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+The Project Gutenberg EBook of Shop Management, by Frederick Winslow Taylor
+#2 in our series by Frederick Winslow Taylor
+
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+Title: Shop Management
+
+Author: Frederick Winslow Taylor
+
+Release Date: September, 2004 [EBook #6464]
+[Yes, we are more than one year ahead of schedule]
+[This file was first posted on December 17, 2002]
+
+Edition: 10
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+Language: English
+
+Character set encoding: ASCII
+
+*** START OF THE PROJECT GUTENBERG EBOOK SHOP MANAGEMENT ***
+
+
+
+
+Transcribed by Charles E. Nichols
+
+
+
+
+Shop Management
+
+By
+
+Frederick Winslow Taylor
+
+1911
+
+
+
+
+
+
+Through his business in changing the methods of shop management, the
+writer has been brought into intimate contact over a period of years
+with the organization of manufacturing and industrial establishments,
+covering a large variety and range of product, and employing workmen in
+many of the leading trades.
+
+In taking a broad view of the field of management, the two facts which
+appear most noteworthy are:
+
+(a) What may be called the great unevenness, or lack of uniformity
+shown, even in our best run works, in the development of the several
+elements, which together constitute what is called the management.
+
+(b) The lack of apparent relation between good shop management and the
+payment of dividends.
+
+Although the day of trusts is here, still practically each of the
+component companies of the trusts was developed and built up largely
+through the energies and especial ability of some one or two men who
+were the master spirits in directing its growth. As a rule, this leader
+rose from a more or less humble position in one of the departments, say
+in the commercial or the manufacturing department, until he became the
+head of his particular section. Having shown especial ability in his
+line, he was for that reason made manager of the whole establishment.
+
+In examining the organization of works of this class, it will frequently
+be found that the management of the particular department in which this
+master spirit has grown up towers to a high point of excellence, his
+success having been due to a thorough knowledge of all of the smallest
+requirements of his section, obtained through personal contact, and the
+gradual training of the men under him to their maximum efficiency.
+
+The remaining departments, in which this man has had but little personal
+experience, will often present equally glaring examples of inefficiency.
+And this, mainly because management is not yet looked upon as an art,
+with laws as exact, and as clearly defined, for instance, as the
+fundamental principles of engineering, which demand long and careful
+thought and study. Management is still looked upon as a question of men,
+the old view being that if you have the right man the methods can be
+safely left to him.
+
+The following, while rather an extreme case, may still be considered as
+a fairly typical illustration of the unevenness of management. It became
+desirable to combine two rival manufactories of chemicals. The great
+obstacle to this combination, however, and one which for several years
+had proved insurmountable was that the two men, each of whom occupied
+the position of owner and manager of his company, thoroughly despised
+one another. One of these men had risen to the top of his works through
+the office at the commercial end, and the other had come up from a
+workman in the factory. Each one was sure that the other was a fool, if
+not worse. When they were finally combined it was found that each was
+right in his judgment of the other in a certain way. A comparison of
+their books showed that the manufacturer was producing his chemicals
+more than forty per cent cheaper than his rival, while the business man
+made up the difference by insisting on maintaining the highest quality,
+and by his superiority in selling, buying, and the management of the
+commercial side of the business. A combination of the two, however,
+finally resulted in mutual respect, and saving the forty per cent
+formerly lost by each man.
+
+The second fact that has struck the writer as most noteworthy is that
+there is no apparent relation in many, if not most cases, between good
+shop management and the success or failure of the company, many
+unsuccessful companies having good shop management while the reverse is
+true of many which pay large dividends.
+
+We, however, who are primarily interested in the shop, are apt to forget
+that success, instead of hinging upon shop management, depends in many
+cases mainly upon other elements, namely,--the location of the
+company, its financial strength and ability, the efficiency of its
+business and sales departments, its engineering ability, the superiority
+of its plant and equipment, or the protection afforded either by
+patents, combination, location or other partial monopoly.
+
+And even in those cases in which the efficiency of shop management might
+play an important part it must be remembered that for success no company
+need be better organized than its competitors.
+
+The most severe trial to which any system can be subjected is that of a
+business which is in keen competition over a large territory, and in
+which the labor cost of production forms a large element of the expense,
+and it is in such establishments that one would naturally expect to find
+the best type of management.
+
+Yet it is an interesting fact that in several of the largest and most
+important classes of industries in this country shop practice is still
+twenty to thirty years behind what might be called modern management.
+Not only is no attempt made by them to do tonnage or piece work, but the
+oldest of old-fashioned day work is still in vogue under which one
+overworked foreman manages the men. The workmen in these shops are still
+herded in classes, all of those in a class being paid the same wages,
+regardless of their respective efficiency.
+
+In these industries, however, although they are keenly competitive, the
+poor type of shop management does not interfere with dividends, since
+they are in this respect all equally bad.
+
+It would appear, therefore, that as an index to the quality of shop
+management the earning of dividends is but a poor guide.
+
+Any one who has the opportunity and takes the time to study the subject
+will see that neither good nor bad management is confined to any one
+system or type. He will find a few instances of good management
+containing all of the elements necessary for permanent prosperity for
+both employers and men under ordinary day work, the task system, piece
+work, contract work, the premium plan, the bonus system and the
+differential rate; and he will find a very much larger number of
+instances of bad management under these systems containing as they do
+the elements which lead to discord and ultimate loss and trouble for
+both sides.
+
+If neither the prosperity of the company nor any particular type or
+system furnishes an index to proper management, what then is the
+touchstone which indicates good or bad management?
+
+The art of management has been defined, "as knowing exactly what you
+want men to do, and then seeing that they do it in the best and cheapest
+way.'" No concise definition can fully describe an art, but the
+relations between employers and men form without question the most
+important part of this art. In considering the subject, therefore, until
+this part of the problem has been fully discussed, the other phases of
+the art may be left in the background.
+
+The progress of many types of management is punctuated by a series of
+disputes, disagreements and compromises between employers and men, and
+each side spends more than a considerable portion of its time thinking
+and talking over the injustice which it receives at the hands of the
+other. All such types are out of the question, and need not be
+considered.
+
+It is safe to say that no system or scheme of management should be
+considered which does not in the long run give satisfaction to both
+employer and employee, which does not make it apparent that their best
+interests are mutual, and which does not bring about such thorough and
+hearty cooperation that they can pull together instead of apart. It
+cannot be said that this condition has as yet been at all generally
+recognized as the necessary foundation for good management. On the
+contrary, it is still quite generally regarded as a fact by both sides
+that in many of the most vital matters the best interests of employers
+are necessarily opposed to those of the men. In fact, the two elements
+which we will all agree are most wanted on the one hand by the men and
+on the other hand by the employers are generally looked upon as
+antagonistic.
+
+What the workmen want from their employers beyond anything else is high
+wages, and what employers want from their workmen most of all is a low
+labor cost of manufacture.
+
+These two conditions are not diametrically opposed to one another as
+would appear at first glance. On the contrary, they can be made to go
+together in all classes of work, without exception, and in the writer's
+judgment the existence or absence of these two elements forms the best
+index to either good or bad management.
+
+This book is written mainly with the object of advocating high wages and
+low labor cost as the foundation of the best management, of pointing out
+the general principles which render it possible to maintain these
+conditions even under the most trying circumstances, and of indicating
+the various steps which the writer thinks should be taken in changing
+from a poor system to a better type of management.
+
+The condition of high wages and low labor cost is far from being
+accepted either by the average manager or the average workman as a
+practical working basis. It is safe to say that the majority of
+employers have a feeling of satisfaction when their workmen are
+receiving lower wages than those of their competitors. On the other hand
+very many workmen feel contented if they find themselves doing the same
+amount of work per day as other similar workmen do and yet are getting
+more pay for it. Employers and workmen alike should look upon both of
+these conditions with apprehension, as either of them are sure, in the
+long run, to lead to trouble and loss for both parties.
+
+Through unusual personal influence and energy, or more frequently
+through especial conditions which are but temporary, such as dull times
+when there is a surplus of labor, a superintendent may succeed in
+getting men to work extra hard for ordinary wages. After the men,
+however, realize that this is the case and an opportunity comes for them
+to change these conditions, in their reaction against what they believe
+unjust treatment they are almost sure to lean so far in the other
+direction as to do an equally great injustice to their employer.
+
+On the other hand, the men who use the opportunity offered by a scarcity
+of labor to exact wages higher than the average of their class, without
+doing more than the average work in return, are merely laying up trouble
+for themselves in the long run. They grow accustomed to a high rate of
+living and expenditure, and when the inevitable turn comes and they are
+either thrown out of employment or forced to accept low wages, they are
+the losers by the whole transaction.
+
+The only condition which contains the elements of stability and
+permanent satisfaction is that in which both employer and employees are
+doing as well or better than their competitors are likely to do, and
+this in nine cases out of ten means high wages and low labor cost, and
+both parties should be equally anxious for these conditions to prevail.
+With them the employer can hold his own with his competitors at all
+times and secure sufficient work to keep his men busy even in dull
+times. Without them both parties may do well enough in busy times, but
+both parties are likely to suffer when work becomes scarce.
+
+The possibility of coupling high wages with a low labor cost rests
+mainly upon the enormous difference between the amount of work which a
+first-class man can do under favorable circumstances and the work which
+is actually done by the average man.
+
+That there is a difference between the average and the first-class man
+is known to all employers, but that the first-class man can do in most
+cases from two to four times as much as is done by an average man is
+known to but few, and is fully realized only by those who have made a
+thorough and scientific study of the possibilities of men.
+
+The writer has found this enormous difference between the first-class
+and average man to exist in all of the trades and branches of labor
+which he has investigated, and these cover a large field, as he,
+together with several of his friends, has been engaged with more than
+usual opportunities for thirty years past in carefully and
+systematically studying this subject.
+
+The difference in the output of first-class and average men is as little
+realized by the workmen as by their employers. The first-class men know
+that they can do more work than the average, but they have rarely made
+any careful study of the matter. And the writer has over and over again
+found them utterly incredulous when he informed them, after close
+observation and study, how much they were able to do. In fact, in most
+cases when first told that they are able to do two or three times as
+much as they have done they take it as a joke and will not believe that
+one is in earnest.
+
+It must be distinctly understood that in referring to the possibilities
+of a first-class man the writer does not mean what he can do when on a
+spurt or when he is over-exerting himself, but what a good man can keep
+up for a long term of years without injury to his health. It is a pace
+under which men become happier and thrive.
+
+The second and equally interesting fact upon which the possibility of
+coupling high wages with low labor cost rests, is that first-class men
+are not only willing but glad to work at their maximum speed, providing
+they are paid from 30 to 100 per cent more than the average of their
+trade.
+
+The exact percentage by which the wages must be increased in order to
+make them work to their maximum is not a subject to be theorized over,
+settled by boards of directors sitting in solemn conclave, nor voted
+upon by trades unions. It is a fact inherent in human nature and has
+only been determined through the slow and difficult process of trial and
+error.
+
+The writer has found, for example, after making many mistakes above and
+below the proper mark, that to get the maximum output for ordinary shop
+work requiring neither especial brains, very close application, skill,
+nor extra hard work, such, for instance, as the more ordinary kinds of
+routine machine shop work, it is necessary to pay about 30 per cent more
+than the average. For ordinary day labor requiring little brains or
+special skill, but calling for strength, severe bodily exertion, and
+fatigue, it is necessary to pay from 50 per cent to 60 per cent above
+the average. For work requiring especial skill or brains, coupled with
+close application, but without severe bodily exertion, such as the more
+difficult and delicate machinist's work, from 70 per cent to 80 per cent
+beyond the average. And for work requiring skill, brains, close
+application, strength, and severe bodily exertion, such, for instance,
+as that involved in operating a well run steam hammer doing
+miscellaneous work, from 80 per cent to 100 per cent beyond the average.
+
+There are plenty of good men ready to do their best for the above
+percentages of increase, but if the endeavor is made to get the right
+men to work at this maximum for less than the above increase, it will be
+found that most of them will prefer their old rate of speed with the
+lower pay. After trying the high speed piece work for a while they will
+one after another throw up their jobs and return to the old day work
+conditions. Men will not work at their best unless assured a good
+liberal increase, which must be permanent.
+
+It is the writer's judgment, on the other hand, that for their own good
+it is as important that workmen should not be very much over-paid, as it
+is that they should not be under-paid. If over-paid, many will work
+irregularly and tend to become more or less shiftless, extravagant, arid
+dissipated. It does not do for most men to get rich too fast. The
+writer's observation, however, would lead him to the conclusion that
+most men tend to become more instead of less thrifty when they receive
+the proper increase for an extra hard day's work, as, for example, the
+percentages of increase referred to above. They live rather better,
+begin to save money, become more sober, and work more steadily. And this
+certainly forms one of the strongest reasons for advocating this type of
+management.
+
+In referring to high wages and low labor cost as fundamental in good
+management, the writer is most desirous not to be misunderstood.
+
+By high wages he means wages which are high only with relation to the
+average of the class to which the man belongs and which are paid only to
+those who do much more or better work than the average of their class.
+He would not for an instant advocate the use of a high-priced tradesman
+to do the work which could be done by a trained laborer or a
+lower-priced man. No one would think of using a fine trotter to draw a
+grocery wagon nor a Percheron to do the work of a little mule. No more
+should a mechanic be allowed to do work for which a trained laborer can
+be used, and the writer goes so far as to say that almost any job that
+is repeated over and over again, however great skill and dexterity it
+may require, providing there is enough of it to occupy a man throughout
+a considerable part of the year, should be done by a trained laborer and
+not by a mechanic. A man with only the intelligence of an average
+laborer can be taught to do the most difficult and delicate work if it
+is repeated enough times; and his lower mental caliber renders him more
+fit than the mechanic to stand the monotony of repetition. It would seem
+to be the duty of employers, therefore, both in their own interest and
+in that of their employees, to see that each workman is given as far as
+possible the highest class of work for which his brains and physique fit
+him. A man, however, whose mental caliber and education do not fit him
+to become a good mechanic (and that grade of man is the one referred to
+as belonging to the "laboring class"), when he is trained to do some few
+especial jobs, which were formerly done by mechanics, should not expect
+to be paid the wages of a mechanic. He should get more than the average
+laborer, but less than a mechanic; thus insuring high wages to the
+workman, and low labor cost to the employer, and in this way making it
+most apparent to both that their interests are mutual.
+
+To summarize, then, what the aim in each establishment should be:
+
+(a) That each workman should be given as far as possible the highest
+grade of work for which his ability and physique fit him.
+
+(b) That each workman should be called upon to turn out the maximum
+amount of work which a first-rate man of his class can do and thrive.
+
+(c) That each workman, when he works at the best pace of a first-class
+man, should be paid from 30 per cent to 100 per cent according to the
+nature of the work which he does, beyond the average of his class.
+
+And this means high wages and a low labor cost. These conditions not
+only serve the best interests of the employer, but they tend to raise
+each workman to the highest level which he is fitted to attain by making
+him use his best faculties, forcing him to become and remain ambitious
+and energetic, and giving him sufficient pay to live better than in the
+past.
+
+Under these conditions the writer has seen many first-class men
+developed who otherwise would have remained second or third class all of
+their lives.
+
+Is not the presence or absence of these conditions the best indication
+that any system of management is either well or badly applied? And in
+considering the relative merits of different types of management, is not
+that system the best which will establish these conditions with the
+greatest certainty, precision, and speed?
+
+In comparing the management of manufacturing and engineering companies
+by this standard, it is surprising to see how far they fall short. Few
+of those which are best organized have attained even approximately the
+maximum output of first-class men.
+
+Many of them are paying much higher prices per piece than are required
+to secure the maximum product while owing to a bad system, lack of exact
+knowledge of the time required to do work, and mutual suspicion and
+misunderstanding between employers and men, the output per man is so
+small that the men receive little if any more than average wages, both
+sides being evidently the losers thereby. The chief causes which produce
+this loss to both parties are: First (and by far the most important),
+the profound ignorance of employers and their foremen as to the time in
+which various kinds of work should be done, and this ignorance is shared
+largely by the workmen. Second: The indifference of the employers and
+their ignorance as to the proper system of management to adopt and the
+method of applying it, and further their indifference as to the
+individual character, worth, and welfare of their men. On the part of
+the men the greatest obstacle to the attainment of this standard is the
+slow pace which they adopt, or the loafing or "soldiering,'" marking
+time, as it is called.
+
+This loafing or soldiering proceeds from two causes. First, from the
+natural instinct and tendency of men to take it easy, which may be
+called natural soldiering. Second, from more intricate second thought
+and reasoning caused by their relations with other men, which may be
+called systematic soldiering. There is no question that the tendency of
+the average man (in all walks of life) is toward working at a slow, easy
+gait, and that it is only after a good deal of thought and observation
+on his part or as a result of example, conscience, or external pressure
+that he takes a more rapid pace.
+
+There are, of course, men of unusual energy, vitality, and ambition who
+naturally choose the fastest gait, set up their own standards, and who
+will work hard, even though it may be against their best interests. But
+these few uncommon men only serve by affording a contrast to emphasize
+the tendency of the average.
+
+This common tendency to "take it easy" is greatly increased by bringing
+a number of men together on similar work and at a uniform standard rate
+of pay by the day.
+
+Under this plan the better men gradually but surely slow down their gait
+to that of the poorest and least efficient. When a naturally energetic
+man works for a few days beside a lazy one, the logic of the situation
+is unanswerable: "Why should I work hard when that lazy fellow gets the
+same pay that I do and does only half as much work?"
+
+A careful time study of men working under these conditions will disclose
+facts which are ludicrous as well as pitiable.
+
+To illustrate: The writer has timed a naturally energetic workman who,
+while going and coming from work, would walk at a speed of from three to
+four miles per hour, and not infrequently trot home after a day's work.
+On arriving at his work he would immediately slow down to a speed of
+about one mile an hour. When, for example, wheeling a loaded wheelbarrow
+he would go at a good fast pace even up hill in order to be as short a
+time as possible under load, and immediately on the return walk slow
+down to a mile an hour, improving every opportunity for delay short of
+actually sitting down. In order to be sure not to do more than his lazy
+neighbor he would actually tire himself in his effort to go slow.
+
+These men were working under a foreman of good reputation and one highly
+thought of by his employer who, when his attention was called to this
+state of things, answered: "Well, I can keep them from sitting down, but
+the devil can't make them get a move on while they are at work."
+
+The natural laziness of men is serious, but by far the greatest evil
+from which both workmen and employers are suffering is the systematic
+soldiering which is almost universal under all of the ordinary schemes
+of management and which results from a careful study on the part of the
+workmen of what they think will promote their best interests.
+
+The writer was much interested recently to hear one small but
+experienced golf caddy boy of twelve explaining to a green caddy who had
+shown special energy and interest the necessity of going slow and
+lagging behind his man when he came up to the ball, showing him that
+since they were paid by the hour, the faster they went the less money
+they got, and finally telling him that if he went too fast the other
+boys would give him a licking.
+
+This represents a type of systematic soldiering which is not, however,
+very serious, since it is done with the knowledge of the employer, who
+can quite easily break it up if he wishes.
+
+The greater part of the systematic soldiering, however, is done by the
+men with the deliberate object of keeping their employers ignorant of
+how fast work can be done.
+
+So universal is soldiering for this purpose, that hardly a competent
+workman can be found in a large establishment, whether he works by the
+day or on piece work, contract work or under any of the ordinary systems
+of compensating labor, who does not devote a considerable part of his
+time to studying just how slowly he can work and still convince his
+employer that he is going at a good pace.
+
+The causes for this are, briefly, that practically all employers
+determine upon a maximum sum which they feel it is right for each of
+their classes of employees to earn per day, whether their men work by
+the day or piece.
+
+Each workman soon finds out about what this figure is for his particular
+case, and he also realizes that when his employer is convinced that a
+man is capable of doing more work than he has done, he will find sooner
+or later some way of compelling him to do it with little or no increase
+of pay.
+
+Employers derive their knowledge of how much of a given class of work
+can be done in a day from either their own experience, which has
+frequently grown hazy with age, from casual and unsystematic observation
+of their men, or at best from records which are kept, showing, the
+quickest time in which each job has been done. In many cases the
+employer will feel almost certain that a given job can be done faster
+than it has been, but he rarely cares to take the drastic measures
+necessary to force men to do it in the quickest time, unless he has an
+actual record, proving conclusively how fast the work can be done.
+
+It evidently becomes for each man's interest, then, to see that no job
+is done faster than it has been in the past. The younger and less
+experienced men are taught this by their elders, and all possible
+persuasion and social pressure is brought to bear upon the greedy and
+selfish men to keep them from making new records which result in
+temporarily increasing their wages, while all those who come after them
+are made to work harder for the same old pay.
+
+Under the best day work of the ordinary type, when accurate records are
+kept of the amount of work done by each man and of his efficiency, and
+when each man's wages are raised as he improves, and those who fail to
+rise to a certain standard are discharged and a fresh supply of
+carefully selected men are given work in their places, both the natural
+loafing and systematic soldiering can be largely broken up. This can be
+done, however, only when the men are thoroughly convinced that there is
+no intention of establishing piece work even in the remote future, and
+it is next to impossible to make men believe this when the work is of
+such a nature that they believe piece work to be practicable. In most
+cases their fear of making a record which will be used as a basis for
+piece work will cause them to soldier as much as they dare.
+
+It is, however, under piece work that the art of systematic soldiering
+is thoroughly developed. After a workman has had the price per piece of
+the work he is doing lowered two or three times as a result of his
+having worked harder and increased his output, he is likely to entirely
+lose sight of his employer's side of the case and to become imbued with
+a grim determination to have no more cuts if soldiering can prevent it.
+Unfortunately for the character of the workman, soldiering involves a
+deliberate attempt to mislead and deceive his employer, and thus upright
+and straight-forward workmen are compelled to become more or less
+hypocritical. The employer is soon looked upon as an antagonist, if not
+as an enemy, and the mutual confidence which should exist between a
+leader and his men, the enthusiasm, the feeling that they are all
+working for the same end and will share in the results, is entirely
+lacking.
+
+The feeling of antagonism under the ordinary piecework system becomes in
+many cases so marked on the part of the men that any proposition made by
+their employers, however reasonable, is looked upon with suspicion.
+Soldiering becomes such a fixed habit that men will frequently take
+pains to restrict the product of machines which they are running when
+even a large increase in output would involve no more work on their
+part.
+
+On work which is repeated over and over again and the volume of which is
+sufficient to permit it, the plan of making a contract with a competent
+workman to do a certain class of work and allowing him to employ his own
+men subject to strict limitations, is successful.
+
+As a rule, the fewer the men employed by the contactor and the smaller
+the variety of the work, the greater will be the success under the
+contract system, the reason for this being that the contractor, under
+the spur of financial necessity, makes personally so close a study of
+the quickest time in which the work can be done that soldiering on the
+part of his men becomes difficult and the best of them teach laborers or
+lower-priced helpers to do the work formerly done by mechanics.
+
+The objections to the contract system are that the machine tools used by
+the contractor are apt to deteriorate rapidly, his chief interest being
+to get a large output, whether the tools are properly cared for or not,
+and that through the ignorance and inexperience of the contractor in
+handling men, his employees are frequently unjustly treated.
+
+These disadvantages are, however, more than counterbalanced by the
+comparative absence of soldiering on the part of the men.
+
+The greatest objection to this system is the soldiering which the
+contractor himself does in many cases, so as to secure a good price for
+his next contract.
+
+It is not at all unusual for a contractor to restrict the output of his
+own men and to refuse to adopt improvements in machines, appliances, or
+methods while in the midst of a contract, knowing that his next contract
+price will be lowered in direct proportion to the profits which he has
+made and the improvements introduced.
+
+Under the contract system, however, the relations between employers and
+men are much more agreeable and normal than under piece work, and it is
+to be regretted that owing to the nature of the work done in most shops
+this system is not more generally applicable.
+
+The writer quotes as follows from his paper on "A Piece Rate System,"
+read in 1895, before The American Society of Mechanical Engineers:
+
+"Cooperation, or profit sharing, has entered the mind of every student
+of the subject as one of the possible and most attractive solutions of
+the problem; and there have been certain instances, both in England and
+France, of at least a partial success of cooperative experiments.
+
+"So far as I know, however, these trials have been made either in small
+towns, remote from the manufacturing centers, or in industries which in
+many respects are not subject to ordinary manufacturing conditions.
+
+"Cooperative experiments have failed, and, I think, are generally
+destined to fail, for several reasons, the first and most important of
+which is, that no form of cooperation has yet been devised in which each
+individual is allowed free scope for his personal ambition. Personal
+ambition always has been and will remain a more powerful incentive to
+exertion than a desire for the general welfare. The few misplaced
+drones, who do the loafing and share equally in the profits with the
+rest, under cooperation are sure to drag the better men down toward
+their level.
+
+"The second and almost equally strong reason for failure lies in the
+remoteness of the reward. The average workman (I don't say all men)
+cannot look forward to a profit which is six months or a year away. The
+nice time which they are sure to have today, if they take things easily,
+proves more attractive than hard work, with a possible reward to be
+shared with others six months later.
+
+"Other and formidable difficulties in the path of cooperation are, the
+equitable division of the profits, and the fact that, while workmen are
+always ready to share the profits, they are neither able nor willing to
+share the losses. Further than this, in many cases, it is neither right
+nor just that they should share either in the profits or the losses,
+since these may be due in great part to causes entirely beyond their
+influence or control, and to which they do not contribute."
+
+Of all the ordinary systems of management in use (in which no accurate
+scientific study of the time problem is undertaken, and no carefully
+measured tasks are assigned to the men which must be accomplished in a
+given time) the best is the plan fundamentally originated by Mr. Henry
+R. Towne, and improved and made practical by Mr. F. A. Halsey. This plan
+is described in papers read by Mr. Towne before The American Society of
+Mechanical Engineers in 1886, and by Mr. Halsey in 1891, and has since
+been criticized and ably defended in a series of articles appearing in
+the "American Machinist."
+
+The Towne-Halsey plan consists in recording the quickest time in which a
+job has been done, and fixing this as a standard. If the workman
+succeeds in doing the job in a shorter time, he is still paid his same
+wages per hour for the time he works on the job, and in addition is
+given a premium for having worked faster, consisting of from one-quarter
+to one-half the difference between the wages earned and the wages
+originally paid when the job was done in standard time. Mr. Halsey
+recommends the payment of one third of the difference as the best
+premium for most cases. The difference between this system and ordinary
+piece work is that the workman on piece work gets the whole of the
+difference between the actual time of a job and the standard time, while
+under the Towne-Halsey plan he gets only a fraction of this difference.
