Incentives Under Scientific Management Constructive. It is most important, psychologically and ethically, that it be understood that Scientific Management is not in any sense a destructive power. That only is eliminated that is harmful, or wasteful, or futile; everything that is good is conserved, and is utilized as much as it has ever been before, often much more than it has ever been utilized. The constructive force, under Scientific Management, is one of its great life principles. This is brought out very plainly in considering incentives under Scientific Management. With the scientifically determined wage, and the more direct and more sure plan of promotion, comes no discard of the well-grounded incentives of older types of management. The value of a fine personality in all who are to be imitated is not forgotten; the importance of using all natural stimuli to healthful activity is appreciated. Scientific Management uses all these, in so far as they can be used to the best outcome for workers and work, and supplements them by such scientifically derived additions as could never have been derived under the older types.

Characteristics of the Reward. — Rewards, under Scientific Management are —

(a) positive; that is to say, the reward must be a definite, positive gain to the man, and not simply a taking away of some thing which may have been a drawback.

(b) predetermined; that is to say, before the man begins to work it must be determined exactly what reward he is to get for doing the work.

(c) personal; that is, individual, a reward for that particular man for that particular work.

(d) fixed, unchanged. He must get exactly what it has been determined beforehand that he shall get.

(e) assured; that is to say, there must be provision made for this reward before the man begins to work, so that he may be positive that he will get the reward if he does the work. The record of the organization must be that rewards have always been paid in the past, therefore probably will be in the future.

(f) the reward must be prompt; that is to say, as soon as the work has been done, the man must get the reward. This promptness applies to the announcement of the reward; that is to say, the man must know at once that he has gotten the reward, and also to the receipt of the reward by the man.

Positive Reward Arouses Interest and Holds Attention. — The benefit of the positive reward is that it arouses and holds attention. A fine example of a reward that is not positive is that type of "welfare work" which consists of simply providing the worker with such surroundings as will enable him to work decently and without actual discomfort. The worker, naturally, feels that such surroundings are his right, and in no sense a reward and incentive to added activity. The reward must actually offer to the worker something which he has a right to expect only if he earns it; something which will be a positive addition to his life.

Predetermined Reward Concentrates Attention. — The predetermined reward allows both manager and man to concentrate their minds upon the work. There is no shifting of the attention, while the worker wonders what the reward that he is to receive will be. It is also a strong factor for industrial peace, and for all the extra activities which will come when industrial conditions are peaceful.

Personal Reward Conserves Individuality. — The personal reward is a strong incentive toward initiative, towards the desire to make the most of one's individuality. It is an aid toward the feeling of personal recognition. From this personal reward come all the benefits which have been considered under individuality.1

Fixed Reward Eliminates Waste Time. — The fact that the reward is fixed is a great eliminator of waste to the man and to the manager both. Not only does the man concentrate better under the fixed reward, but the reward, being fixed, need not be determined anew, over and over again; that is to say, every time that that kind of work is done, simultaneous with the arising of the work comes the reward that is to be paid for it. All the time that would be given to determining the reward, satisfying the men and arguing the case, is saved and utilized.

Assured Reward Aids Concentration. — The assured reward leads to concentration, — even perhaps more so than the fact that the reward is determined. In case the man was not sure that he would get the reward in the end, he would naturally spend a great deal of time wondering whether he would or not. Moreover, no immediate good fortune counts for much as an incentive if there is a prospect of bad luck following in the immediate future.

Need for Promptness Varies. — The need for promptness of the reward varies. If the reward is to be given to a man of an elementary type of mind, the reward must be immediately announced and must be actually given very promptly, as it is impossible for anyone of such a type of intellect to look forward very far.2 A man of a high type of intellectual development is able to wait a longer time for his reward, and the element of promptness, while acting somewhat as an incentive, is not so necessary.

Under Scientific Management, with the ordinary type of worker on manual work, it has been found most satisfactory to pay the reward every day, or at the end of the week, and to announce the score of output as often as every hour. This not only satisfies the longing of the normal mind to know exactly where it stands, but also lends a fresh impetus to repeat the high record. There is also, through the prompt reward, the elimination of time wasted in wondering what the result will be, and in allaying suspense. Suspense is not a stimulus to great activity, as anyone who has waited for the result of a doubtful examination can testify, it being almost impossible to concentrate the mind on any other work until one knows whether the work which has been done has been completed satisfactorily or not.

Promptness Always an Added Incentive. — There are many kinds of life work and modes of living so terrible as to make one shudder at the thoughts of the certain sickness, death, or disaster that are almost absolutely sure to follow such a vocation. Men continue to work for those wages that lead positively to certain death, because of the immediateness of the sufficient wages, or reward. This takes their attention from their ultimate end. Much more money would be required if payment were postponed, say, five years after the act, to obtain the services of the air-man, or the worker subject to the poisoning of some branches of the lead and mercury industries.

If the prompt reward is incentive enough to make men forget danger and threatened death, how much more efficient is it in increasing output where there is no such danger.

Immediate Reward Not Always Preferable. — There are cases where the prompt reward is not to be preferred, because the delayed reward will be greater, or will be available to more people Such is the case with the reward that comes from unrestricted output.

For example, — the immediacy of the temporarily increased reward caused by restricting output has often led the combinations of working men to such restriction, with an ultimate loss of reward to worker, to employer, and to the consumer.

Rewards Possible of Attainment by All. — Every man working under Scientific Management has a chance to win a reward. This means not only that the man has a "square deal," for the man may have a square deal under Traditional Management in that he may have a fair chance to try for all existing rewards. There is more than this under Scientific Management. By the very nature of the plan itself, the rewards are possible of achievement by all; any one man, by winning, in no way diminishes the chances of the others.

Rewards of Management Resemble Rewards of Workers. — So far the emphasis, in the discussion of reward, has been on the reward as given to the worker, and his feeling toward it. The reward to the management is just as sure. It lies in the increased output and therefore the possibility of lower costs and of greater financial gain. It is as positive; it is as predetermined, because before the reward to the men is fixed the management realizes what proportion that reward will bear to the entire undertaking, and exactly what profits can be obtained. It is a fundamental of Scientific Management that the management shall be able to prophesy the outputs ahead. It will certainly be as personal, if the management side is as thoroughly systematized as is the managed; it will be as fixed and as assured, and it certainly is as prompt, as the cost records can be arranged to come to the management every day, if that is desired.

