THE EMPLOYMENT DEPARTMENT AND EMPLOYEE RELATIONS ONE OP A SERIES OP LECTURES IN A SYSTEMATIC COURSE F.. C. HENDERSCHOTT The New York Edison Company F. E. WEAKLY Employment Manager, Montgomery Ward & Co. HU-346 La Salle Extension University • Chica go - THE EMPLOYMENT DEPARTMENT AND EMPLOYEE RELATIONS F. C. HENDERSCHOTT The New York Edison Company P. E. WEAKLY Employment Manager, Montgomery Ward & Co. La Salle Extension University - Chicagfo - Digitized by the Internet Archive in 2007 with funding from Microsoft Corporation http://www.archive.org/details/employmentdepartOOhendrich THE EMPLOYMENT DEPARTMENT AND EMPLOYEE RELATIONS In a business where there are but a few workers, the owner and manager usually attends to the hiring and discharging of his employees. Since he unconsciously, or perhaps consciously, realizes that this is a very im- portant bit of work, he handles it himself. As the busi- ness grows, this work has to be delegated, at first partly, later almost entirely. The larger the business, the more complete i& the delegation of this work. Nevertheless it is desirable to retain that personal touch with the em- ployee which is possible when the manager himself does the hiring and discharging. How can this personal touch be developed and main- tained? It is an all-absorbing thought, one that is receiving considerable attention in all branches of busiaess. Espe- cially is this true in the large corporations where the delegation of authority on a large scale is absolutely necessary. Here the **men'^ or ** personnel^' problem is gradually reaching a more or less refined and perhaps somewhat scientific state. One of the biggest problems, therefore, confronting industry today- is **men.'' By **men" is meant all workers who make up the organi- zation, from the office boy and the stenographer to the president. Employment and promotional plans should all have for their ultimate aim the proper selection, training, promotion, and advancement of the employee. 1 2 EMPLOYMENT DEPARTMENT One of the first steps in the handling of the per- sonnel problem is the centralization of all activities connected with it under one head. Exclusive of execu- tive control, the original industrial corporations con- tained three major subdivisions of management: (1) production, (2) financing and accounting, (3) marketing. As products were distributed over more extended ter- ritory, the traffic manager, or the department of dis- tribution, was added. In a similar manner, the more progressive industrial corporations have now added another subdivision of management which deals with employee relations and which is in charge of a manager who, for lack of a better name,' may be called * * employ- ment manager.'' The proper definition of the employment manager's work is highly important, for upon an intelligent con- ception and understanding of the personnel work depends the success of the work itself. The following general description of such a department has been adopted by one large Chicago corporation: Employment Department 1. definition The Employment Department is the centralization of all vital and fundamental questions centered around the prob- lem of human relations, involving especially the selection, hiring, training, promoting and discharge of employees. It is the clearing house and court of appeal on all mat- ters concerning the welfare of the personnel of the house. 2. functions 1. Development of a practical and scientific personnel department. 2. Scientific selection and placing of the applicant. 3. Scientific training and development of the employee. 4. Promotion of friendly and intelligent co-operation be- tween the management and the employees. Troubles HENDERSCHOTT and WEAKLY 3 and losses of all kinds should be anticipated and pre- vented — and prevention is impossible without co-op- eration. 3. DUTIES \ 1. The interviewing ^and selection of all applicants for positions. 2. The placing of all advertisements for help wanted. 3. Writing on all references of new employees. 4. Furnishing of information on former employees. 5. Enforcing of entrance physical standards as defined by the company. 6. Maintenance of insurance records. :x 7. Analysis and organization of sources of labor supply. 8. Maintenance of proper analysis of each activity re- garding qualification, wage and time of promotion. ^ 9. Maintenance of history record of each employee. [ , 10. Enforcement of minimum wage regulations. 11. Supervision of plant educational activities. 12. Supervision of lay-offs. 13. Direct jurisdiction over all transfers of help. 14. Final authority over all discharged employees. 15. Discipline, punctuality and attendance. ^ ^ 16. Supervision of all vacations. 17. Close knowledge of the business. 18. Close touch and relation with all advance movements, outside activities and helpful literature dealing with labor problems. 19. Analysis and reduction of help turnover. 20. Periodic reports regarding emplojTuent problems and conditions. 21. Daily reports on requisitions for help. 22. General supervision of employment conditions in the plant. 23. Increase length of service. 24. Making good with the employee — the court of appeal in all cases of complaint and dissatisfaction. 25. A square deal to all. 4 EMPLOYMENT DEPARTMENT 4. THE EMPLOYMENT MANAGER / The intelligent selection of men and women for the many different positions is only one of the tasks of the employ- ment manager. And this is by no means a trivial joD^ it is at least an art if not a science. \The employment manager is the representative of the company in the labor market. He must enforce the policies of the management and see that the standards set are in accord with intelli- gent public opinion and contribute to good citizenship and industrial efficiency. The employment manager must, therefore, be an execu- tive of the highest type. He must be broad-minded, fair and square, sympathetic and human, but not sentimental. He must be a specialist in human nature, an analyst of work requirements and an interpreter of relationships, for he is the connecting link between the management and the em- ployees. ' As an adjuster of right industrial relationships, he is the court of appeal for the disgruntled and wronged employee, whether his injury is imaginary or real./. The power of discharge rests with him, — a power which must be intelligently and discreetly applied^ An employee who has been with us an appreciable length of time is usually an asset and his services should not be carelessly or indif- ferently dispensed with. (Employees must feel that they are not subject to the prejudice or whim of their supervisors, who may not at all times exercise prudent judgment over them. They must be allowed a fair hearing by one who is unpreju- diced and one in whom they will place entire confidence. This plan of modem, wise and intelligent dealing with employees, if followed in spirit as well as by act by all those in positions of authority, will develop a firm loyalty and esprit de corps which will indeed be most enviable. 5. RELATIONS WITH ALL DEPARTMENTS The employment manager of each plant is in control of all personal matters connected with it. He must work to- ward full co-operation with all department managers, who HENDBRSCHOTT and WEAKLY 5 in turn must strive to co-operate with the employment manager in accordance with the policies set forth. The planning for help requirements and the estimates of the number and kind of employees needed must be antici- pated and provided for well in advance, as are the esti- mates for merchandise stocks, new equipment, building repairs, materials, etc. All complaints or dissatisfaction of any kind on the part of the division managers should at once be brought directly to the attention of the employment manager in order that the matter involved may be promptly and sat- isfactorily adjusted. The new employee receives his first and lasting impres- sion of us in the employment department. He must there- fore be started right. Department managers will conse- quently see that the organization makes good and supports the policies as set forth by the company and defined for the new employee in the employment department. Upon the employment manager is heaped the burden of making good with the employee, and all departments must with- out reserve render unselfish support. From this outline it may readily be seen that employ- ment is a fundamental problem of good business man- agement. The points here enumerated are generally re- garded as fundamental by all organizations that have a properly constituted employment department. Details may, of course, differ with industries. The duties listed illustrate what is happening daily in a large employ- ment department. Selection op the Employee The interviewing and selection of applicants for posi- tions is one of the first problems of any properly con- stituted employment depaii:ment; indeed, it may be said that on doing this well hinges the real success of the 6 EMPLOYMENT DEPARTMENT department. It is the starting point in the relations be- tween the corporation and the individual worker. If we would develop an effective organization for the future, we must begin with the employment of the new applicant. This is a mutual proposition. First impres- sions go a long way; hence, the employee must be selected right, started right, and kept right. His con- tentment, remuneration and success are all involved. A simple routine that may be followed is presented: 1. Interview. 