then people. It ie only noe'thet the
bums feature in management ere being eubjeoted to the Marching enely-

eie of eoienoee

.69-

CFEAPPE‘R VIII

?‘YE I‘WRTAT'CE CT?” I:mr7r::=:¢:31?

 

If the filter were eeked to name the elngle element most imgaortent
to the euoceu of ecientifie mnegmnt he would unheeitatingly reply.
“Lenderehip’. A leederloee organieetion, though otherriee excellent,
can eocmplieh nothing worthwhile. 0n the other hand, an organieetlon
with many bundle-Lee. given good leecierehip. can eooomplieh much of e
conetructive nature. In e come. the indieeeneebility a? leadership my
be emperor! with thet of charity ee used by €t. Paul in his famous First
maletle to the Corinthians.

The eeying that laden are born and not made is untrue. fitatumlly
there are born laden who do the right thing apparently by instinct:
m any other pmm heve quelltlee which can be developed, with the
reeult that their ekill et leading my be appreciably etrengthened.
smthing thet eheuld be born in mind in dieoueeing e subject like load-
erehip. which bee mm eidee. ie that it is neceeeery to look at then
one et e time. Yet the total flew of the whole is the only one that ie
completely true. John D. Rockefeller an” aid. “I will pay more for
the ebility of leaderehip than I will pay far eny other ebility in the
world."

It in hardly wealth to magerete but met: emaciated group
lotion there the to be in the mod srn world. In It lent three-quarters
of hie linking hmre every edult livee and novel in e succeeeien 91' group
effort“ We work in grayed-commuting institutions. government
bureaue, etc. We play in grwpe-ogolf clubs, ethlotic clubs, bridge

clube, etc. We do éivic work in grmpenpolitleel pertiee. ”em-vice"

~70-

olube. tupyore eeeooietivne. etc. to ere eduoeted in grmpo, '0!"
chip in grunge. It ie emtime difficult to realise that thie ie e
rolotiroly m not; that it brings up one vitll problem of 5.21.5.3
gala group eotivity I tap}?! and utieMexgex-ionoe for pooplo.
more tad more people ore coming to recognise thet one omoiol actor
in the Iolution of thie problem ‘18 the quelity of leadership ohm
within the grape they join. Thin in true because:

e) typical organiutiooe today ere grwing very rapidly into
grout all“

h) organiutlm rely on tho effective nrtioipntion of may
individnele who are contimnlly joining than with little
previcno knowledge of what the orgouiutiom are striving
to do.

o) tho lorgor en organiution gate. the more functiomliled
it tends to be.

All than foota'e neporete the individuol mow-abor or worker we and more
from my parsoml commotion with the organinetioo he joins. There ie
no loopiretion, no feeling of solidarity; vat any care for each remote
connections.

that ootnully happen! in that in may orgtnlntione-nboth om-

oiol uni non-oomroiol—worlc in divided deportmoutelly. not: deport- '
not or divilion ha t directing, hood. The contact of Wm with tho
omintion n such men through that hood. if it come- et ell. Yet
the efforte of etch individuol ere expected to an into pleoe u o
.roleted port or the whole large plan or the ormuetionn-vto follow the

purpou or the whole orgeuintion. Ho nutter how agar e “joinor” o

-71..

pereon my be, he will ”never here e feeling of eotuelly belonging; to
the group mile-e he hoe eome poreooel contact with the organieetioo.

any here ted the Imtzet peioful aperime fixer: they joined
e nee eohool, e new club, or e our oompeoor. of feeling they did not
”know that it'e ell ebout". of “not knowing where they fit into the
picture”. It tekee epeoiel effort on the pert of emone in the orgeni-
Ietivu to overcame that feeling. That effort tonrd unifying the deeiree
end efforte of ite acetate ie e dietiective tee): of the leeder.

In every crgenieetion the tendency ie for both department heede
end the rent.' end file mowers to eee the crgenieetioo‘e gratin in
tom primrily or their own muotionel effort. ‘People who work in ero-
dnotioo dopertmte eee predictim departments ee elleimporteotuthoee
who eon-i: et ceiling etreee the nice end. The more out up the orgeoi‘ee-
tion become the snare danger there ie of bringing ebout thie epeoielised
interact. Only e Went lender can correct these unknown of tuna.
tioneliee end divieioo or labor. Only e reel leedor ceo keep the group
united to that one elm which eloae producee the beet multa. In other
word” organisation. require more then edminietrotim. They need to be
led beoeuee the home reletione of the 1.4.1.4 to the rollover: ere fer
acre nos-eel end pereonel than the onion of e commander or the routine
conteote of en executive.

ilerely for people to know whet they ere euppoeed to do ie not
enough. You can here e worthwhile objective, you can have e diopoei-
tion to ect reirly for the nowhere or e group—othue elooe never produce
the etrongeet #0119 cooporetion end morele. Someone met take it ell

egoeelinfi. Someone met make the group loyal to the wrooee of the

.72-

 

 

organizatim. Someone mat to eble to ehoo people how they ore bone-
fited by belonging; to that organisation. That someone 1o the loader.
TYot e cmndm Cmmnd :- en mien-ciao or pom 31g maple. while
leoderohio inpliee the creation end use of poster 3.1333. people.

a oorporetion that elooye acted literelly co the statement that
”we're not in business for our heelth, we're here to mko money” would
o‘wioue‘ly make many ohort-eighted deoieione. A golf club that one run
seat to onto it ooelible to ply golf mid loee moor-ware. For they went
other reluoe ouch u care in the eeleotion of mentors, a good clubhouoe
(bar, oto.). leeoone from the pro. demon, etc. In other worde. eppeel.
worele rarely opooore without a good leader.

