A rational wages system : $b some notes on the method of paying the worker a reward for efficiency in addition to wages — John Shaqi
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
Now, suppose for some reason a worker takes longer than reward time to
do a job, or suppose he produces less than reward quantity. It only
means that he gets no reward. His day wages, 36s. or 24s. a week,
or whatever it may be, are absolutely guaranteed. Whatever happens,
his day wage 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 earns his day wage, and in this respect the
day wage standard is equivalent to reward production or reward time. If
the worker does less than these he is not earning his wage, although he
gets it, and such a case calls for the immediate attention of the firm
as well as of the worker.
Let us sum up the foregoing points:
1. The time study gives all the workers the same opportunity of earning
reward.
2. Reward is paid for all production above a certain minimum.
3. Reward begins at such a production that everyone should be able to
earn some reward.
4. The standard production is so calculated that all workers should
reach it by diligence and careful attention to the instructions.
5. No matter how large a worker's reward may be, prices cannot be cut.
6. The worker is safeguarded by the conditions of the system.
7. The day wage is guaranteed even if the production be less than the
reward point.
8. As reward is proportional to profit (the higher the reward the
greater the efficiency, and the greater the efficiency the greater the
firm's profit), the worker is encouraged to earn high reward. This can
only be done by good conditions and freedom from fatigue, and therefore
the comfort of the worker is assured by the principles of the system.
(_c_) SPECIAL REWARD FOR HIGH EFFICIENCY.
Besides the reward described in the foregoing explanation, special
reward is given to all high efficiency workers--that is, to those who
reach 100 per cent. efficiency all through the week.
This special reward takes the form of paying the worker a bonus either
in the form of a sum of money or an additional percentage on the
standard time.
If the worker's efficiency reaches 100 per cent. or more for any one
week, and the hours on reward are, say, forty or more, a cash reward of
1s. or 2s., or other suitable amount depending on the status, etc., 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 on reward
during the week, and his efficiency for that hour was 100 per cent., he
would get the special reward, and this would be absurd as well as being
unfair to workers who had been on reward all the week.
Public-domain text, read in full here on John Shaqi.
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