Copyright
James G. Blaine.

Business management; outlining sound policies, keeping the business in balance, how managers organize detail and meet emergencies online

. (page 1 of 10)
Online LibraryJames G. BlaineBusiness management; outlining sound policies, keeping the business in balance, how managers organize detail and meet emergencies → online text (page 1 of 10)
Font size
QR-code for this ebook


1 1 i I 1 1



:





THE LIBRARY

OF

THE UNIVERSITY
OF CALIFORNIA

LOS ANGELES



BUSINESS
MANAGEMENT



STUDENTS'
BUSINESS BOOK SERIES

Correipondencf

How TO WRITE BUSINESS LITTIHS

SALES CORRESPONDENCE

BUSINESS CORRESPONDENCE

THE SYSTEM BOOK OF STANDARD PABAOBAras
AND FORM LETTERS

BUSINESS CORRESPONDENCE LIBBABT ( Thrtt lolumei )
Adtertiting

How TO WRITE ADVEBTISINO

ADVERTISING

GOOD WILL,, TRADE-MARKS AND UNFAIR TRACING

BANK ADVERTISING METHODS
Finance

CREDIT AND COLLECTION METHODS

How TO FINANCE A BUSINESS

CREDITS, COLLECTIONS AND FINANCE
Buying

PURCHASING PROBLEMS BUYING AND HIRING
Selling

SALESMANSHIP AND SALES MANAOEMBNT

SELLING METHODS

SELLING METHODS RETAILING

SELLING METHODS REAL ESTATE

SELLING METHODS FIRE INSURANCE

SELLING METHODS LIFE INSURANCE
Salesmanship

PERSONAL SALESMANSHIP

DEVELOPING TACT AND PERSUASIVE POWER

THE KNACK OP SELLING
Retailing

STORE MANAGEMENT

KEEPING UP WITH RISING COSTS
Management

PERSONAL EFFICIENCY IN BUSINESS

OFFICE MANAGEMENT

BUSINESS ADMINISTRATION

BUSINESS MANAGEMENT

PERSONALITY IN BUSINESS
Office Work

ACCOUNTING AND OFFICE METHOD*

COSTS AND STATISTICS

THE COST OF PBODUCTIOS
Production

OUTLINES OF FACTORY OPERATION

INDUSTRIAL ORGANIZATION

THE KNACK OF MANAGEMENT

How SCIENTIFIC MANAGEMENT Is APPLIED

MORE POWER FROM COAL
Factory Management (Six volumes in the teriet)

BUILDINGS AND MACHINERY AND

MAINTENANCE EQUIPMENT

MATERIALS AND SUPPLIES LABOR

OPERATION AND COSTS EXECUTIVE CONTROL

A. W. SHAW COMPANY

PUBLISHERS OF SYSTEM AND FACTORY
NEW YORK CHICAGO LONDON



BUSINESS
MANAGEMENT



OUTLINING SOUND POLICIES
KEEPING THE BUSINESS IN BALANCE

HOW MANAGERS

ORGANIZE DETAIL AND MEET

EMERGENCIES




A. W. SHAW COMPANY

CHICAGO NEW YORK

LONDON



WITHDRAWN FROM
COOPER UNION LIBRARY B<71?3



Copyright, 1914, by
A. W. Shaw Company

Copyright, Canada, 1914, by
A. W. Shaw Company



Entered at Stationers' I I;ll, .London
A.:Vf. Shaw 'Qampkny^'Ljtft.' '.



Under the title
'.,', "The Library of Business Practitye"



Bus. Admin.
Library ;

HF



BUSINESS MANAGEMENT



I MAKING GOOD AT THE MANAGER'S
DESK

Editorial by John Wanamaker 7

I THE HARDEST QUESTION IN BUSINESS .... 9

By Carroll D. Murphy

II TAKING YOUR PROBLEMS TO PIECES .... 25
By John H. Flanan,
President, Hanan and Son

III How THE EXECUTIVE KEEPS IN TOUCH ... S3
By Kendall Banning



II MANAGING MEN, MONEY AND
DETAIL

Editorial by Clarence S. Funk 43

IV TRAINING MEN FOR LEADERSHIP 45

By Frederick A. Delano,
Receiver and Former President, The Wabash Railroad

V THE MONET END OF MANAGEMENT .... 51
By George H. Cushing

VI SHORT Cura IN EXECUTIVE WORK .... 59
By George H. Cushing, and Wesley A. Stanger, Man
ager. Royal Typewriter Company, Chicago Branch



