EMERSON EFFICIENCY SYSTEM
The most recent wage system is the Efficiency System, evolved and perfected in theory by Mr. H. Emerson and his assistants and practically applied by the officials in the shops of the Santa Fé Railway.
Fig. 3. Diagram of the Gantt Premium Wage System
This wage system superficially resembles the Halsey line, Fig. 4, but in theory and in fact differs radically from all previous wage systems, although it embodies much that was best in all of them. It retains the principle of day pay irrespective of performance. It retains in modified form the principle of a flat piece rate. Like the Halsey system, it pays more per piece for less competent work. Above all, it retains Mr. Taylor's and Mr. Gantt's principle of accurate and scientific shop organization, including standard times for every job and operation.
It pays a high premium above wage or piece rate for coöperation or assistant foremanship on the part of the worker, and finally, as part of regular and daily shop practice, it revises erroneous schedules whether they be too low or too high, and it makes this revision without lessening the earning power of the worker. In addition it substitutes for the costly, annoying, inaccurate time recording of each job, a general monthly efficiency record which covers the shop as a whole, each department, gang, foreman, worker and job, and, based on accurate study and efficiency, it predetermines, before work is begun, the absolute cost of every operation.
These results are facilitated by recognizing that the attainment of standard conditions as to all operations depends on four totally different elements:
(1) The shop itself must be highly organized and efficiently operated. This is a duty that devolves solely on the management, and for poor organization and operation the worker is not responsible.
(2) The character of the work itself, the quality of materials, etc., may vary greatly on the same job at different times. Neither manager nor worker is wholly responsible for this variation.
