Office organization and management, including secretarial work

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1 ^
Koninklijk NIVRA
2060 016 902X
Vy.KIRCHNER
BOEKHANDEL
.SlOEnORUJA'DAM-
(
OFFICE ORGANIZATION AND
MANAGEMENT
INCLUDING SECRETARIAL WORK
From the same Publishers
GUIDE FOR THE COMPANY SECRETARY. A
Practical Manual and Work of Reference for
the Company Secretary. By ARTHUR COLES.
F.C.I.S. Second Edition, Enlarged and thoroughly
Revised. With 75 facsimile forms, and the full
text of the Companies Acts, 1908 to 1917, and
the Companies Clauses Act, 1845. In demy 8vo,
cloth gilt, 432 pp. 6s. net.
COMPANY ACCOUNTS. A complete Practical
Manual for the use of Officials in Limited Com­panies,
etc. By ARTHUR COLES, F . C . I . S . Third
Edition, Revised and Enlarged. In demy 8vo,
cloth gilt, 439 pp. 7s. Gd. net.
THE BUSINESS MAN'S ENCYCLOPAEDIA AND
DICTION.VRY OF COMMERCE. Edited by
ARTHUR COLES, F.C.I.S., assisted by 50 specialist
contributors. Third Edition, thoroughly Revised.
In four volumes, with numerous maps, illustra­tions,
facsimile business forms, legal documents,
diagrams, etc. 1810 pp., cloth gilt. £4 4s. net.
LIMITED LIABILITY C03IPANIES. A Guide to
Promoters, Directors, Investors, Secretaries, and
Accountants. By ROBERT ASHWORTH, F.C.A.,
F.S.A.A. The author has summarized the pro­ceedings
from the pre-natal days of a company
until it is a going concern, and provided a guide
to the subject for the use of anyone concerned
with public companies. In addition, the volume
will b? a"uséiful means of revision for students.
In demy 8vo, "'cloth gilt, 462 pp. lOs. 6(1. net.
HOLDING COMPANIES. By A. J. SIMONS, A.C.A.
(Hons.). This is a comprehensive textbook
specially intended for practising accountants and
accountancy students preparing for examination.
The work covers in the most complete and
thorough fashion the finance and control of holding
companies. There is a detailed exposition of the
construction of a " consolidated " balance sheet,
together with a worked example, including the
balance sheets of the subsidiaries. Numerous
examples of the published balance sheets of
existing holding companies, both English and
American, are reproduced and constructively
analvsed. In demy 8vo, cloth gilt, 198 pp.
10s. "ed. net.
FFICE ORGANIZATION
AND MANAGEMENT'"
INCLUDING SECRETARIAL WORK
BY
LAWRENCE R. DICKSEE
ll.Com., F.C.A.
EMERITUS PROFESSOR OF ACCOUNTANCY AND BUSINESS
METHODS IN THE UNIVERSITY OF LONDON
AND
SIR HERBERT E. BLAIN
C.B.E.
FORMERLY ASSISTANT MANAGING DIRECTOR, UNDERGROUND
ELECTRIC RAILWAYS CO. OF LONDON, LTD.
^bo
EIGHTH EDITION
LONDON
SIR ISAAC PITMAN & SONS, LTD.
PARKER STREET, KINGSWAY, W.C.2
BATH, MELBOURNE, TORONTO, NEW YORK
IQ28
s
PRINTED IN GREAT BRITAIN
AT THE PITMAN PRESS, BATH
PREFACE
THE object of the Authors of this volume has been to provide
business men with a practical handbook of reasonable proportions,
to which they may refer from time to time for information upon
matters ordinarily arising in the management and general conduct
of the office work in connection with business transactions both
large and small. No attempt has been made to exceed these umits
by needlessly specializing either in the direction of accountancy
or of law, or in connection with the more technical details of the
practical conduct of different classes of business undertakings.
Such an extension of the scope of the work would, it is thought,
have been in the highest degree undesirable ; for, apart from the
difficulty of dealing with these larger subjects effectively within
anything approaching the compass of the present volume, it is
at least open to serious doubt whether a knowledge of them can
be imparted effectively by means of a book of any description.
Chapters XXI and XXII deal with the various legal matters
concerning which all business men should possess some knowledge.
Obviously, however, they do not profess to be exhaustive, or to
avoid the necessity of legal assistance in all cases where serious
comphcations or disputes arise. Their aim is rather to point out
to the reader the desirability of employing such assistance under
circumstances in which it should be invoked than of attempting
the impossible task of indicating how the average layman, with no
special training or experience, can hope to succeed in carrying on an
important business for any appreciable period of time without
incurring some expenditure by way of law costs. Attempts at
economy in this direction are in general as futile as in connection
with the professional audit of accounts, and it is certainly not
claimed that the most attentive reader of the present volume will be
able with safety to dispense with the services of either his solicitor
or his professional accountant.
V
CONTENTS
PAGfc
PREFACE .. . . .. .. .. . . . • v
CHAPTER I
Introductory, dealing generally with the importance of Organization
in business matters, and the qualifications necessary for those who
undertake it . . .. . . . • • • • • 1
CHAPTER H
Personnel of Staff—General points to be considered in connection
with the engagement of Clerks, Travellers, Agents, Foremen, etc.—
Qualifications required in each case—l<"emale Labour—Apprentices
—Remuneration—Terms of Hire—Termination of Hire .. 6
CHAPTER HI
Office Accommodation—Importance of suitable situation and arrange­ment—
Effect on efficiency of organization—General equipment of
Office, drawing special attention to modern labour-saving devices,
card and loose-leaf systems, calculating machines, etc. . . . . 14
CHAPTER IV
Division of Responsibility—Principles underlying sub-division of work
and arrangement of Duties of Staff—Division into Departments—
Branches—General Systems of Control and Internal Check—Cash
Checks . . . . .. .. .. .. . . 31
CHAPTER V
Correspondence, including Methods of Filing—Printed F'orms and
Rubber Stamps for purposes frequently in use—Methods of
following up Inquiries, etc. . . . . . . . . .. 42
CHAPTER VI
Estimates, Tenders, Contracts, Orders, showing their connection with
each other and with the Financial Books—Also discussing points
in connection with Estimates, Standard Calculations, etc. . . 60
CHAPTER VII
Packing and Unpacking, showing the Methods of checking goods issued
and received, and the connection between these records and the
F'inancial Books . . . . . . . . . . . . 67
CHAPTER VIII
Dutiable Goods, dealing with the Principal Regulations relating to the
more important commodities on which Excise and Customs Duties
are levied in this country, and the general procedure in connection
therewith . . . . . . .. .. . . .. 76
- vii
VlU CONTENTS
CHAPTER IX
PAGE
Means of Transport : Canals, Railways. Tramways, Carriers, Ships—
Rates of Carriage—Insurance . . . . . . . . 98
CHAPTER X
Advertising—Various Systems discussed—Methods of recording
Advertisement Orders and their Execution—Connection with
Systems of recording Results of Advertisements . . . . 114
CHAPTER XI
Systems of ascertaining Amounts due for Wages and Salaries—
Various modes of checking time and the like .. .. . . 121
CHAPTER XII
Stores—Records of Stores inwards and outwards—Systems of Control
and connection thereof with Financial Accounts—Distinction
between Stores and Stock ., .. .. . . .. 130
CHAPTER XIII
Cost Accounts—Their nature and importance—General neglect of the
subject—Fallacious and imperfect results generally . . .. 140
CHAPTER XIV
Departmental and Branch Accounts—Foreign Branches—Foreign
Currencies—Departmental and Branch Returns—Tabulation of
Results—Employment of Curves and Diagrams .. .. 149
CHAPTER XV
Finance—Banking Accounts—Loans, Overdrafts, Mortgages, Deben­tures,
Bills of Exchange, etc. .. . . .. .. 163
CHAPTER XVI
Financial Books—Principles underlying the selection of suitable
Systems of Accounts—Connection of Financial with Statistical
Books—Division of Responsibility—Double Account System—
Income Tax .. .. .. .. .. .. 175
CHAPTER XVII
Stocktaking—By whom Undertaken—Responsibility for Quantities,
Values, and Calculations—Allowances for movement of Stock in
lengthy jobs—Effect of errors on results .. .. .. 183
CHAPTER XVIII
Balancing Books and Audit—Proper Time for Balancing—Provision
for Depreciation and Bad Debts—Reserves and Secret Reserves—
Staff Audit and Professional Audit distinguished—Safeguards
against Fraud .. .. .. .. .. .. 192
CONTENTS IX
CHAPTER XIX
PAGK
Company Work and Returns—Special Procedure in connection with
Joint Stock Companies—Issue of Capital—Statutory Returns, etc. 214
CHAPTER XX
Company Work (continued)—Preparations for Committee, Board, and
General Meetings—Agenda—Minutes—Reports—Metliods of keep­ing
papers pending production at Meetings . . .. .. 232
CHAPTER XXI
Legal Matters—Sale of Goods Act—Guarantees—Cancel ment of
Orders—Interest on Overdue Accounts—Carriers—Recovery of
Debts—Deeds of Arrangement—Disputes with Employees—Truck
Acts—Workmen's Compensation .. .. .. .. 241
CHAPTER XXII
Miscellaneous Legal Points—Tenancies—Rates and Taxes—Repairs^
Insurance—Fixtures—Distress for Rent—Factory and Workshop
Acts—Shops Act .. .. .. ., .. .. 256
CHAPTER XXIII
Insurance—Provision against loss arising through Fire or Accident—
Methods of preparing Proposals and Claims—Profits Assurance—
Employers' Liability Insurance—Workmen's Compensation, Third
Party Risks, etc.—Marine Insurance—Advantages of Insurance-
Losses not covered by usual forms of Insurance—National
Insurance .. .. . . .. .. .. .. 269
INDEX .. .. .. . . .. .. .. 287
INSETS
TELEPHONE BOOK .. .
LETTER RECORD BOOK /
COMBINED TIME AND WAGES SHEET
FORM OF CONTRACT (PIECE WORK)
ORDER AND INVOICE FORM
STORES LEDGER
COLUMNAR CASH BOOK i
TABULAR SALES BOOK /
STATEMENT OF PROFITS FOR ASSESSMENT TO INCOME TAX
APFLICATION AND ALLOTMENT SHEET
facing page
46
124
128
132
134
178
180
224
OFFICE ORGANIZATION
AND MANAGEMENT
CHAPTER I
Introductory, dealing generally with the importance of organization
in business matters, and the qualifications necessary for those who
undertake it
No one who is in touch with commercial offices can have failed
to notice the vast changes in methods of organization which have
characterized the last few decades. It is not merely that the
enormous growth of population at home has increased the competi­tion
in business of every description, but the great efforts which
have been made by continental nations to tap the trade of the
world have quickened the activities and added an additional spur
to the ambition of the English-speaking race, who realize that new
methods are necessary if the headway gained by their forefathers
is to be maintained. There has also been a noticeable commercial
invasion of Great Britain by our American cousins, and there is a
never-ceasing stream of representatives of foreign nations whose
success in establishing profitable business connections in this country
is apparent. With new men come always new methods and often
new manners, and it has been found necessary by all who desire
to keep abreast of the times that these new methods should be
studied, and—where telling for increased efficiency or economy—
adopted. There is no branch of manufacture of which the cost has
not been materially reduced by labour-saving machinery, and the
modernizing influences have spread gradually but surely from the
manufactory and the works into the office itself, until now there
are but few offices which do not bear unmistakable signs of the
revolution which has taken place in commercial ideas since the
last generation.
The day has gone past nevei to return when great commercial
undertakings could afford to have their offices conducted on the
1
2 OFFICE ORGANIZATION AND MANAGEMENT
slow, if steady and reliable, lines of old, and it is now realised that
the of&ce is to a business what the main spring is to a watch. The
office of a successful business organization must be the brains of the
whole concern : it must be the nerve centre of the entire mechanism,
and so responsive in its organism that it shall instantly feel any
weakness or failure in any outlying branch. The aim of the present
book is to show the directions in which new methods may be found
of advantage, and to suggest a systematic organization of every
detail of office work.
Let it be assumed that a new business is being established, say,
of a manufacturing character, with its own drawing office and works,
its own travellers and agents, its own branches, and, of course,
its own managing and clerical staff. This will enable us to take a
" bird's-eye view " of the various departments of the business,
to map out the scope and working of each, to consider the relation­ships
which will combine all into a smoothly working whole—each
having separate responsibility, but always acting in harmony with
the one general plan, and co-operating with the others to secure
a successful issue.
