y-

2 "tt

SEP 30

1971

run ONTARIO INSTITUTE

FOR STUDIES

IN

EDUCATION

HARVARD

BUSINESS STUDIES
VOLUME

SCIENTIFIC

MANAGEMENT

A COLLECTION OF THE
MORE SIGNIFICANT ARTICLES DESCRIBING
THE TAYLOR SYSTEM OF MANAGEMENT

EDITED BY

CLARENCE BERTRAND THOMPSON, LL.B., A.M.

LECTURER ON MANUFACTURING IN HARVARD UNIVERSITY

CAMBRIDGE
HARVARD UNIVERSITY PRESS
LONDON: HUMPHREY MILFORD
Oxford UravERsiTY Prxss

1914

COPYRIGHT, I914

HARVARD UNIVERSITY PRESS

PREFACE
The

Taylor system of industrial organization, to which the

"
"
has been applied and by
Scientific Management

name

which

generally known, has become a subject of intense

business men and students of management.

it is

to

interest

During the past

fifteen years the

movement has been

veloping a fairly extensive Hterature.

main

authorities

available

de-

Fortunately the
the classics on the subject
are easily

Taylor's Shop Management, Principles of Scientific

Management, Art of Cutting Metals, and Gantt's Work, Wages
and Profits. A thorough mastery of these is indispensable to
a real knowledge of Scientific Management.
There is a wide-spread demand, however, for more de:

information regarding certain phases of Scientific

"
Practical
Management than is given in these books.
tailed

men" want

know

what is meant by such phrases

as "elementary time study" and "functional foremanship."
They want to know also how the system has actually worked
to

in the industries to

exactly

which

it

has been applied.

Thorough

students of industrial development wish to know more of

the theory underlying this latest type of organization.
The
public at large is interested in the social and economic
bearings of the movement, particularly in its favorable effect

on the welfare
the

community

Something
jects.

and

of the laboring classes and, through them, of

as a whole.

of value has been published

on

all

these sub-

It is scattered, however,

official

reports and

in

through many magazines

books on other subjects. Much of

either out of print or in technical periodicals difficult of

access to the layman.
it is

PREFACE

vi

It is the editor's aim to bring together in this volume the

best (in some cases the only) articles available to meet
the varied demands enumerated above.
The variety of the
demand accounts for the variety of the offering. Editorial
efifort

has been applied to the selection of material, conden-

sation

where practicable, and comment only when necessary

for fuUer understanding or for correction of errors of fact or

The result,

a useful supplement to the

standard works of Taylor and Gantt referred to above.
It remains but to render grateful acknowledgment to the
theory.

it is

hoped,

is

authors and publishers to whom detailed credit is given in

the body of this book, and to Edwin F. Gay, Dean of the

Graduate School of Business Administration of Harvard

University, without whose stimulus and encouragement the
editor would probably never have found the time to finish
this task.

C.
Boston, Mass., August, 1914.

Bertrand Thompson.

CONTENTS
PACK

^The Literature of SciENnnc Management.

(Reprinted from

Quarterly Journal of Economics)

By C. Bertrand Thompson

Industrial Administration and Scientific Management.

printed from Machinery)
By Forrest
I.

II.

III.

What

Constitutes Scientific

(Re-

49

E. Cardullo

Management

Caupes of Industrial Inefficiency

Consideration of the Most Important Objections to Scientific

Management

49
66
84

Unsystematized, Systematized, and SciENTinc Manageicent.

(Address before the Amos Tuck School of Administration and
Finance)

103
By Henry

I.

II.

III.

P.

Kendall

Unsystematized Management
Systematized Management

104

no

Scientific

Management
The Science of Management,

115

(By permission

of the

American

Society of Naval Engineers)

By Lieut. G. J. Meyers, U. S. N.
Diagrams: Laws of Management (151); Relation of Depart-

ments

132

(152).

The Present State of the Art of Industrial Management.

(Majority Report of the Sub-Committee on Administration
American Society of Mechanical Engineers, 1912)

of the

Appendixes
Discussion

175

Management Principles and the Consulting Engineer.

(Re-

printed from the Engineering Magazine)

By Charles Day

Scientific

Management

in Business.

205

(Reprinted from the Review

of Reviews)

217
By

153
171

a.

W. Shaw

History of the Introduction of a System of Shop Management.

(Presidential Address to the American Society of
Mechanical Engineers)

226

By Jakes Mapes Dodge

An

Object Lesson in Efficiency

232

By Wilfred Lewis
vil

CONTENTS

viu

PAGE

On the Art

of Cutting Metals.
(Presidential Address to the
American Society of Mechanical Engineers, December,
1906)

242
By Frederick W. Taylor

Prerequisites to the Introduction of Scientific Management.

(Reprinted from the Engineering Magazine)

270

By H. K. Hathaway

On the Art
of

The

of Cutting Metals.
Mr. Taylor's paper)

(Selections

from the Discussion

279

which Scientific Management should be Approached.

(Address before the Amos Tuck School of

Spirit in

Administration and Finance)

286

By James Mapes Dodge

The Successful Operation of a System of

ment.

(By permission

of the

Scientific

American Society

Manageof

Naval
296

Engineers)
By

Lieut.

Frank W. Sterling

Diagrams: Functional Plan of Organization (298); SpeciEstimate (303) Order Sheet (304) Bill of Material (305)
Copying Order (306) Purchase Tickler (307)
Purchase Tickler (308); Arrangement of Planning Department (311); Bill of Material (312); Route Sheet (314); Master
Time Card (315); Route Tag (316); Stores Issue SUp (317);
Time Card (318); Reverse of Time Card (319); Machine
Shop DupUcate Time Card (320); Move Card (321); Worked
Material Issue SUp (322); Shaft Sketch (323); Inspector's
Shp (324); Contract Job Time Card (325); Reverse of
DupUcate, Contract Time Card (326); Balance of Stores
Sheet (327); Method of Keeping Balance of Stores Sheet
(330); Requisition for Stores (331); Y-Order (332); Bin Tag
(333)} Reverse of Bin Tag (334); Storekeeper's Receipt
fication for

(335)5

Worked

Stores Credit Slip (336);

Materials Credit

Slip (337); Job Order Tag (338); Foundry Tag (338); Notification of Stores Receipt (339)
Report of Freight Receipts
(340)
Daily Shipping List (341) ; Progress of Work Kept
;

by Production Clerk (343) Tickler (344) Total Selling Cost

of Job (34s)
Machine Card (346) Contract Cost Summary
(347); Pay Card (348); Old D. M. Time Card (348); D. W.
Time Card for Bonus Work (349) Reverse of Time Card for
Bonus Work (349); Weekly Summary of Shop Cost (350);
Monthly Cost Sheet of Worked Materials; Accounts of Contract (351); Monthly Cost Sheet for Drawing and Erection
;

Accounts of Contracts (352); New Form, Summary of Contract Cost (354); Old Form, Summary of Contract Cost
(355); Contract Cost Summary (358).

Appendix
I

360

CONTENTS

ix
PAGE

The Planning Department,

Its Orgajjization
(Reprinted from Industrial Engineering)
By H. K. Hathaway

The Foreman's Place

in Scientific

and Function.
366

Management.

(Reprinted

from Industrial Engineering)

395

Slide Rules for the Machine Shop as a Part of the Taylor

System of Management. (By permission of The American
Society of Mechanical Engineers)

405

By Carl G. Barth

Graphic Representation for Two Equations

Rule for a Machine Shop (411); Same (facing
page 412); Earth's Time SKde Rule (416); Earth's Speed
Slide Rule (417); Gear Slide Rule (418).

Diagrams:

(408); Slide

Graphical Daily Ealance in Manufacture. (Ey permission

The American Society of Mechanical Engineers)
By H.

L.

of

420

Gantt

Diagrams: Foundry Production Sheet (facing page 422);

A. L. Co. Production Sheet (facing page 423); Production
Sheet when Works are short of Frame Drilling Capacity
(facing page 424);

Day Work Card

(427).

Discussion

The Tool Room under

430
Scientific

Management.

(Reprinted from

Industrial Engineering)
By Robert THimsTON Kent

434

Fig. I, Rack for lathe and planer tools (437); Fig. 2, Rack
with boxes, drawers, and trays for boring and drilling tools
(439) Fig. 3, Rack for tools of various classes, having drawers
;

for stocking milling cutters (441) Fig. 4, Rack showing adaptation of standard boxes for stocking holding-down bolts, etc.
;

(443); Fig. 5, Rack with compartments for jigs and templates (445); Fig. 7, Approved Plan of Tool Room for Shop
of 100 Machinists (447) Fig. 8, Recommended Arrangement
of Tool Grinder (448).
;

Nomenclature of Machine Details.

American Society

(By permission

of

The

of Mechanical Engineers)

452

By Oberun Smith

Diagrams: Symbol Table

Classification and Symbolization.
By
I.

C.

(458);

Symbol Table B

(459).

(Reprinted from System)

461

Bertrano Tboupson

Giving a Business a Memory; How Materials, Processes, and

the Functions of an Organization are Given Places and Identities

Diagram: Functional

461
Classification of a Factory (469).

CONTENTS

PAGE
II.

for Business Facts; What

does for a Factory or Store

Memory Tags

a Right

tion

and

System

Classifica-

How

to

Make

One

III.

470
Diagram: Symbol Table for Departments and Details (479).
Taking Factory Costs Apart; How to Analyze, Classify, and
Charge Expenses According to What They should Buy
480
Symbol Tables (485, 486); Detailed Diagram of Symbols
.

(489).

IV. Listing Stocks to Index Wastes: How Classification of Materials Cuts the Capital Investment and Insures a Constant

Supply
Diagrams:

490

Symbol Table

of Stores (493); for Printing

Plant (49s) of Various Stores (496) of Inks (496, 497) of
Paper (497, 498); for a Machine Shop (499, 500, 501).
;

V. Keeping Tab on Finished Parts; How Mnemonic Classification of Products Saves Time and Prevents Error in Factory

and

Oflfice

501

Diagrams: Molding Machines (503, 504); Table

for

Con-

struction (507).

VI. Right FiUng and Easy Finding; How a Logical Mnemonic

Classification Expedites the Handling of Records and Corre-

spondence
Diagrams: S3mibol Tables, Construction (513, 514, 515);

508

Advertising (517).

Elementary Time Study as a Part of the Taylor System of

Scientific Management.
(Reprinted from Industrial En520

gineering)

By H. K. Hathaway
Tables:

Classified

Elementary Time Units

for

Fitting

Drills with or without Sleeves (531) Tool List (533) ; Classified Elementary Time Units for Clamping Work to Drill Press
;

Tables (534-535); Time on Screwing a Nut (536); Machine

Handling Time for Betts Horizontal Boring Mill (538, 539);
Instruction Card for Operation (540, 541).

Scientific

Management

in Retailing.
By

C.

(Reprinted from System)

544

Bertrand Thompson

Introduction
Cost Classification for Retail Stores
Tables: Expense Classification (554); Expense Symbol
Tables (555-558).
II. Making Departments Pay Their Share
Tables: Bases of Distribution of Expenses (566) AccountI.

544
548

560

ing Department Symbols (567); Salary Symbols (568).

III.

Stockhandling System for Merchandise

Tables: Base Sheet for Kitchen Ware Department (576);

for

Grocery Department (576);

Shoes (578). J

for Stationery (577);

for

568

CONTENTS

xi
PAGE

SciENTiric

Management

in the. Operation of Railroads.

(Re-

printed from the Qtiarterly Journal of Economics)

By William J. Cunningham

580

Table: Cost of Locomotive Repairs and Renewals (587).

The

Application of Scientific Management to a Railway Shop.

(Reprinted from the Railway Age Gazette)
By H.

The Railways and

Scientific

Management.

(Reprinted from

Engineering and Contracting)

The Mistakes of the

I.

II.

III.

610

Efficiency Men.

(Reprinted from the

Railway Age Gazette)

Extravagant Statements and Claims
Neglect of the Human Element

615
615
617
621

Unscientific

IV. Impatience for Results

V. Neglect of Large Factors
VI. Incompetent Counsel

624
625
628

Conclusion
Scientific

630

Management.

(Reprinted from the Railway Age Gazette)

By

600

F. Stimpson

F.

632

Lincoln Hutchins

Piece Rate System: Being a Step Toward Partial Solution

OF the Labor Problem. (By permission of The American
Society of Mechanical Engineers)

636

By Fkedeuck W. Taylor

Index to Paragraphs
Discussion
Tables: Analysis of Man and Machine
of Production per Lathe per Day (662).

Wages and Wage Systems

as Incentives.

639
666

Work

(652);

Cost

(Reprinted from Sys-

tem)

684
By

C.

Behtsand Tboupson

Scientific Management to the Wage Prob(Reprinted from the Journal of Political Economy)

The Relation of
lem.

By

C.

Scientific Management and the Wage-Earner.

XhQ Journal of Political Economy)
By Frank T. Carlton

Another Side of Efficiency Engineering.

(Reprinted from

720

(Reprinted from The

American Machinist)
By Dexter

734
S.

Kimball

Principles of the New Industrial Efficiency

Some Claims of the Advocates of the New Methods
Parallel

706

Bektkamd Thompson

....

736
737

between Labor-saving Machinery and Labor-saving

Management

738

CONTENTS

xii

PAGE

The Taylor System of Shop Management at the Watertown

Arsenal.
Appendix I to Report of the Chief of Ordnance, 1913
Extract from the Report of the Chief of Ordnance, 191 1
Extract from the Report of the Chief of Ordnance, 191 2
Tables: Premiums Earned during May, 1913, by Molders
in Machine Shop (795-798) by Craneman and by
(795)
.

741

771

788

Chipper (798) by Machinists' Helpers (798) by Laborers

and by Rigger (799) by Fireman, by Teamsters, Blacksmiths
and Blacksmith Helpers (800); by Carpenters (801).
;

Scientific

Management

printed

as Applied to Women's Work.

(Refrom Making Both Ends Meet, The Macmillan

Company)

807

By Sue Ainslee Clark and Edith Wyatt

Table:

Women's Wage

Increase (830).

Scientific Management as Viewed from the Workman's Standpoint.

(Reprinted from Industrial Engineering)

"

835

Preface to the French Edition of The Principles of Scientific Management," by Frederick W. Taylor

842

By Henri Le Chateuer

Bibliography of Scientific Management

By
I.

C.

Development and Theory

II.

Scientific

III.

Scientific

of Scientific Management
Management in Operation
Management and the Railroads

IV. Methods
V. Personal Factor in Scientific
VI.

Scientific

863

Bertrand Thompson

Management

Management and Organized Labor

....

863
868

869
871
875

877

SCIENTIFIC

MANAGEMENT

MANAGEMENT

SCIENTIFIC

THE LITERATURE OF SCIENTIFIC

MANAGEMENT
By

C.

BERTRAND THOMPSON

Reprinted by permission of Quarterly Journal of Economics

Any

discussion of the literature of scientific

management

is

confronted at the outset with the question, What is scientific

management ? The development of the factory system brought

with

it

many new problems

connected with the organization and

management of labor, the structure and equipment of factories,

and the technique of production. By successful manufacturers
these problems have always been solved in a way to make manuEarly solutions, however, were
facturing at a profit possible.
With the enormous increase
necessarily crude and roughshod.
in demand for manufactured products, in the investment of
capital,

and

in the

number

of

men engaged

in the business,

with

of ever-keener competition, the early

the consequent development

methods have been found insufficient.
Especially within the
last twenty years a degree of skill and technical training has been
brought to bear upon the solution of factory problems which has
made modem factory management a thing much more elaborate,
A series of improvements
refined, and effective than ever before.
in administration and methods have been made by many engineers and managers, and not a few of them have been developed
Where,
by a method which might truly be called scientific.
then, can we draw the Une between modem management in
"
scientific
general and what has come to be known technically as
"

management ?
Out of the mass

and managers who are responsible

grown a group originating
with Mr. Frederick W. Taylor of Philadelphia, who have perfor present-day

of engineers

methods, there has

SCIENTIFIC

MANAGEMENT

ceived certain principles underlying the practices of management

hitherto unrelated and uncoordinated.
A collation of isolated
successful experiments in various details of factory administration and methods has apparently shown a possibility of classifica-

and generaHzation. Such classification and generalization

are the basis for the development of a science, and the term
"
"
is apphed generally to the
scientific management
body of
from
deduced
Mr.
and
the
experience by
principles
Taylor,
and
associated
with
trained
and
to
the
methods
by him,
engineers
"
Scienby which the resultant principles are appHed to industry.
tific management," therefore, is distinctively scientific, since it
aims to correlate and systematize all the best of modern developments in factory administration, and to push development
tion

further in accordance with the principles discovered.^

On the basis of this definition it is not difficult to select that

portion of the large current Hterature of factory management

which deals with scientific management from that other portion
which describes and outlines the many unrelated improvements,

methods, and principles which are continually being evolved.

The Hterature of scientific management as such is that which has

been pubHshed by those who approach the subject in a scientific

manner. Of these Mr. Taylor is the acknowledged pioneer and
leader both in practice and theory.^
The hterature of scientific management

written

growing

is

found in a few books

by practitioners of the science, a few official reports

out of disputes as to railroad rates and labor difficulties,

technical articles which have appeared in the transactions of

engineering societies and in engineering and other technical
"
"
magazines, and a considerable mass of popular articles written
to satisfy the recent wide-spread interest in the subject.
These books and articles may be classified, for the purposes of

the present review, in six groups.

"

1
Mr. Charles B. Going has published an article, The Efl&ciency Movement
an Outline," Transactions, The EflSciency Society, vol. i, p. ii, showing the place of
scientific management in the modern developments of factory organization and
pointing out the common element in many movements.
^
With the possible sporadic exception of Charles Babbage, whose book, The
Economy of Manufactures, was published in 1832, fifty years ahead of its time.

MANAGEMENT

SCIENTIFIC

The

group includes those incidental to or dealing with the

development and theory of scientific management as a whole.
first

It consists of the original publications of the pioneers and such

popular statements as reveal a clear grasp of the movement.^

The second group includes descriptions of scientific management in operation, written as a rule by managers of plants which
have developed the system.

As a result of the injection of scientific management into the

discussion of railroad rates, there has arisen a considerable body of
literature
railroads.

on the possibihty of the appUcation of the system to

This is of sufficient consequence to constitute the

third class.

In the fourth class are the

methods which are

many

detailed descriptions of

either distinctive of scientific

though not peculiar to

assimilated

by it into
Those methods of

scientific

its

own

management, or,
management, coordinated and

system.

scientific

management which

affect

most

directly the human factor in production have stimulated a literature which is of sufficient importance to warrant being put into a
fifth class

by

itself.

In the sixth and last group

with the relation of

is

the series of discussions dealing

management to organized labor.

The more important books and articles are discussed briefly
scientific

Others not sufficiently distinctive or noteworthy

for special review, but important for students of the

in the text.

to call

movement, are

I.

The

referred to in the notes.

together cover nearly ninety per cent of

lished on the subject in EngUsh.^

all

text

and notes

that has been pub-

Development and Theory of Scientific

Management

as a

Whole

In 1832, Charles Babbage, the eminent mathematician, published a book ' in which he attempted to deduce from the practice
*
Many of the popular articles are evident pot-boilers, too ill-cwnsidered and
ephemeral to be worthy of discussion and preservation.
*
Practically everything of any consequence is included in the bibliography at
the end of this volume.

The Economy of Manufactttres.

Chas. Knight, London, 1832.

(Out of

print.)

SCIENTIFIC

MANAGEMENT

manufacturing as it existed in his time, the general underlying

This piece of work,
principles which apparently controlled it.
of

of modern advance, was so far ahead of

the state of contemporary manufacturing intelligence that its
significance was entirely overlooked, and it is only today that the

though crude in the Ught

force of his analysis

the

modern group

is

Although it does not appear that

managers are in the slightest degree

evident.

ol scientific

indebted to Babbage's work,

it is

interesting to observe in

suggestion of the extension of specialization

to mental labor, which

it

the

beyond manual labor

at the basis of the Taylor doctrines of

functional foremanship and the separation of planning from

execution.

Babbage

is

also foreshadows the use of timing as

of processes;

in the

but in

this

an aid

he was not so fortu-

development
and the undeveloped method he used is not even remotely
connected with modern time study.
The important stimulus to the modern development is found
in the work of a group of managers and engineers, members of the
American Society of Mechanical Engineers, who drew the attention of their fellow-members to the influence of wages on the
The earliest of these was Mr. Henry R.
output of workmen.
of
the
Yale & Towne Manufacturing Company.
Towne, president
Mr. Towne has always been essentially a thinker in industry.
Early in the eighties he wrote a paper which was a plea for the
technically trained engineer to concern himself in the financial and
"
*'
to be an
economist
profit making aspects of management

nate,

As a

because he effects economies.

advice in his

own

plant,

and

result of taking his

own

after a reahzation of the practical

an incentive to production, Mr.

described a modified type of profit sharing
"
Gain Sharing." It consisted in modifying
which he called

inefficiency of profit sharing as

Towne evolved ^ and

by applying it to departments instead of to the

business as a whole, and basing it upon demonstrable gains in
the efficiency of departments as evidenced by careful accounting.

profit sharing

"

The Engineer

as Economist," Transactions, American Society of Mechanical

These transactions will be abbreviated hereafter Trans.

Engineers, vol. 7, p. 425.

A.

M.

S.
2

"

E.

Gain Sharing," Trans.

A.S.M.

E., vol. 10, p. 600.

SCIENTIFIC
Out

MANAGEMENT

of the discussion of this

paper grew practically the entire

on wage systems as incentives.
Prominent on this subject were the papers of Mr. F. A. Halsey
and Mr. James Rowan and an article by Mr. Rowan.^ The
object in the mind of these managers was to provide a definite
basis on which gains in efficiency could be measured, and to bring
the gain and the consequent bonus home to the individual workman. It was an attempt to remedy the defects both of profit
sharing with its indefiniteness and of piece rates with their
temptation to cutting; and it amounts practically to the rough

modem

literature

determination of a standard of individual performance and the

announcement in advance of a systematically graded and ex-

pected cut.

While this discussion (the very considerable hterature of which

outside the scope of this paper) was in progress, Mr. Frederick
i^
Taylor, an engineer of Philadelphia, who had become foreman
and master-mechanic of the Midvale Steel Company, was trying

W.

to solve the problem of individual and plant efficiency by another

One result of his experiand an essentially different method.
ments was the development of a new form of piece rate now known
"
differential piece rate," according to which a workman
as the
is paid a low rate per piece for ordinary production and a con-

siderably higher rate for production according to a standard,

determined by careful and accurate time study, and made possible
of attainment by systematic training of the workman and by

such management of the plant as facilitates to the utmost the

by the laborer. Mr. Taylor's first statemethods and results was submitted to the American
Society of Mechanical Engineers in a paper' which has been
described by Mr. Going, the accomplished editor of the Engineer"
one of the most valuable contributions that
ing Magazine, as
have ever been made to technical literature."
operations performed

ment

of his

"

The Premium Plan of Paying for Labor," Trans. A.S.M. E., vol. 12, p. 755.
Reprinted in Sibley Journal of Engineering, vol. 16, p. 219, and in Trade Unionism
and Labor Problems, chap, xi, edited by John R. Commons. Boston, 1905.
1

"

A Premium System applied to Engineering Workshops," Proceedings, Institute of Mechanical Engineers, March 20, 1903, p. 203.
"
Piece Rate System," Trans. A. S. M. E., vol. 16, p. 856; reproduced in
*

this

volume, p. 636.

SCIENTIFIC

MANAGEMENT

At this stage of the development, the system consisted of

three principal elements: (i) an elementary rate fixing department, (2) differential rate system of piece work, (3) what he (Mr.
"

Taylor) believes to be the best method of managing men who work

by the day." The rate fixing department analyzes and stand-

work and

piece rates with the aid of elementary time

This
study.
procedure differs from that of other rate fixing
"
departments in that a careful study is made of the time required
to do each of the many elementary operations into which the
manufacturing of an establishment may be analyzed or divided.
ardizes

These elementary operations are then classified, recorded, and

indexed and when a piece work price is wanted for work, the job
divided into

elementary operations, the time required

to do each elementary operation is found from the records, and
the total time for the job is summed up from these data."
is first

The

its

differential rate

*'

offering

two

system of piece work

is

defined briefly as

same

job, a higher price per

finished in the shortest possible time and

different rates for the

piece in case the work is

in perfect condition, and a low price if it takes a longer time to do
the job, or if there are any imperfections in the work (the high

workman can earn more per day than

The best method of
is usually paid in similar establishments)."
"
managing men who work by the day consists of paying men and
rate should be such that the

Each man's wages as far as possible are fixed

and energy with which he performs his work,
skill
to
the
according
and not according to the position which he fills. Every endeavor
not positions.

The advandeduced by Mr. Taylor from ten years'

experience with the Midvale Steel Company are: first, lower cost
is

made to stimulate each man's personal ambition."

tages of this

system as

of production with, at the

same

time, higher wages; second, by

substituting knowledge for guess work, the elimination of the
"
motive for soldiering "; third, the substitution of exact knowl-

edge leads to a treatment of the men with greater uniformity and

justice, and their response with more and better work; fourth,
cooperation of the
their

men and

common interest;

maximimi

fifth,

the

management

the system

productivity, which

is

is

is

made

obviously
rapid in attaining the

automatically maintained

by

SCIENTIFIC

MANAGEMENT

the differential rate; sixth, it selects and attracts the best men,
develops many slow and inaccurate workmen into first class men,

and discourages and

"
seventh,

inferior;

the

men and

it

sifts

out

men who

are incurably lazy or

promotes a most friendly feeling between

their employers,

and so renders labor anions and

strikes unnecessary."

The paper then proceeds

to discuss the

Towne and Halsey wage

systems and profit sharing, and points out the absence in all of
them of a definite measure of a day's work. It then describes the

method

of elementary rate fijdng

ferential piece rate

by

its

and the application of the

dif-

means, with illustrations of the results

attained.

Mr. Taylor's habit of mind that this early

a
paper
description of methods and results, including hardly a
of
theoretical deduction.
It is a testimony to the
suspicion
It

is

significant of

is

accuracy of Mr. Taylor's later statement that scientific management is not a theory to be apphed to practice, but that it is first
and primarily a practice out of which, many years after its beginning, a theory has developed.'

The

difficulty of bringing a plant to the necessary perfected

degree of administration and the apparent severity of the differential piece rate led one of Mr. Taylor's collaborators, Mr.
H. L. Gantt, to develop a different form of premiimi system,
which retained, however, the essential element of an accurate

"
time study basis.
This method, known as the
Gantt bonus
rate
method.
It
is
a
time
the
guarantees
plan,"
operator the
or
rate
but
adds
a
for
bonus
of
achievement
regular hourly
daily
"
the standard quantity and quaUty of work, known as
the task."
This standard is set, as with Mr. Taylor's differential piece rate,

Mr. Gantt has published a large number of

on the subject, the best of which, together with his own

by time study.
articles

*
An interesting description of the application of this form of piece rate is found in
"
" The
The Engineering Magazine, vol. 20,
Taylor Differential Piece Rate System,
p. 617, by Mr.Sanford E. Thompson, one of the early collaborators with Mr. Taylor
and a recognized expert on time study. A good discussion of the whole matter grew

"
Is Anything the Matter with Piece
out of a weak paper by Mr. F. Richards,
"
M.
vol.

Work

Trans.

A.S.

Emerson, and others.

E.,

25, p. 68, participated in

by Mr. Taylor, Mr.

SCIENTIFIC

lO

MANAGEMENT

development of the relation of scientific management to some of

the human problems involved, have been collected in one volmne.^
Mr. Gantt points out how by the ordinary methods of management the cost of production, which is at the basis of the great

problem of the increasing cost of living, follows a vicious circle

of higher wages to meet higher cost and increased cost as the

The way out

result of higher wages.

such a

way

is

to

manage production

in

that higher wages bring a decreased cost; and this

the aim of scientific management.

This is accomplished by
standardizing the conditions for efiicient operation, instructing

is

workmen thoroughly in the best methods, and using wages

them to accept the instruction and the conThe development of the Gantt bonus and its
ditions provided.
the

as an inducement to

work are described in detail, and the effect of the

the
workman's
habits of industry and cooperation is
on
system
outlined and demonstrated with charts and diagrams showing
These charts,
comparisons between old methods and the new.
relation to piece

based upon the records of actual workers, are extraordinarily

interesting human documents, showing the gradual overcoming
of difficulties and the fixation of habits of punctuality, reliability,
and efficiency. The 19 13 edition adds a chapter to the effect
that, as the great natural resources of this country can

on

less

and

less in

be relied

competition with other countries, our future

depends upon the application of

scientific

methods and the

in-

crease in the efficiency of operation, and concludes with a brief

chapter illustrating some of the detailed methods of the Taylor

system as developed by Mr. Gantt.

This book of Mr. Gantt's is one of the best that has appeared
on the subject and is entitled to rank with Mr. Taylor's Shop

Management and The Principles

of Scientific

Management, as one

of the standard authorities.

Scientific

management, however,

wage payment.
and application
^

The

One

not merely a system of

of standards not only of performance,

Work, Wages and

first

is

of its essential features is the determination

Profits.

Engineering Magazine Co.,

edition, published in 19 10,

revised in the second edition, 19 13.

is

New

but of

York,

1910.

somewhat enlarged and considerably

SCIENTIFIC
methods and equipment.

In

MANAGEMENT
fact, it is

II

a cardinal principle of

management that a proper standard of performance

cannot be attained in the absence of standardized methods and
scientific

equipment; and it was in the effort to secure standard performance that Mr. Taylor and his associates were led to investigations of detailed processes which have themselves become classics.
"
One of the earliest of these is Mr. Taylor's Notes on Belting,"
which, with the later paper by Mr. Carl G. Barth,^ has had an
immense influence on the current manufacture and use of belts.
Another investigation growing out of Mr. Taylor's work was
concerned with the proper composition and method of heat
treatment of tool steel, and the shape of cutting tools.
This
^

on with the assistance of Messrs. Gantt,

Barth, and Maunsel White, and extending over twenty-six years,
led incidentally to the discovery of high-speed steel, which has
investigation, carried

revolutionized machine shop practice and the design and conThe results of
struction of machine tools all over the world.
this investigation are published

"

The Art

of Cutting Metals."

in

Mr. Taylor's paper

called

While Mr. Taylor was carrying forward in a variety of industries the development of his distinctive type of management, but
was publishing nothing about its details,* Captain Henry Metcalf

had been developing independently and describing

*

'
*

Trans. A. S.
"

M.

'

a system of

E., vol. 15, p. 204.

Transmission of Power by Leather Belting," Trans. A. S. M. E., vol. 31, p. 39.

Trans. A. S. M. E., vol. 28, p. 31.
The introduction and a part of the

discussion of this paper are reproduced in this volume, p. 242.

An interesting
explanation of one of the means by which Mr. Taylor's results are applied in
machine shop practice is found in the pajier by Mr. Carl G. Barth, the mathe-

matician of the group, on

"

Slide Rules as Part of the Taylor

System," Trans.
work as a stimulus to the application of thought to management appears in the article by Mr.
Charles Day called "The Machine Shop Problem," ibid., vol. 24, p. 1302, which emphasizes the need of coordination, analysis, and a scientific determination of facts.
*
The only paper by a member of the Taylor group dealing with any detail was
Mr. Gantt's " Graphical Daily Balance in Manufactures," ibid., vol. 24, p. 1322,
reproduced in this volume, page 420, which was a description of the method of
scheduling introduced by him at the American Locomotive Works.

A. S. M. E.,

"

vol. 25, p. 49.

An

illustration of the effect of such

'
The Shop Order System of Accounts," Trans. A. S. M. E., vol. 7, p. 440.
The Cost of Manufactures and the Administration of Workshops, John Wiley & Sons.
New York, 1885. 3d edition, 1907.

12

SCIENTIFIC

MANAGEMENT

routing and accounting in the government arsenals, and Mr.

Oberlin Smith, president of the Ferracute Machine Company,
had presented an interesting paper on the naming of machine

When

parts.

the opportunity

came Mr. Taylor helped himself

and incorporated them,

freely to the suggestions in these papers

with considerable modification, into his practice.

twenty years' experience, Mr. Taylor submitted

American Society of Mechanical Engineers the history
and methods of his system in what seemed to him to be definite,
This was his famous paper on
complete, and coordinated form.
"
^
Shop Management," which has been extensively reprinted
and translated into French, German, Dutch, Italian, Russian,
In response to the popular interest in the
Lettish and Japanese.
about
subject brought
by the railroad rate case in 191 1, Mr.
Taylor was induced to publish a less technical statement under
the name The Principles oj Scientific Management}
Finally, after

to the

"

"
Shop Management is a considerable expansion of the earHer
"
A Piece Rate System," and includes much of the
paper on
detailed methods that had been developed by Mr. Taylor in the
intervening years, together with some analysis of the industrial
and economic principles involved in his system. The emphasis is
"
the coupling of high wages
laid throughout on the importance of
for
the employer," and the
for the workman with low labor cost

eventual interest of the pubUc in the reduced prices resulting

"
from this combination. The difference between the first class

man

"

and the average workman, the means for selecting or

developing the former class, the methods of accurate scientific
time study, the philosophy and operation of the task idea in

management, the determination of standards, the separation of

planning and execution, the development of functional foremanship and the planning department, and steps to be taken in chang1

"

The Naming

duced in
"'

this

of

Machine Parts," Trans. A.

S.

M.

E., vol.

2,

p. 366, repro-

Haroer

& Bros.. New

volume, page 452.

Trans. A. S.

M.

E., vol. 24, p. 1337.

New

edition.

York, 191 1.
'

"

A very brief resume by Mr. Taylor,

Harper and Bros., New York, 191 1.
and Methods of Scientific Management," is found in the Journal of

Principles

Accountancy, vol.

12,

pp. 117, 181.

SCIENTIFIC
ing from ordinary to

1 3;

"

the best type of management," are dealt

"
"
Emphasis is laid on the evils of soldiering

with extensively.

and the

MANAGEMENT

failure of piece rates

and premium plans

to

overcome

them; it appears that Mr. Taylor's entire system grew out of his
determination to break up this practice.
The objects sought can be attained, according to Mr. Taylor,

most

easily

by the application

of the following principles

Each man in the establishment, high or low,

(a) A Large Daily Task.
This task
should daily have a clearly defined task laid out before him.
should not in the least degree be vague nor indefinite, but should be circumscribed carefully and completely, and should not be easy to accomphsh.

Each man's task should call for a full day's

Standard Conditions.
at the same time the workman should be given such standardized
conditions and appUances as will enable him to accomplish his task with
(b)

work, and
certainty.
(c)

High Pay for Success.

accomplishes his task.

(d) Loss in Case of Failure.
or later he will be the loser

He should be sure of large pay when he

When he he should be sure that sooner
fails

by

it.

Wheif an establishment has reached an advanced

in

state of organization,
cases a fifth element should be added, namely: the task should be
so difficult that it can only be accomplished by a first class man.

many

made

The

rest of the

book

is

an amplification of the methods by

"

"

which these so-called principles are applied.

The Principles of Scientific Management develops the same ideas

on the
knowledge and
importance
incentive on the part of the management for the old reliance on
the crudely stimulated initiative of the workman.
There is the
same discussion of "soldiering," inadequacy of piece and premium
systems, and a non-technical review of certain typical methods
in a sHghtly different
of

the

way.

Considerable emphasis

substitution

of

is

laid

scientific

of the system, with illustrations of the application of scientific

method to such diverse operations as shovelUng, pig-iron handling,

of metals.

interesting to note in the later book a restatement of the

"
"
elements
principles," otherwise referred to as
It

"

and the cutting

is

First.

The development

selection of the

ment.

Fourth.

and the men.

workman.

of a true science.

Second.

The

scientific

education and developIntimate friendly cooperation between the management

Third.

His

scientific

SCIENTIFIC

14
In an

earlier section of the

MANAGEMENT

same book, these "

"

"
principles

are

"

restated in slightly different form as the

new duties devolving
on the management. In this case they are given as follows
:

First.

They develop a

science for each element of a man's work, which

replaces the old rule-of-thumb method.

Second.
They scientifically select and then train, teach, and develop the
workman, whereas in the past he chose his own work and trained himself as

best he could.
Third.

They

work being done

heartily cooperate with the men so as to insure all of the

in accordance with the principles of the science which has

been developed.
Fourth.
There is an almost equal division of the work and the responsiThe management take
bility between the management and the workmen.
over all work for which they are better fitted than the workmen, while in the
past almost all of the work and the greater part of the responsibility were
thrown upon the men.
It

is

evident from these statements that Mr. Taylor does not

distinguish sharply between principles, duties, and methods, and

to see why the methods selected for elevation into

it is difficult

the class of principles are limited to those given and do not mclude
such fundamental and radical departures as functional foremanThis is but another evidence of the
ship and the task and bonus.
fact that the Taylor system

is

in reality the

summation

of years

many individuals, which has not even

yet been thoroughly coordinated and developed into such a
system of real principles or laws as characterizes other modern
I believe that the principles are there and that they
sciences.
of the varied experience of

only await definite and systematic formulation.

In the summer of 191 1, the unionized machinists and molders

employed at the Watertown Arsenal, where the Taylor system

was being developed by Mr. Carl G. Barth, walked out; and on

being taken back petitioned that the Labor Committee of Congress investigate the subject and recommend such legislation as
would be necessary to protect their interests. A Committee was
appointed consisting of Mr. William B. Wilson, the present
Secretary of Labor, Mr. William C. Redfield, now Secretary of
"
Commerce, and Mr. John Q. Tilson, to investigate the Taylor
"
and other systems of management in government shops. The

SCIENTIFIC
investigators

confined

MANAGEMENT

themselves

practically

1$
to

the

Taylor

system, held hearings at the principal navy yards, and took

"
efficiency experts,"
testimony of workmen, foremen, managers,
and practically the entire group of Taylor system engineers.

The

was a brief report that no legislawas necessary. More useful, however, was the publication
of the great mass of testimony taken.' This report of the hearings
is a perfect mine of information in regard to the history, methods,
practice, and results of the Taylor system and must be strongly
recommended as one of the fundamental sources on the subject.
Another important body of testimony is that introduced by
Mr. Louis D. Brandeis as part of the case of the shippers in the
"
"
Eastern Rate Case ^ which is carefully sifted, analyzed and
coordinated in Mr. Brandeis' brief.'
The most important publication of Mr. Taylor, in addition to
those mentioned, is a book prepared by him and Mr. Sanford E.
Thompson,* which includes, in addition to an acute analysis of
concrete construction, certain chapters on time study and valuresult of their investigation

tion

able tables of unit times determined in accordance with the

Taylor methods.'
*

Hearings before the Special Committee of the House of Representatives

tigate the

Taylor and Other Systems of Shop Management.

to FnveS'

Government Printing

Washington, 19 12.
Commerce Commission Reports, vol. 20, p. 243.
*
A part of this brief was published under the title Scientific Management and
Railroads, Engineering Magazine Co., New York, 19 12. The testimony in this case
had no effect on the decision of the Interstate Commerce Commission; but the
spectacular and seemingly extravagant form in which some of the testimony was
Office,
*

Interstate

given by persons outside the Taylor group but influenced by it, caught the popular
fancy and was responsible for the great publicity the movement suddenly attained.
*

Concrete Costs,

'

Two interesting articles by Mr.

John Wiley and Sons.

New York, 19 12.

"
Why Manufacturers DisUke College
"
vol. 24, p. 196, and
A Comparison of

Taylor,

Graduates," Sibley Journal of Engineering,

University and Industrial Methods," Stevens Indicator, vol. 24, p. 37, set forth his
convictions in regard to the place of college graduates in manufacturing and particularly his criticisms of their point of view and the handicaps under which they
labor and for which their college training is responsible.
Chief among these are the
inability to concentrate on an undertaking and bring it through to a conclusion, the

importance of punctuality and the value of time and disciand a lack of appreciation of the point of view of the workingman.
There is an interesting comment on this in Mr. D. C. Jackson's " Criticism of the

failure to recognize the

pline,

Engineering Schools," Stevens Indicator, vol. 27, p. 25.

l6

SCIENTIFIC

MANAGEMENT

Although the Taylor system has been applied to many types

of industry other than machine shop production in which it
originated, Httle has been published on these applications by those
closest to the movement.
Among the detailed discussions of
other industries, however, must be mentioned the book by Mr.
Charles Day,^ dealing with the construction and layout of

Mr. Day points out the influence of the design of the

plant upon the efficiency of operation and details the work incident to the planning and building of the plant, from the selection
of the site to the construction of buildings and the installation of
factories.

Excellent illustrations are given of the best layout

equipment.

and routing of materials in factories of different types.

Mr.
Gantt has published a short paper dealing with the textile
industry,^ and Mr. Day has pointed out the possibility of application to diverse industries including public service corpora.

tions.'

Growing out
group are a

of the contributions of

number

management

as

it

Mr. Taylor and

his original

of articles dealing with the theory of scientific

appears to those

who

first

met

it

in its de-

Among the most interesting of these are the

veloped form.
on Administration of the American
of
the
Sub-Committee
Report
This report, after pointing
Society of Mechanical Engineers.*
out the reasons for the present great popular interest in the subject, attempts to find the one basic principle in the movement,
"
and discovers it in the transference of skill." Just as the intro"
the transference of skill from the
duction of machinery meant
inventor or designer to the power-driven mechanism," so scientimanagement is the transference of skill from the manual

fic

worker to the planning department and functional foremen,

resulting in the saving of labor and the increased output and
reduction of cost.
^

Induslrial Plants.

"

The

report includes a collection of interesting

New York, 1911.

the Textile Industry," Trans. A. S.

Engineering Magazine Co.,

The Mechanical Engineer and

M.

E.,

vol. 32, p. 499.

'

"

Management

Principles

and the Consulting Engineer,"

The Engineering

reproduced in this volume, page 205.

"
The Present State of theArtof Industrial Management," /owrwa/^. 5. If. .,

Magazine,

vol. 41, p. 133,

vol. 34, pp.

1131-1150.

Reproduced

in this

volume, page 153.

SCIENTIFIC

MANAGEMENT

attempts to state the underl3dng principles of

ment.

1/

scientific

manage-

Mr. Forrest E. Cardullo ^ has compared " conventional,"

"
"
scientific
systematic," and
management, with illustrations

"

of administration of the various types.

sion of' the causes of current inefficiency,

Then

follows a discus-

which

may

be grouped

those which are chargeable primarily to the

those
which
are chargeable primarily to the workman,
employer,
and those which are chargeable primarily to our political and

into three classes:

system.
They include mental laziness, prejudice
"
"
against so-called
labor, timidity of capital,
non-productive
lack of foresight and adaptabihty, mental inertia, lack of study
of industry, inefficient wage systems, and avarice, on the part of
industrial

management; and on the part of the workmen, disinclination

work at other than their accustomed pace, lack of ambition,
mental laziness, and enmity to their employers; and on the part
of the political and industrial system, periodical depressions,
the

to

seasonal

variations in work, intense individualism, wasteful

competition, and sudden changes in laws, customs, fashions, and
social conditions.
The paper closes with an enumeration of the

objections to scientific management and the answers to them and

is, on the whole, one of the best contributions to the subject.
'
Meyers has made an interesting attempt to deduce
"
"
and formulate laws of management. He gives the following

Lieut. G. J.

synopsis of laws

Law
Law
Law
Law
Law
Law
Law

What to do.
Instructions before work
Machines and
IV. Workmen.
V. Insure instructions are carried out.
VI. Costs.
VII. Study
improvements.
I.

II.

Each statement
Thus Law I is in
*

"

starts.

III.

tools.

for

"
begins:
this

form:

Industrial Administration

and

It is

"

necessary in any activity.'*

It is necessary in

Scientific

any

activity to

Management," Machinery,

vol. i8,

pp. 843, 931; vol. 19, p. 18, reproduced in this volume, page 49.
* "
The Science of Management," Journal of the American Society of Naval Engineers, vol. 23, p. 994.

SCIENTIFIC

18

MANAGEMENT

have a complete knowledge of what is to be done and to prepare

what is to be done before the work is started,"

instructions as to

and so for each topic in the synopsis. The formulation of each

law is followed by a brief statement of the reasons for it and the
method of its application. The paper is a highly interesting
essay in the formulation of industrial principles.^
The present writer ^ has pointed out that the time study
methods of the Taylor system provide a definite basis for one

wage bargain to wit, the content of a day's work, but

makes no attempt to determine the equivalent day's wage, except
to provide a means through the bonus or differential rate for the
side of the

application of the principle that superior service should be paid

at a superior rate.

M.

LeChatelier's Introduction to the French translation of

The Principles

Management,^ discusses the fear both

of Scientific

on the part of the employers and the workmen, that the radically new methods of scientific management will bring about
critical economic problems of readjustment; and lays this fear
working out of economic changes.
Mr. Morris L. Cooke, now director of Pubhc Works in the City
of Philadelphia, and one of the later additions to the original
Taylor group, was retained by the Carnegie Foundation to make
an investigation of academic efficiency from the point of view of
to ignorance of the gradual

To

these should be added the following:

Mr. H. P. Kendall's " Management:

Unsystematized, Systematized and Scientific," Scientific Management, Tuck School

Conference, 19 12, p. 112; reprinted in Indiistrial Engineering, vol. 10, p. 374, a comthe types of management mentioned, reproduced in this volume,
page 103, based on the writer's personal experience with the last two and a
Mr. Tracy Lyon's brief review of principles in
wide acquaintance with the first.
"
Scientific Industrial Operation," in Technology and Industrial Efficiency, p. 200,

parison of

Reprinted in Iron Age, vol. 87, p. 922, and in Industrial World,

"
Mr. A. Hamilton Church's The Meaning of Scientific Management," Engineering Magazine, vol. 41, p. 97, which is one of numerous suggestive
"
"
but unsuccessful attempts to find the one principle underlying the movement.
"
Scientific Management More Than a Labor Problem,"
Finally, the editorial

New York,

191 1.

vol. 45, p. 464.

Industrial Engineering, vol.

11,

p.

467, pointing out

the inclusiveness of the

method.
"

2
Relation of Scientific Management to the Wage Problem,"
C. B. Thompson,
Journal of Political Economy, vol. 21, p. 630, reproduced in this volume, page 706.
'
Reproduced in this volume, page 842,

SCIENTIFIC

MANAGEMENT

I9

In his report Mr. Cooke discusses

current types of university organization, the college teacher as a
producer, research, the economical use of buildings, functional

an industrial administrator.^

and student administration.

no present gauge to efficiency in acad-

activities, financial administration,

According to him, there

is

emic work and, while recognizing that the product of the university is of so intangible a nature as not to be subject to exact

measurement, he points out the possibihty of the application of a

unit, the student-hour, to the

His discussion

measurement

of administrative

brought to bear in detail

upon the
administration of a physics department and includes an application of some of the methods of industrial administration.*
efficiency.

is

Interesting suggestions for the partial or complete application

of the Taylor system to varied industries are made by Mr. F. B.

when he shows the revolutionary result of the appUcamotion study to a trade so ancient as laying bricks, and
*
by Mr. B. M. Ferguson who details the favorable results of his
experiments, particularly in its application to outdoor construcGilbreth

tion of

tion.

The

success of the application of the Taylor system to the

government arsenals drew the attention of engineers in the Navy
to the possibility of its application to their branch of the service.

This

W.
'

is

discussed

B. Tardy.*
"

by Mr. C.

Brewer ^ and by Lieut.-Commander

Particularly interesting is the Report of the
S.

Academic and Industrial Efficiency," Carnegie Foundation

Bulletin

No.

5,

1910.
*

The

may be taken as samples of the comment provoked by

Educational and Industrial Efficiency," Science, N.s., vol. ;iSf P- loi by
Richard C. Maclaurin, President of the Massachusetts Institute of Technology,
following articles
"

this study:

who is apprehensive that the methods proposed by Mr. Cooke will consume too
much of the time of officers of instruction and will tend to distract attention from
the fundamental purpxjse of a university; " Educational or Administrative Efficiency," Engineering Magazine, vol. 40, p. 606 (anonymous); and "Scientific
Management and Academic Efficiency," The Nation, vol. 93, p. 416 by Professor

A. G. Webster.
*
*

Clark Publishing Co.,

Bricklaying System.
"
The Application of the Taylor System to

New York

and Chicago, 1909.

Gas Works," American Gas Light

Journal, vol. 95, p. 225, and Progressive Age, vol. 29, p. 830.
* "
Scientific Management in the Army and Navy," World's Work, vol. 23, p. 311.
* "
A Plea for a Standard Oi:ganization of the Engineer Division Aboard Ship,"
etc., Journal of the American Society of Naval Engineers, vol. 23, p. 681.

20

SCIENTIFIC

MANAGEMENT

Civilian Expert Board ^ on Industrial Management of United

States Navy Yards.
This Board, appointed by the Secretary
of the Navy and consisting of Messrs. H. L. Gantt, Harrington
Emerson, and Charles Day, investigated the present functions
and conditions of navy yards. They discussed the efficiency of
their management in comparison with that of industrial plants
and made certain recommendations in regard to the nature of the
work properly to be performed in navy yards and " that scientific
management be introduced and perpetuated in the navy yards
which it is decided to operate."
The most ambitious attempt to apply the Taylor principles to
He describes
selling has been made by Mr. Charles W. Hoyt.^
such modern methods as training classes, salesmen's conventions,
standardized talks, and outUnes rather inadequately the application of the scientific method of approach to the problems of

salesmanship.^

The growing reahzation that perhaps the greatest economic

waste from which we suffer is due to the inefficient management
some thought being given
management.
The most suggestive article on this subject is that by Mr, J. B.
Guernsey,^ which, however, is rather too vague and theoretical
of household

economy has

resulted in

to the working of the Taylor principles in domestic

to be of practical service.

known and most popular books

management are not those written

It is not strange that the best

on the

by

its

principles of scientific

originator

and

his co-workers;

who have been

they are the product of

by them and whose gift of

Foremost among these
more
expression
highly developed.
are two books by Mr. Harrington Emerson,^ marked by a
persons

influenced

is

*
Prepared by direction of Hon. George von L. Meyer, Secretary of the Navy.
Government Printing Office, Washington, 1912.
*
Woolson & Co., New Haven, 1913.
Scientific Sales Management.
"
*
Other articles dealing briefly with this subject are Mr. Amasa Walker's Scien-

Management applied to Commercial Enterprises," Journal of Political Economy,

and Mr. J. George Frederick's " Applying the Science of Management to SelUng," Industrial Engineering, vol. 12, p. 204.
tific

vol. 21, p. 388,

"

Scientific

Management

in the

Home,"

Outlook, vol. 100, p. 821.

Engineering Magazine Co., New York, 1909, revised edition, 191 2,

and The Twelve Principles of Efficiency, 1911, revised edition, 1912.
*

Efficiency,

MANAGEMENT

SCIENTIFIC

21

breadth of interesting information, and a capacity for inspiring,

almost poetic, elucidation, which have made them the most
popular expositions of the subject.^

Mr. Emerson discusses certain typical

ineflSdencies

and

the causes of national industrial prosperity,

significance,

their

the

strength and weakness of existing systems of organization.

He

then proceeds to an exposition of his own method of line and staff

organization, the determination and reaUzation of standards, cost
accounting, the location and eUmination of wastes, and the
Emerson bonus system. His method differs from that of Mr.

Taylor in two respects: in the

first place, in

the line and staff

organization, the staff consisting of the experts occupies an

auxiliary and advisory relation to the management, whereas in
the Taylor system, the experts are the functional foremen and
are an integral executive part of the organization; in the second
place, the Emerson bonus proceeds on the rough determination
of a standard efficiency

attains 67

% or less gets his

bonus on a sUding
efficiency; at
I

is

added

calls

scale for every increase in the percentage of

100%

for

ioo%; the workman who

guaranteed day wages, and is paid a

which he

the bonus

amounts

each additional

to

20%

of his

of efficiency.

As

wages and
the task

is

not originally so accurately and thoroughly set as in the Taylor

system, the workman can, and frequently does, exceed the

100% mark.
Mr. Emerson

states the principles of

(i) clearly defined ideals;

(2)

management

common

sense;

(3)

as follows:

competent

counsel; (4) discipUne; (5) the fair deal; (6) reliable, immediate,

and adequate records;

(7) despatching;
(8) standards and
standardized
standardized
schedules; (9)
conditions; (10)
operations;
(11) written standard-practice instructions;
(12) effi-

Most of these are not by any means peculiar to

management, nor can it be said that Mr. Emerson's
application of them is distinctively original.
Incidentally it is

ciency reward.
scientific

'
Two other simplified expositions worth mentioning are the Primer of Scientific
Management, Van Nostrand Co., New York, 191 2, by Mr. F. B. Gilbreth, and the
misnamed " Psychology of Management," Industrial Engineering, vol. ii, pp. 343,

429; vol. 12, pp. 13, 65, 116, 155, 199, 248; vol. 13, pp. 18, 66, 113, 161, 213,
M. Gilbreth.

Mrs. L.

by

22

SCIENTIFIC

MANAGEMENT

interesting to note the gradual change from Mr. Emerson's

acknowledgment of indebtedness to Mr. Taylor in certain discussions in the

American Society

of Mechanical Engineers to the

reversal of this position in his later

Out

of the large

number

pubHshed work.

of books written within the last five

years on the general subject of factory administration, four of the

most important devote attention to a discussion of scientific

management and show in general considerable influence by it.

The most noteworthy of these are by Mr. Charles B. Going and
^

Mr. Dexter Kimball,^ these two are especially valuable

give scientific

setting they

modem

management

administrative methods;

and Mavor;

and Mr. Hugo

and

development of

Messrs. Galloway, Hotchkiss

and far-reaching movement as

management should meet criticism.

a veritable storm-centre.

for the

Diepier.^

It is natural that such a radical

scientific

in the

It has in fact

been

Much of the criticism is aimed at details

but the following articles go for the

system root and branch and should properly be enumerated here.
The most comprehensive criticism is that by Admiral John R.
will

be discussed

later;

who sums up the comments of most of the adverse

adds on his own account that scientific management
and
writers,
does not cover the whole of management, and that in any case
management is an art rather than a science, that the Taylor
system antagonizes the workmen and neglects the personal
equation, and that whatever advantages have come from it
Another severe criticism is
have been incidental by-products.
that by Mr. A. Hamilton Church,* who attacks particularly
certain extracts from Mr. Taylor's writings, leading to the conMr. Church
clusion that Mr. Taylor does not show a science.'
Edwards,^

*
*
*
*

McGraw-Hill Co., New York, 191 1.

McGraw-Hill Co., New York, 19 13.
Alexander Hamilton Institute, New York, 191 2.
Business Organization.
McGraw-Hill Co., New York, 1910.
Factory Organization and Administration
"
The Fetishism of Scientific Management," Journal of American Society of

Principles of Industrial Engineering.

Principles of Industrial Organization.

Naval Engineers, vol.

* "
Has Scientific
^

24, p. 355.

"
Management Science ? American Machinist, vol. 35, p. 108.
"
The same point is made in an editorial called The Science of Management

Defined, and the Scope of this Science," Engineering and Contracting, vol. 39, p. 339.

SCIENTIFIC

MANAGEMENT

and Mr. L. P. Alford ^ undertook to enumerate the principles of

management and pointed out the place of the Taylor system in
them.^

As already

stated,

most of the popular

articles

on the subject

The most spectacular

are obviously journalistic and ephemeral.
discoveries of Mr. Taylor and his co-workers lend themselves
"
"
treatment; and the possible results of the
popular
easily to
application of the stop watch and the micrometer appeal effectively to the imagination of magazine and newspaper writers.

Most

of their

"

The

work contains nothing new or

The

significant.

articles of real value are listed below.'

few popular

Principles of

Management," American Machinist,

vol. 36, p. 857.

viewed by Mr. D. S. Kimball and Mr. J. Calder, ibid., p. 965.

*
Other important general criticisms are those by Mr. Dexter

S.

Re-

Kimball,

"

Another Side of Efficiency Engineering," American Machinist, vol. 35, p. 263,

reproduced in this volume, page 734, developing briefly some of the social and economic implications of the movement and calling attention to the absence of a
"
A Consideration of Certain
discussion of distribution; by Mr. H. G. Bradlee,
Limitations of Scientific Efficiency," in Technology and InSustrial Efficiency, p. 190,
New York, 191 1; reprinted in Stone & Webster's Public Service Journal, vol. 8,
P- 3^3> pointing out that for the most effective application conditions must be
uniform, work repetitive and the area of operations small; by Mr. E. C. Peck,
"

Systematic versus Scientific Management," Iron Age, vol. 88,

p. 364,

drawing

and the dangers of inexpert work; and by

Manager's View of the Taylor System," American

attention to the scarcity of real experts

"

A
Mr. James R. Johnson,
Machinist, vol. 34, p. 885, presenting the point of view of the typical successful
manager, that we should let well enough alone.
*

The

following contain good enough ideas, well enough expressed, to warrant

and recommending them: Mr. A. G. Popke's " The Relations of Capital,
Labor and Efficiency in Manufacturing," Engineering Magazine, vol. 43, p. 857,
"
The Outsider
pointing out the necessity of increasing efficiency; Mr. E. Perry's
and the Busy Business Man," ibid., vol. 40, p. 249, answering the old saw that
improvement should come from the inside and not from the outside expert; a series
"
The One Best Way," System, vol. 20, pp. 227,
of articles by Mr. E. M. Wooley.
listing

"

356, 460, 614;

Out the Mail,"

"

Management in the Office," ibid., vol. 21, p. 3;

Getting
"
The Wanton Waste of Labor," ibid., vol. 21,
21, p. 284;

Scientific

ibid., vol.

"

Lost Motions in Retail Selling," ibid., vol. 21, pp. 366, 465,
well
pp. 13, 173,
"
Scientific Management," World
written and suggestive; Mr. H. S. Philbrick's
To-day, vol. 21, p. 1 167, developing the idea that scientific management is a resump-

which had gradually vanished; an

"
Management, and What Does it Do ?
"
Industrial Engineering, vol. 9, p. i; an article, also anonymous, on
Efficiency
"
Program," Independent, vol. 70, p. 739; an anonymous article entitled Aspects of
Scientific Management," The Nation, vol. 92, p. 464; and an excellent article by
tion of the direct oversight over production
"

anonymous

article,

What

is Scientific

SCIENTIFIC

24
2.

Scientific

MANAGEMENT

Management

in Operation

As yet nothing has been published summarizing the results of

the appUcation of scientific management in any large proportion
The nearest approach to a
of the plants which are using it.
review of

its

present status is in the Report of the Sub-Committee

of the American Society of Mechanical Engi-

on Administration

neers, referred to above.

It is significant that

one of the signers

and, I believe, the actual writer of this report is Mr. L. P. Alford,

of the critics of the movement.
Mr.

mentioned above as one

based on the expecompany. Mr. A. W. Shaw,

Alford has written another excellent

rience of a well-known Philadelphia

article,^

magazine System, gives a good brief review,^ describing the work of the system at the Tabor Manufacturing Company
in Philadelphia, and suggesting the method of its appUcation to
business problems in general and the results that might reasonThe experience of the Link Belt
ably be expected from it.
editor of the

by Mr. James M. Dodge,

and a complete and detailed explanation of the
operation of the Taylor system in that plant is given by Lieut.
Frank W. Sterling.* The experience of the same plant is the
basis of an article by Mr. C. W. Adams, its superintendent.^
The same methods, as worked out by the Midvale Steel Company,
are described by Mr. H. L. Arnold.* An excellent description of
the early appUcation of the system at the Bethlehem Steel

Company

of Philadelphia is described

its president,*

Mr.

F. B. Copley,

"

How

it

Works:

What Manufacturers and Workmen

are

Getting out of Scientific Management," American Magazine, vol. 75, p. 11, summarizing the results of an extensive investigation and approved personally by Mr.
Taylor.
1 "

Scientific

"

Scientific

Management in Use," American Machinist, vol. 36, p.

Management in Business," Review of Reviews, vol.

548.
43, p. 327,

reproduced in this volume, page 217.

' "
A History of the Introduction of a System of Shop Management," Trans.

A. S. M.
*

"

E., vol. 27, p. 720,

The

reproduced in this volume, page 226.

Successful Operation of a System of Scientific

Management," Journal

of

American Society of Naval Engineers, vol. 24, p. 167, reproduced in this volume,
page 296.
^ "
The Differential Piece Rate," American Machinist, vol. 34, p. 18.
* "
Pre-eminent Success of the Differential Piece Rate System," Engineering
Magazine,

vol. 12, p. 8si-

MANAGEMENT

SCIENTIFIC

2$

published by Mr. H. L. Gantt,* and the story of its

introduction and results at the Tabor Manufacturing Company

Works

is

told by Mr. Wilfred Lewis, the president of the company .^

The methods described in Mr. H. P. Kendall's paper ^ are in the
is

main those
which he

and binding establishment of

Mr. Carl G. Barth gives an
the general manager.
anecdotal account.*
Lieut.-Commanders W. B.
o^ the large printing

is

interesting

*
Tardy and A. M. Cook give the

principles of the

system

to

results of the application of the

gunnery practice and to the adminis-

navy yard. The same subject is also dealt with by

Mr. Holden A. Evans in a series of articles.'
Two extended and complete accounts are those by Mr. Charles
B. Going and by General William Crozier.
Mr. Going's article "
results
achieved
Mr.
Emerson in the application
describes the
by
of his form of scientific management to the Santa Fe Railroad,
and presents the conclusions of a disinterested spectator removed
from the stress of the conflict between the railroad managers and
It will be discussed in more detail in the next sectheir critics.
tration of a

"

Practical Application of Scientific

Management," Engineering Magazine,

vol. 41, p. I.
'

"

An

173.

p.

Object Lesson in Efl&dency," in Technology and Industricl Efficiency,

McGraw-Hill Co.,

New

Reproduced

York, 1911.

in

this

vdume,

page 232.
*

"

Management:

Unsystematized,

and

Systematized,

Management, Tuck School Conference, 191 2,

p.

112.

Scientific,"

Scientific

Abstract in Industrial

Engineering, vol. 10, p. 374, reproduced in this volume, page 103.

* "

Betterment of Machine-Tool

C)p>eration

by

Scientific

Metal Cutting,"

Engineering Magazine, vol. 42, p. 586.

*

Scientific

Magazine,
' "

Management and

Efficiency in the United States Navy," Engineering

American Review of Reviews, vol. 44, p. 229.
Management Methods at a Naval Magazine," Engineering Maga-

vol. 41, p. 545.

Scientific

zine, vol. 42, p. 75.

' "
Reduction in Cost of Navy Yard Work," American Machinist, voL a, p.
"
General Instruction for Machine-Shop Methods," ibid., vol. 31, p. 610;
1200;
"
'*
Do Taylor's
Detailed Instruction for Machine-Shop Methods," ibid., p. 645;
"
Methods Increase Production ? ibid., vol. 34, p. 1133; " Output imder Scientific
Management," ibid., p. 1202.

The application to an automobile repair shop of the modification of the Taylor

System used by Mr. Emerson and his disciples is described by Mr. A. Flack in
"
Machine-Shop Experience with the Principle of EflSdency Reward," Engineering
Magazine,
"

vol. 41, p. 641.

The Methods of the Santa Fe," Engineering Magazine,

PP- 9 22s, 337, S4I.

y(A. 36, p. 909; vol. 37,

26

SCIENTIFIC

The

tion.

reports

MANAGEMENT

by General Crozier on the

application of the
are exceptional in that
comparisons to an extent not con-

Taylor system to government arsenals

they give detailed costs and

sidered practicable by the managers of private concerns.
The
191 1 report gives an excellent brief resume of the introduction of
the system in the Watertown Arsenal, and a rather full demon"
the practical effect of these
stration of the statement that

methods at the Watertown Arsenal has been a material reduction

in the cost of general manufacture at that place," and describes
the beginning of the trouble at that Arsenal with the molders
The 191 2 report pursues the same subject and

and machinists.

quotes comparisons of the cost of production at Watertown and

other Arsenals where the system had begun to be installed with
bids on the

same items from outside concerns.

The appendix

to

report gives the recent petition of the Watertown

employees for the abolition of the Taylor system, and the extended and conclusive reply of General Crozier.^

the

1 9 13

3.

Management and the Railroads

ScrENTiFic

In the Eastern Rate Case, the application of the railroads to

Commerce Commission for permission to raise

was met by the shippers, under the advice of Mr.

the Interstate
freight rates

Louis D. Brandeis, with the counter-argument that, instead of

raising the rates to spend more money, they should make their
operation efficient to get more out of their present expenditure.
In the course of the hearings, the following testimony was intro-

duced

You have been quoted, Mr. Emerson, as stating that in

introduction of proper efficiency system of scientific
the
your opinion, by
management, the railroads of the United States could effect an economy of
perhaps $300,000,000 a year, or not less than $1 ,000,000 a day.
Mr. Brandeis.

Mr. Emerson.
stated that.
Mr. Brandeis.

Mr. Emerson.
^

That
Is

At

it

is

correct

that

is,

your opinion that that

have been quoted as having

is

the fact ?

least that.^

Reports of the Chief of Ordnance for 1911, 1912, and 1913.

Government

Printing Ofl&ce, Washington.

*

Reproduced in this volume, page 741.

Brief on Behalf of Traffic Committee

of

Commercial Organizations of the

SCIENTIFIC

MANAGEMENT

Vf

Although, as stated above, the decision of the Commission was

not affected by this testimony, the publicity it received stirred

up an intense discussion, much of which on the part of the

showed signs of the spirit of the man who has been

railroads

stung.

The best summary of the testimony bearing on this subject is by

Mr. Louis D. Brandeis,^ who has analyzed the meaning, the
requirements, and the effects of scientific management, and who
groups the evidence of the witnesses in accordance with the
In an earlier article ' Mr. Harrington Emerson had
analysis.
pointed out that, in his opinion, the railroads could save $300,'
000,000 a year, and his articles suggest the method by which he

approaches this conclusion. Mr. Emerson had been retained by

the Santa Fe to develop his form of scientific management in part
of their work and the results are described by Mr. Charles B.
(joing,"* who outlines the problems of the road and describes Mr.
Emerson's treatment of the stores keeping, shop order and works
order systems, maintenance of motive power, the bonus system,

The
the apprentice system, and relations with the employees.
bonus system is further described by Mr. Fred H. Colvin, editor
of The American Machinists
Atlantic Seaboard, before the Interstate

Commerce Commission,

Proposed Advances in Freight Rates by Carriers in

re Investigation of

Official Classification Territory,

p. 92.
^

Scieniific

York, 191 1.
Review, vol.
*

"

i,

Management and Railroads.

Engineering Magazine Co., New
Ably reviewed by Mr. Edward D. Jones in the American Economic
p. 833.

Preventable Wastes and Losses on Railroads," Railway Age Gazette, vol. 45,

p. 12.

"

How

Can be Measured," Engineering Magazine, vol. 42,

Exact Measurement Applied to Individual and Shop
Efficiency at the Topeka Shops of the Santa Fe," American Engineer and Railroad
Journal, vol. 8i, p. 221. Mr. Emerson's work in the Santa Fe work-shops is praised
by Mr. W. J. Cunningham in the discussion of Mr. Taylor's address on scientific
*

p. 10;

Railroad Efficiency

and " The Methods

of

management before the New England Railroad Club (Oct. 10, 1911).
* "
Methods of the Santa Fe," Engineering Magazine, vol. 36, p. 909;
PP- 9. 225, 337, 541.
' "

vol. 37,

How Bonus Works on the Santa Fe," American Machinist, vol. 36, pp. 7, 165.
See also two articles by Mr. Charles H. Fry, associate editor of the Railway Age
Gazette, in the Railway Age Gazette, vol. 41, pp. 476, 504, followed by an editorial on
the same subject, vol. 45, p. 413. Mr. Fry outlines the organization of the work on

28

SCIENTIFIC

MANAGEMENT

Severe criticism of Mr. Emerson and his methods was made by

Mr. Wilson E. Symons.^ Mr. Symons attacks Mr. Emerson's
statistics, shows the impossibility, in his opinion, of a million
dollar a day saving, denies that Mr. Emerson's work on the Santa
Fe was of any value, and gives examples of what he considers real
railroad efficiency.
Whatever may be the worth of Mr. Symons'
statistics,

it

evident to any one acquainted with scientific

that he knows practically nothing of the latter

is

management

and the paper

subject,

is

valuable mainly by reason of the dis-

cussion participated in by many well-known railroad men.^

The bitterness of the reaction by some railroad men is
trated in a series of

"

anonymous

with such

articles,^

"

illus-

titles

as

"

Extravagant Claims,"
Impractical Theories,"
Neglect of
Human Element," " Unscientific Method and Impatience for
"
Results," and
Neglect of Large Factors," which criticize

some

had apparently met with.

no means of identification are given, and
there is apparently some point to the comment in the letter by
Mr. F. L. Hutchins * to the effect that the writer of the articles
severely

of the practices the writer

It is unfortunate that

that road and illustrates with charts and statistics the results attained, particularly
in machine shops.
It is generally understood that the influence of Mr. Emerson p>ervades the book
Mr. H. W. Jacobs, Betterment Briefs, Wiley & Sons, New York, 1909. 2d ed.,
dealing with Santa Fe machine shop improvements, reviewed in the Railway Age

of

Gazette, vol. 47, p. 1192.

* "
The Practical AppUcation of Scientific Management to Railway Operation,"
Journal of the Franklin Institute, vol. 173, pp. i, 140, 271, 365. See also his reply to

own paper in the Railway Age Gazette, vol. 51, p. 1107.

In the same Journal appeared a defence of Mr. Emerson by Mr. C. J. Morrison,
"
Letter on Scientific Management," Railway Age Gazette, vol. 50, p. 214, and a fair
criticism with acknowledgement of variation of the Emerson and the Taylor
an

editorial criticism of his

"
"
an anonymous article on What is Scientific Management ?
ibid.,
Two good editorials on the subject are contained in The Railway
"
Age Gazette: one of which, vol. 50, p. 18, holds that the basic principles under"
the
lying scientific management are correct," and the other, vol. 50, p. 210, that
Some
value and effectiveness of scientific time study cannot be questioned."
justification of Mr. Emerson's criticism of the efficiency of the railroads may be
"
foimd in an article by Mr. L. C. Fritch, a well recognized railroad expert, on Opportunities for Economy on Railways," ibid., vol. 51, p. 1059.

methods

in

vol. 50, p. 839.

"

The Mistakes

of the Efficiency

Men," Railway Age

230, 391, 849, 1059, reproduced in this volume,

*

Railway Age

Gazette, vol. 50, p. 268,

Gazette, vol. 50, pp. 29,

page 615.

reproduced in this volume, page 632.

MANAGEMENT

SCIENTIFIC
was mistaken

in his classification of

29.

"
efficiency

The

men."

worth reading, however, as they appear to describe accurately the kind of things done by the many ill-prepared
and inexperienced practitioners of " efficiency."
The objection to scientific management on the railroads on the
articles are well

ground that interference of the labor unions makes it impossible

voiced by Mr. J. O. Fagan who reiterates his point that the
^

is

with the railroads is the employees.^

fundamental
Other
objections to the application of

difficulty

management

to railroads are discussed

scientific

by Professor W.

J.

Cun-

ningham.' After stating the principles of the Taylor system, he

discusses the testimony of Mr. Emerson and points out the
vagueness of the methods proposed by him. He criticizes severely
Mr. Emerson's statistics and particularly the method by which
he arrives at the one million dollar a day saving. Acknowledging
the success of scientific management in commercial undertakhe points out four essential differences between manufacturing establishments and railroads: (i) area and extent of

ings,

and output; (3) relations with the

the
and
and
(4) relations with labor unions
government
public
one
of
in
his
which,
opinion, makes an application of the
any
He then shows that the
system to railroads impracticable.
railroads have in fact for some time been applying scientific
management of their own kind, and that the remedy for their
activity; (2) nature of product

administrative difficulties

lies

in a further application of the

same methods by better and more efficient men.

Another railroad man, Mr. C. deL. Hine, in a stimulating and
suggestive book,* develops the thesis that specialization has
"

The Dream of

Scientific

Management on

Railroads," Journal of Accountancy,

vol. 12, p. I.
*

"
See also the discussion between him and Mr. E. H. Abbott in

Humpty

Dumpty's Question, and its Answer," Outlook, vol. 97, p. 543. The subject is also
"
dealt with in an anonymous article in the Iron Age,
Railroad EflSdency and the
Labor Unions," Feb. 23, 191 1 and the responsibility for the problem is traced in an
;

anonymous

"
article,

vol. 50, p. 782;

Management
*

"

Modern

Genesis of Railway Brotherhoods," Railway Age Gazette,

the point

is

also

mentioned by Mr. W. D. Hines in "

Scientific

for Railways," Nation, vol. 91, p. 576.

Scientific Management in the Operation of Railroads," Quarterly Journal of

Economics, vol. 25, p. 539, reproduced in this volume, page 580.

Organization.

Engineering Magazine Co.,

New

York, 1912.

SCIENTIFIC

30

MANAGEMENT

already been carried too far on the railroads and that what they
need is decentralization rather than the increased centralization
characteristic of scientific

One

of the principal

management.^

arguments of the railroads was

that, so

management was applicable to railroading, it was

already being apphed, as was pointed out in Mr. Cunningham's
far as scientific

An

article already referred to.

given by

attentive study of the examples

main
methods for
administration, which is meant

the railroad writers, however, shows that in the

they have mistaken isolated applications of

the systematized organization of
"
^
scientific

by

scientific

management."

In the meantime, practical heed is being given to the possibility

of making some form of appUcation of the new system to railbeing published on this
point) and any reference to the fact that the methods are those

For obvious reasons

roading.

Mr. Taylor or Mr. Emerson

of

The
"

as

carefully avoided.^

seems to be, as expressed

the efficiency

alive

is

by Mr. C. C. Leech, that

"
wrong and that when percame to be forgotten, the railroad managers were as
any one to the possibilities of improvement.^ As

fact

sonalities

little is

men

simply got in

Attention should also be called to two editorials in the Railway Age Gazette, vol.

SO, p. 26s

and

p. 387.

"
See Mr. C. B. Brewer's
Substitute for the Rate Increase," etc., Scientific
"
American, vol. 104, p. 596; Mr. B. S. Hinckley's The Scientific Thought Applied
to Railroad Problems," in Technology and Industrial Efficiency, p. 181.
McGraw"
Hill Co., New York, 191 1; Mr. S. M. Felton's
Scientific Management of
^

American Railways,"

221; and an anonymous

and Geographical Systems

ibid., p.

tive Merits of Functional

article,

"The Compara-

of Organization," Engin-

eering News, vol. 64, p. 692.

'

shown

by Mr. W.

"

Harahan on Scientific Manageby Mr. M. H. C. Brombacher on

Scientific Management to a Railway Shop," ibid., vol. 51, p. 23; by
Application
"
Messrs. H. F. Stimpson, L. W. Allison, J. S. Sheafe, and C. J. Morrison, on
Application of Scientific Management to a Railway Shop," ibid., vol. 51, p. 33; and by
Mr. B. A. Franklin on " An Efficiency Experiment Station for the Railroads,"
This

is

in the articles

ment," Railway Age

"
of

J.

