Increasing Human Efficiency in Business / A Contribution to the Psychology of Business

by Walter Dill Scott

The energetic races, those which have advanced in civilization, live in lands where the struggle for existence has been continuous. Necessity is a hard master, but its rule is indispensable to worthy achievement. The instinct of self-preservation and the industrious attitude are responses which the human race has learned to exercise, in the main, only in case of need. Self-preservation is the first law; where life and personal liberty are dependent upon industry, idleness will not be found. Wealth removes the obligation to toil; hence the poor boy often outdistances his more favored brother.

Individuals work for pay as a means of <p 138> self-preservation, and unless that is satisfactory other motives have but little weight with them. The needs of the self which preservation demands are continuously increasing. The needs of the American-born laborer are greater than those of the Chinaman. Regardless of this higher standard of living and the ever increasing number of ``necessities,'' the instinct of self-preservation acts in connection with them all.

Almost without exception the interest of workers centers in the wage. If they could retain their accustomed wage with less effort, they would do so. If the retention and increase depend on individual production, they will respond to the compulsion.

Every student of psychology recognizes the fact that the wage is more than a means of self-preservation. Man is a distinctly social creature. He has a social self as well as an individual self. His social self demands social approval as much as his individual self demands bread, clothing, and shelter. In our present industrial system this social distinc- <p 139> tion is most often indicated by means of monetary reward. The laborer not only demands that his toil shall provide the means for self- preservation, but he seeks through his wages the social distinction which he feels to be his due. His desire for increase of wages is often partly, and in some instances mainly, due to his craving for distinction or social approval.

In such instances the wage is to be thought of as something comparable to the score of a ball player. The desire for a high score is sufficient motive to beget the most extreme exertion, even though the reward anticipated is nothing more than a sign of distinction and without any relationship whatever to self- preservation.

In common with some of the lower animals man has an instinct to collect and hoard all sorts of things. This instinct is spoken of in psychology as the hoarding or proprietary instinct. In performing instinctive acts we do so with enthusiasm, but blindly. We take great delight in the performing of the act, even though the ultimate result of the act <p 140> may be entirely unknown to us. The squirrel collects and stores nuts with great delight and industry. He has no idea of the approaching winter, but gathers the nuts simply because for him it is the most interesting process in his experience.

Most persons display a like instinctive tendency to make collections and hoard articles. This is particularly apparent in collections of such things as canceled postage stamps, discarded buttons, pebbles, sticks, magazines, and other non-useful articles.

When this hoarding instinct is not controlled by reason or checked by other interests, we have the miser. In a less degree, we all share with the miser his hoarding instinct. We all like to collect money just as the squirrel likes to gather nuts. The octogenarian continues to collect money with unabated zeal, even though he be childless. He is probably not aware that he is collecting merely for the pleasure of collecting.

Since the wage is the means ordinarily employed to awaken in workers the three instincts <p 141> of self-preservation, of social distinction, and of hoarding, it is not strange that an industrial age should regard it as the chief means of increasing efficiency.

The employer has not attempted to discover what instincts were appealed to by the wage, or the most economical method of stimulating these instincts. He has not undervalued the wage in securing efficiency, but rather has assumed that the service secured must be in direct proportion to the amount expended.