Successful organization implies a capable organizer, and it may
be well at the outset to consider the qualifications necessary for
the Manager of any large business undertaking. Notwithstanding
the numerous examples there are of self-made men, they would
probably be the first to admit that their efforts had been much
hampered by want of education, and it is quite certain that they
have risen not because of their want of education, but rather in
spile of it. A good sound commercial education is a most remunera­tive
investment, and is now within the reach of anyone of reasonable
industry and average ability. It is not the function of this book
to go into details as to what should comprise a good commercial
education, the desire being to compile information and make
suggestions which may be found useful to those who are either
about to organize an office, or wish to improve their existing scheme
of management.
A sound commercial education having been acquired, it is neces­sary
for this education to be trained. Management should not be
undertaken without training and the implied experience in office
organization, otherwise it is probable that the experience will be
dearly bought by the business whose Manager so acquires it. The
INTRODUCTORY 3
young business man, ambitious ultimately to hold managerial reins,
should lose no opportunity of acquiring an insight into every
branch of work, be it correspondence, book-keeping, travelling,
costing, store-keeping, advertising, manufacturing, or even legal.
There is no knowledge which equals the knowledge possessed by
one who has actually done work similar to that to be organized,
who knows its difficulties, who has tested its possibilities of economy,
and who has not been content merely to execute it but has endea­voured,
as he has gained aptitude and experience, to improve upon
its details and to facilitate rapidity of completion.
For the more marked success, organizing ability of the highest
order is, of course, necessary. But, after all, what is organizing
ability, and is it not possible to acquire it, at all events to a fair
extent ? It is true that many men have that gift of intuition
which enables their minds to grasp almost with lightning rapidity
the bearings of a case, that logical faculty which marshals up
without difficulty the pros and cons of a knotty point which must
be settled, that ability of foretelling results or events which is
almost uncanny in its far-sightedness, that grasp of method and of
detail which makes their brain like an orderly cabinet from which
may be obtained at a second's notice whatever information may
be required, and that capacity for rapid and accurate decision
which almost amounts to genius. But, on the other hand, much
of each of these qualities may be attained by that " infinite capacity
for taking pains," which, we are told, is akin to genius and is
asserted by some to be genius itself. The cultivation of a habit
of business accuracy, the thoughtful study of varying idiosyncrasies
and types of character, the careful tracing of cause and effect,
research into sources of commercial information, the compilation of
useful notes, a tactfully exercised curiosity acted upon by a soupgon
of that " gospel of discontent," which is so powerful an incentive
to those who desire to mount life's ladder, will go far to foster powers
of organization, and there are many ways in private and social life
in which useful experience may be obtained. Honorary secretary­ships
of some of the numerous organizations which play so large a
part in modern life offer most useful opportunities of acquiring
valuable experience, and are of unmistakable benefit from the
training point of view when the duties connected with them are
undertaken with intelligence, enterprise, and industry.
4 OFFICE ORGANIZATION AND MANAGEMENT
Will power is no mean equipment. It is not merely necessary
for the successful Manager to be able to " make up his mind,"
as the saying goes; having made it up, it is equally important
that he should be mentally strong enough to adhere to, and to carry
out, his decision. The adage, " the man who hesitates is lost,"
is more true in business life than in almost any other sphere. Deci­sion
and firmness should be twin qualities, and, in management, a
decision should not be arrived at without due consideration of all
the factors of the situation. When a decision has been given, it
should be altered only when proved to be wrong by actual experience.
It is better thus to buy experience once than to shake the confidence
of the staff by constant changes of decision, reversals of policy, and
the incessant alteration of arrangements before there has been a
fair opportunity of testing what results will be brought forth.
Adaptability is a useful power in business life—not merely
adaptability in dealing with one's fellows, but adaptability in
connection with business methods. How often do we see men turn
out business failures for no other reason than that they will not,
or cannot, adapt themselves to those with whom they are brought
into business relationships, or will not change their methods to suit
alterations made necessary by competition or other influences ?
Many fortunes have been made by men who have set out upon
certain lines, and have adapted themselves or their businesses to
some changed condition which they have been quick to notice and
to fall in with.
Originality and imagination are important factors in business
management and success. The trend of commercial life is all in
the direction of improvement, and it is the man with originality of
ideas, who has trained his imagination to come into play in business
life, who outstrips his fellows. It is not well to run after novelties
for the sake of novelty, but it is often the presentation of an old
idea in some new form which brings business, and which, in course
of time, marks out a man as one who does not run in a groove but
has brains to think out new ways. Cultivate the imagination—
it is a powerful aid against business mediocrity, and (more important
still) a preventer of monotony.
The successful Manager must cultivate self-control. Coolness,
quietness of demeanour and utterance, firmness of manner, and
uniform command of temper are certain to ensure obedience and
INTRODUCTORY 5
respect. Shouting, blustering, and bullying may appear to have
a temporary effect, but continued indulgence will soon be recognized
as a sign of weakness, and induce contempt and perhaps even
hatred in the minds of subordinates. For a like reason sarcasm
is generally to be avoided. If regarded only from the selfish
point of view, it is better to be surrounded by cheerful, willing
assistants, whose pleasure it is to earn commendation, when they
know appreciation is always expressed, rather than by cowed,
discontented, and disloyal workers. Cultivate a spirit of fellowship
in the staff, take an interest in their doings, and let them feel that
they are regarded not as machines but as brains whose active
and sympathetic co-operation in the progress of the undertaking will
be welcome, whose interest is invited and whose welfare will be
safeguarded. Self-control is to some extent a matter of health.
The bilious, " livery " man will at times find it difficult to maintain
his evenness of temper, and it is therefore important, from the
business point of view, that bodily health should be as good as
possible. Modern science has taught much in connection with the
" healthy body," and infinite help in this direction will be derived
from the regular use of some of the physical exercises now so widely
recommended. By their means all exercise really necessary for
health's sake can be obtained, so to speak, " in tabloid form," and
this without interfering in any way with the exigencies of business.
CHAPTER II
Personnel of Staff—General points to be considered in connection with the
engagement of Clerks, Travellers, Agents, B'oremen, etc.—Qualifications
required in each case—Female Labour—Apprentices—Remuneration—
Terms of Hire—Termination of Hire
ONE of the most important factors in commercial success is the
power to read character, and the selection of a staff is one of the
matters which should always secure the personal attention of the
capable Manager, as upon its wisdom depends to an even greater
extent than is generally recognized the success of the whole under­taking.
No trouble should be regarded as too great to be taken
in the endeavour to find just the right man for each appointment.
It is hardly necessary to say that no appointment should be made
until the applicant has been personally interviewed. Written
references should not be relied upon. It is a matter of common
knowledge that some firms, not specially noted for commercial
morality, try to get rid of their indifferent employees by giving
them a strong recommendation in support of applications for other
appointments,, while, on the other hand, some houses make it a
rule never to give written references. A personal interview with
the Manager of the firm giving the recommendation is always
advisable if it can be obtained, whilst an indirect inquiry amongst
the colleagues of the applicant will sometimes throw an unexpected
light upon his character and capabilities.
The Manager's Principal Assistant or Chief Clerk should possess,
as far as possible, the qualifications of the Manager himself, as the
latter must have someone upon whom he can rely to take charge
in his absence. Some Managers prefer to appoint to this position
one having a good knowledge of some parts of the work with which
they themselves are least familiar, and, in cases where the Manager
has not a good all-round knowledge, probably this is advisable.
Very special care must be exercised in the selection of travellers
and agents, as their duties are necessarily performed outside the
immediate supervision of the Manager. Although there is a
widespread belief that a smart and experienced traveller can effect
sales of anything, it is of undoubted importance for him to have
a good knowledge of the various manufactures of the firm he
6
PERSONNEL OF STAFF 7
represents ; and one who is already personally known to buyers
in the particular line of business will have access to many a private
office which would be closed to a new man. Readiness of wit and
a.good address are essentials to these appointments.
In regard to agents, it is very necessary that, prior to appoint­ment,
their commercial status should be inquired about through
one of the commercial inquiry offices. It is useless to expect an
extension of business in a given neighbourhood unless the agent
is a man of good standing locally, and the careful Manager should
not content himself until he has made personal inquiries in the
district which it is desired to open up.
In selecting book-keepers and clerks, there is a good deal to be
said in favour of requiring certificates in such subjects as book­keeping
and shorthand, although it should not be imagined that the
possession of these certificates indicates that their holders are trained
men of business. Employers are often inclined to complain of our
system of commercial education, and that there is room for improve­ment
may be readily admitted. It is, however, useless to expect
that any conceivable system of scholastic training can take the place
of actual experience, and the danger is that, if the opposite be
assumed to be true, the first duty of a new entrant to an office
will be to unlearn a good deal of what has been inculcated outside.
What is wanted is a good foundation of general knowledge—
supplemented by an acquaintance with common commercial terms
and general routine—and a receptive mind. There is no good
reason why a youth of 16 or 17 who has any intention of filling a
place in the huge business machine should not have acquired some
idea of the difference between, say, a Letter of Credit and a Credit
Note, as well as the ability to cast, correctly and quickly, a column
of figures, to write a good hand, and to use, rather than abuse,
his mother tongue. It is satisfactory to find that such subjects as
shorthand, book-keeping, commercial law, business routine, com­mercial
geography, etc., are now receiving some of the attention
they deserve, and are being given a proper place in the educational
curriculum. Certificates in these and other subjects are now
awarded by several trustworthy examining bodies, and these cer­tificates
possess a secondary value which should not be overlooked.
They not only indicate a certain acquaintance with the subjects
specified, but they also serve as an indirect testimony to the industry
2-{l545)
8 OFFICE ORGANIZATION AND MANAGEMENT
and ambition of the applicants who possess them, and, from this
point of view, they are a valuable endorsement of the personal
references furnished by a previous employer. It may be added that
several of the newer Universities, not only the University of London,
now grant Degrees in Commerce. The curriculum preparatory to
graduation in this faculty is naturally somewhat severe, but the
value of the qualification, when obtained, is correspondingly high.
A would-be book-keeper should have a good grounding in the
principles of book-keeping, as well as the knowledge and mental
agility necessary to enable him to apply those principles to particular
requirements. In addition, he should possess certain mental and
moral qualifications without which his technical knowledge will
be worse than useless. In the first place, he should, of course, be
accurate and reliable and absolutely above suspicion, especially
if filling one of the higher positions in his department. These are
all-important considerations, while neatness and quickness are also
essential to the best results.
Correspondence clerks should have a good knowledge of short­hand
and be expert typists. The Manager of a busy office cannot
afford to waste time dictating letters to clerks who are unable to
" take down " at the desired rate or who cannot type those letters
in a creditable manner. A good knowledge of English is another
desideratum, as it will save the clerk from many a pitfall, and it
will be to the employer's interest to look for this qualification
in his correspondence clerks. Nothing but discredit is reflected
on an office sending out badly typed, badly spelt, or badly punctu­ated
letters ; and, although it may be sometimes necessary as a
corrective to careless work to insist on a letter being re-typed,
this is an expensive and vexatious remedy which it should not be
necessary to apply as a regular practice.
During recent years there has been a great increase in the em­ployment
of girls for office work, particularly for correspondence
and similar purposes. It is necessary here again to draw attention
to the importance of securing assistants of fair education and training.
When this is done, it will be found that shorthand clerks and typists
of a high order of intelligence are to be obtained, whose work in
their particular sphere will bear comparison with that of the
opposite sex.
There is some difference of opinion as to the desirability of the
PERSON MEL OF STAFF 9
apprentice system in offices. It has grown to be very unpopular
in some districts, owing entirely to its abuse by employers who run
their offices with young apprentices, who are promptly discharged
when their indentures have expired. The apprentice system of
olden days furnished opportunities for a youth to be thoroughly
grounded in every branch of the business to which he was bound,
and left him, at the end of his time, a valuable assistant well worthy
of a permanent place in the establishment, and, if this method is
followed to a legitimate extent, it will be found useful.
The question of remuneration is one which it is difficult to discuss
in detail, owing to the infinite variety of circumstances existing in
businesses of various kinds and magnitudes. There are, however,
some general considerations which it will be well to bear in mind.
