photographs reproduced in the house bulletin. This honor and publicity was the chief reward received by the great majority of contestants, and was adequate. Minor prizes were offered on conditions, allowing a large number to qualify, and tempting virtually everybody to make an effort to win one. The value of the prizes did not need to be great, for each man was impressed with the idea that his comrades were watching him, that they observed every advance or retrogression. Success in the contest meant “making good” in the eyes of the other salesmen as well as in the eyes of his superiors.
_This desire for social approval and the spirited comment of the editor had a marked influence on the efficiency of many of the younger salesmen_.
These special contests were conducted chiefly during the “rush” seasons, when activity and efficiency of salesmen meant greater returns to the house. Because of their varied forms the contests did not become monotonous, and thus fail in their effect. During the three or four “big” selling months when special quotas were announced, an individual pocket schedule was mailed to each
man, showing how much business he must close each day to keep pace with “Mr. Quota,” the constant competitor.
_The most industrious and ambitious men are stimulated by competition; with the less industrious such a stimulation is often wonder working in its effects_.
For many positions in the business world a hypothetical bogy should be created after the style of the quota referred to above.
To increase the feeling of comradeship and
promote co
entire organization or single sections of it occasionally should be made the unit of competition. This is perhaps the most helpful
form of competition, but it is hard to execute.
Valuable prizes should always be given to the winners. This “need” may not necessarily be monetary.
Promotion should not depend upon success in contests, but such success may be well reckoned in awarding promotions.
Public commendation for success in competition costs the company little and is greatly
appreciated by the winner. There seems to be no reason why the head of the house should not assist in the presentation.
The most essential factor in creating interest in a contest is the skill of the “sporting editor” in injecting the real spirit of the game into each contest, thus securing wide publicity, and enlisting the co
large numbers of participants.
Prizes should be widely distributed, so that the greatest number may be encouraged.
A fair system of handicapping should be adopted in every case where equal opportunity to win is not possessed by all. Previous records often make successful bogies, and should be more extensively employed.
It is possible to carry on contests between individuals in the same department without jealousies, but skill is required to conduct them. There is the danger that individuals will seek to win by hindering others as well as by exerting themselves. Where it is not possible to carry on a contest and retain a feeling of comradeship between the men, no competition should be encouraged.
CHAPTER IV
LOYALTY
AS A MEANS OF INCREASING HUMAN EFFICIENCY
DELAYED by a train of accidents, a
big contractor faced forfeiture of his bond on a city tunnel costing millions
of dollars. He had exhausted his ingenuity and his resources to comply with the terms of his contract, but had failed. Because public opinion had been condemning concessions on other jobs on flimsy grounds, the authorities refused to extend the time allowed for completing the work. By canceling the contract,
collecting the penalty, and reletting the task, the city would profit without exceeding its legal rights.
In his dilemma, he called his foremen together and explained the situation to them. “Tell the men,” he said. Many of these
had been members of his organization for years, moving with him from one undertaking to the next, looking to him for employment, for help in dull seasons or in times of misfortune, repaying him with interest in their
tasks and a certain rough attachment.
He had been unusually considerate, adopting every possible safeguard for their protection, recognizing their union, employing three shifts of men, paying more than the required scale when conditions were hard or dangerous.
A score of unions were represented in the organization: miners, masons, carpenters, plasterers, engineers, electricians, and many grades of helpers. Learning his plight, they rallied promptly to his aid. They appealed to their trades and to the central body of unions to intervene in his behalf with the city officials.
_How One Considerate Employer was protected by his Men_
As taxpayers, voters, and members of an organization potentially effective in politics,
they approached the mayor and the department heads concerned. They pointed out–
what was true–that the city’s negligence in prospecting and charting the course of the tunnel was partly responsible for the contractor’s failure. They pleaded that the city
should make allowances rather than interrupt their employment, and that the delay in the work would counterbalance any advantage
contingent on forfeiture. They promised also that if three additional months were given the contractor, they would _*do all in their power to push construction_.
The mayor yielded; the extension was
granted. And the men made their promise good literally, waiving jealously guarded rights and sparing no effort to forward the undertaking. The miners, masons, carpenters, and
specialists in other lines in which additional skilled men could not be secured labored frequently in twelve-hour shifts and accepted
only the regular hourly rate for the overtime. With such zeal animating them, only one conclusion was possible. The tunnel was entirely
completed before the ninety days of grace had expired.
Here was loyalty as stanch and effective as that which wins battlefields and creates nations. It increased the efficiency of the individual workers; it greatly augmented the effectiveness of the organization as a whole. It was developed, without appeal to sentiment, under conditions which make for division rather than co
and employee. The men were unionists; wages, hours, and so on, were contract matters with the boss. Yet in an emergency, the tie between the tunnel builder and his men was strong enough to stand the strain of the fatiguing and long-continued effort necessary
to complete the job and save the former from ruin. Like incidents, on perhaps a smaller and less dramatic scale, are not uncommon; but the historian of business has not yet risen to make them known.
_Loyalty, to Nation or Organization, shows itself in an Emergency_
As with patriotism, business loyalty needs some such crisis as this to evoke its expression. In peace the patriotism of citizens is
rarely evident and is frequently called in question. In America we sometimes assume that it is a virtue belonging only to past generations. But every time the honor or integrity of the country is threatened, a multitude of eager citizens volunteer in its defense. Likewise, many a business man who has
come to think his workmen interested only in the wages he pays them, discovers in his hour of need an unsuspected asset in their devotion to the welfare of the business, and their willingness to make sacrifices to bring it past the
cape of storms.
Study of any field, of any single house, or of any of the periods of depression which have afflicted and corrected our industrial progress, will convince one of the unfailing and genuine loyalty of men to able and considerate em-
ployers. So generally true is this, indeed, that “house patriotism,” “organization spirit,” or “loyalty to the management” is accepted by all great executives as one of the essential elements in the day-by-day conduct of their enterprises.
Striking exhibitions of this loyalty may wait for an emergency. Unless it exists, however, unless it is apparent in the daily routine, there is immediate and relentless search for the antagonistic condition or method, which is robbing the force of present efficiency and future power. Co
the first purpose of organization. Without loyalty and team work the higher levels in output, quality, and service are impossible.
_Loyalty on Part of Employer begets Loyalty in his Workers_
The importance of loyalty in business could not readily be overestimated, even though its sole function were to secure united action on the part of the officers and men. Where no two men or groups of men were working to
counter purposes, but all are united in a common purpose, the gain would be enormous, even though the amount of energy put forth by the individuals was not increased in the least. When to this fact of value in organized effort we add the accompanying psychological facts of increased efficiency by means of loyalty, we then begin to comprehend what it means to have or to lack loyalty.
