THE
KNACK OF
MANAGING

BY
LEWIS K. URQUHART
AND
HERBERT WATSON

Published by
FACTORY MANAGEMENT AND MAINTENANCE
330 West 42nd Street
New York City, N. Y.

330 West 42nd Street
New York City, N. Y.

I

Analysis

Someone once said—probably it was Mr. Schwab—that given the right organization it was no harder to manage the U. S. Steel Corporation than to operate a peanut stand.

And Mr. Schwab ought to know, although no life-sized portrait of him all dressed up like a peanut vendor has ever been brought to our attention.

However that may be, his statement is interesting—especially interesting because his appraisal of the job of managing very nearly approaches ours. In "The Knack of Managing," you see, much of the emphasis will be on the fact that the fundamental PRINCIPLES OF MANAGEMENT apply to every business alike. And if we may start out with the premise that managing Mr. Schwab's Bethlehem Steel Company is not such a far cry from operating a pretzel plant or a furniture factory, our battle is already half won.

THE PRINCIPLES OF MANAGEMENT vary not at all, however different may be the MECHANICS OF APPLICATION.

How often the editor, how often the equipment salesman, listens to that time-worn tale of woe: "My business is different. So-and-so can do that sort of thing. But I make gadgets—and your conveyors, your air conditioners or whatever it is you write about or sell, won't do me a bit of good."

Of course his business is different—different in its individual characteristics, its financial, sales, production, labor problems. But they are only the CLOTHES the business wears. They may differ from the clothes of another enterprise as widely as the frilly importation from the Rue de la Paix differs from the sleazy issue of the East Side sweat shop. But underneath the clothes the artist knows there is the human body—and a study of anatomy is necessary before he can paint the picture. Beneath the "clothes" of the business are the principles of management—The ANATOMY OF MANAGEMENT—the framework upon which the completed structure is built.

Doesn't it all boil down to something like the Colonel's lady and Judy O'Grady? One, presumably, wore a brief peignoir with a Paris label; the other, a substantial bungalow apron from a department store basement. But weren't they "sisters under the skin"?

Stripped of all the furbelows—the details of operation, of tools, of materials—the objectives of our steel master, our peanut vendor, our pretzel maker, our furniture manufacturer, are one and the same thing. Their every-day job, in short, is to get something well done with maximum dispatch and at minimum expense.

That's management's job. It goes for every type of enterprise; whether it involves the use of a million dollars' capital, or only ten cents' carfare—or a few minutes of a man's time. The "clothes" matter not at all. Beneath them the fundamental steps in managing are identical. The basic KNACK OF MANAGING is the same.

Consider one of the simplest forms of business enterprise—the delivery of a message. The errand boy—if he's worth his salt and is really managing his job—does in principle exactly what the general manager of the glass plant, the automobile factory, the textile mill, does when he comes face to face with his problems. In principle, mind you.

FIRST—this is the errand boy managing his job—he settles in his mind exactly where he has to go. Not just over to Federal Street—but to 63 Federal. In a word, he ANALYZES THE BUSINESS or the job to be done. ANALYSIS, then, is the first step.

SECOND—he figures out the shortest, most economical way to go there. In other words, he PLANS THE DOING OF THE JOB for the least expenditure. PLANNING is the second step.

THIRD—shall he walk or shall he ride? Shall he do the work himself? Or shall he hire someone else to do it for him? His third step, you see, is ORGANIZATION. He organizes the handling of his work. The "right organization," said Mr. Schwab——

FOURTH—he must get service. There are other errand boys. There are elevator men, office boys to meet and get along with if he is to execute his errand with the greatest dispatch. Now, you see, he's HANDLING THE HELP. The manager of the piano plant, the agent of the cotton mill, would call that phase of his job INDUSTRIAL RELATIONS.

FIFTH—All the time he's planning, going and doing, he never loses sight of the final object of his errand. He never forgets he has a message, perhaps a bunch of securities, to deliver. He keeps his eye on the parcel he's carrying. He gets a receipt before he lets go of it. In other words, he SUPERVISES AND CARES for his business. The manager of the shoe shop, of the furniture factory, never forgets the final objective. After all, it's PROFIT.

Now look at the chart. It pictures THE ANATOMY OF MANAGEMENT. The Chinese say a picture is worth ten thousand words. And it would take a heap of writing to tell the story more completely, more simply than this picture.

Try hanging the "clothes" of your machine shop, your woodworking plant, your paper mill, on it. THEY FIT, don't they?

True, the chart is drawn from one of the most primitive tasks of management—the simple delivery of a message. But suppose the boy doesn't deliver the message himself, but has an assistant. Won't it be necessary to go through exactly the same motions? Suppose, instead of one message, there are fifty. Fifty assistants will be necessary. Will the job of managing vary a jot—or even a tittle?

Now substitute fifty boxes for fifty messages. The boxes have to be shipped. The same processes of thought, the same principles of management, apply.

If, instead of fifty boxes to be shipped, fifty machines are to be manufactured—or if instead of fifty machines it's fifty thousand, and a thousand men and a million dollars of capital are to be employed, every one of the five principles shown on the chart will be used. And every essential point in the management of the business could be covered by those five fundamentals.

Now substitute ships or shoes or breakfast food for the machines we have been talking about, and it becomes clearer than ever that this BUSINESS OF MANAGING recognizes no industrial fences. Learn to manage a peanut stand and, in principle, you are well on the road to knowing how to handle the affairs of the U. S. Steel Corporation.

Five steps there are: (1) Analyze; (2) Plan; (3) Organize; (4) Handle; (5) Supervise. Tackle any job on this basis and follow through. The chances that success will crown your efforts far outweigh the possibilities of failure. At least, approaching a job from these five successive angles should limit the causes of failure to circumstances quite beyond your control.

FIVE PRINCIPLES OF