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
Applying this fact to piece work, one sees at once how serious
differences may arise. A job is priced at, say, 1s. An average man
whose rate is 40s. a week will earn about 50s. a week on that job by
diligent work. Then a really first-class man comes along and earns 80s.
What follows? "If Smith can earn 80s., it is evident that the price
is too high and the other workers are slacking!" That is the natural
argument of the employer, and down comes the rate.
Cutting rates is one of the most frequent sources of trouble on piece
work, but it cannot be avoided. The worker knows that the rates will
be cut, and therefore two methods of defence are open to him: First,
he always works slowly on a job until it has been priced. In this way
a good price is obtained, a price which enables the slowest worker to
earn his wages--and a bit above--easily. Second, the worker takes care
not to earn too much. It is arranged between the men how much each
ought to take on a certain job, and the arrangement made is carried
out. This is, of course, dishonest, but it is necessary.
For suppose a good worker comes on the job and does his best, the
price comes down to everybody, and the average man cannot earn his
wages. The good man is therefore compelled to be dishonest to his
employer or unfair to his fellow-worker. And, again, in piece work
all prices are arbitrary. Even if one shop gives a reasonable price,
other shops in the same line of business find it out, and put on a
lower price in order to reduce works costs and thereby lower prices to
customers, which means snatching the trade from the good shop.
Thus, the circumstances of the old-fashioned piece work method and
the dishonesty of both parties to it lead to misunderstandings and
dissatisfaction.
(_c_) PROFIT SHARING.
There are various methods of increasing earnings by profit sharing. The
employer, from motives which may be good or bad from the standpoint of
the worker, desires to present the worker with a certain proportion of
the net profit.
In some cases the motive is entirely for the worker's good; in others
it is for the purpose of getting the worker to stay with the firm, and
to make his interest so large that he dare not be independent in case
he should lose his profit. This means that the employer is no longer
troubled with strikes and labour disturbances.
However, it is the effects that concern us here, and not the motives.
Under profit sharing the profit is paid out or credited to the worker
every six or twelve months, and one must be employed for a certain
length of time before one comes under the scheme. So that it holds
out little incentive to efficiency until the worker has been with the
firm for some years; until then his interest is so small that only the
naturally thrifty workers are interested in it.
Public-domain text, read in full here on John Shaqi.
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