Cheap labour from the point of view of the salaries list does not
necessarily imply economy when the Balance Sheet stage has been
reached, and a really good clerk is always worth gcod pay. The
results obtained will be a faithful reflex of the ability of the indivi­dual
members of the staff, and it is well to remember, particularly
in businesses where competition is keenly felt, that a good clerk lost
may be an important gain to a competitor. The Manager should
have a clear idea of the qualifications necessary for the various
appointments to be filled, and a proper acquaintance with what is
regarded as the market value attached to such positions. Given
this knowledge, it follows that a payment higher than the ordinary
market value for the leading positions will secure a variety of choice
and a standard of applicant which will assist materially in the quest
of the best assistants. It will not be found more expensive to obtain
men and girls of fair education, appearance, and address than those
of a more common grade, and due attention should be paid to these
points, particularly in connection with positions the holders of
which necessarily come into contact with customers or the general
public. If not favourably impressed with an applicant for one of
these posts, it should not be forgotten that, while appearances are
often deceptive, the impression made on others may be not unlike
your own, and the success of your business may be prejudiced
by the very defects which lead you to look unfavourably upon the
applicant.
As regards the actual engagement of employees, the law is that
in the case of a partnership every partner has implied authority
10 OFFICE ORGANIZATION AND MANAGEMENT
to engage and to dismiss a servant unless it is otherwise provided
in the articles of partnership. An employee cannot, however, be
compelled by one partner to leave the premises if the other partner
or partners authorize him to remain.
For all except the most subordinate positions, written agreements
should, of course, be the rule. Not that an agreement by word
of mouth is unenforceable if supported by proper evidence ; but the
mere existence of a written contract has a marked effect in -preventing
disputes, as well as in assisting materially in their settlement should
they arise. In the case of an engagement which, by its nature,
cannot be performed within a year, no action can be brought unless
some note or memorandum of it is in writing and signed. The
essential conditions of an agreement are—
(1) It must contain the names or other sufficient description
of the parties thereto ;
(2) It must contain the terms of engagement (which cannot
be varied by any outside evidence) ;
(3) It must be shown that the agreement is mutual;
(4) It must be signed—by both parties for preference, though
it is sufficient if each party has the signature of the other.
If an agreement is unenforceable because these requirements
have not been complied with, the master cannot object if the
servant leaves before the expiration of the time specified; and the
servant, if dismissed before that time, has no right of action on that
account, though he is entitled to be paid a reasonable sum for such
work as he may have actually performed. At or before the time
of signing, the document may be stamped with an adhesive 6d.
stamp, otherwise it must be impressed at an Inland Revenue Stamp
Office within fourteen days from the date of the first signature.
The effect of not properly stamping an agreement is that, if either
party wishes to enforce the agreement, he will not be able to use
the written document as evidence of it, except under a penalty
of £10 in addition to the duty originally payable. An agreement
for the hire of an " artificer " or " labourer " is specially exempted
from stamp duty.
The period for which a servant is engaged depends upon the
terms of the contract. Where the contract is indefinite, it is
presumed to be for a year, and if it is continued after the year it is
PERSONNEL OF STAFF 11
presumed to be for another year, and so on. The mere fact that
wages are paid quarterly, monthly, or weekly does not necessarily
alter the presumption that it is a yearly hiring. Both the period
of service and the time at which wages will become due should be
definitely stated, but where nothing is said as to the time of payment,
wages will be payable at the end of the period or periods for which
the servant is engaged—whether weekly, monthly, quarterly, or
yearly. But where payments have in fact been made quarterly
or at other periodical dates, that fact would, notwithstanding that
the hiring is yearly, be sufficient to warrant a jury in inferring
that there was an agreement that the wages should be so paid.
In certain employments the time is fixed by custom.
Where a servant is not engaged for any definite period, he is to be
paid by the hour, day, etc., his wages becoming due at the end of
each complete hour's or day's work, although as a matter of fact
they may be paid only at the end of a week or other period. Where
payment is by the job, the workman is not, in the absence of special
agreement or custom, entitled to payment until the completion of
the work ; and, if the work is not completed, the employer might,
in certain circumstances, be justified in not paying any wages at
all. For extra work, an employee is not entitled to special remuner­ation
unless the work was distinctly outside the scope of the
employment for which he was engaged.
The Truck Acts provide that the wages of a workman, i.e. a
person engaged in manual labour, must be paid in coin (or other
legal tender money), except by his consent, and the deductions which
may be made therefrom are strictly defined by statute. Deductions
for bad or negligent work, for instance, are legal only if specified in
the contract, and fines can be deducted only if so specified, or if
the particulars are set out in a notice kept in some place in or about
the workshop where it may be easily seen, read, and copied. Every
employer should make himself acquainted with the provisions of
these Acts, which are of a more comprehensive nature than is
frequently supposed. Some of the provisions are special to certain
trades and circumstances, and it is impossible to indicate them
fully here.
It has been held that a servant is bound to obey his master's
orders, no matter how inconvenient and unreasonable, provided
they are lawful and within the scope of the servant's employment.
12 OFFICE ORGANIZATION AND MANAGEMENT
He is not, however, bound to risk his life in his master's service.
He must also exercise reasonable care and skill. The acceptance
of employment implies the possession of a certain amount of compe­tence
to perform the work undertaken. The amount of skill to be
expected must, of course, depend to some extent upon the nature
of the work, the remuneration to be paid, and other circumstances.
The employer, too, must bear his share of the responsibility, for,
if he knowingly engages a man to do something which the man
has never done before, he cannot complain of incompe­tence.
It should be borne in mind also that an employer can
generally be compelled to indemnify his servant against all responsi­bilities
incurred by him in the course of his employment, when
acting in pursuance of the employer's orders, expressed or implied.
The length of notice required to terminate an engagement should
be stated in the agreement in all cases, unless it is to be governed by
custom. In the absence of express stipulation, it has been held
that a clerk or commercial traveller is entitled to three months'
notice. But, in the case of clerks or other servants engaged by the
week or the month at a weekly or a monthly wage, a week's or a
month's notice (as the case may be) only is necessary. As a general
rule where the engagement is determinable upon a " reasonable "
notice, such notice may be given at any time ; but an engagement
for one whole year, and so from year to year as long as the parties
may please, can be determined only by a reasonable notice ending
with such year. Although an employer may give wages in lieu of
notice, it is not open to an employee to do the same thing.
Where an engagement is for a definite period, no notice is required
to terminate it at the expiration of that period. A master may
dismiss a servant without notice for, inter alia, the following reasons :
disobedience to orders properly given, immorality, drunkenness,
dishonesty, gross negligence, absolute incompetency, claiming to be
a partner, conduct incompatible with his duties, permanent disable­ment
through illness (mental or physical), or fraudulent concealment
of some material fact at the time of his engagement. The receipt
of an illicit commission by a Company Manager has also been held
to be a justifiable reason for dismissal. An employer need not state
why he dismisses a servant, but, if the servant brings an action for
wrongful dismissal, the employer will have to justify what he has
done. In certain circumstances, an employer dismissing a servant
PERSONNEL OF STAFF 13
for misconduct may do so in the presence of a third party, as a
witness to what is said, without rendering himself liable to an action
for slander. A servant rightfully dismissed without notice will not
be entitled to any wages in respect of the broken period subsequent
to the last date at which they became due and payable.
A contract of service may be put an end to at any time by mutual
agreement, and, in the absence of any stipulation to the contrary
(express or implied), it is determined by the death of either party.
In the latter case, wages are due up to the date of death.
An engagement, even if for a specified period, will be terminated
by the death of any partner unless from the actual terms of the
agreement the contrary intention is implied. Voluntary dissolution
will constitute wrongful dismissal or breach of contract, but, if a
re-constituted firm offers to employ a servant on the same terms
as before and he refuses to remain, he will be entitled to nominal
damages only.
An employer is not legally bound to furnish a character, but, if
he gives one, it must be true. Such a statement, whether in
writing or by word of mouth, is privileged if made only to the parties
interested. If made by telegram or by post card, however, the state­ment
ceases to be privileged. In certain cases, it is allowable for
a master to communicate to other employees (for his own and their
protection) his reasons for dismissing a servant. Good faith is,
of course, necessary to the maintenance of the privilege in any
circumstances. Not only is a malicious statement of a derogatory
nature actionable, but a master who, by giving a laudatory character
which he knows to be false, induces another person to employ a
servant, will be liable for any injury which the new master may
suffer in consequence. Contracts with Managers, travellers, and
others frequently provide that the employee shall not engage in the
same business within a limited area after the termination of the
contract. These restraints must be such as are reasonably necessary
for the master's protection. If the restraint is too wide it will be
void.
In a business of any pretensions to size, a systematic record should
be kept of each employee, including references received, references
given, notes as to conduct, duties performed, cause of leaving, etc.
The card system is very suitable for such records, especially if they
are at all voluminous.
CHAPTER III
^
Office Accommodation—Importance of suitable situation and arrangement—•
Effect on efficiency of organization—General equipment of Office, drawing
special attention to modern labour-saving devices, card and loose-leaf
systems, calculating machines, etc.
OF primary importance in connection with office organization and
management is the question of office accommodation, and, in many
quarters, the extent to which efficiency of organization is hindered
by the inappropriateness or insufficiency of physical accommodation
is not adequately appreciated. In the establishment of a new
business, very careful consideration should be given to the selection
of a suitable position for the office. It is quite customary to find
that banks and insurance companies, as well as some other large
concerns, select very central positions upon which to erect imposing
and convenient offices. Recent years have shown the increasing
importance of this factor in establishing, in a purely material sense,
the stability of these undertakings. But it is not only businesses
of this description which find it useful to pay due regard
to the question of the site upon which to conduct their work, though
necessarily different factors must be considered in connection with
different businesses. In these busy times, thought must be given
to accessibility to customers. The channel through which inquiries
(which may lead to purchases) are directed may be governed by
nearness to purchasers' own premises, or to such places as may be
convenient to their buyers or principals in their daily visits to their
exchanges, etc. It is undoubtedly this consideration which has led
to special centres being largely patronized by firms doing a particular
class of business, especially where inspection and comparison of
samples as well as prices are necessary. For internal time-saving,
too, it is important to consider the proximity of banks, post offices,
the trade exchange—in fact, of all places to which it may be necessary
to pay daily, and even more frequent, visits. It is false economy
to endeavour to save a few pounds per annum by placing the office
in some cheap but out-of-the-way locality which will necessitate
loss of valuable time every day on the part of principals and clerks
in journeying to and from the centres of business activity. This
14
OFFICE ACCOMMODATION 15
consideration has a distinct bearing also upon the number of office
assistants required.
If the business is so large as to make advisable the building of
its own offices, then the Manager must of necessity devote personal
attention to the consideration of plans in consultation with the
architect who is employed, and not allow the purely operative
departments to be the only ones to be considered. The fact that the
architect will receive a commission on the gross cost of erection has to
be borne in mind, and every care taken to see that there is no un­necessarily
lavish expenditure incurred. Provision must be made
not merely for the business of to-day, but for the probable extensions
required in the future, as there are few more costly things than to
find such buildings (specially planned for the accommodation of
a particular business) outgrown, entailing a forced disposal and the
provision of a larger building. No one should contemplate building
unless the business is of an assured character, and, in this case,
accommodation for extension should always be reserved and the
selection of a site governed by this wise prevision.
In the bulk of offices, however, it will not be the building but the
renting of office accommodation which will be the subject of con­sideration,
and here to some extent the Manager may find his hands
tied by questions of locality quite as much as suitability, though it
will generally be found that landlords are willing to make any
reasonable alterations to their premises required by good tenants.
If the business is of even moderate magnitude, numerous small
rooms are not desirable and are distinctly bad from the super­vision
point of view. Separate rooms may be necessary for the
Manager and for some of the chiefs of departments, particularly
those whose work necessitates interviews with callers, etc., but,
where possible, the general office staff should be placed in one large
room where oversight can easily be given by the Chief Clerk. Where
privacy for interviews is necessary also for this official, it may be
found useful to have his office raised above the level of the general
office, from which it should be partitioned off with glass, this giving
the desired confidential character to interviews whilst not interfering
with the regulation and supervision of the staff.
Light, ventilation, and sanitation are matters which should be
carefully considered, especially when it is remembered that the
greater part of the day's work will be done in the office, and it cannot
16 OFFICE ORGANIZATION AND MANAGEMENT
be expected that the best results will be obtained unless the
conditions are favourable. Natural light should be available during
the ordinary day time, as work cannot be done with the minimum
of discomfort, and, therefore, the maximum of speed, where artificial
light has to be constantly resorted to. The intimate connection
between the eyesight and the brain must not be overlooked, and,
similarly, the need for proper ventilation and sanitation in offices
has an important bearing on efficient organization and the rapid
transaction of work.
