Work Wages And Profits

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He thus has an incentive to do as much work as possible. If the workman fails to perform the task within the time limit he gets his day rate. The time allowed plus the bonus is the equivalent of a piece-rate ; hence we have piece work for the skilled and day work for the unskilled.
One other feature of this work at Bethle- hem had a most important effect on the re- sult — ^namely, that in addition to the bonus paid the foreman for each man under him TASK WOKK WITH A BONUS 115 who made bonus, a
...further bonus was paid if all made bonus. For instance, a foreman having ten men under him would get 10 cents each, or 90 cents total, if nine of his men made bonus ; but 15 cents each, or $1.50 total, if all ten made bonus. The additional 60 cents for bringing the inferior workmen up to the standard made him devote his ener- gies to those men who most needed them.
This is the first recorded attempt to make it to the financial interest of the foreman to teach the individual worker, and the import- ance of it cannot be over-estimated, for it changes the foreman from a driver of his men to their friend and helper.


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