Results of Such Rewards. — There are three other advantages to management which might well be added here. First, that a reward such as this attracts the best men to the work; second, that the reward, and the stability of it, indicates the stability of the entire institution, and thus raises its standing in the eyes of the community as well as in its own eyes; and third, that it leads the entire organization, both managed and managing, to look favorably at all standardization. The standardized reward is sure to be attractive to all members. As soon as it is realized that the reason that it is attractive is because it is standardized, the entire subject of standardization rises in the estimation of every one, and the introduction of standards can be carried on more rapidly, and with greater success.

Rewards Divided into Promotion and Pay. — Rewards may be divided into two kinds; first, promotion and, second, pay. Under Scientific Management promotion is assured for every man and, as has been said, this promotion does not thereby hold back others from having the same sort of promotion. There is an ample place, under Scientific Management, for every man to advance. 3 Not only is the promotion sure, thus giving the man absolute assurance that he will advance as his work is satisfactory, but it is also gradual.4 The promotion must be by degrees, otherwise the workers may get discouraged, from finding their promotion has come faster than has their ability to achieve, and the lack of attention, due to being discouraged, may be contagious. It is, therefore, of vital importance that the worker be properly selected, in order that, in his advancement and promotion, he shall be able to achieve his task after having been put at the new work. He must be advanced and promoted in a definite line of gradual development, in accordance with a fully conceived plan. This should be worked out and set down in writing as a definite plan, similar to the plan on the instruction card of one of his tasks.

Promotion May Be to Places Within or Without the Business. — In many lines of business, the business itself offers ample opportunity for promoting all men who can "make good" as rapidly as they can prepare themselves for positions over others, and for advancement; but under Scientific Management provision is made even in case the business does not offer such opportunities.5 This is done by the management finding places outside their own organization for the men who are so trained that they can be advanced.

Such Promotion Attracts Workers. — While at first glance it might seem a most unfortunate thing for the management to have to let its men go, and while, as Dr. Taylor says, it is unfortunate for a business to get the reputation of being nothing but a training school, on the other hand, it has a very salutary effect upon the men to know that their employers are so disinterestedly interested in them that they will provide for their future, even at the risk of the individual business at which they have started having to lose their services. This will not only, as Dr. Taylor makes clear, stimulate many men in the establishment whose men go on to take the places of those who are promoted, but will also be a great inducement to other men to come into a place that they feel is unselfish and generous.

Subdivisions of "Pay." — Under "Pay" we have included eight headings:

1. Wages

2. Bonus

3. Shorter hours

4. Prizes other than money

5. Extra knowledge

6. Method of attack

7. Good opinion of others

8. Professional standing.

Relation Between Wages and Bonus. — Wages and bonus are closely related. By wages we mean a fixed sum, or minimum hourly rate, that the man gets in any case for his time, and by bonus we mean additional money that he receives for achievement of method, quantity or quality. Both might very properly be included under wages, or under money received for the work, or opportunities for receiving money for work, as the case might be. In the discussion of the different ways of paying wages under Scientific Management, there will be no attempt to discuss the economic value of the various means; the different methods will simply be stated, and the psychological significance will be, as far as possible, given.

Before discussing the various kinds of wages advised by the experts in Scientific Management, it is well to pause a moment to name the various sorts of methods of compensation recognized by authorities. David F. Schloss in his "Method of Industrial Remuneration" divides all possible ways of gaining remuneration into three —

1. the different kinds of wages

1. time wage

2. piece wage

3. task wage

4. progressive wage

5. collective piece wage

6. collective task wage

7. collective progressive wage

8. contract work

9. coöperative work

with

2. profit sharing, and

3. industrial coöperation. These are defined and discussed at length in his book in a lucid and simple manner.

It is only necessary to quote him here as to the relationship between these different forms, where he says, page 11, — "The two leading forms of industrial remuneration under the Wages System are time wages, and piece wages. Intermediate between these principal forms, stands that known as task wage, while supplemental to these two named methods, we find those various systems which will here be designated by the name of Progressive Wages." 6

Day Work Never Scientific. — The simplest of all systems, says Dr. Taylor in "A Piece Rate System," paragraph 10, in discussing the various forms of compensation "is the Day Work plan, in which the employés are divided into certain classes, and a standard rate of wages is paid to each class of men," He adds — "The men are paid according to the position which they fill, and not according to their individual character, energy, skill and reliability," The psychological objection to day work is that it does not arouse interest or effort or hold attention, nor does it inspire to memorizing or to learning.

It will be apparent that there is no inducement whatever for the man to do more than just enough to retain his job, for he in no wise shares in the reward for an extra effort, which goes entirely to his employer. "Reward," in this case, is usually simply a living wage, — enough to inspire the man, if he needs the money enough to work to hold his position, but not enough to incite him to any extra effort.

It is true that, in actual practice, through the foreman or some man in authority, the workers on day work may be "speeded up" to a point where they will do a great deal of work; the foreman being inspired, of course, by a reward for the extra output, but, as Dr. Taylor says, paragraph 17 — "A Piece Rate System," this sort of speeding up is absolutely lacking in self-sustaining power. The moment that this rewarded foreman is removed, the work will again fall down. Therefore, day wage has almost no place in ultimate, scientifically managed work.

Piece Work Provides Pay in Proportion to Work Done. — Piece Work is the opposite of time work, in that under it the man is paid not for the time he spends at the work, but for the amount of work which he accomplishes. Under this system, as long as the man is paid a proper piece rate, and a rate high enough to keep him interested, he will have great inducements to work. He will have a chance to develop individuality, a chance for competition, a chance for personal recognition. His love of reasonable racing will be cultivated. His love of play may be cultivated.

All of these incentives arise because the man feels that his sense of justice is being considered; that if the task is properly laid out, and the price per piece is properly determined, he is given a "square deal" in being allowed to accomplish as great an amount of work as he can, with the assurance that his reward will be promptly coming to him.