+
+It is not unusual to hear the Towne-Halsey plan referred to as
+practically the same as piece work. This is far from the truth, for
+while the difference between the two does not appear to a casual
+observer to be great, and the general principles of the two seem to be
+the same, still we all know that success or failure in many cases hinges
+upon small differences.
+
+In the writer's judgment, the Towne-Halsey plan is a great invention,
+and, like many other great inventions, its value lies in its simplicity.
+
+This plan has already been successfully adopted by a large number of
+establishments, and has resulted in giving higher wages to many workmen,
+accompanied by a lower labor cost to the employer, and at the same time
+materially improving their relations by lessening the feeling of
+antagonism between the two.
+
+This system is successful because it diminishes soldiering, and this
+rests entirely upon the fact that since the workman only receives say
+one-third of the increase in pay that he would get under corresponding
+conditions on piece work, there is not the same temptation for the
+employer to cut prices.
+
+After this system has been in operation for a year or two, if no cuts in
+prices have been made, the tendency of the men to soldier on that
+portion of the work which is being done under the system is diminished,
+although it does not entirely cease. On the other hand, the tendency of
+the men to soldier on new work which is started, and on such portions as
+are still done on day work, is even greater under the Towne-Halsey plan
+than under piece work.
+
+To illustrate: Workmen, like the rest of mankind, are more strongly
+influenced by object lessons than by theories. The effect on men of such
+an object lesson as the following will be apparent. Suppose that two
+men, named respectively Smart and Honest, are at work by the day and
+receive the same pay, say 20 cents per hour. Each of these men is given
+a new piece of work which could be done in one hour. Smart does his job
+in four hours (and it is by no means unusual for men to soldier to this
+extent). Honest does his in one and one-half hours.
+
+Now, when these two jobs start on this basis under the Towne-Halsey plan
+and are ultimately done in one hour each, Smart receives for his job 20
+cents per hour + a premium of 20 cents = a total of 40 cents. Honest
+receives for his job 20 cents per hour + a premium of 3 1/8 cents = a
+total of 23 1/8 cents.
+
+Most of the men in the shop will follow the example of Smart rather than
+that of Honest and will "soldier" to the extent of three or four hundred
+per cent if allowed to do so. The Towne-Halsey system shares with
+ordinary piece work then, the greatest evil of the latter, namely that
+its very foundation rests upon deceit, and under both of these systems
+there is necessarily, as we have seen, a great lack of justice and
+equality in the starting-point of different jobs.
+
+Some of the rates will have resulted from records obtained when a
+first-class man was working close to his maximum speed, while others
+will be based on the performance of a poor man at one-third or one
+quarter speed.
+
+The injustice of the very foundation of the system is thus forced upon
+the workman every day of his life, and no man, however kindly disposed
+he may be toward his employer, can fail to resent this and be seriously
+influenced by it in his work. These systems are, therefore, of necessity
+slow and irregular in their operation in reducing costs. They "drift"
+gradually toward an increased output, but under them the attainment of
+the maximum output of a first-class man is almost impossible.
+
+Objection has been made to the use of the word "drifting" in this
+connection. It is used absolutely without any intention of slurring the
+Towne-Halsey system or in the least detracting from its true merit.
+
+It appears to me, however, that "drifting" very accurately describes it,
+for the reason that the management, having turned over the entire
+control of the speed problem to the men, the latter being influenced by
+their prejudices and whims, drift sometimes in one direction and
+sometimes in another; but on the whole, sooner or later, under the
+stimulus of the premium, move toward a higher rate of speed. This
+drifting, accompanied as it is by the irregularity and uncertainty both
+as to the final result which will be attained and as to how long it will
+take to reach this end, is in marked contrast to the distinct goal which
+is always kept in plain sight of both parties under task management, and
+the clear-cut directions which leave no doubt as to the means which are
+to be employed nor the time in which the work must be done; and these
+elements constitute the fundamental difference between the two systems.
+Mr. Halsey, in objecting to the use of the word "drifting" as describing
+his system, has referred to the use of his system in England in
+connection with a "rate-fixing" or planning department, and quotes as
+follows from his paper to show that he contemplated control of the speed
+of the work by the management:
+
+"On contract work undertaken for the first time the method is the same
+except that the premium is based on the estimated time for the execution
+of the work."
+
+In making this claim Mr. Halsey appears to have entirely lost sight of
+the real essence of the two plans. It is task management which is in use
+in England, not the Towne-Halsey system; and in the above quotation Mr.
+Halsey describes not his system but a type of task management, in which
+the men are paid a premium for carrying out the directions given them by
+the management.
+
+There is no doubt that there is more or less confusion in the minds of
+many of those who have read about the task management and the
+Towne-Halsey system. This extends also to those who are actually using
+and working under these systems. This is practically true in England,
+where in some cases task management is actually being used under the
+name of the "Premium Plan." It would therefore seem desirable to
+indicate once again and in a little different way the essential
+difference between the two.
+
+The one element which the Towne-Halsey system and task management have
+in common is that both recognize the all-important fact that workmen
+cannot be induced to work extra hard without receiving extra pay. Under
+both systems the men who succeed are daily and automatically, as it
+were, paid an extra premium. The payment of this daily premium forms
+such a characteristic feature in both systems, and so radically
+differentiates these systems from those which were in use before, that
+people are apt to look upon this one element as the essence of both
+systems and so fail to recognize the more important, underlying
+principles upon which the success of each of them is based.
+
+In their essence, with the one exception of the payment of a daily
+premium, the systems stand at the two opposite extremes in the field of
+management; and it is owing to the distinctly radical, though opposite,
+positions taken by them that each one owes its success; and it seems to
+me a matter of importance that this should be understood. In any
+executive work which involves the cooperation of two different men or
+parties, where both parties have anything like equal power or voice in
+its direction, there is almost sure to be a certain amount of bickering,
+quarreling, and vacillation, and the success of the enterprise suffers
+accordingly. If, however, either one of the parties has the entire
+direction, the enterprise will progress consistently and probably
+harmoniously, even although the wrong one of the two parties may be in
+control.
+
+Broadly speaking, in the field of management there are two parties--the
+superintendents, etc., on one side and the men on the other, and the
+main questions at issue are the speed and accuracy with which the work
+shall be done. Up to the time that task management was introduced in the
+Midvale Steel Works, it can be fairly said that under the old systems of
+management the men and the management had about equal weight in deciding
+how fast the work should be done. Shop records showing the quickest time
+in which each job had been done and more or less shrewd guessing being
+the means on which the management depended for bargaining with and
+coercing the men; and deliberate soldiering for the purpose of
+misinforming the management being the weapon used by the men in
+self-defense. Under the old system the incentive was entirely lacking
+which is needed to induce men to cooperate heartily with the management
+in increasing the speed with which work is turned out. It is chiefly
+due, under the old systems, to this divided control of the speed with
+which the work shall be done that such an amount of bickering,
+quarreling, and often hard feeling exists between the two sides.
+
+The essence of task management lies in the fact that the control of the
+speed problem rests entirely with the management; and, on the other
+hand, the true strength of the Towne-Halsey system rests upon the fact
+that under it the question of speed is settled entirely by the men
+without interference on the part of the management. Thus in both cases,
+though from diametrically opposite causes, there is undivided control,
+and this is the chief element needed for harmony.
+
+The writer has seen many jobs successfully nursed in several of our
+large and well managed establishments under these drifting systems, for
+a term of ten to fifteen years, at from one-third to one-quarter speed.
+The workmen, in the meanwhile, apparently enjoyed the confidence of
+their employers, and in many cases the employers not only suspected the
+deceit, but felt quite sure of it.
+
+The great defect, then, common to all the ordinary systems of management
+(including the Towne-Halsey system, the best of this class) is that
+their starting-point, their very foundation, rests upon ignorance and
+deceit, and that throughout their whole course in the one element which
+is most vital both to employer and workmen, namely, the speed at which
+work is done, they are allowed to drift instead of being intelligently
+directed and controlled.
+
+The writer has found, through an experience of thirty years, covering a
+large variety in manufactures, as well as in the building trades,
+structural and engineering work, that it is not only practicable but
+comparatively easy to obtain, through a systematic and scientific time
+study, exact information as to how much of any given kind of work either
+a first-class or an average man can do in a day, and with this
+information as a foundation, he has over and over again seen the fact
+demonstrated that workmen of all classes are not only willing, but glad
+to give up all idea of soldiering, and devote all of their energies to
+turning out the maximum work possible, providing they are sure of a
+suitable permanent reward.
+
+With accurate time knowledge as a basis, surprisingly large results can
+be obtained under any scheme of management from day work up; there is no
+question that even ordinary day work resting upon this foundation will
+give greater satisfaction than any of the systems in common use,
+standing as they do upon soldiering as a basis.
+
+To many of the readers of this book both the fundamental objects to be
+aimed at, namely, high wages with low labor cost, and the means
+advocated by the writer for attaining this end; namely, accurate time
+study, will appear so theoretical and so far outside of the range of
+their personal observation and experience that it would seem desirable,
+before proceeding farther, to give a brief illustration of what has been
+accomplished in this line.
+
+The writer chooses from among a large variety of trades to which these
+principles have been applied, the yard labor handling raw materials in
+the works of the Bethlehem Steel Company at South Bethlehem, Pa., not
+because the results attained there have been greater than in many other
+instances, but because the case is so elementary that the results are
+evidently due to no other cause than thorough time study as a basis,
+followed by the application of a few simple principles with which all of
+us are familiar.
+
+In almost all of the other more complicated cases the large increase in
+output is due partly to the actual physical changes, either in the
+machines or small tools and appliances, which a preliminary time study
+almost always shows to be necessary, so that for purposes of
+illustration the simple case chosen is the better, although the gain
+made in the more complicated cases is none the less legitimately due to
+the system.
+
+Up to the spring of the year 1899, all of the materials in the yard of
+the Bethlehem Steel Company had been handled by gangs of men working by
+the day, and under the foremanship of men who had themselves formerly
+worked at similar work as laborers. Their management was about as good
+as the average of similar work, although it was bad all of the men being
+paid the ruling wages of laborers in this section of the country,
+namely, $1.15 per day, the only means of encouraging or disciplining
+them being either talking to them or discharging them; occasionally,
+however, a man was selected from among these men and given a better
+class of work with slightly higher wages in some of the companies'
+shops, and this had the effect of slightly stimulating them. From four
+to six hundred men were employed on this class of work throughout the
+year.
+
+The work of these men consisted mainly of unloading from railway cars
+and shoveling on to piles, and from these piles again loading as
+required, the raw materials used in running three blast furnaces and
+seven large open-hearth furnaces, such as ore of various kinds, varying
+from fine, gravelly ore to that which comes in large lumps, coke,
+limestone, special pig, sand, etc., unloading hard and soft coal for
+boilers gas-producers, etc., and also for storage and again loading the
+stored coal as required for use, loading the pig-iron produced at the
+furnaces for shipment, for storage, and for local use, and handling
+billets, etc., produced by the rolling mills. The work covered a large
+variety as laboring work goes, and it was not usual to keep a man
+continuously at the same class of work.
+
+Before undertaking the management of these men, the writer was informed
+that they were steady workers, but slow and phlegmatic, and that nothing
+would induce them to work fast.
+
+The first step was to place an intelligent, college-educated man in
+charge of progress in this line. This man had not before handled this
+class of labor, although he understood managing workmen. He was not
+familiar with the methods pursued by the writer, but was soon taught the
+art of determining how much work a first-class man can do in a day. This
+was done by timing with a stop watch a first-class man while he was
+working fast. The best way to do this, in fact almost the only way in
+which the timing can be done with certainty, is to divide the man's work
+into its elements and time each element separately. For example, in the
+case of a man loading pig-iron on to a car, the elements should be: (a)
+picking up the pig from the ground or pile (time in hundredths of a
+minute); (b) walking with it on a level (time per foot walked); (c)
+walking with it up an incline to car (time per foot walked); (d)
+throwing the pig down (time in hundredths of a minute), or laying it on
+a pile (time in hundredths of a minute); (e) walking back empty to get a
+load (time per foot walked).
+
+In case of important elements which were to enter into a number of
+rates, a large number of observations were taken when practicable on
+different first-class men, and at different times, and they were
+averaged.
+
+The most difficult elements to time and decide upon in this, as in most
+cases, are the percentage of the day required for rest, and the time to
+allow for accidental or unavoidable delays.
+
+In the case of the yard labor at Bethlehem, each class of work was
+studied as above, each element being timed separately, and, in addition,
+a record was kept in many cases of the total amount of work done by the
+man in a day. The record of the gross work of the man (who is being
+timed) is, in most cases, not necessary after the observer is skilled in
+his work. As the Bethlehem time observer was new to this work, the gross
+time was useful in checking his detailed observations and so gradually
+educating him and giving him confidence in the new methods.
+
+The writer had so many other duties that his personal help was confined
+to teaching the proper methods and approving the details of the various
+changes which were in all cases outlined in written reports before being
+carried out.
+
+As soon as a careful study had been made of the time elements entering
+into one class of work, a single first-class workman was picked out and
+started on ordinary piece work on this job. His task required him to do
+between three and one-half and four times as much work in a day as had
+been done in the past on an average.
+
+Between twelve and thirteen tons of pig-iron per man had been carried
+from a pile on the ground, up an inclined plank, and loaded on to a
+gondola car by the average pig-iron handler while working by the day.
+The men in doing this work had worked in gangs of from five to twenty
+men.
+
+The man selected from one of these gangs to make the first start under
+the writer's system was called upon to load on piece work from
+forty-five to forty-eight tons (2,240 lbs. each) per day.
+
+He regarded this task as an entirely fair one, and earned on an average,
+from the start, $1.85 per day, which was 60 per cent more than he had
+been paid by the day. This man happened to be considerably lighter than
+the average good workman at this class of work. He weighed about 130
+pounds. He proved however, to be especially well suited to this job, and
+was kept at it steadily throughout the time that the writer was in
+Bethlehem, and some years later was still at the same work.
+
+Being the first piece work started in the works, it excited considerable
+opposition, both on the part of the workmen and of several of the
+leading men in the town, their opposition being based mainly on the old
+fallacy that if piece work proved successful a great many men would be
+thrown out of work, and that thereby not only the workmen but the whole
+town would suffer.
+
+One after another of the new men who were started singly on this job
+were either persuaded or intimidated into giving it up. In many cases
+they were given other work by those interested in preventing piece work,
+at wages higher than the ruling wages. In the meantime, however, the
+first man who started on the work earned steadily $1.85 per day, and
+this object lesson gradually wore out the concerted opposition, which
+ceased rather suddenly after about two months. From this time on there
+was no difficulty in getting plenty of good men who were anxious to
+start on piece work, and the difficulty lay in making with sufficient
+rapidity the accurate time study of the elementary operations or "unit
+times" which forms the foundation of this kind of piece work.
+
+Throughout the introduction of piece work, when after a thorough time
+study a new section of the work was started, one man only was put on
+each new job, and not more than one man was allowed to work at it until
+he had demonstrated that the task set was a fair one by earning an
+average of $1.85 per day. After a few sections of the work had been
+started in this way, the complaint on the part of the better workmen was
+that they were not allowed to go on to piece work fast enough. It
+required about two years to transfer practically all of the yard labor
+from day to piece work. And the larger part of the transfer was made
+during the last six months of this time.
+
+As stated above, the greater part of the time was taken up in studying
+"unit times," and this time study was greatly delayed by having
+successively the two leading men who had been trained to the work leave
+because they were offered much larger salaries elsewhere. The study of
+"unit times" for the yard labor took practically the time of two trained
+men for two years. Throughout this time the day and piece workers were
+under entirely separate and distinct management. The original foremen
+continued to manage the day work, and day and piece workers were never
+allowed to work together. Gradually the day work gang was diminished and
+the piece workers were increased as one section of work after another
+was transformed from the former to the latter.
+
+Two elements which were important to the success of this work should be
+noted:
+
+First, on the morning following each day's work, each workman was given
+a slip of paper informing him in detail just how much work he had done
+the day before, and the amount he had earned. This enabled him to
+measure his performance against his earnings while the details were
+fresh in his mind. Without this there would have been great
+dissatisfaction among those who failed to climb up to the task asked of
+them, and many would have gradually fallen off in their performance.
+
+Second, whenever it was practicable, each man's work was measured by
+itself. Only when absolutely necessary was the work of two men measured
+up together and the price divided between them, and then care was taken
+to select two men of as nearly as possible the same capacity. Only on
+few occasions, and then upon special permission, signed by the writer,
+were more than two men allowed to work on gang work, dividing their
+earnings between them. Gang work almost invariably results in a failing
+off in earnings and consequent dissatisfaction.
+
+An interesting illustration of the desirability of individual piece work
+instead of gang work came to our attention at Bethlehem. Several of the
+best piece workers among the Bethlehem yard laborers were informed by
+their friends that a much higher price per ton was paid for shoveling
+ore in another works than the rate given at Bethlehem. After talking the
+matter over with the writer he advised them to go to the other works,
+which they accordingly did. In about a month they were all back at work
+in Bethlehem again, having found that at the other works they were
+obliged to work with a gang of men instead of on individual piece work,
+and that the rest of the gang worked so slowly that in spite of the high
+price paid per ton they earned much less than Bethlehem.
+
+Table 1, on page 54, gives a summary of the work done by the piece-work
+laborers in handling raw materials, such as ores, anthracite and
+bituminous coal, coke, pig-iron, sand, limestone, cinder, scale, ashes,
+etc., in the works of the Bethlehem Steel Company, during the year
+ending April 30, 1900. This work consisted mainly in loading and
+unloading cars on arrival or departure from the works, and for local
+transportation, and was done entirely by hand, i.e., without the use of
+cranes or other machinery.
+
+The greater part of the credit for making the accurate time study and
+actually managing the men on this work should be given to Mr. A. B.
+Wadleigh, the writer's assistant in this section at that time.
+
+TABLE 1. -SHOWING RELATIVE COST OF YARD LABOR UNDER TASK PIECE WORK AND
+OLD STYLE DAY WORK
+
+[Transcriber's note -- table 1 omitted]
+
+When the writer left the steel works, the Bethlehem piece workers were
+the finest body of picked laborers that he has ever seen together. They
+were practically all first-class men, because in each case the task
+which they were called upon to perform was such that only a first-class
+man could do it. The tasks were all purposely made so severe that not
+more than one out of five laborers (perhaps even a smaller percentage
+than this) could keep up.
+
+[Footnotes to table 1]
+
+1)  It was our intention to fix piece work rates which should enable
+first-class workmen to average about 60 per cent more than they had been
+earning on day work, namely $1.85 per day. A year's average shows them
+to have earned $1.88 per day, or three cents per man per day more than
+we expected--an error of 1 6/10 per cent.
+
+2)  The piece workers handled on an average 3 56/100 times as many tons
+per day as the day workers.
+
+[end footnotes to table 1]
+
+It was clearly understood by each newcomer as he went to work that
+unless he was able to average at least $1.85 per day he would have to
+make way for another man who could do so. As a result, first-class men
+from all over that part of the country, who were in most cases earning
+from $1.05 to $1.15 per day, were anxious to try their hands at earning
+$1.85 per day. If they succeeded they were naturally contented, and if
+they failed they left, sorry that they were unable to maintain the
+proper pace, but with no hard feelings either toward the system or the
+management. Throughout the time that the writer was there, labor was as
+scarce and as difficult to get as it ever has been in the history of
+this country, and yet there was always a surplus of first-class men
+ready to leave other jobs and try their hand at Bethlehem piece work.
+
+Perhaps the most notable difference between these men and ordinary
+piece workers lay in their changed mental attitude toward their
+employers and their work, and in the total absence of soldiering on
+their part. The ordinary piece worker would have spent a considerable
+part of his time in deciding just how much his employer would allow him
+to earn without cutting prices and in then trying to come as close as
+possible to this figure, while carefully guarding each job so as to
+keep the management from finding out how fast it really could be done.
+These men, however, were faced with a new but very simple and
+straightforward proposition, namely, am I a first-class laborer or not?
+Each man felt that if he belonged in the first class all he had to do
+was to work at his best and he would be paid sixty per cent more than
+he had been paid in the past. Each piece work price was accepted by the
+men without question. They never bargained over nor complained about
+rates, and there was no occasion to do so, since they were all equally
+fair, and called for almost exactly the same amount of work and fatigue
+per dollar of wages.
+
+A careful inquiry into the condition of these men when away from work
+developed the fact that out of the whole gang only two were said to be
+drinking men. This does not, of course, imply that many of them did not
+take an occasional drink. The fact is that a steady drinker would find
+it almost impossible to keep up with the pace which was set, so that
+they were practically all sober. Many if not most of them were saving
+money, and they all lived better than they had before. The results
+attained under this system were most satisfactory both to employer and
+workmen, and show in a convincing way the possibility of uniting high
+wages with a low labor cost.
+
+This is virtually a labor union of first-class men, who are united
+together to secure the extra high wages, which belong to them by right
+and which in this case are begrudged them by none, and which will be
+theirs through dull times as well as periods of activity. Such a union
+commands the unqualified admiration and respect of all classes of the
+community; the respect equally of workmen, employers, political
+economists, and philanthropists. There are no dues for membership, since
+all of the expenses are paid by the company. The employers act as
+officers of the Union, to enforce its rules and keep its records, since
+the interests of the company are identical and bound up with those of
+the men. It is never necessary to plead with, or persuade men to join
+this Union, since the employers themselves organize it free of cost; the
+best workmen in the community are always anxious to belong to it. The
+feature most to be regretted about it is that the membership is limited.
+
+The words "labor union" are, however, unfortunately so closely
+associated in the minds of most people with the idea of disagreement and
+strife between employers and men that it seems almost incongruous to
+apply them to this case. Is not this, however, the ideal "labor union,"
+with character and special ability of a high order as the only
+qualifications for membership.
+
+It is a curious fact that with the people to whom the writer has
+described this system, the first feeling, particularly among those more
+philanthropically inclined, is one of pity for the inferior workmen who
+lost their jobs in order to make way for the first-class men. This
+sympathy is entirely misplaced. There was such a demand for labor at the
+time that no workman was obliged to be out of work for more than a day
+or two, and so the poor workmen were practically as well off as ever.
+The feeling, instead of being one of pity for the inferior workmen,
+should be one of congratulation and rejoicing that many first-class
+men--who through unfortunate circumstances had never had the opportunity
+of proving their worth--at last were given the chance to earn high wages
+and become prosperous.
+
+What the writer wishes particularly to emphasize is that this whole
+system rests upon an accurate and scientific study of unit times, which
+is by far the most important element in scientific management. With it,
+greater and more permanent results can be attained even under ordinary
+day work or piece work than can be reached under any of the more
+elaborate systems without it.
+
+In 1895 the writer read a paper before The American Society of
+Mechanical Engineers entitled "A Piece Rate System." His chief object in
+writing it was to advocate the study of unit times as the foundation of
+good management. Unfortunately, he at the same time described the
+"differential rate" system of piece work, which had been introduced by
+him in the Midvale Steel Works. Although he called attention to the fact
+that the latter was entirely of secondary importance, the differential
+rate was widely discussed in the journals of this country and abroad
+while practically nothing was said about the study of "unit times."
+Thirteen members of the Society discussed the piece rate system at
+length, and only two briefly referred to the study of the "unit times."
+
+The writer most sincerely trusts that his leading object in writing this
+book will not be overlooked, and that scientific time study will receive
+the attention which it merits. Bearing in mind the Bethlehem yard labor
+as an illustration of the application of the study of unit times as the
+foundation of success in management, the following would seem to him a
+fair comparison of the older methods with the more modern plan.
+
+For each job there is the quickest time in which it can be done by a
+first-class man. This time may be called the "quickest time," or the
+"standard time" for the job. Under all the ordinary systems, this
+"quickest time" is more or less completely shrouded in mist. In most
+cases, however, the workman is nearer to it and sees it more clearly
+than the employer.
+
+Under ordinary piece work the management watch every indication given
+them by the workmen as to what the "quickest time" is for each job, and
+endeavor continually to force the men toward this "standard time," while
+the workmen constantly use every effort to prevent this from being done
+and to lead the management in the wrong direction. In spite of this
+conflict, however, the "standard time" is gradually approached.
+
+Under the Towne-Halsey plan the management gives up all direct effort to
+reach this "quickest time," but offers mild inducements to the workmen
+to do so, and turns over the whole enterprise to them. The workmen,
+peacefully as far as the management is concerned, but with considerable
+pulling and hauling among themselves, and without the assistance of a
+trained guiding hand, drift gradually and slowly in the direction of the
+"standard time," but rarely approach it closely.
+
+With accurate time study as a basis, the "quickest time" for each job
+is at all times in plain sight of both employers and workmen, and is
+reached with accuracy, precision, and speed, both sides pulling hard in
+the same direction under the uniform simple and just agreement that
+whenever a first-class man works his best he will receive from 30 to 100
+per cent more than the average of his trade.
+
+Probably a majority of the attempts that are made to radically change
+the organization of manufacturing companies result in a loss of money to
+the company, failure to bring about the change sought for, and a return
+to practically the original organization. The reason for this being that
+there are but few employers who look upon management as an art, and that
+they go at a difficult task without either having understood or
+appreciated the time required for organization or its cost, the troubles
+to be met with, or the obstacles to be overcome, and without having
+studied the means to be employed in doing so.
+
+Before starting to make any changes in the organization of a company the
+following matters should be carefully considered: First, the importance
+of choosing the general type of management best suited to the particular
+case. Second, that in all cases money must be spent, and in many cases a
+great deal of money, before the changes are completed which result in
+lowering cost. Third, that it takes time to reach any result worth
+aiming at. Fourth, the importance of making changes in their proper
+order, and that unless the right steps are taken, and taken in their
+proper sequence, there is great danger from deterioration in the quality
+of the output and from serious troubles with the workmen, often
+resulting in strikes.
+
+As to the type of management to be ultimately aimed at, before any
+changes whatever are made, it is necessary, or at least highly
+desirable, that the most careful consideration should be given to the
+type to be chosen; and once a scheme is decided upon it should be
+carried forward step by step without wavering or retrograding. Workmen
+will tolerate and even come to have great respect for one change after
+another made in logical sequence and according to a consistent plan. It
+is most demoralizing, however, to have to recall a step once taken,
+whatever may be the cause, and it makes any further changes doubly
+difficult.
