The buying department is subdivided into purchasing, stock, and shipping. The subdivisions of the sales department are sales and accounting. Our chart of the organization shown in Fig. 3, follows the same lines as Fig. 1, the only change being in the main divisions.
Advancing the next step we find the executive officers in charge of the several divisions of the work, corresponding very closely to those shown in Fig. 2. The buying department is in charge of the Purchasing Agent, Chief Stock Clerk, and Shipping Clerk, or Traffic Manager, as he is sometimes known.
The selling department is in charge of the Chief Accountant, Advertising Manager, Sales Manager, and Credit Man. This is shown clearly in the chart, Fig. 4.
Lest an erroneous impression be gained, it may be well to state at this point that the advertising and sales managers must work in perfect harmony. Indeed, advertising is one branch of the sales department and the success of one is so closely interwoven with the other that no important step should be taken by either independently.
In many large concerns, the sales manager is the real advertising manager, even though another may supervise the actual routine of preparing advertising matter. A competent advertising man makes a successful sales manager, and every sales manager should have advertising training, for the purpose of advertising is to create a demand and assist in making sales.
Referring again to Fig. 4, it is seen that both buying and selling departments are under the control of the general manager, from whom direct lines of communication lead to every division of these departments. Direct communication is also maintained between the two departments. The accounting division keeps the accounts of the buying department; the sales division must be in communication with the purchasing and stock division in respect to maintaining the stock to be sold, and with the shipping division in respect to the filling of orders.
10. Universal Application of Organization Principles. When we go into all of the ramifications of business we find many establishments where minor variations of our plan of organization appear necessary, but in the final analysis, the fundamentals prove to be the same.
