TASK WORK WITH A BONUS.—­The Task work with Bonus system of compensation, which is the invention of Mr. H.L.  Gantt, is explained in “A Bonus System of Rewarding Labor,” paper 923, read before the American Society of Mechanical Engineers, December, 1901, by Mr. Gantt.  This system is there described as follows:—­

“If the man follows his instructions and accomplishes all the work laid out for him as constituting his proper task for the day, he is paid a definite bonus in addition to the day rate which he always gets.  If, however, at the end of the day he has failed to accomplish all of the work laid out, he does not get his bonus, but simply his day rate.”  This system of compensation is explained more fully in Chapter VI of Mr. Gantt’s book, “Work, Wages and Profits,” where he explains the modification now used by him in the bonus.

ADVANTAGES OF TASK WORK WITH A BONUS.—­The psychological advantage of the task with a Bonus is the fact that the worker has the assurance of a living wage while learning, no matter whether he succeeds in winning his bonus or not.  In the last analysis, it is “day rate” for the unskilled, and “piece rate” for the skilled, and it naturally leads to a feeling of security in the worker.  Mr. Gantt has so admirably explained the advantages, psychological as well as industrial, of his system, that it is unnecessary to go farther, except to emphasize the fine feeling of brotherhood which underlies the idea, and its expression.

THE DIFFERENTIAL BONUS SYSTEM.—­The Differential Bonus System of Compensation is the invention of Mr. Frederick A. Parkhurst, and is described by him in his book “Applied Methods of Scientific Management.”

“The time the job should be done in is first determined by analysis and time study.  The bonus is then added above the day work line.  No bonus is paid until a definitely determined time is realized.  As the time is reduced, the bonus is increased.”

THREE RATE WITH INCREASED RATE SYSTEM.—­The Three Rate System of Compensation is the invention of Mr. Frank B. Gilbreth and consists of day work, i.e., a day rate, or a flat minimum rate, which all who are willing to work receive until they can try themselves out; of a middle rate, which is given to the man when he accomplishes the work with exactness of compliance to prescribed motions, according to the requirements of his instruction card; and of a high rate, which is paid to the man when he not only accomplishes the task in accordance with the instruction card, but also within the set time and of the prescribed quality of finished work.

ADVANTAGE OF THIS SYSTEM.—­The advantage of this is, first of all, that the man does not have to look forward so far for some of his reward, as it comes to him just as soon as he has shown himself able to do the prescribed methods required accurately.  The first extra reward is naturally a stimulus toward winning the second extra reward.  The middle rate is a stimulus to endeavor to perform that method which will enable him easiest to achieve the accomplishment of the task that pays the highest wage.  The day rate assures the man of a living wage.  The middle rate pays him a bonus for trying to learn.  The high rate gives him a piece rate when he is skilled.