The amount of work accomplished by an individual is subject to various conditions. The whole intellect, feeling, and will must work in unity to secure the best results. Where there is no heart in the work (absence of feeling) relatively little can be accomplished, even though the intellect be convinced and the will strained to the utmost. The employee who lacks loyalty to his employer can at least render but half-hearted service even though he strive to his utmost and though he be convinced that his financial salvation is dependent upon efficient service. _The employer who secures the loyalty of his men not only secures better service, but he enables his men to accomplish_
_more with less effort and less exhaustion_. The creator of loyalty is a public benefactor.
Such loyalty is always reciprocal. The feeling which workmen entertain for their employer is usually a reflection of his attitude towards them. Fair wages, reasonable hours, working quarters and conditions of average comfort and healthfulness, and a measure of protection against accident are now no more than primary requirements in a factory or store. Without them labor of the better, more energetic types cannot be secured in the first place or held for any length of time. And the employer who expects, in return for these, any more than the average of uninspired service is sure to be disappointed.
If he treats his men like machines, looks at them merely as cogs in the mechanism
of his affairs, they will function like machines or find other places. If he wishes to stir the larger, latent powers of their brains and bodies, thereby increasing their efficiency as thinkers and workers, he must recognize them as men and individuals and give in
some measure what he asks. He must identify them with the business, and make them
feel that they have a stake in its success and that the organization has an interest in the welfare of its men. The boss to whom his employees turn in any serious perplexity or private difficulty for advice and aid is pretty apt to receive more than the contract minimum of effort every day and is sure of devoted service in any time of need.
_The Effect of Personal Relations in creating Loyalty in a Force_
It is on this personal relationship, this platform of mutual interests and helpfulness, that the success and fighting strength of many one- man houses are built. As in the contractor’s dilemma already cited, it bears fruit in the fighting zeal, the keener interest, and the extra speed and effort which workers bring to bear on their individual and collective tasks. All the knowledge and skill they possess are thrown into the scale; their quickened intelligences reach out for new methods and short
cuts; when the crisis has passed, there may be a temporary reaction, but there is likely to be a permanent advance both in individual efficiency and organization spirit.
On the employer’s side, this feeling is expressed in the surrender of profits to provide
work in dull seasons; in the retention of aged mechanics, laborers, or clerks on the payroll after their usefulness has passed; in pensions; in a score of neighborly and friendly offices to those who are sick, injured, or in trouble. A reputation for “taking care of his men” has frequently been a bulwark of defense to the small manufacturer or trader assailed by a greedy larger rival.
Personality is, beyond doubt, the primitive wellspring of loyalty. Most men are capable of devotion to a worthy leader; few are
ever zealots for the sake of a cause, a principle, a party, or a firm. All these are too abstract to win the affection of the average man. It is only when they become embodied in an individual, a concrete personality which stirs our
human interest, that they become moving
powers. The soldiers of the Revolution fought for Washington rather than for freedom;
Christians are loyal to Christ rather than to his teachings; the voter cheers his candidate and not his party; the employee is loyal to the head of the house or his immediate foreman and not to the generality known as the House. Loyalty to the individuals constituting the firm may ultimately develop into house loyalty. To attempt to create the latter sentiment, however, except by first creating it for the men higher up is to go contrary to human nature–always an unwise expenditure of
energy.
_Human Sympathy as a Factor in developing Loyalty in Men_
In developing loyalty, human sympathy is the greatest factor. If an executive of a company is confident that his directors approve his policies, appreciate his obstacles,
and are ready to back him up in any crisis, his energy and enthusiasm for the common object never flag. If department heads and
foremen are assured that the manager is watching their efforts with attention and regard, approving, supporting, and sparing them
wherever possible, they will anticipate orders, assume extra burdens, and fling themselves and their forces into any breach which may threaten their chief’s program.
If a workman, clerk, or salesman knows that his immediate chief is interested in him personally, that he understands what service is
being rendered and is anxious to forward his welfare as well as that of the house, there is no effort, inconvenience, or discomfort which he will not undertake to complete a task which the boss has undertaken. Throughout the
entire organization, the sympathy and co
of the men above with the men below is essential for securing the highest degree of loyalty. No assumed or manufactured sympathy, however, will take the place of the genuine article.
_Personal Relationship with Workers as Basis for creating Loyalty_
The effectiveness of human sympathy in creating loyalty is most apparent in one-man businesses where the head of the house is in personal contact with all or many of his employees. This personal touch, however, is
not necessarily limited to the small organization. Many men have employed thousands
and secured it. Others have succeeded in impressing their personalities, and demonstrating
their sympathy upon large forces, though their actual relations were with a few. The impression made upon these and the loyalty created in them were sufficient to permeate and influence the entire body. Potter Palmer, the elder Armour, Marshall Field, and Andrew Carnegie were among the hundreds of captains
who made acquaintance with the men in the ranks the cornerstone on which they raised their trade or industrial citadels.
When the size of the organization precludes personal contact, or when conditions remove
the executive to a distance, the task of maintaining touch is frequently and successfully
intrusted to a lieutenant in sympathy with the chief’s ideals and purposes. He may
be the head of a department variously styled, –adjustments, promotion and discharge,
employment, labor,–but his express function is to restore to an organization the simple but powerful human relation without which higher efficiency cannot be maintained. In factories and stores employing many women this understudy to the manager is usually a woman, who is given plenary authority in the handling of her charges, in reviewing disputes with foremen, and in finding the right position for the misplaced worker. Whether man
or woman, this representative of the manager hears all grievances, reviews all discharges, reductions, and the like, and makes sure that the employee receives a little more than absolute justice.
Many successful merchants and manufacturers, however, disdain agents and intermediaries in this relation and are always ac-
cessible to every man in their organizations; holding that, since the co
is the most important single element in business, the time given to securing it is time well spent.
Even though human sympathy may well
be regarded as the most important consideration in increasing loyalty, it is not sufficient in and of itself. The most patriotic citizens are those who have, served the state. They are made loyal by the very act of service. They have assumed the responsibility of promoting the welfare of the state, and their
patriotism is thereby stimulated and given concrete outlet. A paternalistic government in which the citizens had every right but no responsibility would develop beggars rather than patriots.
Similarly in a business house ideally organized to create loyalty, each employee not
only feels that his rights are protected, but also feels a degree of responsibility for the success and for the good name of the house. He feels that his task or process is an essen-
tial part of the firm’s activity; and hence is important and worthy of his best efforts. To cement this bond and make closer the identification of the employee with the house many
firms encourage their employees to purchase stock in the company. Others have worked out profit-sharing plans by which their men share in the dividends of the good years and are given a powerful incentive to promote teamwork and the practice of the economies from which the overplus of profit is produced.
