The enforcement of a rigid system of discipline in the government of works of great magnitude is indispensable to success. All subordinates should be accountable to and be directed by their immediate superiors only; as obedience cannot be enforced where the foreman in immediate charge is interfered with by a superior officer giving orders directly to his subordinates.
Canadian engineer and early organizational theorist (1815–1878)
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Each officer possesses all the power necessary to render his position efficient, and has the authority with the approval of the President and General Superintendent to appoint all persons for whose acts he is held responsible, and may dismiss any subordinate when, in his judgment, the interest of the company will be promoted thereby.
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Hourly reports are received by telegraph, giving the position of all the passenger and the principal freight trains. In all cases where passenger trains are more than ten minutes, or freight trains more than half-an-hour behind time, on their arrival at a station the conductors are required to report the cause to the operator, who transmits the same by telegraph to the General Superintendent; and the information being entered as fast as received, on a convenient tabular form, shows, at a glance, the position and progress of trains, in both directions, on every Division of the Road.
In my opinion a system of operations, to be efficient and successful, should be such as to give to the principal and responsible head of the running department a complete daily history of details in all their minutiae. Without such supervision, the procurement of a satisfactory annual statement must be regarded as extremely problematical. The fact that dividends are earned without such control, does not disprove the position, as in many cases the extraordinarily remunerative nature of an enterprise may ensure satisfactory returns under the most loose and inefficient management.
It may be proper here to remark, that in consequence of that want of adaptation before alluded to, we cannot avail ourselves to any great extent of the plan of organization of shorter lines in framing one for this, nor have we any precedent or experience upon which we can fully rely in doing so. Under these circumstances, it will scarcely be expected that we can at once adopt any plan of operations which will not require amendment and a reasonable time to prove its worth. A few general principles, however, may be regarded as settled and necessary in its formation, amongst which are:
This comparison [of division accounts] will show the officers who conduct their business with the greatest economy, and will indicate, in a manner not to be mistaken, the relative ability and fitness of each for the position he occupies. It will be valuable in pointing out the particulars of excess in the cost of management of one division with another, by comparison of details; will direct attention to those matters in which sufficient economy is not practiced; and it is believed, will have the effect of exciting an honorable spirit of emulation to excel.