‘me ommier, become he two the power, puts: the welders of the
organisation ahead of the welfare of 11:13 More. The leader, because
he tum homo nature, will etrive to unite the welfare of the orgeniu
lotion and or its mentor: one and the some thing. For he will appro-
oiete that ergonieetiene ere elm It means to on end, ogonoiee to help
eohieve taut peeple not. Every directing poet over people ehould be
e leedorehip poet.

The cenee of eohioreoent end worthmilmeee that each person events
can be eeourod in one of two bayou-by eolitory oreotiveneeo ee in the
me of en ertiet or by group oolleboretioo ee in the one of met of
oe. It requiree leederehip to get the unreleted activity of the indivi-
dual effort of my group into group unity. group pride end graze teem-
Irorh People really hunger to be led and it ie the effort to eotiefy
thie desire that puts on each executive the elder! rmoomibility of

1 “(10" hi P.

«#73.

9'02? 3.3393; ie making the effort to lead :3 group of people to
eoomplieh emothing together. The minister of e church. college
proficient. director 01‘ e play. tectoa'y eupericteodent. foreman. etc...
ere e fer maplee of leaders. There met be some coma rector run-
ning through theee variant ectivitiee-cwhioh mice! them different from
purely directive or administrative positions. Loaderehip on: be de-
fined on the ectiviw of influencing people to cooperate toward eome
gall which they come to find dooiroble..12 This definition tekee into
consideration that people not I eeme or eohieveneot and worthwhile-
no”. This definition in eeey to write. but to be understood fully
there ere come» other rectors to be taken into eoeount.

like: great e lender one become depmde om pereml fluctuates-le-
tice. The opportunity to leed ie mmiehed by total ewironneot. It
ie elmye related to epecifio eituatione and needs. Cal Coolidge end
”Promo become presidents of the United Stotee becauee they were vice-
preeidv-mte M: e tine ehen e President in office peeeed any. The
ohenoe to hold this office come to these men through toroee outeido
thmelvee. Lenin. 1lizaeolini. Hitler. end Gendhi ell had encore that
ere herd to eeperete from the oiromnteoou of the time end piece in
which they functioned. fine men oer-e. of oouree, leader: of large
entire, but the name fact- ere true of e luder in any met, no mt-
ter hot "all. It in the eituetion. and not the wear: elone, which
ellm the loader to functionex

Elven when he originates en organization of any kind, the ludor
is able to continue only when eoozgh of hie follow" ere convinced

he bee eomething of value to be done. The lender ehould elaeye realize

-74-

that ho tchimr-ao only on long n he in in a situation when thou ho
land. can achieve. If the situation and opuortunity are on important...
it in Industry to b. clear 0.: to the cannot- in which elevation to
laadaro‘nlp «many talus piano.

The lender ”looted by tho flap 1: typiul or domcutic politio
cal organlntionc. tratomitiu. eta. “mu process has the udnntago
of weal-pocmg that. ‘10 a. 10:3 to follow bmuu they believe they
can trust tho loador and his purponu. The lander is wanted to be the
mpmhu‘ or agent to carry out (execute) the group par-poo“. The
feeling is that he 10%»). of tho gang“. a “regular fallow”. This 10 a
trmfidmu help and all". thc leader's main problem on. of how the aim
to to be Ichiovod. But this typ. of loader to shay: bung touted.
Mounts u long to the panibllity or rmloetlon or reappointment in
present, the right to load ban to be earned conthmounly.

the thud my in #11011 poofilo got the charm. to be lenders it the
method mod in may kind. or organiutlom—buclnun. institutioml.
stow-more I hard of director. or tmtoa nppolnt head coautho-
uho in turn 0.100% the In"! «What. A11 mch lenders tr. rayon-
dbl. for nmltu obtain“ by other: working uncu- then. And the“
cam“. h“. been hind, anally. wifimut any amount-y intranet 1n the:
but. pun-poo. of the organization.

The problm of Index“. or thin sort is to deal with mph rho-o
legal relation to the ‘holn group 1:. for the nut put. am of mate:
and "mat. ind £0 danl with than in such n my that thin ralatlem
ship in changori into something approximting i; Mum-chip. Prom t

group brought together by aWat hit or miss mthoda. thit leader

975-.

has tho hard 30b of trying to bring obout some unity of interest. o
morale that implies Ifilling uorvioo in a common cause. In.othor words,
he has the gob_o€ making followorl out of hirolings.

In the first place. all that moot pooplo know is that they have
a jobc—nnd that having a job in the condition or having tho moon: to
pay for food and oholtor. Tho lenders problan is to show thom.thut
by helping tho group thqy are helping themaelvon, that by being loyal
to tho organization they are being legal to themselves; that what they
unfit to gain in boot roalixod in tho efforts thqy not. on.bohalr of
tho proopa'ity of tho group. His problem it to min them want what tho
orgonilntion unto. Thin my not am like too tough a problem until
In look at tho objectivoo of tho organisation and consider honootly
juot how tho Miran no related to than in tom of a ohm in control
and in rowlto. To “odor-tuna this problem bottom- ; lander ohould know
tho M hi. on: objootim p18: 1!! dotormirting hon hr be out go in
influencing othoro.

“rho lador in on artist. Instead of wing paint to mtorial or
'wood (as a'Iood-carvor) oto., hi. material in pooplo. Knowledge of
tho proces- oi’ influmcing pooplo has increased greatly in recent your...
Tho noorof that knowledgo'by tho lender in only & coco of aoplying
truth: that or. in ono form or anothdr on ovowyday occurrence. A doa-
cription or mien mthcm or influenco utiliwfl by Imam fo‘! 1m.