Gazette, vol. 50, p. 212;

Engineering Magazine, vol. 42, p. i.

* " A
Letter on Efficiency," Railway Age Gazette, vol. 51, p. 221.
*
An anonymous article, " Scientific Management of Railway Shops," Machinery,
vol. 10, p. 16, calls attention to the steps taken by railroads to investigate efficiency
as a result of the agitation;

Railways and

Scientific

and an

editorial in Engineering

Management,"

and Contracting,

vol. 35, p. 379, points

out that

"

The

scientific

SCIENTIFIC

MANAGEMENT

31

this,^ may be cited the work in the

where
scientific methods have been inShops
Mr.
Gantt
and
maintained
and developed by Mr.
by

evidence of the truth of

Canadian
stalled

Pacific

Vaughan, a leading railroad

4.

expert.*

Methods

In current discussions of

scientific

management

so

much

emphasis has been laid upon such things as time study, motion
study, functional foremanship, instruction cards, and slide rules
that there is serious danger of these mechanisms of the system

With the warning, however,

being taken for the system itself.
that detailed methods, either separately or in mere aggregation,
management, it is worth while to report the
best of the articles and books which have appeared describing
Nor is it superfluous to warn readers of these
these methods.
are not scientific

articles that the

methods dealt with are so technical

in their

nature that their successful practice requires not only an expert

in the method used, but an expert in the proper adjustment of
these

methods

to each other

and particularly

to the entire spirit

of scientific

management.
an excellent series of articles dealing with the method
of approach to the system," most of which are amplifications of the
There

is

management

is

now being

applied to the railroads, reproduced in this volume,

page 610.
*

In spite of the conclusion by Mr. George

J.

Bums

in

"

Notable EflSciendes in

Railway Machine-Shop Operation," Engineering Magazine, vol. 42, pp. 161, 386,
616, that the setting of standards in a railroad shop is irap>ossible.
* "
Canadian Pacific Shop Management," American Machinist, vol. 35, p. 1164;
"
and
Scheduling Locomotive Repair Work on the Canadian Pacific Railway,"
Industrial Engineering, vol. 8, p. 380.
*
The best of these are Mr. James

M. Dodge's

"

The

Spirit in

Which

Scientific

Management should be Approached," Scientific Management, Tuck School Conference, p. 142; abstract in Industrial Engineering, vol. 10, p. 350, reproduced in this
"
volume, page 286; Mr. H. K. Hathaway's Prerequisites to the Introduction of
Scientific

Management," Engineering Magazine,

vol. 41, p. 141,

reproduced in this

the editor of Industrial Engineering has an excellent editorial

on " Installation of Scientific Management," Industrial Engineering, vol. 10, p. 301;
"
and there is a good article in the Iron Age by Mr. E. M. Taylor, Modem Methods

volume, page 268;

and the Business

account of the

There is a suggestive and humorous

Echoes from the Oil Country," by Mr.

Specialist," vol. 84, p. 184.

way not

to

do

it,

called

"

SCIENTIFIC

32

MANAGEMENT

warnings so liberally scattered through Mr. Taylor's own books.

The point of all of them is that no management should undertake
to develop the

Taylor system in its plant, unless it is prepared

a very considerable expenditure of time, money, and effort
and a slow process of mental revolution on the part of itself and
for

its

employees.

Of the growing shelf of books on the entire subject, the best

is of course Mr. Taylor's Shop Management referred to above.
This book deals mainly with machine shop practice, but the
principles and methods are developed in such a way that their
appUcation to other types of industry
those sufficiently trained.
Taylor and Mr. Sanford E.
scientific

management

to

is

not

The book on

difficult

if

made by
by Mr.

Concrete Costs

referred to above, applies

construction.
The other

Thompson,
concrete

books detailing methods of application are written by men who

have studied more or less with Mr. Taylor, or have been strongly
One of the best of these is by Mr.
influenced by his methods.
F. A. Parkhurst,^ which includes a series of articles reprinted
The book includes an outline of
from Industrial Engineering.

the organization of a plant under scientific management, and

all the principal functional

detailed statements of the functions of

foremen, an analysis of routing, stores systems and time study, a

discussion of standardization and many illustrations of forms and

The
appliances.
of the Ferracute

methods described are based on the practice

Machine Company, and differ only slightly
from the approved practice of the original Taylor group. Another excellent book by Mr. Holden A. Evans, formerly Com-

mandant

of the

Mare

Island

Navy

Yard,^ deals particularly with

machine shop, smith shop, and woodworking shop methods, and

illustrates reductions in cost accomplished by these methods in

Navy Yards under

treatment of costs,

W.

the author's supervision.

it is

In addition to

its

concerned mainly with such developments

Osborne, American Machinist, vol. 34, p. 1036; and another by Mr. H. K.

"
Art of Cutting Metals," Trans. A.
in the discussion of Mr. Taylor's

Hathaway,
S.

M.
^

'

E., vol. 28, p. 287, reproduced in this volume, page 279.

Applied Methods of Scientific Management. Wiley & Sons,

Cost Keeping and Scientific Management.

^^

Wiley

&

Sons,

New York, 1912.

New York, 19 12.

SCIENTIFIC
in the direction of scientific

MANAGEMENT

management

as

may

35
be imdertaken

by a manager not specially trained in the Taylor methods.^

The application of scientific management to foundries and
machine shops

given in some detail by Mr. C. E. KnoeppeP

from the Engineering Magazine.

is

in a series of articles reprinted

is an interesting and well-written description of the application of scientific management as interpreted by Mr. Emerson and

This

his disciples.'

The

best articles describing the functions of the planning

department are those by Mr. H. K. Hathaway,* in which he
outlines briefly the duties of the functional foremen

and

illustrates

the practical working of the extension of specialization to mental

and supervisional work.

Perhaps the most distinctive feature of scientific management
term is its time study. Current

in the popular conception of the

methods

of time study, however, are frequently confused with

the Taylor method.
In ordinary practice watches are often used
determine
to
roughly the time an operation usually takes, and

the result

is

sometimes made the basis of a piece rate.

This
known to the Taylor group as an " over-all "
never used by them.
The Taylor method consists

type of time study is

study and

is

in the analysis of operations into their elementary units

*

There

is

and the

a good statement of underlying principles in Mr. Evans' article

The
Factory Management," American Machinist, vol. n, p. 1108.
"
"
"
System
Company of Chicago has published a little book, How Scientific
Management is Applied," Chicago, 191 1, consisting of a series of reprints of System
"Scientific

articles.
*

Co.,
*

Maximum

Production in MachineSkop and Foundry.

Engineering Magazine
York, igii.
Attention may be called to articles by Mr. Holden A. Evans, " Detailed In-

New

Machine Shop Methods," American Machinist, vol. $1, p. 16, and

ibid., p. 468, and by Mr. Frederick A.
Modem Methods of Shop Management," Iron Age, vol. 85, p. 982,

structions for

"

An

Analysis of Machine Shop Methods,"

"

Waldron,
which are almost too
*

"

brief to

be very

useful.

The Planning Department," Industrial Engineering,

vol. 12, pp. 7, 53,

and

97.

reproduced in this volume, page 366. With these should be read an anonymous
"
The Foreman's Place in Scientific Management," Industrial Engineering,
article,
vol. 9, p. 197, reproduced in this volume, page 395; and the criticism of functional
"
The Production Department," Transactions, The
foremanship in John Calder's

EflBciency Society, vol.

i,

p. 155.

SCIENTIFIC

34

MANAGEMENT

determination of the best methods and time for the performance

of each of these units and their simimation into a total time for the
entire job.

The

best descriptions of elementary time study as practised

are those by Mr, H. K. Hath-

by the Taylor group of engineers

away and by Mr. H. W. Reed.'*

A comparison of these articles

with the tables of operating times given in Babbage's Economy
of Manufactures will effectively dispose of any claim that the
^

Taylor methods were anticipated by Babbage.

The practice of time study involves motion study.

motion study

is

to determine the

plish a desired result;

and one

tion of its effectiveness

is

most

effective

The aim of
motion to accom-

of the elements in the determina-

the time

it

takes to execute

it.

Time

therefore, go hand in hand, but it is not

effective and profitable motion study
without the use of any timing device.
There is an interesting
foreshadowing of modern motion study in an experiment carried
out in 1837. This was described by Theotiste Lefevre,^ a foreman
in the famous printing plant of the Didots, who was struck with
the fact that the traditional layout of the printer's case was not

study and motion study,

impossible to make an

the one best adapted to the setting of type, in that usually the
compositor had to reach farthest for the most frequently used
letters.
Lefevre, therefore, re-designed the case with a view to
the

maximum economy of effort and,

after a test of

both layouts

After some years of

adopted the revised case for his plant.
struggle with the traditions of the printing fraternity, the new

was abandoned; but the experiment is a good early illustramotion study.

The best descriptions of motion study as such are given by Mr.
Frank B. Gilbreth.* Mr. Gilbreth endeavors to list the variables
affecting the efficient performance of manual work, and to point
case

tion of the application of

"

Elementary Time Study as a Part of the Taylor System of Scientific Management," Industrial Engineering, vol. 11, p. 85, reproduced in this volume, page 520.
2 "
A Time Study under the Taylor System," American Machinist, vol. 35, p. 689.
A good article is that by Mr. N. E. Adamson, Jr., " The Taking of Time Study"
^

Observations," Industrial Engineering, vol.

'

Guide Pratique du Compositeur.

Motion Study.

Bricklaying System.

Van

10, p. 439.

Firmin Didot, Paris, 1883 (nouveUe edition).

Nostrand Co., New York, 1911. See also ch. xiv of his.

New

York,

&

Chicago, 1909.

SCIENTIFIC

MANAGEMENT

out the extent of their influence.

of the worker, including

They

are classed as variables

anatomy, brawn, contentment, creed,

earning power, experience, fatigue, habits, health,

nutrition, size, skill,

35

mode

of living,

temperament, and training; variables of the

surroundings, including appliances, clothes, color, entertainment,

heating, lighting, quality of material, rewards and penalties, size
of unit moved, special fatigue-eliminating devices, surroundings,
tools, union rules, and weight of unit moved; variables of the

motion, including acceleration, automaticity, combination with

other motions, cost, direction, effectiveness, foot-pounds of work
accomplished, inertia and

momentum overcome, length, necessity,

The application of motion

path, play for position, and speed.
study to operations so small that they cannot be noted by the

human

eye unaided

accomplished by means of moving pic-

is

tures.'

The

and motion study is the

standardization of methods and equipment to secure the largest
output in the minimum time with no material increase of effort.
Once standardization is effected, the method is reduced in detail
to writing in the form of an instruction card * which is given the
result of properly directed time

operator as a guide to the accomplishment of the predetermined

standard of production.
The multiplicity of data from which instruction cards are

compiled must be reduced to such form that they can easily be

*

"

Micro-Motion Study

American,

vol. io8, p. 84.

New

in Efficiency," Scientific
the kind of results achieved is given by

Development

An illustration of

Mr. H. L. Gantt, " Hipped on Motion Study," Industrial Engineering, vol. 8,

"
An Experiment in Motion Study," ibid.,
p. 307, and by Mr. William D. Ennis,
"
vol. 9, p. 462.
Professor Walter D. Scott,
The Rate of Improvement in Effivol.
20, p. 155, presents a useful side-light on its application. The
ciency," System,
following articles show how it may be used in fields outside manufacturing: Mr.
"
E. M. Wooley's
Lost Motions in Retail Selling," ibid., vol. 21, pp. 366, 465,
"
Getting out the Mail," ibid., p. 284, and Mr. J. 0. Frederick and Mr. H. S.
McCormack's " Motion Study in Office Work," ibid., p. 563.
*
These instruction cards are illustrated in the article by Mr. Hathaway on time
"
study referred to above, and in the following: Mr. H. W. Reed's
Following a
Fixed Schedule Under the Taylor System," American Machinist, vol. 35, p. 1020;
and " Two Turret Lathe Instruction Cards," ibid., vol. 36, p. 915. See also Mr.
Frank B. Gilbreth's " The Instruction Card as a Part of the Taylor Plan of Manage'

ment," Industrial Engineering,

'

vol.

1 1,

p. 380.

MANAGEMENT

SCIENTIFIC

36

made available.

Particularly is this true in the case of the conditions affecting the most economical cutting of metal.
The vast
body of information on this subject as given in such a work as
"
Mr. Taylor's " Art of Cutting Metals ^ must, for practical
purposes, be made handy for use by the instruction card man.

the purpose of the sUde rules devised and described by Mr.

Mr. Barth shows how the same methods by
Carl G. Barth.2

This

is

which slide rules for the solution of ordinary mathematical problems have been constructed, may be appUed to the construction
of slide rules for the solution of the

more complicated mathe-

matical problems involved in the determination of the proper

speed, feed, and depth of cut for machine tools.

In spite of the fact that standardization

feature of scientific

management,

has been written on the subject.^

lard,"*

the

movement

is

so fundamental a

nothing of

any consequence
by Mr. P. Bal-

In an

criticized as

is

not

standardization methods stand in the

illustrates

common

article

scientific,

way

because

its

This

of progress.

fallacy in the discussion of standardization

is used by the scientific managers.

It must be
understood that standardization in their sense does not mean

as that term

standardization of product, which is the common acceptance of

the term, but the determination of the best material, equipment,

and process discoverable at any given time and adherence

until a better is found.

So

progress, this conception of

far

from standing

in the

to it

way

of

standardization rather stimulates

and aids more rapid improvement.

'

Trans.
"

A.S.M.

E., vol. 28, p. 31.

Slide Rules as Part of the Taylor System," Trans.

A.S.M.

E., vol. 25, p. 49,

reproduced in this volume, page 405.

"
by Mr. Charles Day, Advanced Practice of
vol.
Economical Metal Cutting," Engineering Magazine,
27, p. 549, and in a book by
Mr. C. U. Carpenter, Profit-Making Management. Engineering Magazine Co.,
New York, 1908. There is a brief but suggestive article by Mr. E. M. Wooley on

"

The

best available

is

in

an

article

"

System, vol. 20, p. 3, deaUng with the

equipment and supplies, and a characteristic note by
Mr. Frank E. Gilbreth on " The First Case of Standardization," Trans., The
Efficiency Society, vol. i, p. 257, taking the shape of a brick as his example.
* "
Scientific Management and Science," Cassier's Magazine, vol. 41, p. 425.
Scientific

Management

standardization of office

in the Office,

SCIENTIFIC

MANAGEMENT
"

"

In the Taylor system, the tenn

yj

has two

routing

significa-

to the physical layout of plants and

in this sense it is most comthe relationship of departments,
tions.

Sometimes

it refers

pletely treated by Mr. Charles Day;

it is

more usuaUy, however,

concerned with the analysis of the sequence of operations

on the work and the determination of the place and time for each
On this latter, the most
operation and group of operations.
intricate feature of the system, practically nothing has been
^
published outside of Mr. Taylor's Shop Management.
Another characteristic feature of the Taylor system
extensive use of classification and
series of articles

and methods

by

is

the

mnemonic symbolization.

the present writer points out the purposes

of classification

and mnemonic symbolization and

application to the various functions of costs, administration,

stores system, routing, and filing.'
Although the Taylor system has a distinctive type of cost

its

its details have not been published.

The first part
Mr. Holden A. Evans' book * deals with the subject, but not
exactly in the manner in which it is practised by the Taylor

accounting,
of

group.'
*

Industrial Plants.

Engineering Magazine Co,

New

York, igri.

The only reference of consequence outside the books is the article by Mr. H. L.
"
The Mechanical Engineer and the Textile Industry," Trans. A.S.M. E.,
Gantt,
*

vol. 32, p. 499.

*

"

C. B.

Thompson,

Memory Tags

"

Giving a Business a Memory," System,

for Business Facts," ibid., vol. 23, p. 21;

vol. 22, p. 588;

"

Taking Factory Costs

"
"
Listing Stock to Index Wastes," ibid., p. 260;
Apart," ibid., p. 131;
Keeping
Tab on Finished Parts," ibid., p. 386; " Right Filing and E&sy Finding," ibid.,
p. 286, reproduced in this volume, page 461.
The only other article on the subject is a brief abstract of a f>aper by Mr. H. G.
"

Benedict,

The Mnemonic Symbolizing

of Stores

under

Scientific

Management,"

Industrial Engineering, vol. 12, pp. 24, 69.

McGraw-Hill Co., New York, ign.

Mr. A. Hamilton Church's The Proper Distribution of Expense Burden, Engineering Magazine Co., New York, 1908, and Production Factors, Engineering
Magazine Co., New York, 1910, describe a method arrived at by him quite
independently, which has been used in part for some time by the Taylor
"
There is a brief anonymous article on Cost and Time Keeping Outfit of
group.
the Taylor System," American Machinist, vol. 29, p. 761, and another by Mr.
"
The Scientific Management of a Foundry," Iron Trade
Charles J. Simeon on
deal with some of the mechanical details.
which
vol.
Review,
50, p. 68,
*

'

Cost Keeping and Scientific Management.

MANAGEMENT

SCIENTIFIC

38

The Taylor method of administering a tool room is admirably

described by Mr. R. T. Kent/ emphasizing the importance of
The
standardization, classification, maintenance, and control.
administration of belting is discussed by Mr. F. W. Taylor.^
Attention has often been called to the fact that the second
cardinal principle in Mr. Taylor's system, the scientific selection
and training of employees, has received no systematic treatment
at the hands of the Taylor group, at least so far as selection is
concerned.
Training is duly emphasized and illustrated by Mr.

Gantt in his Work, Wages and Profits referred to above. There

are two good popular articles on the subject by Mr. E. M. Wooley,
"

The One Best Way," and

referred to above.
The only
of

"

The Wanton Waste

thing I

of Labor,"
have found on the selection

employees by any one even remotely connected with

scientific

a pamphlet by Mr. Harrington Emerson,' and

this is an argument for the application of a system of selection
which can only be characterized as a refined and shghtly modern-

management

is

ized phrenology, described in a

M. H.

Katherine

book by the

originators, Dr.

Blackford and Mr, Arthur Newcomb.*

It must be evident from this survey that the literature dealing

with the actual method of applying scientific management is as
This situation is due to a number of factors,
yet quite meagre.

one among which

is

the natural reluctance of specialists to divulge

the details of their profession, because of their apparently well-

grounded fear that the attempt to describe methods which must

be modified to meet a wide variety of contingencies must necessarily be inadequate and to a certain extent misleading, and that
therefore

attempt at all to describe them in

In view, however, of the rapid extension of scientific
safer not to

it is

writing.

management

to

many

ripe for such

1

"

and the compara-

varieties of industries,

"

tive scarcity of qualified

appears that the time is

methods as may be immediately

experts,"

an exposition

The Tool Room under

of

Scientific

it

Management,"

reproduced in this volume, page 434.

"
Notes on Belting," Trans. A. S. M. E., vol.

Industrial Engineering^

vol. 9, p. 87,
*
'

The

Street,
*

Scientific Selection of

New

Employees.

15, p. 204.

The Emerson Company, 30 Church

York.

The Job,

the

Man,

the Boss.

Doubleday, Page

&

Co.,

New

York, 19 14.

MANAGEMENT

SCIENTIFIC
and

directly useful to

any manager

39

of the requisite intelligence to

sense their place in the system and to apply

thoroughness and discretion necessary.

them with the

This criticism of ineagreness does not apply to one of the principal

methods

of scientific

management,

the use of wages as

There is nothing new about such use of wages,

an incentive.
but the method of the Taylor group is characteristically different.

With them wages

are not used primarily as an incentive to production but as an incentive to the acceptance of standardized

conditions

training and the following of instructions.

is the direct result not of the bonus or

and

Increased production
differential piece rate

systems but of the utilization by. the em-

ployee, in consideration of higher wages, of the improved methods,

materials and equipment provided him by the management.

This was the point, though

"
Taylor's paper on

ment

it is

not

made very

clear, in

Mr.

Piece Rate System and Shop Manage"

referred to above, and it runs all through Mr. Gantt's

Work, Wages and Profits}

^

"

This

brought out a

is

little

of

A Rational Basis for Wages,"

books and

articles

on

better

Trans.

by Mr. Harrington Emerson in a paper on

S. M. E., vol. 25, p. 868.
Out of the mass

this subject, the following are also suggested,

not necessarily

because they are written by members of the Taylor group, which few of them are,
but because a study of them will help make clear the philosophy of the use of wage
The following are comparative discussions of various
systems by that group.
methods of wage payment: Mr. S. E. Thompson's " The Taylor DiflFerential Piece
Rate System," Engineering Magazine, vol. 20, p. 617; " DifiFerentlal Piece Rates "
"
The Efficiency
(anonymous), Engineering, vol. 80, p. 413; Mr. Clive Hastings'
of the Worker and His Rate of Pay," American Engineer 6* Railroad Journal, vol. 81,
p. 238;

Mr. Harrington Emerson's " Different Plans

of Paying Employees," Iron

Age, vol. 82, p. 1150; and Mr. C. B. Thompson's "The Reason for a Payroll,"
"
When Higher Wages Pay," ibid., p. 339, reproduced in
System, vol. 22, p. 249, and
this volume, page 684.
To get one's bearings in the discussion, the articles by
Messrs. Towne, Halsey and Rowan, referred to above, should be read, and the
"
The Value of Incentives," American Machinists,
following: Mr. W. O. Walker's
"
Piece Rates versus Bonus," ibid., vol.
vol. 26, p. 996; and Mr. C. J. Morrison's
Highly interesting in this connection are also Mr. Carroll D. Wright's
36, p. 178.
"
Profit Sharing," Bureau of Statistics of Labor, No. 15; and the Report of the
British Board of Trade on Profit Sharing and Labour Co-partnership in the United

Kingdom.

Wyman &

Sons, London, 1913.

SCIENTIFIC

40
5.

The Personal Factor

MANAGEMENT
in Scientific

Management

The apparently cold-blooded statements of Mr. Taylor

Shop Management and The Principles of Scientific Management

in
in

regard to his methods of training employees and the mathematical

determination of the incentives which actuate their conduct have
"
led to a considerable discussion of the treatment of the
human
"
factor
by scientific management. Discussion is usually based

on the truisms that system cannot take the place

of honesty

and

intelligence, that specialization can be carried too far, that driving

is an undesirable feature of factory management, that the work-

men

should not be

made

into automata, that they should not be

working against each other's interests, that attention should

not be centered exclusively upon men above the average of ability,
set

that the factors of habit and prejudice should not be ignored, that
no solution of economic problems is complete which ignores the

problem of distribution, and that the desires and aspirations of the

men toward self-government and democracy must be recognized.
Most of these points are mentioned in the Report of the House

Committee on Labor appointed to investigate the Taylor and

other Systems of Management,^ leading to the conclusion that no
recommendations

were

necessary,

presumably

because

the

criticisms suggested did not apply to the Taylor system.

The importance of a consideration of the human problem is

The nature of the
emphasized by Mr. WilUam C. Redfield.^
psychological problems involved and an indication of the method
approach to their solution are discussed at some length by

of

The significance of the work

Miinsterberg.^
begun by Mr. Taylor and his associates as it appears to a psychologist is emphasized, and examples are given of the more refined
Professor

Hugo

methods by which the psychological laboratory may be made an

aid in the discovery of principles for industrial application.*
*

'

Government Printing OflSce, Washington, 19 12.

"
The Moral Value of Scientific Management,"

Atlantic Monthly, vol.

no,

p.

411.
*

Psychology and Industrial Efficiency. Houghton, Mifflin Co., Boston, 1913.

The fear that scientific management is an effort to substitute a system for
"
The Personal Equation in
integrity and ability is voiced by Mr. F. J. Whiting in
*

MANAGEMENT

SCIENTIFIC

^X

In a remarkable book by Miss Josephine Goldmark,^ there is a

suggestion that, although scientific management has thus far
avoided the

and

pitfall of driving, there

has not been the intensive

which might reasonably be exfrom

the
scientific
attitude
of the leaders in the movement.
pected
'
F.
H.
Mr.
Dwight insists that the bonus as applied at the Bethlehem Steel Works is but another method of driving.
The
answer
to
the
criticism
of
no
matter
what
completest
practice,
scientific

study of fatigue

may be said in regard to the absence of a scientific studyof fatigue,

is

made by Clark and Wyatt,' who give

the results of an intensive

investigation of the effect of the Taylor system on women

This inquiry, begun with the expectation
employed under it.
of finding the science of driving reduced to practice, ended after

exhaustive personal study in many plants in a complete exoneration of the Taylor-Gantt methods from this charge.*

The

criticism

Scientific

that

management suppresses the

workman is presented by Mr.

scientific

and ambition

initiative

Management," Stone

of the

&

Webster's Journal, vol.

over-specialization finds expression in

an

"

8, p.

The

411.

fear of

(London) on
apparently the point of an article

editorial in Engineering

Scientific Management," vol. 93, p. 289, and is

"
by Dr. Luther H. Gulick on The Human Element," Transactions of the Effi"
vol.
and
of one by Mr. A. Hamilton Church on
Intensive
ciency Society,
i, p. 181,
Production and the Foreman," American Machinist, vol. 34, p. 830.
The answer
"
to these may be deduced from Mr. M. P. Higgins'
Intensified Production and Its
Influence upon the Worker," Engineering Magazine, vol. 20, p. 568; Mr, Frank H.

"The

'

Rise of Labor Through Labor-Saving Machinery,' ibid., vol. 27, p. 836;

Mr. A. E. Outerbridge, Jr.'s " The Educational Influence of Machinery," ibid.,
"

Rose's

vol. 9, p. 225,

The value
fitted

and

of scientific

and

The Emancipation of Labor by Machinery,"

management in finding the place to which the

in fitting the

man

perfectly to

fill

it is

emphasized

"

in

ibid., p.

laborer

1012.

is

best

an editorial in
Mr. David Van

Helping a Man to Find His Place," vol. 18, p. 279; in

Profitable Ethics," in Technology and Industrial Efficiency, p. 207,
McGraw-Hill Co., New York, 191 1; and in Mr. Harrington Emerson's " Ethics
Machinery,

"

Alstyne's

and Wages,"
*

'

Outlook, vol. 99, p. 682.

New York, 191 2.
Fatigue and Efficiency, The Russell Sage Foundation.
"
The Taylor System as a Machinist Sees It," American Machinist, vol. 34,

p. 989.
*

Making Both

cially chap. 7,

Etuis Meet.

The Macmillan

Co.,

New

York, 1911.

See espe-

reproduced in this volume, page 807.

Other significant articles on the same subject are: " Scientific Management as
viewed from the Workmen's Standpoint," Industrial Engineering, vol. 8, p. 377,
"
F. W. Taylor and
reproduced in this volume, page 835, and Mr. Wilfred Lewis'
the Steel Mills," American Machinist, vol. 34,.p. 655.
*

SCIENTIFIC

42

MANAGEMENT

Frank C. Hudson and further discussed by Mr. Holden A.

Evans,* and particularly and most effectively by Mr. Charles B.
^
Going who points out that one distinctive feature of the modern
^

systems of management

is

the restoration of the individuality of

the workman.

The complaint

that the effect of the task and bonus

to concentrate the efforts of each

own

success

article,

but

workman

method

exclusively

upon

is

his

and

well-being, has not been dignified with a formal

given expression occasionally in the hearings before

is

House Committee on Labor.

It is pretty effectively anE.

D.
K.
Lieut.
Klyce,^ which points out
by
the absolute necessity of mutual helpfulness and cooperation in

the

swered in

an

article

the Taylor system.

Mr. Taylor

talks so

much about

the

"

first class

emphasized so little his explanation that

he means the man adapted to the job he

by

the

man

"

and has

first class

man

is doing, that the supaims

at the selection of
natural
that
this
system
only
position
the best only and the elimination of the average and mediocre.^
is

by Mr. Taylor do unquestionably show the

effect of his method but this should not be

Illustrations given

strongly selective
allowed to distract attention from the
;

effect

of

systematic

training on the development of average and mediocre into

"
"
men.
first class
The undue haste with which outside followers of scientific
management have attempted to revolutionize the methods and
habits of thought of workmen and employers has called forth
impressive and valuable warnings from Mr. James Hartness.^

The
is

relation of scientific

management

to larger social

problems

hinted at by Mr. Taylor in The Principles of Scientific Manage

" The Machinist's Side of

Taylorism," American Machinist, vol. 34, p. 773.
"
"
AmeriEffect of the Taylor System: What is to Become of the Mechanic ?

can Machinist,
' "
The
*

vol. 33, p. 1095.

Efficiency of Labor," Review of Reviews, vol. 46, p. 329.
"
Scientific Management and the Moral Law," Outlook, vol. 99, p. 659.

This misunderstanding underUes the criticism in Mr. John R. Godfrey's

"Eliminating the Inefficient Man," American Machinist, vol. 34, p. 1232.
* "
The Factor of Habit," Transactions, The Efficiency Society, vol. i, p. 237.
more effective is his book. The Human Factor in Works Management.
Still
*

McGraw-Hill Co.,

New

York, 1912.

SCIENTIFIC

MANAGEMENT

43

ment and the ultimate bearing of the application of the system

to social welfare, through the reduction of the cost of production
and the increase of the purchasing power of the consumer, is
If it could be supposed that the tendencies
briefly suggested.
inherent in the system would be allowed to work themselves out

to their logical conclusions, social and economic consequences of

This
a far-reaching nature would reasonably be expected.
possibility has raised unduly the hopes and enthusiasm of some
of the advocates of the movement and has brought down upon it

the criticism of those calmer individuals

who

realize, in the first

place, that no economic tendency ever does or can work out to its
logical conclusion, and, in the second place and particularly, that

production and consmnption are but a part of the entire economic

problem. Those who are looking for a panacea for social ills and

who suppose

that scientific

management was

offered as such a

panacea are keen to point out that

it does not deal finally with the

Professor Edward D. Jones
was
problem of distribution.
acute enough to see that Taylor's work developed a principle of
distributive justice, namely, the rewarding of the individual for
his individual performance, and was not disappointed that it did
*

not go further in this matter than it professed to go. Mr. Dexter

S. Kimball in the article mentioned above, Mr. Ralph E. Flanders,'

and Mr. W. H. Herschel

'

have pointed out, with the

air

of making a discovery, that the Taylor system does not solve the
Mr. Louis Duchey * hails the failure
problem of distribution.
of the system to solve the system of distribution and its onesided emphasis on production as the force which will do most to

intensify

class

consciousness

and hasten the destruction of

capitalism.
*

Review

of Taylor's

"

Shop Management," American Economic Review,

vol. 2,

p. 369.
*

"

Scientific

Management from a Sodal and Economic Standpoint," Machinery,

vol. 18, p. 764.

"

Will the Ultimate Result of the

Social Philosophy and the Taylor System
"
Taylor System be Beneficial ?
Engineering News (London), vol. 65, p. 577.
* "
Scientific Business Management.
What is it ? What effect Will it Have

on the Revolutionary
p. 638.

Movement?"

International Socialist Review, vol.

11,

SCIENTIFIC

44

MANAGEMENT

The test of democracy has, of course, been applied to this

Mr. Meyer Bloomfield points out, apparently
movement.
with some misgiving, that the loyalty of the employee must be
secured by keeping the enterprise democratic; while Mr. Paul U.
Kellogg,^ one of the editors of the Survey, is more specific to the
effect that this new industrial force must be sociaHzed.
Mr.
Frank T. Carlton ^ goes still further by pointing out how the
^

movement should be made democratic by

giving the workman a

voice in the determination of the conditions and the rate of bonus

imder which he will work. Scant agreement with this conception can be found in the writings of Mr. Taylor.
His attitude

and that

of

men

of similar training

and experience

is

that the

employee has no right to control or participate in the manage-

ment

of the establishment.

If

this is strictly true,

there

is

obviously in scientific management no place for recognition of

trade unionism, the collective bargain, and other mutually

agreed arrangements.
Scientific

6.

The

attitude of

Mr. Taylor and

labor organization

Thus he

says, in

Management and Organized Labor

is difficult

his

immediate followers toward

from their writings.

to determine

Shop Management:

"

There

is

no reason why

labor unions should not be so constituted as to be a great help

both to employers and men. Unfortunately, as they now exist
if not most, cases a hindrance to the prosperity
acknowledges the current obligation of society to
organized labor for increased safety, shorter hours and in some
It appears to be his belief,
cases better working conditions.
however, that where scientific management is practised fully and

they are in many,

of both."

He

"
"
"

Scientific

man

automatically protected by the

employer, owing to the fact that the adminis-

completely, the working

self-interest of his

is

Management: Cooperative or One-Sided,"

A National Hearing for Scientific Management,"

Survey, vol. 28, p. 312.

Survey, vol. 25, p. 409.

Management and the Wage Earner," Journal of Political Economy,

reproduced in this volume, page 720.
* "
The Human Element in Scientific Management," by Messrs. H. R. Towne,
Oberlin Smith, John Calder, A. C. Higgins, and A. Falkenau, Iron Age, April 11,
'

Scientific

vol. 20, p. 834,

191 2.

SCIENTIFIC

MANAGEMENT

4^

and bonus is dependent on the willing cooperaand

the maintenance of his efficiency through the
tion of the man
Nowhere is he very
complete standardization of conditions.
of
the
the
collective
on
bargain in a
however,
clear,
practicability
while
other
hand he is
on
the
scientifically managed regime;
methods
in
denunciation
of
some
of
the
his
forceful
and
definite
tration of the task

of unionism, particularly the restriction of output.

Whatever Mr. Taylor's real view of the matter

may

be, the

that the labor unions have taken a violent antipathy to

This is at least partly due to what one
scientific management.
"
unfortunate and tactless statements" ^
writer calls Mr. Taylor's
There are, however, other and more fundain regard to labor.
fact

is

mental reasons for

this

An anonymous

lack of agreement.

writer in the Electrical Railway Journal^ points out that specialization, through its easy training of the unskilled, strikes at

the heart of labor unionism as at present organized. An editorial

Work ' prophesies that " the foolish unions will

in the World's

oppose
lose."
insists

as they opposed the introduction of machinery, and

The Century Magazine* observes that the labor union

it

upon

"

Mr. G. F. Stratton

equality."

in the Outlook

finds the point of divergence in the fact that the unions set

minimum wage which

the employers treat as a

maximum.

'

The

found in the policy of

that restriction of output is a

chief reason, however, appears to be

restriction of output.

The

belief

confirmed labor union policy is apparently borne out by the

Eleventh Special Report of the United States Commissioner of

Labor, on the Regulation and Restriction of Output,'

one of

those government reports which, like the report on the hearings

Committee investigating the Taylor System and

before the Labor

the Report of the Civilian Expert Board on Industrial ManageStates Navy Yard, which favored the applica-

ment of the United

Mr. C. H.

"
Stilson,

Letter on Scientific

Management," American Machinist,

vol. 35, p. 175.

*

"

"

"

"

Government Printing

Management," vol. 41, p. 451.

Management and the Labor Unions," vol. 22,
Taking Ambition out of the Workman," vol. 82, p. 462.
Ca-Canny and Speeding Up," vol. 99, p. 120.
Scope of

Scientific

Scientific

Office,

Washington, 1904.

p. 14311.

46

SCIENTIFIC

MANAGEMENT

tion of scientific

management

to the

"

and mysteriously

out

"

of print

navy

yards,

was suddenly

almost immediately after

publication.

As was seen
with the

in

an

scientific

earlier section, railroads in their controversy

managers have not hesitated to point to the

one of the reasons for the

opposition of the labor unions as

impracticability of the application of the system to their industry,

and to substantiate their argument, as in an article in the Iron

Age^ by quoting the

restrictive laws of

such an organization as

the International Iron Holders' Union.''

The published

expressions of labor union leaders referring

management have ranged from an attitude

directly to scientific

Mr. John
suspended judgment to one of bitter antipathy.
Golden of the Textile Workers,^ is non-committal but suspicious.
Mr. J. P. Fry of the Iron Molders * is sure that it is at least
of

unscientific.

Mr. James Duncan, vice-president

of the

American

Federation- of Labor,* conveys the impression that scientific

management is the summation of all the evils of all the genera-

working man.

tions of oppression of the

Yet

this opinion is

mild compared with that of the before-mentioned Mr. James

O'Connell (now a member of the National Commission on
Industrial Relations, which just
in

scientific

an

now

is

once more investigating

official letter to

Machinists' Unions,

management)
"
which he says:
Wherever

this

system has been

resulted either in labor trouble

and

failure to install the system,

in

or

it

tried it

has

has destroyed the labor organization and reduced the men

and low wages, and has engendered such an air

to virtual slavery

among the men that each man regards every other

trust that you will
as a possible traitor and spy.
be impressed with the importance of this matter, and will see the
of suspicion

man
1

" Railroad
Efficiency and the Labor Unions,"

Other interesting
are those by Mr. H.

articles

M.

on the attitude
"

Norris,

We

vol. 87, p. 476.

of the unions towards

premium plans
Actual Experience with the Premium Plan,"

"
Piece
Engineering Magazine, vol. 18, pp. 572, 689, and Mr. James O'Connell,
Work not Necessary for Best Results in the Machine Shop," ibid., vol. 19, p. 373.
* "
The Attitude of Organized Labor," Journal of Accountancy, vol. 12, p. i8g.
* "
Relation of Scientific Management to Labor," Iron Trade Review, vol. 52,
p. 917.

"

Efficiency," Journal of Accountancy, vol. 12, p. 26.

SCIENTIFIC

MANAGEMENT

47

The published articles in

Act quickly."
impending danger.
are
this
on
numerous;
very
they are not listed
subject
newspapers
here as they are variations on the same theme.
The Machinists Union and after it the American Federation of
Labor have made the application
government

of scientific

management

arsenals, particularly in the arsenal at

in

Watertown,

Massachusetts, the object of their oflScial attack. Reference has

already been made to the report of the committee appointed to

In the 1913 report,^

investigate the trouble there in 191 1.
General Crozier deals with the recent petition of the Watertown

employees referred to above.

in the

gun
Labor at

This petition

campaign inaugurated by

is evidently the first

the American Federation of

their 19 13 convention in Seattle, at

which they decided

extension of the Taylor system.*

The best articles counselling the unions to take a saner point
of view are those by Mr. Louis D. Brandeis,' in which he argues

ofiicially to fight the

that scientific management is but the application of thought and

knowledge to industry, that increased efiiciency and production
operate in the interest of the working man, and that its progress
The same thought is
and ultimate success are inevitable.
expressed by Mr. Harrington Emerson.*

On the other hand,

scientific

managers have been

freely advised

to recognize more fully the necessity of cooperation with the

This is the attitude of Mr. John R. Commons,' who
unions.

points out that the bonus system implies an individual bargain

with the workman, and therefore strikes at the very existence of

the union, unless

its

terms can be

made

the subject of a collective

Report of the Chief of Ordnance, 1913. Government Printing OflSce, WashReproduced in this volume, page 747.
'
Interesting articles bearing on the subject are those by Mr. Max H. C. Brom"
The Rock Island Arsenal Labor Trouble," Iron Age, vol. 89, p. 476; by
bacher,
"
Lieut.-Colonel W. S. Peirce on
Government Shop Management," ibid., p. 476;

ington.

and an article, " Scientific Management at United States Arsenals," ibid.,

1022, which includes a statement of former Secretary of War, Stimson.

The New Conception

vol. 88, p.

of Industrial Efficiency," Journal of Accountancy, vol. 12,

and " Organized Labor and Efficiency," Survey, vol. 26, p. 148.
"
The Fundamental Truth of Scientific Management," Journal of Accountancy,

p. 35,

vol. 12, p. 17.

"

Organized Labor's Attitude Towards Industrial Efficiency," American

Economic Review, vol. i, p. 463.

SCIENTIFIC

48

MANAGEMENT

bargain; of Dr. John H. Gray,^ and of the present writer,^ who

holds that the labor unions may and should assist in the deter-

mination of the standardized conditions and of a day's work and

its attainment, and that the existence of the unions is and will
continue to be necessary to maintain an adequate

minimum

wage.
*

"

How Efficiency should benefit

the Employer, the Employee, and the Public,"

Transactions, The Efl&ciency Society, vol. i, p. 67.

"
*
The Relation of Scientific
C. B. Thompson,

Management

to the

Wage

Prob-

lem," Journal of Political Economy, vol. 21, p. 630, reproduced in this volume,

page 706.

INDUSTRIAL ADMINISTRATION AND SCIENTIFIC

MANAGEMENT
By FORREST

E.

CARDULLO

Reprinted by penniasion of Idackinery

What
The work

Constitutes Scientific Management

of the engineer

may

be divided into three great

departments, since it has to do with the design of machinery, the

methods of constructing and operating it, and the administration

which it is constructed and operated. The first

two departments (namely the design of machinery, and its construction and operation) have receive.d the careful attention of
Even at the begintrained specialists for more than a century.

of the plants in

ning of the nineteenth century when engineers

first

began to

apply the resources of modern science to their work, the arts of

machine design and construction were in an advanced state,

owing to the efforts of many generations of skilled mechanics.

The third department of engineering work, however, has lagged
far

behind the other two, since comparatively little attention has

it.
It is doubtful if any substantial advance

been bestowed upon

in industrial administration

was made

in the thirty centuries

preceding the year 1880, and even at the present time only a few
men are devoting serious attention to the fundamental problems
of

management.

importance of industrial administration

At

the present time, industrial administration is the

important of the three departments of engineering work.

most
It is

not, of course, confined to purely engineering projects, but is an

essential part of all commerce and manufacturing.
Since the

greater part of our working population is engaged in some kind

of industrial work, the proper supervision of their efforts is a

matter of prime importance to the well-being of the country.

SCIENTIFIC

50

Most of
in

the

Hence

MANAGEMENT

the readers of Machinery are, or ought to be, interested

proper administration of the mechanical industries.

this series of articles will discuss

more

particularly the

management of shops and factories engaged in the metal trades.

As has already been intimated, the art of industrial administration was stationary for a long period of time.
In spite of tremendous changes in our social, economic and industrial systems,
we have been content to adapt or modify methods which originated thousands of years ago. I may liken the system of adminwhich obtains in most industrial plants to one of those
"
"
which dot our New England landscape.
old homesteads

istration

They

started as a log cabin, to which

was successively added a

"
modern
lean-to, a barn, a shed, an ell, an upper story, and other
As a result, they are roomy
conveniences."
and also inconvenient.
The common system of industrial administration is

constructed of the surviving remains of Greek slavery, Roman

mihtarism, Saxon serfdom, the mediaeval guilds, and various
other historical oddities, slightly altered to adapt them to the
twentieth century conditions, and engrafted on one another in

very

much

system

of

the same

way

as the additions to the old house.

This

management has been a growth in which each manager

appropriated those developments of the past which appealed to

him. Sometimes methods were adopted as a result of a carefully

and properly conducted

investigation, but nine times out of ten

they were adopted because the manager

"

"

guessed

they were

the best ones.

CONVENTIONAL MANAGEMENT

We will

designate the system of management described in the

"
conventional management."
It
preceding paragraph as
must not be inferred from the description the writer has given that

management is always and utterly objectionable.

manager is a good guesser, he will usually choose good

conventional

When

the

If his lieutenants are able and energetic,

methods of work.
Of course the system is
these methods will be well carried out.
not perfect, and in many cases it is not even satisfactory. Nevertheless conventional management can be made to work, and to

MANAGEMENT

SCIENTIFIC
work

when

well,

Different

men

different shops

it is

in the

will, of course,

we

51

hands of capable administrators.

adopt different methods, and in

will find that the

work

of administration is

In every case, however, the

carried out in very diflferent ways.
distinguishing feature of conventional management is the acceptance of something already in existence and the choosing,
guess,

by

between methods which have been developed by some one

else.

SYSTEMATIC MANAGEMENT

Within the past thirty years, however, two other systems of

"
management have arisen. One of these may be called systematic management," while the other has been named by its
"
scientific management."
The systematic system
originators,
of management is the development of the clerk and the book-

aims at the keeping of careful records and the colIt aims to proceed
lecting and classification of information.
records.
It aims to inform
continually
bettering
existing
by
keeper.

the

It

management

methods

as to the preferable one of two alternative

of work, each of

which must be

tried out in practice.

Systematic management is, then, simply the keeping and comparison of records in order to determine the relative value of

methods

of

work.
SCIENTIFIC

MANAGEMENT

management, on the other hand, has been develop>ed

Scientific management aims at the careful
by the engineer.
of
every problem of the industrial world in order to
investigation
Scientific

determine

its

best solution.

It is not content to rely upon records,

or upon the judgment of the most experienced workman.

It
brings to its aid all the resources of science.
Every p)ossible
method of performing a piece of work is carefully analyzed and
the best elements of

form a new method.

all of

the methods combined in order to

Having established the best methods of

work, scientific management then instructs the workman how
best to perform his task, and offers an incentive to do it in the
Scientific management is often called the
prescribed manner.
"
"
in
honor
of its foremost exponent.
Taylor System

SCIENTIFIC

52
Scientific

management

is

MANAGEMENT

not an invention but a discovery.

It is the application of the scientific

of the industrial world.

method

of research to the

In so far as

it is concerned
problems
with the investigation of these problems, it is science and nothing
In so far as it is concerned with the proper application of
else.

the results of these investigations,

else.

The combination

is

it is

management and nothing

therefore correctly termed

"

scientific

management."
Just as in the old days, certain types of machinery reached a
very high state of development without the aid of the scientifically trained engineer, so in these days, the administration of
certain of our industries has been very highly developed without

In some kinds of work, as for

the aid of scientific management.
watch making, the problems of administration are

instance,

simple on account of the limited character of the product and the

extensive use of automatic machinery.
In industries of this
class reasonable piece rates have been established by a series of
cuts and other prolonged labor troubles.
Such industries have
arrived at an efficient system of management by a very strenuous

and unpleasant process, and the adoption of scientific management would not always bring notable advantages. On the other
hand, most industries are not in this class. The character of the
labor employed, the quantity and character of the output, the
kind of machinery used, and the kind of material supplied is
In the first class of industries a process of
continually changing.
evolution extending over two or three generations has established
In the second class of industhe best methods of management.
tries the

best methods are continually changing as conditions

change.

In most industries, the introduction of

promises to effect great gains,
of our

and

whole industrial system.

applied to

many

scientific

management

to greatly increase the efficiency

Scientific

different kinds of work,

management has been

and seems

to be

almost

It has brought to light

not quite universal in its application.
administration of
in
connection
with
industrial
many problems

if

whose very existence we were previously ignorant. Every time

it is applied to a new set of conditions, even in the same industry,

SCIENTIFIC

MANAGEMENT

53

new problems

are presented.
If, in the near future, it is extenor
even to any one industry, it will
industries
all
sively applied to
give rise to very serious political, social and economic problems

as well as intensify a great

pressing for a solution.
tion of scientific

many

of the problems that are

now

It will be seen, then, that the applica-

management

in industrial administration is

not

only important to the factory owner, the superintendent, and the

workman, but to the law maker, the citizen and, in fact, to every

man, woman and

administration

is

child in the country.

a very great one, but

The field of industrial

we cannot appreciate the

importance of a right understanding of the problems which will

be raised by the extensive introduction of scientific management
until
ical

we

and

realize

how this

field is interrelated

with our entire polit-

social system.

AN EXAMPLE OF EFFICIENT MANAGEMENT

which cannot be controverted, that very few shops
more than sixty per cent of the work
would be possible for them to produce with the same

It is a fact

in this country produce

which

it

and the same physical equipment. A few of the best

wage
managed shops produce probably eighty per cent of the work
which it would be possible for them to produce, and occasionally
departments in well managed shops reach an efficiency of over
On the other hand, there are numerous
ninety-five per cent.
roll

shops in this country which, without any considerable change in

their equipment or increase in their wage roll, could produce from
three to five times as much work as they put out at present.
This statement, extraordinary as it may seem, is not the result of
a wild guess, but may easily be verified by any one who will

make

Some two years ago,

a study of conditions in these shops.
made a trip through southern New England inspecting

the writer

some of the representative industries. The most efficient department that I ever saw was the grinding department of the Norton
Grinding Co. Worcester, Mass. I do not know that the engineer,
Mr. Norton, made a conscious attempt to install the system
developed by Mr. Taylor, but I do know that by a careful study
of the work of this department he has raised the standard of
,

SCIENTIFIC

54

efficiency so that every

man

MANAGEMENT

that I saw

ously in producing a very high class of

was employed continuwork with a rapidity that

was astonishing, and by methods which the average shop foreman

In conversation, Mr. Norton emwould say were impossible.
phasized the necessity of a careful study of shop problems and
stated that such problems were worthy of attention from the most
Although he never once used the term
highly trained engineers.
"
was
it
scientific,"
quite evident that his study was scientific
in the best sense of that term, and that no single problem which

had presented itself in his grinding department ever escaped a

most thorough and searching investigation.
I shall always
remember this department of Mr. Norton's work as one of the
finest examples I have ever seen of excellent management, and
also I shall always remember the type of employee which I saw in
the department as a representative of the very finest type of the
American mechanic. Every man seemed to be a man of unusual
intelligence and skill and seemed to be putting into his work that
indefinable something, which for the lack of a better term we

designate as

"

brains."

A third matter which attracted my attention was the fact that

Mr. Norton seemed

to be personally acquainted with every

man

working in that department; seemed to know their especial

abilities and the work for which they were best fitted, and seemed
to take great interest in seeing that each man was doing the kind
So far from
of work for which he could realize the highest pay.

adopting the attitude of the average employer, who is inclined

to think it a matter of good business policy if he can drive a
sharp bargain with his men, and obtain a day's work for a miniNorton spoke with pride of the unusual earnings

mum wage, Mr.

of several of his

men who were working under a premium

system.

AN EXAMPLE OF INEFFICIENT MANAGEMENT

At another time

I visited a concern in

that the majority of the

was

useful.

it

seemed to

me

doing absolutely nothing that

This concern was one of the largest ship building

yards of the Atlantic coast.

any

which

men were
I

of those responsible for its

had no opportunity to talk with

management and therefore can-

SCIENTIFIC

MANAGEMENT

55

not say what attitude they adopted toward various questions of

administration.
There did, however, seem to be a dearth of
"
foremen, and as in the time of the Judges in Israel,
every man
did that which was right in the sight of his own eyes." I remem-

ber seeing one man who was engaged in chipping a plate with a
pneumatic hammer, and he had two assistants whose duty
seemed to be to drag the air hose after them and carry his hammer

went from place to place. At another place I saw a man

measuring a plate and marking upon it an opening which was to
be made in a bulkhead, with five or six workmen lounging around
him doing nothing.
Most of the work of the establishment
seemed to be conducted in that manner, and altogether, it was the
most disgusting exhibition of shiftless management that I have
ever seen in my life.
The matter was so apparent that several
as he

who were with me at the time called my attention to

it, although they were men unaccustomed to shop administration and most of them were men totally unfamiliar with methods
students

of shop work.

ADMINISTRATION OF AVERAGE AMERICAN SHOP

The administration

American shop is a mean

between the slipshod methods of the shipyard and the careful
and efficient methods of the Norton Grinding Co.
In such a
of the average

shop such obvious inefficiency as I have described in the case of

the shipyard would be promptly squelched.
On the other hand,
in such a shop, careful investigation will usually show very great
inefficiency in many departments although such inefficiency is

not at

is due to a variety of causes.

"
and
the
workmen
are
may
nursing their
"
in
order to avoid discharge.
It may be that they are
jobs
prolonging an easy and agreeable task in order to avoid being
It may be
assigned to a more difficult and disagreeable one.
that illness or unsanitary shop conditions have deprived the workman of a measure of his usual energy and ability. In many shops,
inefficiency has nothing to do with the workmen, but is entirely
All of the men appear to be
chargeable to the management.
and
the
work
to
be
busily employed
carefully conducted, but at

It

first

obvious.

be that work

This inefficiency

is

slack

SCIENTIFIC

56

MANAGEMENT

the same time, the type of machines used, the sequence of operations employed, the conduct of the toolroom, or any one of a

dozen different things for which the management is or should

be directly responsible, greatly reduces the efficiency of the shop.
The writer was once employed by a firm that manufactured
oil trade.
Each of these engines
was equipped with two flywheels weighing about 600 pounds
apiece and the only machine work done upon the wheels consisted in boring the hub, reaming it, and cutting the keyway.
I was employed to bore the hubs, which was done upon a homemade machine having a stationary spindle and a revolving table.
There was a crane which was used to place the wheels upon the
table, but before the wheels could be lifted by the crane, they had
to be brought about 500 feet from that part of the yard in which
I was instructed to get
they were stored after being cast.
another apprentice who was named Gus, to help me roll them
from the storage yard to a point under the crane. During this
time, both my machine and Gus's machine were idle, since they

small steam engines for the

were of a character which required constant attention. This job

had to be done several times a day, and I doubt if those two machines were running more than half the time.
As I remember conditions in that shop, I can see that there

were endless

possibilities of increasing the

the methods

of

management.

output by improving
who is not

Nevertheless, to one

in the habit of thinking about the possibilities in this line, the

shop appeared to be busy and well managed. It was conducted

by a foreman who had an excellent reputation and who was

"
how to get out the work." He was a man
supposed to know
of considerable experience and knew about how much time
certain work would take when done by the average machinist
in the average way.
Most shops would have considered him a
valuable acquisition, and in a great many shops he would have
The ship building company
introduced notable improvements.
have already described would have been fortunate had he taken
but any department managed by him would
have made a sorry showing alongside of the grinding department
of the Norton Grinding Co.
He employed the usual methods of
I

their affairs in hand,

MANAGEMENT

SCIENTIFIC

conventional management, that

their

owl methods

men

or those

inefficient.

is,

57

he allowed his

of doing work,

men

to choose

and then eliminated those

methods which were obviously incompetent or

He was

not at

all

versed in the scientific plan of

finding the methods of greatest efficiency,

in the administration of his department.

and

of applying

them

MISAPPREHENSION OF PRINCIPLES OF SCIENTIFIC

MANAGEMENT

many men say, in regard to scientific

that
have
management,
they
managed their affairs scientifically
without knowing that they were scientific.
However, when I
I have heard a good

have come to talk over the matter at length with them,

that what they

mean

is

that

some

I find

of the inefficiencies not usually

obvious had become apparent to them, and that they had adopted
some of the methods of scientific management in attempting to
eliminate the inefficiencies which had

This
tific

come

to their attention.

a very different matter from installing a system of scienmanagement, although the efficiency of a good many plants
is

had been greatly increased in this manner. However, the men

of whom I speak do not understand what scientific management

They think that

is.

scientific

management

is

a collection of best

methods, that it necessarily involves the use of certain kinds of

blanks and records, or that it is a form of organization, a method

wage payment, or something of that kind. Of course such

things are employed in scientific management, but they are only
the tools which it uses, and just as a carpenter will change his

of

tools for different kinds of

adopt

different

methods,

work, so

scientific

management

will

different forms, or different plans of

organization, as conditions change.

great deal of harm is likely to

of

some

of the

come from the unintelligent

methods of scientific management

employment
by such men, even when they are acting in the best of faith.
The introduction of some of the methods will often cause antagonism among workmen, and they will sometimes prove ineffiIn either case scientific management
cient under new conditions.
is blamed for the failure, when, as a matter of fact, scientific

SCIENTIFIC

58

MANAGEMENT

management would probably have employed other methods

under the given conditions. Scientific management must not be
confounded with its forms or its methods, just as a man must not
be confounded with his clothes, or a religious creed with
of church organization.

its

form

METHODS UNDER DIFFERENT TYPES OF MANAGEMENT

It will help us in our consideration of different types of

manage-

we

take a concrete example and note the differences of

ment,
the several types, as they appear in the example. Let us suppose
if

that a piece of lathe work is to be done, such, for instance, as the

In the conventional type of manageturning of a crankshaft.
will assign such a job as this to the first man
a
vacant
in which it can be conveniently permachine
having
formed. Systematic management will usually do the same thing.

ment the foreman

management, on the other hand, will assign the piece

machine in which it can best be performed.

Scientific

of

work

to that

Having received the work, under conventional management,

the

workman

will

determine the plan of procedure,

will

choose

own tools, and will proceed to work, using those

and speeds which he thinks will be the most satisfacIn case the workman is receiving day wages, the pace of
tory.
the work will depend upon the foreman.
As the foreman goes
about the shop, he will occasionally take notice of the condition
of the work and the way in which it is being performed.
If the
workman is obviously incompetent or inefficient, the foreman
and grind

his

feeds, cuts,

reprimand, or discharge him, as his judgment will

warrant.
On the other hand, if the work appears to the foreman
to be going forward at a reasonable pace, nothing will be done.
will instruct,

In case the

mium

workman

is

being paid by some piece work or pre-

be anxious to earn as large a wage as possible

and therefore will attempt to determine the best cuts, feeds, and
There are two methods open to
speeds for the work in hand.

him

plan, he

for doing this.

the other
first

will

is

One

is

to guess at the best conditions

to experiment until he has determined them.

method, of course, leaves much to be desired.

method

is

open to the objection that

it

and

The

The second

takes a considerable

SCIENTIFIC

MANAGEMENT

59

number of experiments to detennine the best conditions of work,

even when the experiments are confined to the performance of a
The workman is rarely, if
certain job on a certain machine.
ever, able to devote the necessary time to such experiments,

and

he has not the training which would enable him to properly perform and record them. With the facilities which he usually has
at hand,

it is

impossible for the average

workman

to

do any more

than gradually improve his performance by careful attention to

methods of work.

his

Conventional management determines the time required to

do a piece of work, or the piece rate to be paid for it by one of

two methods. The first method is for the foreman or some
other experienced person to guess at the time required to do the
work. The other is to put a capable and conscientious workman
Of course
at the work and see how long it will take him to do it.
the guess of the foreman is about as good as the guess of the
average drummer would be if he tried to estimate the f>opulation
The other
of a village while he was riding through it on a train.

method

of allowing a pace

maker

to determine the piece rate

Since, however, the pace

better one.

is

maker usually does not

have the opportunity of making a careful study of the best

methods of performing the work, his time allowance will usually
be too

large.

management, like conventional management,

method of performing the work entirely to the work-

Systematic
leaves the

men.

It

does not, however, leave the question of the proper pace

to the foreman.

The

records of previous performances have

and the management can readily determine
work is being conducted at the best pace of
which there is previous record. If it is not, the foreman is notified
and the workman is obliged to increase his pace. He may do
this in one of two ways.
He may experiment in order to determine the possibilities of the work, or he may go to some one who
knows more about it than he does for assistance and instructions
in regard to feed, cuts, speeds, and methods.
In either case he is
into
his
to
that
of
the
nagged
bringing up
pace
previous man, and
established a pace
whether or not the

in this

way

the production

is

kept up to the best previous record.

6o

SCIENTIFIC

Under

MANAGEMENT

management, the sequence of operations, the

and speeds, the tools and appliances, and the methods
of work are determined by the management and not by the workman. Before the work is commenced, a specialist considers all
the possible methods of doing the work and after carefully analyzing them determines which of these methods are the best. Having
fixed upon the methods of work, a time allowance is then estabscientific

cuts, feeds,

A typewritten or blueprinted instructhen

tion sheet
prepared which informs the workman exactly
what he must do, and how long it should take him to do it.

lished for each operation.

is

own

he receives a supply of properly

Instead of depending upon the foreman or uj)on previous records for establishing the pace of work,
the time required to perform each of the several operations is
Instead of grinding his

formed and ground

exactly known.

tools,

tools.

The whole

series of operations

has been sub-

been
and
the
methods
are
not
considered,
developed
only good ones,
but are the best possible ones, considering the limitations of

jected to a careful analysis, every possible variation has

that particular shop.

In order to accomplish the best results, not only

workman receive an instruction

how to perform many operations.
tration

is,

must the

sheet, but he must be shown

One

of the oflEicers of adminis-

therefore, the teaching foreman,'

who makes

it

his

men

in the proper ways of doing work

and who is always ready to come to the aid of those men who are
unable to perform their tasks in the allotted time.

business to instruct the

In order to encourage the workman to follow the proper

of work and to perform his task in the allotted time,

methods

a piece work, premium, or bonus plan is adopted for the payment of wages. The plan which seems to give the most satisis

known as the Gantt bonus plan. This consists in paying

man

a certain definite percentage of his daily wages as a

his task within the allotted time.

faction

the

premium whenever he performs

If his task, for instance, consists of ten pieces

>

This

is

the foreman called

proper speed of the machine

Ed.
instruct the workmen.

is

"

a day, and he

the g)eed boss," because the

one of the things in which it is his business to

by Mr. Taylor

SCIENTIFIC

MANAGEMENT

6l

succeeds in making ten or more pieces, he will receive from twenty

In case he
to sixty per cent additional wages as a premium.

produces less than ten pieces, he receives the regular day wages,
but no premium. A man's earnings are computed each day and

he knows on the morning of the following day whether or not he

has earned the premium.
If he has not, it is the duty of the
teaching foreman to go over his work with him and instruct him
which he may be deficient. In order to make

in those points in

sure that this teaching is thorough and effective the teacher

receives as a bonus a fraction of the bonus ' earned by his work-

men and
receives

in case all of his

an extra bonus.

workmen earn

bonuses, the teacher

It will readily be seen that with such

a system of wage payment, thorough instruction and cooperation

are the invariable order of the day, and that the foreman as
well as the

workmen

are always on the lookout to see that the

machines, and stock are all in perfect conditionNot only does the man receive adequate instructions, and a

tools,

reward for obeying these instructions, but he

is

offered every

reasonable facility for doing his work quickly and well. He does
not have to spend his time hanging around the smithy or the

room getting the things that may be needed for his work.
spends no time repairing his machine, taking up the belts, or
The management makes it its
fixing the tools supplied to him.
duty to see that nothing hinders him in his work so that his entire
time and attention may be devoted to the performance of, and
tool

He

not to the preparation for, that work. This requires that certain
assistants shall perform tasks which conventional management
usually delegates to the workman himself.

COLLECTING DATA NECESSARY FOR SCIENTIFIC MANAGEMENT

be apparent from the foregoing, that instead of depending upon judgment, scientific management depends upon knowlIt will

Judgment is the instinctive

and subconscious association of impressions derived from previous
edge, in its task of administration.

'

This does not mean that the teacher's bonus

is

deducted from that of the

workmen, but that it is a very much smaller percentage, the aggregate amount
of which depends upon the number of workmen whom the instructor has brought
Ed.
up to the bonus-earning point.

62

SCIENTIFIC

MANAGEMENT

When a man's experiences are wide, his impressions

experience.
of them are correct, and his memory is good, his judgment will be
But even the best judgment falls far short of knowledge,
and any system of administration based on judgment alone must
fall short of scientific management.
Judgment will always have
its place in any system of administration for two reasons, firstly
because knowledge cannot always be obtained, and secondly
because it may sometimes cost more to obtain it than the knowlgood.

edge

is

worth.

In either case judgment

absolutely necessary.

and not

But

at the best,

is

valuable,

judgment

is

if

not

only a guess

to be relied

upon if accurate information is available.

management depend upon knowledge,
but this knowledge is carefully and systematically collected and
the data so obtained are classified and digested until the knowledge is instantly available whenever a problem is presented to the
management. Back of the form of organization is a knowledge
of the needs and the work of the plant.
Back of the plan of wage
payment is a knowledge of pyschology and sociology. Back of

Not only does

scientific

the instruction sheet

is

a knowledge of the sciences of cutting

As examples of the way in which

metals and of handhng work.

such knowledge is obtained,

us take the two subjects last

mentioned, and see what scientific management has done to
develop the sciences of cutting metals and of handling work.

Most

let

readers of these articles are doubtless familiar with the

Mr. F. W. Taylor on the art of cutting metals, which

was pubUshed in abstract in many of the technical magazines
The work described in
shortly after it was delivered, in 1906.
paper

of

this paper is probably the best example of the scientific study of

methods of manufacture which has ever been made. Mr. Taylor
and his associates at the Mid vale and Bethlehem steel companies were engaged in the work for nearly twenty-six years,
and during that time made many notable discoveries in the line
One of the most important of these was the
of their work.^
of
high-speed steel; which is, at a very conservative
discovery
estimate, worth fifty milUon dollars per year to the machine
1

See introduction to F.

volume, page 242.

Ed.

W.

Taylor's

"The Art

of Cutting

Metals"

in this

SCIENTIFIC

MANAGEMENT

63

Other no less important but less

were the discovery of the best forms for
the invention of a slide rule for the determination

industty of this country.

spectacular results

cutting tools,
of proper cutting speeds,

and the resulting developments in the

form, rigidity, and power of machine tools.
In making this investigation suitable machines were prepared
and after establishing certain standards in regard to the kind of
material to be cut, the form and chemical composition of the
cutting tools, and the length of time which the tools must run
without regrinding, a very elaborate series of tests was made.
The object of these tests was to determine the maximum permissible speed of cutting with different feeds, depths of cut, kinds
of tool steel, forms of tools, classes of material, and conditions of

There were in

work.

all

twelve conditions afifecting the cutting

Some of these could be

speed, each of which could be varied.
varied over a very wide range, and every time one of the conditions

was

in order to

altered a large number of exp)eriments

determine the permissible cutting speed.

was necessary
It is obvious

that in such a complicated problem as this, thousands of experiments were necessary before it could be solved. As fast as exj>eri-

mental data were collected, the results were worked up in order

to determine the mathematical laws governing the cutting of
metals.

Since these laws were found to be extremely compli-

cated, and since, if the work was to be practical, quick and simple
methods of solution had to be devised, a great deal of time and
effort was spent in devising methods for determining the proper

cutting speeds for any given conditions.

years of work, a slide rule

Finally after

many

was invented which gave a quick and

accurate solution of the problem.'

This investigation was probably the most important investigation of the kind ever attempted.
It was very thorough, requiring
a period of twenty-six years for its completion.
The total cost
is stated to have been $800,000.
The results, in which every
metal working shop in the country has shared, are unquestionably
worth one hundred million dollars a year. Hardly one manager
*

See Mr. C. G. Earth's

"

Slide Rules for the

Machine Shop as a Part

Taylor System of Management," in this volume, page 405.

Ed.

of the

SCIENTIFIC

64

MANAGEMENT

out of one hundred, probably not one mechanic out of a thousand,

realizes the immense value and scope of the improvements resulting from this investigation.
They rank in importance with the
of
the
steam
development
engine, the railroad and the printing
There
are
press.
equally great opportunities for a dozen, possibly

one hundred investigations of like character in other industries.

It is to be hoped that they will be soon commenced and that they

be prosecuted with the same energy, tenacity and intelligence

with which this investigation was so greatly marked.
will

MOTION STUDY AND ANALYSIS

The method employed in determining the best way to handle

"
is known as
motion study." Motion study is almost a

work

and

branch of applied psychology.

Motion study is not peculiar to scientific management, but has
long been utilized by athletes in their endeavor to improve
science in

itself,

athletic records.

train himself to

number
body

do

is

really a

high jumper, for instance, will carefully

work in a certain way, taking a certain

his

of steps in running

up

in a certain position as he

ing in every

way

The hurdler does

methods

and

jumps over the bar, and endeavor-

and machine-like
"
which characterizes what he terms form."

to develop that smoothness

precision of action

different

to the bar, throwing his limbs

the same thing, day after day

making trial of
and jumping, timing himself by the
achieve the most perfect form.

of running

stop watch, in order to

The same sort of study can be employed to advantage in

training workmen to perform their tasks, when the tasks are
There is, however, one very great difference between motion study for the athlete and for the workman. Whereas the athlete strives to perform a task which taxes
repetitive in character.

his strength

and endurance

to the limit, the

workman

strives to

develop that form which will enable him to perform his task
In the case of the
quickly and with a minimum of fatigue.
athlete,

he

is

striving to excel for one

supreme moment.

workman, on the other hand, must be trained

task, day after day, month after month, year after

The

to repeat his

year, without
to
his
or
his
because
in
that manner
health,
injury
strength
only

SCIENTIFIC

MANAGEMENT

65

can the industry in which he is engaged reach its maximum

It takes a more carefully trained observer and a far
prosperity.
better understanding of men and their physical capabilities to
train a workman to do a task quickly and well without over-

an athlete to perform his task

where the question of over-exertion does not

exertion, than It does to train

quickly and
come in.

well,

Any one who

how

understands

has ever had anything to do with athletics

impossible it is for a man without training to

would be impossible
to enter an athletic

compete with the trained

athlete.

for the average healthy

and vigorous man

work in competition with trained

Just as

it

contest and do creditable

athletes, so it is impossible for the average

workman

shop and accomplish a creditable amount of work,

in

to go into a

competition

workman who has been properly trained after a motion

study has been made of his task. In the same way, just as it is
impossible for the average man who likes to look at the stars, to
with a

predict the time of an eclipse or the future configuration of the

heavens, so it is imp)ossible for the average machinist to compete
with the trained engineer who has at hand a slide rule which will

him exactly the cuts, feeds and speeds which it is possible to

employ with a given class of material and a given machine. We
find it advisable to employ designing engineers who have spent
years in studying the strength of materials and the sciences upon
tell

which engineering dep)ends.

another class of engineers

It

is

equally advisable to employ

the principles of manage-

who will study

ment, and methods of doing work.

So far we have only touched on two

f)oints in regard to the

turning of our crankshaft, namely motion study and the science
of cutting metals.
There are a dozen other branches of science

involved in the direction of the shop, all of which are used by

When we
scientific management in furthering administration.
consider these things, it becomes apparent that in many industries the introduction of scientific management will completely

methods of administration, and

even methods of selling the product and of financing the industry.
It will be seen from what has just been said that scientific
revolutionize

methods

of work,

SCIENTIFIC

66

MANAGEMENT

management is by no means a simple matter, that it requires

forethought and care in its application, and that, above all things,
It
it requires the scientific spirit in order to make it successful.
will also

ment

be apparent to every one that, while

scientific

manage-

very probably greatly increase the output per

will

man

or per machine, the staff which it requires for the planning of

the work, for the conducting of experiments, and for keeping

workmen

supplied with material and tools will be quite an exThe question of whether or not scientific managepensive one.
ment is profitable, and therefore practicable, will hinge upon the

question of whether the savings which scientific management will

pay for the staff which it is necessary to maintain. In

effect will

opinion, the savings will usually be more than sufficient to

pay for the extra cost of scientific management, although some-

my

The

times they will not.

machinery
every job

of scientific
is

different

application of all of the methods and

management to the pattern shop, where

consists in planning rather than in executing, will

On

success.

work
not usually be a

and where the principal part

the other hand, .where scientific

management

is

no question but what the

be but a very small fraction of

applied to repetitive work, there

cost of maintaining the staff will

of the

is

the savings which will result.

II

Causes of Industrial Inefficiency

So

far this article has considered only the

broad aspects of

In order to get a better idea of the

management, the methods which it is likely

industrial administration.

objects of scientific
to adopt, and the obstacles which
classify

and describe some

it

must overcome,

propose to

of the causes of inefficiency in

our

In studying the causes of inefficiency we will

discover the remedies which a proper system of administration

industrial

life.

should apply, and develop some of the principles underlying

scientific management. I do not claim that all theJf aults which I
will describe are prevalent in
scientific

management.

I will

every industrial plant not under

admit that most of them can be

eliminated without the complete adoption of scientific manage-

SCIENTIFIC
ment.

MANAGEMENT

67

do know, however, that they are astonishingly prevalife, and that neither conventional nor

lent in our industrial

systematic management has succeeded in uprooting them.

The causes of inefficiency may be divided into three classes:

The

are those causes which are chargeable primarily to the

employer, the second those which are chargeable primarily to the
first

workmen, and the

third those

which are chargeable primarily to

our political and industrial system.

Those causes of inefficiency which are chargeable primarily

to the employer may, in turn, be divided into two classes. Those
of the first class arise from a lack of knowledge.
They can be
remedied by showing the management the possibilities of better
Those of the second class arise out of moral defects

methods.

on the part of the employer, and

in the

system of management or

will require

full

more than a change

information of the conditions

of the plant in order to eliminate them.

MENTAL LAZINESS

The

first

and most

Most

laziness.

prolific

is mental
While a good many of

source of inefficiency

of us dislike to think.

now and then to the consideration

some interesting subject, no man will, if he can avoid it,
devote two hours a day, not to mention eight hours a day, to the
That kind of
task of devising and comparing methods of work.
to
suit
the
officer
of admintoo
strenuous
is
average
thing
entirely

us will devote a spare hour

of

In the average plant, each officer places upon the

shouldersof his underlings the burden of detail forwhich he himself
ought to be responsible. When work is to be done, the manager
"
"
to the superintendent.
The superintendent, in
puts it up
foreman
to
the
the
to the gang boss, and
it
foreman,
turn, puts
up
istration.

the gang boss to the workman.

Upon the workman devolves the
task of devising the methods and of planning the details of the

work.

Now

as I will

show

later,

the

workman

is

no fonder of

thinking than the management, and performs his task in that

way which involves a minimum of mental effort. He is not to be

because he has merely followed the example

It is the duty of the management and not
of the management.

blamed

for so doing,

68

MANAGEMENT

SCIENTIFIC

men to study the work, to discover the most efficient

methods, and instruct the men in those methods. When, because
of the

men

of lack of instruction, the

most

efficient

of the

it is

fail to

perform their work in the

management and not

the fault of the

manner,
workmen. Conventional management

wrong, in that

it

is

fundamentally
compels the workmen to originate the methods,

and leaves to the management only the task of criticism.

When the management of an industry is reproached for laziness in not properly directing the workmen, the officers of admin"
istration will usually reply to this effect:
These workmen which
we hire are supposed to be competent men. They are experts
in machine molding, tool dressing, lathe work, or whatever it is
that we hire them to do.
They have devoted their lives to these
lines of work, and know a great deal more about it than we do.

When

man

receives a job, he can devote his entire attention

His task is easy, because he has to think of but

to that one job.
If we devised the methods of work, we
one thing at a time.

would have a thousand jobs to figure on each day. They could

not receive the same amount of attention that they get now, nor
would that attention be as satisfactory, since we are not experts,

and the men

are.

details of their

When you ask us

work, you

are

to direct the

demanding

of us

workmen in

the

an overwhelming

and impossible task."

In answer to this argument,
while the

workmen

it is only necessary to say: First,

are usually much more capable than the
due to the lamentable ignorance of the man-

management, this is
agement, and not to the extraordinary knowledge of the workIt is practicable for the management to acquire and
men.
apply knowledge which it is impossible for the workman to have.
Second, many shops that are eminently successful do direct all
of the acts of their workmen.
Third, when the workmen devise
the methods of doing work, they are handicapped by being
obliged to use such tools and machines as the management provides, while,

can and
work.

when

the

will secure the

management
proper tools

devises the methods, they

for doing the

and machines

SCIENTIFIC

MANAGEMENT

69

PREJT7DICE AGAINST SO-CALLED NON-PRODUCTIVE LABOR

second source of ineflSciency is a dislike on the part of most

managers to employ a considerable executive staflF to direct the
efforts of their

workmen.