Danger of Rate Being Cut. — Piece work becomes objectionable only when the rate is cut. The moment the rate is cut the first time, the man begins to wonder whether it is going to be cut again, and his attention is distracted from the work by his debating this question constantly. At best, his attention wanders from one subject to the other, and back again. It cannot be concentrated on his work. After the rate has been cut once or twice, — and it is sure to be cut unless it has been set from scientifically derived elementary time units, — the man loses his entire confidence in the stability of the rate, and, naturally, when he loses this confidence, his work is done more slowly, due to lack of further enthusiasm. On the contrary, as long as it is to his advantage to do the work and he is sure that his reward will be prompt, and that he will always get the price that has been determined as right by him and by the employers for his work, he can do this work easily in the time set. As soon as he feels that he will not get it, he will naturally begin to do less, as it will be not only to his personal advantage to do as little as possible, but also very much to the advantage of his fellows, for whom the rate will also be cut.

Task Wage Contains No Incentive to Additional Work. — What Schloss calls the Task Wage would, as he well says, be the intermediate between time or day wage and piece wage; that is, it would be the assigning of a definite amount of work to be done in definite time, and to be paid for by a definite sum. If the task were set scientifically, and the time scientifically determined, as it must naturally be for a scientific task, and the wage adequate for that work, there would seem to be nothing about this form of remuneration which could be a cause of dissatisfaction to the worker. Naturally, however, there would be absolutely no chance for him to desire to go any faster than the time set, or to accomplish any more work in the time set than that which he was obliged to, in that he could not possibly get anything for the extra work done.

Worth of Previous Methods in the Handling. — It will be noted in the discussion of the three types of compensation so far discussed, that there is nothing in them that renders them unscientific. Any one of the three may be used, and doubtless all are used, on works which are attempting to operate under Scientific Management. Whether they really are scientific methods of compensation or not, is determined by the way that they are handled. Certainly, however, all that any of these three can expect to do is to convince the man that he is being treated justly; that is to say, if he knows what sort of a contract he is entering into, the contract is perfectly fair, provided that the management keeps its part of the contract, pays the agreed-upon wage.

In proceeding, instead of following the order of Schloss we will follow the order, at least for a time, of Dr. Taylor In "A Piece Rate System"; this for two reasons:

First, for the reason that the "Piece Rate System" is later than Schloss' book, Schloss being 1891, and the "Piece Rate" being 1895; in the second place that we are following the Scientific Management side in distinction to the general economic side, laid down by Schloss. There is, however, nothing in our plan of discussion here to prevent one's following fairly closely in the Schloss also.

The Gain-sharing Plan. — We take up, then, the Gain-sharing Plan which was invented by Mr. Henry R. Towne and used by him with success in the Yale & Towne works. This is described in a paper read before the American Society of Mechanical Engineers, in professional paper No. 341, in 1888 and also in the Premium Plan, Mr. Halsey's modification of it, described by him in a paper entitled the "Premium Plan of Paying for Labor," American Society of Mechanical Engineers, 1891, Paper 449. In this, in describing the Profit-sharing Plan, Mr. Halsey says — "Under it, in addition to regular wages, the employés were offered a certain percentage of the final profits of the business. It thus divides the savings due to increased production between employer and employé."

Objections to This Plan. — We note here the objection to this plan: First, — "The workmen are given a share in what they do not earn; second, the workmen share regardless of individual deserts; third, the promised rewards are remote; fourth, the plan makes no provision for bad years; fifth, the workmen have no means of knowing if the agreement is carried out." Without discussing any farther whether these are worded exactly as all who have tried the plan might have found them, we may take these on Mr. Halsey's authority and discuss the psychology of them. If the workmen are given a share in what they do not earn, they have absolutely no feeling that they are being treated justly. This extra reward which is given to them, if in the nature of a present, might much better be a present out and out. If it has no scientific relation to what they have gotten, if the workmen share regardless of individual deserts, this, as Dr. Taylor says, paragraph 27 in the "Piece Rate System," is the most serious defect of all, in that it does not allow for recognition of the personal merits of each workman. If the rewards are remote, the interest is diminished. If the plan makes no provision for bad years, it cannot be self-perpetuating. If the workmen have no means of knowing if the agreement will be carried out or not, they will be constantly wondering whether it is being carried out or not, and their attention will wander.

The Premium Plan. — The Premium Plan is thus described by Mr. Halsey — "The time required to do a given piece of work is determined from previous experience, and the workman, in addition to his usual daily wages, is offered a premium for every hour by which he reduces that time on future work, the amount of the premium being less than his rate of wages. Making the hourly premium less than the hourly wages is the foundation stone upon which rest all the merits of the system."

Dr. Taylor's Description of This Plan. — Dr. Taylor comments upon this plan as follows:

"The Towne-Halsey plan consists in recording the quickest time in which a job has been done, and fixing this as a standard. If the workman succeeds in doing the job in a shorter time, he is still paid his same wages per hour for the time he works on the job, and, in addition, is given a premium for having worked faster, consisting of from one-quarter to one-half the difference between the wages earned and the wages originally paid when the job was done in standard time," Dr. Taylor's discussion of this plan will be found in "Shop Management," paragraphs 79 to 91.

Psychologically, the defect of this system undoubtedly is that it does not rest upon accurate scientific time study, therefore neither management nor men can predict accurately what is going to happen. Not being able to predict, they are unable to devote their entire attention to the work in hand, and the result cannot be as satisfactory as under an assigned task, based upon time study. The discussion of this is so thorough in Dr. Taylor's work, and in Mr. Halsey's work, that it is unnecessary to introduce more here.

Profit-sharing. — Before turning to the methods of compensation which are based upon the task, it might be well to introduce here mention of "Coöperation," or "Profit-sharing," which, in its extreme form, usually means the sharing of the profits from the business as a whole, among the men who do the work. This is further discussed by Schloss, and also by Dr. Taylor in paragraphs 32 to 35, in "A Piece Rate System"; also in "Shop Management," quoting from the "Piece Rate System," paragraphs 73 to 77.

Objections to Profit-sharing. — The objections, Dr. Taylor says, to coöperation are, first in the fact that no form of coöperation has been devised in which each individual is allowed free scope for his personal ambition; second, in the remoteness of the reward; third, in the unequitable division of the profits. If each individual is not allowed free scope, one sees at once that the entire advantage of individuality, and of personal recognition, is omitted. If the reward is remote, we recognize that its power diminishes very rapidly; and if there cannot be equitable division of the profits, not only will the men ultimately not be satisfied, but they will, after a short time, not even be satisfied while they are working, because their minds will constantly be distracted by the fact that the division will probably not be equitable, and also by the fact that they will be trying to plan ways in which they can get their proper share. Thus, not only in the ultimate outcome, but also during the entire process, the work will slow up necessarily, because the men can have no assurance either that the work itself, or the output, have been scientifically determined.

