Galesburg Register-Mail from Galesburg, Illinois on May 11, 1973 · Page 24
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Galesburg Register-Mail from Galesburg, Illinois · Page 24

Galesburg, Illinois
Issue Date:
Friday, May 11, 1973
Page 24
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••F.rjgJgy* M<*y 11» 1973 24 jSalesburgRegtisrer-MQil, Galesburg, III. Corporations Using New Ideas for Better Results By LEROY POPE UPI Business Writer NEW YORK (UPI) - Lou Business Today Ann Sanderson works in the underwriting department of a I.ike A neighbor. State Farm is there. with Mp for your r.di hnmr lifp Hnd hralth insiir ancr STATE FARM Insurance Companies Home Offices: Bfoomlnoton, Illinois BUD NELSON M3-1139 929 N. Henderson large midwestern insurance company. For some years, she and 140 other girls assigned columns ol figures to thousands of accounts with only the vaguest notion of what they meant. Morale and production both were low. Then the insurance company decided to use a management tool called job enrichment. Lou Ann was assigned 100 clients and told to keep all the records of their accounts. At once she became a lot more interested and began producing better. Frederich Mann, a high salaried vice president and an Ohio consumer products manufacturer, felt his efficiency was affected because taxes were taking too big a bite out of his pay. His company adopted a management tool called "Computer Approach to Compensation," sometimes called "Cafeteria Approach." Better Executive This enabled Mann to defer 20 per cent of his income for 15 years, to have part of his annual bonus paid in stock and to make an extra compensation to the pension plan. He felt this improved his confidence and attitude and made him a better executive. These are just, a few of the somewhat surprising items turned up in a detailed study o how 147 corporations used new management tools recently devised by companies, consultants and university business schools. The study was made by four consulting firms, Rath & Strong, Inc., of Boston, Law rence Leiter & Co. of Kansas City, Theo. Berry & Associates of Los Angeles, and Lifson, Wilson, Ferguson & Winick, Inc., of Dallas. The results were not all positive. None of the 13 new management techniques 'studied proved universally successful or popular. Even electronic data processing, the most widely used, was termed "unsatisfactory" by 12 per cent of the companies. Personal Judgment Job enrichment and "cafeteria" executive compensation, which do so well at Lou Ann Sanderson's and Frederich Mann's firms, were found unsatisfactory by 16 and 20 per cent of those answering respectively^ The modern manage ment tool that frustrated the most companies and employes is called Indirect Work Measurement. This means attempting to fix a mathematical standard for the cost and staffing levels of non-production employers. Most firms found this difficult or impossible, saying you just have to go by old-fashioned, somewhat subjective personal judgment. Another one which most companies found difficult to deal with but which is gaining in importance, according to the survey, is social accounting. This means that .a company tries to figure how important to its growth and profitability are the decisions it must make on such matters as race relations, ecology and the company's image in local community affairs. Expert Says Economy Will Weaken NEW YORK (UPI) - If wages and prices continue playing leapfrog, the nation will be locked into an inflationary spiral for years to come, said Leon Gould, chief economist for Franklin National Bank. "The wholesale price index of industrial commodities is spiraling while shortages of skilled labor are widespread, and many industries are already operating at capacity," Gould reported in the bank's quarterly level. He predicted a weakened economy as the year progresses. See the new '73 Lawn Boys at: ABINGDON Jim'a Gamble Store ALEXIS McKnight Hardware GALESBURG Black Broi. Hardware 401 E. Main St. Olton'i ISO W. Main St. People's Malarial St Supply 4S4 E. Berrien St. Raliton-Hanna 2200 Grand GALVA Gambia Stora KIRKWOOD Central Feed It Produce KNOXVILLE Carlson Service LITTLE YORK Goii'i Service ROSEVILLE Birdiell'a Hardware SMITHSIIIRE Smithihlre Garage WILLIAMSFIELD Weaver'a Hatchery fc Hardware MONMOUTH Goldie'e Salei fc Service Paiton's Seed fc Hardware Torley Hardware The absence of the small investor from the stock market has contributed to the current bearish attitude, C. V. Wood Jr., chairman of the board of the recently formed committee of Publicly Owned Companies, told the executive officers in Dallas and Houston. The committee was formed to draw the small investor back into the market. Small investors, according to Wood, "are getting «iore cautious about making business commitments and when that happens, a business slow-down is inevitable." DISTRIBUTED BY CONRON, INC. DANVILLE, ILLINOIS "Selling at approximately 13 times this year's estimated Dow Industrial earnings of $73, the Dow Jones Industrial [Average must be considered to I be reasonably priced and as jsuch is attractive to investors," Walston & Co. said. on mother's day be extravagant with expressions of love (and as thrifty as she taught you to be) select a decorative or personal item from THE TOP DRAWER many items to choose from priced under $10.00 gift wrapping While you wait 433 east main phone 343-8919

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