+
+The choice must be made between some of the types of management in
+common use, which the writer feels are properly designated by the word
+"drifting," and the more modern scientific management based on an
+accurate knowledge of how long it should take to do the work. If, as is
+frequently the case, the managers of an enterprise find themselves so
+overwhelmed with other departments of the business that they can give
+but little thought to the management of the shop, then some one of the
+various "drifting" schemes should be adopted; and of these the writer
+believes the Towne-Halsey plan to be the best, since it drifts safely
+and peacefully though slowly in the right direction; yet under it the
+best results can never be reached. The fact, however, that managers are
+in this way overwhelmed by their work is the best proof that there is
+something radically wrong with the plan of their organization and in
+self defense they should take immediate steps toward a more thorough
+study of the art.
+
+It is not at all generally realized that whatever system may be used,
+--providing a business is complex in its nature--the building up of an
+efficient organization is necessarily slow and sometimes very expensive.
+Almost all of the directors of manufacturing companies appreciate the
+economy of a thoroughly modern, up-to-date, and efficient plant, and are
+willing to pay for it. Very few of them, however, realize that the best
+organization, whatever its cost may be, is in many cases even more
+important than the plant; nor do they clearly realize that no kind of an
+efficient organization can be built up without spending money. The
+spending of money for good machinery appeals to them because they can
+see machines after they are bought; but putting money into anything so
+invisible, intangible, and to the average man so indefinite, as an
+organization seems almost like throwing it away.
+
+There is no question that when the work to be done is at all
+complicated, a good organization with a poor plant will give better
+results than the best plant with a poor organization. One of the most
+successful manufacturers in this country was asked recently by a number
+of financiers whether he thought that the difference between one style
+of organization and another amounted to much providing the company had
+an up-to-date plant properly located. His answer was, "If I had to
+choose now between abandoning my present organization and burning down
+all of my plants which have cost me millions, I should choose the
+latter. My plants could be rebuilt in a short while with borrowed money,
+but I could hardly replace my organization in a generation."
+
+Modern engineering can almost be called an exact science; each year
+removes it further from guess work and from rule-of-thumb methods and
+establishes it more firmly upon the foundation of fixed principles.
+
+The writer feels that management is also destined to become more of an
+art, and that many of the, elements which are now believed to be outside
+the field of exact knowledge will soon be standardized tabulated,
+accepted, and used, as are now many of the elements of engineering.
+Management will be studied as an art and will rest upon well recognized,
+clearly defined, and fixed principles instead of depending upon more or
+less hazy ideas received from a limited observation of the few
+organizations with which the individual may have come in contact. There
+will, of course, be various successful types, and the application of the
+underlying principles must be modified to suit each particular case. The
+writer has already indicated that he thinks the first object in
+management is to unite high wages with a low labor cost. He believes
+that this object can be most easily attained by the application of the
+following principles:
+
+(a) A LARGE DAILY TASK. --Each man in the establishment, high or low,
+should daily have a clearly defined task laid out before him. This task
+should not in the least degree be vague nor indefinite, but should be
+circumscribed carefully and completely, and should not be easy to
+accomplish.
+
+(b) STANDARD CONDITIONS. --Each man's task should call for a full day's
+work, and at the same time the workman should be given such standardized
+conditions and appliances as will enable him to accomplish his task with
+certainty.
+
+(c) HIGH PAY FOR SUCCESS. --He should be sure of large pay when he
+accomplishes his task.
+
+(d) LOSS IN CASE OF FAILURE. --When he fails he should be sure that
+sooner or later he will be the loser by it.
+
+When an establishment has reached an advanced state of organization, in
+many cases a fifth element should be added, namely: the task should be
+made so difficult that it can only be accomplished by a first-class man.
+
+There is nothing new nor startling about any of these principles and yet
+it will be difficult to find a shop in which they are not daily violated
+over and over again. They call, however, for a greater departure from
+the ordinary types of organization than would at first appear. In the
+case, for instance, of a machine shop doing miscellaneous work, in order
+to assign daily to each man a carefully measured task, a special
+planning department is required to lay out all of the work at least one
+day ahead. All orders must be given to the men in detail in writing; and
+in order to lay out the next day's work and plan the entire progress of
+work through the shop, daily returns must be made by the men to the
+planning department in writing, showing just what has been done. Before
+each casting or forging arrives in the shop the exact route which it is
+to take from machine to machine should be laid out. An instruction card
+for each operation must be written out stating in detail just how each
+operation on every piece of work is to be done and the time required to
+do it, the drawing number, any special tools, jigs, or appliances
+required, etc. Before the four principles above referred to can be
+successfully applied it is also necessary in most shops to make
+important physical changes. All of the small details in the shop, which
+are usually regarded as of little importance and are left to be
+regulated according to the individual taste of the workman, or, at best,
+of the foreman, must be thoroughly and carefully standardized; such.
+details, for instance, as the care and tightening of the belts; the
+exact shape and quality of each cutting tool; the establishment of a
+complete tool room from which properly ground tools, as well as jigs,
+templates, drawings, etc., are issued under a good check system, etc.;
+and as a matter of importance (in fact, as the foundation of scientific
+management) an accurate study of unit times must be made by one or more
+men connected with the planning department, and each machine tool must
+be standardized and a table or slide rule constructed for it showing how
+to run it to the best advantage.
+
+At first view the running of a planning department, together with the
+other innovations, would appear to involve a large amount of additional
+work and expense, and the most natural question would be is whether the
+increased efficiency of the shop more than offsets this outlay? It must
+be borne in mind, however, that, with the exception of the study of unit
+times, there is hardly a single item of work done in the planning
+department which is not already being done in the shop. Establishing a
+planning department merely concentrates the planning and much other
+brainwork in a few men especially fitted for their task and trained in
+their especial lines, instead of having it done, as heretofore, in most
+cases by high priced mechanics, well fitted to work at their trades, but
+poorly trained for work more or less clerical in its nature.
+
+There is a close analogy between the methods of modern engineering and
+this type of management. Engineering now centers in the drafting room as
+modern management does in the planning department. The new style
+engineering has all the appearance of complication and extravagance,
+with its multitude of drawings; the amount of study and work which is
+put into each detail; and its corps of draftsmen, all of whom would be
+sneered at by the old engineer as "non-producers." For the same reason,
+modern management, with its minute time study and a managing department
+in which each operation is carefully planned, with its many written
+orders and its apparent red tape, looks like a waste of money; while the
+ordinary management in which the planning is mainly done by the workmen
+themselves, with the help of one or two foremen, seems simple and
+economical in the extreme.
+
+The writer, however, while still a young man, had all lingering doubt as
+to the value of a drafting room dispelled by seeing the chief engineer,
+the foreman of the machine shop, the foreman of the foundry, and one or
+two workmen, in one of our large and successful engineering
+establishments of the old school, stand over the cylinder of an engine
+which was being built, with chalk and dividers, and discuss for more
+than an hour the proper size and location of the studs for fastening on
+the cylinder head. This was simplicity, but not economy. About the same
+time he became thoroughly convinced of the necessity and economy of a
+planning department with time study, and with written instruction cards
+and returns. He saw over and over again a workman shut down his machine
+and hunt up the foreman to inquire, perhaps, what work to put into his
+machine next, and then chase around the shop to find it or to have a
+special tool or template looked up or made. He saw workmen carefully
+nursing their jobs by the hour and doing next to nothing to avoid making
+a record, and he was even more forcibly convinced of the necessity for a
+change while he was still working as a machinist by being ordered by the
+other men to slow down to half speed under penalty of being thrown over
+the fence.
+
+No one now doubts the economy of the drafting room, and the writer
+predicts that in a very few years from now no one will doubt the economy
+and necessity of the study of unit times and of the planning department.
+
+Another point of analogy between modern engineering and modern
+management lies in the fact that modern engineering proceeds with
+comparative certainty to the design and construction of a machine or
+structure of the maximum efficiency with the minimum weight and cost of
+materials, while the old style engineering at best only approximated
+these results and then only after a series of breakdowns, involving the
+practical reconstruction of the machine and the lapse of a long period
+of time. The ordinary system of management, owing to the lack of exact
+information and precise methods, can only approximate to the desired
+standard of high wages accompanied by low labor cost and then only
+slowly, with marked irregularity in results, with continued opposition,
+and, in many cases, with danger from strikes. Modern management, on the
+other hand, proceeds slowly at first, but with directness and precision,
+step by step, and, after the first few object lessons, almost without
+opposition on the part of the men, to high wages and low labor cost; and
+as is of great importance, it assigns wages to the men which are
+uniformly fair. They are not demoralized, and their sense of justice
+offended by receiving wages which are sometimes too low and at other
+times entirely too high.
+
+One of the marked advantages of scientific management lies in its
+freedom from strikes. The writer has never been opposed by a strike,
+although he has been engaged for a great part of his time since 1883 in
+introducing this type of management in different parts of the country
+and in a great variety of industries. The only case of which the writer
+can think in which a strike under this system might be unavoidable would
+be that in which most of the employees were members of a labor union,
+and of a union whose rules were so inflexible and whose members were so
+stubborn that they were unwilling to try any other system, even though
+it assured them larger wages than their own. The writer has seen,
+however, several times after the introduction of this system, the
+members of labor unions who were working under it leave the union in
+large numbers because they found that they could do better under the
+operation of the system than under the laws of the union.
+
+There is no question that the average individual accomplishes the most
+when he either gives himself, or some one else assigns him, a definite
+task, namely, a given amount of work which he must do within a given
+time; and the more elementary the mind and character of the individual
+the more necessary does it become that each task shall extend over a
+short period of time only. No school teacher would think of telling
+children in a general way to study a certain book or subject. It is
+practically universal to assign each day a definite lesson beginning on
+one specified page and line and ending on another; and the best progress
+is made when the conditions are such that a definite study hour or
+period can be assigned in. which the lesson must be learned. Most of us
+remain, through a great part of our lives, in this respect, grown-up
+children, and do our best only under pressure of a task of comparatively
+short duration. Another and perhaps equally great advantage of assigning
+a daily task as against ordinary piece work lies in the fact that the
+success of a good workman or the failure of a poor one is thereby daily
+and prominently called to the attention of the management. Many a poor
+workman might be willing to go along in a slipshod way under ordinary
+piece work, careless as to whether he fell off a little in his output or
+not. Very few of them, however, would be willing to record a daily
+failure to accomplish their task even if they were allowed to do so by
+their foreman; and also since on ordinary piece work the price alone is
+specified without limiting the time which the job is to take, a quite
+large falling off in output can in many cases occur without coming to
+the attention of the management at all. It is for these reasons that the
+writer has above indicated "a large daily task" for each man as the
+first of four principles which should be included in the best type of
+management.
+
+It is evident, however, that it is useless to assign a task unless at
+the same time adequate measures are taken to enforce its accomplishment.
+As Artemus Ward says, "I can call the spirits from the windy deep, but
+damn `em they won't come!" It is to compel the completion of the daily
+task then that two of the other principles are required, namely, "high
+pay for success" and "loss in case of failure." The advantage of Mr. H.
+L. Gantt's system of "task work with a bonus," and the writer's
+"differential rate piece work" over the other systems lies in the fact
+that with each of these the men automatically and daily receive either
+an extra reward in case of complete success, or a distinct loss in case
+they fall off even a little.
+
+The four principles above referred to can be successfully applied either
+under day work, piece work, task work with a bonus, or differential rate
+piece work, and each of these systems has its own especial conditions
+under which it is to be preferred to either of the other three. In no
+case, however, should an attempt be made to apply these principles
+unless accurate and thorough time study has previously been made of
+every item entering into the day's task.
+
+They should be applied under day work only when a number of
+miscellaneous jobs have to be done day after day, none of which can
+occupy the entire time of a man throughout the whole of a day and when
+the time required to do each of these small jobs is likely to vary
+somewhat each day. In this case a number of these jobs can be grouped
+into a daily task which should be assigned, if practicable, to one man,
+possibly even to two or three, but rarely to a gang of men of any size.
+To illustrate: In a small boiler house in which there is no storage room
+for coal, the work of wheeling the coal to the fireman, wheeling out the
+ashes, helping clean fires and keeping the boiler room and the outside
+of the boilers clean can be made into the daily task for a man, and if
+these items do not sum up into a full day's work, on the average, other
+duties can be added until a proper task is assured. Or, the various
+details of sweeping, cleaning, and keeping a certain section of a shop
+floor windows, machines, etc., in order can be united to form a task.
+Or, in a small factory which turns out a uniform product and in uniform
+quantities day after day, supplying raw materials to certain parts of
+the factory and removing finished product from others may be coupled
+with other definite duties to form a task. The task should call for a
+large day's work, and the man should be paid more than the usual day's
+pay so that the position will be sought for by first-class, ambitious
+men. Clerical work can very properly be done by the task in this way,
+although when there is enough of it, piece work at so much per entry is
+to be preferred.
+
+In all cases a clear cut, definite inspection of the task is desirable
+at least once a day and sometimes twice. When a shop is not running at
+night, a good time for this inspection is at seven o'clock in the
+morning, for instance. The inspector should daily sign a printed card,
+stating that he has inspected the work done by ----, and enumerating the
+various items of the task. The card should state that the workman has
+satisfactorily performed his task, "except the following items," which
+should be enumerated in detail.
+
+When men are working on task work by the day they should be made to
+start to work at the regular starting hour. They should, however, have
+no regular time for leaving. As soon as the task is finished they should
+be allowed to go home; and, on the other hand, they should be made to
+stay at work until their task is done, even if it lasts into the night,
+no deduction being made for shorter hours nor extra pay allowed for
+overtime. It is both inhuman and unwise to ask a man, working on task
+work, to stay in the shop after his task is finished "to maintain the
+discipline of the shop," as is frequently done. It only tends to make
+men eye servants.
+
+An amusing instance of the value of task work with freedom to leave when
+the task is done was given the writer by his friend, Mr. Chas. D.
+Rogers, for many years superintendent of the American Screw Works, of
+Providence, R. I., one of the greatest mechanical geniuses and most
+resourceful managers that this country has produced, but a man who,
+owing to his great modesty, has never been fully appreciated outside of
+those who know him well. Mr. Rogers tried several modifications of day
+and piece work in an unsuccessful endeavor to get the children who were
+engaged in sorting over the very small screws to do a fair day's work.
+He finally met with great success by assigning to each child a fair
+day's task and allowing him to go home and play as soon as his task was
+done. Each child's playtime was his own and highly prized while the
+greater part of his wages went to his parents.
+
+Piece work embodying the task idea can be used to advantage when there
+is enough work of the same general character to keep a number of men
+busy regularly; such work, for instance, as the Bethlehem yard labor
+previously described, or the work of bicycle ball inspection referred to
+later on. In piece work of this class the task idea should always be
+maintained by keeping it clearly before each man that his average daily
+earnings must amount to a given high sum (as in the case of the
+Bethlehem laborers, $1.85 per day), and that failure to average this
+amount will surely result in his being laid off. It must be remembered
+that on plain piece work the less competent workmen will always bring
+what influence and pressure they can to cause the best men to slow down
+towards their level and that the task idea is needed to counteract this
+influence. Where the labor market is large enough to secure in a
+reasonable time enough strictly first-class men, the piece work rates
+should be fixed on such a basis that only a first-class man working at
+his best can earn the average amount called for. This figure should be,
+in the case of first-class men as stated above, from 30 per cent to 100
+per cent beyond the wages usually paid. The task idea is emphasized with
+this style of piece work by two things--the high wages and the laying
+off, after a reasonable trial, of incompetent men; and for the success
+of the system, the number of men employed on practically the same class
+of work should be large enough for the workmen quite often to have the
+object lesson of seeing men laid off for failing to earn high wages and
+others substituted in their places.
+
+There are comparatively few machine shops, or even manufacturing
+establishments, in which the work is so uniform in its nature as to
+employ enough men on the same grade of work and in sufficiently close
+contact to one another to render piece work preferable to the other
+systems. In the great majority of cases the work is so miscellaneous in
+its nature as to call for the employment of workmen varying greatly in
+their natural ability and attainments, all the way, for instance, from
+the ordinary laborer, through the trained laborer, helper, rough
+machinist, fitter, machine hand, to the highly skilled special or
+all-round mechanic. And while in a large establishment there may be
+often enough men of the same grade to warrant the adoption of piece work
+with the task idea, yet, even in this case, they are generally so
+scattered in different parts of the shop that laying off one of their
+number for incompetence does not reach the others with sufficient force
+to impress them with the necessity of keeping up with their task.
+
+It is evident then that, in the great majority of cases, the four
+leading principles in management can be best applied through either task
+work with a bonus or the differential piece rate in spite of the slight
+additional clerical work and the increased difficulty in planning ahead
+incident to these systems of paying wages. Three of the principles of
+management given above, namely, (a) a large daily task, (b) high pay for
+success, and (c) loss in case of failure form the very essence of both
+of these systems and act as a daily stimulant for the men. The fourth
+principle of management is a necessary preliminary, since without having
+first thoroughly standardized all of the conditions surrounding work,
+neither of these two plans can be successfully applied.
+
+In many cases the greatest good resulting from the application of these
+systems of paying wages is the indirect gain which comes from the
+enforced standardization of all details and conditions, large and small,
+surrounding the work. All of the ordinary systems can be and are almost
+always applied without adopting and maintaining thorough shop standards.
+But the task idea can not be carried out without them.
+
+The differential rate piece work is rather simpler in its application
+than task work with bonus and is the more forceful of the two. It should
+be used wherever it is practicable, but in no case until after all the
+accompanying conditions have been perfected and completely standardized
+and a thorough time study has been made of all of the elements of the
+work. This system is particularly useful where the same kind of work is
+repeated day after day, and also whenever the maximum possible output is
+desired, which is almost always the case in the operation of expensive
+machinery or of a plant occupying valuable ground or a large building.
+It is more forceful than task work with a bonus because it not only
+pulls the man up from the top but pushes him equally hard from the
+bottom. Both of these systems give the workman a large extra reward when
+he accomplishes his full task within the given time. With the
+differential rate, if for any reason he fails to do his full task, he
+not only loses the large extra premium which is paid for complete
+success, but in addition he suffers the direct loss of the piece price
+for each piece by which he falls short. Failure under the task with a
+bonus system involves a corresponding loss of the extra premium or
+bonus, but the workman, since he is paid a given price per hour,
+receives his ordinary day's pay in case of failure and suffers no
+additional loss beyond that of the extra premium whether he may have
+fallen short of the task to the extent of one piece or a dozen.
+
+In principle, these two systems appear to be almost identical, yet this
+small difference, the slightly milder nature of task work with a bonus,
+is sufficient to render it much more flexible and therefore applicable
+to a large number of cases in which the differential rate system cannot
+be used. Task work with a bonus was invented by Mr. H. L. Gantt, while
+he was assisting the writer in organizing the Bethlehem Steel Company.
+The possibilities of his system were immediately recognized by all of
+the leading men engaged on the work, and long before it would have been
+practicable to use the differential rate, work was started under this
+plan. It was successful from the start, and steadily grew in volume and
+in favor, and today is more extensively used than ever before.
+
+Mr. Gantt's system is especially useful during the difficult and
+delicate period of transition from the slow pace of ordinary day work to
+the high speed which is the leading characteristic of good management.
+During this period of transition in the past, a time was always reached
+when a sudden long leap was taken from improved day work to some form of
+piece work; and in making this jump many good men inevitably fell and
+were lost from the procession. Mr. Gantt's system bridges over this
+difficult stretch and enables the workman to go smoothly and with
+gradually accelerated speed from the slower pace of improved day work to
+the high speed of the new system.
+
+It does not appear that Mr. Gantt has recognized the full advantages to
+be derived through the proper application of his system during this
+period of transition, at any rate he has failed to point them out in his
+papers and to call the attention to the best method of applying his plan
+in such cases.
+
+No workman can be expected to do a piece of work the first time as fast
+as he will later. It should also be recognized that it takes a certain
+time for men who have worked at the ordinary slow rate of speed to
+change to high speed. Mr. Gantt's plan can be adapted to meet both of
+these conditions by allowing the workman to take a longer time to do the
+job at first and yet earn his bonus; and later compelling him to finish
+the job in the quickest time in order to get the premium. In all cases
+it is of the utmost importance that each instruction card should state
+the quickest time in which the workman will ultimately be called upon to
+do the work. There will then be no temptation for the man to soldier
+since he will see that the management know accurately how fast the work
+can be done.
+
+There is also a large class of work in addition to that of the period of
+transition to which task work with a bonus is especially adapted. The
+higher pressure of the differential rate is the stimulant required by
+the workman to maintain a high rate of speed and secure high wages while
+he has the steady swing that belongs to work which is repeated over and
+over again. When, however, the work is of such variety that each day
+presents an entirely new task, the pressure of the differential rate is
+some times too severe. The chances of failing to quite reach the task
+are greater in this class of work than in routine work; and in many such
+cases it is better, owing to the increased difficulties, that the
+workman should feel sure at least of his regular day's rate, which is
+secured him by Mr. Gantt's system in case he falls short of the full
+task. There is still another case of quite frequent occurrence in which
+the flexibility of Mr. Gantt's plan makes it the most desirable. In many
+establishments, particularly those doing an engineering business of
+considerable variety or engaged in constructing and erecting
+miscellaneous machinery, it is necessary to employ continuously a number
+of especially skilful and high-priced mechanics. The particular work for
+which these men are wanted comes, however, in many cases, at irregular
+intervals, and there are frequently quite long waits between their
+especial jobs. During such periods these men must be provided with work
+which is ordinarily done by less efficient, lower priced men, and if a
+proper piece price has been fixed on this work it would naturally be a
+price suited to the less skilful men, and therefore too low for the men
+in question. The alternative is presented of trying to compel these
+especially skilled men to work for a lower price than they should
+receive, or of fixing a special higher piece price for the work. Fixing
+two prices for the same piece of work, one for the man who usually does
+it and a higher price for the higher grade man, always causes the
+greatest feeling of injustice and dissatisfaction in the man who is
+discriminated against. With Mr. Gantt's plan the less skilledworkman
+would recognize the justice of paying his more experienced companion
+regularly a higher rate of wages by the day, yet when they were both
+working on the same kind of work each man would receive the same extra
+bonus for doing the full day's task. Thus, with Mr. Gantt's system, the
+total day's pay of the higher classed man would be greater than that of
+the less skilled man, even when on the same work, and the latter would
+not begrudge it to him. We may say that the difference is one of
+sentiment, yet sentiment plays an important part in all of our lives;
+and sentiment is particularly strong in the workman when he believes a
+direct injustice is being done him.
+
+Mr. James M. Dodge, the distinguished Past President of The American
+Society of Mechanical Engineers, has invented an ingenious system of
+piece work which is adapted to meet this very case, and which has
+especial advantages not possessed by any of the other plans.
+
+It is clear, then, that in carrying out the task idea after the required
+knowledge has been obtained through a study of unit times, each of the
+four systems, (a) day work, (b) straight piece work, (c) task work with
+a bonus, and (d) differential piece work, has its especial field of
+usefulness, and that in every large establishment doing a variety of
+work all four of these plans can and should be used at the same time.
+Three of these systems were in use at the Bethlehem Steel Company when
+the writer left there, and the fourth would have soon been started if he
+had remained.
+
+Before leaving this part of the book which has been devoted to pointing
+out the value of. the daily task in management, it would seem desirable
+to give an illustration of the value of the differential rate piece work
+and also of the desirability of making each task as simple and short as
+practicable.
+
+The writer quotes as follows from a paper entitled "A Piece Rate
+System," read by him before The American Society of Mechanical Engineers
+in 1895:
+
+"The first case in which a differential rate was applied during the year
+1884, furnishes a good illustration of what can be accomplished by it. A
+standard steel forging, many thousands of which are used each year, had
+for several years been turned at the rate of from four to five per day
+under the ordinary system of piece work, 50 cents per piece being the
+price paid for the work. After analyzing the job, and determining the
+shortest time required to do each of the elementary operations of which
+it was composed, and then summing up the total, the writer became
+convinced that it was possible to turn ten pieces a day. To finish the
+forgings at this rate, however, the machinists were obliged to work at
+their maximum pace from morning to night, and the lathes were run as
+fast as the tools would allow, and under a heavy feed. Ordinary tempered
+tools 1 inch by 1 1/2 inch, made of carbon tool steel, were used for
+this work.
+
+"It will be appreciated that this was a big day's work, both for men and
+machines, when it is understood that it involved removing, with a single
+16-inch lathe, having two saddles, an average of more than 800 lbs of
+steel chips in ten hours. In place of the 50 cent rate, that they had
+been paid before, the men were given 35 cents per piece when they turned
+them at the speed of 10 per day; and when they produced less than ten
+they received only 25 cents per piece.
+
+"It took considerable trouble to induce the men to turn at this high
+speed, since they did not at first fully appreciate that it was the
+intention of the firm to allow them to earn permanently at the rate of
+$3.50 per day. But from the day they first turned ten pieces to the
+present time, a period of more than ten years, the men who understood
+their work have scarcely failed a single day to turn at this rate.
+Throughout that time until the beginning of the recent fall in the scale
+of wages throughout the country, the rate was not cut.
+
+"During this whole period, the competitors of the company never
+succeeded in averaging over half of this production per lathe, although
+they knew and even saw what was being done at Midvale. They, however,
+did not allow their men to earn from over $2.00 to $2.50 per day, and so
+never even approached the maximum output.
+
+"The following table will show the economy of paying high wages under
+the differential rate in doing the above job:
+
+"COST OF PRODUCTION PER LATHE PER DAY
+
+ORDINARY SYSTEM OF PIECE WORK--Man's wages $2.50 Machine cost 3.37 Total
+cost per day 5.87 5 pieces produced; Cost per piece $1.17
+
+DIFFERENTIAL RATE SYSTEM--Man's wages $3.50 Machine cost 3.37 Total cost
+per day 6.87 10 pieces produced; Cost per piece $0.69
+
+"The above result was mostly though not entirely due to the
+differential rate. The superior system of managing all of the small
+details of the shop counted for considerable."
+
+The exceedingly dull times that began in July, 1893, and were
+accompanied by a great fall in prices, rendered it necessary to lower
+the wages of machinists throughout the country. The wages of the men in
+A. the Midvale Steel Works were reduced at this time, and the change was
+accepted by them as fair and just.