Scientific Management Embodies Valuable Elements of Profit-sharing. — Scientific Management embodies the valuable elements of profit-sharing, namely, the idea of coöperation, and the idea that the workers should share in the profit.

That the latter of these two is properly emphasized by Scientific Management is not always understood by the workers. When a worker is enabled to make three or four times as much output in a day as he has been accustomed to, he may think that he is not getting his full share of the "spoils" of increased efficiency, unless he gets a proportionately increased rate of pay. It should, therefore, be early made clear to him that the saving has been caused by the actions of the management, quite as much as by the increased efforts for productivity of the men. Furthermore, a part of the savings must go to pay for the extra cost of maintaining the standard conditions that make such output possible. The necessary planners and teachers usually are sufficient as object-lessons to convince the workers of the necessity of not giving all the extra savings to the workers.

It is realized that approximately one third of the extra profits from the savings must go to the employer, about one third to the employés, and the remainder for maintaining the system and carrying out further investigations.

This once understood, the satisfaction that results from a coöperative, profit-sharing type of management will be enjoyed.

The five methods of compensation which are to follow are all based upon the task, as laid down by Dr. Taylor; that is to say, upon time study, and an exact knowledge by the man, and the employers, of how much work can be done.

Differential Rate Piece Work the Ultimate Form of Compensation. — Dr. Taylor's method of compensation, which is acknowledged by all thoroughly grounded in Scientific Management to be the ultimate form of compensation where it can be used, is called Differential Rate Piece Work. It is described in "A Piece Rate System," paragraphs 50 to 52, as follows: —

"This consists, briefly, in paying a higher price per piece, or per unit, or per job, if the work is done in the shortest possible time and without imperfection, than is paid if the work takes a longer time or is imperfectly done. To illustrate — suppose 20 units, or pieces, to be the largest amount of work of a certain kind that can be done in a day. Under the differential rate system, if a workman finishes 20 pieces per day, and all of these pieces are perfect, he receives, say, 15 cents per piece, making his pay for the day 15 times 20 = $3.00. If, however, he works too slowly and turns out only, say 19 pieces, then instead of receiving 15 cents per piece he gets only 12 cents per piece, making his pay for the day 12×19= $2.28, instead of $3.00 per day. If he succeeds in finishing 20 pieces — some of which are imperfect — then he should receive a still lower rate of pay, say 10¢ or 5¢ per piece, according to circumstances, making his pay for the day $2.00 or only $1.00, instead of $3.00."

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."

Three Rate with Increased Rate System. — The Three Rate System of Compensation is the invention of Mr. Frank B. Gilbreth and consists of day work, i.e., a day rate, or a flat minimum rate, which all who are willing to work receive until they can try themselves out; of a middle rate, which is given to the man when he accomplishes the work with exactness of compliance to prescribed motions, according to the requirements of his instruction card; and of a high rate, which is paid to the man when he not only accomplishes the task in accordance with the instruction card, but also within the set time and of the prescribed quality of finished work.

Advantage of This System. — The advantage of this is, first of all, that the man does not have to look forward so far for some of his reward, as it comes to him just as soon as he has shown himself able to do the prescribed methods required accurately. The first extra reward is naturally a stimulus toward winning the second extra reward. The middle rate is a stimulus to endeavor to perform that method which will enable him easiest to achieve the accomplishment of the task that pays the highest wage. The day rate assures the man of a living wage. The middle rate pays him a bonus for trying to learn. The high rate gives him a piece rate when he is skilled.

Lastly, as the man can increase his output, with continued experience, above that of the task, he receives a differential rate piece on the excess quantity, this simply making an increasing stimulus to exceed his previous best record.

All Task Systems Investigate Loss of Bonus. — Under all these bonus forms of wages, if the bonus is not gained the fact is at once investigated, in order that the blame may rest where it belongs. The blame may rest upon the workers, or it may be due to the material, which may be defective, or different from standard; it may be upon the supervision, or some fault of the management in not supplying the material in the proper quality, or sequence, or a bad condition of tools or machinery; or upon the instruction card. The fact that the missing of the bonus is investigated is an added assurance to the workman that he is getting the "square deal," and enlists his sympathy with these forms of bonus system, and his desire to work under them. The fact that the management will investigate also allows him to concentrate upon output, with no worry as to the necessity of his investigating places where he has fallen short.

Necessity for Workers Bearing This Loss. — In any case, whether the blame for losing the bonus is the worker's fault directly or not, he loses his bonus. This, for two reasons; in the first place, if he did not lose his bonus he would have no incentive to try to discover flaws before delays occurred; he would, otherwise, have an incentive to allow the material to pass through his hands, defective or imperfect as the case might be. This is very closely associated with the second reason, and that is, that the bonus comes from the savings caused by the plan of management, and that it is necessary that the workers as well as the management shall see that everything possible tends to increase the saving. It is only as the worker feels that his bonus is a part of the saving, that he recognizes the justice of his receiving it, that it is in no wise a gift to him, simply his proper share, accorded not by any system of philanthropy, or so-called welfare work, but simply because his own personal work has made it possible for the management to hand back his share to him.

Users of Any Task System Appreciate Other Task Systems. — It is of great importance to the workers that the users of any of these five methods of compensation of Scientific Management are all ready and glad to acknowledge the worth of all these systems. In many works more than one, in some all, of these systems of payment may be in use. Far from this resulting in confusion, it simply leads to the understanding that whatever is best in the particular situation should be used. It also leads to a feeling of stability everywhere, as a man who has worked under any of these systems founded on time study can easily pass to another. There is also a great gain here in the doing away of industrial warfare.

