working conditions made it possible for them to really work steadily instead of pretending to do so. And it is only after this stage in the reorganization is reached, when the girls have been properly selected and on the one hand such precautions have been taken as to guard against the possibility of over-driving them, while, on the other hand, the temptation to slight their work has been removed and the most favorable working conditions have been established, that the final step should be taken which insures them what they most want, namely, high wages, and the employers what they most want, namely, the maximum output and best quality of work,—which means a low labor cost.
This step is to give each girl each day a carefully measured task which demands a full day's work from a competent operative, and also to give her a large premium or bonus whenever she accomplishes this task.
This was done in this case through establishing what is known as differential rate piece work.[1] Under this system the pay of each girl was increased in proportion to the quantity of her output and also still more in proportion to the accuracy of her work.
As will be shown later, the differential rate (the lots inspected by the over-inspectors forming the basis for the differential) resulted in a large gain in the quantity of work done and at the same time in a marked improvement in the quality.
Before they finally worked to the best advantage
- ↑ See paper read before the American Society of Mechanical Engineers, by Fred. W. Taylor, Vol. XVI, p. 856, entitled "Piece Rate System."