PROMOTION MAY BE TO PLACES WITHIN OR WITHOUT THE BUSINESS.—­In many lines of business, the business itself offers ample opportunity for promoting all men who can “make good” as rapidly as they can prepare themselves for positions over others, and for advancement; but under Scientific Management provision is made even in case the business does not offer such opportunities.[5] This is done by the management finding places outside their own organization for the men who are so trained that they can be advanced.

SUCH PROMOTION ATTRACTS WORKERS.—­While at first glance it might seem a most unfortunate thing for the management to have to let its men go, and while, as Dr. Taylor says, it is unfortunate for a business to get the reputation of being nothing but a training school, on the other hand, it has a very salutary effect upon the men to know that their employers are so disinterestedly interested in them that they will provide for their future, even at the risk of the individual business at which they have started having to lose their services.  This will not only, as Dr. Taylor makes clear, stimulate many men in the establishment whose men go on to take the places of those who are promoted, but will also be a great inducement to other men to come into a place that they feel is unselfish and generous.

SUBDIVISIONS OF “PAY.”—­Under “Pay” we have included eight headings: 

1.  Wages 2.  Bonus 3.  Shorter hours 4.  Prizes other than money 5.  Extra knowledge 6.  Method of attack 7.  Good opinion of others 8.  Professional standing.

RELATION BETWEEN WAGES AND BONUS.—­Wages and bonus are closely related.  By wages we mean a fixed sum, or minimum hourly rate, that the man gets in any case for his time, and by bonus we mean additional money that he receives for achievement of method, quantity or quality.  Both might very properly be included under wages, or under money received for the work, or opportunities for receiving money for work, as the case might be.  In the discussion of the different ways of paying wages under Scientific Management, there will be no attempt to discuss the economic value of the various means; the different methods will simply be stated, and the psychological significance will be, as far as possible, given.

Before discussing the various kinds of wages advised by the experts in Scientific Management, it is well to pause a moment to name the various sorts of methods of compensation recognized by authorities.  David F. Schloss in his “Method of Industrial Remuneration” divides all possible ways of gaining remuneration into three—­

    1. the different kinds of wages
       1. time wage
       2. piece wage
       3. task wage
       4. progressive wage
       5. collective piece wage
       6. collective task wage
       7. collective progressive wage
       8. contract work
       9. cooeperative work

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