m
Poor Management Seen In Today's Great Corporations
f BESTS IN HOSPITAL -Mrs. Sherri Fink
bine of Phoenix, Ariz., listens lo a radio
broadcast on earphones in her hospital bed
;at a clinic in Stockholm, Sweden. Mrs.
; Finkbine, who took the drug thalidomide
early in her pregnancy, underwent an
tion Aug. 18 because she feared her
would be deformed. The photo was
by her husband. (UPI)
abor
baby tuken
Br FREDERICK H. TREESH
United Press International
New York - W! - The
trend in American business
this decade undoubtedly will
be the breakup of the biggest
corporations, according to
Jackson Martindell, advisor
to corporate management.
That appraisal is based on
Martindeil's belief that most
of the biggest companies are
too large to be managed ef
fectively. "Big business, big unions
and big government are ruin
ing this country," said Mar
tindell, chairman of the board
of the American Institute of
Management.
"Bigness results in inef
ficiency and corruption, like
in some of our city adminis
trations. Size is destroying
some of our cif s."
Breakup of Interest
Martindell said lie believes
a breakup of some of Amer
ica's biggest businesses would
be in the best interest of man
agement, employees, slock
holders and the public.
When does a corporation
become too big?
"Certainly it is too big
when it has too many employ
ees, too many products, seeks
too much political power and
is dishonestly run," Martin
dell said.
"When you have a com
pany that produces 200,000
different items, you've Rot a
situ tion where the presi
dent couldn't possibly know
what all lie produces. If ie
docpn'l know that, what
could he know?"
Martindell said that as a
rule of thumb no corporation
should be more than a $500
million operation. That, he
said, is the level when a com-
SECTION"!
pany stacts to fall apart.
What has been the result
of too much bigness?
"Businesses become poorer
managed every day," said
Martindell, whose manage
ment institute lias ana
lyzed manage ment tech
niques and trends for 14
years. "The men running in
dustry today are old, tired,
rich and lazy."
Study Management
Martindell said the Ameri
can Institute of Management
undertook in 1948 to study
30,000 businesses lo find out
which were excellently man
aged. He said it found a great
deal of interest in nanage
mcnt, a great awareness of
the need for effective man
agement and a large supply
PAGES 1 to 14
MedfordlWTribune
MTrS'ORDToRliGdNTTHURSDAY. AUGUST 23, 19H2
of real ability among man
agers.
"But," he said, "all three
have diminished in the last
14 years.
"People are not becoming
more stupid, nor are they be
coming less well-trained.
They have become less hon
epl, less aggressive, less in
dustrious and less willing to
assume leadership."
As a result, Martindell
said, companies which 14
years ago had anywhere from
three to 10 men who could
assume to leadership now are
lucky lo have one.
He enumerated bigness, a
growing gap in liaison and
understanding between lop
management and lower-level
employees and a lack of ad
versity as the biggest cause
of declining management ca
pabilities.
Martindell said inflation,
which permeates an outward
appearance of prosperity,
CITY AREAS
London - The city of Lon
don occupies about one-third
as much area as New York;
one-half as much as Chicago.
Suit Dismissed in
'The Lovers' Case
Portland - tlW - The case
against a Portland theater
manager for showing the con
troversial French film "The
Lovers" officially was drop
ped Wednesday.
Circuit Judge Dean F. Bry
son ordered the case dismissed
and awarded $365 in court
costs to Paramount Theater
manager Merle Meaner.
The Multnomah county dis
trict attorney's office last Oct.
6 stopped the showing of the
film at the Paramount under
Oregon's new obscenity law.
But the State Supreme Court
ruled last July 18 that the law
does not apply to movies.
glosses over the normal char
acter-building adversity in
business. He classifies such
adversity as "business belly
aches."
"In the last 30 years, few
businessmen have had any
thing to make men out of
them." Martindale said.
"They have no chance to get
the kind of experience which
is character-building.
"Adversity makes men out
of boys."
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