2. Fill out application form. 3. Supplementary interview. 4. Examination. a. Physical. b. Mental. 5. Another supplementary interview and check-up of data, especially on rejections. 6. Preparation of records to enter name on pay- roll, follow-up, etc. 7. Preliminary and general instructions. ^ 8. Introduction to Superintendent. 9. Plant instruction. 10. Introduction to job. It will be found that by following a simple routine such as this, much time and confusion will be saved and considerable efficiency gained. There are several methods of selecting appKcants ; the following are representative: 1. Observational. 2. Employment tests. 3. Combination of 1 and 2. The observational plan is the one most commonly used. In the observational method, the interviewer and HENDERSCHOTT an© WEAKLY 7 the applicant merely endeavor to get acquainted with each other. The decision is based purely on questions and answers and first impressions. If a great emer- gency is to be met quickly, this is the plan invariably followed. An attempt has been made to reduce the observational method to a science wherein the analysis takes into consideration the contour of the face, the texture of the skin, the shape of the forehead, etc. Suc- cessful selections have been made by this so-called science, but as yet it has not proved wholly practical and safe. Phrenological observations and measurements likewise have some advocates, but their general utility is not established. Of course the whims of department superintendents should be carefully considered in mak- ing selections. If a superintendent has a natural dis- like for a red-headed stenographer, it is sheer homicide to send him one. But that is not science, that is com- mon sense. Some organizations follow purely the test plan by giv- ing the applicant some sort of written examination, psychological and otherwise. There is danger in rely- ing solely on the results of such a test. In the first place, the applicant may be nervous and not do himself justice. In the next place, the examination may not be at all adapted to the task at hand unless devised by a trained mind. On the other hand, there may be an error in the qualifications sought. Of course, if the job is one which concerns purely the addition of columns of figures and nothing else, then a test in addition might serve as some sort of index of the applicant's ability to fill it. It is therefore granted that in many cases such a test may be acceptable. The one big thing, however, that^it does not do is to determine whether the personality of the individual will harmonize with that of the concern. It does not determine character. 8 EMPLOYMENT DEPARTMENT That can only be determined by an interview. Hence, it is very unwise, especially for private concerns, to employ an applicant definitely without first having that very necessary interview. Comparatively few business concerns follow the test plan only. The government, however, uses it almost exclusively for general clerical positions. The best plan of all is a combination plan which uses both the interview and observational method combined with appropriate mental tests. It is this combination scheme which is coming to be used by most large organi- zations, as science develops the best tests for the purposes. In a great many positions, however, science need have but very little to say. For instance, if you desire to employ a new stenographer, an interview will decide whether or not the young lady is a desirable employee from a personal and social standpoint. Later dictation in the class of work that she will be expected to perform, will determine her ability. Large organi- zations are perfecting plans along these lines. Regardless of what particular plan or plans of selec- tion may be adopted, many employment managers find it better actually not to employ on the date of appli- cation, but to have the applicant return later. Gener- ally such a plan tends to reduce floaters and undesir- ables. Emergency demands, however, may make it necessary to accept the applicant immediately, and not to risk losing him to a competitor. TEMPERAMENTAL MANIFESTATIONS OF EMPLOYEES The employment manager should endeavor to discover the temperamental qualities of an employee. He may be better qualified to work with things than with per- sons; or, in other words, his natural temperament may be either technical or commercial. HENDERSCHOTT and WEAKLY 9 In a large public utility company, there are three major branches of service, one devoted to the genera- tion of current, another to accounting, and the third to marketing. In the generating department, a machine operating normally produces a given amount of current. This condition cannot be changed by any effort on the part of the employee. The current, if sold at a set price, will produce a certain revenue and no more or less. The recording of this fact is the only problem of the accountant. Employees working in either of these divisions are concerned in their daily labors with things rather than people. The man who attends a machine must possess a certain technical knowledge and, possessing that and having health and willingness to serve, his problems are simple and do not vary to any considerable extent. The same is true of the ac- countant. He works with figures and facts, and, hav- ing reached a trial balance, he again retraces the activi- ties of the previous month to determine a trial balance with the close of the month. He also comes in contact with things rather than people. But in the marketing division of the company ^s work, the employee meets people. He must have at least a fair understanding of human nature and a working knowledge of psychology. There is no formula or method which he can pursue that will insure the mar- keting of any given amount of his company's product in the territory assigned him. He must possess what is commonly termed a ** commercial temperament." He must like to meet people, to measure his own activities, theories, and experience against the development of the prospective customer; or, if the case be one of adjust- ment of complaint, he must enjoy pitting his own against the native abilities, experience and wishes of the cus- 10 EMPLOYMENT DEPARTMENT tomer. Obviously the employment tests for these classes of workers must vary. THE APPLICATION BLANK All large organizations require some form of written application not only as a guide in making selections, but also as a matter of record that may later aid in the promotion of the employee. Figure 1 shows a form of application blank. The question of the application blank or form deserves consideration. First of all, the written application is necessary, altho many applicants for positions do not think so. Sometimes an applicant may refuse to fill out the blank. This might indicate that he did not deserve the position. On the other hand, some application forms are ridiculous enough almost to warrant refusal. Their numerous questions are unnecessary or irrelevant. A simple form of application blank is much better. The following information is deemed essential. Name and address. Date of application. Date and place of birth. ' Date of immigration, if foreign bom. N Parentage. 4^' Languages spoken. ^ Education. Married or single. Number in family. Wage contribution to family support Record of previous employment. This is a simple outline that covers the essential points. /' HBNDERSCHOTT and WEAKLY 11 Application for Employment in the mrvice of Montgomery Ward & Co. iah- ject to all the Urate end conditions hereof. It b our dtaire onlu to engage emplaytat who can be depended upoft We tncesUgale carefally toery $talemeni made in an applkaikM. Any Intentional mis-statements Will mean dismisaaL WAGE IS PER DAY. PAYABLE WEEKLY. Dcte. BSmj^y \%r^ UmrMtwr Or r.-m* n4 I, tt em (■((•r ' mitimMUnr Vein mkatt c ■TM mm »< f*M wtHit SS^^I^, ...^f s:?r^-., UHr^^f t »(twfl' 5Lr- rKHmmmf IJM M Urn wh«t ■Win , lumi aMwr llM*9tr «« Ptt». >,JSrkro.m.Mf flttmpUn^ir iwcm; IYmMm Oftfw 1 •«»«.