The management balks

at such a staff,

"

"

labor is a necessary evil if

and claims that
non-productive
an
evil if you can do
and
have
to
it,
unnecessary
employ
you
In the old days draftsmen were regarded as an
without it.
unnecessary evil, and the designing was done by rule-of-thumb
and the head patternmaker. Experience has shown that Johnny
Pencilpusher is not an evil, nor is he unnecessary, and that it

"

pays to employ him. Accordingly he is now classed as pro"

"
"
and not as non-productive labor. The men who
ductive

work of the shop are just as necessary as the men who

the designs, yet it is difficult to persuade the average manager that a large executive staff is desirable even when you can
show him that a gain will result from its employment. The
"
nonattitude toward such a staff is well shown by the name

direct the

make

productive," so often applied to this class of labor. The labor of

the planning department is just as truly productive as the labor

machine department, or the

new attitude in regard to the employa pre-requisite to greater eflSciency in

of the drafting department, the

erecting department.
of indirect labor is

ment

many

of our shops.

TIMIDITY OF CAPITAL

third fault of

management

is

timidity.

Capital seems to

Men dislike
be ruled by fear quite as often as by judgment.
to risk their money in something which they feel is not absolutely
sure to bring adequate returns.

any investment which

They

especially dislike to risk

such a character that they

cannot recover the principal in case they decide to give up the
enterprise, even though adequate returns are almost certain.

money

in

is of

Managers often hesitate to spend money for new tools or equip)ment until other firms have tried the tools or equipment and found
them to be successful.

SCIENTIFIC

70

MANAGEMENT

Probably one of the best examples of this is the difficulty which

Corliss had in selling his engines at a reasonable price,

Mr. George

when they were

in

first

some cases he had

It will be

brought out.

to take for his

pay

remembered that

the value of the coal which

his engine could save in a given period of time,

bonds

to take out his engine

and

and was under

reinstall the old

one in case the

purchaser decided that the new engine was unsatisfactory. Just

as Mr. Corliss' customers were fearful of spending money for an
improved type of engine, and insisted on making a contract which
was, in reality, unfavorable to themselves, so the present-day
employer is fearful of assuming the expense incident to proper

management, even though it can be shown that great gains ought

to be realized from proper administration.

LACK OF FORESIGHT
This brings us to a fourth fault of management, which

The management,

of foresight.

in performing the

work

is

lack

of today,

make allowance

for the needs of next week, or the growth

Plants grow in haphazard fashion.
Equipment
added without making plans for the future. No attempt is

fails to

of next year.
is

made

to insure that there will always be a corps of trained workstafif of able foremen.
The lack of definite and far-

men and a

reaching plans for future work is not felt at the time that such
plans should be made, but is felt later.

MENTAL INERTL\ AND LACK OF ADAPTABILITY

fifth fault of

scribed as

"

management

mental inertia."

is

one which

Managers tend

may

best be de-

to follow

methods

which, have been satisfactory in the past, but which changing

conditions have made unsatisfactory for present requirements.
Whenever a new invention of any importance is introduced into

a shop the conditions of work are greatly altered.

The introduction of high-speed steel is a case in point.
When the time
required for machining work is cut down to a third of that
formerly required, the amount of crane service for a given number
of

machines

is

trebled.

The foundry and

forge shops

must be

SCIENTIFIC

MANAGEMENT

71

made very much

the machine

larger in order to furnish the stock required by

The amoimt of storage room required for
shop.

stock and for finished product is greatly increased. The relative

importance of different items of cost is radically altered, and
the nature of the problems of administration is greatly

changed.

Notwithstanding these changes, we

will

find

that

most cases the management will attempt to get along

with the least possible change in equipment, and in methods of
in

work and administration.

because

it is

Many men

resist

change, in spite of the fact that the

change simply
may be

change

desirable.

One

of the best examples that

comes to mind

inertia that prevents the adoption of

new

of the

mental

the general
the
use
of
a heavy
of
Mr.
that
Taylor's discovery
disregard
stream of water at the cutting point of a roughing tool increases
ideas

is

If the mathe permissible speed of cutting by forty per cent.

chines of a shop are engaged on roughing work for one-third of
the time, by the use of such a stream of water their output will

be increased by thirteen per cent.

In a shop in which loo

men

are employed on machine work, this will mean a reduction in the

To install a system
cost of machining of about $20,000 per year.
the machines in such a shop, and
for returning and purifying the water, will certainly not cost
more than $20,000, yet, so far as the writer is aware, there is only
for distributing soda

water to

all

one shop in which such a system has been installed, even though
it would unquestionably pay one hundred per cent on the investment. This is an example of bad management arising from mental
inertia,

which occurs in almost every shop.

brought up

in

any plant, the

When

the subject

is

fortifies itself in its

management
by advancing as arguments statements which
instance, that the system costs more than it is

obstinate attitude,
are untrue, for

worth, that the soda water destroys the machines, or that it is

always giving trouble. Were the management to give the matter

proper study, however, it would find that practical experience

has demonstrated that the benefits realized are so great that their

shops cannot afford to operate in any other way.

SCIENTIFIC

72

MANAGEMENT

LACK OF STUDY OF THE INDUSTRY

A sixth and probably one

of the greatest of all causes of ineffi-

the fact that the

management very seldom makes a

is

ciency

careful study of the industry.

study

is

made,

it is

usually done

In the few cases where a careful

for the

purpose of improving the

materials used or the quality of the output, or increasing the

amount of work turned out by the use of a given method.
It

is

of equal or

even greater importance that the methods

themselves should receive the same careful study.

Probably
the best example of a scientific study of methods of manuis the work of Mr. Taylor on the art of cutting metals,
which reference has already been made. It is probable that
a similar study of methods would result in equally important
Such studies are not
developments in other hues of industry.

facture
to

In the first place, managers do not

need of such studies nor the advances which are posIn the second place, very few men are capable of making
sible.
In the third place, inertia opposes the changes
studies.
such
which would result from such studies, and timidity hesitates to
Very few
expend the money necessary to carry them out.

made

for three reasons.

realize the

managers would have the courage to commence an investigation

whose final cost would be $800,000 and which would take twentysix years for its completion, and while the management of some
very large industries might be wilhng to take a chance on an
investigation of this kind, even the most sanguine would deride
the possibility of such an investigation producing such valuable

have followed from Mr. Taylor's

When all is said and done, it will be found that
experiments.
most managers want some one else to do the experimenting,
feeling that by so doing they can participate in the profits of such

and far-reaching

results as

work without sharing

its

expenses.

SYSTEMS OF REWARDING LABOR

seventh source of inefficiency in many industrial plants is

the system of wage payment adopted.
It would be hard to
devise wage systems better calculated to limit efficiency than
the two which are in most

common

use; namely, the

day wage

SCIENTIFIC

MANAGEMENT

and the piece work plan with frequent

work
plan, the man receives no reward
day
plan,

he

is

instead punished for ineflficiency.

This

73

cuts.

Under the

for his efficiency,

is

a method which

fundamentally wrong, and only to be employed when no other

method is possible. When a man receives day wages, he is paid
is

for the time

which

arises

The first question

which he sf>ends at his work.
in connection with this system of wage payment is:

What wages ought a man to get ? The answer is he ought to get

all he can.
He is selling a commodity, labor. He asks for it the
His labor
highest price he can get, and is justified in so doing.
is measured by time and the value of the labor performed in a
given time has nothing to do with the payment which he receives.
The only thing which limits him is the fact that if he does not do

What
a satisfactory amount of work, he will be discharged.
constitutes a satisfactory amount of work, neither he nor anybody
else knows.
The whole thing works out very much as it would if a

man when buying a quart of milk were

to insist simply that there

be some milk in the quart measure, and the matter of how much
milk there was to be in the measure should be left with the milk-

man, with the understanding that the milk-man would lose his
customer in case the amount of milk was not satisfactory to the
purchaser.

When you discuss with the average workman the question of

proper wages and the proper amount of work to be done in a day,
he will tell you that his motto is " a fair day's work for a fair
Different men, however, have very different ideas
day's pay."
as to the amount of work which constitutes a fair day's work.

Some employers think that it is all the workmen can possibly

Some workmen think it is the least that they can
accomplish.
and
still not get fired.
Most workmen think it is
accomplish
work they can do when working steadily at the gait that habit
and temperament have fixed in their cases. Most employers
think it is the amount of work which their most honest and
industrious employee normally does.
When there is such a great
of
diversity
opinion as to what constitutes a fair day's work, it
will naturally

be seen that there

eflficiencies of different

men and

will

be great diversities in the

different shops.

SCIENTIFIC

74

MANAGEMENT

When

a piece work plan is adopted, the management usually

If the
knows very little about the possibilities of the work.
management fixes what the men think to be a reasonable piece
rate) the

men

will

soon so increase their output that they will be

making exorbitant wages. The management will then cut the

a series of cuts
piece rate, and after the men have experienced
as a result of successive increases in efficiency, they will discover

management does not propose to pay them more than a

amount of money, and will work just hard enough to
a trifle less than the maximum amount they can secure

that the
certain

secure

without experiencing a cut.

established in
If, on the other hand, a proper piece rate is
the first place {i. e., one by which the men can earn fifty per cent

hundred per cent more than a regular day's wages when

they have reached their best efficiency), the men will believe
that it is impossible to earn reasonable wages under the proposed
piece rate, and will decline to accept it.
to one

"

HOLIER THAN THOU

"

SPIRIT OF

SOME EMPLOYERS

An eighth cause of inefficiency is one which is happily becoming

It is a disposition on the part of some employers
to regard their workmen as being of a lower order of humanity
than themselves. I have talked with such men on more than one

less frequent.

occasion.

Among

their associates they

were highly regarded for

but I have heard them speak of their

workmen as " beasts " and " ignorant brutes." No man who
their kindness of heart,

regards his employees in that light can be persuaded to adopt

scientific management nor can he bring the efiiciency of his plant
to a high standard, because such feelings will unconsciously affect
his attitude in dealing with his employees, arouse their antag-

onism, and destroy that feeling of cooperation which

is

the

essential basis of high

efficiency.

On

the other hand, even though the

employees of such a man
and anxious to cooperate with him, his attitude will

are ready

prevent him from doing

many

things which would utilize such

potential cooperation to advantage.

SCIENTIFIC

MANAGEMENT

75

AVARICE OF THE MANAGEMENT

The

last source of ineflfidency of

which

I will

speak

is

avarice

on the part of the management. Avarice reduces wages, cuts

piece rates, purchases inferior materials and equipment, employs unskilled labor, skimps on supplies and makes unjust
exactions of its employees. Avarice refuses to exp>end money
for the collection of information, for increasing the facilities of

Avawork, and for improving the efficiency of administration.

Avarice
rice hampers the administrative staff at every point.
is

the sin of the board of directors and the stockholders, and not

of the sup)erintendent

and

his staff.

Scientific

management

often requires a large staff of clerks and costly experiments

when it is being introduced into a new line of work, and this

by the avaricious employer.

Not only will avarice prevent the adoption of scientific management in a great many cases, but it is also very likely to give

effectually prevents its adoption

management a black eye by adopting some of its

without
An avaricious employer
methods,
adopting its spirit.
finds himself coming out second best in competition with one
scientific

who

utilizes

scientific

management.

He

attempts to appro-

priate the experience of his competitor in the same spirit in which

he imitates his trade-marks, copies his designs, and steals his
methods of work. Now while it is possible to imitate a trade-

mark

or steal a method,

it is

not

p>ossible to imitate or to steal

mind or the

spirit of fair play, which lie at

the basis of scientific management.
The reward and instruction
are just as essential to scientific management as the discovery of a
method of work, but the avaricious employer cannot be made to

the scientific habit of

see this.

When

his neighbor has discovered a

better than that which his

workmen employ, he

method
will

of

work

attempt to

workmen to accomplish the same results without teachthem the new method and without offering them the reward

force his

ing

to which they should be entitled, and his attempts will therefore

always end in failure. While there is no question but that scientific management will continually discover new and
improved

methods, processes and materials, and while these improvements

SCIENTIFIC

76

will gradually find their

way

MANAGEMENT
into shops which

do not employ

scientific management, the extraordinary performances possible

under scientific management will never be achieved in the shops

of the avaricious employer because

workmen

knowledge alone

will

not lead

to increase their efiiciency.

by any means exhausted the list of causes for ineffiIt would be

ciency which arise from faults of the management.
as easy to name a hundred as to name nine, but the task is not
I have not

I have endeavored merely to point out the fact that

agreeable.
faults
such
exist, that they can be remedied, and that before
scientific

management can be applied

to

an industry, they must

be remedied.

CAUSES OF INDUSTRIAL INEFFICIENCY DUE TO THE

WORKMEN
While most of the causes which lead to inefiiciency are chargeable to bad management, I would not have it inferred that the
workmen are free from blame in the matter. I know of many
shops in which the blame rests almost wholly on the workmen.
In one that I have particularly in mind, the management is
keenly alive to the possibilities of improvement.

They could

fifty per cent, and would gladly

same proportion, if the workmen
Time and again they have atwould cooperate with them.

today increase their output

increase their wages in the

tempted to make changes leading to higher

efficiency,

but in

every case the opposition of the workmen was so strenuousi, that

they were convinced that it was the part of wisdom to accept
the inevitable and to permit the inefiiciency which they deplored.
Were they to insist on a change of methods, it is quite likely that
labor troubles would force their plant into bankruptcy on account
of their limited capital.

THE NATURAL PACE OF WORKMEN

The

first

source of inefficiency chargeable to the workmen is

work at any other than their natural pace.

their disinclination to

man is

allowed to work as he pleases he will soon settle down

certain
into a
pace which suits his temperament and nervous
If

SCIENTIFIC

MANAGEMENT

JJ

organization, and will keep to that pace without very much

I may call this his natural pace.
variation from day to day.

man

work very much faster

without tiring himself, and if he is properly trained and given
adequate inducement, he will adopt the faster pace, and make it
I may call this faster
his habit to work at that faster rate.
It is perfectly possible for such a

to

In order to illustrate the relation of the

pace his proper pace.

natural to the proper pace, I would like to compare them to the

natural gait which a horse takes when his driver allows him to

own

and the proper gait which an exp)erienced

driver will set for the horse, in order that he may accomplish the
A careful and experienced driver will get a great
best results.
deal more work out of a horse if he urges him to travel at the

go at

his

free will,

Notwithstanding this, the horse will be no more

tired at the end of the day when driven at the proper gait, than

proper

gait.

he would be had he traveled at his natural

does not

mean undue wear and

tear,

gait.

The

and the horse

faster gait

will

maintain

good health and vigor just as long when working for a careful
driver who makes him work, as he will if he works for an indifferent driver

who

allows

him

to

do as he

pleases.

A man differs from

a horse in two ways.

In the first place he
cannot be driven, and in the second place, a reward offered him
for extra labor must seem to him to be reasonable.
It is not
get a
reward.
adequate
difficult to

man
If,

always forthcoming,

i.

change his pace if you offer him an

however, he finds that the reward is not
e., if he finds a piece rate being cut or a
to

he feels that the reward is inadequate,

not respond. He cannot be driven by threats of discharge
or by fines, and he cannot be coaxed by broken promises or gold

premium
he

reduced, or

if

will

bricks.

LACK OF AMBITION

second source of inefficiency is lack of ambition.

While
will be stimulated by a prop)er reward, there are some

most men

which cannot be reached in this way.

Some
workmen do not accomplish as much or as good work when well
In certain sections of the
paid as they do when p)oorly paid.
South contractors find that when negro laborers are paid seventyclasses of labor

SCIENTIFIC

78
five cents

they

MANAGEMENT

a day they will work a full week, when paid $i a day

one day in the week, and when paid $1.50 a day

will lay off

they will lay off half the time. The reason is that these men are
Four dollars and a half a week supplies their
not ambitious.
when
and
needs,
they have earned that amount they do not care
to

work any more.

It is needless to remark, however, that the

He

ambitious, and
invariably responds to a suitable reward, unless he believes that
in so doing he is acting against the best interests of himself, or

average artisan

his fellow

is

not of that character.

is

workmen.

MENTAL LAZINESS OF WORKMEN

A third source of inefficiency lies in

the fact that the

workman

does not like to think any more than the superintendent, the

He prefers to
men are physiThe only way
cally lazy, but nearly all men are mentally lazy.
man
can
work
without
that a
thinking is to do the job the way
in which he or some one else has done it before.
When he has to
foreman, the manager, or the board of directors.
work without thinking when it is possible. Few

do a new job, he must do some thinking, but usually it will be

found that the workman will adopt the method which requires
on his part the least mental effort for its origination.
Very
seldom is the method adopted the best one.
In the course of
his work, ideas will

come

to the

workman.

Sometimes these

ideas are good.

If the ideas make it easier for him to perform
the work, that is, if the new method is in accord with his tempera-

ment and

habits, the idea

is

put into practice.

If the idea

makes

harder for him to work, that is, if it requires him to do something disagreeable or not in accord with his habit, the idea will

it

An investigation of methods of work will usually

show that men who are physically restless will often adopt
difficult and tiresome methods of work on account of their tem-

be rejected.

perament.

Men who

and slipshod methods

man

are physically lazy will adopt easy-going

In every case the work-

of doing work.

seeks to conform the

methods

to his

temperament, in order
must niake in accom-

that the mental and nervous effort which he

plishing the

work

shall

be a mmiTOiim,

SCIENTIFIC

MANAGEMENT

79

FALLACY OF THE ARGUMENTS AGAINST A GOOD DAY'S

WORK

and possibly the most prolific source of inefl&ciency

by many workmen, and unfortunately, taught
by many union officials, that in doing efficient work men are
There can be no
displacing other workmen and lowering wages.
is

fourth,

the belief held

One illustration alone will

greater economic fallacy than this.
serve to make clear the falsity of the argument that a man who
works efficiently reduces wages and the opportunities for labor.
Let us suppose that on accoimt of the increased efficiency of the
workmen, the cost of making cement is materially reduced, and

Of course, if the demand for

the output greatly increased.
cement were fixed at so many barrels per year, some cement
makers would be thrown out of employment, but with the increased output and diminished cost there will come an increased
demand for cement, and there will be a greater amount of concrete construction.

Instead of reducing the number of

number

men

men

be
and
it
is
certain
that
a
manufacturing cement,
employed
very
much larger number of men will be employed in concrete work.
If these concrete workers, in turn, become more efficient, cheap-

employed,

it is

quite f)ossible that a larger

of

will

in

ening the cost of concrete construction, the use of concrete will

be stimulated, more cement makers

factories, warehouses and bridges will

will

be employed, new

arise, and finally every

be
branch
stimulated by the improvement.
industry
The workman who increases his output is a benefactor, not

of

will

alone to his employer, but to every

His increased efficiency

man

in the

community.
and more

will result in higher wages,

general prosperity.
The facts in the case are so simple and so easily understood
that it is strange to me that every workman does not understand

and appreciate them.

If all

workmen were

twice as efficient, the

annual value of the products of labor would be twice as great as

The products of labor are distributed among the

community (somewhat inequitably it is true), and the share
which each member of the community can get will be proporat present.

8o

SCIENTIFIC

tional to the total

efficiency

every one

amount

MANAGEMENT

to be distributed.

Any

increase in

means that there will be more goods to be divided, that

will get a larger share, and that the community will be

an article of this character to go

but
the more the subject is studied,
into the subject of economics,
the more clearly the advantages of increased eflSciency will be
benefited.

seen.

when

It is impossible in

As a matter

of fact

we can only

and unhappiness

reach that millennium

by the
industrial
increased
narrow
of
and
efficiency, and
path
straight
anything which impedes that efl&ciency is in reahty as great a
poverty, disease

will disappear,

crime against humanity as the poisoning of a well, or the

adulteration of drugs.

ENMITY TO EMPLOYERS

of

A fifth source of inefl&ciency chargeable to workmen is a feehng

enmity against their employers. A great many workmen are

unable to see the community of interest between the

workman

and the employer. Some workmen act as if they believed that

the two were at war, and that anything done to injure the
employer was a benefit to labor.
Now there will always be discussion and bickering between
capital and labor as to how the wealth created by their joint
effort should be divided.
There can, however, be no discussion
over the point that each must have a share, and that the amount
of wealth which they can divide between them, and the size of
the share to which each is entitled, will be great or small according as they are more or less efficient.
Any sensible man can see that the more efficient the workmen
are, the more prosperous their employer will be, the better able
he will be to extend his works and employ more labor, and the
Until all feeling of enmity
higher wages he will be able to pay.
between capital and labor is replaced by a knowledge of mutual
need and appreciation of mutual interest, and a desire for mutual
success, not only eflSciency, but also prosperity, must suffer.

SCIENTIFIC

MANAGEMENT

81

CAUSES DUE TO POLITICAL AND INDUSTRIAL SYSTEMS

Those sources

of inefficiency

fections of our political

tant as are those due

Unlike the

ment

latter,

or the

arise

out of the imper-

industrial system are just as importo faults of management or of workmen.

however,

workmen

which

and

it is

impossible for either the managewe are about to con-

to correct the faults

It is not usual to discuss such matters in a technical

sider.

paper and on that account this phase of industrial administration

will be dealt with in the briefest possible manner, confining the
discussion to a description of the causes, and not to a discussion
of legal remedies. Every one studying the industrial history of
this

country

will

be struck with the fact that

periods of feverish activity

"

boom

"

times

factories

we have

alternate

and

of deadly dulness.

are

run twenty-four hours a day,

In so-called

and quality of workmanship are sacrificed to output,

our railroads are crowded to the limits of their capacity, untrained
efficiency

and

inefficient

men

find ready

employment

in all trades,

ill-

considered plans for industrial expansion are hastily carried into

effect, inferior

and

and unsatisfactory equipment is eagerly purchased

no other kind is available, and the general

installed because

efficiency of our industrial

As a
sion

"

system

suffers

result of this inefficiency a

sets in,

are forced to

"

a severe decline.

period of business depres-

men are discharged, plants lie idle, wages fall, men

move at great expense, and to seek new employ-

ment for which they are not trained, and again inefficiency is the
Now there is no reason why these alternations
order of the day.
of activity and dulness should occur, except that our methods of
conducting business are wrong.

Proper laws, proper methods

improved business customs, and a rational developof our natural resources and methods of communication

of banking,

ment

very nearly eliminate such conditions.

Certain industries, however, are subject to seasonal variations
of opportunities for work.
Agriculture and the canning induswill

Other industries are subject to seasonal

for their products.
The automobile
industry and the manufacture of Christmas goods are examples.
tries are

examples.

variations in the

demand

82

SCIENTIFIC

MANAGEMENT

Where

the supply of raw materials for an industry is subject to

seasonal variations, nothing can be done except that such an

industry may be operated in connection with another industry

so that the workers and possibly a portion of the plant may be
Where the demand
efficiently employed, practically all the time.
for the products of

the industry

may

mulation of stock

an industry

is

subject to seasonal variations,

if an accu-

run steadily throughout the year

is

permitted.

The amount

of capital tied

up

in the stock will usually, in such a case, be less than the capital

otherwise tied up in the plant, since a plant which turns out a

given product in three months will have to be four times as large
as one which turns out the

same number

same product

of hours per day.

There

is

in a year,

working the

also the possibility of

operating such an industry in connection with another industry,

possibly of a like character, in such a way that both the plant

and the workmen may be

efficiently

employed throughout the

year.

We

must all recognize that one of the causes of inefficiency

at the present time is the struggle which is going on in the business
and political world over the question of whether capital shall be

who nominally own it, or whether

be used for the benefit of the community.
Originally
the position sanctioned by law was that capital belonged abso-

used for the benefit of those

it shall

owning it, and that he might use this capital

any way that he saw fit, except that he might not employ it
in levying war on the sovereign, or in committing a criminal act.
lutely to the one

in

We

coming to the view that capital must be used

community, and while we believe that the
nominal ownership and the detailed administration of industrial
are gradually

for the benefit of the

enterprise should be left to individuals, we are coming to insist

that a business shall be conducted efficiently, that in case the

not regulated by competition the profits shall be

and
that the methods of making and marketing the
reasonable,
shall
be
those which will further the well-being and
products

business

is

efficiency of the

and

community as a whole, rather than the profits

owner of the business. While we are

self-satisfaction of the

SCIENTIFIC

MANAGEMENT

83

engaged in this process of changing the fundamental principles

of law and of business, we must expect that inefficiency will be

more or less the order of the day.

One of the economic sins of the present day which is very
effective in destroying efficiency, is foolish and wasteful comThe construction of parallel and competing lines of
petition.

when one line is adequate to serve the traffic is a case

The installation of two telephone companies in the

railway

in point.

same

competing street car and electric railway lines, the

duplication of generation and distribution plants by two electric
city, of

"
natural
p)ower companies, and competition in other so-called
"
of
kinds
certain
are
other
There
are
monop)olies
examples.

which competition is undesirable and inevitably leads to inefficiency, and laws which permit or encourage
such competition place a premium upon such inefficiency.
Another cause of inefficiency is frequent and sudden changes

industrial

work

in

in laws, customs, fashions,

and

social conditions.

a bounty, subsidy, or extraordinary high

factories

and workmen

tariff

For instance,

may

cause the

an industry to be transferred from

This transfer means a considerable temof

Europe to America.
porary loss, and in case American conditions are not naturally

favorable to the development of the industry, it causes a i)ermanent loss. A few years later the abolition of the tariff or the

bounty
the

may

cause the plant to be re-transferred to Europe and

to be thrown out of employment, with a further

workmen

loss.

Similarly, a change in the direction or

amount

of traffic

development of new resources, the sudden

or
decline
of
a
transient
growth
industry and many similar things
affect
the
of
a
may
efficiency
given plant, or even a whole industry.
in a given district, the

Often these changes are entirely beyond

human

incident to increased efficiencies in other

lines.

control, or are

and more important

SCIENTIFIC

84

MANAGEMENT

m
Consideration of the Most Important Objections to
Scientific

Management

show that laws and economic conditions have a very great effect upon our industries and the
Changes in the law
efficiency with which they are conducted.
which decrease efficiency are usually objectionable and changes
are usually more far-reaching and important than most men

Enough has been

said to

While the engineer usually considers

believe to be possible.
such matters to lie entirely outside his work, yet they affect it
so vitally that he will before long be compelled to give them his
attention, and to apply to them the same hard-headed and

rigorous analysis that he now gives to the design or construcWhen he does, the law maker will
tion of a piece of machinery.
financier will regard him as a
the
efforts
his
skeptically,
regard

meddlesome bungler, and most men

will regard

him

as a gross

materialist without proper regard for the higher things of

life.

previously classified and exway

amined the sources of industrial inefficiency, let us classify and

In the same

we have

that

examine the objections which may be raised against scientific

These objections come from three sources, the
management.
employer, the employee and the public.

objections of employers to scientific management

Taking

first

the objections raised

by the employer, they usually

from a misunderstanding of what scientific manageor from a misconception of the fundamental principles of

arise either

ment

is

The

objection most often raised is

greatly increases what some
men term the " expense burden " and what others term the
"
overhead charges." This is true and yet it is not an objection

industrial administration.

that scientific

to scientific

management very

management

if it

can be shown that the total cost of

manufacturing a given product is reduced by thus increasing the

The introduction of a drafting room or of a
overhead charges.
pattern shop into an establishment which has previously purchased such work outside, will increase the overhead charges,

MANAGEMENT

SCIENTIFIC
but most plants find

it

8$

cheaper to maintain drafting rooms and

pattern shops in spite of this fact.

If four

men

are employed,

just as well to have one of them constantly engaged in planning the work of the other three, and keeping them supplied with

it is

tools

and material, as

it is

to

have each one plan

his

own work and

run his own errands.

The question

of

whether

creases the expense burden

by experience and

scientific
is

management imduly

in the terms of dollars

of doing a given piece of

in-

one which can only be answered

work

and

cents.

If the cost

reduced by scientific managethe

of
the
of
the overhead to the direct
ratio
ment,
question
If, on the other hand, the cost is
charges is of no consequence.

increased

is

management no other argument is necescondemn the system, and the ratio of the direct

scientific

by

sary in order to

and indirect expenses is a matter of purely academic interest.

While some employers are willing to admit that the cost of
manufacture is reduced when scientific management b employed,
they advance the argument that while direct labor may be discharged when it is not employed, the men in the planning department cannot be discharged without destroying the efficiency of
their organization, and so must be retained at considerable
expense during periods of industrial depression.
Similarly,
while the wage cost is cut off entirely when men are discharged,
the extra fixed charges upon the larger plant usually called for

by

scientific

management do not

cease

that, therefore, in those industries

to periods of depression, scientific

when times

are slack,

and

which are particularly subject

management will be a failure,

although during periods of prosperity, it may show a reasonable

To this objection two answers
saving in costs of manufacture.

may

be made.

First,

when

scientific

management shows a gain

after taking account of the periods of depression,

adopted.

Second,

if

scientific

it

ought to be

management enables a

firm to

manufacture more cheaply than competitors, that firm will be

able to accumulate a surplus so that it can continue to manufacture and store its product when it would otherwise have to be
Furthermore, it will be able to undersell its competitors, will do a fairly large business in dull times, and will
sold at a loss.

SCIENTIFIC

8^

MANAGEMENT

therefore be able to operate its business with less attention to

If scientific
is given by other firms.

industrial conditions than

management is
that

it will

able to

be able to

show a saving at any time, the chances are

show a saving all of the time.

third objection often raised to scientific management is that

when a shop is run as systematically as this method of manage-

ment

requires, a

sudden change in plans

is

impossible without

rush order or the

seriously disarranging the work, so that the
which it should. The
special job does not receive the attention

answer to

this objection is that scientific

management should

the conditions likely to arise in the plant and

contemplate
should provide special means for expediting certain work when
If such special means are not provided, the
that is necessary.
all of

system is imperfect and is not scientific management since

not adapted to the needs of the particular plant.

A great many

it is

objections raised against scientific management

who have seen shops in which scientific manage-

come from men

ment has been attempted by managers, superintendents or others,
who did not understand what it was. Such men have often
attempted to combine

scientific

management with conventional

systems, and while they have sometimes developed improvements,

Such blunders
they have often fallen into ludicrous blunders.

cannot be charged to scientific management, and when it is

claimed that scientific management has failed in specific instances,
well to investigate the case, and see whether the failure
of scientific management or of unscientific management.
it is

OBJECTIONS OF

WORKMEN TO

MENT

On

the part of

WEARING

workmen

there

is

one

SCIENTIFIC MANAGE-

OUT MEN

is

considerable objection to

it usually arises from an

idea that efficiency lowers wages and throws men out of employment.
This objection, however, is rarely if ever alleged, but

scientific

management.

I beheve that

its place.
The first one, and the one
serious consideration, is the objection that under

others are sought to take

worthy

of

most

management men are urged and compelled to work at

such a pace that their health and vitality suffers.
Now it is
scientific

SCIENTIFIC
doubtless true that

but

MANAGEMENT

men can be overworked

87

in certain industries,

equally true that it is very difficult to overwork men in

What is
industries unless the hours are unusually long.

it is

most
termed overwork

is usually a matter of unsanitary laboring or

For instance,
housing conditions or insufficient nourishment.
a man may be compelled to work in a cramp>ed p)osition or exposed
to great heat or poisonous vap)ors, he may be compelled to eat and

sleep in a hot

and dirty tenement, or

his

wages

may

be too small

If the

adoption of scientific management

the
time
which
he is exp)osed to unsanitary conduring
lengthens
his
health
will
but
this is not a matter of overwork
ditions,
suffer,
to

buy nourishing food.

but a matter of industrial sanitation.

Scientific

management

recognizes the fact that workmen are often exposed to unsanitary

conditions, but the scientific method is to change the conditions
and not to reduce the amount of work required.

When we come

to discuss the trades usually carried out

under

sanitary conditions, and requiring a considerable exp>enditure of

muscular effort, we will find that the amount of effort required
to accomplish a given task may be reasonable for some men but

Whether a task is too severe or not

depends on the strength and endurance of the individual workman. Tasks possible for a vigorous man are impossible to one
unreasonable for others.

Men lacking in strength or vigor are not fitted

to engage in certain occupations and they should be transferred
to other occupations for which their physical defects do not unfit

who is ill or weak.

them.
tasks

For instance, a man whose strength is unequal to the

of a hod carrier or blacksmith help)er may be

demanded

very well fitted to become storekeeper's assistant or to operate

a punch press.
In this connection

it

must be noted that a man

is

not

like

machine, but that the wear and tear of the body are repaired by
So long as the degree of exertion required of a
periods of rest.

man

is

not such as to produce discomfort when continued for

and so long as proper rest periods occur at suit-

several minutes,

able intervals throughout the day, the

man

will

not be over-

worked, but after becoming accustomed to his task will be able

to continue his work week after week without any diminution

SCIENTIFIC

88

MANAGEMENT

lives under
properly nourished and works and
and longas
be
man
will
a
such
vigorous
just
sanitary conditions,
lived as though he were engaged in some less laborious occupation.

of vigor.

If

he

As a matter

is

of fact it does not

work at such a

are caused to

pay

to

wear men out.

If

men

rate that their vigor diminishes,

work than they would had they

they
worked at a slower and less exhausting pace, and both the induslive
try which employs them and the community in which they
no
fear
need
have
On that account we
will suffer accordingly.
that scientific management intends to overwork men, although
in isolated instances men may be overworked under scientific
will in their lifetime

management

do

less

either because they are not fitted to the task to

which they are assigned or because the one assigning the task was
not experienced enough or careful enough to assign a proper
task.

Mr. Taylor's early successes was to increase the amount

of pig-iron carried by laborers by properly training them for the
The amount of pig-iron carried after proper training and
task.

One

of

was about forty tons against a previous record of ten

The first laborer trained for this task was a man
named Schmidt, and one of Mr. Taylor's critics thinking the
"
task excessive and severe, very justly inquires,
What became
"
of Schmidt ?
Mr. Taylor informs me that Schmidt is at the
present time well and hearty and still capable of strenuous tasks
and financially much better off then he would be had he not been
selection

tons per day.

helped by scientific management.

HARDER WORK WITHOUT CORRESPONDING PAY

The second
management
harder

"

objection raised by workmen against scientific

"
is that the men are expected to
work very much

without receiving a corresponding increase in pay.

Often by the introduction of scientific management, a man's
output will be increased three or four fold while his wages will
be increased not more than from thirty to sixty per cent. The
average workman feels that under such circumstances his wages
should be increased in the same proportion as his output. When,

however,

we come

to analyze the matter,

we

find that the

work-

SCIENTIFIC

MANAGEMENT

89

man's contention is not true and that he ought not to expect

wages to be increased in that proportion.

When
In the

man

his

man

first

receives his wages, he is paid for several things.

In order to get a grown
place he is paid for his time.

workman to come and sit in an office

and do nothing for eight hours a day, or even to amuse himself in
some manner, it would be necessary to pay him something, and
probably it would be hard to find men willing to undertake such
of potential value as a

work,

if it

may

be called work, for a dollar a day.

In the second

Work

requiring no
or
and
which
experience
merely requires physical
knowledge
Of course it
effort does not usually command very good pay.

place he

is

paid for his physical effort.

conunands more pay than does the mere expenditure of time,

but certainly the effort which an ordinary laborer puts forth
cannot be estimated to command more than 75 cents to $1 a day,
and I doubt if the average laborer who receives $2 f>er day would
be willing to take a job at $1 .50 f)er day which did not require any

A third element for which a man is paid

expenditure of effort.
is the ability to receive and understand instructions.
A fourth
element

is skill

or dexterity, which enables him to f>erform a task

A fifth element is a knowledge of the details

quickly and well.

of a trade, which

is

usually attained

by

exf)erience

and observa-

tion.

man is engaged in the turning of heavy

and that by means of scientific management (*. e.,
by furnishing him prof)er tools, by standardizing the material,
and by informing him of the proper sp)eeds and feeds to use) his
output is increased three fold. The time required is the same as
That portion of his wages which he receives for time
before.
The effort
expended should therefore be the same as before.
as
as
it
was
before.
is
three
times
Since, however,
great
required
the most of his time is expended in watching his machine and only
a small portion of it in changing tools and work, the pay which he
receives for the effort expended is very small, and the increase in
pay due to the increased effort is prof)ortionately small, cerThe dexterity
tainly not more than 25 to 30 cents per day.
which he has, and the knowledge of the details of his trade, are
Let us supp>ose that a

pieces of steel

90

SCIENTIFIC

no greater than

before,

increase in his wages.

MANAGEMENT

and these elements do not call for any

A larger measure of ability to follow in-

required, and this element of his pay should be

Of the five elements of his pay two require an increase,
and three should remain imchanged. Altogether the increase in
pay required by the extra effort and by the increased ability to
follow instructions is quite modest, and if the man receives thirty

structions

is

increased.

or forty per cent increase in wages, he has received

can in fairness ask

rate of

pay

is

by

for.

The only way

in

management

that he

fix

a fair

men
by
The application
other

reference to the rates received

engaged in substantially similar occupations.

of scientific

all

which we can

in different industries will result in

different increases in efl&ciency.

In some lines a workman's

be increased only 20 or 30 per cent, while in other

be increased five hundred or even one thousand per

efficiency will
lines it

may

cent.

If the

workmen
scientific

is

work done

in the

two

lines is similar, the

pay

of the

probably nearly equal before the introduction of

management, and ought

to be equal

when they have

attained their best efficiency.

Let us take as an example a foundry in which two different
molders are engaged, one on light brass molding and the other

Let us suppose that each is paid at the

rate of forty cents per hour, that the brass molder puts up twenty
flasks a day, and that the iron molder puts up two. Let us sup-

on heavy iron molding.

pose that as a result of a careful time study it is found that the

brass molder can, without tiring himself unduly, put up thirty
flasks

a day, while the iron molder can put up

six.

Each man

is

then working at his best rate, and while it might be possible for
him to do a trifle more work, it can only be done at the expense
of his physical welfare.
If now, the pay of each is increased in
proportion to this increased output, it will be seen that the brass
molder will get a fifty per cent increase and the iron molder a 20

per cent increase, the brass molder receiving 60 cents per hour,
while the iron molder receives twice as much, or $1.20 per hour.

Now, when you come

to think over the results of the applica-

tion of time study in these

work

of

two cases, it will be plain that if the

the brass molder was formerly worth 40 cents an hour,

SCIENTIFIC

MANAGEMENT

91

that of the iron molder was worth only 20 cents an hour, and it
would be highly unjust after the change in conditions had taken
place, to pay the iron molder twice as much as the brass molder.
In other words, for work requiring substantially the same intelligence, the same effort, and the same training, workmen should
receive substantially similar pay, and this pay should be based
upon what constitutes a fair wage under the best conditions, and
when they have reached their best efficiency.
The same thing which applies in the case of two molders will
apply in the case of two different trades in the same industry,
If the efficiencies of
or for that matter, in different industries.
the workmen engaged in two different trades were unequal before

the introduction of scientific management, it follows that injustice

be committed if the increase in wages in each trade is made

will

proportional to the increase in output after, in each case, the

attained their best efficiency.

workmen have

Another way to look at the matter

workman were selling his labor under
other commodity.

Whenever

there

is

is

cost of manufacturing a given product,

be a corresponding drop in the price,

The cost

to treat

the

it

as though the

same conditions as any

a great reduction in the

we

exp>ect that there will

and usually

this is true.

workmen of doing a given piece of work is the cost

The fact that he does a much larger amount of work

to the

of living.

and conof doing a given amount of the work is

materially reduced, being in the case we have chosen, only onethird of what it was before.
Under such conditions the employer
than he did before does not increase his cost of

sequently the cost to

living,

him

reasonably expect that there will be a decrease in the labor

cost, and while the workmen should exjject to get higher wages,
the employer expects with reason, to pay a lower price per piece.

may

When

the workman has an opportunity to do a larger amount of

work without any increase in the cost of living, and to receive for
his work a larger wage, he is in exactly the same p>osition as the

who by reducing his price is enabled to sell a larger

quantity of goods in a given time, to turn over his capital oftener,
and to make a larger profit in the course of a year, although he
merchant,

makes a much smaller profit on each

article sold.

SCIENTIFIC

92
Finally,

we must

MANAGEMENT

consider that

when a man's

efficiency is in-

creased as a result of the application of scientific management,

only a small part of this increase in efficiency is due to his own

due to the study and effort of the

Accordingly any gain which is realized must be
employer.
divided between the employer and the employee, and usually with
effort

and that the most

of it is

the public in the form of lower prices, in order that the public
may absorb the larger output resulting. If the employee is to
receive all the benefit resulting from scientific management,
which would be the case if wages were increased in proportion

would be no object for the employer to utilize

management and its adoption would be of no advantage

to output, then
scientific

it

community. If the employer realizes a third of the gain

due to scientific management, he has had his share, and must
to the

recognize that the other two-thirds belong respectively to the

employer and to the community.

ON BEING NOT EEQUIKED TO THINK, BUT TO CARRY OUT

INSTRUCTIONS

third objection often urged by workmen against scientific

management is that they are not required to think, but merely

to carry out instructions.

They feel that when they receive
instructions
as
to
the
method of performing work, it
complete

work upon a lower plane, transforming them from

workmen into automatons. As one man has ex"
I like to think I think, even if I don't think."
The

places their
intelligent

pressed

it,

answer to
stress

Americans have in the past laid undue

on originality and not enough on ability to follow instrucIf

tions.

this is that

ten

men

are given explicit instructions as to exactly

do and how to do it, very seldom will it be that one out

of the ten will do exactly as he is told.
On the other hand, if ten

what

to

men

are given a puzzle to solve, most of

a reasonable time in solving the puzzle.

them will succeed within

The solution of a puzzle
work really does not require

or the origination of a method of

any higher order of intellect than the exact following of a described method, and is, in the majority of cases, a gift of consider-

ably lower social value.

SCIENTIFIC
I have

MANAGEMENT

93

had considerable experience in writing out exact direcmen in the junior and senior classes of an engineer-

tions informing

how

ing school,

to perform certain experiments

for instance,

to calibrate a gage.
Three men out of five when given the
directions for calibrating a gage will read them over and then go
to work to calibrate the gage by a method of their own, which is

how

In the same way, it will be found that when

usually incorrect.
a workman is given a piece of work to do, he will perform the

work by a method of his own which is usually incorrect, in that

not the most efiicient method.
This brings up the question
of whether, for his own amusement, a workman ought to be
permitted to adopt inefficient methods of work. When it is put
in this blunt manner, every workman will admit that he ought to
adopt the most efficient methods of work, and when he realizes
that his wages are reduced and his employment endangered if he

it is

follows inefficient methods, he will usually be perfectly willing

to follow instructions.

The use of instruction cards does not, however, take away

from a workman the power of initiative.
When a workman
succeeds in devising a better method of doing a piece of work
than that devised by the planning department, his method will
be adopted, and he will receive a reward for devising it.
If a
workman shows himself capable of devising good methods of
work, a place will soon be found for him in the planning department in which he can use his superior ingenuity to his heart's
content.

Because he has been accustomed to the use of the best

methods, he will have a very much better fund of exjjerience to

draw upon than a man who has always worked in shops in which
their own methods, and on that account
be of a superior character.
The use of instruction cards does not prevent a workman from

the
his

workmen devised

work

will

thinking about his work, or from striving to originate new

methods, in case he has any originality. Instead, when working
from instruction cards, he has constantly before him examples
of the best

methods

of doing work,

and

his exp)erience is very

much superior to that of a man who works

workmen devise their own methods.

in a shop

where the

SCIENTIFIC

94

A man who

MANAGEMENT

minded to do so can advance very much

is

faster

in a shop under scientific management, provided he is willing to

To the intelligent workman such a shop is a
study and learn.

trade school, which will help

his trade,

and a chance

The argument

him

to a better understanding of

for larger usefulness.

that scientific

management destroys the work-

of thinking is a fallacy, because it assumes that the

thinking which the workman does is in regard to his work.

man's power
only

The

higher wages which scientific management involves will

bring to the workman opportunities outside of his work which he

cannot get otherwise.

It will give

of books, for the building of his

children

and

him money

home,

for increasing the refinements of

were true that

scientific

management

for the purchase

for the education of his

life.

curtailed the

Even

if it

workman's

opportunity to exercise real originality in his work, his intellectual

would still be the gainer from its introduction.

The workman's principal objection to scientific management
is that he likes to do things his own way, to work as he pleases
and when he pleases.
Scientific management is objectionable
to him because it compels him to change his habits, which is an
If a workman were trained under
uncomfortable process.
life

scientific

and

management from the beginning

were put to work

of his apprenticeship,

in an ordinary shop,
He
the change in habit would be just as disagreeable to him.
would object strenuously to being saddled with additional
after several years

pay was substantially

workmen and the
of
the
would
on
his nerves, and
general inefficiency
shop
grate
be ten times more disagreeable to him than the change in habits
responsibilities while at the

reduced.

which

We

same time

The shipshod methods

his

of his fellow

scientific management usually introduces.

must recognize that men are prone to complain and that

anything new, especially if it involves a change in habit, will

be the butt of the complaint. If they could not complain about
scientific

management, they would complain about the length

temper of the boss or the tools furnished for their

of hours or the

work.

SCIENTIFIC
SCIENTIFIC

MANAGEMENT

95

MANAGEMENT INVOLVES A CHANGE

OF HABIT

The
which

fact that scientific

disagreeable to

is

against

it.

People

management involves a change

many men

in habit

not a serious argument

become accustomed to living in dis-

who

is

orderly and dirty surroundings find themselves uncomfortable

when obliged to clean up and put things in order. Habits of
labor which are inefficient are just as objectionable from the
standpoint of the social welfare as habits of life which are unsani-

Coming generations

tary.

will look scornfully

upon those who

are inefficient, just as the present generation looks scornfully

upon those who are dirty.

The change of habits involved in the adoption of scientific

management is, from the practical standpoint, the strongest
The minute you can show a workman
objection that there is.
that

to his financial

it is

scientific

advantage to adopt the methods of

all objections but this will

management, that minute

ingrained in his temp)erament and

nervous system, and cannot be reached by logic.
Habit is one
of the easiest things to form and one of the hardest things to
disappear, but this one

is

eradicate, but even habits

the

demand

and prejudices must disappear at

of social welfare.

souls will urge against scientific

the same arguments which are urged against all
other advances of civilization, namely that it imi>overishes the
imagination, takes the p)oetry out of life, puts men to work at

great

many misguided

management

The same arguments are leveled

tasks, etc.
The sanitary dwelling is less picimprovements.
against
than
the
thatched
turesque
cottage; the mowing machine is
not so ix)etical as the scythe; the division of labor which enables

machine-like
all

ten

little

minds

in combination to accomplish ten times the task

that was formerly done

by the ten master craftsmen is said to

deaden men's souls and to limit their horizon. It is the eternal
battle of

common

sense and the good of the

community against

sentiment which regards only its own mental pleasures

and takes no account of the good of the swarming many that are

selfish

benefited

by

industrial

advancement.

SCIENTIFIC

^6

MANAGEMENT
"

NO PROVISION FOR UNIONS OR

COLLECTIVE BARGAINING

"

Another and very valid objection which workmen urge against

scientific management is that it makes no provision for unions
or

"

"

as our friends the sociologists prefer

It is undeniable that unions are necessary for the

collective bargaining

to term

it.

it would be
conditions
and
difficult for them to maintain satisfactory wages
of employment in the face of the tendency of capital to combine

workmen and

welfare of

into trusts

and

that without organized effort

because

If scientific management is incomworkmen cannot afford to accept it,

associations.

patible with labor unions,

when scientific management has been adopted and unions

have been destroyed, the whole of the benefits will be approincreased

priated by capital, and labor will receive nothing for its
efl&ciency.

the leading exponents of

scientific management are opposed to labor unions, and believe
that individual bargaining is one of the essentials of scientific

Notwithstanding that

management,

this is

of

many

We

not true.

can

still

have agreements in

regard to minimum wages, hours of labor, conditions of employment, and many other things which affect the welfare of the

workmen.

The

unions, however,

must stop short

of

making any

requirements in regard to methods of work or quantity of output or maximum wages paid or premiums given, because such
things are not proper subjects of discussion between the unions
and the employer, and because any effort on the part of the unions
to interfere in such matters will

harm workmen even more than

employers.
I believe that the reasons that the advocates of scientific

agement

feel their

work

to be incompatible with

unionism

man-

is

that

have in times past interfered in matters which

many
were not properly their concern, and by doing so have harmed the
of the unions

cause of labor.

Whether

scientific

management

is

largely

adopted or not, unions will some day cease to interfere in these

matters, because it is contrary to their own interests to do so.
Since proper demands on the part of unions do not interfere with
the operations of scientific management, and since those demands

MANAGEMENT

SCIENTIFIC
which would interfere with

97

operation are contrary to the

interests of labor, I cannot see that there is anything incompatible
in having scientific management in a union shop, and I believe
its

that any effort to destroy imions when introducing scientific

management can only serve to delay the date of its introduction.
Even the most serious objections to scientific management on
the part of workmen, however, fall to the ground in the face of
the fact that when scientific management is adopted workmen

Not
receive from thirty to sixty per cent in increase in wages.
only will there be an immediate increase in wages as a result of
scientific
scientific

prices of

management, but with the extensive introduction of

management, there will be a substantial decrease in the
all those commodities in the manufacture of which it is

It is usually found that it is impossible to

generally applied.
combat the self-interest of a community for a considerable

period of time, and as soon as

ing class, in

common

stantial benefit
will

all

becomes apparent that the work-

members

disappear and those things which at

serious

and

from

it

of society, receives subscientific management, the objections to it

with

in

drawbacks

some

will

first

were regarded as

eventually be deemed to be mere

trifles

cases be regarded as positive benefits.

OBJECTIONS OF THE PUBUC TO SCIENTIFIC MANAGEMENT

From
made to

the standpoint of the general public, objection can be

scientific management if it can be shown that it is ineffi-

lowers

cient, that it injures the health of the

workmen, that

the quality of the product, or that

brings about undesirable

it

it

economic changes. The public does not, however, need

worry about the question of efficiency, because if scientific

social or

to

management is not efficient, it will not be used by manufacturers.

Scientific management will for a long time be under very severe
scrutiny by workmen themselves and it is unlikely that any harm
will come to the physical welfare of the workmen imless in very
exceptional cases.
Scientific management does not usually lower the quality of
the product.
In certain cases quality may suffer, but in most
cases quality will improve as a result of scientific management.

SCIENTIFIC

98

MANAGEMENT

Sometimes a decrease in the quality of the product is not a serious

matter, while at other times

If it is, scientific

it is.

management

is prepared by proper inspection to insist on such quality as may

be commercially desirable. Whenever the public is disposed to

for
require a certain standard of quality, and is willing to pay
that quality, there need be no fear that the quality of output will
suffer from the introduction of scientific management.

The

principal objection to scientific

management

is

that

it

will

bring about very important social and economic changes with

which our present laws are not capable of dealing. One of the
effects of scientific management will undoubtedly be the destruction of the small manufacturer.^

Scientific

management achieves

Those firms
greatest success in comparatively large plants.
which adopt scientific management and are able to secure sucits

cessful administrators, will

crowd

their competitors to the wall,

eventually absorbing their business and becoming monopolies.

Since our present laws are obviously inadequate to deal with
such a situation, it follows that we must have a little scientific

management in the law making department of our government

if we are to avoid social and
poHtical evils from the growth of
scientific

It

management.

be pointed out in this connection however, that men

"
public-be-danmed class do not take kindly to scientific

may

of the

"

management.

management

Men who
are those

are successsful in introducing scientific

recognize their duties, and are pre-

who

pared to act for the welfare of the community as well as of their

workmen and themselves.
And aside from this fact those
monopolies which will be the outgrowth of scientific management

be less oppressive and objectionable than those which are

the outgrowth of high finance,
legislative favors, or the cornering,
of natural resources.
will

Experience thus far does not bear out this statement.

Plants in which
management has been successful vary in number of employees from
about one hundred to about three thousand. In other words, they are small and
medium-sized concerns.
In view of the degree of centralization necessary under
scientific

scientific management, it is rather to be

expected that
plant more eflSciently than the very large establishment.

it

would

Ed.

fit

the smaller

SCIENTIFIC
Another economic

evil

which

MANAGEMMT

99

from the adoption of

the mis-direction of effort which will

may

result

scientific management is
mark the transitory period while conditions are becoming settled.
The cause of this is that by the use of scientific management the

output of an industry will be very greatly increased.' Sometimes

the increase will be so great that the community cannot absorb
the entire output at the cost of manufacture.
The result will
be that certain lines of work will be overdone and we will be some
time in finding a rational and prop>er outlet for the extra productive capacity

made

possible

by improved management.

SOCIAL AND ECONOMIC EFFECTS OF SCIENTIFIC

MANAGEMENT

surveying the social effects of scientific management,

impressed with the idea that scientific management will

Upon

one is
improve social conditions very greatly and that there are only
two economic evils prevalent at the present time that will not be
materially diminished

by the

direct or indirect effect of scientific

management. The first of these is the misdirected application

of capital which results in potential overproduction in certain
lines of industry.
The second is the diversion of capital from

As an example of the first evil, I

industry for private pleasure.
may cite the textile industry where capital is invested to such an
extent that the mills are capable of filling all demands for textile
Exgoods when working at only a fraction of their capacity.

amples of the second

evil are

themselves to most of

my

unnecessary since they will suggest

readers.

management must, in the long run, depend for its

upon the habit of mind of those who administer it. We

Scientific

success

think of the scientist as being a

man who

intelligently honest,

who

istration of scientific

management.

is,

above

all

things,

without passion or prejudice; who

is open-minded and determined to arrive at the truth.
The
scientific habit of mind is the only one compatible with the adminis

The man

in authority

must

divorce himself from prejudice, from preconceived notions and

snap judgments, and from everything which will turn him aside
*

On

the contrary, experience thus far has

is sufficiently

shown that the

gradual to be easily provided for in advance.

increase in out|>ut

Ed.

SCIENTIFIC

lOO

In adopting

from the truth.

MANAGEMENT
scientific

management, he must

recognize certain great principles; some of which are economic,

some of which are psychological, some of which are ethical, and

some

of

which are merely physical.

An industrial establishment is merely a part of a great economic

Recognizing this, the employer will see that if the
estabhshment does not minister to the needs of the community,
Not only must its product be valuable, but its work
it is useless.
system.

must be

on

in such a

as not to

harm

the community.
Work which is carried on at the expense of a part of the community, in order to benefit the remainder, cannot be justified.

By

carried

such work I

mean work

way

carried out under dangerous or un-

sanitary conditions, or where the wages paid are insufficient to

maintain the community standard of living. It may be cheaper
to carry

on work
will

in that manner, but the moral sense of the

not in the long run permit of it, and scientific

community
management recognizes the fact.
The interests of all men engaged

in a given industry are

certain school of thought is accustomed to regard

the labor situation as a war, in which employer and employee are

identical.

striving to obtain

to secure

an advantage over each other, each striving

from the other the largest possible proportion of the

total returns of the industry.

Scientific

management

recognizes

error, and knows that cooperation between employer

and employee is essential. It recognizes not only that the employer must purchase the cooperation of the employee by high
wages and fair treatment, but also that he must cooperate with
the employee by assisting him in every way to become as efficient
and valuable as possible. Each must cooperate with and assist
the other, and must purchase by fair dealing and generous

this to

be an

attitude the cooperation of the other.

The greater the productivity of a community, the

more prosand
restricted
community
High wages
are
and
production
incompatible,
only by achieving the highest
There may
efficiency can the greatest prosperity be reached.
perous the

will

be.

be, however, overproduction in certain lines of work, because

SCIENTIFIC
too

much

lOI

many men may be engaged in that line.

mean that too many men are employed or too
It merely means that men are
is available.

capital or too

This does not

much

MANAGEMENT

capital

employed in the wrong industries and that capital is invested

in the wrong lines.
Consequently, the application of scientific
management to all establishments engaged in one particular
industry may result in throwing the industrial system out of
balance by producing more of one kind of goods than is necessary.

CONCLUSION

Work

well done under proper conditions is interesting and

Work
healthful when the worker is healthy and well nourished.

under unsanitary conditions

is

unhealthful.

workman is always overtaxed by relatively small

poorly nourished
tasks.
Unsatis-

factory surroundings and slovenly work results in nervous strain

which breaks down the workman's health. Men differ mentally

and physically in innumerable ways, and each workman must be

studied in order to discover the most useful place in which to put

He must

be put in that place where his

utilized to the utmost.

him.

careful study of a piece of

work by a man

abilities will

be

of scientific habit

command

the knowledge of a large number

will
in
result
the development of methods of
of expert workmen,
doing work which are far superior to the methods usually emof mind, having at his

Workmen naturally perform their tasks in improper

ployed.
a
result of habit.
In order to have them p)erform the
as
ways
in
a
must
tasks
have sup>ervisors to see that they
prop>er way they
form correct habits of work, and they must be encouraged by
extra pay to continue in these habits.

The cooperation of workmen must be secured by persuading

them that the employer has abandoned the attitude of war
and that he
with the

is

willing to divide the results of his

men whose

co6p>eration

improvements
makes these improvements

possible.

management are so many and

varied that not only employers and workmen but the com-

Finally, the benefits of scientific

so

I02

SCIENTIFIC

munity generally

will

MANAGEMENT

participate in

them.

It

is

therefore

proper not to object to scientific management but rather to study

the ways in which we can eliminate the evils which may possibly

come from

its use,

and take advantage

of the benefits just as

we

take advantage of the benefits of railroads, printing presses and

steam power, in spite of the manifold evils which some men

thought they foresaw as a result of their introduction.

UNSYSTEMATIZED, SYSTEMATIZED, AND

SCIENTIFIC
By

HENRY

MANAGEMENT
P.

MANAGER OF THE PLIMPTON

Reprinted by

The

permission of the

Amos Tuck

KENDALL
PRESS,

NORWOOD, MASS.

School of Administration and Finance.

is similar to one written previous to the

the
Interstate
before
Commerce Commission protesting
hearings
in
increase
The purpose of
the
freight rates.
against
general

plan of this paper

that paper was to

make

Management, a term then

clear

what was meant by

unfamiliar.

To

Scientific

present the same line

words in the
"

of thought again receives its justification by the first

announcement of this conference, which states:

Notwith-

much has been

written concerning Scientific Management in newspapers and magazines, there is no

definite conception in the minds of manufacturers and business
men of its nature."

standing the fact that

That this type is not well known even now is scarcely to be

wondered at.
Until recently little had been written for the
public press and but few manufacturers were working under it,
and the small group of men who were associates of Mr. Taylor,
or kindred spirits, were too engrossed in their own tasks to do

much

talking or writing.

Scientific

Management by

which we are

It is

my

describing

it

object, then, to illumine

in

terms of business with

and by comparing some of its essential

more familiar types of management.

all familiar,

features with those of

Any manufacturing

or mercantile business

made up

of

diflfer-

ent processes more or less interdependent must, to secure the

best results, be so organized that the separate processes and the

members within these will be brought into systematic conTo bring

nection and operation as efficient parts of the whole.
about and maintain this is the function of the management. To
do it to the highest known degree is possible only by what we
unit

choose to

call

the science of management.

103

SCIENTIFIC

I04

MANAGEMENT

management seem

All types of

to fall readily

under three

heads which, for want of a more exphcit terminology, we will

caU:
Unsystematized Management.
Systematized Management.

I.

II.

Scientific

III.

Management.

Some deOf course no classification of this kind is exact.

those in a
partments of an unsystematized plant may equal
in the second class may approach
systematized, and likewise those
in
in
third
the
places; but on the whole this seems a
efl&ciency
The

natural division.

ment which

will

functions of the three types of manage-

be compared are:

A. Accounting.
B. Purchasing.
C. Storage of Materials.
D. Execution of the Work.
E. Efl&ciency of the Workers.
I.

Unsystematized Management

made on a

basis of the earnings of

that they are not meeting their own
Such a condition
competition successfully or making money.
costs and selling
which
exists
between
their
on
the
margin
depends

This classification

this group, nor does

prices.

is

it

uQt

mean

It does classify

them on a

basis of efficiency,

and means

that their costs are not so low as they would be were their form
In the
of management the systematized or scientific type.
opinion of the writer fully 70 per cent in number of the plants

would belong in this class, and they are easily

do
not mean that 70 per cent of the workmen in
recognized.
the country are working under unsystematized management,
but I think that 70 per cent of the concerns in number would
come under this class. We will look at the first function, namely

in this country

A. Accounting.

The accounting

in a business includes not

only the ordinary bookkeeping, but the entire clerical system

which has to do with orders, records and costs.
Accounting
the only means by which the management is informed from
time to time of the condition of the business, the progress it is
making, its weak and strong points, its selling values and costs,

is

SCIENTIFIC

MANAGEMENT

IO5

and the efficiency of all its departments. How thorough, lucid

and complete the information is as shown by the books indicates
to some extent the efficiency of the management and its grasp
on the affairs of the company. In the unsystematized plant the
accounting generally consists of a statement prepared after the
annual or semi-annual stock-taking, which shows (i) Profit and
It may possibly show profit
Loss; (2) Assets and Liabilities.
and loss by departments or by products, but this last depends
on a correct method of ascertaining costs which the unsysteSuch statements are merely a record
matized plant seldom has.
If the statement is bad it is
of an historical fact in most cases.

too late to remedy the troubles of the previous year because it

shows merely the result of that year. Frequently, due to imf)erfect methods of stock-taking, appraising and compiling, the

yearly statement
ancient.

may be

delayed;

then the history

my own observation by
illustrate: A large concern ended its

One example from

unusual

will

on January 31 and did not know the result of

until July 17 following,
loss, assets

months

and

and then

liabilities.

in the simple

its

it tells is

no means
fiscal

year

year's business

form of

profit

and

This information came nearly six

and was then from

after the close of the business year

six to eighteen months old, too late to do anything to stop the

This was a dangerous case, but a common
leaks of that year.
one.

Any firm

of accountants can testify that

it is

to audit the books of a concern which thinks

no unusual thing
it is

prosperous,

and to show that concern that it is insolvent. Within twelve

months the writer has had experience with a business in which
an audit was made of the books because the proprietor thought
The audit showed that the
his bookkeeper had been dishonest.
had
but
that
the concern was insolvent,
been
honest
bookkeeper
and shortly after it paid its creditors thirty cents on the dollar.

A
is

lack of proper cost accounting in the unsystematized plant

notorious example
many failures.

the cause of losses and of

of this appears in the printing industry.

department store makes the boast that

In Chicago one large

it secures its printing

Io6

below

SCIENTIFIC

MANAGEMENT

Its method is to send for estimates on printed forms

number of printers for every job of printing it has to

cost.

to a large

give out, and then to give it to the lowest bidder on the assumpIt is reported
tion that some one will have figured below cost.

that at the close of one

fiscal

year there were no

less

than fifteen

Boston, and it would not be

this proportion held throughout the country in this

failures of printers in the city of

strange

if

particular industry.

So much importance is placed upon cost of printing at the

time, that one national organization of employing

present

no less than eight men employed installing uniform

cost systems in printing ofl5ces of its members throughout the
Too httle importance is placed upon accounting in
country.
printers has

the unsystematized plant, and as increasing competition in various

is continually lowering the margin of profit, the ac-

industries

counting must become relatively more and more important to

this class of business.

B. Purchasing.
The purchasing of materials, stock and
miscellaneous supplies under this type of management may be

done by one
likely this

man
is

or by a purchasing department; but more

not very well defined and the purchasing is

duty
done by a number of persons, especially those needing the material.
Little study is put on the standardization of materials,

and

different kinds of stock for the same use are often bought.
This tends to remnants on some kinds, overstock and understock
on others. The buying is seldom done on exact specifications,
is

not always even by written order, nor

maximum and minimum

is

there a predetermined

established of each article that should

be carried in stock. The head of the business or the buyer may

be an exceedingly shrewd trader and may buy very close at times;

but he

will

not always buy the materials best suited to the work,

often overbuys or underbuys for lack of definite information,

and is frequently tempted by bargain lots that seem cheap but

more to use in the shop.

lack of well-organized purchasing results in
gressing to a certain extent through the shop until it

may

cost

The

and occupies space waiting

for

work prois

stopped

some material which has been

SCIENTIFIC
overlooked, or which

is

MANAGEMENT

107

not suited for the pmrpose.

fairly

successful publishing house in one of our large cities does its

Last year in making
buying by the unsystematized fashion.

up

its

statement of profit and loss, the inventory of paper amounThree-fourths of this pap>er exists as overruns,

ted to $20,000.

or odds and ends of lots which are stored in various printing

oflEices and cannot be used on an average-sized job.
They are
so scattered they cannot be

and

combined and the make,

size are different in nearly all the lots.

realizes

what

$15,000 from

Had

this stock
its

this

be forced to write

is, it will

books on what

color, finish

When

it

now

house

off

nearly
considers good assets.

the buyer in that publishing house standardized his paper

so that whatever remained from one lot could readily be used

on the next, had concentrated paper of certain kinds in one print-

ing

office,

and had accurate records of

amount of money represented

and would equal the original
buying

is

common among

his available supply, this

in stock could

be appreciably less
This sort of

cost of the paper.

unsystematized concerns.

C. Storage of Materials.

Many

to devote unlimited space for

manufacturers are willing

workrooms, not realizing that

room for the proper storage of materials is just as important and just as profitable as that used for manufacture.
In
the unsystematized plant there may be a general storeroom, but
seldom are all the stores to be found in it, and generally they are
the

piled

around almost anywhere and

be convenient when received.

in

any way that happened

The order

in

to

which such stores

upon the initiative of the men directly

and seldom can one i>erson assume or carry out this

are kept usually def)ends

in charge,

responsibility.

The

storage of materials and purchasing are very closely

related to each other.
Loss of time hunting for material is the

same whether the material is lost in the storeroom or has not

been purchased, and a lack of system in one department will
undo attempts at system in the others.
The effect of badly
of
stores
is:
Loss
(i)
time; work which should go
organized
through the manufacturing departments rapidly
different places waiting for materials of

is

held

up at

the proper kind or

SCIENTIFIC

I08
amount, and

this is

a direct

MANAGEMENT

loss.

(2)

Loss of space; more space

required to hold stores in an unsystematized way, and for lack

of standardization more stores will be kept on hand than are

is

Space is also lost in the workroom because work in

process does not pass promptly through the workrooms if delayed
for material.
(3) Loss of capital, because more money is tied
required.

up in stores which are not systematized and properly regulated,

and more money is tied up in the jobs which represent labor and

A lack of proper
almost always to be found in the unsystematized plant, and the management seldom sees the need for the
so-called extra work necessary to conduct that department
material sidetracked throughout the plant.
records of stores

is

properly.

Orders in the unsystematized shop

D. Execution of Work.
are recorded in a simple manner, sometimes even received and
These are described in
transmitted verbz^Uy by the salesman.
part verbally to the superintendent, who may further enlighten
It is assumed
the foreman on any of the details of such orders.
that the superintendent knows his business, that the foremen
theirs, and a workman is expected to sense what is wanted

know
and
is

to ask questions

made

selling

to

fill

when he is not sure.

in the exact

In this way an attempt

and accurate information which the

end has either not secured or has not transmitted in

writing.

"
foremanship
plan prevails where one foreman
handles as many men as he can.
The number of men and the

The

"

single

amount

of work he can look out for is limited by the amount of

which he can carry in his head and by his physical and
nervous endurance.
He gives work to each workman when the
detail

has finished his last job, and depends largely on the worker's
knowledge of what to do and how to do it. As questions arise
in the progress of the work, or where the written order is incomlatter

plete, the

workman

goes to the foreman

ofiice for instructions.

in turn goes to the

Meanwhile progress on the work stops.

selects his tools and appliances,
in which he is accustomed to do
work.
A difference in method of doing

The workman goes for and

and does his work in the way
that particular kind of

who

SCIENTIFIC
the

same kind

of

work by

MANAGEMENT

diflferent

IO9

workmen and

in different

detailed schedule of the average

often quite marked.
shops
workman's day in the unsystematized shop, where such day's
work is varied, will show a surprisingly small proportion of effecis

tive time.

Piece work

is

often used, but

bound

is

to be unequal.

The

determined by no exact method, are often subject to

change, and the output of such piece work is frequently limited
This lack of planning the work at the start,
by the unions.
rates,

of complete instructions, of coordinating the departments and

routing work throughout each of>eration, results in a congestion

work at many points. This slows down the outThe frequency of misput, occupies space and ties up capital.
takes in rush times and of shortages that must afterwards be
of unfinished

made

up, are not always called to the attention of the management.

It is exceedingly difficult also in this typ>e of plant to

secure a high quality of work and to maintain

Then, too, the costs fluctuate a good deal.

E. Efficiency of Workers.

and

especially so in dull times.

The

it

uniformly.

a whole, is low
uneven and varies according
foremen.
The output of a

efficiency, as

It is

to the executive ability of different

man or machine is largely determined by the opinion of the foreman and not by any exact standard. Piece work is not always
There is no special incenfair, and may be too high or too low.
tive for a foreman to cooperate with the workman.
Therefore,
while the majority of the men may be doing what they consider
a fair day's work, and some few may be working efficiently, the
efficiency of the

whole

is

low.

One example will illustrate a well-known

workman in the hat trade performed one

loss in efficiency.

process in

making

a hat by piece work, and earned not over $15 a week.

He was
well adapted to that kind of work and could easily have earned
$25 a week at that rate and would have been happier doing his
He was limited to $15
best, especially as he needed the money.
a week by the union.
It cost that firm more by this method,
because the floor space occupied by this part of the work could
have turned out 60 per cent more hats if the men had been rightly

no

SCIENTIFIC

MANAGEMENT

work and had been permitted to do their

because overhead charges were 60 per
more
best.
More
cent more per hat than was necessary for that operation.
than that, a workman who is well fitted for a task is not happy
when he is not doing his best and earning all of which he is
There is an economic loss to each, and the result is
capable.
selected for that kind of
It also cost

bad.

Even

greater ineiciency than this

may

occur with day

workers.
II.

Systematized

Management

This term as used here applies to the well-organized and

managed plants which make no claim to Scientific Management

In these plants the managers are methodical and

systematic, have studied and systematized each department
carefully and aimed to secure the best that has been done in the

as such.

line of systematizing

in

some departments

up
of

to the present time.

many

As

stated before,
is exceed-

such plants the efficiency

ingly good.

is

A. Accounting.
In this form of management the accounting
well done.
The books will show the condition of the business

This will
quarterly or monthly, and in considerable detail.
include the comparative feature; that is, for example, last year's
costs to date with this year's costs for the same period, for a
given department or product; will show costs of materials and
labor, and the proportion of overhead charges that make up the
cost of a single job or a given product.

Such

results

may

even

be charted and shown in graphic form to the management each

month. Other records will come up weekly or even daily. As
accounting

is

the

means by which

is

ascertained the exact condi-

tion of the business at a given time, the systematized management

Much of this
recognizes the importance of this information.

accounting, however, is done with the ultimate end of securing

correct costs, and these cost data are relied upon almost wholly,
the selling price, and (2) to point out excessive
and indicate perhaps where they may be reduced. Many
believe that when their accounting is well done they have a
systematized and efficient plant, but this really covers one phase
(i) to establish

costs

only of the management.

SCIENTIFIC

is

tH

MANAGEMENT

Frequently, too, the clerical work in the diflferent departments

not a part of the general accounting, and is not controlled by

the ledger accounts.

In other words, the same general system
of accounting does not permeate the whole plant and help to

support itself.
B. Purchasing.

through one

man

Materials

and

or department, a

supplies

are

purchased

maximum and minimum

generally established, and a decided eflfort made to purchase

Some analytic
the materials best suited to the workrooms.
methods are used in determining the proper materials, and

This
done on the more important kinds.
of
have
a
stock
aims
to
everything
purchasing department
It does not
required, but buys largely what it is asked to.
always make purchases on complete specifications, and a lack
standardizing

is

of complete standardization increases the detail of that depart-

ment.

So

far as the clerical

system

is

developed, however,

it

is

generally quite good.

You will recall the words of a well-known railroad president
some time ago who stated, before the Interstate Commerce
hearings, that the railroads
efficiency.

had reached

their ultimate

It is interesting in the light of this

end of

statement to note

an example of efficiency in purchasing by one system of railroads,

which has been acknowledged to me by railroad officials as
This is the purchasing
leading in this particular department.
as done by Mr. Thorne, who buys over $40,000,000 worth of
materials annually for the Union Pacific and Southern Pacific
railroad systems.

One

characteristic of

Mr. Harriman when he

took over a railroad was that he would go to any exp)ense in order

to standardize every bit of material used.
Mr. Thome is the

man who

carried this out.

In a letter the other day he told

me

that in the standardization of printed forms alone he had saved

over 30 per cent in the purchase of that particular commodity.

In standardizing these forms he reduced them in number, specifying certain standard sizes of paper, type, and other conditions

and I have no doubt that in his other purchases

methods have secured a great saving over those of competing

to be followed,
his

roads.

SCIENTIFIC

112

MANAGEMENT

marked contrast to the storage

C. Storage of Materials.
methods of the unsystematized plant will be seen at once. Here
is an adequate room in charge of a storekeeper who issues stores
expected to keep his place neat and
A perpetual list is kept
orderly and deliver his stores on call.
in the office and balanced with the stores, and the balance is

only on requisitions, and

is

proved by an actual count of the stores once a year or oftener.

Stores are partially classified and standardized to some extent.
It is only the most-used stores that are assigned to orders before

The physical handling of the stores, moving

actually called for.
them in and out of the storeroom, is done by the assistants of
the storekeeper and the efficiency of this work and the orderliness
of the department depend wholly upon the kind of man in charge.
The central office can exercise very little real control in this

department.

Not

all

systematized plants control

work from a

central plan-

each process before

therefore materials are not exactly pre-

writing the operations for

ning station by
the work is started;

determined and work

is. still

likely to

discovered that some material

is

be started before

lacking.

it

is

Neither are the

up automatically through the purchasing

department by a predetermined maximum and minimum of
quantities always kept

each kind.

Also,

it is

different departments,

the office;

general practice to have storage space for

some of which are not under control of

for instance the miscellaneous supplies

used for the

for repairs, piping and plumbing, electrical

maintenance, etc., may be scattered about with little idea of
order, while the actual materials for use in manufacture may be

power department

in

good order.
D. Execution of Work.

complete set of order-cards for

The worker receives

recording and transmitting orders is in use.
a written order for the work he is to do. This seldom takes the
form of an instruction card giving him complete information for
It is apt to say what the work is,
every move and every tool.
assuming that he will do it in a satisfactory manner. Workers
almost always record their time for each job on a card, which
registers the labor cost accurately.
They do not always register

SCIENTIFIC

MANAGEMENT

II3

the time lost in securing tools, materials and further instructions.

of a job, except in plants where the work is very

The planning

largely repetition,

work

is

likely to

be done as the work proceeds.

used wherever possible, and is considered the most

economical way of performing a given operation.
It is the aim
Piece

of

is

most systematized plants

possible.

This

to secure as

much

piece

work as

be unfair for different kinds of work to both

may

employees and employer.

Under systematized management the system keeps things

running smoothly, avoids most of the mistakes due to the lax
methods of the first kind of management and turns out a good

But a lack of centralized planning and centralized

product.
control of the workers causes loss of efficiency.