_Loyalty may be developed by Education in House History and Policies_
The stability of a nation depends on the patriotism of its citizens. Among methods for developing this patriotism, _*education_ ranks as the most effective. In the public schools history is taught for the purpose of awakening the love and loyalty of the rising generations. The founders, builders, and saviors of the country, the great men of peace and war who have
contributed to its advancement, are held up for admiration. From the recital of what
country and patriotism meant to Washington, Jefferson, Lincoln, Grant, and a host of lesser heroes, the pupils come to realize what country should, and does, mean to them. They
become patriotic citizens.
_Grounding the New Employee in Company Traditions and Ideals_
In like manner the history of any house can be used to inspire loyalty and enthusiasm among its employees. Business has not been slow to borrow the methods and ideals of education, but the writer has been unable to discover any company which makes adequate use of this principle. That this loyalty may be directed to the house as a whole, and not merely to immediate superiors, every employee should be acquainted with the purposes and policies of the company and should understand that the sympathy which he discovers in
his foreman is a common characteristic of the whole organization, clear up to the president. The best way to teach this is by example– by incidents drawn from the past, or by a
review of the development of the company’s policy.
To identify one’s self with a winning cause, party, or leader, also, is infinitely easier than to be loyal to a loser. For this reason the study of the history of the firm may well include its trade triumphs, past and present;
the remarkable or interesting uses to which its products have been put; the honor or prestige which its executives or members of the
organization have attained; and the hundred other items of human interest which can be marshaled to give it house personality. All this would arouse admiration and appreciation in employees, would stir enthusiasm and
a desire to contribute to future achievements, and would foster an unwillingness to leave the organization.
Some companies have begun in this direction. New employees, by way of introduction,
listen to lectures, either with or without the accompaniment of pictures, which review what the house has accomplished, define its standing in the trade, analyze its products and
their qualities or functions, sketch the plan and purpose of its organization, and touch upon the other points of chief human interest. Other companies put this information in booklets. Still others employ their house organs to recall and do honor to the interesting traditions of the company as well as to exploit the successful deeds and men of the moment. An organized and continuous campaign of education
along this line should prove an inexpensive means of increasing loyalty and efficiency among the men. To the mind of the writer, it seems clear that the future will see pronounced advances in this particular.
Personality can be overdone, however. Workers instinctively give allegiance to strong, balanced men, but resent and combat egotism unchecked by regard for others’ rights.
Exploitation of the employer’s or foreman’s personality will do more harm than good unless attended by consideration for the personality of the employee. The service of more than one important company has been made intolerable for men of spirit and creative ability
by the arrogant and dominating spirit of the management. The men who continue to
sacrifice their individuality to the whim or the arbitrary rule of their superiors, in time lose their ambition and initiative; and the organization declines to a level of routine, mechanical efficiency only one remove from dry-
rot.
_How Efficiency and Loyalty of Workers may be Capitalized_
Conservation and development of individuality in workers may be made an important
factor in creating loyalty as well as in directly increasing efficiency. Great retail stores put many department heads into business for
themselves, giving them space, light, buying facilities, clerks, and purchasing and advertising credit as a basis of their merchandising; then requiring a certain percentage of profit on the amount allowed them. The more successful of Marshall Field’s lieutenants were
taken into partnership and, as in the case of Andrew Carnegie and his “cabinet of young
geniuses,” were given substantial shares of the wealth they helped to create.
Some industries and stores carry this practice to the point of making specialized departments entirely independent of the general
buying, production, and selling organizations whenever these fall short of the service offered outside; while the principle of stock distribution or other forms of profit sharing has
been adopted by so many companies that it has come to be a recognized method of promoting loyalty.
Regard for the employee’s personality must be carried down in an unbroken chain through all the ranks. It may be broken at any step in the descent by an executive or foreman who has not himself learned the lesson that loyalty to the house includes loyalty to the men under him.
It is not uncommon, in some American
houses, to find three generations of workers –grandfather, father, and apprentice son– rendering faithful and friendly service; or to discover a score of bosses and men who have
spent thirty or forty years–their entire productive lives–in the one organization. Where such a bond exists between employer and employees, it becomes an active, unfailing force in the development of loyalty, not only among the veterans, but also among the newest recruits for whom it realizes an illustration of what true co
_Many Examples of the Loyalty of Executives for their Men in Danger_
This double loyalty–to the chief and to the organization–is not a plant of slow growth. Few mine accidents or industrial disasters occur without bringing to merited, but fleeting, fame some heroic superintendent or lesser boss who has risked his own life to save his men or preserve the company’s
property. The same sense of responsibility extends to every grade. Give a man the
least touch of authority and he seems to take on added moral stature. The engineer who clings to his throttle with collision imminent has his counterparts in the “handy man”
who braves injury to slip a belt and save another workman or a costly machine, and in the elevator conductor who drives his car up and down through flames and smoke to rescue his fellows. Such efficiency and organization spirit is the result of individual growth as well as the impression of the employer’s personality upon his machine.
_A Disloyal Sales Manager and his Influence on his Force_
On the other hand, lack of loyalty on the part of employers towards their men is almost as common as failing devotion on the part of workers. Too many assume that the mere
providing of work and the payment of wages give them the right to absolute fidelity, even when they take advantage of their men. The sales manager concerned in the following incident refused to believe that his attitude
towards his men had anything to do with the lack of enthusiasm and low efficiency in his force.
An experienced salesman who had lost his
position because of the San Francisco fire applied to the sales manager for a position. He was informed that there were fifteen applicants for the Ohio territory, but that the
place would be given to him because of his better record. The manager laid out an
initial territory in one corner and ordered the salesman to work it first.
Working this territory, the salesman secured substantial orders, but refrained from
“over-selling” any customer, gave considerable time to missionary work and to cultivating the acquaintance of buyers. His campaign was planned less for immediate results
than for the future and for the effect on the larger field of the state. Having no instructions as to pushing his wider campaign, in
about sixty days he asked for instructions. In answer he was ordered home and discharged on the ground that business was dull and that he had been a loss to the house. During the sixty days he had been working on a losing commission basis with the expectation of taking his profits later. Investigation dis-
closed that he was but one of five salesmen to whom the Ohio territory had been assigned simultaneously. Of the five, one other also had made good and had been retained because he could be secured for less money.
This multiple try-out policy is entirely fair when the applicants know the conditions. But to lead each applicant to believe that he has been engaged subject only to his ability to make good is manifestly unjust. The facts are bound to come out sooner or later and create distrust among all employees of the house. Loyalty is strictly reciprocal. If an employee feels that he has no assurance of fair treatment, his attitude towards the firm is sure to be negative. Even the man who secures the position will recognize the firm’s lack of candor and will never give his employers the full measure of co
maximum efficiency.
