CHARTING THE ORGANIZATION
6. What may be termed the anatomy of an industrial body, is most graphically shown by means of charts. Free use of charts will be made throughout these papers. With properly designed charts the logical divisions of authority or expense can be clearly shown.
Fig. 1 furnishes a graphic illustration of the principal components of the organization under discussion. In the first group we find the owners (stockholders) whose line of communication with the business is through the board of directors. Subordinate to the board of directors are its own executive officers, the executive committee, and general manager.
The connecting lines show the executive committee to be in direct communication with the board of directors, while the general manager is in direct communication with both the executive committee and the board of directors.
Under the general manager are the commercial and manufacturing divisions, over both of which he has direct supervision.
7. Working Authorities in Large Enterprises. The next logical step in the development of our organization is a study of the working authorities and responsibilities of the different officers and their assistants. We have seen that the administrative authority is for practical purposes centered in the general manager. It is not to be supposed, however, that in a large industrial organization he will personally supervise all of the details of operation of the commercial and manufacturing divisions. His time must not be taken up with details which can be as well handled by subordinates. He should be free to devote his time to questions of policy, the providing of finances, the consideration of new fields of endeavor, and the making of the more important contracts. His immediate assistants will be a Comptroller and a Superintendent.
The comptroller fills a position identical with that of a business manager or an assistant manager. His duties are mainly in connection with the commercial division. It is his business to devise systems of accounts and systems for recording the activities of every department, and have reports compiled, in proper form for presentation to the general manager. His is a statistical department, filling a place between the general manager and the subordinate departments, and, while not closing the avenues of communication between these departments and the general manager, it is here that reports and records of results are concentrated.