«•. r VkrMrM I'^r.Sl.r sr^"' «n«dfrs*ta« -»to»« *>*«»• •»«'«' 1 H'hi! >« ni< M*«^ i*irkj(»)9ii ««'»«< r irwtMsf M..,(m'> |»>HlrR> =-£., . ■se,, S=retl?f 1 H so. OM SMN Fig. 1. — ^Application Blank 12 EMPLOYMENT DEPARTMENT Much can be learned about the prospective employee from the manner in which the application blank is filled in. A form carelessly written, questions inaccurately answered, are causes for disqualifications. Poor hand- writing would prevent the employment of the applicant in an office position perhaps, but it would not bar plac- ing him as a mechanic, trucker, etc. As a matter of fact, the application blank is, in many ways, a fairly representative test. In ordinary cases it can be con- sidered a safe guide. THE PHYSICAL EXAMINATION The value of the physical examination cannot be over- estimated. Nothing contributes more to insuring a wholesome physical atmosphere than a healthy body of workers. It is a social crime to expose the workers to contagious disease. Protection from contagion can only be secured by a thoro physical exanaination, and this should be given before the employee starts to work. Experience has proved the value of these physical tests, and they are now considered an indispensable part of any well-organized employment work. Figure 2 shows a male physical examination blank and Figure 3, a female physical examination blank, used by a large concern. Here is a little testimony from a superintendent in an Ohio concern: Our house physician, nurse and hospital perform such valu- able service to our business in the way of keeping our people on the firing line, in the way of economy to our employees and ourselves, that to dispense with it would be an unwise move. Stores not having such facilities do not realize that the invest- ment would pay large annual health dividends. HENDERSCHOTT and WEAKLY 13 MALE APPLICANT Serial No. Name Date Age Division. . Married or single? Is father living? If not, cause of death Is mother living? If not, cause of death. How many brothers and sisters living?. How many brothers and sisters dead?. . Cause of death Have you ever had any serious illness?. How much time have you lost, in the past few years, on account of illness? Present state of health Vaccination Specific diseases General appearance Ruptured Goitre Chest findings Urinary findings Pulse Temperature Respiration Approved Rejected M. D. Pig. 2. — Physical Examination Blank — ^Male 14 EMPLOYMENT DEPARTMENT FEMALE APPLICANT Week Serial No. , Name Date Age Division . Married -or. single? , Is father liring? If not, cause of death. Is mother Hying? If not, cause of death. How many brothers and sisters living? ?. How many brothers and sisters dead? Cause of death Have you ever had any serious illness?. How much time have you lost, in the past few years, on account of illness? Present state of health Vaccination Specific Diseases General appearance Female troubles Goitre Chest findings Urinary findings Pulse Temperature Respiration Approved Rejected M.D. Fig. 3. — Physical Examination Blank — Female HENDERSCHOTT and WEAKLY 15 The Laboe Supply Closely associated with the selection of employees is the question of the sources of labor supply. One large Chicago concern has an analysis of the sources of labor supply for every position that must be filled from out- side the organization. When a vacancy occurs in one of these positions, it is only necessary to tap the source of supply, and applicants are quickly available. On the other hand, in the same company, a complete analysis is available to show how employees may be supplied from the inside. Other things being equal, a person from the ranks should be considered for a better posi- tion whenever possible in preference to one from the outside. Promotion, growth and advancement are the very life of a business institution. In a general way the principal sources of supply are : 1. Present employees. 2. Their friends. 3. Previous employees. 4. Vohmtary applications. 5. Advertising. a. Open. b. Blind. 6. Schools. a. Public. b. Private. c. Universities, colleges. d. Free business schools giving free training on their machines. 7. Employment agencies. a. Public. b. Private. 8. Competitors. 16 EMPLOYMENT DEPARTMENT The immediate and best source of supply for any organization is its own body of employees. If there is an employee in the plant capable of filling the better job, he should by all means have his chance regardless of how well he may be performing a particular task. On the other hand, care must be taken not to put sudb an employee in over his head. One large company uses a special follow-up file on employees of more than ordi- nary ability. They are classified according to what they can do, and a periodical check-up shows their progress. This file is first consulted when a position higher up is vacant. This plan helped to increase trans- fers and promotions 150 per cent over a previous period of time. Such plans involve principles of promotion and transfer that will be considered shortly. The friends of present employees frequently consti- tute a splendid source of supply. However, the danger here is the temptation this offers executives to work in their friends or relatives. A rigid rule should be fol- lowed in this respect: relatives should never work in the same department. Usually a relative of any execu- tive or official has an uphill row to hoe. Some time ago a young man who was thus placed remarked: **I regret very much that I did not come in under an assumed name. ' ' The social activities of a body of employees such as dances, parties, baseball, basket ball, picnics, bowling and billiard clubs, etc., are an effective method of draw- ing their friends. As a general thing, where employees play and associate with each other on a social equality, they naturally attract a higher grade of employees and a much better class of people. Hence, the question of the character of one^s employees is of vital consideration. Previous employees should be eligible for re-employ- ment, if they left in good standing. One eastern organ- HENDERSCHOTT and WEAKLY 17 ization lias sticli a waiting list. Workers are often attracted by higher wages and leave, believing they are bettering themselves. Later they find working condi- tions or the class of work unsatisfactory, or discover transportation difficulties. If their record is good, they usually make much better employees the second time employed. The unemployed worker is always strongly attracted to the plant with a reputation for good wages, working conditions, etc. The daily applicants who come volun- tarily form one very interesting source of supply. Many applications are also received by mail. Careful analysis for various seasons of the year will enable one to deter- mine, on the strength of averages, just what classes of employees and about how many may be thus obtained. In ordinary- times many positions are thus filled quite satisfactorily. From such a source, ** prospect'* files may be devel- oped in case there are no positions vacant at the time of the application. However, ^* prospect" files, to be effective, must be kept current. This varies, however, with the class of applications in file. A ** prospect'' file for laborers is of little use. For office boys, stenog- raphers, etc., it is indispensable. Advertising is a very common means of securing applicants, but is nsually expensive. Advertising should not be resorted to until all other means fail. One tele- phone call has occasionally accomplished what a hundred-dollar advertisement failed to do. Experience must be the guide. Help wanted advertisements are of two kinds, open and blind. An open advertisement bears the adver- tiser's name. The blind advertisement carries a key number. Each has its field. Much depends upon what is sought. For immediate and quick results the open 18 EMPLOYMENT DEPARTMENT advertisement is necessary, as the blind advertisement takes very mnch longer to produce. Experience must show which is better in this or that case. Ordinarily this can be determined only after considerable experi- menting. As industries differ, so do localities. What may be used successfully by one, may fail if used by another. The right kind of advertisement properly worded, placed and timed, will produce any kind or class of help desired, provided there is a supply avail- able. It is largely a question of entering the labor market and openly stating your bid. The law of supply and demand will work in such cases as well as in merchandising. A small advertisement of a few lines carefully out- lining what is wanted is all that is necessary if only a very few people are needed. On the other hand, the size of a help wanted advertisement is not always indica- tive of the number of people desired. Frequently, in seeking to fill a position of a very special sort where only one person is all that is sought, large space is used, going into great detail as to the class of man desired and often outlining what his duties will be. In short, it may be stated as a principle that the expense to which one may go in securing help depends upon the need, the number required and the size of the job. The successful employment manager of a large institution is invariably a keen student of the help wanted columns of the local papers. It is not sufficient to know one's own needs; it is wise to know also your competitors* needs. All kinds of educational institutions are considered excellent sources of supply, especially for beginners. In this