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" "In analyzing organization work, a single chart can frequently express more than any amount of detailed written explanation. First of all, clearly define author- ities within your establishment ; then chart those authorities simply and graphically, so that every workman knows to whom he is responsible, and every executive knows who is responsible to him. Place this chart conspicuously in every department where each employee can see it. In case of disputed authority, final proof is immediately at hand. There is then no loop-hole through which a neglectful workman, foreman or executive can crawl no longer does he have the excuse that he thought somebody else was going to do it. In clean-cut form, his duties and relations to other men of the organization are laid down once and for all, and responsibility rests on the right man. Failure so to specify responsibilities inevitably means confusion all down the line.
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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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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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.