Shorter Hours and Holidays Effective Rewards. — Probably the greatest incentive, next to promotion and more pay, are shorter hours and holidays. In some cases, the shorter hours, or holidays, have proven even more attractive to the worker than the increase of pay. In Shop Management, paragraph 165, Dr. Taylor describes a case where children working were obliged to turn their entire pay envelopes over to their parents. To them, there was no particular incentive in getting more money, but, when the task was assigned, if they were allowed to go as soon as their task was completed, the output was accomplished in a great deal shorter time. Another case where shorter hours were successfully tried, was in an office where the girls were allowed the entire Saturday every two weeks, if the work was accomplished within a set amount of time. This extra time for shopping and matinees proved more attractive than any reasonable amount of extra pay that could be offered.

Desire for Approbation an Incentive. — Under "Individuality" were discussed various devices for developing the individuality of the man, such as his picture over a good output or record. These all act as rewards or incentives. How successful they would be, depends largely upon the temperament of the man and the sort of work that is to be done. In all classes of society, among all sorts of people, there is the type that loves approbation. This type will be appealed to more by a device which allows others to see what has been done than by almost anything else. As to what this device must be, depends on the intelligence of the man.

Necessity for Coöperation a Strong Incentive. — Under Scientific Management, many workers are forced by their coworkers to try to earn their bonuses, as "falling down on" tasks, and therefore schedules, may force them to lose their bonuses also.

The fact that, in many kinds of work, a man falling below his task will prevent his fellows from working, is often a strong incentive to that man to make better speed. For example, on a certain construction job in Canada, the teamsters were shown that, by their work, they were cutting down working opportunities for cart loaders, who could only be hired as the teamsters hauled sufficient loads to keep them busy.

Value of Knowledge Gained an Incentive to a Few Only. — Extra knowledge, and the better method of attack learned under Scientific Management, are rewards that will be appreciated by those of superior intelligence only. They will, in a way, be appreciated by all, because it will be realized that, through what is learned, more pay or promotion is received, but the fact that this extra knowledge, and better method of attack, will enable one to do better in all lines, not simply in the line at which one is working, and will render one's life more full and rich, will be appreciated only by those of a wide experience.

Acquired Professional Standing a Powerful Incentive. — Just as the success of the worker under Scientific Management assures such admiration by his fellow-workers as will serve as an incentive toward further success, so the professional standing attained by success in Scientific Management acts as an incentive to those in more responsible positions.

As soon as it is recognized that Scientific Management furnishes the only real measure of efficiency, its close relationship to professional standing will be recognized, and the reward which it can offer in this line will be more fully appreciated.

Punishments Negative and Positive. — Punishments may be first negative, that is, simply a loss of promised rewards. Such punishments, especially in cases of men who have once had the reward, usually will act as the necessary stimulus to further activity. Punishments may also be positive, such things as fines, assignment to less pleasant work, or as a last resort, discharge.

Fines Never Accrue to the Management. — Fines have been a most successful mode of punishment under Scientific Management. Under many of the old forms of management, the fines were turned back to the management itself, thus raising a spirit of animosity in the men, who felt that everything that they suffered was a gain to those over them. Under Scientific Management all fines are used in some way for the benefit of the men themselves. All fines should be used for some benefit fund, or turned into the insurance fund. The fines, as has been said, are determined solely by the disciplinarian, who is disinterested in the disposition of the funds thus collected. As the fines do not in any way benefit the management, and in fact rather hurt the management in that the men who pay them, no matter where they are applied, must feel more or less discouraged, it is, naturally, for the benefit of the management that there shall be as few fines as possible. Both management and men realize this, which leads to industrial peace, and also leads the managers, the functional foremen, and in fact every one, to eliminate the necessity and cause for fines to as great an extent as is possible.

Assignment to Less Pleasant Work Effective Punishment. — Assignment to less pleasant work is a very effective form of discipline. It has many advantages which do not show on the surface, The man may not really get a cut in pay, though his work be changed, and thus the damage he receives is in no wise to his purse, but simply to his feeling of pride. In the meantime, he is gaining a wider experience of the business, so that even the worst disadvantage has its bright side.

Discharge To Be Avoided Wherever Possible. — Discharge is, of course, available under Scientific Management, as under all other forms, but it is really less used under Scientific Management than under any other sort, because if a man is possibly available, and in any way trained, it is better to do almost anything to teach him, to assign him to different work, to try and find his possibilities, than to let him go, and have all that teaching wasted as far as the organization which has taught it is concerned.

Discharge a Grave Injury to a Worker. — Moreover, Scientific Management realizes that discharge may be a grave injury to a worker. As Mr. James M. Dodge, who has been most successful in Scientific Management and is noted for his good work for his fellow-men, eloquently pleads, in a paper on "The Spirit in Which Scientific Management Should Be Approached," given before the Conference on Scientific Management at Dartmouth College, October, 1911:

"It is a serious thing for a worker who has located his home within reasonable proximity to his place of employment and with proper regard for the schooling of his children, to have to seek other employment and readjust his home affairs, with a loss of time and wages. Proper management takes account not only of this fact, but also of the fact that there is a distinct loss to the employer when an old and experienced employé is replaced by a new man, who must be educated in the methods of the establishment. An old employé has, in his experience, a potential value that should not be lightly disregarded, and there should be in case of dismissal the soundest of reasons, in which personal prejudice or temporary mental condition of the foreman should play no part.

"Constant changing of employés is not wholesome for any establishment, and the sudden discovery by a foreman that a man who has been employed for a year or more is 'no good' is often a reflection on the foreman, and more often still, is wholly untrue. All working men, unless they develop intemperate or dishonest habits, have desirable value in them, and the conserving and increasing of their value is a duty which should be assumed by their superiors."

Punishment Can Never Be Entirely Abolished. — It might be asked why punishments are needed at all under this system; that is, why positive punishments are needed. Why not merely a lack of reward for the slight offenses, and a discharge if it gets too bad? It must be remembered, however, that the punishments are needed to insure a proper appreciation of the reward. If there is no negative side, the beauty of the reward will never be realized; the man who has once suffered by having his pay cut for something which he has done wrong, will be more than ready to keep up to the standard. In the second place, unless individuals are punished, the rights of other individuals will, necessarily, be encroached upon. When it is considered that under Scientific Management the man who gives the punishment is the disinterested disciplinarian, that the punishment is made exactly appropriate to the offense, and that no advantage from it comes to any one except the men themselves, it can be understood that the psychological basis is such as to make a punishment rather an incentive than a detriment.

