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was far better for him to let alone. With all his truculence, he was too good a politician to lay his tongue to the man tagged with an invisible, but none the less protective, tag of a man higher up. And so Joe Lathrop let loose his vials of wrath upon those whose continuance upon the payroll depended upon merit alone. One of these was Robinson.

HATED FOR HIS EFFICIENCY

Robinson had been finishing piano frames upon this floor for twenty months. He was a young married man, in good health, ambitious, faithful, loyal, skilful, and efficient. He was a man who worked far more with his brains than with his hands. He understood the principles of piano construction, and was, therefore, no rule-of-thumb man. He had studied his work and, as a result, had continually increased both its quantity and quality Robinson was not self-assertive, perhaps a little taciturn, but there was something about him which made people respect him. Over the dinner pails at noon there had been many a conjecture on the part of Robinson's fellow-workers that he was in line for promotion and that he might be made assistant foreman at any time.

Joe Lathrop knew that Robinson's quiet efficiency and attention to business had not escaped the superintendent's eye. He felt that the day might come almost any time when, on account of his "just one li'l' drink," or its consequences, he might have to yield his scepter to the younger man.

DISCHARGED WITHOUT CAUSE

Along about nine o'clock of this particular morning, Lathrop was brow-beating one of the men for some fancied fault near the place where Robinson was working. Seeing Robinson quietly doing his work, paying no attention to the wrangle so near him, only further irritated the suffering foreman.

"Robinson," he yelled. "You have been here long enough to know better than this. What do you mean by standing there like a wooden post right beside this man and letting him make such a botch of these frames?"

Robinson, of course, being a wise man, kept his own counsel, and went on with his work. He could not acknowledge himself at fault when he was not at fault. His manhood revolted. His business was to concentrate upon his own work. Since he could not acknowledge the fault, he therefore said nothing. This, of course, was just what Lathrop did not want.

"Speak up," he bawled, "explain yourself."

"I have my own work to attend to, Mr. Lathrop, as you know," he said quietly.

"I'll have no back talk from you, you sulky dough-face," roared Lathrop. "Get to hell out of here. Go to the office and get your time."

Robinson knew better than to protest. He even hesitated to go to the superintendent, but finally decided to do so.

"It's a shame, Robinson," admitted the superintendent, "but Joe is an awfully good man when he is right, as you know, and as long as we keep him in our service we have to stand behind him in order to maintain discipline." And so Robinson walked out with half a week's pay in his pocket.

THE BEGINNING OF LOSSES

Let us estimate roughly what Joe Lathrop's "one li'l' drink" and his suspicious jealousy cost the piano company.

Of course, his first cost was the loss of time in the finishing room while Robinson's place stood empty. It is fair to suppose that the company was making some profit on Robinson. It, therefore, lost the profit of those two days. Besides this, the machinery and the equipment Robinson operated stood still for two days eating up, in the meantime, interest on investment, rental of floor space, depreciation, light, heat, and all other overhead charges that it ought to have been making products to pay. In addition to all the overhead charges, the machinery ought also to have been making a profit for the piano company.

But there were other losses. Robinson's absence disorganized the shop routine. There were delays, conflicts, piano parts piled up in one end of the room while other departments clamored for finished frames at the other end of the room. Then, at least one-half a day of Joe Lathrop's valuable time went to waste while he was out trying to find some one to fill Robinson's place. His first attempt was made at the gate of the factory, where the sea of the unemployed threw up its flotsam and jetsam. But finishing piano frames is rather a fine job and none of the willing and eager applicants there could fill the bill. Joe then made the round of two or three employment agencies who had helped him out in previous similar emergencies. This time, however, they seemed to be without resource, so far as he was concerned. Being in considerable perspiration and desperation by this time, he was probably gladder than he ought to have been to receive a summons to appear at the court of Terrence Mulvaney. Terrence, who sat in judgment in the back room of his own beverage emporium, the place where Lathrop secured his "li'l' drinks," had heard, in the usual wireless way, that there was a finisher needed at the big factory Lathrop still owed Terrence for a good many of his "li'l' drinks." Furthermore, Terrence, by virtue of some mysterious underground connection, pulled mysterious wires, so that an invitation from him was a command. For these reasons, also, Joe Lathrop found it discreet in his own eyes to engage on the spot Tim Murphy, a very dear friend of Mulvaney and, according to Mulvaney's own impartial testimony, a very worthy and deserving man.

BREAKING IN AN INCOMPETENT

Valuable hours and moments of the company's time were consumed in initiating Tim Murphy into the employ of the company. There were certain necessary processes in the paymaster's department, the accounting department, the liability department, the tool room, and the medical department.

