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 order to find the amount of reward at any efficiency, read off
the efficiency on the bottom line, run a pencil along the line
corresponding to this efficiency until it touches the graph, then run
the pencil along horizontally until it reaches the vertical scale. Read
off the percentage of reward on the vertical scale.
It will be seen at once that any efficiency below the reward point
means that no reward is earned, but that there is no reduction of day
wages. (The Taylor and Gantt methods are exceptions to this rule.)
The diagram on p. 88 is a descriptive one. The first column shows wages
plus reward on a wage basis of 8d. per hour.
The second column shows wages plus reward on a wage basis of 10d. per
hour.
The third column shows the proportion of the reward to the day wage for
any efficiency, the day wage being considered 100 per cent.
The efficiencies are shown along the bottom line, and the 100 per
cent. efficiency line is dotted.
[Illustration: DESCRIPTIVE DIAGRAM]
Two methods of wage payment are plotted on this diagram, the full line
being Reward System No. 1, and the dotted line the Taylor System.
For convenience the following diagrams are enlarged: Nos. 1, 2, 3, 4,
and the Emerson diagrams consist of the rectangle ABCD, and the Taylor
and Gantt diagrams consist of the rectangle EFGH. The Rowan diagram
is to the same scale as the Taylor and Gantt diagrams. The relation
between the vertical and horizontal scales has also been altered to
make the readings clearer.
(_a_) REWARD SYSTEM NO. 1.
In this method, reward begins at 62.5 per cent., and half the time
saved is paid for until standard time is reached. At that point and
above it two-thirds of the time saved is paid for.
Reward begins early, and increases definitely until standard time is
reached. Then there is a considerable jump, and after that the reward
goes on regularly at a higher rate than before.
This method is, in the opinion of the writer, the best of all reward
payments, and carries out the spirit of reward principles better than
any other.
The worker gets some reward, however little, and there is a direct
incentive to reach 100 per cent. efficiency owing to the rapid increase
of reward at that point. If he gets nothing, then he either feels
ashamed of his laziness, or, what is more likely, he inquires into the
reason why he has received no reward. This is just what the employer
wants, as it discovers inefficiencies in connection with machinery or
supplies or with other processes or routines.
At the same time, an inaccurate time study neither penalises the worker
too much on the one hand, nor causes excessive reward on the other.
Yet again, the worker always gets his day rate even though his
efficiency falls below the reward point.
It is eminently suitable for both employer and worker.
[Illustration: N^o. 1]
(_b_) REWARD SYSTEM NO. 2.
Public-domain text, read in full here on John Shaqi.
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