+
+Throughout the works, however, the principle of the differential rate
+was maintained, and was, and is still, fully appreciated by both the
+management and men. Through some error at the time of the general
+reduction of wages in 1893, the differential rate on the particular job
+above referred to was removed, and a straight piece work rate of 25
+cents per piece was substituted for it. The result of abandoning the
+differential proved to be the best possible demonstration of its value.
+Under straight piece work, the output immediately fell to between six
+and eight pieces per day, and remained at this figure for several years,
+although under the differential rate it had held throughout a long term
+of years steadily at ten per day.
+
+When work is to be repeated many times, the time study should be minute
+and exact. Each job should be carefully subdivided into its elementary
+operations, and each of these unit times should receive the most
+thorough time study. In fixing the times for the tasks, and the piece
+work rates on jobs of this class, the job should be subdivided into a
+number of divisions, and a separate time and price assigned to each
+division rather than to assign a single time and price for the whole
+job. This should be done for several reasons, the most important of
+which is that the average workman, in order to maintain a rapid pace,
+should be given the opportunity of measuring his performance against the
+task set him at frequent intervals. Many men are incapable of looking
+very far ahead, but if they see a definite opportunity of earning so
+many cents by working hard for so many minutes, they will avail
+themselves of it.
+
+As an illustration, the steel tires used on car wheels and locomotives
+were originally turned in the Midvale Steel Works on piece work, a
+single piece-work rate being paid for all of the work which could be
+done on a tire at a single setting. A fixed price was paid for this
+work, whether there was much or little metal to be removed, and on the
+average this price was fair to the men. The apparent advantage of fixing
+a fair average rate was, that it made rate-fixing exceedingly simple,
+and saved clerk work in the time, cost and record keeping.
+
+A careful time study, however, convinced the writer that for the reasons
+given above most of the men failed to do their best. In place of the
+single rate and time for all of the work done at a setting, the writer
+subdivided tire-turning into a number of short operations, and fixed a
+proper time and price, varying for each small job, according to the
+amount of metal to be removed, and the hardness and diameter of the
+tire. The effect of this subdivision was to increase the output, with
+the same men, methods, and machines, at least thirty-three per cent.
+
+As an illustration of the minuteness of this subdivision, an instruction
+card similar to the one used is reproduced in Figure 1 on the next page.
+(This card was about 7 inches long by 4 inches wide.)
+
+[Transcriber's note -- Figure 1 not shown]
+
+The cost of the additional clerk work involved in this change was so
+insignificant that it practically did not affect the problem. This
+principle of short tasks in tire turning was introduced by the writer in
+the Midvale Steel Works in 1883 and is still in full use there, having
+survived the test of over twenty years' trial with a change of
+management.
+
+In another establishment a differential rate was applied to tire
+turning, with operations subdivided in this way, by adding fifteen per
+cent to the pay of each tire turner whenever his daily or weekly piece
+work earnings passed a given figure.
+
+Another illustration of the application of this principle of measuring a
+man's performance against a given task at frequent intervals to an
+entirely different line of work may be of interest. For this purpose the
+writer chooses the manufacture of bicycle balls in the works of the
+Symonds Rolling Machine Company, in Fitchburg, Mass. All of the work
+done in this factory was subjected to an accurate time study, and then
+was changed from day to piece work, through the assistance of functional
+foreman ship, etc. The particular operation to be described however, is
+that of inspecting bicycle balls before they were finally boxed for
+shipment. Many millions of these balls were inspected annually. When the
+writer undertook to systematize this work, the factory had been running
+for eight or ten years on ordinary day work, so that the various
+employees were "old hands," and skilled at their jobs. The work of
+inspection was done entirely by girls--about one hundred and twenty
+being employed at it--all on day work.
+
+This work consisted briefly in placing a row of small polished steel
+balls on the back of the left hand, in the crease between two of the
+fingers pressed together, and while they were rolled over and over, with
+the aid of a magnet held in the right hand, they were minutely examined
+in a strong light, and the defective balls picked out and thrown into
+especial boxes. Four kinds of defects were looked for--dented, soft,
+scratched, and fire cracked--and they were mostly 50 minute as to be
+invisible to an eye not especially trained to this work. It required the
+closest attention and concentration. The girls had worked on day work
+for years, ten and one-half hours per day, with a Saturday half-holiday.
+
+The first move before in any way stimulating them toward a larger output
+was to insure against a falling off in quality. This was accomplished
+through over-inspection. Four of the most trustworthy girls were given
+each a lot of balls which had been examined the day before by one of the
+regular inspectors. The number identifying the lot having been changed
+by the foreman so that none of the over-inspectors knew whose work they
+were examining. In addition, one of the lots inspected by the four
+over-inspectors was examined on the following day by the chief
+inspector, selected on account of her accuracy and integrity.
+
+An effective expedient was adopted for checking the honesty and accuracy
+of the over-inspection. Every two or three days a lot of balls was
+especially prepared by the foreman, who counted out a definite number of
+perfect balls, and added a recorded number of defective balls of each
+kind. The inspectors had no means of distinguishing this lot from the
+regular commercial lots. And in this way all temptation to slight their
+work or make false returns was removed.
+
+After insuring in this way against deterioration in quality, effective
+means were at once adopted to increase the output. Improved day work was
+substituted for the old slipshod method. An accurate daily record, both
+as to quantity and quality, was kept for each inspector. In a
+comparatively short time this enabled the foreman to stir the ambition
+of all the inspectors by increasing the wages of those who turned out a
+large quantity and good quality, at the same time lowering the pay of
+those who fell short, and discharging others who proved to be
+incorrigibly slow or careless. An accurate time study was made through
+the use of a stop watch and record blanks, to determine how fast each
+kind of inspection should be done. This showed that the girls spent a
+considerable part of their time in partial idleness, talking and half
+working, or in actually doing nothing.
+
+Talking while at work was stopped by seating them far apart. The hours
+of work were shortened from 10 1/2 per day, first to 9 1/2, and later to
+8 1/2; a Saturday half holiday being given them even with the shorter
+hours. Two recesses of ten minutes each were given them, in the middle
+of the morning and afternoon, during which they were expected to leave
+their seats, and were allowed to talk.
+
+The shorter hours and improved conditions made it possible for the girls
+to really work steadily, instead of pretending to do so. Piece work was
+then introduced, a differential rate being paid, not for an increase in
+output, but for greater accuracy in the inspection; the lots inspected
+by the over-inspectors forming the basis for the payment of the
+differential. The work of each girl was measured every hour, and they
+were all informed whether they were keeping up with their tasks, or how
+far they had fallen short and an assistant was sent by the foreman to
+encourage those who were falling behind, and help them to catch up.
+
+The principle of measuring the performance of each workman against a
+standard at frequent intervals, of keeping them informed as to their
+progress, and of sending an assistant to help those who were falling
+down, was carried out throughout the works, and proved to be most
+useful.
+
+The final results of the improved system in the inspecting department
+were as follows:
+
+(a) Thirty-five girls did the work formerly done by one hundred and
+twenty.
+
+(b) The girls averaged from $6.50 to $9.00 per week instead of $3.50 to
+$4.50, as formerly.
+
+(c) They worked only 8 1/2 hours per day, with Saturday a half-holiday,
+while they had formerly worked 10 1/2 hours per day.
+
+(d) An accurate comparison of the balls which were inspected under the
+old system of day work with those done under piece work, with
+over-inspection, showed that, in spite of the large increase in output
+per girl, there were 58 per cent more defective balls left in the
+product as sold under day work than under piece work. In other words,
+the accuracy of inspection under piece work was one-third greater than
+that under day work.
+
+That thirty-five girls were able to do the work which formerly required
+about one hundred and twenty is due, not only to the improvement in the
+work of each girl, owing to better methods, but to the weeding out of
+the lazy and unpromising candidates, and the substitution of more
+ambitious individuals.
+
+A more interesting illustration of the effect of the improved conditions
+and treatment is shown in the following comparison. Records were kept of
+the work of ten girls, all "old hands," and good inspectors, and the
+improvement made by these skilled hands is undoubtedly entirely due to
+better management. All of these girls throughout the period of
+comparison were engaged on the same kind of work, viz.: inspecting
+bicycle balls, three-sixteenths of an inch in diameter.
+
+The work of organization began in March, and although the records for
+the first three months were not entirely clear, the increased output due
+to better day work amounted undoubtedly to about 33 per cent. The
+increase per day from June on day work, to July on piece work, the hours
+each month being 10 1/2 per day, was 37 per cent. This increase was due
+to the introduction of piece work. The increase per day from July to
+August (the length of working days in July being 10 1/2 hours, and in
+August 9 1/2 hours, both months piece work) was 33 per cent.
+
+The increase from August to September (the length of working day in
+August being 9 1/2 hours, and in September 8 1/2 hours) was 0.08 per
+cent This means that the girls did practically the same amount of work
+per day in September, in 8 1/2 hours, that they did in August in 9 1/2
+hours.
+
+To summarize: the same ten girls did on an average each day in
+September, on piece work, when only working 8 1/2 hours per day, 2.42
+times as much, or nearly two and one-half times as much, in a day (not
+per hour, the increase per hour was of course much greater) as they had
+done when working on day work in March with a working day of 10 1/2
+hours. They earned $6.50 to $9.00 per week on piece work, while they had
+only earned $3.50 to $4.50 on day work. The accuracy of inspection under
+piece work was one-third greater than under day work.
+
+The time study for this work was done by my friend, Sanford E. Thompson,
+C. E. who also had the actual management of the girls throughout the
+period of transition. At this time Mr. H. L. Gantt was general
+superintendent of the company, and the work of systematizing was under
+the general direction of the writer. It is, of course, evident that the
+nature of the organizations required to manage different types of
+business must vary to an enormous extent, from the simple tonnage works
+(with its uniform product, which is best managed by a single strong man
+who carries all of the details in his head and who, with a few
+comparatively cheap assistants, pushes the enterprise through to
+success) to the large machine works, doing a miscellaneous business,
+with its intricate organization, in which the work of any one man
+necessarily counts for but little.
+
+It is this great difference in the type of the organization required
+that so frequently renders managers who have been eminently successful
+in one line utter failures when they undertake the direction of works of
+a different kind. This is particularly true of men successful in tonnage
+work who are placed in charge of shops involving much greater detail.
+
+In selecting an organization for illustration, it would seem best to
+choose one of the most elaborate. The manner in which this can be
+simplified to suit a less intricate case will readily suggest itself to
+any one interested in the subject. One of the most difficult works to
+organize is that of a large engineering establishment building
+miscellaneous machinery, and the writer has therefore chosen this for
+description.
+
+Practically all of the shops of this class are organized upon what may
+be called the military plan. The orders from the general are transmitted
+through the colonels, majors, captains, lieutenants and noncommissioned
+officers to the men. In the same way the orders in industrial
+establishments go from the manager through superintendents, foremen of
+shops, assistant foremen and gang bosses to the men. In an establishment
+of this kind the duties of the foremen, gang bosses, etc., are so
+varied, and call for an amount of special information coupled with such
+a variety of natural ability, that only men of unusual qualities to
+start with, and who have had years of special training, can perform them
+in a satisfactory manner. It is because of the difficulty--almost the
+impossibility of getting suitable foremen and gang bosses, more than for
+any other reason, that we so seldom hear of a miscellaneous machine
+works starting in on a large scale and meeting with much, if any,
+success for the first few years. This difficulty is not fully realized
+by the managers of the old well established companies, since their
+superintendents and assistants have grown up with the business, and have
+been gradually worked into and fitted for their especial duties through
+years of training and the process of natural selection. Even in these
+establishments, however, this difficulty has impressed itself upon the
+managers so forcibly that most of them have of late years spent
+thousands of dollars in re-grouping their machine tools for the purpose
+of making their foremanship more effective. The planers have been placed
+in one group, slotters in another, lathes in another, etc., so as to
+demand a smaller range of experience and less diversity of knowledge
+from their respective foremen.
+
+For an establishment, then, of this kind, starting up on a large scale,
+it may be said to be an impossibility to get suitable superintendents
+and foremen.
+
+The writer found this difficulty at first to be an almost insurmountable
+obstacle to his work in organizing manufacturing establishments; and
+after years of experience, overcoming the opposition of the heads of
+departments and the foremen and gang bosses, and training them to their
+new duties, still remains the greatest problem in organization. The
+writer has had comparatively little trouble in inducing workmen to
+change their ways and to increase their speed, providing the proper
+object lessons are presented to them, and time enough is allowed for
+these to produce their effect. It is rarely the case, however, that
+superintendents and foremen can find any reasons for changing their
+methods, which, as far as they can see, have been successful. And
+having, as a rule, obtained their positions owing to their unusual force
+of character, and being accustomed daily to rule other men, their
+opposition is generally effective.
+
+In the writer's experience, almost all shops are under-officered.
+Invariably the number of leading men employed is not sufficient to do
+the work economically. Under the military type of organization, the
+foreman is held responsible for the successful running of the entire
+shop, and when we measure his duties by the standard of the four leading
+principles of management above referred to, it becomes apparent that in
+his case these conditions are as far as possible from being fulfilled.
+His duties may be briefly enumerated in the following way. He must lay
+out the work for the whole shop, see that each piece of work goes in the
+proper order to the right machine, and that the man at the machine knows
+just what is to be done and how he is to do it. He must see that the
+work is not slighted, and that it is done fast, and all the while he
+must look ahead a month or so, either to provide more men to do the work
+or more work for the men to do. He must constantly discipline the men
+and readjust their wages, and in addition to this must fix piece work
+prices and supervise the timekeeping.
+
+The first of the four leading principles in management calls for a
+clearly defined and circumscribed task. Evidently the foreman's duties
+are in no way clearly circumscribed. It is left each day entirely to his
+judgment what small part of the mass of duties before him it is most
+important for him to attend to, and he staggers along under this
+fraction of the work for which he is responsible, leaving the balance to
+be done in many cases as the gang bosses and workmen see fit. The second
+principle calls for such conditions that the daily task can always be
+accomplished. The conditions in his case are always such that it is
+impossible for him to do it all, and he never even makes pretence of
+fulfilling his entire task. The third and fourth principles call for
+high pay in case the task is successfully done, and low pay in case of
+failure. The failure to realize the first two conditions, however,
+renders the application of the last two out of the question.
+
+The foreman usually endeavors to lighten his burdens by delegating his
+duties to the various assistant foremen or gang bosses in charge of
+lathes, planers, milling machines, vise work, etc. Each of these men is
+then called upon to perform duties of almost as great variety as those
+of the foreman himself. The difficulty in obtaining in one man the
+variety of special information and the different mental and moral
+qualities necessary to perform all of the duties demanded of those men
+has been clearly summarized in the following list of the nine qualities
+which go to make up a well rounded man:
+
+Brains.
+
+Education.
+
+Special or technical knowledge; manual dexterity or strength.
+
+Tact.
+
+Energy.
+
+Grit.
+
+Honesty.
+
+Judgment or common sense and
+
+Good health.
+
+Plenty of men who possess only three of the above qualities can be hired
+at any time for laborers' wages. Add four of these qualities together
+and you get a higher priced man. The man combining five of these
+qualities begins to be hard to find, and those with six, seven, and
+eight are almost impossible to get. Having this fact in mind, let us go
+over the duties which a gang boss in charge, say, of lathes or planers,
+is called upon to perform, and note the knowledge and qualities which
+they call for. First. He must be a good machinist--and this alone calls
+for years of special training, and limits the choice to a comparatively
+small class of men.
+
+Second. He must be able to read drawings readily, and have sufficient
+imagination to see the work in its finished state clearly before him.
+This calls for at least a certain amount of brains and education.
+
+Third. He must plan ahead and see that the right jigs, clamps, and
+appliances, as well as proper cutting tools, are on hand, and are used
+to set the work correctly in the machine and cut the metal at the right
+speed and feed. This calls for the ability to concentrate the mind upon
+a multitude of small details, and take pains with little, uninteresting
+things.
+
+Fourth. He must see that each man keeps his machine clean and in good
+order. This calls for the example of a man who is naturally neat and
+orderly himself.
+
+Fifth. He must see that each man turns out work of the proper quality.
+This calls for the conservative judgment and the honesty which are the
+qualities of a good inspector.
+
+Sixth. He must see that the men under him work steadily and fast. To
+accomplish this he should himself be a hustler, a man of energy, ready
+to pitch in and infuse life into his men by working faster than they do,
+and this quality is rarely combined with the painstaking care, the
+neatness and the conservative judgment demanded as the third, fourth,
+and fifth requirements of a gang boss.
+
+Seventh. He must constantly look ahead over the whole field of work and
+see that the parts go to the machines in their proper sequence, and that
+the right job gets to each machine.
+
+Eighth. He must, at least in a general way, supervise the timekeeping
+and fix piece work rates. Both the seventh and eighth duties call for a
+certain amount of clerical work and ability, and this class of work is
+almost always repugnant to the man suited to active executive work, and
+difficult for him to do; and the rate-fixing alone requires the whole
+time and careful study of a man especially suited to its minute detail.
+
+Ninth. He must discipline the men under him, and readjust their wages;
+and these duties call for judgment, tact, and judicial fairness.
+
+It is evident, then, that the duties which the ordinary gang boss is
+called upon to perform would demand of him a large proportion of the
+nine attributes mentioned above; and if such a man could be found he
+should be made manager or superintendent of a works instead of gang
+boss. However, bearing in mind the fact that plenty of men can be had
+who combine four or five of these attributes, it becomes evident that
+the work of management should be so subdivided that the various
+positions can be filled by men of this caliber, and a great part of the
+art of management undoubtedly lies in planning the work in this way.
+This can, in the judgment of the writer, be best accomplished by
+abandoning the military type of organization and introducing two broad
+and sweeping changes in the art of management:
+
+(a) As far as possible the workmen, as well as the gang bosses and
+foremen, should be entirely relieved of the work of planning, and of all
+work which is more or less clerical in its nature. All possible brain
+work should be removed from the shop and centered in the planning or
+laying-out department, leaving for the foremen and gang bosses work
+strictly executive in its nature. Their duties should be to see that the
+operations planned and directed from the planning room are promptly
+carried out in the shop. Their time should be spent with the men,
+teaching them to think ahead, and leading and instructing them in their
+work.
+
+(b) Throughout the whole field of management the military type of
+organization should be abandoned, and what may be called the'
+"functional type" substituted in its place. "Functional management"
+consists in so dividing the work of management that each man from the
+assistant superintendent down shall have as few functions as possible to
+perform. If practicable the work of each man in the management should be
+confined to the performance of a single leading function. Under the
+ordinary or military type, the workmen are divided into groups. The men
+in each group receive their orders from one man only, the foreman or
+gang boss of that group. This man is the single agent through which the
+various functions of the management are brought into contact with the
+men. Certainly the most marked outward characteristic of functional
+management lies in the fact that each workman, instead of coming in
+direct contact with the management at one point only, namely, through
+his gang boss, receives his daily orders and help directly from eight
+different bosses, each of whom performs his own particular function.
+Four of these bosses are in the planning room and of these three send
+their orders to and receive their returns from the men, usually in
+writing. Four others are in the shop and personally help the men in
+their work, each boss helping in his own particular `line or function
+only. Some of these bosses come in contact with each man only once or
+twice a day and then for a few minutes perhaps, while others are with
+the men all the time, and help each man frequently. The functions of one
+or two of these bosses require them to come in contact with each workman
+for so short a time each day that they can perform their particular
+duties perhaps for all of the men in the shop, and in their line they
+manage the entire shop. Other bosses are called upon to help their men
+so much and so often that each boss can perform his function for but a
+few men, and in this particular line a number of bosses are required,
+all performing the same function but each having his particular group of
+men to help. Thus the grouping of the men in the shop is entirely
+changed, each workman belonging to eight different groups according to
+the particular functional boss whom he happens to be working under at
+the moment.
+
+The following is a brief description of the duties of the four types of
+executive functional bosses which the writer has found it profitable to
+use in the active work of the shop: (1) gang bosses, (2) speed bosses,
+(3) inspectors, and (4) repair bosses.
+
+The gang boss has charge of the preparation of all work up to the time
+that the piece is set in the machine. It is his duty to see that every
+man under him has at all times at least one piece of work ahead at his
+machine, with all the jigs, templates, drawings, driving mechanism,
+sling chains, etc., ready to go into his machine as soon as the piece he
+is actually working on is done. The gang boss must show his men how to
+set their work in their machines in the quickest time, and see that they
+do it. He is responsible for the work being accurately and quickly set,
+and should be not only able but willing to pitch in himself and show the
+men how to set the work in record time.
+
+The speed boss must see that the proper cutting tools are used for each
+piece of work, that the work is properly driven, that the cuts are
+started in the right part of the piece, and that the best speeds and
+feeds and depth of cut are used. His work begins only after the piece is
+in the lathe or planer, and ends when the actual machining ends. The
+speed boss must not only advise his men how best to do this work, but he
+must see that they do it in the quickest time, and that they use the
+speeds and feeds and depth of cut as directed on the instruction card In
+many cases he is called upon to demonstrate that the work can be done in
+the specified time by doing it himself in the presence of his men.
+
+The inspector is responsible for the quality of the work, and both the
+workmen and speed bosses must see that the work is all finished to suit
+him. This man can, of course, do his work best if he is a master of the
+art of finishing work both well and quickly.
+
+The repair boss sees that each workman keeps his machine clean, free
+from rust and scratches, and that he oils and treats it properly, and
+that all of the standards established for the care and maintenance of
+the machines and their accessories are rigidly maintained, such as care
+of belts and shifters, cleanliness of floor around machines, and orderly
+piling and disposition of work.
+
+The following is an outline of the duties of the four functional bosses
+who are located in the planning room, and who in their various functions
+represent the department in its connection with the men. The first three
+of these send their directions to and receive their returns from the
+men, mainly in writing. These four representatives of the planning
+department are, the (1) order of work and route clerk, (2) instruction
+card clerk, (3) time and cost clerk, and (4) shop disciplinarian.
+
+Order of Work and Route Clerk. After the route clerk in the planning
+department has laid out the exact route which each piece of work is to
+travel through the shop from machine to machine in order that it may be
+finished at the time it is needed for assembling, and the work done in
+the most economical way, the order of work clerk daily writes lists
+instructing the workmen and also all of the executive shop bosses as to
+the exact order in which the work is to be done by each class of
+machines or men, and these lists constitute the chief means for
+directing the workmen in this particular function.
+
+Instruction Card Clerks. The "instruction card," as its name indicates,
+is the chief means employed by the planning department for instructing
+both the executive bosses and the men in all of the details of their
+work. It tells them briefly the general and detail drawing to refer to,
+the piece number and the cost order number to charge the work to, the
+special jigs, fixtures, or tools to use, where to start each cut, the
+exact depth of each cut, and how many cuts to take, the speed and feed
+to be used for each cut, and the time within which each operation must
+be finished. It also informs them as to the piece rate, the differential
+rate, or the premium to be paid for completing the task within the
+specified time (according to the system employed); and further, when
+necessary, refers them by name to the man who will give them especial
+directions. This instruction card is filled in by one or more members of
+the planning department, according to the nature and complication of the
+instructions, and bears the same relation to the planning room that the
+drawing does to the drafting room. The man who sends it into the shop
+and who, in case difficulties are met with in carrying out the
+instructions, sees that the proper man sweeps these difficulties away,
+is called the instruction card foreman.
+
+Time and Cost Clerk. This man sends to the men through the "time ticket"
+all the information they need for recording their time and the cost of
+the work, and secures proper returns from them. He refers these for
+entry to the cost and time record clerks in the planning room.
+
+Shop Disciplinarian. In case of insubordination or impudence, repeated
+failure to do their duty, lateness or unexcused absence, the shop
+disciplinarian takes the workman or bosses in hand and applies the
+proper remedy. He sees that a complete record of each man's virtues and
+defects is kept. This man should also have much to do with readjusting
+the wages of the workmen. At the very least, he should invariably be
+consulted before any change is made. One of his important functions
+should be that of peace-maker.
+
+Thus, under functional foremanship, we see that the work which, under
+the military type of organization, was done by the single gang boss, is
+subdivided among eight men: (1) route clerks, (2) instruction card
+clerks, (3) cost and time clerks, who plan and give directions from the
+planning room; (4) gang bosses, (5) speed bosses, (6) inspectors, (7)
+repair bosses, who show the men how to carry out their instructions, and
+see that the work is done at the proper speed; and (8) the shop
+disciplinarian, who performs this function for the entire establishment.
+
+The greatest good resulting from this change is that it becomes possible
+in a comparatively short time to train bosses who can really and fully
+perform the functions demanded of them, while under the old system it
+took years to train men who were after all able to thoroughly perform
+only a portion of their duties. A glance at the nine qualities needed
+for a well rounded man and then at the duties of these functional
+foremen will show that each of these men requires but a limited number
+of the nine qualities in order to successfully fill his position; and
+that the special knowledge which he must acquire forms only a small part
+of that needed by the old style gang boss. The writer has seen men taken
+(some of them from the ranks of the workmen, others from the old style
+bosses and others from among the graduates of industrial schools,
+technical schools and colleges) and trained to become efficient
+functional foremen in from six to eighteen months. Thus it becomes
+possible with functional foremanship to thoroughly and completely equip
+even a new company starting on a large scale with competent officers in
+a reasonable time, which is entirely out of the question under the old
+system. Another great advantage resulting from functional or divided
+foremanship is that it becomes entirely practicable to apply the four
+leading principles of management to the bosses as well as to the
+workmen. Each foreman can have a task assigned him which is so
+accurately measured that he will be kept fully occupied and still will
+daily be able to perform his entire function. This renders it possible
+to pay him high wages when he is successful by giving him a premium
+similar to that offered the men and leave him with low pay when he
+fails.
+
+The full possibilities of functional foremanship, however, will not have
+been realized until almost all of the machines in the shop are run by
+men who are of smaller calibre and attainments, and who are therefore
+cheaper than those required under the old system. The adoption of
+standard tools, appliances, and methods throughout the shop, the
+planning done in the planning room and the detailed instructions sent
+them from this department, added to the direct help received from the
+four executive bosses, permit the use of comparatively cheap men even on
+complicated work. Of the men in the machine shop of the Bethlehem Steel
+Company engaged in running the roughing machines, and who were working
+under the bonus system when the writer left them, about 95 per cent were
+handy men trained up from laborers. And on the finishing machines,
+working on bonus, about 25 per cent were handy men.