The “square deal,” indeed, is the indispensable basis of loyalty and efficiency in an
organization. The spirit as well as the letter of the bargain must be observed, else the work-
men will contrive to even up matters by loafing, by slighting the work, or by a minimum production. This means a loss of possible daily
earnings. On the other hand, employees never fail to recognize and in time respect the executive who holds the balance of loyalty and justice level between them and the business.
Fair wages, reasonable hours, working quarters and conditions of average comfort and
healthfulness, ordinary precautions against accidents, and continuous employment are all now regarded as primary requirements and are not sufficient to create loyalty in the men. More than this must be done.
The chief executive should create such a spirit that his officers shall turn to him for help when in perplexity or difficulty. The superintendent and officers or bosses should sustain this same sympathetic relationship toward their men that the executive has toward his officers. A reputation for taking care of his men is a thing to be sought in a chief executive as well as in all underofficers.
Personal relationships should be cultivated.
In some large organizations the chief executive may secure this personal touch with individuals through an agent or through a department known as the department of “promotion and discharge,” “employment,” or “labor.” In others, occasional meetings on a level of equality may be brought about through house picnics, entertainments, vacation camps, and so
on, where employer and employee meet each other outside their usual business environment.
It is not worth while to attempt to develop loyalty to the house until there has been developed a loyalty to the personalities representing the house. Loyalty in business is in the main a reciprocal relationship. The way to begin it is for the chief to be loyal to his subordinates and to see to it that all officers are loyal to their inferiors. When loyalty from above has been secured, loyalty from the ranks may readily be developed.
The personality of the worker must be respected by the employer. “Giving a man a chance” to develop himself, allowing him
to express his individuality, is the surest way of enlisting the interest and loyalty of a creative man.
To identify the interests of employees with the interests of the house, various plans of profit sharing, sale of stock to employees, pensions, insurance against sickness and accident, and so on, have been successfully applied by many companies.
So far as possible, responsibility for the success of the house should be assumed by all employees. In some way the workmen
should feel that they are in partnership with the executives. We easily develop loyalty for the cause for which we have taken responsibility or rendered a service.
_Creating Loyalty to Firm itself by Educational Campaign_
A perpetual campaign of publicity should be maintained for the benefit of every man in the employ of the house. In this there should be a truthful but emphatic presentation of acts of loyalty on the part of either employers or
workmen. Everything connected with the firm which has human interest should be included in this history. This educational campaign should change the loyalty to the _*men_
in the firm into loyalty to the _*firm_ itself. It should be an attempt to give the firm a personality, and of such a noble character that it
would win the loyalty of the men. This could be accomplished at little expense and with great profit.
CHAPTER V
CONCENTRATION
AS A MEANS OF INCREASING HUMAN EFFICIENCY
THE owner of one of the largest and most complex businesses in America handles
his day’s work on a schedule as exacting as a railway time-table. In no other way could he keep in touch with and administer the manifold activities of his industry and a score of allied interests–buying of the day’s raw materials for a dozen plants in half as many markets, direction of an organization exceeding 20,000 men, selling and delivering a multitude of products in a field as wide as three continents, financing the whole tremendous fabric.
Every department of his business, therefore, has its hour or quarter hour in the daily program when its big problems are considered
and settled on the tick of the clock. This schedule is flexible, since no two days bring from any division of production, distribution, or financing the same demands upon the owner’s attention. Yet each keeps its place and
comes invariably under his eye–through reports and his own mastery of conditions affecting the department.
_To secure the high personal efficiency required for this oversight and methodical dispatch of affairs, the owner-executive is not only protected from outside interruptions and distractions, but is also guarded against intrusion of the vital elements of his business–both men and matters –except at the moment most advantageous for dealing with them_.
Analysis and organization have determined these moments–just as they have eliminated every non-essential in the things presented for consideration and decision. Except when emergencies arise there is no departure from the rule: “One thing at a time–the big thing–at the right time.” The task in hand is never cheated, or allowed to cheat the next
in line. Management is as much a continuous process, organized and wasteproof, as the journey of raw materials through his plants.
This is an illustration of remarkable individual efficiency attained by concentration
–the power of the human mind which seems inseparable from any great achievement in business, in politics, in the arts, in education. Through it men of moderate capacities have secured results apparently beyond the reach of genius. And in no field has this power of concentration been displayed more vividly by leaders or been more generally lacking in the rank and file than in business. Analysis of the conditions may suggest the reason and the remedy.
_The modern business man is exhausted no more by his actual achievements than by the things which he is compelled to resist doing_.
Appeals for his attention are ceaseless. The roar of the street, the ring of telephone bells, the din of typewriting machines, the sight of a row of men waiting for an interview, the muffled voices from neighboring offices or
workers, the plan for the day’s work which is being delayed, the anxiety for the results for certain endeavors, suspicion as to the loyalty of employees–these and a score of other distractions are constantly bombarding him.
Every appeal for attention demands expenditure of energy–to ignore it and hold
the mind down to the business in hand. The simple life with its single appeal is not for the business man. For him life is complex and strenuous. To overcome distractions and focus his mind on one thing is a large part of his task. If this single thing alone appealed to his attention, the effort would be pleasing and effective. It is not the work that is hard; the strain comes in keeping other things at bay while completing the pressing duty.
_He is exhausted, not because of his achievements, but because of the expenditure of energy in resisting distractions_.
He is inefficient, not through lack of industry, but from lack of opportunity or of ability to concentrate his energy upon the single task at hand.
All sources of illumination–from the candle to the sun–send out rays of light equally in all directions. If illumination of only _*one_ point is desired, the loss is appalling. The rays may be assembled, however, by reflectors and lenses and so brought to bear in great force at a single point.
This brilliancy is not secured by greater expenditure of energy, but by utilizing the rays which, except for the reflectors and lenses, would be dissipated in other directions.
_As any source gives off equally in all directions, so the human intellect seems designed to respond to all forms and sorts of appeal for attention_.
To keep light from going off in useless directions we use reflectors; to keep human energy
from being expended in useless directions we must remove distractions. To focus the light at any point we use lenses; to focus our minds at any point we use concentration.
Concentration is a state secured by the mental activity called attention. To understand concentration we must first consider the more fundamental facts of attention.
In the evolution of the human race certain things have been so important for the individual and the race that responses towards
them have become instinctive. They appeal to every individual and attract his attention without fail. Thus moving objects, loud
sounds, sudden contrasts, and the like, were ordinarily portents of evil to primitive man, and his attention was drawn to them irresistibly. Even for us to pay attention to such
objects requires no intention and no effort. Hence it is spoken of as _*passive_ or _*involuntary attention_.