Now, while Murphy had had some experience in finishing piano frames, he was utterly unfamiliar with the make of piano produced in this factory. Likewise, he was ignorant of the customs, rules, and individual methods which obtained in the factory. This meant that his employers paid him good wages for five or six weeks while he was finding his way around. It was good money spent without adequate return in the way of service. In fact, during these weeks, the company would probably have been better off without Tim Murphy than with him, for he spoiled a good deal of his work, took up a great deal of his foreman's time which ought to have been applied in other directions, broke and ruined a number of valuable tools and otherwise manifested those symptoms which so often mark the entrance into an organization of a man propelled by pull rather than push.

The trouble in Tim Murphy's corner continued to halt and disorganize the work in the department so that there were still further delays and losses up and down the line. All this was bad enough, but by the end of five weeks of Murphy's attachment to the payroll he had demonstrated that he was not only incapable, indolent, careless, and unreliable, but that he was a disorganizer, a gossip, and a trouble maker.

BAD EFFECT UPON OTHER EMPLOYEES

Finally the superintendent, who in some mysterious way had managed to escape the entanglement of underground wires running from Terrence Mulvaney's saloon, issued a direct, positive order to Foreman Lathrop, and Murphy's place in that factory knew him no more. Nor was Murphy astonished or disappointed. He had been expecting this very thing to happen, and was prepared for it. So when he walked out, two skilful, but easily influenced companions, walked out with him. Thus Joe Lathrop had, added to one of his frequent early morning headaches, the serious trouble of trying to find three men to fill yawning vacancies. The company was faced with a new series of losses even greater than those which had followed the discharge of Robinson. Furthermore, there was trouble and disorganization among the men still remaining in the department. Every man there had liked and respected the competent young worker, Robinson. They all knew that he had been discharged largely because Joe Lathrop was jealous and somewhat afraid of him, and because Joe had had a bad headache and grouch. They resented the injustice. Their respect for their foreman dropped several degrees. Their interest in their work slackened. "What is the use," they thought, "to do our best when superior workmanship might get us thrown out of here instead of promoted?"

And so Joe Lathrop's series of "li'l' drinks" finally resulted in decreasing the efficiency of his department to such an extent that the superintendent was obliged to discharge him. Then the superintendent was in for it. He had to find a new man. He had to take the time and the trouble to break the new man in, and the company had to share the losses resulting from disorganization until the new foreman was installed.

This is not a fanciful story, but was told to us by a man who knew the superintendent, Joe Lathrop, Robinson, Terrence Mulvaney, and Tim Murphy. Nor is it an unusual story. Just such headaches, discharges, troubles, and losses are occurring every day in the industrial and commercial institutions of this country.

This story illustrates not only the high cost of constant change in personnel, but also the high cost of leaving the important matter of hiring and firing to foremen. Where this is done, discharges without cause, the selection of incompetents, grafting on the payroll, inside and outside politics, the indolent retention on the payroll of those who are unfit, and many other abuses too numerous to mention, are bound to follow.

ONLY ONE LEGITIMATE REASON FOR HIRING

There is only one legitimate reason for putting any man or woman on the payroll, namely, that he or she is well fitted to perform the tasks assigned, will perform them contentedly and happily and, therefore, be a valuable asset to the concern. But with foremen, superintendents, and other minor executives selecting employees, for any reason and every reason except the legitimate reason, it is small wonder that employees grow discontented and leave, are demoralized and incompetent so that they are discharged. For these reasons it is an unusual organization which does not turn over its entire working force every year. The average of the concerns we have investigated shows much more frequent turnover than this.

Under these circumstances, it should be easy to understand why our efficiency engineers and scientific management experts find the average organization only 25 per cent efficient. And this is not the only trouble we make for ourselves as the result of unscientific selection in the rank and file. In many cases we use no better judgment in the selection of even our highest and most responsible executives. If it is true, as has been so often stated, that a good general creates a good army and leads it to victory, and a poor general demoralizes and leads to defeat the finest and bravest army, then it is more disastrous for you to select one misfit executive than a thousand misfits for your rank and file.

In our next chapter we shall attempt to show some of the troubles which overtake a man who selects the wrong kind of executives.

CHAPTER II THE SELECTION OF EXECUTIVES

The President and General Manager of a large manufacturing and sales company, who, for the purpose of the present narrative, shall be called Jessup, was making a trip from Chicago to New York on the Twentieth Century Limited. In the smoking room of his car he met a gentleman whose appearance and manner attracted him greatly. Acquaintanceship was a matter of course, mutual admiration followed swift upon its heels, and friendship soon began to crystallize in the association. As the train sped on through the night, the Big Executive became more and more delighted with his new-found acquaintance. The man agreed with him in many of his

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