Cornell University Library HF5549.N25 The organic development of business; repo 3 1924 002 273 591 Nationzil Association of Corporation Schools. The organic developaent of "business. THE LIBRARY OF THE NEW YORK STATE SCHOOL OF INDUSTRIAL AND LABOR RELATIONS AT CORNELL UNIVERSITY ADVANCE COPY OF THE REPORT OF COMMITTEE ON VOCATIONAL GUIDANCE (The Organic Development of Business), ^nt of business;. ^ Q THE NATIONAL ASSOaAggON OF CORPORATION ^QfelQ^JgS'^^'' ^^^'-woT^B^^r ' - ^- FOURTH ANNUAL ebNVENTlON PITTSBURGH, PENNSYLVANIA MAY 30ih, 3Ut, JUNE 1st, 2nd, 1916 NOT RELEASED FOR PUBLICATION UNTIL JUNE, 1, 1916 COPYRIGHT, 1916. BY HENRY C. METCALF COPYRIGHT, 1916, BY THE NATIONAL ASSOCIATION OF CORPORATION SCHOOLS COMMITTEE ON VOCATIONAL GUIDANCE Dr. henry CLAYTON METCALF. Chairman TUFTS COLLEGE Tufis College, Massachusetts Mr. albert C. VINAL american telephone and telegraph COMPANY 15 Dey Street, New York City Mr. CHARLES R. STURDEVANT AMERICAN STEEL AND WIRE COMPANY Worcester, Massachusetts ANDREW H. KELLOGQ C3. NEW YORK PREFACE This report is an attempt to set forth what employe, em- ployer, and society should strive for in the human relations in industry — the realization of an organic unity in each individual life, in each business, between businesses, and between business and society. As stated in the report of the Committee of 1915, vocational guidance in industry is the organic conception of the individual in industry, and is possible only through organic progress in industry ; hence the sub-title of the report, "The Organic De- velopment of Business." The recent past has witnessed many hoteworthy accom- plishments in the human interpretation of industry. It would require a large volume merely to catalogue the most typical in- stances of this progress. Without the generous cooperation of many friends, and particularly of members of The National Association of Corporation Schools, who through correspond- ence, conference, and the valued privilege of first-hand investi- gation made certain industrial facts accessible, the report would have been impossible. I can here express only in general terms my deep obliga- tions to all, especially to overburdened business executives, who have so cordially contributed in material, time, and construc- tive suggestion. In addition to the direct support of Messrs. Vinal and Sturdevant of the Committee, my greatest aid has come from my research assistants. Miss H. Dora Stecker and Mrs. Margaret H. Abels, whose skilled services in collecting and in digesting raw material have been invaluable. On their loyal cooperation and counsel I have depended throughout the report. Henry Clayton Metcalf, Chairman. Tufts College, Mass., May S, 1916. 4 CONTENTS PART ONE PAGES I. Scope of Report 8-9 1. Ideals. 2. Machinery for Putting Ideals Into Practice. II. The Organic Unity of the Individual 9-12 1. Bodily Integrity. 2. Adequate Compensation. 3. Instruction and Training. 4. Recreational Opportunities. 5. Esthetic Enjoyment. 6. Opportunity for a Square Deal. III. Concrete Illustration of the Organic Progress of the Employe, IN Industry 12-19 1. Fair Knowledge of the Firm. 2. Fair Trial at Selection. 3. Adequate Instruction for Job. 4. Health Protection. 5. Advantages for Learning About Business. 6. Adequate Annual Compensation. 7. Reasonable Hours. 8. Machinery for Adjusting Difficulties. 9. Recognition for Good Work. 10. Practice in Cooperation. IV. Some General Considerations Based on Personal In- vestigations 19-25 1. Evidence of Aid Desired by Business Leaders. 2. Interest in the Organic Ideal. 3. Cooperative Control of Working Forces. 4. Machinery for the Exchange of Experiences. 5. Changed Attitude of Engineers. 6. Lessons for the Association Resulting from the War. 7. Summary of General Considerations. V. What a Large Corporation Has Done to Diagnose Its Human Relations 25-31 1. Importance of Self-Analysis. 2. The Need of Expert Assistance. 3. Getting in Touch with Others. 4. Suggestions and Criticisms Coming from the Men. 5. Progress of Work and Results. VI. Summary 31 PART TWO SUGGESTED MACHINERY PAGES I. Central Employment and Service Bureau 32-44 1. Functions of Employment Bureau. 2. Advantages and Results of Centralized Employment Bureau. 3. Personnel and Supervision of Employment Bureau. II. Job Analysis 44-47 1. Selection and Adjustment of Men to Jobs. 2. Results of Job Analysis. III. Health 47-54 1. Need for Health Supervision. 2. A Health Program. 3. Physical Examination of Employes. 4. Job Analysis as an Aid to Medical Supervision. 5. Transfer to Other Work. 6. Cooperation with Employes in Health Matters. IV. Education : Training in the Organic Unity of Business SS-72 1. Introductory. 2. Instruction and Training of Executives. 3. Instruction and Training for the Rank and File. V. Promotions and Transfers 72-75 1. Promotions. 2. Transfers. VI. Grievances 76-88 1. Purpose of Grievance Machinery. 2. Wide Interest in Grievance Machinery. 3. Causes of Grievances. 4. Tardy Admission of the Need of Machinery for Ad- justment. 5. Forms of Grievance Machinery. VII. Management Sharing 89-93 1. Partnerships in Management. 2. Employes' Direction of Welfare. 3. Cooperation in Health and Safety. 4. Other Forms of Cooperation. PART THREE APPENDICES Selection. PAGES I. New Bureau of Salesmanship Research 94-96 II. Selection of Employes by Means of Quantitative De- terminations, BY Professor Walter Dill Scott 97-111 Employment Department. III. Work of the Employment Department of the Dennison Manufacturing Company, by P. J. Reilly 112-119 Home Conditions. IV. Relation of Home Conditions to Industrial Efficiency, by M. E. Gilson (Joseph & Feiss Company) 120-132 Training Courses. V. Training Course of the American Steel and Wire Com- pany IN Methods of Production, by C. R. Sturde- vant 133-134 VI. Training Technical Graduates at the Westinghouse Electric and Manufacturing Company, by C. R. Dooley 135-136 VII. Outline of Course, "The Employment Function in Man- agement," Amos Tuck School of Administration and Finance 137-138 VIII. Outline of Course, "The Human Interpretation of In- dustry," given by Professor H. C. Metcalf 139 IX. Suggested Training Course for Shipyard Foremen and Others, by Professor H. C. Metcalf 140-142 Adjustment Machinery. PACES X. Constitution and By-Laws of the WELFAitE Association OF THE United States Cartridge Company 143-147 XI. Progress of the Federal Plan of Management Sharing of the Printz-Biederman Company 148 REPORT OF COMMITTEE ON VOCATIONAL GUIDANCE THE ORGANIC DEVELOPMENT OF BUSINESS * PART ONE 1. SCOPE OF REPORT The report embodies certain ideals and suggests machinery for putting these ideals into practice in individual establishments. 1. Ideals The leading ideals of the report may be stated as follows : a. What the employe ought to strive for in his work re- lations. — Every employe ought to strive for the realization of the organic conception of the individual in industry. This ideal realized in practice will protect the fundamental life interests of each worker — bodily integrity, adequate compensation, steady employment, instruction and training, recreational opportunities, justice, recognition, promotion, advancement, representation, and freedom in ocupational choice. b. What the employer ought to strive for in the work re- lations. — Briefly, what every employer wants is a healthy, com- petent, contented, loyal body of employes, i.e., the organic con- ception of the individual in industry made a vital business asset. The . most valuable asset any business can have is the genuine interest of all its employes in the problem of the improvement of their own labor ; the working out of efficient, just, harmonious relations is the most vital practical problem confronting busi- ness to-day. To establish, maintain and make workable these ideals is the foundation upon which the Association is laid. These ideals will be best realized in practice by building up and attracting the most desirable applicants for work; by employing the best methods of selecting, placing and protecting employes, and by the best methods of instructing, training and retaining them. * As stated in the report of the Committee in 1915, vocational guidance is possible only through organic progress in industry. c. What society has, a right to expect from employers and workers.— The fullest conservation of natural and human re- sources, and above all, a chance to make personality count. The keynote to this report is the wise distribution of respon- sibility and the opening up of avenues for the liberation of human worth. 2. Machinery for Putting Ideals Into Practice The report is concerned primarily with the problem of sug- gesting machinery for getting the organic conception of the in- dividual in industry to operate efficiently in each firm of the Association. This calls for: a. Clear-cut, specific organization, the creation of special departments, such as employment bureaus, and the redistribution of functions within the establishment. b. Special educational machinery for instructing and train- ing executives in the newer ideals and policies of the firm in relation to the problems growing out of introducing and develop- ing the organic conception of the individual in industry, and for enlisting mutual confidence and cooperation. c. Means for instructing and training all the employes in the newer ideals and policies of the firm in relation to those new problems, and for enlisting their hearty cooperation. The new ideals and policies cannot be successfully handed down from the top until the rank and file, through proper instruc- tion and training, are prepared really to help carry them on. II. THE ORGANIC UNITY OF THE INDIVIDUAL In order to grasp the significance of the organic unity of man, we must bear in mind his many-fold interests. Every normal human being has a clearly defined number of life needs or interests. The work environment influences for good or ill these fundamental life interests more than any other kind of en- vironment. For our purposes these life interests may be briefly set forth as follows : 1. Bodily Integrity Health, physical welfare, is absolutely the foundation of economic and social efficiency. Health is a matter of endow- 10 ment, that is, heredity. It is also a matter of maintenance, that is, environmental influences. If, then, health is so essential, how important it is that everything possible should be done in the work . environment to prevent the undermining of bodily, in- tellectual, and moral integrity. Hence the significance of the physical examination of employes ; the protection of all workers after they are in their positions; the prevention of accidents; and the control and elimination of occupational diseases. Our most progressive employers are beginning to realize as never before what a great asset it is to have workers who are well, and are earnestly striving to select able-bodied men and to keep them physically fit. 2. Adequate Compensation Another normal human need is adequate income. This is absolutely "necessary in order that a reasonable standard of life may be developed and conserved ; and it is likewise necessary that this compensation be continuous, week in and week out, if this standard is to be maintained. 3. Instruction and Training A third normal human need is a reasonable amount of knowl- edge; instruction is absolutely essential to a well-rounded life. When we realize the large number of employes in America to- day who cannot speak or understand the English language, and many of whom cannot read or write in their native tongue, and when we realize how this ignorance blocks progress in so many other directions, we see what a great problem awaits our in- dustrial and educational leaders for solution. If we under- stand and utilize industry aright, there is no place in the world where so many and such fine opportunities to educate and train people exist as in the work environment. The business of life is our greatest educational opportunity. This means, if we go about it in the right way, that we have to select all grades of workers with reference to individual aptitudes, tastes, potentialities, and possibilities for growth and development, and instruct and train them accordingly. It means careful studies of opportunities for trying men out and for promoting them, and the keeping of careful, efficient records of accomplishment. It means in reality o human interpretation of work. 11 4. Recreational Opportunities The normal human being asserts individuality through the power of association. There is in all of us the innate desire to associate with others. The marked contrasts between earlier industry, when machinery was not so generally used, and our present specialized industrial mechanism, call attention parti- cularly to the difference for social opportunities in the work environment. The men who sat at the. cobblers' benches in Lynn, and other places in the earlier years, when they made a complete shoe, when they knew a shoe, when they knew their associates well, when they seriously discussed important political and social problems, present a striking contrast with the men of to-day in the modern shoe factory, where they can scarcely hear themselves speak, where the contacts are primarily with materials and machines, and where the human associations through the entire work period are so largely destroyed. There is a marked psychological outcome resulting from the differences between these modern contacts and the earlier human associa- tions or relationships. The machine has destroyed much of the opportunity for sociability in the work environment. The ma- chine has broken the brotherhood bond. How to guide and de- velop wholesome constructive leisure is a great modern industrial as well as social problem, and many employers are addtessing themselves to its solution. Such an opportunity for sociability is a normal, human need, and through such opportunities one finds the finest avenues through which to give expression to per- sonality and individuality. 5. JiSTHETic Enjoyment The appreciation of the beautiful, is a normal human need. The good life is the beautiful life. The bad life is the ugly life. Place before the average human being the opportunity to enjoy the beautiful and the ugly and there is no doubt which of the two the average person will select. We are all familiar with those phases of the so-called welfare movement in which efforts are being made to beautify factory grounds, factory buildings, and the work environment generally. When we have carried this movement in behalf of beauty so far that art shall have become more generally a part of industry, when 12 we shall have democratized art, then aesthetic enjoyment will be wonderfully enhanced and a normal human need more ade- quately met. 6. Opportunity for a Square Deal Finally, the most important of all fundamental life needs is a reasonable sense of fairness satisfied; that is to say, justice is an essential, normal human need. The consciousness of a lack of justice in many of the work relations is a fundamental explanation of much of our industrial and social unrest. How to realize justice in the work relations is the gravest problem confronting America to-day^ These normal human needs — physical integrity, adequate com- pensation, training and knowledge, appreciation of the beautiful, social opportunities, and justice are essential to a life of freedom. In the human interpretation of business we should never for- get that the final repository of all value resides in human per- sonality, that personality is most fully realized in the work en- vironment, and hence of supreme importance is the right kind of environment through which organic personality shall be realized, and therefore the great opportunity and tremendous responsibility of the business leader. Human welfare is within his keeping more fully, perhaps, than is true of any other type of leader. Free occupational choice and fair occupational opportunity are absolutely essential to the realization of the organic con- ception of the individual in industry. This is the most important goal of economic and social endeavor. HI. CONCRETE ILLUSTRATION OF THE ORGANIC PROGRESS OF THE EMPLOYE IN INDUSTRY In order to give concreteness to the organic conception of the employe in industry perhaps we can do no better than to synthe- size what should happen to the average normal employe as he progresses along his industrial career, especially with reference to a particular establishment. Social labor legislation will, of course, play its part in supporting minimum standards so as to protect his progress as he necessarily goes from place to place 13 in the same line of work, or, perforce, is obliged to change his occupation. Such synthesis would give our worker: 1. Fair Knowledge of the Firm In view of the growing emphasis placed upon individual quality in the workman and competition among employers for detailed knowledge of the employe, and since progress to the worker is so largely determined by his work opportunities, it is only fair that the worker should be given every chance to know accurately just what kind of job he is entering. Hence it is instructive to note the growth of interest on the part of progressive employers in "Employes' Hand Books" and other means of acquainting prospective employes with the ma- chinery in operation for caring for the total welfare of the worker. workmen learning to select employers Workmen are learning from their employers. They realize that employers are more carefully selecting workmen than ever before. They, in turn, are learning to select their employers more carefully than ever before. It is as important for the employe, for the business, and for society, that the employe should wisely select the employer as that the employer should scientifically select his employe. A right choice here may ulti- mately mean stagnation or advancement. It may mean a part in the business. It may determine whether the workman can own his own home or not. It may mean insurance against life hazards in one case and fatal breakdown in another. Further, employes are chafing under what they call the "pressure of the system." They are realizing that scientific management and various types of efficiency schemes have not given them the opportunity for an all-round development that the normal man craves and is determined to have. They are analyzing all that the efficiency movement means and, in a striking number of instances, have successfully opposed the "pressure of the system." All this growing sense of personal dignity, of careful selection of employer, of opposition to "the 14 pressure of the system," indicates a growing appreciation of the meaning of the work environment. 2. Fair Trial at Selection A fair chance at being hired depends primarily on the fitness for the work of those who do selecting, the freedom they are given in performing this vital function, and on machine ery for selection. It can hardly be claimed that the scientific placing of employes has reached a very promising stage. The special preparation of those who are to perform this vital function and the recognition that heads of employment depart- ments should be considered among the most important officials of any firm are urgent industrial needs. There are prornising outlooks for a more scientific system of selection and hiring coming from the recent work in the field of vocational psy- chology. 3. Adequate Instruction for Job Every worker has the right to be carefully informed as to the work expected of him, to have its possible rewards at the outset pointed out, to be trained so as to be able to progress at the job, and to have the possible openings for advancement charted. Progressive employers, as never before, are interested in training the rank and file. Hundreds of men are now giving all their time to the special training of new employes at their specific jobs. This is especi- ally true in factories where the gang or chain system of pro- duction — as in the automobile industry — is coming into use. 4. Health Protection Every worker has a right to have everything done that rea- sonably can be done to insure physical integrity— careful physical selection, assignment to a job fitted to physical needs, all hazards reduced to a minimum, all sanitary arrangements standardized according to the best known scientific measurements, the best medical aid and nursing in case of illness, and a generally broad constructive "Health First" program that will insure physical integrity. Health, as already emphasized, is the basis of econo- mic and social efficiency. A square deal in the matter of health 15 is fundamental in the organic conception of the employe in in- dustry. 5. Advantages for Learning About Business An employe cannot show his full worth, and hence become of the greatest value to his employer, unless he is given a chance to become a genuine part of the business, if he is better quali- fied than some one else to do so. To ascertain his organisation fitness he must be given a chance to study and know the busi- ness. Great waste occurs in business because of lack of true appreciation of the wonderful flexibility and versatility in the average normal employe and of the great possibilities there are in industry, when once the attention is turned to it, for dis- covering and utilizing the true source of all wealth — human talents. More attention than ever before is being given to this problem of training workers in more than one job, in trans- ferring them from one department to another, in giving them formal instruction and informal opportunities to become ac- quainted with the varying demands of the business. 6. Adequate Annual Compensation Life is largely measured in terms of income. Vital, then, is it in a fair deal with the worker that he gets for his annual income sufficient to support himself and those dependent upon him. He cannot measure his income needs in terms of short periods unless he is assured regular employment. The whole movement of legal machinery in behalf of minimum pay stand- ards, is based upon the breakdown of the individual contract. Progressive employers are realizing the life-meaning of the minimum, and are manfully meeting it by so training their help at the start, so understanding their job requirements, and so progressing their workers as to enable them to support them- selves in comfort, and at the same time increase the output of the business. They are verifying the economy of high wages, or in the language of the human interpretation of industry, they know that it is good business to make men dear and goods cheap — the most important business and social maxim a people can practice. 16 7. Reasonable Houbs Each worker has the right to reasonable hours of work. The - vital relation between hours and all the new machinery being ad- vocated as necessary to put these organic ideals into practice is not appreciated as it should be. We know little yet about the law of scientific work maximum — just what speed, strain, and worktime can be most efficiently applied during each twenty- four hours. The relation between work, sleep, study, and play is a vast economic and social field for further scientific research. But we do know full well that men cannot strain through a long, hard day at manual or mental work and then effectually put forth the necessary energy to instruct and train them- selves in all the new requirements that are crowding for study, understanding and control. Learning English, studying the job, acquainting oneself with the demands of personal and vocational hygiene, getting any kind of grip on the vast literature dealing with the many-sided problem of the human relations in in- dustry, requires time; it is costly in brain power. The most urgent needs of industry cannot be met unless men are given time to study and think these problems through. This applies to the entire organization from the top to the bottom. One of the gravest situations in industry to-day is the fact that the men at the top have not time to think these human relations problems through, and they have not yet fully realized the neces- sity of redistributing them amongst the rank and file so as to have them properly cared for. Now it is a most promising outlook to see the best busi- ness leaders reducing hours, extending Saturday half-holidays, and arranging work hours so as to comprehend these new needs within the normal day's work. These problems are just as much a vital part of the business as anything else. 8. Machinery for Adjusting Difficulties Every normal worker has a right to a fair hearing when he himself believes he has not had a square deal, no matter what the cause. This matter of grievances is one of the most vital in industry. Its deep significance in the life of every man and woman worker, its importance in the fundamental struggle now going on in industry and in education between the ideals of 17 autocratic and cooperative control ; its surely accelerated in- sistence after the war, and its deep meaning in the lives of all the workers as an outlet for the expressions of personality, are not comprehended as they should be. The problem of grievances goes to the very heart of all the many phases of the human relations in work. Nothing will more truly test executive leadership than the successful application of science, and the art of a deep human sympathy, to the clear understanding and control of all those psychical forces which enter into the harmonious conduct of business. All the necessary factors working for cooperation — a progres- sive enlightenment, leadership, mental understanding and con- trol, a real partnership, are tested and proved in the numerous misunderstandings certain to rise in one form or another in the business world. The matter of grievances is alluded to here necessarily as one of the organic rights of which the employe in industry should be assured. It is the right of the worker to share in the under- standing, control and solution of the vocational conflicts. 9. Recognition for Good Work The desire for recognition is universal and it means far more than monetary reward. A young man in a nearby firm had his wages increased recently. At the same time he received notice of the advance, he also received a brief note from his superior commending his good conduct. The young man told a friend of the writer that he didn't care anything about the "raise" but the note did him a "lot of good." Recognition embodies much in addition to wages— fair promotion, the just evaluation of suggestions, a fair chance to learn the business, equal opportuni- ties for self-expression in all ways that will awaken talent and strengthen team play, pensions against disabilities of all kinds, and other opportunities. 10. Practice in Cooperation As previously stated, growth in the capacity for and prac- tice in the habit of cooperation is. one of the surest tests of progress. Now the only way to develop this power of united action is through practice. The men, then, in various parts of the 18 business must be given a chance to get together, those higher up with those below, those in the middle with those above and below, and those below with the groups above. Only in this way can we hope to develop organization fitness and strong group action. It is the right of every worker, and essential to the organic con- ception of the employe in industry, that all should be privileged to participate in those activities which develop initiative, self- respect and intelligence. This means cooperation within and without the firm, functioning through machinery moving in va- rious reasonable directions — committees on employment, safety, health, welfare, recreation, athletics, and similar activities. Here, then, in synthetic outline, is a concrete picture of the worker at his job from start to finish, having an adequate start- ing knowledge of his prospective employer, fairly selected for his job, instructed in his work, guaranteed bodily integrity, given a chance to learn the business, justly remunerated, w;orking reasonable hours, surrounded by machinery designed to keep open channels, assured that merit will win, and freely and fear- lessly taking part in all those activities that awaken, train and develop personal power. The quintessence of all these endeavors is that it depends for its sanction and authority, not upon any abstract theories of rights, duties and- privileges, but upon the common convictions and feelings of the rank and file that they have a vital inter- est in the problems to be worked out and are entitled to a fair share in the gains and honors of the solution thereof. The implications to the employer of this organic conception of the individual in industry are many and far-reaching. We do not regard it as necessary to re-emphasize in any extended manner the human element as it bears on the cost of the turnover, on work efficiency, and many other phases of the problems of business administration. The report of this com- mittee last year dwelt upon these aspects of the problem, and the economic, business and social literature of the current year has dealt fully with the need for "humanizing industry." It is assumed that the next desirable step by which the Com- mittee can best serve the Association is the formulation of ways and means for putting the organic conception of the individual employe in industry into practical operation — to make it of real working value. This is why elsewhere in this report so 19 much emphasis is placed on the machinery for getting this organic ideal across. Before any specific measures can be in- augurated in an . establishment, there must be some reorganiza- tion — it may be slight, it may be considerable, varying according to the needs of the individual firm conditions. Such reorganiza- tion is particularly needed along the lines of more centralized employment machinery, and the care of the human relations generally. Such reorganization will be found in actual practice to be absolutely essential before particular features regarding such problems as careful analysis of the labor supply, scientific selec- tion of workers, proper placing at work, and analyzing the job so as to understand all its many-sided meanings can be in- stalled with any fair degree of satisfaction. The best diagnostician in the world, however, and the best business organizer cannot go very far in helping solve these difficult, delicate and complicated problems unless those who administer business have the right ideals of the business organi- zation, are properly instructed and trained in the newer methods, and are sympathetic with the newer point of view. IV. SOME GENERAL CONSIDERATIONS BASED ON PERSONAL INVESTIGATIONS 1. Evidence of Aid Desired by Business Leaders The Chairman of the Committee on Vocational Guidance and another member * of the committee made a tour of investigation during the first part of February of this year, visiting a num- ber of individual firms in New York City, Cleveland, Detroit, Chicago, Pittsburgh and Philadelphia; and the Chairman has throughout the year been personally in close touch with a nurnber of other firms in the East. During this tour of investigation the Chairman came into personal relations, by means of conferences and addresses, with over two hundred men and women, including presidents, vice- presidents, general managers and executives of all grades. In every instance there was a keen interest in the significance of * Mr. A. C. Vinal, of the American Telephone and Telegraph Com- pany. 20 the human relations in industry and a deep appreciation of it. Everywhere there was an earnest desire to know and a cordial willingness to extend assistance. The determination to learn what is going on elsewhere in these matters and the coopera- tive willingness to aid others is one of the most helpful tenden- cies of the times. This helpful exchange of experiences was the chief idea in the founding of The National Association of Corporation Schools. All progressive employers are seeking constructive criticism. The older attitude of semi-hesitation and secrecy is rapidly giv- ing way to a ready willingness to pass along to responsible persons the procedure, methods, machinery and results known to be worth while. The National Association of Corporation Schools has a great opportunity for constructive service to the members in capitalizing this experience and cooperative spirit. Indeed, several good firms are now looking upon their plants as laboratories for the study of these new problems, not only by their own people but by properly qualified outsiders. The growing appreciation of the business value of the right understanding and treatment of the work force ; the increasingly correct estimation of the social responsibility of big business; a realization of the intimate connection between the neglect of the human values in work and industrial unrest and waste- ful friction; a growing sense of the business value of a genuine humanitarian sentiment; the new business philosophy "do it because it is right"; an increasing appreciation of the business value of courtesy to employes— all indicate the tendency to evaluate these attitudes as definite business assets. 2. Interest in the Organic Ideal Many of these business leaders are not only interested in the organic human ideal; they are thinking hard on its many phases; they are usually cautious, realize that they must move slowly, "prove all things," but they are thinking and planning in terms of the organic. This is strikingly true in firms like the Edison Companies, the Joseph & Feiss Cloth Craft Shops, the Printz-Biedermann Company, the Western Electric Com- pany, the Westinghouse Companies, the Fore River and New- port News Shipbuilding Companies, the Dennison Manufactur- ing Company, the Plimpton Press, the American Telephone and 21 Telegraph Company, and the German-American Button Com- pany. These, and other progressive fiirms, while they vary in the extent and direction of their undertakings, see clearly that the organic conception of the employe must include work, in- come, food, home, sleep, training, protection, recreation — the total life of an efficient, contented human being — in work and out of work. It is this organic conception that has caused many of our business firms to tie up in more centralized employment and service bureaus the problems of selection, safety and health, instruction and training, and general welfare. 3. Cooperative Control of Working Forces There is a clear tendency among these progressive firms to get away from the old-type autocratic one-man rule and substi- tute therefor the functionalized and cooperative committee sys- tem. This larger flexibility in management is manifesting itself in a wide variety of ways. It is seen among the executives not only in finance, sales and production, but strikingly in the large numbers of committees caring for a wide variety of the problems growing out of the human relations, such as employment, safety, health, standardiza- tion, wages, etc. These committees sometimes are within de- partments, sometimes they are inter-departmental. They are often among executives themselves. Sometimes they are be- tween executives and the rank and file, as in case of advisory boards on employment, courts of appeal, wage standardization boards, etc., and others are often among the lower groups only. Sometimes one finds a detached, functional specialist who is free to go and come anywhere, anytime, who seeks to discover error, friction and waste, who offers constructive criticism and suggestions to higher officers, who, in a word, takes over many of the duties heretofore performed by head officials. In reaching decisions on all the numerous questions affecting the welfare of employes and hence the welfare of the entire business, there is a decided interest in giving employes a definite share in the inception, guidance and control of new plans. In the important problems of creating boards or com- mittees for the analysis of work requirements; in working out 22 standards of performance ; in the determination of wages ; in the creation of machinery affecting the discipHne and working conditions of employes; in the conduct of the social and so- called welfare activities of the concerns; and, above all, in the vital matter of creating machinery for handling grievances, there is an earnest desire to have the employes more and more demand these improvements, and in good faith join whole- heartedly with the management in their organization and func- tioning. One large concern visited, where they have created very helpful machinery for handling grievances, is carrying on a campaign of education for the purpose of creating a desire in the employes for these betterments. 