It seemed that they had reached "the dead
line" where wage stimulus fails to draw its hoped for response.
To get from the workers the highest efficiency the scientifically
managed plants pay for a task a stated rate based on piece or time; if
the task is performed within the time set and the directions for doing
the task as laid out by the management, are followed, the worker
receives in addition to the regular rate, a bonus. Mr. H.L. Grant,
while working with Mr. Taylor, discovered that there was weakness in
the system of paying bonuses, and the weakness was not overcome until
he devised a method of paying the workman for the time allowed plus
a percentage of that time according to what he did. This method he
declares constantly induced further effort and overcame what they
discovered was the weakness in a flat bonus. As fair or as superior as
this bonus may be in relation to the prevailing rate in the market,
managers say that the workers are apt in time to fall below the
standard as their work becomes routine, unless the incentive after a
time is increased or changed in character. In other words the wage
incentive is like a virus injection. The dose is not continuously
effective, except as the amount is increased or altered.
A usual method of keeping alive the financial incentive is profit
sharing and schemes for participation in profits, but they are rewards
of general merit and bids for continuity of service; they have no
direct relation to the workers' efficiency and compliance with
standards which distinguish the wage rewards of scientifically managed
plants.
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