Organization

"Management of many is the same as management of few. It is a matter of organization."

"This great increase of the quantity of work which, in consequence of the division of labour, the same number of people are capable of performing, is owing to three different circumstances; first, to the increase of dexterity in every particular workman; secondly, to the saving of the time which is commonly lost in passing from one species of work to another; and lastly, to the invention of a great number of machines which facilitate and abridge labour, and enable one man to do the work of many."

"It appears to me, that any explanation of the cheapness of manufactured articles, as consequent upon the division of labour, would be incomplete if the following principle were omitted to be stated."

"The establishment of "The Times" newspaper is an example, on a large scale, of a manufactory in which the division of labour, both mental and bodily, is admirably illustrated, and in which also the effect of domestic economy is well exemplified. It is scarcely imagined, by the thousands who read that paper in various quarters of the globe, what a scene of organized activity the factory presents during the whole night, or what a quantity of talent and mechanical skill is put in action for their amusement and information."

"Man experiences a multitude of needs, on whose satisfaction his happiness depends, and whose non-satisfaction entails suffering. Alone and isolated, he could only provide in an incomplete, insufficient manner for these incessant needs. The instinct of sociability brings him together with similar persons, and drives him into communication with them. Therefore, impelled by the self-interest of the individuals thus brought together, a certain division of labor is established, necessarily followed by exchanges. In brief, we see an organization emerge, by means of which man can more completely satisfy his needs than he could living in isolation. This natural organization is called society. The object of society is therefore the most complete satisfaction of man's needs. The division of labor and exchange are the means by which this is accomplished."

"The magnitude of the business of this road, its numerous and important connections, and. the large number of employés engaged in operating it, have led many, whose opinions are entitled to respect, to the conclusion, that a proper regard to details, which enter so largely into the elements of success in the management of all railroads, cannot possibly be attained by any plan that contemplates its organization as a whole ; and in proof of this position, the experience of shorter roads is referred to, the business operations of which have been conducted much more economically."

"In my opinion a system of operations, to be efficient and successful, should be such as to give to the principal and responsible head of the running department a complete daily history of details in all their minutiae... A few general principles, however, may be regarded as settled and necessary in its formation, amongst which are:"

"# A proper division of responsibilities."

"# Sufficient power conferred to enable the same to be fully carried out, that such responsibilities may be real in their character."

"# The means of knowing whether such responsibilities are faithfully executed."

"# Great promptness in the report of all derelictions of duty, that evils may be at once corrected."

"# Such information, to be obtained through a system of daily reports and checks that will not embarrass principal officers, nor lessen their influence with their subordinates."

"# The adoption of a system, as a whole, which will not only enable the General Superintendent to detect errors immediately, but will also point out the delinquent."

"In the social production of their life, men enter into definite relations that are indispensable and independent of their will; these relations of production correspond to a definite stage of development of their material forces of production. The sum total of these constitutes the economic structure of society — the real foundation, on which rises a legal and political superstructure and to which correspond definite forms of The mode of production of material life determines the social, political and intellectual life process in general."

"The directing motive, the end and aim of capitalist production, is to extract the greatest possible amount of surplus value, and consequently to exploit labor-power to the greatest possible extent."

"Nowadays, the phenomenon (of division of labor) has developed so generally it is obvious to all. We need have no further illusions about the tendencies of modern industry; it advances steadily towards powerful machines, towards great concentrations of forces and capital, and consequently to the extreme division of labor. Occupations are infinitely separated and specialized, not only inside the factories, but each product is itself a specialty dependent upon others. Adam Smith and John Stuart Mill still hoped that agriculture, at least, would be an exception to the rule, and they saw it as the last resort of small-scale industry. Although one must be careful not to generalize unduly in such matters, nevertheless it is hard to deny today that the principal branches of the agricultural industry are steadily being drawn into the general movement. Finally, business itself is ingeniously following and reflecting in all its shadings the infinite diversity of industrial enterprises; and, while this evolution is realizing itself with unpremeditated spontaneity, the economists, examining its causes and appreciating its results, far from condemning or opposing it, uphold it as necessary. They see in it the supreme law of human societies and the condition of their progress."

