Increasing Efficiency In Business - Walter Dill Scott (ebook reader browser .txt) 📗
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a temporary reaction, but there is likely to be
a permanent advance both in individual efficiency
and organization spirit.
On the employer’s side, this feeling is expressed
in the surrender of profits to provide
work in dull seasons; in the retention of
aged mechanics, laborers, or clerks on the
payroll after their usefulness has passed;
in pensions; in a score of neighborly and
friendly offices to those who are sick, injured,
or in trouble. A reputation for “taking care
of his men” has frequently been a bulwark of
defense to the small manufacturer or trader
assailed by a greedy larger rival.
Personality is, beyond doubt, the primitive
wellspring of loyalty. Most men are capable
of devotion to a worthy leader; few are
ever zealots for the sake of a cause, a principle,
a party, or a firm. All these are too abstract
to win the affection of the average man. It is
only when they become embodied in an individual,
a concrete personality which stirs our
human interest, that they become moving
<p 85>
powers. The soldiers of the Revolution fought
for Washington rather than for freedom;
Christians are loyal to Christ rather than to
his teachings; the voter cheers his candidate
and not his party; the employee is loyal to the
head of the house or his immediate foreman
and not to the generality known as the House.
Loyalty to the individuals constituting the
firm may ultimately develop into house loyalty.
To attempt to create the latter sentiment,
however, except by first creating it for
the men higher up is to go contrary to human
nature—always an unwise expenditure of
energy.
_Human Sympathy as a Factor in developing
Loyalty in Men_
In developing loyalty, human sympathy is
the greatest factor. If an executive of a
company is confident that his directors approve
his policies, appreciate his obstacles,
and are ready to back him up in any crisis,
his energy and enthusiasm for the common
object never flag. If department heads and
<p 86>
foremen are assured that the manager is
watching their efforts with attention and regard,
approving, supporting, and sparing them
wherever possible, they will anticipate orders,
assume extra burdens, and fling themselves
and their forces into any breach which may
threaten their chief’s program.
If a workman, clerk, or salesman knows that
his immediate chief is interested in him personally,
that he understands what service is
being rendered and is anxious to forward his
welfare as well as that of the house, there is
no effort, inconvenience, or discomfort which
he will not undertake to complete a task which
the boss has undertaken. Throughout the
entire organization, the sympathy and co<o:>peration
of the men above with the men below
is essential for securing the highest degree of
loyalty. No assumed or manufactured sympathy,
however, will take the place of the genuine
article.
<p 87>
_Personal Relationship with Workers as Basis
for creating Loyalty_
The effectiveness of human sympathy in
creating loyalty is most apparent in one-man
businesses where the head of the house is in
personal contact with all or many of his employees.
This personal touch, however, is
not necessarily limited to the small organization.
Many men have employed thousands
and secured it. Others have succeeded in impressing
their personalities, and demonstrating
their sympathy upon large forces, though
their actual relations were with a few. The
impression made upon these and the loyalty
created in them were sufficient to permeate and
influence the entire body. Potter Palmer, the
elder Armour, Marshall Field, and Andrew Carnegie
were among the hundreds of captains
who made acquaintance with the men in the
ranks the cornerstone on which they raised
their trade or industrial citadels.
When the size of the organization precludes
personal contact, or when conditions remove
<p 88>
the executive to a distance, the task of maintaining
touch is frequently and successfully
intrusted to a lieutenant in sympathy with
the chief’s ideals and purposes. He may
be the head of a department variously styled,
—adjustments, promotion and discharge,
employment, labor,—but his express function
is to restore to an organization the simple
but powerful human relation without which
higher efficiency cannot be maintained. In
factories and stores employing many women
this understudy to the manager is usually a
woman, who is given plenary authority in the
handling of her charges, in reviewing disputes
with foremen, and in finding the right position
for the misplaced worker. Whether man
or woman, this representative of the manager
hears all grievances, reviews all discharges,
reductions, and the like, and makes sure that
the employee receives a little more than absolute
justice.
Many successful merchants and manufacturers,
however, disdain agents and intermediaries
in this relation and are always ac-
<p 89>
cessible to every man in their organizations;
holding that, since the co<o:>peration of employees
is the most important single element in
business, the time given to securing it is time
well spent.
Even though human sympathy may well
be regarded as the most important consideration
in increasing loyalty, it is not sufficient
in and of itself. The most patriotic citizens
are those who have, served the state. They
are made loyal by the very act of service.
They have assumed the responsibility of promoting
the welfare of the state, and their
patriotism is thereby stimulated and given
concrete outlet. A paternalistic government
in which the citizens had every right but no
responsibility would develop beggars rather
than patriots.
Similarly in a business house ideally organized
to create loyalty, each employee not
only feels that his rights are protected, but
also feels a degree of responsibility for the
success and for the good name of the house.
