The relation between reward and standard times has given rise to much discussion and experiment, and the relation selected in Part II. is one that appeals most strongly to the worker as he gets paid for all the time he saves. If reward begins earlier and the worker gets a proportion of the time he saves instead of the whole, reward at standard time should be just the same, or nearly so. It only means that the worker has a better chance of getting a higher reward when he is below the 100 per cent. line, and a smaller one when he is above it.
The following diagrams show the relation between reward and efficiency according to the principal methods in use at the present time, some of them being used in the same factory for different classes of work. A complete diagram is illustrated on p. 88, but, for convenience, only a portion of this is used in most of the other diagrams.
It must be noted that reward at standard time must be never less than 25 per cent. of the job rate, while 30 per cent. to 35 per cent. is fairer.
In order to find the amount of reward at any efficiency, read off the efficiency on the bottom line, run a pencil along the line corresponding to this efficiency until it touches the graph, then run the pencil along horizontally until it reaches the vertical scale. Read off the percentage of reward on the vertical scale.
It will be seen at once that any efficiency below the reward point means that no reward is earned, but that there is no reduction of day wages. (The Taylor and Gantt methods are exceptions to this rule.)
The diagram on p. 88 is a descriptive one. The first column shows wages plus reward on a wage basis of 8d. per hour.
The second column shows wages plus reward on a wage basis of 10d. per hour.
The third column shows the proportion of the reward to the day wage for any efficiency, the day wage being considered 100 per cent.
The efficiencies are shown along the bottom line, and the 100 per cent. efficiency line is dotted.