The actual manufacture of material into a specific product is a sort of digestive process which must have a functioning organization purposed to meet… - Clinton Edgar Woods

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The actual manufacture of material into a specific product is a sort of digestive process which must have a functioning organization purposed to meet the required ends, just as the human body has, and it is governed by similar conditions. It must also be directed by a specific intelligence and must have internal and external avenues of correspondence to keep it alive; and, like a living organism, must adhere to the eternal economy of things and show a profit by its activities or it cannot progress.
To exemplify this in a simple way, the writer has laid out Figure I, showing the prime elements composing the anatomy of an industrial body. One does not have to draw on the imagination very far to make a comparison of this anatomy with that of man. It has its mind, will power, and brain to direct it, as indicated by the stockholders, directors and executive officers, a heart which keeps in flow the circulating medium internally ; and avenues of correspondence with the outside world which furnish to it the very elements of existence. This chart shows first, that the stockholders are simply elements belonging to the general public who have made an investment for some specific purpose; second, that immediately after this, the election of directors sets into action the first internal factor in the body, which is then divided into different functioning powers by the election of executive officers.

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About Clinton Edgar Woods

Clinton Edgar Woods (February 7, 1863 - 1930) was an electrical and mechanical engineer, inventor, manufacturer of automobiles in Chicago and New York City, and author of one of the first books on .

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Additional quotes by Clinton Edgar Woods

Organization aims to unite individuals into a body which shall work together for a common end. Specifically, organization prepares for the transaction of business by electing and appointing officers and committees, delegating authorities and bringing into systematic connection and cooperation, each and every part of the industrial body. Right organization, in short, puts vitality into the entire factory, secures the efficient working-together of all employees, from the manager's office to the mechanic's bench, routes materials, sub-divides work, inspects output and delivers the right goods, fully processed, at the shipping room door on the correct delivery date.

The basic value of any proposition is its commercial aspect, and naturally the first query of inventor, capitalist and layman is : "What conditions exist that will make a market for automobiles or create a desire in the public mind for their use?" Some will say progression, the spirit of which surrounds us everywhere; others say, expediency and the desire for saving- minutes and even seconds; others, again, their convenience and readiness for instant use; all of which are true but do not in a broad sense answer the question, but create another as to what has made all these things desirable on the part of the public as things necessary to its comfort and welfare.

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The writer has found, in analyzing and diagnosing organization and accounting work, that charts can express more on one page than is sometimes expressed in several chapters of writing, and has been the author and originator of many methods of charting industrial expressions. It is necessary, as a first step, for analytical and other purposes, to make a chart expressing all of the relations governing the organization of a business so as to show the very foundation upon which all authorities, accounting, and business transactions are based and conducted. There have been more failures scored both personally and financially for lack of these very elements in a business than by reason of any other one thing. As well try to build a house without a foundation as to try to conduct a business, especially a manufacturing business, without proper organization.

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