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
By this method reward begins fairly early, so that all workers should
be able to get some reward. It progresses very slowly from 66.6 per
cent., and at 80 per cent. is about 3-1/4 per cent. of the wage rate.
Then it increases more quickly, and at 90 per cent. efficiency it is 10
per cent. of the wage rate, at 95 per cent. efficiency it is about 15
per cent., and at 100 per cent. efficiency it is 20 per cent.
One thing must be noticed: The reward above 100 per cent. efficiency
is based on standard time, and not on reward time. This means that the
worker gets a bonus of 20 per cent. on the time worked, and in addition
to that the full rate of wages for the time he saves above standard
time. As an example, take a job with a standard time of 20 hours:
[Illustration: EMERSON]
_Case I._
Suppose job done in 22 hours.
Efficiency 91 per cent.
Bonus (see diagram) 10 "
10 per cent. of 22 hours 2.2 hours.
Reward: 2.2 hours at 10d. 22 pence.
Wages: 22 hours at 10d. 220 "
Total payment for 22 hours 242 "
Hourly rate for job (wages + reward) 11 "
_Case II._
Suppose job done in 18 hours.
Efficiency 111 per cent.
20 per cent. on 18 hours 3.6 hours.
Time saved (20-18) 2.0 "
Reward: 5.6 hours at 10d. 56 pence.
Wages: 18 hours at 10d. 180 "
Total payment for 18 hours 236 "
Hourly rate for job (wages + reward) 13.1 "
This method enables the worker to get reward at a comparatively low
efficiency. The reward is not much to begin with, but it is enough to
induce the worker to try and get a higher efficiency. When standard
time is reached, the reward is not enough, but beyond that it increases
rapidly.
(_h_) THE ROWAN SYSTEM.
This method differs from all others in the variation of reward earned.
It is extremely simple in calculation, as the worker gets 10 per cent.
increase in wages for every 10 per cent. of time saved. He cannot save
more than, say, 99 per cent. of the time on the job, because when 100
per cent. is saved it means that the job is done in no time at all.
[Illustration: N^o. 1]
[Illustration: N^o. 2]
Suppose the time allowed is 10 hours. If it be done in 5 hours, 50 per
cent. of the time has been saved, and the worker gets 50 per cent.
increase of wages for the 5 hours he has worked. If the job be done in
over 10 hours, day wage, say 10d. per hour, is paid for all the time
taken. If done in 9 hours, 11d. per hour is paid; if in 8 hours, 1s.
per hour; if in 7 hours, 13d. per hour; and so on.
The efficiency is the standard time (time allowed) divided by the time
taken. If a line be plotted of efficiencies and rates-paid, the line
is not a straight one, as in other cases, but a curve as shown in the
diagram.
Public-domain text, read in full here on John Shaqi.
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