group come the grammar schools and high schools, both public and private. Then there are the univer- sities and colleges, including the technical and commer- cial schools. Representatives from many corporations HENDERSCHOTT and WEAKLY 19 visit regularly the best universities near graduation time, and recruit for their organizations talent with special training. The same plan may be followed with good results in connection with local schools and col- leges. One employment manager in Chicago never re- fuses an invitation to talk to any student body. In fact, he is always glad to avail himself of the opportunity to present his organization in a true light to such pros- pective employees. A number of business concerns that manufacture spe- cialties, such as typewriters, adding machines, etc., have installed schools in connection with their regular busi- ness. The purpose of such schools is, of course, obvious — to provide operators for their machines. Especially in a large city these schools are invaluable and employ- ment managers will find it worth while to cultivate this source of supply carefully. The business colleges need little explanation as they are fairly well understood by most everyone. Their main business is to develop boys and girls for business positions. Usually the demand on such institutions exceeds the supply. It is a common fault with most business colleges to graduate the student before he is **ripe.'' Closer co-operation between these schools and business organizations will improve the quality of appli- cants from these institutions. The public and private employment agencies should be given careful attention by the employment manager. Their universal fault is merely to ** refer to you an applicant for a position,'' without first determining the applicant's fitness for the position to be filled. In the past, these agencies have been more interested in ** sta- tistics." At present, they are showing an increasing desire to understand the employers' problems. This growing tendency to co-operate with employers presages 20 EMPLOYMENT DEPARTMENT a much wider field of usefulness for employment agencies. Private employment agencies always charge a fee, usually to the applicant, rarely to the employer. Large organizations with completely equipped employment de- partments are reluctant to patronize them because of the fee charged. One house in the middle west always pays the fee when engaging an employee from a private agency. On the whole it is considered more advisable to secure help thru the usual channels than to patronize an agency which charges the applicant a fee. The question of hiring a competitor's employee is one worthy of the utmost consideration. In large business there is a tacit '^courtesy agreement" with respect to this. It is not considered good business ethics to delib- erately bid another man's help away from him. Some companies observe strictly the spirit of this unwritten law and refuse to employ anyone who is already em- ployed. To get employment with such a company one must be unemployed. This, however, does not seem quite fair to the individual, for everyone is entitled to his place in the world. If he is not getting ahead in one place, he should try another. It is only essential that the transaction be fair and above board in everj^ way J then no misunderstanding can creep in. Such cases need courtesy and common sense, usually nothing more. Pkomotions and Traksfers In interviewing an applicant, an employer asks, **Why did you leave your last job?'' His answer is usually given in two words, **No advancement." If you could know his day dreams and could find the idea back of HENDERSCHOTT and WEAKLY 21 them, you would discover three causes: that he has imagined the comforts and pleasures he could buy with a slightly greater income, that he has pictured for him- self a bosses job, or that he has coveted the position of a trusted employee. In other words, he has an inco- herent desire for personal comfort, the bearing of responsibility and the exercise of authority. These three elemental desires are so fundamental in each individual's character that his success in life depends upon their gratification. To find a satisfactory means of answering these long- ings of the individual has been one of the principal sei*vices rendered by the personnel committee of large organizations. For example, the personnel committee of a Chicago corporation has distributed material profits, promoted sociability, paid liberal salaries, and conducted classes in which some of the more desirable activities of the house were taught. But this was not thorogoing enough. Promotion for several thousand employees cannot be managed successfully, based on the principle of generosity alone. It must be scientifically planned. The first step in the scientific study of promotion was directed toward the relationship of each activity to the total profits of the business. This gave a rough scale of advancement based on operating cost. But this is only one factor in the value of a task. Another factor which was studied was knowledge of house system. This can be gained only by experience. Analyses of the various activities were made and sum- maries obtained from which could be determined the relation of one activity to another with regard to experi- ence and knowledge of house system. This gave another rough scale for advancement. 22 EMPLOYMENT DEPARTMENT The following table shows a few activities for women, grouped on the basis of experience. Promotion goes from left to ri<]rht. Entry checker Mail reader Letter checker or correspondent Draft clerk Biller or typist Supervisor or ledger clerk Order filler Merchandise checker Supervisor or special clerk Addressing machine Typist Dictaphone operator or stenographer Sorter Pricer Special clerk or stock record keeper Errands Paster Addressing machine operator The first column gives work which requires no experi- ence or special training. New employees for such work are hired, usually, from outside the organization. The second column gives a more advanced class of work which is closely related to that in the first column. The third column names the high-class work which is the goal toward which the others lead. Another subject of study, probably more important than either of those mentioned above, is the general ability of the individual. Training and experience alone cannot decide promotion. There is a natural quickness of thought and good common sense necessary as a foun- dation before training or experience can produce supe- rior ability. We will call this ** general intelligence'' to distinguish it from special ability which has resulted HENDERSCHOTT and WEAKLY 23 from training or peculiar natural talents which are strictly individual things. Doubtless, every large firm has capable executives, shrewd business men, progres- sive and of great value to the firm, who had to leave school at an early age. They are superior men now and in the old days were superior boys, because they were generously endowed by nature with general intelligence or native ability. On the other hand, large sums of money and long periods of time have been spent in try- ing to educate and train men for big w^ork who have never been able to succeed. Education is not the crux of the matter in either case but the native ability of each man has been the deciding factor. For further illustration, let us take three girls, A, B and C, hired on the same day as draft clerks. Six weeks later found A and B still working in the same place. C had been promoted to biller. Four months later, C had been made a ledger clerk, B had become a biller and A was stDl filling in drafts. These girls had taken tests of general and specific ability when they w^ere hired w^hich showed in thirty minutes what was proved out in five and a half months. The results of their tests were as follows: Dexterity i Arithmetic Gen'l Intelligence A 80 68 65 B 87 75 78 C 94 90 95 The differences in their general intelligence were evi- dent from the short test, and the same differences con- 24 EMPLOYMENT DEPARTMENT tinued to show in their work. Thus we know that there is a constant element which can be used as a unit in a scale; so our third scale of promotion has been made, based on the general intelligence required for the suc- cessful performance of a task. Progressive Sc.u.e of Promotion Based on General Intelligence Requirements Grades Correspondent. 90 Letter checker. Secretary. 85 Record clerk. Reader. Stenographer. 80 Dictaphone operator. BiUer. Pricer. Rack work. Division checker. 75 Draft clerk. Classifiers. Indexers. Order filler. 70 Typist. Entry checker. 65 Addressers. Paster. 60 Errands. Sorter. Tubes. 