Increasing Human Efficiency in Business Part 10

To the average man with a family, the "steady job" at fair wages is the first consideration. It appeals more strongly to him than intermittent employment at a much higher rate; while the younger, restless, and less dependable man, both skilled and unskilled, gravitates to the shop where he can command a premium for a little while. Just as managers are always looking for the steady worker, nearly all agree in a.s.suring their employees that faithful and efficient service will be rewarded with continuous employment.

To carry out this policy is sometimes difficult in businesses where demand is seasonal and where a large part of the product must be made to order. Nevertheless, the manager who adjusts his production program to cover the entire year has the choice of the best workers even when other factories offer higher rates. Likewise, the employer who sacrifices his profit in bad years to "take care of his men" and hold his organization together recovers his losses when the revival comes.

So deeply rooted is this desire for a "steady job" and so generally recognized as an essential of the labor problem that several large industries have developed "side lines" to which they can turn their organization during their slack seasons; while others in periods of depression pile up huge stocks of standard products, making heavy investments of capital, for the primary purpose of keeping their men employed.

How such a policy reacts on the wage question, and hence on the efficiency of employees, is shown by an instance which lately fell under

my notice. By a long and persistent campaign of education and demonstration, a small "quality"

house forced a rival ten times as large to adopt the careful processes on which this quality depended. Adopting the small man's methods, the compet.i.tor, instead of training its own operatives to the new standards, sought to hire the other man's skilled workers. The premium offered was a thirty per cent advance.

It was refused, however. The tempted mechanics, a.n.a.lyzing the rival's proposal, hit on the disloyalty contemplated towards its own employees. They were to be discharged or transferred to other departments to make room for the new men.

Measuring this cold-blooded policy against the consideration, the unfailing effort of their old employer to "take care of them" in bad seasons, the workers decided to stick to the smaller company and refuse the advance.

_Next to continuous employment, among methods of increasing the value of wages, is the policy of making promotions from the ranks_.

This practice seems to be commonly ac-

cepted as fruitful, although many firms believe it impossible of application in filling some of the higher as well as some of the more technical positions. Where the system is applicable, it acts as a powerful stimulus to the men by adding to their present wages the promise or possibility of better positions and higher pay in the future. It gives a.s.surance of promotion for faithful service much greater than in houses which fill the upper positions from outside sources on the a.s.sumption that they thus get "new blood" into the business.

The men secured from outside may be more skilled or more productive of immediate results than any available in the house organization.

By their importation, however, the wages of all the men aspiring to the position have been cheapened. Nor does the evil stop there.

_The a.s.sumption is naturally drawn that the same practice is likely to be followed in filling other vacancies. The stimulus to initiative and activity is thus weakened for men in every grade and their wages are shrunk below par_.

The importance which some successful employers attach to this principle of promotion from the ranks is well ill.u.s.trated by an incident which recently occurred in a large manufacturing establishment organized on a one-man basis. During the president's absence it was decided to open up a new zone of trade for a new product. No one in the organization knew the product and the field, so a new man was put in charge. The work progressed surprisingly well; the enterprise was in every way successful.

When the real head returned, he called his managers together and told them that the new man must be removed and the most deserving man in the regular organization appointed in his place. He was met with the protest that no employee was capable of taking up the work and reminded that the new man had already achieved great success. The president answered that he was willing to lose money in the department for the first year rather than cheapen and disorganize the service by taking away the certainty of promotion and by re-

moving the incentive to study and self-development which had increased the efficiency of every ambitious employee.

Innumerable examples of the same principle in promotions could be gleaned from the records of some of the oldest and most progressive houses in the country. In one establishment visited, the quality of whose wares is strenuously guarded, it was discovered that the chemist and metallurgist in charge of the factory laboratory had been lifted out of one of the departments and supplied with the money to take a specialized course in physics, chemistry, and metallurgy. The advertising manager, the factory engineer, and two or three of the foremen had been given leaves of absence to study and fit themselves for the positions to which their talents and inclinations drew them. Even among the workmen there was a fixed basis for advancement towards the better jobs and the higher rates, dependent on satisfactory service and output.

To these major considerations in increasing the worth of wages, those companies which

have given the longest attention to the problem add many other inducements.

_An efficient and contented employee has a positive money value to any employer. To hold him and keep him efficient, his personal comfort and needs should be considered in every way not detrimental to the company's interests_.

As nearly as possible, the ideal in factory location and construction is approached. Some industries have removed bodily to country towns, less for the sake of a cheap site than for the purpose of establishing themselves where housing conditions for workers were good, rents low, the cost of living cheaper, and other factors tending to _*add value_ to every dollar paid in wages were present. Direct appeal was made to the intelligence of employees, whose health is part of their capital, by making and keeping working conditions as healthful and sanitary, as little taxing on eyesight and bodily vigor as circ.u.mstances and judicious investment of capital allowed. Scores of towns have been built outright, to benefit employees.

In line with this policy are the systems of benefit insurance for accident and sickness maintained and partly supported by many companies; the pension systems which have been adopted within the last few years by some of the greatest and most progressive companies in America; the free medical service, both in case of factory accidents and sickness at home, which other firms provide for employees; and various other activities contributing to the welfare of workers, both during working hours and afterwards.