The attention of animals and of children is practically confined to this passive form, while adults are by no means free from it. For instance, ideas and things to which I have no intention of turning my mind attract me. Ripe fruit, gesticulating men, beautiful women, approaching holidays, and scores of other things simply pop up in my mind and enthrall my attention. My mind may be so concentrated upon these things that I become oblivious to pressing responsibilities. In some
instances the concentration may be but momentary; in others there may result a day
dream, a building of air castles, which lasts for a long time and recurs with distressing frequency.
_Such attention is action in the line of least resistance. Though it may suffice for the acts of animals and children it is sadly deficient for our complex business life_.
Even here, however, it is easy to relapse to the lower plane of activity and to respond to the appeal of the crier in the street, the inconvenience of the heat, the news of the ball game, or a pleasing reverie, or even to fall into a state of mental apathy. The warfare against these distractions is never wholly won. Banishing these allurements results in the concentration so essential for successfully handling business problems. The strain is not so much in solving the problems as in retaining the concentration of the mind.
When an effort of will enables us to overcome these distractions and apply our minds to the subject in hand, the strain soon repeats itself.
It frequently happens that this struggle is continuous–particularly when the distractions are unusual or our physical condition is below the normal. No effort of the will is able to hold our minds down to work for any length of time unless the task develops interest in itself.
This attention with effort is known as _*voluntary attention_. It is the most exhausting act which any individual can perform. Strength of will consists in the power to resist distractions and to hold the mind down to even
the most uninteresting occupations.
_Fortunately for human achievement, acts which in the beginning require voluntary effort may later result without effort_.
The schoolboy must struggle to keep his mind on such uninteresting things as the alphabet. Later he may become a literary
man and find that nothing attracts his attention so quickly as printed symbols. In commercial arithmetic the boy labors to fix his
attention on dollar signs and problems involving profit and loss. Launched in business,
however, these things may attract him more than a football game.
It is the outcome of previous application that we now attend without effort to many things in our civilization which differ from those of more primitive life. Such attention without effort is known as _*secondary passive attention_. Examples are furnished by the geologist’s attention to the strata of the earth, the historian’s to original manuscripts, the manufacturer’s to by-products, the merchant’s to distant customers, and the attention
which we all give to printed symbols and scores of other things unnoticed by our distant ancestors. Here our attention is similar to passive attention, though the latter was the result of inheritance, while our secondary passive attention results from our individual efforts and is the product of our training.
Through passive attention my concentration upon a “castle in Spain” may be perfect until destroyed by a fly on my nose. Voluntary attention may make my concentration
upon the duty at hand entirely satisfactory
till dissipated by some one entering my office. Secondary passive attention fixes my mind upon the adding of a column of figures, and it may be distracted by a commotion in my vicinity. Thus concentration produced by any
form of attention is easily destroyed by a legion of possible disturbances. If I desire to increase my concentration to the maximum, I must remove every possible cause of
distraction.
_Organized society has recognized the hindering effect of some distractions and has made halting attempts to abolish them_.
Thus locomotives are prohibited from sounding whistles within city limits, but power
plants are permitted by noise and smoke to annoy every citizen in the vicinity. Street cars are forbidden to use flat wheels, but are still allowed to run on the surface or on a resounding structure and thus become a public nuisance. Steam calliopes, newsboys, street venders, and other unnecessary sources of noise are still tolerated.
In the design and construction of office
buildings, stores, and factories in noisy neighborhoods, too little consideration is given to
existing means of excluding or deadening outside sounds, though the newer office buildings are examples of initiative in this direction; not only are they of sound-proof construction, but in many instances they have replaced the noisy pavements of the streets with blocks which reduce the clatter to a minimum. In both improvements they have been emulated by some of the great retail stores which have shut out external noises and reduced those within to a point where they no longer distract the attention of clerks or customers
from the business of selling and buying. In many, however, clerks are still forced to call aloud for cash girls or department managers, and the handling of customers at elevators is attended by wholly unnecessary shouting and clash of equipment.
Of all distractions, sound is certainly the most common and the most insistent in its appeal.
The individual efforts towards reducing it quoted above were stimulated by the hope
of immediate and tangible profit–sound- proof offices commanding higher rents and quiet stores attracting more customers. In not a few cases, manufacturers have gone deeper, however, recognizing that anything which claims the attention of an employee from his work reduces his efficiency and cuts profits, even though he be a piece worker. In part this explains the migration of many industries to the smaller towns and the development of a new type of city factory with sound- proof walls and floors, windows sealed against noise, and a system of mechanical ventilation.
The individual manufacturer or merchant, therefore, need not wait for a general crusade to abate the noise, the smoke, and the other distractions which reduce his employee’s effectiveness. In no small measure he can shut out external noises and eliminate many of those within. Loud dictation, conversations, clicking typewriters, loud-ringing telephones, can all be cut to a key which makes them virtually indistinguishable in an office of any
size. More and more the big open office as
an absorbent of sound seems to be gaining in favor. In one of the newest and largest of these I know, nearly all the typewriting machines are segregated in a glass-walled room,
and long-distance telephone messages can be taken at any instrument in the great office.
_Like sound in its imperative appeal for attention is the consciousness of strangers passing one’s desk or windows_.
Movement of fellow employees about the department, unless excessive or unusual, is hardly noticed; let an individual or a group with whom we are not acquainted come within the field of our vision, and they claim attention immediately. For this reason shops or factories whose windows command a busy street
find it profitable to use opaque glass to shut out the shifting scene.
This scheme of retreat and protection has been carried well-nigh to perfection by many executives. Private offices guarded by secretaries fortify them against distractions and
unauthorized claims on their attention, both from within and without their organizations.
Routine problems, in administration, production, distribution, are never referred to them; these are settled by department heads, and only new or vital questions are submitted to the executive. In many large companies,
besides the department heads and secretaries who assume this load of routine, there are assistants to the president and the general manager who further reduce the demands
upon their chiefs. The value of time, the effect of interruptions and distractions upon their own efficiency, are understood by countless executives who neglect to guard their
employees against similar distractions.
_Individual business men, unsupported by organizations, have worked out individual methods of self-protection_.
One man postpones consideration of questions of policy, selling conditions, and soon until the business of the day has been finished, and interruptions from customers or employees are improbable. Another, with his stenographer, reaches his office half an hour earlier than his organization, and, picking out the day’s big
task, has it well towards accomplishment before the usual distractions begin. The foremost electrical and mechanical engineer in the country solves his most difficult and abstruse problems at home, at night. His organization provides a perfect defense against interruptions; but only in the silence, the isolation of his home at night, does he find the complete absence of distraction permitting the absolute concentration which produces great results.
