The exponents of scientific management have not discovered a law of
wages; they have simply elaborated a method of wage payment. Mr. G. D.
H. Cole has expressed that well. "Clearly, although scientific
management methods may reduce the possible margin or error in
determining piece-work prices, they cannot altogether remove it, and
even if the time that ought to be taken for a job is clearly established
a further complication confronts us. All the time-study in the world
cannot show how much ought to be paid for a job. It can only show at
most the length of time a job ought to take. That is to say, it cannot
determine what is to be the standard of living or of remuneration of the
workers.... This, indeed, is only another way of saying that Scientific
Management has only devised a further method of payment under the wage
system."[17]
The exponents of these theories fell into the error of believing they
have unveiled a law of wages because they grasped one important truth.
That truth is that where the productivity of labor is high, where labor
is efficient, there is a greater chance, all other circumstances being
the same, of securing high wages than when the reverse is the case. Or
as the matter has been put in one of the reports of the U. S. Industrial
Commission (1912-16) "A close causal relationship exists between
productive efficiency and _possible_ wages. Greater efficiency and
output makes _possible_ higher wages in general and better conditions of
employment and labor."[18] (Italics mine). That the scientific
management doctrine of wages consists of nothing more than a method of
wage payment is clearly established by its failure to substantiate in
practice its claims of furnishing a scientific and equitable method of
fixing wage rates. On that point the same Industrial Commission reports
that "In analyzing the wage fixing problem in connection with scientific
management two matters are considered; one--the "base-rate" sometimes
called the day wage, which constitutes for any group of wage earners the
minimum earnings or indicates the general wage level for that group, and
two--added "efficiency payments" which are supposed to represent special
additional rewards for special adjustments. The investigators sought in
vain for any scientific methods devised or employed by scientific
management for the determination of the base-rate, either as a matter of
justice between the conflicting claims of capital and labor, or between
the relative claims of individual and occupational groups."[19] As a
method of wage payment, of course, the method of scientific management
must be judged by its good and bad effects like other methods of wage
payment. That, however, is not a task which need detain us.
Public-domain text, read in full here on John Shaqi.
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