Direct Incentives Numerous and Powerful. — As for the direct incentives, these are so many that it is possible to enumerate only a few. For example —

This may be simply a result of love of speed, love of play, or love of activity, or it may be, in the case of a man running a machine, not so much for the love of the activity as for a love of seeing things progress rapidly. There is a love of contest which has been thoroughly discussed under "Athletic Contests," which results in racing, and in all the pleasures of competition.

Racing Directed Under Scientific Management. — The psychology of the race under Scientific Management is most interesting. The race is not a device of Scientific Management to speed up the worker, any speed that would be demanded by Scientific Management beyond the task-speed would be an unscientific thing. On the other hand, it is not the scope of Scientific Management to bar out any contests which would not be for the ultimate harm of the workers. Such interference would hamper individuality; would make the workers feel that they were restricted and held down. While the workers are, under Scientific Management, supposed to be under the supervision of some one who can see that the work is only such as they can do and continuously thrive, any such interference as, for example, stopping a harmless race, would at once make them feel that their individual initiative was absolutely destroyed. It is not the desire of Scientific Management to do anything of that sort, but rather to use every possible means to make the worker feel that his initiative is being conserved.

All "Native Reactions" Act as Incentives. — Pride, self-confidence, pugnacity, — all the "native reactions" utilized by teaching serve as direct incentives.

Results of Incentives to the Work. — All incentives in every form of management, tend, from their very nature, to increase output. When Scientific Management is introduced, there is selection of such incentives as will produce greatest amount of specified output, and the results can be predicted.

Results of Incentives to the Worker. — Under Traditional Management the incentives are usually such that the worker is likely to overwork himself if he allows himself to be driven by the incentive. This results in bodily exhaustion. So, also, the anxiety that accompanies an unstandardized incentive leads to mental exhaustion. With the introduction of Transitory Management, danger from both these types of exhaustion is removed. The incentive is so modified that it is instantly subject to judgment as to its ultimate value.

Scientific Management makes the incentives stronger than they are under any other type, partly by removing sources of worry, waste and hesitation, partly by determining the ratio of incentive to output. The worker under such incentives gains in bodily and mental poise and security.




 1. W.P. Gillette, Cost Analysis Engineering, p. 3.

 2. F.W. Taylor, Paper 647, A.S.M.E., para. 33, para. 59.

 3. Hugo Diemer, Factory Organization and Administration, p. 5.

 4. James M. Dodge, Paper 1115, A.S.M.E., p. 723.

 5. F.W. Taylor, Shop Management, para. 310-311, Harper Ed., pp. 142-143.

 6. See also C.U. Carpenter, Profit Making in Shop and Factory Management, pp. 113-115. For an extended and excellent account of the theory of well-known methods of compensating workmen, see C.B. Going, Principles of Industrial Engineering, chap. VIII.




CHAPTER X

WELFARE

Definition of Welfare. — "Welfare" means "a state or condition of doing well; prosperous or satisfactory course or relation; exemption from evil;" in other words, well-being. This is the primary meaning of the word. But, to-day, it is used so often as an adjective, to describe work which is being attempted for the good of industrial workers, that any use of the word welfare has that fringe of meaning to it.

"Welfare" Here Includes Two Meanings. — In the discussion of welfare in this chapter, both meanings of the word will be included. "Welfare" under each form of management will be discussed, first, as meaning the outcome to the men of the type of management itself; and second, as discussing the sort of welfare work which is used under that form of management.

Discussion of First Answers. Three Questions. — A discussion of welfare as the result of work divides itself naturally into three parts, or three questions:

What is the effect upon the physical life?

What is the effect upon the mental life?

What is the effect upon the moral life?

Under Traditional Management No Physical Improvement. — The indefiniteness of Traditional Management manifests itself again in this discussion, it being almost impossible to make any general statement which could not be controverted by particular examples; but it is safe to say that in general, under Traditional Management, there is not a definite physical improvement in the average worker. In the first place, there is no provision for regularity in the work. The planning not being done ahead, the man has absolutely no way of knowing exactly what he will be called upon to do. There being no measure of fatigue, he has no means of knowing whether he can go to work the second part of the day, say, with anything like the efficiency with which he could go to work in the first part of the day. There being no standard, the amount of work which he can turn out must vary according as the tools, machinery and equipment are in proper condition, and the material supplies his needs.

No Good Habits Necessarily Formed. — In the second place, under Traditional Management there are no excellent habits necessarily formed. The man is left to do fairly as he pleases, if only the general outcome be considered sufficient by those over him. There may be a physical development on his part, if the work be of a kind which can develop him, or which he likes to such an extent that he is willing to do enough of it to develop him physically; this liking may come through the play element, or through the love of work, or through the love of contest, or through some other desire for activity, but it is not provided for scientifically, and the outcome cannot be exactly predicted. Therefore, under Traditional Management there is no way of knowing that good health and increased strength will result from the work, and we know that in many cases poor health and depleted strength have been the outcome of the work. We may say then fairly, as far as physical improvement is concerned that, though it might be the outcome of Traditional Management, it was rather in spite of Traditional Management, in the sense at least that the management had nothing to do with it, and had absolutely no way of providing for it. The moment that it was provided for in any systematic way, the Traditional Management vanished.

No Directed Mental Development. — Second, mental development. Here, again, there being no fixed habits, no specially trained habit of attention, no standard, there was no way of knowing that the man's mind was improving. Naturally, all minds improve merely with experience. Experience must be gathered in, and must be embodied into judgment. There is absolutely no way of estimating what the average need in this line would be, it varies so much with the temperament of the man. Again, it would usually be a thing that the man himself was responsible for, and not the management, certainly not the management in any impersonal sense. Some one man over an individual worker might be largely responsible for improving him intellectually. If this were so, it would be because of the temperament of the over-man, or because of his friendly desire to impart a mental stimulus; seldom, if ever, because the management provided for its being imparted. Thus, there was absolutely no way of predicting that wider or deeper interest, or that increased mental capacity, would take place.