III HOW FOURTEEN MANAGERS HANDLED
THEIR BIGGEST PROBLEMS

Editorial bv Edward B. Butler 71

VII Iiow Six PROPRIETORS MADE GOOD .... 73
By Don E. Mowry

VIII How I WENT INTO BUSINESS FOR MYSELF . . 86
By Albert Hoefeld, President, Albert Hoefeld. Incor-
porated; Vincent C. Price, Founder, Price Baking
Powder Company; Joseph E. Haskell, President,
Haskell Brothers; Benjamin F. DeMuth, Formerly
of Delluth and Company

IX THE POLICT IIKHIND NEW YORK'S OLDEST STORB . 99
By Edward Mott Woolley



1260722



CONTENTS



X BUILDING A BUSINESS TO ORDER . . . . . Ill
From an Interview Given by H. Gordon Selfridge,
Managing Director, Selfridge and Company

XI SIXTY YEABS IN THE MARKET PLACE .... 119
By Zalmon G. Simmons,
Founder, Simmons Manufacturing Company

XII MANAGEMENT BLUNDERS TO AVOID .... 135
By Harlow N. Higinbotham,
President, The National Grocer Company
Former Credit Manager, Marshall Field & Company



SPECIAL ILLUSTRATIONS

I HOW TO KEEP TOUR BUSINESS IN BALANCE . . . 11

II REPORTS THAT GUIDE THE EXECUTIVE .... 85

in A MANAGER'S "TIME TABLE" 87

IV KEEPING SALES UP TO THE MARK 38

V FOLLOWING OVERTIME FIGURES 89

VI HOW TO RAISE MONEY 53

vn FOR THE EXECUTIVE'S DESK ...... 63

vm AN OFFICE "MAIL BAG" 67

IX HOW PARK AND TILFORD ORGANIZE THEIR STORES . . 107

x BELFRIDGE'S PLAN OF ORGANIZATION AND CONTROL . 115



COMPLETE INDEX
FOR THE TEN VOLUMES

How TO USE THE LIBRARY 147

FINDING A REFERENCE QUICKLY 148

7 j WHEN YOU WISH TO REFER BY AUTHOE .... 148

SPECIAL POINTS ON LINES OF BUSINESS .... 149

COMPLETE READING AND STUDY INDEX BY SUBJECTS . 149

INDEX 151-198



PART I-MAKING GOOD
AT THE MANAGER'S DESK



My Measure of Success

'T'HE architect and executive who design and
* direct and yet strive to do the bricklaying,
will advance not far and will quickly wear out.

One who has the faculty fo right selection of re-
sponsible subordinates need also that wise sense of
justice and appreciation which accords unstinted
scope of action and generous recognition of results.

The proverbial reluctance to allow those to
enter the water whom we would have swim has
given short measure to many a success.

A good executive finds, develops and leans
upon those who can carry forward for him the
increasing divisions of his single great work.

In all work, as in all knowledge, there is un-
limited room for expansion and advancement.
The business pyramid will find no circumscribing
dome above which it cannot lift its capstone.

Therefore, granted breadth of field and the
leader's personal equation, the degree and height
of business mastery and success will accord
absolutely with the number and efficiency of the
supporting body of workers.

And the executive will have the deserved
praise and reward of one whose admirable work
has been to lead, to develop, to render produc-
tive; to add to the commonwealth of brain and
things and character.





JOHN WANAMAKER

,. "**. t&rtsident, The Wanamaker Stores



THE HARDEST QUESTION
IN BUSINESS

By Carroll D. Murphy

fll HAT'S the hardest question in business," exclaimed
JL one of the half-dozen managers of distinguished
enterprises recently asked to list the vital factors of con-
trol in an organization to take apart the enterprises they
have brought to success, and point out the ideas, policies,
methods and results which seem to them so important
that the chief himself should have them under his eye
and hand.

Varied as were their replies personal, keen, widely dif-
ferent in approach to the problem yet throughout runs
this central thread of management : that detail must be
organized and everyday results made automatic; that
the executive must keep proper perspective ; that a man-
ager 's work is not to shoulder many little tasks, but to
develop men and systems for present routine, and thus
reserve his energies for the greater plans, decisions and
initiatives on which the future is to be built.

