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
The time study is in itself an absolute safeguard against cutting
times. It is quite impossible for a job to be done in less than a
certain time by an average worker after all the elements have been
studied and tested. So long as the elements do not change, the times
must hold good, and a new study will confirm this if any doubt arises.
So that if the workers are all taking high rewards it is clear proof
that they are of high efficiency.
Suppose a firm cuts the time with the object of getting more profit.
One result is shown on p. 27. Another result is that the good workers
will leave, because efficient men can always get good jobs elsewhere.
As a matter of fact, however, rates are practically never cut. It
does not pay to cut rates, because if efficient men leave, and only
inefficient men are left, the firm loses heavily, and their own time
studies together with the general efficiency of the workers show how
valuable their men are.
This is why the time study is a decided safeguard against cutting rates.
One method of rate revision sometimes occurs. When a job is found to
be rated too highly from some cause or other, and the worker is taking
excessive reward on that job, a change is made in the conditions 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, under the new
conditions the job is still on exactly the same basis as all other jobs
in the factory, and standard efficiency with its proportionate reward
can be made just as easily as in other cases.
There is another safeguard. The relation between standard and reward
times is so arranged that when a worker reaches standard he gets at
least 25 per cent. of the job rate. This is an accepted principle, and
must be conceded always. It is an irreducible minimum in connection
with the Reward System.
It may be said that, however much the principle is accepted, it does
not follow that the employer will stick to it.
But he must! If he does not do so, what is the alternative? Either he
gives less than 25 per cent. reward or he gives none until the standard
time is reached. In the first 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 worker gets no
reward until standard time is reached, the effort required by the men
is so great in order to get reward that it is not worth it, and the men
do not try for it.
So that this principle must be accepted by the employer whether he
likes it or not, if the system is to be a success.
Public-domain text, read in full here on John Shaqi.
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