“\Suggartionumuy to either direct or indiroct-«it is usually a vorpol

hint ulod to build upror maintain tho orootigo o” tho loodor or to avoid
the dungor of offending tho pride or disturbing tho aol’wcnriiinwco of

the follows. An example would ho giving order! ‘2" omsrentioos,

.76-

suggesting poaniblo injury unless I: oituotiou is changed or clan-oi
up. himtwm' is clone to set tho lador sport in suggesting his
ioportmooudtitlos. uniform (mg... foromn'a coat), ate. A loaaar
who Joins in group activity with his mm is using: augmoticn to
indicate that booidoo Ming; It loader to in also I "rogular follow".
or "one of the boyo”. A trial balloon typo of suggest}. so could ho,
What do you think of those changes?" A polite com-ouch could be.
”Rams. oloso to the administration “henna";g

Imitation in, of cmzmo, not on active process for tho lotzlor.
it in the follow”: who tom! to imitate the leader's mnnoxism. or
notions. ouch as the loader taking time off, coming in late, or break»
log othor ml m.

fibortation is usually on mtioml appeal to a group. How vain-
able it in for pomnootly influcnoing othors is inmooiblo to state,
but it does own to hsvo value in naming mthusism. for helping
mims drives (omnity chat. comp, not», sbsootooim, etc.) tn
Ouocood. This omld be used by tho formn in oppooling to a group
loader or to o uholo dopartmnt.

twosion by "meat is usually used moo it is masonry to
influomo individual minds to «gs-moot on Ipooifio isauoo. L donorio-
tion of tho stop nood~conoi.dorstion of the issues. weighing Q11 tho
widen“, considering oli altornstifl moibilitios. uni the disposition
to abide by tho outoom of careful doliborsti man-ore not within the
scope of thin-thosiu. A good leader is tromodcusly 32611394 by hoing

I clout rationor and s. friendly matador.

077‘

Ezblioiby u u what! of influencing people in not u "punt.
proca- :. but 0. techniquo for mpporting can. of the abhor pronoun
disco-loci hora. It can b. done by non! of month by u roman or
his group leader: or by action on a dopurtmt bulletin board, or by
other ouiublo mam. It an contort: prognu of effort. to reduce
soup or out... for onmplo. Thorn in o differmo. humor. bottom
publicity and Ironwork. Tho latter aim only M of tho fleet.
or a bind interpretation. It: pupa" it umlly Ioli‘iuh or borrow.
Publicity is to «fork to out taro” idou‘ or points of View in an
honest CHM to inform. ‘

that com t that when «on: land» bu to nly on the 10530 of
mg}: to have his follwm boom Inn of I problem or to be inter-
ostod in C promos! Iolubion. Evan thmgh u loader is ublo to tnticio
out. umblo. Imam it in isspouiblo be got nor. than a In fol-
lmru to look thud boo. Pooplo an inclined to worry about problem
only inn they «and: in ignorod any long». no“: pooplo do not look
chad to borrow brmblo. Thor. in on old flying, 'Rwor brutal. tmblo
imtil trouble trauma you.” ‘A real louder can look thud and antici-
pate trouble. E0 in. to dooido whether he will force «bastion to the
pending problems or if ho will nit um! lot the non-no. of want:- bring
muons of the broublo to hit follower“ For maplo. in a given chop,
it you can no thud to inorcuod canto. it might be difficult to got
cooperation to roduoo out. if the imativo bow. of Via-km in high.
With a lo. bonus. "auction of out. light bo cuter.

An indication of duration of the land" to his followers in o

painful tore» without qua-tints cm of the limb momml instance:

.79.

oi‘ loading hsvo boon baud on this. may huts hosrd psopls sly

sboub their boss. supervisor. or prosid out. 'I'd do swthing for him.”
How I lador can In tbs kind. of person in: bring shout this fooling is
cos of the by points in lss'dsrship.

Lastly. crating I typical problss situation in order to issru I
lsssou has its solubiou, is nothing was nor loss than lssrninp, by
sxperioncs. profiting from nisbskos. Sonatina this an in I costly
lesson. which is scathing tho lador will hsvs to common But_ some-
timos psopls rsi'uss to losru by Irv othor nabbed. As In «stools.
tbsro is tbs story of the {Iotory omr who noted to tosbsr ”amour-soy"
Cm his son-hrs. Ono asthod ho boiisvsd in sss to snow ssoh dspsrtn
mat to slsoi: ths formu, subjoob only to his aim vsbo in Ixtrm cuss.
On one ooossioo has me bust the wrong no nos slootsd. but insbssd or
«cruising his veto your in tho usml Russia! winner. in dsoidsd to
unit sod no mo scald hsppon. In I oouplo of moths tbs mm in tbs
dsporbmont am to bin and Idmibtsd busy hsd suds I msbsks Ind slated
to hold soother Ilsotion. Ho Ioooptsd thsir "quest on tbs condition
thse the m bkmslvss hsndls tits donation of the pram fox-solo sad
in sun no iii-viii board the may mid result from returning bin
to his old Job. This maple is given, not be justify bhs owner's
Iotioo. but only to show how than involved in I situation issrnsd from
it.

Tbs losdor Ilsa is I symbol of the csuso ho is sorting Ind in this
my influenoss psoplo. This miss I porsonsl Ipossl to than Ind cis- .
mnds loyslty. Then is one danger in misc-loyalty to tbs person any
mentally ovor-shsdos Ind in soon on» sntirsly olimimts loyslby to

the «not.

i‘he lesdar is doing his job when people are influenced to cooper-
see tons-d em goel they come to find desirable. Business groups Ire
on «Intending maple of grams there the individusls take port with-
out helping to formlsbe the group sin or without having the ohsuoe to
st that they agree sibh ib. lbw merely agree to come on the payroll.
The relsbiooship between employee Ind management is one 02‘ meter sud
servant. A Job, for east of them. is oeoeeeery for survival.