+
+To fully understand the importance of the work which was being done by
+these former laborers, it must be borne in mind that a considerable part
+of their work was very large and expensive. The forgings which they were
+engaged in roughing and finishing weighed frequently many tons. Of
+course they were paid more than laborer's wages, though not as much as
+skilled machinists. The work in this shop was most miscellaneous in its
+nature.
+
+Functional foremanship is already in limited use in many of the best
+managed shops. A number of managers have seen the practical good that
+arises from allowing two or three men especially trained in their
+particular lines to deal directly with the men instead of at second hand
+through the old style gang boss as a mouthpiece. So deep rooted,
+however, is the conviction that the very foundation of management rests
+in the military type as represented by the principle that no workman can
+work under two bosses at the same time, that all of the managers who are
+making limited use of the functional plan seem to feel it necessary to
+apologize for or explain away their use of it; as not really in this
+particular case being a violation of that principle. The writer has
+never yet found one, except among the works which he had assisted in
+organizing, who came out squarely and acknowledged that he was using
+functional foremanship because it was the right principle.
+
+The writer introduced five of the elements of functional foremanship
+into the management of the small machine shop of the Midvale Steel
+Company of Philadelphia while he was foreman of that shop in 1882-1883:
+(1) the instruction card clerk, (2) the time clerk, (3) the inspector,
+(4) the gang boss, and (5) the shop disciplinarian. Each of these
+functional foremen dealt directly with the workmen instead of giving
+their orders through the gang boss. The dealings of the instruction card
+clerk and time clerk with the workmen were mostly in writing, and the
+writer himself performed the functions of shop disciplinarian, so that
+it was not until he introduced the inspector, with orders to go straight
+to the men instead of to the gang boss, that he appreciated the
+desirability of functional foremanship as a distinct principle in
+management. The prepossession in favor of the military type was so
+strong with the managers and owners of Midvale that it was not until
+years after functional foremanship was in continual use in this shop
+that he dared to advocate it to his superior officers as the correct
+principle.
+
+Until very recently in his organization of works he has found it best to
+first introduce five or six of the elements of functional foremanship
+quietly, and get them running smoothly in a shop before calling
+attention to the principle involved. When the time for this announcement
+comes, it invariably acts as the proverbial red rag on the bull. It was
+some years later that the writer subdivided the duties of the "old gang
+boss" who spent his whole time with the men into the four functions of
+(1) speed boss, (2) repair boss, (3) inspector, and (4) gang boss, and
+it is the introduction of these four shop bosses directly helping the
+men (particularly that of the speed boss) in place of the single old
+boss, that has produced the greatest improvement in the shop.
+
+When functional foremanship is introduced in a large shop, it is
+desirable that all of the bosses who are performing the same function
+should have their own foreman over them; for instance, the speed bosses
+should have a speed foreman over them, the gang bosses, a head gang
+boss; the inspectors, a chief inspector, etc., etc. The functions of
+these over-foremen are twofold. The first part of their work is to teach
+each of the bosses under them the exact nature of his duties, and at the
+start, also to nerve and brace them up to the point of insisting that
+the workmen shall carry out the orders exactly as specified on the
+instruction cards. This is a difficult task at first, as the workmen
+have been accustomed for years to do the details of the work to suit
+themselves, and many of them are intimate friends of the bosses and
+believe they know quite as much about their business as the latter. The
+second function of the over-foreman is to smooth out the difficulties
+which arise between the different types of bosses who in turn directly
+help the men. The speed boss, for instance, always follows after the
+gang boss on any particular job in taking charge of the workmen. In this
+way their respective duties come in contact edgeways, as it were, for a
+short time, and at the start there is sure to be more or less friction
+between the two. If two of these bosses meet with a difficulty which
+they cannot settle, they send for their respective over-foremen, who are
+usually able to straighten it out. In case the latter are unable to
+agree on the remedy, the case is referred by them to the assistant
+superintendent, whose duties, for a certain time at least, may consist
+largely in arbitrating such difficulties and thus establishing the
+unwritten code of laws by which the shop is governed. This serves as one
+example of what is called the "exception principle" in management, which
+is referred to later.
+
+Before leaving this portion of the subject the writer wishes to call
+attention to the analogy which functional foremanship bears to the
+management of a large, up-to-date school. In such a school the children
+are each day successively taken in hand by one teacher after another who
+is trained in his particular specialty, and they are in many cases
+disciplined by a man particularly trained in this function. The old
+style, one teacher to a class plan is entirely out of date.
+
+The writer has found that better results are attained by placing the
+planning department in one office, situated, of course, as close to the
+center of the shop or shops as practicable, rather than by locating its
+members in different places according to their duties. This department
+performs more or less the functions of a clearing house. In doing their
+various duties, its members must exchange information frequently, and
+since they send their orders to and receive their returns from the men
+in the shop, principally in writing, simplicity calls for the use, when
+possible, of a single piece of paper for each job for conveying the
+instructions of the different members of the planning room to the men
+and another similar paper for receiving the returns from the men to the
+department. Writing out these orders and acting promptly on receipt of
+the returns and recording same requires the members of the department to
+be close together. The large machine shop of the Bethlehem Steel Company
+was more than a quarter of a mile long, and this was successfully run
+from a single planning room situated close to it. The manager,
+superintendent, and their assistants should, of course, have their
+offices adjacent to the planning room and, if practicable, the drafting
+room should be near at hand, thus bringing all of the planning and
+purely brain work of the establishment close together. The advantages of
+this concentration were found to be so great at Bethlehem that the
+general offices of the company, which were formerly located in the
+business part of the town, about a mile and a half away, were moved into
+the middle of the works adjacent to the planning room.
+
+The shop, and indeed the whole works, should be managed, not by the
+manager, superintendent, or foreman, but by the planning department. The
+daily routine of running the entire works should be carried on by the
+various functional elements of this department, so that, in theory at
+least, the works could run smoothly even if the manager, superintendent
+and their assistants outside the planning room were all to be away for a
+month at a time.
+
+The following are the leading functions of the planning department:
+
+(a) The complete analysis of all orders for machines or work taken by
+the company.
+
+(b) Time study for all work done by hand throughout the works, including
+that done in setting the work in machines, and all bench, vise work and
+transportation, etc.
+
+(c) Time study for all operations done by the various machines.
+
+(d) The balance of all materials, raw materials, stores and finished
+parts, and the balance of the work ahead for each class of machines and
+workmen.
+
+(e) The analysis of all inquiries for new work received in the sales
+department and promises for time of delivery.
+
+(f) The cost of all items manufactured with complete expense analysis
+and complete monthly comparative cost and expense exhibits.
+
+(g) The pay department.
+
+(h) The mnemonic symbol system for identification of parts and for
+charges.
+
+(i) Information bureau.
+
+(j) Standards.
+
+(k) Maintenance of system and plant, and use of the tickler.
+
+(l) Messenger system and post office delivery.
+
+(m) Employment bureau.
+
+(n) Shop disciplinarian.
+
+(o) A mutual accident insurance association.
+
+(p) Rush order department.
+
+(q) Improvement of system or plant.
+
+These several functions may be described more in detail as follows:
+
+(a) THE COMPLETE ANALYSIS OF ALL ORDERS FOR MACHINES OR WORK TAKEN BY
+THE COMPANY.
+
+This analysis should indicate the designing and drafting required, the
+machines or parts to be purchased and all data needed by the purchasing
+agent, and as soon as the necessary drawings and information come from
+the drafting room the lists of patterns, castings and forgings to be
+made, together with all instructions for making them, including general
+and detail drawing, piece number, the mnemonic symbol belonging to each
+piece (as referred to under (h) below) a complete analysis of the
+successive operations to be done on each piece, and the exact route
+which each piece is to travel from place to place in the works.
+
+(b) TIME STUDY FOR ALL WORK DONE BY HAND THROUGHOUT THE WORKS, INCLUDING
+THAT DONE IN SETTING THE WORK IN MACHINES, AND ALL BENCH AND VISE WORK,
+AND TRANSPORTATION, ETC.
+
+This information for each particular operation should be obtained by
+summing up the various unit times of which it consists. To do this, of
+course, requires the men performing this function to keep continually
+posted as to the best methods and appliances to use, and also to
+frequently consult with and receive advice from the executive gang
+bosses who carry out this work in the shop, and from the man in the
+department of standards and maintenance of plant (j) beneath. The actual
+study of unit times, of course, forms the greater part of the work of
+this section of the planning room.
+
+(c) TIME STUDY FOR ALL OPERATIONS DONE BY THE VARIOUS MACHINES.
+
+This information is best obtained from slide rules, one of which is made
+for each machine tool or class of machine tools throughout the works;
+one, for instance, for small lathes of the same type, one for planers of
+same type, etc. These slide rules show the best way to machine each
+piece and enable detailed directions to be given the workman as to how
+many cuts to take, where to start each cut, both for roughing out work
+and finishing it, the depth of the cut, the best feed and speed, and the
+exact time required to do each operation.
+
+The information obtained through function (b), together with that
+obtained through (c) afford the basis for fixing the proper piece rate,
+differential rate or the bonus to be paid, according to the system
+employed.
+
+(d) THE BALANCE OF ALL MATERIALS, RAW MATERIALS, STORES AND FINISHED
+PARTS, AND THE NUMBER OF DAYS' WORK AHEAD FOR EACH CLASS OF MACHINES AND
+WORKMEN.
+
+Returns showing all receipts, as well as the issue of all raw materials,
+stores, partly finished work, and completed parts and machines, repair
+parts, etc., daily pass through the balance clerk, and each item of
+which there have been issues or receipts, or which has been appropriated
+to the use of a machine about to be manufactured, is daily balanced.
+Thus the balance clerk can see that the required stocks of materials are
+kept on hand by notifying at once the purchasing agent or other proper
+party when the amount on hand falls below the prescribed figure. The
+balance clerk should also keep a complete running balance of the hours
+of work ahead for each class of machines and workmen, receiving for this
+purpose daily from (a), (b), and (c) above statements of the hours of
+new work entered, and from the inspectors and daily time cards a
+statement of the work as it is finished. He should keep the manager and
+sales department posted through daily or weekly condensed reports as to
+the number of days of work ahead for each department, and thus enable
+them to obviate either a congestion or scarcity of work.
+
+(e) THE ANALYSIS OF ALL INQUIRIES FOR NEW WORK RECEIVED IN THE SALES
+DEPARTMENT AND PROMISES AS TO TIME OF DELIVERY. The man or men in the
+planning room who perform the duties indicated at (a) above should
+consult with (b) and (c) and obtain from them approximately the time
+required to do the work inquired for, and from (d) the days of work
+ahead for the various machines and departments, and inform the sales
+department as to the probable time required to do the work and the
+earliest date of delivery.
+
+(f) THE COST OF ALL ITEMS MANUFACTURED, WITH COMPLETE EXPENSE ANALYSIS
+AND COMPLETE MONTHLY COMPARATIVE COST AND EXPENSE EXHIBITS.
+
+The books of the company should be closed once a month and balanced as
+completely as they usually are at the end of the year, and the exact
+cost of each article of merchandise finished during the previous month
+should be entered on a comparative cost sheet. The expense exhibit
+should also be a comparative sheet. The cost account should be a
+completely balanced account, and not a memorandum account as it
+generally is. All the expenses of the establishment, direct and
+indirect, including the administration and sales expense, should be
+charged to the cost of the product which is to be sold.
+
+(g) THE PAY DEPARTMENT.
+
+The pay department should include not only a record of the time and
+wages and piece work earnings of each man, and his weekly or monthly
+payment, but the entire supervision of the arrival and departure of the
+men from the works and the various checks needed to insure against error
+or cheating. It is desirable that some one of the "exception systems" of
+time keeping should be used.
+
+(h) THE MNEMONIC SYMBOL SYSTEM FOR IDENTIFICATION OF PARTS AND FOR
+CHARGES.
+
+Some one of the mnemonic symbol systems should be used instead of
+numbering the parts or orders for identifying the various articles of
+manufacture, as well as the operations to be performed on each piece and
+the various expense charges of the establishment. This becomes a matter
+of great importance when written directions are sent from the planning
+room to the men, and the men make their returns in writing. The clerical
+work and chances for error are thereby greatly diminished.
+
+(i) INFORMATION BUREAU.
+
+The information bureau should include catalogues of drawings (providing
+the drafting room is close enough to the planning room) as well as all
+records and reports for the whole establishment. The art of properly
+indexing information is by no means a simple one, and as far as possible
+it should be centered in one man.
+
+(j) STANDARDS.
+
+The adoption and maintenance of standard tools, fixtures, and appliances
+down to the smallest item throughout the works and office, as well as
+the adoption of standard methods of doing all operations which are
+repeated, is a matter of importance, so that under similar conditions
+the same appliances and methods shall be used throughout the plant. This
+is an absolutely necessary preliminary to success in assigning daily
+tasks which are fair and which can be carried out with certainty.
+
+(k) MAINTENANCE OF SYSTEM AND PLANT, AND USE OF THE TICKLER.
+
+One of the most important functions of the planning room is that of the
+maintenance of the entire system, and of standard methods and appliances
+throughout the establishment, including the planning room itself. An
+elaborate time table should be made out showing daily the time when and
+place where each report is due, which is necessary to carry on the work
+and to maintain the system. It should be the duty of the member of the
+planning room in charge of this function to find out at each time
+through the day when reports are due, whether they have been received,
+and if not, to keep bothering the man who is behind hand until he has
+done his duty. Almost all of the reports, etc., going in and out of the
+planning room can be made to pass through this man. As a mechanical aid
+to him in performing his function the tickler is invaluable. The best
+type of tickler is one which has a portfolio for each day in the year,
+large enough to insert all reminders and even quite large instruction
+cards and reports without folding. In maintaining methods and
+appliances, notices should be placed in the tickler in advance, to come
+out at proper intervals throughout the year for the inspection of each
+element of the system and the inspection and overhauling of all
+standards as well as the examination and repairs at stated intervals of
+parts of machines, boilers, engines, belts, etc., likely to wear out or
+give trouble, thus preventing breakdowns and delays. One tickler can be
+used for the entire works and is preferable to a number of individual
+ticklers. Each man can remind himself of his various small routine
+duties to be performed either daily or weekly, etc., and which might be
+otherwise overlooked, by sending small reminders, written on slips of
+paper, to be placed in the tickler and returned to him at the proper
+time. Both the tickler and a thoroughly systematized messenger service
+should be immediately adjacent to this man in the planning room, if not
+directly under his management.
+
+The proper execution of this function of the planning room will relieve
+the superintendent of some of the most vexatious and time-consuming of
+his duties, and at the same time the work will be done more thoroughly
+and cheaper than if he does it himself. By the adoption of standards and
+the use of instruction cards for overhauling machinery, etc., and the
+use of a tickler as above described, the writer reduced the repair force
+of the Midvale Steel Works to one-third its size while he was in the
+position of master mechanic. There was no planning department, however,
+in the works at that time.
+
+(l) MESSENGER SYSTEM AND POST OFFICE DELIVERY.
+
+The messenger system should be thoroughly organized and records kept
+showing which of the boys are the most efficient. This should afford one
+of the best opportunities for selecting boys fit to be taught trades, as
+apprentices or otherwise. There should be a regular half hourly post
+office delivery system for collecting and distributing routine reports
+and records and messages in no especial hurry throughout the works.
+
+(m) EMPLOYMENT BUREAU.
+
+The selection of the men who are employed to fill vacancies or new
+positions should receive the most careful thought and attention and
+should be under the supervision of a competent man who will inquire into
+the experience and especial fitness and character of applicants and keep
+constantly revised lists of men suitable for the various positions in
+the shop. In this section of the planning room. an individual record of
+each of the men in the works can well be kept showing his punctuality,
+absence without excuse, violation of shop rules, spoiled work or damage
+to machines or tools, as well as his skill at various kinds of work;
+average earnings, and other good qualities for the use of this
+department as well as the shop disciplinarian.
+
+(n) THE SHOP DISCIPLINARIAN.
+
+This man may well be closely associated with the employment bureau and,
+if the works is not too large, the two functions can be performed by the
+same man. The knowledge of character and of the qualities needed for
+various positions acquired in disciplining the men should be useful in
+selecting them for employment. This man should, of course, consult
+constantly with the various foremen and bosses, both in his function as
+disciplinarian arid in the employment of men.
+
+(o) A MUTUAL ACCIDENT INSURANCE ASSOCIATION.
+
+A mutual accident insurance association should be established, to which
+the company contributes as well as the men. The object of this
+association is twofold: first the relief of men who are injured, and
+second, an opportunity of returning to the workmen all fines which are
+imposed upon them in disciplining them, and for damage to company's
+property or work spoiled.
+
+(p) RUSH ORDER DEPARTMENT.
+
+Hurrying through parts which have been spoiled or have developed
+defects, and also special repair orders for customers, should receive
+the attention of one man.
+
+(q) IMPROVEMENT OF SYSTEM OR PLANT.
+
+One man should be especially charged with the work of improvement in the
+system and in the running of the plant.
+
+The type of organization described in the foregoing paragraphs has such
+an appearance of complication and there are so many new positions
+outlined in the planning room which do not exist even in a well managed
+establishment of the old school, that it seems desirable to again call
+attention to the fact that, with the exception of the study of unit
+times and one or two minor functions, each item of work which is
+performed in the planning room with the superficial appearance of great
+complication must also be performed by the workmen in the shop under the
+old type of management, with its single cheap foreman and the appearance
+of great simplicity. In the first case, however, the work is done by an
+especially trained body of men who work together like a smoothly running
+machine, and in the second by a much larger number of men very poorly
+trained and ill-fitted for this work, and each of whom while doing it is
+taken away from some other job for which he is well trained. The work
+which is now done by one sewing machine, intricate in its appearance,
+was formerly done by a number of women with no apparatus beyond a simple
+needle and thread.
+
+There is no question that the cost of production is lowered by
+separating the work of planning and the brain work as much as possible
+from the manual labor. When this is done, however, it is evident that
+the brain workers must be given sufficient work to keep them fully busy
+all the time. They must not be allowed to stand around for a
+considerable part of their time waiting for their particular kind of
+work to come along, as is so frequently the case.
+
+The belief is almost universal among manufacturers that for economy the
+number of brain workers, or non-producers, as they are called, should be
+as small as possible in proportion to the number of producers, i.e.,
+those who actually work with their hands. An examination of the most
+successful establishments will, however, show that the reverse is true.
+A number of years ago the writer made a careful study of the proportion
+of producers to non-producers in three of the largest and most
+successful companies in the world, who were engaged in doing the same
+work in a general way. One of these companies was in France, one in
+Germany, and one in the United States. Being to a certain extent rivals
+in business and situated in different countries, naturally neither one
+had anything to do with the management of the other. In the course of
+his investigation, the writer found that the managers had never even
+taken the trouble to ascertain the exact proportion of non-producers to
+producers in their respective works; so that the organization of each
+company was an entirely independent evolution.
+
+By non-producers the writer means such employees as all of the general
+officers, the clerks, foremen, gang bosses, watchmen, messenger boys,
+draftsmen, salesmen, etc.; and by "producers," only those who actually
+work with their hands.
+
+In the French and German works there was found to be in each case one
+non-producer to between six and seven producers, and in the American
+works one non-producer to about seven producers. The writer found that
+in the case of another works, doing the same kind of business and whose
+management was notoriously bad, the proportion of non-producers to
+producers was one non-producer to about eleven producers. These
+companies all had large forges, foundries, rolling mills and machine
+shops turning out a miscellaneous product, much of which was machined.
+They turned out a highly wrought, elaborate and exact finished product,
+and did an extensive engineering and miscellaneous machine construction
+business.
+
+In the case of a company doing a manufacturing business with a uniform
+and simple product for the maximum economy, the number of producers to
+each non-producer would of course be larger. No manager need feel
+alarmed then when he sees the number of non-producers increasing in
+proportion to producers, providing the non-producers are busy all of
+their time, and providing, of course, that in each case they are doing
+efficient work.
+
+It would seem almost unnecessary to dwell upon the desirability of
+standardizing, not only all of the tools, appliances and implements
+throughout the works and office, but also the methods to be used in the
+multitude of small operations which are repeated day after day. There
+are many good managers of the old school, however, who feel that this
+standardization is not only unnecessary but that it is undesirable,
+their principal reason being that it is better to allow each workman to
+develop his individuality by choosing the particular implements and
+methods which suit him best. And there is considerable weight in this
+contention when the scheme of management is to allow each workman to do
+the work as he pleases and hold him responsible for results.
+Unfortunately, in ninety-nine out of a hundred such cases only the first
+part of this plan is carried out. The workman chooses his own methods
+and implements, but is not held in any strict sense accountable unless
+the quality of the work is so poor or the quantity turned out is so
+small as to almost amount to a scandal. In the type of management
+advocated by the writer, this complete standardization of all details
+and methods is not only desirable but absolutely indispensable as a
+preliminary to specifying the time in which each operation shall be
+done, and then insisting that it shall be done within the time allowed.
+
+Neglecting to take the time and trouble to thoroughly standardize all of
+such methods and details is one of the chief causes for setbacks and
+failure in introducing this system. Much better results can be attained,
+even if poor standards be adopted, than can be reached if some of a
+given class of implements are the best of their kind while others are
+poor. It is uniformity that is required. Better have them uniformly
+second class than mainly first with some second and some third class
+thrown in at random. In the latter case the workmen will almost always
+adopt the pace which conforms to the third class instead of the first or
+second. In fact, however, it is not a matter involving any great expense
+or time to select in each case standard implements which shall be nearly
+the best or the best of their kinds. The writer has never failed to make
+enormous gains in the economy of running by the adoption of standards.
+
+It was in the course of making a series of experiments with various air
+hardening tool steels with a view to adopting a standard for the
+Bethlehem works that Mr. J. Maunsel White, together with the writer,
+discovered the Taylor-White process of treating tool steel, which marks
+a distinct improvement in the art. The fact that this improvement was
+made not by manufacturers of tool steel, but in the course of the
+adoption of standards, shows both the necessity and fruitfulness of
+methodical and careful investigation in the choice of much neglected
+details. The economy to be gained through the adoption of uniform
+standards is hardly realized at all by the managers of this country. No
+better illustration of this fact is needed than that of the present
+condition of the cutting tools used throughout the machine shops of the
+United States. Hardly a shop can be found in which tools made from a
+dozen different qualities of steel are not used side by side, in many
+cases with little or no means of telling one make from another; and in
+addition, the shape of the cutting edge of the tool is in most cases
+left to the fancy of each individual workman. When one realizes that the
+cutting speed of the best treated air hardening steel is for a given
+depth of cut, feed and quality of metal being cut, say sixty feet per
+minute, while with the same shaped tool made from the best carbon tool
+steel and with the same conditions, the cutting speed will be only
+twelve feet per minute, it becomes apparent how little the necessity for
+rigid standards is appreciated.
+
+Let us take another illustration. The machines of the country are still
+driven by belting. The motor drive, while it is coming, is still in the
+future. There is not one establishment in one hundred that does not
+leave the care and tightening of the belts to the judgment of the
+individual who runs the machine, although it is well known to all who
+have given any study to the subject that the most skilled machinist
+cannot properly tighten a belt without the use of belt clamps fitted
+with spring balances to properly register the tension. And the writer
+showed in a paper entitled "Notes on Belting" presented to The American
+Society of Mechanical Engineers in 1893, giving the results of an
+experiment tried on all of the belts in a machine shop and extending
+through nine years, in which every detail of the care and tightening and
+tension of each belt was recorded, that belts properly cared for
+according to a standard method by a trained laborer would average twice
+the pulling power and only a fraction of the interruptions to
+manufacture of those tightened according to the usual methods. The loss
+now going on throughout the country from failure to adopt and maintain
+standards for all small details is simply enormous.
+
+It is, however, a good sign for the future that a firm such as Messrs.
+Dodge & Day of Philadelphia, who are making a specialty of standardizing
+machine shop details, find their time fully occupied.
+
+What may be called the "exception principle" in management is coming
+more and more into use, although, like many of the other elements of
+this art, it is used in isolated cases, and in most instances without
+recognizing it as a principle which should extend throughout the entire
+field. It is not an uncommon sight, though a sad one, to see the manager
+of a large business fairly swamped at his desk with an ocean of letters
+and reports, on each of which he thinks that he should put his initial
+or stamp. He feels that by having this mass of detail pass over his desk
+he is keeping in close touch with the entire business. The exception
+principle is directly the reverse of this. Under it the manager should
+receive only condensed, summarized, and invariably comparative reports,
+covering, however, all of the elements entering into the management, and
+even these summaries should all be carefully gone over by an assistant
+before they reach the manager, and have all of the exceptions to the
+past averages or to the standards pointed out, both the especially good
+and especially bad exceptions, thus giving him in a few minutes a full
+view of progress which is being made, or the reverse, and leaving him
+free to consider the broader lines of policy and to study the character
+and fitness of the important men under him. The exception principle can
+be applied in many ways, and the writer will endeavor to give some
+further illustrations of it later.
+
+The writer has dwelt at length upon the desirability of concentrating as
+much as possible clerical and brain work in the planning department.
+There is, however, one such important exception to this rule that it
+would seem desirable to call attention to it. As already stated, the
+planning room gives its orders and instructions to the men mainly in
+writing and of necessity must also receive prompt and reliable written
+returns and reports which shall enable its members to issue orders for
+the next movement of each piece, lay out the work for each man for the
+following day, properly post the balance of work and materials accounts,
+enter the records on cost accounts and also enter the time and pay of
+each man on the pay sheet. There is no question that all of this
+information can be given both better and cheaper by the workman direct
+than through the intermediary of a walking time keeper, providing the
+proper instruction and report system has been introduced in the works
+with carefully ruled and printed instruction and return cards, and
+particularly providing a complete mnemonic system of symbols has been
+adopted so as to save the workmen the necessity of doing much writing.
+The principle to which the writer wishes to call particular attention is
+that the only way in which workmen can be induced to write out all of
+this information accurately and promptly is by having each man write his
+own time while on day work and pay when on piece work on the same card
+on which he is to enter the other desired information, and then refusing
+to enter his pay on the pay sheet until after all of the required
+information has been correctly given by him. Under this system as soon
+as a workman completes a job and at quitting time, whether the job is
+completed or not, he writes on a printed time card all of the
+information needed by the planning room in connection with that job,
+signs it and forwards it at once to the planning room. On arriving in
+the planning room each time card passes through the order of work or
+route clerk, the balance clerk, the cost clerk, etc., on its way to the
+pay sheet, and unless the workman has written the desired information
+the card is sent back to him, and he is apt to correct and return it
+promptly so as to have his pay entered up. The principle is clear that
+if one wishes to have routine clerical work done promptly and correctly
+it should somehow be attached to the pay card of the man who is to give
+it. This principle, of course, applies to the information desired from
+inspectors, gang bosses and others as well as workmen, and to reports
+required from various clerks. In the case of reports, a pay coupon can
+be attached to the report which will be detached and sent to the pay
+sheet as soon as the report has been found correct.