Moral Development Doubtful. — As for moral development, in the average Traditional Management it was not only not provided for, but rather doubtful. A man had very little chance to develop real, personal responsibilities, in that there was always some one over him who was watching him, who disciplined him and corrected him, who handed in the reports for him, with the result that he was in a very slight sense a free agent. Only men higher up, the foremen and the superintendents could obtain real development from personal responsibilities. Neither was there much development of responsibility for others, in the sense of being responsible for personal development of others. Having no accurate standards to judge by, there was little or no possibility of appreciation of the relative standing of the men, either by the individual of himself, or by others of his ability. The man could be admired for his strength, or his skill, but not for his real efficiency, as measured in any satisfactory way. The management taught self-control in the most rudimentary way, or not at all. There was no distinct goal for the average man, neither was there any distinct way to arrive at such a goal; it was simply a case, with the man lower down, of making good for any one day and getting that day's pay. In the more enlightened forms of Traditional Management, a chance for promotion was always fairly sure, but the moment that the line of promotion became assured, we may say that Traditional Management had really ceased, and some form of Transitory Management was in operation.

"Square Deal" Lacking. — Perhaps the worst lack under Traditional Management is the lack of the "square deal." In the first place, even the most efficient worker under this form of management was not sure of his place. This not only meant worry on his part, which distracted his attention from what he did, but meant a wrong attitude all along the line. He had absolutely no way of knowing that, even though he did his best, the man over him, in anger, or because of some entirely ulterior thing, might not discharge him, put him in a lower position. So also the custom of spying, the only sort of inspection recognized under Traditional Management of the most elementary form, led to a feeling on the men's part that they were being constantly watched on the sly, and to an inability to concentrate. This brought about an inability to feel really honest, for being constantly under suspicion is enough to poison even one's own opinion of one's integrity. Again, being at the beck and call of a prejudiced foreman who was all-powerful, and having no assured protection from the whims of such a man, the worker was obliged, practically for self-protection, to try to conciliate the foremen by methods of assuming merits that are obvious, on the surface. He ingratiates himself in the favor of the foreman in that way best adapted to the peculiarities of the character of the foreman, sometimes joining societies, or the church of the foreman, sometimes helping him elect some political candidate or relative; at other times, by the more direct method of buying drinks, or taking up a subscription for presenting the foreman with a gold watch, "in appreciation of his fairness to all;" sometimes by consistently losing at cards or other games of chance. When it is considered that this same foreman was probably, at the time, enjoying a brutal feeling of power, it is no wonder that no sense of confidence of the "square deal" could develop. There are countless ways that the brutal enjoyment of power could be exercised by the man in a foreman's position. As has already been said, some men prefer promotion to a position of power more than anything else. Nearly all desire promotion to power for the extra money that it brings, and occasionally, a man will be found who loves the power, although unconsciously, for the pleasure he obtains in lording over other human beings. This quality is present more or less in all human beings. It is particularly strong in the savage, who likes to torture captured human beings and animals, and perhaps the greatest test for high qualifications of character and gentleness is that of having power over other human beings without unnecessarily accenting the difference in the situation. Under Military Management, there is practically no limit to this power, the management being satisfied if the foreman gets the work out of the men, and the men having practically no one to appeal to, and being obliged to receive their punishment always from the hands of a prejudiced party.

Little Possibility of Development of Will. — Being under such influence as this, there is little or no possibility of the development of an intelligent will. The "will to do" becomes stunted, unless the pay is large enough to lead the man to be willing to undergo abuses in order to get the money. There is nothing, moreover, in the aspect of the management itself to lead the man to have a feeling of confidence either in himself, or in the management, and to have that moral poise which will make him wish to advance.

Real Capacity Not Increased. — With the likelihood of suspicion, hate and jealousy arising, and with constant preparations for conflict, of which the average union and employers' association is the embodiment, naturally, real capacity is not increased, but is rather decreased, under this form of management, and we may ascribe this to three faults:

First, to lack of recognition of individuality, — men are handled mostly as gangs, and personality is sunk.

Second, to lack of standardization, and to lack of time study, that fundamental of all standardization, which leads to absolute inability to make a measured, and therefore scientific judgment, and

Third, to the lack of teaching; to the lack of all constructiveness.

These three lacks, then, constitute a strong reason why Traditional Management does not add to the welfare of the men.

Little Systematized Welfare Work Under Traditional Management. — As for welfare work, — that is, work which the employers themselves plan to benefit the men, if under such work be included timely impulses of the management for the men, and the carrying of these out in a more or less systematic way, it will be true to say that such welfare work has existed in all times, and under all forms of management. The kind-hearted man will show his kind heart wherever he is, but it is likewise true to say that little systematic beneficial work is done under what we have defined as Traditional Management.

Definite Statements as to Welfare Under Transitory Management Difficult To Make. — It is almost impossible to give any statement as to the general welfare of workers under Transitory Management, because, from the very nature of the case, Transitory Management is constantly changing. In the discussion of the various chapters, and in showing how individuality, functionalization, measurement, and so on, were introduced, and the psychological effect upon the men of their being introduced, welfare was more or less unsystematically considered. In turning to the discussion under Scientific Management and showing how welfare is the result of Scientific Management and is incorporated in it, much as to its growth will be included.

Welfare Work Under Transitory Management Is Usually Commendable. — As to the welfare work under Transitory Management, much could be said, and much has been said and written. Typical Welfare Work under Transitory Management deserves nothing but praise. It is the result of the dedication of many beautiful lives to a beautiful cause. It consists of such work as building rest rooms for the employés, in providing for amusements, in providing for better working conditions, in helping to better living conditions, in providing for some sort of a welfare worker who can talk with the employés and benefit them in every way, including being their representative in speaking with the management.

An Underlying Flaw Is Apparent. — There can be no doubt that an enormous quantity of good has been done by this welfare work, both positively, to the employés themselves, and indirectly, to the management, through fostering a kinder feeling. There is, however, a flaw to be found in the underlying principles of this welfare work as introduced in Transitory Management, and that is that it takes on more or less the aspect of a charity, and is so regarded both by the employés and by the employer. The employer, naturally, prides himself more or less upon doing something which is good, and the employé naturally resents more or less having something given to him as a sort of charity which he feels his by right.

Its Effect Is Detrimental. — The psychological significance of this is very great. The employer, feeling that he has bestowed a gift, is, naturally, rather chagrined to find it is received either as a right, or with a feeling of resentment. Therefore, he is often led to decrease what he might otherwise do, for it is only an unusual and a very high type of mind that can be satisfied simply with the doing of the good act, without the return of gratitude. On the other hand, the employé, if he be a man of pride, may resent charity even in such a general form as this, and may, with an element of rightness, prefer that the money to be expended be put into his pay envelope, instead. If it is simply a case of better working conditions, something that improves him as an efficient worker for the management, he will feel that this welfare work is in no sense something which he receives as a gift, but rather something which is his right, and which benefits the employer exactly as much, if not more than it benefits him.

