James Bray Griffith

James Bray Griffith (1871 - Jan 1, 1937) was an American business theorist, and head of Department of Commerce, Accountancy, and Business Administration at the American School of Correspondence in Chicago, known as early systematizer of management.Norman A. Hill.
Efficiency of labour in the heating
" in: ''Transactions of the American Society of Heating and Ventilating Engineers,'' Vol. 18 (1913), p. 266.

Biography

Born in Maryland to Thomas Francis Griffith and Euphemia Hill, Griffith came into prominence in the 1900s. Early 1900s had joined the International Accountants' Society, Inc., a home study school founded in 1903 in Chicago. There he was director of the Course in Systematizing, and published his first book on systematizing in 1905. Earlier in the 1900s he had published a series of articles in ''The Life Insurance Independent and American Journal of Life Insurance,'' and in McGraw Hill's ''The Magazine of Business.''

Later in the 1900s Griffith joined the American School of Correspondence, a distance education high school founded in 1897. For the Department of Commerce, Accountancy, and Business Administration Griffith wrote a series of instruction papers, among others on ''Advertising & Sales Organization'' (1909), ''Purchasing and stores department'' (1909), ''Records of labor and manufacturing orders'' (1909), ''Theory of Accounts'' (1914).Stone, Williard E.
Who Was Who in Accounting in 1909?
" ''The Accounting Historians Journal'' (1975): 6-10. Griffith was head of the Department of Commerce, Accountancy, and Business Administration until the late 1910s.

In 1910 Griffith was Managing Editor of the ''Cyclopedia of Commerce, Accountancy, Business Administration,'' a general reference work on accounting, auditing, bookkeeping, commercial law, business management, administrative and industrial organization, banking, advertising, selling, office and factory records, cost keeping, systematizing, etc.

Work

''Systematizing,'' 1905

In the 1905 Griffith published his first work, entitled ''Systematizing.'' A 1907 review explained, that the demand for trained systematizers - men who have learned the science of business organization - is far greater that the supply. Such men experience no difficulty in securing lucrative positions, while those who engage in the work professionally soon attract as many clients as they can successfully serve.National Association of Accountants and Book-keepers, International Association of Office Men (1907) ''Business, the Magazine for Office, Store and Factory.'' (1908) p. 14

Furthermore, the review claimed that systematizing can be learned by means of the ''course'' in ''systematizing'' under personal direction of J.B. Griffith, who with the assistance of some experts, perfected the only practical plan of teaching systematizing and business organization offered by any institution. No other educational organization is prepared to offer such thorough instruction in the subjects embraced in this course. Like other business subjects, the only practical way to learn systematizing is by actual practice — actually systematizing a business - and that explains the success of the course.

The system concept

In the 1905 ''Systematizing'' Griffith (1905) opened with stating that, before we can intelligently take up the study of system, we must first consider what the term means. According to Griffith, the term system as applied to business is:
* the plan under which the work of the entire business is carried on;
* the plan for conducting each department and for taking care of every detail;
* the method of recording the various transactions of the business and collecting information in such form that as will most clearly exhibit the condition of any department.Bray (1905, p. 3-4)

Griffith continued that, the key note of system is economy. A perfect system handles the details in a given department with the least possible labor. It unites the plan for handling these details into a harmonious whole for the quick and economical conduct of that particular department. The systems for conducting the various departments must in turn be united into a plan for the operation of the entire concern.

The result, according to Griffith, is a thoroughly systematized business—a complete machine—in which every department is operated and each detail handled without friction and with the smallest possible expenditure if time labour and expense.

Graphic illustration of the organization

A really systematic organization, according to Griffith (1905), is one in which all of the departments work in harmony; in which every person in the establishment for the Executive head down, conforms to and performs his part of the work according to the system laid down. As applied to business concerns, the idea is best illustrated by a chart.Bray (1905, p. 14-16) Griffith explained:

At the end of the first chapter a chart is presented of a business organization (see image), which has similarities with both an organizational chart and mind map. The charts building blocks mention both business function (executive), departments (Mfg. Dept.; Selling Dept.; Accounting Dept.; etc.), records (Purchase Records; Sales Ledger; etc.), business activities (Time Keeping; Cost Accounting; etc.), and cost accounting classes (Labour Direct; Labour Indirect; etc.). In a similar way organization departments had been pictured by Griffith, such as the Purchasing Department, Stock Department and Advertising Department (see below).

