Hitherto, executive control in business has been exercised through three main divisions of administration:
(1) Finance—in charge of a treasurer or president.
(2) Manufacturing—in charge of a general manager or general superintendent.
(3) Sales—in charge of a sales manager.
To these general divisions industrial enterprise is now adding a fourth, i. e., employment management or, as it is sometimes called, supervision of personnel. In the employment department of a business are gathered all those activities which have to do with the human relations—hiring, education, promotion, discipline, discharge, wage setting, pensions, sick benefits, housing, etc. To bring all these matters together under one head, and provide each subsection with specialists, is a great step toward scientific industrialism.
Industrial experience has proved the advantage of a separate department equipped to deal with questions of personnel by themselves. The prompt discovery and analysis of unfavorable working conditions can be made only by a central bureau. Most of the approved methods of dealing equitably with the working force have been devised or brought to notice by the new type of industrial specialist.
Where employment departments have been established under competent executives, the waste of turnover has been uniformly reduced, and employees have been rendered more efficient through proper selection, assignment, training, and supervision. In no case of which there is record has an establishment which once tested the benefits of employment work of this character ever returned to the old methods of permitting employment functions to be handled by a variety of minor executives.
Functions of the Employment Manager
The primary functions of an employment manager are to hire shop employees (and often office employees also), to superintend transfers and discharges, to assist in determining rates of pay, to study the causes of labor turnover and absenteeism and strive to reduce them, to adjust grievances, and to recommend changes in working conditions which will eliminate fatigue and accidents, or will improve the health and spirit of the force.
In performing these functions the employment manager will need to organize a staff and provide himself with proper office aids. He will require a set of labor records, which will reveal for each department of the business the degree of efficiency being attained in the utilization of labor. He will analyze the sources of labor supply and make studies upon which job specifications, which set forth the qualifications required for each task, can be based. He will install such methods of physical and mental examination as will safeguard the force against the hazards of the occupation and the hazard of co-employment with men unfitted for their work.