Hoe vill those employees be led she feel but Ill they can gob
out of their Jobs is the weekly pay envelope? The one great desire or
mourners or busiusos groups is to be retsined on the job. he" Job Is-
curity.“ There are other desires thsb Ire more positive. such so the
desire for personsl improvemnb in end through the working relebion-
ship. The goIls which people in groups filliogly follow end the leaders
they sill gladly serve met spoon! to them in such I way as to sable
thou be ruslise some persons]. gain. There is Ill the difference in the
sorld between sibustions share mmgeoent 3.9.13.9. workers shot the Issue--
lobed sins Ire and those where Ill the workers ere given the opportunity
to Loin in creating, or chengiunghem.

me bee proved true in religion. smies. Ind politics is she true
in other group effort. F’eoole need the leeder to help show them and
give them the experienos which convinces them that their loyslby to the
group is I good thing for them. This involves more then s blind trust
in the Indore-nit involves shoring with the leader in deciding; vhst is
to be done end has. People can be rude to follow it they use be made
to see thsb the direction being taken is good for than. {any I In

has been fought by non led to die. believing desth better than endur-

~30-

enoe of conditions thought intolereble.

Leadership is not I utter of hymetieze or selesoenehip. It is
I matter of leading out from within individuals those motives Ind
efforts thq discover to represent themselves met truly. Most people
do not know that they reslly went until someone helps them.

#51-

(THAMES? IX

/
{war-fr; Fifi-0P1??-

 

i’Ehy do people fail on the job? The author esti ates from expe-
ienoe thet eighty pm'oent of failures on jobs occur not because the
individual does not know his job technically, but because he cannot
get along with people. In one large manufacturing plant forty grad-
uate engineer were hired during I dlender year and It the end of the
your two were still on the Job. The reminder omld not get along
with their associates. Recently a leading consulting engineer declared.
”The importance of the personal and sooiologioal aspects of our be-
havior as engineers cannot be oven-emphasised. In I recent analysis
of over four thousand uses. it was found that sixty-two percent of the
employees discharged were unsatisfsctory because of social umdeptahile
ity. only thirty-eight pwcent for technical incompetence.“

Ehst is successful hendling or people? The supervisor not only
met be Ihle to get along sith people. he met “handle" them, that is,
have these do what he nets them to don-Ind like it. Successful handling;
of maple is getting others to do shat needs to be done and feel right
about doing it. ‘10 he moosesful this feeling; mat he enduring toward
the particular supervisor concerned.

There ie a say of verifies so that any situation can he handled in
an honest and sincere manor. It can he handled tactfully by giving
suffioisnt thought to repention, Immch, presentation. and discussion.
Over I period of time this say of waking because second nature and it
is instinctively used. If this belief is accepted and used. many “fussy"

situations that previously arms in dealing; with people will be eliminated.

.82 o

‘Z’he result of this my of muting is s sense of i‘reefim. of Open-
ness. of being; shls to deal with superior or subordinate without tear
or favor. Although the supervisor will prcbsbly mks honest mistakes.
there will never be that overhanging four in the hack of his mind that
some covered-up situation my explode in his recs. There is never
that uncomfortable feeling srising beosuse of the spprosch of s person
who hes been incincarely handled. Consequently e hotter grsde of sort
results from that sense of frowns end the self-confideocs that scoote-
panics it. There is s feeling of being on top of the job instead of
having the job on top of the supervisor.

During world War II the Prstt end Whitney Aircreft Division of

-the ”sited Aircraft Corporetion dmtod extensive research to the prob-n-
lova of shat qualities should be «pacts! of competent supervisors. Yet
the least valuable tool in the develomcnt of their findings was fro-
quoot com‘crencu with member. of chop supervision known to hs‘vo particu-
larly succeecml work pet-tome records. After may months of poios-
taking; effort the following qualities were determined to be spplicehle:

A. Qualities Primrily Headed in Dallas; with People.

1. Integrity
e) honesty
b) sincerity
o) courage
d) trustworthiness
2. Diplomcy
0.} hot I) personsl mgnetiem
h) fomet‘ulness g) energy
0) permseivenees h) firmness

d) confidence i) cmrtomsnecs
e) cwrege

c83-

3. T01 mnco

o) thmg‘émmhmm o) undarotanding
b) patience d) omnmindodnou

4. Coopontivonou

o) hoipmlnou d) opomnindodnou
b) friendlinooo o) aomo of? roepomibility
o) responsiveness

F3. Qualities primrily Hoodod in Dealing: with Things.
1. Initiativo

a; rooouroof‘aloom d) foresight

b imgimtion o) visualization
o) duiro for ottioioncy

2. Determination
o) courage
h) ptionco
o) induntriouanou

C. Qualities Concerned with both Pooplo and Things.

1. Judgmnt
o) thoroughness d) omlytiool ability
1:) accuracy o) loyalty

o) completonun
2. Domhbility
a) consistently sound judgment
1)) stability
c) hitht‘uinou
d) loyalty (than u indicatozi through good ottoman-mo) .
1 To «amino completely «oh of tho foregoing outlitioo is not: the
objective of this that“. It in plainly widout {tom the outline,

homer. that the work of than who supervise other- io mostly gtoggiblo

 

in character. It will be instructive to observe the operation (or lack
of opantion) of o to! of those quolitieo in octuul one”. ’fho first

case is o ctonr tom by u group loodar: ‘fi

Fox-mu X opprooohod John Doe. o group lander on "1.1)." Grindoro.
with o 101: of twin goon, and ookod him it ho wouldn't grind than.
John Boo no o new group louder and oo o result did not know tho
ropeo too toil.

Boforo attempting to grind thou ho docidod that ho had bottor
chock than. Tho first gear that ho chookod did not hovo onmgh stock
on tho 1.0. to clean it. Rio thou chockod than 111 one! found that they
won I11 tho omo. 17o opprooohod foromn it one! told him what oondi-u
titan tho goon mo in. Tho forma‘o roply no. ”Oh, You I forgot
to motion that whoa I brought them over to you. I mount to. but it
olipooc: w mind.”

