The majority of successful employers have advanced beyond this negative, defensive attitude and take a positive and aggressive position in dealing with the problem.
Instead of assuming their work accomplished when the men are not dissatisfied or rebellious, they do not rest until every dollar paid out in wages is above par in its influence upon efficiency.
Thus in innumerable ways the progressive employer increases the value of all wages he <p 162> pays by making them appeal to the reason and to the instincts of workers in a way un- dreamed of by less enlightened men. The purpose of wages is to produce a certain psychological effect and to promote the most favorable attitude on the part of the worker. The methods of increasing the purchasing power of money thus spent is one of the most interesting and yet complex problems which the business man has to face.
This chapter shows the psychological ground for the following statements:—
Employees differ in their response to piecework rates and to salaries. Some respond more satisfactorily to one and some to the other.
When the development of men for better positions is of prime importance, the piecework system is not to be adopted. If the quantity of work per unit of wage is of greatest importance, then some form of wage other than fixed salary should be used.
An employee should not be dismissed as hopelessly lazy till he has shown this attitude <p 163> in more than one department or has failed to respond to different forms of stimulation.
Changes in wages may often be placed under the authority of some person or committee other than the immediate superiors of the employees involved. This authority may be vested in the direct representatives of the executives or in such a committee as would be formed by representatives of the executives and also employees from the different departments of the establishment.
Payment of wages, so far as possible, should be made to appeal to the instincts for social distinction and for acquisition as well as to the instinct for self-preservation.
Wages should never be reduced without a tactful and sincere attempt to convince the men of the necessity of such an act.