Cyclopedia of Commerce, Accountancy, Business Administration, v. 01 (of 10)American School of Correspondence
General
Cyclopedia of Commerce, Accountancy, Business Administration, v. 01 (of 10)
American School of Correspondence
Accounting; Business; Commerce
In certain respects a great industrial organization may be likened
to the army. At the head of the army is the commanding general, on
whom rests the responsibility for the success of any campaign. He
is surrounded by his staff, with whom he consults on questions of
importance. When any important move is decided upon, the members of the
staff--themselves in command of divisions of the army--issue orders to
their subordinate officers. They, in turn, pass the orders along, and
at a predetermined moment, an entire army is set in motion.
Another important feature of the army organization which should
be applied to the organization of a business is the disregard of
the individual. Military authorities long since discovered that a
high standard of efficiency could be maintained only through the
organization of the army along certain lines. The question was not
one of creating offices the duties of which would conform to the
capabilities of certain men; the offices were first created, and then
competent men were selected to fill them.
=4. Individuals Disregarded.= In creating responsibilities in a
business organization, the individual should be disregarded, just as
he is in the army. Unfortunately, the importance of this question
is not always recognized. Too frequently the best interests of the
organization as a whole are subserved to the interests of individuals.
Business enterprises are organized and offices divided among the
principal owners without seriously considering their respective
abilities. This is wrong in principle, and works to the detriment of
the business. It is one of the important problems to be solved in
organization. Jones, who is a natural born financier, prefers to manage
the selling end of the business, while Brown, a salesman of ability, is
made treasurer. Neither is in the right place; change them about, and
an efficient team would result.
Before we can perfect an organization, we must know what the business
is. We must ascertain for what it is organized; what class of business
is carried on; manufacturing, mining, jobbing, wholesale, retail, or
a combination of two or more classes; whether conducted entirely in
one plant or through branches; the method of marketing the goods; by
traveling salesmen, agencies, or mail; the facilities for obtaining
supplies, raw materials, or manufactured goods. When we understand the
nature of the business, we are in a position to work out an impersonal,
systematic organization.
Referring again to the necessity of a disregard of individuals in
perfecting an organization, it is not the province of the business
engineer to determine the qualifications of the men. He must be
governed solely by the requirements of the business. When his work is
completed, it is for the management to decide who is best fitted to
assume the duties and carry out the purposes of the departments and
positions created.
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