John Doc than “Rod the formn if it wouldn't bo bottor to pat
that: on oolvago u thoy woro in tho roughing otogo with only obont
throo oporotiono oomplotozi. (Foromu X hod ohorgo of tho roughing.
Grinding com undor finishing work, with form A on tho hood of tho
divioion.) Foromn K‘o ropiy to John Doo'o gum-y no hint ho would
toko .11 rooponoibility tor the goon. John Boo diatruotod him ond
dooidod that ho won't going to toko ony chomoo. .0 ho wind tho goon
with o much.

About twolvo operations inter olovon of those gooro com book for
griniing otter hardening. Ono no loot. Tho goon bod (:9on up in
tho procooo of hordoning oluo tho inouflioiont otock in tho roughing
oporohion. It no found tint they would not oloon up now. which no
to bo tho finioh grind on tho 1.0. at thio goon John Doo than op-
orooohod for-emu X and told him that tho goon had oomo book and thoy

wouldn't; clean up. {aroma X promptly instructed him to put than on

~85-

oolvogo no tho; would probably ho comp. John had the masonry popor
work undo out Ind brought it: to foreman X for oigmmro. 'l'he foreman
mintoinod he would not oign the gloom to ho did not roanooixor looking
my mob outflow. John tried to trash hio manor; but tho effort
was obviously noted. Thou. and only oo I» last renort, ho rolotod to
the form how he had mrkod ouch goo:- with o punch. 'l'ho tot-mu otill
denied it, but with reluctance signed tho salvage ohoot.

In tho mountino toromn X bod told oomoono oloo obout how ho had
intondod to pool thio oomp on to tho grinding, ohm ho know all dong
that it no oomp in tho rough stage. 'fhio otory finally 501: book to
John boo. and he brought it up ono day whoa ho no hiking vith formn
it. The fa'omn otoutly repliod that no mo could blono hin for trying,
which no of oom‘oo u good oo o oonx‘oooion.

Km- for o brie! onulyoio of this oooo. ”Did for-man 2: gain? 3T0.
ifo otill, had to oign for tho goon. ho loot: preotigo with John Doe. and
ivaporilod hio job by bolkiné: about tho motor ond confusing it. should
John Doe have reported the wholo story to hio ouporior. foreman A?
hmld ouch lotion hovo some! It oomtruotivo purpose? It mold probably
hovo improved future rolotionohipo for tho away, for John Boo, onci
ovon for {crown I. Should John Doe havo reform the oituotion to hio
ouporior for ootion rather than try to homilo it further himooli‘? You.
Eon-om A mid he on tho sumo lovol of outhority oo forms: it ond on
be in o pooition to properly carry tho meter to umgmnt. 'sonovor,
his own imooioto ooporior— is John Doe'o tint do? in the organiootion

ISMBI’o

086-

’s-‘ehat docs this can» illmtmfio? Tho 1noff’octzmlity of.‘ dishonesty
on the job, tho rooul‘ant low-wing: o!‘ morale, an}. tho boomerang nature
of dishonesty em! imitaoority. E'he qualities endear tho capti on
”ioteagflty” can he linked with this once. to follow:

1. Venom? - Pormn .‘-' defrauded his canyon}; and attonflzod to

triok J ohn flee.

2. Honoflm' - Formn 3’ we not «huh he appoored to he.

3. Fannie - Y’o owtahly lacked the courage to report the

romppofi more 1 . ho first ill-«ECG.

4-. S'mstmrtMmg; - John Doe will never trust E’oromn x 65:31 no

Tho follow-aim: is anothor maple e: told by a group loaders

“There an on ooor‘ator on any lino who conetently disrupted the
routine of the any. 5‘34: ms the to tho fact that this man had very little
experience on e lathe-min not very little machine experience of my sort.
Va conttmwely kept gaming into trouble by doing things thmghtlmsly.
For sample. he trim: to room a hole first without drilling; it. This
mm me very elncero no.5 choorml about mmrything, no it no hnrd to
get fit! of him without hurting hit feelings. Thou it Mpnmod one day
that the “run of tho noxt department no looking; for help to break
in on grindiog. this I thought me an opyortunity. I first d! smite-'1
tho nltmfloo with my forum“. He fihoroughly agreed with my plane. I
mart went: to the operator. For moron-e1 days I tried to intoroet him in
grinding. I told his: casually that grind! ng: was interesting and re-
quired drill, and qxite a change! from Inthe work in flat the tooling
me different. I also told him that this no I. good chance to acquire
varied noodence. Fi‘ml‘ly he aggraed to hire a chance.

I

.F. 7-

”The ma was tnoeferredntomoomrlly. After a ample of weeks
he got the knack of grinélrg; and it proved to be such seal or for him
than lathe work. He th on was transferred permnewtly. 3a a rowlt
of thia armngment everyone was aatiafiod aod more than anything, also
the me thmght l' we: a good. avert in helping: Ha- get a 30‘: where he
ms happier.”

This ia a clue:- case. 31:! the grow leader gain by thia atfoke
of diolomoy? 1% won the good will of the operator, and no doubt
raised his stock in the eyes of Me foreman. He aloe inomaed hie
mm self-respect. aid the operator gain? fie animal a job he enjoyed
and bin aelfureapect Iaa preaemd or even immoral. Did the congeny
Cain? An unsatisfactory employee became nrochzc'cive. A: a matter of
fact, w lost.

It tho groups leader had tattleeely eeoufed the mn'a transfer,
that would probably have Meme“ me operator would definitely have
suffered a loan of colt-raped: and perhaps least a job completely. The
{P099 hdor rmld not have gained the good will and eelf-eatiaf'action
of a job well done hhath‘emctually am achieve. The company mule! have '
loot m smut-me 2n the ”plans-who degree depending upon ahether
or not: the employee male good on anotheo job or terminated. It can be
said, than, that (12:1qu on the 3:3“: definl‘bely paid dividends in thin
once.