The emphasis of systematized

freedom from errors and bad work,

E. Efficiency of the Worker.

management

is

laid

on

costs,

and the greatest output per man and per machine that can be

The standard for this output is generally established

the
by
opinions or experience of the bosses, who have neither the
time nor the training to ascertain it by exact methods.
Great
secured.

emphasis is put upon the installation of new and modem machinery, but there is not very much analytical work done by the

management

to ascertain

whether the worker

very best possible way, or whether he

is

is

working

in the

adapted to the particular

The person who has charge of the employment

job he is given.
considers that there are four classes of people,
men, women,
If the foreman wants a girl, that is sufficient
boys and girls.

information for the one in charge of the employment, and a girl

is hired and assigned.
Little or no thought is given to the
question whether that particular

girl is

the right one for the

task.

For instance,

Laying
touch.

in

bookbinding there are different kinds of work.

with small fingers and a delicate

gold leaf calls for a girl

Strength

not required.
Another operation calls for
who can easily handle bundles of work weigh-

is

a large, strong girl,

ing seven or eight pounds.

In proofreading the time reaction of

word
and
a
grasping its meaning is a very important
seeing
feature.
Other girls doing inspection must have the ability to

SCIENTIFIC

114

MANAGEMENT

The
concentrate their minds on one particular operation.
kinds of work demand girls selected with special
In every
reference to their aptitude for their particular work.
different

factory will be found workers in one department who cannot

successfully do their work, but who could successfully do work
of another kind.

unknown

The

in the systematized plant,

and

the worker

is

almost

this fact alone

makes

scientific selection of

impossible the highest efl&ciency.

When I think over the psychology of industrial workers, I
am reminded of my own experience in college. In the psyclass.
I had
chological laboratory tests were made on all
the quickest time reaction from seeing a flash of light to muscular action in pressing a button I had the slowest time reaction

my

comprehending its meaning, and

then pressing a button which registered the time it had taken
This experiment
me to see and comprehend its meaning.

in the class to seeing a word,

showed the reason why I was the slowest reader in my class and
why on a given task in reading, in hterature or any other subject,
I took longer than any one else.
While not a sprinter, my record

not because
dash has never been beaten,
I was a fast runner, but simply because the time reaction to
for the fifteen-yard

effort enabled me to get off more quickly after the

than any one else. I never could have made a proofshot
pistol
reader, or earned my salt as a bookkeeper, but I think I should

muscular

have made a tolerably good motorman.

The step from unsystematized management to systematized is
a difficult one because it generally means a more radical change
in the personnel of the supervisory force than does the other

The unsystematic manager is likely to associate with

him men of a similar type. To do one's work in a systematic
way is not wholly a matter of training, and the foremen and
step.

superintendents in a thoroughly unsystematized plant cannot

always develop the habit of working by means of system. The
unsystematized plant still remains, either because its competitors
are in the

same condition or because there

is

a large difference

between costs and selling price, or because the business is dominated by one or more strong characters whose ability in other

SCIENTIFIC

MANAGEMENT

II5

phases of their work more than makes up for their lack in organizSooner or later, however, this class of industries
ing ability.
will be forced to change or be eUminated.
This has already
taken place in a
facture of shoes.

number

of industries, as for example, the

manu-

Twenty-five or thirty years ago there were more shoe shops

The competition in manufacturing
than there are today.
shoes and the intricacy of the detail have

made

it impossible
the
limit of the
grow beyond
single foremanship plan, with the result that only the systemaThe others were absorbed or ceased
tized plants could increase.

for the unsystematized plant to

and today there is probably not an unsystematized plant

Indeed, some few shoe
engaged in the manufacture of shoes.
to be,

manufacturing concerns are developing

Scientific

Management

very rapidly in all their departments. And what has happened

to the shoe industry is now happening to other industries which
are in the transitional f)eriod through which the shoe manufacturing industry passed twenty or twenty-five years ago.
III.

A. Accounting.

SciENTiric

Management

The accounting under Scientific Management

shows the manufacturing and expense accounts for the year by

thirteen periods of four weeks each, instead of twelve monthly
periods, and at the expiration of each of these periods it shows
the profit and loss and assets and liabiUties. These in the unsystematized plant are shown yearly, and not always in the systematized plant are they shown even monthly.
Further, the group
'

and unit costs

of the various products, the cost

and output

of

each department and all expenses which might be applied directly

"
"
to the product are shown in full, and the
comparative
features are much more useful because four-week periods give

a more equal basis for comparison.

monthly statement as
shown by the books in the systematized accounting does not give
an accurate comparison because, for instance, some months
must be understood, of course, that this feature of four- week periods is not
management, and may in fact, in some instances, be less
Eo.
convenient than the usual monthly periods.
1

It

essential to scientific

Il6
will

SCIENTIFIC
have

five pay-rolls

MANAGEMENT

where others have

four,

and the number

working days varies by quite a per cent because there may

be five Sundays or five Saturday half-days.
In substance, the general accounts of the company are shown

of

more complete form every four- week period than is shown by

The ledger
the yearly accounting in the systematized class.
accounts have absolute control over the stores department,
in

over the quantity and values of stores, work and materials in

and manufactured goods; and as every department

and function of the manufacturing coordinates with every other,
the accounting becomes a part of the very bone and fiber of the
process,

manufacturing.

One

radical difference in point of

of costs does not

view

is

have a special system

purpose, and the ascertaining of costs

that the ascertaining

installed for just that

is

not the end sought.

Under Scientific Management costs come as a by-product of

For instance, a ticket
the means used for increasing efficiency.
made up in the central planning department, when combined
with the instruction card, serves to plan the work in advance;
then it is used to control the order of work by being placed on a
bulletin board;

then

it

gives the

workman

his particular piece

do with the instructions how to do it.^ On this ticket

is stamped the time at which the work is begun and when it ends.
This same ticket then serves to check off the progress of the work
on the route-sheet. Then it goes to the accounting department
from which the man's pay is made up. It is then redistributed
and furnishes the labor cost of the particular operation on the
of

work

to

From

cost-sheet of the job.

cost-sheets similar to this are

summarized not only the cost on all jobs, but department expenses and charges which appear in each four-week period
statement.

In other words, the mechanism used under systematized man-

agement
Scientific

for ascertaining costs

Management

work, and from

*

The card

Ed.

it,

it

performs

little

has performed

its

other work; under

part in producing
come the costs.

as a by-product, so to speak,

referred to

is

the job card, for which see page 427 in this volume.

SCIENTIFIC

The
little

work

ascertaining of costs

MANAGEMENT

by

this

method

is

llj
done with but

more expense than is necessary for handling the regular

of operation.
Too much emphasis cannot be placed on

the value of tiie comparative feature in accounting.

Comparisons are a great spur to increased efficiency, and this fact is
For exrecognized as well in the systematized management

ample:

a certain group of department

stores,

each doing a

dty and non-competitive, have foimd

such good results from imiform accounting methods and the
information that comes from comparison, that they jointly
employ an accountant who coUects the monthly reports in
business in a different

detail

from those stores so as to make a comparison by items,

prints these data for the use of the management of each

and then
store.

For instance, one manager finds that Department A

in his store

did $50,000 worth of business the preceding month, had $35,000

worth of stock on hand, and is shown in detail what the labor
and other expense items of that department were. He sees that

another store did $55,000 worth of business in Department A

and had a stock of but $20,000. He immediately summons his

buyer and informs him of the result of this comparison, and asks
why he cannot do as well as the buyer in the other store and

what can be done and

cient stimulus in itself

now

tied up in stock.
The knowledge
done by the other store is often suffito cause to be accomplished what other-

release $15,000 of capital

of

is

wise would not be considered

p)ossible.

The expense and

frequently the shutdowns for the purpose of

the annual stock-taking are eliminated under Scientific Manage-

ment, because the accounting absolutely controls the movement

of materials in and out of the stores department, so its records

amount in stores and this value can be

The work of proving the items of
stores is done continuously, and the days, which often become
weeks and months, that elapse before even large and wellorganized concerns get the results of their stock-taking become
One large concern which is a customer in
a thing of the past.

show at

all

ascertained

times the

when

desired.

a business in which

am

interested finished its year of stock-

MANAGEMENT

SCIENTIFIC

Il8

of this year before

taking January i, and it was early in August
it got the results and knew how much stock it had on hand
The same will apply to the amount of materials
i.

January
and labor in process, which the systematized management finds
even a harder problem to handle, and also to the value of manufactured goods.
B. Purchasing.

Scientific

Management

is

not

satisfied

merely to have plenty of materials on hand when wanted, to

roughly standardize the principal items of stock used and to buy
at the market rate, but demands that
studied with reference to

all

First.

The

greatest adaptability to the work.

Quality and uniformity.

Second.
Third.

materials be carefully

Price.

Determination of the proper maximum and minimum

be
that shall
carried, so that the stores department may automatically govern materials and supplies which should always be
Fourth.

on hand.

When

this

on detailed

has been done, care

specifications.

is

taken to

The importance

make

all

purchases

of using materials

work and which are uniform in quality and by

standardization reduced to the smallest variety, is not sufficiently
appreciated by the buyer in even the systematized plant.

best suited to the

For example, a manufacturer of razors using a thin blade could

not secure a steel which would always act alike and produce a
uniform result with uniform treatment.
He employed a steel
This expert purchased the
expert of reputation to assist him.
best razors that different barbers had, analyzed them chemically
and microscopically and, as every man who uses a razor might
guess, found very great variation even in the

same makes.

In

he satisfied himself that no razor manufacturer, however

well-systematized his plant was, had ever scientifically deter-

fact,

mined the best

steel,

or

had purchased

standardize this material.

of a razor

After

had been a

many

As a

it

on a formula that would

result, all these years the

buying

lottery.

tests this expert secured

facturers samples of steel

on

from various steel manuand his own, and he

their formulae

MANAGEMENT

SCIENTIFIC
finally

II9

developed a formula that would give the best razor steel

it uniform.
As a result of this method of

known and maintain

manufacturer stood alone among the razor producers

of the country in ability to produce razor blades of standard

buying

this

If all his methods are as scientific as this, it is doubtful

quality.
whether his comp)etitors will ever overtake the lead he has seThis is not an extreme example by any means.
cured.
In
Another illustration of the standardizing of materials.
studying the supplies of a business it was found that there were

twelve kinds of wrapping pap>er regularly used and an investment

was needed to carry a sufficient amount. This was

of $2,500

now the twelve kinds of paper have been rewith a saving of $1,000 in the stock, 60 p>er cent in
the storage space occupied, and the available worth of this paper
for the demands that may be made on it is 20 per cent more than
standardized and

duced to

four,

This illustrates the saving made on but

one class of material used in a factory where standardization is

what

it

was formerly.

being worked out.

Such methods of purchasing compel the purchasing department to be intimately associated with the working of the materials through manufacture, and result in the following:
First. Uniform material best adapted to the work saves labor
and delay in workrooms.
Second. Minimum of kinds and sizes necessary to be carried.

Third.

Storage space saved.

Lower costs through buying in larger lots.

The physical aspects of a storeroom
C. Storage of Materials.
under Scientific Management do not differ greatly from those in
Fourth.

the systematized.
laid out in

A proper means of holding or piling the stores,

an orderly fashion,

in a varied terminology,

the different kinds of

is

provided.

To

avoid confusion

mnemonic symbols are used to designate

stores.
The maximum and minimum

mentioned above are determined for each kind, and kept on the
The bookkeeping
ledger sheets in the central planning room.
for the stores is not carried

force simply acting

on

on

orders.

in the storeroom, the

The

storeroom

location of the materials

is

I20

SCIENTIFIC

also indicated

on the ledger

MANAGEMENT

sheets, or, as they are

known, the

balance of stores sheets.^

in the systematized plant is not likely to carry
The
the materials and supplies used in the entire plant.
carried
be
and
construction
supplies may
engine-room, plumbing

The storeroom

all

in places provided for them, but not controlled as other materials

are.
Stationery and ofl&ce forms and supplies may be carried

Even in well-syselse under a different system.

tematized plants such items as are not considered a part of the
general stores system cause more or less trouble by being used up
somewhere

unexpectedly.

Under

Scientific

Management

it is

not

sufl6cient,

when mate-

are required, to send a requisition to the stores department,,

but all orders or work which require material have the items
rials

looked up and assigned to the specific orders by the balance of

stores clerks, and this material when assigned to a given order is
not available for another order which may follow. This is done
before the materials are required for use, and this method serves
as advance warning to the stores clerks if an unexpected demand
for a particular material is likely to occur.

Quick acdon

is

then

possible in purchasing more.

The work of moving

moving them from the

materials into the stores department and

stores department to the particular place

where they are to be used becomes a funcrion of the planning of

the work, and of the routing of the work, and the workman who
is to use them should not be delayed or have to give a thought to
the materials which he needs for his next job.
They are moved
in the right condition for his use to the point where he can use

them

to the best advantage.

The time which the workman
spends looking for or waiting for his materials can be better spent
in effective work.
The proper working of the stores department
in many industries, and especially in mercantile establishments,
is a very important one.

of

D. Execution of Work. The theory of the proper execution

work is that it should be planned completely before a single
*

Cf. F.

W.

Management,"

"
Sterling's
p.

The

Ed.
296.

Successful Operation of a System of Scientific

SCIENTIFIC

move

made,

is

and order

MANAGEMENT

that a route-sheet which

will

121

show the names

which are to be performed should

be made out and that instruction cards should be dearly written
of all the op)erations

each operation.
Requisitions on the stores department
showing the kind and quality of the materials and where they
should be moved, and lists of proper tools for doing the work in

for

the best

way

should be

made up

for each operation,

and then by

time study the very best method and apparatus for performing
each operation is determined in advance, and becomes a part of
the instruction.

By
as

means the order and assignment of all work, or routing

called, should be conducted by the central planning or

this

it is

This brings the control of all operations

routing department.
in the plant, the progress and order of the work, back to the cenInformation which even in the systematized plant i3
supjx)sed to be furnished by the knowledge of the workman or
the gang-boss or foreman, is brought back to the planning room
tral point.

and becomes a part

of the instruction card.

unsystematized plants no attempt is made to change

the method by which the workman f)erfornis his operations.

In

many

Plenty of time and money may be spent on special machinery,

but when that is installed very little time is spent in a close
analytical study of the time elements and motions involved in
operating, in order to make it f)ossible for the workman to work
in the easiest and best way and to furnish a fair basis of remuneration.

When

the analytical study has been made, the probable time

of operation determined, and a sufl5cient incentive has been

added

in the shaf)e of a

bonus

for p>erforming the

work

in the

way specified, then work can be much more

from
the central planning room because it is
controlled
accurately
be
in
done
likely to
approximately the time determined and with-

given time and in the

out lagging.

By functional foremanship,^ which has been described by previous speakers, the management brings to bear on each phase of
"
The Planning Department, Its Organization and
H. K. Hathaway's
"
The Foreman's Place in Scientific Management,"
Function," p. 366, and
Ed.
p. 395.

Cf.

SCIENTIFIC

122

MANAGEMENT

man particularly fitted by selection, training and exHis

assist in performing that part of the work.
to
perience
him
enable
with
to
and
worker
the
function is to assist
cooperate
the work a

him

to increase his earning capacity by eliminating trouble or

Even in the well-managed systemaor wrong methods.

delays

the weak point in his

plant the manager will tell you that
to
secure
is
the
business
good foremen, or good superinability

tized

intendents.
First.
is

He demands:

That a foreman

done in

shall

know

all

about the work which

his department.

That he be a good disciplinarian.

Third. That he have the abiUty to crowd work through and

Second.

get it out quickly.

Fourth. That he be cautious and accurate.
Fifth.

That he be able

to

keep account of innumerable

details.

To find all these quaUties combined successfully in one

is exceedingly difficult, to train such meji is also difficult,
to secure

them by natural

selection

and

"

man
and

survival of the fittest

"

takes too long; but to train men for functional foremanship by

selecting the best man fitted to do the particular function and
then training him in that, is simply one kind of division of labor

which has marked the progress of civilization.

The execution of work which is largely repetition, where the
individual processes are simple, reaches a very high efficiency
in many systematized plants.
The difficulties in securing effi-

ciency increase as the work becomes more varied and with less
proportion of it repeat-work, and in proportion as these difficulties increase

ordinary systems fail to produce results in more

This can be attained, however, by the central

intricate work.

planning room from the analysis and time study which is put
into all operations of work and reduced to instruction cards.
E. Efficiency of the Worker.

On many

simple operations in

manufacturing, piece work has always been considered the most

efficient method of securing output and low costs, and it is true
that where the remuneration is a just one and when the employee
is supplied with proper materials and works to the best advantage, this method of performing work approaches very close to

SCIENTIFIC

MANAGEMENT

1 23

Management; but such conditions of piece

As stated above and
work
emphasized by previous speakers, piece work with prices based
on the snap judgment of a foreman or by an imf)erfect test of a
single worker, is not the correct method to secure the greatest
Besides this, there are many kinds of work which
efficiency.
Under Scientific Management
are not adapted to piece work.
the efficiency of the worker and machine dejjends on five other
that of Scientific

are the ideal rather than the usual.

conditions, after assuming that the parts of the

management

which have to do with purchasing, storage of materials,

These conditions are:
well performed.

etc.,

are

Analysis and synthesis of the elements of o{>eration.

Second. Scientific selection of the worker.
First.

Third. Training of the worker.

Fourth. Proper tools and equipment
Fifth.

Proper incentive.

First.

The

first

condition on which the efficiency of the worker

that the management shall analyze carefully and thordepends

oughly every operation into its ultimate elements; shall then reconis

struct those elements in their proper sequence, ehminating those

which are unnecessary or those which are bad, and reducing the
form to a written instruction card for him to follow; the time
elements having been determined and becoming a part of the

instruction card.

It

is

interesting to see

what develops when

one really begins to study a seemingly simple operation.

The
motion study alone of bricklaying makes f)ossible the elimination

The change in location of a

machine which was operated by a girl who sat with her back to
an aisle where heavy trucking was done caused an increase of
Every time she heard a truck approach25 per cent in her work.
ing she involuntarily shuddered, probably wondering if the truck
would strike her.
Removing this operator to a quiet comer
of sixteen unnecessary motions.

caused the increase.

One

factory doing light manufacturing has lately put some

time into studying what have always been considered simple
operations.

was made

In certain places a differently shaped receptacle

for the articles

on which work was being done, bring-

SCIENTIFIC

124

MANAGEMmT

inches of the left hand, whereas for years

ing the pieces within six
before the worker had had to reach for these and occasionally
stop work to bring the articles farthest away within reach with
a sort of hoe. Other operations in this plant have been simplified

some workers so that the porter who

without interrupting and causing
so
supplies materials can do
a stop in the work several times a day.
study of extra steps
and Uttle delays by an inteUigent observer is a necessary work

by changing the

position of

When all these

before the greatest efl&ciency can be secured.
a
to
of
the type best
reduced
writing,
study
analyses have been
fitted to

do

this

work

is

made.

The type of worker

Second. Scientific Selection of the Worker.
who physically and mentally is best fitted to do a kind of work
selected after a careful analysis of that class of operations
with reference to the physiological and mental differences

must be

made
in human

beings.

The

and quality of work

as 40 per cent or 50 per cent in a
engaged on the same kind of work.

difference in output

has been found to vary as

much

group of men or women

As they were of apparently equal intelligence and education, this
could be explained only by the physiological and mental differences. As a result of time study and motion study of various
groups of operations in one large manufacturing plant, it has
been found that there are so many workers performing a kind of
work to which they are not suited, but who might excel in another kind of work, that the

management has

laid plans to es-

do another kind

tablish classes to instruct workers to

of

better adapted to their capacities.

Of two

different departments,

and B,

twenty

for instance

work

it has been found that

containing thirty girls and B
over 20 per cent in A are unfitted for that kind of work, but

would be

fitted for

work

in B,

and

vice versa.

scientific

selection of the workers is possible only

The effectiveness of this will
operations.

principles of

from the analysis of

be greater when the
the psychology of working and kinds of work are

better understood

by industrial managers.
The psychology of advertising has lately been coming to the
The psychology of industrial workers is still a great field
front.

SCIENTIFIC

MANAGEMENT

125

The

vocational schools will not perform their true

function properly until they come to a better knowledge psychologically of the mental and physical requirements for different
for research.

kinds of work, and are able by tests to determine in which their

pupils are likely to be successes or failures.

workmen

but a part; the scientific

selection of foremen, of superintendents and managers is just as
How frequently one sees a man struggling with the
important.
Scientific selection of the

details of

an

office

is

or with the wear and tear of executive work,

on the verge of nervous prostration, when that man is wholly

unfitted for that kind of work and his attempts successfully to
perform

how

it

result in his undoing.

to judge a

ing, there

man's

If

managers themselves knew

work and were more observbreakdowns and physical wrecks

fitness for his

would be many

less

than there are now.

Third.

Training of the Worker.

Having first carried out the
which has pointed the way to the proper

study of the operation

becomes the duty of the management

do the work in the way which the result
of the analysis has shown to be the best way.
This will be
is to train
a
foreman
whose
it
functional
accomplished by
duty
the workmen and help them on each job to get started right. If
they fail to do the task in the time fixed it is the duty of the functional foreman to find out why they have failed, and to help
them do the work as it should have been done. This is a wide
departure from the old school, which assumes that the journeyman has sufficient knowledge to do his own work in the most
selection of the worker, it

to train the worker to

manner. In the training of workmen it is interesting

how they develop through an aroused interest and coop-

efficient

to see

eration of those over them.

Fourth.

Proper Tools and Equipment.

The

fourth condition

that the worker be supplied with the best tools and just the
ones needed for the particular operation, and supplied when
is

needed; that he be given the best machine, maintained in first

class condition, so that machine, belt and tool failures will be

reduced to the minimum.

To maintain

the machinery, etc., in

SCIENTIFIC

126

MANAGEMENT

duty of the management, and Scientific Management provides the means with which to do this.
Sufficient incentive should be given
Fifth. Proper Incentive.
this condition is a

the worker to perform the operation or the task that has been set
To make this possible for the worker, funcin the given time.

and the principal object of such

functional foreman is to assist the worker and eliminate trouble
The functional foreman trained to his specialty will
or delay.
do this more effectively than the old-fashioned all-around foreman. Examples have been given by previous speakers of relative
tional foremanship is necessary

increase in efficiency of the worker as a result of Scientific Management. Of course such relative increases in output cannot be

considered universal.
able to

run at double or

Certain machines are not mechanically

triple their former speeds, but Scientific

tends to lessen the numberless Httle delays which

the condition of the machine, of the material to be worked
upon, or the instructions to the worker may have been respon-

Management

sible for.

must be to the financial interest of the worker to be indusand it has been shown to be for the interest of the management to do everything to make possible and profitable this
increased industry of the worker, thereby gaining a more uniform
output, and an output per man or machine which is maintained
more uniformly in dull or busy times.
There is another feature which is of interest; that is, if the
worker engaged on the task and bonus does not receive his materials promptly and on time, if his machine is not in the condition
It

trious,

it

should be, or there are other avoidable delays, the worker has

sufficient interest in the

serious kick,

and

probable loss of his bonus to

right this trouble.

together demanding of the

management that as nearly

perfect working conditions be maintained.

Conclusion. The central planning and control of
is

such a vital part in Scientific

to the

make a

the duty of the gang-boss to immediately

Therefore, the workman and the boss are

it is

same degree

Management

in the systematized.

where complete planning

is

is

as possible

work which

not developed

In systematized plants

attempted, however, the instructions

SCIENTIFIC
and orders

MANAGEMENT

particularize what is to be

done rather than how

27

it is

to be done.

In the systematized plant the system in one department has

been planned especially for that department, and is not a part
of the system framework which pervades the whole, as in Scientific Management, and it is a constant fight to maintain such

independent systems and especially to change and modify them

with changed conditions or the increased growth of the business.
In closing

let

us see the effects of this type of management in

general on the plant, the product, the worker and the management.
Plant.

Scientific

Management

furnishes the machinery for

maintaining the plant in better condition by centralizing the

control, by the use of such devices as the standing order file in

which are collected and reduced to writing and properly indexed

From it, by listing and
the practices and rules of the company.
of
certain
to
be
a
the departdone,
program
things
making

ments, machinery, shafting, drains, gutters, etc., to be inspected,

this program can be handled month after month by routine

manner which the management has carefully predetermined.

attend to the maintenance of a plant in this way is working
to prevent delay and expense rather than cure it afterwards.

in a

To

For instance, eliminating delays due to belt failures, shaft-boxes

which have been overlooked and run dry, and indefinite inspection of premises, pipe lines, traps, etc., tends to save expense
preventing trouble.

Product.

The product

of such a plant should

by

be more uni-

formly even, and there should be fewer mistakes and less inferior
Once a standard is set for each operation, that standard
work.
It costs little more to maintain a high standconditions
than a low one under old conditions.
these
under
ard
The Worker. The condition of a worker's mind has a very

can be maintained.

on his physical being. There is a psychological effect

on a worker in having the work divided into definite tasks, each
one having its goal in sight and sustaining effort to that time.
The piece workers in one plant in which I am interested were

large effect

interviewed by a

woman

journalist at the time so

much

publicity

SCIENTIFIC

128
was given

to Scientific

MANAGEMENT

Management by

the hearings before the

Interstate Commerce Commission, and she asked them how they

liked the task and bonus.
They said they did n't know why it
But that was
was, but they liked it; they were earning more.
not all: the piece work flowing to them in an unending stream
had been discouraging; there was something they could not
imderstand, but when it was broken up into definite lots they
liked

him

a hill.

much better. You can discourage any man by setting

work with a pick and shovel and telling him to shovel away
He knows he can never get it done, but if you say; " Here,

it

to

you shovel so many tip-carts full in a day, or in a given time,

and you will have a certain percentage of increase of pay for
that time," you have changed the point of view, and that man
every time he finishes a tip-cart full has accomplished a definite
His effort is sustained for that time, and he is going to be
task.
able to sustain that effort in the future.

That

is

one reason

why

profit sharing among the working classes is almost an absolute

failure so far as increased eflSdency is concerned; the time of

sustained effort for a year or six months is too long. Neither can
his best work who is nagged by a foreman, who has

a worker do

been given insuffident instructions and

his

is fearful lest

work wrong, and who, having made a mistake,

oftentimes perhaps unjustly.

do his best work if he wishes

He

is

not in

he

is

doing

jumped on,
a frame of mind to
is

to.

In one factory there was great diflSculty in keeping the women

workers in a certain department.
They were either unwilling
to continue to work or frequently gave out, and it was a puzzle
for some time to find out what the trouble was.
When the
analysis and time study were put into this department, it was
found that part of the trouble was due to the fact that they were

not earning so much as workers in adjacent departments, that

they were nagged by the foreman who did not understand how
to handle help, and that they were working at a disadvantage
in the arrangement of their work
The first step was to
places.

up their places so they could work to the best advantage. A

time study then showed that by working according to instructions they could easily do 50 per cent more work.
To insure
fit

SCIENTIFIC

MANAGEMENT

1 29

the work being well done, one of the best girls was selected as an
inspector and given charge of their work, the foreman having

nothing to do with them.

extra work,

time study

working

man and

All the girls

who

few of the

girls

were tried on the

under the constant instruction of the

being paid an additional amount.

were physically fitted for this kind of work

amount, which they did easily. The result of the

extra pay, freedom from the nagging of the foreman, and easier
working conditions, immediately stopp>ed the difficulty in keei>One or two of these workers,
ing workers in this department.
to
the
of
the
report
according
factory nurse, have gained weight
tried the extra

was made.
had been in effect

since this change

After this
of

one

girl

for a while, the constant request

that she be allowed to undertake one-third more work,

or double the original amount, was granted with the approval

This was a task
of the factory nurse, who watched her closely.

not set by time study, but one which the girl herself thought she
could undertake.
She found, however, that it was too much

and gave it up voluntarily, but she is still doing 50 per cent more
work than she was originally. She is a girl well fitted for the kind
of work and for her a larger task could be given, but tasks are
set with the idea of the average worker who is first selected for
It must be considered that the
the particular kind of work.
effect of task and bonus work under the proper conditions tends
to greater industry, better discipline, a happier disposition and
Greater
greater interest in work on the part of the workers.
regularity, greater accuracy and neatness must and do have an
influence on health and character.
Management. It is probable that the point of view of heads
of departments and those responsible for the management beWhen
comes quite as much changed as that of the workers.
mistakes are made the responsibility is fixed and the management
cannot dodge the fact. A manager also realizes as never before
As Mr. Taylor once
the value that must be placed on analysis.
said: "Thought under Scientific Management is 75 per cent
analysis

and 25 per cent common sense."

SCIENTIFIC

I30

When

MANAGEMENT

a seemingly difficult operation has been analyzed to its

not so difficult to reconstruct it on the proper

last detail, it is

an added interest to the management in

the feeling that it is working on a plan, the underlying principles
of which are already determined, and the details of which are to
be developed in accordance with those principles more and more
There

lines.

finely as years

It has

been

too,

is,

go by.

my pleasure

to

have employed a number

of

young

men.

Before they start to work, while they are in the

only impressionable period that exists after they leave college
that is, when they first come imder the eye of the manager
college

them that had I known or realized the comprehensive

plan of work under which I am working now, an equivalent
of three years of the hardest work I have ever done could
have been saved. The hard work would not have been saved,
I

tell

but I should have been saved three years because I should

have been working on a plan rather than groping around
in the dark

and formulating plans many

of

which have had

to be abandoned.

"

is

That sounds all right, but

Probably many of you will say,
not fitted for my business."
I was very much interested to

talk with a

man who

is

who

me

told

the editor of one of the most progressive

today that he had been using some of

magazines,
the apparatus which he had seen in use under Scientific Management. His work is editing. Editors have always said that their

work

is

because their work

not subject to Scientific

does not deal with systems,

was much pleased

to

Management
work deals with

have him

their

tell

me

brains.

that he has constructed

I
a.

bulletin board in his office with

which he is planning his editorial

done four months' work in one month
a two weeks' vacation, or somewhere for a two

work, so that already he has

and

is

up here

for

weeks' vacation, because he has that time which he never had

had before under the old working conditions.
Besides this
saving in his own time he has reduced the amount of money
invested in a mass of paid articles, and now buys such only asare required for a given edition.

SCIENTIFIC
Beneath
to

me

labor because

it

I3I

is a good deal of philosophy.

It seems
the best solution of a fair compensation for
puts a premium on the efficiency of both em-

all this

that this

MANAGEMENT

there

is

ployees and employer, and the success of Scientific Management

depends upon this close cooperation of employer and employee.
Along some such line it seems to me will sooner or later be worked
out the great problems of labor and capital.

THE SCIENCE OF MANAGEMENT

By Lieutenant

G.

MEYERS,

J.

U.

S.

N.

Reprinted by permission of the American Society of Naval Engineers

When we

consider

any

activity in life

which has something

definite for an object we call the direction of the process through

which we accomphsh that object, management.
Management
is the application of skill or care in the conduct of an enterprise

Most people have considered that there are varipoor, indifferent, fair, good or excelmanagement

or operation.

ous kinds of
lent.

of

But it has never been considered that

management depend upon

these various qualities

the violation or non-violation of

certain laws that belong to management and make it a science.

The quality of management is usually measured by the results

and money.
Since it is
obtain
the
most
and
to
successful
manage any activity
successful
must
this
management.
govern
result, some laws
The laws of any science are based upon experiments to determine
This is so in the science
relations between certain phenomena.
accomplished and by

its

cost in time

possible to

of

as well as in the sciences of chemistry, physics,

Theories are not being considered, but laws based

management

engineering.

on experiment, practice and common sense, and accepted as laws

because of their success when applied to the subject they cover.
To show that management has its laws and that the observance
of

them

to a

will bring

minimum

about the most successful results and reduce

losses of

time and

paper.
Success cannot be obtained in

other sciences

if

money

is

the object of this

management any more than in

it are violated.
The

the laws that govern

quality of the management depends, then,

its laws are observed.

on the extent to which

The laws
summing

as here recorded are not the result of an arbitrary

up of how an activity should be managed, but are

deduced from a careful analysis of the management of several

successful manufacturing companies.
After applying them
carefully to these companies they have been applied to activities
Z3a

SCIENTIFIC

MANAGEMENT

33

ranging from the cooking of a meal to the conduct of a war.

And it is necessary to emphasize the fact that these laws when
applied give most successful results; and, vice versa, where
successful results are obtained it will be found that these laws are
applied.

Some

objection has been

made

lowing form, omitting methods.

experience in

management

it is

to treating the laws in the fol-

To any one who has had any

perfectly obvious that to record

methods or procedure would be more than a life work. Every

industry has its own methods, and in every branch of every
In three successful
industry different methods are required.
machine shops visited by the author each had different methods
of carrying out the laws, though each was engaged in machine
metal work, manufacturing different lines of machines, and
three were equally successful.

all

What has been attempted

is to put the subject of

management
can readily be understood by any one
"
"
or sf)ending
exp>ert
engaged in managing without hiring an
most of his time in reading what has been written on " Scientific

in a form such that

it

Management," and to show that there is a wide difference between the laws and principles of management and the method of
The methods are very often stated as
carrying out these laws.
It is hoped that
fundamental principles when they are not.
any one who

is

managing may, by

carefully observing the laws

in his business, soon evolve or find the

methods that are best

suited to his business.

It

must be remembered that there are cases where not

laws can be applied in

all their details,

but that in these

all

the

cases,
possible to apply them in detail, a nearer approach could
be made to perfection of results than if the laws were neglected.

were

it

SCIENTIFIC

134

MANAGEMENT

Law
It is necessary in

what

is to be

before the

a complete knowledge of
prepare instructions as to what is to be done

any

done and

to

activity to have

work is started.

must always be known what object

It

plished before starting work.

manufacturing

and

it is

necessary

first

i.

In constructive

2.

In the manufacture of

necessary to state what the finished

to be and to write down the specifications of the

chemicals or compounds
is

desired to be accom-

to design the finished product

to issue drawings of the design.

product

is

For example:

finished product.

3.

it is

In the case of professional work

it is

neces-

sary to designate the object; for example, in medicine, a patient

is to be cured of disease or sickness, and it is necessary to record
either on paper or on the brain what the cure is to be.
4. In any
one-man activity it is necessary to state the object that it is

desired to accompUsh; for example, in inventive or experimental

work the ultimate purpose should be known as nearly as possible
before work starts.
Very often it will be found that the stating
of the object
is to

is

the same as writing the instructions as to

what

be done.

Whenever the first law of management is applied loss of time

and money is eliminated as follows:
What is to be done is planned before the work starts and the
laborer has only to follow directions.
He need not stop to think
what his past experience in similar cases has been, nor need he
consult with a foreman and lose time in that way, but his instructions

what

man

to

to do are definite.
The management is not paying a
do a certain kind of mechanical work and requiring him
to occupy his time in designing something he is not fitted to do.

If the workman is losing his time in

thinking about what should
be thought out for him, and not accomplishing what he is hired
to do, he is increasing the time he gives to
producing his work and

thereby increasing costs and reducing output.

If we do not know what we want to do or if

workman what
there

is

to

do there

is

we do not tell the

a vast amount of misapplied effort,

a groping for something, which means that no effort

is

SCIENTIFIC

MANAGEMENT

I35

applied through a space of time; there is the idle workman we

are paying who is waiting to be told what to do, and wasting
time in studying the poor instructions he often does receive even
after he thinks he has started

on the work.

All of this

means

waste of time and waste of money.

As this law demands that the object of any activity should be
stated and instructions covering what to do should be written,
it is

obvious almost without explanation

how

this

law

is

applied.

As an example: A company manufacturing machines wishes to

make one for a certain purpose. The order goes to the drawing
room to design this machine; in issuing this order the object is
The drawing room then designs the machine and comstated.
mits the design to paper in the form of general plans and detail
plans; thus the instructions what to do are written.

Law

It is necessary in any activity to prepare detailed instructions for

each operation that goes to make up the whole as to how, when, where,
and in what time each should be performed, what tools, and what

materials to provide before work starts, and to transmit these instructions with the necessary tools and materials to the workman before
the

work

to fall

it

starts.

The stockof material on hand should not

below a certain

minimum determined by

be allowed

the rate of output.

This law covers the planning of each operation and routing

It simply means that the determination
through the shop.

of how,

when and where

the work

materials and tools to provide,

is

is to be performed, and what

taken out of the hands of the

workman and foreman and put

into the hands of the planning

department, where all the data as to the date of delivery, past
methods, etc., can be drawn on to make accurate and definite

The work

is planned and instructions are given

from
after a careful study
past experiment and practice as to the
Here the judgment of the
best way in which to do that work.

instructions.

laborer

is

eliminated.

The amount

of time

and money saved in

can be judged by considering that every workman if left to

himself will do the work according to his judgment, and it will be
found that there are as many ways of doing a piece of work as
this

SCIENTIFIC

136
there are

MANAGEMENT

workmen to do it. The chances, then, are that a large

workmen are not doing the work in the best way.

majority of the

The

application of the second law of

management

improve the methods of the workman and to reduce

in the following
1.

The time

will

tend to

loss of

time

ways:
the

work

is

to be started

is

planned before

tlie

work starts, so that in producing a complicated machine the parts

are finished as they are needed to make up the whole.
The
workman who is fitting the parts or whose work depends upon the
finishing of

some part by others need not remain

idle while

he

is

needed part.
Thus erecting
work or work depending on other workmen will not be interrupted
by allowing guess work to determine when the work is to be

waiting for the others to finish a

started,

and, consequently, the calculations as to

when

finished product is to be delivered to the purchaser will not

the

be

guess work. The instructions as to when the work is to be started

are definite and exact, and are made with due regard to the work
as a whole and to keeping all machines equally busy, and they
ehminate losses in time due to delays and confusion.
2. The machine at which the work is to be done is indicated
in the instructions after careful study before the work is started,
having regard for the suitability of the machine and for the even

This results in
work among the machines.
eliminating loss of time due to confusion and idleness at any
one machine, and the instructions covering it are made definite
and exact before the work is started; none of this is left to the
judgment of the foreman or the workman.
3. The time which it should take to do any piece of work is
This time
transmitted to the workman before the work starts.
distribution of

based upon careful time study of previous operations where all

unnecessary motions have been eliminated. It should be a reais

sonable time in which the work can be completed over and over
again for a year, if necessary, without spurting but with the man

working at his normal or rational capacity.

It is fixed also with

work desired.
and
materials for each job provided at
tools
the
4. By having
the place the work is to be done before the work starts the loss
regard to the quality of the

MANAGEMENT

SCIENTIFIC

due to idleness of machine and

being brought

of

The

eliminated.

is

workman
tools

I37

while the tools are

and materials are

defi-

nitely stated in the instructions for each job, and the tools and
materials for one or two subsequent jobs should be ready for the

workman

to proceed

promptly on those

5. All instructions are

made

jobs.

and

concise, exact

and are at the place at which the work

stood,

that before a

workman

is

easily under-

to be done, so

through with one job he has on hand,

in addition to his tools and materials for the next job, the written
instructions as to

time he

is

do

to

is

what he

is

to do, how, when,

where and

in

what

it.

The

elimination of losses of time explained in the last five

paragraphs may be said to be the result of planning and issuing
of instructions for

any job before that job

covered by Law II.

On the other hand,

if

is

started

and are

Law II is not observed losses are increased

as follows:

workman does not know how he

going to do a
certain thing he is going to waste considerable time finding out,
and is going to take up a great deal of his own time and of the
1.

If

the

time of some one else

if

finally,

who

should be otherwise engaged, and,

it without definite instructions, we

he thinks he can do

are relying on his judgment as to

may

is

how

it

should be done, which

be wrong.

workman has no

when to start a
most important piece go and
take up any other at hand, or he may rely upon the judgment of
the foreman as to when it should be started.
In either case if we
a
for
one
are,
example, constructing machine,
part of the machine
2.

If the

piece of

work he

is

instructions as to

likely to let the

neglected until all others are ready for assembling. Then

the unfinished part must be rushed through to the neglect of
other work, and in the meantime our erectors are waiting, and

may be

the customer

him.

will result
3.
is

is

not getting his machine

when

it

was promised

A little thought will show what confusion and loss of time

from

If the

this practice.

workman has no

to be done,

work

is likely

to

instructions as to where the

work

crowd one machine and be slack at

SCIENTIFIC

138

MANAGEMENT

another, much to the neglect of the work at the crowded machine

and to the increase of confusion in the shop. Machines are idle
and men are idle, and, as in the last paragraph, the finished prod-

uct

is

delayed in leaving the shop.

the workman does not know what time he

If

4.

on a given piece

of

work he

will

to

is

consume

probably increase the number of

unnecessary motions for that work and thus increase the amount
of time it takes to do it.
This results in loss of time and money.
And there may be further loss due to the workman loafing at his

This is perhaps one of the greatest losses in modern

manufacture, though other factors, as is readily seen, help to
work.

increase the total loss.

5.

If the

workman does not have

and materials ready

his tools

on his next job before he is ready to proceed with it, there

be delay incident to obtaining the tools and materials. This

to start
will

also increases labor losses.

6.

If the

workman has not

his instructions as to

how, when, where and in what time

to

do

it,

what

before he

is

to do,

ready

to start his next job, there is another delay incident to his getting
these instructions either from the foreman or from the office.

This again increases labor

losses.

The application of Law II may be said to cover all the planning

The planning is based
before the work in the shop is started.
upon the written

instructions as to

made out under Law

I.

The

what

is

to be

functions of

done which are

II will be as

Law

follows:
1.

Write instructions as to where the work

is

to be done.

This should be done by analyzing the instructions as to what is

to be done and dividing each complete job into groups and determining in what machine the operations in each group should
take place and the order in which they should take place in relaThis is done by the route clerk.
tion to one another.
2. Write instructions as to what materials and tools should be
is

done by the

Write instructions as to how each operation

This is based on previous data properly

classified for

issued for each operation covered in (i).

This

material and tool clerk.

3.

formed.

is

to be per-

SCIENTIFIC

MANAGEMENT

39

These instructions are written by the instruction

ready use.
card clerk.

4. Write instructions as to the time in which work should be

done with regard to standard quality. This information is based
on previous data and time studies properly classified for ready
use.
These instructions are written by the instruction card

Data

clerk.

under

Law

The

is

obtained by the time study clerk,

if

there

is

one,

VII.

and placed in a route

the duty of the route file clerk, who places the
instructions in the route file, arranging all operations for one com5.

instructions are next collected

This

file.

is

an indexed file book and giving the instructions for

each operation one page in this book.
These instructions are
now arranged ready for the work to progress through the shop.
6. Give instructions as to when work is to be done.
This is
done by the production clerk, who is over the other clerks in the
plete job in

planning department.
7. Instructions in one, two, three, four, five and six are finally
transmitted to the shop by the order of work clerk (of which
there may be several in a large shop) from the route files covering

each complete job divided into various operations.

The order
of work clerk must necessarily be familiar with the machines and

men

in the shop

product

The

8.
it is

and with information as to when the finished

to be delivered.

is

order of work clerk

may have an assistant, whose duty

and receive operation cards to and from the workmen,
record in the route file on the route sheet for each opera-

to issue

and

to

tion

when the instructions for each operation are completed.

The tools are provided by a boy in the shop after the tool

9.

list is

10.

sent to the machine.

The

materials are gotten ready for issue

by

the store-

keeper before the instructions for work are sent into the shop.
As soon as the materials are ready and the instructions sent into
the shop an instruction card is sent to a move man in the shop to
the material to the place at which the work is to be done.

move

This applies also to work done at a machine by one man, which

must go to another machine and man for another operation.

II.

MANAGEMENT

SCIENTIFIC

I40

The

materials are checked as soon as the issue order

is

given to the storeroom keeper, by the balance of stores clerk,

who never allows material on hand to get below a certain minimum fixed by the demand for each material.
In this way, then, the workman has instructions, tools and
materials, at the place at which the work is to be done before the
starts and there remains only the operation order for the

work
work

to start, which is issued by the order of work clerk.

When
one operation is finished the next operation order is issued by the
workman, and the work continues.
In considering the application of this law most manufacturers

think that
is

it

requires too

not meant that one

much

man

clerical

work

for the object.

necessary for

is

It

each function

always
but that each of these functions must be performed. For instance: the route clerk can write instructions for
routing out material and can also issue orders and tool lists; the

imder

this law,

instruction card clerk can write instructions as to

how

to

do work

and act as time study clerk.

The division of labor depends
entirely on the nature of the activity and the size of the shop,
having due regard to giving no man more work than he can
expeditiously and efficiently handle.

Law
It is necessary to provide for

III

any given purpose

before the

(a) The best tools and machines for that purpose;

arrangement of machines in their relative positions;
chines and tools in the best possible condition.
starts:

best

work

(b) the
(c)

ma-

Through experiment and practice in almost all industries

machines and tools have been found that do better and quicker
work than other machines and tools, and, in order to obtain
maximum speed and highest quality of output, it is necessary
that the best machines and tools should be provided and kept
It is evident that
in the best possible condition at all times.
this requires that the machines and tools provided be of one
the highest.
standard

SCIENTIFIC

MANAGEMENT

I4I

desirable to arrange machines with regard to the work

they perform, in order to reduce time and labor cost of moving
It

is

work from one machine

By

applying

this

to another.

law losses are reduced as follows:

The

best machines and tools are provided for doing any job.
This means, for example, that a machine that will do two opera1

is better than the machine that does them in succesand

that
automatic machines are better in a great many
sion,
classes of repeat work than hand-tended machines. And it means

tions at once

that there are tools that are best fitted for any particular class of

work, and even of these there are some that have been found by
The best tools,
experiment and practice to be the best tools.
It is evident, then,
then, should be the only ones kept in stock.
by having the best tools and machines, loss of time is eliminated

by reducing the time of each operation or series of operations,

and by improving the quality of the finished product and thus
decreasing waste due to defects in the finished product.
2. Arranging machines in relation to one another so that time

not lost and labor

is

is

not increased by transferring work from

loss of time and money.

one machine to another further eliminates

keeping the tools and machines in the best possible

condition loss of time is eliminated; since the machine is able at
3.

By

its maximum power at its maximum speed,

no necessity of changing the tool because it is not sharp
or is soft, or is not the standard of the best, and the possibility of
a machine breaking down in the middle of work and delaying
that work and keeping the workman idle is minimized.
all

times to deliver

there is

The

application of

Law

III

is

as follows:

This law should be carried out partly before any work is done;
that is, the best tools and best machines should be provided before
the work
tion

is

undertaken, by studying machines already in opera-

and seeking machines with the

latest

improvements.

They

should be arranged in the shop in relation to one another to make

the progress of work from one machine to another as nearly

continuous as possible.

While work

is in progress the tools should be kept

shaped and
the
machines
should
be
clean
and
in
ground,
kept
good working

SCIENTIFIC

142
and

condition,

MANAGEMENT

belts should be kept at a tension such that the

maximum power at maximum speed.

record of overhaul and repairs to belts and machines, and a
routine for overhauhng and testing will be found to greatly reduce

machines

will deliver

breakdowns and consequent delays.

For testing, inspecting and overhauling belting there should
be enough men to completely carry out the routine, but they
should be kept busy during working hours on idle machines.
When necessary, they should work during the noon hour and
for an hour after work stops in the afternoon, they being paid
extra for this time.

The

general repairs, including care of belting, are carried out

by a regular gang under the charge of a repair boss. Those
repairs that are urgent are, of course, effected first, and a complete

record of

all

repairs

is

kept in a place available to the production

clerk.

Law IV
any productive work to (a) select the best laborer
work demanded, (b) to keep the laborer so selected at his work
and at no other.
Men should be selected for particular work who have abilities
It is necessary in

for the

for that

work; as a

rule,

they can perform that work better than

Where a man

down in the quantity

he
should
be
either discharged or
output
transferred to work that he is better qualified to perform.
other.

any
and quality

persistently falls

of his

After a man is selected for and proved at any particular work

For
he should not be required to do any other class of work.
at
be
should
machinist's
work
and
machinist
a
kept
instance,

not be required to do blacksmith's, messenger boy's or tool

grinder's work.
Losses are eliminated

by applying Law IV

as follows:

The

man

best qualified should be selected for the work, having due

It is evident that it would be
regard to the cost of his labor.

poor policy, and would result in poor workmanship and loss of

time, to employ a blacksmith for a machinist's job, or to employ

a machinist at machinist's wages to do the work of a messenger

It is important to keep a workman at the work he is
boy.

SCIENTIFIC
required to do.

MANAGEMENT

It is evident that

money and time

1 43

are saved

by

employing a low-priced boy to carry the tools and materials to a

high-priced machinist, and by keeping that high-priced machinist
employed at machinist's work every minute that his labor is
being paid

for.

Law IV may be
The

applied as follows:

selection of the best

man

for

work must be based on a

consideration of the man's trade, the kind and class of skill

required for the work, and, above all, the physical fitness of the

man

for the

work.

Law V
// is necessary in

any activity to assure that instructions are carried

out as work progresses as to (a) what is to be done, (b) how, (c) when,
{d) where, (e) in what time work is done, (/) whether tools are provided, (g) whether materials are provided, (h) whether tools

machines are kept in

It is as necessary for the

instructions

management

issues are carried out as it

it

and

best possible condition.

to

is

know whether

the

to issue instructions.

may be carried out by a man detailed

for the purpose, or two or more functions may be performed by
The methods may be selected, depending on the
one man.
Each function

of this

law

industry, and on the decision of the improvement expert, after a

careful study of the men, the functions and the methods.

By

applying

Law V

losses are

reduced as follows:

If the workman is slow in

Having
setting up his work the gang boss should instruct him to improve

bosses in the shop.

1.

if a workman does not follow the instructions for speed

the speed boss should show him how the instructions should be
carried out and the work done faster.

his time;

As a

further incentive to having instructions carried out,

particularly as to the mannner and time in which work is to be
2.

done, a bonus is offered to the workman to do the work in the

This
time allotted and to produce a standard quality of work.
incentive tends to reduce the time in which to do any job, and
results directly in a high

wages

for the laborer.

bonus to the owners as well as better

SCIENTIFIC

144

MANAGEMENT

In order to prevent waste due to poor workmanship an

inspector examines the finished product and requires it to be of
3.

standard quality.

bonus

for fast

If it is not, the

work;

workman

this reduces loss

loses part of his

due to poor workman-

ship.

Finally, a routine for overhauling machines and for reshaping and grinding tools will insure that the machine and tools are
kept in the best possible condition; records are kept as to whether
4.

or not this routine

is being carried out, and in all cases where

breakdowns occur immediate repairs are made and reported.
Usually the repair and upkeep of tools and machines would be
performed by men who do nothing else. This eliminates loss due
to breakdowns and failure of machines to deliver their maximum

power at maximum speed.

In its application this law bring us back to the work in progress
in the shop and is a connecting link between the shop and the
It requires rehable men in the shop to see
production clerk.
that work progresses according to the instructions and to report

on

work, and will include the following functions:

Proper tools and materials supplied.

this
1.

Work

is set up properly.
Instructions
as to speeds, depths of cut, speed of cut, etc.,
3.
are observed.
2.

4.
5.

6.

The work is done in specified time.

That machines and tools are kept in best condition.
That finished product is of a standard quality.

These functions are performed by

1. Gang bosses, who inspect and report on the functions
(i), (2) and (5).
2.

and

Speed bosses, who inspect and report on the functions

(3)

(4).

Inspectors, who inspect and report on (6).

rule applies here as under Law II, that the fimctions
that are performed must be regarded, and that it is not necessary
3.

The same

to have a

man

That

depend on
the class of work being done and the size of the plant.
For
example the gang boss and speed boss are one and the same in
:

for each different function.

will

SCIENTIFIC

MANAGEMENT

45

some machine shops where work is just sufficient to keep one man
busy, but not so busy that part of his duties are neglected.
Under this law comes also the question of a bonus which, as
previously stated, is given to workmen to insure that instructions
are carried out and the quality of the finished product is up to the
standard, or, in other words, that the workman is delivering the

amount and quality

Bonuses
tion

will

of labor that the

management is paying for.

as any one desiring informa-

not be here discussed,

on the subject can

easily consult

Emerson, Gantt, Taylor or

Day.

Law VI
// is necessary in

any

activity to

keep

definite, reliable records

of costs, and to be able frequently to summarize costs.

This law hardly needs an explanation, as it is self evident.

In order to simplify the cost-keeping, reports should be constantly going to the cost department as material for each operation is issued and as each operation is finished, so that on any

day the

cost data

on work going through the shop are complete.

The only way in which the management can form an idea of the
business is by summarizing cost frequently.
If we neglect to keep a definite and reliable record of costs
we will have no knowledge of how we can sell, or if we are turning
out work at the

maximum

efficiency.

As

the application of this law covers cost, which is a separate

subject in itself, it will not be gone into further than to state that

the cost clerk should constantly receive information as to the

apportionment of material to a given job, and the labor reduced

on each operation of a given job, when the

His data should be so complete that at
operation is completed.
the end of each month he can apportion costs to each job and
determine the cost of manufacture of all finished products.
His notice that a job is to be done may be the receiving of the
manufacturing order, and that the job has been started in the
to cost performed

"
"
tickler
(carbon copy of manufacturing
shop, the receipt of the
clerk.
From this time until the order
from
the
order)
production

shipped he receives records of all costs covering that order, as

material is issued for each operation and as work is finished on
is

MANAGEMENT

SCIENTIFIC

146

each operation. The method of giving him this notice need not
necessarily be the one here suggested.

further application of complete costs records is in the estimating of new work, or work that is not standard. The operation of this law should make it possible to reduce the difference
between estimated and actual costs of work to 2 per cent.

Law
It is necessary in
to

any form of

study for improvements of (a)

VII
activity for those directing the

costs, (b)

methods,

(c)

work

machines and

product, (e) labor.

In order to improve conditions as given under this law it is
best to have an expert with assistants to study each detail.

tools, (d)

While improvements will often come from men who are carrying
on the planning of the work and the work itself, it is better to
have some one who devotes his entire time to the subject of
improvements and who will examine into and act on any recommendations that come from the

men

either in the

management

or in the shop.

In studying labor the aim is to so treat the workman that he

is satisfied and knows he is getting a square deal at all times.
This is one of the most important functions of Law VII, and

men

quitting work or
striking or loafing because they are disgruntled with the manage-

will result in decreasing the losses

due to

ment.

Not

to study

improvements in

costs,

methods, machines, tools

any business as to place

due
to
loss of time in manuof its competitors,
facture, loss of business through inability to reduce costs to meet
competition, and loss due to decreased sales resulting from the

and product
it at the mercy

will result in so antiquating

poor quahty of the finished product.

To ignore the study of labor and to disregard all its demands,
almost its existence, except in so far as it helps to make money,
The concern that does
is almost the same as business suicide.
this or allows it to

be done will have

strikes, discontented

work-

men and poor workmen, with large losses due to idleness of the
machines.

SCIENTIFIC

MANAGEMENT

47

The application of Law VII should be as follows: The improvement department will be directly under the general manager or
general superintendent.
most important in that
this function it

Although the last law, it is one of the

deals with labor. Before discussing

it

must be stated that methods

department and

in the planning
in the shop should be constantly studied for

One method of doing this in some industries

improvement.
would be to make time studies. The machines and tools should
be studied, and where changes can be made for improvement
they should be made, having regard to interruption of the work.
Finally the finished product should be studied in order to improve

by cutting out or simplifying parts, by improvof the machine in performing its function, and,
the
usefulness
ing
finally, by increasing the field of usefulness for the machine.
for example:

it;

example in some branches of

for
methods
utilizing waste products, as by
industry, studying
that
can
be
so
them
they
cheaply turned into saleable
treating
products, and to find uses for these products.

This law

will cover, for further

Finally, labor should be studied to prevent antagonism of

labor to capital by giving labor fair and square treatment. This

object should be carried out by a department in charge of a man

1.

and diplomacy which should have charge

Employing and discharging labor.

2.

Distributing labor throughout the plant.

3.

Disciplining

of greatest tact

men

for violations of rules

and

of

regulations.

Rules and regulations should include punishments for various

standard offences, such as loafing, drunkenness, insubordination,
etc.

The punishments should be uniformly

large plant this will necessitate

enforced.

In a

maintaining a police depart-

ment.
4.

Keeping records of all labor employed, with the past history

man, if it is possible to obtain it.

of each
5.

Paying labor.

6.

The

7.

8.

tion.

benefit fund.

Washrooms, lunch rooms, etc.

"
"
ideas that are
uplift
Library and any other

in opera-

SCIENTIFIC

1 48

Recommending

9.

of

life

fire

and property.

MANAGEMENT

devices and methods for preventing loss

This would necessitate in a large plant a

department.

Intercourse with the men through their representatives

to discuss questions concerning labor at certain stated times.
11. Adjusting differences between workmen, or between
10.

workmen and

bosses.

12. Distributing men to reduce friction between them and to

reduce as much as possible partiality on the part of the bosses.

Medical attendance on men who receive injuries in the

In a large plant this would necessitate a hospital.
shops.
13.

Improving conditions in the shops so as to reduce strain

on the workmen, such as ventilation, heating and lighting.
The Illinois Steel Company at South Chicago has a labor
department that is a model of its kind, and should be copied by
14.

every large industrial concern in the country.

Its adoption will

result in the elimination of friction between capital

and labor. The author has talked with managers of concerns
where labor troubles are practically unknown, and in every case
On the other
this last law was found to be carefully observed.
hand, where there is a total disregard of conditions from the
in other words, where labor is not studied
standpoint of labor

undoubtedly

strikes are frequent and, strange to say, are looked upon as

In these shops, also, it will generally be found
necessary evils.

that the average quality of labor is very low, good men leave such
places to go where they are better treated and where they are not

These are
of work through strikes and walkouts.
of
desire
on
the
the
blind
a
caused
part
management
by
usually
to make money at any cost, in many cases on a highly watered
capital, the dollar sign being the only thing on the horizon of the

thrown out

board of directors and the management.

There is one point in management that is very often lost sight
of; that it, that two objects should not be stated as one in apply-

For example: If we stated the

ing the laws of management.
and sale of certain machines,
manufacture
the
as
being
object

The manufacture of maconfusion would immediately result.

and
chines is a distinct
separate operation from the selling of

SCIENTIFIC

MANAGEMENT

49

machines, and each should be treated separately in applying the

Due regard should be given to the fact
laws of management.
that the connecting link between the two is the exchange of
information between them as to costs, rate of output, capacity
of the manufacturing department, the number of sales, dates of

and size and character of the finished product,

and new contracts as they are made.
To illustrate this more concretely, the company supplying
electric current and gas to a large city performs several functions.
delivery, capacity

Taking only the

electric part of

it,

there are the manufacture of

it, the buying and installing of motors,

These functions are so confused that it is often

current, the selling of

wires, lights, etc.

manufacturing department to know exactly on

installing department will finish its work, consethe
selling department has difficulty in promising the
quently
The proper way under the laws of
delivery of the current.
difficult for the

what days the

management

to conduct this business is to separate each function

from the other and to apply

providing means

all

the laws of

management

to each,

exchanging necessary information between

Thus the functions would be separated into

for

the departments.

(2) selling, (3) installing; each being conducted

from
the
other except in the exchange of necessaryseparately
(i)

manufacture,

information.

The criticism has been made that Law VII conflicts with
Laws III and IV in that the last two laws require that the best
tools,

machines and

men have been

selected for the purpose

eliminates the necessity for studying for improvements.

is no question that the best tools, machines and men

and

There
may be

selected this year, yet five years from now such improvements
may have been made as would put a company out of business if

had not constantly studied for improvements and applied

them as they are discovered. If the men are not improved by
constant study and instruction, then human nature is not what
The mere fact, though, that the most
it is accepted as being.
successful manufacturers are studing for improvement in machines and tools, and in labor, is proof of the existence of this

it

MANAGEMENT

SCIENTIFIC

150

seventh law of management, and that

III and IV.

it

does not conflict with

Laws

been said that

It has

and

to begin to

it is

time to stop talking of principles

show the application

of

them and the

final out-

The author

claims that principles and laws have not

been discussed before, but that methods, under guise of prin-

come.

fundamental principles, laws, and other names not belongThis paper for the first time
ing to them have been discussed.
records the laws of the science of management and gives a starting point to those who wish to discuss methods. As to the results
ciples,

obtained by this appUcation, it can be said that to record them

would be as big an undertaking as to record the methods of carryIf the laws of
ing out the laws.
observed the results will be success

as can be obtained

are

carefully
management
success as nearly perfect

by human methods working with human

beings.

Again the

criticism

is

made

that

Law

II will not apply to the

inventor, or to the man engaged in scientific research; that the

very fact that a purpose is formed to make a discovery, invention, or improvement presupposes that what is to be done and

unknown.
The mere stating of the purpose,
on the brain or on paper, forms instructions as to
what is to be done. Whether the invention is a mechanical one,
or whether the discovery is a chemical one, in either case the
inventor or discoverer must know the laws of mechanics or the
laws of chemistry in order to obtain the most successful results.
final results are

recording

it

That the

final result is

known approximately must be

granted,

working without a purpose.

to
laws
do
accidental
the
That
apply
discovery is not contended,
but it is contended that, whether in invention or in scientific
research, the greatest degree of success will be obtained by the
or the discoverer or inventor

is

who apphes the laws of management.

That Law II is too broadly stated in that it does away with
all initiative on the part of the individual workman is another
The answer to this is left to the large
criticism that is made.
number of successful employers engaged in productive work who
require that the laborer carry out orders, and who do not give

person

SCIENTIFIC

MANAGEMENT

151

him a wide latitude in which to experiment on his employer's

It must be granted that the
material and probably ruin it.
management knows what it wants done and how it wants it done,
apd that the work should be done according to its orders.

A reduction of the seven laws of management to diagrammatic

form

is

shown

in Fig.

i.

This shows the simplest form of their

General Manafeer

Figure I
The work progresses from the
any activity.
the
to
estimating and drawing room (covered
general manager
by Law I), to the planning department (covered by Law II),
Law V is a conto the shop (covered by Laws III and IV).
and
Costs
link
between
shop
planning department.
necting
and improvements keep in touch with all (covered by Laws VI
and VII).
application to

SCIENTIFIC

152
In Fig.

MANAGEMENT

the different elements are given their proper names.

is placed within the shop, as it is in

The planning department

In large plants such as the AUisreality a part of the shop.

for
Chalmers Co.,
example, each shop has its own planning
department, while in a smaller shop such as the Tabor

Manu-

Es+imatinfe,
^

and
Drawing, Room

Improv*-

Costs

Deilf

Deph
Shop
Foremen

Planning Dep+.

Finished Product

Figure

facturing Co., there is one planning department for a shop

employing about ninety men. The nimiber of men requiring a
separate planning department can only be determined by the
size and nature of the industry and the arrangement of the plant.
The Bement-Niles Works of the Niles-Bement Pond Co., for
instance, has one planning department for about fifteen hundred

men, and successful

results are obtained.

THE PRESENT STATE OF THE ART OF

INDUSTRIAL MANAGEMENT
Majority Report of Sub-Committee on Administration
OF the American Society of Mechanical
Engineers, 191 2
Reprinted by permusioa

During

number of striking phenomena,

management, must have become
The more importhe most superficial observer.

the past few years a

in connection with industrial

evident even to
tant are:
(a)

The widespread, popular interest in the subject which had

a statement made before the Interstate Commerce Com-

its rise in

mission, in a hearing on the matter of proposed advances in

An attorney for the shippers stated on
freight rates by carriers.
November 21, 1910, that it was estimated that by the application
"
in the railroad
of newly discovered principles of management

operation of this country an economy of $1,000,000 a day is

possible," and further that these principles can be applied with
"
equal success in every form of business activity." This popular
interest is shown by the great number of articles published in the
daily papers and popular magazines, mediums that give but scant
attention to technical subjects, except of the most striking nature.
(6) The suddenly intensified interest in the subject on the part
of employers

shown by

and business executives

in

many

lectures, addresses, professional

lines of activity,

papers and reports

presented to their associations.

{c) The opposition of labor unions to the

newer methods of
management, shown by statements of labor leaders, in a few
instances by strikes and by an attempt to prohibit by law the use
of some of these methods in Government shops.

Governmental recognition of the matter shown by the

appointment of a special committee of the House of Representa(d)

tives

to investigate systems of
153

management

in

Government

SCIENTIFIC

154

MANAGEMENT

and shops, which reported in March, 191 2; by the

appointment of a civilian board by the Secretary of the Navy to
investigate management in the navy yards, which reported in
July, 191 1 and by Senate bill 5" 61^2, now in committee, which is
intended to prohibit time study and the payment of premiums
or bonus on Government work.
(e) The rapidity with which literature on the subject has
accumulated.
One directory of books on business management
lists 500 titles, and states that 75 per cent of them have been
arsenals

written within five years.

(J) The formation of two societies having as an aim the furtherance of the application of the principles of management.
(g)

The

separation of persons interested in the matter into

two camps, one of enthusiastic advocates, the other of vigorous

opponents of what is called the new element in management.
(h) The unquestionable proof of the advance that can be made
in unskilled work, as shoveling material, and in ancient trades, as

by the application of the principles

the most striking phenomenon of all.

bricklaying,

This

is

of

management.

The Principles of Manufacture

2.

Before defining the element in the art of management that

rise to these phenomena, it is necessary to review briefly

has given

the begiimings of modern industry.

ting from which the present can be

Modern industry is
1738 when John Wyatt brought out a

3.

in

This gives a historical

set-

more truly judged.

stated by some writers to have begun
spinning machine.

Others place the period as between 1750 and 1800, when the

power loom and steam engine came into being. It was marked
by the development of labor-saving machinery. It was brought
about by the change from handicraft to manufacture.
Early British economists held that the application of the
principle of division of labor was the basis of manufacture.
4.

From Adam

Smith's Wealth of Nations, 1776,

we

quote:

This great increase of the quantity of work

consequence of
the division of labor, the same number of people are capable of performing,
is owing to three different circiunstances; first, to the increase of dexterity
which, in

SCIENTIFIC

MANAGEMENT

55

in every particular workman ; secondly, to the saving of the time which is

commonly lost in passing from one species of work to another; and lastly,

to the invention of a great

labor,

and enable one man

number
to

of machines which
do the work of many.

facilitate

and abridge

Charles Babbage, the great British mathematician and

mechanician, believed that from the above-quoted statement the
5.

This omission he supprinciple was omitted.

in
his
as
follows
Economy of Machinery and Manufacture,
plied

most important
1832:

That the master manufacturer, by dividing the work to be executed into

different processes, each requiring different degrees of skill and force, can
purchase exactly that precise quantity of both which is necessary for each

process; whereas, if the whole work were executed by one workman, that
person must possess sufficient skill to p)erform the most difficult, and sufficient strength to execute the most laborious, of the operations into which
the art is divided.
6.

It appears,

one in the

however, that another principle

is

the basic

It is the transference of skill.

rise of industry.

The

transference of skill from the inventor or designer to the powerdriven mechanism brought about the industrial revolution from
handicraft to manufacture.
It will be necessary to refer to this
principle

frequently

throughout this report, in showing the

meaning and position

of management in industry.
better single illustration of the application of this
principle can be found than in the invention of the lathe slide
rest by Henry Maudsley in 1794.
This has been ranked as
7.

No

second only to the steam engine in its influence on machinery

The simple,
building, and thus on industrial development.
easily controlled mechanical

substituted for the skilful

movements

human

of the slide rest

control of

hand

tools.

were

So

complete has been this transference of skiU that today hand toolVery few lathe
ing is a vanished art in American machine shops.

hands can chase a thread with hand tools, yet

threads on an engine lathe, thanks to the slide

all

can cut good

rest.

After the

a trade, or the special, peculiar skill of a

designer or inventor, has been transferred to a machine, an
operator with little or no previously acquired skill can learn to
traditional skill of

handle

it

and turn

off

the product.

SCIENTIFIC

156

An

8.

MANAGEMENT

example of the extent to which

this transference of skill

The
carried today is presented by the shoemaking industry.
United Shoe Machinery Company builds some 400 machines
used in shoe manufacture.. These are so highly organized that
is

the greater part of shoe shop operatives are unskilled except

in a single readily mastered detail of the work.
The skill in shoemaking is now in the mechanical equipment of the shops. This
transference is a development of the past 50 years.
British engineer, inventor of the steam
in 185 1 of the application of this prinworks: "The characteristic feature of our

James Nasmyth, a
hammer, has this to say
9.

own

ciple in his

modem

mechanical improvements

is

the introduction of

self-

What

every mechanical workman has

now to do, and what every boy can do, is not to work himself,
The
but to superintend the beautiful labor of the machine.
acting tool machinery.

class of workmen
now done away with."

whole
is

10.

Methods

skill

and recording operations were early

Smith records the divisions of the work of

of analyzing

Adam

developed.

that depend exclusively on their

Charles Babbage
manufacturing pins, Usting 11 operations.
a
table
Table
from
a French investiNo.
(see
i.
i)
Appendix
gives
gator, showing the

each, and expense

in

760.

He

number

of tools

of operations, time for each, cost of

and material

for

making pins

in

France

gives a similar table for English manufacture in his

day (see Appendix No. i. Table 2, from Economy of Machinery

and Manufacture, 1832).
11. He further comments on the use of the watch to time

We

operations.

quote from his instructions to one making such

observations and using a skeleton form that he recommends:

"
In filling up the answers which require numbers, some care
should be taken: for instance, if the observer stands with his

hand before a person heading a pin, the workman

will almost certainly increase his speed, and the estimate will be
too large.
The number of operations performed in a given
watch in

his

time

may

be frequently ascertained when the workman

is

quite

unconscious that any person is observing him.

Thus the sound
made by the motion of a loom may enable the observer to count

SCIENTIFIC
the

number

building in

MANAGEMENT

of strokes per minute,

which

it is

even though he

is

57

outside the

contained."

the noted French physicist (1736-1806), who

had great experience in making such observations, cautions those
who may repeat his experiments against being deceived by such
circumstances.
We translate a single quotation: " I pray (says
he) those who wish to repeat them (the experiments) if they have

M. Coulomb,

12.

not time to measure the results after several days of work, to

observe the workmen at various times during the day without

knowing that they are being watched. We cannot be too

warned of the danger of self-deception in computing either
the speed or the effective time of work through an observation of
their

well

a few minutes."

Thus we

13.

see the application of the principle of transference

development of the industry, and an

of skill at the basis of the

early appreciation of the value of the detailed study of operations

But the machine
in making that transference more complete.

was the viewpoint. It was looked upon as the producing unit.

Combined and contrasted with this was a lack of knowledge of
Charles Babbage
scientific principles and their sure application.
treats of this forcefully.

We

quote:

There is perhaps no trade or profession existing in which there is so much

quackery, so much ignorance of the scientific principles, and of the history
of their own art, with respect to its resources and extent, as is to be met with
amongst mechanical projectors.
14.

In the same vein he emphasizes the need of accurate drawif having in mind the poor quality of the work from the

ings as

average draftsman of his day:

"

It

can never be too strongly

impressed upon the minds of those who are devising new machines
(says he) that to make the most perfect drawings of every part
tends essentially both to success of the trial, and to economy in
arriving at the result."
15. He further points out that there

is

another important

We

factor in successful industry, in addition to machinery.

"
read that
in order to succeed in a manufacture, it is necessary

not merely to possess good machinery, but that the domestic

economy of the factory should be most carefully regtilated."

SCIENTIFIC

158

MANAGEMENT

These quotations foreshadow modern methods of thinking out the work in advance and transferring this thought to
the workmen.
The subsequent development has had the effect
16.

of advancing still further the division of labor, and beginning

the division of thought.
The drafting room presents the first

example of the trend, in its collection of engineering data, in its

prediction of results and the formation of staff organization.
17. But from the period of the last quotation almost to the
present there has been no change in the basic principles discovered
and applied in industry. There has been nothing but an extension of those already

known.

been in the drawing room.

The place of greatest advance has

The art of machine design has been

The last half of the last century saw a tregreatly developed.

mendous increase in inventions, a tremendous furtherance of the
The
application of transference of skill to machines and tools.
skeleton of an industrial organization of this period, one that was
too large for a single executive to manage, consisted of a designing

department and a production department, each with a head

responsible to the manager.
18. The first of these, the one that

ing

skill

in the machinery

developed and organized.

study were constantly resorted

The

result.

highly paid.

was the means

of

embodywas highly
Experiment, research and detailed

and

tools of production,

aid in reaching the desired

work was highly speciaHzed and the employees
Not infrequently the manager or chief executive
to, to

much of his own time to this part of the business.

The
production department presented a contrasting condi19.
The workmen were given the tools and machines designed
tion.
in the drawing room and using their own unaided skiU were
expected to produce work of the desired quality and quantity.
Except in rare instances no effort was made to transfer the skill
devoted

of the

management

to the production department

and the em-

Very
ployees, or to undertake the division of executive thought.
little consideration was given to the workmen as a producing
unit.

SCIENTIFIC

MANAGEMENT

59

Features of the Change

Within the past 20 or 25 years certain changes have taken
many production managers toward the
face
and
the forces and means that they conthat
they
problems
20.

place in the attitude of

trol.

An

increasing

An

amount

of attention is being given to the

was the development of profit

and
bonus
systems to reward increased effort
sharing, premium
and output. There followed welfare work, industrial betterment
movements, the adoption of safeguards and regulations to miniworker.

early evidence

mize industrial accidents, the substitution of the principle of

accident compensation for employers' liability and an improvement in the physical surroundings and conditions of factories.

have been fostered and to a great extent

by employers. But even today these are by no means

All of these tendencies

initiated

generally adopted.

Another tendency,

less pronoimced in character, has as

the
object
improvement of the i>ersonal relations between

21.
its

employee and employee and between employee and employer.

It is an effort to estabUsh the best of factory working conditions
in those things not physical in nature, to develop and maintain a
shop atmosphere free from all harassing and hindering influences.
It

is

an attempt to make use of the

results of experimental psy-

chology in improving working conditions.

22. But the most important change, and one that comprehends
the others, is in the mental attitude toward the problems of production.
The tendency is toward an attitute of questioning, of
research, of careful investigation of everything affecting the

problems in hand, of seeking for exact knowledge and then shapn

It has develop>ed the use of
ing action on the discovered facts.
time study and motion study as instruments for investigation,
the planning department as an agency to put into practice the
results of research, and methods
which
stimulate
coop)eration.
wage payment
23. All of these changes have affected the production depart-

conclusions
of

drawn from the

ment much more than the designing department.

The

effect is

to extend the principle of transference of skill to production, so

SCIENTIFIC

l6o
that

it

MANAGEMENT

completely embraces every activity in manufacture.

the

skill of

management

is

operations of the factory.

phrases: the drawing room

The

consciously transferred to all of the

This extension is expressed by these
is

and the planning department

the planning department of design,

the drawing room of production.

is

Nature of the Committee's Investigation

24. To obtain information on present conditions your committee wrote to the recognized experts, to executives of plants in
many lines of industry, to students of industrial problems, and

has had

many

interviews with

men

in these various fields.

The

We

response to our requests has been in the main most generous.

are deeply indebted to the information thus received for a large
are glad to
portion of the following sections of this report.

We

take advantage of this opportunity to express our gratitude to

those who have given aid.

Throughout the following pages there

25.

of illustrative quotations.