+
+Before starting to make any radical changes leading toward an
+improvement in the system of management, it is desirable, and for
+ultimate success in most cases necessary, that the directors and the
+important owners of an enterprise shall be made to understand, at least
+in a general way, what is involved in the change. They should be
+informed of the leading objects which the new system aims at, such, for
+instance, as rendering mutual the interests of employer and employee
+through "high wages and low labor cost," the gradual selection and
+development of a body of first class picked workmen who will work extra
+hard and receive extra high wages and be dealt with individually instead
+of in masses. They should thoroughly understand that this can only be
+accomplished through the adoption of precise and exact methods, and
+having each smallest detail, both as to methods and appliances,
+carefully selected so as to be the best of its kind. They should
+understand the general philosophy of the system and should see that, as
+a whole, it must be in harmony with its few leading ideas, and that
+principles and details which are admirable in one type of management
+have no place whatever in another. They should be shown that it pays to
+employ an especial corps to introduce a new system just as it pays to
+employ especial designers and workmen to build a new plant; that, while
+a new system is being introduced, almost twice the number of foremen are
+required as are needed to run it after it is in; that all of this costs
+money, but that, unlike a new plant, returns begin to come in almost
+from the start from improved methods and appliances as they are
+introduced, and that in most cases the new system more than pays for
+itself as it goes along; that time, and a great deal of time, is
+involved in a radical change in management, and that in the case of a
+large works if they are incapable of looking ahead and patiently waiting
+for from two to four years, they had better leave things just as they
+are, since a change of system involves a change in the ideas, point of
+view and habits of many men with strong convictions and prejudices, and
+that this can only be brought about slowly and chiefly through a series
+of object lessons, each of which takes time, and through continued
+reasoning; and that for this reason, after deciding to adopt a given
+type, the necessary steps should be taken as fast as possible, one after
+another, for its introduction. The directors should be convinced that an
+increase m the proportion of non-producers to producers means increased
+economy and not red tape, providing the non-producers are kept busy at
+their respective functions. They should be prepared to lose some of
+their valuable men who cannot stand the change and also for the
+continued indignant protest of many of their old and trusted employees
+who can see nothing but extravagance in the new ways and ruin ahead. It
+is a matter of the first importance that, in addition to the directors
+of the company, all of those connected with the management should be
+given a broad and comprehensive view of the general objects to be
+attained and the means which will be employed. They should fully realize
+before starting on their work and should never lose sight of the fact
+that the great object of the new organization is to bring about two
+momentous changes in the men:
+
+First. A complete revolution in their mental attitude toward their
+employers and their work.
+
+Second. As a result of this change of feeling such an increase in their
+determination and physical activity, and such an improvement in the
+conditions under which the work is done as will result in many cases in
+their turning out from two to three times as much work as they have done
+in the past.
+
+First, then, the men must be brought to see that the new system changes
+their employers from antagonists to friends who are working as hard as
+possible side by side with them, all pushing in the same direction and
+all helping to bring about such an increase in the output and to so
+cheapen the cost of production that the men will be paid permanently
+from thirty to one hundred per cent more than they have earned in the
+past, and that there will still be a good profit left over for the
+company. At first workmen cannot see why, if they do twice as much work
+as they have done, they should not receive twice the wages. When the
+matter is properly explained to them and they have time to think it
+over, they will see that in most cases the increase in output is quite
+as much due to the improved appliances and methods, to the maintenance
+of standards and to the great help which they receive from the men over
+them as to their own harder work. They will realize that the company
+must pay for the introduction of the improved system, which costs
+thousands of dollars, and also the salaries of the additional foremen
+and of the clerks, etc., in the planning room as well as tool room and
+other expenses and that, in addition, the company is entitled to an
+increased profit quite as much as the men are. All but a few of them
+will come to understand in a general way that under the new order of
+things they are cooperating with their employers to make as great a
+saving as possible and that they will receive permanently their fair
+share of this gain.
+
+Then after the men acquiesce in the new order of things and are willing
+to do their part toward cheapening production, it will take time for
+them to change from their old easy-going ways to a higher rate of speed,
+and to learn to stay steadily at their work, think ahead and make every
+minute count. A certain percentage of them, with the best of intentions,
+will fail in this and find that they have no place in the new
+organization, while still others, and among them some of the best
+workers who are, however, either stupid or stubborn, can never be made
+to see that the new system is as good as the old; and these, too, must
+drop out. Let no one imagine, however, that this great change in the
+mental attitude of the men and the increase in their activity can be
+brought about by merely talking to them. Talking will be most useful--in
+fact indispensable--and no opportunity should be lost of explaining
+matters to them patiently, one man at a time, and giving them every
+chance to express their views.
+
+Their real instruction, however, must come through a series of object
+lessons. They must be convinced that a great increase in speed is
+possible by seeing here and there a man among them increase his pace and
+double or treble his output. They must see this pace maintained until
+they are convinced that it is not a mere spurt; and, most important of
+all, they must see the men who "get there" in this way receive a proper
+increase in wages and become satisfied. It is only with these object
+lessons in plain sight that the new theories can be made to stick. It
+will be in presenting these object lessons and in smoothing away the
+difficulties so that tile high speed can be maintained, and in assisting
+to form public opinion in the shop, that the great efficiency of
+functional foremanship under the direction of the planning room will
+first become apparent.
+
+In reaching the final high rate of speed which shall be steadily
+maintained, the broad fact should be realized that the men must pass
+through several distinct phases, rising from one plane of efficiency to
+another until the final level is reached. First they must be taught to
+work under an improved system of day work. Each man must learn how to
+give up his own particular way of doing things, adapt his methods to the
+many new standards, and grow accustomed to receiving and obeying
+directions covering details, large and small, which in the past have
+been left to his individual judgment. At first the workmen can see
+nothing in all of this but red tape and impertinent interference, and
+time must be allowed them to recover from their irritation, not only at
+this, but at every stage in their upward march. If they have been
+classed together and paid uniform wages for each class, the better men
+should be singled out and given higher wages so that they shall
+distinctly recognize the fact that each man is to be paid according to
+his individual worth. After becoming accustomed to direction in minor
+matters, they must gradually learn to obey instructions as to the pace
+at which they are to work, and grasp the idea, first, that the planning
+department knows accurately how long each operation should take; and
+second, that sooner or later they will have to work at the required
+speed if they expect to prosper. After they are used to following the
+speed instructions given them, then one at a time they can be raised to
+the level of maintaining a rapid pace throughout the day. And it is not
+until this final step has been taken that the full measure of the value
+of the new system will be felt by the men through daily receiving larger
+wages, and by the company through a materially larger output and lower
+cost of production. It is evident, of course, that all of the workmen in
+the shop will not rise together from one level to another. Those engaged
+in certain lines of work will have reached their final high speed while
+others have barely taken the first step. The efforts of the new
+management should not be spread out thin over the whole shop. They
+should rather be focused upon a few points, leaving the ninety and nine
+under the care of their former shepherds. After the efficiency of the
+men who are receiving special assistance and training has been raised to
+the desired level, the means for holding them there should be perfected,
+and they should never be allowed to lapse into their old ways. This
+will, of course, be accomplished in the most permanent way and rendered
+almost automatic, either through introducing task work with a bonus or
+the differential rate.
+
+Before taking any steps toward changing methods the manager should
+realize that at no time during the introduction of the system should any
+broad, sweeping changes be made which seriously affect a large number of
+the workmen. It would be preposterous, for instance, in going from day
+to piece work to start a large number of men on piece work at the same
+time. Throughout the early stages of organization each change made
+should affect one workman only, and after the single man affected has
+become used to the new order of things, then change one man after
+another from the old system to the new, slowly at first, and rapidly as
+public opinion in the shop swings around under the influence of proper
+object lessons. Throughout a considerable part of the time, then, there
+will be two distinct systems of management in operation in the same
+shop; and in many cases it is desirable to have the men working under
+the new system managed by an entirely different set of foremen, etc.,
+from those under the old.
+
+The first step, after deciding upon the type of organization, should be
+the selection of a competent man to take charge of the introduction of
+the new system. The manager should think himself fortunate if he can get
+such a man at almost any price, since the task is a difficult and
+thankless one and but few men can be found who possess the necessary
+information coupled with the knowledge of men, the nerve, and the tact
+required for success in this work. The manager should keep himself free
+as far as possible from all active part in the introduction of the new
+system. While changes are going on it will require his entire energies
+to see that there is no falling off in the efficiency of the old system
+and that the quality and quantity of the output is kept up. The mistake
+which is usually made when a change in system is decided upon is that
+the manager and his principal assistants undertake to make all of the
+improvements themselves during their spare time, with the common result
+that weeks, months, and years go by without anything great being
+accomplished. The respective duties of the manager and the man in charge
+of improvement, and the limits of the authority of the latter should be
+clearly defined and agreed upon, always bearing in mind that
+responsibility should invariably be accompanied by its corresponding
+measure of authority.
+
+The worst mistake that can be made is to refer to any part of the system
+as being "on trial." Once a given step is decided upon, all parties must
+be made to understand that it will go whether any one around the place
+likes it or not. In making changes in system the things that are given a
+"fair trial" fail, while the things that "must go," go all right.
+
+To decide where to begin is a perplexing and bewildering problem which
+faces the reorganizer in management when he arrives in a large
+establishment. In making this decision, as in taking each subsequent
+step, the most important consideration, which should always be first in
+the mind of the reformer, is "what effect will this step have upon the
+workmen?" Through some means (it would almost appear some especial
+sense) the workman seems to scent the approach of a reformer even before
+his arrival in town. Their suspicions are thoroughly aroused, and they
+are on the alert for sweeping changes which are to be against their
+interests and which they are prepared to oppose from the start. Through
+generations of bitter experiences working men as a class have teamed to
+look upon all change as antagonistic to their best interests. They do
+not ask the object of the change, but oppose it simply as change. The
+first changes, therefore, should be such as to allay the suspicions of
+the men and convince them by actual contact that the reforms are after
+all rather harmless and are only such as will ultimately be of benefit
+to all concerned. Such improvements then as directly affect the workmen
+least should be started first. At the same time it must be remembered
+that the whole operation is of necessity so slow that the new system
+should be started at as many points as possible, and constantly pushed
+as hard as possible. In the metal working plant which we are using for
+purposes of illustration a start can be made at once along all of the
+following lines:
+
+First. The introduction of standards throughout the works and office.
+
+Second. The scientific study of unit times on several different kinds of
+work.
+
+Third. A complete analysis of the pulling, feeding power and the proper
+speeding of the various machine tools throughout the place with a view
+of making a slide rule for properly running each machine.
+
+Fourth. The work of establishing the system of time cards by means of
+which ultimately all of the desired information will be conveyed from
+the men to the planning room.
+
+Fifth. Overhauling the stores issuing and receiving system so as to
+establish a complete running balance of materials.
+
+Sixth. Ruling and printing the various blanks that will be required for
+shop returns and reports, time cards, instruction cards, expense sheets,
+cost sheets, pay sheet, and balance records; storeroom; tickler; and
+maintenance of standards, system, and plant, etc.; and starting such
+functions of the planning room as do not directly affect the men.
+
+If the works is a large one, the man in charge of introducing the system
+should appoint a special assistant in charge of each of the above
+functions just as an engineer designing a new plant would start a number
+of draftsmen to work upon the various elements of construction. Several
+of these assistants will be brought into close contact with the men, who
+will in this way gradually get used to seeing changes going on and their
+suspicion, both of the new men and the methods, will have been allayed
+to such an extent before any changes which seriously affect them are
+made, that little or no determined opposition on their part need be
+anticipated. The most important and difficult task of the organizer will
+be that of selecting and training the various functional foremen who are
+to lead and instruct the workmen, and his success will be measured
+principally by his ability to mold and reach these men. They cannot be
+found, they must be made. They must be instructed in their new functions
+largely, in the beginning at least, by the organizer himself; and this
+instruction, to be effective, should be mainly in actually doing the
+work. Explanation and theory Will go a little way, but actual doing is
+needed to carry conviction. To illustrate: For nearly two and one-half
+years in the large shop of the Bethlehem Steel Company, one speed boss
+after another was instructed in the art of cutting metals fast on a
+large motor-driven lathe which was especially fitted to run at any
+desired speed within a very wide range. The work done in this machine
+was entirely connected, either with the study of cutting tools or the
+instruction of speed bosses. It was most interesting to see these men,
+principally either former gang bosses or the best workmen, gradually
+change from their attitude of determined and positive opposition to that
+in most cases of enthusiasm for, and earnest support of, the new
+methods. It was actually running the lathe themselves according to the
+new method and under the most positive and definite orders that produced
+the effect. The writer himself ran the lathe and instructed the first
+few bosses. It required from three weeks to two months for each man.
+Perhaps the most important part of the gang boss's and foreman's
+education lies ill teaching them to promptly obey orders and
+instructions received not only from the superintendent or some official
+high in the company, but from any member of the planning room whose
+especial function it is to direct the rest of the works in his
+particular line; and it may be accepted as an unquestioned fact that no
+gang boss is fit to direct his men until after he has learned to
+promptly obey instructions received from any proper source, whether he
+likes his instructions and the instructor or not, and even although he
+may be convinced that he knows a much better way of doing the work. The
+first step is for each man to learn to obey the laws as they exist, and
+next, if the laws are wrong, to have them reformed in the proper way.
+
+In starting to organize even a comparatively small shop, containing say
+from 75 to 100 men, it is best to begin by training in the full number
+of functional foremen, one for each function, since it must be
+remembered that about two out of three of those who are taught this work
+either leave of their own accord or prove unsatisfactory; and in
+addition, while both the workmen and bosses are adjusting themselves to
+their new duties, there are needed fully twice the number of bosses as
+are required to carry on the work after it is fully systematized.
+
+Unfortunately, there is no means of selecting in advance those out of a
+number of candidates for a given work who are likely to prove
+successful. Many of those who appear to have all of the desired
+qualities, and who talk and appear the best, will turn out utter
+failures, while on the other hand, some of the most unlikely men rise to
+the top. The fact is that the more attractive qualities of good manners,
+education, and even special training and skill, which are more apparent
+on the surface, count for less in an executive position than the grit,
+determination and bulldog endurance and tenacity that knows no defeat
+and comes up smiling to be knocked down over and over again. The two
+qualities which count most for success in this kind of executive work
+are grit and what may be called "constructive imagination"--the faculty
+which enables a man to use the few facts that are stored in his mind in
+getting around the obstacles that oppose him, and in building up
+something useful in spite of them; and unfortunately, the presence of
+these qualities, together with honesty and common sense, can only be
+proved through an actual trial at executive work. As we all know,
+success at college or in the technical school does not indicate the
+presence of these qualities, even though the man may have worked hard.
+Mainly, it would seem, because the work of obtaining an education is
+principally that of absorption and assimilation; while that of active
+practical life is principally the direct reverse, namely, that of giving
+out.
+
+In selecting men to be tried as foremen, or in fact for any position
+throughout the place, from the day laborer up, one of two different
+types of men should be chosen, according to the nature of the work to be
+done. For one class of work, men should be selected who are too good for
+the job; and for the other class of work, men who are barely good
+enough.
+
+If the work is of a routine nature, in which the same operations are
+likely to be done over and over again, with no great variety, and in
+which there is no apparent prospect of a radical change being made,
+perhaps through a term of years, even though the work itself may be
+complicated in its nature, a man should be selected whose abilities are
+barely equal to the task. Time and training will fit him for his work,
+and since he will be better paid than in the past, and will realize that
+he has been given the chance to make his abilities yield him the largest
+return--all of the elements for promoting contentment will be present;
+and those men who are blessed with cheerful dispositions will become
+satisfied and remain so. Of course, a considerable part of mankind is so
+born or educated that permanent contentment is out of the question. No
+one, however, should be influenced by the discontent of this class.
+
+On the other hand, if the work to be done is of great
+variety--particularly if improvements in methods are to be
+anticipated--throughout the period of active organization the men
+engaged in systematizing should be too good for their jobs. For such
+work, men should be selected whose mental caliber and attainments will
+fit them, ultimately at least, to command higher wages than can be
+afforded on the work which they are at. It will prove a wise policy to
+promote such men both to better positions and pay, when they have shown
+themselves capable of accomplishing results and the opportunity offers.
+The results which these high-class men will accomplish, and the
+comparatively short time which they will take in organizing, will much
+more than pay for the expense and trouble, later on, of training other
+men, cheaper and of less capacity, to take their places. In many cases,
+however, gang bosses and men will develop faster than new positions open
+for them. When this occurs, it will pay employers well to find them
+positions in other works, either with better pay, or larger
+opportunities; not only as a matter of kindly feeling and generosity
+toward their men, but even more with the object of promoting the best
+interests of their own establishments. For one man lost in this way,
+five will be stimulated to work to the very limit of their abilities,
+and will rise ultimately to take the place of the man who has gone, and
+the best class of men will apply for work where these methods prevail.
+But few employers, however, are sufficiently broad-minded to adopt this
+policy. They dread the trouble and temporary inconvenience incident to
+training in new men.
+
+Mr. James M. Dodge, Chairman of the Board of the Link-Belt Company, is
+one of the few men with whom the writer is acquainted who has been led
+by his kindly instincts, as well as by a far-sighted policy, to treat
+his employees in this way; and this, together with the personal
+magnetism and influence which belong to men of his type, has done much
+to render his shop one of the model establishments of the country,
+certainly as far as the relations of employer and men are concerned. On
+the other hand, this policy of promoting men and finding them new
+positions has its limits. No worse mistake can be made than that of
+allowing an establishment to be looked upon as a training school, to be
+used mainly for the education of many of its employees. All employees
+should bear in mind that each shop exists, first, last, and all the
+time, for the purpose of paying dividends to its owners. They should
+have patience, and never lose sight of this fact. And no man should
+expect promotion until after he has trained his successor to take his
+place. The writer is quite sure that in his own case, as a young man, no
+one element was of such assistance to him in obtaining new opportunities
+as the practice of invariably training another man to fill his position
+before asking for advancement.
+
+The first of the functional foremen to be brought into actual contact
+with the men should be the inspector; and the whole system of
+inspection, with its proper safeguards, should be in smooth and
+successful operation before any steps are taken toward stimulating the
+men to a larger output; otherwise an increase in quantity will probably
+be accompanied by a falling off in quality.
+
+Next choose for the application of the two principal functional foremen,
+viz., the speed boss and the gang boss, that portion of the work in
+which there is the largest need of, and opportunity for, making a gain.
+It is of the utmost importance that the first combined application of
+time study, slide rules, instruction cards, functional foremanship, and
+a premium for a large daily task should prove a success both for the
+workmen and for the company, and for this reason a simple class of work
+should be chosen for a start. The entire efforts of the new management
+should be centered on one point, and continue there until unqualified
+success has been attained.
+
+When once this gain has been made, a peg should be put in which shall
+keep it from sliding back in the least; and it is here that the task
+idea with a time limit for each job will be found most useful. Under
+ordinary piece work, or the Towne-Halsey plan, the men are likely at any
+time to slide back a considerable distance without having it
+particularly noticed either by them or the management. With the task
+idea, the first falling off is instantly felt by the workman through the
+loss of his day's bonus, or his differential rate, and is thereby also
+forcibly brought to the attention of the management.
+
+There is one rather natural difficulty which arises when the functional
+foremanship is first introduced. Men who were formerly either gang
+bosses, or foremen, are usually chosen as functional foremen, and these
+men, when they find their duties restricted to their particular
+functions, while they formerly were called upon to do everything, at
+first feel dissatisfied. They think that their field of usefulness is
+being greatly contracted. This is, however, a theoretical difficulty,
+which disappears when they really get into the full swing of their new
+positions. In fact the new position demands an amount of special
+information, forethought, and a clear-cut, definite responsibility that
+they have never even approximated in the past, and which is amply
+sufficient to keep all of their best faculties and energies alive and
+fully occupied. It is the experience of the writer that there is a great
+commercial demand for men with this sort of definite knowledge, who are
+used to accepting real responsibility and getting results; so that the
+training in their new duties renders them more instead of less valuable.
+
+As a rule, the writer has found that those who were growling the most,
+and were loudest in asserting that they ought to be doing the whole
+thing, were only one-half or one-quarter performing their own particular
+functions. This desire to do every one's else work in addition to their
+own generally disappears when they are held to strict account in their
+particular line, and are given enough work to keep them hustling.
+
+There are many people who will disapprove of the whole scheme of a
+planning department to do the thinking for the men, as well as a number
+of foremen to assist and lead each man in his work, on the ground that
+this does not tend to promote independence, self-reliance, and
+originality in the individual. Those holding this view, however, must
+take exception to the whole trend of modern industrial development; and
+it appears to the writer that they overlook the real facts in the case.
+
+It is true, for instance, that the planning room, and functional
+foremanship, render it possible for an intelligent laborer or helper in
+time to do much of the work now done by a machinist. Is not this a good
+thing for the laborer and helper? He is given a higher class of work,
+which tends to develop him and gives him better wages. In the sympathy
+for the machinist the case of the laborer is overlooked. This sympathy
+for the machinist is, however, wasted, since the machinist, with the aid
+of the new system, will rise to a higher class of work which he was
+unable to do in the past, and in addition, divided or functional
+foremanship will call for a larger number of men in this class, so that
+men, who must otherwise have remained machinists all their lives, will
+have the opportunity of rising to a foremanship.
+
+The demand for men of originality and brains was never so great as it is
+now, and the modern subdivision of labor, instead of dwarfing men,
+enables them all along the line to rise to a higher plane of efficiency,
+involving at the same time more brain work and less monotony. The type
+of man who was formerly a day laborer and digging dirt is now for
+instance making shoes in a shoe factory. The dirt handling is done by
+Italians or Hungarians.
+
+After the planning room with functional foremanship has accomplished its
+most difficult task, of teaching the men how to do a full day's work
+themselves, and also how to get it out of their machines steadily, then,
+if desired, the number of non-producers can be diminished, preferably,
+by giving each type of functional foreman more to do in his specialty;
+or in the case of a very small shop, by combining two different
+functions in the same man. The former expedient is, however, much to be
+preferred to the latter. There need never be any worry about what is to
+become of those engaged in systematizing after the period of active
+organization is over. The difficulty will still remain even with
+functional foremanship, that of getting enough good men to fill the
+positions, and the demand for competent gang bosses will always be so
+great that no good boss need look for a job.
+
+Of all the farces in management the greatest is that of an establishment
+organized along well planned lines, with all of the elements needed for
+success, and yet which fails to get either output or economy. There must
+be some man or men present in the organization who will not mistake the
+form for the essence, and who will have brains enough to find out those
+of their employees who "get there," and nerve enough to make it
+unpleasant for those who fail, as well as to reward those who succeed.
+No system can do away with the need of real men. Both system and good
+men are needed, and after introducing the best system, success will be
+in proportion to the ability, consistency, and respected authority of
+the management.
+
+In a book of this sort, it would be manifestly impossible to discuss at
+any length all of the details which go toward making the system a
+success. Some of them are of such importance as to render at least a
+brief reference to them necessary. And first among these comes the study
+of unit times.
+
+This, as already explained, is the most important element of the system
+advocated by the writer. Without it, the definite, clear-cut directions
+given to the workman, and the assigning of a full, yet just, daily task,
+with its premium for success, would be impossible; and the arch without
+the keystone would fall to the ground.
+
+In 1883, while foreman of the machine shop of the Midvale Steel Company
+of Philadelphia, it occurred to the writer that it was simpler to time
+with a stop watch each of the elements of the various kinds of work done
+in the place, and then find the quickest time in which each job could be
+done by summing up the total times of its component parts, than it was
+to search through the time records of former jobs and guess at the
+proper time and price. After practicing this method of time study
+himself for about a year, as well as circumstances would permit, it
+became evident that the system was a success.
+
+The writer then established the time-study and rate-fixing department,
+which has given out piece work prices in the place ever since.
+
+This department far more than paid for itself from the very start; but
+it was several years before the full benefits of the system were felt,
+owing to the fact that the best methods of making and recording time
+observations, as well as of determining the maximum capacity of each of
+the machines in the place, and of making working tables and time tables,
+were not at first adopted.
+
+It has been the writer's experience that the difficulties of scientific
+time study are underestimated at first, and greatly overestimated after
+actually trying the work for two or three months. The average manager
+who decides to undertake the study of unit times in his works fails at
+first to realize that he is starting a new art or trade. He understands,
+for instance, the difficulties which he would meet with in establishing
+a drafting room, and would look for but small results at first, if he
+were to give a bright man the task of making drawings, who had never
+worked in a drafting room, and who was not even familiar with drafting
+implements and methods, but he entirely underestimates the difficulties
+of this new trade.
+
+The art of studying unit times is quite as important and as difficult as
+that of the draftsman. It should be undertaken seriously, and looked
+upon as a profession. It has its own peculiar implements and methods,
+without the use and understanding of which progress will necessarily be
+slow, and in the absence of which there will be more failures than
+successes scored at first.
+
+When, on the other hand, an energetic, determined man goes at time study
+as if it were his life's work, with the determination to succeed, the
+results which he can secure are little short of astounding. The
+difficulties of the task will be felt at once and so strongly by any one
+who undertakes it, that it seems important to encourage the beginner by
+giving at least one illustration of what has been accomplished.
+
+Mr. Sanford E. Thompson, C. E., started in 1896 with but small help from
+the writer, except as far as the implements and methods are concerned,
+to study the time required to do all kinds of work in the building
+trades. In six years he has made a complete study of eight of the most
+important trades--excavation, masonry (including sewer-work and paving),
+carpentry, concrete and cement work, lathing and plastering, slating and
+roofing and rock quarrying. He took every stop watch observation himself
+and then, with the aid of two comparatively cheap assistants, worked up
+and tabulated all of his data ready for the printer. The magnitude of
+this undertaking will be appreciated when it is understood that the
+tables and descriptive matter for one of these trades alone take up
+about 250 pages. Mr. Thompson and the writer are both engineers, but
+neither of us was especially familiar with the above trades, and this
+work could not have been accomplished in a lifetime without the study of
+elementary units with a stop watch.