Anotha' easel

4 illustrate» the use of the qualltlel of tolerance
nod fitment, and la an «mole of goo! handling. The executive in-

volved in the one Mr! been an extrmly able apeeialiet who dealt

of’Bo

ilth opoolollete. 9o was a oorfectloniefi, and tho human olemont
hardly ovor entorod his thifiklog. A task could elthor be done or

not dmo-uthero no no mlildle ground. ’f‘o him all such thlmo wore
block or into. 'fi‘hore me no gray. 731: molazror. who one {miller
with the 3"th lfimdr Advanced ?‘hzrmgonont 91'0an and Ste vélue
for the intensivo training of toy company poreonnol being grooood

for pronotlon. cont this oxocuttve to Harvard. 313 common? sent him
become he one due for not roononoiblllty which would bring; him in
canine!) filth all hymn of mrsomel. mo superior muted Mo to
develop tho nhlloeophy that poople oro pooplo, that to err 1: human,
and that he must try and undc'ntond why ooople do tho ollly things they
do. 3'9 went through the compo. fired: with skepticism and lotor with
real enthuoloom. Soon oftor hie return tO'work he no: oronoted.

In his new domflmmt thore on: a mo uho ouddonly hm! beam to
build up on Homing Iboontee I’M. ”A! was always 111. At loeot
once a cook his legs Iould ewoll upland he would be unnhlo to go to
wank} The-executive had a doctor examine the men, and thore one no
doubt that he not not well. the oxooutlve unopectod the men one drink-
ing heavily om! that his absence! were caused gore by hang-aver. than
by anything, aloe. A your boron-o. he would have fired the no.

fiooovor, hozreoollod tho ceaoo he had studlefl at ?orverd ood how
they etreeoed the ldviooblllty of olde—etepplng tho obviouo and really
getting to the heart of a problem. Perhaps tho man‘s lllneee roletoo
'to something else that could bg’oorrected. The oreoutlve'oode it a
ooiot to moot.the chronic oiler in o coeuol toy and start talking with

him. They chatted about eporto. Memen- conditions. people. oochl

'4? Q-

affairs. Finally, the bone came to the point. is told the subordi-
nato frankly that ho suspectoi him of drinking too much.

"To, sirl" the man protested vigorously

"RE-mt 18 it, than?“ naked too boon. ”In it money?"

The employee hooltltsd. than blurtod out. ”Zoo, sir, it in. I've
gotten into tho bonds of nomo'loon shark. too thoy or. driving on crazy.
I don't know how 1'11 over ho on}. to Ihoko them off."

That was all thorn sun to to. Tho boss holpoi tho man do.t little
rofinancing, and in a fou'montho ho was out of debt. Thin man no: not
missed a day from not: oinoo. as hot boon promoted ond 1o oomplotoly
hnpnyo ‘& doctor explained that this mon’o norvoo bod offootod.o sciatic
condition on3 caused the ouollingo. If the bozo had taken the obvious
for granted ho would have not the stago for trtgody.

A £1331 caso14 1: an example of both had tad good handliag and
illustrates the ogoratioo of a aid. range of qualities. The can. con-
ooma a sot-ion: situation mick had daemon: in o largo plant employing
lateral hundrod for-omen.

It boooao apparent to the top monogamont that graduation It: do.
cidony off and had boon over sine. a votmn superintendent bod ro-
tirod. Breakdown. to qquipmont wore froquont. Layoffs our. fluctuating.
Top monogamont oonfi coo of its youig oxecutivoo from tho home office
into the plant to rectlfiy the situation. 29 ctudiod the arablom and
decide} it required a strong hand.

Eur; weak he called. a meeting of ho foromon and caused those
who had done badly to be singled out by mama. Khan this did not yield

results, he hogan requiring tho errant foreman to stand up in the

-90d-

muting- vith their colluguos one! be publicly ncoriotod. It it
obvious wot this did to the plant. Every form!) walked around in
fear and trembling. Instead of being leader. or their men, they wont
trauma coddling than. 00 that by calla-ion they could cam up on
much u possiblo. TM. no hardly first top monagmt had in mind.
The situation grow to loot. that tho rim of tho for-mu who hod been
publicly rebuked in. forced to who the gibu of other tom thou
husbandl had been won tortumto. Hahn-ally. the man howled.
Finally, in dupes-11:1 on. too mmgmut and the ”bright young
man" back to the home offioo. and uimltnnoouoly «110:! the torn:-
oupnrintondont out or mum. ii. rootorod proéaoti on to format-
quotu by u very simple «mu Bo wont into the plum: one! mtohod.
4:11on he found com. deficiency, ho called the foreman uido printo-
ly ond aired hin that no wrong. The" no no emu". no throats. no
public exposure. He simply ukod, "Why?" no kph on taking; "my?"
uhonovor than III a bmkdm. mt happened? All non baring pride.
tho fox-emu hogan running out of noon. to this friendly folio- Ibo
mildly kept “king for on oxpltmtion. How cmld they hop giving him
tho um alibi our and our nnd justify thomolvoo? Consequently.

- they vow; to {writ too corrected the oituotion thomolvou

.91.

CHAPTER I

mom's: cm A!!!) 1*?‘3PCW"??? “.‘ATIPT’S:

This thesis on the piece of homo reietions in scientific monge-
moot is selective end suggestive rather then exhaustive end conclusive.
In his research the suthor hes drum upon. his experience sud contacts
to s such greater extent then open “book" sources. The subject of
scientific management possesses sleoet infinite rsrnifioetions. end
therein lies s danger. Because of the ugnitude of the subject. sriters
have either devoted deep sttsntion to one or s few plans, or have
hastily sod superfioielly scraped over the entire subject. For this
resson there is yet to be witten s useful work shioh sdequetely into.
gates s11 phsses of scientific management. l'nis work would of moss-
sity be monumental.

