[Illustration: Fig. 7. This Shows How Salaries and Wages are Apportioned to the Two Principal Divisions of a Business]
[Illustration: Fig. 8. This Chart of Expense Distribution Shows the Amount of Executive and Administrative Salaries, and Expense of Every Class, and Their Correct Apportionment]
=24.= However efficient the personal organization, satisfactory results can be obtained only under proper environment. It is not merely a question of pleasant surroundings for employes, but a financial proposition; not a reform or a fad, but a money-making plan that governs the engineer in laying out a plant.
This is not to be a discussion of welfare work, about which much has been published. Our purpose is to point out the business economy of a proper physical arrangement of office, store or factory as against the wasteful methods of a systemless grouping of men and machinery.
The question of physical environment is a practical one that has been solved by many enterprising concerns, and the subject is deserving of careful study by the student of business organization. While some hard-headed business men may regard the question of minor importance, it is significant that the largest and most successful enterprises, financially, are those in which employes have been supplied with the most comforts, surrounded with approved safeguards, and aided in their work by the latest appliances of proved worth.
There is an old axiom to the effect that even a good workman cannot be expected to do good work with poor tools. It is equally true that he cannot be expected to do good work in either unsanitary or inconveniently arranged shops and offices.
=25. Factory Plans.= The planning of a manufacturing plant is a question for the engineer, rather than the accountant or business organizer, but a few general remarks on the subject will not be out of place in this paper.
It may be stated as a fundamental principle that the factory should be planned to facilitate the movement of raw material from one department to another. In the ideal factory, storage for raw material will be provided where it can be economically received and easily procured when needed in the factory. It should, if possible, be close to the department in which the material is subjected to the first operation.