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
In the other case, when the worker reaches 100 per cent. efficiency
on any one job, no matter how long it takes, his reward for that job
jumps 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. efficiency the reward is 33-1/3 per cent. of the job rate. To
this would be added, say, 5 per cent., thus making the reward 38-1/3
per cent. of the job rate.
(_d_) THE CLASSIFICATION OF WORK.
A very important matter in connection with the Reward System is that of
deciding the right kind of worker for the different classes of work.
For work requiring much skill and close application, or work which
requires skilled handling, the highest class of worker is necessary
and the job rates will be 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 special skill
or training may be suitable. But the point where one grade of labour
merges into another is not easily defined and needs very careful
consideration.
The circumstances of different trades vary so greatly that it is
impossible to apply any rules in such general notes as these. It must
be left to the employer, the workers, and their trade-unions, to settle
these grades between them, and from the trade practice there should not
be much difficulty.
One thing stands out--namely, the worker who has a continuously
high efficiency in any grade is easily distinguishable, and would be
selected to pass into a higher grade with higher wages when opportunity
occurred.
(_e_) REWARD DERIVED FROM INCREASED PRODUCTION.
It may be asked how it is that a firm can afford to begin paying reward
when a job is done in twenty hours, while the time study shows that the
same job can be done in twelve hours?
The reply is, First, that under ordinary day work the waste of time
on the job is so great that the job would certainly take longer
than twenty hours; second, that by giving reward there is a decided
incentive for the worker to do the 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 necessary to
observe these conditions when making a time study in order to find an
absolute basis on which to pay reward; fourth, for every hour saved
on the job the overhead charges are reduced proportionally, and this
lowers the works cost.
If a job takes twenty-four hours under day work, it is clear that, if
the same job be done in nineteen hours, some reward may be allowed,
while if it be done in fifteen hours an extra bonus may be given.
The training in efficiency habits of work is also very valuable, and
means economy all round. A man not used to these habits may expend
twice as much energy and produce half as much work as an efficient man.
(_f_) SAFEGUARDS.
Public-domain text, read in full here on John Shaqi.
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