4. Machinery for the Exchange of Experiences Everywhere there was expressed the earnest desire to have an efficient clearing-house established in our Association that would effectively gather, evaluate and pass along helpful as- sistance in the understanding and solution of our problems. It was felt that the fundamental purpose of the Association in the collection, evaluation, and dissemination of helpful procedure, method and results had not as yet been realized.* This desire for cooperative assistance was expressed to the writer from several different angles. Some employers were using the services of labor analysts, industrial advisers, — ex- perts in this new field. Moreover, some expressed the earnest desire to have young men who had had some business experi- ence return to college and take special courses designed to fit them for the new duties, such as the new course on employ- ment problems offered by Dartmouth College. t There were a number of such progressive employers in Cleveland. Others want more formal and comprehensive training arranged in the colleges to fit the college graduates for the newer work. But all were earnestly asking for greater assistance from our Association. * In the fields of apprenticeship, employment, and scientific methods of selection, special organizations for studying these problems have re- cently been launched. The latest of these is the New Bureau of Salesman- ship Research, to be devoted largely to devising scientific methods for selecting both salesmen and executives. For details concerning this Bu- reau, see Appendix I, p. 94. t For a revised outline of this course, see Appendix VII, p. 137. 23 5. Changed Attitude of Engineers One of the most significant aspects of this whole problem of the changing relations between materials and men is the changed attitude of the engineer. All over the country the real engineers are no longer giving the same relative attention to the technical side of the engineer's training. What is now demanded of the engineer in industry is those characteristics that indicate broad intelligence. And this demand is having a decided in- fluence in modifying the policy of our engineering schools.* This is a most significant and wholesome tendency. The engineer is fundamental in all industrial advance, but the grow- ing consciousness of such a vital group in the problem of self- analysis, self-improvement, and self-direction opens up large possibilities. It is a most wholesome and promising attitude. Clear evidence of this changed attitude on the part of engineers is reflected in the recent numbers of the Engineering Magazine. t 6. Lessons for the Association Resulting from the War Employers everywhere are vitally interested in the effects of the war on labor. More and more it is being realized that the war is fundamentally an economic struggle, — not a con- flict of soldiers so much as a conflict of mechanics. It is funda- mentally a battle between the business leaders — bankers, manu- facturers, etc. A period of much economic and social unsettlement and perplexity is sure to follow in the adjustments to the new con- ditions after the war is over. A highly inflated currency, the crushing overburden of the masses with enormous debts, the appalling and wanton destruction of European resources, can- not fail to force upon the entire world the necessity for far- reaching economic and social readjustments. But important as these considerations are, there are other sure effects of the war of more immediate practical significance for our Association. * A new course, "The Human Side of Engineering," which the Young Men's Christian Association has formulated, and which has won the approval of a large number of engineers, is to be adopted by several en- gineering schools. An outline of the course has been kindly furnished by Jred H. Rindge, Jr., Secretary Industrial Department, Y. M. C. A. t See especially issue for April, 1916. 24 Evidence reaches us that first-hand study from the records of steamship and railroad officials indicates the return to Europe at the close of the war of at least 500,000 people, with little or no evidence of incoming numbers to balance this loss. Hence the importance of plans to train a skilled body of workers. Plans looking to this end are interesting all employers. The institution of factory classes for foreigners is only one bit of evidence to indicate that we cannot longer rely on large nuinbers of untrained laborers as we have done heretofore. After the war the world as never before will be forced to get down to bedrock. Real, not fictitious, values are sure to rule — to the scientists and those who have a deep understanding of the human, business will more and more belong. We are charged with grave military unpreparedness ; the charge may be true. To the writer the most vulnerable spot in the whole military-political-economic situation is the ominous fact that American business management is facing a grave psy- chological unpreparedness. Those who grasp the true psychology of the present situa- tion and help build our future administration of business on sound psychological lines will do the most to prepare the country for all aspects of future aggressions. Strife between the autocratic and democratic ideals in poli- tics is bound to increase and extend to industry. Here we must not forget the real popularity of the autocratic ideal. All men like leaders. The real inequality in talents gives wide credence to the autocratic ideals. Habits and public opinion are based on autocratic notions and habits and public opinion rule. Against this ideal is the growing co-operative movement — recognizing great inequalities in men, but firmly believing in capacity for growth, and determined to work in the direction of self-analysis, self -development, and self-control. These social-industrial turmoils will not down. They can- not be ignored, evaded, passed by, repressed. There is just one way to get away from them — solve them. Might will never win in the end in these industrial disputes. In view of the keen interest of all our business leaders in these problems of control and consent, it is not surprising to find a wide interest in machinery for caring for these problems. Here is the great problem of the future— in business as well 25 as in government. Here is our great psychological unpre- paredness. 7. Summary of General Considerations In laying emphasis upon these general considerations — the rapidly growing interest in the human relations in work; the grasping in business of the organic ideal; the open, friendly give-and-take spirit; the definite, helpful cooperative arrange- ments with our educational institutions; the rapidly developing scientific and human spirit in business, evidenced through the demand for the expert and the deep interest in experiments in industrial cooperative control; the searching efforts to anticipate and prepare for the readjustments certain to follow the war, we see clearly that business is being recognized as the all-correlat- ing life fact of our time, in which the sovereignty of the normal individual must be realized. V. WHAT A LARGE CORPORATION* HAS DONE TO DIAGNOSE ITS HUMAN RELATIONS! It is of the utmost importance that every firm should know just where it stands in the problems of its human relations — know just what its cooperative strength is, just what team reliance it has. In order to be thus fortified, careful, continu- ous, scientific studies must be made of all the many aspects of the problem. In this way only can the capacity and adaptation for cooperation in these matters be known. Every employer should card-index his team strength in order to be able to know and to summon it into active service when needed. 1. Importance of Self-Analysis In order to illustrate concretely sound procedure in these problems, the following brief outline of what a prominent Class "A" member corporation has recently accomplished is given. The first thing the company did, beginning in September, * Class "A" member, National Association of Corporation Schools, employing about 5,000. t A somewhat similar procedure in studying its industrial relations is being carried on by another firm engaged in the same line of business. 26 1915, was to have an analysis of its human relations made by an outsider, whose specialty is in this field. A report in writing of his conclusions and recommendations was handed to the presi- dent in December last. The common condition of decentralization regarding most of the problems treated in this report was found to exist. The study of the labor market, building up a desirable source of labor supply, selection, promotion, discharge, wages, and other phases of the problem, were widely distributed in authority. Any genuine cooperation regarding these various aspects of the problems affecting the workers was lacking. Recommendations along the lines essentially advocated in this report were placed before the president in writing. These recom- mendations called for a careful study of the labor market ; the building up of a carefully selected source of labor supply; the creation of more centralized employment machinery, assisted by advisory boards, and manned with a well-qualified leader, as- sistants and clerks ; a careful selection and placing of employes ; a study of the work requirements and a true record of the same as aids to scientific placing, transferring, rotating, promoting and discharging employes. Much emphasis was given to the business value of health conservation; hence recommendations were urged regarding the significance of physical examinations, periodical examinations, the right kind of safety first and medical organization — briefly the anticipation and prevention of health hazards of all kinds. The far-reaching business values of the right educational procedure were dwelt upon and machinery out- lined for putting this procedure into practice. Briefly, the recommendations sought to enlighten with refer- ence to conditions and needs, and emphasized the necessity of leadership, first at the top and then among the rank and file in order to bring about a real partnership in the understanding and solution of the problems. Real conditions about the human relations were not ade- quately known. Even with fairly well centralized employment machinery, it is more and more being realized that elaborate re- organization is necessary through committees and boards of vari- ous kinds to find out what is going on and what should be done. All these human relations problems demand close study of one's own firm and the diffusion of the knowledge thus secured. 27 The starting-point in the procedure, then, was self-investigation with the assistance of an outsider. 2. The ■ Need of Expert Assistance The need of initial surveys of conditions by an expert and diagnosis of the organic relations is due to several circumstances a. Under modern large-scale management, with the many complex divisions and subdivisions of work and authority, the size of a firm usually prevents one part from knowing what the other part is doing. The men on the inside, daily living in the same situations and conditions, are too close to get a true perspec- tive. They do not see their needs. As a rule they are not trained to observe the human relations and the conditions about them certain to affect these relations. Many broad-gauge men, fine observers of machines, materials, and processes are almost oblivious to the human relations. They are not trained in the right attitude toward these newer problems which require an appreciation of psychological forces — a deep sympathetic under- standing of human nature. A man on the job all the time cannot easily get an objective, organic view of the system in which he is living and working. b. Departmental jealousy very generally stands in the way of the organic conception and its functioning in industry. This jealousy is a real menace to industrial efficiency and harmony. ■It is common throughout all work relations — education, politics, and business. c. The labor expert is often needed to supplement the work of other efficiency specialists. This is true even in the case of plants under the Taylor system of scientific management. Scien- tific management we now know has not fully caught the vision of the organic nature of human relations in industry. There is much justice in the criticism of the narrowing influences in the shops under scientific management. We know of some firms under scientific management where men trained to observe and understand the human relations have been called in to supplement the work of the scientific management experts. It is necessary where the right attitude on these matters has not been developed within a plant, to start the men along such lines in order to have the problems worked out in the manner suggested by the expert. This is a far more effectual system in 28 the end than introducing the new system by outsiders and having them try to carry it along for years almost independently of the organization, of which, to be of real value, it must ultimately become a vital part. The only kind of really effectual, perma- nent help is the assistance gained by one's own developed force. Now this method means, first, a careful study of one's own conditions and of good results' worked out elsewhere ; then the diffusion of this knowledge among the higher groups; and ulti- mately, the instruction and training of the entire work force, so as to get their interest and cooperation in the new problems. The procedure thus far described is purely preliminary: to put the organisation on the right track. This done, it is for the firms to study their own problems. 3. Getting in Touch With Others This method of procedure was wisely adopted by the presi- dent of the company cited. He realized the helpful value to his company of having his men go out and see what others are doing along the same lines, and return with a new vision, fresh ideas and enthusiasm. After careful study of their own needs, and the preparation of lists of questions dealing with topics to be investigated (or- ganization of employment offices, various methods used in em- ploying, transferring, rerating, promoting, discharging, kind of help including nationality, hours and wages, apprenticeship sys- tem, safety work, welfare work, and other allied topics), six men (four foremen and two detached men) were sent out by the com- pany early in February to investigate these problems among pro- gressive firms in Cleveland, Detroit, Akron, Columbus, Dayton, Pittsburgh and Philadelphia. The following firms were visited and most cordially co- operated with the committee in every way: Cadillac Motor Co., Detroit. Carnegie Steel Co., Pittsburgh. Chalmers Motor Co., Detroit. Cleveland Foundry Co., Cleveland. Cleveland Hardware Co., Cleveland. Curtis Publishing Co., Philadelphia. Dodge Bros. Motor Co., Detroit. 29 Ford Motor Co., Detroit. Goodyear Tire and Rubber Co., Akron. Jeffrey Mfg. Co., Columbus. Link Belt Co., Philadelphia. National Cash Register Co., Dayton. Packard Motor Car Co., Detroit. Sherwin-Williams Paint Co., Cleveland. Westinghouse Electric and Mfg. Co., Pittsburgh. At the end of two weeks the committee returned with a most valuable mass of first-hand material, an enlarged vision of the significance of the problems of the human relations in busi- ness, and a fund of wholesome, constructive enthusiasm that is proving a vital force at the home company. The committee for its own needs then gave some weeks of most intensive study to the careful, methodical arrangement, analysis and evaluation of the material and experience gathered in its tour of investigation. A summing up of its experiences and recommendations deduced therefrom, dealing with the establish- ment of an efficient employment bureau, a court of appeals, courteous treatrnent by all heads of departments and their sub- ordinates, careful follow-up and grading, if possible, for effi- ciency, adherence to policy of promotion from within, pensions, good working conditions, welfare work, including lunch-room, visiting nurse, medical staff, stores, works paper, and recreation, was printed in a twenty-three page pamphlet. The report closed with this wise sentence: "In order that many of the suggestions be successful, it will be necessary to have the entire cooperation of the foremen and all heads, and they should become acquainted with the object and findings of the committee." Accordingly, the president, earnest in his endeavor to secure the enlightened cooperation, leadership, and actual partnership of his men in handling their new problems, wisely sent out copies of the committee's report and recommendations to all the execu- tives, foremen and leading men (169 in all) — men who had others under them — asking them for their suggestions and criticisms. 30 4. Suggestions and Criticisms Coming from the Men. The response was generous and is proving of the greatest value in the handling of the new problems. Nothing is more helpful than to have groups attack these large problems of organization and functioning cooperatively. By this method of procedure the men learn a great deal about their own business and about other firms on the outside. This kind of contact on the human side is sorely needed in modern industry to offset the specialization of function and to give broader vision of the whole industry. It develops organization fitness. These responsible officers returned many helpful suggestions regarding an enlarged employment bureau and more careful analysis of quits, discharges and transfers. Many good ideas about a court of appeals came forth from all grades of execu- tives ; promotion from within was emphasized ; welfare work should have absolute support of foremen and subordinates; and many helpful ideas on education, health and safety were sug- gested. The problem of pensions was given special stress, the men realizing its great importance and recommending a special committee to investigate the matter of installing a pension fund. It was likewise recommended that a special committee be ap- pointed to study the problems of employes' homes. Some of the attitudes on these problems, reflected in this valuable fund of information, were most suggestive and helpful. Many of the men suggested that general meetings should be held for discussing the larger phases of the problems — where all were interested. This procedure has clearly shown what a fund of cooperative leadership there is in industry and how readily the team-work spirit responds when it is gone after in the right way. 5. Progress of Work and Results Up to the present writing (May 2, 1916) the following re- sults have been accomplished, due to the new methods; and doubtless when this is being read, further good results will have been reached : a. Centralization of employment into a bureau, with an em- ployment committee and a new employment clerk, and with plans for a better physical equipment for the work. An analysis of 31 labor turnover and the classification of labor have been begun. A new employes' handbook is being issued. b. Reorganization of health protection. Enlarged medical staff, with visiting nurse added. Hospital to be constructed in the near future; reorganized safety work; a lunch-room added. c. Educational work extended ; circulating library put in ; re- organization of house organ. d. Reorganization of suggestion committee. e. Organization of company club; club house to be built shortly. f. Plans for housing employes. g. Annual field day. This, then, was the method of procedure : a. Finding out through personal investigation and conferences throughout the company by an outside adviser where the com- pany stood. b. Investigating committee from the company laid bare fur- ther facts and went outside to study what others were doing. c. Executives, superintendents, foremen and leading men con- tributing what they knew. d. The next stage is to diffuse all this helpful information among the rank and file. This is going forward at the present time, and is full of promise. VI. SUMMARY Briefly summarized, the goal of enlightened business policy in regard to its workers is to develop a healthy, competent, con- tented, loyal body of employes, working in genuine unison and cooperation because convinced of a right spirit existing at the top; and because they see and feel all about them the careful, thoughtful and scientific organization and functioning of op- portunities and interests of such an appealing and compelling nature that they cannot help but respond. A statement of the more important means through which an organization can function constitutes the second part of this report. 32 PART TWO— SUGGESTED MACHINERY I. CENTRAL EMPLOYMENT AND SERVICE BUREAU * L Functions of Employment Bureau The chief functions of a properly organized and directed em- ployment bureau are : a. Understanding the labor market and attracting desirable applicants. This will result logically from the conditions within the industry and the ways in which this information reaches the public. b. Increasing the average length of service. The cutting down of the costly turnover and building up an efficient, contented work force results from many phases of the Bureau activities de- veloped throughout the report. c. Tying up the human welfare relations of the entire plant. This calls likewise for the understanding of much that is elabor- ated throughout the report — the right kind of policy and organiza- tion at the top ; the cooperation between those at the top and the rank and file; all sorts of arrangements among the rank and file for expressing themselves; various means for instructing and training in the capacity for, and in the habits of, cooperation. This vital function of cooperation, tying up the human wel- fare, cannot be over-emphasized. Our work at all points — in health, educational procedure, grievance machinery, and else- where^has constantly emphasized the importance of anticipating troubles and losses of all kinds, in order to prevent them. Pre- vention is impossible without cooperation. The lack of cooperation in industry is due largely to de- centralization in dealing with questions of employment. This is the fundamental weakness in the whole employment problem. It may be justly said, as a general proposition, that, as regards employment, there is no real leadership at the present time. * This bureau might properly be considered a Department of Human Relations. For an account of what one firm has accomplished through its Employment Department, see Appendix III (p. 112), describing the work of tlii Dennison Manufacturing Company. 33 Highly diffused and scattered responsibility characterizes and complicates the whole situation. It is difficult to over-estimate the extent of this diffused responsibility. The presidents, vice- presidents, yard superintendents, employment clerks, doctors, leading men, boarding-house keepers, and others — all have a share in employment and there is a general recognition of the very serious waste flowing from this decentralization. Decentralization being the fundamental weakness, the direc- tion in which the remedy should point is obvious. Many lines of endeavor will be necessary, each helping and influencing the others in establishing the right kind of cooperation throughout each firm. First is the creation of a well-thought out, centralized employ- ment and service bureau, and the gradual transfer to the central- ized employment bureau of a large part of the present scattered and disconnected employment plans and methods. This is abso- lutely essential if the proper functions of employment are main- tained. This centralized employment and service bureau should be regarded as the headquarters in every firm for all the vital problems centered around the human relations. Through this centralized bureau should function all the fundamental problems having to do with the selection, hiring, promotion, and discharge of workmen. The many vital problems concerning the physical welfare of employes, including the work of the medical staff, the problems of accident and occupational disease hazards, and all those features that have to do with what is commonly called "Welfare," in a word all the problems that have to do directly with the physical, intellectual, and moral welfare of the worker, should be tied up in this bureau. 2. Advantages and Results of Centralized Employment Bureau a. To disseminate information A very important service of the centralized employment bureau will be to bring together into a compact form and disseminate highly desirable and useful information. At present employes too generally come to employers without any guidance whatsoever. There are no sources of information with reference to what is 34 going on in individual firms, what the managements expect of those who come in, what opportunities are open to them, etc. Employes' Handbooks should define the policy of the com- pany both in its relations with the public and toward its em- ployes. They should contain a brief, clear statement regarding applicants for employment, health inspection, work hours, at- tendance and punctuality, absence, overtime, vacations, the "safety first" work, the significance of the workmen's compensation move- ment, the importance of personal hygiene, including care with reference to occupational diseases, the borrowing or loaning of money, an account of athletic and recreational activities, general external welfare features, old age pension plans, employes' sav- ings fund, systems of promotions, company library, opportunities to learn English, and any other fact regarding the policy of the company which an employe should know. Such a guide book is of the very greatest service and is ab- solutely essential for the proper direction of employes, and will do a great deal to concentrate attention in the right way on the part of all to the improvements to be inaugurated. b. Centralising knowledge of all workers and unifying all parts of the labor problem Since the great difficulty with reference to the employment problem is marked decentralization, constructive remedies must look in the direction of unifying the different parts of the labor problem. Just as there must be a common medium through which all that relates to production must flow, so the head of the employment bureau should be the center of knowledge re- garding all the human problems. This unifying of the different parts of the labor problem will do a great deal to give the right attitude toward the many-sided aspects of the human relations. c. Satisfactory sources of labor supply Centralized employment machinery is essential to the estab- lishment of more complete and satisfactory sources of labor supply. We have found that centralized employment bureaus have worked out very progressive and satisfactory methods with reference to securing the most desirable applicants. This is done in a variety of ways, through written questionnaire, direct 35 personal examination, documentary evidence, close connections with promising sources of supply, such as heads of technical schools, technical periodicals, graduating class lists, visits to schools and colleges, newspaper advertising, comprehensive meth- ods of correspondence, employment agencies, etc. Mobilizing the labor market, then, is one of the chief functions of a properly constituted employment bureau. This careful study of the labor market gives wholesome, retroactive influences on applicants for employment. When it is known that the labor market is being carefully studied, that the right kind of sources of supply are being reached, a wholesome check is put upon the inefficients and those who should never present themselves for employment. d. Qualifications and records of applicants Equally, if not more important, is the necessity of a centralized employment bureau's having up-to-date service records for every employe in the plant. The life history of an employe as time goes on proves to be of the greatest service in many ways. Men are far more careful when they know they are being systematically and justly checked. Much waste in this way is prevented. When it becomes known that each weakness is evident, a wholesome, preventive check is established with reference to many forms of waste, friction, and injustice. At present it may be truly said that in many plants in the country, the employes are primarily in control of the employment situation. The machinery here suggested will reverse this situ- ation. Employes should be controlled, that is, wisely led. A service record is absolutely essential to the right kind of employ- ment leadership. We have found a number of firms carefully keeping such centralized service records. Among other things these service records, developed by a well- trained employment staff, will contain much valuable informa- tion regarding the different aptitudes of the employes. Hence such bureaus are capable of doing a great deal by way of helping employes choose the right lines of work. This is fundamental in an organization that is trying to build up a stable, effective work force, and is absolutely essential to efficiency in the case of youth. These records aid greatly in free, wise choice of vocation. 36 e. Selecting workers— Methods The successful selection of workers is perhaps the most diffi- cult task of the whole employment problem. It calls for the right personnel and the most carefully adjusted cooperative ma- chinery. Scientific employment demands the intelligent, sym- pathetic cooperation of doctor, employment supervisor and assist- ants, heads of departments, and all those responsible for the guidance and protection of the workers. Proper employment blanks, a good employes' hand-book, and a knowledge of the fundamentals of psychology will assist the employment manager greatly. There are many methods of selecting employes to-day — among them the old try out method, which is costly; the observational method, which is successfully used by skilled, experienced people; and psychological tests. Psychological tests are being used more and more by progres- sive employers in the selection of their employes.* The need for these tests is to measure ability, s.o vital in employing and promoting; to fix standard time of work operation; to measure attention, sight, delicacy of touch, and to detect fatigue, the knowledge of which is so important in reducing nervousness and ascertaining efficiency periods for work. f. The study of individual aptitudes The study of individual aptitudes in the up-to-date employ- ment bureau is receiving much attention. Nothing will do more than this study to eliminate undesirable employes. Proper data which can be gathered only from the right kind of application cards, from the cards of the eligible applicants, from the cards of those actually employed, are of the greatest importance in a scientifically organized industry. This means, of course, that careful, general employment blanks should be prepared and special blanks for specialized de- partments. It calls for careful, direct examination by competent clerks of applicants coming to the firm, a careful method of re- cruiting, and a careful follow-up system after employment. ♦For an account of methods of selecting employes by means of quantitative determinations, by Professor Walter Dill Scott, and of the new bureau of research, under his direction, for working out ' scientific tests for selection, see Appendices I and II, pp. 94, 97. 37 At present, fitness for work is not generally known. The wasteful practice of being discharged from one department often means a loss of efficiency, as does the entering of another depart- ment by the unknown person where he is as much out of place as he was in the original position. The waste resulting from the costly turnover is too well known to need further emphasis. It is generally recognized on all hands as one of the most serious sources of loss to the industry. A centralized bureau would do much to check this needless waste. g. Analysis of work requirements Another important function of such a bureau is the study and gradual accumulation of information regarding the needs of the different departments, or what is commonly called job analysis. Placing or adaptation cannot be scientific without a thorough knowledge of the different work processes. This is one of the most difficult and fundamental parts of scientific em- ployment. It calls for a knowledge not only of the different pro- cesses and departments, but also of the possibilities of transfer and normal lines of promotion. A centralized bureau having such definite information and interested in the welfare of every employe, always striving to develop the men, will study and work out records of the differ- ent departmental needs and the definite lines of promotion. There is much complaint in work relations, and much of it justified, because the workmen are held in positions too long. Promotion is several fold — advancement in wage, advancement in position, or recognition in other ways. Under present de- centralized employment systems, it is sometimes regarded as not good form for one foreman to "steal" men from another de- partment. This choking process, which is clearly traceable to the present decentralized employment and promotion machinery, makes men feel that there is little use in striving, and hence it lowers efficiency. Hope is gone. A centralized bureau will do a great deal to reduce this source of waste. It is difficult to over- estimate the business value of the motto "Merit will win." There should be instilled in the minds of all the employes the fact that the company is determined to practice the principle of full, honest promotion on the basis of known merit. But to know the promotional values of the various positions 38 presupposes a knowledge of all the various work needs. This analysis and classification of all the occupations is one of the greatest opportunities of a centralized employment bureau and is absolutely essential if we ever are to have the scientific adaptation of tasks to aptitudes. h. Educational value of the ]ob The educational value of the job is a most vital factor in the training of the average workman. It becomes highly important, therefore, that the educational value of all the operations and processes in industry should be known. These processes are being carefully tabulated, coordinated, analyzed, and utilized con- structively. From this material thus collected some of our best educational manuals in industrial plants have been built up. The progress of the young worker is carefully watched and examination made to determine upon the thoroughness with which he masters each detail connected with his position. In this way less and less supervision is required as experience is gained and, as a conse- quence, the value of the apprentice as he advances becomes per- manently increased. Ability is clearly discovered and developed in this way. The ability to carry responsibility is the goal to bear in mind in the supervision of all juvenile workers. One of the chief tasks of scientific employment, then, is to gather a fund of useful information along vocational lines that will be helpful for all the workers and that is of inestimable value in the case of apprentices. i. Control compensation A well-conducted employment bureau will make a careful study of the various aspects of the wage problem, know the market rates for the work in the various departments and be familiar with the different aspects of the wages problem, which is vital to a wise handling of the human factor. There are many problems connected with wages that need a central oversight and direction. The right kind of employment bureau will become the repository of a great deal of information concerning the varied aspects of the wages problem, and especially its social implications. 