~Uh the “may, 1948 issue of the Harvard Business Review, fiofee-
sor Roothlisberger deolsred thst nothing of signifiosnoe has yet been
‘srittee on the relstioo of humn relstione to soiutii'ic osmgmot.
As the tritor worked over the materiel selected for this thesis. the
mre'oorrvinoed he became of the need rm- such s work. Per-hops such s
Ivor-i: mold in itself integrate s11 Muses of scientific mgooent.
There appears to he s growing conviction on the part or esoh suthority
who has specialised in some particular phsse or technical sspeot of
mmgement that the human relstim pertsining to his field should be
(given significant attention. This genersl recognition of the importsnoe
of homo relations in every monument quarter lesds one to the feeling
that home relations may very sell he s cameo Genomioetor. The trite:-

has certsioly tetmd it to he so in his selection or thesis mterisls.

.92 a

tone of the following topics tee been given special treatment in this
thesis. but they on listed to illustrate that e mime situetien is
implicit in a wide variety of shot ere usually considered non-homo
«poets of augments i
i 1. Budgets es I. force for motels

2. Time eteoux'de and the ill to sort

3. Work: soceptence of new maufeeturiog techniques.

4. hetero of organisetienel cooperation in cost control

5. Relation of writer effort to speoislisetioe of labor

6. Relation of product selee to employee attitudes X

{the industrial revolution which so have been apodmciog for

eeversl centuries has led to specisliestioo or treining for those she
opa‘cte the moctions of s. business enterprise, Defies cents-ell“,
engineers, sccmotants, mrket marchers, ottoman. psychologists.
etc. Itch specialist. immersed in the intricacies of his specialty,
hes cone to rise his contribution as the one factor nest indiepemble
to the success of the enterprise. It hee'eocordiogly become e diffi-
cult task for the manager to direct end ooordioste theee specialists
es so effective tome toserd a common objective. Ueuslly, the manager
himself has sieved into the heterogeocue fraternity of top nageneut
from s specialty, end finds it me to discontinue keeping on unbel-
snced interest in his former sort. It is the witer's vies that e
memger needs s getting knowledge of fl fields pertaining to the
operstion of the enterprise. al-cst to the extent that he is a “jock
or ell trades end teeter of bone“. As long so he knows enough about

I: articular field to intelligently coordimte the performance of

-93.

the ”actor“ of this field dth ”meter.” of other tialdu. unaughi
If he got: along all with tho upwiulictn (either in or out of hi-
comptny) and they Mn confidence in him as I lander, they will com
to his aid than their hwladgu and mm an need-dd
in: organiuticm in 0. delicate m mulch. Policies. process".

proooium. reports. «pigment, and facilities are 321: tho organiutian,
but are M by the orgtniution to «compliant: it. object“... To the
mug» of the organisation the impartunt oonaidmtionn should be
balance and contimm flaw of the oil or healthy human rolntiom to
keep the parts in smooth running order. Then. mm c wall-«knitted chm-ac.
tll contributo thoir individual :nd indium-um. putt: to panic. the
total any, and at the competent, nymgnthotic and undsrntunding direc-
tion of' the lecdar. Can th. lander ting every part in the chums? lot
lint he underlain“ the mhtim Itch mambo:- ‘bonn to thy mole, tanning
intently whoa a We? in not contributing to the total harmony, sud
ho wooed. :1: we to col-not any donation. An :1 corolla-y to thin
it follows that it tho mammal: 11099101)! 1101: or balance or oil, it
augments into c Frankenstoin. destroying itself and oftan its crout-
on n «lbi

A. a manic or “touch commuted our 0. par-lad or time and on I
oountryrido huh by tho emiteu for Mamie Dachau-uh. it um
discovered that the nut proportion of Mine” hiluno uu attribut-
ablo to poor ovenllnmgamnt. rather than print-11y to particular
technical defioicnoioq. The GE?” conclusion In that thia titration
cmld only be m by oontimmu education. The problem in two-

fold: fit». to improve the chill o! thou ulranziy in mmggrinl

.9 4-

positions; oocond, to rye-organ those who aspire to boccm mnagoz‘o in
tho future.

It com to the writer tht the largo companion are in ho process
of handling their on problem in thi. room. without tho nooonsity
of outside) lid. Thrngh their om twining departments And their mm
training, program they are ooing on outstanding job of mmgommt train-
ing, oooooiolly in tangent to troinooa for oxocutivo openings. The
task in mm difficult when it can“ to than moons olmdy occupying
mongerinl positions in largo companion In order to broaden tho capa-
citinu of? existing oxomtivoa it is donimblo to poriodioolly shift than
from 0226 post to another, probably to rumibilitioo of a “bounc-
tinny difroron’o ohm-not”. In n for companies dorinito planned pro-
gram of this typo are in offoctfli'oqgn Consolidated Saloon, H. Y.)$

In the iritor'o opinion. than is opportunity in the typical
lino-ondqtoff not—op of o largo company for the dudopmnt of o pool
of uncouth» with all-round mining, through adoption of a. rotating
"afiminiotmtivo usictant" plan. The nzhniniutrotivo assistant in one
who relieve. a major creative of tho routine and dotnil work of his
job, acting not for himself but in the mm of tho major oxomtivo.
Thus the administrative ”cutout in unanthlly n stuff no.

Waugh uporimco tho writer PM {and that thoro is considerable
similarity in anti. of the ochniniotutiva usiotnnt. no matter duo
his superior my to. Typically ho in concerned with procedural. methods.
organiution, ona personnel mutton. Through poriodio plannod transfer
of on odoiniatntin anti-ant from on. mjor umtivo to another. and

given quolitiu of leadership. he would annually to qualified to

-95.

ocaupy s top aonogomeat position. fortified with so ovorsll visspoi‘ut
of his canyons: on! an appreciation of balance. It is 'dmbtluo s much
molar task to shift staff mo than it is lino warmth“. 01‘ nouns.
thors is no reason why s line mowtivs with possibilities could not
be transferred to s m position for the specific surpass of eventual-
1y mooring him for lax-gar line rasponoibilitiss. ’

It would seem that institutions of'highor learning, can fulfill a
raol nosd in mspting roommibilit; for increasing the skill or .100“-
tires install and Mina-sized mm... Conforonons. seminars. sod
imtitutss conducted by a collars or university primily for the bone-
fit of. this clues of oxocotivos would provide the ooportunity for in-
crouina 5;th skills, exchanging oxporionoeo. and improving; know-
ledge of homo relations.

