This step is to give each girl each day a carefully measured task which demands a full day's work from a competent operative, and also to give her a large premium or bonus whenever she accomplishes this task.
This was done in this case through establishing what is known as differential rate piece work.*
[*Footnote: See paper read before the American Society of Mechanical
Engineers, by Fred. W. Taylor, Vol. XVI, p. 856, entitled "Piece Rate
System.">[
Under this system the pay of each girl was increased in proportion to the quantity of her output and also still more in proportion to the accuracy of her work.
As will be shown later, the differential rate (the lots inspected by the over-inspectors forming the basis for the differential) resulted in a large gain in the quantity of work done and at the same time in a marked improvement in the quality.
Before they finally worked to the best advantage it was found to be necessary to measure the output of each girl as often as once every hour, and to send a teacher to each individual who was found to be falling behind to find what was wrong, to straighten her out, and to encourage and help her to catch up.
There is a general principle back of this which should be appreciated by all of those who are especially interested in the management of men.
A reward, if it is to be effective in stimulating men to do their best work, must come soon after the work has been done. But few men are able to look forward for more than a week or perhaps at most a month, and work hard for a reward which they are to receive at the end of this time.
The average workman must be able to measure what he has accomplished and clearly see his reward at the end of each day if he is to do his best. And more elementary characters, such as the young girls inspecting bicycle balls, or children, for instance, should have proper encouragement either in the shape of personal attention from those over them or an actual reward in sight as often as once an hour.
This is one of the principal reasons why cooperation or "profit-sharing" either through selling stock to the employees or through dividends on wages received at the end of the year, etc., have been at the best only mildly effective in stimulating men to work hard. The nice time which they are sure to have to-day if they take things easily and go slowly proves more attractive than steady hard work with a possible reward to be shared with others six months later. A second reason for the inefficiency of profit-sharing schemes had been that no form of cooperation has yet been devised in which each individual is allowed free scope for his personal ambition. Personal ambition always has been and will remain a more powerful incentive to exertion than a desire for the general welfare. The few misplaced drones, who do the loafing and share equally in the profits, with the rest, under cooperation are sure to drag the better men down toward their level.