39 j. Promotions The educational and business value of promotions in any in- dustry is great. A scientifically organized employment bureau should study carefully definite lines of promotion both within de- partments and between departments throughout the entire in- dustry. Some of our most progressive employers are now having careful analyses made of the occupational processes for the purpose of developing youth and men through these various pro- cesses. This is true of the Dennison Manufacturing Company, the National Cash Register Company, some of the automobile com- panies, of the Plimpton Press Company, the Fore River Ship- building Company and others that might be named. One of the gravest problems confronting industry is this matter of scientific, just promotion of men. If the values of the different work needs and occupations are once understood and scientifically tabulated, with trained, just leaders, promotion will automatically take care of itself. Who shall finally decide on promotions is a grave matter and calls for the most careful consideration. One of the great ad- vantages of a centralized employment and service bureau is, as just indicated, to keep careful records of employes, so that the foundation for intelligent promotion may be at hand. k. Discharging employes It is through the power of hiring and discharging that many of the most important and difficult labor problems arise in in- dustry. Under the old methods, hiring and discharging have been regarded as necessary functions of department heads, foremen and leading assistants under foremen and superintendents. To- day, however, under the most scientifically organized industry, the whole methods of leaving complete power in hiring and discharg- ing of men in the hands of department heads is being seriously modified. Hiring, as already pointed out, is composed of several stages — ^building up an available source of labor supply, that is, knowing the labor market; selecting from this available supply the desirable candidates ; placing them in their various positions and trying them out, perhaps, through a period of probation and, if they do not fit, discharging them. Foremen and those directly 40 over workers should have the right, before a final hiring, to inter- view applicants and advise the employment bureau authorities, but they should not have the right to reject applicants, and in the case of men who are actually hired for a time, foremen should not have the power of final discharge. Final discharge should reside in the employment bureau. This gives the employment bureau the opportunity to place workmen who are not qualified for one department or position in another, where they may be of great service to the company. Discharge is a grave matter. It is receiving more attention to-day than ever before. If people are scientifically selected and scientifically hired, discharge becomes increasingly a matter of grave responsibility. Causes for discharge, therefore, should be very carefully analyzed and understood. No one who has been carefully selected for a position should be discharged without a very clear case. It many times happens that an employe not well qualified to work in one department, or under a particular foreman, sub- foreman, or leading man, will prove to be a valuable asset to the company in another department. The centralized employment bureau should be so organized and managed as always to have in mind the business as a unit, and this, experience clearly teaches, has not, up to the present time, been possible for the foreman always to do. In the more scientific modern methods of handling labor problems what we want is not the old methods of control over men. Fear is the fundamental weapon in the old conception of the power of discharge. What we want is to release energy, develop a sense of genuine fitness, and have men control them- selves. This new attitude toward placing and discharging, under adequate leadership in foremen and superintendents, will help remove many of the serious difficulties now in industry. The recommendations suggested, therefore, with reference to the final hiring and discharging, all point in the direction of a genuine cooperation between the employment bureau and the diflferent responsible heads of the various departments of a firm. 1. Records and analysis It has been truly said, "This is the day of records." No one any longer questions the desirability of scientific record-making 41 in connection with production and sales. Similarly in the delicate field of human relations the experience of an establishment should be recorded in detail and future policies based on what a study of this experience yields. How valuable such a practice is has been discovered by some industrial path-finders. For instance, the Dennison Company through its Employment Department in most intelligent manner sets down facts concerning the employes who pass through this office and utilizes the story which these facts tell for constructive suggestions as to future policy. Like- wise the Joseph & Feiss Company can prove the advantage of its service work through well-drawn charts, based upon careful analysis of its records. It has graphically shown the increase in productivity and wage and the reduction in manufacturing cost and daily working hours over a five year period under a service system a large- part of which is concerned with enabling the worker physically to stay on the job day in and day out. Other firms also are trying to reduce the number of accidents, sickness, absence, and numbers quitting from an analysis of their figures on these subjects. In each case can be traced the de- partment where some undesirable condition obtains, or some executive who is responsible for it. In one instance, where the em- ployment department is of comparatively recent origin and where the employment manager has to be more than tactful in dealing with foremen and higher officials, and the relation of his depart- ment to the management is largely advisory, accurately kept figures on the causes of the turnover are more eloquent in pointing out conditions that need improvement than anything which he might otherwise say; moreover, they are irrefutable as to fact. 3. Personnel and Supervision of Employment Bureau The prime essential in any scientifically constituted employ- ment and service bureau is properly endowed, well trained and adequate, efficient leadership. We may have the most inspiring schemes on paper and an elaborate system with inventory and equipment representing much material and a large sum of money and still the system be unfinished and wasteful if we do not have the right kind of leadership. Desirable physical equipment in any industry and right processes are a great asset, but the right qual- ity, training, experience, enthusiasm, in a word, the right per- 42 sonality of those in charge of an employment bureau, are abso- lutely essential. The supervisor of an employment and service bureau should be immediately under the direction of the President. In posi- tion, power and responsibility he should be on a par with the vice-presidents, general managers, yard superintendents. He should be subordinate to no one but the president. a. Qualifications of those in charge ■ The staff of a well constituted employment bureau calls for a well qualified director to have general oversight of the work. No such important office is scientifically equipped unless it has an understudy competent to carry on the work of the chief. The very nature of the superintendent's position will call for his frequent absence from the bureau. He will often render a greater service to the employes by being away from the bureau. Hence he should have an able assistant director, a man competent in case of need to take his place. In addition to the chief officers there should be a sufficient number of interviewers, clerks, stenographers, and investigators when necessary, so as to keep the bureau at full efficiency all the time. b. Responsibilities In emphasizing the significance of the personnel of such a bureau as that in mind, it must be remembered that in this bureau should be deposited, or otherwise cared for (1) A careful study of th« labor market and an analysis of all applicants. (2) Records of physical condition of all applicants. (3) The records of all employes in the business. ^ This cen- tralized knowledge of all workers, which^ should constitute a complete service record is, in itself, a' large task. These records should be kept up-to-date, and, Call for constant oversight. (4) An analysis of the qualifications for the different branches of the work through the industry, which should be carefully studied and standardized. The scientific knowledge of all jobs and their requirements is one of the most important needs of the Bureau and involves a great deal of labor. Such knowledge is an essential foundation for handling justly questions of wages 43 and promotions, and is a great help in the removal of friction and costly annoyance to those responsible for the work of others. (5) A careful and accurate record of all employes entering and leaving the plant. An accurate knowledge of the turnover is vital. (6) Cooperative, constructive work in matters of discharge. (7) Close knowledge of the business. The employment chiefs should be in close touch with all work conditions, with the fore- men, and every phase of the business. (8) Close touch with all advance movements and helpful literature dealing with labor problems. (9) Close relation with outside activities affecting duties of the employment manager, particularly such movements as the activities of the Employment Managers Association, The Na- tional Association of Corporation Schools, and the movements for Safety First and health. These and other duties logically falling within this depart- ment give clear emphasis to the significance of the right kind of executive ability and personality needed for the direction of the Employment and Service Bureau. c. Joint advisory employment and service board The fundamental idea of a central employment scheme is efificiency through cooperation. After appreciating the possible gains from a well-equipped, centralized bureau and the selection of the staff, the next problem of chief practical importance is how to gain this cooperation which is essential to securing a comprehensive and effective system. This is one of the most important problems to be kept constantly in mind. The changes recommended will naturally cause doubts in the minds of a considerable number, although the report bears ample evidence of the advantages of centralized employment. That such a new centralized scheme, however, will come into conflict with de- partmental, heads and foremen or assistants, not realizing that the suggested ' changes will be a benefit to the entire force, is cer- tain. The creation of a Joint Advisory Employment and Ser- vice Board for the purpose of guidance and cooperation will be of great assistance. Such boards are now operating in many places. Such an Advisory Committee or Board should be made up 44 after the most .careful analysis of the most available men in the various departments where employment problems are most vital. Such a Committee wisely organized and efficiently directed, holding regular meetings at fixed periods, will greatly aid the Bureau through wise counsel, advice and suggestion. Having as its first interest the welfare of the entire work force, it would act as a plant clearing-house and would do much to train all those holding positions of responsibility along, right lines with refer- ence to the employment problem. It would be a bulwark against unjust attacks, its chief function being to secure efficient team- work between all the jdepartments regarding the most vital as- pects of the labor problem. II. JOB ANALYSIS Thorough job analysis includes a careful study of every kind of occupation, both within the industry itself and in relation to the life of the employe outside of his occupation. In this way the total result of work analysis gives a complete view of the whole man. The significance and service of job analysis is being rapidly appreciated. Job analysis is carried on for varying rea- sons in diflferent firms.* In some places it is carried on in order to arrive at satisfactory wage schedules, initial and progressive. In several companies many work positions have been carefully analyzed and classified. The job duties have been briefly but fully defined, and a range of wage or salary prescribed with reference to definite periods of time. In the case of the more imr portant positions, only minimum and maximum rates are pre- scribed. From time to time those schedules are revised to meet changing conditions of the work and of the labor market. Such procedure aids in measuring productivity and gives a basis for rewarding workers. Outside experts are often employed to help in this work of job analysis. 1. Selection and Adjustment of Men to Jobs Job analysis is also of great service in the problem of original selection. When the employment bureau, which is responsible *.Job analysis in connection with health problems is treated under Health, p. SO. 45 for selection, has complete data regarding requirements for the different jobs, these facts naturally direct those of the employ- ment bureau responsible for selection to look for the required qualifications in the applicants. Job analysis is made under the direction of the employment department to enable the employ- ment manager and educational directors to select employes more certainly, and to develop and protect them when placed. In one firm where it took a workman from one to three years to become proficient in a certain job, it was found as a result of job analysis just why it took so long. It was pointed out by an educational expert how the period of preparation could be so guided that the operator could become proficient in a much shorter time than was then being required at the job. The job was one in which mechanical skill constituted about three-fourths, and non-technical skill about one-fourth. Such analyses are of very great value. They point out to the employer just what preliminary training is necessary for different kinds of work, and he is then in a position to cooperate with educational agencies to have the operator trained in the shortest time possible. Job analysis helps to discover and determine lines of promo- tion. It enables a concern to know the possibilities of work alternation or transfer, and thus prepare the way for utilizing in one department laborers who may not fit well in another de- partment. It is also of the greatest service in getting data and outlines- for training courses ; that is, it is of first importance in educational work. In one large manufacturing establishment, where they had begun job analysis in the different departments, the following data were taken from the cards covering the analysis of the power- house work, so as to reveal the logical sequence of promotion therein : a. Coal handler. b. Ashman. c. Stoker. d. Boiler cleaner. e. Water tender. f. Wiper. g. Oiler. h. Water operator. 46 i. Steam and air operator, j. Switchboard operator. ' k. Second engineer. 1. First engineer. 2. Results of Job Analysis The helpful, constructive results gained from job analysis may be summarized as follows : a; It is a great help in initially selecting employes. b. It gives necessary data for outlining to the beginners the possibilities of advancement and indicates when wage increases may be expected, and what the anticipated maximum salary may become. c. It is of great assistance in transferring those not adapted to one kind of work to work that they can do best. d. It forces business to open up channels for promotion. It almost always enables a firm to get help from within. Rarely is it necessary to go outside for skilled workmen. When requisitions come for better men, the positions are filled by moving others up. This means in each transfer really filling two positions; one, the higher vacancy, and the other, the position from which the promoted man is taken. By this process, the outside market is relied upon for filling only the low-grade positions in each case. e. It helps standardize wage and salary schedules and thus is a vital factor in regularizing work,' It stabilizes the work force. f . It is the best method for discovering the educational values of the work contents of the different jobs. g. It aids in the discovery of occupational dangers. Such de- tailed attention to jobs cannot help but reveal occupational health hazards, accidents, diseases, and all conditions harmful to health. h. It is a great aid in the wise and just handling of grievances. Scientific job analysis is one of the best means for preventing grievances. Manyof the disputes in industrial plants arise over injustice in wages, promotions, transfers, qualifications for parti- cular jobs, etc. The only way to settle a dispute scientifically is to know the facts absolutely. Job analysis will fortify a com- pany with more scientific data essential to the proper settlement of disputes than almost anything else. Job analysis, thus conceived, is a vital part of a scientifically constituted labor bureau, in that 47 it serves as a clearing-house of information useful to all. It furnishes the foundation for trustworthy advice and sound guidance. III. HEALTH 1. Need for Health Supervision Within the last five years systems of health supervision have become general among progressive employers. It has been found to be better policy to select a worker physically fitted for the particular job he is to fill and to keep him well and free from accident than it is ,to have him quit because his health has become impaired in the course of his work, or because he has suffered an accident, or because he is not suited to the kind of labor he is doing. Again, complete health supervision is merely an extension of the effort to reduce accidents, made necessary for the most part by Workmen's Compensation laws. Moreover, under the stimulus of growing public interest in matters of health, diseases arising out of and in the course of occupation (recently interpreted by the courts in rather liberal fashion) are gradually being charged against the industry just as accidents have been. In instituting physical examinations and installing the medical machinery for accident reduction and treatment, it is being found advantageous also to utilize this machinery primarily for preventing health deterioration, particularly to the end that the worker be kept in as sound condition as possible, considering the fact that only a very small percentage of human beings are free from physical defects. This protection can best be assured by seeing to it that the worker is not assigned to any duty which will prove injurious to him, his physical condition and the require- ments of the job having been ascertained in advance. The advantages of a good system of medical supervision may be summarized as follows: a. It insures a better grade of workmen initially and raises the physical standard for the whole force. b. It keeps the plant clear of contagions and epidemics. c. It insures more continuous and intensive productivity, due to greater physical endurance and reduction of absence. 48 d. It reduces the turnover, men not quitting on account of physical misfit or illness. e. It reduces the amount of accident and illness. f. In cases of accident it prevents claims for injuries in- curred previous to present employment. g. It raises the intelligence of the worker in matters of per- sonal and social hygiene * and teaches him to cooperate in safety and health matters. One large corporation, although otherwise in the forefront of industrial practice, has been opposed to physical examinations and strict medical oversight. Its progressive employment manager has been studying the turnover carefully and has found that dur- ing the past year 13 per cent, of the men leaving (probably a larger percentage for women) went on account of ill health or because their health demanded outside work. His attention has naturally been turned to the necessity for selecting men and women more carefully for the work which they are to do; and as an aid thereto has found it necessary to ascertain just what qualities, physical and otherwise, each particular job requires. To meet this need a large number of the positions in the manu- facturing division have been roughly analyzed. So, in spite of the firm's reluctance to adopt medical supervision, its own records of the turnover have demonstrated its advisability. In a preliminary report just received from a large corporation which is only beginning to centralize its employment problems and which exercises no adequate medical oversight over the health of its employes, over 10 per cent, of the men leaving the com- pany during March, 1916, went on account of sickness. Moreover, in the case of accidents, it is largely the new man, not to mention the man who cannot speak English, the low- priced man, the casual and unskilled man, who ranks highest in frequency of mishaps; which fact at once suggests a causal re- lationship between this group of workers and the lack of proper selection, placing, and instruction of new men for safeguarding themselves at their work. Moreover, in the case of "repeaters," i.e., those who are injured more than once, it is necessary to know whether these men are put at work for which they are not .*For an illuminating discussion of the relation of home conditions to industrial efficiency, see article by Miss Gilson, of the Joseph & Peiss Company, Appendix IV, p. 120. 49 fitted, whether they are protected sufficiently against accident, or whether they, are inherently unable to avail themselves of the safety aids at their disposal. 2. A Health Program Medical supervision may be accomplished largely by the following means: a. Physical examination. (1) All new employes. (2) All old employes. (3) Periodical examination. (a) Varying with different processes or different groups. (a') Those in dangerous processes more often, (b') Those under observation and treatment more often. b. Knowledge of the working conditions of the business. (1) Medical knowledge of the physical requirements of the trade processes. (2) Transfer of workers when misplaced. c. Preventive and prophylactic measures. (1) Immediate attention to all physical defects found upon examination. (2) Immediate attention tg all employes incapacitated by illness or injury. (3) Constructive advice and instruction in hygiene and safety. d. Perpetual inspection and oversight of men and plant condi- tions, including follow-up of all classes of workers. 3. Physical Examination of Employes The medical examination is the basis for all accurate work along the line of health conservation, and its object is to discover any defect which may unfit the employe for his present occupation or render him liable to future disability, and to aid him either to correct such defect, if it is correctible, or else protect him- self against intensifying it. so The numbers rejected or given employment conditional upon medical treatment vary with different companies, depen^mg on their available source of labor supply, the seasonality of the busi- ness, its dangerousness, the compensation laws of the state, the health ideals of the firm or the doctor in charge, or other factors. The most prevalent practice among progressive establishments seems to be to give a thorough physical examination and to become accurately informed as to the condition of the applicant, but not to reject wholesale, especially those with non-prohibitory de- fects. The point emphasized by these firms is that, in the case of employes taken on while suffering from temporary defect or even from some chronic disability, strict and continual supervision must be exercised by the company to see that its correctional in- structions are carried out. The Avery Company has made some interesting studies of workers with grave physical defects, who, with wise placement and careful watching, have increased the extra hazard in accidents only very slightly. The physical survey of the entire working force is likely to be made when medical examinations are required for the first time, as in the case of the Avery Company and the Eastman Kodak Company, and periodically thereafter. By comparing the physical status of employes from time to time, a company can conscien- tiously work toward raising the health standard for the whole establishment, and consequently the output. These examinations usually bring out the , almost universal neglect of the teeth, which accounts for rheumatism, indiges- tion, and other disorders ; also the prevalence of defects of vision and hearing. In one plant over 19 per cent, of the employes ex- amined during the year were found to be suffering from defec- tive eyesight and deafness. Also, in rejecting applicants, for work over a period of five months in 1915-16, one establishment turned away 112 men (over one-third of all rejected) on ac- count of niissing phalanges — a sad commentary on the wasteful maiming occurring in industry. 4. Job Analysis as an Aid to Medical Supervision An analysis of the various processes and positions is necessary before, any complete medical supervision is possible. It is iiii- possible to makeajudicious selection for the filling of a positiori without having a clear idea of what the operation or operations 51 consist of, and what qualities it requires, physical as well as men- tal and manual. There ought to be some reasonable assurance in advance that the applicant can stand the speed, exertion, nervous wear and tear, hours, temperature, and other conditions of employment. Of course, employment officers have always ap- proximated this in a rough way, but they sometimes wait until their records show a break-down of health on certain jobs before acquainting themselves with their work requirements. This should be anticipated. In talking with even enlightened employment managers it is evident that they do not always grasp the im- portance of careful selection, especially for those jobs that are in any way dangerous to health, until this is reflected in the turn- over. In the lead industries, where the occupational danger is great, it has been found that the men come and go with great frequency. In the case of a large rubber company which hired 12,000 men last year, it was found by the management, through an analysis of the turnover, that the high percentage of employes leaving was due in a large measure to the monotony of the work,' the men tiring of repeating the same operation over and over again, and going in spite of the high wages earned. The Dennison Company has worked out -specifications for' each job not within the so-called "skilled" trades, which includes the schooling or the sort of experience desirable for the posi- tion in question; the posture required of the employe, that is, whether the employe will be sitting or standing, stooping or walk- ing; the preferable age, weight, and height of an employe; whether the employe should be right-handed or left-handed; the starting wage ; the time taken by an average employe to earn an advance in wages ; the probable maximum earnings of the posi- tion, and whether the job is steady or seasonal. The Dodge Brothers Motor Company, it is said, has compiled a complete classification of factory labor, including the physical requirements of the trade. In order to get at just the requirements necessary for each job, a progressive establishment near Boston is working at the present time on a carefiil analysis of each particular job in its relation to each particular worker. This includes a careful study of homd conditions, temperament and age of the worker, methods of pay-' ment, all physical surroundings of the work place, such as ventila- tion and light, accessibility to toilets, rest periods, possibilities 52 of sitting-, noise, any nervous strain resulting from the nature of the work, and any other features which may make that job different from any other job. It is intended that this analysis show just the proper requirements for the best kind of worker on that particular job, and enable the employment department to choose that individual who will suffer least from working in that particular position, as well as to bring the best results in point of production. Throughout the country great interest is manifested in the possibilities of job analysis, from every point of view, although the physician has not been called upon as frequently as he might be in analyzing particular processes from the standpoint of safeguarding health and of forearming the employment depart- ment against unwise selection. Moreover, just as wide-awake companies conduct laboratory tests of their supplies to ascertain quality, or make chemical analyses of factory water and air supply, so adequate medical research of conditions in the plant should be conducted, as for instance, has been done in the case of the Portland Cement Company of Riverside, California, which has experimented on men and guinea pigs to find out what effect cement dust has on the lungs. 5. Transfer to Other Work A number of fi'rms transfer to other positions employes who are unsuited to the work they are doing, some of these occurring in cases where conditions of health are involved. One company found among its employes, truckmen and telephone operators with defective hearing, some with marked visual defects doing close work, and laborers doing heavy lifting who were ruptured or who had serious heart disease. These are just a few typical instances; to what degree such misplacements may contribute to accidents can be easily imagined. 6. Cooperation with Employes in Health Matters Although the unstinted cooperation of the person whose health is involved is absolutely necessary, the degree of coopera- tion met with by the company and its ultimate value will depend upon the following factors: a. The spirit in which medical supervision is undertaken by the management. 53 b. The character of the staif, and especially of the examining physician. c. The composition, intelligence, and loyalty of the workers. d. The ability really to maintain a high standard of health and attendance. It is a difficult matter, no doubt, for a company to launch upon a plan of strict medical supervision without incurring the suspicion of some employes, although membership in mutual benefit societies has accustomed employes to undergo physical examination. It is "up" to the management to pave the way by conferences, talks, and tangible guaranties of good faith, es- pecially in promising not to discharge those found with defects and to aid them in obtaining the remedial care necessary for their improvement or recovery. A number of firms report that the men have come to recognize the value of the physical inspec- tion service in keeping them informed as to their physical con- dition and in safeguarding their health. Above all, it is necessary to get employes accustomed to come to the medical department freely. In every establishment, in addition to accidents of importance, there occurs a large group of minor injuries, involving no loss of time, but which, if left un- treated or improperly handled, might become serious. Especially is this true in the case of small cuts, abrasions, punctured wounds, and foreign bodies in the eye, which for the most part lead to infection. Since the establishment of the medical department at the Eastman Kodak Company, in 1914, there has been but one case of infection in the many thousands of cases treated. The Joseph & Feiss Company goes further and prohibits any one from working with the slightest scratch, ache, or pain, or any indication of illness without first consulting the nurse. At the Cleveland Foundry Company the doctor is at present on half time, due to the efficiency of the safety work. In 1915, the company reduced accidents to joints to zero from 70 in 1913, and consequently reduced the cost of insurance. The necessity of getting the confidence and cooperation of workers in health supervision has .been emphasized; but first of all, in order to guarantee that this supervision be effective, the intelligent cooperation and approval of sub-foremen, foremen, inspectors, superintendents, and other officials is necessary. Just as the most effective safety work has been accomplished by the 54 getting together and working together of those higher up and those lower down, so the best results in the supervision of health will be attained cooperatively. It is gratifying to note that in the case of the National Cash Register Company- there is a large, newly appointed Committee on Health and Safety, consist- ing of over one hundred members.* Moreover, the best results will come when the men begin to work out their own health problems, after the manner of work- men's safety committees. Safety First must be converted into a Health First slogan, and it is becoming so under the spur of sys- tems of social insurance which individual firms are, through their own initiative, either inaugurating or extending. Only within the last few months confidential information has come from a large company of the Middle West which manufac- tures rubber products, to the effect that it has recently established a system of social insurance (consisting of service annuity, dis- ability compensation, and life insurance) and in connection there- with a Department of Health. "In providing these benefits," the Company announces to its workers, "the corporation is ex- panding its plan of developing the mental and physical efficiency and well-being of its employes, so successfully begun in the physi- cal examinations undertaken in 1914." Surgeon (resident and on call) and nurse, expert in occupa- tional disease and hygiene, sanitary engineer, safety inspector, first-aid men, foremen and workmen's committees are all needed to educate, to safeguard, and to prevent the break-down of health ; and above everything, there is need to instill among those con- cerned an interest in this movement. In this endeavor it will be well to co-operate with any public or private agency on the outside which is working toward the same end, especially ."u the locality where the workers live. * Photograph in N. C. R. News, November, 191S, p. 33. 55: ' IV. EDUCATION: TRAINING IN THE ORGANIC UNITY OF BUSINESS I. Introductory a. Education of employes, good business Education in industrial plants takes on many forms, and is carried on under a wide variety of methods. It is one of the most significant movements in the world of industry, and gives promise of rapid extensive and intensive development. The training of employes is "good business." This conviction is turn- ing our large corporate industries into veritable schools, colleges, and universities. It is already having a wholesome retroactive influence on our formal educational procedure in schools and col- leges, giving it a more concrete content and shaping up educational methods more in terms of vocational, business, and social values. b. Education for all employes This education and training of employes within industry takes on a wide variety of forms according to the local needs, ideals, equipment, etc. It includes training courses for executives, sales- men, office and clerical help ; it extends to the rank and file of workers — skilled, semi-skilled, and unskilled ; it is rapidly spread- ing to include the training of illiterate foreigners in English and the elements of citizenship, and it includes many well regu- lated apprentice courses. This educational work is sometimes extensive, covering a wide variety of subjects and lasting over a long period of time. It is more often intensive, confined to a homogeneous group, exhibit- ing a common need, and is based upon definite, well-formulated data gathered by teachers familiar with the details of the in- dustry and trained in pedagogical method and procedure, as in the case of the American Steel and Wire Company, the Ameri- can Telephone and Telegraph Company, and some other training classes. c. Some prerequisites of corporation education Education is a costly pi-ocedure. It means valuable space and often calls for costly equipment, as in the case of well designed 56 and properly equipped apprenticeship shops. The expense laid out on a proper teaching force mounts up rapidly. Well-trained employes are valuable assets. Hence the growing care in selecting those who are to undertake the educational work. This pro- cess of careful selection is becoming more and more well defined. It includes physical and medical tests to see that the man is in good bodily health. As in the case of selecting salesmen for training courses, it more and more resorts to tests of a psychologi- cal and vocational nature. All this physical, mental, and vocational testing, preparatory to the training work, is for the one specific purpose of getting the right man on the right job. There is a wide interest in tests in many places. The Presi- dents of some large concerns in Ohio and Illinois are profitably using various types of formal testing as part of the educational work. Experiments of this nature have been carried on among employes in various establishments — electrical apparatus, cloth- ing manufacture, button manufacture, telephone operating, type- writing, inspection of balls for ball bearings, and salesmanship in various lines of industry. 