Part 3

It is this combination of the initiative of the workmen, coupled with the new types of work done by the management, that makes scientific management so much more efficient than the old plan.

Three of these elements exist in many cases, under the management of "initiative and incentive," in a small and rudimentary way, but they are, under this management, of minor importance, whereas under scientific management they form the very essence of the whole system.

The fourth of these elements, "an almost equal division of the responsibility between the management and the workmen," requires further explanation. The philosophy of the management of initiative and incentive makes it necessary for each workman to bear almost the entire responsibility for the general plan as well as for each detail of his work, and in many cases for his implements as well. In addition to this he must do all of the actual physical labor. The development of a science, on the other hand, involves the establishment of many rules, laws, and formulae which replace the judgment of the individual workman and which can be effectively used only after having been systematically recorded, indexed, etc. The practical use of scientific data also calls for a room in which to keep the books, records*, etc., and a desk for the planner to work at.

[*Footnote: For example, the records containing the data used under scientific management in an ordinary machine-shop fill thousands of pages.]

Thus all of the planning which under the old system was done by the workman, as a result of his personal experience, must of necessity under the new system be done by the management in accordance with the laws of the science; because even if the workman was well suited to the development and use of scientific data, it would be physically impossible for him to work at his machine and at a desk at the same time. It is also clear that in most cases one type of man is needed to plan ahead and an entirely different type to execute the work.

The man in the planning room, whose specialty under scientific management is planning ahead, invariably finds that the work can be done better and more economically by a subdivision of the labor; each act of each mechanic, for example, should be preceded by various preparatory acts done by other men. And all of this involves, as we have said, "an almost equal division of the responsibility and the work between the management and the workman."

To summarize: Under the management of "initiative and incentive" practically the whole problem is "up to the workman," while under scientific management fully one-half of the problem is "up to the management."

Perhaps the most prominent single element in modern scientific management is the task idea. The work of every workman is fully planned out by the management at least one day in advance, and each man receives in most cases complete written instructions, describing in detail the task which he is to accomplish, as well as the means to be used in doing the work. And the work planned in advance in this way constitutes a task which is to be solved, as explained above, not by the workman alone, but in almost all cases by the joint effort of the workman and the management. This task specifies not only what is to be done but how it is to be done and the exact time allowed for doing it. And whenever the workman succeeds in doing his task right, and within the time limit specified, he receives an addition of from 30 per cent to 100 per cent to his ordinary wages. These tasks are carefully planned, so that both good and careful work are called for in their performance, but it should be distinctly understood that in no case is the workman called upon to work at a pace which would be injurious to his health. The task is always so regulated that the man who is well suited to his job will thrive while working at this rate during a long term of years and grow happier and more prosperous, instead of being overworked. Scientific management consists very largely in preparing for and carrying out these tasks.

The writer is fully aware that to perhaps most of the readers of this paper the four elements which differentiate the new management from the old will at first appear to be merely high-sounding phrases; and he would again repeat that he has no idea of convincing the reader of their value merely through announcing their existence. His hope of carrying conviction rests upon demonstrating the tremendous force and effect of these four elements through a series of practical illustrations. It will be shown, first, that they can be applied absolutely to all classes of work, from the most elementary to the most intricate; and second, that when they are applied, the results must of necessity be overwhelmingly greater than those which it is possible to attain under the management of initiative and incentive.

The first illustration is that of handling pig iron, and this work is chosen because it is typical of perhaps the crudest and most elementary form of labor which is performed by man. This work is done by men with no other implements than their hands. The pig-iron handler stoops down, picks up a pig weighing about 92 pounds, walks for a few feet or yards and then drops it on to the ground or upon a pile. This work is so crude and elementary in its nature that the writer firmly believes that it would be possible to train an intelligent, gorilla so as to become a more efficient pig-iron handler than any man can be. Yet it will be shown that the science of handling pig iron is so great and amounts to so much that it is impossible for the man who is best suited to this type of work to understand the principles of this science, or even to work in accordance with these principles without the aid of a man better educated than he is. And the further illustrations to be given will make it clear that in almost all of the mechanic arts the science which underlies each workman's act is so great and amounts to so much that the workman who is best suited actually to do the work is incapable (either through lack of education or through insufficient mental capacity) of understanding this science. This is announced as a general principle, the truth of which will become apparent as one illustration after another is given. After showing these four elements in the handling of pig iron, several illustrations will be given of their application to different kinds of work in the field of the mechanic arts, at intervals in a rising scale, beginning with the simplest and ending with the more intricate forms of labor.