It is very desirable that the telephonic instruments should not
be in an open office where all communications can be heard both
by the staff and the callers. There have been many instances of
important business information leaking out owing to messages
having been overheard in this way. Where the telephone cannot
be placed in a separate room, from which an extension bell can be
laid into the general office, it is easy to encase it so as to ensure the
desired privacy. It will be found desirable also that a place should
be provided for the correspondence department where the click of
the typewriters will not disturb the other clerks. The best
position for this work will generally be found to be an ante-room
through which callers desirous of seeing the Manager must pass.
The correspondence clerks are chiefly in touch with his engagements,
.and know what people he should see and who should be " diverted
into other channels," this being by no means an unimportant duty
in connection with large undertakings, as the expedients employed
by enterprising travellers desirous of seeing the chief are both
numerous and ingenious.
On the other side of the Manager's room is the most convenient
place for the Chief Clerk or Principal Assistant who will overlook,
as previously described, the general office. The arrangement of
the latter will necessarily depend to a great extent upon the size
of the staff and the magnitude of the business, but, wherever
possible, the various departments should be marked off, not, of
course, by walls but by physical demarcation of counters, railings,
or even low and glazed partitions. By this means, two objects
will be served. The books and documents appertaining to each
branch will have little chance of becoming mixed, and each sub-chief
will have his "sphere of influence" properly defined. The chaotic
appearance of many offices means more than untidiness. It is
OFFICE ACCOMMODATION 17
" the outward and visible sign " of the " inward " frame of mind
which does not deal promptly with each matter as it arises. An
untidy office implies waste of time. If books are not restored to
their proper places when temporarily done with they have to be
looked for when required. When letters and other documents
are not properly filed, the time of the clerks and the Manager is
wasted when these are urgently wanted for reference purposes.
Many Managers get into a habit of keeping on their desks papers
which they know they will want in the course of a few days in order
to prevent the possibility of being kept waiting for their production.
This is a habit which grows, and which should be sternly fought
against. The correspondence clerks should be encouraged to pride
themselves upon the rapidity with which everything can be produced
and the Manager should aim at an ideal in the shape of a clear desk.
The Manager of a large engineering works in the Midlands employing
several thousands of men makes it a principle never to keep on his
own desk anything which requires dealing with, but refers every
such letter to some one of his assistants, at the same time insisting
upon personally signing every letter which leaves the establishment.
When there is an efficient system of " following up" such
letters, there can be no doubt that this method of making each
sub-chief responsible for matters affecting his own particular
work has an excellent effect in developing a sense of individual
responsibility.
The cash and book-keeping staffs should be adjacent, though
the former should be partitioned off, so that there is no indiscrimi­nate
and unnoticed entry into their " sacred precincts," and the
cashier should have his own safe distinct from the general office
safe or strong room. Another portion of the room should be
allotted to the orders and supplies clerks, another to the sales and
invoice department, another to the wages, and yet another to the
cost clerks and estimating assistants. It will be seen that this
arrangement has reference to a manufacturing undertaking of a
fairly extensive character. In smaller concerns, however, the
same principle should apply, and if there is but one clerk dealing
with each separate branch of the clerical work an effort should
be made to give him his own fair share of the office accommodation,
for the tidiness and the order of which he may be held responsible.
It will not be found advisable, even if the drawing-of&ce staff is
18 OFFICE ORGANIZATION AND MANAGEMENT
limited to one, to house it in the general oihce. There is an amount
of fascination in a drawing growing into shape which has a wonder­fully
time-wasting influence upon some clerks, and it is well to
limit temptations.
Similarly, the travellers should be assigned separate quarters
of their own, as he is a poor traveller who does not amass—even
in the course of one day's peregrinations—some amusing incidents
which, if recounted in office hours, will be far from having an
expediting effect upon the production of that Balance Sheet or
those statistics which are anxiously awaited in the Manager's
room.
Some take the view that counters to which inquirers and callers
come should not permit of open inspection of the office beyond ;
that if the counter is an open one, a short partition should run
behind it so as to limit the view of the pubUc to the clerk in
immediate attendance; or the counter may be bordered with
frosted glass, pierced with inquiry windows backed by a screen.
There are obvious objections to outsiders being able to read docu­ments
that clerks are handhng ; but, subject to this, it is difficult
to understand this passion for the mysterious. A well arranged,
well kept office is a great asset on account of the favourable im­pression
it produces.
At one time practically all modern office furniture was of American
origin. Now our own manufacturers are second to none, but the
design should always be carefully considered. If there is ample
room for store cupboards, book racks, filing cabinets, etc., desks
fitted elaborately with drawers should not be purchased—the
drawers are too convenient, especially if the hour is nearing the
end of the commercial day, for the receipt of books and papers
which should be assigned other and more appropriate receptacles.
There is no necessity for each clerk to have his own pile of letter
paper, memo, forms, etc., getting crumpled and made useless in
his drawer. A tear-off block is sufficient for ordinary purposes
and printed stationery is an expensive form of scrap paper. The
ordinary sloping desk with a single line of drawers under it, mounted
on spindle legs which will not harbour dust or prevent free access
of ventilation, will be found to be the best, and two or three inquiries
will bring in reasonable estimates for their supply. If, on the
other hand, the office space is very cramped, desks with a set
OFFICE ACCOMMODATION 19
of drawers at each end will be found useful for store purposes, and,
of course, correspondence clerks require a supply of stationery that
is readily accessible. All drawers so used should have exterior
labels giving the name of the main class of material to be found
inside. If stationery and sundries are thus kept, they should not
be placed loosely in the drawer, as, with its necessary opening and
shutting, they will get intermingled and astray. Store drawers
should be fitted with properly spaced wooden divisions. Some
office supply stationers have for this purpose wire divisions which
can be pressed down into their places by means of their sharp-pointed
feet.
Speaking generally, storage in drawers is not satisfactory, and,
as it is better to aim at the equipment of an office in a more modern
manner, it may be of service to review briefly the principal points
to be borne in mind. It is not desired in these pages to refer to
individual manufacturers of office supplies, except in some one or
two cases of useful specialities. There are several well-known
firms of office fitters, all supplying goods such as are here
described in general terms.
Stationery should have its own cupboard or store, divided off
into spaces for the proper reception of letter paper, envelopes,
foolscap, pencils, pens, blotting paper, etc., so that the
stationery clerk can tell at a glance when his stock of any
particular article is running short.
A catalogue file of a very useful and adaptable type is also obtain­able,
and is especially welcome in a large manufacturing undertaking,
where it is necessary to have prompt access to such trade requisites.
The varying size and shape of trade catalogues render them some­what
difficult to file in any but a specially designed cabinet, which
20 OFFICE ORGANIZATION ASD MANAGEMENT
provides not merely a place for catalogues, but for each catalogue
its own place.
Types of filing cabinets are dealt with in the chapter devoted to
correspondence, but the card-index system may be mentioned here,
as it is applicable to every department of office work, and not
merely to correspondence.
If the card system is regarded merely in its indexing capacity
in comparison with the old form of book index, it has several very
distinct advantages. One of the difficulties in connection with the
book index is that it is always being outgrown. It is not possible
to substitute new entries for those which have ceased to be of use
owing to the particular thing indexed being finished with. The
indexing of one particular matter may, therefore, be spread over
several index books. In the card system, everything appertaining
to the one matter will always be found together, as another
card can always be inserted. Dead matter can be removed with
ease, as it only implies taking away a card. With some kinds of
indexing, however, this facihty of removal is a distinct drawback ;
hence it is important to use discrimination Being self-contained,
the card system is capable of indefinite expansion with the growth
of the business itself, as the drawer cabinets can be added to at any
time. The cards can always be re-classified and re-arranged, and
tabbed in different colours for urgent attention or any other
purpose. The arrangement may be alphabetical (by the names
I
OFFICE ACCO.MMODATION 21
of customers or of articles dealt with, etc.) ; chronological (as in
the case of bills to be met or accounts to be collected) ; geographical
(corresponding with the routes of travellers' journeys); or on any
other desired plan. While serving the purpose of an index better
than any book, it may be something more than an index. The card
system is, in many cases, an index plus the thing indexed, and the
uses to which it may be put are many and varied. It may be
adopted for recording particulars of customers' credit, for records
of contracts, for employees' records, for advertising accounts and
records, travellers' reports, etc. ; and many firms are using it
extensively in preference to book ledgers for customers' accounts.
For the purpose last named, cards may be used as large as 8 by 5
inches, ruled on both sides. For some purposes the " Bizada "
and " Kardex" methods of arranging cards are preferable to
drawers.
The loose-leaf ledger is based on the same general idea, and
many features are common to both systems. The advocates of
the card ledger claim that the latter is even more mobile and
easy of reference than the loose-leaf system, and, meeting possible
objections, they hold that such a ledger is no more open to falsifica­tion
than the ordinary book, and point out that a ledger is never
used by itself but only in conjunction with other books. The rod
which passes through the cards may be had with a locking arrange­ment
if desired, and with reasonable care there should be no danger
of cards being accidentally lost. One of the most important
advantages of the card and loose-leaf systems is the saving of the
time periodically consumed in the opening of new ledgers, with
the consequent transfer of accounts from the old to the new
books.
The loose-leaf or card ledger, once started, is practically perpetual.
The position of an account in the ledger is always the same, rendering
an index almost unnecessary ; there is no need to estimate the
space to be left for each account, as in the bound ledger, with the
waste of stationery on the one hand and the over-running of the
allotted space on the other, which is so characteristic of that method,
because further sheets or cards can be added to any particular
account as they are required ; filled leaves can always be removed,
reducing the bulk of the ledger to what is absolutely necessary
for current accounts.
22 OFFICE ORGANIZATION AND MANAGEMENT
The appearance of the loose-leaf ledger is somewhat different
from that of the ordinary style of book. (See below.)
The covers are very substantially constructed, as might be expected
of a " perpetual " system. The back of the book is telescopic to
allow of a varying number of pages and contains a lock to guard
against accidental or fraudulent abstraction of the leaves. The
latter may be had in various qualities and rulings, with either
a paper or linen hinge which is pierced with holes through which the
posts or straps in the back of the covers pass. With this system, it
is neither necessary nor desirable to have so long a page as in the
bound ledger, and, as both debtor and creditor sides of an account
fall on the same page, the shape of the leaf is somewhat different
and the size generally smaller than in the old style. This contri­butes
to convenience in handling, and compensates for the extra
weight of the covers, which, with their leather covering and rounded
corners, are by no means clumsy in appearance. As leaves of an
account are filled, they can be transferred to a " Transfer Ledger "
(constructed on the same principle but in a cheaper binding), in
which the account takes the same position as in the original book.
Whilst various methods of indexing may be employed, perhaps
the most useful plan is to designate each account by its initial
letter and a number, the index leaves (bearing lettered tabs and
OFFICE ACCOMMODATION 23
distributed throughout the book) being used to carry the names.
The accounts under each section of the index would commence
at No. 1, and the sheets belonging to a particular account would
bear a subsidiary number. In other words, a number would be
allotted to each account placed under the several letters of the
alphabet, and, to prevent any sheets getting astray, each sheet
would bear a number commencing at unity for each account.
Thus, the sheets of Allen's account might be Al-1, Al-2, and so on.
The absence of any sheet would be at once noticeable. The fraudu­lent
substitution of one sheet for another may be guarded against
in several ways, viz. : (1) by the lock already mentioned; (2) by
having a paper with a special water-mark ; (3) by having the firm's
name printed on each leaf; (4) by having each sheet machine-numbered,
and a register kept of their exact whereabouts. The
sheets should also be in charge of some responsible person. It is
claimed for this system that, although the first cost is somewhat
heavier than that of ordinary books, when the expense is spread
over a number of years it compares favourably with the cost of
any good account book, there being nothing but leaves to purchase
after the first outlay. The advantages are incontestable, so long
as the book-keeping staff are properly trained.
In connection with the card and loose-leaf systems, other labour-saving
devices can be used with advantage in large offices. For
instance, the name and address of every customer may be set up
in type or be moulded in a die, and be retained in either form,
so that it is available not only for stamping the heading of the
ledger account but also for addressing purposes, or for stamping
3—(1545)
24 OFFICE ORGANIZATION AND MANAGEMENT
any document which requires the customer's name and address.
The modus operandi is as follows: The stereotyped addresses are
kept vertically in trays, like the cards of a Card Ledger ; when
required, they are taken out and inserted in a machine of the tj^e
of the " Addressograph," which (practically automatically) prints
them off at the rate of about 1000 per hour, repeating any that it
may be desired to repeat, and skipping any that it may be desired to
skip. The standard plate is in five lines, but any one (or more)
may be blocked out if desired ; and the machine can be adjusted
to print names in consecutive lines on the same sheet, thus
admitting of the rapid preparations of "skeleton " pay-rolls, lists
of Ledger Balances, etc.