2. Instruction and Training of Executives Every line of business is seeking more able leadership. In our modern industrial organizations the commanding officers are as important to the success of their enterprises as the officers of our army and navy are to war and defense. Our industrial lead- ers need training as much as our army officers. The realization of the organic idea of industry, the development of cooperative policies, the increase of human efficiency and the conservation of talent depend largely upon the attitude and ability of the leaders. Gantt has said that "to train and select leaders is the industrial problem of the day.'' As never before in industry, the discovery and training of executive ability within the business, and the ap- propriation of young talent from the schools are being emphasized. For the purposes of this section of this report, the term exe- cutive is made applicable to apy person in authority over another or responsible for his work or conduct, anyone, in short, whose duties include the discovery, selection, instruction, training, ad- vancement (protection), or discipline of any other person. 57 a. Qualities of executives and conditions of their training Qualities of executives In selecting and developing leaders an appreciation of the fac- tors or characteristics essential to efficient, successful leadership should be clearly formulated and carefully borne in mind. The essential characteristics of the successful executive may be said to fall under the following headings : (1) Character, integrity, resourcefulness, initiative, responsi- bility. (2) Imagination. No man is a true leader who cannot project himself into the future. He must have ideas and ideals in order to lead. (3) Judgment. A man must have perspective to see how many of his ideals are workable. He must have a scientific atti- tude, — sound common sense. (4) Courage. Many men with good imagination and lofty ideals fail because they lack true courage. They are timid, or they try to please everybody. Hence they do not go forward as leaders. (5) Efficiency. This comprehends the habits of hard work, thoroughness, and constant accuracy. True efficiency comes from native talents for a particular line of work, plus special training, plus experience, plus devotion to the task, plus generosity in the work, plus conscience. (6) Understanding of Men. This is more than mere knowl- edge of men. This is the most crucial test of genuine execu- tive ability. Executives must not only know human nature, have a knowledge of men, but literally understand them, be able to sympathize with them, put themselves in the place of those under them, and exercise a "pull" from the bottom upward, and not a "drive" or "push" from the top downward. This under- standing of men and the wise leadership of subordinates are the real tests of organization fitness. (7) Sound knowledge of the fundamentals of the industry and organization of which the executive is a part, and a knowledge of business or trade in their largest aspects. Many executives are inefficient and get into all sorts of trouble because they are not properly trained in the business in which they are to issue and execute orders. 58 (8) Skill, which comes from the technique of practice and of business experience generally. (9) Courtesy, Men and women are more and more grasping the business value of fair, courteous treatment. The response to the appeal to high ideals is definite, but discourteous treatment reaps unsatisfactory results. "Industry awaits the administrator who shall be all that a gentleman should be : efficient but humane, adroit but honorable, a lover of his fellow-men as well as a leader of them ; and who shall use his power with gentleness, and his wealth with imagination, and shall illuminate the world of private property with light from the far-away interests of the heart." * If this be a correct conception of the essential factors of a successful executive, it should furnish a standard in discovering, selecting, and developing executive organization, and point out methods of instruction and educational procedure. The head of a large industrial concern must first define in his own mind the product he desires from the various duties to be performed. In sizing up men, especially young men, for training and promotion to executive positions, he is exercising his most fundamental and vital function. The selection, training, and functioning of executives determine the entire organization. Conditions essential for training executives In the training for leadership, certain fundamentals are es- sential. They may be briefly stated as follows: (1) Educational work requires time. It costs in real effort; hence men must not be expected to do effective educational work when practically exhausted as a result of the normal day's duties. (2) Equal, fair opportunities are fundamental conditions for the selection and development of leaders. Any favoritism, from whatever source, is fatal in educational procedure. (3) The hope of advancement is the greatest stimulus in edu- cational work. If the management will clearly chart the way, and supply the hope of a fairly definite reward, the men in posi- tions of responsibility will, as a rule, assume the greater share of the burden of their own development. * Jones, The Business Administrator, p. 208. 59 b. Sources of supply Every industrial organization is itself the best source of supply of executives. Importing talent, "stealing trained ability" from other plants, is no longer regarded as "good business." Every industry is, or should be, a school for the discovery and training of varied human talents, including managerial ability. It is worthy of note that under the German system of training in in- dustry 65 per cent, of the men in technical and managerial positions in the foremost industries come up from the ranks. Up to the present time in the United States, however, there have not been enough men of managerial ability discovered and developed in industry itself to supply the demand, and schools and colleges have furnished many executives to industry either with or without an apprenticeship in the business. In general, 'it may be said that the higher executive positions are being to greater and greater extent filled by men from technical schools after a brief course of training in particular industries, while the so-called non-commissioned officers of industry (foremen, as- sistants, inspectors, and the like) are largely recruited from the ranks. This group of subordinate executives is the chief concern of training. What the schools and colleges are doing to prepare men for leadership in industry is discussed later in this section. c. Methods of training executives Having in mind, then, the characteristics of a good executive, and remembering that the chief motive in training executives is efficiency through the hope of advancement, and that the logical source of supply is within the industry itself, the methods of training are next in importance. Training for executive responsibility is peculiarly twofold: (1) training iov job fitness; (b) training for organization fitness. The latter is more difficult and important than the former. Many foremen are good machine shop heads, good blacksmith shop heads, good foundry foremen, etc., but are wofully weak when it comes to a knowledge of the value of the right relation of their departments to the entire business. They are not trained in organic unity; they do not fit into the organization. The Joseph & Feiss Company especially emphasize training for organization fitness and other companies, such as the Plimp- 60 ton Press and the Dennison Manufacturing Company, recognize the need of foremen who will fit "into the spirit of the place." In a number of progressive firms men are being trained in this twofold sense. The method used is the practical-theoretical method; that is, theory deduced from first-hand knowledge of the industry. One of the best illustrations of this method is the successful training course given to those in responsible positions by the American Steel and Wire Company.* Several other companies are carrying on similar work for the men at the top, and all declare this to be essential under modern conditions if the best results are to be secured. The regular wage and the actual traveling and living expenses incident to these training courses are cared for by the companies. d. What schools and colleges are doing to train executives for industry For managerial positions, especially the higher positions, men are often chosen rather for their general intelligence than for technical skill. College men are said to excel in the ability to meet and handle men, qualities invaluable in executives. Bright young men chosen by educational and employment managers from among the graduates of technical schools and colleges after a short course of instruction in a particular business and a try-out in the departments for which they appear to be particularly adapted, rise rapidly to positions of responsibility. The student training classes of the Westinghouse Electric and Manufacturing Company and of the Western Electric Company are good examples of this kind of training. While not intended exclusively for the development of executives, these courses fur- nish many trained men for managerial positions. The Westinghouse student training classes receive annually about one hundred graduates of technical schools, chosen after personal interview and with the approval of the education com- mittee, together with a few special students of approved qualifica- tions and a few foreign students selected on the recommendation of the export department with the approval of the Vice-Presi- dent. These students receive a year's general class instruction, * For a detailed account of this course, see Appendix V, p. 133. ' 61 factory and shop experience, and special training in chosen de- partments. At the conclusion of the course they are given posi- tions in the line of work for which they seem best adapted.* The Western Electric Courses for graduate students and selected employes of the Company follow much the same plan. The course is definitely understood to prepare for advancement and not to train hand workers. Students are rated on interest, application, aptitude, confidence, aggressiveness, tact, accuracy, speed, and personality, and the instructors are requested to pass upon the students' ability to direct or supervise the work of others. Colleges and technical schools are making some beginnings in the definite instruction and training of students for managerial positions. For instance, Dartmouth College in the current year has offered a course in the Amos Tuck School of Business for employment managers, in cooperation with some of the big stores of Boston and the Boston Vocation Bureau, including sev- eral months of actual practice in the cooperating concerns. t During the acadenjic year 1915-16, there has been given in Boston, in the University Extension Commission courses, a series of lectures on "The Human Interpretation of Industry," by Pro- fessor H. C. Metcalf.t of Tufts College, supplemented by con- ferences throughout the course. § Among those attending was a number of men and women who hold supervisory positions in the business world, among them employers and their immediate assistants, employment managers, foremen, industrial nurses, in- vestigators, and- others who come in first-hand contact with in- dustrial problems. The Bufifalo Chamber of Commerce, recognizing the need of training industrial managers in the art of handling men just as teachers are trained in the art of handling children, has proposed a plan for establishing a College of Industrial Engineer- ing. Under this plan the University of Buffalo would furnish equipment for instruction, and the business houses, factories, and shops would give opportunity for clinical practice, so to * For an additional statement regarding this training, see Appendix VI, p. 135. t For a revised outline of this course, see Appendix VII, p. 137. t Chairman of the Committee on Vocational Guidance of the National Association of Corporation Schools. § A synopsis of the main subjects covered in this course is to be found in Appendix VIII, p. 139. 62 speak: The courses would be open to students of the University and to foremen from the factories, and the suggestion is made that business firms might profitably furnish scholarships to promising students. Instruction would be given by the uni- versity faculty and special lectures by experts from the business world. The proposed course includes the following topics: Experimental and applied psychology. Industrial hygiene. History of apprenticeship. Sociology.- Industrial relations. Industrial law. Factory organization. Business administration. Shop management. Distribution and traffic. Courses somewhat similar to this proposed course are given by the School of Business Administration of Harvard Univer- sity, the Wharton School of Finance of the University of Pennsyl- vania, and the College of Engineering of Cornell University. The alternating cooperative plan of the University of Cin- cinnati, training men for rapid advance to positions of responsi- bility, is too well known to need more than mention. The National Cash Register Company has a similar arrangement with the Cincinnati High Schools. The same plan has for some years been successfully carried out in Fitchburg, Massachusetts, the high school cooperating with the Simonds Manufacturing Com- pany and other firrhs. From the students who have had this training, the cooperating industries are said to select foremen in many instances. Other cities practicing the high school cooperative plan are Providence, R. I., Chicago, 111., Springfield, Vt., York, Pa., Lan- sing, Mich., and Solvay, N. Y. The Minneapolis Survey recently made by the Society for the Promotion of Industrial Education recommends technical courses in the regular high schools and college courses so planned as to prepare students for rapid advancement in industry. 63 e. Training of employes for promotion to executive positions Since the chief source of supply of executives especially of the so-called non-commissioned officers of industry, must prob- ably always be in the ranks of industry itself, the training of employes for promotion to these positions is of paramount impor- tance. Dockrell says, "There is only one way to handle men and that is to help them. And you cannot help them if you do not know more than they do. . . . There is no royal road to power except plugging" ; and it is the man who takes the trouble to know more than his fellows who rises to positions above them. Many plans are being tried for offering to the am- bitious "pluggers" the chance to advance. In Minneapolis, by means of agreements with various industries, the Dun woody Institute is offering evening industrial promotion courses to em- ployes of the cooperating companies. The courses will include plan reading, estimating, and interpretation of specifications for building trades, machine and architectural drawing, and applied design. The college of engineering of the University of Minne- sota is offering two and three year evening courses, also for men in industry. In many places employes are availing themselves of continua- tion schools, Y. M. C. A. courses. University Extension courses, ahd promotion classes within the works. The "Flying Squadron" plan of the Goodyear Tire and Rub- ber Company, while designed primarily for the training of men to fill any vacancies that may occur, has for its secondary object the supplying of foremen and other executives as the need arises. The men chosen for the Flying Squadron are given courses in English, mechanical drawing, economics, management and rubber manufacture. The object is to provide a good techni- cal and general background. The understudy system in vogue among railroad companies is one of the best means of supplying executives through promo- tion. Delano says, "Once the manager feared to lose his posi- tion if he familarized another with his duties — today leaders recognize the need of training understudies." Railroads have taken the lead in training their own men for positions of leader- ship. They have "available more human material, trained as 64 understudies to numerous executive offices, than the average mer- chant or manufacturer." "Young men are taken into the organi- zation of the railroad and trained gradually to assume the duties and responsibilities of higher positions." The Fore River Shipbuilding Corporation has recently in- augurated the understudy plan in all its departments, each of the chief executives of the firm selecting a man to be trained in his work. The United Cigar Stores Company trains its employes in the handling of men and places great value upon ability of executives to build up the men below to be ready for responsible positions. The "three position plan" of promotion as outlined by F. B. & L. M. Gilbreth, makes each employe in any plant a member of three groups. He belongs to the group next higher up as a learner, and part of his time is spent in preparing for promo- tion to that group. He belongs to the group lower down as a teacher, and part of his time is devoted to instructing someone in this lower group to take his place. How long a man stays in this working group depends largely upon how soon he can train a man below him for his position and receive training him- self for a position in the next higher group. f. Training of employes already occupying executive positions for greater efficiency As Mr. Dietz of the Western Electric Company says, it is as important and difficult to keep educated as to get educated. Under our rapidly changing industrial conditions it is increasngly neces- sary for men in executive positions to keep up with the industrial procession. They must therefore be constantly in training, not only for promotion, but for greater efficiency in the positions they occupy. In a campaign of education the greatest benefit to a firm will come in the least time and with the least effort through the training of those who supervise and plan the work of others. "Their rulings, constructive or destructive, may be multiplied as many times as there are employes in their charge" and "the suc- cess of a business enterprise may be to a large extent in their control." If the executives of an organization were carefully trained for their positions and kept in training, there would be less need 65 of the efficiency expert from outside to diagnose and treat the ills of industry. The bewildering variety of plans and of courses for the train- ing of men already holding executive positions is only suggested by the following illustrations: (1) Courses for foremen, such as the course given by the Goodyear Tire and Rubber Company, two hours per week, and including business and shop arithmetic, mechanical drawing, ■ economics, methods of management, and rubber manufacturing practice. (2) Courses for buyers and department managers, such as the course given by the J. L. Hudson Department Store. (3) The Lowell Institute School for industrial foremen. (4) Y. M. C. A. classes and clubs for foremen, such as those provided in Cambridge, Massachusetts. (5) Evening classes for foremen in colleges and universities, such as those oflfered in the University of Minnesota. (6) The Young Men's Christian Association has just an- nounced a new course on the "Human Side of Engineering." The course has been approved by a large number of engineers and is to be incorporated with the curriculum of several engineering schools. It has been formulated on the basis of the growing de- mand on the part of business men for such opportunities for train- ing their leading men along the lines indicated. (7) A course of training has been suggested for foremen, leading men, and others responsible for the protection of sub- ordinates in the shipbuilding industry with a view to creating a new spirit of cooperation, fellowship and loyalty.* (8) Classes for instructors. The American Telephone and Telegraph Company maintains normal schools for the instruc- tion of instructors and the standardization of the work of the instruction stafif. (9) Such auxiliary and supplementary means of instruction for executives may be mentioned as group meetings within the plant ; trips to other plants ; conventions ; membership in so- cieties for promoting industrial relations; works libraries and branch sections of public libraries in the plant; representative house organs; instructive films shown at the lunch hour and in * For a detailed outline of this suggested course, see Appendix IX^ p. 140. 66 the evening to acquaint men with the work of other departments; affiHation with the Alexander Hamilton Institute; and reading tables stocked with trade literature. 3. Instruction and Training for the Rank and File The rank and file of workers are receiving more training in the workshops than is generally appreciated. Specialized operations are compelling employers to see the value of specially trained workmen. The factory furnishes the natural laboratory for the particular kind of training needed, and the factory is rapidly becoming a training school for the common workmen. We can no longer get the types of skill desired from abroad, and the supply at home is wof ully inadequate compared with the de- mand. "If one-half the attention were given to properly training labor that is devoted toward bringing about cheaper production, low costs would be automatically cared for." "For every dollar paid a new employe for the first few weeks, we are out the worth of two dollars in the cost of breaking him in." a. Methods of instruction The old try-out, haphazard method of putting the workman on his own resources and letting him learn by "call downs" is too costly. More and more the workman is being "shown," in- structed at the bench by foremen and "functional foremen" and better still, by specially selected teachers — men who know the shop and are successful in imparting what they know. Minute instructions are given, and workers are trained to follow stand- ardized methods. Indeed men are brought up to standard through the teaching methods. The men are often routed through the factory to learn the various processes, and now the moving pic- ture is. being used to present in a briefer time the processes to the men. The Packard Motor CTompany, at the noon hour, shows by moving pictures all the processes involved in the making of autdr mobiles. Mr. Sturdevant, of the. American Steel and Wire Company, places emphasis upon the eye methods of training, since, to nine men but of ten, seeing a thing is necessary to comprehending it,, 67 He recommends taking the men and the educational work to the real processes. Trips through the plant and through other plants and class instruction in the presence of the real process or ma- chinery are features of this eye instruction. Several leading business men are trying to have their work people demand training,* being ready to supply the equipment when the demand is made. And these employers are wisely plac- ing first emphasis on their educational work. The educational tendency of the present day is in the direc- tion of universal training, and business leaders recognize the vital fact that the principal way of educating the mass of workers is through the work they are doing ; hence the importance, of right training in the job, if the employe is to become a highly efficient workman. All education for youths over 16 years who are out of school must be connected with their occupational interests. Many factories have had groups of men devoting all their time to teaching new men their duties at the job. If new employes are instructed to the point of a minimum wage efficiency before they are allowed to take their places as regular workers, they learn faster, waste less, and are less likely to quit in discouragement; the turnover is thereby reduced. b. Plans of various companies for the training of employes With the ideal in mind of education on the job for all those connected with an industry from the messenger boy up to the president inclusive, firm after firm has established systems of edu- cation for employes, or aided voluntary educational organiza- tions of employes. A few of the undertakings of representative firms are cited by way of illustration. The National Cash Register Company has for many years endeavored to train up an army of competent workers through its department of education by means of lectures, library, house publications, mottoes, bulletins, ex- cursions, conventions, cooperative apprenticeship courses, con- tinuation schools, and schools of salesmanship. A large lecture hall and classrooms are provided where the whole factory may * The suggestion has been made by an employe of a large corporation that opportunity to enter a training course for learning the business should be awarded in the nature of a promotion as a recognition of good- service. 68 be assembled for lectures, demonstrations, instruction, and dis- cussion. The Wanamaker Store employes, of Philadelphia, through their organization known as the American University of Trade and Applied Commerce, may receive instruction in merchandis- ing, advertising, salesmanship, business administration, many and varied technical trades, engineering, electrical and mechanical trades, domestic science, literature, music, economics, civics, ethics, and physical and military training. For the younger work- ers in the Wanamaker stores of New York and Philadelphia, the John Wanamaker Commercial Institute provides grammar school instruction, physical and military training, and instruction in morals and music. The American Telephone and Telegraph Company maintains class instruction for Operators, Supervisors, Instructors, Chief Operators, also organized training for young men to fit them for executive positions. The Simonds Manufacturing Company, of Fitchburg, offers office, shop and English courses. The Packard Motor Company employs many instructors for training skilled machinists, and the Ford Motor Company, the Western Electric Company, and the Westinghouse Electric and Manufacturing Company employ teachers on full time to give instruction on specific machine jobs. Short intensive unit courses are given by trained teachers or by correspondence, or both, by the American Telephone and Tele- graph Company, the National Commercial Gas Association, the National Electric Light Association, the American Steel and Wire Company, and the Western Electric Company. ' The Dennison Manufacturing Company has inaugurated a system of training for all new employes to equip them for their special work, to instruct them in general knowledge of related work, and to teach them the use and care of materials and tools. Not until they are able to earn a specified wage are new em- ployes placed in the actual manufacturing department. This method of instruction relieves the foreman, prevents misfits, and reduces the turnover.* Inasmuch as the instruction and training of salesmen, office * For an account of the educational work of the Dennison Manu- facturing Company, see Appendix III, p. 112. 69 workers and apprentices will be taken up in detail in the reports of special committees they are omitted from this discussion. c. Education of non-English-speaking employes (1) Need of knowledge of English Grave barriers confront the foreign workmen who cannot speak and understand English. A knowledge of English is so essential to efficiency that employers cannot afford to allow foreigners to enter and continue in their employ uninstructed in English. It is essential to the foreigner because, without it, he cannot hope for promotion. Such ignorance spell inefficiency at every turn. It means the inability of the foreign-speaking employe to understand company policy, to read and understand notices, signs, and safety instructions.* Many cases of accidents and occupa- tional diseases result from such ignorance. These employes are often a positive menace in a plant because they do not understand rules and orders ; do not get the point of view of the manage- ment ; quickly take up discontent movements ; many times imagine grievances, or get false notions ; are often the first to strike and are brutal in strikes, and carry false reports and create misunder- standings of the company. Many non-English-speaking foreigners remain in low-waged, unskilled work where they are misfits because they cannot make their employers understand that they are capable of better things. They are exploited outside and inside the works and become easy tools of padrone, priest, labor agitator, or strike breaker. When they are taught English, they emerge from this condition of dependence, advance in wages, thrift, loyalty to their em- ployers, and manner of living. (2) Responsibility for teaching English Opinion is divided as to the responsibility for teaching adult foreigners the English language. Some business men regard it as a duty of society and the school system and decline to hire ♦Since starting the school of EngHsh for foreigners (May, 1914), the accidents in the production departments have decreased 54 per cent. A large force of interpreters was used before the school was started; now none is necessary.— Circular of the Educational Department of the Ford Motor Company, April 1, 1916. 70, workmen who do not speak or understand English. Other em- ployers look upon training as one of the social responsibilities of industry and regard it as good business. Many of these for- eigners have been induced to come here for particular lines of business, and it is only just, since they are not "school material," that the business in which they work should give them a working knowledge of English. Doubtless many good men are lost to their employers because of their inability to explain their needs, grievances, and abilities to their bosses and foremen. The magnitude of this problem is shown by recent statis- tics of the United States Bureau of Education. About 87 per cent, of the nearly three million foreign-born persons over ten years of age who cannot speak English are over twenty-one years old, and only a little over 1 per cent, of this large, non- English-speaking number of adults is attending school. The remaining two and a half million are left to the mercy of in- dustry. Many companies are now meeting this situation in a variety of ways — some affiliate with night schools ; some conduct schools on company time within the works, called factory schools ; and some make the school work compulsory, while others offer voluntary opportunities; and some hire men on condition that they will learn English. (3) Various policies in regard to non-English-speaking employes "In the United States a movement is on foot to secure this object [the Americanization of the foreigner] and the following are the methods employed by firms in Detroit with this in view: "(a) A Preferential Policy. — Men were assembled and told that from this time on, men that were going to night school and trying to learn English would be preferred — the first to be pro- moted, the last to be laid off, and the first to be taken back. "(b) Compulsion. — Several companies made night school at- tendances for the non-English-speaking a condition of employ- ment. The Northway Company established a factory school also, and then put up to its men a threefold proposition: (1) To attend night school; (2) to attend the factory school; (3) to be laid off. "(c) Popularizing the Idea.— The Cadillac Company, for in- stance, worked out a definite program, to interest the leaders of the men, and let them do the rest. 71" "(d) A Bonus System. — The Solvay Company; for instance, proposed a two-cent-an-hour increase for all non-English-speak- ing men that would attend night school." * (e) Naturalization of Employes. One of the chief incentives to the learning of English is naturalization. The Chalmers Motor Company strongly urges foreigners (practically forces them) to take out naturalization papers. The Dodge Brothers Motor Company encourages natu- ralization and cooperates with the city in establishing English classes for foreigners. (f) Instruction of Foreigners in Their Mother Tongue. It takes time to give an alien such proficiency in the use of English that he can understand orders, read rules, and profit by safety and health bulletins. In the meanwhile it is important to give instruction in the most essential matters in the foreigners' native tongue. Recognizing this need, Crane & Company prints a rule book in the employes' native language; the Illinois Steel Company prints employment blanks and safety and company rules in foreign languages ; and the International Harvester Com- pany furnishes safety rules and instructions for workers and foremen in fifteen different languages. W. C. Roberts, of the Y. M. C. A., has worked out a book, chiefly of safety rules, in different foreign languages, for the use of factories and shops. (4) Methods of teaching English to foreigners The Ford method is as well known as any company method of instructing foreigners in English. Employes attend the Ford English School on their own time. There are some 1,600 pupils under thirty-six instructors, meeting one and one-half hours daily, three hours a week for each student, in classes so arranged as not to interfere with working hours, the class for night workers meeting at 8.30 a.m., for instance. The Peter Roberts dra- matic system is used for the lessons. When the course is com- pleted, the class is graduated with appropriate exercises. Other firms using the Ford method are the Packard Motor Company, the W. M. Finck Company, and the Ford Motor Company, of Canada. ♦Quoted from the Supplement of the New York Times, October 24, 191S, in the Report of the Ontario Commission on Unemployment, 1916, p. 55. 72 Boards of Education in various large cities have also adopted this plan. Some firms cooperate with the public schools in giving courses in English. Thus the D. E. Sicher Company, of New York, allows its employes one hour each morning for English classes in the factory. The public school system supplies the texts and the instructors. Classes are often conducted in factories and stores by local Y. M. C. A.'s. (S) Teaching civics and citizenship to foreigners Next in importance to a knowledge of English for the for- eigner is a knowledge of our political institutions and an initia- tion into the spirit and ideals of our democracy. Many companies recognize this need and add courses in citi- zenship to their English courses, or cooperate with schools or outside organizations in giving such courses.* The Committee for Immigrants in America has prepared "for the use of Colleges and Universities, Schools of Civics and Philanthropy, to fit men and women for service among immi- grants," a "professional course for Service among Immigrants." This course was given at Yale during the current school year. From among college men and women taking such courses may be recruited instructors, investigators, interpreters, visiting nurses, and inspectors for work among foreign-born employes. V. PROMOTIONS AND TRANSFERS 1. Promotions It is significant that while nearly all employers complain that employes are constantly shifting and that many do not remain long enough to become familiar with the requirements of their jobs, very few employers have worked out any definite plans * See especially th? Citizenship. Syllabus prepared by the Committee for Immigrants in America and published by the New York State Board , of Education (1916); also An Outline Course in Citizenship, issued by the United States Bureau of Naturalization (1916). There is at present being issued by various interested agencies a number of pamphlets pertain- ing to the education and Americanization of the immigrant. Cf. espe- cially the literature issued by the National Americanization Committee and by the Committee for Immigrants in America. 