Competition in all trades have become keener and profit margins have become smaller, also customers have demanded better quality and products have become more intricate and difficult to manufacture.Tools,machines and plants have become necessarily more
complicated and less easy to handle at maximum efficiency.
The first effect of education of work people has been to make them realise their position and power in the scheme of things and to demand a higher standard of living , and at the same time shorter working hours and better conditions.
It is no more possible to define a leader than it is possible to define an artist ,although it might be said that a leader is an artist in his understanding and love of human nature and his handling of human beings.
To control others,whether he is armed with authority or not , a man must have perfect control over himself ,which does not mean he must never lose his temper, that he must know when to lose it,and when and where to find it again.
It is clear that Manager must generally have faith and trust in his fellow-workers,else how can they have faith in him?And he must seek to develop their good qualities and strengthen them at their strong points rather than concentrate on their faults and weaknesses. A gardener who all the time will pull the weeds will never grow flowers.
Material,Labour and Capital and their connections with each other
Cost of Product = Cost of raw material used+ cost in wages paid for the working up of the material ,used directly in production + Additional costs,not included under labour and raw materials,but nevertheless necessary,and usually grouped and called Overhead charges.
It is seen from an examination and analysis of the items on the right-hand side of this equation that they consist entirely of labour.
Take for instance depreciation of plant or machinery. This important item in overhead costs ,calculated as a rule as a percentage of the original cost of the equipment, or its present book value ,is set aside year by year to cover the wear and tear and obsolescence of the machinery or plant, so that when it is worn out or obsolete there may be a fund to replace it ,and the capital in the concern be maintained intact.
The first pattern of Ford Car was well designed for service,well built of the best materials obtainable and was sold at such a low price as to command an enviably large market.With only minor changes in design and finish it was produced year after year and the company were naturally reluctant to abandon a model that had been so successful from every point of view. Other motor car builders copied Ford methods ,but changed their designs more frequently ,and more completely and this developed a taste amongst car buyers for something more sightly than Ford ,and a desire for variety and change even at a higher price ,which the Ford company would not and did not attempt to satisfy.The design and manufacture of cars were being rapidly developed by other makers,and Ford Company stood still and was left behind.The old model lost and Ford was beaten by its competitors and never recovered the market it lost.
The consultant having carried out investigations in many different branches of industry, has come to recognize and to know thoroughly the fundamental and common principles that apply to all cases,and consequently is not likely to pay undue attempt to relatively unimportant details.A CONSULTANT will recognize at once the more significant sources of waste,will stop them immediately ,without going into more detail and will not make the mistake of spending pounds to save pennies.
Again the Consultant,after all ,is not dealing with technological processes of manufacture,but with Management only ,and in this matter his knowledge is probably deeper, and certainly his experience is broader,than that of staff employee.Lastly Consultant is less likely to make mistake.
Management of people is a talent .To have greater profit margins,best quality output and higher production in shortest possible time making labours easier and rewards be given by the Organisation time to time for the better work done. For better Management a Consultant need be hired.
I] Financial Management --- By MY Khan and PK Jain; Delhi,India.
Ii]The New Management --- By Macdonalds and Evans -- London