Document Type

Article

Publication Date

1918

Abstract

Probably 70 per cent of the manufacturers of the country would come at the present time under the heading of unsystematized management. In the unsystematized business the main feature is the annual statement which shows merely the results of the past year. The managers of the majority of manufacturing businesses do not know definitely whether they have made a profit or loss until months after the close of a fiscal year. Systematized management not only provides records but arranges these records into periodic departmental reports. This type of management shows the where, but does not specify the how. Scientific management will show the how as well as the where. It will show the expense accounts, profits and losses, assets and liabilities, at the end of every four weeks. It will plan all work in advance and specify how it is to be done. Under scientific management, costs come as a byproduct of planning.

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