50 Bagger. HENDERSCHOTT and WEAKLY 25 If a representative number of workers from each of the activities mentioned in the scale above should take the same general intelligence test, the average score for the workers in each activity would approximate the per- centage on the scale where the activity is placed. We assume that any person whose score is less than 50 is too stupid to be of use in this plant. Sixty per cent rep- resents the worker who can do only simple tasks and 90 per cent represents the exceptional individual, very quick to grasp a new idea and able to use good judg- ment. It is plain that there is a great difference be- tween the upper and the lower part of the scale but there are many activities which may be grouped on the same level thruout the scale. Thus we have three separate methods of determining the relative value of the activities of our plant. If we attempted to combine the three into one general plan with the most important executive position at the top and the simplest task at the bottom, we would have a very complex scale. In place of having one continuous line of promotion, with each job a little more difficult than the one before, there would be several parallel lines with many jobs about equal in difficulty but differ- ing in requirements of special ability. A set of activi- ties requiring quickness of fingers, such as typing, filing, stencil cutting, etc., would form one line. Pricing, bill- ing and record work would have to do with arithmetic. Stenography, dictaphone operating, letter checking and correspondence would have to do with language ability, and the power to govern others might predominate thruout a seriee of supervising activities. One series would be equal to another in the general plan. But the problem is to place the individual in the series which can best use his special talent. 26 EMPLOYMENT DEPARTMENT Employee Eecokds as a Basis for Promotion One large industrial corporation in the East feels that it is helping to solve this question of promotion and transfer by keeping a personal record of each employee. The form used for this record is shown in Figure 4. The employee's personal record should be compiled and kept by the employment department or the bureau of education, where such a bureau exists in an indus- trial institution. It is also obvious that favoritism will completely nullify the value of the record, and that the temperamental peculiarities of individual managers have to be reckoned with. However, the corporation which has had this system in force for a period of about six years affirms that the record, when conscientiously com- piled, will reflect a fair picture of the individual em- ployee's characteristics and general worth. Such a sys- tem, however, will not record latent characteristics of the individual. It pictures more successfully the indi- vidual of forceful character and of more than ordinary determination. In this corporation the record was kept by an assistant to the manager of the bureau of educa- tion. This manager also had charge of employment for his division of the company — the division which in- cluded sales and the handling of all matters pertaining to the company's relations with the public. The record should show the employee 's age, education, time in the service of the company, history of such service, history of work done before entering the employ of the company, condition of the employee's health. It should also record his accomplishments in educational courses, tardiness, absences and the causes for each if they can be ascertained. Of greater value would be a statement of such personal characteristics as may be determined thru observation; for example, the attitude HENDERSCHOTT and WEAKLY 27 EMPLOYEE'S PERSONAL RECORD Date Name Bureau Position. . Home address Date of birth Education Entered^ employ of company Position. History In company Positions held before coming to the company Health Personal Appearance Characteristics Report of Manager Principal work since coming to bureau Adapted to work Sufficiently trained Capable of filling a better position Special aptitude or possibilities Commercial Technical , Attitude toward duties Prompt Accurate Needs supervision , Team work Remarks of manager Fig. 4. — Employee's Personal Record 28 EMPLOYMENT DEPARTMENT of the individual toward his duties; whether he is prompt, accurate ; the amount of supervision he requires ; whether he works well with other employees; whether he is ambitious, willing, adaptable; whether he possesses executive ability. It should also show whether or not the employee is adapted to his work and sufficiently trained to render acceptable service. Often the record may indicate the fitness of the employee for a better position. To a large extent it registers his native abilities. Annual Survey of Employees In this same company, managers are not permitted to discharge unsatisfactory employees, but may return such employees to what is known as the * draining de- partment,'* where the head of that department ascer- tains the cause for the unsatisfactory service. Here further effort is made to determine the inherent char- acteristics of the individual, and to place the employee in a position where he can best use his natural abili- ties. If the employee has the right attitude toward his work and is willing and earnestly striving to succeed, there is no difficulty in ultimately finding satisfactory employment and retaining the services of the employee. But if the matter be one of unwillingness or wrong attitude, and the employee does not yield to kindly and carefully considered advice on the part of the head of the training bureau, then his resignation is requested. Once each year a survey of the department is made when points are credited as follows : On personal record a maximum of twenty-five points ; on school record a maximum of fifteen points; on at- tendance record a maximum of twenty-five points; on HENDERSCHOTT and WEAKLY 29 the manager's opinion of an employee's value to the company a maximum of thirty-five points. The statement of the manager embraces three factors : the employee's value in the position he is filling, an estimate of his latent abilities, and an estimate of his future value to the company. An excellent personal record would insure the maximum of twenty-five points, a good record twenty points, a fair record ten points, and a poor record no credit. Similar credit is given for school work done. In the matter of attendance, it is possible for an employee not only to receive no credits, but to have deductions made to the extent of twenty-five points from credits given in the other three classifications. Credits are also given for the manager's statement. The employee falling below a total rating of sixty points credit is considered undesirable. But before his resignation is asked for, his manager is given the privi- lege of taking his name from the undesirable list. The manager then assumes responsibility for the employee and the correcting of his faults. If, however, the name of the employee should again appear on the list of unde- sirables the following year, his resignation is then asked for and the manager called to account. The Principle of Transfer Making promotions within the organization involves a big question known as the ** principle of transfer." Employees are human beings, hence, we as managers must be consistent, for a manager who is not is very soon discovered by his workers. As a consequence, it is frequently not only advisable, but absolutely neces- sary, for a superintendent to sacrifice a little here or there in order that the individual may be allowed to 30 EMPLOYMENT DEPARTMENT grow and develop. Eegarding this question of transfer and promotion, managers must be exceedingly liberal, fair and unselfish, for upon it depends the personality and spirit of the whole organization. To be sure, the employment manager should on the other hand be con- siderate of the needs of the department concerned. He should not insist upon one superintendent yielding an employee to another unless the employee will better himself one way or another. The following figures represent two forms that are now being used by one concern to aid in handling this question of transfer and promotion. Figure 5 is used by superintendents when they desire to reward volun- DIVISION SALARY INCREASE Note: Please fill in each BLA]?fK No Div Date Name Date originally employed . . . Starting salary . . . Present salary . , . Date of reinstatement. . .Date of last advance. . .Class of work. . . Attendance Punctuality Industry Disposition and willingness What is his or her most valuable quality? Output record (above or below standard) Recommended for salary increase of per week. It is always our policy to promote from the ranks. The happy and satisfied worker is an asset to the company. The interests of the company are best served when the Individual is allowed to grow and develop. The returns will be mutual. If this em- ployee has qualifications to assume greater responsibility and you have not the opportunity in your own department for him, please suggest what activity or work you think he is best quali- fied to do and for which you recommend him Approved Dept. Manager Employment Manager Fig. 5. — Division Salary Increase HENDERSCHOTT