A Rational Wages System

Reward

he following principles to be essential when gene

cy is obtained when the

, and efficiency cannot be maint

environment mus

be considered in determining th

e no penalties

ged and suitable rewards given

ch should take the form of an addition to wages

to discover conditions which give every worker t

the day rate should be in

ages must be absolutely guaranteed to th

me or less expenditure in wages and works costs. That it also gives the worker more income, better health, less fatigue, greater contentment, are happy circumstances that make for a rational and equable understanding between employer and work

ances can these princip

we have not far to seek. The recorded results have been unified into a system which has been and which may be applied to all sorts and c

cy. There is a guaranteed minimum which is equal to his ordinary

ency without undue strain or discomfort during his work, every detail

machine on which it must be done have been studied and timed; the best tools for the purpose have been selected; the right speeds have been chosen; the correct depth and spee

ry worker who is put on it, and every job is put on a time and condit

orker, the amount of work done, and in consequence the amount of reward

know just how the right times and conditions are arrived at, and what a

l principles; an example with fu

hich it is to be made, the method of manufacture, are carefully

d to the time study engineer in order that he may see the finished and unfin

entific studies; he should be able to divide the work up into elements suitable for the machine on which the work has to be done, and to suggest improvements in the methods of performing it; he must be able to see that the work is carried out in the most expeditious way; he should be well educ

s engineering ability, his sympathetic judgment, and his broad outlook on th

ly high, if he is to fulfil his duties satisfactorily to himself and

on in order that the worker may become familiar with it. This also enables the time stu

ge that occurs-for instance, when the machine is stopped or another tool is brought into position-is the end of one element and the beginning of a

take. These are averaged out when a certain number have been timed, and the average is assumed to be the correct time for each element. Th

one that puts all workers on exactly the sa

Again, the skill of the worker increases very considerably, and he himself finds quicker methods of doing the work. All that is claimed for the time study method is that the dividing up of the operation into elements, and tim

that any time so obtained may be improved on when the worker becomes thoroughly used to the job, and the other being that a good average worker is chosen for th

egularly by every worker, and this is taken into

base time. This allowance depends on the nature of the work, greater allowances being made for jobs that necessita

sis of Rew

time. It is so fixed in relation to base time that every worker put on that work should be

tinuously 100 per cent.

eached by a worker who follows the

aches a high efficiency. Again, sometimes one worker is naturally slower than another, and although his work is good he can reach 100 per cent. e

to become as highly efficient as possible, reward be

method, and because it is frequently used as the reward point. Any

or standard production in order to obtain a new figure, which is called "rew

f examples showing the worki

I

e 12 hou

= base + 25%) 1

andard + 33?%) 20

16? hours

d 3? hour

r hour

= 2s. 8d. 4·

of 48 hours 7

wage 36s. 0

ings 43s.

ncy 91%

I

ntity 40

ity (= base -

(= standard -

orked

y produ

ntity for

quant

t 27 for

week of 4

day w

earnin

iency

is, and the third on a quantity basis. T

reased. In view of this increase the worker will want to know more about the conditions under which

made regularly, and the workers have a greater degree of comfo

provided. The work is brought to the machine and taken away by labourers, the tools are all specially designed and exactly suited to the work. Instruction cards are given to the work

rker to reach a high efficiency, as this mea

nd one who appreciates the time study principle must be selected for the study. If this were not done, a false time might be obtained, and this would lead to doubts as to whether the times o

ver altered so long as the

ppose the price was lowered because of this high reward. The general efficiency of all the workers would fall immediately, an

hat happens under an ordinary bo

i

wed.

en.

d. R

Works Co

ur, in

bo

Reward

Hours. s. d. s

me 5 4 1 10

3? ? 5

? 3 ? 5

7 - - 1

to 4 7 - -

5 3? 1? 1 3

7 - - 14

ased on the time taken when working under day work. The men were paid at the rate of 10d. per hour

ork was done in three and a half hours, the workers earning a bonus of 5d. It was then cut to three and half hours, and the workers completed the job in three hou

orkers completed the job in three and a half hours, and earned a very good bonus. Once again the time was cut, with the resul

uspicion is the natural outcome. Yet all rates must be juggled with in this m

cond, that the first-class worker may earn the highest reward in his power, with

e is not interfered with. It must be kept in mind always that-Day wages are for attendance; reward, is for efficiency. The two things are distinct, and it is advisable to pay wages and reward earnings at different times. The firm must see to it that when the worker is in the works he

up the fore

l the workers the same opp

r all production abo

oduction that everyone should

that all workers should reach it by diligenc

a worker's reward may b

eguarded by the cond

ed even if the production b

ency the greater the firm's profit), the worker is encouraged to earn high reward. This can only be done by good con

eward for Hig

cial reward is given to all high efficiency workers-that is, t

orker a bonus either in the form of a sum of money

, of the worker, is given in addition to the reward earned by production. It is necessary to base this special reward on the number of hours worked; otherwise, if the worker happened to be only an hour or so