"The administrative function has many duties. It has to foresee and make preparations to meet the financial, commercial, and technical conditions under which the concern must be started and run. It deals with the organization, selection, and management of the staff. It is the means by which the various parts of the undertaking communicate with the outside world, etc. Although this list is incomplete, it gives us an idea of the importance of the administrative function. The sole fact that it is in charge of the staff makes it in most cases the predominant function, for we all know that, even if a firm has perfect machinery and manufacturing processes, it is doomed to failure if it is run by an inefficient staff."

"In the railroad operation of this country an economy of $1,000,000 a day is possible."

"In the past the man has been first; in the future the system must be first. This in no sense, however, implies that great men are not needed. On the contrary, the first object of any good system must be that of developing first-class men."

"The estimate that at least $1,000,000 a day could be saved by the pursuit of methods of scientific management was first made by Mr. Harrington Emerson. It is submitted that, with aggregate operating expenses by the railroads in 1908 of $1,669,938,717, of which $1,035,437,528 was for labor, this estimate appears moderate."

"According to Taylor, the principles of Efficiency are:"

"Modern industry is stated by some writers to have begun in 1738 when brought out a . Others place the period as between 1750 and 1800, when the and steam engine came into being. It was marked by the development of labor-saving machinery. It was brought about by the change from handicraft to manufacture."

"Early British economists held that the application of the principle of division of labor was the basis of manufacture.... Charles Babbage, believed ... in [an] "Economy of Machinery and Manufacture." It appears, however, that another principle is the basic one in the rise of industry. It is the transference of skill. The transference of skill from the inventor or designer to the power-driven mechanism brought about the industrial revolution from handicraft to manufacture. It will be necessary to refer to this principle frequently throughout this report, in showing the meaning and position of management in industry."

"The supreme principle [in Industrial Organization ] has been the belief that business efficiency and the welfare of the employees are but different sides of the same problem. Character is an economic asset ; and business efficiency depends not merely on the physical condition of employees, but on their general attitude and feeling towards the employer."

"The test of any scheme of factory organization is the extent to which it creates and fosters the atmosphere and spirit of cooperation and good-will, without in any sense lessening the loyalty of the worker to his own class and its organizations."

"The new industrial methods have greatly accelerated certain tendencies that had already manifested themselves in the old domestic factories and some of these deserve more than passing notice as they are affecting not only productive processes but our social organization as well. Perhaps the most important of these influences are those that tend toward"

"Organization aims to unite individuals into a body which shall work together for a common end. Specifically, organization prepares for the transaction of business by electing and appointing officers and committees, delegating authorities and bringing into systematic connection and cooperation, each and every part of the industrial body. Right organization, in short, puts vitality into the entire factory, secures the efficient working-together of all employees, from the manager's office to the mechanic's bench, routes materials, sub-divides work, inspects output and delivers the right goods, fully processed, at the shipping room door on the correct delivery date."

"The Methods of Industrial Management. — A committee of the American Society of Mechanical Engineers made an extensive canvass in the fall of 1912 to determine what were the new elements in modern management as well as what the committee designated as the regulative principles of industrial management. The committee confirmed Adam Smith's statement made in 1776 in his "Wealth of Nations," in which he held that the application of the principle of division of labor was the basis of manufacture. The committee also agreed with Charles Babbage, who in his work entitled "Economy of Machinery and Manufacture" written in 1832, added another principle, namely the transference of skill."

"Tektology must clarify the modes of organization that are perceived to exist in nature and human activity; then it must generalize and systematize these modes; further it must explain them, that is, propose abstract schemes of their tendencies and laws; finally, based on these schemes, determine the direction of organizational methods and their role in the universal process. This general plan is similar to the plan of any natural science; but the objective of tektology is basically different. Tektology deals with organizational experiences not of this or that specialized field, but of all these fields together. In other words, tektology embraces the subject matter of all the other sciences and of all the human experience giving rise to these sciences, but only from the aspect of method, that is, it is interested only in the modes of organization of this subject matter."

"Through all the years that I have been in business I have never yet found our business bad as a result of any outside force. It has always been due to some defect in our own company, and whenever we located and repaired that defect our business became good again - regardless of what anyone else might be doing. And it will always be found that this country has nationally bad business when business men are drifting, and that business is good when men take hold of their own affairs, put leadership into them, and push forward in spite of obstacles. Only disaster can result when the fundamental principles of business are disregarded and what looks like the easiest way is taken. These fundamentals, as I see them, are:"

"Organization is as old as human society itself."

