The details of management are therefore being forced upon three suborganizations which, until very recently, have been given little consideration from the point of view of management. As the pressure in creases, the necessity of further specialization within each unit becomes greater. Thus we see new points forming, Ulm which managerial methods and policies are developed or directed.
While the complete treatment of corporations and their organization is given elsewhere in the Modern Business Series, a brief statement of their organiza tion for management purposes is outlined here.
Corporate management begins with the stock holders, who own the business and consequently have initiatory powers. It ends with the executive officer, who, like the other officers and the committees, de rives his authority from the board of directors, whose members, in turn, look to the stockholders. The presi dent, or vice-president presides at all meetings of the corporate organization. The treasurer is custodian of the funds, which he disburses on receipt of the proper requisitions. The secretary takes care of all corporate 'correspondence and keeps the corporate records and the seal. The general manager, who is chosen by the executive committee, acts as the medium of contact for the corporate, staff and line organiza tions. The corporate officers may or may not be members of the staff or line organizations.
6. Manager's cabinet.—The operation of a plant, whether industrial or commercial, calls for the exer cise of judgment upon many technical matters ; ac cordingly, it has been found necessary to aid the gen eral manager by means of an industrial cabinet made up of experts. For many years the manager, who was also a skilled mechanic, was able to conduct the operations of production with marked success. .This was due to the importance of the part which mechan ical equipment played in our industrial operations. But at length other factors in the making of goods became prominent. Chemistry became as important as mechanics. Now it is being realized that the organ ization of the factory, commercial house, bank, etc., must be given special attention. If the size of any firm's business is commensurate with the average American enterprise, few men would consider them selves capable of exercising the best judgment on all these different specialties. Accordingly, the manage
ment has been strengthened by bringing in experts in various lines.
7. Progress due to expert knowledge.—The history of the industrial development of the various nations shows that the country which has led the world at any particular period has been one which developed first and most efficiently some one special activity as an aid to the management. England was first in the field with the use of power machinery. She be came the "work shop of the world." America adopted much of the English technic but she leaped to the front industrially largely because of her cor porate organization for controlling large capital forces and concentrating them in the exploitation of her natural resources. Recently the position of both England and the United States bas been threatened by the industrial teclmic of Germany. She has brought industrial chemistry to her aid in the inter national strife for commercial supremacy.
The field of specialization which is still open for development, is organization. Few factories, rail roads or banking institutions have placed among their technical experts a special department for fur nishing advice to the general manager on productive efficiency. Judging by the widespread interest that is being displayed at present, however, it does not seem likely that American business men will permit this im portant function, management, to go undeveloped. Mathinery, chemistry and corporate organization have all reduced costs. The extension of the organi zation principle to the fields of production, transpor tation, selling, etc., will have a like effect. Many men believe that the addition of an organization ex pert to the cabinet of the general manager is impera tive.
8. Analysis of staff and line organization.—Next to the corporate organization stand the staff and line organizations as units in management. The follow ing chart (Fig. 4) shows the position of various ex perts and their relation to that of the general man ager; and also how these numerous activities may be further subdivided into smaller units for purposes of mote specialized administration.