as 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