ADVANTAGES OF THIS SYSTEM.--This system is founded upon knowledge that for a large reward men will do a large amount of work. The small compensation for a small amount of work--and under this system the minimum compensation is a little below the regular day's work--may lead men to exert themselves to accomplish more work. This system appeals to the justice of the men, in that it is more nearly an exact ratio of pay to endeavor. TASK WORK WITH A BONUS.--The Task work with Bonus system of compensation, which is the invention of Mr. H.L. Gantt, is explained in "A Bonus System of Rewarding Labor," paper 923, read before the American Society of Mechanical Engineers, December, 1901, by Mr. Gantt. This system is there described as follows:-- "If the man follows his instructions and accomplishes all the work laid out for him as constituting his proper task for the day, he is paid a definite bonus in addition to the day rate which he always gets. If, however, at the end of the day he has failed to accomplish all of the work laid out, he does not get his bonus, but simply his day rate." This system of compensation is explained more fully in Chapter VI of Mr. Gantt's book, "Work, Wages and Profits," where he explains the modification now used by him in the bonus. ADVANTAGES OF TASK WORK WITH A BONUS.--The psychological advantage of the task with a Bonus is the fact that the worker has the assurance of a living wage while learning, no matter whether he succeeds in winning his bonus or not. In the last analysis, it is "day rate" for the unskilled, and "piece rate" for the skilled, and it naturally leads to a feeling of security in the worker. Mr. Gantt has so admirably explained the advantages, psychological as well as industrial, of his system, that it is unnecessary to go farther, except to emphasize the fine feeling of brotherhood which underlies the idea, and its expression. THE DIFFERENTIAL BONUS SYSTEM.--The Differential Bonus System of Compensation is the invention of Mr. Frederick A. Parkhurst, and is described by him in his book "Applied Methods of Scientific Management." "The time the job should be done in is first determined by analysis and time study. The bonus is then added above the day work line. No bonus is paid until a definitely determined time is realized. As the time is reduced, the bonus is increased."