Many

On some

a plentiful use

of these are taken

respondence resulting from our investigations.

the mass of literature mentioned in Paragraph
26.

is

all

from cor-

Others are from

\e.

points diametrically opposed views have been

we have presented both. In no case

In such cases

expressed.
has credit been given for these views or quotations, as the information was solicited in confidence.

Definition of the

New Element

in the

Art of

Management
Requests for a definition of the new element in the art of
management brought forth a difference of opinion as to its exis27.

tence.
I

am

The opposed view

is

given in the following quotations:

not aware that a new element in the art of management has been

discovered

There have been no new discoveries

in scientific management of indusCommon-sense men have used common-sense methods

"
"
always. The term scientific management is a catch-word which assumes
not
been
have
which is
that industrial institutions
scientifically managed
not the case.
My experience and the experience of my friends has been
trial institutions.

that there has been no

new element

injected into the art of

management.

MANAGEMENT

SCIENTIFIC

l6l

In the writer's opinion there is very little that is new about it (the art of
management). There is hardly any part of it that has not been practised
by managers for the past loo years. The trouble is there are not enough
managers with sufficient initiative to set the system moving properly.
the problem presented is not the adoption of something entirely
new; but rather the extension to every detail of our work of something
which we have already tried.

Turning now to the other side of the question, from a

large number of definitions of this new element we select the
following as very nearly conveying, taken together, the com28.

plete conception as our investigation has disclosed

The

it:

"

new element I believe to be scientific manThis term already hasbeen adopted quite generally and although
frequently misused, carries with it the fundamental idea that the management of labor is a process requiring thorough analytical treatment and
"
"
involving scientific as opposed to rule-of-thumb methods.
best designation of the

agement."

The writer ventures to define the new element briefly, but broadly, as:
The critical observation, accurate description, analysis and classification of
all industrial and business phenomena of a recurring nature, including all
forms of cooperative

human

effort

and the systematic application of the

and efficient production' and

resulting records to secure the most economical

regulation of future phenomena.

Stripped of technicalities the method of the modem efficiency engineer

simply this: First, to analyze and study each piece of work before it is
performed; second, to decide how it can be done with a minimum of wasted
motion and energy; third, to instruct the workman so that he may do the
is

work

in the

manner

selected as

The Taylor System

most

efficient.

not a method of pay, a specific ruling of account

It is simply an honest, intelligent
books, not the use of high-speed steel.
effort to arrive at the absolute control in every department, to let tabulated
is

and unimj)eachable fact take the place of individual opinion; to develop

"
"
team play to its highest possibility.

As we conceive it, scientific management consists in the conscious application of the laws inherent in the practice of successful managers and the
It has been called management engineering,
laws of science in general.
which seems more fully to cover its general scope than a science.

These quotations convey the ideas of a conscious effort to

and study facts and systematically to apply them in
instructing the workmen and in controlling every department of
29.

ascertain

Setting these against the underlying principle of the

industry.
transference of skill we conceive the prominent element in pres-

SCIENTIFIC

l62

MANAGEMENT

ent-day industrial management to be

consciously applies the transference of

The mental

skill

attitude that

to all the activities of

industry.
30.

Here emphasis
and
to machines and

placed upon the word all for, as shown

18, the restricted application of this prin-

is

in Paragraphs 17

tools has been highly developed for a long

conscious
application in a broad way to the properiod.
duction departments, and particularly to the workmen, we
ciple

But

its

believe has been

made during

the last quarter century.

Rise of this Mental Attitude

31.

The

change of attitude in regard to industrial

on the subject in the Transshown

rise of this

management

in the papers

is

These are 16

actions of this Society.

in

Appendix No.

2 of this report.

in

The

number and

are listed

period covered

is

from

The practice upon which several were based

1886 to 1908.
of years before the paper was presented.
number
over
a
extended
Papers on accounting have been excluded.
32. The first. No. 207^ classifies management of works as a
art having a vast amount of accumulated experience,
"
a practical knowledge
that the executives must have
out
points
of how to observe, record, analyze and compare essential facts in

modern

relation to

of production

all

that enters into or affects the

and the cost

the interchange of

of the product,"

management

economy

and makes a plea for

data.

33. Eight following papers, Nos. 256, 341, 449, 596, 647, 928,
965 and 1012, deal with methods of wage payment, showing the

increasing attention given to the workmen during this period.

"
"
Of these methods the premium plan described in paper No.
It probably
449 has an extensive use today in machine shops.
ranks third, in extent of use, being exceeded by day work and
Paper No. 647 outlines elemenpiece work in the order named.
minute
the
that
rate
is,
study of each detail of each
fixing;
tary

operation.
"

From

this,

"

motion study and time study have grown.

paper No. 928 also has an extensive use,

The bonus system

probably ranking fourth.
of

SCIENTIFIC
"

Paper No. 1003,

34.

MANAGEMENT

Shop Management,"

plete presentation of the subject.

1 63
is

the

first

com-

This paper with the subsequent

writings of its author, stands today as the only comprehensive

outline of industrial management.
Papers Nos. looi, 1C02, loio,

loii and 1 1 15, are amplifications of

and are based on the same practice.

certain features of

No. 1003

Paper No. 1221 deals with the training of workmen, and

outlines practical, tested methods of bringing about the all-im35.

portant transference of

skill.

Labor-Saving Management
Since these papers were presented, and during the develop>"

36.

ment

of popular interest in the subject, the

term

scientific

"

management has been generally and loosely applied to the new

This is commonly taken to mean that
system and methods.
there

is

a science rather than an art of management.

truer

interpretation is that it means management using scientific

methods, these being taken largely from the sciences of physics

and psychology.

"

The

expression
labor-saving
veys the meaning of the movement.
37.

tage of being easily

management

"

better con-

It has the further

and surely understood because

advan-

of its strict

"

It is no
labor-saving machinery."
analogy with the term
these
two
terms
chance that puts
labor-saving machinery and

labor-saving management, in conjunction, for the first is the past

development and the second the present trend of industry, and
they will be closely and inevitably associated in the successful

manufacturing of the future.

Throughout the following pages
"
"
industrial management
of this report the terms
and " labor"

are used, the first to denote the subject

newer attitude.
the
the
second
broadly,

saving

management

The Regulative Principles of Industrial Management

38. The lack of accurate thinking and clear expression in
regard to management are nowhere better shown than in many
of the statements of the so-called principles.
These can be
divided into two classes, personal characteristics of managers

MANAGEMENT

SCIENTIFIC

1 64

and mechanical means of applying.

can show us the way in which the
be regulated.
39.

It

is

evident that neither

activities of industry are to

In our investigation preparing for this report, one corre-

spondent writes as follows

The regulative principles of management along
:

scientific lines include

four important elements:

(o) Planning of the processes and operations in detail

ment organized
(6)

by a

special depart-

for this purpose.

Functional organization by which each man superintending the workis responsible for a single line of effort.
This is distinctly
opposed to the older type of miUtary organization, where every man
in the management is given a combination of executive, legislative

man

and
(c)

id)

40.

judicial functions.

Training the worker so as to require him to do each job in what has

been found to be the best method of operation.
Equable payment of the workers based on quantity and quality of
This involves scientific analysis of each
output of each individual.
operation to determine the proper time that should be required for
its accomplishment and also high payment for the worker who obtains
the object sought.

Another correspondent

management
industrial
(o)

finds the solution of

and regulating

in the observing

problems of

of three classes of

phenomena:

The economic results of different arrangements and forms of materials

and operations upon them,

equipment or product.
recorded experience from invention and
design of product and tools down through the successive shop processes to ultimate finished product and its tests in service.
It is the
object of the scientific method to make the best of this experience, in

This covers the whole

either to produce

field of

readily available for aU concerned, and to see

actually absorbed and put in practice.
economic results of varying executive methods for effectively

its essential details,

that
{b)

The

it is

directing

human

efforts as

This covers the entire

a whole in the use of the above experience.

field of

building up, coordinating and control-

ling the supervising organization of a plant with its statistical

and

recording systems.
(c)

The economic

results of steps taken to raise the industrial efficiency

of the individual worker in every grade of service.
This covers the
whole problem of labor reward, intensified ability, conserved energy

and the general

employer and employee.

We have pointed out that the underlying principle, that

cause in the widest sense, the application of which has built

41.
is,

relations of

SCIENTIFIC
up modem
principle

is

MANAGEMENT

65

This basic
industry, is the transference of skill.
on
into
effect
the
side
all indusof
put
management

trial activities,

through three regulative principles which

above quotations, Paragraphs 39 and 40.

sum up

These
have been concisely stated as: ^ (a) the systematic use of exp)erience; (6) the economic control of effort; (c) The promotion of
the ideas in the

personal effectiveness.
42. The first includes the use, in

all essential detail,

tional knowledge, personal experience

and the

of tradi-

results of scien-

tific study on the part of the executive force.

It implies the
accumulation and use of records and the setting up of standards.
43. The second includes the division and subsequent coordina-

tion of both executive

and productive

labor;

the planning of
and the com-

single lines of effort, the setting of definite tasks

parison of results; and the effective training of the workers.

It impUes the previous acquisition of skill by the executives.
44.

The

third includes a definite allotment of responsibility

and the adequate, stimulative encouragement and reward of both

executive and productive labor; the development of contented
workers, and the promotion of their physical and mental health.
It implies the most thorough comprehension of the human being.

The Practice of Management

45.

As labor-saving management

mental attitude, the beginning of

springs from a change in

practice should be with the

final
the
resp>onsibiUty, the proprietors of closelypersons having
owned businesses, the directors of larger establishments, or the
its

having charge of Government works. Before any changes

are made, such men should clearly understand the viewpoint
officials

from which all of the managerial work is to be done, the principles

that are to be applied, the general method of their application and
the results expected.
46.

mental attitude must be fostered among all

and a period of training for
This may include a redistribution of function and

similar

members
them begun.
the

of the executive force

*
American Machinist,
Church and Alford.

vol. 36, p. 857,

"The

Principles of

Management," by

1 66

MANAGEMENT

SCIENTIFIC

responsibility,
scientific

and

methods.

training of the

will include

This

is

management

a detailed study of production by

the period of division of thought,

and setting up standards of

staff

performance. This must be carefully performed before there can

be effective transference of skill to the workers in the production

departments.
47. The usual conception of modern management

workmen most

is

that

it

tending to stimulate them to

This is
turn out increased production to their possible hurt.
outlined
are
the
If
the
executive,
followed,
principles
wrong.

affects the

of

all,

Its individuals
or non-producing labor is the most affected.
are compelled to study, plan and direct.
They must acquire
It is a system of
knowledge and skill in order to transfer it.

management

that forces the executives to manage.

so, the introduction of modern management in

48. This being

a plant must be

made

slowly.

The

causes of most so-called

two: a failure of the executives to acquire

the vital mental attitude and too great haste in application.

failures are principally

The

latter

seems to be the dominant one.

Your committee

feels

compelled to emphasize the danger of attempting to hurry any

Each step of the work

change in methods of management.
should be made permanent before the next is begun.
49. We have examined records of production which clearly
show a lessening of individual output among workers who had
been trained for some time and had achieved good results as
soon as untrained workers were put with them, thus lessening
their share of personal supervision.

Later the original standard

of production was again reached, but the results seemed to be

directly proportional to the amount of skilful supervision, during

a lengthy period

of training.

50. After those who are to operate the new methods have
acquired the necessary knowledge and established sufficient

standards, the work of putting these into effect can be begun.

This means the fixing of the best attainable working conditions

and giving each worker

to each one

who attains

definite tasks with

an adequate reward

to the standard set.

ing the methods must be accomplished with

This part of
tact

install-

and patience.

SCIENTIFIC

MANAGEMENT

6/

remembering that leadership and example are powerful aids in

bringing about enthusiastic cooperation.
51. The training of the workers is essential in this part of
This must be far more than mere demonstrathe application.
mere
the
It must be
tion,
showing that a thing can be done.
and
until
the
help
patient teaching
required degree of dexterity
is acquired, that is, up to the habit stage.
that such work cannot be hurried.

or skill

is

evident

Such, broadly, are the three steps in the practice of

52.

It is

agement.

ments

now

man-

necessary to investigate the internal ele-

in such methods.
If the proper mental
once taken, we believe it will never be given up. This
substantiated by a few cases when early attempts to improve
of

attitude
is

It

permanence

is

management were

failures

and the methods abandoned.

Later,

however, other attempts were made with substantial success.

The mental attitude outlived the failure.
Thus in a given
industrial organization this feature would not be lost except by

loss of the executive staff.

The permanence

53.

of records of performance

ards needs only to be mentioned to be appreciated.

and standOnce set

an industry, disaster is invited if they are disregarded.

54. To these is added a third in the nature of a spur from the
An adequate reward
working forces to the managing force.
is one of the essentials.
Whatever disturbs the mechanism of

up

in

The
production interferes with the earning of the rewards.
workers at once object, pointing out the trouble and insisting
that

it

be

conditions

rectified.

The management

is

spurred to keep

all

to the fixed standard.

Examples of this action

have been brought to the attention of your committee.
55. The practice as outlined, while built upon fixed standards
and procedure, is by no means rigid and inflexible as has been
The design and construction of labor-saving machinalleged.
Laborery is carried on with a multiplicity of different details.

up

saving management should likewise use a variety of details

suited to the requirements of different industries

and

plants.

human endeavor except the

matter of fact we have found

There can be nothing

fixed in such

underlying principle.

As a simple

SCIENTIFIC

l68

MANAGEMENT

and nomenclature in use in different

have undergone marked change and

different methods, details

Many

plants.

efforts

development since first installed. Further, this idea of rigidity

is repudiated by some of the foremost management experts.
56. In Paragraph 39 is emphasized the need of a scientific study
of everything connected with production.
are adapted from the research laboratory.
their use

is

changed.

tory to discover facts.

The

The methods used

But the purpose of

scientific investigator uses his labora-

Their discovery and declaration

is

his

The management investigator uses laboratory

end and aim.
methods to discover facts for immediate use. The end and aim
is

This

utiHty.

and

is

the test of industry.

unwise
an extreme.

It is therefore

in fact detrimental to carry investigations to

must be observed to shape intelligent action. Persons having time study and motion study in charge should
possess that rare, intuitive, human quahty that causes its possessor to know when enough observations have been collected

Enough

facts

to form a sound working conclusion.

57. The position of the expert in the practice of management
The element of
is more clearly seen as experience increases.

This is to be welcomed for it

mystery has already departed.
"
means the downfall of mere systematizers." One of the unfortunate features of this great movement has been the rise of
alleged experts
results

The

if

test

58.

who have been ready

to promise extravagant

they were allowed to systematize an industrial plant.

their work cannot meet is the one of permanence.

which

An

manager who has had signal success in

enterprises sums up the more undesirable char-

industrial

directing large
acteristics of systematizing practice as:
(a)

(b)

The publication and quotation of statistics regarding gains made

through the use of particular systems, without a frank statement of
the degree of ineflBiciency of the plants before reorganization.
The failure to view the plant from the investor's standpoint rather

than as a laboratory oilering opportunities for interesting and expen(c)

(d)

sive experience.
The failure to

admit that every application of past solutions to

unstudied new and different conditions is an experiment.
The waste of time and money on problems that wiU yield to scientific treatment, but which do not recur often enough to justify such
a solution.

SCIENTIFIC

MANAGEMENT

69

The undervaluing of effective leadership in management and consequent lack of permanency in results.
"
"
(/) The overvalue of emasculated system leading to a curious nonfor
the total result.
of
on
the
any person
part
responsibility
of
ig) The frequent assumption that the treatment of the problems
{e)

similar plants should be identical.

The failure to properly appraise in a growing concern the value of
"
its internal asset of
good-will."
The imperfect analysis and appreciation of the human factor in
"
"
industry, with a consequent failure to reckon patiently with habit
and "inertia" and a tendency to hasty "substitution," bringing about

(A)

(j)

the breaking up of valuable organization.

The

59.

real expert concentrates

on the

facts of a given prob-

lem, and from a wide experience in analysis, coordination and

practical responsibility works out a solution by scientific methods,
suited to the material

dency

him

and human

factors involved.

work

The

ten-

but
and direct the persons who are permanently to manage.
a true process of transference of skill.

is for

to

do

less of the detail

of installation,

to train

This

is

Statistical

Data

60. Your committee hoped to present statistics on the extent

This could not be
to which labor-saving management is in use.
whom
we
have addressed
industrial
realized.
managers
Many

have not honored us with their confidence in this direction. In

There are
fact, it seems as if a secretive stage is now with us.
The first is
two reasons for withholding such information.
"
"
and
trade secrets
identical with the one that has developed
secretiveness in regard to machines, tools
desire to keep things of value away
second is a belief that in the minds of
is

cast

upon the

and

processes, the

from competitors.
The
some persons a reflection

ability of the executives of

an

industrial estab-

outside experts are employed.

Frequently a system
of management is referred to as the development of some one in

lishment

if

the organization, although it was installed

expert, employed for the purpose.

Some

by a management

idea of the variety of the industries in which laborsaving management is in use can be gained from Appendix No. 3,
61.

which

lists

a total of 52.

SCIENTIFIC

I70

MANAGEMENT

Broad Results of Labor-Saving Management

62. In cases where the use of labor-saving management can be
considered a success, the broad results have been: a reduced cost
of product; greater promptness in delivery with the ability to set

and meet dates of shipment; a greater output per worker per day
with increased wages; and an improvement in the contentment
This last item is shown by the fewness of strikes
of the workers.
under the new management, and in the refusal of those working
under the changed conditions to join in a strike of their fellows in
the same plant who were not working under the new methods.
This last-mentioned situation has arisen a number of times. In

one case an attempt was made to strike a room where about onehalf of the operators were under the new conditions.
These
refused to go out; the rest went.
63. These results indicate certain advantages to both emBut it is charged that the movement has
ployer and employee.

not yet entirely justified itself from the economic viewpoint, for
it has not reduced the cost of product to the consumer.
The
implication

is

that

its

not be realized until

possibilities will

With
employers, employees and the public are alike benefited.
this view we are in most hearty accord.
Labor-saving machinery
has brought the comforts that we all enjoy today.
management promises to extend those comforts.

Labor-saving

Where prop-

conserving labor and is thus contributing

to the good of society at large, and although the benefit to the

erly administered

consumer

may

it is

not yet be generally felt, it has already developed

and will continue to develop as the natural

to a certain extent

result of increased production.

J.

M. Dodge,

L. P. Alford,
Members
Sub-Committee on
Administration

Chairman,
Secretary,

D. M. Bates,
H. A. Evans,

Wilfred Lewis,

W.
W.

L. Lyall,

B. Tardy,
H. R. Towne.

SCIENTIFIC

MANAGEMENT

171

APPENDIXES
Appendix No.

The

64.

Economy

following tables are taken from a

book published

Machinery and Manufacture, by Charles

of

in 1832,

Babbage.

i gives the cost and operations in detail in manufacturing

The observations were made by
12,000 No. 6 pins in France in 1760.

Table

M. Perron et.
Table

65.

data for manufacturing pins in England

"
"
size is
eleven
of which there are

2 gives similar

The

in the time of the author.

5546 to the pound.

Table

Operations in Pin Manupactum: in France in 1760

I.

Name

of the Process

Time of
Making

Cost of

Workman

Making

12,000

12,000

usually Earns
per Day,

Pins, Hr.

Pence

Pins,

Pence

Wire
1.2

0.5

Coarse Pointing
*
Turning Wheel

1.2

0.625

1.2

0.87s

7.0

Fine Pointing

0.8

0.5

9-37S
4-75

Turning Wheel
r

off

Pointed Ends.

Turning Spiral

I Cutting off Heads

Fuel to Anneal Heads

o-S

0-375

7-5

o-S

0.125

3-0

0.8

0-37S

5-625

0-333

4-25

125

Tartar for Cleaning

Tartar for Whitening

5
5
o-S

o
o

Papering

{Papering
Wear of Tools

24-3

The

10.0

1.2

4.8

'

Pence

45

0.6

Heading
I

Materials,

24-75

Straightening and Cutting.

.Cutting

Expense of
Tools and

4.708

exiiense of turning the wheel appears to have arisen from the person so occupied being unhis time, whilst the pointer went to another manufactory.

employed during half

SCIENTIFIC

172
Table

MANAGEMENT

Operations in Pin Manufacture in England about 1830

II.

Price of

Name

Workmen

of the Process

Time of
Making
>

Lb.

Cost of

Making
I

Lb.

of Pins,

of Pins,

Hr.

Pence

Making

Workman Each
Earns
Per Day

Part

of a Single
Pin in

Millionths
of

a Penny

d.

Drawing Wire
Straightening the Wire

Pointing

Twisting and Cutting the

Heads
Tinning, or Whitening

Papering

Number

0.3636

1.2500

Girl

0.3000

0.1420

0.3000

0.2840

SI

0.3000

I-77SO

319

4i
4i

Woman
Man
Boy

Man
Woman
/Man
I Woman
Woman
I

Heading

>

Man

of Persons

Employed: Men,

4;

0.0400

0.0147

0.0400

0.2103

4.0000

5.0000
0.6666

0.1071

0-3333

o
o

2.1314

31973

7.6892

12.8732

0.1071

Women,

4;

Children,

3.

225
26

38
901
121

60
576

2320

Total, 10.

SCIENTIFIC

MANAGEMENT

Appendix No.
66.

Following

is

a complete

list

73

of papers published in the Trans-

American Society of Mechanical Engineers dealing with

industrial management:

actions of the

No.

207

The Engineer

as an Economist

256

Profit Sharing

341

449
596

Problem in
Gain Sharing

The Premium Plan of Paying for Labor

The Relation of the Drawing Ofl&ce to
Shop

647

928
965

Henry R. Towne.
Wm. Kent
Henry R. Towne.

A
A

in

A.

Rewarding Labor

1001

The Machine Shop Problem

1002

1003
loio

Shop Management

Machine Shop as a Part

1887
1891

Work

1902
.

Day

W. Taylor.

1894
1895
1903

1903
1903
.

1903

of

Management
Management

11

Carl G. Barth
H. L. Gantt
Frank Richards.

1904
1904
.

1904

1906

History of the Introduction of a System of

James M. Dodge

Shop Management
221

1889

H. L. Gantt
Fred.

1012

W. Robinson.
W. Taylor

Charles

Graphical Daily Balance in Manufacture.

Modifying Systems of
Is Anything the Matter with Piece

15

H. L. Gantt
Frank Richards ...

Workmen

the Taylor System of

loii

Fred.

Gift Propositions for Paying

Slide Rules for the

1886

F. A. Halsey

Manufacturing
for

the

Piece Rate System

Bonus System

Training

Workmen

Cociperation

in Habits of Industry

and

H. L. Gantt

1908

SCIENTIFIC

174

MANAGEMENT

Appendix No. Ill

67. Following is a list of the industries in which some form of laborsaving management has been installed:

Book binding

Tin cans
Valves and pipe fittings
Miscellaneous manufacturing

Building construction
Carriage and wagon building
Construction and repair of

(navy yards)
Fire-arms and ordnance
Rifles

Gun

carriages

Machinery building

vessels

Beer

Beet sugar
Boxes (wood and paper)
Buttons
Clothing

Cordage

Agricultural implements

Food products
Furniture

Coal-handling machinery

Flour

Automobiles

Electrical

machinery
Founding, iron and brass
General machine work

Gas engines
Locomotives

Machine

tools

Molding machines

Pumps
Pneumatic tools
Sewing machines
Typewriters

Wood-working machinery
Metal and coal mining
Metal working
Bolts and nuts
Chains

Hardware
Tanks

Glass

Lumber products
Pianos
Paper and paper pulp
Rubber goods

Soaps
Shoes
Slate products

Printing and lithographing

Railroad maintenance of motive power
Steel manufacture

Textile manufacture

Bleaching and dyeing

Cottons
Velvets

Woolens

SCIENTIFIC

MANAGEMENT

IJS

Discussion
Turning to the majority report, we

A. Hamilton Church.
find that the

neering

prime underlying principle of

the transference of skill. This

is

management
is

engi-

an illuminative

statement, and I venture to think, of great practical value.

"
the
It is put very tersely in the sentence in Paragraph 8,
skill

in

is

shoemaking

That

now

in

the mechanical equipment of

a clear-cut picture of a change that is

and
it helps us to realize exactly what is
already complete,
meant by the transference of skill.
It also helps us to unthe shop."

is

derstand why, in the engineering trades, there are such wide

discrepancies in the amount of work turned out by individual
It is because, in these trades, the transference of

operators.

by no means

For one thing, the capacity

and range of the average machine tool is large, and to some extent
skill is

indefinite.

so complete.

considerable

amount

of skill is

still

vested in the

more, a remarkable amount of ignorance as to

what the machine will or will not do is shared by the employer
worker.

Still

and the workman.

The report shows why
stage.

this is

bound

to

In the process of transferring hand

be so at the present
to the mechanical

skill

emphasizes the fact that more

attention has been devoted to designing it than to the problem
of using it afterwards.
It has been overlooked by the masters
fingers of the machine, the report

most machine tools are not specific but general

and
that
therefore a continuous study of the capacity
machines,
and use of the machine is necessary to give effect to the skill
of industry that

stored

up in
The more

it.

I think over this problem, the

that the true line of progress

more

am

convinced

the exhaustive study of machines,

their capacities and limitations.
I have held this opinion for
many years, and the system of industrial accounting I have been
is

advocating for the past decade was, I believe, the first step made
towards bringing forward the machine to its true place as a factor
of production.

But

transference of skill

must confess that until this principle of the

was brought out so clearly by this report, I
I

SCIENTIFIC

176

did not realize exactly

why

MANAGEMENT

the machine tool was frequently so

surprisingly ineffective under indifferent handling.

I will pass over the acceptance by the committee of the three

regulative principles of management, viz: (a) the systematic

use of experience, (6) the economical control of effort, and (c)
the promotion of personal effectiveness, which were worked out

by Mr. Alford and

myself, except to say that the credit for the

formulation of these principles belongs in a larger degree to Mr.
Alford than to me, and I wiU conclude my remarks by calling

attention to a phrase used in Paragraph 51 of the report, viz:

"
the habit stage."
All the mechanism of organization in the world is valueless
beside the steadiness of production that comes from the estabI will go further,
lishment of good habit throughout a plant.

and say that the whole object and end of organization should be
to create the right kind and degree of habit in every one of the
persons engaged in production, from the president down to the
shop sweeper.
It is not enough for the workman to be so instructed that he

Every living link in the chain of production

be
so trained that his acquired habit is harto
requires equally
forms good habit.

monious with

all

the rest.

The

report has mentioned this aspect

insists that the executives and not the

of the question where it

are the persons

most important to be reached. Few

the
that
understand
principal work of an expert organizer
people
blanks and cards, but the fosterof
elaborate
is not the designing
habit in each
ing, with tireless patience, of correctly adjusted

workman

member

of the staff.

As the new ideals of management engineering appear to me,

and this view seems confirmed by the committee's report, they
may be summed up in three sentences:
Take nothing for granted.
See that every effort
Cultivate habit.

These sentences

is

are, of course,

adapted to

its

purpose.

merely practical derivatives from

Each of
the three regulative principles referred to in the report.
in turn implies other things which will readily suggest

them

SCIENTIFIC
themselves.

Thus,

the

MANAGEMENT
of

possibility

cultivating

77

correctly

adjusted habit depends obviously upon proper mental and physi"

"
lead
and not
It implies
cal conditions for the living forces.
"
drive."
It is

an interesting question where the new

we find
To some

spirit that

abroad in industrial management has come

is part of a larger movement, the realization
of a sense of social solidarity, of social responsibility of each for
from.

extent, I think, it

all,

that

is

so

marked a feature

of the times.

men

But

it

also arises, in

us that the great

Scientific
part, from another cause.
difference between a savage race and a highly civilized one is that
the former remains in a condition of natural innocence, and the
latter has arrived at self -consciousness.

tell

This, I think,

is

the real

management engineering. We are

which there was a simple and unconscious

state of affairs in regard to

passing from a stage at

following of tradition, into a stage of self-consciousness in which

are moved to subject our habits and our motives to severe

we

and examine afresh every item of our daily practice.

Most of us are so
It is a very painful stage to have arrived at.
content with our comfortable natural innocence that we do not
like to part with it, but it is a process that, once commenced, must
self-scrutiny,

continue.
into new methods of remunerating labor, the
with
of searching instruments of analysis, such
caution,
adoption,
these
as time study, the use of precise methods of accounting
awakened
selfof
this
are not causes, but consequences,
newly

The examination

consciousness.
is

an aggregate

It is beginning to

be recognized that production

which

of infinitesimal separate acts, in each of

First, experience must be

the
effort
must be intelligently
drawn on; secondly,
resulting
adapted to the end in view; thirdly, this intelligent effort must
become habitual. And to secure the successful performance of

there are three

main components.

these acts, the living forces concerned

must be maintained

in the

both mental and physical.

A fact not to be ignored is that labor,
C. B. Thompson.
organized and unorganized, has taken its stand, at least tempopink of condition,

rarily, in

opposition to the development of scientific management.

/

SCIENTIFIC

178

MANAGEMENT

of the objections raised have been so unreasonable

abandoned almost from the start, there are three criticisms made by working men which persist in spite of explanation:
In the first place, they seem to cherish an innate resentment
"
putting the stop watch on them," as
against time study
"
it.
makes
them nervous," " makes them speed
It
they express
"
up unduly while under inspection," is simply another means of

While

many

as to be

"

"

used unfairly," is un-American." They say

also that the method of minute planning in advance and of specific
slave driving,"

is

is destructive of the initiative which has

been the backbone of American industrial progress.
Further,
they assert that the enhanced product due to these methods is not

instructions as to details,

fairly divided

between the management and the men; that an

increase of 400 per cent in production, as in the classic case of

Schmidt, the pig-iron handler, has been accompanied by an increase of only 60 per cent in wages.
It is neither wise nor expedient to pass by these criticisms
That they are all unmerited may perhaps
without comment.

be shown

been demonstrated that time study,

trained in the subject (and whose train-

for instance, it has

carried on by one who

is

is ethical as well as intellectual), is not unfair, nor is it used as

a new method of driving, nor is it in any sense un-American.
Time study has been carried on for decades in psychological

ing

laboratories for purely scientific purposes and with instruments

even more refined than the despised stop watch, but no one sugWhen it is once clearly
gests that this use is open to criticism.

understood that time study in an industrial establishment, made

under the proper conditions and by the proper persons, is aimed
at similar scientific results, and that these results are then to be
applied to work, subject to the mutual consent of employer and

men, based on a conviction

of their reliability

and

essential justice,

But on the other hand, there is

these objections will disappear.
and has been abused, and the
can
be
doubt
that
time
no
study
"
working man has a right to be shown."
Similarly, in regard to the alleged destruction of initiative.
Here the

The machinist does not consider his

when he is asked to do his work in accord-

facts are clear.

initiative restrained

SCIENTIFIC

MANAGEMENT

79

ance with the drawings supplied him by the drafting department.

Systematic routing and planning of work and the development of
a science by which it shall be done are, as the committee points
out, analogous, for the production department, with the working

We

believe in Uberty, but we recognize, or are

capable of being shown, that true liberty is liberty under law;
that the artist is not in the least trammelled in his genius because

drawing.

all

he has been taught the laws imder which he must use his materials; nor is the citizen any the less free because he, in common

with

all

others,

must conduct himself

in accordance with the

law of the land.

The problem

of just distribution of the increased product

is

not

easy solution and demonstration, and much yet

capable
remains to be done in this field. No one has yet solved the probof

lem of

justice in distribution,

and

does seem somewhat hypermanagement that it has not

it

critical to allege against scientific

done what any other movement or individual thus far has not
Rather it should be given credit for having
been able to do.
pointed out the industrial necessity of justice in distribution, and
of having proposed steps in that direction.

The

solution of this

When an ennot to be looked for from engineers.

problem
he
is
to
make about
the
field
of
into
wanders
economics,
apt
gineer
is

the same diverting spectacle that the economist would

who would

Probundertake to expound the principles of machine design.

will
worked
in
be
out
the
future
as it
the
wages question
ably
has been in the past by neither the engineer nor the economist,
"
but by the daily struggle and adjustment known as the higgling
In this struggle the rights of the working men
of the market."

have to be conserved and enforced by organization. Only

by pooling their strength can they meet the superior strategic
will

position of the employers.

The report of such a committee as this should not have over-

looked the opportunity to begin or extend the campaign of education in these particulars.
Something more than education is

Labor unions are a p)otent and active force

necessary, however.
in present-day industry, and we should get their enthusiastic
cooperation.

They

are the culmination of decades or centuries

l8o

SCIENTIFIC

MANAGEMENT

In spite of their numerous mistakes and injuson

the whole, justified their existence; and
they have,
whether you agree that they have or not, they are a condition
and not a theory that confronts us. It would seem to be the part
of development.
tices

wisdom, therefore, not to take the tack of ignoring or combatting the doubts and questionings and opposition of the labor

of

unions, but rather to persuade them of the advisability of acquainting themselves with the facts, of recognizing the inevitability of the

march

of labor-saving

management, and

their active cooperation in its development.

to secure

A proposal

at this

time to retain their positive help in the extension of scientific

management may seem Utopian, but it is warranted by certain
facts

and precedents in the history

of trade unions.

They have

already established their right to determine the Ughting, heating

and ventilating facilities of establishments in which their members

There are cases on record in which they have required

owners of old plants to scrap their obsolete machinery and install
new and modem devices, in order that the owners themselves
work.

may make
employees.

It is

to

pay adequate wages to their

and
a short one, in the extension
step,
say to the owner that he must modernize his

sufficient

profit

but one

of this principle to
establishment in every detail, not because the working man is
interested in the owner's personal profits, but because only such

an establishment can pay the working

standard of living demands.

The

objections of the working

their personal experience

"

and

men

man

the wages which his

are natiurally grounded in

The criticisms of the

interest.

friends of labor," however, are in

most cases

disinterested;

though it must be said that in too many cases they are based
upon a faint acquaintance with the facts. So far as they are
It is sheer folly
disinterested, they must be recognized and met.
"
"
to adopt the attitude of the
hard-headed business man and
display a lofty contempt for the increasing interest in the welfare of the working men, which has been developing into a power"
Hard-headed " is too often
ful force during the last century.
a mere euphemism for hard-hearted. InteUigent humanitarian-

MANAGEMENT

SCIENTIFIC
ism

l8l

not only legitimate but is one evidence of upward progress,

and is neither to be ignored nor treated with contempt.
is

business men have a right to ask the humanitarians that

be
It is the business of business
they
inteUigent and informed.
men to supply the information needed from the data which are

But

usually at their exclusive disposal.

alleged that scientific management

When,
is

"

for instance, it is

dehumanizing," the

charge should be met with the actual histories of

worked under

this system.

veloped can show, on

Many

plants where

men who have

it

has been de-

an increase
of leisure, of interest in their work, of knowledge and improvement in general character, and an enhancement of aU-round welfare.
Mr. Taylor, and especially Mr. Gantt, have not ignored
the part of their employees,

but, in proportion to the mass of data

in their hands, their contributions have not been full enough.
this side of the subject;

This committee must have had an opportunity to look into this

side of the case; and it is to be regretted that they have not

improved it more fully.

In a remarkable book, Fatigue and Efficiency, by Josephine
Goldmark, published by the Russell Sage Foundation, a chapter
is

devoted to The

New

Science of

Management:

Its Relation to

Human

In this chapter are pointed out the advanEnergies.

tages of the new methods from the point of view of the working
man.
After enumerating the perversions to which scientific
"
If the
management may possibly be put, the author says:
unscrupulous use of

scientific

management were

all

that could be

it, the system could defend itself easily enough.

serious is the contention that the efficiency engineers
themselves have failed to gauge fairly the tax of increased pro-

charged against
.

More

What we need as regards

upon the workers.
men and women (and the only answer which will allay the
suspicions aroused by scientific management) is more knowlductivity

both

edge as to the ultimate physical adjustment of the workers to the

heightened intensity of their tasks." And lest this seem to have
too philanthropic a sound, I hasten to add the word of a prominent manufacturer, William C. Redfield, of Brooklyn.

He

82

SCIENTIFIC

MANAGEMENT

"

Once for all, let it be said that no management is sciensays:

tific or permanently profitable which either promotes or permits
human overstrain, or which taxes the future of women and childThis

ren."*

reflects, I

think accurately, the judgment of

many

The problem of the health of employees is one

thinking people.
which demands and must have adequate consideration. No one
who knows scientific management at first hand can deny that it
has been given such consideration by those who are entitled to
class themselves as scientific managers.

Miss Edith Wyatt's

investigation of the subject with reference to women workers, the

results of which are described in Chapter 7 of the book by Clark
and Wyatt, Making Both Ends Meet, is conclusive on this
score

(and incidentally
Goldmark's discussion).

this

work on the health

somewhat misrepresented
Numerous instances of the

in Miss

is

effect of

employees might have been collected

of

by the committee and should be given.

I know of a case of a girl who asked to be put on a task 50
At
per cent greater than what she had theretofore performed.

The factory
the time she appeared to be in a sickly condition.
nurse was consulted as to the advisability of allowing her to
undertake the task and gave her consent on the condition that
the girl be allowed to go back to her ordinary work if at the
end of a fair period it was evident that the task was too severe
After the expiration of four weeks the nurse reported
for her.
(and

it

was already evident

to the manager) that the girl

was not

only doing the task easily but had greatly improved in health.
This, in the nurse's opinion, was due partly to the improved condition under which the girl worked, to the better method she had
been taught, to the higher wages she received and to her increased
This same girl shortly afterward asked for an
contentment.
increase of 33 1 per cent more in her task, but this was refused.

In this report the committee emphasize the

"

as the basic feature of the

"

transference of

new

labor-saving management.
this term is used with
that
it
appears
Unfortunately, however,
the
of
most
two meanings. Throughout
report it seems to mean
skill

the accumulation of

skill

by the planning department and

its

SCIENTIFIC

MANAGEMENT

83

transference from this department by actual instruction to the

workmen just as machinery is said to be the transference of skill,

according to the report, from the designer and draftsman to the

machine.
The idea intended to be conveyed is undoubtedly
right,

but the illustration chosen

Transference of

skill,

industrial revolution

when

is

unfortunate.

considered with reference to the

and the introduction

of machinery, might
be
to
mean
the
transference
of skill from the
easily
interpreted
workman to the machine. What actually happened was that
the machine brought to the aid of the workmen some of the vast

and in addition it superseded the skill of the

hand worker. That this was a distinct loss to the hand worker
who was unable to adjust himself to the new conditions is incontestable in the face of economic history; and the sad record of
forces of nature;

the change

is

a solenm warning to present day managers to take

make the adjustment to new methods of

and
The machine
management
gradual as possible.
a
kind
of
skill
on
the
of
new
the
developed
part
operator; but
now it is a minute skill easily acquired and subject to sudden loss
every step possible to
as easy

with the change in the design of the machine.

The old-fashioned, all-round workman has disappeared or
rapidly disappearing; and though
ern, keen-eyed, high-strung,

his replacement

quick-moving

by

specialist is

the

is

mod-

not to be

altogether deplored, it has had certain serious consequences.

It has made the present day operator narrower in his knowledge
It has also
of industry and his skill less adaptable and elastic.

rendered obsolete the old methods of apprenticeship, and the

present chaotic condition of this subject presents a striking illustration of the failure of managerial thought to bring about the
necessary readjustments.
It

seems to

subject be

me important that the committee's meaning on this

made unmistakable.

No one can

reasonably and

seri-

ously object to the transference of skill to the workers by the

"
"
and " systematic trainsystematic development of a science
ing."

H. L. Gantt. The difl&culty of making a satisfactory ref)ort

on the present state of the art of industrial management can be
/

SCIENTIFIC

84

MANAGEMENT

thoroughly understood only by those engaged in the installation

new methods. The committee have caught fully the present spirit of the movement now in progress, and Paragraphs 45 to
of the

58 of their report seem to

me

to be

an

excellent

resume

of the

subject.

In Paragraph 21, however, we find the following statement:

Another tendency, less pronounced in character, has as its
object the improvement of the personal relations between
employee and employee, and between employee and employer."
"

This tendency which

believe to be the

is

described as being less pronounced, I

of the whole subject, for

most important part

between employer and

employee, no system of management or training can be permauntil proper relations are established

nently successful.
When the methods described

by the committee were first prethat

sented, many people thought
they were simply new schemes
for exploiting the employee for the benefit of the employer. However false this impression may have been, it was undoubtedly
widespread, and formed a serious obstacle to their introduction.
How deeply rooted this idea was in the public mind can best be

by reading the discussions of my paper on "The

^
Training of Workmen."
Since that time the prominent writers on the subject of management have emphasized the necessity of establishing proper
appreciated

relations between employer and employee, realizing that no

scheme that does not recognize this as an integral part can be
permanent. Unfortunately this has not yet been acknowledged

by everybody to be a fact. Many people value these methods,

only as new ways of controlling workmen for their exclusive
benefit, and become interested in them only in times of trouble.
Financiers seem particularly prone to take this view.
To illustrate this point, about a year ago I was consulted

by

a large corporation, which, however, took no further steps.

Recently the same corporation was much interested in the subject of management, and I found that its employees were on the
verge of a strike.
*

The
Trans.

strike,

Am.

Soc.

however, did not come

M.

., vol. 30, p. 1053.

off,

and the

SCIENTIFIC
interest of the

MANAGEMENT

85

management apparently died out when the dan-

ger disappeared.
While the idea of exploiting workmen for some one's benefit is
obnoxious to most people engaged directly in industrial pursuits,
this is not the case
If I

am

with those farther removed from the workmen.

to judge

from the

before the Interstate

letters I received after the hearing

Commerce Commission

in

Washington in
November, 19 10, many people thought they saw in this movement a chance to get something for nothing. So strongly was
I impressed with the extent of this attitude that I felt
impelled
to condemn it most strongly in
address at Dartmouth a year

my

When I was leaving the hall after that address, a benevoago.

lent looking old gentleman came up and said: " Of course
you
"
will modify that before it is published ?
and I did, but not just
as he meant.
I regret that the committee did not include in their bibliography of this subject, books and papers published elsewhere than

some of the very best work on

has been done in the last three years, during which
time the Society has nothing to show.
I wish to call especial

in the annals of the Society, for

this subject

work of Major Hine on Moderft Organization

Hon. William C. Redfield on The New Industrial

attention to the

and

to that of

Day.

Both

ful study, as

of those books, just published, will well repay carethey are in accord with the democratic as opposed

to the autocratic spirit in industry.

With regard

to the minority report, a careful reading seems

it is practically in accord with the

to indicate that the writer of

majority, except that he wishes to take a shot at the statement

made before the Interstate Commerce Commission that the rail-

roads were losing one million dollars per day.

that when this statement was made it seemed to

must confess

me rather extrav-

agant, but a careful study of conditions for the past two years
has convinced me that the statement was conservative rather

than otherwise

if all

preventable losses are included.

The

writer of the minority report is connected with what I

believe to be one of the most progressive and best managed rail-

roads on this continent.

I did

little

work

for

him a few years

1 86

ago,

SCIENTIFIC
first,

MANAGEMENT

having in conjunction with Messrs. Dodge and Day of

made a report on the conditions in his shops. Our

Philadelphia,

report expressed the opinion that his method of operating these

shops was at least as good as that of the best railroad shops we

knew anything

about, and
shops in this connection.

The

real inefl&ciencies

we

visited several representative

with which I came in contact on this

road, however, were not in the shops.

They

lay in antique time-

keeping, record-keeping, cost-keeping, and purchasing systems,

which were run, not for the benefit of the maintenance and operating departments, but apparently to hamper these departments
Inasmuch as most roads handle
to the greatest possible extent.
these functions in substantially the same manner, I believe that
the inefficiencies of railroad operation, due to the lack of appreciation by the financial end of the needs of the operating end,
are far greater than those over which the operating end has
absolute control.

Railroads are built nominally to earn money for their stockby the sale of transportation. If this were the only way

holders

they could be used to get money, all activities connected with a

railroad would be so run as to assist in the economical production
of transportation, just as all the activities of a well run foundry
are harmonized for the production of castings at low cost.
As a matter of fact, the financial end, including the purchasing, store-keeping, time, cost,

and record keeping, does not as a

its affair, but puts

rule consider economical operation as any of

this responsibility entirely

railroad

managers

up

to the operating force.

The

best

of today, however, see that real economical

operation cannot be had unless all functions contribute to that

end, just as they do in the best managed factories.

Unfortunately this

is

a view that the average financier finds

if he has always been a finan-

difficulty in accepting, especially

cier.

best

A
way

proper comprehension of this subject, however, is the

to head off the growing sentiment for the government

ownership of railroads.

Turning again to Paragraph 21, concerning the relations

between employer and employee, any scheme for the training of

SCIENTIFIC

MANAGEMENT

87

workmen, or promoting the transference of skill, if that term is

must carry with it a guarantee on the part of the management that the employee shall receive

preferred, to be ultimately successful

his share of the product of his increased efficiency or

skill.

In-

creasing the efl&ciency of a workman thus differs radically from

increasing that of a machine, which claims no share of the results.
If,

man

however, the attempt to increase the efficiency of the workmade in such a manner as to lead both employer and

is

employee to feel that he is getting what he should from their

mutual efforts, the promotion of efficiency is sure to follow, and

we have a working
some

on which

basis

to

attempt the solution of

As long, however, as such

Mr. Parry and Mr. Kirby of the National

of our industrial problems.

prominent

men

as

Association of Manufacturers continue to use such language as

they have in the past in speaking of workmen, just so long will the

workmen continue

to use brute force in dealing with employers,

and a satisfactory solution

problem be delayed.
The impUcation in the report of the committee that the development of methods and the training of workmen are functions
of the labor

management has to my mind not been sufficiently emphaThe piece work system as usually operated, and most of
the premium and bonus systems in general use do not recognize
of the
sized.

training as a function of management, and may be classed as

individual effort systems.
They have undoubtedly accomplished
some results in the past, but we have now reached the stage in

our compUcated industries where more than individual effort is

Individual effort may be so hampered by environment
required.
as to

make

progress impossible, and to cause the

become so discouraged as

to give

making. On the other hand,

a certain degree of efficiency

up whatever

workman

effort

he

may

to

be

if

the

is

attainable, accepts the responsi-

management determines that

workmen up to the point necessary to obtain

and provides means for obtaining it, we have an

bihty of training
that efficiency,

entirely different condition.

This view of the subject is so opposed to that held by most

managers, superintendents and foremen that it is with great
difficulty that we can get them to accept it, and the time needed
/

1 88

SCIENTIFIC
them around

to bring

There are

realize.

man
his

MANAGEMENT

to this viewpoint is far greater than most

reasons for this, and the fact that a

many

does not instantly accept a new proposition, which is to

revolutionary, should not for one minute be held up

mind

against him, for a strong

man who

has been successful in follow-

ing one line of action, justly regards an entirely different line as

being inferior to one which has brought him his success.

John G. Aldrich. I believe that the report of this Committee
is

Scientific

or labor-saving

management is scientific
measurement and every one will agree that this is desirable. The
right.

importance has been pointed out in

production by

scientific

It is impossible to

this report of the

methods and

of setting

make up standards without

careful study of the correct morions

and

make them.
The New England Butt Company,

study of

up

standards.

first

making a

of the times required to

of

which I

am

manager,

doing some work along this line to which I would like to call
This company builds largely machinery for making
attention.

is

braids, such as trimmings for ladies' dresses, shoe strings, coverThe machines are made up mostly
ings for insulated wires, etc.

of small light castings

must be
filing or

well

made

which are machined but

so that the parts will

fit

little,

but which

together without

other hand work.

Within the last few years with the help of various experts we
have continually made improvements in our manufacturing
departments. Time study was made of different operations and
of different methods and proper times were set on those methods
upon which to base the various systems of payments for work
We are now using a method of time and motion
performed.
which
has
not been used before, and which not only gives
study
more accurate results than have been heretofore possible, but also
enables us to discover methods that are much more economical.
This method consists of taking motion pictures of the various
operations with a special moving picture camera, and photographing in each picture a clock of special design showing minute
divisions of time.

The hand

of this clock revolves once in six

seconds so that the divisions represent thousandths of a minute

SCIENTIFIC
and are

MANAGEMENT

easily read to half thousandths.

89

The continuous motion

picture film furnishes permanent record of times and motions.

To develop improved methods this film is afterwards studied

with a magnifying glass and

pictures on a screen.

it is

not necessary to project the

Before taking these pictures considerable study was given

toward eliminating waste motions and otherwise improving the
conditions under which the

work was done.

In assembling

machines, instead of picking up the pieces to be assembled from

various boxes, packets were arranged with the parts placed in
convenient positions, and also placed in the proper sequence, so
that no mental process was required of the
or select the parts to come next.

workman

to determine

Since using this method, which we have designated micromotion study, previous times have been reduced over two-thirds.
Its records

case doing

have suggested to us methods that now permit in one

work in 8i minutes that before using micro-motion

study took 37^ minutes.

a most important
Micro-motion study furnishes a means for the transference of skill from man to machine.
More important than this it furnishes a means for the transference

Paragraph 6 of the
"

principle,

rep>ort calls attention to

the transference of skill."

from a man who has had it to one who has never had
have used micro-motion study for determining the correct times of the best motions in many different kinds of work.
of experience

We

it.

It is the least expensive as well as the only accurate

method of

recording motion and time study data.

Micro-motion study enables us
(a)

To

capture the experience of the most skilled

it for the benefit of all.

workman

and record
{h)
{c)

{d)

To determine the motions of least waste.

To teach the best known methods only.
To analyze, measure and compare new data
proved methods

may

so that im-

be constantly standardized as fast

as discovered.
I believe that the time will soon

come when we

will

have a

national bureau of standards of best methods, and micro-motion

/

SCIENTIFIC

19
study

MANAGEMENT

provide a means that the government can use for coland recording the best practice of the workmen in our

will

lecting

industries,

The preparation of this report has eviFred. W. Taylor.

dently involved careful research, followed by a close analysis
The viewpoint from which the
of the materials gathered in.
examined is new and original.
Most writers
have
emphasized the necessity of reducing to
upon this subject
a science the knowledge which in the past has been in the heads
The change from rule-of-thumb to scientific
of the workmen.
been
has
largely dwelt upon, and its importance
knowledge

whole subject

is

pointed out.

The thought

of the committee, however, centers

mainly about transferring this knowledge to the workman after

has been acquired by the management; and from this view-

it

point scientific

management is very properly summarized

as

"

mental attitude that consciously appHes the transference of

to

all of

the

skill

the activities of the industry."

The Committee very properly

calls

attention to the signifi-

cance of the change in the mental attitude of both sides which

This would seem to
takes place under scientific management.

be the most

element in

scientific management.
It was,
indeed, looked upon as of such importance that, during the
"
to Investigate the Taylor
hearings before the House Committee

vital

and other systems of management," man after man came from

the shops which are being run under scientific management, to
very essence of this system lies in the great
mental change which comes both to the management and to the
workmen. In fact, with but few exceptions, these men testified
testify that the

that without this complete mental revolution, scientific management could not exist.

This mental change is great and far-reaching. It means essentially a change from suspicious watchfulness and antagonism and
frequently open enmity, between the two sides, to that of friendship, hearty good-will

and cooperation.

It

means a change from

the old belief that the interests of employer and employee are in
many respects necessarily antagonistic, to the firm conviction
that the true interests of the two are mutual.

SCIENTIFIC
This feature of
that

it

scientific

MANAGEMENT

management

is

of such imjxntance

seems desirable to make one of the causes

in mental attitude a

little

more

clear.

The

I9I

for the

change

following illustration

help to do this:
Into the manufacture of any article there enter two items of
expense, the cost of the materials of which it is composed, and

may

the cost of what are

commonly

called

"

overhead expenses

"

or

general expenses, such as the prop>er share of power, light, heat,

salaries of officers, etc.

two items of expense, cost of materials and general expense, be added together and their sum subtracted from
"
surthe selling price of the article, we have what is called the
between
the
of
this
it
over
the
division
And
is
surplus
plus."
and
dislabor
troubles
men
that
most
of
the
and
the
company
The men want as large a part of
putes have come in the past.
this surplus as possible in the form of wages, and the company
And in the
as large a share as possible in the form of profits.
division of the surplus, under the older systems of management,
both sides have come in many cases to look upon their interests

Now,

if

these

as truly antagonistic.
part of the great mental revolution that occurs under scien-

the complete change in viewpoint of both

sides as to this surplus; from looking uf)on the division of the
tific

management

is

surplus as the important question, they both 'come to realize that

instead of pulling apart and quarreling over it, they join
together and both push hard in the same direction, they can

if,

make

this surplus so large that there is

its division,

no need to quarrel over

because each side can get a far larger

sum than they

had ever hoped to get in the past. And each side realizes that
this result would have been entirely impossible without the

The workmen see clearly that

hearty cooperation of the other.
without the constant help and guidance of those on the management

side,

they could not possibly earn their extra high wages,

see that without the true friendship of the

and the management

workmen their efforts would be futile, and they are glad to have
their workmen earn much higher wages than they can get elsewhere.

SCIENTIFIC

19?

The

MANAGEMENT

introduction of scientific

management

so far as I

know,
which a great
increase in the output of the workmen has been at once accompanied by a large increase in the earnings of the workmen. The
great increase in output resulting from the introduction of laborthe

first

large

movement

is,

in industrial history in

saving machinery was not at once accompanied by much if any

increase in the wages of operatives, and in many instances the
introduction of labor-saving machinery resulted in paying lower
wages to the operatives of these machines than had been received

by similar hand workers before the introduction of machinery.

The main profit was absorbed at first in almost all cases by the
manufacturers, who introduced the new labor-saving machinery.
In the end, of course, the operatives, along with all the rest of
the world, have profited immensely through the introduction
of labor-saving machinery.

One

of the

most notable features of

scientific

management,

that the group of men who have introduced it have

however,
insisted that the workmen coming under its principles should at
is

once be paid from 30 per cent to 100 per cent higher wages than
This fact is not appreciated by the
they could get elsewhere.
general pubUc, and largely because the labor leaders, consistent
in their fight against the introduction of any labor-saving device,
have seen fit to misrepresent far and wide almost all of the good
features of this system; and in doing this they have strenuously
denied that the workmen coming under scientific management

are paid higher wages than heretofore.

Quotations such as the
circular
famous
distributed by Presifrom
the
taken
following,

dent O'Connell throughout the Machinists' Union, are typical of

this misrepresentation

by labor

leaders:

it has resulted either in labor trouble

Wherever this system has been
and failure to install the system, or it has destroyed the labor organization
and reduced the men to virtual slavery and low wages, and has engendered
such an air of suspicion among the men that each man regards every other
man as a possible traitor and spy.
The installation of the Taylor system throughout the country means one of
i. e., either the machinists will succeed in destroying the usetwo things

tried

it will mean the wiping out of

our trade and organization with the accompanying low wages, life-destroying hard work, long hours, and intolerable conditions generally.

fulness of this system through resistance, or

SCIENTIFIC

MANAGEMENT

I93

In answer to this statement of O'Connell's, however, in the

sworn testimony given before the House Committee to investigate the Taylor and other Systems of Management there was
presented a schedule of the present wages in comparison with
the past wages of all of the workmen who had been more than
12

months

in the

employ

of a

company which was using

scientific

This statement showed that the workmen were

management.

then receiving on an average 73 per cent higher wages than when

The list of emfirst came under scientific management.

they

ployees included all kinds, even the colored men who helped
move the materials around the floor of the shop, and the sweepers, etc.

The testimony

also

showed that the company,

this 73 per cent increase in wages,

found

itself

after paying

better off than

it

That fewer workmen

older type of management.
were turning out three times the output formerly obtained and
that the selling price of machines manufactured had been reduced

was under the

25 per cent.
It is object lessons of this sort

who

those

investigate scientific

of both sides are

The
is

mutual instead

which are rapidly convincing

management that the

of antagonistic.

historical portion of the report

evidently the result of

however,

it is

much

interests

shows careful study, and

In certain particulars,

research.

somewhat misleading; that

f)ortion of

which includes the quotations from Adam Smith,

ticularly Tables i and 2, given in the Appendix.

it,

etc.,

at least,

and par-

Although the fact is not specifically stated, still the general

"
time
impression from reading this part of the report is that

"
the transference of skill
study," which is the foundation for
from the management to the men," was practically carried on

now under scientific management.

from the truth, and in the interest of hismay be desirable to make a statement as to the

in 1760

and

This

however, far

is,

in 1830, as it is

torical

accuracy it
"
time study," although I reahze that questions as
beginning of
to who started time study, and when it was started, are of very
little

study

consequence, the important questions being, what

?

and,

how

shall

we make

it

more

useful ?

is

time

SCIENTIFIC

194

Time study was begun

MANAGEMENT

machine shop of the Midvale

Steel Company in 1881, and was used during the next two years
In 1883, Mr. Emlen Hare Miller
sufficiently to prove its success.
"
was employed to devote his whole time to time study," and he
worked steadily at this job for two years, using blanks similar to
in the

"
^
He
in Paragraph 367 of
Shop Management."
"
"
was the first man to make time study his profession.
It is true that the form of Tables i and 2, given in the Appen-

that

shown

dix to the Committee's report, is similar to that of the blanks

Each
recording time study, but here the resemblance ceases.

Table 2, for instance, gives statistics regarding the averentire work of an operative who works day in and day
of
the
age
in
out,
running a machine engaged in the manufacture of pins.

line in

This table involves no study whatever of the movements of a

man, nor of the time in which his movements should have been

made.

Mere

statistics as to the

work do not

given piece of
study," as
in

its

time which a man takes to do a

"
"
Time
time study."

constitute

name

which work

implies, involves a careful study of the time

ought to be done. In but very few cases is it the

time in which the work actually was done.

"
"
time study in the Midvale
Previous to the development of
Steel Works, there have in all probability been many instances

which men have carefully studied and analyzed the movements of other men, and have timed them with watches. (No
such instances have, however, come to my personal attention.)
Any such former work was without doubt confined to isolated
cases, and was of short duration; and (most important from the

in

historical point of view) it did not lead to the

a new

trade, or,

more properly,

to a

new

development of

scientific occupation,.

" the
profession of time study."
Any former efforts of this kind would bear the same general
relation to the time study done in the Midvale Steel Works that
the

many early attempts at flying bear

to the

work

of the Wright,

brothers.

The Wright
*

F.

brothers started

W.

"

man

Taylor, Trans. Atner. Soc.

flying."

M.

E., vol. 24, p. 1436.

MANAGEMENT

SCIENTIFIC

The Midvale

Steel

Works

started the

"

'

195

profession of time

study."
(I

do not

of course intimate that the

two developments are

of equal importance.)

Time study is the one element in scientific management beyond

"
transfer of skill from manageaU others making possible the
ment to men." The nature of time study, however, is but imperfectly understood and it is therefore important to define it clearly.
"
Time study " consists of two broad divisions, first, analytical
work, and second, constructive work.
The analytical work of time study is as follows:
{a)

Divide the work of a

man

performing any job into simple

elementary movements.
(6)
(c)

Pick out

all

useless

movements and

Study, one after another, just

discard them,

how each

of several skilled

workmen makes each elementary movement, and with

the aid of a stop-watch select the quickest and best

method

of

making each elementary movement known

in

the trade.
{d)

Describe, record and index each elementary movement,

its proper time, so that it can be quickly found.*

with
{e)

Study and record the percentage which must be added

good workman to cover
unavoidable delays, interruptions, and minor accidents,
to the actual working time of a

etc.

(/)

Study and record the percentage which must be added

to cover the newness of a good workman to a job, the first
few times that he does

it.

(This percentage

is

quite

on jobs made up of a large number of different

elements composing a long sequence infrequently repeated.
This factor grows smaller, however, as the work consists
of a smaller number of different elements in a sequence
that is more frequently repeated.)
large

Recording these movements so that they can be readily found is the most
element of time study. The writer threw away his first two years of time
study because it was so poorly indexed that he was unable to find the elements
*

difficult

when he needed them.

196

SCIENTIFIC

MANAGEMENT

Study and record the percentage of time that must be

rest, and the intervals at which the rest must
be taken, in order to offset physical fatigue.
The constructive work of time study is as follows
(g)

allowed for

(h)

Add

together into various groups such combinations of

elementary movements as are frequently used in the
same sequence in the trade, and record and index these

groups so that they can be readily found.

(i)

From

these several records,

select the proper series of

it is comparatively easy to
motions which should be used

by a workman in making any particular article, and by

summing the times of these movements, and adding
proper percentage allowances, to find the proper time for
doing ahnost any class of work.
(k)

analysis of a piece of work into its elements almost

always reveals the fact that many of the conditions sur-

The

rounding and accompanying the work are defective; for

instance, that improper tools are used, that the machines

used in connection with

it

need perfecting, that the sani-

And knowledge so obtained

tary conditions are bad, etc.
leads frequently to constructive work of a high order, to
the standardization of tools and conditions, to the invention of superior

make a study such as this of the elementary

workmen in a trade. The instances in which

It is unusual to

movements

methods and machines.

of the

been done are still rare: ^ And it would seem that this
must be due to a lack of appreciation of the great power which
is given to the man who possesses a knowledge of the time value
this has

of these elements,

variety of

work

for instance,

"

to

and also to a lack of appreciation of the large

which these elements apply. How many men,

know

that a

man who

has received his education in

"

time study
through analyzing the elements of the movements of machinists engaged in manufacturing conveying and
"

"

1
Most of the men who have made what they call time study have been
contented with getting the gross time of a whole cycle of operations necessary
to do a particular piece of work, and at best they have thrown out the time when
the workman was idle, or evidently purposely going slowly.

SCIENTIFIC

MANAGEMENT

97

hoisting machinery, can go with this knowledge into another

establishment manufacturing machinery not in the most remote

degree resembling hoisting machinery, and there use this knowlYet during
edge to fix accurate daily tasks for the machinists ?
the past year and more, a young man trained in time study in

Works in Philadelphia, has been setting the daily

tasks in one of our arsenals manufacturing a large variety of war
materials, including the great disappearing gun carriages used
the Link-Belt

in our coast defence.

Surely,

when

the significance of such a fact as this

is

appre-

ciated, companies employing machinists, even though they may

be manufacturing radically different kinds of work, will join
together in studying the rudimentary elements of the machinists'

trade and then in publishing this knowledge so that

it

may

himdreds of companies, where now it is the

of
the few concerns who have had the patience
private property
and the courage to be pioneers in this field. It is the lack of

be available

for

published data regarding the time required to perform each one

of the elementary operations in our various trades (more than

any other element) that makes the introduction

management such a slow process.
If

we
"

as the
it is

and

of scientific

accept the committee's definition of the new management

transference of skill from the management to the men,"

evident that the

management cannot

transfer

knowledge

they themselves possess this knowledge, and up

to this time each new company introducing scientific manageskill until

ment has been

through

its

obliged to obtain this rudimentary knowledge

analysis and study, a very slow and tedious

own

process.

Seventeen years ago, I predicted, in a paper read before this

Society,^ that books would be published similar to our engineering handbooks, embodying a time study of all of the elementary
operations occurring in our various trades; and was then greatly

laughed and sneered at for making this statement.

Only one
such book has as yet appeared, but I wish to repeat my prophecy
with more emphasis even than before
that hundreds of books

"A

Piece Rate System," Trans.

Am.

Soc.

M.

E., vol. 17, p. 856.

SCIENTIFIC

198

MANAGEMENT

be published in the future, and in the not far disThese books will make possible " the transference
"
of knowledge and skill from the management to the workman
on a large scale throughout the country, and the introduction of

of this sort will

tant future.

scientific

management

will

then indeed proceed at a rapid pace.

Henry P. Kendall outlined the experiments which have been

worked out by the company with which he is connected, in the
purchasing of labor, and spoke of the work of the employment

man

as a particular function in scientific

In this establishment this

to apply to
the kind of

man engages

them whatever physiological

work each is best fitted for,

management.
the employees and tries
test

he can to determine

or whether

any particuthe position for which he applies.

In employing women and girls, all are hired subject to the
approval of the factory nurse, and if there is any question as to
lar

one

is fitted for

the health of

men

applicants, they are likewise passed upon.

any person can judge, employees are given the kind

of work for which they are best fitted.
The employment man's responsibility does not cease when he
has hired the man. He has to follow his record in his work, and
adopting a suggestion that came from James M. Dodge, cards
Four times a
are used to preserve the record of each employee.
year information on each employee is added to these cards, as to
how he is performing his work, his aptitude for it, his skill and
He keeps in touch
earning power, and general deportment.
and
a
with each foreman or gang boss,
signed report on each
gets
So

far as

employee

for these card entries.

The

hiring and discharging and matters of discipline of the facare

all concentrated in the employment man, which prevents
tory
the injustice that comes from a gang boss or foreman discharging

man in a moment of anger and saying that he is no good.

Should he say that a man was no good, and recommend his discharge, a written report from several quarters might contradict
the statement, if it were unjustly made.
The training of young workers is especially important. There

nothing so discouraging to a boy as to be set to work at the

end of school by an average foreman and forgotten. He may be
is

SCIENTIFIC

MANAGEMENT

99

wrong place and not fitted for that kind of work. He has,
employment man, one to whom he can go for advice in
regard to his present employment, for suggestions in regard to
outside education or instruction, one who is in sympathy with
him, and with whom he can rest his grievances and feel secure

in the

in the

that he will not get in wrong with the boss.

The foremen at first thought they would lose their authority
when they could no longer hire and discharge, but now they feel
it rather helps their authority to have the employment man
When a man is discharged by
to send to in cases of discipline.

that

a foreman, although perhaps for cause, this may be done in an

angry manner, and he may leave defiant, and with a determination to

"

get even."

If instead,

employment man and an

services

he

is

have not been

at fault, and

if

he

is

explanation

satisfactory,

this is

called to the office of the

is

given him as to

and he

is

made

why

his

to see that

done in a quiet frank way, he leaves

with an entirely diflferent feeling.

Under this present scheme,
the employee is given an opportunity to register just complaints
against a foreman,

if

he has any.

The purchase of machines and equipment has been strongly

The purchase of labor is more important, but is
emphasized.
less
attention.
Then, too, the main functions of scientific
given
management can be used only
tions.

in

combination with other func-

This function can be adopted in any concern with equal

advantage.

H. K. Hathaway wrote that the essence of this report lay in

"
The mental attitude that conthe phrase (Paragraph 29),
the
of skill to all the activities of
transference
sciously applies
"
the novelty of
industry," further qualified by the statement,

new management lies in this

management to the workman."
the

transference of

skill

from the

This viewpoint is so novel that one is led to question whether

the older descriptions of the essence of scientific management

The committee, however, are merely

one
of
the elements which has heretofore
laying emphasis upon
been looked upon as rather of secondary importance.

may not have been wrong.

200

SCIENTIFIC

MANAGEMENT

can be transferred, the management must gather

skill which were formerly
widely diffused in the possession of a great number of workmen,
and much of which was an almost unconscious inheritance.
Before

skill

and record the knowledge and

in

Gathering in and systematizing this knowledge ready for use,

constitutes the development of a science to replace the old ruleof- thumb

the

what has been called by other writers

the four principles of scientific management, and this

knowledge

first of

this is

point the committee recognizes in Paragraph 47.

The writer's experience leads him to feel that the committee

has not given sufficient prominence to the element of acquisition

"
"
as it has been termed.
of skill or
the development of a science

Such development goes farther than the acquisition of existing

and results in additions thereto as well as improvement in
methods and machinery, and the establishment and maintenance
skill

of standards.
It is impossible to transfer skill

fit

from the management to the

without choosing carefully the workman who is

to do a particular kind of work, and then training him until

workman

first

he acquires skiU: the second of the principles of scientific management. It is not only a transference of skill, but in one sense
the creation of

skill

as well;

be the development of latent

perhaps a better expression would

skill.

The

"

third principle of scientific management has been called

bringing the science and the scientifically selected and trained

workman together," which is merely another name for the com"

the mental attitude that consciously applies
mittee's statement,
to all the activities of industry."
of
skill
the transference
The
as

fourth principle of scientific

"an

management has been

defined

almost equal division of the work and responsibility

between the management and the workmen. The management

takes over all work for which they are better fitted than the workman, while in the past almost all of the work and the greater
This
part of the responsibility were thrown upon the men."
the moment the management
principle also follows directly
and third principles of sciensecond
the
their
as
first,
duty
accept
of
burden
The
tific management.
developing a science where

SCIENTIFIC

MANAGEMENT

20I

only nile-of-thumb knowledge existed in the past, and the burden

of training, teaching and transferring skill from the management

workman in the place, of necessity calls for an almost

So that in the
of the work between the two sides.
division
equal
one definition of the new science by the committee are implied
to each

all

of the four principles of scientific

might be proper

It

management.

to point out, in order to avoid misunder-

workmen on one comparatively

not
necessarily in accord with the best and
simple operation
most economic practice in management. It is a serious mistake
"
unskilled except in a
and a disadvantage to have operators
"
as in the instance cited in
single readily mastered operation
standing, that specialization of
is

Paragraph 8 of the committee's report. The writer's experience

has been that it is not only generally desirable, but in many cases
necessary to economy in manufacture, that each operative

become skilled in at least two and generally more of the operadons making up a process of manufacture. This is an objection
to over-specialization purely from the standpoint of production.
Sanford E. Thompson. Criticism is frequently made of the
amount of mechanism required to handle the work of modern
management, the number of clerks needed, and the consequent
increase in overhead charges, and to a visitor this increase in
office is indeed more noticeable than the decrease in number of

workmen

or the increase in production.

were possible in a given establishment simply to make

a few time studies and set scientifically accurate rates or tasks
so as to obtain maximum production, no objection would be
If it

raised to the installation of scientific

management, although it
such a plan could be arranged, it would have
Yet
long ago been adopted without resort to laborious study.
of
that
from
men
criticism
is
so
the
heard
intelligence
frequently
is

obvious that

it is

if

worth careful consideration.

If
tions,

we

refer to the list of papers selected

and given

in the

Appendix

from the Transacit will be seen

to the report,

that those presented earliest discussed methods of setting rates

for paying men.
Following a short general paper by Mr, Towne
in 1886, there are

two papers on

profit sharing, the least intri-

202

SCIENTIFIC

MANAGEMENT

workmen; then from 1890 to 1903,

the question of payment is discussed more in detail, the premium
plan, piece rate and bonus systems; then come subjects relating
more specifically to the more general problem, the management
cate form of incentive to the

of the plant.
is

It is evident

from these papers that

this

sequence
not chance, but represents a development, not of theory but of

absolute necessity in shop management.

man who has made studies of workmen and introduced piece
rates or tasks on accurate detail time study instead of by the
"
"
fix and cut
usual
methods, finds that the very requirements
of accuracy lead necessarily to standardization of methods.

It is necessary to plan out the

method
his work

in the
plish

system

so that he

may

work

of each

man,

to instruct

him

use the least material and accom-

in the smallest practicable time, and to install a

of cards and records specially adapted for keeping track

of the materials

and the time

of the

men.

The development of what Mr. Taylor terms the mechanism

This development indiof scientific management is thus seen.
cates that the broad general principles of planning, routing,

and standardization
do not represent a mere system for which some other system may
be substituted with equally good results, but a plan which is
These things appear to be
of broad application in management.
which proposes
for
organization
necessary
any
fundamentally
instruction, scientific analysis, time study

and tasks which will give the men payments based

actual work which they accomplish, and which
on
the
strictly
will enable them to do the work with the minimum waste of
to set rates

material.

The practical necessity for the introduction of these individual

features is very plain to any one who makes a scientific study of
any operation for the purpose of setting tasks.
These statements may be
from actual practice:

illustrated

by one

or two examples

Take the trimming of large sheets of paper to make ready

The machine consists simply of a bed plate about
for the press.
5 ft. sq. at a convenient level above the floor and an adjustable
The
knife running across this bed plate and operated by power.

SCIENTIFIC

MANAGEMENT

203

operator takes the paper, places it on the bed plate, makes the
cuts and transfers the paper back to a truck: a very simple
operation, lifting paper, cutting, lifting off.
When the work is studied with a view to putting it on the
task basis, the following facts are discovered: the cutter is

capable of going through a thickness of about 5^ ins. of paper.

size of the paper on the particular machine referred to is

The

in. by 60 in.
On account of the weight,
in several lifts.
has
it
on
to
Since
the
therefore,
put
operator
the lift off is easier he is able to take it off in a fewer number of

large,

running up to 40

The number

lifts.

of lifts in

tional to the weight.

It is

both cases

dependent

is

also

not directly propor-

on the

size,

the

stiff-

ness, the thickness and the surface finish of the individual sheets
of paper.
It is readily to be seen, if a man takes six lifts where
four, as he naturally will do if he wishes to shirk,
the time of lifting and therefore the cost of this part of the work
will be 50 per cent too great.
It is necessary, therefore, before
establishing a task to standardize the plan of furnishing the

he should take

paper.

The paper was always counted, but instead of the usual

by hundreds, it is now arranged to divide the

plan of counting
piles

by

slips of

paper into individual

lifts

which a

man

should

take.

For determination of the amount of lift and the other variwere required.
These studies took rather
more time and skill than the actual setting of the tasks when
this preliminary work was accomplished.
After the tasks were
finally set and put into operation, it was necessary to throw out
of commission the other cutter, which had been working on part
time, and the only difficulty experienced was in finding work
enough for this one cutter to do. As a result, the cost of the
work was reduced 30 per cent with, at the same time, an increase
of 40 per cent in the pay of the workman.
This is by no means an exceptional case.
It is always necesfirst
to
the
machine
and
the
standardize
methods.
It is
sary
this as much as anything else that differentiates scientific from
ables, special studies

rule-of-thumb methods.

Usually the direct results of standard-

ization produced even a greater saving than the actual task

bonus.
/

and

SCIENTIFIC

204
Another

MANAGEMENT

be taken from a shoe shop.

In the
cutting of leather, or in cutting linings from cloth, it is a simple
matter to make time studies and determine the time required
illustration

by the men
Piece rates

to pick

may

may

up the

die

and make the individual

cuts.

set, based on the output of each cutter.

is done and such rates are set.
The men

be easily

Suppose, then, that this

"
immediately begin to speed up," but in doing this without any
restraint they' naturally use more material than is necessary.

Now,

in the case that the writer has in mind, the

raw material

used in a certain shop during a week averaged $50,000 in value.

labor cost of cutting this material averaged $280.
A 10
in
reduction
the
labor
cost
amounted
to
a
cent
while
$28,
per
Instead
I per cent reduction in material cost amounted to $50.

The

money by the setting of rates, the plant would actually

money, because the men would waste more material. It was
necessary, therefore, at the start, before setting any rates to
of gaining

lose

attack the quantity side of the problem, investigate the best plan
for layout of dies on the machine and establish some method
for fixing the

amount

of material used

by each man.

This

involved eventually a definite planning of each man's work, so as

to show him how to use the minimum amount of material; a
routing system, as an absolute requirement, which would properly deliver the materials to him and take away his product; and

a system of instruction and time cards, so as to handle the work

in the smoothest

manner

possible.