One of the first pieces of work undertaken by us, when the writer started to introduce scientific management into the Bethlehem Steel Company, was to handle pig iron on task work. The opening of the Spanish War found some 80,000 tons of pig iron placed in small piles in an open field adjoining the works. Prices for pig iron had been so low that it could not be sold at a profit, and it therefore had been stored. With the opening of the Spanish War the price of pig iron rose, and this large accumulation of iron was sold. This gave us a good opportunity to show the workmen, as well as the owners and managers of the works, on a fairly large scale the advantages of task work over the old-fashioned day work and piece work, in doing a very elementary class of work.

The Bethlehem Steel Company had five blast furnaces, the product of which had been handled by a pig-iron gang for many years. This gang, at this time, consisted of about 75 men. They were good, average pig-iron handlers, were under an excellent foreman who himself had been a pig-iron handler, and the work was done, on the whole, about as fast and as cheaply as it was anywhere else at that time.

A railroad switch was run out into the field, right along the edge of the piles of pig iron. An inclined plank was placed against the side of a car, and each man picked up from his pile a pig of iron weighing about 92 pounds, walked up the inclined plank and dropped it on the end of the car.

We found that this gang were loading on the average about 12 and a half long tons per man per day. We were surprised to find, after studying the matter, that a first-class pig-iron handler ought to handle between 47, and 48 long tons per day, instead of 12 and a half tons. This task seemed to us so very large that we were obliged to go over our work several times before we were absolutely sure that we were right. Once we were sure, however, that 47 tons was a proper day's work for a first-class pig-iron handler, the task which faced us as managers under the modern scientific plan was clearly before us. It was our duty to see that the 80,000 tons of pig iron was loaded on to the cars at the rate of 47 tons per man per day, in place of 12 and a half tons, at which rate the work was then being done. And it was further our duty to see that this work was done without bringing on a strike among the men, without any quarrel with the men, and to see that the men were happier and better contented when loading at the new rate of 47 tons than they were when loading at the old rate of 12 and a half tons.

Our first step was the scientific selection of the workman. In dealing with workmen under this type of management, it is an inflexible rule to talk to and deal with only one man at a time, since each workman has his own special abilities and limitations, and since we are not dealing with men in masses, but are trying to develop each individual man to his highest state of efficiency and prosperity. Our first step was to find the proper workman to begin with. We therefore carefully watched and studied these 75 men for three or four days, at the end of which time we had picked out four men who appeared to be physically able to handle pig iron at the rate of 47 tons per day. A careful study was then made of each of these men. We looked up their history as far back as practicable and thorough inquiries were made as to the character, habits, and the ambition of each of them. Finally we selected one from among the four as the most likely man to start with. He was a little Pennsylvania Dutchman who had been observed to trot back home for a mile or so after his work in the evening about as fresh as he was when he came trotting down to work in the morning. We found that upon wages of $1.15 a day he had succeeded in buying a small plot of ground, and that he was engaged in putting up the walls of a little house for himself in the morning before starting to work and at night after leaving. He also had the reputation of being exceedingly "close," that is, of placing a very high value on a dollar. As one man whom we talked to about him said, "A penny looks about the size of a cart-wheel to him." This man we will call Schmidt.

The task before us, then, narrowed itself down to getting Schmidt to handle 47 tons of pig iron per day and making him glad to do it. This was done as follows. Schmidt was called out from among the gang of pig-iron handlers and talked to somewhat in this way:

"Schmidt, are you a high-priced man?"

