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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.
Frederick Winslow Taylor (March 20, 1856 – March 21, 1915) was an American mechanical engineer, one of the first management consultants, and is regarded as the father of scientific management.
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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.
In the past the man has been first; in the future the system must be first. This in no sense, however, implies that great men are not needed. On the contrary, the first object of any good system must be that of developing first-class men; and under systematic management the best man rises to the top more certainly and more rapidly than ever before.
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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.