Having no instructions as to pushing his wider campaign, in about sixty days he asked for instructions. In answer he was ordered home and discharged on the ground that business was dull and that he had been a loss to the house. During the sixty days he had been working on a losing commission basis with the expectation of taking his profits later. Investigation dis-

closed that he was but one of five salesmen to whom the Ohio territory had been assigned simultaneously. Of the five, one other also had made good and had been retained because he could be secured for less money.

This multiple try-out policy is entirely fair when the applicants know the conditions. But to lead each applicant to believe that he has been engaged subject only to his ability to make good is manifestly unjust. The facts are bound to come out sooner or later and create distrust among all employees of the house. Loyalty is strictly reciprocal. If an employee feels that he has no assurance of fair treatment, his attitude towards the firm is sure to be negative. Even the man who secures the position will recognize the firm's lack of candor and will never give his employers the full measure of coperation which produces maximum efficiency.

The ``square deal,'' indeed, is the indispensable basis of loyalty and efficiency in an organization. The spirit as well as the letter of the bargain must be observed, else the work-

men will contrive to even up matters by loafing, by slighting the work, or by a minimum production. This means a loss of possible daily earnings. On the other hand, employees never fail to recognize and in time respect the executive who holds the balance of loyalty and justice level between them and the business.

Fair wages, reasonable hours, working quarters and conditions of average comfort and healthfulness, ordinary precautions against accidents, and continuous employment are all now regarded as primary requirements and are not sufficient to create loyalty in the men. More than this must be done.

The chief executive should create such a spirit that his officers shall turn to him for help when in perplexity or difficulty. The superintendent and officers or bosses should sustain this same sympathetic relationship toward their men that the executive has toward his officers. A reputation for taking care of his men is a thing to be sought in a chief executive as well as in all underofficers.

Personal relationships should be cultivated.

In some large organizations the chief executive may secure this personal touch with individuals through an agent or through a department known as the department of ``promotion and discharge,'' ``employment,'' or ``labor.'' In others, occasional meetings on a level of equality may be brought about through house picnics, entertainments, vacation camps, and so on, where employer and employee meet each other outside their usual business environment.

It is not worth while to attempt to develop loyalty to the house until there has been developed a loyalty to the personalities representing the house. Loyalty in business is in the main a reciprocal relationship. The way to begin it is for the chief to be loyal to his subordinates and to see to it that all officers are loyal to their inferiors. When loyalty from above has been secured, loyalty from the ranks may readily be developed.

The personality of the worker must be respected by the employer. ``Giving a man a chance'' to develop himself, allowing him

to express his individuality, is the surest way of enlisting the interest and loyalty of a creative man.

To identify the interests of employees with the interests of the house, various plans of profit sharing, sale of stock to employees, pensions, insurance against sickness and accident, and so on, have been successfully applied by many companies.

So far as possible, responsibility for the success of the house should be assumed by all employees. In some way the workmen should feel that they are in partnership with the executives.

Increasing Efficiency in Business Page 26

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