and WEAKLY 31 REQUEST FOR SALARY INCREASE FROM EMPLOYMENT DEPARTMENT Note: Please fill in each blaxk No Div Date Name Date originally employed. . .Starting salary. . .Present salary. . . . Date of reinstatement. . .Date of last advance. . .Class of work. . . Attendance Punctuality Industry Disposition and willingness What is his or her most valuable quality? Output record (above or below standard) Recommended for salary increase of per week. If not, why? It is always our policy to promote from the ranks. The happy and satisfied worker is an asset to the company. The Interests of the company are best served when the individual is allowed to grow and develop. The returns will be mutual. If this em- ployee has qualifications to assume greater responsibility and you have not the opportunity in your own department for him, please suggest what activity or work you think he is best qualified to do and for which you recommend him Approved Dept. Manager Employment Manager Fig. 6. — Request for Increase from Employment Department tarily an employee for good work. Figure 6 is used by the employment department only to aid in maintaining the minimum wages that have been established in the plant. Certain promises are made by the employment head who interviews the new employee, based upon cer- tain provisions. All new people are thus followed up at regular periods of two, six, nine and twelve months. If the employee has not earned the advance, he must be given another chance, transferred or discharged, as it is desired to have every employee advancing. 32 EMPLOYMENT DEPARTMENT The question of transfer naturally raises the matter of discharge. The two go together. They constitute two of the most important weapons or tools of the employment manager. The best practice is a unit in favor of having the power of discharge resting in the employment head. This makes it possible to interview all employees who may leave, and frequently it is necessary to reverse the decision of a department super- intendent. Many very useful employees may thus be saved to the organization. A trained employee is usu- ally an asset and should not be dismissed without due cause. The Vocational Labokatoby This brings us to the question^ **How can we know an individual's talents?'' It is often said that anyone can do best the thing which he most enjoys. This is correct theoretically, but practically, the employer can derive very limited aid from the principle. A part of the interviewer's art is finding out what the applicant wishes most to do, but in the majority of cases, the applicant has a special desire to do the kind of work which he has seen mentioned in the help wanted adver- tisement in the morning paper. The foreman would answer the question, **Let me watch him at work and I will tell you whether he will ever be any good in my department." This has been the favorite method for ages. It is quite reliable but very expensive. The answer which we are seeking is found thru the vocational laboratory. When an applicant has made clear to the interviewer the general class of work he desires and what his training and experience have been, the interviewer selects that job from his list of vacancies HENDERSCHOTT and WEAKLY 33 which most nearly corresponds with his apparent abili- ties. Then the applicant goes to the vocational labo- ratory and takes a test which is a brief sampling of his general intelligence. His performance is compared with the standards for the job for which he is applying. If he seems not to be suited for that work, an effort is made to find the special training or talent which, together with his general intelligence, will make him useful in some other work in the house. One of the first questions asked concerning testing is, * * Do you not find that people are frightened and nervous when required to take a test?'* The answer is that this is the general rule and allowance is made for such dis- turbance. A great effort is made to dispel self-con- sciousness and show that the object of the test is to find what one can do best, because if he can do the thing which is easiest for him and which he likes best, he will be much more useful and happy in his work. The attitude of the examiner is always one of calm, sympathetic interest. The applicant feels that he has found a friend who appreciates his ability and will be glad to help him to succeed. New workers often come back to the laboratory with questions and suggestions because they know that they will receive an interested hearing. Other questions most frequently asked are, **How do you find the standards for jobs and what kind of tests do you useT' After suitable tests have been selected for a particular job, the method of finding standards is practically the same as for any job thruout the house. Securing standards and tests for billers in the freight office can be used for illustration. An experimenter spent a few days in the freight department as a regular biller. This enabled her to select a test which required the same ability as that used in the work. The manager 34 EMPLOYMENT DEPARTMENT and assistant manager selected six of the best billers, six mediocre, and six poor ones. To secure a firm rank, they arranged them in order with the very best worker as number 1, the next best as number 2 and with the poorest as number 18. After - they had taken the tests, their scores were arranged in the same way and comparison was drawn between the firm rank and the test rank. The a^ee- ment was very marked. The first test given was for manual dexterity. The apparatus for this is a board 10x6 inches, so mounted that it inclines at an angle of 45 degrees. In the face are three holes, arranged in the form of an equilateral triangle about 1% inches on each side. Counters are attached to the back, which register if the subject suc- cessfully aims into one of these holes with a stilus. He has a minute with each hand to register as many taps as possible. The billers use a comptometer in their work; therefore, this dexterity test is applicable. The second test was a sheet of subtraction problems. Four minutes were allowed in which the subject was to do as many problems as possible. In her work the biller uses her comptometer to find the total amount a customer should be charged for the whole order; then she copies this amount on the bill and finds the dif- ference between the total charge and the total credit by longhand subtraction. Therefore, the ability to subtract is necessary, but a large percentage of errors are made in copying ; so we improved on the first subtraction sheet by requiring that the problems be copied before the sub- traction is made. This test worked about 35 per cent better than the first one. See Figures 7 and 8. The rest of the tests are made. up of the following well-known material for intelligence tests. Figure 9 is placed before the subject with instructions HENDERSCHOTT and WEAKLY 35 Name Subtract 6.04 9.20 115.36 1.13 92.97 5.01 4.26 80.19 .42 62.20 10.43 472.22 51.27 915.00 117.35 7.48 175.04 25.84 199.01 36.95 64.54 107.79 9.60 6.25 7.36 48.81 77.19 5.21 4.91 6.39 4.26 5.55 137.76 75.08 879.39 3.87 4.36 70.17 57.40 722.07 160.62 121.96 12.57 67.29 109.51 81.36 90.49 3.93 29.34 81.26 3.49 5.65 1.75 3.97 4.36 2.87 4.98 1.63 2.79 2.49 8.16 9.44 3.78 9.78 11.98 6.12 7.34 2.94 8.63 3.43 3.78 6.31 3.64 7.43 6.95 3.46 5.36 2.79 7.03 5.78 Fig. 7. — Subtraction Test EMPLOYMENT DEPARTMENT Name Copy THESE NUMBERS INTO THE NEXT COLUMN AND SUBTRACT THE SMALLER NUMBER FROM THE LARGER NUMBER AS SHOWN IN THE SAMPLE . 6.04 6.04 9.20 115.36 1.13 92.97 5.19 5.19 4.26 80.19 .42 62.20 .85 10.43 472.22 51.27 915.00 117.35 7.48 175.04 25.84 199.01 36.95 64.54 107.79 0.«O 6.25 7.36 '48.81 77.19 5.21 4.91 6.39 4.26 5.55 137.76 75.08 879.39 3.87 4.36 70.17 57.40 722.07 5.65 121.96 12.57 67.29 109.51 4.98 90.49 3.03 29.34 81.26 3.49 160.62 1.75 3.97 4.36 2.87 80.36 1.63 2.79 2.49 8.16 9.44 3.T8 9.76 11.98 6.12 7.34 2.94 8.63 3.43 3.78 6.31 3.64 7.43 6.95 3.46 5.36 2.79 7.03 5.78 Fig. 8. — Longhand Subtraction Test HENDERSCHOTT and WEAKLY 37 Name Date . Do WHAT IT SAYS TO DO AS QUICKLY AS YOU CAN, BUT BE CAREFUL TO NOTICE JUST WHAT IT DOES SAY. With your pencil draw a line thru the longest of these three words: SENT, RETURN, CASH, and make a ring around the second of these numbers: 2, 2, 6, 7, 8. Then, if Independence Day comes in June, write NO in this space ; but, if not, just tell where the sun rises....'..:;// Make any letter except "A" after this comma, ........ and then write NO if 2 times 5 is 9 Now if January is colder than July, make a cross here ; but, if not, make a cross here , or else a circle here Be sure to write TO between these two names of cities: Boston Buffalo. Notice these two numbers: 6, 4. If cork is lighter than water, write the larger number here . . . . «r^ . . , but if cork is heavier than water, write the smaller number here Show by a cross when the nights are longer: in summer ; in winter . . : Give the correct answer to this question: Will ice float in water? ........ and repeat your answer here ....."•*.... Do not give here the sum of 3 and 4 unless you skipped the preceding ques- tion, but write the first letter of your last name at the left end, and the last letter of your first name at the right end, of this black line: FiQ. 9. — Following Direction Test 38 EMPLOYMENT DEPARTMENT Write your name here Make a peefect sentence of each of the following (ONE WORD ON A BLANK) 1. Three and is five. 2. There are hours in half a day. 3 always comes in the last week of December. 4. The Ocean is east of the United States. 5. He washed his and combed his Fig. 10. — Sample Instructions for Trabue Completion Test Make a perfect sentence of each of the following (ONE WORD ON A BLANK) 1. Vfe like good boys girls. 2. The is barking at the cat. 3. The stars and the will shine tonight. 4. Time often more valuable money. 5. The poor baby as if it were sick. 6. She if she will. 7. Brothers and sisters always to help other and should quarrel. 8 weather usually a good effect one's spirits. 9. It is very annoying to tooth-ache, often comes at the most time imaginable. 10. To friends is always the it takes. Fig. 10 (Ck)nt.).— The Trabue Completion Test HENDERSCHOTT and WEAKLY 39 to follow directions as quickly as possible and hand the paper to the examiner as soon as finished. In scoring, count is taken of the time used and the number of errors made. The test is graded on a percentage basis. Figure 10 is scale B of the **Trabue Completion Tests." One side is used for the subject's name and a few samples for instruction. Seven minutes are Sys^ls &r8 often used Co stand for suiiib«rs, as I stands for 1 L ■ • » —j • -4 LZ •tasds for 6 n • • • r - - . The toy to the abore code is represented tfans: 1 2 3 4 5 T~ 7 8 9 Osing this key on the next sheet, fill in the proper synSbols opposite the ansbers. Fig. 11. — The Substitution Test — Instructions allowed for writing the ten test sentences on the other side. Figure 11 illustrates a substitution test. The first sheet is used for instruction. Four minutes are allowed for making the substitutions on the second sheet. 40 EMPLOYMENT DEPARTMENT lUllE Tb uo« this key, draw the proper sj-wbols in the blMik spaces below. The first lln« show* how. H 2 3 4 5 6 Svsple ... 64,976 n 3 7 r 8 9 79,821 , . 63,442 21,6:^9 57,163 3^,761 95,146 28,349 73,862 91,563 37,626 42,916 23,729 65,652 55,486 29,635 72.516 24,631 13,852 76,451 Fig. 11 (Cont.).— The Substitution Test HENDERSCHOTT and WEAKLY 41 The results of the tests are as follows: The names are given in the order of the firm rank furnished by the management. Name General Intelligence Subtraction Dexterity Miss A Score 53 93 112 Score 95 75 65 Score 105 Miss B 91 Miss C 94 Miss D 86 77 83 87 67 55 90 Miss B 91 Miss F 93 Miss G 77 85 61 57 70 70 88 Miss H 86 Miss I 75 Miss J 73 69 75 61 65 55 83 Miss K 84 Miss L 87 Miss M '67 75 66 57 55 47 81 Miss N 90 Miss 79 Miss P 55 83 41 45 37 35 78 Miss Q 62 Miss R 82 From these figures it was easy to determine standards for entrance tests. The standards which applicants must reach to be hired as billers are as follows: 42 EMPLOYMENT DEPARTMENT General Intelligence Subtraction Dexterity — 70 — — 50 — — 85 — A few case stories from the above group of billers will show the work of the individual tests. Miss A whose scores are — General Intelligence Subtraction Dexterity — 53 — — 95 — — 105 — was called by her manager the best biller in the depart- ment. Dexterity and subtraction are her best points. The general intelligence tests were too hard for her. It was desired that she be promoted as a reward for efficient and faithful work. The next highest job in her line of promotion was work in the bookkeeping department. For two weeks she tried to learn the new work but the details were too exacting for her judg- ment. She lacked the general intelligence to go higher. Miss Q whose scores are — General Intelligence Subtraction Dexterity — 83 — — 37 — — 62 — was so lacking in subtraction and dexterity that she could not do billing altho she was given a month in which to learn. She was given some general clerical work which did not require speed but demanded rather good judgment and succeeded. Miss E whose scores are — General Intelligence Subtraction Dexterity — 41 — — 35 — 82 HENDERSCHOTT and WEAKLY 43 was given a month in which to learn to do billing. She could not master the details so they tried her on some very simple filing, but she could not keep her attention on her work. Great inaccuracy was the result. After two weeks* experimenting, she showed no improvement. The application of tests for entrance and for promo- tion is valuable over the general field of employment. The following outline gives a classification of employees in their characteristic groups : I. Mature workers. A. Inexperienced persons. B. Experienced persons. II. Beginners. A. Bright boys and girls. B. Slow boys and girls. 1. Those who have possibilities of de- velopment. 2. Those who do not develop. Thus all employees are grouped into two main classes. First, mature persons who should be promoted to better positions as they become familiar with the system; second, young persons who should be promoted as they mature and qualify for other positions. This latter class is subdivided into group A and group B. Group A is made up of children who learn easily and develop naturally. Entrance tests will show their level of general intelligence and will aid in discovering any special talents which they possess. Group B is com- posed of those children who learn nothing aside from the routine of their own work. They do not take on responsibility and, therefore, cannot grow into better positions. When studied in the laboratory, this class falls into two subdivisions: first, those who can be 44 EMPLOYMENT DEPARTMENT helped by correcting some influence which is causing retardation ; second, those who have difficulties for which we can offer no practical aid. The first general class mentioned above, the more mature workers, falls naturally into two groups. Group A is made up of inexperienced persons. En- trance tests will discover their natural aptitudes and will show their possibilities of promotion. It must be understood, however, that the possibilities for promo- tion will be modified in accordance with the individual's disposition, interest in the work, and seriousness of pur- pose. Group B, experienced persons who have learned a definite line of work, should take entrance tests which will show how they compare with the established stand- ards for the house. If they are proficient, they can be placed with finality, and promotion will come in the form of bonuses. If they are not up to the standard, the reason may be discovered by laboratoiy study and recommendations may be made accordingly. It has been found that a vocational laboratory, con- ducted by an experienced psychologist, is extremely valu- able in studying employees. It helps in finding out the degree to which they desire personal comfort, responsi- bility and authority, and intelligently places them in line to secure gratification. Job Analysis One large Philadelphia concern states this problem as follows : A particular analysis of every department in chart form with its individual positions listed regarding duties, compen- sation and possibilities, should be in the hands of every em- ployment manager. It should comprise such points as: HENDERSCHOTT and WEAKLY 45 ? a. Nature of the work. ■ b. Specific importance. j c. Working conditions (involving physical or nervous strain). , d. Range of wages. -I e. Hours. I i. Permanency. i g. Age limits. ] h. Source of supply. j i. Educational and personal requirements. \ j. Necessary experience. • k. Opportunity for promotion. i A similar analysis made by an Ohio company gives \ the following information covering each job. \ Job number and designation. Brief description of job. ' Time required to learn job. i Previous training or experience necessary. i Starting wage. ' Next advance. ■ Wage limit. ; Age. j Height. I Weight. ^ Posture (sit, stand, stoop or walk). < Motion. Hands (small, neat, large). j Eyesight. \ Schooling necessary. i Whether the job entails overtime or lay-offs. j Another simple analysis made by a Chicago house : gives : ] 1. Name of activity. • 2. ]Male or female. i 3. Starting wage. i 46 EMPLOYMENT DEPARTMENT 4. Starting wage if experienced. 5. Hire from outside. 6. Promotional — if so from what position promoted. 