"Vell, I don't know vat you mean."

"Oh yes, you do. What I want to know is whether you are a high-priced man or not."

"Vell, I don't know vat you mean."

"Oh, come now, you answer my questions. What I want to find out is whether you are a high-priced man or one of these cheap fellows here. What I want to find out is whether you want to earn $1.85 a day or whether you are satisfied with $1.15, just the same as all those cheap fellows are getting."

"Did I vant $1.85 a day? Vas dot a high-priced man? Vell, yes, I vas a high-priced man."

"Oh, you're aggravating me. Of course you want $1.85 a day--every one wants it! You know perfectly well that that has very little to do with your being a high-priced man. For goodness' sake answer my questions, and don't waste any more of my time. Now come over here. You see that pile of pig iron?"

"Yes."

"You see that car?"

"Yes."

"Well, if you are a high-priced man, you will load that pig iron on that car tomorrow for $1.85. Now do wake up and answer my question. Tell me whether you are a high-priced man or not."

"Vell, did I got $1.85 for loading dot pig iron on dot car to-morrow?"

"Yes, of course you do, and you get $1.85 for loading a pile like that every day right through the year. That is what a high-priced man does, and you know it just as well as I do."

"Vell, dot's all right. I could load dot pig iron on the car to-morrow for $1.85, and I get it every day, don't I?"

"Certainly you do--certainly you do."

"Vell, den, I vas a high-priced man."

"Now, hold on, hold on. You know just as well as I do that a high-priced man has to do exactly as he's told from morning till night. You have seen this man here before, haven't you?"

"No, I never saw him."

"Well, if you are a high-priced man, you will do exactly as this man tells you tomorrow, from morning till night. When he tells you to pick up a pig and walk, you pick it up and you walk, and when he tells you to sit down and rest, you sit down. You do that right straight through the day. And what's more, no back talk. Now a high-priced man does just what he's told to do, and no back talk. Do you understand that? When this man tells you to walk, you walk; when he tells you to sit down, you sit down, and you don't talk back at him. Now you come on to work here to-morrow morning and I'll know before night whether you are really a high-priced man or not."

This seems to be rather rough talk. And indeed it would be if applied to an educated mechanic, or even an intelligent laborer. With a man of the mentally sluggish type of Schmidt it is appropriate and not unkind, since it is effective in fixing his attention on the high wages which he wants and away from what, if it were called to his attention, he probably would consider impossibly hard work.

What would Schmidt's answer be if he were talked to in a manner which is usual under the management of "initiative and incentive"? say, as follows:

"Now, Schmidt, you are a first-class pig-iron handler and know your business well. You have been handling at the rate of 12 and a half tons per day. I have given considerable study to handling pig iron, and feel sure that you could do a much larger day's work than you have been doing. Now don't you think that if you really tried you could handle 47 tons of pig iron per day, instead of 12 and a half tons?"

What do you think Schmidt's answer would be to this?

Schmidt started to work, and all day long, and at regular intervals, was told by the man who stood over him with a watch, "Now pick up a pig and walk. Now sit down and rest. Now walk--now rest," etc. He worked when he was told to work, and rested when he was told to rest, and at half-past five in the afternoon had his 47 and a half tons loaded on the car. And he practically never failed to work at this pace and do the task that was set him during the three years that the writer was at Bethlehem. And throughout this time he averaged a little more than $1.85 per day, whereas before he had never received over $1.15 per day, which was the ruling rate of wages at that time in Bethlehem. That is, he received 60 per cent. higher wages than were paid to other men who were not working on task work. One man after another was picked out and trained to handle pig iron at the rate of 47 and a half tons per day until all of the pig iron was handled at this rate, and the men were receiving 60 per cent. more wages than other workmen around them.

