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 12x19= $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 10c or 5c 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 h
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