73 for the systematic advancement of their employes. About the only group of employes systematically promoted is the sales force, who are usually promoted on the basis of average sales. Promotions are of three kinds: a. Departmental. b. Interdepartmental. c. Out into other fields and businesses. Every organization, in order to care properly for promotions, should have a carefully developed organization chart. This chart should classify positions, in so far as possible grade them, and indicate lines of promotion. The management should let it be known that careful service records are to be part of the pro- motional plans. It is also very important that the right indi- vidual should make out these records and supervise them. Those who decide promotions within departments, between departments, and out into other fields, have a great opportunity and a far- reaching responsibility. Such authority is now looked upon as a vital part of the machinery of satisfaction and contentment in the places where careful study of promotion has been made. In some places systematic instruction and other aids to assist workers in promotion are given, and men are obliged to move after a time from one position to another. If in the stipulated time men do not move, they are changed to other departments or dismissed. The employment bureau should keep very careftil records of the number of employes promoted or transferred as a result of instruction or other aids. , _,,, r .. . Careful studies of promotions lead, more^,and^Jrriore to the system of filling vacancies by promotion. This ineans, that appli- cants, upon entering the service, usually are obliged to start at the end of the line. Department heads naturally have a large voice in the determining of efficiency records, in the increases of wages and salaries, and in transfers and promotions, but more and more they are deprived of final authority. The authority to make a final decision in these matters is a function of the employment department, or. is a part of the work of the joint committees constituted for such purpose. In the final decision,, department heads may have a voice. Always in filling a position the first consideration should be given to the man in the company's employ who desires a change 74 of work; second consideration to the man laid off, and third consideration to outsiders. Applications for promotions of the more important assistants who are eligible for advancement to higher positions as foremen, managers and superintendents are made out by the department heads annually. Attention should be given to the individual's previous record before promotions can be made intelligently and satisfactorily to the higher posi- tions. Systematic promotion, in a word, is a great asset. It is vital, as pointed out later in the handling of grievances. Efficiency records in promotion problems are receiving much attention. They usually embody ratings on : a. Productivity. b. Evidence of initiative and originality as shown forth in suggestions and in other ways. c. Mistakes or errors. d. Attendance. e. Punctuality. The two latter have been recently adopted by some firms in addition to the three former commonly accepted efficiency items. 2. Transfers In the study of transfers careful records are now being kept of reasons for such changes. Among the more important causes are the following: a. Natural fitness for one position as opposed to unfitness for the work of another. b. The irksomeness of tasks, due to repetition of oper- ations. c. Physical unfitness. d. Inability to get along with foremen. e. Recommendation of foreman for transfer, and recom- mendation of foreman for discharge. in the case of a large automobile company, 2,847 men who had given notice of quitting during the past year were persuaded to stay on and be transferred to more suitable work, which was successfully effected. It was found that the principal reasons for wanting to quit were that the men were unfitted for the 7S's class of work they were doing, and that they were dissatisfied with conditions. There are other reasons besides that of physical maladjust- ment for transferring men from one job to another, particularly the desire to advance employes or the lack of work in the orig- inal department ; but the records of one well-known firm, show that 18 per cent, of the transfers made in 1915 were due to not being adapted to the first job, and that after transfer, most of the workers madegood on the second job. A significant instance of the possibilities in transfer has re- cently come to the writer's notice. The employment agent of a company which has a force of 2,500 was considered a failure in the shipping department, from which he was transferred. But upon his being tried out in the employment department, in a capacity which gives play for qualities of leadership, he has more than made good, and is rated as a valuable man. Some concerns are keeping promotion and transfer books or records. When requisitions come or vacancies occur, these rec- ords will reveal the names of available candidates. They will ■reflect the requirements of the positions, and thus the requisi- tions can be met in the most satisfactory fashion. There has been comparatively little systematic attention given to promotions and transfers. Heads have watched those of unusual ability and have advanced them rapidly. But these are the very ones best able to care for themselves. The largest efficiency will result from the careful study of the average man. The history cards of employes reviewed periodically will usually enable division superintendents to find good material for advancement. The promotions book should cover candidates, positions, efficiency records, abilities and desires. Scientific promotion and transfer force us to know the needs of the different jobs, and the strong and weak points in the individual workman. What is wanted here, as in all parts of the employment problem, is to chart carefully the opportunities open to the workman, and then to lead him (that is, train him) to appreciate them. This process makes for efficiency and con- tentment. 75 VI. GRIEVANCES 1. Purpose of Grievance Machinery Discipline, if not handled scientifically, is the most delicate and dangerous of all the problems the business manager must meet. The wise handling of misunderstandings, dissatisfactions, and grievances is one of the most important problems now re- ceiving . wide attention. Large-scale management, many think, necessarily forces upon us a military type of economic discipline. The one effective way of securing the necessary obedience is through the power of arbitrary discharge. From this crude conception of discipline, based upon a false psychology, has come a long series of fric- tions, ill-will, mutual misunderstandings, and heavy economic and social waste. The scientific business administrator now knows that the good will of the employe is a most valuable asset. It is the chief purpose of grievance machinery to secure this good will. Few human problems in business are more pressing than this : How train foremen so that they will deal justly with their men? More and more business leaders are realizing that the problems of industrial discipline are too vital and too delicate to leave entirely in the hands of foremen. Hence the former are devel- oping special grievance machinery. Among the many boards now functioning in the handling of the human relations in business, none calls for more resource- fulness, sound judgment, and fair-mindedness than the grievance board, dealing as it must with the delicate, vital problems of human justice. It is the realization of the business value of harmony and justice that explains the wide interest in grievance machinery. 2. Wide Interest in Grievance Machinery The growth of grievance machinery represents a new busi- ness philosophy: Do it because it is right. The old idea of a subtle, deviating diplomacy is giving way to frankness and facts. It all ties up with the scientific selection of employes, the costly training and the recognized business value of a reasonably con- 77 tented, happy work force. The arbitrary enforcement by the management of unjust rules affecting working conditions and discipHne, unjust removals, and unjust discharges are no longer condoned as formerly. More generally than ever before it is now borne in mind that the just treatment of employes all along the line is as important as their initial selection. The ignorance, prejudice, and narrow personality of the foreman must not be permitted to check the full, free flow of scientifically directed energy among the rank and file. Under modern large-scale management, where the responsi- ble heads are widely separated from the mass of workmen, griev- ance machinery is absolutely necessary if the executives are to know the most vital facts of their business. In the analysis of 123 trade agreements, existing at the pres- ent time between the various street railway companies in the United States and their employes, the significant fact stands out clearly, namely, that in the majority of these cases there is a lac]i_ of any adequate machinery for handling complaints and grievances, and of open discussion in mutual good faith of mat- ters of serious import between employers and employes. This lack of complaint machinery is clearly reflected in the initial trade agreements. In the later agreements — second and third — this need for grievance machinery becomes less apparent, since there has been a channel established. The chief trouble has been the lack of contact between employer and workman. Now the choked channels are being opened up. 3. Causes of Grievances Since discipline is such a delicate and dangerous problem of management, the most important causes of grievances should be constantly kept in mind. These may be briefly summarized as follows : a. Vocational misfits The best humanity and the best business is to get the right man on the right job at the start. Wise, just, original selection will do more than anything else to allay later dissatisfactions. If with scientific relation of the man to the job in the be- ginning goes the right procedure thereafter, grievances will be reduced to a minimum. 78 b. Wage dissatisfactions — initial and progressive wages As industry is now organized and administered, more com- plaints come from wage dissatisfactions than from any other single cause. A careful analysis of the turnover will show a very heavy percentage of people leaving because of (1) a low starting wage, (2) a haphazard, inadequate progressive wage, and (3) frequent cuts in wage standards. Many concerns are now practising, within reasonable limits, the economy of high wages. They are carefully instructing new employes as to what they may expect and under what conditions and when wage increases may be expected — every three months, six months, or annually, as the case may be. This is based on careful analysis of output and known individual efficiency. And more than ever before, it looks in the direction of individual reward, not the former group or lump guess methods. Nothing will do more to stimulate efficiency and prevent dissatisfaction, once a man fits the job, than to convince him that he will be justly paid for his performance and to assure him that standards will not be cut. The very core of the industrial conflict rests in the wage system. Here are almost inherent contradictions. Hence th6 great importance of machinery for handling wage dissatisfactions. The' workman wants pay according to the time, strain, speed, work conditions, etc. The employer naturally wants to pay in proportion to output. The problem is to bring the two sides together in continuous harmony and reasonable contentment. What the individual really wants is the right kind of opportunity. Efficiency records, carefully kept, and showing productivity, suggestions, errors, punctuality, discipline, initiative, etc., are vital in the just handling of wages. Properly constituted deter- mining boards, with data gathered by careful research in job analysis, can set standards of performance. The operating divi- sions can then rate the different employes engaged on particular operations against the standard thus set. The rates so set go back to the determining board, which is the final judge of the rates, as it is of the standard set. In this way the determining board will set standards of efficiency, and likewise determine the effi- ciency ratings of the employes. Questions of just individual pay can then be settled by the wages board. 79 With adequate wage machinery, productivity and wages are kept in scientific relation. Increases will follow without the em- ploye's asking, or he may be moved to better paying jobs. De- mands for wage increase are always difficult. They may become embarrassing and often result in friction. The most careful studies of the wage problem reveal an inti- mate relation between wages paid and the turnover. Wages are intimately tied up with the reasons for leaving. The ideal of a minimum starting wage, so as to get a body of picked, steady workers, is good business. And for certain grades of work and for certain ages (the young), the psychology of frequent wage advances is sound. Increases, of course, must follow earning power. Careful analysis of work requirements, setting standards of performance, passing upon the efficiency of workers, determining wages, especially right initial (minimum) wage, and prompt in- creases, based on known efficiency, will go a long way in solving grievances. c. Unsatisfactory working and living conditions After wages, the rank and file of workers want fair hours and reasonable work conditions. They want good mechanical conditions, good air, light, ventilation, and freedom from un- wholesome and dangerous health hazards. Progressive leaders are working in the direction of standards, scientifically determined, for controlling the work environment — standardized safety, health control, working facilities, drinking cups or fountains, light, toilet facilities, cuspidors, lockers, doors, etc. Conditions outside the work environment, especially home con- ditions, are often a source of serious discontent. In several well- known instances these outside sources of friction and waste have become known to those in authority through the grievance ma- chinery. In a word, the living day conditions must be taken into account in studying grievances. d. Inadequate promotion and transfer plans. Pramotion, treated elsewhere, is a vital matter in the study of grievances for all workers. It is especially a critical matter for 80 the executive stafif, the clerical groups, and all those in authority. Jealousies and grievances arise more quickly among the execu- tives over problems of transfer and promotion than among the rank and file. Wages and work conditions come first with the average man. Many executives consider advancement from vari- ous points of view as important as wages. Promotion, in a word, does not necessarily include an increase in wage or salary. It has many phases in the study of grievances. Promotional schemes of rotating employes are delicate and difficult. It is practically impossible to tell a man just how long he is going to be in one position before advancement will come, and sometimes, when known, such knowledge is apt to reduce effort and slacken progress. But where methods of un- covering efficiency are in operation, there is an effective check on actual performance. There is far more adaptability and versatility in human nature than is commonly believed. Wisely directed, this variability can be used to reduce discontent and friction. It probably permits a large majority of the average employes to be rotated from one job to another. This is especially true in those work positions that do not require prolonged training; that is, if they are not too technical in character, and if they do not fall within one of the definite trades. Grievances are thus partly controlled and solved by indicating as fully as possible the probable line of progress a new employe is likely to take and what channels are likely to open to him in the way of wages, responsibility, duties, connections, training, etc. e. Uncertainty Uncertainty is one of the most common causes of dissensions. Everything that can be done should be done to remove doubt and uncertainty. This applies to all, but it is especially applicable to the executive, sales, engineering, and clerical groups. Many among the rank and file do not care, but those responsible for orders, and held to strict account for the performance of others, should have a clearly outlined, definite procedure. In so far as possible all doubt should be removed. Serious loss and waste have come to the notice of the writer because of the uncertainty around the lives of several who are holding positions of large responsibility. Authority is divided. Often duplicate orders 81 are given. Sometimes one does not know that another has issued the same order or -a conflicting order. Chaos rules and jealousies are rife. Uncertainties can be removed. They should be studied, ana- lyzed and classified. Those within the control of the company should be removed. Those within the control of the employes they should be educated to remove. Those seemingly not within the control of either employer or workman should be handled by the grievance machinery. The vital point is : Do not permit uncertainties to grow into grievances. f. Summary of causes of grievances In summarizing the causes of grievances, it is apparent that friction is apt to arise at almost any stage of the employe's vocational career. To avoid grievances, the entire life history of the workman must be borne in mind— his initial employment, his rate and method of compensation, the works management, his working and living environment, all types of unjust discrimina- tions, his opportunities for promotion, rotation, and transfer, and the manner of his leaving. 4. Tardy Admission of the Need of Machinery for Adjustment Ask almost any executive while on his guard what machinery he has for handling complaints from the men and women under him, and he will quickly reply that he doesn't need any, or that if a disagreement should arise, he would have the power of deci- sion, with probably an O. K. from the power above. Recently the president of a very large company in Chicago called all his departmental superintendents together and asked each one to rise and tell in the presence of all the others just how the foremen under each superintendent handled grievances. With one exception, the superintendents all said there were practically no grievances in their departments. One man, however, frankly acknowledged the difficulties of handling such matters. The an- swers of the others clearly meant one of two things : either they did not know, or they were not honest with the president. A similar attitude of sufficiency has been met with recently in the case of certain heads of employment departments, who 82 either do not know intimately what is going on among all their employes, or else disclaim need for a more elaborate mechanism for making adjustments when the occasion arises. Moreover, even in cases where some method exists for ad- justing the relations of minor employes, there may be no means of sensing the dissatisfaction, friction and jealousies which subtly obtain among men higher up. In several recent instances which have come to the writer's notice, grievance committees have sprung up spontaneously among employes and have resulted in permanent "courts of appeal." In one large manufacturing establishment of 5,000 employes, where hiring and firing is more or less decentralized and depart- mental control the rule, the men in a certain department — 100 in number — felt that their foreman was making too arbitrary use of his power of discharge and forced him to work with an or- ganization among themselves which they improvised as a stale- mate to him. As a result of the cooperation developed thereby, this group has been pronounced by the president of the firm to be the most successful of any in the plant in meeting its problems, although he has only recently learned of the existence of this machinery. The point is that not only were the executives ignor- ant of the need of grievance machinery, but they were unaware of this self-appointed court of appeals within the walls of the firm until a short time ago, after an outside industrial consultant had been called in to look into general conditions. In another firm, widely known for its enlightened labor policy and having a centralized employment bureau, neither the general superintendent nor the employment manager was aware of a strained situation, which forced the women workers ulti- mately to bring it to the attention of the management. The superintendent wisely suggested that the women devise some means of solving the problem, and in accordance with this sugges- tion representatives were elected by the women in each depart- ment to take up future adjustments with the management. More- over, out of this situation has grown a grievance machinery as yet newly tried, on which are represented both management and employes, with strong probability of the plan's being extended to cover the men as well as the women, since it has been found to work well. Even in the cases where the unions are recognized, the trade 83 agreements do not furnish methods of developing the utmost cooperation with the management in matters not covered by the agreement, which is concerned mainly with the fundamentals of wages, hours and, incidentally, sanitary conditions. Hence comes the need for additional mechanism within the establishment for taking up sources of minor irritation, and for covering all the employes concerned. Numerous cases could be cited to show the unwisdom of leav- ing all vital and delicate problems of adjustment and discipline entirely to any one individual — either foreman, department head, member of the firm, or even employment manager. Frederick Taylor, who realized better than any other man the inability of the modern foreman to cope with the various func- tions demanded of him, wisely created the functional position of disciplinarian, who should attend to what we would call "human relations." In other words, he would lift from the shoulders of the foreman the burden of discipline, as well as deprive him of arbitrary power over his men, and centralize this power. Likewise the tendency seems to be to take out of the hands of any official this large function and place it in the hands of a committee or board, which shall sit permanently. Moreover, more elaborate organization is going forward for preventing those situations from arising which make for dissatisfaction. If there is one tendency more than another which bears the earmarks of being constructive, it is this idea of diffusing responsibility for the study and remedy of dissatisfactions arising out of the con- ditions under which men and women work. 5. Forms of Grievance Machinery a. Unofficial Industrial nurses and those in charge of welfare work have done yeoman service in getting at sources of dissatisfaction among a certain class of workers, and particularly among the foreign men and women, largely through the intimacy of the home visit, and in taking up matters which need adjustment with the management, in an informal way. Often minor officials of the company attempt in various ways, sometimes by living among the employes or meeting them socially, to get their real reactions 84 to work relations. But these are backhanded, roundabout methods. Often not even these channels exist, and, in the absence of any means for adjudication, it is up to the employe to carry his tale to "the front office," which he is naturally loathe to do, in spite of the fact that he is so frequently said to be free to carry his complaint clear up to the vice-president or similar officer if he does not receive proper redress. It was surprising and illumi- nating to note how few members of the Association, in answer to the questionnaire of the Employment Plans Committee in 1915, reported any real provision in their firms for handling an appeal of a workman from the decision of a boss other than through direct appeal of an employe to his superior — immediate or re- moved. b. Employment office Recent investigation and tours of inspection have brought to light the increasing practice for the employment department to become the clearing-house (whether official or unofficial) for voicing the need of adjustments between employer and employe; and this office should be in a strategic position to assume this function because of the fact that no employe can enter or leave the firm, be transferred or promoted, without this fact and the reason therefor being registered there. Moreover, there should be somewhere continuous supervision of the facts of a man's whole work career with a firm — his initial employment, his rate, method and amount of periodic compensation, his working and living conditions, his opportunities for advancement and his responsive- ness to them, and a minimum of fair play from his supervisors and fellow workmen. iPor this reason often questions of wages, transfers, disputes over work conditions and advancements are reviewed in conference with the employment department. It is better still when the Department of Human Relations has the cooperation of determining boards to help set standards of per- formance, wages, and efficiency ratings and records, and the co- operation of a grievance committee in finding out the facts under- lying complaints and adjusting them, as the cases arising are too numerous and their importance too great for the maintenance of industrial harmony to be left to the judgment of single in- dividuals, however wise they may be — a fact recognized by a few 85 far-sighted executives, who have redistributed the responsibility in their firms so as to have a larger number of debatable ques- tions in the hands of special groups or boards for each particular problem, in addition to centralized specialists like the staff of a Bureau of Human Relations. This has occurred in the case of wage boards, boards who pass on efficiency records, promotions, or standards of performance, education boards or committees, safety committees, courts of appeal or grievance boards, welfare boards, and many others, varying in makeup from a composition wholly of officers, to mixed committees or organizations on which the employes are represented, and even in a few cases to organiza- tions wholly manned by employes, the last especially in connec- tion with welfare activities. Although advanced employment managers are being given more authority as, for instance, in personally interviewing all employes who quit or are discharged by their superiors, and in placing them elsewhere in the firm where this is desirable, there exists the usual loathness on the part of some higher executives to part with the functions and authority which are to be placed under the jurisdiction of the employment department, just as foremen in the beginning have objected to having the functions of hiring, disciplining, discharging and the power of decision in question of wages and promotion taken away from them in large measure. In one instance it was a certain group of executives in charge of production who reported adversely upon the sug- gestion made by a head of the firm that grievance machinery be experimented with. It would seem that a centralized employ- ment bureau was slowly taking over some of their functions, and their refusal indicated an instinctive unwillingness to delegate to possibly still another outside agency some of their authority, although they based their refusal on the ground that the experi- ment might be ticklish and unsafe. c. Boards or committees of appeal In the case of the Dodge Brothers Motor Car Company there are two distinct committees to investigate cases of discharge by foremen and to pass upon them. For employes who have been in the service less than three years a committee, composed of chairman, employment secretary and chairman of the safety com- mittee, sit in judgment; for those of more than three years' 86 service, the works manager, general superintendent, and secretary- treasurer. Since the enlargement of the labor committee and the thorough investigation of each case of discharge, the company claims to have cut down its discharges 200 per cent. Variations of this form of board or committee, with the em- ployment manager occupying an important part, are found in other establishments. (Cf. the Ford Motor Company, where the employment board consists of three assistant superintendents and the employment agent.) A Committee on Employment would seem advisable where employment problems are being centralized for the first time, and has been adopted recently by two large corporations in the East which are establishing employment bureaus. d. Joint grievance committee One firm operating under a well-developed system of scientific management, with a centralized employment department, has in addition recently begun to handle grievances through a joint committee. This committee consists of a union representative, usually the president of the local union ; a representative from the department where the grievance occurs ; the works manager, who represents the firm, and the employment manager, who is a neutral party on the committee. From a recent report from the employment manager it is learned that so far all grievances thus brought up have been discussed and settled on the basis of the facts, and to the mutual satisfaction of all parties concerned. Like that of other judicial bodies, the value of the Com- mittees work lies in its function of ascertaining the facts in the case, and in rendering its judgment in accordance therewith, rather than basing it on-opinion, guess or whim. e. Other democratic means for handling grievances Sometimes, as in the case of the newly created Welfare Association of the employes of the United States Cartridge Com- pany* (Lowell, Massachusetts), which was recently established to share the management with the employes and which automati- cally includes all employes of the Company, a grievance com- mittee of employes receives complaints and passes them on to the * For Constitution and By-Laws, see Appendix X, p. 143. 87 Council of the Welfare Association for consideration. The ulti- mate power of the Welfare Association in passing upon cases of dispute is not stated in the newly drawn constitution, but the fundamental idea behind the inception of this new organization is sound. The value of such a committee lies in the fact that no complaint is too trivial to be brought before it, and that it meets often. At the Printz-Biederman Company (Cleveland) where, under a federal industrial democracy,* a Senate and House of Repre- sentatives deal with every function and procedure within the plant, including shop discipline, methods of working, hours of work, earnings and promotions, there is a judicial body, the Board of Review, which investigates causes of discharge and resignation. Probably the best worked out system to be found in an in- dividual establishment . is that of the William Filene's Sons (Boston). "The employes have been given ample power to cor- rect on their own initiative and without the assistance of the firm any bad or unjust conditions or rules affecting their disci- pline or work. The firm in turn has secured the hearty coopera- tion of its people, and its management has been able to give to work, for the growth and success of the business, many hours which might have had to be given to the discipline and handling of employes." t This cooperation has been assured largely through the powers granted the Filene Cooperative Association, to which, like the Welfare Association of the United States Cartridge Company, every employe of the Company automatically belongs. Within this Association is an Arbitration Board, consisting of twelve members, elected one from each section of the store, and a chair- man. The scope of this Board includes all cases in which any member of the Cooperative Association has reason to question the justice of a decision by a superior or the action of an Association committee or member, and its powers extend to all cases of differ- ence relating to: (1) An employe and the management. (2) Two or more employes in matters of store interest. (3) The justice of a rule in question aflfecting an employe. The questions most frequently brought before the board are * For results accomplished under this plan, see Appendix XI, p. 148. t See booklet issued by the firm, A Thumbnail Sketch of the Filene Cool'erative Association, p. 5. dismissals, changes in position or wage, transfers, location in the store, missing sales, shortages, lost packages, breakages, torn or lost garments, differences between employes, payment for suggestions. In each case the Board conducts an examination into the facts of the case. Its decision is final for all cases arising within its jurisdiction. Any executive may have any controversy between him and the executive authority of the corporation in respect to his employ- ment arbitrated by a special arbitration committee — one member to be chosen by the executive, one by the corporation, and the third by these two. Decisions given by a majority of these three arbitrators are final. In addition this firm has determining boards, on which are represented both management and employes, who are trying to work out scientific wage scales, determination of duties, and lines of promotion. In addition, expert effort is directed toward standardizing jobs, determining the individual's rate of effi- ciency, and rates of pay. Altogether this establishment offers a good example of a firm studying its own problems intensively and scientifically, with a view to establishing standards and to preventing conditions which give rise to internal friction. In the above instances potential machinery making for' more harmonious relations have been described. It would have been equally helpful to the Association if the results of their adminis- tration were known in detail. The importance of this subject lies in the fact that these various forms of organization can be made to function effectively if the management so desires. The most perfectly drawn plan in the world will fail if it is not carried out in good faith, if the officers are practically dictated from above, or if the personnel is incompetent or unfortunately chosen. Again, the management might attempt to override the court of appeal, as has been done in the case of a board that had been given final authority by the management in certain matters. However, it is most encouraging to note that recent first- hand expressions of opinion from a number of large firms of the Middle West confirm the belief that establishing a court of appeal, in addition to maintaining friendly relations with the new worker and showing a personal interest in him and his prog- ress, goes a long way in reducing turnover. 89 VII. MANAGEMENT SHARING Management sharing is no new idea. Executives are driven to it on account of their herculean burdens, even though they have not always heretofore consciously prepared their employes for sharing these responsibilities. You remember how Jethro rebuked Moses, the lawgiver of Israel, for wearing himself out with rendering decisions for the multitude instead of raising up a body of assistants to take the details off his hands, saying: The thing that thou doest is not good. Thou wilt surely wear away, both thou, and this people that is with thee, for this thing is too heavy for thee ; thou art not able to perform it thyself alone. . . . Thou shalt teach them [the people] ordinances and laws, and shalt show them the way wherein they must walk, and the work that they must do. . . . So Moses barkened to the voice of his father-in-law, and did all that he had said. And Moses chose able men out of all Israel, and made them heads over the people, rulers of fifties and rulers of tens. And they judged the people at all seasons : the hard causes they brought unto Moses, but every small matter they judged themselves. (Exodus 18: 16-27.) 