In this case the production division is by far the most numerous and complex. This, however, is not always the case—as, for instance, in the case of a manufacturing concern selling its product through local agents. Frequently the territory over which sales are made is divided along state lines, and a District Agent appointed for each state. These, in turn, appoint the Local Agents. This necessitates an organization of hundreds of local agents, supervised by state or district agents, and these in turn by a General Agent. Thus a very large organization is built up for disposing of the product.
Fig. 2. Chart Illustrating Plan of Organization of a Typical Manufacturing Plant. Showing channels of authority connecting officials and departments.
Another plan is the employment of Traveling Canvassers, each having a certain territory to cover, who make their reports to either state or district agents, or to the general agent located at a central point—sometimes at the factory, but not necessarily so.
As competition becomes stronger and net profits smaller, the problem of marketing the product becomes more and more important; greater and more complex selling organizations are necessary; and the expense of selling increases. The advertising organization, or what has come to be known as the Publicity Department, is a most important adjunct to the modern manufacturing business; and large amounts of money are annually expended in its maintenance.
In the case under consideration, the selling of the product is in charge of a Sales Manager, who has as his office staff the Publicity Manager; the Preliminary Engineer, and the draftsmen and estimators who assist him; the General Salesman, who is in reality the personal assistant to the Sales Manager; and the Credit and Collection Clerk.
The Publicity Manager, sometimes called the Advertising Manager, has charge of all advertising of whatever kind, demonstrations at expositions and at agencies, and, in fact, all work that may be properly comprised under the term "publicity"—that is, keeping the public informed as to the product of the company and its adaptability to meet the needs of the public in the special lines it manufactures.
The Preliminary Engineer is in charge of such engineering matters as are necessary upon new work, or work upon which the Sales Manager desires to estimate. It frequently happens that considerable designing and drawing are necessary in this connection, previous to definite orders being given or contracts signed. It often happens that the product of the concern must be changed in certain details so as to adapt it to the uses of various customers, to the different local conditions under which it is to be used, and to the various purposes for which it is to be used. In case an order is given and contracts signed, the preliminary drawings thus produced become a part of the transaction, and are used by the Production Department in getting out the machinery to fill the order.