He feels that his task or process is an essen-
<p 90>
tial part of the firm’s activity; and hence is
important and worthy of his best efforts. To
cement this bond and make closer the identification
of the employee with the house many
firms encourage their employees to purchase
stock in the company. Others have worked
out profit-sharing plans by which their men
share in the dividends of the good years and
are given a powerful incentive to promote
teamwork and the practice of the economies
from which the overplus of profit is produced.
_Loyalty may be developed by Education in House
History and Policies_
The stability of a nation depends on the
patriotism of its citizens. Among methods
for developing this patriotism, *education ranks
as the most effective. In the public schools
history is taught for the purpose of awakening
the love and loyalty of the rising generations.
The founders, builders, and saviors of the country,
the great men of peace and war who have
contributed to its advancement, are held up
for admiration. From the recital of what
<p 91>
country and patriotism meant to Washington,
Jefferson, Lincoln, Grant, and a host of lesser
heroes, the pupils come to realize what country
should, and does, mean to them. They
become patriotic citizens.
_Grounding the New Employee in Company
Traditions and Ideals_
In like manner the history of any house can
be used to inspire loyalty and enthusiasm
among its employees. Business has not been
slow to borrow the methods and ideals of
education, but the writer has been unable to
discover any company which makes adequate
use of this principle. That this loyalty may
be directed to the house as a whole, and not
merely to immediate superiors, every employee
should be acquainted with the purposes and
policies of the company and should understand
that the sympathy which he discovers in
his foreman is a common characteristic of the
whole organization, clear up to the president.
The best way to teach this is by example—
by incidents drawn from the past, or by a
<p 92>
review of the development of the company’s
policy.
To identify one’s self with a winning cause,
party, or leader, also, is infinitely easier than
to be loyal to a loser. For this reason the
study of the history of the firm may well include
its trade triumphs, past and present;
the remarkable or interesting uses to which its
products have been put; the honor or prestige
which its executives or members of the
organization have attained; and the hundred
other items of human interest which can be
marshaled to give it house personality. All
this would arouse admiration and appreciation
in employees, would stir enthusiasm and
a desire to contribute to future achievements,
and would foster an unwillingness to leave the
organization.
Some companies have begun in this direction.
New employees, by way of introduction,
listen to lectures, either with or without
the accompaniment of pictures, which review
what the house has accomplished, define its
standing in the trade, analyze its products and
<p 93>
their qualities or functions, sketch the plan and
purpose of its organization, and touch upon the
other points of chief human interest. Other
companies put this information in booklets.
Still others employ their house organs to recall
and do honor to the interesting traditions of
the company as well as to exploit the successful
deeds and men of the moment. An organized
and continuous campaign of education
along this line should prove an inexpensive
means of increasing loyalty and efficiency
among the men. To the mind of the writer, it
seems clear that the future will see pronounced
advances in this particular.
Personality can be overdone, however.
Workers instinctively give allegiance to strong,
balanced men, but resent and combat egotism
unchecked by regard for others’ rights.
Exploitation of the employer’s or foreman’s
personality will do more harm than good unless
attended by consideration for the personality
of the employee. The service of more than
one important company has been made intolerable
for men of spirit and creative ability
<p 94>
by the arrogant and dominating spirit of the
management. The men who continue to
sacrifice their individuality to the whim or the
arbitrary rule of their superiors, in time lose
their ambition and initiative; and the organization
declines to a level of routine, mechanical
efficiency only one remove from dry—
rot.
_How Efficiency and Loyalty of Workers may be
Capitalized_
Conservation and development of individuality
in workers may be made an important
factor in creating loyalty as well as in directly
increasing efficiency. Great retail stores put
many department heads into business for
themselves, giving them space, light, buying
facilities, clerks, and purchasing and advertising
credit as a basis of their merchandising;
then requiring a certain percentage of profit
on the amount allowed them. The more successful
of Marshall Field’s lieutenants were
taken into partnership and, as in the case of
Andrew Carnegie and his “cabinet of young
<p 95>
geniuses,” were given substantial shares of the
wealth they helped to create.
Some industries and stores carry this practice
to the point of making specialized departments
entirely independent of the general
buying, production, and selling organizations
whenever these fall short of the service offered
outside; while the principle of stock distribution
or other forms of profit sharing has
been adopted by so many companies that it
has come to be a recognized method of promoting
loyalty.
Regard for the employee’s personality must
be carried down in an unbroken chain through
all the ranks. It may be broken at any step
in the descent by an executive or foreman
who has not himself learned the lesson that
loyalty to the house includes loyalty to the
men under him.
It is not uncommon, in some American
houses, to find three generations of workers
—grandfather, father, and apprentice son—
rendering faithful and friendly service; or to
discover a score of bosses and men who have
<p 96>
spent thirty or forty years—their entire
productive lives—in the one organization.
Where such a bond exists between employer
and employees, it becomes an active, unfailing
force in the development of
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