14S 
FOURTEENTH REPORT. 
ment and the men” is impossible under such conditions. Efficiency 
engineering can only hope to succeed, in the long run, in energizing 
workers by utilizing the collective bargain. And accepting the col- 
lective bargain means the partial admission of the representatives of the 
workers into the councils of the employers. It is a tentative step away 
from autocracy in business management. Collective bargaining and the 
admission of the workers into the councils of the management is one of 
the essentials of close cooperation between the management and the em- 
ployees. But the leaders in the movement have not given this funda- 
mental fact definite recognition. 
Successful scientific management — management which possesses the 
qualities demanded by its advocates — must necessarily cast aside the old 
incentives such as coercion, the constant nagging and prodding of the 
foreman; but, furthermore, it must be so directed that the workers will 
be convinced that it is to their interests to accept the planning-room’s 
methods and program, and to follow the system outlined by the experts 
in charge of the work. But, if the past otters any useful lessons for the 
present, we are obliged, in my judgment, to conclude that the workers 
must unite upon the industrial and the political field in order to derive 
any considerable share of the benefits of efficiency engineering. With- 
out united and aggressive action, the workers will be shorn of the major 
portion of the direct benefits of efficiency engineering. Mutual respect 
and cooperation between employers and employees are the fruits of 
equality in the strength and coherence of their respective organizations; 
and, indeed, only under such conditions can scientific management 
achieve its maximum of efficiency. And, it may be quite confidently 
asserted, that if under our present industrial order this kind of scien- 
tific management or of efficiency engineering cannot thrive, then is that 
order doomed to be displaced by socialism or some other form of indus- 
trial democracy. 
In conclusion, it may be pointed out that the success of collective 
bargaining which has been asserted to be an essential element in success- 
ful efficiency engineering, in turn depends upon the solution of this 
basic problem: Wliat is a fair wage? Or, more specifically, the ques- 
tion may be formulated in the following manner: What is a fair wage 
in an epoch when competition is being displaced as an effective force 
in the industrial world? Or, we may even go one step further: Is there 
a concept of a fair wage which can be made acceptable to both employers 
and employees? Concretely and specifically, the question may be stated 
after this fashion : Can a scientific basis be found for the determination 
of a satisfactory time base and a satisfactory premium rate for the vari- 
ous progressive wage systems which are being introduced by efficiency 
engineers? And, lastly, it may not be irrelevant to inquire: Can scien- 
tific management reach a high level of efficiency while approximately 
one-half of the adult wage earners of the nation are receiving not more 
than $500 per year? Students of workingmen’s budgets seem to agree 
that in order to support a normal family in a decent manner an income 
of $750 to $000 per year is required. 
In brief, these are the conclusions reached: (1) Up to date, efficiency 
