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Cash bonuses may be given for especially efficient service. Rewards may also be established for opportune suggestions which may be employed to advantage in the department or organization.
The so-called “suggestion box” adopted by many concerns solicits from employees ideas regarding the installation of certain devices, improved methods of practice, waste elimination, etc.
These suggestions are gathered periodically, considered by a committee, and based on their merits. They may obtain first, second, or third prize, or a prize may be given for each suggestion that is adopted. This policy has the advantage of keeping the men on their toes with their eyes open to improve methods in conducting departmental affairs.
Nothing is more absurd than to allow an employee to feel that he has reached his maximum in a given capacity. The ambitious and aggressive employeeand that is the only class that it is desirable to retain—will immediately cast about to develop other openings where his prospects of advancement are not 80 circumscribed.
TYPES OF ORGANIZATION
In the development of our commercial enterprises various plans or forms of organization have been employed. There are recognized at this time by the foremost efficiency engineers, three distinct types of organization: (1) military, (2) functional, and (3) line and staff.
Fig. 1 indicates the military plan of organization,
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FIG. 2.-Organization Chart of National Cash Register Company
where the various department heads, including the traffic manager, are subordinate to the one-man head, the general manager. Under this plan, it is possible for individuals, prompted perhaps by a desire to curry favor, to annoy the manager with matters of minor moment and with an amount of vexatious detail. This is the chief objection to the military plan. It is avoided in a functional or divisional organization, where all matters in the respective division are passed upon by the senior clerk before being referred to the traffic manager for review or advice.
Fig. 2 indicates the executive control and functional arrangement of the traffic department of the National Cash Register Company, at Dayton, O.
It is to be noted that under this plan the work is classified in a functional arrangement and that the thirty-one men employed in this department are under the direction of the traffic manager. The work has been so planned that each employee is definitely located and consequently can develop into a competent specialist in the line of work to which he has been assigned.
In the corner of the chart, appear figures to indicate the cost of maintenance of the department, and the saving effected by its service. This point should be especially significant to organizations that still consider a traffic department unnecessary or inadvisable.
In 1912 the expenditures for salary and operation of the department were $23,678.86, during which time it recovered for the company $32,312.02. In 1916 the expenses had decreased to $23,201.24, while the amount recovered had leaped to $62,000.00.
These savings are represented by the amount recovered in the careful audit of freight charges, amounts