Tune Up Windows Video Tutorials

1 The term "load-factor" explains the situation. By "load-factor" Is meant the ratio of average use of a plant to its total possible use. Thus, if a dynamo has a capacity of 500 kilowatts and the average amount of electric current used by consumers is 300 kilowatts, the load-factor is 60. Public-utility engineers employ the term constantly and aim in every way to increase the load-factors of plants under their control The four "basic" departments. All organization, of course, must be to some extent "functional"; the term "functional organization" implies merely that in this type of organization the functions are segregated more intelligently than in the other forms. A functional division of the activities of any business leads to the formation of the four "basic" departments financial, production, sales and accounting. The number of the departments is, of course, purely arbitrary, but the creation of four main divisions of the functions is usually the most convenient and the most logical. Production, for example, might be held to include selling, since production is not complete until the article is in the hands of the consumer. The finished product, to one manufacturer, is raw material from the point of view of another. Likewise, it would be equally logical to hold that production is included in selling, for an article must be procured before it can be sold. The fact that specialized ability, however, is required at each successive stage of the processes of business, makes it advisable to segregate the activities of the business by creating a number of departments, each under the charge of a manager who has the requisite special training as well as natural fitness for his position....