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piece rate when he is skilled.

Lastly, as the man can increase his output, with continued experience, above that of the task, he receives a differential rate piece on the excess quantity, this simply making an increasing stimulus to exceed his previous best record.

All Task Systems Investigate Loss of Bonus. — Under all these bonus forms of wages, if the bonus is not gained the fact is at once investigated, in order that the blame may rest where it belongs. The blame may rest upon the workers, or it may be due to the material, which may be defective, or different from standard; it may be upon the supervision, or some fault of the management in not supplying the material in the proper quality, or sequence, or a bad condition of tools or machinery; or upon the instruction card. The fact that the missing of the bonus is investigated is an added assurance to the workman that he is getting the "square deal," and enlists his sympathy with these forms of bonus system, and his desire to work under them. The fact that the management will investigate also allows him to concentrate upon output, with no worry as to the necessity of his investigating places where he has fallen short.

Necessity for Workers Bearing This Loss. — In any case, whether the blame for losing the bonus is the worker's fault directly or not, he loses his bonus. This, for two reasons; in the first place, if he did not lose his bonus he would have no incentive to try to discover flaws before delays occurred; he would, otherwise, have an incentive to allow the material to pass through his hands, defective or imperfect as the case might be. This is very closely associated with the second reason, and that is, that the bonus comes from the savings caused by the plan of management, and that it is necessary that the workers as well as the management shall see that everything possible tends to increase the saving. It is only as the worker feels that his bonus is a part of the saving, that he recognizes the justice of his receiving it, that it is in no wise a gift to him, simply his proper share, accorded not by any system of philanthropy, or so-called welfare work, but simply because his own personal work has made it possible for the management to hand back his share to him.

Users of Any Task System Appreciate Other Task Systems. — It is of great importance to the workers that the users of any of these five methods of compensation of Scientific Management are all ready and glad to acknowledge the worth of all these systems. In many works more than one, in some all, of these systems of payment may be in use. Far from this resulting in confusion, it simply leads to the understanding that whatever is best in the particular situation should be used. It also leads to a feeling of stability everywhere, as a man who has worked under any of these systems founded on time study can easily pass to another. There is also a great gain here in the doing away of industrial warfare.

Shorter Hours and Holidays Effective Rewards. — Probably the greatest incentive, next to promotion and more pay, are shorter hours and holidays. In some cases, the shorter hours, or holidays, have proven even more attractive to the worker than the increase of pay. In Shop Management, paragraph 165, Dr. Taylor describes a case where children working were obliged to turn their entire pay envelopes over to their parents. To them, there was no particular incentive in getting more money, but, when the task was assigned, if they were allowed to go as soon as their task was completed, the output was accomplished in a great deal shorter time. Another case where shorter hours were successfully tried, was in an office where the girls were allowed the entire Saturday every two weeks, if the work was accomplished within a set amount of time. This extra time for shopping and matinees proved more attractive than any reasonable amount of extra pay that could be offered.

Desire for Approbation an Incentive. — Under "Individuality" were discussed various devices for developing the individuality of the man, such as his picture over a good output or record. These all act as rewards or incentives. How successful they would be, depends largely upon the temperament of the man and the sort of work that is to be done. In all classes of society, among all sorts of people, there is the type that loves approbation. This type will be appealed to more by a device which allows others to see what has been done than by almost anything else. As to what this device must be, depends on the intelligence of the man.

Necessity for Coöperation a Strong Incentive. — Under Scientific Management, many workers are forced by their coworkers to try to earn their bonuses, as "falling down on" tasks, and therefore schedules, may force them to lose their bonuses also.

The fact that, in many kinds of work, a man falling below his task will prevent his fellows from working, is often a strong incentive to that man to make better speed. For example, on a certain construction job in Canada, the teamsters were shown that, by their work, they were cutting down working opportunities for cart loaders, who could only be hired as the teamsters hauled sufficient loads to keep them busy.

Value of Knowledge Gained an Incentive to a Few Only. — Extra knowledge, and the better method of attack learned under Scientific Management, are rewards that will be appreciated by those of superior intelligence only. They will, in a way, be appreciated by all, because it will be realized that, through what is learned, more pay or promotion is received, but the fact that this extra knowledge, and better method of attack, will enable one to do better in all lines, not simply in the line at which one is working, and will render one's life more full and rich, will be appreciated only by those of a wide experience.