Employers are coming more and more to see that this is the case and to devote both thought and money to the elimination of conditions which cut wages below par.

_Whatever reduces hazard, discomfort, loss of time, uncertainty, or the cost of living for workers adds value to their wages and is a means of influencing their att.i.tude towards the company_.

Some employers are continually exercised to keep the wages of their men from falling below par. Others are equally solicitous that their men may regard their wages as above

par. This cla.s.sification is a real one and was made plain by some of the interviews referred to above. Thus in answer to the question, "What special method do you employ to make men satisfied or pleased with their wages?"

one employer immediately put his own interpretation on the question. To him it meant, "What method do you employ to keep your men from being _*dissatisfied_ with their wages?"

His answer was: "By paying them somewhere near what they ask or expect. If we don't," he added, "they go out on strike and we have to compromise."

The majority of successful employers have advanced beyond this negative, defensive att.i.tude and take a positive and aggressive position in dealing with the problem.

_Instead of a.s.suming their work accomplished when the men are not dissatisfied or rebellious, they do not rest until every dollar paid out in wages is above par in its influence upon efficiency_.

Thus in innumerable ways the progressive employer increases the value of all wages he

pays by making them appeal to the reason and to the instincts of workers in a way un- dreamed of by less enlightened men. The purpose of wages is to produce a certain psychological effect and to promote the most favorable att.i.tude on the part of the worker.

The methods of increasing the purchasing power of money thus spent is one of the most interesting and yet complex problems which the business man has to face.

This chapter shows the psychological ground for the following statements:--

Employees differ in their response to piecework rates and to salaries. Some respond more satisfactorily to one and some to the other.

When the development of men for better positions is of prime importance, the piecework system is not to be adopted. If the quant.i.ty of work per unit of wage is of greatest importance, then some form of wage other than fixed salary should be used.

An employee should not be dismissed as hopelessly lazy till he has shown this att.i.tude

in more than one department or has failed to respond to different forms of stimulation.

Changes in wages may often be placed under the authority of some person or committee other than the immediate superiors of the employees involved. This authority may be vested in the direct representatives of the executives or in such a committee as would be formed by representatives of the executives and also employees from the different departments of the establishment.

_Payment of wages, so far as possible, should be made to appeal to the instincts for social distinction and for acquisition as well as to the instinct for self-preservation_.

Wages should never be reduced without a tactful and sincere attempt to convince the men of the necessity of such an act.

Increase in wages may well be made a personal matter. Some firms, however, are most successful with a mechanical wage system in which employees know exactly the conditions necessary for an increase in wages.

All work should be thoroughly supervised

and inspected so that employees know that good service will be recognized and rewarded.

The policy of filling all positions from the ranks seems growing in favor, since it gives certain hope for advancement and hence greater satisfaction with the present wage.

The wage may well include a tacit insurance for the future. Employees should be a.s.sured that so long as they remain faithful to the firm, their work and pay will continue, and that in accident or old age they will be provided for. Accepted thus, the wage secures increased service.

CHAPTER VII

PLEASURE

AS A MEANS OF INCREASING HUMAN EFFICIENCY

TO prevent the usual "summer slump"

in output, the manager of a factory employing a hundred or more sewing girls on piecework tried various methods.

He began with closer individual supervision by the forewomen. He set up a bulletin board and posted daily the names of the five highest operators. He added small cash prizes weekly. He adopted a modified bonus system framed so as not to interfere with the established average of winter tasks. With each his success was only partial. Ten or a dozen of the more energetic girls responded to the stimulus; on the majority the effect was slight.

The problem was serious. June, July, and August comprised the season when his prod-

ucts were at a premium, when future orders were frequently lost because partial deliveries could not be made immediately. Studying the question, he noted specifically, what he already knew, that the output dropped as the temperature rose. A cool day sandwiched into a week of hot weather frequently equaled the best winter records. This fact, coupled with the observation that the spirit of his working force seemed to change with the change of temperature from warm to cold, helped him to arrive at the right solution.

He made the discovery sitting in the draught of an electric fan. He looked up, made a mental note; and next morning he moved his office "comforter" out to the head of one file of machines. The draught tangled the goods under the seamstresses' hands at times, but the half dozen girls within range showed a decided increase in production over the day before and over operators at other tables.

He had found his remedy for the summer slump. Within a week he had installed a system of large overhead fans and an exhaust

blower and saw his production figures mount to the winter's best average. From careless, indifferent workers, on edge at trifles and difficult to hold, his force developed steadiness and efficiency. Not only was the output increased twenty per cent over previous summers, but the proportion of spoiled work was considerably reduced.

One of the women who had been a subject of the first day's experiment struck close to the reason of her greater efficiency in her off-hand answer to his inquiry.

"It was a pleasure to work to-day. It was so comfortable after yesterday you just forgot the other girls, forgot you wanted to rest, forgot everything but the seams you were running and the fact that it was a big day.

I'm not near so tired as usual either."

_A successful day is likely to be a restful one, an unsuccessful day an exhausting one. The man who is greatly interested in his work and who finds delight in overcoming the difficulties of his calling is not likely to become so tired as the man for whom the work is a burden_.