The great saving of time and tedious labour effected by the use
of calculating machines is not yet sufficiently realized in commercial
circles in this country, although for many years such machines
have been in use amongst actuaries, astronomers, and others,
and in general use in all large, progressive businesses. The great
bulk of business calculations are, of course, additions ; accordingly
adding machines are ordinarily the first to be introduced. The
Burroughs Adding Machines and the " Comptometer " are the most
generally used and the most generally useful. In many cases,
however, multiplication and division are involved upon a large
scale. Any adding machine can multiply. They can also divide ;
but for the latter purpose, at least, such machines as the Britannic,
the Monroe, etc., are much more effective. Attention may also be
directed to the " Dalton " and the " Sunstrand," which, on account
of their simple keyboard, are very easily mastered. For special
classes of calculations, slide rules are also most useful if handled
with care. Mention must also be made of Burroughs Book-keeping
OFFICE ACCOMMODATION 25
Machines, which are admirable in every respect. These are, how­ever,
perhaps too costly to be used as widely as they should,
although they would soon repay their cost even in connection with
quite moderate-sized concerns. More detailed information under
this heading will be found in the author's Office Machinery and
Appliances (published by Gee & Co., Ltd.).
If there is reason for saying that calculating machines are too
little known, the same can hardly be said about typewriters. The
office which nowadays conducts its correspondence by means of the
pen is antiquated indeed. Not only on account of the speed (where
the operator is worth having) has the typewriter an immense
advantage, but the appearance of a properly typed letter is greatly
superior to the general run of pen-written documents. The term
" properly typed" is used advisedly, for perhaps in no other
department of commercial life is the market so over-run with
potterers. A badly typed letter, whose spelling is equalled only
by its punctuation—or the want of it—is the reverse of creditable
to the firm sending it out. It is well to bear in mind, too, that a
typewriter is not a toy, but a somewhat expensive and intricate
piece of machinery, and that it pays, therefore, to have an efficient
typist even at somewhat above the minimum salary. As to
machines, there is a sufficiently wide choice. There are now on
26 OFFICE ORGANIZATION AND MANAGEMENT
the English market upwards of twenty makes, each claiming some
peculiar advantage for itself. The combination of all the virtues
in one machine is perhaps a " consummation devoutly to be wished "
hardly obtainable at present. The general features of the t5rpe-writing
machine are too well known to need description, though
some remarks on the different types of machines may not be without
service.
The battle of the typewriters wages round the questions of
single versus double keyboard, ribbons versus pads, visible writing
versus some other advantage, type-bars or—something else. As
regards the keyboard—the arrangement of the keys in relation to
the letters of the alphabet—nearly all the machines adopt what
is known as the " universal" arrangement of letters. At one time
many patterns of typewriters had a separate key for each character,
but the modern tendency is in favour of making one key do duty
for two or more characters by means of a " shift" key, or keys.
The use of shift keys permits of a more compact keyboard, a less
number of working parts and a consequent saving in cost.
The method of inking on most machines is by means of a ribbon
against which the types strike and through which the impressions
are produced. The Elliott-Fisher is specially constructed for
writing in books, and will make a carbon copy of a letter in the
letter-book or of an invoice in the day book at the same time as
the letter or invoice is being written. Many machines are fitted
with more than one style of type.
The " Noiseless " typewriter was introduced into this country a
few years ago, and electric typewriters which have recently been
placed on the market are certainly worth attention, particularly
when a large number of carbon copies is desired. All tjrpe-writers
are inclined to be noisy, but if a rubber mat be placed
underneath the machine it will be found to reduce this noise to a
minimum. The t3^ists will appreciate also the relief to the tips
of the fingers obtained by covering the letters on the keyboard
with rubber tips, which, duly inscribed with the name of the
letter, can be purchased for a small price from any typewriter
agent.
Another very useful machine is the Dictaphone (the Dictaphone
Co., Kingsway, W.C.2), a sort of "super-phonograph," into which
a manager can dictate his letters, instructions, etc., in his own
time.
is
and
or of th
a
OFFICE ACCOMMODATION 27
time, and at his own pace, leaving them to be reproduced by the
typist (who meanwhile has been engaged upon other work) at
whatever time may be found most convenient. The Dicta­phone
has only to be better known to be more generally
appreciated.
Not the least important feature connected with the remarkable
growth of the use of the typewriter is the greater facility with
which copies of an original document can be obtained by the aid
of carbon sheets, thus for many purposes obviating the necessity
for obtaining press copies. For business purposes, the reproduction
of hand-written circulars and similar matter is now practically
obsolete. On the other hand, for the duplication—or, indeed, for
the indefinite multiplication—of typewritten originals there is a
wide choice of apparatus. Even lithography can be utilized in
connection with the typewriter by using a lithographic ribbon
and transfer paper. But the more usual method is that known as
duplicating or mimeography. The paper used for the original
has a waxed surface which is cut by the types of the machine (or
by a stylo if done by hand) in such a way as to allow the ink supplied
by a roller to pass through it. Ordinarily, the plan is to stretch
the stencil in a movable frame, the paper for the copy being placed
underneath ; and where there is no great amount of copying work
to be done this method answers well enough, especially if an auto­matic
(self-lifting) frame is used. In that case the paper is placed
under the frame, which is held down by one hand while the ink
roller is passed over it by the other. When released, the frame
rises, the printed copy is taken off and the process repeated. But
where a good deal of copying is required one of the rotary dupli­cators
now on the market will be found more efficient and a great
time-saver. One of the best of these machines (the Roneo) is
thus described : " A metal frame supports a cylinder of thin,
perforated steel. On the outer surface of the cylinder is stretched
a linen ink pad, and over this is placed a stencil. In the earlier
models, the pad is inked by a felt roller resting in an ink reservoir
suspended between the two sides of the frame. . . . The ink
is supplied automatically after the reservoir is once charged,
and there is no risk of the ink coming into contact with the fingers,
or of the paper getting soiled. . . . The cylinder is rotated by
a handle, or motor if desired. The paper fed into the machine
28 OFFICE ORGANIZATION AND MANAGEMENT
is gripped by a rubber impression roller, which presses it against
the stencil as the cylinder revolves, and the sheet, perfectly printed,
is then automatically discharged on the other side." A cyclo­meter
can be attached, showing the number of copies printed.
Sixty copies per minute is a good average for the hand-worked
apparatus. With a self-feeding machine driven by foot, motor
(connection with an electric lamp is sufficient) or other power, this
speed can be sensibly increased. It is claimed that anything up
to five thousand copies can be produced from one original. It will
be seen at once that such an apparatus will be a great boon in
many offices for the rapid production of circulars, prices current.
OFFICE ACCOMMODATION 29
specifications, market reports, etc. In some respects, it is better
than the printer. It is, generally speaking, more ready; and, if
necessary, the work can be done under personal supervision.
Circulars produced on the best machines, the names and addresses
being inserted separately with ink to match, cannot be distin­guished
from original letters—an obvious advantage. For better
class work the Gestetner duplicator and the Melin machine should
be considered.
The rotary principle, so conducive to speed in the matter of
duplication, has been applied with good results to ordinary press-copying,
and is especially useful in cases where the system adopted
is that of filing with each letter received a press-copy of the
reply sent. The tissue, instead of being bound into a book, is
placed in a continuous roll on the machine. The letter to be
copied is passed through by a turn of a handle and the copy
(automatically detached) is ready for filing. This means a very
considerable saving of time as compared with the ordinary style
of press.
No up-to-date office is complete without means of inter-communi­cation
between the Manager and the various sub-departments.
There are several methods in vogue which are a great improve­ment
upon the old hand-struck gong. The least expensive is
the provision of an electric bell in the outer office which is connected
with a small bell push on the principal's desk, there being a recog­nised
code of signals, one ring being for the shorthand clerk, two for
the principal assistant, three for the office boy, etc. If there are
several chiefs using bell signals, each bell communicates with an
indicator in the general office, on which indicator a disc drops which
is assigned to the particular chief who has rung. This method is,
of course, useful only as an indication that the chief requires someone
to go into his room, and a good deal of time and unnecessary passing
in and out will be saved by the adoption of a method which enables
the message to be spoken. Some offices still patronize the old-fashioned
speaking-tubes; but these are most insanitary, and
cumbersome in other ways. A far better method is to adopt
one or other of the various types of house telephones. Beyond all
question one of the best of these is the Dictograph. Telephones in
rooms should always be supplied with a silencer, to prevent the
person at the other end of the wire from overhearing any ordinary
30 OFFICE ORGANIZATION AND MANAGEMENT
conversation that may be going on in the room while the telephone
is being used.
Those desirous of keeping in touch with the latest developments
in office machinery and appliances wiU find that membership of
the Office Machinery Users' Association, Ltd. (by guarantee),
c/o London School of Economics, Houghton Street, Aldwych,
London, W.C.2., is an excellent investment.
CHAPTER IV
Division oi Responsibility—Principles underlying Sub-division of Work and
Arrangement of Duties of Staff—Division into Departments—Branches—
General Systems of Control and Internal Check—Cash Checks
IN all except very small offices it is of paramount importance that
there shall be a proper and defined division of responsibility. Even
in small concerns, where the clerical staff is limited to two or three,
care should be taken that each one is held entirely responsible for
certain portions of the work, rather than allow the same class of
work to be done indiscriminately by whichever clerk happens
to be disengaged. It may be urged that, in a small office, it is
absolutely necessary that each member of the staff shall be able
to take up any portion of the work in the absence of another clerk,
but the experience necessary for this is better acquired by changing
the work, say, at monthly intervals rather than by encouraging the
slipshod arrangements which invariably result from a lack of
proper definition of individual duties.
In large undertakings, this clearness of division of responsibility
must commence at the very highest positions in the office. More
firms than would acknowledge the fact, or are even aware of the
fact, suffer appreciably from the results of friction and rivalry
between heads of sub-departments, and it behoves the successful
Manager to obviate justification for friction by laying down clear
definitions of the work assigned to each of his immediate assistants,
whose spheres should not be allowed to overlap.
Different businesses have different methods of defining the
responsibility of their assistants or of organizing sub-departments,
but the chart on the following page gives a system which will be
found to work well.
CLERICAL STAFF. It will be seen from this chart that the
office clerical work is divided into three main sub-departments, the
heads of which are directly responsible to the Manager for the con­duct
of their particular portions of the work. The responsibility
devolving upon each of these heads in nowise overlaps, and the
Secretary, the Accountant, and the Cashier have well defined
31
32 OFFICE ORGANIZATION AND MANAGEMENT
spheres and should have equally well defined office accommodation.
If the undertaking is a Limited Liability Company, the Secretary
will be responsible for certain statutory duties, more fully dealt
with in the chapters devoted to Company work, and, in this case,
he will be directly answerable to the Directors for the execution of
such work. He will deal with the recording of minutes and other
DIVISION OF RESPONSIBILITY 33
work connected with the meetings of Directors, the register of
shareholders and the transfers of shares, and such portion of the
correspondence as is purely secretarial. In this chapter and in the
next, however, it is assumed that the business is one in which
the Secretary is answerable solely to the Manager, and the chart
shows that his subordinates take entire control of the correspond­ence
and record work of the office. This work is dealt with in detail
in Chapter V.
The Accountant holds a position of the utmost importance, and
upon the accuracy and lucidity of the work of his department much
depends. He is not merely responsible for " keeping the accounts "
of the firm, but should also be of the utmost service to the Manager
in keeping a careful eye upon economical production and administra­tion.
It is his paramount duty to see that all the books are kept
up to date, so that the most recent information on all details of the
business is at hand for the Manager's information. It is not
sufficient nowadays for the Accountant to be able to speak authori­tatively
and promptly as to the financial condition of the firm as a
business undertaking; he must be in a position to advise as to
the financial aspect of every important step, and this not from a
theoretical point of view, but based upon actual experience of the
results obtained from similar work which the firm has previously
undertaken. Success in manufacture is obtained by careful study
and improvement of each individual detail, and similarly the most
successful Accountant is he who makes his figures illuminate the
cost of production, administration, or transit, so that the Manager
or Technical Adviser can see at once where undue expenditure is
taking place. Some Works Managers resent very much what they
call undue interference in their province on the part of the Account­ant,
and it must be admitted that many Accountants are somewhat
apt to look upon their work as the all-important part of commercial
undertakings. This is a mistake, and the Manager must make
every effort to see that his Works Manager shall realize the very
great assistance his particular department will derive from the analy­tical
figures of the Accountant, and how he will be helped to reduce
his costs ; whilst, on the other hand, the Accountant should be
encouraged to carry out his work in a tactful manner, without any
unnecessary treading on the corns of practical men. The Account­ant
of to-day is a very different individual from his predecessor, the
34 OFFICE ORGANIZATION AND MANAGEMENT
old-fashioned double-entry book-keeper, and there are numerous
examples of the new school taking an enthusiastic delight in the
compilation of useful commercial statistics and assisting, by their
scientific analyses of the minutest details of the firm's financial
transactions, in guiding the Manager's decision on points of policy.