"The measure of a manager's value," said Clarence
Funk, ''is his ability to put men in charge of his vari-
ous departments who are stronger men in their lines than
is he." "I expect to put in half of each day at the of-
fice after I am dead," Cyrus K. Curtis once said, humor-
ously hinting at the organization of men and detail by
which he gets things done present or absent. ' ' The im-



10 AT THE MANAGER'S DESK

portant thing," another skilful manager often says,
in explaining his ability to extend his oversight through-
out a great business, "is to distinguish significant from
trivial detail." "I won't let detail get to me on any
terms," replied J. S. Kendall in explaining how he
sifted the important from the negligible. "The imme-
diate loss from a small blunder is insignificant and I pay
certain employees to analyze the day's work of the con-
cern so that I can stop cumulative losses. ' '

William A. Field's answer makes the same point, but
in the nature of a warning to employees who aspire to
managerial places. "Young men," said he, "try to
handle too much detail and are crushed beneath their
load. ' ' From his own experience, Edward B. Butler car-
ried further the same hint to manager and men : " It is
hard to get a man to let go of detail to grow up into
control to think for his subordinates who do not think. ' '

In his management John G. Shedd would subordinate
personal initiative to nothing else. "Energetic origina-
tors in merchandising," said he, "may be stifled by sur-
rounding them too thickly with figures and regulations.
. . . . Going beyond a reasonable limit with statis-
tics may kill the Napoleons of business." The strength
which this composite initiative the enthusiasms and en-
ergies of manager and men working together gives to a
business was neatly brought out by W. E. Clow: "I
hire men to make me hump,"

MONEY, men and service are the tools of the executive
varying degrees in which they are brought into
play in the five different types of management.

The great essentials of a good manager are brilliantly
summarized by two other men in control of great enter-
prises. "I want executives," E. A. Filene often says,



MANAGEMENT ESSENTIALS



11



"who can think straight, handle men and buy money
well." "Successful men," E. P. Ripley has said, "have
always known how to organize, supervise and deputize."
The battle with detail and the problem of shaping men
to your work freedom from routine and sure contact





KEEPING YOUR BUSINESS IN BALANCE





























M,


[ IT


PRICC IT


THIM


TH






















1






















1



























FIGURE I: TJie executive who keeps his organization 'properly balanced
takes into consideration men, money and service, and exercises the four func-
tions of fanning tasks, assigning duties, watching results and correcting

mistakes

with essentials getting today's business done and plan-
ning a secure, progressive future are suggested by all
these executives as the essential aims and the true view-
point of the manager. Closer study of the lines along
which the ambitious employee, the personal proprietor
and the corporation executive must work shows that
the three great business mechanisms which the manager
must control are men, money and service. According
as different concerns emphasize one or another of these
factors in their schemes of management, policies of
executive control may be roughly divided under five
headings :

(1) Detail Management. Most managers are driving
themselves to their physical limit in the handling of th*



12 AT THE MANAGER'S DESK

details of service, employment and especially finances.
Some executives have been literally crowded out of this
position by the growth of the business and have taken
a stand at some point along the current of trade, where
by watching every order, every credit, every contract or
expense item, they can fairly judge and control the
business.

(2) Money Management. Many proprietors and di-
rectorates guide their businesses entirely by ledger state-
ments and throw upon subordinates hired to round out
their ability all other matters relating to the conduct of
the enterprise. In one case a directorate which is man-
aging a business entirely as a matter of investments and
profits has never seen the chain of stores from which its
dividends come. A detail manager pledged to enthu-
siasm by a generous salary has authority over everything
except financial policies. The disadvantages of this plan
are that there is no proprietary control of the methods
used in dealing with the trade, nor of the spirit among
the men; the business runs at high speed but roughly,
with much jarring; and the management has too little
real knowledge of conditions to forecast the future most
effectively.

(3) Leadership Management. Encouragement and
the rousing of enthusiasm among employees is the con-
tribution this type of manager makes to his business.
His is an enterprise that requires extraordinary initia-
tive ; his men have to be keyed up to the fighting spirit
they need the "flaming torch" to lead them. Systema-
tized routine is, therefore, left to handle problems where
a solution has been found and a precedent established.
The management devotes itself to "breaking trail" in
every new and difficult path of the enterprise.

(4) Guiding Management. Some managers and di-



MANAGEMENT ESSENTIALS 13

rectorates put their entire organization as a tool in the
hands of their most brilliant executives, advising and
aiding them to carry out for the profit of the concern
whatever inspirations promise best or to exercise the
particular genius of each. This is the type of business
where the manager occupies a broad field and insists
only on dividends rather than confining his business to
a definite product or service. This policy is especially
the recourse of a concern which has outgrown one line
the big business viewpoint, where the manager has per-
haps realized his visions and depends on the inspirations
of his men for further expansion.

