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 "Cooeperation," 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 cooeperation are, first in the fact that no form of cooeperation
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 a
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