Books and forms are dealt with in the various chapters upon the
financial arrangements, but it may not be out of place here to allude
to the great usefulness of interim balance sheets. Where it was
once customary for a firm to continue trading for twelve months
without having any very definite idea of how things were really
going, the up-to-date Accountant has his books drawn up in such a
manner as to be able to present quarterly and monthly rough
balance sheets, so that his Manager may see the drift of events.
Such undertakings as get their receipts in cash can have even weekly
returns, and there are many businesses employing hundreds of hands
whose Managers have, each week, a return showing estimated profits
sufficiently accurate for all practical purposes. The Accountant's
staff consists of book-keepers or ledger clerks, who deal with the
main books of the firm and into whose hands come the final results
of the work of the other assistants in the Accountant's sub-depart­ment
; the invoice clerks, who render accounts for work done or
goods sold by the firm ; the orders clerks, who deal with the order­ing
of raw goods or material used by the firm in its manufactures
or works ; the prime cost staff, who analyse the actual cost in
material, labour, and establishment charges of each article manu­factured
; the estimating staff, who deal with the quotations and
tenders which the firm sends out for work which is in the market;
and the wages staff, who check the time sheets emanating from the
Works Department, etc., and prepare the wages sheets for payment
by the Cashier's staff.
It will be noticed that this scheme of division places under the
Accountant some work which is, in many businesses, treated as
entirely separate from the Accountant's Department, but, pro­vided
a man of the right stamp is the Accountant, there can be
little doubt that the Manager will find great advantage in securing
the assistance of a master of figures in the supervision of this work,
upon which so much of the economy of the business depends. It
should not be sufficient to extract a careful and accurate analysis
of the result of each accepted quotation or tender, such result being
DIVISION OF RESPONSIBILITY 35
divided properly into each item of material, labour, capital charges,
forwarding, etc., so that the Manager can see at a glance wherein
the profit lies, but every quotation or tender which has been un­successful,
owing to more favourable offers having been made,
should be re-examined to see whether a mistake in calculation has
occurred, whether the margin of profit could not have been
reduced so as to secure the order, or whether there is not some
item in the quotation in which a reduction of the cost of production
must be made if the competition, which has been successful this
time, is to be beaten in the future.
The Cashier's position, though his staff may be small, is one of
great responsibility, and its occupant must possess the absolute
confidence of the Manager. All money except, of course, petty cash
should pass through his hands, though the certificate of the Account­ant
should be necessary for all payments. In many firms, the posi­tion
of Cashier is retained by a relative of the Principal, but, in any
case, he should be guaranteed in one of the numerous societies
dealing with this class of business. Similarly, it will be found
advisable to guarantee every member of his staff, the premium
being so small in comparison with the undoubted security thus
obtained that there is no excuse for a Manager neglecting thus to
protect his firm against the possibility of heavy loss through
dishonesty. The Cashier will be in charge of any collector or col­lectors
employed, and will also deal with the travellers in connection
with the collection of accounts, if such work is done by them.
Payment of wages and salaries will also be made by the Cashier's
Department, after certified wages sheets have been received from
the Accountant's Department.
WORKS MANAGER. The Works Manager must have absolute and
undivided authority in the Works, and not even the Manager
himself should give orders there except through the Works
Manager. The necessity for this supreme control, so far as the
outward issue of orders to employees is concerned, will be
readily understood by aU who have had the handling of large
bodies of men, and the discipline of a Works has much to do
with the quality of its productions and the rapidity of its
output. It is not sufficient for the Works Manager to liave a
thorough and practical knowledge of his business so far as the
methods of manufacture are concerned, to be thoroughly acquainted
36 OFFICE ORGANIZATION AND MANAGEMENT
with the best and most modern types of labour-saving machinery,
to be able to work out personally the numerous mathematical
problems entailed in his particular branch, but he must be possessed
of those special, yet unnameable, personal qualities which enable him
to handle with successful results the workmen comprising his staff.
He must be a strict, though scrupulously fair, disciplinarian—a
slack Works Manager makes a slack Works, and that word " slack "
with such a meaning spells, sooner or later, financial disaster. Work­men
are quick to realize the temperament of their chief, and whether
the old adage " Like master, like man " will be proved true in a
particular Works depends entirely upon the force of personality.
Smartness, activity, and punctuality are excellent examples and,
in addition, it must be known that there is absolute reliability to
be placed upon his word. A promise given must be kept, a warning
uttered must have its threatened result. Effects of order and disci­pline
in a Works are readily discernible. The physical aspect and
cleanliness of the buildings, the personal appearance of the work­men,
the very condition of the stores will speak with no uncertain
voice. Just as it is necessary to take stock of materials in hand
and to make sure that they are kept in such manner as to prevent
their deterioration, just as it is necessary occasionally to shut down
and clean boilers, just as it is necessary to keep machinery properly
oiled to ensure easy running, or greased to prevent rusting when
temporarily disused, so it is necessary that the intellectual and
manual part of the manufacturing " machinery " should be properly
catered for. The workmen must have proper hours, otherwise their
work cannot possibly be of the best; they must have proper
pay, otherwise their physical powers will be lessened ; they must
be in loyal co-operation with their chiefs, otherwise " scamping "
will follow. All these are matters coming within the province of
the able Works Manager, though it will be impossible, of course,
to ensure that, even where the best conditions obtain, all the work­men
will necessarily be of the highest grade. Still, that the condi­tions
are good should be the aim, and every effort should be used
to have a good understanding with the men. The rules governing
the Works should be carefully considered and clearly enunciated.
Some urge that factory rules should be few, but it is infinitely better
for the desires of the management to be set forth clearly at the
commencement of employment, rather than to leave foremen too
DIVISION OF RESPONSIBILITY •M
much latitude in this direction, or to be constantly issuing new
regulations. The Works Manager has his own clerk, or clerks if
the Works are large; timekeepers to record the time worked by each
man ; foremen in charge of the various branches of manufacture ;
together with the skilled and unskilled workmen and the apprentices
to the different trades. With the possible exception of the clerks
or timekeepers, the Works Manager should be entrusted with all
appointments in his department.
ENGINEERING ASSISTANTS AND DRAWING OFFICE. The Engineer­ing
or other technical assistants should, of course, be answerable
directly to the Manager, but whether he should deal directly with
the work of the Drawing Office must depend upon the calibre of the
Engineering and Drawing Office Staffs in each individual business.
In a large Works, the Chief Draughtsman should be as carefully
selected as the Works Manager himself, and harmony between the
two officials is as greatly to be desired as harmony between the
Works Manager and the Accountant. Even the most experienced
draughtsman, with the most thorough acquaintance with workshop
practice, will get many ideas from men in the Works, but no altera­tions
in work should be permitted until these have been duly
passed through the Drawing Office and incorporated in the drawings
guiding the manufacture. Apart from the necessity of standardiz­ing
the new arrangement, and getting its exact dimensions recorded
for future use, needless confusion will result from unauthorized
departures from the official instructions conveyed by the drawings.
The Storekeeper and the Warehouseman should each be responsible
direct to the Manager, except in businesses of such magnitude that
it is quite impossible for the latter to give any supervision to these
departments, in which case it will probably be found preferable to
place them both under the Accountant. In some firms, it is pre­ferred
to place the Storekeeper under the Works Manager, but
there are some marked advantages in these two departments being
separate, and the Stores being, so to speak, the shop where the
Works Manager makes his purchases. It is probable that lack of
promptitude and attention on the part of the Storekeeper would
be less likely to escape complaint if he were not one of the Works
Manager's own staff, and there can be no playing with this work
as it has so great an influence on the regularity of completion of
orders, with its resultant effects on the continuance of business
38 OFFICE ORGANIZATION AND MANAGEMENT
relations. Again, if the Storekeeper is not responsible to the Works
Manager, there is a better chance of his insisting upon all issues and
returns of stores being duly made in the prescribed way.
Forwarding business should be a department by itself, and the
work should be entrusted to a thoroughly reliable man, as it will
entail much absence from the office premises. Agents, travellers,
and Branch Managers will deal directly with the Manager, unless
their number justifies the appointment of a Chief Outdoor Manager.
Even in this event, however, it will be found serviceable that the
Manager himself should devote some time to keeping in touch with
this portion of the staff, as by this means he keeps himself familiar
with the requirements of his individual customers in particular
districts.
Similarly, where the business employs an Advertising Inspector,
his work should be dealt with directly by the Manager, though his
certificates will be passed on to the Accountant for use in connection
with the Advertising Accounts.
It is unnecessary to say much under the heading of Internal
Check in the present Chapter, as the subject is treated more
fully in Chapters XVI and XVIII, which deal respectively with
the division of responsibility and the functions of the staff
and professional audits. On the subject of the staff audit, how­ever,
which constitutes a system of internal check provided by
the undertaking itself, it may perhaps with advantage be pointed
out at this stage that, whatever the precise nature of the business
may be, the following fundamental principles must in all cases be
complied with in order to render the system efficient—
(1) There must be a definite division of responsibility, so that
in the event of any duties being improperly performed,
or neglected, there may be no uncertainty as to who is at
fault.
(2) Per Contra no one should be allowed to perform duties
which do not properly devolve upon him personally, save
in pursuance of express instructions received from a
superior who is prepared to assume responsibility for this
departure from the general system of internal check.
(3) All clerical work should, as soon as possible after its per­formance,
be checked by another member of the staff,
and no two clerks should check each other's work. Thus,
DIVISION OF RESPONSIBILITY 39
supposing there are four clerks in a department, viz.
A, B, C, D, the rule should not be for A to check B's
work, B to check A's, C D's, and D C's, but rather should
B check A's, C check B's, D check C's, and A check D's.
The risks of collusion, it will be obvious, are far smaller
if the latter plan is adopted.
(4) From time to time—as far as possible, not at fixed intervals,
and not after previous notice—the duties of the various
members of the staff should be changed, so that, if there
are any irregularities in the books, they will, in the absence
of collusion, be discovered by the book-keeper succeeding
to the duties of that department.
(5) With a view to ensuring the efficiency of the above-men­tioned
safeguards, every member of the staff should be
required to absent himself from the place of business for
a minimum period of, say, ten days, and preferably longer,
. once at least in each year. The experience of the past
has shown that frauds, which might otherwise have
remained undetected for an almost indefinite period, are
speedily discovered if the perpetrator is obliged to be
absent, and is therefore unable to " explain " discrepancies
as they come to light, and make unauthorized entries in
order to secure the balancing of books, the double entry
of which has been disturbed by previous fraudulent entries
or omissions.
While upon this subject of systems of Internal Check, it may be
mentioned that there are numerous devices in the market designed
to check automatically the receipts of cashiers. These are of con­siderable
value to tradesmen and others similarly situated, where
the cashiers may be required to receive in the course of a day con­siderable
sums, over which it is difficult to devise an efficient system
of check by any system of accounting. For ordinary office pur­poses,
however, they are unnecessary, as such receipts are practically
non-existent. The best known instruments of this class are those
supplied by the National Cash Register Co., Ltd., who manufacture,
however, only two really distinct types. In the one case, the till
is provided with keys, somewhat similar to those of a typewriter,
enabling the amount of the receipt to be registered inside the
machine and to be at the same time exhibited within sight of the
4—(iS4S)
40 OFFICE ORGANIZATION AND MANAGEMENT
customer making the payment, which is supposed to provide a
check against fraudulent manipulations. The more expensive
varieties of this type provide an automatic adding apparatus,
which enables the total receipts that should be in the till to be
readily arrived at and checked against its contents. The second
type requires the Cashier to write down the amount of each item
received upon an endless band, which is all enclosed within the
register save the minute portion upon w^hich the actual amount
received requires to be written. The process of opening the cash
drawer turns the roll and removes even this portion beyond the
control of the Cashier, thus making subsequent alterations im­possible.