This chapter was prefaced by an instance where protection from distractions through organization was joined with methodical
attack on the elements of the day’s work. This combination approaches the ideal; it is the system followed by nearly all the great
executives of America. Time and attention are equably allotted to the various interests, the various departments of effort which must have the big man’s consideration during the day. Analysis has determined how much of each is required; appointments are made with the men who must co
are pushed aside until a decision is reached;
and upon the completion of each attention is concentrated on the next task.
A striking instance of this organization of work and concentration upon a single problem is afforded by the “cabinet meetings” of some large corporations and the luncheons of groups of powerful financiers in New York. There are certain questions to be settled, a definite length of time in which to settle them. In the order of their importance they are allotted so many minutes. At the expiration of that time a vote is taken, the president or chairman announces his decision, and the next matter is attacked.
_There is no royal method of training in concentration. It is in the main developed by repeated acts of attention upon the subject in hand_.
If I am anxious or need to develop the power of concentration upon what people say, either in conversation or in public discourse, I may be helped by persistently and continuously forcing myself to attend. The habit of
concentration may to a degree be thus acquired;
pursuing it, I should never allow myself to listen indifferently, but I must force myself to strict attention.
Such practice would result ultimately in a habit of concentration upon what I hear, but would not necessarily increase my power of concentration upon writing, adding, or other activities. Specific training in each is essential, and even then the results will be far short of what might be desired. Persistent effort in any direction is not without result, however, and any increase in concentration is so valuable that it is worth the effort it costs. If a man lacks power of concentration in any particular direction, he should force concentration in that line and continue till a habit results.
Our control over our muscles and movements far exceeds our direct control over our
attention. An attitude of concentration is possible, even when the desired mental process is not present. Thus by fixing my eyes on a page and keeping them adjusted for reading, even when my mind is on a subject far removed, I can help my will to secure concentration. I
can likewise restrain myself from picking up a newspaper or from chatting with a friend when it is the time for concentrated action on my work. By continuously resisting movements which tend to distract and by holding myself in the position of attention, the strain upon my will in forcing concentration becomes less.
_Concentration is practically impossible when the brain is fagged or the bodily condition is far below the normal in any respect_.
The connection between the body and the mind is most intimate, and the perfect working of the body is necessary to the highest efficiency of the mind. The power of concentration is accordingly affected by surroundings in the hours of labor, by sleep and recreation, by the quality and quantity of food, and by every condition which affects the bodily processes favorably.
Recognition of this truth is behind the very general movement, both here and abroad, to provide the best possible conditions both in the factories and the home environment of workers. Employers are coming more and more to un-
derstand that conservation of physical forces means maximum output. The foundation,
of course, is a clean, spacious, well-lighted, and perfectly ventilated factory in a situation which affords pure air and accessibility to the homes of employees. In England and Germany the advance towards this ideal has taken form in the “garden cities” of which the plant is the nucleus and the support. In America there is no lack of industrial towns planned and built as carefully as the works to which they are tributary.
Some have added various “welfare” features, ranging from hot luncheons served at
cost, free baths, and medical attendance to night schools for employees to teach them how to live and work to better advantage. The profit comes back in the increased efficiency of the employees.
_Even though the health be perfect and the attitude of attention be sustained the will is unable to retain concentration by an effort for more than a few seconds at a time_.
When the mind is concentrated upon an
object, this object must develop and prove interesting, otherwise there will be required every few seconds the same tug of the will. This concentration by voluntary attention is essential, but cannot be permanent. To secure enduring concentration we may have to
“pull ourselves together” occasionally, but the necessity for such efforts should be reduced. This is accomplished by developing interest in the task before us, through application of the fundamental motives such as self-preservation, imitation, competition, loyalty, and
the love of the game.
If the task before me is essential for my self-preservation, I shall find my mind riveted upon it. If I hope to secure more from speculation than from the completion of my present
tasks, then my self-preservation is not dependent upon my work and my mind will
irresistibly be drawn to the stock market and the race track. If I wish my work to be
interesting and to compel my undivided attention, I should then try to make it appeal
to me as of more importance than anything
else in the world. I must be dependent upon it for my income; I must see that others are working and so imitate their action; I must compete with others in the accomplishment of the task; I must regard the work as a service to the house; and I must in every possible way try to “get into the game.”
_This conversion of a difficult task into an interesting activity is the most fruitful method of securing concentration_.
Efforts of will can never be dispensed with, but the necessity for such efforts should be reduced to the minimum. The assumption
of the attitude of attention should gradually become habitual during the hours of work, and so take care of itself.
The methods which a business man must use to cultivate concentration in himself are also applicable to his employees. The manner of applying the methods is, of course, different. The employer may see to it that as far as possible all distractions are removed. He cannot directly cause his men to put forth voluntary effort, but he can see to it that they re-
tain the attitude of concentration. This may require the prohibition of acts which are distracting but which would otherwise seem indifferent. The employer has a duty in regard
to the health of his men. Certain employers have assumed to regulate the lives of their men even after the day’s work is over. Bad habits have been prohibited; sanitary conditions of living have been provided; hours of labor have been reduced; vacations have been
granted; and sanitary conditions in shop and factory have been provided for.
_Employers are finding it to their interest to make concentration easy for their men by rendering their work interesting_.
This they have done by making the work seem worth while. The men are given living wages, the hope of promotion is not too long deferred, attractive and efficient models for imitation are provided, friendly competition is encouraged, loyalty to the house is engendered, and love of the work inculcated. In addition, everything which hinders the development of interest in the work has been resisted.
How will a salesman, for instance, develop interest in his work if he makes more from his “side lines” than from the service he renders to the house which pays his expenses? How can the laborer be interested in his work if he believes that by gambling he can make more in an hour than he could by a month’s steady work? The successful shoemaker sticks to his last, the successful professional man keeps out of business, and the wise business man resists the temptation to speculate. Occasionally a man may be capable of carrying on diverse lines of business for himself, but the man is certainly a very great exception who can hold his attention to the interests of his employer when he expects to receive greater rewards from other sources.
_The power of concentration depends in part upon inheritance and in part upon training_.
Some individuals, like an Edison or a Roosevelt, seem to be constructed after the manner of a searchlight. All their energy may be turned in one direction and all the rest of the world disregarded. Others are what we call scatter-
brained. They are unable to attend completely to any one thing. They respond constantly to stimulation in the environment and to ideas which seem to “pop up” in their minds.
Some people can read a book or paper with perfect satisfaction, even though companions around them are talking and laughing. For others, such attempts are farcical.
Many great men are reputed to have had marvelous powers of concentration. When
engaged in their work, they became so absorbed in it that distracting thoughts had no access to their minds, and even hunger, sleep, and salutations of friends have frequently been unable to divert the attention from the absorbing topic.