(5) Balanced Management. Rockefeller's success is
credited to the poise which he has always maintained in
his corporation. In a business so balanced, neither men,
money nor service has undue emphasis; no one depart-
ment or method is allowed to excel or overtop others, but
every part constantly learns from other lines ; constantly
is kept up to the mark and in proportion with all others.
This type of management combines the last two and
rounds out the incompleteness of all ; the manager is not
only a constant inspiration to all departments, but makes
full use of whatever inspiration he can draw from his
subordinates. He realizes the necessity of neglecting
no present essential neither men, investment nor serv-
ice and has so organized his method of securing re-
ports, making brief studies in his various departments
and arousing a partnership spirit among his men that
he is free to dream ahead and plan a greater future for
4he enterprise.

Most men fall short of managerial success because
they are one-sided. All of us have seen the proprietor
who allows himself to be flattered on his weak points,
equips himself with subordinates who duplicate rather



14 AT THE MANAGER'S DESK

than round out his abilities, and dodges haphazard
through each day's detail with no distinct scheme of
management.

The problem of breaking away from this condition has
been solved in a suggestive way by the manager of a real
estate business that last year sold more than four mil-
lion dollars' worth of property. This executive recently
sat with a wholesaler in the latter 's private office. Ten
times within a half hour their talk was disturbed by
salesmen coming in for O. K's on routine credits.

"You cleared a quarter of a million this last twelve
months, didn't you?" the real estate man asked his
friend. "Why not take six, eight, ten thousand dollars
and hire an assistant who can sweep this detail off your
desk and let you get at the bigger questions of your busi-
ness?

"What subordinates will handle your task what in-
surance have you made for the care of your family's
property when you can no longer do this pell mell day 's
work? One-third of your time, if you will figure up
your own labor costs day by day, is spent as nothing
but a routine credit manager."

"But I can't find the men," protested the wholesaler.

' ' You don 't know your men, ' ' was the answer. ' ' One
of them I think so well of that I have been figuring with
him on a similar position in my company."

A week later the wholesaler spent a half hour in the
office of the real estate chief. The latter closed the
door, sat down at his desk, reached under the edge of
it and touched a buzzer once. "That means," said he,
"that I am busy and do not wish to be interrupted. I
pay my secretary one hundred and twenty-five dollars
to know that now she is to take the numbers of any tele-
phone calls for me, to round up any matters I need to



MANAGEMENT ESSENTIALS 15

go over yet this evening and to get to me if something of
prime importance turns up.

"Five years ago," he went on, "I was at this desk
until eleven o'clock every night, going over contracts
and ledgers. My business dropped off because my sell-
ing force had no head. Then I stopped took the time to
analyze my business and find what went into my job as
manager. ' '

This actual occurrence throws into sharp contrast
what I have called detail and balanced management.
Hundreds of such illustrations are at hand even among
million dollar concerns. Routine-burdened proprietors
insist upon O. K'ing every item which touches expenses
or a contract ; and thus take away the initiative of their
men, interfere without full knowledge in departmental
work and neglect to grasp the loose reins of company
spirit, present service and future progress which lead up
to their desks.

One executive has arranged that no contractural let-
ter is valid without his pencil mark in the corner. An-
other has a hobby of picking up ideas among other
plants, which he so forces upon his department heads that
they "make believe" to use them even when valueless.
A third executive who is strong as a salesman is con-
stantly interfering on the artistic side in the making of
his product, although his judgment on art is a joke.

DETAIL knowledge of a business is essential for the
manager, but too much attention to routine irill
make him inefficient methods of money management.

Study of the work of high executives indicates that
they need a background of detail experience and that
in emergencies they may have to handle the work of
a department, but that they study themselves as frankly



16 AT THE MANAGER'S DESK

as their employees and use their resources to hire men
who shall round out their own abilities. Skilled lawyers
are constantly at the service of department heads in
order to guard contracts; and technical men in a dozen
different lines are kept available by various managers
who recognize, as Funk has said, that their greatest value
is in securing and coordinating expert service.

Money management is an extreme of this type. There
is in New York a body of men whose ability to manage
money is drawing dividends from a score of middle
western stores into which none of them has ever stepped.
Of buying, of working with men, of planning for
expansion and choosing "good towns" for additional
branches, they know nothing. This ability they have
bought in the persons of a trusty auditor and an ex-
perienced superintendent. They have limited the busi-
ness to a cash basis, held down administrative problems
to a minimum and are enabled to control successfully
merely by holding the strings of local and total
reports, capital and surplus, purchases, sales and ex-
pense, profits and dividends. By comparative and
graphic financial reports, they are shaping the future
of a business in which capital is the big factor. Their
method has been to reduce men and service to their low-
est terms and shrewdly to pick out the essentials in the
control of funds.

INSPIRING men to their best efforts is the method of
A one type of executive guiding them in the field which
he knows best is the method of another.