1. Partnerships in Management The three firms * which have associations of employes to sit with the management are the Printz-Biederman Company, the William Filene's Sons Company, and the United States Cart- ridge Company. There are doubtless others ; in fact three other establishments have recently been reported as operating under the "Federal Plan," that adopted by the first-named company. The Federal Plan, as found in the Printz-Biederman Com- pany t consists, in short, of two legislative branches, which deal with every function within the plant, including shop discipline, methods of working, hours, earnings, and promotions. The House consists of representatives elected by the workers ; the Senate, of foremen and superintendents, in a measure automatically self- appointed. Above these sits the Cabinet, consisting of the officers of the Company. A glance through a few sample minutes kindly furnished by the management reveals the following questions con- sidered under the Federal Plan :• (a) Proposal for a 48-hour week schedule, methods for work- * Coming within the notice of the chairman of the committee, t For report of progress, see Appendix XI, p. 148. - 90 ing it out, and degree of cooperation needed therefor among the employes. (b) Proposal for a Wage Review Board. (c) Plan for compiling and reviewing efficiency records. (d) Plan to equalize work for all over shorter hours rather than lay numbers off. (e) Sending a committee from the cutting department to investigate the wage system and setting of standards of a well- known company in Philadelphia. The oldest and best known of these employes' organizations is the William Filene's Sons' Cooperative Association,* to which every regular employe belongs by virtue of employment. To this Association is given large power. For instance, if two-thirds of its members vote in mass meeting to change, initiate, or amend any rule that affects the discipline or working conditions of the employes of the store, such vote becomes at once operative, even against the veto of the management. The Association is also represented on the Board of Directors. Under the direction of the Association function the Arbitration Board,t Committees on Insurance, Club House, Deposit and Loan Bureau, Library, Health, Lecture, Finance, Entertainment, Athletics, Music, Sug- gestions, Publication; also the Medical Department. The Filene Company frankly states that this opportunity for self-government to its employes has paid the firm handsomely as an investment for its outlay of time and money, and that this development of the individual through cooperative undertakings has meant a better personnel and newer and higher standards. Moreover, the scheme has demonstrated the value of establish- ing a voluntary minimum wage t high enough to insure a first- class employe who will respond to the advantages afforded by a connection with this firm. Likewise the United States Cartridge Company has recently instituted a Welfare Association of employes,§ whose purpose is similar to that of the Filene Cooperative Association; that is, to put into the hands of the workers the direction of a considerable * See booklet, A Thumbnail Sketch of the Filene Cooperative Asso- ciation. t Described on page 87. i Adopted some time in advance of legislative enactment. § For Constitution and By-Laws, see Appendix X, p. 143. 91 body of functions. This industrial experiment, involving a total of 8,000 workers, will be watched with keen interest. 2. Employes' Direction of Welfare The Jeffrey Company furnishes a good example of the Com- pany's carrying on a number of "Welfare" activities through the leadership of its employes,* and at minimum expense. In start- ing any new activities it is the policy of the company to convey to the employes the impression that it will heartily encourage and assist anything the men may propose, but the initiative and re- sponsibility rest absolutely with the operatives. Other wise executives have hit upon this principle independently. As was aptly put upon the floor of the Convention last year by Dr. Risteen : "The difference between a suggestion that comes from headquarters down the line, and one that comes from the em- ployes up the line, is much the same as the difference between one's own baby and somebody else's baby." At the Jeffrey Company the following activities are conducted by committees of employes : 1. Mutual aid association. 2. Hospital with doctor and trained nurse in charge. 3. Thoroughly equipped restaurant. 4. Building and loan association (96 houses built and pur- chased within the last three years ; board of directors composed of employes.) 5. Cooperative stores, including bakery, dairy farm, ice-cream and lard rendering plants. 6. Orchestra and choral society. The Company paper is intended by the Company to be dis- tinctly an employe's paper. Most of the articles are written by the workmen, and nothing is allowed to go into the paper that is not written by some employe of the Company. The Company's wise policy in fostering self-direction among its employes has resulted in developing a spirit of loyalty and cooperation that has appreciably lessened the turnover, in the opinion of the management. ♦Other instances of activities carried on by employes, to greater or less extent, are too numerous to mention, and may be found among a number of firms belonging to The National Association of Corporation Schools. 92 3. Cooperation in Health and Safety Probably in the factory no general movement has been so instrumental in showing how far cooperation can be intelli- gently developed among all classes of men and women as the safety movement. Thereby the expert engineer or inspector, the superintendents and foremen, and the workers are welded to- gether in an organization within an orgianization whose prime purpose is to prevent accidents. This working together through committees not only makes the men more intelligent about safety, but it gives a chance for the men from the top and the bottom and middle to get together on a common basis. Rotation of office gives practice to the committees of workmen in responsi- bility which is of great educational value, especially since they inspect, investigate, suggest, and mete out discipline. The com- plaint has been made that workmen are dissatisfied to go back into obscurity after they have once tasted of service on a safety committee. The same method of having executives and lesser employes working jointly to promote the common welfare of the establishment can also be utilized in problems other than safety; and in those instances where safety machinery already exists, it could easily be extended to include the maintenance of health as well. The Committee on Health and Safety of the National Cash Register Company, of over one hundred mem- bers, has already been instanced. 4. Other Forms of Cooperation It also has been found desirable to evaluate the work of a foreman by the number of workable suggestions emanating from the men under him, although there is a natural tendency among heads to want to be considered the brains of the department, so employers say. Of course those employers who do not believe in developing employes along the lines laid down above will not find much here of benefit. For instance, in the case of a large manufacturing company whose profit-sharing scheme attracted world-wide at- tention when initiated and whose employes are over fifty per cent, foreign, the company does not lay any particular stress upon the formation of clubs, being generally opposed to frater- nalism. Although it exercises the strictest supervision over the 93 home life of its workers, it does not offer opportunities in work relations for the rank and file to learn to share responsibility and develop ability other than to carry out the orders of the firm. It might be well to state here that employers can justify their paternalistic direction of the home life and leisure of their employes only in so far as they offer through the work relation- ship opportunity to participate in activities which will eventually make continuous supervision of outside living progressively un- necessary. An instance where a company is working independently of its force in the matter of safety has recently come to light. Stand- ards of safety in mechanical devices and tools have been worked out by the management on a large scale, but a considerable per cent, of accidents occurring is chargeable to the carelessness of employes, so the management claims. To overcome this situation the company is contemplating through safety committees and inspectors extending the participation in accident prevention to larger numbers. Taken in the light of the friction which evi- dently exists in this establishment, the experience of the com- pany in safety work is typical of its relations with the rank and file of its large force, in that it has not seen fit to enlist their cooperation in matters of vital importance to it. In one garment-making establishment of the Middle West, whose welfare work is carried on largely through committees of employes, there is a movement afoot to form a Rules Committee to meet with the management in considering rules. It is pro- posed to grant hearings and receive recommendations, and not to amend rules until approved of by both management and workers. Already the election of representatives is proceeding, according to a recent announcement of its house organ. A similar tendency of the times is reflected in the announce- ment by the management of a plant, known as one of the most scientifically managed in the country, of a club among employes which in time "will be a house of representatives to which every one can bring matters for general discussion and fair decision," and "which gives an employe the best of opportunities to gain knowledge regarding the business and an unexcelled chance to grow with the Company." 94 PART III.— APPENDICES APPENDIX I THIRTY CONCERNS TO HELP NEW BUREAU OF SALESMANSHIP RESEARCH (Plan of the Work Which Will be Carried on In Connection with Carnegie Institute of Technology)* A Bureau of Salesmanship Research has been organized at Pittsburgh, Pa., and will be affiliated with the Carnegie Institute of Technology. The institute will supply quarters, library and laboratory facilities and other things needed to carry on the work. The new bureau is coming into being as a result of the active efforts of big business men to establish better methods of selecting salesmen. The fact of the matter is that when a house employs a new man, spends its time and the time of its organization breaking him in, and eventually makes an investment of from $2,000 to $5,000 in him, it is rather irritating to learn, as it is learned in a large proportion of cases, that the employer has "guessed wrong," and that somebody else must be selected to fill the job. Scope of the Bureau The work of the new bureau, which will begin actual opera- tions June 7, 1916, is interesting also because it calls attention to the importance of the new profession, as it might be called, of employment manager. Large corporations have found it necessary to organize the departments for "hiring and firing" upon a permanent and systematic basis, and the selection and * Reprinted from Printers' Ink, Vol. XCV, No. 1 (April 6, 1916), pp. 104-106, by courtesy of the managing editor. Information contained in the article furnished largely by Professor W. V. Bingham, of the Carnegie Institute of Technology. 95 equipment of these employment managers form a subject which has come in for a lot of study. The Bureau of Salesmanship Research, in addition to undertaking the development of better methods in selecting salesmen, will provide standards for the selection of employment managers themselves, and will also serve as a clearing-house for ideas on this general subject. Edward A. Woods, head of the Pittsburgh general agency of the Equitable Life of New York, which is the largest life-insur- ance agency in the world, is given credit for originating the idea for the new bureau. Mr. Woods is president of the National Association of Life Underwriters, and is a close student of sales efficiency in his own field, which is generally regarded as the most difficult of all in which to secure and develop good men. Mr. Woods is chairman of the bureau, under its temporary organization, and associated with him are the following com- panies, with their representatives : Carnegie Steel Company, Pitts- burgh, John McLeod, assistant to the president, and president of The National Association of Corporation Schools ; Ford Motor Company, Detroit, Norval A. Hawkins, sales manager ; Equitable Life Assurance Society, New York ; Carnegie Institute of Tech- nology, Pittsburgh, Arthur A. Hamerschlag, director ; Armstrong Cork Company, Pittsburgh, C. D. Armstrong, president; Metro- politan Life Insurance Company, New York, George H. Gaston, second vice-president ; H. J. Heinz Company, Pittsburgh, L. S. Dow, sales manager; Westinghouse Electric & Mfg. Company, Pittsburgh, S. L. Nicholson, sales manager ; Phoenix Mutual Life Insurance Company, Hartford, Winslow Russell, agency man- ager; Chalmers Motor Company, Detroit, Hugh Chalmers, presi- dent; Paige Detroit Company, Detroit, H. M. Jewett, president; Prudential Life Insurance Company, Newark, N. J. The scientific staff is headed by Dr. Walter Dill Scott, who will go to Pittsburgh, June 1, to assume the direction of the bureau, for which his close relationship with many large busi- nesses in connection with work of this sort has peculiarly fitted him. Associated with Dr. Scott will be Dr. W. V. Bingham, of the Carnegie Institute of Technology; Dr. J. B. Miner, of the same institution; and Dr. G. M. Whipple, of the University of Illinois. In addition, a research assistant and several Research Fellows are still to be appointed. 96 How Bureau Will Be Organized The plan of organization of the bureau is described as follows : "It is proposed to select, as cooperating members of the bu- reau, thirty of the foremost sales organizations in the United States, of such variety that the whole field of salesmanship will be covered. The selection will be made from firms deeply inter- ested in the problems of increasing efficiency, reducing wastage and damage from failures and reducing the heavy loss from a constantly shifting force. "To provide for the preliminary experimental and research work of the organization, an annual payment of $500 for five years by each cooperating member is required. The business firms of Pittsburgh, Detroit and New York who initiated this movement have at the present time underwritten practically all of the sum called for in this budget. This preliminary financing, aggregating $15,000 a year from the thirty members, will be utilized in establishing the bureau, and particularly in the research necessary to work out in the course of time more effective methods both of selecting and educating salesmen. "The headquarters of the bureau will be at the Carnegie Institute of Technology in Pittsburgh, which has from its outset made vocational training its first aim. From this center con- stant contact with cooperating members will be maintained not only by bulletins and correspondence, but by visits of the staff to the cooperating members. The Carnegie Institute of Tech- nology will furnish offices, technical library facilities, and its complete and growing equipment of the best psychological appa- ratus for making mental tests. Special quarters for the bureau are being provided in a new biiilding to be erected during the coming year." 97 APPENDIX II SELECTION OF EMPLOYES BY MEANS OF QUANTITATIVE DETERMINATIONS* • By Professor Walter Dill Scott Northwestern University f I. Non-quantitative Historically, it has been the practice of many commercial and industrial organizations to recuperate their forces of employes by the employment of young boys and girls as helpers for menial service. The wages paid these employes were small, and no careful selection was deemed essential. These helpers were given no systematic instruction. There was no plan in routing them from one position to another in order that they might learn the whole or any significant part of the business. Promotion from the ranks was insisted upon in many instances, even though no attention was given to preparation for such promotions. The children who accepted such positions were frequently those who had already failed in school. Their failures were mainly due to lack of interest in school work, and this lack of interest could usually be traced to a lack of native intellectual ability. The ranks were therefore filled by many who had already proven themselves to be incompetents. No atternpt was made to make the most of this defective native ability, and yet the executive assumed that the higher positions must be filled by recruits from this untrained group of intellectual weaklings. This absurd method of selection is still in existence in many firms. In certain houses the selection was based upon an inadequate * By courtesy of Professor Scott, this article was furnished for use in the present report simultaneously with the sending of a copy by him to the Annals of the American Academy of Political and Social Science for publication therein. t The author of the article states that the names of the firms to which the experiments have reference will be given upon request to parties to whom the firms concerned are willing to have their names given. Pro- fessor Scott was a member of the Committee on Vocational Guidance of The National Association of Corporation Schools for the year 1914-15. 98 estimation of the technical ability of the applicant. This ability was judged by the number and nature of positions previously held or by a sample performance on the part of the applicant. This sample performance in some cases meant a try-out for one or more days. In some instances the native ability of the applicants has been estimated— but inadequately. This judgment was based on the ability of the applicant as expressed in general terms by friends or by some statement as to the grade in school to which the applicant had attained. Not infrequently the statements as to the intellectual ability were supplemented by general statements as to the moral character and health. In all the methods thus far referred to no records were kept of the findings of the employer and, in fact, no records could be kept because none of the findings were reduced to terms of measurement. II. Quantitative Determinations During the last two years the writer has been attempting to reduce to quantitative determination all methods heretofore used in selecting employes and to supplement these where necessary. One factor frequently recognized in the selection of employes is that of the Previous Record, but unfortunately this very im- portant factor is frequently regarded as useless because of the impossibility of securing trustworthy and usable information from previous employers. In attempting to secure more trustworthy and usable information the following blank has been devised and used successfully: Blank 1 1916 Dear Sir: Mr of has applied to us for a position as salesman and given you as reference. He states that he was employed by you as for a period 99 Will you please advise whether this information is cor- rect? Why did the applicant leave your employment? Please place a check mark in the space below that indicates the character of his service: Work .... Conduct . Ability ... Character Good Fair Unsatis- factory ( ) ( ) ( ) ( ) ( ( ( ( ) ) ) ) ( ) ( ) ( ) ( ) ov him? Would you be willing to re-employ him? Would you recommend him for the position applied for? Out of ten men filling the position which the applicant held with you, what would be his comparative rank? (If he would be the best, please mark his rank 1 ; if the poorest, please mark his rank 10; this estimate is, of course, only an approximation, but we will greatly appreciate your best judg- ment in the matter.) Sincerely yours. This blank does not encourage the former employer to use general and meaningless expressions, but whatever he says may be readily used in quantitative determinations. Unfortunately, a great flexibility seems necessary in the use of the blank, but where possible a demand is made that this blank should be filled out in full by the three last employers, if the applicant has had that many. With these blanks before him the employment man- ager can change the data to a percentage basis. For instance: if all the previous employers fill in all the blanks under "Good" and put a (1) in the last paragraph, the applicant is then given 100% on Previous Record. Corresponding percentages are given for all the various combinations found in the blank. 100 The Physical Condition of the appHcant is judged by an experienced physician, who makes his reports in quantitative terms. His viewpoint is not that of longevity, but of health and vitality in relation to the service to be performed. The applicant whose physical organism seems best adapted for the type of work contemplated would be given 100% on physical condition. Any- thing less than an ideal physical organism is graded less than 100%, depending upon the degree of defectiveness. Although experiments have been carried on, as here indicated, satisfactory results have not yet been secured ; but, at least, a good beginning has been made. The Native Intellectual Ability of the applicant is determined by means of a series of mental tests which test, not the learning, but the native ability. The series of tests employed are ad- justed to the general type of applicants and the nature of the service to be rendered. For some positions emphasis is placed on inventive ability, for others on initiative, for others on quick- ness of thought, etc., etc. The applicant is then graded by a percentage figure indicating the native ability in each of the qualities under consideration, as well as by a single figure to express the entire native intellectual ability so far as tested. The blank here reproduced is one that has been used with good suc- cess in testing salesmen for several organizations. The applicant IS given 100% in speed if he completes the blank in ten minutes, 0% if he completes it in 60 minutes, 50% if he completes it in 35 minutes, etc. He is given a grade of 100% in accuracy if he makes no errors. Correspondingly lower grades are given for various mistakes or numbers of mistakes. No attempt has been made to determine definitely the particular mental ability tested by this blank. Although its use has been discontinued because of improved substitutes, it might well be given as a fair sample. It was never given except as one of a series of tests, as no ade- quate conclusion can be based on the findings of a single test. 101 Blank 2 Test I Read the General Directions before you do anything else General Directions: Do what the printed instructions tell you to do. Do not ask the examiner any questions about the examina- tion. Do not ask any other person who is taking the examination any questions or watch anyone to see what he or she does. Work as rapidly as you can without making any mistakes. If you do make a mistake, correct it neatly. Do 1 first, then 2, then 3, and so on. 1. Write your name and permanent address here. 102 Instructions for 2, 3 and 4: After each word printed below you are to write some word, according to the further directions. Write plainly, but as quickly as you can. If you cannot think of the right word in about 3 seconds, go ahead to the next. 2. Write the opp 0- ; 5. Write words that 4. Write words that tell sites of the words fit the words in this what sort of a thing in this column, as column, in the way each thing named is. shown in the first shown in the first as shown in the first three. three. three. good — bad drink — water lily — flower day — night ask — questions blue — color up — down subtract — numbers diamond — jewel long- sing- oak — soft- build- measles — white — wear — July- far— shoot — shark — up- scold — quinine — smooth — win — • beef- early — answer — - canoe — dead — weave — banana — hot- wink — Atlantic — asleep — mend — Alps — 5. Add 17 to each of these numbers. Write the : an- swers as shown in the first three. 29 46 6. Get the answers ! to these problems as 18 35 quickly as you can. 60 77 1. What number minus 16 equals 20? 64 61 2. A man spent % of his money and had 49 71 $8 left. How much had he at first? 62 33 3. At 15 cents a yard, how much will 7 57 38 feet of cloth cost? 68 28 4. A man bought land for $100. He sold 74 65 it for $120, gaining $5 an acre. How many 53 41 acres were there? 67 50 5. If % of a gall Ion of oil costs 9 cents, 25 42 what will 7 gallons cost? 40 58 103 7. Write opposites for this col- umn, as shown in the first three. If you cannot think of the right word in about 10 seconds, go ahead to the next. 8. Write in each line a fourth word that fits the third word in that line in the way that the second word fits the first, as shown in the first three lines. If you cannot think of the right word in about 10 seconds, go ahead. bravery — cowardice color — red; name — John friend — enemy page — ^book; handle — knife true — false fire — burns ; soldiers — fight serious — eye — see; ear— ^ grand — Monday — Tuesday; April— to win — do — did; see — to respect — bird — sings; dog — frequently — hour — minute; minute — to lack — straw — ^hat; leather — apart — cloud — rain; sun — stormy — hammer — tool ; dictionary- motion — uncle — aunt ; brother — forcible — dog— puppy; cat- straight — little — less; much — to hold- wash — face; sweep — after — houseroom; book — to float- sky — blue; grass — rough — swim — water; fly — to bless — once — one; twice — to take — cat — fur; bird — exciting — pan — tin; table — clumsy — buy — sell; come — unless — oyster — shell; banana — 104 9. Do what it says to do as quickly as you can, but be careful to notice just what it does say. With your pencil make a dot over any one of these letters, F G H I J, and a comma after the longest of these three words: boy mother girl. Then, if Christmas comes in March, make a cross right here but if not, pass along to the next question, and tell where the sun rises If you believe that Edison discovered America, cross out what you just wrote, but if it was some one else, put in a number to complete this sentence: "A horse has feet." Write yes, no matter whether China is in Africa or not ; and then give a wrong answer to this question : "How many days are there in the week?" Write any letter ex- cept g just after this comma, and then write no if 2 times S- are 10 Now, if Tuesday comes after Mon- day, make two crosses here ; but if not, make a circle here or else a square here Be sure to make three crosses between these two names of boys: George Henry. Notice these two numbers: 3, 5. If iron is heavier than water, write the larger number here , but if iron is lighter, write the smaller number here Show by a cross when the nights are lon- ger : in summer? in winter? Give the correct answer to this question : "Does water run uphill ?" and repeat your answer here Do noth- ing here (5-1-7= ), unless )'ou skipped the preceding question; but write the first letter of your first name and the last letter of your last name at the ends of this line 105 10. Place in the bracket preceding each English proverb the number of the African proverb to which the English proverb corresponds in meaning. English Proverbs ) Married in haste, we repent at leisure. ) Answer a fool ac- cording to his folly. ) One swallow does not make a sum- mer. ) First catch your hare. ) Adding insult to in- jury. ) Curses come home to roost. ) Distance lends en- chantment to the view. ) We can all endure the misfortunes of others. African Proverbs 1. One tree does not make a forest. 2. "I nearly killed the bird." No one can eat "nearly" in a stew. 3. Full-belly child says to hungry-belly child, "Keep good cheer." 4. Distant firewood is good firewood. 5. Ashes fly in the face of him who throws them. 6. If the boy says he wants to tie the water with a string, ask him whether he means the water in the pot or the water in the lagoon. 7. The ground-pig said : "I do not feel so angry with the man who killed me as with the man who dashed me on the ground afterward." 8. Quick loving a woman means quick not loving a woman. Just as soon as you finish, give your paper to the examiner so as to get credit for having completed the work before time was called. The Technical Ability of the applicant is reduced to quantita- tive determinations by various devices. Applicants for statistical ■ positions are tested by means of the following statistical blank. This blank was devised for and used by an organization having a large amount of statistical work of the general type here indi- cated. The applicant is given 100% in speed if he completes the task in 25 minutes, and he is discredited 2% for each minute thereafter. He is given 100% in accuracy if he makes no mis- takes; 5% is deducted from his grade for each error. 106 His handwriting is determined by the appearance of his copy of the names and the numbers which immediately follow them. This transfer to quantitative determinations is made by means of the Ayres' Scale for Handwriting. Blank 3 Name Perform all the additions and .multiplications called for in the following problems : Addition Examples 17 26 27 72 23 45 52 19 45 23 42 51 24 14 47 13 86 78 67 72 38 47 83 39 86 68 23 67 78 36 91 82 19 81 54 77 35 23 Z7 68 54 63 45 26 36 86 67 86 96 39 41 53 67 78 86 17 42 38 91 36 52 67 86 37 32 26 51 47 82 26 86 34 23 96 44 27 24 83 19 45 23 78 . 45 72 36 72 14 39 62 63 35 19 67 23 68 23 47 86 54 54 • Multiplication Examples 7986 7869 9867 4523 5324 3425 8679 7968 7698 3542 3254 5423 107 Transcribe this page onto the next page. Make every figure and letter so that it can be read easily. W. H. Abelmann | 9685247 W. H. Abelmann | 1352680 Edward Adam | 573828 Edward Adams | 753823 Wm. Anderson | 56308 Wm. Anderson | 56308 Peter Andersen | 48365 Peter Anderson | 48365 Benj. Andruskowitch . . . | 100085 Thomas Andruskoweich . | 110085 John Anglin | 842745 Thomas Anglim | 842745 E. J. Atchison | 960261 E. J. Atcheson 1 960261 L. A. Auston | 960162 Bachalc Wm | 372819 Bachale Wm | 272819 J. Balderton | 100278 J. Balderson | 102278 August Bansback | 26710 Chas Banschback | 95525 Chas Barnett | 52617 Chas Burnett | 82910 Henry Burnett | 111456 Thomas Burrett | 867543 Andrew Bartoli | 142567 Paulina Bartold 1 55555 John G. Battershill | 42890 A. Batterson | 81392 A. E. Bauermeister | 185 Henry Baumeister | 67540 Wallace Beaman 1 10025 T. Baeman I 56470 108 Transcribe the preceding page onto tiiis page as is indicated on the first three lines. VV. H. Abelmann 9685247 W. H. Abelmann \ 1352680 Edward Adam \ 573828 109 Look at each pair of numbers. Make a cross after every pair where the two numbers are not alike (as shown here) : 286090 289060 976534 976534 821004 821004 598362 598362 774819 747189 612345 612345 400705 400005 309268 309268 978882 978882 538620 538620 700214 700214 800000 800000 613579 613572 200140 200140 531251 531251 732124 732124 414362 414362 349093 349093 955785 95785 267682 267682 127003 127030 281114 281114 620259 620259 731622 736122 443378 443378 907328 907329 X 760023 760023 216540 216540 297500 297600 X 856728 847628 X 107910 107910 700035 70035 X 864271 864271 380270 380270 91,5823 715823 X 329865 329865 574052 574052 738216 783216 895422 895422 635767 635767 942424 942424 432615 432615 133002 133302 325961 325961 473820 473820 562143 562942 997723 997723 714926 714926 831125 831125 642030 642030 214728 214728 192563 192365 643215 643245 571326 571326 800026 800026 304349 304349 515420 515420 915656 915656 767817 787617 821738 821738 702645 702645 610124 611124 503763 503763 921821 921821 869030 863090 274502 274502 485734 485734 697685 697685 806960 806960 378117 378171 145900 145900 238392 238392 39273 39273 901284 901284 861357 861357 450549 490594 546457 546457 673860 673860 896812 896812 782933 782833 638542 638542 596169 596169 405970 405970 924441 92441 133508 133508 908701 908701 116872 116872 805794 805794 248067 248067 753915 753915 310283 210283 601943 601943 439250 439250 583622 583922 927474 927474 845825 845825 646935 646935 767561 767561 385000 380000 466799 467699 674887 674877 589746 589746 291968 291968 109590 109590 323041 323041 347391 347391 252824 252824 861753 861735 486798 486798 719060 719060 The technical ability of the applicant for a selling position is determined by means of a selling performance as indicated by the following "Instruction to Applicants" blank. Each "Buyer" esti- mates the selling performance on a percentage basis. The esti- mates of these several "Buyers" are combined into a single grade expressive of the applicant's technical ability as a salesman. Whatever the technical ability is, it must be expressed in quan- titative terms before it becomes serviceable. 110 Blank 4 Instruction to Applicants In Room A is a merchant who is to be regarded as a "buyer." You are to enter Room A, introduce yourself to Merchant A, and try to sell hini some kind of merchandise. You will spend five minutes with Mr. A, then pass on to Room B and repeat your selling talk to Merchant B. You will keep this up till you have called on all the "buyers." You may sell any line of merchandise. The following are examples: automobiles, breakfast food, clothing, fountain pens, life insurance, office supplies, real estate, rubber goods, sporting goods, tobacco, typewriters, etc., etc. You may make the same talk to each "buyer." If you decide to sell an automobile, then you may assume that each of the merchants is an automobile dealer. If you decide to sell a breakfast food, then assume that each "buyer" is a grocer, etc. Present your merchandise for five minutes in such a way that the "buyer" will actually want to purchase your line. Sell as you would if the "buyer" were a real prospective. Prepare your line of talk in advance! The Personality of the applicant is an important factor, but one particularly hard to reduce to quantitative determinations. The method which the writer has been employing is to have several "Interviewers" pass judgment upon the applicant. This judgment is based on personal appearance, tact, industry, promise of usefulness to the company, etc. Whatever the qualities are that are judged, the "Interviewers" must summarize their judg- ment in a single figure, ordinarily, but not necessarily, a per- centage figure. The judgments of all the "Interviewers" are then combined into a single figure expressive of the personality of the applicant. Some of these five quantitative determinations cited are of more importance than others, but all must be combined into a single figure. This may be done by weighing the different figures according to their relative importance. The advantage of these different quantitative determinations and of the one summarized quantitative determination is that it makes it possible to com- Ill pare these original estimates with later success. The adequacy or inadequacy of the parts of the test or of the whole system of testing can thus be accurately determined. In this way any particular test is eliminated if the prognosis based on that test fails to correspond to the later history of the worker. The chief advantage of the methods indicated above is not in having the right methods of testing to start with, but in having a method of handling results which make it possible to eliminate the unsuc- cessful factors in the test and to strengthen those factors which are successful. This enables us to develop tests in the line of success as indicated by practice and not within the line which might be assumed by theory. If this method should claim the prerogative of "scientific," it would base the claim not upon the fact that it utilizes the findings of the medical examiner, not upon the fact that it utilizes the findings of experimental psychologists, but upon the fact that it reduces the entire process to measurable terms which may be checked up by known and recognized standards. 