Factories today are being run less and less by the authority of experience only, and more and more by the authority of figures and facts. The superintendent and manager of long experience and intuitive knowledge only is forced to make room for the younger man, of less experience, perhaps, but who modernizes his work by the jurisdiction of figures alone.

A workman subject to orders from several superiors will be confused, inefficient, and irresponsible; a workman subject to orders from but one superior may be methodical, efficient, and responsible.

Without titles and tier of officials how could one build an organization? When Flanders resigned as production manager taking with him his assistant Walborn, to work for a newly formed company, Henry Ford called Ed Martin and me to his office. "Ed and Charlie," he said, "Flanders and Walborn are leaving, and I want you to take their places. You Ed, will be plant superintendent and you Charlie, will be assistant superintendent. Just go out there and run the plant. I know you can do it. But there's one thing I want to add: work together as one. I don't ever want to hear that you can't work together. And don't worry about titles."

In mechanistic systems the problems and tasks facing the concern as a whole are broken down into specialisms. Each individual pursues his task as something distinct from the real tasks of the concern as a whole, as if it were the subject of a subcontract. "Somebody at the top" is responsible for seeing to its relevance. The technical methods, duties, and powers attached to each functional role are precisely defined. Interaction within management tends to be vertical, i.e., between superior and subordinate... Management, often visualized as the complex hierarchy which is familiar in organization charts, operates a simple control system, with information flowing up through a succession of filters, and decisions and instructions flowing downwards through a succession of amplifiers.

Industrial age companies created sharp distinctions between two groups of employees. The intellectual elite—managers and engineers—used their analytical skills to design products and processes, select and manage customers, and supervise day-to-day operations. The second group was composed of the people who actually produced the products and delivered the services. This direct labor work force was a principal factor of production for industrial age companies, but used only their physical capabilities, not their minds. They performed tasks and processes under direct supervision of white-collar engineers and managers. At the end of the twentieth century, automation and productivity have reduced the percentage of people in the organization who perform traditional work functions, while competitive demands have increased the number of people performing analytic functions: engineering, marketing, management, and administration. Even individuals still involved in direct production and service delivery are valued for their suggestions on how to improve quality, reduce costs, and decrease cycle times...

Industrial age companies created sharp distinctions between two groups of employees. The intellectual elite—managers and engineers—used their analytical skills to design products and processes, select and manage customers, and supervise day-to-day operations. The second group was composed of the people who actually produced the products and delivered the services. This direct labor work force was a principal factor of production for industrial age companies, but used only their physical capabilities, not their minds. They performed tasks and processes under direct supervision of white-collar engineers and managers. At the end of the twentieth century, automation and productivity have reduced the percentage of people in the organization who perform traditional work functions, while competitive demands have increased the number of people performing analytic functions: engineering, marketing, management, and administration. Even individuals still involved in direct production and service delivery are valued for their suggestions on how to improve quality, reduce costs, and decrease cycle times...

Writers after Coase have referred to the authority structure of the firm as a "visible hand" that works in combination with Smith's invisible hand. The everyday fact that employers exercise power over their employees — not news to most employees — had been a central theme in Marx's economics, but it was (and generally continues to be) overlooked by most neoclassical economists. Early in his studies Coase noted the similarity between the hierarchical organization of capitalist firms, with their reliance on command relations, and the then-existing system of centralized economic planning in the Communist countries, where production was carried out in accordance with orders from higher authorities and where market competition played little role.

The subordinate's job is not to reform or reeducate the boss, not to make him conform to what the business schools or the management book say bosses should be like. It is to enable a particular boss to perform as a unique individual.

The man who focuses on efforts and who stresses his downward authority is a subordinate no matter how exalted his title and rank. But the man who focuses on contribution and who takes responsibility for results, no matter how junior, is in the most literal sense of the phrase, “top management.” He holds himself accountable for the performance of the whole.

The superior in one group is a subordinate in the next group, and so on through the organization.

or a man's own consent subjects him to a superior.

Nowhere in the world of business at the present moment are conditions and methods changing more rapidly than in the work shop and factory itself. The application of new methods of processing, the invention of new tools, and the use of new combinations of cutting steels, are some of the things that in themselves are revolutionizing not only factory practice, but the character and skill of the labor employed; which results in a tendency toward a vast increase in output per capita. These things are in turn all forcing new methods and ways into industrial administration.

The sequence of the process involves both the one and the other, both the apparatus and the materials, in such intimate interaction that the process cannot be spoken of simply as an action of the apparatus upon the materials. It is not simply that the apparatus reshapes the materials; the materials reshape themselves by the help of the apparatus... The whole concert of industrial operations is to be taken as a machine process, made up of interlocking detail processes, rather than as a multiplicity of mechanical appliances each doing its particular work in severalty.

an employee’s relationship — by blood, marriage or acquaintance — with a person above him in the hierarchy.