It may be claimed that these are special instances which do

not often occur, but experience shows them to be very simple
cases.
Wherever a machine or an operation on construction work

studied thoroughly in order to eliminate unnecessary operations and the waste of materials so far as possible, similar meth-

is

ods must be gone through and a more or

adopted

less

complicated system
Only by such

for the proper handling of the work.

thorough study and investigation can the operation be reduced

to a routine which will be essentially automatic.

MANAGEMENT PRINCIPLES AND THE CONSULTING

ENGINEER
By CHARLES

DAY

Reprinted by permission of the Engineering Magatine

Recently much
ciples of

tively

attention has been directed to certain prinheretofore recognized by only a compara-

management

few as forming a distinct type of administration, wherein,

to the greatest possible extent, scientifically ascertained fact

replaces conclusions arising through inaccurate methods of

deduction, and a liberal utilitarianism

with the workers.

is

the

basb

of all dealings

Various papers presented before the American Society of

Mechanical Engineers by F. W. Taylor, H. L. Gantt and others
have kept engineers generally informed as to certain phases of
this

type of management, but the hearing before the Interstate

Commerce Commission gave

the country at large the opportuthrough Louis D. Brandeis' able presentation of the subject, as well as the testimony of a number of those
most capable of testifying to the efficacy of these principles.
The word " management " is capable of very broad interpreta"
Scientific Management," which has been
tion, and the term
nity for enlightenment

used so
to

much of late,

which

it

also covers a greater range in the application

has been put than appears to be generally recognized.
is on this account that I have been prompted to call

Possibly it
attention to

what I
management work
"

an intimate relationship between

we are considering it and the

in the sense

The
performed by consulting engineers.
"
not
be
considered
as
might
management
ordinarily

diversified

term

believe to be

service

appropriate to a kind of work that is closely allied to the service

"
defined in the accepted sense by the word
Engineering."
Nevertheless, the kind of management Mr. Brandeis defined is

based not only upon the management of people, but the management of every important circumstance with which these people
aoS

2o6

SCIENTIFIC

MANAGEMENT

and

it happens that these circumstances are usually, in

of
a strictly engineering nature.
essence,
The major part of the consideration so far accorded the subject

deal,

has dealt with the principles themselves, and the mechanism or

system necessary to carry them into effect when introduced into

These experts are

by trained experts.
whose
work
is
consulting engineers
highly specialized in character, and I desire to consider briefly the relations of their work, or
more properly, the bearing that the principles advocated by them
may have, upon the work of consulting engineers generally.
This is a field well worthy of attention because of the broad
educational influence which can be exerted by consulting engineers on account of the very nature of the service rendered by
industrial companies

them.

The

successful introduction of the managerial methods in

question by any kind of manufacturing business should prove

owners of the business, to the emwho

and
to
those
consume
the product; but the custoployees,
mers are to no appreciable extent enlightened as to the methods
On the
to which they owe the advantages that accrue to them.
of very great benefit to the

other hand, every client of the consulting engineer or architect,

become familiar with correct principles of

men have a proper realization of their
management
The
work
the
bearing upon
they are engaged to perform.
will, to

some

extent,

if

these

product of the industrial company may be almost identical, in

so far as its usefulness is concerned, whether made under what we

may term

the old or the

new systems

of

management, although,

of course, in the latter instance it should be procurable for less

money. On the other hand, the product in the sense of large and
complex operations, resulting from the work of the consulting
engineer, is likely to be quite different in character if it is worked
up with a full recognition of the principles with which we are
dealing (although not necessarily the ability to introduce these
principles) rather than in the face of the serious lack of knowl-

edge in this regard, now so general.

There are at least two distinct policies, either one of which

can be selected by the consulting engineer, with, of course,

many

SCIENTIFIC

MANAGEMENT

207

He can confine his services either to work

gradations between.
that he can personally direct in detail, which of necessity must be
limited in its scope, or he can aim to build up an organization
capable of handling, through its various members, a wide diversity of

work, encompassing complete undertakings.

had

The

latter

principal development within

the past ten years, being the logical result of the complex condiPostions with which the consulting engineer is confronted.

type of organization has

its

sibly the points I desire to bring out

can be illustrated more

clearly by dealing with the engineering organization rather than

As a matter of fact,
the engineer who works independently.

what

is

said in regard to the organization applies, although in a

lesser degree, to the individual, for the organization is

But

aggregation of individuals.

but an

for just this reason it presents

own

business the very problems that require, for their

correct solution, these principles of management, an understand-

within

its

ing of which becomes such a potent factor

when handling

clients'

work.

There are in the United States today a large number of such

organizations, several of which have attained enviable reputaTheir work can be broadly classified
tions at home and abroad.
as dealing with industrial or public-service properties, and in some
cases the same organization handles both of these classes of work.
Industrial-engineering

work

following divisions, based

in its broadest sense comprises the

upon the assumption that

origin, in all cases, in the desire to offer for sale

it

has

its

a product for

is believed to be a demand
First, thorough investigation as to the merits of the product from a commercial standpoint,
taking into consideration every collateral factor such as the ability

which there

to finance the business, etc.

Second, the performance of the

work incident to the provision of the physical

such as buildings and equipment, needed in connec-

detail engineering
accessories,

tion with the conduct of the business.

Third, the actual proviFourth, the organization of the working

force, including the introduction of the mechanism required to
assure the fulfilment of the principles of management which are

sion of these facilities.

necessary for the most successful conduct of the business.

SCIENTIFIC

208

MANAGEMENT

Public-semce engineering work

work when each

diiffers

considered in

but

little

from indus-

broadest sense, for here

for:
the
initial
we also find a demand
First,
investigation as to the
merits and feasibility of the project.
Second, provision of the
trial

is

its

necessary capital in cases where conditions warrant the development.

Third, performance of the detail engineering work.
Fourth, building the property in all of its physical aspects.
Fifth, organization of the working force, including the introduction of a system required to assure the fulfilment of the
correct principles of administration.
Sixth, the actual manageof such properties during their routine operation.
Taking the first division cited in connection with industrial-

ment

engineering work, namely, an investigation as to the merits of a

proposed business, we find that the quahfications required, in

part at least, are in no wise different from those which are necessary as a part of the correct system of managing industrial
plants;

and

in fact, in certain fields of activity

which have long

been open to the consulting engineer, they have been highly

I refer to the faculty for absolutely
perfected and utilized.
of
conditions
accomplished through an analysis
thorough study
It must be evident that the important
not
the
thing
particular nature of the conditions that are to be
rather the manner in which the investigations
but
investigated,
This is amply illustrated by the ability of cerare undertaken.
of all factors involved.
is

tain

men, who thoroughly understand the method

of introducing

correct principles of management, to perform this work successfully in a diversity of industries in which they could not possibly
possess a personal knowledge of all the individual factors in-

volved.

This knowledge they can easily secure through others

who in many cases are unable to use it to marked advantage.

The consulting engineer who advises correctly in regard to

the

undertaking a given line of industrial work or considering a public-service work, passes judgment upon the merits
of.a proposed railway, electric-light and power or other property,

feasibility of

work with all the comprehensive thoroughness

work of the efficient " time study expert "
The two problems differ in
tasks in a machine shop.

must conduct

his

that characterizes the

who

sets

SCIENTIFIC

MANAGEMENT

209

degree and scope, but in each case the object is to anticipate the
result which will follow if certain conditions capable of establish-

ment
ular

are
is

fulfilled.

In either case, thoroughness in every particby no other means can the element of

imperative, for

judgment be reduced below the danger point.

"
Only too often the statement is made after all it is a matter of
judgment," when in reality an adequate study would reveal the
In
fact that at least certain results can be positively assured.
faulty

the final analysis this entire question of successful management,

even in its most subtle aspects, is based upon a full recognition
of the fundamental

In

many

and all-pervading law of cause and effect.

knowledge of causes is woefully limited,

directions our

can be accurately foretold only in the very occasional

instance when, because of their extreme simplicity, we can grasp
The meteorologist
the bearing of the elements or causes.

and

effects

knows the

result that will follow

if

certain definite atmospheric

He can predict with very great accuracy

conditions prevail.
will
exist during the ensuing forty-eight hours,
that
condition
the
and he could predict exactly the weather condition a year hence
if he could comprehend all the factors existing and the influences
that these would have (all being the resultant of fixed laws)
It is on this account that in the
prior to the date in question.
in
full
truth is absolute, are found the
its
field of science, which
real elements of management; and this applies quite as much to
the

human element

as to the material, for the acts of

men

are

and effect. Even now scientific

environment
is resulting in wonderful
heredity and

just as surely the results of cause

study of

insight into

human

actions.

problem into which the human element enters so

confronts all industrial properties, is beyond
and
which
largely,
It is on this account principally
the range of exact definition.
that engineers have not been consulted more generally in regard

The

sales

Conditions in the publicto proposed industrial businesses.

service field are, however, quite different in this regard, it being
possible to anticipate with a very reasonable degree of accuracy
the

amount

conditions.

of business

which should be secured under different

Hence, the practice of engaging consulting engineers

2IO

MANAGEMENT

SCIENTIFIC

to report

upon proposed

public-service undertakings has

practically universal, and where the work is properly

same principles are apphed as are now being generally

become

done the

recognized

as a necessary part of the efficient system of

Possibly the greatest opportunity open

engineer

is

in connection with the

management.
to

the

consulting

prehminary or investigating

work which we have been considering, and it is in this direction

that an understanding of the principles of management will be
of the most assistance.
These principles as applied to industrialplant operation prohibit the performance of any kind of work
whatsoever that has not for its purpose the accompUshment of an

The individual workers may not be

absolutely definite end.
of
this
ultimate
cognizant
purpose, but the entire performance of
the shop is based upon its accomplishment.
The time is not far
when

the consulting engineer will assume just as much

responsibiUty for the ultimate appropriateness of his work as
does the manager of the industrial plant.
This responsibility
distant

he has assumed in certain particulars as, for example, in the design

of bridges, and in fact in connection with nearly all machinery

which he designs; but

have

in

mind

the broader usefulness of

As long as engineers
large undertakings considered as a whole.
this
result
could
not
be expected because
practised individually,
of the difficulty of coordinating the work of independent specialbut through present-day engineering organizations it can be
attained in connection with both public-service and industrial

ists,

properties.

The members of such an organization can profit greatly through

a study of the methods of management introduced by leading
specialists for the routine operation of industrial properties, for
they have properly fitted together the various Hnks of the chain

and have given it a complete identity which it did not heretofore

As I see it, every one who is engaged in active work is
possess.
performing some function which is or should be a link in this
chain.
Considered in a comparatively narrow sense, we have the
"

time study

principles

of

"

expert who is
the system of

fulfilling

the dictates of certain

management needed within the

comparatively limited confines

of, let

us say, a small machine

MANAGEMENT

SCIENTIFIC
Considered in a

shop.

211

much broader sense, we have

the consult-

ing engineer investigating the feasibility of building an extensive

pabUc-service property, and we find, if his work is done properly,

that he is working in accordance with all the principles that
"
"
should be recognized by the
time study
expert, and possibly
certain other and broader principles as well.

The

engineering company,

if

handling a large amoimt of busi-

ness, is confronted with a very difl&cult managerial situation

within

own organization, for in addition to the direction of the

who are called upon to make the various investigations

its

experts

already referred

to, it

must maintain a considerable force of enand clerks who are engaged upon

gineers, draftsmen, accountants,

work which cannot be

defined, in so far as its performance is

is possible in the manufacturing

concerned, with the nicety that

The function of preparing detail plans and specificaone that has long been established upon a scientific basis

business.
tions

is

in so far as the purely technical work is concerned,

advocates of the managerial methods with which

and

in fact the

we

are dealing
as illustrative of the perfection

have often pointed to such work

which should be attained in other

fields of activity.

Hence, in

regard to this detail engineering work, the engineering organiza-

an intimate acquaintance with the proper

management will be of the most benefit in connecactual accomplishment and will not affect materially

tion will find that

principles of

tion with its

the character of the finished work.

In

many

respects

large amount of
the same system

ing work.

We

we

find that the conditions

detail engineering

of

will

work

management which

is

imposed by a

almost exactly
suited to manufactur-

call for

assume that an engineering organization

is

about to undertake the design of a large industrial plant comprising a number of buildings of different types and the installation
Here we find a problem that
of a great variety of machinery.
is

much more complex than

is

usually encountered in the

manu-

facturing plant, and one that is totally different from the problems
If the work
presented in the designing rooms of industrials.
is to be done efficiently and economically (and it must be so done,
for it is the main business of the company, not a department

212

MANAGEMENT

SCIENTIFIC

incurring a minor part of the total expense of operation) it must be

scheduled with just as much fore-thought as the materials going

through a machine shop.

the

work

in considerable

This is no simple matter, however, as

measure consists in creating something

new through

many

the function of designing, so that the definition of

details must be deferred until they are reached.
How-

ever, the

same type

of routine

trial plant, indicating

when

diagram that

is

used in the indus-

the different features of the

work

should be undertaken, the same kind of schedule sheet, instruction cards and time cards, apply; and often the results that
follow their use will be found to be quite as profitable in time and
money as has been shown to be the case in manufacturing
businesses.

The need

of functional

management

is

type of engineering organization which

any other business, for the integrity

ent upon the superlative ability of

of its
its

just as great within the

are considering as in

we

performance

is

depend-

individual members,

and

can be attained only through specialization. It is especially

important, however, that the organization should not be lacking
in that type of administration which makes for control, for work
this

performed by a large number of engineering experts

coordinated.

not easily
large drafting organization should be served
is

by one or more men who prepare in advance, in so far as possible,

all work that will go to the individual draftsman, which includes
the segregation of

all

reference data;

assistants will see that the

work

is

another

man

with his

carried out in accordance with

and by expeditious methods, and other men who are

comparatively narrow lines of work will keep
in touch with its progress, supplementing where necessary the
instructions formerly prepared by them, and finally they will
check the work in all particulars. Consequently, there is needed
"
"
"
the equivalent of the
gang boss," speed boss," and inspec"
who form a part of the functional organization in plants
tor
administered in accordance with the principles with which I am
instructions

specialists in certain

The clerical force needed in conjunction with the condealing.

duct of a large engineering business is also engaged upon functions

which are practically identical with the functions performed

SCIENTIFIC
in

an industrial plant.

They

MANAGEMENT
issue time

213

and instruction cards in

accordance with the schedule, receiving them again after the

work is finished or at the close of day, make the entries upon the
schedules, cost sheets, etc.
It will not be necessary to consider this application of

manage-

ment work

at greater length, although I could show not only

that in many particulars other than those just mentioned the

are identical with those pertaining to

manufacturing companies, but that essentially the same methods
for carrying out these principles are applicable.
principles of

management

The relation of the engineering organization to construction

work of all kinds is usually one of direction and supervision only,
although a number of the larger companies handle the construction work through their own organizations.
Companies of the
latter type have before them one of the most fruitful fields for
the introduction of correct managerial methods. Although exceptionally efficient construction work is being done in many cases,

when judged from

the basis of averaged past performance, a

realization of the possibility of materially raising the standard

must be evident to the reader of Mr. Gilbreth's books. Although

construction work is in many particulars quite different from most
manufacturing work, yet we find that not only do exactly the
same principles apply, but in their principal characteristics the
systems needed for the fulfilment of these principles are

alike.

The fact that no two construction jobs are identical and that the
work must be performed properly the first time (for a second
opportunity cannot be had), and that

it

is

widely scattered

makes particularly necessary a control of all

materials, routing and scheduling of work, standardizing of
methods of doing work, the prompt securing of accurate returns,
and equitable compensation for work done.
The engineering-construction organization is particularly well
suited to reap the full advantage of the methods of administrageographically,

tion in question,

owing to the

fact that it has full control of

both

the engineering and construction work and so can start schedules

and other features as soon as the work goes into the drafting

room.

Of course a complete accomplishment of

this result

SCIENTIFIC

214

MANAGEMENT

cannot be brought about in a short space of time, even in individual cases, and must to a certain extent be a matter of evolution.
A recognition of the integrity of the principles involved is
the first step, and then the actual introduction of the required
methods must be entrusted to men who have established their
positions as being quaUfied in this regard.
When the relation of the engineer to construction

work is one of
and supervision, a thorough understanding of the principles which underlie scientific management results in the more
efficient handling of the construction work, because he will be
direction

better able to determine,

when

letting the contracts, as to the

bidders' respective ability to prosecute it properly; and when it

is in progress, he will be a judge as to ways and means as well as

work done. This is a particularly imin

connection with percentage contracts.
It
p)ortant matter
to the character of the

be said that the only responsibiUty of the contractor is to

complete the work in accordance with the plans and specifica-

may

but if engineers generally become critics of the administramethods employed, even though in an unofficial capacity,
the standard in this regard is bound to improve.
I do not mean
tions,

tive

that engineers should be better able than contractors to prosecute

the detail work, but rather that they should be able to determine
quite promptly as to whether or not a serious effort is being made
to direct the

work

in accordance with correct principles.

As

already stated, comparatively Uttle progress has been made in

applying scientific management to construction work, and what

has just been said has been prompted by the conviction that
a proper understanding of the kind of management in question
upon the part of consulting engineers will prove to be a material
factor in hastening

work, through

The

st

more

efficient

performance of construction
who handle it.

mulating the interest of those

fourth division of industrial engineering and the fifth

division of public-service engineering, referred to above, pertain

to the introduction of correct methods for handling the routine

work which
properties.

constitutes the businesses of the respective classes of

As this is the particular service in connection with

which a great deal more has been accomplished than

in the fields

SCIENTIFIC
of activity to

which

been written,

I will

tion of these

have

MANAGEMENT

referred,

not discuss

it

215

and about which so much has

in this paper.

methods constitutes a service which

This introducis

so complete
not likely to

and so personal in its character that

become a part of the work done by large engineering organizaHowever, I have pointed
tions, except possibly in isolated cases.
out that the principles should be understood by the members of
such an organization in order that their work may result in at
it is

in itself

broad conditions which will be substantially those desired

the
capable managerial expert whose service may be subseby
quently secured.
least

The management

of public-service properties

by engineering

organizations has become an established department of engineering

the

work and

affords exceptionally favorable opportunities for

It must be
correct managerial methods.

full utilization of

evident that this work has been vested in the engineer on account
As
of his ability to deal efficiently with the problems presented.
fact, while it is conceded that the engineer is needed
look
after
the maintenance and operation of the physical
to
equipment, the owners of public-service properties have not,

a matter of

in all cases,

been as ready to acknowledge that the scope of his

work covers

their prop>er administration in the broadest sense.

This conclusion applies correctly to the engineer

the

date.

interprets

narrow technical sense, which was,

the usual interpretation prior to a comparatively recent
The moment, however, that the engineer acquires an

word engineering

in fact,

who

in the

adequate grasp of the subject of management and properly

qualifies for the application of the necessary methods, he be-

comes fit for the entire service.

Of course only a comparatively few engineers are fitted for the
conduct of engineering work in the comprehensive conception
just defined, but this does not contradict the above statement as
As a matter of fact, the
to the full scope of engineering service.
of
the
engineering organization is to meet this very
purpose
obstacle, through combining under one administration a number
of engineers possessing the various qualifications needed to cover
the entire

field.

However, the service rendered by the members

2l6

SCIENTIFIC

MANAGEMENT

an organization cannot be wholly successful unless they

are accorded, on certain classes of work, the fullest cooperation

of such

by the men who

It

work

is

are active in the client's company.

interesting to note that the judgment of engineers whose

for

many years has been based in

large

measure upon highly

scientific methods has been more and more sought, imtil they
have reached a position where they are looked to as the final
authority upon matters which, until recently, would have been
In
considered as remote from their legitimate field of activity.

fact, scientific

management

is

but management

in accordance

with true engineering methods; for these now include, and in

certain directions have included, the human element as well as the

mere materials of construction, and it is acknowledged that we

must seek our managers from the same ranks that have supplied
the men who have been the builders of the very properties that
now need more efl&cient direction.

"SCIENTIFIC

MANAGEMENT"
By

a.

W.

IN BUSINESS

SHAW

EDITOR AND PUBUSHEK OF System

Reprinted by permission of Review of Reviews

T^E

much-discussed

"

Scientific

Management," reduced to

a particular form of industrial management that

simple terms,
develops the individual worker to the highest state of efficiency
is

and

and at the same time secures greater prosperity

owner by getting his product made at the lowest

of prosperity

for the factory

possible cost.
Its principles

Frederick
trial

W.

have been slowly but accurately formulated by

Taylor, the

first

management whose work

investigator in the field of indus-

may

rightly

be termed

scientific.

Literally, with a stop watch, scales, and a tape, Mr. Taylor

timed the various routine op>erations of the workmen in the great
steel plants of

Pennsylvania, in one of which he was successively

laborer, foreman, chief engineer, general manager.

He

meas-

men and

materials traversed, and gradually

evolved the theory that a large percentage of both labor and
material was needlessly wasted,
often as high as 60 or 80 per

ured distances that

cent in a single

and

department,
through

improper supervision

Through changes which he effected he materially

reduced the time in which these op)erations were done.
By a
comparison of figures he expressed the economies which his
methods effected in specific terms of minutes, cents, and ounces.
direction.

these terms as a basis, he constructed a plan of scientific

shop management that he described in a paper which he read
before the American Society of Mechanical Engineers at the

Upon

June meeting

That date properly marks the begirming

movement to establish industrial management as

of 1903.*

of the present

a profession subject to

scientific laws.

[Here follows an explanation of the Taylor System as practised at the

Tabor Manufacturing Co., Philadelphia, and a suggestion that some of its
principles had been applied to sales organizations in other plants.l
*

Refers to Taylor, Shop Management.

Ed.
/

SCIENTIFIC

21 8

MANAGEMENT

Similar Principles Applied to Salesmanship

The National Cash

duced

Register Company, for instance, had remethods to the point that it had analyzed,
and embodied in text-book form the theory and prac-

its selling

classified,

the
salesmanship as apphed to its particular product
perb ips still the most complete codification of rules that has

tice of
first,

ever been formulated for the guidance of salesmen.

Every
detail of the demonstration of the company's product has been

analyzed and expressed in the order and even in the phraseology

that experience has proved to be the most effective.
Every
"
salesman is obliged to memorize this
selUng talk," and to con-

duct a demonstration throughout in exactly the same words and

manner

as

is

prescribed for every other salesman;

been standardized.

the entire

process, in brief, has

In another volume have been collected, from the practical

experience of its salesmen, every objection that had been made
prospective customer against the purchase of the product,
These
together with the approved arguments in refutation.

by a

cases

memorized by the

The same methods have been employed

work of the sales department as a whole.

to standardize the

arguments are studied and in

many

salesmen.

The salesmen are

As soon as a
abilities.

divided into grades, according to their

"
"
salesman attains a specified ability as expressed in points
(a
"
"
and
a
sale
of
sales
is
the
standard
unit,
$25
represents
point
in value, with additional values for the sale of special grades of
goods) he

is

admitted to the school for salesmen, conducted by

Here he attends courses of lectures,

experienced instructors.
recitations,

and

selling

demonstrations extending over a period

end of which oral and written examinations

Prizes are
determine whether he is qualified for a certificate.
given for excellence in these courses, and the classes are organized
of six weeks, at the

"
and " graduated

At

similar to the classes in ordinary educational

stated intervals these classes are called in to

"
"
pursue post-graduate courses of instruction, as the changes in
the policies of the company and in its products demand.

institutions.

MANAGEMENT

SCIENTIFIC

The

219

divided into sales territory under district

for each district and sub"
"
"
"
is
established
each month. A quota
district a sales
quota
entire globe

managers and

is

their subordinates;

the volume ot sales (as expressed in points) which, in view of

the season, local conditions, and other considerations, may be

is

Thus a standard

reasonably exp>ected.
lished for every

man

of proficiency is estab-

in the selling organization

"

bogie
that must be equaled to maintain the record and that
must be excelled in order to qualify for the numerous bonuses
score

and

"

prizes that are constantly held out as incentives.

So completely has
in its details

and so

been standardized

this selling organization

been in maintaining an estabmethods have been adopted by

successful has

lished ratio of growth, that its

it

other organizations that are using them with equal proficiency.

And when the United Cigar Stores selects locations for its shops
by stationing a representative of the company on the spot for
specified periods, to

make an

number
the day, and when

actual count of the

of

in
people who pass that spot in the course of
another concern an ofiice manager, with a stop watch, times the
work of every stenographer and posts each week, as a stimulus

shows the speed, accuracy,

and volume of work performed and on this record, as a basis,
establishes a scale of wages, both are taking long, long steps
to effort, a comparative record that

toward

Scientific

Management.

Application to Business Problems in General

For these, broadly, are the steps toward

ment:
1.

To

separate from the

line organization

To
To

"

Scientific

line organization

staff officer or

"

"

or to add to the

staff organization."

up tentative standards of performance.

correct
these standards by working out
3.
the best methods of performance.
2.

4.

Manage-

set

To determine

scientifically

the best inducement to the employee to attain

these standards.

To

equip the employee with clear, complete, and exact

knowledge of the best way of doing the work.
5.

220

SCIENTIFIC

MANAGEMENT

This is not, perhaps, as Mr. Taylor would designate them,

but as they might be taken by a business man who, having
studied the literature of Scientific Management, would apply
its principles to an individual business problem.
For Mr. Taylor's studies have been of industrial workers.
And the exact systems he has devised and installed have been
applications of the principles or laws that he has discovered to
industrial organization.
They should be introduced, in their
in
no
factory except under the direct supervision of Mr.
entirety,
Taylor or of men trained by him or trained directly under his
influence.
false prophet will come to the business men bringof Mr. Taylor's methods and not the principles,
the
shell
ing only
just as when the first general introduction of business system

But many a

brought in

its

trail

heterogeneous assortments of cards,

filing

cabinets, and record sheets that involved endless clerical labor

to operate and which in many cases constituted useless red tape.
For a period business men mistook the form for the substance;
they believed that in the filling and filing of blanks they had
"
system," and ignored the real system of which these forms were
merely the mechanical tools. The result was that this mechanical routine was either stripped of its non-essentials until it became a serviceable implement or was discarded entirely for the

old-fashioned inaccurate rule-of-thumb method.

not a card or a
Similarly,

filing

cabinet;

it is

Mr. Taylor's method

the right

system

is

of doing a thing.

way
Management

of Scientific

does

not consist of forms or charts or of sets of rules and regulations.

It is a big policy of establishing after scientific study and research
a standard way of performing each industrial operation with the
The
best possible expenditure of material, capital, and labor.
forms and rules are merely the machinery by which the policy is
applied.

What
Back
method

is

a Full Day's

Work ?

of the Taylor principles and back of his particular

them to actual workshop conditions, is this

of applying

afl&rmation of the psychologists,

that

all

of us, employers

and

SCIENTIFIC

MANAGEMENT

221

employees, have but a vague conception of what constitutes a

day's work for a first class man.

full

of us confuse

Many
and

And

is

only under a compelling incentive that

it is

like the

overwork with what

really

we

underwork

discover that

runner we have a second wind.

the problem

is

not merely to ascertain what

is

full

day's
day's work
for the works manager, and for the office boy and the oflSce
manager, for the salesman and the sales manager, and how to

work

for the

workman but

to ascertain

what

is

full

induce the performance of that full day's work.

Therefore, the precise principles Mr. Taylor has formulated

have been applied, in most cases perhaps unconsciously, to almost all forms of conmiercial activity.
for industrial operations

ESTABUSHING STANDARDS OF SaLES COSTS

Perhaps this is best illustrated by the exp>erience of a Chicago
house whose products are sold at retail by a staff of traveling
salesmen who come into personal contact with their customers.

The sales manager was additionally compensated over and

above a certain salary by a percentage of the value of the sales
His major effort, therefore, was
made under his direction.
directed to the increase in the gross amount of the sales, unconThat he eventsciously irrespective of the profits to the house.
ually used in the conduct of his department methods that were
expensive and extravagant in order to secure a large volume of
sales

was due

to a

but

common

error in the

gross
policy
compensation
based only on volume of

concern,

sales.

of the

The

monthly statement showed such a constantly increasing average

of sales expense that finally the management issued an order
that every expense requisition of the manager should be approved
Friction resulted
by an official in the financial department.

and with

the diminution of this sales manager's most valuable

enthusiasm.
The percentage of the sales
characteristic,
it

expense promptly decreased and so did the volume of the sales.

To meet this situation the management with the sales manager

and a few executives of the company who were temporarily re"

"
"
"
line
staff
called from the
organization and placed on the
/

222

SCIENTIFIC

for advisory purposes,

work

of the

MANAGEMENT

went into a

careful analysis of each phase

of that department.

viewpoint of the outsider, the

into its details

Assuming

for the time the

committee divided each operation

and regarded each

in its relation to the whole.

Gradually it established standards for practically each operation

It placed a tentative standard for the gross

of the department.

sales, based on past records and on present conditions.

It established a standard percentage for the cost of making these

annual

analyzed the various expenses into their several

It prepared from the books of account a printed sheet,

It

sales.

factors.

and tabulated to record the daily and monthly statements

form that they would acquaint the sales manager with
the expenses that he was incurring, both in percentages and units,
and in relation to the sales. It studied the methods of the individual salesmen and sales managers and prepared suggestions
and directions as to the best methods to be used by both. It
corrected the original tentative standards, and pointed out
wasteful methods in the daily work of the salesmen and in the
daily work of the sales manager.
ruled

in such

Then

the

management

said to that sales manager:

Here is a codification of the methods under which our product is to be sold.

Here are the exact percentages that we can afford to pay to make these sales.

Your salary will remain as it is. On

here is our proposition to you.
the gross amount of the sales you make we will pay you a certain percenIf you can attain in sales that standard which we will set up and
tage.

And

can attain the standard at a less percentage of expense than we have designated as a standard percentage, one-half of what you save will be yours to
keep.

You will approve your own

requisitions for expense.

In seven months the sales doubled in volume and the expense

had averaged below the predetermined standard and below any
past record of performance.

The True Science of Business

But out

of all the reverberant publicity given

"

Management
what is

ized

the term

to be gained

For the science

itself

"

Scientific

has almost become standard-

by the average business man ?

when carefully formulated,

of business itself,

will be, after all, as

Dr. Scott says, merely

common

sense, the

MANAGEMENT

SCIENTIFIC
wisdom

223
and

of experience analyzed, formulated, codified,

all

in

respect to certain data.

But the data are being accumulated now.

That is what
and
individually
through their organizations, and
business publications and educational institutions, notably the
Harvard Graduate School of Business Administration, are doing
business

men

to-day.
Analyzing business the world over, picking out details,
matters of routine, specific methods of management, individual

plans of organization which under certain conditions have proresults

picking out, in other words, the

duced certain proven

right

way

of doing things, or as

Mr. Taylor has expressed

it,

the

the system.
only right way of doing things
The principles of this science of business have only just begun
to be formulated.
But from a study of the principles of " Scien-

"

Management the business man can

a new mental attitude toward
viewpoint
tific

get a

new

business

his specific business

problems.

That
as

is

For success or

important.

much upon mental

attitude as

failure in business

depends

And
make a

upon mental aptitude.

the mental attitude that prompts one business

man

to

study of his own peculiar requirements and by experiment determine the most effective ways of getting the thing done
scientific

whether the task carrying a pig of iron or

of canned corn
the mental attitude that makes
is

selling

is

a carload

for business

success.
If production costs have been high, the manager's method of
attacking the problem in the past has been simply to try to lower
wages or to add machinery. If selling costs have increased, he

has tenaciously tried to increase selling prices.

And in all of his
movements he has usually been guided by accounting that was

not prophetic; by standards based on past

not carefully analyzing possible jjerformances.

performances
merely historic

But a changed mental attitude suggests a new approach.

costs of production are high the business

equipment that he already has.

ascertain scientifically just

workmen and what

He

will

If

man

will study the

study workmen and

what is a full day's work for these

and will induce them to perform

will help

SCIENTIFIC

224

this full day's work.

When

MANAGEMENT
selling expenses rise

he

will look

men who by words of mouth or by written words sell

And he will examine the standards against which
his product.
these men are working and the exact methods that they use.
first

to the

Result: Lower Prices

The

effect

Scientific

upon the purchasing public

Management

will in the

of the introduction of

beginning be negligible.

As

long as its application is confined to occasional individual businesses, the economies that it will effect will be internal and the
profit will

be restricted largely to the local management.

But
because
of
its
lower
costs
of
managed plant,

as a scientifically

production, can eventually undersell

competitors, the same

methods of management will eventually become universal and
the economies will be shared by the industry generally and thus

become

external.

The

its

inevitable result will be a lowering of

prices to the customer.

Increasing the Workman's Value to Himself

Because of the fact that

scientific direction of labor is

an

increase in the production of the worker as a unit and of the

organization as a whole, its principles have at times been opposed

workmen who, through a misconception of

and with the knowledge of the universally
recognized defects of the ordinary piece work system, have
branded Scientific Management offhand as merely another
"
"
efifort to
speed up the workmen. In reality the new management aims primarily not to increase the strain on the worker by
forcing him into redoubled effort, but to apply his effort to
It places at his disposal methods and
greater advantage.
machinery that have proven, by actual test, to be the most
It furnishes him with
economical of his time and strength.
"
functional foremen ") who are more
instructors (known as
by

various bodies of

their real purpose

experienced in certain phases of his task than he himself, through

whose supervision he is enabled to use these methods and ma-

By a system of records, it deterchinery to best advantage.

mines the workmen's special capacities that permit him to be set

SCIENTIFIC

MANAGEMENT

225

work at which he is most proficient. And by means of a

bonus system it provides for the adequate remimeration of the
worker not on the basis of efifort expended, but upon the more
at the

modem

and expressed in units

the workman's value to

basis of effort practically applied

of production.

As a consequence,

himself and to the organization

highly as his capabilities permit.

is

increased, as rapidly

and as

A HISTORY OF THE INTRODUCTION OF A SYSTEM

OF SHOP MANAGEMENT
By JAMES M.

DODGE

CHAIRMAN OF THE LINK-BELT COMPANY, PHILADELPHIA, PA.

Reprinted by pennission of

The American

Society of Mechanical Engineers

1. After nearly three years' experience introducing into the

establishment with which I am connected the system of shop

Mr. Fred W. Taylor

moving causes
which influenced our Company to take up this work would be
of interest.
I think also it will form a historical recital of the
and
results
on broad lines.
steps
2. The works consist of a machine shop, with its usual accompaniment of storeroom, tool-room, pattern shop and power

management,

identified with the

name

of

of this Society, I feel that a brief recital of the

plant, together with the required shop, offices, accounting departments, drawing-room and engineering forces and the selling

There is also quite an extensive department

organization.
There
devoted to construction and erection in iron and steel.

no duplicate work done and no package article

as would be the case in large duplicated lots.
is

3.

At

the time

we

first

made

or sold

considered the Taylor System,

we

prided ourselves on having a thoroughly equipped shop, operated

by the best methods known to us as respects general manage-

We thought
ment, general accounting and shop accounting.
we were decidedly in advance of others in our particular line of
business and even of other machine shops.

we were

we were not

While we

felt

that

also in a satisfied

intensely progressive,
would be rather presumptuous for any one
to suggest that our method and general way of doing things

mood,

feeling that it

could be improved.

was in this frame of mind that we received word of the

surprising work done at the shop of the Bethlehem Steel Company
with a grade of tool steel to which the names of Taylor- White
4.

It

336

SCIENTIFIC
were attached.

where

I myself

nickel steel faster than

I also

made

was in use and saw

it

MANAGEMENT

227

the trip personally to the shop

tools of this material ripping

heavy

we were

saw under the shadow

in the habit of turning off brass.

of a screen over the point of the

it cut with a dull red heat.

I found on
was
off
a
at
a
rate of 140
computation
turning
good big chip
feet a minute and after twenty minutes there was no let up.
It was something of a shock to me to discover that the wonderfully valuable mechanical training I had had and my twenty
years of experience would have to be regarded as obsolete from

cutting tool that

it

that

moment onward.

An

inspection of my own shop the foUowing day made it

apparent that we were hopelessly behind and that it would be
necessary for us to rearrange our whole establishment if we were
5,

to keep up with the standards that my previous day's experience

had forced upon me. This carried with it the sickening feeling
that I was going to spend a fortune, was to reduce dividends for
several years, was to make an expenditure of a large amount
which would give no result in anything to be properly inventoried
as an asset, and one-hundred-and-one other financial and me-

To convince my own tool-maker, who like

other tool-makers was the best in the country, we took
some of his best achievements in tool-making to the

chanical obstacles.
so

many

down

Bethlehem shops and the instant failure of our samples alongside

of the Taylor-White product resulted in our negotiating a
few days later for a shop right.
6. Considerable time was spent in getting tools of the right
sort for working on cast iron, with the result that we had one
lathe and a few tools to fit it which would do from three to four
times as much work on cast iron as we had ever been able to do
before.

This, however,

was only the beginning. When we went

had to be either discarded or new

further the old machine tools

ones of special design substituted, or the old tools rebuilt. Electric driving became necessary and finally our machine shop,
which had been run most successfully with a 50 horse-power
engine,

was absorbing over 150 horse-power and

more.
/

calling for

228

SCIENTIFIC

Then

MANAGEMENT

became quite evident that the piece rate would have

For instance, if 50 pieces could be made per day
on a tool, an error in rate either for or against us would be multiplied by fifty, whereas if the same tool could turn out 200
pieces a day our error in rate fixing would be multipHed by 200.
Mr. Taylor's answer to our question was that a scientific time
study would be necessary. We were loth to accept this because
we were following what we regarded as a much quicker and
"
better method which was that of
guess," and we had in our
business a number of men who could guess perfectly.
Time
soon began to show that these wonderful but unscientific guessers
were far from infaUible, and the guessing was decidedly inaccurate.
We were shocked that our perfectly appointed and wellmanaged tool-room was becoming nervously prostrated and
it

to be revised.

"

needed

jacking up."
looks Hke a simply jacking

What

up process took eighteen

hard work, but when we were through we were more

than satisfied with the expenditure. Increased output reflected

months

of

upon the heretofore considered perfect system of storeThe receiving-room had to be reorkeeping and accounting.
glaringly

The routing of material through

ganized to fit the storeroom.
the shop which had been very satisfactory and simple
we

were having from

came

six to

twenty

men remembering hundreds

of

also to show signs of mental decay.

The indetails
struction of our men, the strain of having their lathes speeded,
the changes in personnel were all consequences of our first step.
7.

been

The

final result

was that we

called in the

man who had

instrumental in getting us into our difficulties

and asked

him to get us out. The more we worked under the able direction
Mr. Taylor and the assistance of his Mr. Carl G. Barth, also
a member of the Society, the more we were impressed with the
fact that Mr. Taylor in formulating his system had taken good
points of management from various sources and had skilfully
combined them in a harmonized whole. It took over two years
for our organization to surrender fully, and so change our mental
I mean by this that
attitude that we became really receptive.
of

I found no difficulty at

all in

having the heads of various depart-

SCIENTIFIC

MANAGEMENT

229

ments agree that the introduction of the Taylor System would

be most desirable, but in every case it was for everybody else in
the establishment but entirely unnecessary for him.
8. I might illustrate a cardinal feature of Mr. Taylor's System
by asking you to consider the policy of operating a Fall River

steamer with a crew of 200 men, all of whom were in such authority that they were entitled to make suggestions, raise objections and insist on the whole group proceeding with great caution.
Obviously the vessel would be in the greatest peril aU the time.
The one method is to have this entire crew of 200 all functionalized, each man doing his own work under general and specific
directions, with a trained pilot steering the boat.

If

the pilot,

for his own

upon being illumined so that every
one could see him, his usefulness would inmiediately become
I am fully convinced that the successful perpetuation
impaired.
glory, insisted

of a business

becomes the more certain the further away we get

from the old military idea of having all the brains owned and conhave all seen prosperous concerns come
trolled by one man.

We

to grief because the person

who had

the brains and ability to

up had not been broad-minded enough to see that brains

and ability were left behind when he died to conduct the business
"
Under the old military system
In an epigram:
successfully.
Under the Taylor
every one was supposed to help the boss.
others who are
the
and
assist
to
is
the
boss
obUged
help
System
build

it

Under this each individual is unconsciously

This
training his successor and working himself out of a job!
"
"
working ourselves out of a job by the ability and training of
a successor makes it possible to promote any one of the works

under him."

without a

loss of efficiency to the whole.

The boss

is promoted
to him in
comes
promotion
just as much as any one else,
the form of perfected organization, releasing him from detail
and giving him a greater opportunity to devote his brains and
his experience to the development and extension of his business.
individual mental
9. I have endeavored to make plain that my
in
no way unusual.
attitude and that of my associates was and is

and

The whole question

called for and made

his

The high-speed steel

a
better
necessary
system than existed in its

resolves itself to this.

SCIENTIFIC

230

MANAGEMENT

One shop might have a

entirety in any one machine shop.
store
another
an
splendid
system,
unimpeachable accounting
system, another a perfect shipping system, and another a superlative system for routing work.
Mr. Taylor's endeavor has been
to harmonize the good points of management so as to avoid
variations in efficiency with high-grade products and compute
valuations in the curve in which we illustrate it.
The horizontal

would represent uniform harmony.

That improvements will be made in the Taylor System

line, practically straight,

10.

no one can gainsay, so that modifications fitting it to various

But its underlying princilines of manufacture may be made.
ples of efficient planning, task-setting, functional foremanship,
which shall not make laborers out of machinists and errand boys

of foremen, with a full use of the slide rule in computations, the

proper routing of materials through the works, correct record

keeping, pre-determined shipping dates and other features of the

system will have to stand until better means have been tried out.

am

convinced that

the systematic study of conditions in a

can
best be done by the enthusiastic and
manufacturing plant

intelligent outsider.

It it absolutely impossible for

be thoroughly posted in every

is

detail of the

any man

to

works with which he

connected.

The Taylor System

not a method of pay, a specific

It is
ruling of account books, nor the use of high-speed steel.
11.

is

simply an honest, intelligent

trol in

effort to arrive at the absolute con-

every department, to let tabulated

and unimpeachable
"
team

fact take the place of individual opinion, to develop

"
to its highest possibility.
play
In past years numerous instances have come to my notice of
machine work having been done more quickly than formerly, but
such achievement was rather like the high speed of a hundred-

yard dash, or the lowering of a record on the track, interesting,

Under the
but bringing about no broad spirit of emulation.
the
trained
workman
with his
to
the
actual
observer,
system
vastly increased output

put was much

smaller.

is

working no harder than when

He is

simply working

his out-

to his best advan-

SCIENTIFIC

MANAGEMENT

23 1

tage without distraction and with every possible aid that can be
rendered him.

The work for him to do is conveniently placed without his

knowing how it got there; the tools with which he is to work are
Finished pieces are removed promptly.
brought to his hands.

By simply

following his instructions he finds his

increased and does not suffer undue fatigue, and

mental strain and worry. In other words, the

pay very much

is

relieved of all

man who

is

the

most wonderful and complex machine in the shop is treated with

every possible consideration from the viewpoint of increasing his
eflSdency without

harm

to himself.

Good management without

high-speed steel will show handsome returns, but the combination of high-speed steel and the Taylor System, or its equivalent
in management, will show the highest pxDssible gain, because of
the scientific combination of brain and brawn, which in a shop,
as in an individual, represents the highest conmiercial develop-

ment.

AN OBJECT LESSON

IN EFFICIENCY

By WILFRED LEWIS
PRESIDENT, THE TABOR MFG.
Reprinted by

permission of the

CO.,

PHILADELPHIA, PA.

McGraw-Hill Book Co.

Public attention has recently been drawn very pointedly to

the subject of scientific management, and the Tabor Manufacturing Company, of which the writer is president, has frequently

what has already been accomplished along the lines laid down by Frederick W. Taylor.
Prior to my connection with the Tabor Manufacturing Company, in 1900, the whole of my active business life had been
devoted to the cause of eiciency in machines, and I believe with
some measure of success, but I had yet to learn the value of good
management in the development of men, and the greater imporbeen cited as an

tance in business

illustation of

life

of efficiency in

men

as against efficiency in

machines.

As then organized and conducted in 1900, the business was

The machines were built on
rather commercial in character.
contract to our designs and the activity of the company was
directed chiefly toward their sale and demonstration.
I soon
in
which the designs could be imfound a number of details

proved, but as a promoter of sales, I was entirely out of my

I proposed, therefore, that we should have a shop of
element.
our own, and begin to realize whatever profit there might be in

manufacturing.
At this time I was advised

by my well-wishers to maintain an
and
down
the
number of clerks or non-producers.
open shop
keep
I
was
Success,
told, depended upon the ratio of producers to nonin
Draftsmen were
producers
any well managed concern.
recognized as a necessary evil, the fewer of whom the better, and
one good superintendent to lay out the work and keep it moving
In fact, to the
through the shop was considered quite enough.
casual observer, we had hardly enough work to keep a good man
as*

SCIENTIFIC

MANAGEMENT

233

busy and we did not appreciate the need of better shop management until our growing business began to show increasing losses.
Before we were aware of any dissatisfaction, also, and within a
year of the opening of our shop, we were surprised by a general

Our unguardedness
wages and shorter hours.
or lack of management had encouraged our men to combine
We were then
against us and make unreasonable demands.
strike for higher

paying them more than they earned and they insisted upon
having stiU more, which simply meant ruin to the company in a

was compromised by the concession

same pay, the men agreeing to turn out
There was no difficulty
the same amount of work per day.
about their doing this, and for a time, I believe they kept their
promise, but a day's work was then with us, as it is now with
nearly the whole world of industry, a very variable and indefim'te
We had no
result for a given expenditure of time or money.
standard by which a proper day's work could be fixed except the
very shaky and misleading one of the best that had been done
before, and having, as we were now well aware, an organized
shorter time.

Our

strike

of shorter hours at the

any increase in output or efficiency to meet,

company was not encouraging.
At the same time we knew that machines had been built by
others for less than they were costing us, and we felt confident
that a way could be found out of our difficulties.
But we were
to
sell
stock
and
borrow
for
several
years, until
obliged
money
it seemed unreasonable to expect any further financial aid.
Fortunately my good friend, Taylor, who was then writing his
"
remarkable essay on
Shop Management," came again to our
assistance and offered to loan us more money if we would agree
resistance against

the outlook for the

We were only too glad to

to put in his system of management.
do this, without having any conception of what it really was or
would finally mean to us. Accordingly, the money was advanced
and in due time the installation of the Taylor system was begun.
Advance sheets from " Shop Management," which was read
before the American Society of Mechanical Engineers in 1903,
were sent to me as they were written and Mr. Taylor himself
gave some personal attention to the introduction of his system.
/

SCIENTIFIC

234

The enormous amount

MANAGEMENT

of detail involved required, however, the

constant attention of a trained expert and we were fortunate at

the outset in securing the services of Mr. Barth, one of Mr.
Taylor's assistants in the reorganization of the Bethlehem Steel
Company. We had nothing in the nature of system that fitted
in or
first

rear.

was worth preserving, and Mr. Barth was obliged

in the

place to lay the foundation for the structure he proposed to

This meant a lot of preparatory work for which there

was no immediate use and from which no return could be

pected until other features

ex-

were introduced.

In the meantime, the business had to go on, while those engaged in running it were subjected to more or less inconvenience

by

the changes proposed, and these led to a good deal of irritation

and

dissatisfaction in certain quarters.

In

fact, it

was not long

before a revolt began to be felt which was not confined entirely

to the shop. At this crisis Mr. Taylor recognized the futility of
attempting to reorganize a house divided against itself and insisted

upon

his right to direct the introduction of his

system

according to agreement without obstruction or interference in

the shape of adverse criticism, and for a time the good work went

on without active opposition, perhaps, but certainly without the

Mr. Barth was
hearty good will most needed from within.
obUged, as he proceeded in his work, to call for more and more
assistance, and as new men were added to our planning department, the cost of the new system began to draw so heavily upon
our resources that for a year or two we seemed to be actually
losing ground, and we certainly would have been obliged to suspend but for the grit and determination of Mr. Taylor, who had
the courage of his convictions and carried us through the storm
which culminated in the resignation and withdrawal of the opposing forces.
From this time forward conditions began to improve, and the
work began to bear fruit. It was not long before we ceased to

money, broke even and began to gain. A better spirit prevailed, better wages were earned, and production increased so
rapidly that I was lost in astonishment at the potency of the
We had in effect been
engine gratuitously placed in our hands.

lose

SCIENTIFIC
installing at great expense a

MANAGEMENT

235

new and wonderful means

for in-

creasing the efficiency of labor, in the benefits of which the workman himself shared, and we have to-day an organization second
I believe to none in its loyalty, efficiency and steadfastness of
^
Its loyalty was tested a year ago at the time of the
purpose.

when

the streets of Philadelphia were filled with

inducing others to join them.
Out of the 150 then employed, but one man failed to resist the
pressure, and he was paid off without regret as one of our least

general strike

thousands of

men bent upon

idle

efficient workers.

brief history of my experience to emunder which the Taylor system

the
adverse
conditions
phasize
was installed and carried on to a successful conclusion. I do not

have given the above

believe so

much

opposition will ever be encountered

by

others,

because carping criticism has been subdued, if not yet silenced,

and successful methods are sure to be emulated; but more or
less resistance is

however

slight,

always to be anticipated, because any change,

in management may be taken as a reflection

upon previous methods

of reaching the desired end,

and

there-

fore as personal to the advocate of discarded ways and means.

The suppression of j>ersonal pride and prejudice, with the dis-

and adopt the best ideas to be found anywhere,

has been a great help to the scientific habit of thought under
which the Taylor system of sdentific management has been built
position to seize

up and will continue to grow. Differences of opinion may arise

and different conclusions may be drawn from the same evidence,
but a body of fundamental principles has already been established by Mr. Taylor which may safely be taken as the nucleus

management. As in any other science these

fundamental principles must be subjected to rigid analysis and
for a

new

science of

demonstrated in a practical way by successful performances,

"
truth for authority and not authority for
seeking always
truth."

The advice given me

eleven years ago about keeping an open

shop and weeding out the non-producers was good orthodox
^

This

refers to the great street raflway strike

that accompanied

it.

Ed.

and the many sympathetic

strikes

SCIENTIFIC

236

MANAGEMENT

business gospel at that time, and it would no doubt still be endorsed to-day by 95 per cent of the manufacturers in this country,

who would

also subscribe to the principle of one

supreme

authority delegated and subdivided among subordinates on the

military plan, as the only practical type of management for any
business.

But who knows, when he has an open shop, to what extent it

be filled by conspirators ready to take advantage of the

may

opportunity to make unreasonable demands, and how can

loyalty be fostered and encouraged throughout all departments
How comes it also that a large inof a diversified business ?
first

crease in the force of non-producers can be

made

to effect such

an enormous increase in output ?

In 1 9 10 the Tabor Manufacturing Company turned out two
and one-half times as much value in finished product as it ever
did under the old regime with the same force.
Formerly for
"
ten
men
as
or
chip-makers," as Mr.
every
engaged
producers,
M.
defines
we
had
not
more
than one man conthem,
Dodge
J.
Now we have fewer
nected with the shop as a non-producer.
men at machines with three times as many non-producers turning
out practically three times as much work, because prices are
lower to-day than they were five or six years ago and two and
one-half times the value means about three times the product.
explain in detail these anomalous results would carry me
beyond the limits of this paper and call for the elucidation
of a system which had better be studied at first hand in Mr.
At the same
Taylor's Principles of Scientific Management.
time the type of management under which we are working
should be seen in operation to be fully appreciated, and I must

To

far

confess that in the beginning, eight years ago, I gathered very

"
about it from
perusal of the advance sheets on
Shop

my

little

Management."
calls for so

much

The

that the system is so engrossing and

undivided attention that it is almost futile for
fact

is

any one actively engaged in meeting customers, providing for

their wants and collecting accounts, to undertake its installation
The reorganization should therefore be left to
single-handed.

MANAGEMENT

SCIENTIFIC
an expert who

is

237

not hampered by the necessity of running the

business.

an easy matter to start any innovation in an open shop

full of union men, and, as might be anticipated, the appearance
of a man with a stop watch and tally sheet was at first very irriIt is not

So also was
tating and strenuously opposed by the workmen.
the suggestion of a bonus for the successful performance of an

But the kickers were gradually converted or discouraged, better discipline was established and a few of the men
were soon earning 30 per cent more wages than they could comallotted task.

mand

elsewhere.

In the beginning the men were suspicious and disinclined to

believe that a good performance was not to be the signal for a cut
in price, but they have since learned by experience that prices
are fixed by the management upon definite knowledge of all the
time elements involved in any piece of work and that the time
allowed will not be changed so long as the method employed
In this way the management demonstrates
remains the same.
its

loyalty to the

workmen and they

an opporthe management, as they

in turn are glad of

tunity to demonstrate their loyalty to

did last year.

We pay better wages for fuller and better

a

definite

way, and yet there

The

of the word.

is

results performed in
no driving in the ordinary sense

tasks assigned to the

workmen

are easily

within their ability to perform and when new work is given out,
as occasionally happens, at day rates, before the time on the job
has been set, nobody wants to take it because there is no bonus

quick and accurate performance.

But our wonderful increase in production is not due entirely

attached for

its

to rapidity of performance, for in some instances very little gain

in that direction has been made.
great deal is due to the
functional foreman whose duty it is to prepare and guide the way

work going through the shop. The old notion

cannot serve two masters or take orders from more
than one superior is denied by the new philosophy which makes

of every piece of

that a

it

man

possible for the

workman

functions to be performed.

to

have as

There

is

many
no

bosses as there are

conflict of authority

SCIENTIFIC

238

MANAGEMENT

unless the functions overlap, and even there such conflict as may
arise is salutary and to the interest of the company.
gang
boss, for instance, covers one class of machines or work, and it 's

his business to see that every

man

is

provided with at least one

new job with all the tools and fixtures ready for its immediate
performance as soon as the job upon which he is engaged has been
completed. He also gives the necessary instructions about setting the work, explains the drawings

how

to set his

and teaches the workman

work when necessary. This man has nothing to

of machines and does not interfere at all

do with the running

who also has supervision in his function over

as the gang boss and sees that each machine is run
at its proper speed with feed and cut as per written instructions.
He also teaches the workman and gives him such practical
with the speed boss
the same

men

may be needed. An inspector also helps the same

men and sees that the work done is of the right quality and
that the first piece made is up to the standard in all dimensions,
fit and finish.
He also makes further inspection from time to
assistance as
set of

time to see that the standard

is

maintained.

An

over-zealous

speed boss in his desire for a large output may impair the quality
of the work done by exceeding the speed limit, and there is therefore the possibility of a conflict between the speed boss and the
inspector, but the inspector's requirements must be fulfilled and
such a conflict cannot fail to be salutary, because rapidity of

production when accompanied by inferior results is never to be

desired, and in almost all cases some method is found by which
high speed can be maintained and the best quality preserved.
It rarely happens that the superintendent or manager is called

upon

to adjust a difficulty

between the two functional foremen.

In assembling the various parts required to

make

a complete

machine the stockkeeper sees that all the parts for a group of
machines are in hand ready to go together before work is begun
upon any one of them and the whole group is finished at the same
time.

To avoid

delays incident to materials which should be ordered

must carry a sufficient amount of

in advance, the storeroom

stock to cover the time required for replacements, and this

is

SCIENTIFIC
cared for

by a storekeeper and

MANAGEMENT

239

his clerical assistants in

an auto^

matic way.
Formerly it was necessary for the superintendent
to bear in mind or to look ahead to see what was wanted in advance, but with

many thousand

parts going through the shop at

once, important details, sometimes few

and sometimes many,

were invariably overlooked, which meant delay and disappointment to the customer and very often the cancellation of orders.

Now

a balance of stores

kept in the planning department by

which new orders are placed as soon as the stock on hand falls
is

below a certain estabUshed minimum kept plainly in view against

This minimum may vary as conditions change
every detail.

and

it is

fixed

by the

discretion of the

manager

of the planning

in consultation with the sales

department

department.
In the planning department, which is to the shop what the
drawing room has been for many years to the superintendent,
every new machine is charted to show the progress of the work

through the shop and every piece

card for

which

its

it is

and speeds

to

is provided with an instruction

proper manipulation, showing the machine upon

be made, the tools and fixtures required, the feeds

and the time

to be used, the sequence of operations

allowed in detail for each and every elementary movement.

As
these operations are performed they are checked off in a route
file

from which can be seen at any time the exact condition of the

work and the time remaining

An
filled

for its completion.

order-of-work-clerk directs the progress of the orders to be
in accordance with a schedule prepared by the manager in

consultation with the sales department and he has before him

in miniature a view of the whole shop, showing every machine

work being done on each, the work ready to be done

and the work ahead in the shop, but which has not yet arrived
at the machine.
This is a large board or wall plate, which shows
also what machines are manned and where a man can be conveniently shifted when there is no work ahead at his particular
machine.
By this means all of the work in the shop is kept

or vise, the

moving in proper balance at a normal rate of speed, men are

taken on or laid oflf as the exigencies of business may require,
and no loss is sustained by the usual tendency of workmen to

MANAGEMENT

SCIENTIFIC

240

relax when orders are faUing off and work ahead is hard to find.
At such times we are, of course, obliged to curtail production,
and the situation being apparent to all, no complaint is made
against a reduction in time, which we always prefer to a loss of

well-trained men.

well-equipped tool room in charge of a competent man is a

sine qua non in any machine shop, and here also one of our greatest

improvements has been made.^ Formerly each workman was

own assortment of tools and fixtures

incHned to accumulate his

which were stowed away in dark corners and kept in disorder and
Now everything comes in perfect order (and the
confusion.
best of its kind) from the tool room as required and goes back
again

when

the job for which

it

was taken out

is

finished.

Tools

are ground to standard forms and not to suit the whims of individual workmen and the tool room is responsible for the condition of

all tools

sent out.

The drawing room is perhaps of all departments less affected

by the new order of things than any other, and yet there is an
due to the atmosphere of activity which pervades
Here the work is by its very nature more or
the whole plant.
less original and, of course, no time can be set for the completion
indirect effect

of that

which

shape by
is

is

not definitely known, and which grows into

a process of

attained.

trial

Designing

is

and

error, until

something satisfactory
not therefore amenable to time study,

and, depending largely as

it

does upon inspiration, there

is

no

It is in the nature
superior intelligence to direct its progress.
of original research which flourishes and bears its best fruit under

adverse criticism.

work
line

is

creative

and

good designer

full of

is like

a good composer, his

harmonies, and being an artist in his

In original work, the

he cannot be held to a time schedule.

must come from within rather than from

and
this
is
without,
generally inborn with the ability to create.
Copyists, on the other hand, who always need direction, might
be brought under the domination of time study and in many
clerical operations this has been done, but we have not yet attempted to fix tasks in tracing or bookkeeping, and we do not
incentive, therefore,

SeeR.T. Kent's "TheToolRoom under Scientific Management,"

p. 434.

Ed.

SCIENTIFIC

MANAGEMENT

24I

pretend to say that our development is by any means complete.

We have progressed, however, to a point which makes further
progress comparatively easy, and in the face of stubborn opposition

we have

firmly established a successful business upon the

management as laid down by Mr. Taylor.

principles of scientific

This means increased production and higher wages at a lower

cost, and contains the key to the solution of the labor problem.
Labor is made to share in the increased production realized, and

the reward of labor

is

made

to

depend upon the individual

effort

put forth in production. The Taylor system makes more room

on top and gives a better chance to rise. Men thus schooled in
efl&ciency are qualified for better service and learn to measure
more accurately the value of time.
The scientific habit of thought, as applied by Mr. Taylor to the
production of high-speed steel, has resulted in speeding up machine shops about three to one, and I think it is not unreasonable
to expect that the same habit of thought as applied by him to
the every-day hand work of men will eventually result in doubling

the average output of labor with comparatively

in the physical effort required.
varies,

The margin

for

little

increase

improvement

however, so greatly in different trades and countries that

an accurate estimate cannot well be made.

ON THE ART OF CUTTING METALS

By FREDERICK W. TAYLOR
INTRODUCTION BY THE AUTHOR
Reprinted by permission of American Society of Mechanical Engineers

Presented at the New York Meeting (December, 1906) of The American

Society of Mechanical Engineers, being the President's Annual Address.

The experiments described in this paper were undertaken to

obtain a part of the information necessary to establish in a
machine shop our system of management, the central idea of
which

To

is:

give each

workman each day

in

advance a

definite task,

with detailed written instructions, and an exact time allowance

for each element of the work.

To pay

extraordinarily high wages to those who perform their

tasks in the allotted time, and ordinary wages to those who take

more than

their time allowance.

There are three questions which must be answered each day in

every machine shop by every machinist who is running a metalcutting machine, such as a lathe, planer, drill press, milling

machine,

etc.,

(a)
(b)
(c)

Our

namely:

What Tool shall I use ?

What Cutting Speed shall
What Feed shall I use ?

I use ?

which were started 26 years ago with the

answer to these questions
under all the varying conditions of machine shop practice have
been carried on up to the present time with this as the main object
investigations,

definite

still

purpose of finding the true

in view.

The writer will

confine himself almost exclusively to an attemp"

ted solution of this problem as it affects
roughing work "; i. e.,
the preparation of the forgings or casting for the final finishing cut,

which

is

taken only in those cases where great accuracy or high

343

SCIENTIFIC

MANAGEMENT

J43

Fine finishing cuts will not be dealt with.

Our principal object will be to describe the fundamental laws and
"
"
in the
roughing work
principles which will enable us to do
shortest time, whether the cuts are light or heavy, whether the
finish is called for.

work is rigid or elastic, and whether the machine tools are light
and of small driving power or heavy and rigid with ample driving
power.
In other words, our problem is to take the work and machines
as we find them in a machine shop, and by properly changing the
countershaft speeds, equipping the shop with tools of the best
quality and shapes, and then making a slide rule for each machine

an

to enable
to

tell

each

intelligent

mechanic with the aid of these

workman how

to

slide rules

do each piece of work in the quickest

time.

be distinctly understood that this is not a vague,

be hoped for in the future, but that it is an
Utopian
has been the daily practice in our machine
and
accomplished fact,
for
several
shops
years; and that the three great questions, as to
shape of tools, speed, and feed, above referred to, are daily
It is to

result, to

answered

for all of the

men

in each

shop

far better

by our one

trained mechanic with the aid of his slide rule than they were
formerly by the many machinists, each one of whom ran his own

machine,

etc.,

to suit his foreman or himself.

may seem

strange to say that a slide rule enables a good

mechanic to double the output of a machine which has been run,
It

by a

machinist having exceptional knowledge of and experience with his machine, and who has
been using his best judgment. Yet, our observation shows that,
for example, for ten years

on the average,

first class

this understates the fact.

To make the reason

that the man with the

for this

more

clear

it

should be understood

aid of his slide rule is called up)on to detereach of the twelve elements or variables

mine the effect which

given below has upon the choice

of cutting speed and feed and

be evident that the mechanic, expert or mathematician
does not live who, without the aid of a slide rule or its equivalent,
can hold in his head these twelve variables and measure their
it will

joint effect

upon the problem.

SCIENTIFIC

244

MANAGEMENT

These twelve elements or variables are as follows:

(a) the quality of the metal which is to be cut;
(6)
(c)

the diameter of the work;

the depth of the cut;

the thickness of the shaving;

(e) the elasticity of the work and of the tool;
(/) the shape or contour of the cutting edge of the tool,
together with its clearance and lip angles;
{d)

(g)

(h)

the chemical composition of the steel from which the

tool is made, and the heat treatment of the tool;

whether a copious stream of water, or other cooling

medium, is used on the tool;

(J) the duration of the cut;

must

last

i. e.,

the time which a tool

under pressure of the shaving without being

reground;
(k) the pressure of the chip or

shaving upon the tool;

the changes of speed and feed possible in the lathe;

(m) the pulling and feeding power of the lathe.
Broadly speaking, the problem of studying the effect of each of
(/)

the above variables upon the cutting speed and of making this
study practically useful, may be divided into four sections as
follows:
(a)

The determination by a

series of

experiments of the im-

portant facts or laws connected with the art of cutting metals.

(b) The finding of mathematical expressions for these laws

which are so simple as to be suited to daily

(c)

The

investigation of the limitations

use.

and

possibilities of

metal cutting machines.

The development

which
embodies, on the one hand, the laws of cutting metals, and on the
other, the possibiUties and limitations of the particular lathe or
planer, etc., to which it applies and which can be used by a
({/)

of

an instrument

(a slide rule)

machinist without mathematical training to quickly indicate in

each case the speed and feed which will do the work quickest

and

best.

In the

fall

machine shop of
most
of whom were
Company, Philadelphia,

of 1880, the machinists in the small

the Midvale Steel

MANAGEMENT

SCIENTIFIC

245

working on piece work in machining locomotive tires, car axles,

and miscellaneous forgings, had combined to do only a certain

The writer, who

of pieces per day on each type of work.
was the newly appointed foreman of the shop, realized that it was
possible for the men to do in all cases much more work per day
than they were accomplishing. He found, however, that his

number

efforts to get the

men

to increase their output were blocked

by

the fact that his knowledge of just what combination of depth

of cut, feed and cutting speed would in each case do the work in

the shortest time was

much

less

accurate than that of the

who were combined against him. His

men were not doing half as much as they

conviction

machinists

should do,
obtained
the
was
so
that
he
however,
strong
permission of the
a
of
to
to
make
series
experiments
management
investigate the
that the

laws of cutting metals with a view to obtaining a knowledge at

least equal to that of the combined machinists who were under

He expected

him.

than

six

that these experiments would last not longer

months.

With the exception

of a few comparatively short periods,

how-

ever, these experiments have continued until the present time,

through a term of about 26 years.

The

writer wishes to call attention to the fact that in these first

experiments he was far more fortunate than almost

experimenters

who have

all

of the

investigated the subject since then, in

having at his disposal a comparatively large mass of uniform

metal to work upon, and a comparatively large and powerful

machine

to

work with, a 66 inch diameter boring

made of hard

mill

and

large

uniform quality having

been used. He was also especially fortunate in having over him
as president of the company, Mr. William Sellers, who, as is well
known, was one of the most patient and broad-minded experilocomotive

tires

tire steel of

menters of his day.

Mr. Sellers, in spite of the protests which
were made against the continuation of this work, allowed the
experiments to proceed; even, at first, at a very considerable
inconvenience and loss to the shop.
venience will be appreciated when it

The
is

extent of this incon-

understood that we were

using a 66 inch diameter vertical boring mill, belt-driven

by the

SCIENTIFIC

246

MANAGEMENT

usual cone pulleys, and that in order to regulate the exact cutting
speed of the tool it was necessary to slow down the speed of the

engine that drove all of the shafting in the shop; a special adjustable engine governor having been bought for this purpose.
For
in
over two years the whole shop was inconvenienced
this way,

by having the speed of its main line of shafting greatly varied, not
Before the two
only from day to day but from hour to hour.
had
had
the
writer
obtained
such valuelapsed, however,
years
from
the
and
results
as
to much
able
experiments
unexpected
more than justify all of the annoyance and expenditure, and soon
after that he readily obtained permission to

employ a young

technical graduate to devote his whole time to the continuation of

this

work.

Mr. G. M.

Sinclair, a

graduate of Stevens Institute of Technol-

ogy, devoted his entire time to this work from 1884 to 1887,
he left the employ of the company.

when

Mr. H. L. Gantt, also a graduate of Stevens Institute succeeded Mr. Sinclair in July, 1887, and has been interested with us
in carrying on these experiments throughout their whole period.
In 1898 Mr. Maunsel White, of Bethlehem, another graduate
of Stevens Institute, joined us and has been actively interested in
our work up to this time.
Mr. Carl G. Barth, a graduate of The Technical School of
Horten, Norway, joined us in 1899, and is still actively working
on our

investigations.

During these years we have consulted so

freely together in all

matters relating to these experiments that with few exceptions

hardly a step has been taken which can be said to have originated

with any one man.

Therefore, whatever credit or blame
should
be impartially divided among us.
work
this
come to

may
In

writing this paper, then, no effort will be made to discriminate,

as to the results which have been obtained in our investigations,

between the work of one man and another.

Mr. White is undoubtedly a much more accomplished metallurgist than any of the rest of us; Mr. Gantt is a better all-round
manager, and the writer of this paper has perhaps the faculty of
It
holding on tighter with his teeth than any of the others.

SCIENTIFIC

MANAGEMENT

247

should be said, however, that Mr. Barth, who is a very much

better mathematician than any of the rest of us, has devoted a
large part of his time during the last years of these experiments to
carrying on the mathematical work along the lines laid out, and
that without his special ability and untiring energy our progress
would have been much slower, indeed it is doubtful whether we

should have ever reached the present solution of the problem

without his aid.

In addition to the

five

men who have mainly

directed

and

car-

work, the writer wishes to acknowledge the most loyal

and efficient aid and cooperation of many others who have assisted
ried

on

this

machines and in recording or tabulathe would particularly mention Mr.

the
data.
these,
Among
ing
D.
Mr.
C.
V.
Merrick,
Fenner, Mr. James Kellogg, Mr.
Dwight

in the actual running of the

Sidney Newbold, Mr. Joseph Welden, Mr. N. W. Wickersham,

Mr. Edward Kneisley, and Mr. Leonard G. Backstrom.

Our experiments were continued in the works of the Midvale

Company until 1889, when the writer left their employ.

Steel

Since then, these investigations have been carried on in various

shops and at the expense of different companies. Among these,

we would

especially

acknowledge our indebtedness

Messrs.

Wm.

Sellers

Cramp's Shipbuilding Company,

Link-Belt Engineering Company, Messrs. Dodge
more than all, to the Bethlehem Steel Company.

&

&

to

the

Co., the

Day, and,

In carrying on this work more than ten machines have been

up at various times with special driving apparatus and the

fitted

other needed appliances,

all

machines used since 1894 having been

equipped with electric drives, so as to obtain any desired cutting

The thoroughness with which the work has been done
speed.
may perhaps be better appreciated when it is understood that we

have made between thirty and fifty thousand recorded experiments, and many others of which no record was kept. In studying these laws we have cut up into chips with our experimental
tools

more than 800,000 pounds

of steel

and

iron.

More than

sixteen thousand experiments were recorded in the Bethlehem

estimate that up to date between $150,000
Steel Company.

We

and $200,000 have been spent upon

this

work, and

it is

a very

SCIENTIFIC

248

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great satisfaction to feel that those whose generosity has enabled

us to carry on the experiments have received ample return for
the increased output and the economy in
running their shops which have resulted from our experiments.
Throughout the whole 26 years we have succeeded in keeping
their

money through

all of these laws secret, and in fact since 1889 this has been
our means of obtaining the money needed to darry on the work.
We have never sold any information connected with this art for

almost

we have given to one company after another all of

the data and conclusions arrived at through our experiments in
consideration for the opportunity of still further continuing our
cash, but

In one shop after another machines have been fitted up

for our use, workmen furnished us to run them, and especially

work.

prepared tools, forgings and castings supplied in exchange for the

data which we had obtained to date; and we have the best indication that they received full value for the money spent from the
fact that the same company fitted up for us at intervals of several

years three sets of apparatus, the additional knowledge obtained

each time evidently warranting them in making the added
outlay.

During this period all of the companies who were given this
information, and aU of the men who worked upon the experiments, were bound by promises to the writer not to give any of
this information

away nor

to allow

it

to be published.

Most

of

these promises were verbal; and in this day when there is so

much talk about dishonesty and graft in connection with some of
our corporations and prominent business men, it is a notable fact
that through a period of 26 years it has not come to our knowl-

edge that any one of the many men or companies connected with
this work has broken a promise.
The writer has his doubts
whether any other country can produce a parallel record of such

widespread good faith among its engineers and mechanics.

It seems to us that the time has now come for the engineering
fraternity to

have the

this will cut off

results of our work, in spite of the fact that

our former means of financing the experiments.

However, we are in hopes that the money required

this work may be obtained from some other source.

to complete

MANAGEMENT

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The

249

writer has no doubt that

many of the discoveries and conwhich mark the progress of this work have been and are
well known to other engineers, and we do not record them with
any certainty that we were the first to discover or formulate them,
but merely to indicate some of the landmarks in the developclusions

ment
value.

of our

The

own

experiments, which to us were new and of

following is a record of some of our more important

steps:
(a)

In

1 88 1,

the discovery that a round-nosed tool could be run

under given conditions at a much higher cutting speed and therefore turn out much more work than the old-fashioned diamondpointed tool.
(6) In 1881, the demonstration that, broadly speaking, the
use of coarse feeds accompanied by their necessarily slow cutting
speeds would do more work than fine feeds with their accom-

panying high speeds.

(c) In 1883, the discovery that a heavy stream of water p)oured
directly upon the chip at the point where it is being removed from

would permit an increase in cutting

of work done of from 30 to
40 per cent. In 1884, a new machine shop was built for the Midvale Steel Works, in the construction of which this discovery
played a most important part; each machine being set in a
wrought iron pan in which was collected the water (supersaturated with carbonate of soda to prevent rusting), which was
thrown in a heavy stream upon the tool for the purpose of cooling
it.
The water from each of these pans was carried through suitable drain pipes beneath the floor to a central well from which it
was pumped to an overhead tank from which a system of supply
the steel forging

by the

tool,

speed, and, therefore, in the

amount

pipes led to each machine.

Up to that time, so far as the writer
the
of
for
use
water
knows,
cooling tools was confined to small

cans or tanks from which only a minute stream was allowed to

trickle upon the tool and the work, more for the purpose of obtaining a water finish on the work than with the object of cooling the
tool; and, in fact, these small streams of water are utterly inade-

quate for the latter purpose.

So

far as the writer

of the fact that the shops of the

knows, in
Midvale Steel Works

spite
until

SCIENTIFIC

25P

MANAGEMENT

recently have been open to the public since 1884 no other shop in
this country was similarly fitted up until that of the Bethlehem
Steel Company in 1899, with the one exception of a small steel
works which was an offshoot in personnel from the Midvale Steel

Company.
{d)

nosed

In 1883, the completion of a set of experiments with roimd

tools; first, with varying thicknesses of feed when the

depth of the cut was maintained constant; and, second, with

varying depths of cut while the feed remained constant, to
determine the effect of

these

two elements on the cutting

speed.
{e)

In 1883, the demonstration of the fact that the longer a

upon to work continuously under pressure of a

tool is called

shaving, the slower must be the cutting speed, and the exact determination of the effect of the duration of the cut upon the

cutting speed.

In 1883, the development of formulae whichgavemathematFortuexpression to the two broad laws above referred to.

(/)
ical

nately these formulae were of the type capable of logarithmic

expression and therefore suited to the gradual mathematical

development extending through a long period of years, which

resulted in making our slide rules, and solved the whole problem in
1901.

In 1883, the experimental determination of the pressure

the
tool required on steel tires to remove cuts of varying
upon
depths and thickness of shaving.
ig)

{h) In 1883, the starting of a set of experiments on belting

described in a paper published in Transactions, Vol. 15 (1894).
{j) In 1883, the measurement of the power required to feed a

round-nosed tool with varying depths of cut and thickness of

shaving when cutting a steel tire. This experiment showed that

a very dull

tool required as

much pressure to feed it as to drive the

This was one of the most important discoveries made by us,

and as a result all steel cutting machines purchased since that
time by the Midvale Steel Company have been supplied with
cut.

feeding power equal to their driving power and very greatly in

excess of that used on standard machine tools.