112 APPENDIX III THE WORK OF THE EMPLOYMENT DEPARTMENT OF THE DENNISON MANUFACTURING COMPANY (FRAMINGHAM, MASS.) * By P. J. Reilly Employment Manager.f The employment department of the Dennison Manufacturing Company was established on its present basis on January 1, 1914. This department was expected to improve the human relation- ships and to reduce the labor turnover of the industry (a) by making a careful study of the requirements of its various occupa- tions; (b) by engaging persons who could best meet those re- quirements and see that they were adequately instructed; (c) by transferring to other occupations any promising employes who were unadapted to the first job, and (d) by heedfully noting the reasons given by employes for quitting, so that steps could be taken to eradicate any common cause that was making employes dissatisfied and causing them to leave. Although studies of other phases of employment work were of assistance, it was mainly through the careful study given to the foregoing divisions of placement work that the employment department was able, in a large degree, to accomplish the expected results. In the Dennison factory about 10 per cent, of the force of 2,200 employes are engaged in the so-called skilled trades. This small group represents machinists, electricians, carpenters, compositors, electrotypers and pressmen. The balance of the force represents those who were unskilled when they were engaged. Many em- ployes in this group, however, are on jobs which require just as * This is the duplicate of an article which appears in the May (1916) issue of the Annals of the American Academy of Political and Social Science. Reproduced by courtesy of the author and of the editor of the Annals. t Mr. Reilly is a member of the Committee on Employment Plans of The National Association of Corporation Schools. 113 long an apprenticeship and whose requirements are just as exact- ing as the "skilled" trades. Of this larger group about 60 per cent, are females and 40 per cent, are males, and those in this group fol- low some ISO different occupations, many of which will be found only in this industry. The chief problem in selection has been to obtain satisfactory non-skilled employes for these jobs. The employment department prepared and has on file written specifications covering each of the jobs for which non-skilled labor can be hired. These specifications were prepared with the cooperation of the head of each factory department. They con- tain all the information that- each foreman's experience could yield that was of value in selecting employes for every occupation in his department. These job specifications also contain a brief description of the duties of the job; the schooling or the sort of experience that is desirable in an. employe; the posture of the employe, that is, whether employe will be sitting or standing, stooping or walking ; the preferable age, weight, and height of an employe; whether employe should be right — or left-handed ; the starting wage ; the time taken by an average employe to earn an advance in wages ; the probable maximum earnings of the position, and whether the job is steady or seasonal. The information revealed by these job analyses led to a grad- ing of jobs according to the usual maximum earnings of .each. The positions having the lowest earnings were designated as "C" positions ; those with a little higher wage range were designated as "B" positions, and the most desirable places of all with the highest wage range were designated as "A" .positions. By grad- ing positions according to the wage range of each group, the em- ployment department was able to fill vacancies in grade A by transferring an employe from a grade B position, or if none was available by transferring an employe from a grade C position. This policy of promotion from within opened new channels to advancement and has resulted in the organization obtaining a higher type of employe for the grade C jobs, because even these have the "prospects for advancement" which are needed to sustain the interest of the new employe who is ambitious. Requisitions for new employes are sent on a printed form to the employment department. These are usually sent at least several days before the employe is needed. For this reason the 114 company is able to select apfJlicants from its waiting list who are working elsewhere but who can be released from their employ- ment by giving adequate notice of their intention to change. Applicants are asked to give this notice to their employers before they are engaged by the Dennison factory. This reminds them of an obligation that they should discharge, and this custom has resulted in their invariably notifying, several days in advance, their department foreman in our industry of their intention of quitting. In selecting from our waiting list an applicant for a given position, we review the information which the interview and ap- plication blank have revealed. If it is decided that an applicant can meet the requirements of a certain job, we then give considera- tion to any influences external to the industry which may cause the applicant to leave. We ascertain why he seeks employment with us ; where he regularly lives ; what his earnings were in his former position, and why he left it. In most cases we can get in addi- tion other information from persons in our employ, the names of whom are usually given by applicants as references. When an applicant is engaged, the requirements of the posi- tion he is about to fill are clearly outlined to him. For this purpose the job analysis is followed so that every point which should interest the new employe will be covered. On the subject of wages, care is used to underestimate slightly the probable earnings, so that the new employe is not misled by a too favorable outline of the job. He is informed concerning the hours of em- ployment, of the advantages that come from steady work, and of the aims of our organization. When an employe reports for work he is given a copy of our "Book of Information and Instruction," on the cover of which is printed his name and his department number. This book explains the industrial service activities of our industry. This includes an explanation of the Dennison suggestion system, under which employes may obtain cash awards; the advantages of membership in the Mutual Relief Associations; the opera- tion of the factory savings and loan fund ; the circulating library, and other company activities which offer many advantages to the employes. This book also urges employes to avoid accidents and explains the provision of the Massachusetts workmen's compensation law, under which all employes are insured. 115 The new employe is then sent to the training department where he is taught the special knowledge necessary to equip him for his position. He is shown the most approved and best methods for doing the work, as determined by the time study work of the efficiency department. He is taught such correlated knowledge as the principles of machine constructions, how the ma- terials he uses are made, and how to care for them. When the employe is familiar with the work he is to do, and is able to earn a specified wage, he is transferred to the actual manufacturing department. The purpose of this training department is twofold. Its first function is to fit the new employe for his particular work in the plant. It relieves the foremen of the trouble and expense of breaking in new help. It is supposed to do the work more quickly and more thoroughly than the foremen have time to ac- complish. Its- second function is to pass on the vocational apti- tudes of the new employe. In a plant with so many different classes of work, it is impracticable to predetermine the exact apti- tudes that the applicants for the work may have. Psychological tests may do: this in the future, but for the present actual experi- ence at the job is the only safe guide. The employment department follows up the new employe dur- ing the first three months. If he is succeeding on the job, his wages will be advanced at an opportune time. Advances in wages are recommended in writing by department heads after each monthly examination of their pay roll. The productive records of the employe are referred to when such recommendations are made. These recommendations are sent to the employment depart- ment and are checked against the records of each employe which are on file there. In addition to the name, age, rate of wages, and length of service of the employe, this record shows fhe number of suggestions and the number of errors made by him. Usually the pay recommendations are approved by the em- ployment department and sent to the works manager for final approval. If a recommendation is questioned by the employment department, however, the reasons for not approving it are given to the works manager, who will not approve the recommenda- tion unless some additional reasons for approving it are given by the department head. 116 If an employe has not succeeded in the position in which he was placed, the employment department then takes up the matter of moving him to another department or of dismissing him en- tirely from the service. Complete information about an employe's shortcomings is obtained from the department head. Based on this information and upon an interview with the employe, a decision with respect to disposing of the employe is made. The matter of transferring employes from one department to another required very careful study when the employment depart- ment was organized. Department heads in the past had passed on to one another many incompetent employes, and most of them looked with suspicion upon any new move to give employes a second trial at another job. The policy of transferring employes from one department to another to promote them as well as to give another chance to the promising employes who failed to "make good" on their first jobs, however, has changed the attitude of the department hea:ds toward transferred employes, and the company now saves many employes to its service who would otherwise be lost. The reasons for transferring 219 employes in 1915 were: Advancing employes to better positions in other departments, 40 per cent, changing employes who asked to be placed on another line of work, 4 per cent. ; changing employes who were not adapted to the first job in which they were placed, 18 per cent. ; changing employes to other work when seasonal work for which they were engaged was finished, 29 per cent. ; changing employes to other positions for miscellaneous reasons, 9 per cent. Transfers of labor are recorded in the employment depart- ment only when an employe is taken from one department and placed in another under the supervision of a different department head. Employes may be advanced from one position to another in the same department without that fact being recorded in the employment department, or they may be changed from one kind of work to another within the same department. If this change is occasioned by the fact that the employe has not made progress on the first job, the employment department is notified. The Dennison Company has made a careful study of how to regulate the manufacture of seasonal goods. It has persuaded its customers to place orders very early in the year for holiday goods. It now makes large runs of staple articles at periods of 117 the year in which many of its facilities were formerly idle. It has developed an extensive line of specialties for St. Valentine's Day ; St. Patric]<'s Day ; Easter and patriotic holidays which come during the first part of the year, and for which it employes the same machinery as was formerly used only for Christmas special- ties. By dovetailing these activities it has kept its trained hands steadily employed, and has greatly reduced labor turnover and labor costs. When an employe decides to leave the company, notice of this decision is usually given a week in advance. The employment manager interviews the employe and records the reason on a printed "Leaving Slip." An effort is always made to get the true reason. Instances where an employe is dissatisfied either with his wages, his work, or the conditions under which his work is per- formed are of especial concern to the employment department. If any employe has suffered an injustice, steps are taken to prevent a repetition of the complaint. Because the employment department has been interested to record the reason given by each departing employe for leaving its service, and to tabulate this information at intervals, it has been able to discover a number of common causes of dissatisfaction which resulted in large numbers of em- ployes leaving. This information resulted in remedial recommendations being made which, when adopted, almost immediately resulted in stop- ping the exodus of dissatisfied employes. The number of em- ployes lost by this industry in 1913, because they were dissatisfied for one reason or another, probably was no greater than the number lost for similar reasons by other industries, because the average labor turnover of this industry was no worse than the average labor turnover of other industries in its class. However, by reason of the steps taken by the company to remove causes that tended to make employes dissatisfied, it was able to reduce these cases to such an extent that the total number recorded in 1915 represents only 17j^ per cent, of the total number who left in 1913 because they were dissatisfied either with their wage or their work. This appears to be a remarkable showing when it is re- membered that there are always in every industry types of restive employes, small in numbers to be sure, who seem to be dis- satisfied with any job, no matter how advantageous appears the opportunity for advancement it offers or how fair its wage may be. 118 When it is necessary to discharge an employe, the department head notifies the employment department of his intention and states the reason for such a step. After considering all the cir- cumstances, sometimes another trial is given to the employe, either on the same job or on another job. In the event of an employe being discharged the department head could not prevent his being placed in another department if it was decided to re- engage the employe later. The works manager only is empowered to exclude absolutely an employe from the organization, and this is done only in very rare cases. The effectiveness of the work of an employment department is usually judged by the extent to which it has succeeded in re- ducing the changes in the personnel of its industry. Needless labor turnover is an expense that burdens many industries. A conservative estimate is that the expense of replacing an ex- perienced hand averages $50.00 in this industry. On this estimate the savings represented by the reduction which has been effected in the labor turnover since the employment department was estab- lished on its present basis approximates $25,000. The figures of labor turnover for this industry which represents not only em- ployes who quit work, but also those who were laid off or dis- missed for any causes, were: 1911 — 68 per cent.; 1912 — 61 per cent. ; 1913—52 per cent. ; 1914—37 per cent. ; 1915—28 per cent. Although this marked reduction in the changes of the work- ing force is in itself a sufficient justification for establishing and maintaining a central employment department, the Dennison Com- pany feels that other values in addition have accrued from the deeper study it has given to its employment problems. It has been worth a lot to learn from its own experience, for example, how vital to the contentment and efficiency of a working force it is to have as foremen men who, in addition to good judgment, have a manner that invites the friendship as well as the respect of employes. In the departments headed by men of this sort, an employe was rarely distressed because a reasonable request had not been readily granted, or because the foreman's attitude in handling a matter requiring tact as well as firmness had been such as to invite friction. Foremen who were unfeeling and arbitrary in handling matters unimportant in themselves, had caused many valuable employes to leave the company, despite the fact that 119 their earnings were very high and that their work was very in- teresting. It has been well worth while also for the corporation to have maintained through its employment department a point of contact with the employes that has resulted in their feeling free to ex- press themselves with reference to the adjustments that they thought should be made in their work or in their wages, when- ever a foreman seemed to them to be insensible to their deserts. It is because the employment department has been in a posi- tion to render such effective cooperation to heads of departments and to extend such encouragement to those employes who may have found themselves temporarily out of harmony with their work environment, that its work in this industry has been so well worth while. 120 APPENDIX IV THE RELATION OF HOME CONDITIONS TO INDUS- TRIAL EFFICIENCY* By M. B. GiLSON Employment and Service Superintendent, Joseph & Feiss Company For some time various agencies which aim toward the better- ment of society have realized that no lasting results can be secured without the cooperation of the home. The school, the church, the hospital, ■ organized charity, and in fact all organizations which assume it is their responsibility to help those with whom they come in contact are faced by many problems which cannot be solved without a knowledge of home conditions. Of late years industry, too, in looking more deeply into the causes of ill health and dissatisfaction among workers has discovered that the re- moval of these causes cannot take place within the four walls of the factory alone. Many firms to-day avowedly profess to do all in their power to maintain the health of their employes and to further their training and education. The greater advance an organization makes in this direction, the more intelligently it solves its problems connected with the human element, by so much does it recognize the close relationship of the home to the job. The fact that there are armies of young workers entering the industrial field complicates the question. To say that young men and women do not need friendly aid and advice as to their per- sonal problems is to confess ignorance. And it is obvious that many of these personal problems are vitally connected with home conditions. When the home and the school turn out young people trained in responsibility and with character and habits which fortify them for life and its difficulties, and when the state does more than it now does toward training in citizenship and toward * This is the duplicate of an article which appears in the May (1916) issue of the Annals of the American Academy of Political and Social Science. Reproduced by courtesy of the author of the article and of the editor of the Annals. 121 offering healthy recreation to its family, perhaps this burden will not fall so heavily upon industry. But at the present stage of sociological development industry must cooperate with all other agencies, and, most of all, with the home, in training and educating and developing its young workers if it wishes to maintain health and prosperity among them. The physical conditions of a factory may be up to the highest standard of the times ; sanitation and ventilation may be as nearly perfect as possible; rest-rooms, lunch-rooms, recreational facili- ties, shower-baths and other comforts and luxuries may be provided by an employer whose aim is to make the working condi- tions of his people as pleasant as possible. Hours may be reason- ably short, wages may be high, a system removing friction and worry in connection with the work itself may have been installed. And yet, the employer who is intelligently attempting to reduce his labor turnover and to improve the personnel of his organiza- tion knows that these things alone, while essential, will not suffice. He recognizes that the health and well being of his people are fully as dependent upon the conditions which confront them outside of the factory as upon those existing within. He recognizes, too, that these conditions outside of their work con- stitute fully as important factors in their steadiness and efficiency as any working conditions he may provide. As for the "right" of the factory management to interest itself in the lives of workers outside of the factory, it is not only a "right" when it aflfects the worker in his work, but it is a duty which is a natural outgrowth of executive responsibility. The progressive manager knows full well the value of hygienic fac- tory conditions for his workers, but of what avail is it to provide healthful working conditions from seven in the morning until five in the evening if these same workers are to live in unhealthful surroundings and under improper influences from five at night until seven in the morning? Interest in the hygiene of the worker cannot be truly effective, therefore, unless it attaches itself to the worker at all times. It is all very well to use such trite ex- pressions as "paternalism" and "benevolent despotism" and other hackneyed phrases in connection with this subject, but actual ex- perience confirms us in our belief that people are not "grown ups" merely because they are termed so. Unfortunately most people are as ignorant of the laws of health as babes in arms. It is 122 all very ideal to say that we should manage our own lives. No one denies that this is an ultimate goal toward which every in- telligent agency for the betterment of mankind should be con- stantly aiming, but in the meantime it is hardly practical to expect a perfect democracy to spring into being full fledged. In other words, before we can manage our own affairs we must be taught how. For example, when we consider the numbers of foreign people who are working in our American industrial establish- ments, it is absurd to talk about thrusting them into wholly new surroundings and difficulties without any friendly advice and instruction from those who have a thgrough acquaintanceship with these surroundings. The modern tendency is to try to avoid the mistakes of others. It is unscientific to proceed by "the rule of thumb" ; in other words, science and knowledge are to proceed from where the other fellow left off in order to eliminate the constant waste and duplication of past achievement. Now, can- not this be carried into the field of modern hygiene? Would it not be inexcusable to "let people work out their own salvation" if by so doing their health and the health of the race is affected? If, for example, an employer wishes to know why a worker has con- stant headaches and is therefore unfitted for his work, and if he has done everything that can be done inside the factory to discover the cause, who can question his right to go into the home of the worker in the effort to learn facts which will make it possible for him to eradicate the headaches and to retain the worker? People who shrug their shoulders and say this is "impertinent interference" would prefer, possibly, to let the headaches go on until the worker became so inefficient that discharge would in- evitably follow. The intelligent employer; however, does not follow this laissez faire policy. He knows that by reducing the causes of inefficiency he is helping to make better workers and better citizens and a more stable and steadily prosperous body of employes, and he considers it his duty to use every honest means to attain such a desirable end. We hear a great deal to-day about "occupational diseases," about employers being responsible for the lack, of security and continuity of employment, about the unfitting of women for motherhood because of industry's demands and about the lack of opportunity to rise in the industrial world. These charges, however, cannot be laid at the door of industry itself, but of in- 123 dustrial administration. Industry, badly regulated, gives justi- fication to such charges, but industry properly regulated will pro- duce quite opposite results. In any case, intelligent employers welcome the opportunity to join with statisticians and investiga- tors in an effort to seek the truth, and if the truth cannot be found within the factory walls, it is their duty to get it outside. Society justly holds industry responsible for certain results; employers, therefore, must not only be permitted, but must be en- couraged to use their fullest intelligence in attaining these re- sults. Furthermore, it is society's duty to support them in their efforts instead of indulging in the ill-founded, destructive criti- cism which has become the fashion, especially among inex- perienced theorists and academicians. The fundamental factors of home influence are physical, men- tal and moral. It is obvious that as far as the physical conditions of the home are concerned they have a vital connection with the health of the worker. A man who sleeps with his windows closed and who lives in unsanitary surroundings will naturally suffer in due course of time. We have found when making home visits, people sleeping in small bedrooms with the windows tightly closed and gas stoves burning. Sometimes bedrooms are badly over- crowded in order to keep intact the "parlor", and dini^ng-room. The case of two girls who were suffering from constant head- aches may be instanced, who when visited at home were found to be living in the attic of a new frame house. Their father, mother, three boys and two girls were crowded in this small attic with no privacy whatever, and with the windows tightly corked and a large gas stove without a flue. The father had re- cently bought the house and was renting to some families the first and second floors as well as a small- house in the rear where he had formerly lived. He had stopped working and was hav- ing a beautiful time on his rent money and the pay envelopes of his two daughters. He was finally persuaded to move his family downstairs, and the effect on their health and attitude of mind was almost immediate. Numerous cases could be cited of people who are anemic and pale during the winter months and who immediately begin to take on color and show more vigor when summer comes. It is hard to convince such people that winter air in their bedrooms is not deadly. Many foreigners do not rdalize that what kept them alive in the old country was prob- 124 ably the fact that they were engaged in field work through the day and that a close bedroom did not therefore work havoc as it does to indoor workers. In cases where employes complain that they are not feeling well and the work does not agree with them, it is generally found that living conditions are in reality responsible. When these have been remedied, their attitude toward their work invariably changes. In Cleveland most of the modern houses for working people are single or two family houses with a fair amount of ground. The majority of the newer houses have bath-rooms, the acquir- ing of which is as yet a matter of conscious pride. Bath-rooms, in other words, are a matter of style and distinction in the neighborhood. You belong to a little higher stratum of society if you have such a luxury. What's the difference? We all know necessities grow out of luxuries and that "style" has played an important part in raising the standard of living. There is an en- couraging tendency on the part of our workers to build their own homes, to have modern plumbing, and to have enough ground for a vegetable garden and flowers. There is probably no large city in the country whose workers' homes show more pride in Howers and lawns than do those of Cleveland. The progressive em- ployer realizes that the rnore comfortable the homes of his em- ployes are, the better and more desirable workers they make. It is only the most benighted and ignorant man who does not think it is "good business" to hire people who are aiming to pro- vide themselves and their families with pleasant homes. Every • encouragement should be offered to the worker who is living in unhealthy, disagreeable surroundings to get into a better en- vironment as soon as possible. People who take pride in their homes are invariably more thrifty, ambitious, and reliable, and it has been our experience that wherever we have been able to induce a man to improve his housing conditions it has resulted in making him not only a steadier and more efficient worker, but also a more self-respecting member of the community. But responsibility cannot end with an attempt to better the physical condition of the home. The moral and mental atmos- phere has, also, an untold influence on the efficiency of the worker. Centuries of tradition, superstition, and wrong thinking have left their imprint on all of us, and in some homes science and reason and logic are eyed with suspicion and only reluctantly 125 granted a lodging. It is difficult to persuade a woman to have her eyes examined by a competent oculist when her mother and grandmother have convinced her that ear-rings will cure sore eyes. It is hard to root out of some foreign born men the deeply imbedded idea that their wives are beasts of burden. So many points of view come to light, so many warped ideas which have been passed on from generation to generation, and the need for tact and wise dealing and patience is infinite. Through close contact with the homes of working people one is more and more awakened to the problems which confront women in industry. Constantly we must keep in mind that the girl workers of to-day are the wives and mothers of to-morrow. In an industrial establishment where the health of the people is of first importance, a girl stands a far greater chance of proper physical development than she does in the average home where, as any one acquainted with this problem well knows, the stand- ards and ideas of health are almost medieval. As for the much debated question concerning the influence of industry on mother- hood, we must keep in mind that motherhood means not only the physical function of producing offspring, but it means as well the bringing up and training of children. A rightly conducted business, requiring high personal standards and affording train- ing such as is not obtainable elsewhere, not only develops healthier and more competent people, but also develops their character. And, surely character is the sine qua non of such an exacting profession as that of motherhood. Let us not be sentimental in the consideration of "women in industry." I know many a girl to-day who will be far more careful in the choice of a hus- band because she has a good job and because she is facing actual conditions of life than if she did not have the opportunities which modern industry furnishes to women. But, whether or not we welcome these broadening opportuni- ties, we must not blind ourselves to the accompanying problems which present themselves. Beginning with the young girl, there is the growing independence, the impatience with parental re- straint, the cheap amusements which are slowly but surely vitia- ting her taste and lowering her standards. The question of recrea- tion alone is a far-reaching one indeed. How can a girl develop into a good worker when her parents permit her to frequent cheap dance halls and movies any and every night of the week? Or, 126 going to the other extreme, how can she work with any spirit and interest if her parents obdurately refuse to permit her to go any place and, though she may be brimming over with life and youth, she is practically a prisoner in her own house ? We have had girls who have grown pale and listless and have lost all interest in their work because their parents would not permit them to invite any of their friends to their homes nor would they let them out of their sight in the evenings. The intelligent manager realizes keenly the wisdom of interesting the families of his workers in this problem of sane and natural recreation. He knows that the dissipated person is not a good earner nor a satisfied, happy worker, and that men and women who are interested in good books and good music and healthy, wholesome forms of amusement are those who qualify for advancement and therefore belong in the ranks of the "desirable." And he also knows that preaching to people to be good will not keep them from spending their idle time unprofitably. There is probably nothing the state could do which would accrue more to the benefit of working people than to furnish profitable recreational facilities to them. It is in- sufficient to pass laws which shorten working hours without proper provision for safeguarding the additional hours of recreation which result. Enlightened management recognizes that these additional hours may be devoted to uses which destroy instead of build up. For this reason it realizes its responsibility, not only to furnish wholesome recreation which develops both body and mind, but sees here another reason for the cooperation of the home. In connection with the question of women in industry, we must consider the woman with "two jobs." Women are generally called on to stay at home when there is any sickness in the family. The idea of paying a competent neighbor or calling on the Visiting Nurses' Association instead of staying away from work to take care of a sick relative is of slow growth. There is need of much education in the home on this very subject of irregularity of attendance. It is not enough to have a worker im- pressed with a sense of responsibility. The worker's family also must have the right attitude toward this question. Home visits frequently disclose the fact that women who work all day in the factory also cook and scrub and wash at home in the even- ings. A case of this sort was revealed a couple of years ago when 127 we were canvassing the shop to see who needed to join the classes in English for foreigners. Peter R., a Hungarian who had come to America ten years ago and had become fairly proficient in English, demurred when he was told that we wished his wife, who had come over years later, to go to school and learn English from 4 :30 to 5 :30 twice a week. Said Peter, "But who'll get my supper on Tuesdays and Thursdays if she stays at the factory to learn English?" When we told him Barbara worked all day long in the factory and worked just as hard as he did, and that it would not hurt him in the least to cook the supper two days in the week, his dignity was obviously injured. It was only after much argument that we convinced him cooking was not Bar- bara's sacred and divine duty since he had permitted her to take upon herself the responsibility of a factory job. He finally agreed to cook his own supper Tuesdays and Thursdays and to-day Barbara speaks English and Peter knows what it means to have two jobs. Whenever circumstances warrant, we refuse to keep in our employ married women. They are, as a rule, irregular in attendance and burdened with household duties, and we often find their husbands are depending on them for support. This un- written law, we have found, has materially lessened the early, precipitate marriages in our factory. Girls of 18 used to say, "I want off next Friday to get married. I'll be back Monday," but now we often- hear, "Well, I'm not going to marry him until I know him better" or "You bet I won't work after I'm married. A girl has enough to do to keep house." The idea that it is wiser for a girl to have a bank account than to marry without a penny and buy everything on the installment plan is also gaining headway. This matter of the bank account is one of the most vital occasions for home visits. It is often found that a girl's earnings are low because she has no incentive to make money. In an astonishing number of cases a worker passes over an unopened pay envelope to her mother even when no financial necessity for this exists. When a mother is visited and urged to allow her daughter to deposit, in our penny bank all over a certain sum or a certain percentage of her earnings each pay day, it is surprising how quickly the girl's earning power increases. Many parents consider a child merely a financial asset, and it is hard to convince them that they are removing all incentive from him by requiring him to turn over his unopened pay envelope. 