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
Reward rises rapidly at first, but it gets less and less as efficiency
increases, which is in direct opposition to reward principles.
The method has little to recommend it except the simplicity of
reckoning the reward payment.
It will be seen that the employer cannot possibly overpay the worker,
no matter what his efficiency.
No. 1 is the ordinary diagram, 100 per cent. efficiency being the point
where bonus begins. This point is based on an estimated time, not on a
time study.
No. 2 is a diagram drawn to compare the Rowan System with the Reward
System. Assuming that the worker under the Rowan System will usually
earn 20 per cent. in excess of his day wages, this has been used to
determine the 100 per cent. efficiency line, and the curve has been
drawn as before.
(_i_) DAY RATE.
The thick horizontal line marks the day rate of payment for work done.
It is the same at all efficiencies, and there is no inducement whatever
for a worker to increase his efficiency. Under such conditions the
average worker will only do enough work to enable him to keep his job,
and will resist all attempts to find out whether the work may be done
more efficiently.
(_j_) PIECE WORK.
The straight piece work system means that the worker gets so much
for each piece produced no matter how long it takes to produce it.
Therefore the faster the work is done the more money is earned.
Efficiency is based on the quantity a worker ought to do in order to
earn the standard rate of wages. Assuming he gets 10d. an hour, then
the payment for the work done ought to equal 10d. when working at
the normal rate--namely, 100 per cent. efficiency. If less than this
is earned, efficiency falls below 100 per cent.; if more is earned,
efficiency is over 100 per cent.
The sloping line shows the earnings per hour at different efficiencies.
There is no scientific basis on which to determine the proper time of
the job, and there is great inequality in the prices of different jobs,
some being easy, some very difficult. For the disadvantages of the
system, see p. 6.
[Illustration: DAY WORK. PIECE WORK. FORD SYSTEM.]
(_k_) THE FORD SYSTEM.
The Ford System is illustrated in the diagram on p. 108. The amount
received by the worker is the same no matter what his efficiency may
be, but wages are 50 per cent. higher than the standard day rate. For
this reason the firm adopting this system has a far greater choice
of workers than other firms, all the best labour gravitating to the
firm. The worker is, of course, expected to submit to the conditions
prevailing in the factory, and to do the work allotted to him in the
stated time and with the degree of accuracy stipulated. Needless to
say, the amount of work expected is far greater than under ordinary day
work conditions.
This system has two serious disadvantages, the first being that
it is of extremely limited application, and the second that it
necessitates an exceptionally high degree of organisation if it is to
be satisfactory.
Public-domain text, read in full here on John Shaqi.
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