Welfare Work Not Self-perpetuating. — Another fault which can be found with the actual administration of the welfare work, is the fact that it often disregards one of the fundamental principles of Scientific Management, in that the welfare workers themselves do not train enough people to follow in their footsteps, and thus make welfare self-perpetuating.

In one case which the writer has in mind, a noble woman is devoting her life to the welfare of a body of employés in an industry which greatly requires such work. The work which she is doing is undoubtedly benefiting these people in every aspect, not only of their business but of their home lives, but it is also true that should she be obliged to give up the work, or be suddenly called away, the work would practically fall to pieces. It is built up upon her personality, and, wonderful as it is, its basis must be recognized as unscientific and temporary.

Scientific Provision for Welfare Under Scientific Management. — Under Scientific Management general welfare is provided for by: —

The effect that the work has on physical improvement. This we shall discuss under three headings —

1. the regularity of the work.

2. habits.

3. physical development.

As for the regularity of the work — we have

(a) The apportionment of the work and the rest. Under Scientific Management, work time and rest time are scientifically apportioned. This means that the man is able to come to each task with the same amount of strength, and that from his work he gains habits of regularity.

(b) The laying out of the work. The standards upon which the instruction cards are based, and the method of preparing them, assure regularity.

(c) The manner of performing the work. Every time that identical work is done, it is done in an identical manner.

The resulting regularity has an excellent effect upon the physical welfare of the worker.

2. Habits, under Scientific Management,

(a) are prescribed by standards. The various physical habits of the man, the motions that are used, having all been timed and then standardized, the worker acquires physical habits that are fixed.

(b) are taught; 1 therefore they are not remote but come actually and promptly into the consciousness and into the action of the worker.

(c) are retained, because they are standard habits and because the rewards which are given for using them make it an object to the worker to retain them.

(d) Are reënforced by individuality and functionalization; that is to say, the worker is considered as an individual, and his possibilities are studied, before he is put into the work; therefore, his own individuality and his own particular function naturally reënforce those habits which he is taught to form. These habits, being scientifically derived, add to physical improvement.

3. Physical development

(a) is fostered through the play element, has been scientifically studied, and is utilized as far as possible; the same is true of the love of work, which is reënforced by the fact that the man has been placed where he will have the most love for his work.

(b) is insured by the love of contest, which is provided for not only by contest with others, but by the constant contest of the worker with his own previous records. When he does exceed these records he utilizes powers which it is for his good physically, as well as otherwise, to utilize.

Results of Physical Improvement. — This regularity, good habits, and physical development, result in good health, increased strength and a better appearance. To these three results all scientific managers testify. An excellent example of this is found in Mr. Gantt's "Work, Wages and Profits," where the increased health, the better color and the better general appearance of the workers under Scientific Management is commented on as well as the fact that they are inspired by their habits to dress themselves better and in every way to become of a higher type. 2

Mental Development. — Welfare under Scientific Management is provided for by Mental Development. This we may discuss under habits, and under general mental development.

1. As for habits we must consider

(a) Habits of attention. Under Scientific Management, as we have shown, attention must become a habit. Only when it does become a habit, can the work required be properly performed, and the reward received. As only those who show themselves capable of really receiving the reward are considered to be properly placed, ultimately all who remain at work under Scientific Management must attain this habit of attention.

(b) Habit of method of attack. This not only enables the worker to do the things that he is assigned satisfactorily, but also has the broadening effect of teaching him how to do other things, i.e., showing him the "how" of doing things, and giving him standards which are the outcome of mental habits, and by which he learns to measure.

2. General mental development is provided for by the experience which the worker gets not only in the general way in which all who work must give experience, but in the set way provided for by Scientific Management. This is so presented to the worker that it becomes actually usable at once. This not only allows him to judge others, but provides for self-knowledge, which is one of the most valuable of all of the outcomes of Scientific Management. He becomes mentally capable of estimating his own powers and predicting what he himself is capable of doing. The outcome of this mental development is

(a) wider interest.

(b) deeper interest.

(c) increased mental capabilities.

The better method of attack would necessarily provide for wider interest. The fact that any subject taken up is in its ultimate final unit form, would certainly lead to deeper interest; and the exercise of these two faculties leads to increased mental capabilities.

Moral Development. — Moral development under Scientific Management results from the provisions made for cultivating —

1. personal responsibility.

2. responsibility for others.

3. appreciation of standing.

4. self-control.

5. "squareness."

1. Personal responsibility is developed by

(a) Individual recognition. When the worker was considered merely as one of a gang, it was very easy for him to shift responsibilities upon others. When he knows that he is regarded by the management, and by his mates, as an individual, that what he does will show up in an individual record, and will receive individual reward or punishment, necessarily personal responsibility is developed.

Moreover, this individual recognition is brought to his mind by his being expected to fill out his own instruction card. In this way, his personal responsibility is specifically brought home to him.

(b) The appreciation which comes under Scientific Management. This appreciation takes the form of reward and promotion, and of the regard of his fellow-workers; therefore, being a growing thing, as it is under Scientific Management, it insures that his personal responsibility, shall also be a growing thing, and become greater the longer he works under Scientific Management.

2. Responsibility for others is provided for by the inter-relation of all functions. It is not necessary that all workers under Scientific Management should understand all about it. However, many do understand, and the more that they do understand, the more they realize that everybody working under Scientific Management is more or less dependent upon everybody else. Every worker must feel this, more or less, when he realizes that there are eight functional bosses over him, who are closely related to him, on whom he is dependent, and who are more or less dependent upon him. The very fact that the planning is separated from the performing, means that more men are directly interested in any one piece of work; in fact, that every individual piece of work that is done is in some way a bond between a great number of men, some of whom are planning and some of whom are performing it. This responsibility for others is made even more close in the dependent bonuses which are a part of Scientific Management, a man's pay being dependent upon the work of those who are working under him. Certainly, nothing could bring the fact more closely to the attention of each and every worker under this system, than associating it with the pay envelope.