THE PRINCIPLES OF EFFICIENCY
Chapter 3 : The First Principle :Clearly Defined Ideals
Note Originally Prepared/Presented by
Raveendra Babu Veerla Roll No: 68
Rishikesh Saurabh Roll No: 70
Ritesh Kumar Roll No :71
The First Principle was “Clearly defined Ideals”.
In large organizations, number operators and managers are very often without definite conceptions and purpose for which plant is working. Worker & Foreman at the lower end of the line organization are so far from the top managers, who are responsible setting the enterprise ideas (objectives and goals). Persons at lower levels are driven to create minor ideals and inspirations of their own, these being often at variance of ideals of those above them.
If all the ideals animating all the organization from top to bottom could be lined so as to pull in the same straight line, the resultant would be very powerful effort. If ideals are in diverse directions, the resultant force might be negative. These kind of conflicting ideals are very common in american plants, even among the higher officials.
For example, a handy man in a railroad repair examined cylinders for cracks, They were often so unimportant that they could be safely repaired by a patch, but he swelled with pride when the recommendation for new cylinder has been heeded. A patch may cost $30 and new cylinder cost $600. When in doubt he always decided in favor of new cylinder. Here the ideals of engineering economy was submerged and conflicting ideal of individual aggrandizement was substituted.
VAGUE IDEALS AND PERSONAL IMPULSE
Vague Ideals and understanding
A superintendent ordered a large automatic lathe , having no idea of economies realized. He felt that automatic lathe will do cheaper work, but in reality the material wasted cost more than normal cost by a worker on a normal lathe.
Many American explorers have succeeded in achieving great feats due to personal impulse
However this reckless confidence in impulses, this reliance on individual initiatives, is often responsible for many failures in industrial organizations.
Ideals of the British railroad were clear-no grade, no curve, no grade crossing and good passenger terminals. These ideals cost them $375,000 /mile.
James J Hill was great American railroad executive who built up dominant railway system in 20 years. Another great railroad executive was J.W Kendrick who considered disagreement with labour as time consuming, destructive to peace and loyalty, and therefore he resolved to setup a high standard of discipline by efficiency reward.
Ideals of one company are that its customer shall be treated with absolute fairness, that its employees shall be of higher skill and better paid than neighboring competitors. Ideals of good company is to see employee prosperity, well paid, not overworked.
If every manager of an organization formulates ideals, promotes them in plant, posts them everywhere, inoculate every employee and official with them, organization can achieve high degree of excellence.
In setting up ideals, managers have two choices. One course is to set up his own ideals and reject all efficiency principle that do not accord with them and other is to accept the organisation and principles of efficiency and to create ideals that are congruet with them