"Organization is the arrangement of personnel for facilitating the accomplishment of some agreed purpose through the allocation of functions and responsibilities."

"An organization comes into being when (1) there are persons able to communicate with each other (2) who are willing to contribute action (3) to accomplish a common purpose. The elements of an organization are therefore (1) communication; (2) willingness to serve; and (3) common purpose. These elements are necessary and sufficient conditions initially, and they are found in all such organizations. The third element, purpose, is implicit in the definition. Willingness to serve, and communication, and the interdependence of the three elements in general, and their mutual dependence in specifie cooperative systems, are matters of experience and observation."

"The most important thing about organizations is that, though they are tools, each nevertheless has a life of its own."

"Almost every organization... exhibits two faces — a smiling face which it turns toward its members and a frowning face which it turns to the world outside."

"General Systems Theory... possibly the model of the world as a great organization can help to reinforce the sense of reverence for the living which we have almost lost."

"Today our main problem is that of organized complexity. Concepts like those of organization, wholeness, directiveness, teleology, control, self-regulation, differentiation and the like are alien to conventional physics. However, they pop up everywhere in the biological, behavioural and social sciences, and are, in fact, indispensable for dealing with living organisms or social groups. Thus, a basic problem posed to modern science is a general theory of organization."

"As a formal analytical point of reference, primacy of orientation to the attainment of a specific goal is used as the defining characteristic of an organization which distinguishes it from other types of social systems."

"It isn't the incompetent who destroy an organization. The incompetent never get into a position to destroy it. It is those who have achieved something and want to rest upon their achievements who are forever clogging things up."

"Management has a design and operation function, as does engineering. The design is usually done under the heading of organization. It should be noted first that the performance of a group of people is a strong function of the capabilities of the individuals and a rather weak function of the way they are organized. That is, good people do a fairly good job under almost any organization and a somewhat better one when the organization is good. Poor talent does a poor job with a bad organization, but it is still a poor job no matter what the organization. Repeated reorganizations are noted in groups of individuals poorly suited to their function, though no amount of good organization will give good performance. The best architectural design fails with poor bricks and mortar. But the payoff from good organization with good people is worthwhile."

"An organization is a group of living human beings. The formal or official design for living never completely accounts for what the participants do. It is always supplemented by what is called the “informal structure,” which arises as the individual brings into play his own personality, his special problems and interests. Formal relations co-ordinate roles or specialized activities, not persons."

"Organization is a mechanism or structure that enables living things to work effectively together."

"Formal theories of organization have been taught in management courses for many years, and there is an extensive literature on the subject. The textbook principles of organization — hierarchical structure, authority, unity of command, task specialization, division of staff and line, span of control, equality of responsibility and authority, etc. — comprise a logically persuasive set of assumptions which have had a profound influence upon managerial behavior."

"Classical organization theory suffers from "ethnocentrism": It ignores the significance of the political, social, and economic milieu in shaping organizations and influencing managerial practice."

"The scientific study of leadership in complex organizations, as an area of enquiry in its own right, is relatively new; hardly more than a decade old. As in any new "science" there is yet no comprehensive framework within which to operate. Unlike medical men after Harvey's great discovery on the circular system of the human body, we have no unifying concepts around which to make further refinements and discoveries."

"The basic problem of social organization is how to co-ordinate the economic activities of large numbers of people."

"I firmly believe that any organization, in order to survive and achieve success, must have a sound set of beliefs on which it premises all its policies and actions. Next I believe that the most important single factor in corporate success is faithful adherence to those beliefs. And, finally I believe if an organization is to meet the challenge of a changing world, it must be prepared to change everything about itself except those beliefs as it moves through corporate life. Basic philosophy, spirit and drive of an organization have far more to do with its relative achievements than do technological or economic resources, organizational structure, innovation and timing..."

"Social organizations are flagrantly open systems in that the input of energies and the conversion of output into further energy input consists of transactions between the organization and its environment."

"The inevitable counterpart of specialization is organization. This is what brings the work of specialists to a coherent result. If there are many specialists, this coordination will be a major task. So complex, indeed, will be the job of organizing specialists that there will be specialists on organization and organizations of specialists on organization. More perhaps than machinery, massive and complex business organizations are the tangible manifestation of advanced technology."

"The greatest mistake of the movement has been trying to organize a sleeping people around specific goals. You have to wake the people up first, then you'll get action."