SCIENTIFIC
(i^)

MANAGEMENT

25 1

In 1884, the design of an automatic grinder for grinding

and the construction of a tool room for storing and

tools in lots

issuing tools ready ground to the men,

(/) From 1885 to 1889, the making of a series of practical tables
for a number of machines in the shops of the Mid vale Steel Com-

pany, by the aid of which it was possible to give definite tasks

each day to the machinists who were running machines, and which
resulted in a great increase in their output.

(w) In 1886, the demonstration that the thickness of the chip or

layer of metal removed by the tool has a much greater effect upon
the cutting speed than any other element, and the practical use
knowledge in making and putting into everyday use in our

of this

shops a series of broad-nosed cutting tools which enabled us to

run with a coarse feed at as high a speed as had been before
attained with round-nosed tools when using a fine feed, thus substituting, for

a considerable portion of the work, coarse feeds

for our old maxim of coarse feeds and slow

and high speeds

speeds.

In 1894 and 1895, the discovery that a greater proportional

gain could be made in cutting soft metals through the use of tools
made from self-hardening steels than in cutting hard metals, the
(n)

gain

made by

the use of self-hardening tools over tempered tools

whereas the

in cutting soft cast iron being almost 90 per cent,

gain in cutting hard steels or hard cast iron was only

cent.

Up

to this time, the use of

Mushet and other

about 45 per
self-harden-

had been almost exclusively confined to cutting hard

a
few tools made of Mushet steel being kept on hand in
metals,
every shop for special use on hard castings or forgings which could
ing tools

not be cut by the tempered

substituting
"

ing

work

(/>)

tools.

This experiment resulted in

"
rough-

self -hardening tools for tempered tools for all

throughout the machine shop.

In 1894 and 1895, the discovery that in cutting wrought

heavy stream of water thrown upon the shaving

iron or steel a

at the nose of the tool produced a gain in cutting speed of selfhardening tools of about 33 per cent.
Up to this time the makers
of self-hardening steel
the tools.

had warned users never

to use water

on

SCIENTIFIC

252

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From

1898 to 1900, the discovery and development of the

White
Taylorprocess of treating tools; namely, the discovery
that tools made from chromivim-timgsten steels when heated to
the melting point would do from two to four times as much
work as other tools.
(r) In 1899-1902, the development of our slide rules, which
are so simple that they enable an ordinary workman to make
practical and rapid everyday use in the shop of all the laws and
(q)

formulae deduced from our experiments.

(s) In 1906, the discovery that a heavy stream of water poured
directly upon the chip at the point where it is being removed
from cast iron by the tool would permit an increase in cutting

speed,

and

therefore, in the

amount

of

work done,

of 16 per

cent.

In 1906, the discovery that by adding a small quantity of

steel to be used for making modem high speed
chromium-tungsten tools heated to near the melting point, the
(t)

vanadiima to tool

hardness and endurance of tools, as well as their cutting speeds,

are materially improved.
While many of the results of these experiments are both interesting and valuable, we regard as of by far the greatest value that

portion of our experiments and of our mathematical work which

has resulted in the development of the slide rules; i. e., the patient
investigation and mathematical expression of the exact effect
upon the cutting speed of such elements as the shape of the cutting
edge of the tool, the thickness of the shaving, the depth of the cut,

the quality of the metal being cut and the duration of the cut, etc.
fix a daily task with a definite time allow-

This work enables us to

ance for each
the

workman who is nmning a machine tool, and to pay

men a bonus for rapid work.

The gain from

these slide rules is far greater than that of all the

other improvements combined, because it accomplishes the original object, for which in 1880 the experiments were started; i. e.,

that of taking the control of the machine shop out of the hands of
the many workmen, and placing it completely in the hands of the

management, thus superseding "rule

control.

of

thumb

"by

scientific

MANAGEMENT

SCIENTIFIC
most

and

253

work has
been the mathematical side first, finding simple formulae which
expressed with approximate accuracy the effect of each of the

By

far the

difficult

illusive portion of this

numerous variables upon the cutting speed; and, second, finding

a rapid method of using these formulae in the solution of the daily
Several times during the progress of
machine shop problems.
mathematical work, the writer, feeling himself completely
baffled, has asked the expert assistance of some of the best mathethis

maticians in the country.

They

all

smiled

when

told that

we

expected to solve mathematically a problem containing twelve

variables, and in each case, after keeping the formulae before them
for a longer or shorter time, returned the

with the statement that

"

rule of

thumb

slow method of

"

problem to the writer

belonged distinctly in the realm of

or empiricism, and could be solved only by the

trial

and

it

error.

In the investigation of an art such as that of cutting metals, and

about which at the time our work was started there was so little
scientific

knowledge, two types of experiments are possible.

First, the

thoroughly

scientific type, in

of all the variable elements

tempt

is

made

which

which, after an analysis

an atand uniform,
under investigation, and this one
affect the final result,

to hold all of the elements constant

except the one variable which

is

systematically changed
fully noted.

is

and

its effect

upon the problem

care-

to this type that our experiments belong, thanks mainly to

the fact that Mr. WiUiam Sellers (one of the most scientific experiIt

is

menters of his day) was president of the Midvale Steel

when the writer started his work.

Company

Second, the type of experiments in which the effect of two or

more variables upon the problem is investigated at the same time

and

in the

same experiment.

This method
scientific type,

is

of course

and

it is

much

quicker than the thoroughly

largely for this reason, in the opinion of

the writer, that almost all of the other experimenters in this field
have chosen it.
Several of the experiments of this type have

proved most valuable and developed much useful information,

and it is with hesitancy that the writer criticises the work of any

SCIENTIFIC

254

of these experimenters, since

difficulties

MANAGEMENT
he appreciates most keenly the

under which they worked, and

is

grateful for the infor-

mation contributed by them to the art. After much consideration, however, he has decided to point out what he believes to be
a few errors made by these experimenters, with the same object
which he has in indicating our own false steps: namely, that of
warning future investigators against similar errors.
Almost the whole course of our experiments is marked by
imperfections in our methods, which, as we have reaHzed them,

have led us to go again more carefully over the ground previously

These errors may be divided into three principal
traveled.
classes:

The adoption of wrong or inadequate standards for measur-

(a)

ing the effect of each of the variables upon the cutting speed.
(b) Failure on our part from various causes to hold all of the
variables constant except the one which was being systematically

changed in order to study the

effect of these

changes upon the

cutting speed.
(c) The omission either through oversight or carelessness on
our part of some one of the precautions which should be taken
to insure accuracy, or failure to record some of the phenomena
considered unimportant at the time, but which afterward proved
to be essential to a complete understanding of the facts.

In the second portion of this paper will be given in detail a

statement of the appHances, methods and principles which we

beheve to be necessary to use in order to obtain reliable results.

For the purpose of a more general discussion of the subject, howseems important to anticipate this portion of the paper by
describing in detail the standard which we have finally adopted
ever,

it

as a true criterion for determining the effect of each of the variables upon the cutting speed.

The

effect of

each variable upon the problem

is

best deter-

mined by

finding the exact rate of cutting speed (say, in feet per

minute) which shall cause the tool to be completely ruined after
having been run for 20 minutes under uniform conditions.

For example,

if

we wish

to investigate the effect

in the thickness of the feed has

which a change

upon the cutting speed,

it is

neces-

SCIENTIFIC

MANAGEMENT

2$$

sary to make a number of tools which are in all respects imiform,

as to the exact shape of their cutting edge, their clearance and lip
angles, their chemical composition and their heat treatment.
tools must then be run one after another, each for a period

These

of 20 minutes, throughout

tained exactly uniform.

cutting speed than

been found which

its

which time the cutting speed is maintool should be run at a little faster

Each

predecessor, until that cutting speed has

be completely ruined at

will cause the tool to

the end of 20 minutes (with an allowance of a minute or two each

minute mark). In this way that cutting speed is

side of the 20

found which corresponds to the particular thickness of shaving

is under investigation.

which

A change is then made in the thickness of the shaving, and

another set of 20 minute runs is made, with a series of similar
tools, until the cutting speed corresponding to the new
thickness of feed has been determined and by continuing in this
way all of the cutting speeds are found which correspond to the

uniform

In the meantime, every precaution

various changes of feed.
must be taken to maintain imiform all the other elements or
variables which affect the cutting speed, such as the depth of the
cut and the quality of the metal being cut; and the rate of the

cutting speed must be frequently tested during each 20 minute

run to be sure that it is uniform.

The

cutting speeds corresponding to varying feeds are then

plotted as points upon a curve, and a mathematical expression is
found which represents the law of the effect of feed upon cutting

We

believe that this standard or method of procedure

speed.
constitutes the very foundation of successful investigation in this

and it is from this standpoint that we propose to criticise

both our own experiments and those made by other investigaart;

tors.

It was only after about 14 years' work that we found that the
best measure for the value of a tool lay in the exact cutting speed
In
at which it was completely ruined at the end of 20 minutes.

the meantime,
as

we

and

we had made one

set of experiments after another

successively found the errors due to our earlier standards,

and remedied the defects in our apparatus and

realized

SCIENTIFIC

256

MANAGEMENT

methods; and we have now arrived at the interesting though

rather humiliating conclusion that with our present knowledge of

methods and apparatus,

it

would be

entirely practicable to obtain

through four or five years of experimenting

which we have spent 26 years in getting.

The

following are

some

of the

all of

more important

the information

errors

made by

us:

We

wasted

much

time by testing tools for a shorter cutting

period than 20 minutes, and then having found that tools which
were apparently uniform in all respects gave most erratic results
(particularly in cutting ^eel) when run for a shorter period than

20 minutes;

we

erred in the other direction

by running our

tools

30 or 40 minutes each, and in this way used up in

each single experiment so much of the forging that it was impossible to make enough experiments in cutting metal of uniform
for periods of

We

finally settled on a run of

quality to get conclusive results.
20 minutes as being the best all-round criterion, and have seen no

reason for modifying this conclusion up to date.

We next thought a proper criterion for judging the effect of a

given element upon the cutting speed lay in determining the particular cutting speed which would just cause a tool to be slightly
discolored below the cutting edge at the end of the 20 minutes.
After wasting six months in experimenting with this as our stand-

we found that it was not a true measure; and then adopted as

a criterion a certain definite dulling or rubbing away of the cutting
Later it was found, however, that each thickness of feed
edge.
ard,

had corresponding

to it a certain degree of dullness or injury to

the cutting edge at which point regrinding was necessary (the

thicker the shaving the duller the tool should be before grinding)
;

and a third series of experiments was made with this as a standard.

While experimenting on Hght forging a standard dullness of tool
was used which was just sufficient to push the forging and tool
apart and so sUghtly alter the diameter of the work. All of these
were discarded, however, when in 1894 we finally hit
true
the
standard, above described, of completely ruining
upon
in
20
minutes.
tool
the
criterions

SCIENTIFIC

MANAGEMENT

257

As will be pointed out later in the paper, this standard demands

both a very large and expensive machine to experiment with, and
also large, heavy masses of metal to work upon, which is unfortunate; but we believe without apparatus and methods of this
kind

out of the question to accurately determine the laws

it is

which are sought.

Experiments upon the art of cutting metals (at least those
experiments which have been recorded) have been mainly undertaken by

scientific

that the scientific

men, mostly by

man

professors.

It

is

but natural

should lean toward experiments which

require the use of apparatus and that typ>e of scientific observation which is beyond the scope of the ordinary mechanic, or even
of engineers unless they have been especially trained in this kind
of observation.

perhaps for this reason more than any other

It is

that in this art several of those elements which are of the greatest
importance have received no attention from experimenters, while
far less fruitful although

more complicated elements have been

the subject of extended experiments.

As an

illustration of this fact

the most simple of

untouched by

all

we would

of the elements

call

attention to two of

which have been left entirely

all

(a)

experimenters, namely:
the effect of cooling the tool through p>ouring a heavy
stream of water upon it, which results in a gain of

(6)

the

40 per cent in cutting speed

efifect of the contour or outline of the cutting edge of
;

the tool

upon the cutting speed, which when

erly designed results in

prop)-

an equally large percentage

of gain.

Both

of these elements

can be investigated at comparatively

small cost, and with comparatively simple apparatus, while that

element which has received chief attention from experimenters,

namely, the pressure of the chip on the tool, calls for elaborate
and expensive apparatus and is almost barren of useful results.

ments

in

any

field, first,

and, at least, carefully consider

practical results

may

men

proposing to make experito look thoroughly over the whole field,

This should be a warning to

all

all of

the elements from which

be expected; and then to

select the

any
more

MANAGEMENT

SCIENTIFIC

2S8

simple and elementary of these and properly investigate

before engaging in the more complicated work.^

them

noteworthy fact that when thorough investigations are

attempted by earnest men in new fields, while frequently the
object aimed at is not attained, yet quite often discoveries are
It is a

made which are entirely foreign to the purpose for which the
And it may be said that the
investigation was undertaken.
indirect results of careful scientific work are, generally speaking,
fully as valuable as the direct.

Two

interesting illustrations of

have been furnished by our experiments.

The discovery of the Taylor- White process of treating tools by
heating them almost to the melting point, or, in other words, the
this fact

modem high speed tools the world over, was the

indirect result of one of our Unes of investigation.
The demonstration of the fact that the rules for using belting
in common practice furnished belts which were entirely too hght
introduction of

for

economy was

also

one of the indirect results of our experi-

ments.

The manner

making these discoveries was each time in a

what may be expected in similar cases that it
would seem worth while to describe it in some detail.
During the winter of 1894-95, the writer conducted an

way

of

so typical of

investigation in the shop of

Wm.

Sellers

&

Co., at the joint

expense of Messrs. WilHam Cramp & Sons, shipbuilders, and

Messrs. Wm. Sellers & Co., to determine which make of self-

hardening tool steel was, on the whole, the best to adopt as standard for all of the roughing tools of these two shops.

As a result of this work, the choice was narrowed down at that

time to two makes of tool steel: (i) the celebrated Mushet selfhardening

steel,

the chemical composition of the particular bar

analyzed at this time being as follows

Tungsten
Per Cent

SCIENTIFIC

MANAGEMENT

259

a self-hardening steel made by the Midvale Steel Company of the following chemical composition:

and

(2)

Tungsten
Per Cent

26o

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MANAGEMENT

Company to the experimental lathe so that they could be convinced by seeing an actual trial of all of the tools that the Midvale
steel was, on the whole, the best.
In this test, however, the
Midvale

proved to be worse than those of any other make;

ran
at slower cutting speeds.
This result was rather
they
to
us
as
who
had
humiliating
experimenters
spent several weeks
tools

i. e.,

in the investigation.
It was of course the first impression of the writer that these
tools had been overheated in the smith shop.
Upon careful
it
the
seemed
as
smiths, however,
though they had
inquiry among

taken special pains to dress them at a low heat, although the

The writer, therefore, determatter was left in much doubt.

mined to make a thorough investigation before finally adopting

the Midvale steel as our shop standard to discover if possible
some heat treatment which would restore Midvale tools injured
in their heating (whether they had been underheated or overheated) to their original good condition.
For this purpose Mr. White and the writer started a carefully
laid out series of experiments, in

which

tools

were to be heated at

temperatures increasing, say, by about 50 degrees all the way from

a black heat to the melting point.
These tools were then to be

ground and run in the experimental lathe upon a uniform forging,

so as to find:
(a)

that heat at which the highest cutting speed could be

attained (which our previous experiments had

shown

to be a cherry red)

(b) to accurately determine the exact danger point at

which if over or underheated these tools were

seriously injured;
to find some heat treatment

by which injured tools

could be restored to their former high cutting speeds.
These experiments corroborated our Cramp-Sellers experiments,
(c)

showing that the tools were seriously broken down or injured by

overheating, say, somewhere between 1550 degrees F. and 1700
degrees F.; but to our great surprise, tools heated up to or above
the high heat of 1725 degrees F. proved better than any of those

heated to the best previous temperature, namely, a bright cherry

SCIENTIFIC
red;

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and from 1725 F. up to the incipient point

261
of fusion of the

tools, the higher they were heated, the higher the cutting speeds
at which they would run.

Thus, the discovery that phenomenal results could be obtained

which was so comand

the
directly
opposite of all previous
pletely revolutionary
heat treatment of tools, was the indirect result of an accurate
scientific effort to investigate as to which brand of tool steel was,
on the whole, the best to adopt as a shop standard, neither Mr.
White nor the writer having the slightest idea that overheating
beyond the bright cherry red would do anything except injure the
tool more and more the higher it was heated.
During our early Midvale Steel Company experiments, extending from 1880 to 1883, the writer had so much trouble in maintain-

by heating

tools close to the melting point,

ing the tension of the belt used in driving the boring mill upon
which he was exp)erimenting that he concluded: (i) that belting
rules in

and

(2)

common

use furnished belts entirely too light foreconomy

way to take care of belting was to have
;

that the proper

each belt in a shop tightened at regular intervals with belt clamps

especially fitted with spring balances, with which the tension of
the belt was accurately weighed every time it was tightened, each
belt being retightened each time to exactly the same tension.
In 1884, the writer designed and superintended the erection of

a new machine shop for the Midvale Steel Company, and this
gave him the opportunity to put these conclusions to a practical
test.

About

half the belts in the

shop were designed according

to the ordinary rules and the other half were made about three
times as heavy as the usual standard.
This shop ran day and
The belts were in all cases cared for and retightened only
night.

upon written orders sent from the shop office; and an accurate
record was kept through nine years of all items of interest concerning each belt, namely: the number of hours lost through
interruption to manufacture; the number of times each belt
interrupted manufacture;

the original cost of each belt;

the

and repairing each belt; the

fall in the tension before requiring retightening; and the time
each belt would run without being retightened. Thus at the end

detail costs of tightening, cleaning

a^

262

SCIENTIFIC

MANAGEMENT

of nine years these belts furnished a record

beyond question many important

which demonstrated

facts connected with the use of

belting, the principal of these being that the ordinary rules

belts only

about one-half as heavy as should be used

for

gave

economy.^

This belting experiment illustrates again the good that often

comes indirectly from experiments imdertaken in an entirely
different field.

After

many years of close personal contact with our mechanics,

I have great confidence in their good judgment and common sense

in the long run, and I am proud to number many of them among

my most intimate
As a

friends.

however, they are extremely conservative, and if

to themselves their progress from the older toward better

left

class,

be exceedingly slow.
And my experience is that
can
be
brought about through constant
rapid improvement
only
and heavy pressure from those who are over them.

methods

will

It must be said, therefore, that to get any great benefit from

the laws derived from these experiments, our sUde rules must be
used, and these slide rules will be of but little, if any, value under
the old style of management, in which the machinist is left with

the final decision as to

feed,

he

The
by

what shape of

tool,

depth of cut, speed, and

wall use.

slide rules

the machinist.

cannot be

the lathe to be banged about

be used by a man with reasonably

left at

They must

clean hands, and at a table or desk, and this man must write his
instructions as to speed, feed, depth of cut, etc., and send them

advance of the rime that the work is to be

Even if these written instructions are sent to the machinist,
however, Httle attention will be paid to them unless rigid standto the machinist well in

done.

ards have been not only adopted, but enforced, throughout the
shop for every detail, large and small, of the shop equipment, as
*

The

writer presented a paper to this Society in 1893 (published in Transacupon this series of experiments. He has since found, however, that

tions, Vol. 15)

in the

minds of many readers the value of the conclusions arrived at has been

seriously brought into question largely through the criticism of one man, which at
the time appeared to the writer so ridiculous that he made the mistake of thinking
it

not worth answering in

carefully all criticisms,

detail.

however

This should be a warning to writers to answer

foolish.

SCIENTIFIC

MANAGEMENT

263

well as for all shop methods.

And, further, but little can be
accomplished with these laws unless the old style foreman and

shop superintendent have been done away with, and functional

consisting of si)eed bosses,
foremanship haS been substituted,

gang bosses, order of work men, inspector, time study men, etc.
In fact, the correct use of slide rules involves the substitution of
our whole task system of management for the old style manage"
"
ment, as described in our paper on Shop Management {Trans-

This involves such radical, one might almost

say, revolutionary, changes in the mental attitude and habits
both of the workmen and of the management, and the danger
actions, Vol. 24).

so great and the chances for failure are so

a reorganization should only be undertaken
that
such
many,
under the direct control (not advice but control) of men who

from

strikes is

have had years

of experience

and training

in introducing this

system.

long time will be required in any shop to bring about this

radically new order of things; but in the end the gain is so great
that I say without hesitation that there is hardly a machine shop

whose output cannot be doubled through the use

And this applies not only to large shops, but
In a company
also to comparatively small establishments.
whose employees all told, including ofl5cers and salesmen, number
about one hundred and fifty men, we have succeeded in more than
doubling the output of the shop, and in converting an annual loss
of 20 per cent upon the old volume of business into an annual
profit of more than 20 per cent upon the new volume of business,
and at the same time rendering a lot of disorganized and dissatisfied workmen contented and hard working, by insuring them an
average increase of about 35 per cent in their wages. And I take
in the country

of these methods.

this

opportunity of again saying that those companies are indeed

who can secure the services of men to direct the intro-

fortunate

duction of this type of

training and experience

management who have had

sufl&cient

to insure success.^

The writer feels free to give this advice most emphatically without danger of
having his motives misinterpreted, since he has himself given up accepting profes*

sional

engagements in

this field.

SCIENTIFIC

264

MANAGEMENT

Unfortunately those fundamental ideas upon which the

new

rests mainly for success are directly antagofundamental ideas of the old type of management.
To give two out of many examples: Under our system the workman is told minutely just what he is to do and how he is to do it;

task

management

nistic to the

and any improvement which he makes upon the orders given him
is fatal

While, with the old style, the workman is

improve upon his orders and former

to success.

expected to constantly

Under our system, any improvement, large or small,

once decided upon goes into immediate use, and is never allowed
to lapse or become obsolete, while under the old system, the
methods.

innovation unless
it

it

meets with the approval of the mechanic

is generally for a long time, at

never does at the start)

(which
a positive impediment to success.
Thus, many of those
elements which are mainly responsible for the success of our
system are failures and a positive clog when grafted on to the old
least,

system.

For this reason the really great gain which will ultimately come
from the use of these slide rules will be slow in arriving
mainly,
as explained, because of the revolutionary changes needed for
but it is sure to come in the end.
their successful use
Too much emphasis cannot be laid upon the fact that stand-

It is far simpler to have

ardization really means simplification.
in a standardized shop two makes of tool steel than to have 20
makes of tool steel, as will be found in shops under the old style of

management.

It is far simpler to

have

all

of the tools in a stand-

ardized shop ground by one man to a few simple but rigidly

maintained shapes than to have, as is usual in the old style shop,
each machinist spend a portion of each day at the grindstone,

grinding his tools with radically wrong curves and cutting

angles, merely because bad shapes are easier to grind than good.

be given showing the true

which
accompanies the new type
simplicity (not complication)
of management.
There is, however, one element in which the new type of management to all outward appearance is far more complicated than
the old; namely, no standards and no real system of management

Hundreds

of similar illustrations could

SCIENTIFIC

MANAGEMENT

265

can be maintained without the supervision and, what is more, the

men who would be called by the old style of manage-

hard work of

ment supernumeraries or non-producers.

The man who judges

by looking over the

of the complication of his organization only

names

of those

on the pay-roll and separating the

so-called non-

producers from the producers, finds the new style of management

more complicated than the old.

No

one doubts for one minute that it is far simpler to run a

with
a boiler, steam engine, shafting, pulleys and belts than
shop
it would be to run the same shop with the old fashioned foot
power, yet the boiler, steam engine, shafting, pulleys and belts
require, as supernumeraries or non-producers on the pay-roll, a
fireman, an engineer, an oiler and often a man to look after belts.
The old style manager, however, who judges of complication only

by comparing the number

of non-producers with that of the

producers, would find the steam engine merely a complication in

management. The same man, to be logical, would find the whole
drafting force of an engineering establishment merely a complication, whereas in fact it is a great simplification over the old
method.
Now our whole system of management is quite accurately
typified by the substitution of an elaborate engine to drive and
There
control the shop in place of the old-fashioned foot power.
is no question that our human managing machine, which is
required for the maintenance and the effective use of both standard shop details, and standard methods throughout the establishment, calls for many more non-producers than are used with
the old style management having its two or three foremen and a

The

efficiency of our engine of management,

with
the old single foreman is like a shop
however, compared
with
foot power or the drafting room as comengine as compared
pared with having the designing done by the pattern maker,

superintendent.

blacksmith and machinist.

A
wiU

made throughout this paper

we propose to take all of the important

study of the recommendations

illustrate the fact that

and planning which vitally affect the output of the shop

out of the hands of the workmen, and centralize them in a few
decisions

266

SCIENTIFIC

MANAGEMENT

men, each of whom is especially trained in the art of making those

decisions and in seeing that they are carried out, each man having
his own particular function in which he is supreme, and not interIn all this let me say
fering with the functions of other men.

we

are aiming at true simplicity, not compHcation.

one recommendation, however, in modem machine
shop practice in making which the writer will probably be accused

again that

There

is

of being old-fashioned or ultra-conservative.

Of late years there has been what may be almost termed a

blind rush on the part of those who have wished to increase the
efficiency of their shops toward driving each individual machine
with an independent motor.
The writer is firmly convinced
through large personal observation in many shops and through

having himself systematized two electrical works that in perhaps

three cases out of four a properly designed belt drive is preferable
to the individual motor drive for machine tools.
There is no
question that through a term of years the total cost, on the one
hand, of individual motors and electrical wiring, coupled with the
maintenance and repairs, of this system will far exceed the first

and belting plus maintenance

and repairs (in most shops entirely too Hght belts and countershafts of inferior design are used, and the belts are not systematically cared for by one trained man and this involves a heavy
There is no question, therefore, that in
cost for maintenance).
the
motor
drive
cases
means in the end additional complimany
cation and expense rather than simplicity and economy.
cost of properly designed shafting

admitted that there is littie, if any, economy in

obtainable
power
through promiscuous motor driving; and it will
be
found
to be a safe rule not to adopt an individual
certainly
It is at last

motor for driving any machine tool unless clearly evident

large saving can be made by it.
In concluding

let

me

say that

we

are

now but on

and a

the threshold

coming era of true cooperation. The time is fast going by

for the great personal or individual achievement of any one man
of the

And
standing alone and without the help of those around him.
the time is coming when all great things will be done by the cooperation of many men in which each man performs that function

SCIENTIFIC

MANAGEMENT

267

which he is best suited, each man preserves his own individuality and is supreme in his particular function, and each man at
the same time loses none of his originality and proper personal
initiative, and yet is controUed by and must work harmoniously
with many other men.
And let me point out that the most important lessons taught
for

by

these experiments, particularly to the younger men, are:

Several men when heartily cooperating, even if of everyday
caUber, can accompUsh what would be next to impossible
for

any one man even

of exceptional ability.

Expensive experiments can be successfully carried on by men

without money, and the most difficult mathematical problems can be solved by very ordinary mathematicians;
providing only that they are willing to pay the price in
time, patience and hard work.

The old adage is again made good that all things come to
him who waits, if only he works hard enough in the meantime.

Discussion

Mr. Henry R. Towne. Mr.

"

The Art of
a masterpiece. Based on what is undoubtedly the longest, largest, and most exhaustive series of experiments ever conducted in this field, its summary of the conclusions
Cutting Metals

"

Taylor's paper on

is

deduced therefrom embodies the most imp)ortant contribution to

our knowledge of this subject which has ever been made.
The
subject

itself relates to

the foundation on which

all

of our metal

working industries are built.

About 60 years ago, American invention lifted one of the

earliest and most universal of the manual arts from the plane on
which it had stood from the dawn of civilization to the high level
of modern mechanical industry.
This was the achievement of
the sewing machine.
About 30 years ago, American invention
again took one of the oldest of the manual arts, that of writing,
and brought it fairly within the scope of modem mechanical
This was the achievement of the typewriting
development.
machine.
The art of forming and tempering metal tools iin2.

268

SCIENTIFIC

doubtedly

is

MANAGEMENT

coeval with the passing of the stone age, and thereis at least as old, if indeed it does not outrank,

fore in antiquity

Like them, it has remained

the arts of sewing and of writing.
almost unchanged from the beginning until nearly the present
The work of Mr. Taylor and his associates has lifted it at
time.
once from the plane of empiricism and tradition to the high level
of modem science, and apparently has gone far to reduce it
almost to an exact science.

In no other

field of original

research,

that I can recall, has investigation, starting from so low a point,

attained so high a level as the result of a single continued
effort.
3.

Measured

by

and

originality
is

comprehensiveness

Mr.

the most important thus far con-

Taylor's paper undoubtedly

tributed to the Transactions of this Society.
With perfect
to
makes
no
claim
sole
for
it
it
credit
the
achievements
modesty

awarding due praise to all who were associated in the

and
work,
recognizing that the work itself was made possible by
the rapidly developing opportunities which modern materials,
processes, and machines have made available, but which preTo Mr.
viously had not been fully appreciated or utilized.
all
for
due
credit
the
first
to
is
being among
perceive these
Taylor
records,

opportunities, to appreciate their possible significance, and, with

endless patience and consummate skill, maintained through 26

years with unfaltering persistence and despite all discouragements, to carry forward his undertaking to its successful issue.

Mr. Taylor's paper does scant justice to the

scope of the work which it records, for incidentally to its main
purpose this work included subordinate investigations hardly
less radical, even if of less importance, than the main issue.
Chief among these was the development of what is now best
4.

The

known

title of

"

"

of shop management, itself a

Taylor System
fundamental
the influence of which will
of
importance,
discovery
be felt ultimately and permanently, not only in the metal trades

as the

Less fundamental, but

organized industry.
of universal interest and value wherever power is transmitted

but probably in
still

all

from a central source to large groups of power-driven machines,

the determination by Mr. Taylor of more correct and efiicient

is

SCIENTIFIC

MANAGEMENT

rules for the use of leather belting

269

than were previously known.

Another distinctive topic covered by his work is the proper forms

of cutting tools and improved methods of making and mainStill another, and in some respects the most
novel and brilliant of these many contributions to technical

taining such tools.

knowledge,

is

his adaptation of the slide rule to the determination

of equations involving twelve variables, by a process so simple

as to bring it within the reach of any skilled mechanic of fair
intelligence.
5.

The

fession of

Society of which Mr. Taylor

which he

is

the President, the Proan honored member, and the industrial

is

on the achievements of which

Mr. Taylor's paper, voluminous and comprehensive as it is, constitutes but a partial and inadequate record.
While probably
that paper is by no means the last word to be sp)oken on the subject to which it relates, certainly it is the most important and
authoritative which has yet been uttered.
Mr. James M. Dodge. I want to just say one word about one
"
task."
It is a pity that our lanword, and that is the word
guage has not another word that is more applicable to the meaning that Mr. Taylor gives to the word, but Mr. Taylor agrees
with me that our language does not give us the exact word needed.
"
"
Now, the task set by the Taylor System is n't a club which
makes a man do twice as much as he did in the same way he has
"
"
been doing it. The task set by Mr. Taylor, by the use of the
prescribed tools and methods lightens the task; it does not add to

world are

all

to be congratulated

It cuts out the unnecessary motions, and

the labor performed.
it renders the motions made more useful and more efficient by

These motions are made, if we can

something supplemental.
use such an expression, as suiting a man's comfortable position or

The men themselves who are doing these

accomplishments.
"
tasks," say that they go home less tired than they used to do
when they set their own tasks. So I say again that I regret that

we have not a better word than

hood

task which according to our child-

lessons implies bother or burden, something which our

teachers meant as a punishment to us.
It is not a task; it is a

help to the employee.

PREREQUISITES TO THE INTRODUCTION

OF SCIENTIFIC MANAGEMENT
By H. K.

HATHAWAY

GENERAL MANAGER, TABOR MANUFACTURING COMPANY, PHILADELPmA,

PA.

Reprinted by ptermission of The Engineering Magazine

Many

remedies

known

to the medical world, unless taken in

doses of the proper size and at suitable intervals, would produce

dire results or none at all, whereas, when properly administered
"
Scienby a competent physician, they are a boon to humanity.
"
to
that
class
of
be
tific Management
may
compared
remedies,

and those who see in it a cure for many industrial ills must bear
in mind that just as in medicine, fully as much depends upon the
course of treatment being suited to the patient's individual
condition and building up his strength to guard against a relapse, as upon the remedy.
It is not

new

my

desire to shake the faith of

any convert

to this

industrial teaching, but rather to outHne the course that

if success is to be met with in applying it.

There have been many instances in the past of the hasty
assumption, on the part of managers and owners, of a greater
knowledge of this subject than they really possessed; and even
today, in spite of the wide pubHcity that it has received, there

must be followed

are

many who, when

that a
"

scientific

management

is

referred to, think

cost system is meant.

Too frequently
mistaken for the substance," and an undue impor-

wage system or

the

form

tance

is

is

attached to the printed forms and other implements that

mechanism used in applying the principles.

constitute the

The most common mistakes

be guarded against are:

1. Undertaking, without suflScient knowledge and experience,
the change from the old style of management to the new.
2.

to

Under-estimating the magnitude of the task.

3.

Lack

4.

Not

of preparation.

taking the various steps in the proper sequence.

SCIENTIFIC

MANAGEMENT

5.

Going ahead too

6.

Lack

7.

Short cuts and ill-considered improvements.

27 1

fast.

of determination

and perseverance.

The

first step toward the adoption of scientific management

should therefore be an educational movement, including in its

scope every one from the directors down to the foremen, all of
whom, before any start is made, should be thoroughly familiar
with the principles and purposes of the new type of management

and heartily

in

sympathy with

Unless there

is

be

a receptive

it.

spirit

time

toward the new scheme,

spent in creating the proper

be more than made up later on.
The superintendent and foremen must be made to feel that the

progress will

mental attitude

difficult

will

adoption of the new type of management implies no criticism of

nor reflection on their abiUty or integrity, but that it is rather a

movement

to

make

their efforts

more

effective

through systematic cooperation, and that the results are to be beneficial to all
concerned.

In his paper on
before

"

the American

Society

"

presented in 1903
Mechanical Engineers, Mr.

Shop Management
of

Taylor lays great stress on the importance of the management

thoroughly acquainting itself with the new scheme before its
installation is undertaken, yet

few readers fully appreciate

importance.

The

following quotation from

out this point very clearly:

"

Shop Management

its

"
brings

Before starting to make any radical changes leading toward an improvement in the system of management, it is desirable, and for ultimate success
in most cases necessary, that the directors and the important owners of an
enterprise shall be made to understand, at least in a general way, what is
involved in the change.
They should be informed of the leading objects
which the new system aims at, such, for instance, as rendering mutual the
"
interests of employer and employee through
high wages and a low labor
and
selection
the
cost,"
development of a body of first-class picked
gradual
workmen who will work extra hard and receive extra high wages and be
dealt with individually instead of in masses; and that this can only be ac-

complished through the adoption of precise and exact methods, and having
each smallest detail, both as to methods and appliances, carefully selected
so as to be the best of its kind.
They should understand the general philosophy of the system and should see that, as a whole, it must be in harmony

SCIENTIFIC

272

MANAGEMENT

few leading ideas, and that principles and details which are admiramanagement have no place whatever in another. They
should be shown that it pays to employ an especial corps to introduce a
with

its

ble in one type of

new system just as it pays to employ especial designers and workmen to

new plant; that, while a new system is being introduced, almost
twice the number of foremen are required as are needed to run it after it is
in; that all of this costs money, but that, unlike a new plant, returns begin
to come in almost from the start from improved methods and appliances as
they are introduced, and that in most cases the new system more than pays
build a

it goes along; that time, and a great deal of time, is involved in a

radical change of management, and that in the case of a large works, if they
are incapable of looking ahead and patiently waiting for from two to four

for itself as

had better leave things just as they are, since a change of system
involves a change in the ideas, point of view and habits of many men with
strong convictions and prejudices, and that this can only be brought about
years, they

slowly and chiefly through a series of object lessons, each of which takes
time, and through continued reasoning; and that for this reason, after
deciding to adopt a given type, the necessary steps shoidd be taken as fast
as possible, one after another, for its introduction.
They should be convinced that an increase in the proportion of non-producers to producers

means increased economy and not red tape, providing the non-producers
are kept busy at their respective functions.
They should be prepared to
lose some of their valuable men who cannot stand the change and also for
the continued indignant protest of many of their old and trusted employees
who can see nothing but extravagance in the new ways, and ruin ahead.
It is a

matter of the

first

importance that, in addition to the directors of the

company, all of those connected with the management should be given a

broad and comprehensive view of the general objects to be attained and the
means which wiU be employed.
It

must be reaKzed by the owners and those

at the head of a

business that they are undertaking no easy task, nor is it one

that can be accompUshed in a few days, weeks, or months.

foundation must be built before erecting the structure, and it

may be safely stated that no results of any consequence can be
expected for at least a year, and more frequently two years, or
even three.
Scientific management is not a miracle worker.
While, as Mr. Taylor points out, the system may in many cases
pay for itself as it progresses, the owner must be prepared if
necessary to spend a considerable sum of money before he gets

and must regard this expenditure in the light of an

investment, just as he would regard, in starting a new business,
the money spent in building and equipping his plant.
any

return,

SCIENTIFIC

MANAGEMENT

273

The cost of the undertaking is greater or less accordingly as

the ground has been well or poorly prepared.
Any engineer who undertakes to direct the installation, or
rather the development, of this system of scientific management
in the works of a company where the right mental attitude does
not exist courts trouble, failure, and the ultimate enmity of his

There

clients.

this

work

is

no

use, nor is there

any

satisfaction, in

for people unless they are enthusiastic,

cooperation

is

and

doing

their hearty

assured.

who have tried it know, for a manager

make much headway with the development of a new scheme

It is impossible, as those

to

management, and at the same time carry on his regular work

of running the plant; therefore, the next step after creating the
right atmosphere is to secure the services of a competent man-

of

This
agement specialist to direct the work of reorganization.
where many failures in the past have been made.
Too frequently has the head of a concern, after visiting a plant in which
is

this

system

is

in successful operation, or after

having read Mr.

Taylor's paper on Shop

Management, employed a bright but

inexperienced young college graduate, given him the most meager
outUne of what was expected of him, handed him a few printed
Without
forms, and told him to go ahead and install a system.
proper training, experience in handling workmen, or authority,
it is but natural that he made no progress, and that he encoim-

most active opposition from the sui)erintendent, foremen, and workmen.

The management should beware of the self-styled expert
whose quaUfications consist chiefly of a stock of cant phrases
culled from the literature of scientific management, which he
tered the

glibly quotes in soliciting clients,

plete system in as
to

do

it

properly.

many weeks

some

a comwould take years

will offer to install

months

as

it

The wave

swept over the coimtry

"
experts,"

or

who

of

is

them

of interest in this subject that has

sure to bring out innumerable such
fakirs pure and simple, and others

possessing that dangerous thing, a little knowledge, and honestly

believing themselves qualified to systematize any industry under

SCIENTIFIC

274

MANAGEMENT

As many crimes will be committed in the name of

management as have been committed in the name

the sun.^
scientific

of liberty.

Assuming that the services of a properly qualified expert can

be secured, he cannot be expected to do more than direct the

work of developing the system, and training the men who are to
do the work of getting it into working order and administering
These men should be selected from the
it when developed.
existing force wherever possible, and in case they are not available, and it is necessary to bring in new men, they should be
directly in the employ of the company, and not in that of the
This is almost imperative if the work done is to
systematizer.
If new men must be brought in,
be of a permanent character.
time
before the active development
some
be
should
brought
they
of the system

become

is

and

its

quainted with the other employees.

started as

have ample time to

output and to get acThese men should be

started, so that they will

familiar with the plant

workmen.

In theory it would appear to be desirable to have an expert

with a corps of men trained in the various branches of the system

do the work

of installation, as

under such a plan

it

should be

possible to develop the system and get results much more quickly
than by the slower method of training men from the company's
The objection to that scheme, however, lies in the fact
force.

that the company's men would not feel the proprietary interest
in the system, nor would they feel responsible for its success as

they would

if

I doubt very
work at all,

meet

they had played an active part in its development.

much if a system installed in that manner would

am

quite certain that its installation would

with either active opposition or indifference on the part of

and

the supervisory force, the value of whose interest and cooperation

cannot be over-estimated.

During the period of preparation, many data can be collected

that will be of value when the actual work of developing the
system is started, and many minor improvements may be effected
that will not only result in savings but make the change to the

"
Cf.

The Mistakes

of the Efficiency

Men,"

p. 615.

Ed.

SCIENTIFIC

new methods

less

MANAGEMENT

revolutionary,

275

and more evolutionary,

in

character.
It

is

of the greatest

importance that the various steps in the

made in the proper sequence.

be
foolish
to start taking time study and
it would
instituting task work with a bonus, or differential piece work in
a machine shop, until standard conditions had been estabUshed
of the system be

development
For example,

and the scheme and mechanism for routing work through the
shop developed; yet this is what many owners and managers
want to do. Not only must the various steps be taken in the
proper sequence, but none may be omitted.
The officers and directors of a company are, as a rule, quick
to perceive and to admit the value of setting tasks, paying a
bonus, and doing those things that make it easier for the work-

man

to accomplish a large day's work,

such as keeping ma-

first class condition, and having the tools and

materials for each man's next job placed at his machine for him
in advance
but yet they think that the clerical work incident

chines and tools in

to planning, preparing written instructions and orders covering

each step should be dispensed with.
Of course, this would be
but it won't.
There can be no short
fine if it would work

If the

cuts.

adopted in

system

is

to be successful

and enduring,

it

Frequently owners and managers are encountered

"

must be

its entirety.

some features

who say

system that I think are good;

I
think
the
for instance,
laying out of the work on a bulletin
board is excellent, but I don't see the need of making out route
there are

sheets,

"
Or,

move

and inspection orders for each operation."

and bonus scheme but I do not see the neces-

orders,

I like the task

sity of

of this

writing elaborate detailed instruction cards for each

operation."

To

explain the reasons

and

principles

back of each of the

elements of scientific management would fill many volumes;

suffice to say that there is a good and sufficient reason for each,

and that all are necessary to make up the complete machine,

which will not run if one is omitted any more than the best
steam engine in the world will run if the piston is dispensed with.

SCIENTIFIC

276
The speed
upon

MANAGEMENT

at which the system develops depends very largely

and how well preparations have been

existing conditions,

In a concern that has been well managed under the old

scheme, it will be much more rapid than in one that has been
It is not only impossible, but exceedingly
badly managed.

made.

unwise to expect or attempt to correct, in a few weeks or months,

the evils and faulty practice that have crept in during years of
the old style of management.

Not only must

prejudice be overcome

by

object lessons

and

reasoning, but frequently physical changes must be effected;

workmen, foremen, superintendents, and others must be trained
to

new habits of thought and action, while at

must be no falling off in output.
If the work done and the results achieved are

the same time

there

to be enduring,
the system can be developed only so fast as the people who are
One of the most difficult
to use it and live with it can absorb it.

and trying tasks of the man directing the development of a system of scientific management is to curb the impatience of the
owners at certain stages, and at others to sustain their courage
and faith.
Once it is decided to adopt scientific management, and its
development is started, it must be clearly understood by everyThere can be no halfit is going through.
"
in
no
no
course
this
ifs,
respect,
giving it a fair trial."
way
More good things fail through being " given a fair trial " than
for any other reason.
They are damned from the start. There

body concerned that

must be a determination to make it go, and if at first it does fail

to work at any point, no one must be permitted to say supinely,
"
we tried it, but it did not work." Then is the time to go at it
with renewed vigor, backed up by unwavering faith, and keep
at

it

until it does work.

Failures of

much to the obstacles encountered,

any

sort are not

due so

as to the lack of determination

Nothing has a more demoralizing effect

than any semblance of wavering on the part of the management,
the slightest evidence of which communicates itself throughout a
to overcome them.

working force in a most imcanny way, producing a

spirit of in-

SCIENTIFIC
difference, incredulity,

MANAGEMENT

ZJJ

and often insubordination that increases

the difficulties of the task many-fold.

"
The tendency to " jump fences and take short cuts

must be

guarded against, especially on the part of the higher officials,

who are more inclined than any one else to make this mistake.
In the change to functional management, it is rather difficult for
a man whose authority and responsibilities have covered every
to keep within the lines and to transmit orders through the
The natural inclination for these men, when
proper channels.

field,

they desire information or want anything done, is to go directly

to the man in the shop who, under the old order of things, would
be the right person, ignoring the fact that under the new scheme

man is completely changed, and that the

should
have
been made to the planning department.
application
In such cases the man in the shop should of course refer him
the function of this

back to the planning department, but his respect for the authority
of the higher official as he knew it under the old scheme is so
deeply rooted, that he instinctively and with the best intentions
proceeds to act on the orders received, which may be directly
at variance with those of the planning department, as well as
outside the range of his duties as defined by his new function,

and

confficting with those of another.

During the early stages of the development there must be

many things done which at that time do not appear to serve any
purpose, but which are the foundation and framework for future

and are

for that reason of the greatest importance.

be well meant criticism of everything done, and
suggestions galore of better methods than those installed, especially in regard to the forms and appliances and their use; but

steps,

There

if

will

progress

is

to be

be disregarded.

made, these suggestions and criticisms must

must be realized that the methods and

It

mechanism of scientific management are the result of years of

evolution and development, and that they have been adopted as
necessity made itself felt.
Many apparently better and quicker
suggest themselves have been tried, found
and
discarded
impractical,
years ago, and are what is known in

ways that

will

the vocabulary of scientific

management

as

"

Damned

improve-

SCIENTIFIC

278
ments."

mechanism

do not mean

to

MANAGEMENT

imply by

this that the niethods

and

management cannot be improved upon,

but they are the best that are known today to those who have
made its study and appUcation a Ufe work. With almost every
instance of its installation some new and better element is found
and adopted, but the only safe and economical course is to get
it

of scientific

working in its existing form before undertaking to improve it.

It might be added in conclusion that the undertaking must be

much

good of the workmen as for the stockholders,

and that its aim must be to help them, through systematic and
practical cooperation, to produce, in many cases with less effort,
as

for the

much more work than

unreasonable exertion.

formerly, rather than to drive

them

to

Feverish haste, driving, injustice, and

have no place in scientific management, and it must be

recognized from the start that the square deal, and a proper
regard for the workers' welfare, both physical and otherwise, are

bluff

essential to success.

ON THE ART OF CUTTING METALS

SELECTIONS FROM THE DISCUSSION OF US. TAYLOr's PAPER
Reprinted by permission of The American Society of Mechanical Engineers

Mr. Calvin W,

As an incident to the introduction of

became necessary to conduct the
shop

Rjce.

system in a certain
experiments of which the presidential address is a resume. I say
an incident, but it would probably be more correct to spieak of the
it

address as a record of

many

incidents to the introduction of the

Taylor system.
2.

The system

is

universal of application,

and the mastery

of

the art of cutting metals was simply one of many things to do to

make a success of the system. As the system is applied to other
industrial establishments, we may in turn expect pap)ers on the
arts pertaining to them, such as the art of bleaching cotton
goods, etc.
Mr.
3. This situation is not peculiar to the Taylor system.
Edison has been busy the last few years not so much in inventing

a storage battery as in the development of the art of the manufacture of materials that go into the composition of the battery.
it not a digression I would like to go into the subject in

Were

detail.
4.

ing.

Therefore the good from modernizing engineers is far reachThis fall I had the opportunity to visit the Sayles Bleach-

I., where the Taylor system is

and
with
being introduced,*
your {permission, I will offer as a
discussion on this paper a few remarks on what I saw there,
the object being to show the applicability of scientific method
and the benefit derived from such application to any form of

eries,

located near Pawtucket, R.

industry.
5.

It

is

well to observe here that one cannot effect these im-

provements without,
*

Under the

first,

complete submission of the manage-

professional direction of
27Q

Mr. H. L. Gantt

Ed.

'

'

28o

SCIENTIFIC

MANAGEMENT

ment

of affairs to the one introducing the system,^ and, second,

additional people to the regular establishment.
There is no
between
the
old
and
the
new
because
compromise
they are

fundamentally opposed.

It is only folly to try it because

it is

physical impossibility for the regular staff both to conduct the

regular business and simultaneously master and apply the new

system.

In the Sayles Bleacheries I was permitted to compare the

record of the output of certain rooms before they began to intro6.

is now being done, and even in the

most simple matters, namely, folding cloth, the increase in output
was very great, individual cases fivefold, and the increase of
individual wages 20 to 40 per cent.
The cost per piece was of

duce the system with what

course reduced.
7. Improvements in other bleacheries, competitors say, have of
course been going on also, so that the Sayles have no monopoly in
this regard, but what they do have over their neighbors is a better

employees with higher individual wages, freedom from

labor difficulties, because the Taylor system does not conflict with
the bulls of labor unions, and more than all, an organization
class of

capable of indefinite expansion to meet any emergency.

8. It would be out of place, and perhaps breach of confidence to

go into further

details.

Suffice it to say, that in this

world of

competition intelligent organization based on scientific investigation is the sine qua non of success and that no amount of work or
years of investigation necessary to obtain the result should deter
the investigator.

Mr. H. K. Hathaway.
able,

that

and is highly proband

managers of machine
many superintendents
It

is

to be hoped,

shops will undertake to make use of the invaluable data that

Mr. Taylor has so generously made available to thousands, who,

through limited facilities and time, would otherwise be unable to

acquire more than an inadequate and superficial knowledge of
^

Since this discussion the practice of the Taylor group has changed, and it is not
for the management expert to take executive control of the business.

now customary
His fimction

is

now

that of adviser and instructor with executive power applied only

to the development of his system work.

Ed.

MANAGEMENT

SCIENTIFIC

281

important branch of manufacturing, and that as a

manufacturing worid may be as greatly benefited by

this vitally

result the

exact knowledge of what can be accomplished in cutting metals,

as it has already been benefited through the invention and general
use of high speed steels.
2.

I should like,

that will confront

however, to call attention to a grave danger

who undertake to attain the results that

all

Mr. Taylor has shown to be

guarded against,

will

cause

all

possible, which, unless properly

such attempts to end in disastrous

This danger is, that despite the

and disappointment.
fact that Mr. Taylor has clearly stated the necessity for first
establishing such conditions as will make it possible to always and
"
definitely answer the
questions which must be answered each
in
machine
as to the kind of tool, the feed,
shop,"
day
every
of
cut
to
be
and
used, and to make use of the answer
depth
speed
failure

undertake to apply the knowledge

contained in Mr. Taylor's paper without any preliminary prepn
aration to insure the successful outcome of such an attempt.
after it is given,

3.

In

many

many

will

cases such

running the machine,

an

when

effort will cease after the

workman

told to use a certain feed, speed, or

depth of cut, replies in a convincing manner that the machine

won't stand it, or that the job he is working on is of such a peculiar
"
"
it or
nature that such a heavy cut would sjwil it by
springing
"
If
come
out
of
round."
the
foreman
is
still
unreait
making

sonable enough to insist upon his trying it, he will either quit, or
proceed, more in sorrow than in anger, to prove the truth of his
statements, and the foreman will probably lose heart after the
following things happen: The cone belt will slip and have to be
tightened; next the countershaft belt will slip and have to be
tightened, then if the belts pull the cut without breaking in two
or pulling out at the lacings, it will be found that the carrier,
driver or chuck will not hold the job.
4.

After surmounting these

break or

fall

diflSiculties

and having the

down through having been improperly

treated

tool

and

ground, the foreman will find that for about three hours he has
neglected important matters in other parts of the shop and will

conclude in the future to mind his

own

business and leave such

282

SCIENTIFIC

MANAGEMENT

matters as feed and speed to the judgment of the

man

running

the machine, who from his daily experience ought to know

better what the machine and tools will do than any one else in

the shop.

Having been through all this myself, I know pretty well the
opposition and difficulties that will be encountered, and feel that
too much stress cannot be laid on the importance of overcoming
them before they have a chance to arise, and I have become a
5.

it is

"

"

otmce of prevention
theory, provided
in
a
not
applied,
spasmodic manner, but systematically and

strong believer in the

continuously.
6. To cite an instance of what may be expected when one
undertakes to speed up the average shop, I should like to mention
an experience of my own that happened a few years ago, when

after

having passed through the various stages from apprentice

"
overseer," in the machine shops of the Midvale

to foreman, or

Company, where I was accustomed to see rapid and heavy

cutting, and also men obeying orders as to speeds, feeds, etc., and
to have belts heavy enough and maintained to a tension that
Steel

assured their pulling

all

that the tool would stand, I accepted a

position as superintendent with a small concern, where the work"

overworked foreman,"
men, under the sole direction of one

ground

own

their tools to suit themselves, repaired

belts,

and followed

their

own judgment

and cared

for their

or inclinations as to

the feeds, speeds, cuts, and kind of tools to be used.

7. I was amazed at the light cuts and slow speeds I found in
vogue, as well as the many peculiar shapes of tools in use, and

attempted at once to get things up to the speed that I had been

used to at Midvale, with the result that I encountered all the
obstacles previously enumerated and found that the custom in
that shop,

when a

belt slipped,

was

to reduce the speed or feed

to a point where it would pull, as the workman reasoned that

less trouble to do so than to tighten the belt.

it

was

8. Another drawback to using the proper feeds and speeds was

that the tools were of every conceivable shape and kind of steel, a
bar or two having apparently been bought from every tool steel

salesman

who came

along,

and as the workman had no means

of

SCIENTIFIC

MANAGEMENT

283

identif3dng the tools made of good high speed steel from those
made of old carbon or early self-hardening steels, he ran the speed
suited to the latter, to be sure that his tool would not give out

during a cut.
9. After I had managed to get the belts, tools, and driving
mechanism on a few of the machines in such a condition that

something like the proper speeds and feeds could be used, I

"
found that it was utteriy impossible, with one
overworked
"
foreman (who did not take very kindly to my notion of speeding
up, anyway) to insure such conditions being maintained continuously, and that while I might get a workman to run the
proper speed on a certain job today, if left to himself the next

time that job came up he would be running the same old speed
and have the same old reasons for doing so.
10. About this time I learned another fact that has since been
of great value to me, and that is, it is exceedingly unwise to expect
to attempt to correct the evils of years of bad management and
faulty shop practice, or to bring about a change from the miniof efficiency to the maximum of efficiency in a few days or

mum

weeks or even months.

11.

mium

In the shop referred to, I attempted to install the preplan, based on carefully kept records, which I later found

to be absolutely inaccurate and unfair, and to get the shop up

to the speed that I knew to be possible, in about three months'

had a
which
hands
the
pretty nearly put
my
company down
because
I
at
the
and
and out,
solely
began
wrong end, instead of
time, with the result that at the expiration of that time I

strike

on

taking steps to insure the success of my efforts; first, by

and making such improvements in the belting,
and
tools,
appliances as were necessary in order to make it

first

standardizing,

possible to get the

same

results as

were being attained at Midvale;

secondly, by providing a system or mechanism for keeping them

up to the standard once attained; thirdly, by replacing the one
"
overworked foreman," who was expected to know it all and do
it all,

each

by a planning department which would each day

workman a

definite task to

assign for

be performed in a definite time,

and prepare instruction cards showing just how each should be

SCIENTIFIC

284

MANAGEMENT

done and what speeds, feeds, and tools should be used, and by
several functional foremen in the shop, each of whom would have
specific and well-defined duties, for which his temperament and
training fitted him; who would cooperate in seeing that all work
in the manner planned and that the standards were

was done

maintained.
12.

It seems to

me

that

my undertaking

to apply in this shop

the feeds, speeds, and cuts that I had used, and seen used continuously at Midvale, is analogous to undertaking to apply the
"
"
contained in Mr.
information on the
Art of Cutting Metals
Taylor's paper, in the average machine shop without any previous
preparation to insure a successful outcome of such an undertaking,

and it is devoutly to be hoped for their own sakes, and in fairness

to Mr. Taylor, that all who do hope to benefit by Mr. Taylor's
vast experience in this hne will begin at the right end and in the
right way which Mr. Taylor has pointed out and which I am convinced, from

my

experience in the matter, hes in the application

"

of the principles set forth in his paper

on

Shop Management,"
and which can only be successfully applied through a system of
functional management, where every man from the manager
down has a definite task to perform in a definite way and by the
estabHshment and maintenance of rigid standards.
be
13. Unfortunately such a system as Mr. Taylor's cannot
bought and dehvered in a box, but must be installed step by step
until the final goal is reached,

workman each day

when a

definite task is given each

advance with detailed written instructions

and an exact time allowance for each element of the work, and
this installation calls for such an amount of hard work, close and
in

and minute study of conditions as to

any man who has routine work to do in
connection with the running of a plant, to undertake it with any
hope of success, but will call for the undivided attention of an
experienced man, who must have the heartiest and most sincere

incessant following up,

make

it

impossible for

backing and support of the management in the face of the opposiEven then,
tion and prejudice that is sure to be encountered.
from
the old to
of
revolution
the
there will be times during
period
the

new system

of

management, when

it will

appear as though

SCIENTIFIC
the business

is

going to ruin,

MANAGEMENT

when

285

the greatest faith in the sound-

upon which this system is based will be

required to carry one through them, but the reduced costs,
increased output and harmony that are bound to result in the end
ness of the principles

are sure to

pay many times over

red in making the change.

for the labor

and expense incur-

THE

WHICH SCIENTIFIC MANAGE-

SPIRIT IN

MENT SHOULD BE APPROACHED

By JAMES MAPES

DODGE

CHAIRMAN OF THE BOARD, THE LINK-BELT COMPANY, PHILADELPHIA,

Reprinted by permission of the

Amos Tuck

PA.

School of Administration and Finance

"

The

old saying that

each one of us endeavors to measure all
in
his
own
things
pint pot," I am free to admit, applies very well
to me, for while the title which has been assigned to me assumes

a much broader treatment than a mere

draw

recital of personal feelings,

on personal experiences, disthem

the
by eUminating
guising
personal pronoun and giving
them an air of general appHcation. In this endeavor, therefore,
let us talk of the spirit in which we approach Scientific Managethe best I can do

is

to

freely

ment.

The term

Scientific Management is possibly not the best;

establishments
that can lay no claim to any comprehenmany
sive scheme of organization contain within them elements of

successful

management.

in speaking of
of

Mr. Taylor in

his

treatise

on the

"

The Art of Management," while others

Mr. Taylor's work refer to it as a " Conservation

subject used the

title

Human

tainly,

Efforts through the Art of Management."

Cerwhere human elements are introduced into a problem,

methods alone will hardly achieve a complete solution.

must be a combination of scientific analysis and methods plus
consideration for the interest and well-being of the workers,
and tact in meeting their inherent resistance to change, or their
natural prejudice against something of which they do not underscientific

It

stand .the

full

import.
have taken care of this

Many
human

concerns succeed because they

side of the problem,

even though

they lack scientific methods of procedure and exactness of inforOther concerns which expect to reduce management
mation.
to an algebraic formula fail in the attempt because they neglect
to foster growth

and

initiative in the
286

working

force.

These

MANAGEMENT

SCIENTIFIC

287

concerns have lost sight of the human side of the problem.

Truly Scientific Management takes account of both sides of the

problem, and the method of approach should

lie

along both of

these lines.

The most

primitive form of management exists in those

''
carries his office in his
establishments in which the owner

When the establishment grows beyond the capacity of

the contents of one hat, power and responsibihty are delegated
Costs go up,
to others, until these too become overtaxed.
for
a
further distribution of
deUveries fall off, and the necessity
hat."

This gradual delegation

authority and responsibility arises.
and subdivision of authority and responsibility is characteristic
"
of what Mr. Taylor terms the
Mihtary System of Manage-

Under

the shops are run almost entirely by the foremen, and the actual work is performed by men working under
The foremen have ideas of
constant criticism and goading.

ment."

it

management more

or less at variance with each other, but the

proprietors accept the results as the best that can be obtained,

without any proper or regular investigation.
The workman

who

the gate is supposed and expected to be an expert,

no
or help the foreman is exp)ected to know
instruction
requiring
how to perform all the duties of his position, and the superintendent is assumed by the owner to know how to manage shop
calls at

In such a form
from
the
head
management, criticism
goes completely down
the line, gathering in vehemence and force as it proceeds, while
praise extended from the top usually penetrates only as far as

affairs to the practical limit of the possibilities.

of

the superintendent's

office.

Despotic authority which manifests

itself in

harsh criticism

or tyrannical treatment of the men is undoubtedly the characteristic feature of this form of management.
Money returns are

the only gage of success, and that foreman is best who can force
from his men the greatest amount of work with the least possible

From such methods the men have no redress

compensation.
to
seek
except
employment elsewhere. The general recognition
of the fact that the workmen have rights and that the remark,
"
You don't have to work here imless you want to " is not a

288

SCIENTIFIC

MANAGEMENT

proper answer to a legitimate complaint, is one of the factors

which is creating a demand for a general change in methods of

management.
It is a serious thing for a worker who has located his home
within reasonable proximity to his place of employment and
with proper regard for the schooling of his children, to have to
seek other employment and readjust his home affairs, with a
loss of

time and wages.

only of this

fact,

Proper management takes account not

but also of the fact that there is a distinct loss

when an old and experienced employee is rewho must be educated in the methods of
a
new
man
placed by
An old employee has, in his experience, a
the establishment.
to the employer

potential value that should not be lightly disregarded, and there

should be, in case of dismissal, the soundest of reasons, in which

personal prejudice or a temporary mental condition of the foreman should play no part.

Constant changing of employees is not wholesome for any

establishment, and the sudden discovery by a foreman that a

man who

has been employed for a year or more

is

"no good

"

often a reflection on the foreman, and more often still, is wholly

All workingmen, unless they develop intemperate or
dishonest habits, have value in them, and the conserving and
is

untrue.

increasing of this value

is

a duty which should be assumed by

humor and sense in the declaration

There is
their superiors.
of the colonel in the Pirates of Penzance, "^ I lead
regiment
"
for instead of spurring
from behind, I find it less exciting

my

men on by damning them from

the front, it is more profitable

in
industrial
the
more
effective
and
campaign to extend a helping
hand to those in the rear, furnishing them with proper manual
and mental equipment to keep up with their fellows.
Under this method the most successful superintendents and
foremen are those who can best aid and encourage their subordinates to make the most of themselves and their opportunities,
removing obstacles from their paths and enabling them to earn
greater rewards without overtaxing their mental and physical
abihties.

In other words.

Scientific

Management

the cultivation of the best productive methods.

consists in

Information

SCIENTIFIC

MANAGEMENT

89

much more economically be ascertained by the leaders, and

the knowledge transmitted to the workingmen, than it could be
were each man to endeavor to ascertain it for himself.
can

Probably with

us

more

accept a modithan to absorb a most startling or revolutionary new idea which does not call for any reversal of a notion
So in this matter of manageto which we have tenaciously held.
ment it was, and is, and always will be essential for us to keep
all of

it is

difficult to

fication of a belief

a hopeful equilibrium during transition from our old to our new

and this transition period is certain to be a trying one.

love;

In the establishments with which I

came slowly

to nearly

all,

and some

am

connected conversion

of those

who,

it

would seem,

should logically have accepted the innovation with avidity,

of such acceptance.
Those

seemed temperamentally incapable

who

live entirely in the present, without thought of the future

or of the past, can easily acquire the habit of doing things in a
new way; but those having active minds are apt to waver be-

tween the necessity of advancing a decision and the fear of error

Even a measure of intelliborn of caution and imagination.
an
ardent
show
that
accepter of Scientific Managegence might

ment and a man unalterably opposed to it in every form, are of

There is temperamental sectarianism
the same brain capacity.
in every profession and walk of life, inexplicable because tem-

We all know men who feel that no

perament is inexplicable.
for
them
as well as they can do them for
do
one can
things
themselves.

It

is,

of course, possible that there are certain

things that the individual can do for himself better than any
one else can do them for him; but there are, undoubtedly,

thousands of things which can be better done for him by others.

Should a man decide that before he looks at an eclipse he must

become a thorough astronomer, he will, of course, eventually

gain more from looking at the eclipse than those who rush out
at first call and are satisfied to wonder at the phenomenon; but
this same temperament might lead a man, if taken sick, to study
the medical art until he had become a graduate physician, or to
decline to deposit his money in a bank until he had mastered the
intricacies of banking, and so on in all the accepted matters of
/

SCIENTIFIC

ZgO

MANAGEMENT

lives.
So it is with some in considering the question of
management; instead of investigating in an open-minded way
the logic and results, they elect to question every minor step and
consider that they must be accorded a complete vindication and
proof of the other man's ideas before they are willing to lessen
In other
their grip on preconceived and opposing convictions.

our

words, we haven't mental legs enough to permit us to maintain

a position of straddling both sides of every presented question.
It is therefore essential, in order to use the

new system

of

man-

man have within him a desire to travel in that

and that he aid to the best of his abiHty in the removal
real or imaginary obstructions, rather than hold back

agement, that a
direction,

of small,

and allow

progress to be brought about by the pressure

of the breeching, or the pull at the halter.
As a matter of fact,
If we
it seems that all of us need Scientific Management.
all his

naturally have

it

in sufficient quantity

we

certainly need

what

If we have none at all,

have, but may not need any more.
would be absolutely ridiculous to say that we could not make

we
it

good use

The degree and quantity are regulated,

much by our thoughts as by the invincible logic

of some.

possibly, not so

of progress and existing conditions.

It would of course be ridiculous for

an employer of one man

Mr. Taylor's " Art of Management," but if he were familiar with some of the underlying principles promulgated by Mr. Taylor, it would undoubtedly be of
The question of exactly how large an establishvalue to him.
ment should be or how small an establishment may be to introduce Scientific Management in it with profit and success is of
to undertake the introduction of

course impossible of numerical answer, because it is dependent

It might be likened to what we call
upon so many things.
civilization.

There can be no dissent to the general statement

if by civilization we mean
and in detail that is properly a part of the
system of civiUzation, it would be very difficult for any one to
say, provided an uninhabited island were discovered in the

that civilization

is

beneficial, but,

everything in general

Pacific Ocean, that in colonizing

could be applied to

five, ten,

it,

civilization in its fullest sense

one hundred or some other definite

SCIENTIFIC

number of people.
one person on
elements of
it

MANAGEMENT

29I

At the same

time, it is quite evident that even

would be immensely benefited by some
In fact, so important would
civilization.

this island

modem

be to this individual that his very

life

might depend upon

it.

On

the other hand, if some overwhelming power should decree

that he must use every bit of civilization, his speedy demise

would be absolutely

certain;

and so

it is

in the

matter under

Life is too short, individuals and people too circumscribed by their senses and surroundings, to see, feel and
believe that they need Scientific Management in its entirety.

discussion.

Nevertheless, no establishment is so small, no business so primitive, but that Scientific Management has details or suggestions

This would indicate that there is no way

that would be helpful.
to define exactly the spirit with which each individual or establishment should approach this subject.

It

may

for all time

be

governed by temperament, training and the necessities of each

Of course, if an individual has inquired into

individual case.
Scientific

Management with a view

ammunition with which

to

blow

it

to adding to his stock of

up, and to pose among his

friends as a person of superior intelligence because he says a few

bitter or apparently clever things in opposition to the

wave

remarkable

awakening throughout the civilized world,

no good is gained; on the other hand unthinking, untrained
acquiescence is probably equally wide of the mark, and only a
of managerial

conscientious investigation of the subject will indicate its value

its best plan of application.
"
Let us assume that a man having heard of the Taylor Sys"
tem is possessed of the idea that he would like to find out

and

It is more than likely that this individual

something about it.
has been in the commercial rather than in the practical side of

manufacture, and he

may

be entertained because he has heard

rumors that economy is effected and that profits are augmented

by the system. Should he send for all the papers that have been
published on this subject by the American Society of Mechanical
Engineers and read them, however carefully, I fear he would

become somewhat confused, inasmuch as a great deal that has

been written in these papers, not being directly in

line

with his

SCIENTIFIC

292

MANAGEMENT

personal training and experience, would be obscure and difficult

He would, however, gather from it that an
of understanding.
effort for

that

economical production had certainly been made, and

on different lines from those efforts which might be

of an older school."
On the other hand, should the indi-

it is

called

"

vidual be entirely of a mechanical or a manufacturing turn of

mind and

of only corresponding experiences, his reading of this

literature would set in motion an entirely different train of

He would fthd much more in the papers intelligible to

thought.
him, but as many of the statements would be apparently at variance with his own pre\dous experience, he would be inclined to
be very critical of minor details, although in general acquiescent
In both cases, however,
with the main ideas of the papers.
there would be an awakening of interest in the subject which

would not be easily put to rest without further knowledge.

Then would come a period of discussion with those having
interest in the subject and the clarifying of a great deal which
was at first obscure and vague. This result is brought about
by a lapse of time, and time is as necessary an element in making
a proper impression on the human mind as it is in making a
In the latter
proper actinic impression on a photographic plate.
case we have slow plates and quick plates, and they are acted
upon by wide angle, telescopic and numerous other lenses; but
human beings have the lenses of their senses sometimes out of
focus, which has a potent influence in the registration of impressions

their minds.

After these

are registered,

upon
impressions
some
some
some
slowly,
quickly,
befogged by over-exposure,
others deficient on account of under-timing there comes
another necessary and essential lapse of time, and that is in the
of the impressions, either in our brain or on the

development

photographic plates, as the case may be. Now, this development

usually a much greater absorber of time than the mere register-

is

ing of the impression; and then after the exposure and develop-

ment comes another

period,

much

longer

still,

never-ending, and during which proper use

is

and which may be

made

of the

now

Photographic
many, but
developed impressions.
as
mental
not
so
numerous, proportionately,
failures;
probably
failures are

SCIENTIFIC
so

MANAGEMENT

we must make ample allowance

293

for variations in the impres-

sions which, apparently, the same exposures

may make on

dif-

ferent mentalities.
It is almost needless for

me

to say that the mentality

which

impressions with proper speed and

useful forms is the one that I
them
into
their
most
develop
must talk about, otherwise my task would be endless and your

would receive the

initial

interest entirely used. up.

We

will therefore

assume that an

individual has received proper impressions, that they have been

properly developed, and that it has become his earnest desire

properly to introduce Scientific Management into his establishThe first step, even though he is the sole proprietor and
ment.
theoretically can
to interest

some

do exactly as he
of his associates.

pleases,

must

This he

be
have

of necessity

will find, as I

previously stated, is not in every case an easy projxjsition, for

the reason that temperamental differences in individuals will
require varying degrees and kinds of explanations, and the setting
He
forth of the reasons in different mentally palatable ways.
will of course find, when he approaches his subordinates and they
in various degrees accept his views with the feehng that

something
can be done of advantage to the establishment, that in no case

management

men

consider that anything in this new-fangled

business should be in any way applied to them,

will his leading

though they can see with greater or less degree of certainty

that it would be admirable for everybody else in the place. The

problem of overcoming this mental condition is the most diflScult

The very fact that the leading men of an establishment
of all.
are beholden to their cleverness and independence of thought
promotion makes it certain that they will not hesitate
combat the views of their superior, if in their judgment it

for their

to

seems best.
blindly
sary.
it will

men

In other words, they are not disposed to take orders

ill-advised or unneces-

and do that which they consider

Consequently they will ask many questions, and probably

be necessary and desirable to send some of the leading

out as investigators to go through other establishments and

what results have been obtained from the

see for themselves

innovation.

When

they return they

will

not only have seen a

SCIENTIFIC

294

MANAGEMENT

be entertaining to them, but will be in much

better shape to discuss the subject further with their employer.
Then comes the period of incubation of the best plan to pursue

good deal that

will

in beginning the actual

work

of the introduction of Scientific

establishment has good use for all of its

Management.
leading men and they are properly and rationally busy, it is quite
obvious that they cannot devote their time to the acquisition
If the

and introduction

of all the details of Scientific

Management, as

well as keep up with their regular lines of work.

Therefore it is
desirable to call in the services of some one who can bring knowl-

edge and experience to play, to begin the actual introduction.

As soon as this is done two forms of activity manifest themselves;
one, strange to say, not the easiest to regulate, is the well-meaning
unasked-for assistance to the introduction which usually takes

the form of suggestion of improved methods in details that are

clearly improvements in the mind of the suggester, but are impos-

acceptance on account of a conflict with other portions

system to be introduced. This form of activity may be

sible of

of the

likened to a chorus in which

more or

less

volume

many

of the individuals decide that

of sound, or a

change of tone or time, would

be better than to follow the dictates of the leader and to sing the
music as set before them. The other development is one either

open or sullen opposition.

Frequently proper explanation
and patience will overcome this form more easily than the other.

of

The

over-zealous cannot be properly curbed without their feeling

"
"
that they have been
I am
sat upon
or harshly dealt with.
of
these
as
were
which
speaking
cropped up
though they
phases
and could be disposed of. They can be disposed of in time, but

again the time element comes in, and courage, patience and perseverance are required on the part of those at the head of the
concern to a much greater extent than would be dreamed of
before they had had the experience.
A great deal of care and thought

must

of course

maintain the business of the establishment in

changes are being made,

be given to

all its details

and to avoid having

clashes

while

and con-

methods work hardship to the customers or to the profitshowing of the concern. It is quite obvious that it will be only
flicting

SCIENTIFIC

MANAGEMENT

295

a short time before two systems are being used in the same
establishment, and

up with

it will

require

all

this state of affairs until the

the ability available to put

new displaces the old; and

is the most trying time for the

leading men all
the
in
because
the
stores
establishment,
through
department,
order department, shipping department, and, in fact, all the

probably this

departments, extra work and vigilance are required of every one

may be reduced to its lowest point.

in order that the confusion

In spite of everything, however, there will be days when it will

take courage on the part of individuals, and, in fact, courage on
the part of the whole management, to keep moving manfully
ahead and not to be stampeded by the trying conditions. After
a while, however, the benefits of the system will begin to manifest themselves so strongly and the new methods will reveal

themselves so satisfactorily, that all will become buoyantly

and work with redoubled vigor to hasten the entire

interested

consummation of the introduction.

So far as the workmen themselves are concerned very
difficulty is

workingman should

little

It is essential,

however, that the

be told the exact truth, and under no

experieaced.

circumstances should anything be done which has even the

He must appreciate
appearance of taking advantage of him.
that his interests and those of his employer are mutual, and that
their happiness and success depend upon mutual trust and con-

employers think that by the introduction of

Management they can gain an advantage over the
workers, they are making a serious mistake and wasting their
efforts in what will eventually turn out to their great and lasting
sideration.

If

Scientific

disadvantage. The whole scheme is one of mutual advancement

and the corner-stone of the temple of the " Art of Management "
is truth; the abutments must be truth, and
every stone in the
structure must be truth.

Herbert Spencer said that there is a principle which

against all argument, and which cannot fail to keep a
everlasting

ignorance;

investigating.

this

principle

is

to

is

proof

man

in

condemn before

THE SUCCESSFUL OPERATION OF A SYSTEM OF

SCIENTIFIC
By

Lieut.

