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 this case the reward consists of payment for half the time saved,
and reaches 30 per cent. increase on the wage rate at 100 per cent.
efficiency.
It is suitable for many classes of work, and neither worker nor
employer suffer too much in the event of an inaccurate time study.
Reward begins early and is a direct incentive to efficiency, but there
is not the same urge towards the 100 per cent. line as in the case of
System No. 1. Usually there is an extra bonus given, say 5 per cent.,
to those reaching standard time, and this takes the form of a lump sum,
so that the angle of the line of increase is not interfered with.
[Illustration: N^o. 2]
(_c_) REWARD SYSTEM NO. 3.
Reward in this case begins at 80 per cent. efficiency and all the time
saved is paid for.
It is a method suitable for high-class workers and necessitates a very
accurate time study. It needs a decided effort to get reward, but once
reward begins it increases rapidly. An inaccurate time study means
either little or no reward if the inaccuracy results in increasing the
difficulty of the job; while if it makes the job easy, then excessive
rewards are earned.
There is usually an extra bonus of 10 per cent. when standard time is
reached.
The system is suitable for automatic work where there cannot be a great
variation in efficiency, and where the operations are to a large extent
taken out of the hands of the worker.
This method of payment is now adopted by Mr. Allingham after
conference with trade-union officials, as it gives the worker the whole
of the time saved.
[Illustration: N^o. 3]
(_d_) REWARD SYSTEM NO. 4.
This is a diagram illustrating the example given in the foregoing
description of the reward system.
Reward begins at 75 per cent. efficiency, and when standard efficiency
is reached the proportion of reward to job rate is 33-1/3 per cent.
At this point a bonus of 5 per cent. is given, and the line of reward
above this point is parallel to the line below it, but 5 per cent.
higher.
All the time saved is paid for, and from this point of view it is more
satisfactory to the worker.
Diagrams 1 to 4 are similar in principle to the Halsey bonus method,
the vital difference being that Halsey bases his standard time on the
average time taken under ordinary day or piece work conditions instead
of on a time study.
[Illustration: N^o. 4]
(_e_) THE TAYLOR SYSTEM.
This is the system advocated by Mr. Taylor, the originator of
scientific management, and hence of the Reward System.
A certain piece rate is paid until standard time is reached. At that
point there is a jump to another higher rate, say from 10d. to 14d.,
a jump of 40 per cent. The worker gets this increase for all the work
done, and the increased rate is paid on the rest of the work.
The worker makes strenuous efforts to reach 100 per cent. efficiency
because of the great increase, and also because he suffers directly
when he fails to obtain it.
Public-domain text, read in full here on John Shaqi.
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