American mechanical engineer (1856–1915)
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In order to have any hope of obtaining the initiative of his workmen the manager must give some special incentive to his men beyond that which is given to the average of the trade. This incentive can be given in several different ways, as, for example, the hope of rapid promotion or advancement; higher wages, either in the form of generous piecework prices or of a premium or bonus of some kind for good and rapid work; shorter hours of labor; better surroundings and working conditions than are ordinarily given, etc., and, above all, this special incentive should be accompanied by that personal consideration for, and friendly contact with, his workmen which comes only from a genuine and kindly interest in the welfare of those under him.
I ordinarily begin with a description of the pig-iron handler. For some reason, I don’t know exactly why, this illustration has been talked about a great deal, so much, in fact, that some people seem to think that the whole of scientific management consists in handling pig-iron. The only reason that I ever gave this illustration, however, was that pig-iron handling is the simplest kind of human effort; I know of nothing that is quite so simple as handling pig-iron. A man simply stoops down and with his hands picks up a piece of iron, and then walks a short distance and drops it on the ground. Now, it doesn’t look as if there was very much room for the development of a science; it doesn’t seem as if there was much room here for the scientific selection of the man nor for his progressive training, nor for cooperation between the two sides; but, I can say, without the slightest hesitation, that the science of handing pig-iron is so great that the man who is fit to handle pig-iron as his daily work cannot possibly understand the science; the man who is physically able to handle pig-iron and is sufficiently phlegmatic and stupid to choose this for his occupation is rarely able to comprehend the science of handling pig-iron; and this in ability of the man who is fit to do the work to understand the science of doing his work becomes more and more evident as the work becomes more complicated, all the way up the scale. I assert, without the slightest hesitation, that the high-class mechanic has a far smaller chance of ever thoroughly understanding the science of his work than the pig-iron handler has of understanding the science of his work, and I am going to try and prove to your satisfaction, gentlemen, that the man who is fit to work at any particular trade is unable to understand the science of that trade without the kindly help and cooperation of men of a totally different type of education, men whose education is not necessarily higher but a different type from his own.
In concluding let me say that we are now but on the threshold of the coming era of true cooperation. The time is fast going by for the great personal or individual achievement of any one man standing alone and without the help of those around him. And the time is coming when all great things will be done by the cooperation of many men in which each man performs that function for which he is best suited, each man preserves his individuality and is supreme in his particular function, and each man at the same time loses none of his originality and proper personal initiative, and yet is controlled by and must work harmoniously with many other men.
You gentlemen may laugh, but that is true, all right; it sounds ridiculous, I know, but it is fact. Now if the problem were put up to any of you man to develop science of shoveling as it was put up to us, that is, to a group of men who had deliberately set out to develop the science of all kinds of all laboring work, where do you think you would begin? When you started to study the science of shoveling I make the assertion that you would be within two days – just as we were in two days –well on the way toward development of the science of shoveling. At least you would outlined in your minds those elements which required careful, scientific study in order to understand science of shoveling. I do not want to go into all of the details of shoveling, but I will give you some of the elements, one or two of the most important elements of the science of shoveling; that is, the elements that reach further and have more serious consequences than any other. Probably the most important element in the science of shoveling is this: There must be some shovel load at which a first-class shoveler will do his biggest day’s work. What is that load? To illustrate: when we went to the Bethlehem Steel Works and observed the shoveler in the yard of that company, we found that each of the good shovelers in that yard owned his own shovel; they preferred to buy their own shovels rather than to have the company furnish them. There was a larger tonnage of ore shoveled in that woks than of any other material and rice coal came next in tonnage. We would see a first-class shoveler go from shoveling rice coal with a load of 3.5 ponds to the shovel to handling ore from the Massaba Range, with 38 pounds to the shove Now, is 3.5 pounds the proper shovel load or is the 38 pounds the proper load? They cannot both be right. Under scientific management the answer to this question is not a matter of anyone’s opinion; it is a question for accurate, careful, scientific investigation.
What I want to try to prove to you and make clear to you is that the principles of scientific management when properly applied, and when a sufficient amount of time has been given to make them really effective, must in all cases produce far large and better results, both for the employer and the employees, than can possibly be obtained under even this very rare type of management which I have been outlining, namely, the management of ‘initiative and incentive’, in which those on the management’s side deliberately give a very large incentive to their workmen, and in return the workmen respond by working to the very best of their ability at all times in the interest of their employers. I want to show you that scientific management is even far better than this rare type of management.
I have read with very great interest Mr. Metcalfe's paper, as we at the Midvale Steel Co. have had the experience, during the past ten years, of organizing a system very similar to that of Mr. Metcalfe. The chief idea in our system, as in his, is, that the authority for doing all kinds of work should proceed from one central office to the various departments, and that there proper records should be kept of the work and reports made daily to the central office, so that the superintending department should be kept thoroughly informed as to what is taking place throughout the works, and at the same time no work could be done in the works without proper authority. The details of the system have been very largely modified as time went on, and a consecutive plan, such as Mr. Metcalfe proposed, would have been of great assistance to us in carrying out our system. There are certain points, however, in Mr. Metcalfe's plan, which I think our experience shows to be somewhat objectionable. He issues to each of the men a book, something like a check-book, containing sheets which they tear out, and return to the office after stating on them the work which they have done. We have found that any record which passes through the average workman's hands, and which he holds for any length of time, is apt either to be soiled or torn. We have, therefore, adopted the system of having our orders sent from the central office to the small offices in the various departments of the works, in each of which there is a clerk who takes charge of all orders received from, and records returned to, the central office, as well as of all records kept in the department.
Scientific management... has for its very foundation the firm conviction that the true interests of the two are one and the same; that prosperity for the employer cannot exist through a long term of years unless it is accompanied by prosperity for the employe, and vice versa; and that it is possible to give the workman what he most wants high wages and the employer what he wants a low labor cost for his manufactures.
Perhaps the most prominent single element in modern scientific management is the task idea. The work of every workman is fully planned out by the management at least one day in advance, and each man receives in most cases complete written instructions, describing in detail the task which he is to accomplish, as well as the means to be used in doing the work. And the work planned in advance in this way constitutes a task which is to be solved, as explained above, not by the workman alone, but in almost all cases by the joint effort of the workman and the management. This task specifies not only what is to be done but how it is to be done and the exact time allowed for doing it.
The labor should include rest breaks so that the worker has time to recover from fatigue. Now one of the very first requirements for a man who is fit to handle pig iron as a regular occupation is that he shall be so stupid and so phlegmatic that he more nearly resembles in his mental make-up the ox than any other type. The man who is mentally alert and intelligent is for this very reason entirely unsuited to what would, for him, be the grinding monotony of work of this character. Therefore the workman who is best suited to handling pig iron is unable to understand the real science of doing this class of work.
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The differential rate system of piece-work consists briefly in offering two different rates for the same job: a high price per piece, in case the work is finished in the shortest time possible and in perfect condition, and a low price, if it takes a longer time to do the job, or if there are any imperfections in the work. (The high rate should be such that the workman can earn more per day than is usually paid in similar establishments.) This is directly the opposite of the ordinary plan of piece-work, in which the wages of the workmen are reduced when they increase their productivity.