Omaha daily bee. (Omaha [Neb.]) 187?-1922, 1919-08-01
Modern Industrial
MANAGEMENT
From the PHILADELPHIA Ledger.

ne Nauondi ASSOCIATION OF SoTporaUOr
Schools, which is studying the problem of a
more equitable distribution of created wealth
and attempting through scientific employment
and training of industrial workers. to eliminate
wastes due to industrial strife, advises that a
recent inquiry among several hundred corpora
tons reveals that there are three plans that
are being used to give employees more voice in
management, especially as relates to working
conditions, hours and wages. The results OF
the inquiry indicate that considerable ma or-
ity OF the larger industrial institutions have
either inaugurated some one of the three plans
or are studying the various plans and gathering
data on results so far obtained, with view to
determining which of the plans they will in
augurate.
The plans are known as the works commit
tee" plan, the industrial council plan and the
house and senate plan. The purpose of the
three plans are virtually the same, but the
known, none of these plans involves direct rep
resentation by workers on boards Of directors.
However, it is anticipated, if it is found that
employees assume the esponsibility-which
logically they must assume if they are to have
a continuing voice in managem ultimately
employees will be permitted to name a minority
representation upon such boards. Such action
probably will occur only in industrial nstitu-
tons where a considerable number of employees
are stockholders, and the representation which
they obtain upon boards of directors will be
dependent upon the amount of stock repre-
sented by the employees who have a right to
vote for such representation
In one of the largest industrial institutions,
where the industrial council plan has been
made effective, the immediate result was re-
quest on the part of the employees representa-
tives in the industrial council for an increase
in wages and shorter working hours. This was
followed by an avalanche Of requests from in
divdual employees for increases in wages. When
it was pointed out to the representatives of the
employees by the members of the industrial
council representing the stockholders and man
agement that such action would necessarily in
volve an increase in the cost of the product of
the company and that this increase would
bring the selling price of the company's product
to figures considerable higher than the selling
price of their competitors, the request for
shorter hours and increased wages, temporarily
at least, was withdrawn.
In other words, the immediate results of
giving voice to employees through delegated
representatives were wholly selfish and not
based upon investigation as to conditions, and
were made without any assumption of RESPONSE
bty whatsoever.
In at least three large industrial institutions
where one of three plans has been introduced,
strikes have followed within a period of one
month. In other companies the plans have
worked we'll although the period of trial is of
too short duration to admit of any conclusion
as to what will be the final results, and as to
what definite attitude the representatives of
employees will ultimately take.
The assumption may be safely made, how
ever, that employees of industrial corporations
will continue to demand voice in those prob
lens of management which affect wages, work
ing conditions and hours of labor. Whether
not the representatives Of the workers in an in
dustrial councils will assume a fair portion of
responsibility remains to be determined So
long as shorter hours and higher wages can be
obtained through strikes, it is probable that the
cooperative plans will make slow prog
ress, but when the time arrives it inevta-
bly, must arrive that strikes are no longer sue
cessful, and when the public will demand to be
heard in the settlement of wage disputes it is
believed that more constructive progress can
be made in the working out of cooperative
management, and that the workers will then
assume more definite responsibility for pro-
duction.
Efforts to introduce better training systems
and more scientific employment methods are
meeting with opposition and progressing
steadily. Also efforts to encourage thrift, in
GLIDING home owning, group insurance and sick
and death benefit features, are meeting with
couragement.
The survey also disclosed that plans to in
sure stock ownership by employees in the COM
pany by which they are employed are rapidly
becoming installed, the number of companies
now installing this feature being far in excess
of the number that were working on similar
plans prior to the reconstruction period. Stock
ownership plans almost invariably include pro-
vision for service annuities or retirement pen
sions.
The crux of the situation seems to be &C
ceptance of responsibility by the representa-
tves of the workers for greater output COM
mensurate with shorter hours and higher
wages.