+
+In the course of this work, Mr. Thompson has developed what are in many
+respects the best implements in use, and with his permission some of
+them will be described. The blank form or note sheet used by Mr.
+Thompson, shown in Fig. 2 (see page 151), contains essentially:
+[Transcriber's note -- Figure 2 omitted]
+
+(1) Space for the description of the work and notes in regard to it.
+
+(2) A place for recording the total time of complete operations--that
+is, the gross time including all necessary delays, for doing a whole job
+or large portions of it.
+
+(3) Lines for setting down the "detail operations, or units" into which
+any piece of work may be divided, followed by columns for entering the
+averages obtained from the observations.
+
+(4) Squares for recording the readings of the stop watch when observing
+the times of these elements. If these squares are filled, additional
+records can be entered on the back. The size of the sheets, which should
+be of best quality ledger paper, is 8 3/4 inches wide by 7 inches long,
+and by folding in the center they can be conveniently carried in the
+pocket, or placed in a case (see Fig. 3, page 153) containing one or
+more stop watches.
+
+This case, or "watch book," is another device of Mr. Thompson's. It
+consists of a frame work, containing concealed in it one, two, or three
+watches, whose stop and start movements can be operated by pressing with
+the fingers of the left hand upon the proper portion of the cover of the
+note-book without the knowledge of the workman who is being observed.
+The frame is bound in a leather case resembling a pocket note-book, and
+has a place for the note sheets described.
+
+The writer does not believe at all in the policy of spying upon the
+workman when taking time observations for the purpose of time study. If
+the men observed are to be ultimately affected by the results of these
+observations, it is generally best to come out openly, and let them know
+that they are being timed, and what the object of the timing is. There
+are many cases, however, in which telling the workman that he was being
+timed in a minute way would only result in a row, and in defeating the
+whole object of the timing; particularly when only a few time units are
+to be studied on one man's work, and when this man will not be
+personally affected by the results of the observations. In these cases,
+the watch book of Mr. Thompson, holding the watches in the cover, is
+especially useful. A good deal of judgment is required to know when to
+time openly, or the reverse.
+
+FIGURE 3. -WATCH BOOK FOR TIME STUDY
+[Transcriber's note -- Figure 3 omitted]
+
+The operation selected for illustration on the note sheet shown in Fig.
+2, page 151, is the excavation of earth with wheelbarrows, and the
+values given are fair averages of actual contract work where the
+wheelbarrow man fills his own barrow. It is obvious that similar methods
+of analyzing and recording may be applied to work ranging from unloading
+coal to skilled labor on fine machine tools.
+
+The method of using the note sheets for timing a workman is as follows:
+
+After entering the necessary descriptive matter at the top of the sheet,
+divide the operation to be timed into its elementary units, and write
+these units one after another under the heading "Detail Operations." If
+the job is long and complicated, it may be analyzed while the timing is
+going on, and the elementary units entered then instead of beforehand.
+In wheelbarrow work as illustrated in the example shown on the note
+sheet, the elementary units consist of "filling barrow," "starting"
+(which includes throwing down shovel and lifting handles of barrow),
+"wheeling full," etc. These units might have been further
+subdivided--the first one into time for loading one shovelful, or still
+further into the time for filling and the time for emptying each
+shovelful. The letters a, b, c, etc., which are printed, are simply for
+convenience in designating the elements.
+
+We are now ready for the stop watch, which, to save clerical work,
+should be provided with a decimal dial similar to that shown in Fig. 4.
+The method of using this and recording the times depends upon the
+character of the time observations. In all cases, however, the stop
+watch times are recorded in the columns headed "Time" at the top of the
+right-hand half of the note sheet. These columns are the only place on
+the face of the sheet where stop watch readings are to be entered. If
+more space is required for these times, they should be entered on the
+back of the sheet. The rest of the figures (except those on the
+left-hand side of the note sheet, which may be taken from an ordinary
+timepiece) are the results of calculation, and may be made in the office
+by any clerk.
+
+FIGURE 4. -STOP WATCH WITH DECIMAL FACE
+[Transcriber's note -- omitted]
+
+As has been stated, the method of recording the stop watch observations
+depends upon the work which is being observed. If the operation consists
+of the same element repeated over and over, the time of each may be set
+down separately; or, if the element is very small, the total time of,
+say, ten may be entered as a fraction, with the time for all ten
+observations as the numerator, and the number of observations for the
+denominator.
+
+In the illustration given on the note sheet, Fig. 2, the operation
+consists of a series of elements. In such a case, the letters
+designating each elementary unit are entered under the columns "Op.,"
+the stop watch is thrown to zero, and started as the man commences to
+work. As each new division of the operation (that is, as each
+elementary unit or unit time) is begun, the time is recorded. During
+any special delay the watch may be stopped, and started again from the
+same point, although, as a rule, Mr. Thompson advocates allowing the
+watch to run continuously, and enters the time of such a stop,
+designating it for convenience by the letter "Y."
+
+In the case we are considering, two kinds of materials were handled sand
+and clay. The time of each of the unit times, except the "filling," is
+the same for both sand and clay; hence, if we have sufficient
+observations on either one of the materials, the only element of the
+other which requires to be timed is the loading. This illustrates one of
+the merits of the elementary system.
+
+The column "Av." is filled from the preceding column. The figures thus
+found are the actual net times of the different unit times. These unit
+times are averaged and entered in the "Time" column, on the lower half
+of the right-hand page, preceded, in the "No." column, by the number of
+observations which have been taken of each unit. These times, combined
+and compared with the gross times on the left-hand page, will determine
+the percentage lost in resting and other necessary delays. A convenient
+method for obtaining the time of an operation, like picking, in which
+the quantity is difficult to measure, is suggested by the records on the
+left-hand page.
+
+The percentage of the time taken in rest and other necessary delays,
+which is noted on the sheet as, in this case, about 27 per cent, is
+obtained by a comparison of the average net "time per barrow" on the
+right with the "time per barrow" on the left. The latter is the quotient
+of the total time shoveling and wheeling divided by the number of loads
+wheeled.
+
+It must be remembered that the example given is simply for illustration.
+To obtain accurate average times, for any item of work under specified
+conditions, it is necessary to take observations upon a number of men,
+each of whom is at work under conditions which are comparable. The total
+number of observations which should be taken of any one elementary unit
+depends upon its variableness, and also upon its frequency of occurrence
+in a day's work.
+
+An expert observer can, on many kinds of work, time two or three men at
+the same time with the same watch, or he can operate two or three
+watches--one for each man. A note sheet can contain only a comparatively
+few observations. It is not convenient to make it of larger size than
+the dimensions given, when a watch-book is to be used, although it is
+perfectly feasible to make the horizontal rulings 8 lines to the inch
+instead of 5 lines to the inch as on the sample sheet. There will have
+to be, in almost all cases, a large number of note sheets on the same
+subject. Some system must be arranged for collecting and tabulating
+these records. On Tables 2A and 2B (pages 160 and 161) is shown the form
+used for tabulating. The length should be either 17 or 22 inches. The
+height of the form is 11 inches. With these dimensions a form may be
+folded and filed with ordinary letter sheets (8 1/2 inches by 11
+inches). The ruling which has been found most convenient is for the
+vertical divisions 3 columns to 1 1/8 inches, while the horizontal lines
+are ruled 6 to the inch. The columns may, or may not, have printed
+headings.
+
+The data from the note sheet in Fig. 2 (page 151) is copied on to the
+table for illustration. The first columns of the table are descriptive.
+The rest of them are arranged so as to include all of the unit times,
+with any other data which are to be averaged or used when studying the
+results. At the extreme right of the sheet the gross times, including
+rest and necessary delay, are recorded and the percentages of rest are
+calculated.
+
+Formulae are convenient for combining the elements. For simplicity, in
+the example of barrow excavation, each of the unit times may be
+designated by the same letters used on the note sheet (Fig. 2) although
+in practice each element can best be designated .by the initial letters
+of the words describing it.
+
+Let
+
+a = time filling a barrow with any material.
+
+b = time preparing to wheel.
+
+c = time wheeling full barrow 100 feet.
+
+d = time dumping and turning.
+
+e = time returning 100 feet with empty barrow.
+
+f = time dropping barrow and starting to shovel.
+
+p = time loosening one cubic yard with the pick.
+
+P = percentage of a day required to rest and necessary delays.
+
+L = load of a barrow in cubic feet.
+
+B = time per cubic yard picking, loading, and wheeling any given kind of
+earth to any given distance when the wheeler loads his own barrow.
+
+[Transcriber's note -- formula  and Tables omitted]
+
+This general formula for barrow work can be simplified by choosing
+average values for the constants, and substituting numerals for the
+letters now representing them. Substituting the average values from the
+note sheet on Fig. 2 (page 151), our formula becomes:
+[Transcriber's note -- formula omitted]
+
+In classes of work where the percentage of rest varies with the
+different elements of an operation it is most convenient to correct all
+of the elementary times by the proper percentages before combining them.
+Sometimes after having constructed a general formula, it may be solved
+by setting down the substitute numerical values in a vertical column for
+direct addition.
+
+Table 3 (page 164) gives the times for throwing earth to different
+distances and different heights. It will be seen that for each special
+material the time for filling shovel remains the same regardless of the
+distance to which it is thrown. Each kind of material requires a
+different time for filling the shovel. The time throwing one shovelful,
+on the other hand, varies with the length of throw, but for any given
+distance it is the same for all of the earths. If the earth is of such a
+nature that it sticks to the shovel, this relation does not hold. For
+the elements of shoveling we have therefore:
+
+s = time filling shovel and straightening up ready to throw.
+
+t = time throwing one shovelful.
+
+w = time walking one foot with loaded shovel.
+
+w1 = time returning one foot with empty shovel.
+
+L = load of a shovel in cubic feet.
+
+P = percentage of a day required for rest and necessary delays.
+
+T = time for shoveling one cubic yard.
+
+Our formula, then, for handling any earth after it is loosened, is:
+[Transcriber's note -- omitted]
+
+Where the material is simply thrown without walking, the formula
+becomes:
+
+If weights are used instead of volumes:
+[Transcriber's note -- omitted]
+
+The writer has found the printed form shown on the insert, Fig. 5
+(opposite page 166), useful in studying unit times in a certain class of
+the hand work done in a machine shop. This blank is fastened to a thin
+board held in the left hand and resting on the left arm of the observer.
+A stop watch is inserted in a small compartment attached to the back of
+the board at a point a little above its center, the face of the watch
+being seen from the front of the board through a small flap cut partly
+loose from the observation blank. While the watch is operated by the
+fingers of the left hand, the right hand of the operator is at all times
+free to enter the time observations on the blank. A pencil sketch of the
+work to be observed is made in the blank space on the upper left-hand
+portion of the sheet. In using this blank, of course, all attempt at
+secrecy is abandoned.
+
+The mistake usually made by beginners is that of failing to note in
+sufficient detail the various conditions surrounding the job. It is not
+at first appreciated that the whole work of the time observer is useless
+if there is any doubt as to even one of these conditions. Such items,
+for instance, as the name of the man or men on the work, the number of
+helpers, and exact description of all of the implements used, even those
+which seem unimportant, such, for instance, as the diameter and length
+of bolts and the style of clamps used, the weight of the piece upon
+which work is being done, etc.
+
+It is also desirable that, as soon as practicable after taking a few
+complete sets of time observations, the operator should be given the
+opportunity of working up one or two sets at least by summing up the
+unit times and allowing the proper per cent of rest, etc., and putting
+them into practical use, either by comparing his results with the actual
+time of a job which is known to be done in fast time, or by setting a
+time which a workman is to live up to.
+
+The actual practical trial of the time student's work is most useful,
+both in teaching him the necessity of carefully noting the minutest
+details, and on the other hand convincing him of the practicability of
+the whole method, and in encouraging him in future work.
+
+In making time observations, absolutely nothing should be left to the
+memory of the student. Every item, even those which appear self-evident,
+should be accurately recorded. The writer, and the assistant who
+immediately followed him, both made the mistake of not putting the
+results of much of their time study into use soon enough, so that many
+times observations which extended over a period of months were thrown
+away, in most instances because of failure to note some apparently
+unimportant detail.
+
+It may be needless to state that when the results of time observations
+are first worked up, it will take far more time to pick out and add up
+the proper unit times, and allow the proper percentages of rest, etc.,
+than it originally did for the workman to do the job. This fact need not
+disturb the operator, however. It will be evident that the slow time
+made at the start is due to his lack of experience, and he must take it
+for granted that later many short-cuts can be found, and that a man with
+an average memory will be able with practice to carry all of the
+important time units in his head.
+
+No system of time study can be looked upon as a success unless it
+enables the time observer, after a reasonable amount of study, to
+predict with accuracy how long it should take a good man to do almost
+any job in the particular trade, or branch of a trade, to which the time
+student has been devoting himself. It is true that hardly any two jobs
+in a given trade are exactly the same and that if a time student were to
+follow the old method of studying and recording the whole time required
+to do the various jobs which came under his observation, without
+dividing them into their elements, he would make comparatively small
+progress in a lifetime, and at best would become a skilful guesser. It
+is, however, equally true that all of the work done in a given trade can
+be divided into a comparatively small number of elements or units, and
+that with proper implements arid methods it is comparatively easy for a
+skilled observer to determine the time required by a good man to do any
+one of these elementary units.
+
+Having carefully recorded the time for each of these elements, it is a
+simple matter to divide each job into its elementary units, and by
+adding their times together, to arrive accurately at the total time for
+the job. The elements of the art which at first appear most difficult to
+investigate are the percentages which should be allowed, under different
+conditions, for rest and for accidental or unavoidable delays. These
+elements can, however, be studied with about the same accuracy as the
+others.
+
+Perhaps the greatest difficulty rests upon the fact that no two men work
+at exactly the same speed. The writer has found it best to take his time
+observations on first-class men only, when they can be found; and these
+men should be timed when working at their best. Having obtained the best
+time of a first-class man, it is a simple matter to determine the
+percentage which an average man will fall short of this maximum.
+
+It is a good plan to pay a first-class man an extra price while his work
+is being timed. When work men once understand that the time study is
+being made to enable them to earn higher wages, the writer has found
+them quite ready to help instead of hindering him in his work. The
+division of a given job into its proper elementary units, before
+beginning the time study, calls for considerable skill and good
+judgment. If the job to be observed is one which will be repeated over
+and over again, or if it is one of a series of similar jobs which form
+an important part of the standard work of an establishment, or of the
+trade which is being studied, then it is best to divide the job into
+elements which are rudimentary. In some cases this subdivision should be
+carried to a point which seems at first glance almost absurd.
+
+For example, in the case of the study of the art of shoveling earths,
+referred to in Table 3, page 164, it will be seen that handling a
+shovelful of dirt is subdivided into, s = "Time filling shovel and
+straightening up ready to throw," and t = "Time throwing one shovelful."
+
+The first impression is that this minute subdivision of the work into
+elements, neither of which takes more than five or six seconds to
+perform, is little short of preposterous; yet if a rapid and thorough
+time study of the art of shoveling is to be made, this subdivision
+simplifies the work, and makes time study quicker and more thorough.
+
+The reasons for this are twofold:
+
+First. In the art of shoveling dirt, for instance, the study of fifty or
+sixty small elements, like those referred to above, will enable one to
+fix the exact time for many thousands of complete jobs of shoveling,
+constituting a very considerable proportion of the entire art.
+
+Second. The study of single small elements is simpler, quicker, and more
+certain to be successful than that of a large number of elements
+combined. The greater the length of time involved in a single item of
+time study, the greater will be the likelihood of interruptions or
+accidents, which will render the results obtained by the observer
+questionable or even useless.
+
+There is a considerable part of the work of most establishments that is
+not what may be called standard work, namely, that which is repeated
+many times. Such jobs as this can be divided for time study into groups,
+each of which contains several rudimentary elements. A division of this
+sort will be seen by referring to the data entered on face of note
+sheet, Fig. 2 (page 151).
+
+In this case, instead of observing, first, the "time to fill a shovel,"
+and then the time to "throw it into a wheelbarrow," etc., a number of
+these more rudimentary operations are grouped into the single operation
+of
+
+a = "Time filling a wheelbarrow with any material."
+
+This group of operations is thus studied as a whole.
+
+Another illustration of the degree of subdivision which is desirable
+will be found by referring to the inserts, Fig. 5 (opposite page 166).
+
+Where a general study is being made of the time required to do all kinds
+of hand work connected with and using machine tools, the items printed
+in detail should be timed singly.
+
+When some special job, not to be repeated many times, is to be studied,
+then several elementary items can be grouped together and studied as a
+whole, in such groups for example as:
+
+(a) Getting job ready to set.
+
+(b) Setting work.
+
+(c) Setting tool.
+
+(d) Extra hand work.
+
+(e) Removing work.
+
+And in some cases even these groups can be further condensed.
+
+An illustration of the time units which it is desirable to sum up and
+properly record and index for a certain kind of lathe work is given in
+Fig. 6.
+
+SIGNED TOTAL FIGURE 6. -INSTRUCTION CARD FOR LATHE WORK (not shown)
+
+The writer has found that when some jobs are divided into their proper
+elements, certain of these elementary operations are so very small in
+time that it is difficult, if not impossible, to obtain accurate
+readings on the watch. In such cases, where the work consists of
+recurring cycles of elementary operations, that is, where a series of
+elementary operations is repeated over and over again, it is possible to
+take sets of observations on two or more of the successive elementary
+operations which occur in regular order, and from the times thus
+obtained to calculate the time of each element. An example of this is
+the work of loading pig iron on to bogies. The elementary operations or
+elements consist of:
+
+(a) Picking up a pig.
+
+(b) Walking with it to the bogie.
+
+(c) Throwing or placing it on the bogie.
+
+(d) Returning to the pile of pigs.
+
+Here the length of time occupied in picking up the pig and throwing or
+placing it on the bogie is so small as to be difficult to time, but
+observations may be taken successively on the elements in sets of three.
+We may, in other words, take one set of observations upon the combined
+time of the three elements numbered 1, 2, 3; another set upon elements
+2, 3, 4; another set upon elements, 3, 4, 1, and still another upon the
+set 4,1, 2. By algebraic equations we may solve the values of each of
+the separate elements.
+
+If we take a cycle consisting of five (5) elementary operations, a, b,
+c, d, e, and let observations be taken on three of them at a time, we
+have the equations:
+
+[Transcriber's Note: omitted]
+
+The writer was surprised to find, however, that while in some cases
+these equations were readily solved, in others they were impossible of
+solution. My friend, Mr. Carl G. Barth, when the matter was referred to
+him, soon developed the fact that the number of elements of a cycle
+which may be observed together is subject to a mathematical law, which
+is expressed by him as follows:
+
+The number of successive elements observed together must be prime to the
+total number of elements in the cycle.
+
+Namely, the number of elements in any set must contain no factors; that
+is, must be divisible by no numbers which are contained in the total
+number of elements. The following table is, therefore, calculated by Mr.
+Barth showing how many operations may be observed together in various
+cases. The last column gives the number of observations in a set which
+will lead to the determination of the results with the minimum of labor.
+
+[Transcriber's note -- Table omitted]
+
+When time study is undertaken in a systematic way, it becomes possible
+to do greater justice in many ways both to employers and workmen than
+has been done in the past. For example, we all know that the first time
+that even a skilled workman does a job it takes him a longer time than
+is required after he is familiar with his work, and used to a particular
+sequence of operations. The practiced time student can not only figure
+out the time in which a piece of work should be done by a good man,
+after he has become familiar with this particular job through practice,
+but he should also be able to state how much more time would be required
+to do the same job when a good man goes at it for the first time; and
+this knowledge would make it possible to assign one time limit and price
+for new work, and a smaller time and price for the same job after being
+repeated, which is much more fair and just to both parties than the
+usual fixed price.
+
+As the writer has said several times, the difference between the best
+speed of a first-class man and the actual speed of the average man is
+very great. One of the most difficult pieces of work which must be faced
+by the man who is to set the daily tasks is to decide just how hard it
+is wise for him to make the task. Shall it be fixed for a first-class
+man, and if not, then at what point between the first-class and the
+average? One fact is clear, it should always be well above the
+performance of the average man, since men will invariably do better if a
+bonus is offered them than they have done without this incentive. The
+writer has, in almost all cases, solved this part of the problem by
+fixing a task which required a first-class man to do his best, and then
+offering a good round premium. When this high standard is set it takes
+longer to raise the men up to it. But it is surprising after all how
+rapidly they develop.
+
+The precise point between the average and the first-class, which is
+selected for the task, should depend largely upon the labor market in
+which the works is situated. If the works were in a fine labor market,
+such, for instance, as that of Philadelphia, there is no question that
+the highest standard should be aimed at. If, on the other hand, the shop
+required a good deal of skilled labor, and was situated in a small
+country town, it might be wise to aim rather lower. There is a great
+difference in the labor markets of even some of the adjoining states in
+this country, and in one instance, in which the writer was aiming at a
+high standard in organizing a works, he found it necessary to import
+almost all of his men from a neighboring state before meeting with
+success.
+
+Whether the bonus is given only when the work is done in the quickest
+time or at some point between this and the average time, in all cases
+the instruction card should state the best time in which the work can be
+done by a first-class man. There will then be no suspicion on the part
+of the men when a longer "bonus time" is allowed that the time student
+does not really know the possibilities of the case. For example, the
+instruction card might read:
+
+Proper time . . . . . 65 minutes
+
+Bonus given first time job is done. 108 minutes
+
+It is of the greatest importance that the man who has charge of
+assigning tasks should be perfectly straightforward in all of his
+dealings with the men. Neither in this nor in any other branch of the
+management should a man make any pretense of having more knowledge than
+he really possesses. He should impress the workmen with the fact that he
+is dead in earnest, and that he fully intends to know all about it some
+day; but he should make no claim to omniscience, and should always be
+ready to acknowledge and correct an error if he makes one. This
+combination of determination and frankness establishes a sound and
+healthy relation between the management and men.
+
+There is no class of work which cannot be profitably submitted to time
+study, by dividing it into its time elements, except such operations as
+take place in the head of the worker; and the writer has even seen a
+time study made of the speed of an average and first-class boy in
+solving problems in mathematics.
+
+Clerk work can well be submitted to time study, and a daily task
+assigned in work of this class which at first appears to be very
+miscellaneous in its character.
+
+One of the needs of modern management is that of literature on the
+subject of time study. The writer quotes as follows from his paper on "A
+Piece Rate System," written in 1895:
+
+"Practically the greatest need felt in an establishment wishing to start
+a rate-fixing department is the lack of data as to the proper rate of
+speed at which work should be done. There are hundreds of operations
+which are common to most large establishments, yet each concern studies
+the speed problem for itself, and days of labor are wasted in what
+should be settled once for all, and recorded in a form which is
+available to all manufacturers.
+
+"What is needed is a hand-book on the speed with which work can be done,
+similar to the elementary engineering handbooks. And the writer ventures
+to predict that such a book will before long be forthcoming. Such a book
+should describe the best method of making, recording, tabulating, and
+indexing time observations, since much time and effort are wasted by the
+adoption of inferior methods."
+
+Unfortunately this prediction has not yet been realized. The writer's
+chief object in inducing Mr. Thompson to undertake a scientific time
+study of the various building trades and to join him in a publication of
+this work was to demonstrate on a large scale not only the desirability
+of accurate time study, but the efficiency and superiority of the method
+of studying elementary units as outlined above. He trusts that his
+object may be realized and that the publication of this book may be
+followed by similar works on other trades and more particularly on the
+details of machine shop practice, in which he is especially interested.
+
+As a machine shop has been chosen to illustrate the application of such
+details of scientific management as time study, the planning department,
+functional foremanship, instruction cards, etc., the description would
+be far from complete without at least a brief reference to the methods
+employed in solving the time problem for machine tools.
+
+The study of this subject involved the solution of four important
+problems:
+
+First. The power required to cut different kinds of metals with tools of
+various shapes when using different depths of cut and coarseness of
+feed, and also the power required to feed the tool under varying
+conditions.
+
+Second. An investigation of the laws governing the cutting of metals
+with tools, chiefly with the object of determining the effect upon the
+best cutting speed of each of the following variables:
+
+
+(a) The quality of tool steel and treatment of tools (i.e., in heating,
+forging, and tempering them).
+
+(b) The shape of tool (i.e., the curve or line of the cutting edge, the
+lip angle, and clearance angle)
+
+(c) The duration of cut or the length of time the tool is required to
+last before being re-ground.
+
+(d) The quality or hardness of the metal being cut (as to its effect on
+cutting speed).
+
+(e) The depth of the cut.
+
+(f) The thickness of the feed or shaving
+
+(g) The effect on cutting speed of using water or other cooling medium
+on the tool.
+
+Third. The best methods of analyzing the driving and feeding power of
+machine tools and, after considering their limitations as to speeds and
+feeds, of deciding upon the proper counter-shaft or other general
+driving speeds.
+
+Fourth. After the study of the first, second, and third problems had
+resulted in the discovery of certain clearly defined laws, which were
+expressed by mathematical formulae, the last and most difficult task of
+all lay in finding a means for solving the entire problem which should
+be so practical and simple as to enable an ordinary mechanic to answer
+quickly and accurately for each machine in the shop the question, "What
+driving speed, feed, and depth of cut will in each particular case do
+the work in the quickest time?"
+
+In 1881, in the machine shop of the Midvale Steel Company, the writer
+began a systematic study of the laws involved in the first and second
+problems above referred to by devoting the entire time of a large
+vertical boring mill to this work, with special arrangements for varying
+the drive so as to obtain any desired speed. The needed uniformity of
+the metal was obtained by using large locomotive tires of known chemical
+composition, physical properties and hardness, weighing from 1,500 to
+2,000 pounds.
+
+For the greater part of the succeeding 22 years these experiments were
+carried on, first at Midvale and later in several other shops, under the
+general direction of the writer, by his friends and assistants, six
+machines having been at various times especially fitted up for this
+purpose.
+
+The exact determination of these laws and their reduction to formulae
+have proved a slow but most interesting problem; but by far the most
+difficult undertaking has been the development of the methods and
+finally the appliances (i.e., slide rules) for making practical use of
+these laws after they were discovered.
