With the military system of industrial organization every
officer in each division or subdivision is held responsible for
all that happens within his province. No matter what mis-
takes are made, he is the one who must stand the conse-
quences. If a foreman has charge of a shop and that shop
runs behind in orders, is extravagant in the consumption of
supplies or power, or is deficient in the quality of work
turned out, the foreman in charge is responsible. He is
given a division presumably sufficiently small to make it



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THE ECONOMIC SIDE OF
WORKS MANAGEMENT



A THESIS PRESENTED TO THE FACULTY OF THE GRADUATE

SCHOOL OF THE UNIVERSITY OF PENNSYLVANIA IN PAR-

TUL FULFILMENT OF THE REQUIREMENTS FOR

THE DEGREE OF DOCTOR OF PHILOSOPHY



BY

JOHN CHRISTIE DUNCAN



188 THE PRINCIPLES OF INDUSTRIAL MANAGEMENT

thing, but hardly knew what. Some plants tried varying
schemes of running their work. Several concerns hit upon
the plan of piece wage payment and careful inspection of
material by independent inspectors who were held responsi-
ble. This scheme has worked with a reasonable degree of
success, but there are so many ways of fooling the inspector
and of getting bad work passed, and there are so many possi-
ble evasions of the piece wage scheme that it was soon re-
alized that another change was necessary before this method
would prove efficient. The piece wage payment and inspec-
tion scheme did lead to something better.
