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vantages and education have not, in their present state, the mental capacity to follow other than the line of least resistance, irrespective of consequences, presents a problem requiring constructive and persevering effort that cannot be sidetracked. Coercion is not the remedy. The creation of the desire, through precept and example, is the initial requirement and furnishes the basis for a solution, through educational means of a more tangible nature later.

Fourth--Proper representation of employer and employed, in the formulation of the policy is of prime importance. Such a procedure will assist not only in determining a basis of common interest, but will aid materially in its interpretation and practical application.

Unless these four fundamentals are the controlling intiuences in the formulation of a policy, interpretation and practical application become makeshifts. Strong personalities may triumph temporarily, but a policy must be fundamentally sound te be of permanent value.

Proper Interpretation of Policy Those who interpret policies have arbitrarily been termed "employers.” It is important that an executive in charge of any organization be capable not only of securing material results, but of assuming leadership in developing morale.

Morale, let it be understood, cannot be confined to the employed. We must look to the employer for leadership. Size up any organization. If you find a high type of morale in the line, you may be sure of the source of inspiration. Only when the spirit of the square deal has been inculcated into every member of the employer class, until it is a very part of his every act toward those with whom he comes in contact, can it be expected to spread and develop loyalty among the employed.

Leadership involves salesmanship and enthusiasm can be made contagious. If that which is for sale is the best procurable, there will be customers, as a matter of course, proviled the salesme! are properly organized and directed. One has but to study the contributing causes to the success of our

great war measures, particularly in industry, to appreciate this.

The principles underlying these measures were basicly sound, but the ideas had to be sold. When understanding was secured, unqualified co-operation followed. As a result, service became popular, and disloyalty in any form, unpopular. Neither employer nor employed countenanced it.

The same results, modified to peace time temperature, can be secured in industry, by constructive morale cultivation. The start, however, must be made among those of the employer class who come in direct contact with the employed or public. Any policy is judged by this contact. It measures the sincerity of the desire of employers for an improved relationship and it is deserving of most earnest consideration.

The practical medium for solving humanitarian problems should be under the direction of an executive occupying a status in an organization not inferior to that of the purchasing, production, or sales manager. When it is considered that the greatest asset in industry--the human element-is entrusted to him, the reason for this will be apparent. His department serves as a clearinghouse and should constructively influence the interpretation of policy according to conditions as it finds them in the field, and should further convey to the employed in its practical application of details the ideals and purposes of the management. The effectiveness of this medium depends to a large extent upon the honesty of purpose, tact, and executive and juciicial ability of the industrial relations manager, and on his ability to develop these qualities in his associates.

Practical Application of Details In considering the practical application of details it is obviously unpractical to even suggest the type of organization that should be developed to handle personnel problems in any particuiar organization. Local requirements must determine this. The consideration will therefore be limited to a description of functions.

The most important of these are employment, hospital and service, further functionized as follows:

1. Employment.—This function usually embraces re

cruiting, hiring, adjustment of problems arising out of and in the course of employment, and discharging.

2. Hospital.--This function usually includes medical, surgical, dental and visiting nurse service and sanitation.

3. Service.-Under this function is usually included safety, compensation claims and adjustments, housing, washrooms and lockers, transportation, legal aid, loans, education, mutual benefit and other employes' insurance societies, employes' activities—religious, musical, social, athletic, etc.-Americanization training and assistance in securing citizenship papers, commissary, co-operative stores, publications, and general service to employes, and in some cases plant protection and fire departments.

Duties of the Employment Department

An employment department is essentially a sales agency. It must have access to an available supply of its commodity for the prompt filling of requisitions of varying specifications. In its transactions it has two customers. One is the man to whom it must sell the job. At this stage careful selection is essential, because the second customer, the requisitioner, must be presented with a product which will satisfy his requirements. If both are satisfied, all is well.

However, the employment department must operate upon the principle that its customers are always right. Goods falling short of specifications are returnable. It must stand behind its sales and be prepared to make all necessary adjustments. Misunderstandings may be the root of the dissatisfaction of both customers. Sometimes they can be straightened out; in other cases transfers or discharges are required.

The foregoing in a few words describes the function of a highly specialized work where personality and judgment, coupled with a highly specialized routine essential to proper application, play an important part.

Scope of Work of Hospital Department

The function of conserving the life, limbs, health and time of employes through adequate and prompt surgical, medical and dental service has been well established in industry for some time. Sanitation, or the elimination of unhealthful conditions and habits is approaching that status.

The employer and employed have learned to appreciate how essential it is to their mutual interest that the human machine be kept efficient. This has been brought about by constant education and practical observation.

Activities of Service Department The service activities are those through which the medium of common interest, man to man, can be practically established. It constitutes the morale builder, through the development of latent possibilities, which possibilities crave expression in employer and employed alike. It is the common meeting ground.

No other department can come so closely in contact with aspirations and needs of the employed and create constructively to the material benefit and added content of all concerned. This is especially true when the families of the employed are given opportunity to co-operate. This is a thing that cannot be purchased. It must be constructively enlisted. The stabilizing effect of a 24 hour a day attachment is self-evident and it brings with it a growing and more closely cemented loyalty.

Co-operation from the employer, essential in all departments, is vital in this department. Nowhere is whole-hearted interest so much appreciated, and nowhere will total indifference meet with such disastrous results.

Conclusion

This summary of general principles derived from a review of progress made in solving personnel problems is presented to you with the definite knowledge that mutual confidence between employer and employed does exist in certain organizations and with the firm conviction that it can be revived or developed, as the case may be, in others.

An internal problem is involved. Definiteness of policy combined witir a broadminded interpretation in which the employer must assume leadership in the development of morale, and square and aboveboard dealings furnish the framework for constructive improvement.

Discussion On Industrial Relations

MR. J. C. WRIGHT.—I would like to ask the first speaker what his conclusions were as to labor turnover. He stated that the labor turnover was about 150 per cent. Do we conclude that this means that these men were going into other jobs, or were they going from plant to plant and remaining in foundry work?

MR. C. C. SCHOEN.-Foundries keep no accurate records of the young men that are going in and out. They take young men into their shops and discover that in order to maintain their full quota of apprentices, which of course is not up to the full quota allowed, they have a turn-over of approximately 150 per cent.

In regard to the statement that competent instructors can be obtained, I have tried to distinguish between the men who do the training in the shop and the men who do the instructing. It has been found from experience that it is easier to get men to train apprentices on the job but rather hard to get men to take in a class of 15 or 20 apprentices and explain to them the theory of foundry work.

MR. WRIGHT.—Your second teacher I assume is not within the industry?

MR. SCHOEN.--He should be taken from the industry but he cannot be found. Some factories endeavored to take some of their foremen and send them before their apprentices to lecture on the theory of foundry training but they could not do that because of the lack of understanding of theory on the part of the foremen.

MR. FISHER.—I want to ask Mr. Wright whether the federal board for vocational training would be willing to help us conduct our vestibule school. We have instituted in our Detroit plants a foundry vestibule school and have adapted it as far as possible to the principles of training which Mr. Allen of the board has laid down in his book, "The Instructor and the Job.”

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