The writer has given above a brief description of three of the four elements which constitute the essence of scientific management: first, the careful selection of the workman, and, second and third, the method of first inducing and then training and helping the workman to work according to the scientific method. Nothing has as yet been said about the science of handling pig iron. The writer trusts, however, that before leaving this illustration the reader will be thoroughly convinced that there is a science of handling pig iron, and further that this science amounts to so much that the man who is suited to handle pig iron cannot possibly understand it, nor even work in accordance with the laws of this science, without the help of those who are over him.

The writer came into the machine-shop of the Midvale Steel Company in 1878, after having served an apprenticeship as a pattern-maker and as a machinist. This was close to the end of the long period of depression following the panic of 1873, and business was so poor that it was impossible for many mechanics to get work at their trades. For this reason he was obliged to start as a day laborer instead of working as a mechanic. Fortunately for him, soon after he came into the shop the clerk of the shop was found stealing. There was no one else available, and so, having more education than the other laborers (since he had been prepared for college) he was given the position of clerk. Shortly after this he was given work as a machinist in running one of the lathes, and, as he turned out rather more work than other machinists were doing on similar lathes, after several months was made gang boss over the lathes.

Almost all of the work of this shop had been done on piece work for several years. As was usual then, and in fact as is still usual in most of the shops in this country, the shop was really run by the workmen, and not by the bosses. The workmen together had carefully planned just how fast each job should be done, and they had set a pace for each machine throughout the shop, which was limited to about one-third of a good day's work. Every new workman who came into the shop was told at once by the other men exactly how much of each kind of work he was to do, and unless he obeyed these instructions he was sure before long to be driven out of the place by the men.

As soon as the writer was made gang-boss, one after another of the men came to him and talked somewhat as follows:

"Now, Fred we're very glad to see that you've been made gang-boss. You know the game all right, and we're sure that you're not likely to be a piece-work hog. You come along with us, and every-thing will be all right, but if you try breaking any of these rates you can be mighty sure that we'll throw you over the fence."

The writer told them plainly that he was now working on the side of the management, and that he proposed to do whatever he could to get a fair day's work out of the lathes. This immediately started a war; in most cases a friendly war, because the men who were under him were his personal friends, but none the less a war, which as time went on grew more and more bitter. The writer used every expedient to make them do a fair day's work, such as discharging or lowering the wages of the more stubborn men who refused to make any improvement, and such as lowering the piece-work price, hiring green men, and personally teaching them how to do the work, with the promise from them that when they had learned how, they would then do a fair day's work. While the men constantly brought such pressure to bear (both inside and outside the works) upon all those who started to increase their output that they were finally compelled to do about as the rest did, or else quit. No one who has not had this experience can have an idea of the bitterness which is gradually developed in such a struggle. In a war of this kind the workmen have one expedient which is usually effective. They use their ingenuity to contrive various ways in which the machines which they are running are broken or damaged--apparently by accident, or in the regular course of work--and this they always lay at the door of the foreman, who has forced them to drive the machine so hard that it is overstrained and is being ruined. And there are few foremen indeed who are able to stand up against the combined pressure of all of the men in the shop. In this case the problem was complicated by the fact that the shop ran both day and night.

The writer had two advantages, however, which are not possessed by the ordinary foreman, and these came, curiously enough, from the fact that he was not the son of a working man.

First, owing to the fact that he happened not to be of working parents, the owners of the company believed that he had the interest of the works more at heart than the other workmen, and they therefore had more confidence in his word than they did in that of the machinists who were under him. So that, when the machinists reported to the Superintendent that the machines were being smashed up because an incompetent foreman was overstraining them, the Superintendent accepted the word of the writer when he said that these men were deliberately breaking their machines as a part of the piece-work war which was going on, and he also allowed the writer to make the only effective answer to this Vandalism on the part of the men, namely: "There will be no more accidents to the machines in this shop. If any part of a machine is broken the man in charge of it must pay at least a part of the cost of its repair, and the fines collected in this way will all be handed over to the mutual beneficial association to help care for sick workmen." This soon stopped the willful breaking of machines.