An entirely different spirit is behind the policy of
the manager who heads and inspires his men. He may
have the other factors, finance, service, future plans,
well in hand, but his biggest duty, as he sees it, is to lead



MANAGEMENT ESSENTIALS 17

his men to teach them that he asks them to go nowhere
except where he will go first. He has worked out a
course which his enterprise is to take, and in order to
keep close to it, he goes first. Usually such a leader
comes up from the selling side a Chalmers, a Cotting-
ham. He suits the enterprise where production is auto-
matic or routine ; where financing has been solved ; where
the packages that stream out to the shipping platform
crowd the salesmen in their efforts. When, however,
a mere field leader happens in control of an intricate
producing machine, his instinct for fast work, attractive
selling points, and competition among men may lead to
an emphasis on appearance rather than quality and on
the impossible promises of delivery which mark the busi-
ness that is out of balance.

The manager who guides instead of leading and fur-
nishing inspiration for his enterprise is making the best
of a temperament judicial rather than executive. He
hires department heads who are full of ideas but perhaps
lack the ability to separate the good from the bad busi-
ness propositions. His men furnish many ideas and in-
spirations; he guides their ambitions, challenges the vis-
ionary enterprise and backs his workers in carrying out
their plans.

At his best, he attracts to himself partners or subordi-
nates who so round out one another's powers as to make
for extraordinary efficiency.

The directorate of a great railroad is said invariably
to follow this method in filling the president's chair.
Periodically the effectiveness of the system in all depart-
ments is discussed. The most recent executive has come
up through the engineering or operating or selling de-
partment and in line with his natural bias, has brought
that function to extraordinary efficiency. Striking a



18 AT THE MANAGER'S DESK

level throughout the corporation, another department
far from his experience shows at low ebb. If an execu-
tive can be found with the qualities of a manager and
with experience in this weak department, he is elected
to the presidency, and the business is thus made con-
tinually to race with itself.

In a similar way, it is possible for you as a pro-
prietor, as an executive expectant of advancement or as
a member of a governing board, to test your perspective
upon the men, the capital and the service under your
control so that no possibility will be neglected.

A manager who, at twenty-nine, controls a half million
dollar business of his own, hit upon the plan of telling
the department head who broaches a suggestion: "You
know I can't remember any of that. Better put it down
on paper."

This is more than a way to minimize his detail work
it is a definite scheme of management in its first essen-
tial to develop managerial ability among subordinates.
Suggestions now come to him on paper, carefully worked
out, with a plat of the location involved, and with the
cost, upkeep, income, addresses and all details in order.

Every executive knows how difficult it is to get men
to put cases before him briefly and yet so completely that
he can make a clean-cut decision so that he can manage
rather than investigate and administer. This executive
has learned to insist upon a statement that not only
lengthens his own reach, but trains employees to recog-
nize essentials and to push secondary control to the lim-
its of their authority.

Further, he sends his department heads anywhere from
Los Angeles to Boston upon hearing of any concern
which is doing something better than his office has
learned to do it. Every business has done some one



MANAGEMENT ESSENTIALS 19

thing better than most others. This manager has learned
to go prospecting by proxy and so get the gold of
progress in many lines. His own ability is lifted upon
the platform of all that his men learn, suggest and
achieve.

MEN can be checked on and developed by giving them
responsibilities money may be controlled by reports
that summarize facts briefly and accurately.

Seven out of the ten well known managers quoted have
suggested the importance of developing initiative, men-
tal power, enthusiasm and team spirit in the force. This
is characteristic of the manager who realizes that neither
detail nor policy can be realized except through subordi-
nates. Scarcity of men the time-worn excuse of over-
worked managers often goes back to the chief's ne-
glect of the men in his employ.

Detail gets power over business executives because
(1) they can not separate the significant from the non-
essential, or (2) they can not so organize as to get other
than eye service.

"One of the hardest things for an executive to learn,"
a sage business man has said, ' ' is that while his men are
developing, he may expect nothing to be done exactly
as he would do it. He must permit mistakes to 'go
through' if his men are to see where they have blun-
dered."

Another efficient manager has a creed something like
this: "An office manager, a private secretary and an
experienced lawyer checking over and summarizing the
work of this concern prevent the making of any mistake
so important as to endanger our business. For lesser
mistakes I throw the responsibility on my men and, by
my various reports, afterwards get at the blunders which



20 AT THE MANAGER'S DESK

indicate dangerous tendencies and require that I train


1 3 4 5 6 7 8 9 10

Online LibraryJames G. BlaineBusiness management; outlining sound policies, keeping the business in balance, how managers organize detail and meet emergencies → online text (page 1 of 10)