\Ths Admmod Yenagomont T’rogmm of Renard Businoos School, in
operation since E-‘obmm', 1943. is suggestive of what can be done along
this line. Candidates for tho pragror: are carefully soloctori by tho
top moogornonts or their cmgonios end their tuition {35.6 by tho organi-
zations mploging them. Tho training covors s thirteen-nook full-time
pot-10d and is conducted on the Howard 61391.5 when tho condidatoo
livo toaothor whilo pursuing their studies. Tho; am usually sent to
tho msiooss School just prior to s promotion which will requirs of
than grooter rsspoooibilitg, broader oxomtivs viewpoint. sud greater
skill in human rolntions. The titles of the men who have attended the
program in the mst range all the my from facter superintendent to
president. Candidates are in most oases selectod by the prosidonto of

their companions. sud are fromtontly non rogsrdsd by their Associates

ee iodieponeeble to efficient company operation. $here are e11 ooureee
in the Advanced ’hoegeaoot 'Z’rogrem nod no nominations. The study
orogreo in divided ebout equally among the following enhjeotos nomin-
istretive practices. cost and financiel eomioietretion, production
monegooeut. marketing menogemeot. problene in labor reletione. end busi-
ness end the Amoriooo Eoooomy. In edditiou to gaining loomeeurebly from
their informel contact; with othere nod the exohonge of oxperieacco.

tho etudente gain lhe'ooordiooted bird's qyo vice of top monogancnt ond
e deeper underetending of tho,humon side of froo enterprise. Variatione
of the Rom“! Adnnooa f‘omgomont Program could troll be doMldor'od by
other educational institutions of collogioto grade. oopocielly thoeo
located in or moor infiustrial eroooofi.

In most collagen, undergraduate courses in some way portoioing to
buoinoee administration are olooob elmye apron-1d over e ooooidnmhle
number of deportmonte. and are seldom coordinated. Tyyiool exomoloo
of such oollogiote deportmoote or school: aro on ohology, sociology,
engineering, «003021108. 8.12:} business azhi‘nio‘smtlon 2501!. "hora 3.8
a tondouoy towaro the building of "vented lntorooto” by ambitious
professors, eoo.e consequent duplication of effort. AActoolly, it ie
impossible for tho everoge deportmonfi or oobool of Emeineu admittin-
trotioo to offer'gll the moongemont bruining that no intoreeted shudent
should have. inch of many other departmoote ie in e position to make
valuable contributions totthe etudente’ unified. balanced training.
Segue. it ie the writer's belief that e powerful elleoolloge committee
oheirmeoed by the haoi of buaioeue edginistrotion should operate for

tho burpooe of creatiog ona coordinating monogamont fireining programs

thot out across: domr‘tooutal lino-o, and for tho mrpoao of promoting
and engraving ell omroon outside tho buoinooo administration deporte
moot or school. and that oortoin to “tho field of buslnooa. '1":qu the

aim! mt. cool! avail himself of a much sounder booinooo degree program!

than lf: now omoihle in moot colleges.

.9?-

AT?" r9321:

1.

5.

6.

7.

8o

9a

10.

11.

12.

13.

14.

 

Taylor. Fredrick W... P””itflflifiiffifinfyiflmm mat,
.mrpaz-o, u. n. BIL

éiunc. 3. if». (editor) Scientific ”‘A’nmgamant 31mm Taylor (A C01-
lootion at Authorffififvo $1.6m). fifocmw-mu. $2.2; 1924.

London. J. K... figgmlfigqggvu, John Wiley and 80m. $3.?” 1941.

 

Dickinson. 2. C... £21}£€$_3::. figmamimtim, Ronald, 35.?"
1941. ' -

Peterson, ‘z‘lormce, Survey of Labor moamice, liarp-vrl. 75.15..
1947.- W

'Mam'gggmgg. Issues of Dec. 15. 1945 (a. 49) and Feb. 15,
15$) ('9. 5.273).

marinas 7‘93‘01‘0 Social Cmai‘choo 05'- the lime. of Repraaontativu
to Investigate the: finder nnd other Syntax. of Shop thug.-
mnt Undo:- Authority or :5. Rm. 903 vol. I}: (Reprinted in
Taylor“ Scientific “migrant. Baryon, 3.7., 194'!)

 

"Proms in Rclmtifla 2mgmnt". Airflow :‘hmgmni. Vol.
III. p. 95.

 

i’etsarlan, b1... and Plowman, a. G... 3391:1938 Organizing: an}
Phwlfgomg'fi, R. 0. 1M3. 1116.. Caug0. 19‘8.

Fockmn. R. 2)., gate Train Rupert-1.313, flux-porn, NJ... 1944.

 

An uccllont discussion of thi: grab!“ my be found in Advanced
fimgemout, 3904391343? 1947, artiolo ontltlaa "A "Edi/mm c
Rpm-mafia .‘hmguonto'

 

Toad, Irduy, ThaVAvrt of Lngcgoflhlp. guitar-Bill. 2:3. 2‘” 1935.

 

A aumry study of "van! mployoc canny. and. by the Inter-
national Council of Industrial 2511507.. 1943.

 

”Hut 1‘; Taken to be an wthivo‘, American magnum, April
1949. p. 47. —-

 

 

 

HICHIGRN STRTE UNIV. LIBRARIES

WI}
3

31293014057 96