This is because of the time study method. Every detail of the work is carefully studied, as has been explained, and everything that will aid the worker to increase his output has been provided. The work is brought to the machine and taken away by labourers, the tools are all specially designed and exactly suited to the work. Instruction cards are given to the worker, so that he can see exactly what he has to do, how he has to do it, and the time he should do it in. If he can do the work sitting better than standing, a chair or stool is provided.
In fact, everything is done to assist the worker to reach a high efficiency, as this means greater production besides greater reward.
The Reward System is, clearly, far better than either day work or piece work. The time study shows what is the best time in which a good average worker can do the job. A trustworthy worker and one who appreciates the time study principle must be selected for the study. If this were not done, a false time might be obtained, and this would lead to doubts as to whether the times of other jobs were correct. This is a difficulty that hardly ever arises, because the worker knows that he is being fairly dealt with, and there is nothing to be gained by getting a false time.
Times once obtained are never altered so long as the conditions remain the same.
Some exceptionally good workmen can make large rewards every week, and it is to the firm's benefit that they should do so. Suppose the price was lowered because of this high reward. The general efficiency of all the workers would fall immediately, and the dissatisfaction with the alteration in price and with the firm's attitude would result in serious loss to all concerned.
The following is an example of what happens under an ordinary bonus scheme when times are reduced:
| Time allowed. | Time taken. | Time saved. | Reward at 10d. | Works Costs at 2s. per Hour, including Labour. | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost. | Reward. | Total. | |||||||||
| Hours. | Hours. | Hours. | s. | d. | s. | d. | s. | d. | s. | d. | |
| Original time | 5 | 4 | 1 | 10 | 8 | 0 | 10 | 8 | 10 | ||
| Cut to | 4 | 3½ | ½ | 5 | 7 | 0 | 5 | 7 | 5 | ||
| Cut to | 3½ | 3 | ½ | 5 | 6 | 0 | 5 | 6 | 5 | ||
| Cut to | 3 | 7 | — | — | 14 | 0 | — | 14 | 0 | ||
| Increased to | 4 | 7 | — | — | 14 | 0 | — | 14 | 0 | ||
| Increased to | 5 | 3½ | 1½ | 1 | 3 | 7 | 0 | 1 | 3 | 8 | 3 |
| Cut to | 4½ | 7 | — | — | 14 | 0 | — | 14 | 0 | ||
In this case the original piece time allowed for the work was five hours, this being an estimate based on the time taken when working under day work. The men were paid at the rate of 10d. per hour, and the works costs, including labour, amounted to 2s. per hour. Bonus was paid on the time saved.
The workers completed the job in four hours, a reduction of one hour on the time set, and thereby earned a bonus of 10d. The time was cut to four hours, and the work was done in three and a half hours, the workers earning a bonus of 5d. It was then cut to three and half hours, and the workers completed the job in three hours. Again the time was cut, but the patience of the workers had reached its limit, and the time taken was seven hours, with a correspondingly increased works cost.
The time was immediately increased to four hours, but with no effect. On increasing the time to the original five hours the workers completed the job in three and a half hours, and earned a very good bonus. Once again the time was cut, with the result that the workers' suspicion was aroused, and the time promptly jumped to seven hours. The workers had learned their lesson!