Managing during inflation
Page 35
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I was interested in the report (CM May 2) of the RTITB seminar on "Managing during inflation" and somewhat surprised to find Mr Walker propounding John Humbles basic principles for Management by Objectives as a method of coping with the current situation.
In a service industry like road transport, Mb0 is difficult enough to operate in times of normal trading, and it becomes increasingly difficult in a period of inflation coupled with recession. The pitfalls may not arise at the stage of preparing the company's objectives, but will readily appear when setting targets for managers and other personnel. At a time when most hauliers cannot clearly forecast with any accuracy what their position will be one month hence, annual targets set for managers will be very vague, if not completely meaningless.
Mr Walker's address on "Inflation and financial management," quoted in your issue of April 11, was much more to the point and highlighted many of the danger areas for hauliers at the present time. These points taken in conjunction with your articles on "Helping you thrive, '75" should prove to be much more helpful to the industry, generally, than trying to contend with the intricacies of IVIb0.
G. G. MacDOUGALL, Director,
James Hemphill Ltd, Glasgow.