“had cost (for maintenance and renewals) at one of the main shops about $12,000 a year—or $1000 a month—and it was so poorly installed and supervised that there was an average of 12 breakdowns every working-day, each involving more or less disorganization of the plant in its part or as a whole.” The workmen in charge of the belts now received directions as to their charge from a general foreman, who received directions from an efficiency engineer. This engineer had derived his general information on the subject from a man who had made a special study of belts for nine years. He laid down a few general rules, requiring accurate records of breakdown, repair, and installation, full authority and responsibility for the special worker on belts, a better grade of work in installation and better operation of the belts. Under this method “the number of breakdowns declined from 12 each working-day to an average of 2 a day, not one of them serious ...and due to original defective installation, which it was impossible to remedy without unjustifiable expense.... The cost of maintaining belts fell from $1000 a month to $300 a month.”
This elimination of waste of human power, and in connection with it the elimination of waste of equipment and of machine power, have, then, in the course of the last thirty years, been studied and applied in this country in the way roughly outlined by Mr. Taylor, Mr. Gilbreth, Mr. Gantt, Mr. Sanford Thompson, Mr. Barth, Mr. Cook, and Mr. Hathaway; and in somewhat the same manner by Mr. Harrington Emerson, Mr. Edward Emerson, Mr. W.J. Power, Mr. Arion, Mr. Playfair, and Mr. Chipman. These engineers have developed methods which have made it possible for them to reorganize the various businesses mentioned which have consulted them, and to decrease their costs and increase their profits. It will be seen at once that the procedure of Scientific Management in determining by scientific analysis the rate of speed and the working conditions under which machine power and human energy can be at once most productively and continuously employed, is really new, and differs radically from former business management, however ably systematized.
“But these,” said Mr. Taylor, in speaking of the methods of Scientific Management, “are incidents in the course of Scientific Management. Its great underlying purpose is the achievement of prosperity for the workers and for the employers.” Mr. Taylor’s definition of prosperity, given on another occasion, is one of the finest the present writer has ever heard. “By a man’s prosperity, I mean his best use of his highest powers.”
It may be asked, after the efficiency of workers has been increased by scientific study, what provision is made by scientific study for their increased compensation. While Mr. Taylor was at the Bethlehem Steel Company, Mr. Henry L. Gantt, then engaged with him in reorganizing the Bethlehem Steel Works, first applied the Bonus and Task system of compensation, which may be described loosely as a premium paid if a certain predetermined amount be accomplished in a certain time. Its general principles are these:[48]—