Engineering has long been conceded a place as one of the modern arts, and has become a well-defined science, with a large and growing literature of i… - Henry R. Towne

To insure the best results, the organization of productive labor must be directed and controlled by persons having not only good executive ability, and possessing the practical familiarity of a mechanic or engineer with the goods produced and the processes employed, but having also, and equally, a practical knowledge of how to observe, record, analyze and compare essential facts in relation to wages, supplies, expense accounts, and all else that enters into or affects the economy of production and the cost of the product. There are many good mechanical engineers; — there are also many good " businessmen ;"— but the two are rarely combined in one person. But this combination of qualities, together with at least some skill as an accountant, either in one person or more, is essential to the successful management of industrial works, and has its highest effectiveness if united in one person, who is thus qualified to supervise, either personally or through assistants, the operations of all departments of a business, and to subordinate each to the harmonious development of the whole.

Among the names of those who have led the great advance of the industrial arts during the past thirty years, that of Frederick Winslow Taylor will hold an increasingly high place. Others have led in electrical development, in the steel industry, in industrial chemistry, in railroad equipment, in the textile arts, and in many other fields, but he has been the creator of a new science, which underlies and will benefit all of these others by greatly increasing their efficiency and augmenting their productivity. In addition, he has literally forged a new tool for the metal trades, which has doubled, or even trebled, the productive capacity of nearly all metal-cutting machines. Either achievement would entitle him to high rank among the notable men of his day; — the two combined give him an assured place among the world's leaders in the industrial arts.

Webster defines profit as excess of value over cost, and gain as that which is obtained as an advantage. I have availed of this well-expressed though delicate distinction between the two terms, to coin a name for the system herein described, whereby to differentiate it from profit-sharing as ordinarily understood and practised. The right solution of this problem will manifestly consist in allotting to each member of the organization an interest in that portion of the profit fund which is or may be affected by his individual efforts or skill, and in protecting this interest against diminution resulting from the errors of others or other extraneous causes not under his control. Such a solution, while not simple, is attainable under many circumstances, and attainable by methods which experience has shown to be both practical and successful.