Economics Volume II: Modern Economic ProblemsFetter, Frank A. (Frank Albert)
General
Economics Volume II: Modern Economic Problems
Fetter, Frank A. (Frank Albert)
Economics
The same plan has been applied (Weir's method) with a premium that
equally divides between the workman and the employer the time saved.
By Rowan's method the premium is not a fixed sum but a percentage of
the standard rate per hour equal to the percentage of reduction in
time consumed. For example, if in the foregoing example the time were
reduced 20 per cent (to 8 hours) the premium would be 20 per cent of
30 cents, and the workman would receive 36 cents per hour. By this
plan the premium becomes less for the later reductions than in either
of the other plans. The utmost possible wages would be double the
standard rate.
A number of other variations have been worked out by the promoters of
recent scientific management, and are known as Taylor's, Gantt's,
and Emerson's plans. The authors of all these plans agree as to
the importance of fixing the standard rate so that it will leave a
possibility of considerable improvement with unusual effort, and of
leaving the standard rate and premium unchanged as long as no new
process or new machinery is introduced into the business. If this is
not done the employees lose faith in the plan and refuse to make the
necessary effort to earn the premium. Most of these plans of
payment recently have been connected with experiments and studies in
scientific management to reduce the time and increase the ease of the
operations.
In a variety of ways a bonus or a premium may be paid for quality, or
for economy in the use of materials (as to a fireman for using less
coal), or for various other results. Every business has its peculiar
conditions, which make certain results especially desirable, and
certain methods of reward practicable. In some industries, for
example, the various plans of piece work and of premium payment are
applied to groups of workers (as in collective piece work), the total
payment being then divided among the members of the group in some
agreed proportion.
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