MODERN BUSINESS

Sun (Auckland), Volume III, Issue 919, 12 March 1930, Page 1

MODERN BUSINESS

HUMAN ELEMENT MOST IMPORTANT MR. R. LAIDLAW’S VIEWS “The most important element in business is the humaun element. Make tho man right and the business will bo right.” So said Mr. R. A. Baidlaw, general manager oC the Farmers’ Trading Company, Bimited, during the course of a lecture on “Modern Business Organisation,” at the weekly luncheon of the Auckland Creditmen’s Club today.

Tiro speaker said that the various departments of any business, must, like the organs of the body, function to give energy to tho whole. “It is essential for a business man to organise himself first,” continued Mr. Laidlaw, referring to the Area science of the business philosopher, Sheldon, who had likened a man to a square, the four sides of which were ablity, reliability, endurance and action, respectively. It was also essential that every member of the staff be assisted to understand the working of the business and thus set the mind to work with the hands in the doing of the common tasks. Andrew Carnegie, when asked tho reason for liis success, had said, “I find men more clever than myself and get them to work for me.” “Don’t get lost in detail,” said the speaker. “It is not only bad for the business, but hinders the progress cf those beneath you who should be learning to shoulder their share of responsibility. Don’t be fearful of your staff learning as much about the business as yourself. Make sure, however, that all responsible positions are won and held on merit alone, otherwise dissatisfaction is created.” SYSTEM ESSENTIAL

Syst€ % m was also essential. Nevertheless, though it was Impossible to get too much system into the human part of the business, it was possible to get too much system into tho mechanical side. System was not an end, but a means to an end —that more profit might be produced and produced more permanently. Sometimes too much system ate up all the profit and showed nothing worth while in return. Five points were essential to a successful business. First came a satisfactory gross profit, followed by low working expenses to show a satisfactory net profit. Thirdly, a satisfactory number of annual stock turnovers should be shown. There should be low book debts in proportion tc the amount of capital invested, and a reasonable amount of spare capital. “It is always better to know where a business is going than to know where it is now,” said Mr. Laidlaw. “For that reason an accurate accountancy department should keep a strict check on all activities to show in what aspect tho business is increasing or decreasing. Applied knowledge is power and can be used to rectify w calmnesses.” . The great aim was to arrive at a point of perfect balance when the business could make the greatest amount of net profit possible before tho law of diminishing returns began to operate. , r . At the conclusion of his address Mi. Laidlaw was accorded a hearty vote of thank-.