Acquired Professional Standing a Powerful Incentive. — Just as the success of the worker under Scientific Management assures such admiration by his fellow-workers as will serve as an incentive toward further success, so the professional standing attained by success in Scientific Management acts as an incentive to those in more responsible positions.

As soon as it is recognized that Scientific Management furnishes the only real measure of efficiency, its close relationship to professional standing will be recognized, and the reward which it can offer in this line will be more fully appreciated.

Punishments Negative and Positive. — Punishments may be first negative, that is, simply a loss of promised rewards. Such punishments, especially in cases of men who have once had the reward, usually will act as the necessary stimulus to further activity. Punishments may also be positive, such things as fines, assignment to less pleasant work, or as a last resort, discharge.

Fines Never Accrue to the Management. — Fines have been a most successful mode of punishment under Scientific Management. Under many of the old forms of management, the fines were turned back to the management itself, thus raising a spirit of animosity in the men, who felt that everything that they suffered was a gain to those over them. Under Scientific Management all fines are used in some way for the benefit of the men themselves. All fines should be used for some benefit fund, or turned into the insurance fund. The fines, as has been said, are determined solely by the disciplinarian, who is disinterested in the disposition of the funds thus collected. As the fines do not in any way benefit the management, and in fact rather hurt the management in that the men who pay them, no matter where they are applied, must feel more or less discouraged, it is, naturally, for the benefit of the management that there shall be as few fines as possible. Both management and men realize this, which leads to industrial peace, and also leads the managers, the functional foremen, and in fact every one, to eliminate the necessity and cause for fines to as great an extent as is possible.

Assignment to Less Pleasant Work Effective Punishment. — Assignment to less pleasant work is a very effective form of discipline. It has many advantages which do not show on the surface, The man may not really get a cut in pay, though his work be changed, and thus the damage he receives is in no wise to his purse, but simply to his feeling of pride. In the meantime, he is gaining a wider experience of the business, so that even the worst disadvantage has its bright side.

Discharge To Be Avoided Wherever Possible. — Discharge is, of course, available under Scientific Management, as under all other forms, but it is really less used under Scientific Management than under any other sort, because if a man is possibly available, and in any way trained, it is better to do almost anything to teach him, to assign him to different work, to try and find his possibilities, than to let him go, and have all that teaching wasted as far as the organization which has taught it is concerned.

Discharge a Grave Injury to a Worker. — Moreover, Scientific Management realizes that discharge may be a grave injury to a worker. As Mr. James M. Dodge, who has been most successful in Scientific Management and is noted for his good work for his fellow-men, eloquently pleads, in a paper on "The Spirit in Which Scientific Management Should Be Approached," given before the Conference on Scientific Management at Dartmouth College, October, 1911:

"It is a serious thing for a worker who has located his home within reasonable proximity to his place of employment and with proper regard for the schooling of his children, to have to seek other employment and readjust his home affairs, with a loss of time and wages. Proper management takes account not only of this fact, but also of the fact that there is a distinct loss to the employer when an old and experienced employé is replaced by a new man, who must be educated in the methods of the establishment. An old employé has, in his experience, a potential value that should not be lightly disregarded, and there should be in case of dismissal the soundest of reasons, in which personal prejudice or temporary mental condition of the foreman should play no part.

"Constant changing of employés is not wholesome for any establishment, and the sudden discovery by a foreman that a man who has been employed for a year or more is 'no good' is often a reflection on the foreman, and more often still, is wholly untrue. All working men, unless they develop intemperate or dishonest habits, have desirable value in them, and the conserving and increasing of their value is a duty which should be assumed by their superiors."

Punishment Can Never Be Entirely Abolished. — It might be asked why punishments are needed at all under this system; that is, why positive punishments are needed. Why not merely a lack of reward for the slight offenses, and a discharge if it gets too bad? It must be remembered, however, that the punishments are needed to insure a proper appreciation of the reward. If there is no negative side, the beauty of the reward will never be realized; the man who has once suffered by having his pay cut for something which he has done wrong, will be more than ready to keep up to the standard. In the second place, unless individuals are punished, the rights of other individuals will, necessarily, be encroached upon. When it is considered that under Scientific Management the man who

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