If desired, this form of register can be arranged to take
a duplicate record of the receipts by the aid of a carbon slip between
two rolls of paper.
Where a considerable amount of work devolves upon the Cashier
the first of these two check tills possesses many obvious advantages ;
but where only a reasonable amount of work is involved, there is
something to be said in favour of the last-named, which possesses
the advantage of maintaining a record in the handwriting of the
DIVISION OF RESPONSIBILITY 41
Cashier himself. Whichever type is adopted, however, it is
important to bear in mind that—like all other mechanical devices—
they are practically useless unless accompanied by a sufficient
amount of intelligent supervision.
Machines for counting money, for giving change, and for making
up pay envelopes are now available, also machines for franking
envelopes and wrappers, as an alternative to the cumbrous process
of affixing postage stamps.
CHAPTER V
Correspondence, including Methods of Filing, Printed Forms, and Rubber
Stamps for purposes frequently in use — Methods of following up
Inquiries, etc.
THE Manager's Secretary or Chief Correspondence Clerk may be
said to hold the key to the organizing side of an office, just as the
Accountant holds the key to the financial side, and the proper
organization of this department is of great importance to the
personal convenience of the Manager as well as to the development
of the business. One of the leading Typewriter Companies has a
very telling poster in two divisions, the first depicting a Manager
surrounded with letters which he is laboriously writing by hand,
and anon gazing up in despair at a clock pointing towards 9 p.m. ;
the second half shows the same individual spick and span with hat
and gloves on, just going home as the clock points to five, whilst
a fair shorthand writer and typist takes out a bundle of neatly
typed letters—and the poster does not exaggerate the difference to
the Manager.
The Chief Correspondence Clerk must of necessity be an expert
shorthand writer and one of first-class reliability, both as regards
his note-taking and his transcription. With a system of shorthand
like Pitman's, there is no excuse for incapacity, but many com­mercial
shorthand writers do not pay sufficient attention to the
advanced stages of their art, with the result that there are still to
be met with examples of those curious blunders which are the out­come
of a failure to use the proper outline for a word easily confused
with another. The rate of speed required depends, of course, upon
the individual Manager, but a good reliable rate of 120 words per
minute will, in most cases, be found sufficient for commercial pur­poses.
The Correspondence Clerk should also be a capable typist,
as there are few firms of to-day who are content to have their corre­spondence
written by hand, both on account of the saving of time
involved and the additional readability and compactness of type­written
matter. The typewriter also makes possible the duplication
of circulars, etc., in a style and with an ease and rapidity which a
42
CORRESPONDENCE 43
few years ago would have been deemed almost miraculous. Some
clerks are absurdly reluctant to learn shorthand and typewriting,
particularly the latter, and it is largely owing to this that the lady
clerk now holds so firm a position in the commercial world. It
is foolishly suggested that the arts are mechanical. It is true that
some manual skill is required; but the mere mechanical utilization
of this manual dexterity produces nothing but disastrous results.
It is the combination of the manual skill with a thorough knowledge
of the two accomplishments—mixed, as Opie mixed his colours,
" with brains"—which makes the valued correspondent, the
Manager's right-hand man, the office assistant who becomes the
confidential clerk and who, by reason of the knowledge which he
acquires of every part of work which passes through the hands of
his principal, makes himself one of the most important officials in
the office. There is never any fear of a really competent shorthand
clerk getting " side-tracked."
The typewriter and the duplicator have been referred to in a
previous chapter, and it will now be useful to trace the various
stages of this part of office work.
Nearly every Manager prefers to deal first thing in the morning
with the incoming mail, which has been opened and put in order
for him by his Correspondence Clerk. Where possible—-and it is
astonishing how many things are possible when a really smart
Correspondence Clerk is in question—a letter on which the Manager
will want to see previous correspondence, or a copy of a contract,
or the most recent quotation received from a manufacturer, should
be brought in with the other documents annexed. Letters which
have to be referred to a sub-chief to deal with should be endorsed
to him for the Manager to initial. For this purpose, rubber stamps
are best used, as time spent in writing frequent endorsements is
wasted. For instance, the Correspondence Clerk will have stamps,
each bearing the name of a sub-chief or department for use in
referring letters. A piece of stamp-edging with the name on it
should be placed on the top of each stamp so as to facilitate handling,
and revolving holder-frames can be obtained in which to keep the
stamps. Similarly, the Manager should have a stamp for his
facsimile initials, for use on such endorsements, and a stamp for
his facsimile signature for signing orders, etc. These latter stamps
should be kept carefully locked up.
44 OFFICE ORGANIZATION AND MANAGEMENT
All the letters should have the date of their receipt stamped
upon them. Some use little transparent labels for this purpose,
but these are liable to drop off, and a rubber stamp as appended
is better—
Earlham Manufactaring Co.
No t^Q
Recvd. 17 J a n , ' 2 8 .
Ackd.'^i. ^Ao^....l8
Ansd.. . [% .W\i/,....M...
The first date is part of the stamp, the figures and month being
movable. This line is changed the first thing each morning. The
other two lines are written in by the clerk dealing with the acknow­ledgment
or reply. The letter shown on the acknowledgment line
refers to the type of acknowledgment sent. " A " may be a final
acknowledgment which will not be followed by a letter, as shown
on Form 1. " B " on the contrary will be followed by a definite
reply (see Form 2); where there is no objection to the use of
post cards they are to be preferred on account of the saving in
postage.
All letters received should be entered in the " Letter Record
Book " under their number. Telegrams should be dealt with in
the same manner, except that red ink should be used for their
entry in the Record Book and the acknowledgment should take
the form of a confirmation (Form No. 3).
Telephone messages should also be treated similarly in all
important matters. Every telephonic message received by a clerk
should be entered in the Telephone Book (Form No. 4).
The letter paper used should be good, though plain. Gaudy
headings do not savour of business correspondence, and the following
selection of note and letter headings will be found to answer all
requirements (see Forms No. 5, 6, 7, and 8).
ACK. A.
Earlham Manufacturing Company.
A. H. BLAKE,
Manager.
TOXTETH WORKS,
BOW, E.ll
19
t37 7^
ijpfl f — —•—
Madam,
I have to acknowledge receipt of your
--.of the instant, re
postcard
for which I beg to thank you.
Yours faithfully,
A. H. BLAKE,
Manager.
(Fonii No. i)
ACK. B.
Earlham Manufacturmg Company
TOXTETH WORKS,
A. H. BLAKE,
Manager BOW, E.l 1
^9
Dear-^—^"-
Madam,
I beg to ack)iowledge receipt of your
of t/ie instant, re
postcard
which will receive due attention.
Yours faithfully,
A. H. BLAKE,
Manat'er.
{Form No. 2)
EARLHAM MANUFACTURING CO. LETTER RECORD BOOK.
Date. Reference
No.
Letter
or
Postcard.
If to be
Returned
to
Manager
Name and Address ot
Person from whom received. Nature of Communication.
{Form No. 3.)
To whom referred
with Instructions.
Date
Written to.
•
Date
Received
Report Subsequent
Reference. Result How Document
finally disposed of
«
EARLHAM MANUFACTURING CO. TELEPHONE BOOK
MESSAGES RECEIVED. MESSAGES SENT.
Date, Time. Firm and Person
Telephoning. Message.
{Form No. 4)
Signature of
Official
Receiving
Message.
Date. Time. Firm and Person
Telephoned to. Message.
Signature ot
Official
Telephoning.
From To
The Earlham Manufacturing Co., '
TOXTETH WORKS,
BOW, E.II
PLEASE REFER TO
IN YOUR REPLY.
sent
We beg to confirm Telegram -.—^—^
^ '^ received pr om
{Form No. 5)
19
this day as follows:—
I
PLEASE QUOTE
BEFEBENCE No.
YOUK BEFEBENCE No.
Earlham Manufacturing Company.
A. H. BLAKE,
Manager.
r./.,w- TOXTETH WORKS,
No. 0341 EAST
T.i.,r„,..- ^"^'""'•' BOW, E.11
" E A R L H A M , LONDON"
Typed
{Form No. 6)
Please Quote ReSerence No.
Youi Releience No.
Earlham Manufacturing Company.
A. H. BLAKE,
Manager.
No. 0341 EASÏ
Telegraitis—
"EARLHAM, LONDON'
Typed
TOXTETH WORKS,
BOW, E.
Enolosuyt
{Form No. y)
Earlham Manufacturing Company.
A. H. BLAKE,
Manager.
Telephone—
No. 0341 EAST
TOXTETH WORKS,
BOW, E.
19
To
(Form JVo. 8)
s, r H <<T> 0^ "5 Sp C, "II f-l (/? o r+
^ o a-
H a crq
o
o
• T3 2 . ^ 2 <§; g- g §^ B: £t e I P ^ I o o o ^ | . o g g^ ^ ^ ^
CORRESPONDENCE 51
In going through the morning's mail the Manager should dictate
replies to as many letters as possible right away, as this plan enables
the correspondence department to deal with them during the day.
Some Managers get into the bad habit of leaving their correspond­ence
until last thing, which results in the bulk of the replies having
to be written after ordinary office hours, and the letters go out
without having been seen and signed by the Manager himself.
Serious mistakes often crop up in this way, and the work of the
correspondence clerks will not improve in quality unless proper
consideration is given to the necessity for their having reasonable
hours of labour; moreover, postage " late fees " may easily soon
mount up to an appreciable sum.
When the Manager has gone through the mail and the letters
have been either replied to or referred to the various depart­ments,
the Correspondence Clerk brings all out, putting those re­ferred
to each department in a special basket which he sends without
delay to the sub-chief in charge. Having thus dispatched every­thing
to which he is not personally attending, he should now take
advantage of every opportunity to get his letters typed, either
personally or by an assistant, and here again the importance of
the use of correct shorthand comes in. There should not be the
slightest difficulty in his handing on his note book to his typist to
transcribe, and, where he desires to get together information
required by the Manager, or to deal with other work, this is most
useful.
In many offices, every letter which is typed has a carbon
copy made simultaneously, and, after the original copy has been
signed and any alteration made therein noted on the duplicate,
the latter is annexed to the letter to which it is a reply and filed
with it.
There are several methods of filing inward correspondence, and
but few offices now resort to the old-fashioned plan of filing letters
in order of receipt—^whether by means of metal holders or by
pasting into guard-books. This system is both time-wasting and
inconvenient, for the letters have to be numbered, indexed, and
cross-referenced in the same way as a press-copying book; and
even then, should the Manager wish to go through the entire
correspondence upon a given subject, he is obliged to turn over
a large number of irrelevant letters, probably in several books more
52 OFFICE ORGANIZATION AND MANAGEMENT
or less cumbersome. There is only this to be said in favour of such
a system, that it easily allows the letters received during any parti­cular
period to come under review. In this respect any system
by which letters are filed in order of receipt has a certain advantage
over those by which they are distributed under alphabets or
numbers ; but the Letter Register, to be mentioned again later,
will go a long way towards the same end so far as the inward corre­spondence
is concerned, and a press-copy Letter Book, if kept,
will perform a similar function with regard to the outward
correspondence.
For rapidity of filing and readiness of reference, the alphabetical
systems have much to recommend them. The earliest of these,
the pigeon-hole system, was a stage better than the guard-book
method, as it did keep all the correspondence from one firm together ;
and the soul of the " exact man " was surely gratified when he put
away that neat cardboard-backed bundle in which every letter
was duly docketed with its date, subject, etc. But the system
was somewhat cumbrous (involving, as it did, bundle after bundle
being taken out until the right one was found), and it is practically
out of date as a letter-filing system. It may, however, still serve
for certain purposes, as where documents are required to be sorted
alphabetically and placed in a temporary receptacle for further use.
Sets of pigeon-holes can be purchased with revolving shutter fronts,
as well as the more ordinary kinds.
Perhaps the simplest of the alphabetical systems is the expand­ing
alphabet case having lettered pockets into which letters are
simply dropped. The case is labelled on the back and within a
somewhat narrow compass the system is convenient enough. Then
there are systems, of which Stone's seems to have been the pioneer,
viz, boxes or drawers, with index sheets under which are placed
the letters, a spring clip keeping them in place. For greater security,
however, many of the systems in common use provide that the letters
shall be pierced with holes at the side or top and placed over upright
posts in the filing receptacle, whether in the form of book, box, or
drawer. The Shannon may be mentioned as a representative of
this class. The simplest form of the Shannon, as well as the Alpha,
Anchor, Era, etc., is a sort of glorified apron (hanging) file, with
the addition of an index. Instead of a pasteboard back it has a
substantial board to which is attached a perforator, a double spring
CORRESPONDENCE 53
arch over which the letters are placed, and a cover on which a spring
presses to protect the letters from dust. With the addition of a
drawer front (in which case the perforator is supplied separately),
any number of these files can be arranged in a cabinet or cabinets.
