10 



workers who reach or exceed the standard task, and in this the system 

 resembles straight piece-work. In the second place, the guaranteed 

 day rate is illusory, in that what is guaranteed is not a real day rate 

 at all, but a rate lower than that of the worker who reaches, but does 

 not exceed, the standard output. In fact, the system only differs 

 from straight piece-work with a guaranteed day rate in one respect, 

 that it does not guarantee a real day rate, but only a fictitious rate. 

 In this respect it reaches by a crooked road a similar result to that 

 which has been reached by some of the arbitration tribunals under the 

 Munition Acts during the war, by guaranteeing to the piece-worker 

 only a fictitious day rate lower than that of the time-worker. 



The method of payment associated with the name of Harrington 

 Emerson is far more complicated than that of either Gantt or Taylor. 

 The Emerson system also sets a standard task and guarantees a time- 

 rate irrespective of output. Its distinctive character lies in the detailed 

 graduation of the efficiency bonus by which it rewards greater output. 

 Under this system every range of output is graded as a degree of 

 efficiency. The standard output as determined by time-study is treated 

 as 100 per cent, efficiency, and every lesser output is graded as a smaller 

 percentage of efficiency. A time-rate (say lOd.) is fixed, and this is 

 guaranteed in all cases. At a fixed percentage of the standard efficiency 

 (say 61 per cent.) a bonus is granted, and this bonus increases in 

 geometrical progression as the worker approaches the standard efficiency, 

 after which it proceeds by arithmetical progression. A table will serve 

 to make this clear. Suppose the hourly rate guaranteed to be 10d., 

 and the standard task five ' pieces ' per hour, the table will then read : 



PERCENTAGE OF BONUS EARNINGS PRICE 



STANDARD EFFICIENCY. PER CENT. PER HOUR. PER PIECE. 



60 10d. 3.3d. 



67 \ 10.05d. 3d. 



73 1 lO.ld. 2.8d. 



76 2 10.2d. 2.6d. 



79 3 10.3d. 2.6d. 



82 4 10.4d. 2.5d. 



85 5 10.5d. 2.47d. 



90 10 lid. 2.44d. 



95 15 11.5d. 2.42d. 



100 20 Is. 2.40d. 



101 21 Is. O.ld. 2.39d. 

 105 25 Is. 0.5d. 2.38d. 

 110 30 Is. Id. 2.36d. 



It is clearly shown by this table that, under the Emerson system, 

 the piece-rate slowly falls as the output increases. A time-rate is 

 guaranteed ; but, as in the Gantt system, this is a fictitious time-rate 

 considerably below the rate paid for the standard output. 



Last, but not least, comes the premium bonus system, which, alone 

 among efficiency methods of payment, has a considerable hold in this 