File:Chart of Purchasing Department, 1905.jpg, alt=Chart of Purchasing Department, 1905, Chart of Purchasing Department, 1905
File:Chart of Stock Department, 1905.jpg, alt=Chart of Stock Department, 1905, Chart of Stock Department, 1905
File:Chart of Advertising Department, 1905.jpg, alt=Chart of Advertising Department, 1905, Chart of Advertising Department, 1905

The presentation of these kind of preliminary organizational charts was rather rare in those days. The work itself has similarities with the series of system charts, Horace Lucian Arnold had published two years earlier in his 1903 ''The Factory manager and accountant.''

It is remarkable, that these diagrams were also not republished in Griffith's later works. Griffith did develop the concept into a single chart of the Duties, Responsibilities and Authorities of Department Heads (see image), which was first published in Griffith's ''Administrative and industrial organization'' (1909), and republished in the 1910 ''Cyclopedia of Commerce, Accountancy, Business Administration,''

Despite these efforts to introduce these visual aids, they didn't become that popular yet. In the 1920s a survey revealed that organizational charts were still not common among ordinary business concerns, but they were beginning to find their way into administrative and business enterprises.

Charting factory layout and routing

Another feature Griffith demonstrated in his work ''Systematizing'' and later works is the charting of factory layout and routing. In ''Systematizing'' he gave one example in the third section about "The Stock Department," where as example he illustrated two arrangements, or routing diagrams, for handling lumber:

File:Arrangement for handling lumber (1), 1905.jpg , alt=Arrangement for handling lumber (I) , I: Arrangement for handling lumber
File:Arrangement for handling lumber (2), 1905.jpg , alt=Arrangement for handling lumber (II), II: Arrangement for handling lumber

Griffith explained, that the arrangement of the stock should be such that all unnecessary handling will be avoided. The references in Section Whether it be the store house of a country store or the supply room of an immense factory, the stock most often required should be placed where it can be readily removed, while that seldom called for may be stored in the more inaccessible corners. Where the concern is large enough to require several storage places, these storage places for the different classes of stock should be located with special reference to the departments in which the stock is used.Griffith (1905, p. 73-74)

Suppose the location of lumber yard, dry kiln, lumber shed and factory to be such as shown in Fig. I. Note How the lumber must travel back and forth, crossing the same space three times. Compare this with the arrangement shown in Fig. II.The lumber is taken the shortest possible distance and never goes over the same ground twice. Where buildings have been permanently located it may not be possible to change the general plan, but improvements can be made in nearly all cases. Take the plan in Fig. I: If the lumber yard was located immediately back of the dry kiln, at least 25 per cent of the labor of handling the lumber would be saved. The plans which we have shown illustrate examples of good and bad system in the location of one class of stock.

The layout and routing of a typical manufacturing plant are often more complex, see for example figure III, but the principles remain the same.

Documenting Policies and Procedures

In ''Systematizing'' Griffith showed to be a proponent of documenting policies and procedures. He argued:

As to the form that an order should take, the only satisfactory form is the written order ... If the request is in writing neither he sender nor the recipientis obliged to depend on his memory. The written order removes all chance of dispute as to its conditions, neither can there be a question of the authority of an order which bears the signature of the head of a department ... Another great advantage of the written order is that the head of a department may keep copies and follow-up each order to see that it is properly executed.

Yates (1988) commented that "the written order, whether to an individual or to the whole company, became part of organizational memory rather than just individual memory. It was then available for whatever future needs might arise."

Manufacturing Costs

The tenth section of ''Systematizing'' focussed on manufacturing costs. Griffith started explaining that a cost system in any manufacturing plant is a necessity, yet in those days there were many manufacturers who hadn't discover its importance. With cost systems Griffith meant a system by means of which the actual costs of manufacturing the product can be accurately determined.Bray (1905, p. 355-86)

At the end of the chapter Griffith present a chart of manufacturing cost (see image). This chart is a graphic illustration of the items which enter into the cost of manufacture, the manner in which these items are obtained and, finally, brought together in a permanent form. Griffith commented, that "a study of this chart will enable the student to outline a general plan for a cost system suited to the needs of his particular factory. When the general principles of the cost finding system are understood, it becomes merely a matter of detail to apply those principles to individual factories."

