Reward begins, however, considerably before this point is reached, because it may be necessary for a worker to be on a job some time before he reaches a high efficiency. Again, sometimes one worker is naturally slower than another, and although his work is good he can reach 100 per cent. efficiency only by special effort. There would be little encouragement if reward did not begin until the worker had reached the 100 per cent. point.
For these reasons, and as an incentive to every man to become as highly efficient as possible, reward begins when the worker reaches 75 per cent. efficiency.
(This particular figure of 75 per cent. is taken to illustrate the method, and because it is frequently used as the reward point. Any percentage may be used, and several methods are given in Part III.)
This means that a time addition of 33⅓ per cent. is made to the standard time or standard production in order to obtain a new figure, which is called "reward time" or "reward production," because it is the point where reward begins.
The following are three brief examples showing the working out of the reward earned:
| I. | II. | |
|---|---|---|
| Base time | 12 hours | 8 hours |
| Standard time (= base + 25%) | 15 hours | 10 hours |
| Reward time (= standard + 33⅓%) | 20 hours | 13·3 hours |
| Time taken | 16½ hours | 8·5 hours |
| Time saved | 3½ hours | 4·8 hours |
| Rate per hour | 9d. | 9d. |
| Reward | 3½ × 9 = 2s. 8d. | 4·8 × 9 = 3s. 7d. |
| Reward, week of 48 hours | 7s. 9d. | 20s. 2d. |
| Weekly day wage | 36s. 0d. | 36s. 0d. |
| Total earnings | 43s. 9d. | 56s. 2d. |
| Efficiency | 91% | 117·5% |
| III. | |
|---|---|
| Base quantity | 40 per hour |
| Standard quantity (= base - 10%) | 36 per hour |
| Reward quantity (= standard - 25%) | 27 per hour |
| Time worked | 6 hours |
| Quantity produced | 220 |
| Reward quantity for 6 hours | 162 |
| Excess quantity | 58 |
| Reward at 27 for 6d. | 1s. |
| Reward for week of 48 hours | 8s. |
| Weekly day wage | 24s. |
| Total earnings | 32s. |
| Efficiency | 102% |
The two first examples are on a time basis, and the third on a quantity basis. These are worked out in detail in Part II.
The first thing that strikes one when these figures are examined is that wages are considerably increased. In view of this increase the worker will want to know more about the conditions under which the work is done, and whether such earnings can be maintained continuously without special effort.
The reply is that such earnings not only can be, but are being, made regularly, and the workers have a greater degree of comfort in their work than they have under usual working conditions.