m
Julw 1950
Discussion of the resultsof a study on management -engineering problems in the chemical industry, started last month, is continued bg Walter volt Pechmann and the free exchange of managerial problems between various groups in the chemical industry as a whole are believed to be the keys t o successful management engineering in chemical plants. Aside from the need to familiarize production executives with recent developments in plant engineering and to give the generation nom preparing in our colleges for managerial positions the opportunity to acquaint themselves with practical management engineering problems, it is also important that junior executives in chemical plants be taught sound management engineering in their present positions and that they learn to appreciate managerial problems. The writer, who has made it a special point t o discuss problems of management engineering with young chemists working in production, has found unusual interest in this phase of plant management. In many instances, however, theory and practice of management engineering were found to be far apart. Only a basic misconception of what management is trying to do can furnish a reasonable explanation for this condition. A typical example is the chemist who accused management of laxity in the control of plant expenditures simply because the writing of requisitions for office supplies was abolished. Checking into this matter, the writer found that a study, which had been made over a number of years, had revealed a close relationship between expenses for supplies and the number of people employed in each department; management thus decided to distribute the burden expense over the various departments on the basis of the number of employees in each department, saving the company the expense of costing thousands of requisitions each month. When this situation was explained to the chemist, he was satisfied that management had used sound judgment. The damage to management’s prestige by an unjustified accusation, unfortunately, could not be rectified. There are similar cases, in many chemical plants, where a simple explanation of its actions by management would promote a better understanding between top management and minor executives, and would give junior executives a better understanding of what management is trying to do. It is realized that it is sometimes impractical and sometimes impossible to furnish explanations for every managerial action. Management, however, should make an earnest attempt to abolish when it exists, the attitude of “papa knows best” and should not take the point of view that explanations may be interpreted by employees as a weakness.
E
DUCATION
Nature has bestowed on us the ability to forget unpleasant episodes of the past and to see our start in business life in the light of a steady growth rather than a series of adjustments by the trial-anderror method. This is probably the reason that many people in top positions in industry today do not seem to understand the problems with which the junior executives in our industry are confronted. The writer does not agree with statements that the present generation expects too much coaching or is unable to solve its own problems. It just seems that way to people who have lost the understanding for the problems of young people. Anyone starting a career in chemical manufacturing does not have sufficient experience t o guide him in forming a final opinion of what is right and what is wrong. He must depend t o a certain degree on the judgment of his superiors and often must follow a given course, not because he is convinced that his action is correct but because he assumes that his superior knows best. Should he find that he has trusted the judgment of a person who advised the wrong thing, he may lose confidence in the opinion of experienced people. He may then follow the path of his own convictions and thus quickly run into trouble. Above all, the loss of confidence in the superior judgment of management is likely t o make him a griper or a man with a chip on his shoulder. Production executives should be aware of their responsibility in molding the future of young chemists and should realize a t all times that a minor error on their part may have more serious consequences than is generally assumed. Some chemical plants make it a practice to let junior executives participate in discussions of problems involving management engineering. Others rotate junior executives among the various production and administrative departments. This is a good way t o provide experience. Some manufacturers, however, feel that these arrangements are not entirely beneficial. They call attention to the fact that these measures require the selection of people who will hold managerial positions in the future a t a time when neither adaptability, intelligence, ambition, nor personality can be evaluated properly. Thus it is necessary to select a larger number of people than actually will be required and to provide a sifting process. This is believed t o be costly and t o tend toward friction among the people not chosen. Furthermore, it is contended that such arrangements are basically unsound because (Continued on page 70 A ) 69 A
they are contrary to our American way of thinking-that the opportunity to grow should come from accomplishment and not from a more or less arbitrary selection. It is also thought that the selection of people for future top positions is unwise because it kills initiative and may spoil the careers of people n ho cannot make the grade. X rather unique arrangement was found in one chemical plant where academically trained people in minor positions had been organized in a group similar to a junior chamber of commerce. This body functioned as an adviser to the plant committee. Although there was not sufficient experience available to form definite conclusions as to the merit of the setup, it was generally agreed that the functionsof this body must be clearly defined, as otherwise criticism of top management would be invited. Attention n-as also called t o the importance of assigning to this committee the solving of minor problems involving all the phases of plant management, so that members would become familiar with all managerial functions and would learn to appreciate the importnnce of their proper coordination. Such a committee should naturally be headed by an experienced executire, \Tho should not have a voting right but may be empon-ered with the right to veto a decision to the extent that the management committee will have to approve the decision before any action is taken. The importance of free exchange of managementengineering problems within chemical industries and n-ithin the industry as a whole is not always readily recognized. Many people cannot see how, for example, problems involving the manufacture of household appliances have anything to do with the making of chemicals. I n order to understand the significance of an exchange of views on problems of management engineering, one must look on manufacturing as a conversion process which must be conducted according t o certain basic requirements. We know, for example, that the relationship of the value of fixed assets to the value of raiv materials should be within certain limits for eyery type of industry. Industries which are alike have surprisingly similar problems in regard to their money investment for equipment and raw materials. The writer has visited, during the past 5 years, a great number of manufacturing plants engaged in the making of all kinds of products and has come t o the conclusion that every type industry seems to have its strong points and weak points. Managerial practices, known to almost everyone in the chemical industry, are frequently considered as entirely new in other industries, and vice versa. An airplane manufacturer, who is especially keen about receiving new ideas, told the writer that he is now hiring people who have never worked in his line before, since he found that these people approach problems from an unconventional point of view with the result that they frequently come up with ideas which are entirely new in his business. It might be worth while to give this approach some thought in regard to chemical manufacturing.
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