_There are persons who cannot really work except in the midst of excitement_.
When surrounded by numerous appeals to attention, they get wakened up by resisting these attractions and find superfluous energy adequate to attend to the subject in hand. This is on the same principle that governs the effects of poisonous stimulants. Taken
into the system, the whole bodily activity is aroused in an attempt to expel the poison. Some of this abnormally awakened energy
may be applied to uses other than those intended by nature. Hence some individuals
are actually helped in their work at least temporarily by the use of stimulants. Most of the energy is of course required to expel the poison, and hence the method of generating the energy is uneconomical.
The men who find that they can accomplish the most work and concentrate themselves upon it the most perfectly when in the midst of noise and confusion are paying a great price for the increase of energy, available for profitable work. To be dependent on confusion for
the necessary stimulation is abnormal and expensive. Rapid exhaustion and a shortened
life result. It is a bad habit and nothing more.
_Many persons seem able to disregard the common and necessary distractions of office, store, or factory_.
Other persons are so constituted that these distractions can never be overcome. Such
persons cannot hear a message through a telephone when others in the room are talking;
they cannot dictate a letter if a third person is within hearing; they cannot add a column of figures when others are talking. Habit and effort may reduce such disability, but in some instances it will never even approximately eliminate it. Such persons may be very
efficient employees, and their inability to concentrate in the presence of distractions should
be respected. Every business man is careful to locate every piece of machinery where it will work best, but equal care has not been given to locating men where they may work to the greatest advantage.
By inheritance the power of concentration differs greatly among intelligent persons. By training, those with defective power may improve, but will never perfect the power to concentrate amidst distractions. To subject such
persons to distractions is an unwise expenditure of energy
_Concentration by voluntary attention should be avoided, but concentration by secondary passive_
_attention cultivated. Organized business interests should eliminate such public nuisances as surface street cars, elevated trains, venders of wares, screeching newsboys, smoking chimneys, and the like_.
In individual establishments walls may be deadened to sounds, telephones may be muffled, call bells may be replaced by buzzers with indicators, clerks may have other methods than
that of calling aloud for “cash” or for floor walkers, typewriters may be massed with a view to reducing the general commotion, the illumination at the desks may be increased, discomforts should be reduced to a minimum, work may be so systematized that only one task at a time demands attention.
At least the attitude of concentration should be habitual. The bodily condition favorable to the best concentration may make profitable such devices as firm lunch rooms, the
building of industrial villages, and so on.
Concentration is secured positively by bringing into activity the various motives which
affect most powerfully the different individu-
als. There should be a universal taboo on horse racing and all forms of gambling. Even “side lines” should be completely discouraged. Some individuals are so hindered by the ordinary and necessary distractions of business
that special protection should be granted to them.
CHAPTER VI
WAGES
AS A MEANS OF INCREASING HUMAN EFFICIENCY
FIFTY years ago works on psychology
were devoted largely to discussion of ideas and of concepts. To-day the
point of emphasis has changed, and we are now paying much attention to a study of
“attitudes.” It is doubtless important to analyze my ideas or concepts, but it is of much more importance to know my attitudes. It is vital to know how to influence the ideas of others; but to be able to influence their attitudes is of still greater significance.
We all know in a general way what we
mean by an attitude, but it is difficult to define or to comprehend it exactly. I have one attitude towards a snake and a totally different
one towards my students. If when hunting
quail I happen upon a little harmless snake, I find that I respond to the sight in a most absurd manner. Dread and repulsion overcome me. I can hardly restrain myself from
killing the snake, even though doing so will frighten the birds I am hunting. I am predisposed to react in a particular way towards
a snake. I sustain a particular attitude towards it.
In the presence of my students I find that a spirit of unselfish devotion and a desire to be of assistance are likely to be uppermost. That is to say, I sustain towards my students an attitude of helpfulness, a predisposition to react towards them in such a way that their interests may be furthered. In fact, I find that we all take particular attitudes towards the people we know and towards every task of our lives. These attitudes are very significant, and yet they are often developed by circumstances which made but little apparent impression at the time, or may have been altogether forgotten. I cannot recall, for instance, the experience of my boyhood which developed
my present absurd attitude toward harmless snakes.
When witnessing a play, my attitude of suspicion towards a particular character may have been promoted by means of music and color, by means of the total setting of the play, or by some other means which never seemed to catch my attention. These concealed agencies threw me into an attitude of suspicion, even while I was not aware that such a result was being attempted.
This modern conception of psychology
teaches us that in influencing others we are not successful until we have influenced their attitudes. Children in school do not draw patriotism from mere information about their country. Patriotism comes with the cultivation of the proper attitude towards one’s
native land.
_Success or failure in business is caused more by mental attitude even than by mental capacities_.
Nothing but failure can result from the mental attitude which we designate variously as laziness, indifference, indolence, apathy,
shiftlessness, and lack of interest. All business successes are due in part to the attitudes which we call industry, perseverance, interest, application, enthusiasm, and diligence.
In any individual, too, these attitudes may not be the same towards different objects and may be subject to very profound changes and developments. A schoolboy is frequently lazy when engaged in the study of grammar, but industrious when at work in manual
training. A young man who is an indolent bookkeeper may prove to be an indefatigable salesman. Another who has shown himself
apathetic and indifferent in a subordinate position may suddenly wake up when cast
upon his own responsibility.
Few men of any intelligence can develop the same degree of interest in each of several tasks. Personally I find that my shiftlessness in regard to some of my work is appalling. Touching my main activities, however, I
judge that my industry is above reproach.
The preceding chapters (particularly the chapters on Imitation, Competition, and Loy-
alty) were attempts to discover and to present the most effective motives or factors in producing in workers an attitude of industry.
Based on a study of psychology and of business, methods were presented which may be
utilized with but little expense and yet are effective in awakening instinctive responses in the worker and hence greatly increasing his efficiency. The present chapter will deal with an even more effective means of securing an attitude of industry since it appeals to three of the most fundamental and irresistible of man’s instincts.
_With most of us the degree of our laziness or our industry depends partly upon our affinity for the work, but chiefly upon the motives which stimulate us_.
For our ancestors, preservation depended upon their securing the necessary means for food, clothing, and shelter. In the struggle for existence only those individuals and races survived who were able to secure these necessary articles. In climates and regions removed from the tropics only the exceedingly
industrious survived. In warm and fertile lands those who were relatively industrious managed to exist. Because of the absence of the necessity for clothing and because of the abundance of available food, races have developed in the tropics which are notoriously
lazy. The human race, individually and collectively, works only where and when it is
compelled to.
