A rational wages system : $b some notes on the method of paying the worker a reward for efficiency in addition to wagesAtkinson, Henry
General
A rational wages system : $b some notes on the method of paying the worker a reward for efficiency in addition to wages
Atkinson, Henry
Incentives in industry -- Great Britain; Wages -- Great Britain
-------------+---------+-------+-------+-------+--------------------------
| | | | | _Works Costs at 2s.
| | | | | per Hour, including
|_Time |_Time |_Time |_Reward| Labour._
|allowed._|taken._|saved._| at |
| | | | 10d._ +--------------------------
| | | | |_Cost._|_Reward._|_Total._
+---------+-------+-------+-------+-------+---------+--------
| Hours. | Hours.| Hours.| s. d. | s. d.| s. d. | s. d.
Original time| 5 | 4 | 1 | 10 | 8 0 | 10 | 8 10
Cut to | 4 | 3-1/2 | 1/2 | 5 | 7 0 | 5 | 7 5
" | 3-1/2 | 3 | 1/2 | 5 | 6 0 | 5 | 6 5
" | 3 | 7 | -- | -- | 14 0 | -- | 14 0
Increased to | 4 | 7 | -- | -- | 14 0 | -- | 14 0
" " | 5 | 3-1/2 | 1-1/2 | 1 3 | 7 0 | 1 3 | 8 3
Cut to | 4-1/2 | 7 | -- | -- | 14 0 | -- | 14 0
-------------+---------+-------+-------+-------+-------+---------+--------
In this case the original piece time allowed for the work was five
hours, this being an estimate based on the time taken when working
under day work. The men were paid at the rate of 10d. per hour, and the
works costs, including labour, amounted to 2s. per hour. Bonus was paid
on the time saved.
The workers completed the job in four hours, a reduction of one hour
on the time set, and thereby earned a bonus of 10d. The time was cut
to four hours, and the work 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 hours. Again the time was
cut, but the patience of the workers had reached its limit, and the
time taken was seven hours, with a correspondingly increased works cost.
The time was immediately increased to four hours, but with no effect.
On increasing the time to the original five hours the workers completed
the job in three and a half hours, and earned a very good bonus. Once
again the time was cut, with the result that the workers' suspicion was
aroused, and the time promptly jumped to seven hours. The workers had
learned their lesson!
Neither worker nor employer can be satisfied with such a result, and
mutual suspicion is the natural outcome. Yet all rates must be juggled
with in this manner in the absence of a method whereby the time may be
accurately determined.
It follows that, in the first place, the firm will not cut prices,
and, in the second, that the first-class worker may earn the highest
reward in his power, with the knowledge that he is not injuring the
welfare of his fellow-workers in any way.
Public-domain text, read in full here on John Shaqi.
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