''Accountancy and business management,'' 1909/1921

In 1909 Griffith edited his first book series, entitled "Accountancy and business management." This book series was published in seven volumes and was prepared by a corps of auditors, accountants, attorneys, and specialists in business methods and management, and illustrated with over fifteen hundred engravings. The second edition was published 1921 by the American Technical Society in Chicago.

The table of contents of "Accountancy and business management" was:
:I. Organization, sales, credits, billing, shipping.
:II. Bookkeeping, accounting, partnerships, manufacturing, voucher records.
:III. Purchasing, labor records, cost finding, mail order, special forms.
:IV. Auditing, combinations, corporations, profits, practice.
:V. Contracts, agency, sales, bills, notes, evidence.
:VI. Correspondence filing, office devices, department stores.
:VII. Income tax problems, commercial arithmetic, index.

Griffith had written several section such as the first chapter on "business organization and control", in 1909 also published under the title "Administrative and industrial organization." Another chapter by Griffith, entitled "the voucher system and accounting charts," was in 1917 republished as "Corporation Accounts and Voucher System."

Griffith also wrote the section on "Purchasing and stores" co-authored with W. J. Graham, and the section on "Credits." A significant part of the co-authors and collaborators also participated in the 1910 "Cyclopedia of Commerce, Accountancy, Business Administration." Furthermore, also a significant part of the content, and almost all illustrations were used in that 1910 business encyclopedia.

Segregation of authority

In the article "business organization and control" in ''Accountancy and business management,'' (1909) Griffith argued, that the segregation of authority is a universal principles of organization. This purpose of segregation of authority is to simplify, as Charles Edward Knoeppel (1908) had argued:

While business as it is now conducted is not as simple as it was in the barter days, it must not be inferred that this segregation of authority is synonymous with complexity, for its very purpose has been to simplify, and that is what it has accomplished. It is only where this segregation has been the result of lack of thought and proper attention, or other like causes, that we find a complex and unsatisfactory condition of affairs. In fact, there is all about us sufficient evidence that many commercial enterprises are being conducted along lines that, as far as evolutional development is concerned, are several stages behind the times.Knoeppel (1908), "Maximum Production Through Organization and Supervision" p. 85-86; Cited in: J.B. Griffith (ed.),
Cyclopedia of Commerce, Accountancy, Business Administration...: Organization; sales; credits; statistics.
' American School of Correspondence. Vol. 1. 1910. p. 25

Griffith in the ''Cyclopedia of Commerce, Accountancy, Business Administration'' (1910) commented, that "when we go into all of the ramifications of business we find many establishments where minor variations of our plan of organization appear necessary, but in the final analysis, the fundamentals prove to be the same." The working authorities in a manufacturing Business and in a trading Business follow a same scheme (see images).

File:A Chart of Working Authorities in a Manufacturing Business, 1910.jpg, alt=Chart of Working Authorities in a Manufacturing Business, Working Authorities in a Manufacturing Business
File:Chart of Working Authorities in a Trading Business, 1910.jpg, alt=Chart of Working Authorities in a Trading Business, Working Authorities in a Trading Business

''Cyclopedia of Commerce, Accountancy, Business Administration,'' 1910

In 1910 the American School of Correspondence published the ''Cyclopedia of Commerce, Accountancy, Business Administration,'' and Griffith had been managing editor. Other authors and collaborators of this work were Robert Hiester Montgomery, Arthur Lowes Dickinson, William M. Lybrand of Coopers & Lybrand, Oscar E. Perrigo and Halbert Powers Gillette. Among the authorities consulted were Horace Lucian Arnold, Charles Buxton Going, Lawrence R. Dicksee, Francis W. Pixley, Charles U. Carpenter, Charles Edward Knoeppel, Harrington Emerson