The economic side of works management .. . ar to be working and so do away with the ne-cessity of changing a job at some inconvenient time. Man-agers of plants are not ignorant of these conditions. Thewilful dishonesty and lack of willing cooperation on the partof the employees have made the daily wage system a poormeans of remuneration for many kinds of work. Wide-awakemen rightly reason that if a scheme could be devised bywhich workmen lose money for idle time, they would not beso inclined to sit with bovine patience until their foremanfinds them out of work and starts them on another task,n
The economic side of works management .. . ar to be working and so do away with the ne-cessity of changing a job at some inconvenient time. Man-agers of plants are not ignorant of these conditions. Thewilful dishonesty and lack of willing cooperation on the partof the employees have made the daily wage system a poormeans of remuneration for many kinds of work. Wide-awakemen rightly reason that if a scheme could be devised bywhich workmen lose money for idle time, they would not beso inclined to sit with bovine patience until their foremanfinds them out of work and starts them on another task,neither would they be apt to waste time wilfully in order tostart new work at a more convenient season or to save a jobwhen work is getting low in the shop. It is rational to assume that the remuneration for laborshould be on the basis of all ordinary commercial transac-tions, that the man should be paid for what he does, thatcompensation should be by the piece-rate system. There canbe no more effective way to prevent idleness, because the. ^1v?4lfeM^^^-l-^: I lo 2 3 4 5 6 r* 8 *-^-Pieces PETf? Hoof^-— Fig. 24.—Comparison of the Time-Rate and Piece-Rate Systems. 218 THE PRINCIPLES OF INDUSTRIAL MANAGEMENT idler is fully as much a loser as the firm. Viewed from theworkmans standpoint, there can be no more profitable meansof remuneration. Fig. 24, on lines BB^ shows that on thepiece-rate system of wage payment a man automaticallyraises his hourly rate by increasing the output. The firmapparently does not gain directly from the increased effort,as is shown by the fact that the wage cost per piece is a con-stant quantity. (See lines B B^ Fig. 24.) From the dia-gram one would conclude that the piece-rate system of wagepayment would be a system strongly advocated by the work-man. The opponents of the piece-rate system are not theemployers, but the men. Their opposition is based upongood reason, and yet, from the employers point of view, itis almost impossible to eliminate the obje
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