7. Outline of qualifications to fill the position. Logically, the extent to which one may go in connec- tion with such analyses depends solely upon the extent of the use to be made of them. Records are not worth much unless they are used. Such analyses simplify greatly the placing of requisi- tions for help wanted. With a complete analysis based along the lines of the illustrations, about all the super- intendent has to do if he wants to fill a vacancy or make an addition to his payroll is to state bis request briefly. He might merely ask for five billers for such and such a department and that would be sufficient for the employ- ment department. Job analyses have many possibilities. They aid the employment department to make wise and intelligent selections. They make it possible to explain properly the position to the applicant. They open up ** blind alley'* jobs and aid materially not only in the develop- ment of opportunities but also individuals. Too much dependence must not be placed upon a mere analysis, however, for nothing serves so well as experience in, and close personal knowledge of, not only the positions but also the business. Labob Tuknover The value of records is measured by the use to which they are put. To what extent, therefore, should an employment manager develop records? Simplicity and effectiveness are the guides. The simpler the rec- ord, the more it will be used and the better understood. HENDERSCHOTT and WEAKLY 47 NAME OATK (MMjOVI ADDRESS o»TK orw ^LOCK VACATIONS 1916 19tB 1920 1917 1919 1921 DATE RC-Uim^T«D INSURANCE M 5 2 s S S 2 2 en t- s z kl u ? U Z < < H- f K K K X Z ki a: H >- 2 > a i & f ^ g 2 r 1- t M « M K M ■ 1. z c ■* a' ^ N n t z W o 1 s s z M i 1 Fig. 12. — Employee Index Card Upper cut, front; lower, back 48 EMPLOYMENT DEPARTMENT It is necessary to have an index record of tlie employee's service. A salary record is also needed. Output and accuracy records of each employee are very useful if intelligently compiled and kept up. A daily report form is advisable as a measure of efficiency <-" employment' department report . OATe_ Number of People on Requisition ^ Men Women Total (3) Carried Over ^„,.^_. , ,.,.„. . - Rf CE 1 VED TODAY Cancelled today ... ... Total . . _. , ^. Requisitions Fillco N^w Pfopi F Aodfo today, , « .< R V T(».N<;«rFP today Hired to report later O Total _ _ Oldest Date on Unfilled Requisitions Men Activity Women Activity Totals Total mumbcr PCOPLB ADDED j Total number people taken off_ Q (Men ..Women __ _ ) Total number On payroll at close EMPLOYMENT MANAGER .. .., V Fig. 13. — Daily Employment Department Report for the employment department itself. Physical rec- ords are absolutely essential, and so on. Figures 12 to 16 represent various forms used by one Chicago cor- poration in addition to the application blank and physical examination blanks. HENDERSCOHTT and WEAKLY 49 EMPLOYES* SALARY CARD te Amt. Die 1 Amt. p!ii A«tKii, M a Total Towl Eie». (bUck) Lo..(r«|) I«.p. Error. Fou»l Hou« Error. eL Toi.l Error. Bono. T0..I Bonu. iz. Fig.. 16. — Bonus Card of the new people hired to maintain an average payroll at a certain figure over a stated period of time. If it is necessary to hire 1,000 people to keep an average payroll of 1,000 for one year, then in the light of that definition the turnover is 100 per cent. In some organi- zations the turnover has been known to reach 1,000 per cent, while in others it frequently is 25 per cent and sometimes less. It has been estimated that out of the approximately forty million wage earners in the United States, fifty million seek employment yearly. This gives a labor turnover for the whole country of 125 per cent. HENDERSCHOTT and WEAKLY 51 CLASSIFICATION OF CAUSES FOR REMOVAL FROM PAYROLL A. Avoidable I. Other positions. 1. Better salary. 2. Former position. 3. Going into business. 4. More promising position. 5. Position nearer home. 6. To learn trade. 7. To return to trade. II. Dissatisfied. 1. Did not like supervision. 2. Distance too great. 3. Refused temporary work. 4. Refused to be transferred. 5. Resented criticism. 6. With salary. 7. Did not like working conditions. 8. Work too hard. III. Unsatisfactory. 1. Agitator. 2. Carelessness. 3. Dishonesty. 4. Drinking. 5. Fighting. 6. Financial difficulties. 7. Indifference. 8. Insubordination. 9. Irregular attendance. 10. References. IL Superintendent's private file. 12. Suspected of pilfering. 13. Too slow. IV. No reason. 1. Worked less than two weeks and failed to report. 2. Worked more than two weeks and failed to report. B. V. Leaving city. VI. To marry. VIL Account health. mi. To go to school. IX. To stay at home. X. Death. XI. Military. XII. Slack. Fig. 17. — Classification of Turnover Causes 52 EMPLOYMENT DEPARTMENT 1 T _. .__ . '1* ^ ■ ^ - !"> " _. _ _ -_ ._. -— -- . J,- g|d — - ' ----_-.,- ill _^_ ^__- I — |,, ■''1 |-['j Ll -- - .. .- 1 _^ ^ : -^ i-r i- _ .- -_. - - _^-- - - - --. '- Iffl 'ill 1 1 TO • ^. i- — ^|T ^--- ■ " ~^" '" a - _ ;. ^ _. ||^ ^ It — ^ ::_:_:: ____ _..._.._ . i« — ■— ■ >. $t 1- _ ^ - _^ _ a — t - ,s. i-_ _- _ ._ ,_ _ _ . S- - i- :. . ■tr - .- _._ __.-___. m -- } - 11-.-- - f- ^- ni . ''J .| :J i ^- _ ^ fit idr6l=^:s:b.i82^l 1 1 ■. - - ' 5"° .5 M ^ 1 2 i ' * a ,S 2 i 1 £ i- : ":""" :" T" h--_9 |..... .,„.£..!. i;:::::::::::::±::::::::::::::::7-"" 1^:::::::::::|::::::::::::t:-^ ^' J5 L....A...... ....i..._. HENDERSCHOTT and WEAKLY 53 In excess of 50 per cent of the labor turnover in most lines of industry occurs during the first year of employ- ment. A large part of this turnover is unnecessary waste. Turnover is expensive. Estimates vary from $25.00 to $1,000.00 or, perhaps, more per head, depending on the class of work and the amount of training and expe- rience necessary. True, this cost of hiring and dis- charging employees does not appear in the overhead charges of business institutions as an item of expense. In many places there is no knowledge of the cost, yet the estimated economic loss due to labor turnover in the United States is placed in round numbers at one billion and a half dollars annually. ANALYZING TURNOVER Hence, to reduce turnover is one of the biggest ques- tions confronting the employment manager today. It is a problem of keeping people after they have once been hired. The best way to handle the situation is first to discover why people leave and then to strike right at the causes and remove them. Of course, some causes for ** leavers^* cannot be helped, as death, marriage, etc.; hence, there are at once two large and general classifications — (1) avoidable, (2) unavoidable. For greater refinement further sub -classifications may be made into these causes — (1) voluntary, (2) involuntary^ Next come the detailed, reasons. One large Chicago company has endeavored to attack this question of ^*What is wrong with the plant!*' by setting up a few records as illustrated in Figures 17 to 20. It should be stated at the outset that these were purely experimental and that experience will find revisions necessary. They are presented, however, as 54 EMPLOYMENT DEPARTMENT 1 1 n ti il~j_ U a : f i ^' ^^ H f i " -„ i ■ ^ S 2 1 >: '- ^ 1% 5 — — L_ u ^ 2 •! S^ _._ _ _ _ ^ _ _^ ... = d : - *> "^ s : : " ^ - t 6 -i s^ X i ^ I- - -h ii » » 5 c5 ' •: S * a s-::: i i ' '- 2 ^■ X 3 '^ » ° 1 1 : « 3 3 ji::. J 1 ' i 1 ^ 1 1 . U . 1 , , 1 1 ! 1 1 t . 1 1 1 , . ^ .- ^ ill f ^i|lti!i|illi n i M i°iiiii i 1 1 1 1 n « « ' ^ 3 ti z 6 s » a I s. i : ^u A % i i : i 6 x t 6 i i I £ s. I . i Eji - T -si " A""" ' — _._%! ^ , , ^ Y s 5 S ■ i 1 1 -jjiiiiiiiii|jJi..lliifrifiiiih'ii " ._..£ ^! L.. HENDERSCHOTT and WEAKLY 55 an initial step that was taken to study the problem. Men and women are kept separate on the sheets in Figure 20. The forms are kept for each day and at the end of the month are compiled — total male, total female, and grand total. Every employment manager will find that he will have to devise records that fit his own local plant and organization. Once the facts are known, how can they be reduced T This necessitates a careful study of the business organi- zation itself. It demands, naturally, intelligent selec- tion; careful introductory instruction so that the employee may be started right; intelligent supervision, which will aid in giving him confidence, encouragement and a satisfied spirit. Promotion from the ranks, cen- tralization of the power of discharge, fair wages, hours, working conditions, the stabilizing of production, etc, — all these things if carefully studied and followed out represent the way to make use of the statistics, facts, and figures made available by the turnover records. The employment manager should not first discover faults from some employee who is leaving. He must anticipate them, by studying the business itself. The point to be kept uppermost at all times is the question of results. Educational and "Welfare Wobk Whenever possible, promotions to the better jobs and positions of responsibility should be made from within the organization. To aid iu the furthering of this plan many companies have introduced various educational and welfare features for the express purpose of devel- oping the individual and retaimng him for the organi- zation by keeping him interested. 56 EMPLOYMENT DEPARTMENT tOBH'OVBR "sr/^ Vo. on payroll .New pefcple added Transfers Total no. 'ot Xearers Per cent 1 tumorer _ { 1 ''?.. From -/"S—. ToMt o 00 — » ^ •^ "^ '""' ~~* —J ■~L TRAHSFERS | «« 10 Mn,ai«.i.i.J Aajustmefit Dnru.,.. J of force Promotion, Onsatlsfactory. second charges TOTAL 1 ei ■■ J[=ii. "^ « —1 —