The index can be divided and sub-divided as required and, as the
file is filled, the contents are transferred to a " binder " or case
marked with the dates on the back, the corresponding dates with the
number of the case being recorded on the cover of the üle from which
the letters were removed. There is a very useful form of document
file for folded papers (statistical returns and the like) and a special
catalogue filing cabinet containing divisions of various sizes for the
reception of catalogues and price lists of the firms with which
business is done.
Another method which has come into favour during the last
few years is known as the " individual " system, of which the
" Stolzenberg " is an example. The ruling idea of the
system is a separate file for each letter of the alphabet, or for each
correspondent or subject, or for a particular period. The letters
are placed in a strong paper or linen cover (which can be had in
various colours to distinguish departments, subjects, geographical
divisions, etc.), in the back of which are fastened metal strips which
54 OFFICE ORGANIZATION AND MANAGEMENT
pass through corresponding holes pierced in the documents, the ends
of the strips being bent down over the top letter and held in place
by a clip. The files are stored in suitable cabinets. It is not in­tended
that there should be any transfers, the files themselves being
inexpensive. One of the advantages put forward on behalf of this
system is that the files take up practically the same space as that
occupied by the letters themselves, whereas it is necessary that a
box or drawer should provide space for future as well as immediate
needs.
In addition to these methods, there are two numerical systems
which deserve consideration. The first has been for many years,
and continues to be, largely used on railways, and may, therefore,
be considered to answer fairly well even for a large correspondence.
It has the advantage of requiring the minimum of equipment;
indeed, this is probably the strongest feature in its favour. Each
letter (or telegram), etc., coming in is stamped with the date of
receipt, and is entered in a letter register ; the date, writer's name,
and subject being recorded thus—
Progressive
No.
1234
5
6
and
Name
so on
Date Subject
«
Sender's reference
(if any)
The numbers start at unity and run throughout the year. As each
letter is registered, the relative number is placed on it in the manner
shown below. The letters are then sorted and handed over to the
particular department to be dealt with, after which they are placed
CORRESPONDENCE 55
on edge (the paper used is generally octavo shape) in an ordinary
drawer with the number showing in the right-hand corner, thus—•
1234
1236
i l l
! i i li
1 1 ' 1 1
1236
'1 gi
i i ^
and afterwards tied into bundles and labelled.
fiOl
to
1000 /
1928
So-
1
to
600
/
/
1988
Each reply sent out bears the number of the inward letter in
combination with the copying book reference, thus:—r^j ^m
" A " distinguishes the department, " 2 " the number of the letter
(copying) book, " 16 " the number of the letter in the book (or the
date may be used instead) and " 1234 " the progressive number
under which the correspondence has been registered. This reference
should be given on any further letter received from the sender of the
original. Such further letter would not be registered (though its
receipt might be noted against the original entry in the register),
but would be attached by the filing clerk to the previous papers
and sent to the party dealing with the matter. Should such a letter
be registered in error, or should it be necessary to attach any letter
or batch of letters to correspondence bearing a different number,
the later number would be written off in the register thus : " 6789—
see 1234," the first and original number only being retained, and the
number on the later letter being altered accordingly. To make
this system at all convenient, an alphabetical index in the register
is, of course, necessary.
There is one advantage possessed by the Letter Register, whether
used in connection with the method just described or some other
filing system, which is worth noting. It enables a Manager who has
5—(1545)
56 OFFICE ORGANIZATION AND MANAGEMENT
been absent from the office for any period to get a bird's-eye view
of the correspondence which has taken place in his absence, and
to call for any letters he may desire to see.
The second numerical system to which reference was made is of
modern introduction, and, when used in combination with the card
index, is probably the most scientific and the best all-round system
extant. It is sold by the Library Bureau, Ltd., the Globe Wer­nicke
Co., and many others, and is generally known as the Vertical
system, the letters being placed upright in the file instead of being
laid flat as in most of the alphabetical systems. The Vertical
system is not, however, confined to a numerical classification, but
can be used in connection with an alphabetical or geographical
arrangement, and in such cases it would be possible to do without
the index by making the system self-contained. In the numerical
system with which we are now dealing, the correspondence with
one firm or on one subject, etc., is placed in a stout manilla folder
bearing a number. The folders are numbered consecutively from
one upwards, and are placed upright in the file between guide cards
numbered at intervals of ten and distributed through the file for
the purpose of facilitating reference. Each new correspondent is
COERESPONDENCE 57
given a folder bearing the number next above the last one in the
file. His name is entered on a card, together with the date of the
first letter and the number of his folder, the card being then filed
alphabetically in the index drawer. Thereafter (until transfer is
made) the folder will contain all the letters from that correspondent,
and also the carbon or press-copies of the replies thereto as pre­viously
suggested. When, therefore, it is necessary to refer to the
details of any matter dealt with in several letters, the folder contain­ing
the entire correspondence can be taken out of the file without
the slightest trouble. The files are fitted with an adjustable block
or " follower " to keep the contents in position, and in the cabinets
supplied by one firm the front of the file drawer is hinged at the
bottom so as to fall slightly outwards at the top while the papers
are being examined, and as the follower at the back of the letters
at the same time recedes in the reverse direction (making a V-shaped
space between them) the removal of a folder or the insertion of new
matter is rendered extremely easy. The guide cards and block
are kept in position by steel rods, and slides beneath the drawers
support the files when they are drawn out. The Globe Wernicke
Company supply an ordinary flat (alphabetical) file with a " sus­pending
device " which allov/s the drawer, on being drawn out, to
drop into a vertical position for greater ease in reference. The
principle of this firm's well-known " Elastic " bookcases has been
- ^y^W^^ÏÏ^
58 OFFICE ORGANIZATION AND MANAGEMENT
applied also to their filing and indexing cabinets, allowing the
necessary accommodation to be built up as required without looking
ugly in the process.
Different methods of transferring the contents from vertical
cabinets when full may be followed. Periodical transfers of the
entire contents can be made, or crowded files may be relieved from
time to time by the transfer of single folders or of unimportant and
out-of-date matter. While transfers at regular periods are not
without advantage (as, for instance, keeping all the correspondence
for, say, a year in one set of transfer cases), " piecemeal " transfers
can be made at odd times without interfering with other work—an
important consideration; while the plan of removing dead matter
has the additional advantage of leaving in the cabinet all the
correspondence that is likely to be wanted.
If there is one thing in connection with the numerical system
which may be regarded as a drawback, it is the fact that it requires
a separate index to make it workable. First of all, there is the
writing and filing of the index card (for which purpose, however,
an " Addressograph " may be used), and then, if it is desired to
refer to the correspondence of a particular customer, that customer's
number must (unless it happens to have been memorized) be
ascertained from the card index before the reference can be made.
It may, however, be said on the other hand that it does not follow
that the index will be instituted for the sole purpose of recording
the correspondent's number. As has been already shown, the card
index can be made the means of recording any kind of information
respecting a firm or subject, which information may be worth
considerably more than the labour spent in compiling i t ; and the
necessary reference to the index as a preliminary to finding the
correspondence should be but a matter of seconds. There is also
this advantage of a positive character, that correspondence with
new business connections is placed behind matter already in the
file ; in other words, it comes in where there is most room for it.
According to taste or requirements, various modifications or
combinations of the many filing systems in vogue can be made
to an almost unlimited extent. It is almost unnecessary to say
that, whatever system is adopted, there should be some provision
for quickly tracing the reply to any letter when a copy is not
attached.
CORRESPONDENCE 59
The card index should be turned to further use by the corre­spondence
staff. An inquiry has been received from a new corre-spondefit
for a catalogue of the firm's specialities, and the catalogue
has been duly sent. An entry of the name and address of the
inquirer and the nature of the inquiry is then made upon two cards,
one being inserted in a card drawer referred to daily. The cards in
this drawer are arranged between date guides and by inserting the
new card behind a certain specified date, the inquiry will be auto­matically
brought under consideration again and a follow-up
letter sent, the card being then inserted behind -a later date. The
second card is sent to the Travellers' Department, where it is filed
in the drawer of a particular traveller, if in a town round, done
regularly, or behind a guide card of its own town, if some distance
away. By these means, the traveller when going over the particular
ground can take out the cards within the area and follow up the
inquiries personally. It is by such methods that the modern
business Manager will lose no effort to turn every inquirer into a
customer, and the elasticity and adaptability of the c'ard system
cannot be over-estimated.
CHAPTER VI
Estimates, Tenders, Contracts, Orders, showing their connection with each
other and with the Financial Books. Also discussing points in connection
with Estimates, Standard Calculations, etc.
COMPARATIVELY few except those who have been engaged in some
of the higher and more confidential office positions have anything
but a vague idea of the manner in which estimates and tenders,
particularly those of an important financial nature, are prepared.
In firms where these documents are properly drawn up, after
detailed consideration of the cost of production, the work involved
in dealing with this matter is both considerable and intricate.
Competition has quite killed the basing of estimates upon " general
experience," and has emphasized—in some cases somewhat unduly
—the importance of substituting actual facts for mere imaginary
figures and flights of the imagination.
There are four main items upon which estimates are based—
(a) Material 1
(&) Labour, and - known as Prime Cost.
(c) Direct chargeable expenses J
(d) Indirect establishment and 1 , _
, . . , , . , } known as Oncost,
administration charges J
Although it is a simple matter to calculate the cost of so much raw
material, or such and such parts bought complete, at certain prices,
there is much consideration and experience required to settle the
quantity of material necessary, the probability of a rise or fall in
the market price of certain commodities, if the work will occupy a
long period to execute, and the choice of a particular grade or
quality of material which can be relied upon to give a satisfactory
efficiency and life. Experience also is necessary to the reasonable
and accurate computation of the labour cost of production of any
given contract operation, and there are important matters, such
as freight, etc., to be considered.
To deal satisfactorily with an estimate implies dealing with it
systematically, and here comes in a most important test of the
manner in which the organization of the undertaking has been
60
ESTIMATES, TENDERS, CONTRACTS 61
carried out. If the business is a new one, the Manager must
necessarily rely for his earlier estimates upon his own knowledge,
and upon that of his principal assistants, as to the materials which
will be required, the cost of labour involved, etc.; but, if the
business has been established for some time, the estimating
information should be of a most exact and accurate nature.
It should be the practice for the Estimating Clerk to deal
with the estimating not merely for contract work to be performed
for outside customers, but also for the production in the Works
for stock purposes of all articles that may be manufactured by the
firm. This gives him a good all-round knowledge of his work, and
enables him to prepare expeditiously any information the Manager
may require. He should have estimating information in tabulated
form, so far as the cost of production in the firm's own Works is
concerned, and should be in touch with the Orders Clerk's work,
so as to be familiar with the sources of all classes of supplies likely
to be required for contracts. Where the business is one for the
supply of articles in which there are a number of small parts, most
of which are made in the Works, the Estimating Clerk should have
the cost of each of these; and, if (as in most cases) these vary
according to dimension, it will be found most useful to provide a
table or desk, the top of which is covered with a thick piece of
glass. Under this can be kept the tabulated cost of the various
sizes of parts, the standardized calculations used in the particular
business, and any other data of constant service, in clean condition,
and in a position of the greatest accessibility for consultation or
copying purposes.
There is a good deal of difference between the methods employed
in the preparation of estimates. It is well in the first instance for
the Chief Draughtsman to prepare a dissection of the various portions
of the work required, with a detailed statement of the materials
to be purchased outside, if any. It is customary then for the Works
Manager and the Estimating Clerk, separately, to price out each
operation or item of manufacture, and then the Manager goes into
the whole matter, in some cases even preparing his own estimate
separately from the others. It is of distinct importance that the
draft estimate should be prepared separately by several persons,
and each material difference discussed, as in this manner only is
due precaution taken against any serious omission. In large
62 OFFICE ORGANIZATION AND MANAGEMENT
contracts, particularly with Public Bodies, very great care must be
taken in the examination of the general conditions of the specifica­tion,
which will be found to include full particulars as to the penalties
for non-completion to time, the tests of efficiency which will be
required, the terms of payment, labour conditions to be observed,
etc. The terms of payment are important, because, although the-firm
tendering incurs its expenses (at all events in connection with
labour) at once, it will be found generally that payment is made
at a rate of only between 75 to 90 % of the total contract value
(varying according to the natu