The regulative principles of management along scientific lines include four important elements: - Hugo Diemer

A manufacturing organization being a live, human thing, is like a municipality. Many of our shops are as fruitful fields for riddance of graft as are many of our cities. The graft in the shop consists mostly in the distortion of the managing and planning body into a wire-pulling and influence machine with easy berths filled by incompetents or idlers. This condition often exists not because of any intentional desire to be disloyal on the part of the employees, but simply on account of the work being allowed to drift without systematic attention to departmental organization.

The Methods of Industrial Management. — A committee of the American Society of Mechanical Engineers made an extensive canvass in the fall of 1912 to determine what were the new elements in modern management as well as what the committee designated as the regulative principles of industrial management. The committee confirmed Adam Smith's statement made in 1776 in his Wealth of Nations, in which he held that the application of the principle of division of labor was the basis of manufacture. The committee also agreed with Charles Babbage, who in his work entitled Economy of Machinery and Manufacture written in 1832, added another principle, namely the transference of skill.

The prominent element in present-day industrial management to be: the mental attitude that consciously applies the transference of skill to all the activities of industry.