The energetic races, those which have advanced in civilization, live in lands where the struggle for existence has been continuous. Necessity is a hard master, but its rule is indispensable to worthy achievement. The instinct of self-preservation and the industrious attitude are responses which the human race has learned to exercise, in the main, only in case of need. Self-preservation is the first law; where life and personal liberty are dependent upon industry, idleness will not be found. Wealth removes the obligation to
toil; hence the poor boy often outdistances his more favored brother.
Individuals work for pay as a means of
self-preservation, and unless that is satisfactory other motives have but little weight
with them. The needs of the self which preservation demands are continuously increasing.
The needs of the American-born laborer are greater than those of the Chinaman. Regardless of this higher standard of living and
the ever increasing number of “necessities,” the instinct of self-preservation acts in connection with them all.
_Almost without exception the interest of workers centers in the wage. If they could retain their accustomed wage with less effort, they would do so. If the retention and increase depend on individual production, they will respond to the compulsion_.
Every student of psychology recognizes the fact that the wage is more than a means of self-preservation. Man is a distinctly social creature. He has a social self as well as an individual self. His social self demands social approval as much as his individual self demands bread, clothing, and shelter. In our
present industrial system this social distinc-
tion is most often indicated by means of monetary reward. The laborer not only demands
that his toil shall provide the means for self- preservation, but he seeks through his wages the social distinction which he feels to be his due. His desire for increase of wages is often partly, and in some instances mainly, due to his craving for distinction or social approval.
In such instances the wage is to be thought of as something comparable to the score of a ball player. The desire for a high score is sufficient motive to beget the most extreme exertion, even though the reward anticipated is nothing more than a sign of distinction and without any relationship whatever to self- preservation.
In common with some of the lower animals man has an instinct to collect and hoard all sorts of things. This instinct is spoken of in psychology as the hoarding or proprietary instinct. In performing instinctive acts we do so with enthusiasm, but blindly. We take great delight in the performing of the act, even though the ultimate result of the act
may be entirely unknown to us. The squirrel collects and stores nuts with great delight and industry. He has no idea of the approaching winter, but gathers the nuts simply because for him it is the most interesting process in his experience.
Most persons display a like instinctive tendency to make collections and hoard articles. This is particularly apparent in collections of such things as canceled postage
stamps, discarded buttons, pebbles, sticks, magazines, and other non-useful articles.
When this hoarding instinct is not controlled by reason or checked by other interests, we have the miser. In a less degree, we all share with the miser his hoarding instinct. We all like to collect money just as the squirrel likes to gather nuts. The octogenarian continues to collect money with unabated zeal, even though he be childless. He is probably not aware that he is collecting merely for the pleasure of collecting.
_Since the wage is the means ordinarily employed to awaken in workers the three instincts_
_of self-preservation, of social distinction, and of hoarding, it is not strange that an industrial age should regard it as the chief means of increasing efficiency_.
The employer has not attempted to discover what instincts were appealed to by the wage, or the most economical method of stimulating these instincts. He has not undervalued the wage in securing efficiency, but rather has assumed that the service secured must be in direct proportion to the amount expended.
Such an assumption is not warranted.
Of two employers with equal forces and payrolls one may receive much more and better
service than the other. It is not a question merely of how much is spent but how wisely it is spent. The wage secures service to the degree in which it awakens these fundamental instincts under consideration.
It is apparent, therefore, that other factors than the amount of money expended in wages are to be considered by every employer. Without increasing the pay roll he may increase the efficiency of his men. The employer who has
determined the number of men he needs and the wages he must pay has only begun to solve his labor problem.
In the preparation of the present chapter a large number of business men were interviewed personally or by correspondence.
One of the questions asked was: “How do you make the most of the wages paid your men?”
As subsidiary to this general question three other questions were asked: “In paying them do you base the amount to be received by each man upon a fixed salary? By some of the
men upon actual output–commissions or piecework rates? By some upon a combination including profit-sharing or bonus?”
The answers to these latter questions were not uniform even among employers engaged apparently in the same business and under very similar conditions. Some reported that all the methods suggested were used in their establishment. Factory hands were employed on piecework or on a premium or bonus basis where conditions permitted; office assistants
on fixed salaries; department managers upon a combination including profit sharing. The results reported, however, were far from uniform. The astounding feature was the diversity of opinion among successful managers
of employees. By various houses one or more of the systems had been tried under apparently favorable conditions and had been discarded. On the other hand each of the systems was advocated by equally successful business firms.
In judging of the relative merits of fixed salaries as compared with other methods the experiences of individual firms offer no certain data. The relative merits and demerits
are best disclosed by a psychological analysis of the manner in which the various devices appeal to the employee’s instincts and reason.
_When wages are based on commission, piece rate, or a bonus or premium system, the stimulus to action is constantly present. Every stroke of the hammer, every sale made, every figure added, increases the wage. The wage thus continuously beckons the worker to greater accomplishment_.
All other considerations lose in importance, and the mind becomes focused on output.
The worker is blinded to all other motives, and invariably sacrifices quality unless this be guarded by rigid inspection. The piecework or task system thus influences the worker directly and incessantly without regard for the particular instinct to which it may be appealing. Every increase in rate adds directly
to the means of self-preservation, of social distinction, and of the accumulation of
wealth.
_The worker with a fixed salary or wage does not feel as continuously the goad of his wage. It is less in mind and does not control his attitude toward his work. The man on a fixed
salary, therefore, will not produce so much_.
If he be a workman, he may take better care of his tools, keep his output up to a higher standard of quality, prepare himself for more responsible positions. If he be a salesman, he may be more considerate of his customers and hence really more valuable to his employer; he may be more loyal to the house and hence
promote the “team work” of the organization, and he may because of his more receptive state of mind be preparing himself for much greater usefulness to his house. If he be a superintendent, he may be more thoughtful of his
men, or more scrupulous for the future of the business.
Production methods or labor conditions are often such that piecework is impossible. There are many functions and processes which thus far have not been satisfactorily adjusted to task systems; there are others (the inspection service in a factory, for instance) where a premium on increased output would defeat the first purpose of the service. Where results can be accurately measured, however, and the quality of the service can be automatically secured or is not sacrificed by concentration upon quantity, the task system–whether
it take the form of piece rates, premiums, or bonus–has such superior psychological advantages that it will probably come more and
more into use.
Under the general heading quoted above–
“How do you make the most of the wages paid your employees?”–the following question was asked: “What special method do
you employ to make men satisfied or pleased with their wages?” The answers were most interesting and instructive. One manager having many thousand men in his organization narrated various methods by which he
kept in personal touch with his men, and turned this personal relationship to the advantage of the house.
One illustration will make clear the line he pursued. In the card catalogue of the employees, the birthday of each is noted, the
executive recognizing that for the average man this is an anniversary even more important than New Year’s.