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.
American mechanical engineer (1856–1915)
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, 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.
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 is known to few, and is fully realized only by those who have made a thorough and scientific study of the possibilities of men.
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 remainder of the art may be left in the background.
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.
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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.
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.