5 per cent. or 10 per cent., or whatever special proportion be decided upon. If the reward point be 75 per cent., then at 100 per cent. efficie

assificati

Reward System is that of deciding the right k

high. For work which is automatic or semi-automatic, boys or girls may be employed. For work such as rough drilling or heavy unskilled handling, men who have no

uch general notes as these. It must be left to the employer, the workers, and their trade-unions, t

iciency in any grade is easily distinguishable, and would be selected t

ved from Increa

ying reward when a job is done in twenty hours, while the ti

work in a shorter time; third, that twelve hours is the shortest possible time with a good average worker working under the most favourable conditions, and this happens so seldom that it may be considered accidental, though it is neces

if the same job be done in nineteen hours, some reward may be allow

means economy all round. A man not used to these habits may expend tw

afegu

done in less than a certain time by an average worker after all the elements have been studied and tested. So lo

ing high rewards it is clear proof

One result is shown on p. 27. Another result is that the good workers

se if efficient men leave, and only inefficient men are left, the firm loses heavily, and their ow

dy is a decided safeguar

itions of the work and the job is restudied. Two reasons are given for this procedure: first, that it is unfair to the other men for one man to be taking exceptionally heavy reward, and, second, und

a worker reaches standard he gets at least 25 per cent. of the job rate. This is an accepted princ

principle is accepted, it does not fol

case, if he gives less than 25 per cent., reward is not worth working for, and the worker will not trouble about it, thereby rendering the whole system useless. If the wo

by the employer whether he likes it or

re not going to spoil the whole business by getting the workers up against them. It is more to the firm's interest than to the worker's t

on to Servi

em does not pretend to be by any means a solution

or the Reward System is that it provides a basis upon which a good understandi

entirely successful. But if an employer endeavours to foist the time study and Reward System on an existing rule-of-thumb organisation, it will undoubtedly fail, and will cause deep suspicion in the mind of the w

at it is to his direct financial benefit, and there is no reason why he should. He, on h

he rational organisation of production, and it cann

and for unfair conditions to creep in. This is why the worker should understand the system,

some of the things

one in half the time, but it must be remembered that conditions are quite different and the incentive is lacking. The remedy

as much reward as he can, but if he feels tired out at the end of the day he is doing too much, and he will wonder why his efficiency

is very bad policy on the part of the employer, and a

ere is a possibility of not receiving the allowance. It is possible, also, that the superintendent may refuse allowances, and so dissatisfaction results. Day time allowances and allowances for exceptional conditions (such as bad metal), which increase the machine time, are open to abuse. If a worker reach 99·5 per cent. efficiency or thereabouts, it is quite possible that an unfair allowance of

eces as spoiled, it may be the fault of a bad adjustment which the worker cannot help. It is the worker's duty to stop his machine and draw attention to the fault; but if it can only be found on close

t be insisted on. On large work it is simple enough, but on small pa

quently necessary, and if the change is not properly recorded it may mean that cycle time-the time of all the el

tructions, such cases, theoretically, should never occur; but they do, because it is impossible to get every job on exactly the same basis, and the worker after a little experience knows what jobs are easy and what are difficult. In some shops the experiment of deducting inefficiency from efficiency has been tried. That is, suppose a worker was 10 p

ut the dividing line between classes of work is sometimes a very fine one. Skilled handwork must be given to the skilled worker, of course; but it is imposs

x it so that the worker cannot reach standard time, and that means a loss of efficiency and of reward. This is essenti

ing of the system, and it is to the interests of both employer and wo

lations can creep in, and the worker must watch for these

ill due to the

n cannot attain the same skill as a day work man, and tha

sider this

in a day work shop; is he any less efficient under day

any disadvantage to him? It is clear that such an experience is a distinct advantage. But has he the same knowledge and

ly worked out give him far more knowledge than if he is compelled to work them out for himself. The men who work out these instructions are highly paid men who have all the advantages of a shop training and a scie

t of the case. The brains of these men are in the methods and instructions used by the workman

obs are done; of the best and most satisfactory tools, both shape and material; of proper speeds and p

his work is too dull and mechanical!" That has been said, but not by an

these conditions. When a man knows he is being paid for efficiency, the work immediately ceases to be dull; as soon as a man is interested in producing as much work as he can,

e knows he gets a reward for his efficiency, when he knows that rates cannot be cut, when he knows he is doing no injury to his fellow-workers by earning big rewards, he is happier at hi

but such a one can "find himself" much more certainly under the Reward System than under any other. In many cases, too, a very moderate workman will find some one particular j

nt shares-namely, it is to the direct and immediate benefit of b