+
+In 1884 the writer succeeded in making a slow solution of this problem
+with the help of his friend, Mr. Geo. M. Sinclair, by indicating the
+values of these variables through curves and laying down one set of
+curves over another. Later my friend, Mr. H. L. Gantt, after devoting
+about 1 1/2 years exclusively to this work, obtained a much more rapid
+and simple solution. It was not, however, until 1900, in the works of
+the Bethlehem Steel Company, that Mr. Carl G. Barth, with the assistance
+of Mr. Gantt and a small amount of help from the writer, succeeded in
+developing a slide rule by means of which the entire problem can be
+accurately and quickly solved by any mechanic.
+
+The difficulty from a mathematical standpoint of obtaining a rapid and
+accurate solution of this problem will be appreciated when it is
+remembered that twelve independent variables enter into each problem,
+and that a change in any of these will affect the answer. The
+instruction card can be put to wide and varied use. It is to the art of
+management what the drawing is to engineering, and, like the latter,
+should vary in size and form according to the amount and variety of the
+information which it is to convey. In some cases it should consist of a
+pencil memorandum on a small piece of paper which will be sent directly
+to the man requiring the instructions, while in others it will be in the
+form of several pages of typewritten matter, properly varnished and
+mounted, and issued under the check or other record system, so that it
+can be used time after time. A description of an instruction card of
+this kind may be useful.
+
+After the writer had become convinced of the economy of standard methods
+and appliances, and the desirability of relieving the men as far as
+possible from the necessity of doing the planning, while master mechanic
+at Midvale, he tried to get his assistant to write a complete
+instruction card for overhauling and cleaning the boilers at regular
+periods, to be sure that the inspection was complete, and that while the
+work was thoroughly done, the boilers should be out of use as short a
+time as possible, and also to have the various elements of this work
+done on piece work instead of by the day. His assistant, not having
+undertaken work of this kind before, failed at it, and the writer was
+forced to do it himself. He did all of the work of chipping, cleaning,
+and overhauling a set of boilers and at the same time made a careful
+time study of each of the elements of the work. This time study showed
+that a great part of the time was lost owing to the constrained position
+of the workman. Thick pads were made to fasten to the elbows, knees, and
+hips; special tools and appliances were made for the various details of
+the work; a complete list of the tools and implements was entered on the
+instruction card, each tool being stamped with its own number for
+identification, and all were issued from the tool room in a tool box so
+as to keep them together and save time. A separate piece work price was
+fixed for each of the elements of the job and a thorough inspection of
+each part of the work secured as it was completed.
+
+The instruction card for this work filled several typewritten pages, and
+described in detail the order in which the operations should be done and
+the exact details of each man's work, with the number of each tool
+required, piece work prices, etc.
+
+The whole scheme was much laughed at when it first went into use, but
+the trouble taken was fully justified, for the work was better done than
+ever before, and it cost only eleven dollars to completely overhaul a
+set of 300 H.P. boilers by this method, while the average cost of doing
+the same work on day work without an instruction card was sixty-two
+dollars.
+
+Regarding the personal relations which should be maintained between
+employers and their men, the writer quotes the following paragraphs from
+a paper written in 1895. Additional experience has only served to
+confirm and strengthen these views; and although the greater part of
+this time, in his work of shop organization, has been devoted to the
+difficult and delicate task of inducing workmen to change their ways of
+doing things he has never been opposed by a strike.
+
+"There has never been a strike by men working under this system,
+although it has been applied at the Midvale Steel Works for the past
+ten years; and the steel business has proved during this period the
+most fruitful field for labor organizations and strikes. And this
+notwithstanding the fact that the Midvale Company has never prevented
+its men from joining any labor organization. All of the best men in the
+company saw clearly that the success of a labor organization meant the
+lowering of their wages in order that the inferior men might earn more,
+and, of course, could not be persuaded to join.
+
+"I attribute a great part of this success in avoiding strikes to the
+high wages which the best men were able to earn with the differential
+rates, and to the pleasant feeling fostered by this system; but this is
+by no means the whole cause. It has for years been the policy of that
+company to stimulate the personal ambition of every man in their employ
+by promoting them either in wages or position whenever they deserved it
+and the opportunity came.
+
+"A careful record has been kept of each man's good points as well as his
+shortcomings, and one of the principal duties of each foreman was to
+make this careful study of his men so that substantial justice could be
+done to each. When men throughout an establishment are paid varying
+rates of day-work wages according to their individual worth, some being
+above and some below the average, it cannot be for the interest of those
+receiving high pay to join a union with the cheap men.
+
+"No system of management, however good, should be applied in a wooden
+way. The proper personal relations should always be maintained between
+the employers and men; and even the prejudices of the workmen should be
+considered in dealing with them.
+
+"The employer who goes through his works with kid gloves on, and is
+never known to dirty his hands or clothes, and who either talks to his
+men in a condescending or patronizing way, or else not at all, has no
+chance whatever of ascertaining their real thoughts or feelings.
+
+"Above all is it desirable that men should be talked to on their own
+level by those who are over them. Each man should be encouraged to
+discuss any trouble which he may have, either in the works or outside,
+with those over him. Men would far rather even be blamed by their
+bosses, especially if the 'tearing out' has a touch of human nature and
+feeling in it, than to be passed by day after day without a word, and
+with no more notice than if they were part of the machinery.
+
+"The opportunity which each man should have of airing his mind freely,
+and having it out with his employers, is a safety-valve; and if the
+superintendents are reasonable men, and listen to and treat with respect
+what their men have to say, there is absolutely no reason for labor
+unions and strikes.
+
+"It is not the large charities (however generous they may be) that are
+needed or appreciated by workmen so much as small acts of personal
+kindness and sympathy, which establish a bond of friendly feeling
+between them and their employers.
+
+"The moral effect of this system on the men is marked. The feeling that
+substantial justice is being done them renders them on the whole much
+more manly, straightforward, and truthful. They work more cheerfully,
+and are more obliging to one another and their employers. They are not
+soured, as under the old system, by brooding over the injustice done
+them; and their spare minutes are not spent to the same extent in
+criticizing their employers."
+
+The writer has a profound respect for the working men of this country.
+He is proud to say that he has as many firm friends among them as among
+his other friends who were born in a different class, and he believes
+that quite as many men of fine character and ability are to be found
+among the former as in the latter. Being himself a college educated man,
+and having filled the various positions of foreman, master mechanic,
+chief draftsman, chief engineer, general superintendent, general
+manager, auditor, and head of the sales department, on the one hand, and
+on the other hand having been for several years a workman, as
+apprentice, laborer, machinist, and gang boss, his sympathies are
+equally divided between the two classes.
+
+He is firmly convinced that the best interests of workmen and their
+employers are the same; so that in his criticism of labor unions he
+feels that he is advocating the interests of both sides. The following
+paragraphs on this subject are quoted from the paper written in 1895 and
+above referred to:
+
+
+"The author is far from taking the view held by many manufacturers that
+labor unions are an almost unmitigated detriment to those who join them,
+as well as to employers and the general public.
+
+"The labor unions--particularly the trades unions of England--have
+rendered a great service, not only to their members, but to the world,
+in shortening the hours of labor and in modifying the hardships and
+improving the conditions of wage workers.
+
+"In the writer's judgment the system of treating with labor unions would
+seem to occupy a middle position among the various methods of adjusting
+the relations between employers and men.
+
+"When employers herd their men together in classes, pay all of each
+class the same wages, and offer none of them any inducements to work
+harder or do better than the average, the only remedy for the men lies
+in combination; and frequently the only possible answer to encroachments
+on the part of their employers is a strike.
+
+"This state of affairs is far from satisfactory to either employers or
+men, and the writer believes the system of regulating the wages and
+conditions of employment of whole classes of men by conference and
+agreement between the leaders of unions and manufacturers to be vastly
+inferior, both in its moral effect on the men and on the material
+interests of both parties, to the plan of stimulating each workman's
+ambition by paying him according to his individual worth, and without
+limiting him to the rate of work or pay of the average of his class."
+
+The amount of work which a man should do in a day, what constitutes
+proper pay for this work, and the maximum number of hours per day which
+a man should work, together form the most important elements which are
+discussed between workmen and their employers. The writer has attempted
+to show that these matters can be much better determined by the expert
+time student than by either the union or a board of directors, and he
+firmly believes that in the future scientific time study will establish
+standards which will be accepted as fair by both sides.
+
+
+There is no reason why labor unions should not be so constituted as to
+be a great help both to employers and men. Unfortunately, as they now
+exist they are in many, if not most, cases a hindrance to the prosperity
+of both.
+
+The chief reasons for this would seem to be a failure on the part of the
+workmen to understand the broad principles which affect their best
+interests as well as those of their employers. It is undoubtedly true,
+however, that employers as a whole are not much better informed nor more
+interested in this matter than their workmen.
+
+One of the unfortunate features of labor unions as they now exist is
+that the members look upon the dues which they pay to the union, and the
+time that they devote to it, as an investment which should bring them an
+annual return, and they feel that unless they succeed in getting either
+an increase in wages or shorter hours every year or so, the money which
+they pay into the union is wasted. The leaders of the unions realize
+this and, particularly if they are paid for their services, are apt to
+spend considerable of their time scaring up grievances whether they
+exist or not This naturally fosters antagonism instead of friendship
+between the two sides. There are, of course, marked exceptions to this
+rule; that of the Brotherhood of Locomotive Engineers being perhaps the
+most prominent.
+
+The most serious of the delusions and fallacies under which workmen, and
+particularly those in many of the unions, are suffering is that it is
+for their interest to limit the amount of work which a man should do in
+a day.
+
+There is no question that the greater the daily output of the average
+individual in a trade the greater will be the average wages earned in
+the trade, and that in the long run turning out a large amount of work
+each day will give them higher wages, steadier and more work, instead of
+throwing them out of work. The worst thing that a labor union can do for
+its members in the long run is to limit the amount of work which they
+allow each workman to do in a day. If their employers are in a
+competitive business, sooner or later those competitors whose workmen do
+not limit the output will take the trade away from them, and they will
+be thrown out of work. And in the meantime the small day's work which
+they have accustomed themselves to do demoralizes them, and instead of
+developing as men do when they use their strength and faculties to the
+utmost, and as men should do from year to year, they grow lazy, spend
+much of their time pitying themselves, and are less able to compete with
+other men. Forbidding their members to do more than a given amount of
+work in a day has been the greatest mistake made by the English trades
+unions. The whole of that country is suffering more or less from this
+error now. Their workmen are for this reason receiving lower wages than
+they might get, and in many cases the men, under the influence of this
+idea, have grown so slow that they would find it difficult to do a good
+day's work even if public opinion encouraged them in it.
+
+In forcing their members to work slowly they use certain cant phrases
+which sound most plausible until their real meaning is analyzed. They
+continually use the expression, "Workmen should not be asked to do more
+than a fair day's work," which sounds right and just until we come to
+see how it is applied. The absurdity of its usual application would be
+apparent if we were to apply it to animals. Suppose a contractor had in
+his stable a miscellaneous collection of draft animals, including small
+donkeys, ponies, light horses, carriage horses and fine dray horses, and
+a law were to be made that no animal in the stable should be allowed to
+do more than "a fair day's work" for a donkey. The injustice of such a
+law would be apparent to every one. The trades unions, almost without an
+exception, admit all of those in the trade to membership--providing they
+pay their dues. And the difference between the first-class men and the
+poor ones is quite as great as that between fine dray horses and
+donkeys. In the case of horses this difference is well known to every
+one; with men, however, it is not at all generally recognized. When a
+labor union, under the cloak of the expression "a fair day's work,"
+refuses to allow a first-class man to do any more work than a slow or
+inferior workman can do, its action is quite as absurd as limiting the
+work of a fine dray horse to that of a donkey would be.
+
+Promotion, high wages, and, in some cases, shorter hours of work are the
+legitimate ambitions of a workman, but any scheme which curtails the
+output should be recognized as a device for lowering wages in the long
+run.
+
+Any limit to the maximum wages which men are allowed to earn in a trade
+is equally injurious to their best interests. The "minimum wage" is the
+least harmful of the rules which are generally adopted by trades unions,
+though it frequently works an injustice to the better workmen. For
+example, the writer has been used to having his machinists earn all the
+way from $1.50 to seven and eight dollars per day, according to the
+individual worth of the men. Supposing a rule were made that no
+machinist should be paid less than $2.50 per day. It is evident that if
+an employer were forced to pay $2.50 per day to men who were only worth
+$1.50 or $1.75, in order to compete he would be obliged to lower the
+wages of those who in the past were getting more than $2.50, thus
+pulling down the better workers in order to raise up the poorer men. Men
+are not born equal, and any attempt to make them so is contrary to
+nature's laws and will fail.
+
+Some of the labor unions have succeeded in persuading the people in
+parts of this country that there is something sacred in the cause of
+union labor and that, in the interest of this cause, the union should
+receive moral support whether it is right in any particular case or not.
+
+Union labor is sacred just so long as its acts are fair and good, and it
+is damnable just as soon as its acts are bad. Its rights are precisely
+those of nonunion labor, neither greater nor less. The boycott, the use
+of force or intimidation, and the oppression of non-union workmen by
+labor unions are damnable; these acts of tyranny are thoroughly
+un-American and will not be tolerated by the American people.
+
+One of the most interesting and difficult problems connected with the
+art of management is how to persuade union men to do a full day's work
+if the union does not wish them to do it. I am glad of the opportunity
+of saying what I think on the matter, and of explaining somewhat in
+detail just how I should expect, in fact, how I have time after time
+induced union men to do a large day's work, quite as large as other men
+do.
+
+In dealing with union men certain general principles should never be
+lost sight of. These principles are the proper ones to apply to all men,
+but in dealing with union men their application becomes all the more
+imperative.
+
+First. One should be sure, beyond the smallest doubt, that what is
+demanded of the men is entirely just and can surely be accomplished.
+This certainty can only be reached by a minute and thorough time study.
+
+Second. Exact and detailed directions should be given to the workman
+telling him, not in a general way but specifying in every small
+particular, just what he is to do and how he is to do it.
+
+Third. It is of the utmost importance in starting to make a change that
+the energies of the management should be centered upon one single
+workman, and that no further attempt at improvement should be made until
+entire success has been secured in this case. Judgment should be used in
+selecting for a start work of such a character that the most clear cut
+and definite directions can be given regarding it, so that failure to
+carry out these directions will constitute direct disobedience of a
+single, straightforward order.
+
+Fourth. In case the workman fails to carry out the order the management
+should be prepared to demonstrate that the work called for can be done
+by having some one connected with the management actually do it in the
+time called for.
+
+The mistake which is usually made in dealing with union men, lies in
+giving an order which affects a number of workmen at the same time and
+in laying stress upon the increase in the output which is demanded
+instead of emphasizing one by one the details which the workman is to
+carry out in order to attain the desired result. In the first case a
+clear issue is raised: say that the man must turn out fifty per cent
+more pieces than he has in the past, and therefore it will be assumed by
+most people that he must work fifty per cent harder. In this issue the
+union is more than likely to have the sympathy of the general public,
+and they can logically take it up and fight upon it. If, however, the
+workman is given a series of plain, simple, and reasonable orders, and
+is offered a premium for carrying them out, the union will have a much
+more difficult task in defending the man who disobeys them. To
+illustrate: If we take the case of a complicated piece of machine work
+which is being done on a lathe or other machine tool, and the workman is
+called upon (under the old type of management) to increase his output by
+twenty-five or fifty per cent there is opened a field of argument in
+which the assertion of the man, backed by the union, that the task is
+impossible or too hard, will have quite as much weight as that of the
+management. If, however, the management begins by analyzing in detail
+just how each section of the work should be done and then writes out
+complete instructions specifying the tools to be used in succession, the
+cone step on which the driving belt is to run, the depth of cut and the
+feed to be used, the exact manner in which the work is to be set in the
+machine, etc., and if before starting to make any change they have
+trained in as functional foremen several men who are particularly expert
+and well informed in their specialties, as, for instance, a speed boss,
+gang boss, and inspector; if you then place for example a speed boss
+alongside of that workman, with an instruction card clearly written out,
+stating what both the speed boss and the man whom he is instructing are
+to do, and that card says you are to use such and such a tool, put your
+driving belt on this cone, and use this feed on your machine, and if you
+do so you will get out the work in such and such a time, I can hardly
+conceive of a case in which a union could prevent the boss from ordering
+the man to put his driving belt just where he said and using just the
+feed that he said, and in doing that the workman can hardly fail to get
+the work out on time. No union would dare to say to the management of a
+works, you shall not run the machine with the belt on this or that cone
+step. They do not come down specifically in that way; they say, "You
+shall not work so fast," but they do not say, "You shall not use such
+and such a tool, or run with such a feed or at such a speed." However
+much they might like to do it, they do not dare to interfere
+specifically in this way. Now, when your single man under the
+supervision of a speed boss, gang boss, etc., runs day after day at the
+given speed and feed, and gets work out in the time that the instruction
+card calls for, and when a premium is kept for him in the office for
+having done the work in the required time, you begin to have a moral
+suasion on that workman which is very powerful. At first he won't take
+the premium if it is contrary to the laws of his union, but as time goes
+on and it piles up and amounts to a big item, he will be apt to step
+into the office and ask for his premium, and before long your man will
+be a thorough convert to the new system. Now, after one man has been
+persuaded, by means of the four functional foremen, etc., that he will
+earn more money under the new system than under the laws of the union,
+you can then take the next man, and so convert one after another right
+through your shop, and as time goes on public opinion will swing around
+more and more rapidly your way.
+
+I have a profound respect for the workmen of the United States; they are
+in the main sensible men--not all of them, of course, but they are just
+as sensible as are those on the side of the management There are some
+fools among them; so there are among the men who manage industrial
+plants. They are in many respects misguided men, and they require a
+great deal of information that they have not got. So do most managers.
+
+All that most workmen need to make them do what is right is a series of
+proper object lessons. When they are convinced that a system is offered
+them which will yield them larger returns than the union provides for,
+they will promptly acquiesce. The necessary object lessons can best be
+given by centering the efforts of the management upon one spot. The
+mistake that ninety-nine men out of a hundred make is that they have
+attempted to influence a large body of men at once instead of taking one
+man at a time.
+
+Another important factor is the question of time. If any one expects
+large results in six months or a year in a very large works he is
+looking for the impossible. If any one expects to convert union men to a
+higher rate of production, coupled with high wages, in six months or a
+year, he is expecting next to an impossibility. But if he is patient
+enough to wait for two or three years, he can go among almost any set of
+workmen in the country and get results.
+
+Some method of disciplining the men is unfortunately a necessary element
+of all systems of management. It is important that a consistent,
+carefully considered plan should be adopted for this as for all other
+details of the art. No system of discipline is at all complete which is
+not sufficiently broad to cover the great variety in the character and
+disposition of the various men to be found in a shop.
+
+There is a large class of men who require really no discipline in the
+ordinary acceptance of the term; men who are so sensitive, conscientious
+and desirous of doing just what is right that a suggestion, a few words
+of explanation, or at most a brotherly admonition is all that they
+require. In all cases, therefore, one should begin with every new man by
+talking to him in the most friendly way, and this should be repeated
+several times over until it is evident that mild treatment does not
+produce the desired effect.
+
+Certain men are both thick-skinned and coarse-grained, and these
+individuals are apt to mistake a mild manner and a kindly way of saying
+things for timidity or weakness. With such men the severity both of
+words and manner should be gradually increased until either the desired
+result has been attained or the possibilities of the English language
+have been exhausted.
+
+Up to this point all systems of discipline should be alike. There will
+be found in all shops, however, a certain number of men with whom talk,
+either mild or severe, will have little or no effect, unless it produces
+the conviction that something more tangible and disagreeable will come
+next. The question is what this something shall be.
+
+Discharging the men is, of course, effective as far as that individual
+is concerned, and this is in all cases the last step; but it is
+desirable to have several remedies between talking and discharging more
+severe than the one and less drastic than the other.
+
+Usually one or more of the following expedients are adopted for this
+purpose:
+
+First. Lowering the man's wages.
+
+Second. Laying him off for a longer or shorter period of time.
+
+Third. Fining him.
+
+Fourth. Giving him a series of "bad marks," and when these sum up to
+more than a given number per week or month, applying one or the other of
+the first three remedies.
+
+The general objections to the first and second expedients is that for a
+large number of offenses they are too severe, so that the disciplinarian
+hesitates to apply them. The men find this out, and some of them will
+take advantage of this and keep much of the time close to the limit. In
+laying a man off, also, the employer is apt to suffer as much in many
+cases as the man, through having machinery lying idle or work delayed.
+The fourth remedy is also objectionable because some men will
+deliberately take close to their maximum of "bad marks."
+
+In the writer's experience, the fining system, if justly and properly
+applied, is more effective and much to be preferred to either of the
+others. He has applied this system of discipline in various works with
+uniform success over a long period of years, and so far as he knows,
+none of those who have tried it under his directions have abandoned it.
+
+The success of the fining system depends upon two elements:
+
+First. The impartiality, good judgment and justice with which it is
+applied.
+
+Second. Every cent of the fines imposed should in some form be returned
+to the workmen. If any part of the fines is retained by the company, it
+is next to impossible to keep the workmen from believing that at least a
+part of the motive in fining them is to make money out of them; and this
+thought works so much harm as to more than overbalance the good effects
+of the system. If, however, all of the fines are in some way promptly
+returned to the men, they recognize it as purely a system of discipline,
+and it is so direct, effective and uniformly just that the best men soon
+appreciate its value and approve of it quite as much as the company.
+
+In many cases the writer has first formed a mutual beneficial
+association among the employees, to which all of the men as well as the
+company contribute. An accident insurance association is much safer and
+less liable to be abused than a general sickness or life insurance
+association; so that, when practicable, an association of this sort
+should be formed and managed by the men. All of the fines can then be
+turned over each week to this association and so find their way directly
+back to the men. Like all other elements, the fining system should not
+be plunged into head first. It should be worked up to gradually and with
+judgment, choosing at first only the most flagrant cases for fining and
+those offenses which affect the welfare of some of the other workmen. It
+will not be properly and most effectively applied until small offenses
+as well as great receive their appropriate fine. The writer has fined
+men from one cent to as high as sixty dollars per fine. It is most
+important that the fines should be applied absolutely impartially to all
+employees, high and low. The writer has invariably fined himself just as
+he would the men under him for all offenses committed.
+
+The fine is best applied in the form of a request to contribute a
+certain amount to the mutual beneficial association, with the
+understanding that unless this request is complied with the man will be
+discharged.
+
+In certain cases the fining system may not produce the desired result,
+so that coupled with it as an additional means of disciplining the men
+should be the first and second expedients of "lowering wages" and
+"laying the men off for a longer or shorter time"
+
+The writer does not at all depreciate the value of the many
+semi-philanthropic and paternal aids and improvements, such as
+comfortable lavatories, eating rooms, lecture halls, and free lectures,
+night schools, kindergartens, baseball and athletic grounds, village
+improvement societies, and mutual beneficial associations, unless done
+for advertising purposes. This kind of so-called welfare work all tends
+to improve and elevate the workmen and make life better worth living.
+Viewed from the managers' standpoint they are valuable aids in making
+more intelligent and better workmen, and in promoting a kindly feeling
+among the men for their employers. They are, however, of distinctly
+secondary importance, and should never be allowed to engross the
+attention of the superintendent to the detriment of the more important
+and fundamental elements of management. They should come in all
+establishments, but they should come only after the great problem of
+work and wages has been permanently settled to the satisfaction of both
+parties. The solution of this problem will take more than the entire
+time of the management in the average case for several years.
+
+Mr. Patterson, of the National Cash Register Company, of Dayton, Ohio,
+has presented to the world a grand object lesson of the combination of
+many philanthropic schemes with, in many respects, a practical and
+efficient management. He stands out a pioneer in this work and an
+example of a kindhearted and truly successful man. Yet I feel that the
+recent strike in his works demonstrates all the more forcibly my
+contention that the establishment of the semi-philanthropic schemes
+should follow instead of preceding the solution of the wages question;
+unless, as is very rarely the case, there are brains, energy and money
+enough available in a company to establish both elements at the same
+time.
+
+Unfortunately there is no school of management. There is no single
+establishment where a relatively large part of the details of management
+can be seen, which represent the best of their kinds. The finest
+developments are for the most part isolated, and in many cases almost
+buried with the mass of rubbish which surrounds them.
+
+Among the many improvements for which the originators will probably
+never receive the credit which they deserve the following may be
+mentioned.
+
+The remarkable system for analyzing all of the work upon new machines as
+the drawings arrived from the drafting-room and of directing the
+movement and grouping of the various parts as they progressed through
+the shop, which was developed and used for several years by Mr. Wm. II.
+Thorne, of Wm. Sellers & Co., of Philadelphia, while the company was
+under the general management of Mr. J. Sellers Bancroft. Unfortunately
+the full benefit of this method was never realized owing to the lack of
+the other functional elements which should have accompanied it.
+
+And then the employment bureau which forms such an important element of
+the Western Electric Company in Chicago; the complete and effective
+system for managing the messenger boys introduced by Mr. Almon Emrie
+while superintendent of the Ingersoll Sargent Drill Company, of Easton,
+Pa.; the mnemonic system of order numbers invented by Mr. Oberlin Smith
+and amplified by Mr. Henry R. Towne, of The Yale & Towne Company, of
+Stamford, Conn.; and the system of inspection introduced by Mr. Chas. D.
+Rogers in the works of the American Screw Company, at Providence, R. I.
+and the many good points in the apprentice system developed by Mr.
+Vauclain, of the Baldwin Locomotive Works, of Philadelphia.
+
+The card system of shop returns invented and introduced as a complete
+system by Captain Henry Metcalfe, U. S. A., in the government shops of
+the Frankford Arsenal represents another such distinct advance in the
+art of management. The writer appreciates the difficulty of this
+undertaking as he was at the same time engaged in the slow evolution of
+a similar system in the Midvale Steel Works, which, however, was the
+result of a gradual development instead of a complete, well thought out
+invention as was that of Captain Metcalfe.
+
+The writer is indebted to most of these gentlemen and to many others,
+but most of all to the Midvale Steel Company, for elements of the system
+which he has described. The rapid and successful application of the
+general principles involved in any system will depend largely upon the
+adoption of those details which have been found in actual service to be
+most useful. There are many such elements which the writer feels should
+be described in minute detail. It would, however, be improper to burden
+this record with matters of such comparatively small importance.
+
+
+
+
+
+
+End of Project Gutenberg's Shop Management, by Frederick Winslow Taylor
+
+*** END OF THE PROJECT GUTENBERG EBOOK SHOP MANAGEMENT ***
+
+This file should be named 6464.txt or 6464.zip
+
+Transcribed by Charles E. Nichols
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