This principle has received widest recognition
and achieved greatest success in the
sales department. Here individuals are on
a footing of approximate equality or may be
given equality by a system of handicaps based
on conditions in their territories. Success
has also attended the pitting of selling districts
against each other. These larger competing
units work against bogies of the same
character as do the individual ones. The whole
house may be keyed up to surpass previous
records or to attain some fixed standard.
To ascertain to what extent the principle
of competition was consciously employed by
business firms and what methods were used
to apply it in increasing the efficiency of the
men, a number of successful business firms
were asked the following questions:--
_How do you utilize competition in increasing
efficiency among your employees?_
(1) Do you regard it as unwise to stimulate
competition in any form?
<p 59>
(2) Do you encourage men to excel their
own records of previous years?
(3) Do you encourage competition between
men in the same department?
(4) Do you encourage competition between
your own departments?
(5) Do you encourage competition with
departments of competing establishments?
(6) In competition do you make it fair
by ``handicapping'' your men?
_What reward does the winner receive, e.g_.:--
(1) Monetary reward?
(2) Promotion?
(3) Public commendation?
_In answers by equally successful managers
great diversity of opinion prevailed. Some
men were afraid of all forms of competition_.
They believed that co<o:>peration was essential
to success and that any form of competition
among the men tended to lessen such
co<o:>peration. Most of the men interviewed
believed that competition when wisely handled
is very effective in stimulating the men.
Of course, most firms try in some way to
<p 60>
encourage their men to excel their record of
previous years. The inquiry developed, however,
that a few are unwilling to employ competition
even in this mild form as a means to
increased efficiency. Most of the firms made
conscious use of this principle and were convinced
of its potency.
Competition between men in the same
department was approved by a majority of the
firms, and its adaptability to the selling
department was especially emphasized. But
some of the best houses will permit no such
competition. The diversity in opinion was
very pronounced in answering this question.
As to encouraging competition between departments
in the same firm, no general answer
is satisfactory. Organizations differ widely.
In many houses such competition is not practicable;
in others it certainly is not to be encouraged.
In many organizations which would
admit of such competition the experiment had
not been tried. In others it has become a
regular practice and is looked upon with favor.
Public-domain text, read in full here on John Shaqi.
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