128 In some cases parents say, "No, my son shall never pay board. That would make him too independent. He must give me his pay." Besides removing the incentive to earn, this attitude on the part of parents encourages early and ill-considered marriage as the only means of securing financial independence. But if home visiting discloses the necessity of urging parents to permit their children to save, it also reveals the value of training in spending. Unfortunately the question of foreign parentage brings its difficulties in this matter. A girl coaxes and whines and makes life miserable for her mother until she is per- mitted to buy a white willow plume. If the mother protests, she is told that she does not know how girls in America dress and she reluctantly yields to this argument. A mother complained to us recently that her daughter was so addicted to the fancy shoe craze that she had thirteen pairs of shoes in her wardrobe and wanted money out of her last pay to buy another pair. This mother had never allowed her daughter to have a stipulated sum of money for clothes, and some time after we persuaded her to do this in order that the girl might have some experience in pro- portionate expenditure, she told us that "Jennie soon found she had to spend her money for some other things besides shoes." When it is possible to convince parents of the wisdom of letting their girls and boys learn how to spend, the results speak for themselves. Sometimes home visits are necessary for the sake of securing cooperation on the subject of simplicity of dress. It is no longer a debatable question that elaborate clothes and jewelry and powder and paint have a demoralizing effect on the character and ability of a working girl. One mother said, "My other daughter works down at K's, and she says the girls look something swell when they go to work, velvet skirts, pearl ear-rings, just as dolled up as if they was going to a party. I think that's nice for them girls." Some parents, on the other hand, are very responsible and co- operative in encouraging neatness and cleanliness and simplicity of dress. Sometimes radical measures have to be taken to bring about higher standards of cleanliness. Occasionally a very clean girl will come from a very dirty home, but geneirally when a girl is careless about her appearance the cause of the trouble can be located at home. In connection with this it may be mentioned 129 that the influence of a sanitary, well kept, orderly factory on the home is immeasurable. It is self-evident that .the problems which come up in connec- tion with home visits are of infinite variety. The influence of quack doctors, of the idea that patent medicines are panaceas, the ignorance of food and diet (about which a separate chapter could be written !) and of the simple rules of hygiene, the curse of modern funerals and their attendant expense, all these and more confront the home visitor. Sometimes old wives' remedies present ludicrous situations. A good example of this is illustrated by the following: The factory nurse visited a girl who had sore throat and found she had wrapped a red herring around it and had drunk some kerosene. A mother was informed that her daughter was in danger of injuring her eyes by doing fine embroidery for her trousseau until late every night. During the conversation the nurse said, "You know her eyes are not very strong. She wears glasses." "Oh,'' replied the mother, "she don't wear glasses for her eyes. She wears 'em for her stummick." If any service worker in a factory expects to find an intelligent conception of the human body and its needs in the average home, and if she thinks she can bring about a revolutionary change in ideas by home visiting, she will be disappointed. But the evolutionary change is evident to the close observer, and the growing confidence and cooperation and willingness to listen to another viewpoint become more and more noticeable as time passes. Sometimes very intimate problems present themselves for solution. A girl whose invironment is hopelessly bad may have to be advised to leave home and live with decent people. Some- times a father has to be summoned before a municipal court and warned or sentenced. Frequently men must be forced to go to work when they are lazily falling, back on the women of the family. Occasionally a drunken father must be taken in hand and a timid girl instructed in detail how to assume a healthy de- gree of self-assertion. A case in point is that of Rosie T., whose father celebrated the receipt of his pay envelope every Saturday evening by beating her mother. Rosie was naturally much worried over this, and once in the intimacy of a chat in her home she said she was at a loss to know what to do. The idea of filing an objection with her father personally seemed to require too much courage. "Talk to him !" she said scornfully. "You can't talk to 130 him. He's too bull-headed." Her mother was advised to get the father's pay herself, and Rosie was told to tell her father when he objected to interference with his customary amusement that "American men do not beat their wives" and, in short, boldly to face him and "stand up" to him. The following Monday morn- ing Rosie came in to the Service Department with beaming face. "Oh!" she exclaimed, "It worked fine. My pap came home awful mad and sez 'Who's got my pay envelope?' An' I sez 'We have, and he started to hit my mother and I sez 'Here's where you get off ! No woman in America has to take a lickin' off no man.' An' you ought to seen him how supprised he was to see us standin' up for ourselves." After that Rosie said, "Somehow I don't know what it is to feel afraid any more. I can talk up for myself now and he knows if he don't behave we won't stand for it. I feel bold now !" It is no less necessary to get the "home folks" to understand the shop methods and system of work than it is to attempt to bring about an intelligent viewpoint in relation to health, and a higher standard of living. Slipshod methods in many establish- ments account for much of the lack of responsibility of workers toward their jobs. Men who have worked in places where fre- quent absences were taken for granted occasionally resent any strictness on the part of the organization which demands regular attendance, but a visit to the home and a frank discussion with the wife or mother of the necessity of "being steady on the job" will generally bring about an honest attempt to help Jack or Jim to be more prompt and regular. Moreover, patience and tact must be exercised in educating the home people to an under- standing of modern progressive business methods and the reasons for them. A woman who is acquainted with the fact that an organization has just enough workers to turn out its work and that every division is responsible for feeding another division will be much more likely to pay a neighbor or relative to take care of her when she is sick than to ask her husband or daughter to stay at home. The following letter from a mother of one of our girls shows an understanding of "standards" and "averages" which could not have been obtained except through an intelligent interest of the home in the shop : 131 Dear Madam : — I thought I would drop you a few lines letting you know my girl comes home from work all disgusted she worries because she dont turn out her standard she allways says Ma it dont agree for two chums to work side by side and thats Anna and me I always tell her that she dont make as much as she used to and she sayes she could make more if she would try but that Anna and her talk too much She says lots of times she dont feel like talking but An asks her one question and then they keep it up. When Anna is on the other machine for a half day Susie makes good when she comes back again they talk and then that brings down Susie's average. Susie didn't want to tell you about this but she always complains at home that she dont like to work aside of her chum they have to much to talk about. I like Anna very well but she believes in talking to much. Miss G. don't you think I was right of letting you know of this? Yours respectfully, Mrs. R. It is this kind of understanding and cooperation which home visiting is an important factor in securing, and the degree, to which they exist often determines the steadiness and reliability of the worker. Moreover, every intelligent manager knows how much attitude of mind has to do with an employe's success. A person who hears constant criticism of his place of work and meets with scornful disapprobation of shop discipline and system at home is not likely to be in a frame of mind which induces honest effort. The subtle influence of the home atmosphere can- not indeed be measured, but it may safely be argued that no other factor except possibly the work itself so deeply affects the efifi- ciency of the worker. The occasions for home visits are many, and may be made innumerable. The families of new workers should be visited as soon as possible, primarily for the sake of friendly contact. Cases of sickness and discipline obviously need to be followed into the home. An investigator recently seemed surprised at the lack of resentment toward our "intrusion" into the homes of our people. She was invited to accompany a member of the ser- 132 vice department one morning when fifteen visits were made (an automobile expedites iiome visiting for the department), and she was frankly astonished at the welcome which was given the visitor in every instance. Home visiting has become such a matter of fact among our employes that no one questions the honesty of motives prompting it. A number of years of experience have proved that the Clothcraft Shop employes at least not only do not consider it "impertinent," but that they welcome the interest which home visiting signifies. In fact parents frequently come to us to ask our help in solving problems at home. There must be absolute frankness of approach and treatment, however, in every case, as nothing could more injure the work of a service depart- ment than insincerity. The "handling of labor" which means reducing people to au- tomatons is one thing, and that which means a deep understanding of the psychology of human nature and of the intricate and devious methods by which people are inspired to become better workers and better citizens is a vastly different thing. And any one who approaches the subject of this newer and more intelli- gent kind of handling or rather guiding of human beings will confess himself bafHed without both a thorough understanding of home conditions and the cooperation of the home. Finally, in this as well as in all other phases of factory service work, the underlying purpose must be a genuine desire to further the ad- vancement of workers by education and cooperative training, and the service worker must ever have vision born of the words of Marcus Aurelius, "Men exist for the sake of one another; teach them, then, or bear with them." 133 APPENDIX V TRAINING COURSE OF THE AMERICAN STEEL & WIRE COMPANY IN METHODS OF PRODUCTION * By C. R. Stuedevant Educational Director f The training course work which the American Steel and Wire Company has been conducting for the past four years pos- sesses certain unique and commendable features. It has been developed into an intensive and practical course of six and one- half weeks, suitable for regular salaried employes from all de- partments though especially organized for veteran salesmen. It is not intended for new men. The course covers a thorough study of materials and processes involved in the manufacture of all varied wire products of the company. The employes taking the course are formed into successive classes of about twelve men to the class. Each department head selects from his active force the number of men apportioned him for any class, and he gives them about three weeks notice of this appointment. Those particular men are selected who can best be spared from their work at that time and whose home condi- tions will permit of their being away for the required period. At the time of appointment the men are advised to acquaint them- selves with certain prescribed reading matter both to better pre- pare themselves for the work and also to form the habit of study. After the completion of the course, the men return to their respective positions. The work consists of mill inspection trips in the forenoons under competent guides, lectures, discussions and thorough quizzes in the afternoons, and a study each evening of a specially pre- pared lesson for the work of the following day. The whole course has been arranged into well-defined "packages" — one for each day, complete in itself and bearing an orderly relation to all * For a detailed account of this course, see The National Association of Corporation Schools Bulletin, Vol. II, June, 1915, pp. 31-34. t Mr. Sturdevant is a member of the Committee on Vocational Guid- ance of The National Association of Corporation Schools. 134 others. For example, the first day's work consists of a laboratory study of chemistry as related to iron and steel making ; the second day's work is concerned wholly with the conversion of iron ore into pig iron; the third, with the conversion of pig iron into bessemer steel ; then one day is devoted to the study of the open hearth process, and one to the hot rolling mill where the ingot is converted into wire rods. In similar manner, a whole week is given to the study of all essential wire drawing processes. A full set of booklets has been prepared for this course, one for each day's work. The classes spend three weeks in the Cleveland District, one in the Pittsburgh District, and the balance of the time in the Worcester District. This plan affords them an opportunity to study all distinctive processes involved in the making of the Company's products. Thus far twenty-seven classes have com- pleted the course. A written examination is held on each Saturday morning covering the work of the week. Later, the examination is carefully reviewed, all errors are pointed out, and the men are advised of their gradings. At the end of the course a fairly com- plete report of each student, including statements regarding his conduct and efforts, is made out for the company officials. No greater stimulus is needed to incite the men to their very best effort to secure favorable ratings and reports. The training course teaches the men much concerning their own work, and their efficiency is correspondingly increased. This constitutes an immediate return well' worth the cost. Their minds become enlarged and more active, their visions broadened, their imaginations are quickened, and their powers of perception, observation, and expression are likewise developed. During the course they touch upon many subjects that are new and of special interest. Many of the men are stimulated and encouraged to fol- low up these new lines when they return home. The men acquire a fuller and much more accurate conception of the work the Company is doing, and of its general policies and ideals, and they feel under obligation to the Company for having offered them such an exceptional opportunity to add to their previous knowl- edge. They become more loyal and more ambitious to improve their records and to advance. The course tends to promote better inter-department teamwork, and it greatly strengthens the working organization. 135 APPENDIX VI TRAINING TECHNICAL GRADUATES AT THE WEST- INGHOUSE ELECTRIC & MANUFACTURING COMPANY * By C. R. DooLEY Secretary Education Committee f I. Selection Special native ability, personality, temperament, ambition, special education, geographical location, number of men desired for each branch of the Company's work, are checked up carefully in making each appointment. Special representatives from the Educational Department visit the important technical colleges each year and interview per- sonally each member of the senior classes in Electrical and Me- . chanical Engineering who is sufficiently interested. Appointment is based upon the result of the interview, the desire of the student, and the recommendations of the professors. The interview record makes note of activities, both in and out of school, dating back to High School days or earlier. The result is a limited number of carefully examined, pur- poseful men as compared to a much larger number of miscel- laneous types and for the most part of indefinite ambitions. 2. Object Absolute devotion to the ideal of getting the right man on the right job is the constant aim of the Educational Department. This is not only humanly fair to the men, but necessary to the highest efficiency of the Company as an organized unit. This obtained, the next step is to give each man such specialized training as the circumstances in each case demand. * East Pittsburgh. t Mr. Dooley is a member of the Executive Committee of The National Association of Corporation Schools. 136 3. Method To accomplish this each man is placed on a schedule of Manufacturing Department work and Educational Department class supervision, in order to bring him into personal contact with the following influences: a. General industrial atmosphere. b. Variety of types of our product. c. Variety of types of older men, each an expert in some line. d. Variety of types of fellow students. e. Advice of Educational Department, men devoting their en- tire time to the study of men. A complete record of performance of each man is kept under a number of different characteristic headings. In the course of the year each student will have some fifty to one hundred differ- ent marks covering different personal characteristics and made under different circumstances by different division heads and class leaders employing his service. Each man must choose his ultimate place, and the Company must approve his choice. The final result is therefore based .upon the old simple try- out method — so highly supervised that no performance is lost sight of and the error of judgment of a single observer is ironed out. The last two or three months of the year are given over to special training including experience in the department toward which each man is headed and an increased amount of class-room work. 137 APPENDIX VII THE EMPLOYMENT FUNCTION IN MANAGEMENT (Tentative Outline of Course to be Given in the Amos Tuck School of Administration and Finance, Dartmouth College) * I. The functionalized employment executive. His functions. II. The functionalized employment executive. The administrative and executive problems which make him necessary. III. Organization of the employment executive's department and its relations to other . departments, ; - - 1. As to selection. 2. As to training. 3. As to general supervision. 4. As to records. 5. As to relation to other departments. IV. Selection. 1. Sources of supply. 2. Methods of selection. V. Analysis of processes and classifications of /'jobs." 1. As to selection. 2. As to training. 3. As to promotion. VI. Training; 1. Organization. a. Within plant. ... b. Coop.eration with educational institutions.. * For the above outline the Association is indebted to Professor H. S. Person, of the Amos Tuck School,- ..through the good offices of Mr. A. C. Vinal, of the Committee on Vocational Guidance of The National Association of Corporation Schools. 138 2. Purpose. a. General. b. Specific operations. VII. General supervision. 1. Relation of employes to foremen and minor executives. 2. Promotion, transfer, and discharge. VIII. Working conditions. 1. Equipment. 2. Health. 3. Conveniences. 4. Pleasure. IX. Relations to the community. 1. Housing. 2. Educational institutions and facilities. 3. Pleasure. 4. The problem of paternalism. . X. Employes' cooperative associations. 1. Mutual benefit. 2. Insurance. 3. Banks. 4. Stores. 5. Other. XI. Records of employes. 1. Applicants. 2. Attendance. 3. Efficiency. 4. Discharge. 5. Other. XII. Administrative problems relating to personnel. 1. Wage system and profit-sharing. 2. Organized labor. 3. Participation of employes in management. 4. Consent. 5. Industrial democtacy. 139 APPENDIX VIII THE HUMAN INTERPRETATION OF INDUSTRY By Professor H. C. Metcalf (Course Given in the Series of the Commission on Extension Courses, Boston, 1915-16) Synopsis of Subjects Treated Growth of interest in the human factor in worlf. The organic unity of man ; life needs, interests, and motives. Occupational classification. Significance of consumption. Production and the individual. Value and the forces behind it. Entrepreneurship and capitalistic industry. Labor as a factor in production and its human cost. Human problems in large-scale management. The distribution of wealth and the place of business profits therein. Some practical aspects of the wages question. Income: service income and property income and their re- cipients. Employers' welfare work. Industrial health. Diseases of occupation. Industrial accidents and safety. Unemployment. Social insurance. Profit-sharing and labor copartnership. Scientific management and human relations. 140 APPENDIX IX SUGGESTED TRAINING COURSE FOR SHIPYARD FOREMEN, LEADING MEN, AND THOSE RESPONSIBLE FOR THE PROTEC- . TION OF OTHERS By H. C. Metcalf A considerable number of responsible heads occupy positions as department forenien, general foremen/ leading; men, etc. All of these men have a number of duties quite sknilar in important respects. All are responsible for the handling and control over men ; all are responsible for handling raw material or partly fin- ished products; they have more; or less supervisory power; they are responsible for equipment, routing, etc. These important phases of shipbuilding all the responsible heads could study with much profit to themselves and to the company for which they work. There is. herewith submitted a suggestive outline for such a course: I. Fundamentals (}f Business Organization and Management. ■ 1: Brief development of modern industry; special emphgtsjs on history of shipbuilding here and abroad. 2. Leading principles of modern economics. 3. Careful study of own organization,, its ideals, its growth and development, the inter-relation of the various depart- ments, relation to other industries (iron, steel, wood, etc.), its relation to the public. 4. The problems of management growijig out of large-scale organization; . . : 5. The fundamental requirements and the psychology of handling men. Best means of selecting, training, encourag- ing, promoting, rewarding and protecting men ; best forms and best tests of genuine welfare work. 141 II. Shipbuilding and Construction. Here should enter the more technical part of the course which would give the men a first-hand knowledge of the preliminary preparations of all raw materials coming from other places to be used in the departments — iron, steels, electrical apparatus, rods, etc. This would call for inspection trips to other plants. 1. Study of materials used in the plant. 2. Study of processes involved in making the parts. 3. Study of all finished parts. This part of the course would in particular demand a thorough study of all the processes and departmental work in the industry. This is absolutely necessary if the responsible men are to know the relation of their work to that of other departments. In such a training course the men would become familiar with many problems and conditions essential to a proper understanding of the problems of accidents, sickness, irregular employment, possibilities of transfer, promotion, etc. It could not help but continually broaden the men and make them more eflScient. The material for this part of the course can readily be brought together by those within individual plants. It has been done by several large concerns in the country in other lines of work and is most effective. III. General Equipment and Power. 1. Engineering. All foremen in the Ship Yards should know something of the fundamentals of energy, power, force, work, power genera- tion, transmission losses, shafting, belting, belt testing, the electric motor, wiring-apparatus, etc. 2. Biii'lding. All should be carefully trained in the relation of lighting, ventilation, sanitation, cleanliness, water supply, and all those environmental conditions that aflfect the efficiency of labor. The average foreman is not efficiently trained in the handling of materials, in the knowledge of stock and its distribution, and above all, he is not efficient in the economic routing of materials. 3. Machinery and Tools. Here enter the scientific preparation and care of machines, ma- terials and tools, job analysis, motion study, preparedness, knowl- 142 edge of the principal machines, careful study of safety devices, efficiency studies (so necessary in the promotion of men), sav- in? of power, light, and heat, upkeep of machines, etc. The men selected for such class work would be obliged to train men to assume their responsibilities while in class work. These men could meet once or twice a week with an instructor in hourly session. The work could be handled in such a flexible manner as not to interfere with production. It need not be con- fined to any fixed time limit, but should continue as long as profitable. The class work wjuld consist of lectures by those specially qualified to give them, freedom of discussion, assigned tasks in helpful readings, reports on observations in the firms and else- where, demonstrations, quizzes, etc. Such a course would gradually aid materially in building up a good works library for the firms giving such a course — a much needed asset. The cost of such a course per man would be very slight com- pared with the gains. The instructors could be found among the operating force, and, with slight outside assistance, could readily develop and handle such a course as here outlined. Aside from the direct helpful knowledge gained, such a course would lead the men to think, plan, reason, and act for themselves. They would have a broadened interest, a new zeal, and their enthusiasm would spread throughout the rank and file. Better trained in job fitness, they would become the nucleus of a far more efficient organization, because better trained in organization fitness. One of the greatest assets of such a course would be the co- operation, the fellowship, the loyalty that would result. It would create in the minds of the men a new spirit and a new vision. 143 APPENDIX X CONSTITUTION AND BY-LAWS OF THE WELFARE ASSOCIATION OF THE UNITED STATES CARTRIDGE COMPANY* CONSTITUTION Article I. NAME This Organization shall be called the Welfare Association of the United States Cartridge Company. Article II OBJECT Its object will be to promote harmony and cooperation among the employes of the United States Cartridge Company. Article III MEMBERS The members shall consist of all employes of the United States Cartridge Company. Article IV GOVERNMENT The control of the affairs of the Welfare Association of the United States Cartridge Company shall be vested in a Welfare Committee consisting of one man and one woman from each department representing each shift. The members of the Wel- fare Committee shall be elected by the members in their own de- partment and such election shall be for a period of six months from date of election. At its first regular meeting after election, the Welfare Com- mittee shall elect a President, two Vice-Presidents, Secretary and * Adopted December 30, 1915. Material furnished by courtesy of the company. Cf. article about this Association in the Company's house organ. Factory Notes, Vol. I, No. 1, February, 1916. 144 Treasurer, and a Council in which shall be vested all the rights of the Association ; this Council to consist of six members of the Welfare Committee; and the President, two Vice-Presidents, Secretary and Treasurer shall be members of this Council. Article V OFFICERS Sec. 1. The ofificers of this Association shall consist of Presi- dent, two Vice-Presidents, Secretary, Treasurer, who, together with six other members, shall comprise a Council. Sec. 2. The President shall hold office six months from date of election ; the two Vice-Presidents shall hold office six months from date of election ; Secretary and Treasurer to hold office six months from date of election. The termof office for th-p six re- maining members of the Council shall be as follows : Two to serve three months, two to serve six months, and two to serve one year from date of election. Sec. 3.. The President shall be male; one of the, Vice- Presi- dents shall be female.; the Secretary and Treasurer shall' be optional, and three of the remaining six members of the Council shall be female. t ' Sec. 4. There shall be a Grievance Committee; a Nominating Committee ; a Visiting Committee, and Entertainment Committee, and such other Conimittees as the needs of the Association re- quire. Each Committee shall be composed of three members. Article VI DUTIES OF officers Sec 1. President. The President of the Association shall perform the duties pertaining to that office. He shall have special watch over the interests of the Association, and shall see. that the Committees perform the duties devolving upon theni. He shall be chairman of trie. Council, and an,"ex-officio" member of all committees. Sec. 2.. Vice-Presidents. The Vice-Presidents shall assist tlie President and perform his duties during. his absence. ." ; Sec. 3. Secretary. It shall be the duty of the Secretary to keep correct minutes of all meetings of the Association ; to notify all persons elected' to office, He shall attend to the correspondence 145 of the Association. The term of office of the Secretary shall be at the discretion of the Council. , ■ Sec. 4. Treasurer. It shall be the duty of the Treasurer to safely keep all funds belonging to the Association, and to pay out only such sums as shall be voted by the Council. When funds in his hands reach $100, he shall give suitable bond. Article VII DUTIES OF COMMITTEES ' Sec. 1. The Council shall conduct the business of the Asso- ciation and shall appoint all committees. The chairman of com- mittees shall in all instances be a member of the Council. Five shaill constitute a quorum. Sec. 2. ' The Grievance Committee shall listen to any complaint presented, by an employe of the United States Cartridge Com- fjany ' and shall present all such complaints to the Council for the purpose of consideration and adjudication. Sec. 3. The Nominating Committee shall consist of five mem- bers of the Governing Board appointed by the President. They shall present a ticket of officers at least two weeks before the regular election, night. "Sec. .4. The Visiting Committee shall stand prepared to visit siiph members of the Association as are confined because of sick- ness or accident and shall do all possible to lighten suffering of persons on whom they are calling. Sec. 5. The Entertainment Committee shall have charge of the social life" of the Association and shall prepare programs on such occasions as the Council shall declare social evenings. Sec. 6. The Nominations of the Nominating Committee shall be posted ten days before date of election. Nominations for any office may be made from floor on election night, by a two-thirds vote of those present. A quorum to consist of fifteen members, arid" no meeting to be legal unless such a number of duly ac- credited delegates are present. Article VIII DUTIES OF MEMBERS JcSed. l.'i Every member shall be expected to cooperate with thfc.officers. aad committees of the Association, accepting duties 146 with willingness and declining no duties except for urgent and valid reasons. Sec. 2. All are requested to report grievances of employes at once to the Grievance Committee and to report to the Visiting Committee the names of any members who are sick or injured. Article IX BUSINESS MEETING Sec. 1. Regular business meetings shall be held on the first Thursday evening of each month. Special business meetings may be held at the call of the President or by a petition signed by two- thirds of the members of the Governing Board. Sec. 2. Election of Officers shall take place every six months. Sec. 3. The Committees shall be appointed by the Council. Sec. 4. Any vacancy that shall occur in any office may be filled at any regular business meeting of the Council appointed to hold office until regular election night. Article X AMENDMENTS Proposed amendments to this Constitution shall be presented in writing and recorded by the Secretary one business meeting pre- vious to action upon them, and when acted upon, two-thirds vote of the members of the Governing Board present and voting thereon, shall be necessary to their adoption. BY-LAWS Article I MEETINGS This Association shall hold meetings as indicated by the Council, notice of which shall be posted in convenient places by the Secretary. Article II APPLICATION FOR MEMBERSHIP There shall be no formal application for membership, but at once a person enters into the employ of the United States Cart- 147 ridge Company he (she) automatically becomes a member of the Association. Article III The following clause of the By-Laws shall be read to the Association before an election of officers : While membership in the Council and Committees should be distributed as evenly as the best good of the Association will warrant, among the different members, the offices should not be considered places of honor to be striven for, but simply oppor- tunities for increased usefulness and helpfulness among the co- workers. When, however, a member has been fairly elected, it is expected he will consider his office a sacred trust placed in him by his associates, never to be declined except for most valid reasons. All members should recognize the dignity of the office and refrain from destructive criticism. Article IV QUORUM Fifteen members shall constitute a quorum of General Com- mittee. Five members shall constitute a quorum of Council. Article V ORDER OF BUSINESS 1. Call to Order. 2. Reading of Minutes. 3. Report of Treasurer. 4. Report of Committee. 5. Report of Special Committees. 6. Unfinished Business. 7. New Business. 8. Open Forum. 9. Adjournment. Article VI AMENDMENTS These By-Laws may be amended at any business meeting by a two-thirds vote of the members present, and voting thereon. 148 APPENDIX XI PROGRESS OF .THE FEDERAL PLAN OF MANAGE- MENT SHARING OF THE PRINTZ-BIEDERMAN COMPANY * ■ "The most important accomplishment, as we regard it, in the human relations in our plant is the opportunity for self-expression that every one in this plant enjoys. Opinion, counsel, suggestion, and criticism are invited and freely extended. The Representa- tive Form of Government, modeled after the Federal Plan, is conducive to that. "The Legislative Branches are represented by the House of Representatives and Senate, the Executive by the Cabinet, and the Judiciary by the Betterment Committee and Board of Review. "The first of these bodies is elected by and from the body of workers upon a basis of about one to every fifteen. "The Senate is in a measure automatically self-appointed, as it consists of foriemen, forewomen and superintendents. "The Cabinet consists of the officers of the Company, while the Betterment Committee is appointed for a period, and the Board of Review for the specific cases and situations with which it has to deal. "The Legislative Bodies deal with every function and pro- • cedure within the plant, which include shop discipline, methods of working, hours of work, earnings and promotions. "These bodies meet once a week on different days for one hour on the Company's time, and transact the "business of the Institu- tion, largely through committees, in an expeditious manner, and according to established parliamentary rules. "The method is working out satisfactorily to all concerned, a more thorough understanding and a better feeling prevails, and the plan bids fair to prevail "So far as the government and methods of our plant are con- cerned, we shall welcome any inquiries, and extend every facility for investigation to interested parties who may wish to visit the plant,, and study these operations at closer range." * From letter of W. B. Fish, Secretary of the Company, to H. C. Metcalf, March 30, 1916. Date Due fH r -1 —-7 i O'tr — — < !• -rlffn^ f) PRINTED IN U. S. H. Cornell University Library HF 5549.N25 The organic development of business; repo 3 1924 002 273 591