MANAGEMENT

FRANK W. STERLING

Reprinted by pennission of

The American

Society of

Naval Engineers

The

object of this paper is to present the practical working and

routine of a system of modern management as applied to a plant,

and particularly to describe the planning and production, perThe system at this
sonnel, routine, forms and cost keeping.
since
its
much
been
has
installation, resulting in a
simplij5ed
plant
decrease in the non-productive force, simplification and reduction
in the number of forms used, abandonment of the mnemonic classification of stores (in this respect I

am firmly

convinced that the

mnemonic classification of tools should eventually be abandoned),

The mnemonic classificaand numerous other improvements.
tion of stores is impracticable

where a large variety

is carried.^

In some cases it was found that functions performed by two

men could be done by one, and in addition to reducing the nonproductive force a move of forms was avoided, thus decreasing
the planning time.

All this developed as the planning depart-

became expert and individually were capable of pervaried functions.

more
forming
In comparison with the other plants I have visited this one

ment

force

leaves a very strong impression of thoroughness, simplicity, economy and success. Six weeks' study of the working of their

system confirms my opinion on all the above points.

The system employed was originally installed by Mr. F.

W.

Mr. Taylor's
Taylor and
It has been modified as experience and necessity have
system.
dictated and has been simplified to such extent as to excite most
favorable conmient. All changes have had Mr. Taylor's acquiescontains all of the essential elements of

cence.
1

the

This conclusion is not borne out by experience. On the contrary, the value of
mnemonic classification has proven to be greatest where the number and variety

of stores carried is largest.

Ed.

396

SCIENTIFIC

MANAGEMENT

297

Distribution of Personnel
Productive force, in

% of total of men employed

67

Planning department

Draftsmen
Clerks, etc.,

15

main

offices

13

Organization
(Chart I to be read concurrently.)

Since the position of assistant sup)erintenSuperintendent.

dent has been abolished the superintendent's functions have
become very comprehensive, combining general management of
planning, shop and production, with general sup>erintendence of
His executive power is in proportion
the planning for personnel.
to his functions, being absolute in the planning department,
shops, shipping, employment and to a certain extent in the pay

department.

Planning Department.

The function of the planning depart-

ment

is to aid production by allotting the work, routing and laying it out, designating the tools to use, speeds, feeds, cuts, etc.,
to take on the machine, drawing and inspection cards numbers,

and any other data that

Since the system was

will facilitate

production.

installed in this plant the planning de-

partment has been gradually reduced until no further reduction

The smallness of this department (7 of the size of
is possible.
This rethe productive departments) impresses itself at once.
duction has been made possible by gradually simplifying the

original system, although the advocates of this

it a paragon of simplicity.

system consider

Comparing the planning department with one other very successful one in the same city, we find that, whereas this one has

7% the other remains at about 35% of the proThe fact that both plants have been very
ductive shop force.
Even in scientific management
successful induces thought.
there are, apparently, many ways of arriving at the same result,

been reduced to

and the old arbitrary methods of the foremost teachers must

eventually make way for common-sense methods based on earnest
thought and managerial

ability.

298

SCIENTIFIC

MANAGEMENT

Chart

I.

SCIENTIFIC

The

few, four

299

on scientific management that I attended

must be " thus and so," and that only a limited

lecture

first

taught me

MANAGEMENT

that

it

men, as

I recollect, in this

whole coimtry, were thor-

and

successfully to initiate any comThis was also impressed

into the secret rites of this society.

oughly competent proi>erly

pany
on me at some

of the shops this sunmier.

have learned, how-

ever, that a real manager at the head of the system is^the secret
The form of system, if there is a well-formed
of ultimate success.

plan behind

it,

will

be a gradual evolution depending upon the

The system in itself cannot produce

necessities of the plant.

results with

an incompetent personnel, whereas a manager of

very high efl&dency assisted by a competent staff will inevitably

This efficiency and compedevelop the most suitable system.
tency must, however, be of a superlative order.
This is not intended to criticize scientific management or any
particular system, but only to emphasize the point that the

manager
manager

the

is

is

first requisite,

that success

is

impossible

if

the

not mentally and temperamentally fitted to the

work.

This consists of
The Planning Department Personnel.
Planning department foreman,
Piece work and time study clerk,
Route clerk,
Rate setting clerk,
Order of work clerk.
Production and shipping clerk,
Balance of stores

clerk,

and a number of clerks and assistants.

The head of this planning

Planning Department Foreman.
be
the
called
Planning
Department Foreman.
might
department
His function is to develop coordination between the different
parts of the planning department, and between this department
as a whole
tion.

He

in such manner as to facilitate producshop and planning department questions

and the shops,

decides

all

He is in
which do not require the superintendent's decision.
effect an assistant superintendent, and general planning room
and shop foreman.

SCIENTIFIC

300
Piece

MANAGEMENT

Work and Time Study

Clerk.

This clerk does not

fit

into the routine of the planning room, as he has nothing to do

with routing or handhng orders as they go through.
His func-

His principal duty is to superintend

and extend the piece work system in the plant. To this end he
takes time studies from time to time, is continually tabulating
tions are solely constructive.

data to simplify rating, constructs slide rules for new machines,

and any other shde rules from the master slide rules, decides
questions concerning piece work, as for example, failure of a man
to make an established standard time, etc.
He is very essential
to the system.
The functions of the remainder of the planning room clerks
will be shown later as an order is followed through the depart-

ment.

The

clerks

and

mentioned are:

assistants

Clerk at issue window, issues the blue prints and instruction

cards.

Assistant to rate setting clerk.

Assistant to order of work clerk.
Assistant to production clerk.

Three stenographers to typewrite orders,

master time cards,

Two

of material,

boys to sort cards by operations, make out stores and

worked material

Two

bills

etc.

issues slips, etc.

boys at hectograph.

One boy

to assist shipping clerk.

These clerks and assistants are

all

boys,

who

receive compara-

tively low wages.

General
All

men

boys, that

in the planning department except stenographers

is, all

having important duties,

and

have come from the

shopmen who have developed into

The value of their knowledge
experts at their present positions.
of shop methods is obvious, in fact in most instances this knowl-

shops.

They

are practical

edge is imperative. Furthermore these men are expert not only

at their own billets but in all cases are conversant with the work

SCIENTIFIC

MANAGEMENT

3OI

The system

provides for progressive promotion

throughout, which produces a versatility among the planning

of the others.

room

tending towards coordination.

force,

The Shops
At

the head of the machine shop, designated as D. M., is

Under him are the (i) gang bosses,
the machine shop forenian.
{a)

who

supervise groups of men, (2) the tool room, (3) the erecting
Under the gang bosses are the workmen

and assembUng gangs.

in groups.
{h)

The wrought

shop, designated as D. W., is under the

He has three separate groups under
contract work gangs, who require practically no

wrought shop foreman.

him, being,

(i)

work gangs, such as riveters, who require

supervision, and (3) workmen on day work.
The pattern shop, designated as D. P., is under the pattern

supervision, (2)
little
{c)

piece

shop foreman, who handles the men direct.

The various foremen have supervision over the machine toob
in their shops.

The shop engineer has two different functions:

The repair and maintenance of buildings. He i>erforms
any engineering work required about the plant due to alterations
{d)
1.

or extensions, and generally is resp)onsible for the condition of the

plant as the civil engineer of the establishment.
2.

The

repair

belting and

ery, designs jigs

There

is

and care

He

shafts.

and

of the

machinery of the plant, including

new machin-

issues all specifications for

special fixtures, etc.

an assistant to the shop engineer.

its own planning department.

This
men. Most of the preliminary work previous to actual routing is done in the machine shop planning department; such preliminary work is copying bills of material,
initial routing of materials from source to shop destination, etc.

The wrought shop has

consists of but three

The wrought shop

machine shop,

routing

is

much

because a number

simpler than that of the

which may cover pages

of items,

of the bill of material, are routed through together, the

same

being assembled making one division, such as a hopper, casing, etc.

SCIENTIFIC

302

MANAGEMENT

Operation of the System

show the routine from the receipt of an order
shipment of the finished material, and later the cost
The charts should be
keeping methods in the same manner.
The raison d'etre of a comprefollowed closely with the text.
It is intended to

until the

hensive cost keeping analysis is its close alliance to efiicient and

economical production.
Without accurate cost keeping it is
impossible to get a correct analysis of the business.
Without a correct analysis the weak spots cannot be located

with certainty, and we are left groping for our troubles and
applying the remedies much as a horse doctor would treat a child.

Cost keeping on jobs serves as a clinic by which we get informaon treatment for future jobs.

tion

Credit and Estimate Departments

An order from a customer may be preceded by a request for

an estimate, in which case it is referred to the estimate department.
Copies of estimates furnished to customers are filed in
this

department.

The

function of the credit department

credit of customers before

making

is

to investigate the

contracts.

Classes of Orders

For convenience

of handling in the planning

department and

shops, job orders are divided into five classes. They are:
1. Engineering orders, which are orders that require new
In this case the order number
designing, or engineering work.
is

preceded by a

"

W " to identify

it.

This class of order

closest

analogy to those received in a navy yard, so

length

later.

it is

is

the

treated at

Regular orders, which are orders that do not need new

designs as they are for articles already standardized. These can
be sent through direct from the order department to the planning
2.

These orders
department and routed from the original order.
include orders for repairs of small parts, and even small orders
requiring new designs, where the design can be made by sketch in

SCIENTIFIC
the order department.

MANAGEMENT

303

The order number in this case is preceded

"
by an R."
3.

These are
order

and

chain.

in effect regular orders in their routine handling.

The

Silent orders,

number

is

which are orders

preceded by a

"

for silent gears

C."

PCCinCATION FOR ESTIMATE

Form

i.

This class of work

is

SCIENTIFIC

304

The

"
engineering

in its routine,

W"

order, being the

and being most analogous

ORDER SHEET
til.

MANAGEMENT
most comprehensive
to navy yard work,

l^\
ti

il

I!

LL

SCIENTIFIC

3o6

MANAGEMENT

In many cases the functions of any particular clerk or

the data involved in a form will be explained later in the text to
avoid undue digression from the main routine of the order.
"
In most cases of an engineering order "
an estimate is
serially.

requested.

In these cases Forms

used to make up the estimate, and are

COPYING ORDER
nOTOOKAPEIO SBPASniEIITn-EASc

TU

make the followins

STATE IF BLU6 PRINTS. tLUE LINE PRINTS

OR B*0N PRINTS ARE REQUIRED

W tl T K> SHOULD

and

2 (serial

filed in

numbers) are

the estimate depart-

OHIB6BIO;
MONTH

SCIENTIFIC
,

Drafting

Room. This

MANAGEMENT

307

department, designated by symbol

of about 15%

D. D. (department drawing) with a personnel

The persoimel
of the total, prepares all drawings for this plant.
<:onsists of one chief draftsman, with an assistant chief draftsman,
and a number

of boss draftsmen.

The remaining draftsmen

REQUISITIONER

Na

REQUISITION

P.

IMT arpcaa
*<
MU
oa UL X1HM

TtM

are

U
TAG NUMBER

PLIAM FUKNItM HATIIUAk PIK TMI* OOOM

OM MTt or MIPIIIMT.

MMMN*

aMIPHN* (0irr TO U

SNIPPlia DIRCCTIORt
MARK lACH PACKAM

UHUM OtNMWIM MOTI*

COMPANY

FoRU

7.

This fonn

is

in

quintupliate on different colored sheets and Tickler

Form

7a.

divided up into groups of three draftsmen, one group under each

When an order reaches this department it is turned over

boss.

to one or more bosses, dep)ending upon the size of the order.

These bosses with their assistants prepare the necessary drawings.

The

chief

draftsman or his assistant gives necessary instructions

to time furnishes necessary information or settles

and from time

SCIENTIFIC

3o8

MANAGEMENT

any engineering point involved and,

in general, supervises the

work.

As

the drawings progress, rough

(D. D. 15) are written concurrently.

bills of

The

Form 4

material,

bills of

material con-

tain full description of every part of the job, with all necessary

PURCHASE TICKLER

REQUISITiONER

Na

P_

REQUISITION

Ho.

eeit^L(Tcv_

TAG NUMBER

^LCASI FURNISH MATiRIAL MIt THIS ORDCN

nNOINa CHIPPma

RICflPT TO Ul

ON DATI OF (HIPMCNT.

Form

ya.

Tickler.

dimensions to manufacture such parts.

"
Mark
bered consecutively (in column

These parts are num"), the reason for which

appear later. All columns of Form 4 except the last three

In most cases many sheets of
are filled out in this department.
Form 4 are required for one order.
will

As

the rough

bills of

material are completed they are type-

written in hectograph ink on

Form

5 (D.

D.

14),

which

is

printed

SCIENTIFIC
in the
5,

MANAGEMENT

same ink and the smooth copies

309

Form
Form 4,

of bills of material,

are sent to the planning department, the rough copy,

file in D. D.
Tracings and the necessary blue

being retained on
prints are

made from

the drawings.

The

prints are

made by

the

photographic department on order, Form 6, of the chief draftsman. The tracings are fiJed in the vaults, the drawings go to the
route clerk to aid routing.

Planning Department

The smooth

bill

of material is received in this

department by

the balance of stores clerk, who fills out the next to last column.
This shows the source of the material to be used for each item,

according to the following symbols:

From storeroom.
S

W Worked material from storeroom.

F Foundry,
P Purchase department, on purchase order.
8 Stock order.
Y Made on Y order.
castings.

In the last case the

symbol

From

"

serial

number of the "

Y " order follows the

Y."

the balance of stores clerk the

bill of material goes to the

route clerk, who fills out the last column, showing destination of
the material to be used for each item by the following symbols:

Machine shop.
Wrought shop.
Pattern
shop.
C. W. Shipping room.
D. To customer

D. M.
D. W.
D. P.

direct.

All the notations are

bill

made with copy

pencil.

The smooth

now
Form

sent to the purchase department, where

7 (Bi), are made for all articles marked

Form

7 are distributed as follows:

of material is

purchase orders,
"
This purchase order is
P," purchase, in next to last column.
made out in quintuplicate with a tickler for file in the purchase
department. The use of the tickler will be explained later. The
various copies of

MANAGEMENT

SCIENTIFIC

3IO

to agent from whom purchase made.

Two copies
in purchase department, one numerically
and one alphabetically.
One copy to receiving room.
stores
One copy to balance

to auditor.
One copy
in purchase department
Tickler
is

Original

filed

of

clerk.

filed

tickler.

The purchase department

in copy pencil

on

enters the purchase order number

the bill of material opposite the letter signifying

This is done so that the

that the material is to be purchased.
various departments can refer to the material by purchase order
number when looking up material due, etc.

The smooth

bill of

material

department, where a number

be distributed as follows:

D. M.
D. W.
D. M.
D. W.

Route
Route

now

returned to the planning

of hectograph copies are made to
is

clerk.

clerk.

Inspector.

Inspector.

Cost department.
Shipping room, symbol C.
Production clerk.

W.

Foundry.

Drawing room.

Main

or erection-floor boss.

Planning room.

Obviously
cated on the
bill of

if

there

bill of

material

is

is

no foimdry or wrought shop work

indi-

material this copy is omitted.

The original
now returned to file D. D. (drafting room).

Form 8 (copy D. D.

shows a copy of the i8th sheet of bill of

This is the copy to the D. M.
material for order # W3248.
14)

route clerk.

Items marked in column

machine

M.

to," as

D. M.

shop work, therefore are handled

clerk.

D.

"

Route Clerk.

(last

column), require

by the D. M. route

Items marked A235, A239, A245, A249,

and A250 are routed on route sheet Form 9 (AP109) as

follows:

MANAGEMENT

SCIENTIFIC
Item A235

calls for

(Form

8)

one shaft

311
7/16' diameter,

This shafting is carried in stock in quantity.

3' 10" long, plain.
It is routed on the route sheet, Form 9 (AP109), in first column

Ground Plan
Bulletin Board

or Puhnimg Dep't.

o
z

eSBB
rkitoMat

<0

OrDCR orWoMk OCRK^

Dc*k.

SHeclo^rafNs

Rate Cccrk's

Dt(.

D.M.

2
a
CL

IXR.
3arlLd<MlnMrta4
bi^

apcnrtim, etc.

Invtrwction CorA* flUd par

eriat nMW* ra, 100 |Kr kov.

DkM.|NiMl fitftdBillk

I
(0

O U

0.

I'l
It

ij

TTVr

fl

Jl I
Drafting Roo^A.
ARXANCKifKin or Planning Defaktusnt.

as follows: operation
I

inspect;

i,

operation

C cut
3,

C.

W.

on lathe

14L; operation
move to shipping
room.
off,

2,

Item 239 calls for (Form 8) a sprocket # 103 (# 103 refers to a

standard pattern) having 23^^* pitch diameter and 24 teeth.

SCIENTIFIC

312

The
5"

casting
2'

is

5";

made
two

MANAGEMENT

cored to 2" diameter; hub dimensions

It is routed in column 2, Form

set screws.

SCIENTIFIC

MANAGEMENT

3X3

Item A245 calls for one shaft 2 7/16" diameter 319^' long,
with two key seats 6' long with location of key seats given. It
cut off, at lathe 14L;
is routed as fellows: C
mill, at
at
assemble
I
key-seat bench;
inspect;
4M, for key seat; A

C. W. to shipping room.

The

"

assemble

"

referred to con-

assembling items 4 and 5 on shaft, item Mark A245.

Item A249 calls for the same as A239 except a key seat is cut

sists of

at

2K and

the sprocket then goes to key seat bench to be assem-

bled on A245.

A 2 50

(Form 8) calls for one bevel gear, 19.51" pitch diameter, 49 teeth, hub dimension given; to be bored to 2 7/16' to
It is routed, last
fit shaft A249, key seated and two set screws.
Bore
at
face
hub
at iiL; key
follows:
as
Form
12L;
item.
9,
seat at 2K; drill and tap for set screws at 17D; clean teeth on
main floor (necessary when teeth are cast) assemble on A245 at
Item

key seat bench inspect; shipping room.

Form 9a shows most of the symbols used in routing. If blue
prints were used by the route clerk to aid routing, they are now
filed at the issue window for issue to the workmen.
The route sheet is clipped to the copy of bill of material and
;

sent to a copy boy

A.

Assemble.

B.

Bore.

BB.

Babbitt.

C.

Cut.

CT.

Cut

F.

Face.

who

teeth.

P-F, Pin flanges.

S-F. Shrinic flanges.

T-F. Turn flanges.

A-F. Assemble flanges.
T.

Turn.

RB.

Rough

FB.
R-T.
F-T.
D.

Finish bore.

Rough

bore.

turn.

Finish turn.

DriU.

L.

Layout.

SP.

Split.

K.

Key

seat.

prepares master time cards for each item,

ss.

<
S

u
w

o
6
E

w
o

b
Id

I
(0

U
h
D
a.

SCIENTIFIC

MANAGEMENT

315

showing item No., No. of pieces ordered, description, source of

material and operation to perform.
Form 10 (AP148) shows

v?
OROtn No.

V62^

ONAWINO H*.

A2^

P 27532

SHAFT 2 7/l6 X 5*9 1/2" K5 6"

16 5/8* IC5 6
7/8*

PH6

V62^9

Form

io.

PL

CJ).

Master Time Card.

This is made of hectograph

the master time card for item A245.
ink and a copy boy makes the following copies:

and

route tag

stores issue

Form
Form

(DM5).

12 (CS103).

for each operation,

Group

The

time card

shop card

move card

required

time card

is

number

destroyed.

Form
Form
Form
of cards being

The

made

numbered

in pencil.

The

13

14
15

(DM148).
(DM148A).
(DM148A).

out, the master

cards are sorted and clipped into

The operations
route tag and stores issue slip are

groups as above, one group for each operation.

are

1 1

SCIENTIFIC

3i6

MANAGEMENT

In the order under

clipped to the cards of the first operation.
consideration operations i, 2 and 4 do not require shop copies,

work on sxinunary work, which will be explained

later.
Also operations 3 and 4 do not require move cards, because
operations 4 and 5 are performed at the same place as operation 3.
as these machines

^1

-I

NO

OC^^

NO

o
h

Form

ii.

Route Tag.

After the necessary cards are made out the route sheet is filed
at the order of work clerk's desk, where a record of the progress
of work is kept.
The copy of bill of material goes to a clerk who

makes out the necessary

stores issue

and worked material

issue

such items as are drawn from storeroom to go to C. W.

(shipping room).
Referring to Form 8, items A230, A237 and

slips for

A248

are stores issued to C. W.,

and A236, A238 and A247 are

SCIENTIFIC

MANAGEMENT

317

worked materials issued to C. W. The former are made out on

Form 12 and the latter on 17.
The forms for stores issue and worked material issue (for articles whose destination is C. W.) are sent to the shipping room
CNac T*

TO HI* TAO_

WCYT
NO.

18

W32^

STORES ISSUED

SH^T a 7/6*-X 3*9

16 5/8 10 6

PL

1/2**

K5 6

W5^
*..U...^...^

!>

PL

16 T/e**

CO.

.A.^.^.-.A.-

ritaca

PRICK PCM UNIT

PKOC

rfT

rT

TOTAL VALUK

a.WiLBU
Fouf

C. W.; and

when

13.

Stores Issue

Slip.

the articles are desired for shipment the forms

are sent to the storeroom, where they are exchanged for the
desired articles.

The

making the necessary memorandum of

bottom of Form 12), sends the slips to the
cost department, where the issue is entered on the balance of
stores sheet and cost sheet.

issue

storekeeper, after

on

his tag (see

In the case of
sketch.

Form

18,

shafting items, except plain shaft, a line

showing position and character of key seats,

all

accompanies the time card for the milling operation.

All time cards, together with shop copy and move cards, which
are clipped to them, go to the rate clerk to be rated.

This con-

SCIENTIFIC

3i8

MANAGEMENT

posting on the back of the time card the necessary data

re time and pay (explained later), the tools, cuts, feeds, speeds,
sists in

and drawing numbers. Some of these are

and back, of A245 operation i.
The tags are sent to the receiving room and secured to the material called for by the stores issue slip, or if the material is not from
etc.,

instruction card

shown on the time

ETUIIHie

OMPCR NO.

cards, front

x=

CHAIiaK TO

^>7Ui:

/3

ve9

iwrrr

MTTtMN

NO.

NO.

K9

18

-*a^?i> 27552
H nV

OPKRATION

HOT rfNIM.
CD 0IIT01J__
IP

NF

SHAFT 2 7/6 X 59 l^^** S

16 5^- 1C5 6* PL 16 7/8*
V52I9

6*'

PL

Ci).
<

iuy

DM

vS***^Ir

' '

*w * ' * ^

SCIENTIFIC

MANAGEMENT

319

Storeroom or receiving room and tagged a notification is sent to

the order of work clerk, who posts the time and move cards of
operation on the bulletin board, and the shop copy on the
shop bulletin board, if the machine designated for the first operation has a shop board.
the

first

The

cards for

On
Xhe

other operations are placed in the despatching

by order numbers.

all

box, in sequence

the bulletin board are two sets of hooks for each machine.

cards on the upper hook represent jobs on that machine

PIEC1

SCIENTIFIC

320

MANAGEMENT

The material is moved from the receiving room to the machine

shown on the tag under first operation.
The receipt of material in the shop signifies to the order of
work clerk that the material is at the machine, and the order in
which it is to be done is now arranged; when the man has completed one job the tool

boy goes

to the time card

window, turns

W6249
M((T no.

18

^249

/245P

OMIMC NO.

vol}

rATTCMN NO.

DiiAwina MO.

27552

o^chation

z-

ir

FINiaNKD

TOM OuTTHIBMT

NF

SHAFT 2 7/16" X 3*9 1/2" KS 6" PL

16 5>- l 6" PL 16 7/8"

8349

CJO.

SVORK
T

a AM* n*.

DM

MACH SHOP DUPLICATE

Form

TIME CARD

14.

and receives a card for the next

of
job, posted on the planning room bulletin board, a duplicate
which shows on the machine bulletin board in the shop.
The boy also goes to the issue window for instruction card and

in the card for the finished job

drawing,
also

if

drawn

such are designated.

for the

Any

special tools required are

man by the tool boy on the man's check. When

is stamped in hours and hun"

"
The job being comout
dredths of hours (upper left corner)
clerk and the
of
work
the
order
in
to
pleted the card is turned

the time card

is

issued the time

SCIENTIFIC

MANAGEMENT

3"

time again stamped on the card (upper left comer)

difference between the two is the time of the job.

The shop
row

boaM

bulletin

for the jobs

"

The

in.'

has a number of hooks in a vertical

ahead of the machine so a

man

can see

all

of

as the operation is completed the move card is

taken from the planning room bulletin board and given to the

As soon

them.

move

gang,

who move

the material to the machine designated

ITVIIHI*

fS*

0.'.^A^A
no(N

W52*9

NO.

MkTTCHa *

18

fiyi/^^

p5Pp7532

i.rM.Mi^T^

T'll

DM

MACH. SHOP DUPLICATE TIME CARD

Move Cud.
Form
15.

on tag

for the second operation.

At the same time cards

for the

second operation are posted, as were the previous ones, and the
same routine followed. When the work is moved the move card
is

returned to the order of work clerk,

who checks

the operation

as completed on the route sheet (see Form 9) by drawing a blue

vertical line opposite the operation concerned and noting the

The move card

is then destroyed.
operations are completed, and after the work is inspected in the shipping room, Form 19 (AP7) is made out and

date.

When

all

SCIENTIFIC

322

sent to the order of

is

work

clerk.

MANAGEMENT
The

blue line on the route sheet

then extended to the bottom of the sheet and the date of in-

stamped on the route sheet. The order of work clerk

"
under colimin " Route Sheet on Form 19.
The route
sheet under consideration shows state of work on sheet to be as

spection

is

initials

follows:

ready

A235

finished

for inspection;

and inspected in C. W. 9/1 2/1 1; A239

went to key seating bench 9/1 2/1 1,

A 245

WORKCO MATtlllALS T*0 NO.

CHAROe SYMfiOi

MANAGEMENT

SCIENTIFIC

323

Daily all route sheets on which all items have been completed
and inspected are taken from the files and sent to the superintendent, and a notification of these jobs and sheet numbers is sent
to the production clerk for his information.

When an

operation is completed the shop bulletin board copy

checked and destroyed by the order of work clerk; all other
slips on the board are then moved up a peg.
is

This
trated

the ordinary procedure for an engineering order as illusby Chart II (facing page 306). In case of work in the
is

CHANOI SYMMM.

Shaft Sketch

r
W-

IL

J.-'

OIAMCTKR

NOTC-MARK OPPOSITE KACN RCY

RROCKKT AND OIVK

Ik

BILL

X.

IF

iJt A

,.

THC WHCCL

If A OCAR, PINION.

OF MATERIAL MA||n OF
FOKM

SAMC

OR

18.

wrought shop the routing, etc., is handled by the D. W. route

The prof)osition is
clerk, and a similar procedure takes place.
much simpler, due to the nature of the work handled.
Considerable contract work is done in this department, and
In cases of piece work,
the time card and shop copy are Form 20.
or day work the card is similar to that used in D. M.

premium

Classes of

Work

according to Pay

1.

Piece work, with high and low rate.

2.

Premium work.

work.

3.

Day

4.

Contract work.

SCIENTIFIC

324
Piece Work.

MANAGEMENT

The ultimate aim, in order that employer and

employee may profit the maximum, is the piece work system

with high and low rate. When this system is employed the work-

man benefits in wages by any increase of output and

benefits

increase of production per machine.

by

This

company

is

In order that piece work

fection of sliding scale bonus.

the per-

may

be

CHARGE SYMBOL

IN'

OUT
SHIPPING

SHEET

NilMBEIt

NUMBER

PESpRIPTIpN

Wa-HAf

^ ^

OPERATION

'yg-g^ NUMBEK

HAVK INSPCCTCO
THKM TO BC

ALl.

J /I

^^^>P*<^
r

the

//

THK ARTICLE* OKSCRIBCO ABOVE AND FIND

2Sfe
SIGNED 6Yy}NyEC7DR

IHSPEptlON

%i
Form

19.

Inspector's

SJr4

Slip.

employed the standard piece work time must be absolutely corThe piece work rate,
rect and fair for the average workman.
"
cut."
This must always be borne
once estabUshed, cannot be
invariably followed by discontent
spells disaster to the success of the sys-

in mind, as cutting of rates

among

the

workmen and

is

These standard times are being added to daily; at present

there are more than 10,000 such times established here, and of
course many more can be deduced from parts or combinations of
tem.

parts of these.

In cases where these times have been established

MANAGEMENT

SCIENTIFIC
the
rate

man

325

paid a certain fixed rate per finished piece, the high

finished under the minimum time allowed, the low rate if

if

is

These high and low rates are determined

he exceeds this time.

from a base rate as follows

The base
on the

class of

High

rate

pay in the neighborhood

machine to be operated.

rate

the average

1.3 5 of the

Low rate = 5/6 X

man makes low rate,
DEPARTMENT

work

base rate

(35% bonus).
{12}^% bonus);

but, if the
high
with the increased time the man's output
rate

CHARGE EXCESS TO

DW

MTt

'JOB NO.
_

for

...

NO.

IN

(TuirriB

CHARGE OF

DW

OTt fll*MCS

OUCfUPTION or WORK TO Bt DONK

UMM

TO

OMTHnvTie

OAr WAOft OOVANCtO

.iaetM
I

MTW

HAVK INSPECTED THE WO*K DONE ON THIS CONTRACT JOB AND HAVE PABBtO ON TH(
BAME AS BEINO SATIBFACTORY
MMO

HMneroa o
MMUtirrATivt
oTMta

FoKH
is

20.

tiOf

CONTRACT JOB

or CAMo

Time Card

for

Contnct Work.

In duplicate

lowered, and consequently his total

just below the time allowed he

would

original, white;

pay

is

still

duplicate, manila.

lowered.

get a

little

If

he

falls

over what

he could make at straight day rate.

If he runs much over the
time allowed he loses considerably.
However, it is very rare in
this plant for a man to run over the minimum time without good
reason.

man

is

In case of unusually hard metal or any valid cause the

given high rate, and in case of new men who have been

SCIENTIFIC

326
employed

less

than

six

MANAGEMENT

months, they get a guaranteed day rate

if

they fail to make high rate.

In the case of a man working at a machine which has a base

own base

determined by his usual maIf a man

chine, he would be paid on the higher base rate basis.
rate higher than his

DWio.

rate,

SCIENTIFIC
hour

MANAGEMENT

(called 2 c. retainer) for all his

this will

be shown

Premium Work.

working time.

327
The form

for

later.

Where a piece work rate has not been ac-

work is placed on the premium basis.

and
chipping
fitting, assembling wheels on shafts,
this system an estimated time allowance is placed on

curately established the

Such work
etc.

By

is

the job.- The pay is at a fixed hourly rate.

If the man exceed
the time allowed he is paid his hourly rate for his actual working
time.
If he does the job in less than the allowed time he is paid
for his actual

working time

+ ^2

(the difference between the

SCIENTIFIC

328
Example.

MANAGEMENT

Suppose a tank to be assembled and

riveted, con-

tract price $40.00.

Men

employed:

Boss

at $5.00 day.
Helper at 3.00 day.
Helper at 2.00 day.

If this job were completed in three days the several

paid to date of completion

would be

amounts

Boss

$15.00

ist helper

9.00
6.00

2d helper

$30.00
Excess to be distributed 10.00

Excess to be distributed
rr

r^ =

1 otal

days wages paid

Excess for each man.
Boss
I St

helper ^

2d helper ^

X
X
X

$15

$9
$6

=
=
=

10
_
= _ = excess
i

30

ratio.

$5
$3
$2

See

Form

20.

men draw the total contract price before the job is

the
completed
hourly rate is continued as long as the job is in
hand. It is a rare case in which the job is not finished before this
Should the

time.

Cases of palpable error in under-estimating contract price

are subject to readjustment.

Cases of readjustments on

pay

of

men

are very rare.

ally hard metal making a large cutting time,

new men are the only causes that arise.

ment mark the working of the system at

Unusuand

clerical errors,

Fairness and contentthis plant.

During a

seven-week period under observation but one case arose where a

man got low rate on piece work.

A few of
system was very gradual.
piece work, the rate on which had
been very carefully established by time study. As soon as it was
apparent to the other men that those on piece work were conThe

installation of this

the best

workmen were put on

SCIENTIFIC

MANAGEMENT

329

sistently making more than they could make at their day rate,
request for piece work came from the men themselves.
Route Clerk.
The route clerk must be a practical shop man,

thoroughly conversant with the capacities of machines and of

men and with general shop practices. A tabulated form showing
the capacities of the machines

is

originally prepared,

but the route

must be conversant with this data to successfully route.

He must place the work at the machine which will handle it most
He must be in touch with the general
efficiently and quickly.
condition of work at the different machines so as to distribute the
work to best advantage.
clerk

Often two operations can be performed simultaneously, such

as boring a hub and rough turning the flange of a wheel.
He

must decide whether to do these as one or two operations, being

governed by the work at the various machines, etc. The combinations and possible varieties of routing that pass through his
hands are many, and his is a billet that requires knowledge from
experience.
Routing of items which are often repeated becomes
almost automatic.

The route clerk keeps a card index in which he makes a memorandum of the route of any new item. This forms a ready reference for similar items, until such time as he becomes thoroughly
familiar with their routing.

Tables
items, such as gears, etc., are standardized.
are prepared for all of these showing the several dimensions.
In

Many

this case the

item

sprocket #103.
be obtained.

is

often identified

From

by a number,

the standard tables

all

thus:

23"

dimensions can

For engineering jobs the blue prints are sent to the route clerk
with the B. M. This is necessary to routing, as the interrelation
of parts, the dimensions, etc., are thus obtained.

Rate Setting Clerk, Instruction Cards and Drawings.

The
rate setting clerk determines the class pay for a job.
He places
the time allowed for preparation, and per piece.
Preparation

An

allowed on the

first piece only where the piece work is

and
low rate are also placed on the card.
base, high
omnimeter having fixed lines on the marker is employed to

time

used.

is

The

SCIENTIFIC

MANAGEMENT

331

determine various rates and to determine the pay per piece. The
class of pay, allowed times, etc., are found from instruction cards.

REQU I9ITION
evAirrMorr_

TO THC PURCHASINS AQENT:

PLCASC OROCR THC FOLLOWING FOR

TAa NUMBER

57753
^9

iw _.*J

tWNTH

f.

'

CMY

ta.

SCIENTIFIC

332

MANAGEMENT

the workmen.
The instruction card
numbers and drawing numbers are noted on the time card. When
needed by the workmen they are drawn from an issue window
on workmen's checks. The cut, feed, speed, machine time, etc.,
These are obtained from the inare placed on the time cards.
filed serially for issue to

struction cards, or,

if

master shde nde

slides to fit these

unknown, can be computed by

is

slide rules.

and

prepared for each class of machine,

master rules are prepared for each machine of

the class.

Balance of Stores Clerk.

ance of stores clerk, as his

The
name

principal function of the balimplies, is to keep a balance of

Y- ORDER
Synopsis of Contents.

Fork

23.

the stores on hand in the storeroom.

This

is

done on Form

21,

balance of stores sheet, as follows: Each class of stores has its

own sheet showing name of item, minimum stock allowed, quantity to order at

one time, and columns: ordered, received, bal-

ance on hand, applied on orders, and available.

The

sheet.

Form

21, is

kept as follows:

When
and

stores are ordered they are entered with date, quantity

purchase order number in the first column. Upon receipt a

vertical

hne

quantity
either

on

stores, or

is

is entered after the quantity ordered and the same

entered in the second column.
Stores are ordered

Form 22, on purchase department, if

order. Form 23, if for worked material

requisition.

by

"

"

for

for

In either case the requisition or order emanates from the

balance of stores clerk, when the amount available is less than
store.

the

minimum

stock per his balance sheet.

superintendent
for

is

Its approval

by the

authority to purchase in the former case

manufacture at the plant in the case of a "

Y " order.

and

SCIENTIFIC

MANAGEMENT

333

In

the case of a purchase order, as stated previously, the receiving room is furnished with a copy of the purWhen the stores are received in the storeroom, a
chase order.
Receipts.

Foui 34. Bin Tag.

notification

form

is

sent to the balance of stores clerk and at the

same time the quantity received

is

entered,

on the bin

tag,

Form

24, of the receiving bin.

In the case of a
that

Form

25

is

"

sent

"

order the same procedure follows, except

by the receiving room to report receipt to

the balance of stores clerk.

When a

bill of material goes through the balance of

hands and he designates origin of items as " stores "
he debits under colunm " Applied on Orders," all such stores.

Debits.

stores clerk's

SCIENTIFIC

334

MANAGEMENT

After the stores are actually drawn, that is, when he receives
"
Issued," enters balance
slips, Form 12 or 17, he debits column

on hand and draws vertical line opposite stores affected under

"
When the quantity " Balance
column
Applied on Orders."

on Hand

"

minus quantity

"

Applied on Orders

"

but not actu-

MANAGEMENT

SCIENTIFIC

335

Same received 8/7/1 1. 9/18/11

purchase order No. 84732.
"
"
8/21/11
7500 ordered on Y order # 3246, not yet received
issued
to
in
credit
turned
on
8/17/11
3
slip.
regular
50

order 67592 and 8/19/11

200

to engineering order

i^

3094.

Quantity applied on orders

Balance on hand 8/21/11, 4847.

<
WORKED MATERIALS RECEIVED

VOMKED lATERIAU IA6

10.

tt titles

urn

TOTAL VALOE.

PIECES LOST

PIECES

tCMPPED

THE STOREKEEPER
PIECES DAMACEO

VALUES

OH

WILL

WORKED

NOT ENTER ANT

MATERIAL

TAOS

IN

STORES NOR OH THIS SHEET.

PIECES

0. K.

TOTAL WCiaHT

TOTAL COOO PIECES

ACCEPTED M STORES

1t1

LM.

W. M.

HAVE RECEIVED THE AiOVE WORKED HATERULS

MATERIALS TAO OR THEM AND EHTERED

STORES AND HAVE TIED WORKED

EO ON THAI TAO

MMATUM or HMMCTOa WHO

MuviM ooM TO rrew-

Form

in

hand

new

in shops 3700.

35.

Storekeeper'* Receipt.

Quantity available for issue 1147.

must be made

at once, as this quantity is less

requisition
the
than minimum.
Obviously
3700 that are reserved for jobs
under way in the shops cannot be available for future orders.

When

performing functions pertaining to stores the balance of

stores clerk is technically in the cost department.

SCIENTIFIC

336

MANAGEMENT

Receiving and Storeroom

Receiving.

Stores

may

be issued from three sources:

(i)

Purchased, (2) Worked material made in plant, (3) Foimdry,

which is a form of purchase.
In case (i) the storekeeper is furnished a copy of the purchase
receipt of stores he checks up this order and notifies balance of stores clerk of receipt of stores by form and enters
order.

Upon

quantity on receiving bin tag, Form 24, if stores go into bin, or

attaches a bin tag and another tag, Form 28, if the stores are

SCIENTIFIC

MANAGEMENT

337

balance of stores clerk, etc., on Form 30, and to the order of

work clerk for his route sheet file on Form 31.
"

Stores

drawn

for a job order

may

which case the storekeeper sends

l>

be returned to the

slip,

Form

WOHKID MATtNIAU JtM m.

CMorr

TOTAL

WtMHT

WORKED MATERIALS CREDIT

nusc

enoiT woMtt

m CMMC

T0.

OMtCT LAMN

26 or

utiruu omii m.-

store, in

Form

MOM M.
TOTAL VALUC

27, to

SCIENTIFIC

338

MANAGEMENT

Storekeeping
Articles which are carried in quantity are stored in bins. Each
item has two bins, a receiving and issuing bin, with a bin tag on
All receipts go to one bin and all issues come from the
each.
other.

In this

way

OSXMMItMt

ORDER No. _,

MARK
QUAN.
PATT_

SIZE.
DESCRIPTION.

MUST SHIP.

a check

is

obtained on the item account.

SCIENTIFIC

Memo,

of

MANAGEMENT

339

SCIENTIFIC

34

MANAGEMENT

Production Clerk and Shipping

""

The production

work out
cooperating
and notifying the planning room foreman if
there is any probability of delay in shipment.
He is the head of the shipping department
and keeps the tickler.

get the

He

~~

at

informed of

the progress of an order

and
stages
keeps a record of such progon Form No. 33 (AP35). He is informed
is

all

ress

of the receipt of material in the shop

by
1. Manifest in the case of
castings.

(0

2.

Id

i^

Copy

of

Form

7 in the case of

purchased

material.

___.

He keeps a foundry board on which is recorded the dates castings are due, and keeps
a record of their receipt on this according to

h
Z

the three color scheme explained later in the

i case of D. M. and D. W. shipping boards.

h.

h.

O
h

and regular orders come from the condepartment to the production clerk to be

Silent

tract

checked for rush orders so that the material for

these jobs can be started before the order is
written.

In

this

connection

the

clerk notes the date of shipment

s
u

clerk's function is briefly to

of the shop,
with

_^

oc

production

and enters

it

on the D. M. and D. W. shipping boards for

the planning department foreman's information.
In case of doubt the latter are consulted in
fixing this date.

Engineering order shipping dates are not entered on the shop shipping boards. Instead, each

department, etc., concerned has a list of same,

called a "Bill of Material Shipping List." This
Hst shows: Firm, order No., date of shipment,
preferred and penalty orders, etc.
Daily at 9
A. M. the production clerk, planning room fore_

men and

shop foremen meet in the superinten-

dent's office

and discuss the progress

of this

list.

SCIENTIFIC

The

packed and
order

and a copy

original

department;

MANAGEMENT

341

of each order is sent to the shipping

Goods are
the copy goes to the packing room.
as
route
previously designated on the
shipped
per

by the production

clerk.

When the goods are all checked and packed the copy is returned
to the shipping

department and the original is sent to the billing

is left on file for a couple of months and

The copy

department.
then destroyed.

SmppiNC List
Siltnt

19393 P. R. R. Direct 9-8.

Chain Orders

67439 Wagon.
67493 P.

19403 Direct 9-7.

&R.

19408 Cancelled.

67560

19412 Ad. Ex.

67592

19475 Direct 9-7.

67593 Ad. Ex.

&
&

19658 P.
19696 P.

R.

67610

R.

67567 Direct 9-8.

19727 Direct 8-31.

67704 BoaL

19780 Mail Direct 9-6.

67861 P. R. R,

1978 1 U.

67970 Boat

S.

Ex. Direct 9-8.

19787 Cancelled.

67984 U.S. Ex.

19854 Ad. Ex.

67990 Wagon.
Bill of Material Orders

68030 Boat.
68031 P. & R.
68034 U. S. Ex.

2042 X7.
2232

X2

Ad. Ex.

3024 X7.
3007

X2

U. S. Ex.

68044 Cancelled.
68045 Ad. Ex.

3046 X3.

A/0.

A/0.

3225

Wagon

3 and

68073 Bearer.

7.

68074 MaiL

323s Wagon.

68009 Wagon.
Regular Orders

66227 P- R. R-

68076 U.

S.

Ex.

66960 P. R. R.
6807s P- R- R-

68077 U.

S.

Ex.

Form No.

34.

Copy

of

Hectograph List Sent Out Daily.

SCIENTIFIC

342

MANAGEMENT

Daily a Kst, Form 34, is made out of

twelve copies are distributed as follows:

orders shipped and

all

Production clerk

Route sheet
D.

file

D.M

Cost department
Purchase department

Order department
Chief draftsman

The shop shipping boards

are checked

by the

three color sys-

tem.

Copies of B. M.,
receipt of shipping

Form
lists.

8,

are destroyed in

Form

33 (AP35)

all

departments on

destroyed by the

is

Goods are shipped on a shipping manifest,

the
35,
original of which is sent with the bill of lading, duplicate filed in the shipping room, and triplicate goes to the cost

production clerk.

Form

A memorandum

department.

is

kept in a blank book of job,

route, date, etc.

Correspondence
tion clerk for

re jobs late in

shipment

is

sent to the produc-

comment.

The

tickler, which is now a part of any well regulated shop or office, takes the following form here
cabinet with a drawer for each month; in each drawer a

Tickler.

large letter

file

with space for each day of the month.

All tickler

forms (Form 36) of the superintendent, planning department

and shops are sent here for file by dates, and it is the production
clerk's duty to daily distribute such ticklers of the day as are on
file.

Shipping Boards in Planning Department.

These

boards

heavy japanned sheet tins on which are pasted forms

for each day of the month.
a
column
There is one board
having
"
R " and " C." The order numbers are
for each class of order,
entered in the column under date shipment is promised or desired.
consist of

When

order

is

ber as follows:

shipped a colored

mark

is

made

at the order

num-

SCIENTIFIC

MANAGEMENT

shipped ahead of time, a purple star.

shipped on time, a blue mark.
If shipped one day late, a red mark.
If shipped two days or more late, a yellow mark.

If
If

MOORCM or

mntinmtm

mxx or matcrial oao^r

ymmrmn
HMfW
MkWINM

MVM

m wow piimnu
mtHitvtvtw

"

VM

Fou(

33.

Progrest of Woik kept by Production Cleik.

343

344

SCIENTIFIC

MANAGEMENT

Cost Keeping Department

Analysis of a job order

cost

(Chart III to be read concurrently.)

The grand total selling cost of a job order is made up of (a)

total selling cost for this plant and (b) total for other
plants.

COMPANY
mpvcsT*-

euii onsen

_euTeiir

MANAGEMENT

SCIENTIFIC
(a)

Total selling cost

345

(of this plant) consists of (ai) total selling

worked materials by

divisions.
(Note: If the job is
it
is
as
a
such
separated into divisions
coal-handling device,
large,
such as Hoppers, Springs, Chutes, etc., for convenience of plan-

cost of

and each division

ning, manufacture, etc.,

for instance, the job order

The accounts

as 203 5 A, 203 5B, etc.

is

given a

letter.

If,

were 2035 the divisions would be known

Tal

of the several divisions are

kn3 CMt

r Ktanicd Uatanal

atung C>na

*/"*.!

U - MuMSf

CvltTMIflk

r - CrMtMH

Grand Total
SdbigCoctorjeb

Taai ttr

Chart IU.

kept separately on all forms until the final cost summary

This is not only a convenience in cost keeping but
reached.
essential to estimating

and replacing;

Stores sold, SS; (a4) Sublet contracts,

etc., J;

and

(a2)

U;

Drawings, G;

is
is

(a3)

(as) Freight, royalties,

(a6) Erection, F.

(ai) Total Selling Cost of Worked Materials by Divisions.

Each division is made up of (aia) shop cost of worked material;

(a lb) special tools;

expense.
(a2)

Drawings, G.

(aic) special patterns;

The cost of drawings

and (aid) general

made up

is

wages; (a2b) drawing expense; (a2c} general expense.

of (a2a)

^f;
?lj

??i

111*
8

315
sa^

33 3)?1
0

5i^

UJ

|i
ii"'

346

MANAGEMENT

SCIENTIFIC

347
an order as

(a3) Stores Sold consist of stores delivered with

but direct from the storeroom and not made up

as part of any of the worked material divisions.
This cost conpart of the order

and (a3b) general expense.

sists of (a3a) invoice price of stores

DM Ha

DMwa

TMeA

iDiot

Dtoi

Dioi
7d

for

Waa

Workad

Stors*

ow

DM

OP

a^jg3!i

iv^\^^
IAP4

|Oi

y
WW

WJSlSt

jiota.

2-^
wa
.l-,t.M

DroMngs

APe7
Cost haalsoT

i fc

itw

Mrk4 Mottndte
i

fi^tMtmmt

MP

as
Lret ion

Shay

AP34.

Matariala

J^LL

StOTM

duMat

Sold

Conlrotta

TlM

!><

Royottits

iMfars ai

M Id*

Pcrt1fns

SpMiol

Divisions

Tools

A|B |C|D

ManMvl]

SUMMARY or CONTRACT COST AND

BILLING

TO DATE.

Profrustr* Cm* SK** by claasaa itwM t

C*i to drt* - SiMd i* data BaUMca ( an Aaaat X
Pn^M r (.aaa.
Total m>\\* - final Caat

Ttia(a>r*4 akan

)!

eamftatad

CONTRACT COST SUMMARY.

By

riM^

cUmm

ot- ammm
ral 8har Caat, tta ^l Cl
.>ig C**, tll^l*, IMal Siii^ Cat, Salbnj
.

Chakt

eg

59.

v.

(a4) Sublet Contracts are parts of jobs let out

(a4a) contract price

and

consist of

and (a4b) general expense.

(as) Freight, Royalties, etc., are charged directly against the

order without any change or additions to it for overhead expense.
(a6) Erection selling cost consists of (a6a) wages; (a6b) erec-

tion expense;

(a6c)

delivery;

(a6d)

travel;

(a6e)

materials;

and (a6g) general expense.

aia. Shop Cost of Worked Materials is made up of (aiai)
wages; (aia2) shop expense; (aia3) machine cost; (aia4) store;
(aias) worked material stores.
(a6f) rentals;

SCIENTIFIC

348

MANAGEMENT

aib. Special Tools.

Tools made for a special job.
The
order.
This
cost
of
to
the
these
tools
is
includes
selling
charged

wages, shop expense, material (stores), and general expense.

'

WORKMAN'S

WORKMAN'S

NAME.:

NO.

YOUR Time and earnings

-

D.

DAY OF WEEK

WERE AS FOLLOWS ON

TIME

IN

TENTHS OP AN HOUR

TIME
ACTUALLY

WORKED

WORK
PREMIUM WORK
PIECE WORK HIGH RATE
PIECE WORK LOW RATE

ADDITIONAL

TIME
EARNED

ON STRAIGHT DAY
ON
ON

ON
yjj^

a-L

rz*i_

WORKED ON CONTRACTS
ANQ NOW ADVANCED ON SAME

TIME

PIECEWORK RETAINERS

xz-i-iz-i*;

^:
Z-I-S-2-I*
rx-r

jlX-I-I-XIX-Ii

OVER-TIME RETAINERS
BALANCE DUE ON COMPLETED CONTRACTS,
ETC., ON WHICH TIME AND MONEY HAVE
BEEN ADVANCED

TOTALS

NOTE REPORT PROMPTLY IF THIS

STATEMENT DOES NOT AGREE WITH
VmiR OWN ACCOUNT
FOKM

37.

Pay Card,

btuhni*

iawK0

in Duplicate; Original White, Duplicate Manila.

Note Label

IN

OUT

SCIENTIFIC

3 so

MANAGEMENT

aid. General Expense.

This is an amount to cover part of
the administrative and selling expenses fixed as explained later

imder General Expense.

a2.

Drawings, G.

a2a.

Wages. Pay actually given to the draftsmen employed

on the drawings of the job.
asb. Drawing Expense.
Part of the overhead charges as
explained under Shop Expense.

SCIENTIFIC
at

all

times

MANAGEMENT

when not chargeable

pairs to equipment
a6c. Deliveiy.

to

351

any partiodar

of departments, etc.
Cost of delivery of material

order.

Re-

from shop to the

field.

a6d. Travel.

'"detail

Actual traveling expenses of party in the

cost sheet

of

WORKED MATERIALS

ON

-..'."2t^?t ii.l_

field.

SCIENTIFIC

352
(aia2)

Appendix
(aia3).

a certain

Shop Expense.

MANAGEMENT

Overhead charges

for shop.

See

I.

Machine Cost.
rate.

Every machine

This actually writes

lETAli COST SHEET OF DRAWINGS.

MO

DELIVERY

off

m ERECTION

is

intended to earn at

part of the overhead

ON

CONTRACT

vn

SCIENTIFIC

The machines
machines

of

MANAGEMENT

353

are divided into groups, each group containing

approximate similarity and power. The average of

is taken for the rates of all machines in the

the rates for any group

(Chart IV.)
Obviously for any piece of work machine cost = machine
hours X machine hour cost, machine hours being the actual
running time of the machine on the work in question.

group.

(aia4) Stores.

Invoice price of stores drawn from the store-

room and used on an order.

(aia5) Worked material.
is

and a stock kept

certain class of stores are

made

This item (aias)

the shop cost of this class of stores when drawn for use on an

in the shop

in the storeroom.

order.

Method of Cost Keeping for a Job Order

(Chart

to be read concurrently.)

Time cards of work done are turned in to the cost department

Times of starting and finishing
from the bulletin board daily.
the work are stamped on the cards, and the rate of pay appears
on the cards.

Two

boys compute and enter on the card

this

The cards are then

elapsed time and the wages due the man.
the
for
each man is comsorted by men's numbers.
Daily
pay
The man
puted and entered on Form 37 (AP54) in duplicate.
receives the white copy daily through the time box, showing his
earnings for the previous day, the yellow copy being filed for
computing the weekly wages due the man.

Form

Used

summarize the daily earnings of the

The white copy is placed in the time box daily
workman.
showing the man's earnings for the previous day. The time box
referred to is a locked box having a compartment for each man.
37.

to

opened fifteen minutes before starting time in the

morning, and a boy is stationed at the box while open. It is
This box is employed in lieu of a
closed at starting time.
time clock, any men coming after the box is locked have their
This box

is

time stamped at the Order of Work Clerk's desk. Only the

It is worth
office use a time clock for arrival and departure.
noting that everybody from the president of the

company

SCIENTIFIC

354
down stamps
keenly

Time

MANAGEMENT

the ofl&ce dock, and the moral effect of this

is

felt.

cards,

Forms

are again assorted

by

13,

38 or 39 (DM148, Dioi, or

divisions of

DW2A),

worked material job numbers

SCIENTIFIC

MANAGEMENT

355

Obviously the machine cost equak the machine hours multiplied

by the machine hour cost.

Machine Hour
rV, as follows:

Cost.

This

(Depreciation

is

computed from Chart number

Maintenance + Small tools +

SCIENTIFIC

356

MANAGEMENT

to the job is entered on Form 40 from slips, Form 17

Before
entering values of stores drawn, any credits
(CS6).
26
Forms
from
(CS16) and 27 (CSS) are deducted.

and applied

Monthly the totals of wages, machine cost, stores and worked

materials stores charged to each division are transferred from
Form 40 to Form 41 (AP27) and checked. There is one copy of

Forms 40 and 41

for

each division of the order.

These are

speci-

fied as lot Nos., thus:

W2035A, W2035B, etc.

Under each Une of wages. Form 41, is a line marked expense.
This is determined as follows: The shop expense factor for each
department, shown at the top of the page (how found and functions shown later), is multiplied into the wages for the month in
the corresponding department and this

Wages DP $.45.
Example.
Expense

DP

is

$.45
This expense covers

.50

is

Factor

entered as expense.

DP

.50.

$.23.

what is commonly called overhead or

machine cost) as shown in accounts

shop expense (exclusive of

A and D,

Appendix i.
Average Shop Expense

factor

is

Factor.

The

average shop expense

determined as follows: The total shop expense for a

period of three years is apportioned to the several shops in proThis

portion to the amount of this expense incurred by each.

then divided by the total productive

wages in the shop for the same period. In this way a different
factor for each shop is obtained, for example:
expense in each shop

is

DP

DM
DW

50%
110%

75%

These, of course, are not the actual figures at this

(Note.
These
factors are applied as shown on Form AP27, and
plant.

when

applied in a normal year should cover

under Accounts

and D.

(See Appendix

all
i.)

expense incurred

These expenses
and manu-

are such as experiments for the benefits of engineering

and power, planning connected with maetc., and in the several departments DD
machine shop, DP pattern shop, and
wrought

facturing, heat, Ught

chines and materials,

drawing,

DM

DW

SCIENTIFIC

MANAGEMENT

357

shop, such expenses as are connected with manufacturing that

cannot be charged to any particular order. A study of this with

table of accounts A and D should make the matter clear.)

The

factor as found for the

machine shop

is

not used as

it

now

again modified as follows: In a certain class of repeat work (gear cutting for silent gears) one man can run a number of machines.
Now, since the factor is applied to wages and
stands, but

is

since in this special case the ratio of

it

reduced,

this special

wages to output is greatly

becomes necessary to increase the factor applied to
line and decrease that used for the remainder of the

shop product in order that this line carry the proportion of shop
expense warranted by the tools used, the floor space occupied,

and

other considerations governing expense.

readjustment might be as follows:
all

DP

DW
DM
DM
This

is

50%
75%
100%
120%

so adjusted that

-f-

100% wages

e=

total

DM

Therefore the

Regular
Sp)ecial

50%

(regular)

wages

DP + 75%

120% wages

wages

DM

DW

(special)

shop expense.

After all wages, expenses, machine cost stores and worked

materials are entered in the monthly column of Form 41 (AP27),

month obviously gives the shop cost

Theoretically all money sjjent on the production,

the total of column for the

for the

month.

expenses incidental to production, and the product's share of

the shop expenses inherent to all shop output have been charged.
This sheet is progressive in that monthly costs are carried for-

all

totaled to date at the end of every month, resulting in

shop cost to date.
After the total shop cost is arrived at, addition of the general

ward and

A general expense factor is

expense gives the total selling cost.
used in a manner similar to the shop expense factor. It is determined as

follows:

This factor is used to cover what

General Expense Factor.
are known as administrative and selling expenses. Account C.

SCIENTIFIC

358

MANAGEMENT

These include such items as office salaries, wages and watchmen;

repairs and maintenance to all buildings other than shops; planning connected mainly with workmen; contract and sales department; branch

Appendix

officer;

shipping room, etc.

(See

Account C,

I.)

General expense

is

distributed over the following items:

worked materials; (2) Drawings; (3) Erec(i) Shop

tion; (4) Stores sold; and (5) Sublet contracts.
A factor was first derived by dividing the average general
cost of

expense for a number of years by the average of the total of the

above five items for the same period. For demonstration let us
use

30%

as the derived factor.

Obviously

30%

is

an excessive

CONTIiACT COST UMMART

Fork

amount

to saddle

44.

on such accounts as

erection, stores sold,

and

In the case of erection a general expense factor

was determined from items covered by Account E (Appendix i).
This account in a general way covers all expenses of erection
sublet contracts.

This
gangs that cannot be charged to any particular order.
E for a number of successive years divided by the wages

Account

in erection

department for the same period gives the erection

expense factor.
In the case of stores and sublet contracts a factor was deter-

This is arbitrary and

mined from good commercial practice.
will
what
the
stand
without
product
killing orders.
depends upon
Having reduced the factor over some of the items, it becomes
necessary to increase the factors used in the case of drawings and
shop cost of worked materials enough to equalize the total general

when found by

these different factors applied

to the shop cost of the respective items, and the total general
expense as found if the first derived factor were used throughout

expense of the plant

all

the items.

SCIENTIFIC

MANAGEMENT

359

The factor applied to worked materials is a little larger than

that applied to drawings, for several reasons.
Drawings are
Also if the machine hours
not affected by shipping or stores.
fall

below those used when computing the machine hour

cost,

the power that will be written off in machine cost is reduced and
Also if several machines
this margin is covered by this factor.
are run

by one man

at these machines

in the

is

DM the total shop cost of the products

reduced.

The

drawing dep>artment.

There
total

no

is

parallel saving in the

shop cost being reduced

it is

necessary to increase the factor.

Whereas a factor of 30% was first derived, after all these ad-

justments the factors would look something

Worked

like the following:

materials

32

Erection

28%
20%

Stores sold

15

Sublet contracts

10%

Drawings

(Note.

These are not in any proportion to the Company's

figures.)

These factors are applied as follows:

1.
Shop cost of worked materials

worked materials. Form

1.32

selling

cost of

41.

Shop cost of drawings X 1.28 = selhng cost of drawings.

3. 1.20 wages + erection expense -[- deUveries + traveling +
material bought in the field + rentals = selling cost of erection
2.

contract.

(Note.

Factor

is

See

applied to wages only.

Form 42

(AP28).
1. 1

4.

Form
5.

5 invoice price of stores sold

selling cost of S.

43 (AP58).
1. 10 contract price of sublet contracts

sublet contracts,

S.,

selling cost of

Form 34 (AP58).
made

in the case of this

particular shop before the factors are settled.

In the case of a

There

is still

another correction to be

Une of goods called Silent Orders (silent gears and chain)

found that a far greater expense is incurred per dollar of order

special
it is

to get orders in this special line than

is

incurred getting the regu-

SCIENTIFIC

360

MANAGEMENT

So the factor on worked materials is again altered,

and since the value of silent orders is but a small proportion of

lar orders.

the whole shop output the factor on this line rises rapidly thus:
Original factor

New

32

factors:

Regular

DM

30%
45%

Silents

All factors, as stated above, were derived from the average of a

of years.
They are seldom changed, and therefore the

number

any given period, say one month, as computed

not exactly equal the actual selling expense for that

general expense for

by them

will

period, although

it is

The sUght

agree.

surprising

dijBference is

how

closely these

two

figures

taken care of by profit and loss

adjustment.

Monthly all data is transferred from all Form 41 sheets of any

job and from Form 42 onto Form 43 (AP58), and stores sold,
sublet contracts, freight and erection are all entered on Form 43
This sheet is a progressive monthly summary of details.
(AP58)
All goods billed to customer during the progress of the work are
charged off this sheet by the pound at a pound price, and the
.

difference

between the

selling cost to

= balance, which is an
When a job is completed.

date

date and the goods billed to

asset.

All items are transferred from Form

43 to Form 44 (CC39), which is a final contract cost summary of

the job by divisions, showing the profit or loss on same.

APPENDIX
Account A,
AE.

Experiments for

AH.

Auxiliary

Departments

the Benefit of Engineering and

Manufacturing.
Includes all labor and material used in the making of experiments for
the benefit of engineering and manufacture, and any other expenses
connected therewith.
Experiments for the benefit of sales department, Account C.
Includes the labor and materials used in
Heat, Light and Power.

making steam, transmitting power, heating, electric and other light,

water, etc., and also all labor and material used in repairing and
maintaining the apparatus, machines, buildings,
ment.

etc., in this

depart-

SCIENTIFIC

MANAGEMENT

361

AP. Planning Connected Mainly with Machines and Materials. Includes

all labor and materials used in the planning work connected mainly
with machines and materials, when the same cannot be charged
Also the Maintenance of the
directly to a particular department.
Planning Room.
(See detailed subheads AH and AP.)

Heat, Light and Power Department.

AHA.

Engineer,

Assistant,

Firemen and

AH

Miscellaneous Labor.

all

Such

as for cleaning, unloading coal, loading ashes, etc., which cannot be

charged to some other expense symbol of this dejiartment.

AHB.

Fixture

and Furniture.

Includes

such items as benches, cupetc., repairs and mainte-

boards, shelving, partitions, desks, clocks,

Charges against new or improvements charged

nance but not new.

against Account

X.

and supplies, including stationery, which cannot be charged to one

Also all small tools
of the other expense items of this department.

Stores

used in this department that are not borrowed from the tool room.
Repairs, Maintenance and New.
Includes all labor
Boilers, Stacks, Flues, and Ashes Elevators.
and material for overhauling, scaling, testing, etc., repairs and maintenance but not new.
Charges for new and improvements to Account
Y.
Includes engines, generators,
Power and Transmission of Power.

AHC.

AHP.

AHZ.

motors, compressors, pumps and piping to main distribution valve,

and all wiring to main distributing switch, repairs and maintenance
New and improvements charged to Account Y.
but not new.
Includes repairs and maintenance of buildBuildings, Repairs of.

steam heat and water-supply system from main valves,

including all alterations and repairs to patterns and drawings required
Charged for new and improvements charged to
by this work.
Account Z.
ings, floors,

Planning for Machines and Material.

APA.

AP

Shop Engineer,

Production Clerk, and also all clerks, messengers,

whose work is mainly connected with planning for machittes and
materials, and which is not chargeable to any other department order.
APB.
Fixtures, Furniture and Apparatus, includes such items as benches,
etc.,

shelving, partitions, desks, tables, stools, chairs, clocks, electric fans

and other

electrical apparatus, wiring, etc.

New

Repairs and maintenance

and improvement charged

to Account X.
and supplies, including stationery, used in the planning room and
which cannot be charged to a particular manufacturing, equipment,

but not new.

Stores

construction or other

APR.

department
Reclamation for Errors
made

in

rials.

order.

planning for machines and mate-

SCIENTIFIC

362

MANAGEMENT

Synopsis of General Expense.

Account

CA. Accounting department.

CB. Purchasing department.
CC. Sales department.
CD. Estimating department.
CE. Stenographic department.
CF. Photographic department.
CG. Order department.
CH. Entertainment department.
Replacements and diplomatic extra work.
CJ.
CK. Exchange and collection expense.
Louis
CL.
CM. Seattle
CN. New York
chain
CO.
department.
CP. Pittsburgh
CR. Lunch room.
CS. Stores department.
CU. Boston
CV.
CW. Shipping room.
ex. Charities and contributions.
CY. Telephones and telegraphs.
CZ. Repairs to
building.
Manufacturing Department. Account D
DD. Drawing room.
DM. Machine shop.
DP. Pattern shop.
St.

office.

office.

office.

Silent

sales

office.

office.

Buflfalo office.

office

DW. Wrought

shop.

Machine Shop Department.

Note.

DM

All other shop departments are made up of similar subdivisions,

so only the machine shop

is

exhibited.

DMA. All Functional Foremen,

their Assistants and all labor that cannot

be charged to a particular manufacturing, construction, equipment,
or other department order, or to one of the other expense items of this
department, including machine shop tool room. Also the rate setters
and route clerks in the planning department that work only for the
benefit of the machine shop.
DMB. Fixtures and Furniture, Including Tool Room. Includes such

items as benches, cupboards, shelving, racks, partitions, shop lockers,

desks, tables, stools, clocks, tote-boxes, trucks, scales, bulletin boards,
etc.
Repairs and maintenance but not new.
Charge for new to

Accoimt X.

SCIENTIFIC
Stores

MANAGEMENT

and Supplies, including stationery; such as waste,

363
oil, etc.,

which

cannot be charged to a particular manufacturing, equipment, construction or other department order; or to some one of the particular
exp)ense items of this department.
DME. Small Tools. Includes the repairing and maintaining of small
tools such as drills, chisels, planer and lathe tools, dies, milling cutters,
etc.
Also the making of these tools, including the tool steel used
therein, machining and dressing, and all tools of this kind that are
drawn from stores for the purpose of only maintaining the tool room
stock and not with a view of increasing same.
Charges for new tools

increasing the tool room stock charged to Account X.

Includes those tools which do not depreciate
Hand Tools.
rapidly by use, and which add to the permanent value of the shop

Large

equipment, such as vises, anvils, pulleys, blocks, jacks, etc. Repairs

and maintenanu but not new. New and improvements charged to
Account X.
Includes the grinding and dressing
Grinding and Dressing of Tools.
of old tools, and the treatment of new and old tools.
The dressing of
new tools is not included in this item, the work being charged to the
order for the manufacture of tools.
DMH. Special Tools. Includes such tools as jigs, gages and templates
which cannot be charged to a particular manufacturing, equipment,
construction or other department order.
Repairs and maintenance

and new.

DMK. Work

on Defective Material.
i. e., work done by the shops on
material that has concealed defects, that is, such as disclose themselves only after some work has been done.
Note.
Work done on defective material, the defect in which could
and should have been discovered before any work is done, is to be
charged against CSR, it being due to an error on the part of the stores

insp>ector.

DMM. Machines

InOperated by Hand or Power, Including Cranes.

machines with their countershafts or motors and all cranes
Repairs and maintenance but not new,
operated by hand or power.
including any alterations and repairs of patterns and drawings reNew and improvements charged to Account
quired by this work.
Y. Also,
Power and Transmission of Power.
Includes all compressed air lines
within the buildings (main), line shafting and their motors and all
electrical fixtures and wiring for both power and hght.
Repairs and
maintenance but not new. Charges for new and improvements except
electrical fixtures and wiring charged to Y.
Fixtures and wiring
charged to Account X. Also,
Includes labor and materials used for repairing and mainBelting.
Also the cost of new belting
taining all belts in the machine shop.
replacing old, and all belt lacing, glue and small tools used by the
belt fixer.
New belts for new machines and for line shafting charged
to different divisions of Account Y.
cludes

all

SCIENTIFIC

364

MANAGEMENT

DMN. Retainers. Both

(DMNT)

for piece work

(DMNP) and overtime
connected with worked materials, and construction and

part construction.

DMR. Reclamation for Errors made by

DMV. Repairs to Patterns. Includes

the machine shop or tool room.

all labor and materials used in

repairing patterns, and in handling and transporting patterns, inAlso repairs and maintenance of
cluding freight and expressage.
pattern shed.
Charges for new patterns that cannot be made to a
particular manufacturing, equipment, construction or other department order, are to be made to Account X.

DMW. Painting and Moving, and Other Miscellaneous Labor. Including

all labor and material used in painting and oiling worked material
produced in the machine shop, and also all labor used in moving
materials in the machine shop.
Also, oiling and cleaning of all line
shafting and motors, machines when not in operation, shop floors,

windows,

etc.

DMZ. Buildings. Includes repairs and maintenance of buildings,

wash-

rooms, washroom fixtures, urinals, waterclosets and soil pipes, inside

of machine building, exclusive of that part occupied by offices. Also,
steam-heat and water-supply system from main valves, including
any alterations or repairs to patterns and drawings required by this
work.
Charges for new and improvements are to be charged to

Accoimt Z.

ERECTING EXPENSE
Erection Department.

When any of the following symbols are used, they indicate that some
one of the following kinds of expense has been incurred chargeable to the
above department.
EA,

Superintendent

of Erection Department, Assistants, Foreman Gang

their work cannot be charged to a
particular delivery or erection order.
Bosses, Clerks

EB.

Fixtures,

and Workmen when

Furniture,

partitions, desk

and

etc.

Includes

benches, cupboards, shelving,

office furniture, clocks, tool boxes, etc.

Repairs

and maintenance hut not new. Charges for new or improvements are
to be made on proper written authority to (XCB). Also,
Stores and Supplies, Including Stationery, which cannot be charged to a
particular manufacturing, equipment, construction or other department order, or to one of the other expense items of this department.

EE.

Small

Tools.
Includes all small tools purchased or manufactured,
which are used by hand and must be replaced frequently on account
of wear, and hence cannot be considered as adding to the permanent
value of the equipment, such as hammers, wrenches, chisels, rope,
bars, shovels, etc., including repairs and maintenance of same. Also,
Includes those tools which do not
Large Hand Tools and Machines.
depreciate rapidly from use and wear, and which add to the perma-

SCIENTIFIC

EM.

MANAGEMENT

365

nent value of the equipment, such as hoisting engines, winches, etc.

Repairs and maintenance but not new. Charges for new and improvements are to be made on proper written authority to (XEF).
Includes all cost of living, traveling, and stores
Miscellaneous.
and supplies chargeable to this department and which cannot be

to a

and

erection order.

particular
charged
Reclamation for Errors made by
department.
extra exf>ense incurred
EW. Starting up. Includes
delivery

ER.

this

all

in starting

up

machinery, which cannot be charged to any partictdar delivery and

erection order.

EU.

Unloading and Loading. Includes that which cannot

delivery and erection order.
to handling of erection tools.

to

EZ.

any particular

Buildings, Repairs

of.

Includes repairs and

be charged
This refers esF>ecially

maintenance of any

permanent building that might be built by this department. Charges

against new or improvements are to be made on proper written authority to (ZE).

Account X referred to in the foregoing is part construction,

and includes fixtures, apparatus, etc., part of the cost of which
goes to construction and part to shop expense or general expense
and which increases the permanent value of the plant.
Account Y is construction, and consists of machinery, tools
and motive power that adds tp the permanent value of the plant.
Account Z is construction, and consists of real estate, buildings,
etc.

THE PLANNING DEPARTMENT, ITS ORGANIZATION

AND FUNCTION
By H. K.

HATHAWAY

Reprinted by permission of Industrial Engineering

It has not been such a long time since machinery was constructed without drawings except those of a most primitive and
general sort; and details were almost entirely left to be worked
out during the process of construction by the mechanic who did

the work.

The passing of that type of mechanic who,

"
was
expressed by an engineer of the old school,

as

it

once was

able to not only

construct a fiddle but to play a tune on it as well," has been deplored by those who fail to see that the all round mechanic of

the engineer, the draftsman, the chemist, and the

foreman of to-day; and it must be admitted that through the

yesterday

is

changes that have taken place, from both social and economic
standpoints, the world has gained far more than it has lost.

The making
ment,

of complete detail drawings in a drafting departin place of leaving much, if not all of it, to be done in the

shop by the workman, is nothing more or less than planning

No engineer or mechanic
planning what is to be constructed.
in
he
to
this;
fact,
objects if drawings are not suftoday objects
ficiently clear

and complete

to enable the prosecution of his

work

without hesitation or doubt.

Still,

we

frequently find the strange inconsistency of employers

of the old school, who regard a drafting room and

and managers

complete detail drawings as essential to economic manufacture,

as well as workmen who object to working without good drawings,
opposing the carrying of the planning of work one step nearer to

The employer of the old 'School is prone to regard

completion.
"
the planning department force as
non-producers "; and in his
conception of good management, keeping down the so-called
"
"
expense is an essential.
non-productive
366

SCIENTIFIC

MANAGEMENT

367

In a properly organized and properly nin planning department

"
is no such thing as a
non-producer "; every person in the

there

planning department

which

assists in

is

there to perform some specific function,

possible for those in the shop to attain

it

making
and to secure the maximum

greater eflSciency,

efficiency of the

equipment and plant as a whole.

The function of a designing or drafting department is planning

what is to be done. The functions of a planning department are
planning how it is to be done, and when it is to be done. Just.as

now imusual

to find an engineering plant in which there is no

in time will it be unusual to find a manufacturso
drafting room,
of
ing plant
any sort without an efficiently organized planning
it is

department.

The sort of opposition referred to

usually met with in those
who know little or nothing of Scientific Management, or who have
a mistaken idea of

it

is

rapidly disappearing as the true doc-

Management becomes better understood.

Workmen have opposed Scientific Management as they opposed
machinery, and in doing so commit just as grave an error, failing
trine

of

Scientific

to see that

another means to shorter hours of labor and to

it is

Mr. Taylor has repeatedly made the

statement that the greatest fallacy existing in the minds of the
workingmen of the world is that it is to their interest, in the long

increased material returns.

Restriction of output by manufacturers,

run, to restrict output.
or proprietors of the means of production, for the purpose of
would
keeping up prices is equally vicious and short-sighted.

We

most
forts,

how

have better homes, more conveniences and comtheir achievement more time to enjoy them; but

of us like to

and

are

after

we

to

have these things if we do not produce them ?

workmen's error
belief in curtailment of out-

Parallel to the

we find that
put

in the past, very generally,

and even now

to a

considerable extent, employers have believed it to their interest

to pay the workman as little as possible; and to secure results

through driving him without regard to his welfare, rather than

through affording him such assistance as would enable him,
without over-exertion or detriment to health, to produce an
increased output.
/

MANAGEMENT

SCIENTIFIC

368
Scientific

Management does not stand

for either of these fal-

which ignorance is the root, selfishness and shortsightedness the branches, and distrust and animosity the fruits.

lacies, of

No

individual can hope to derive any permanent benefit from

following a course of action that is detrimental to his fellow men;

and, conversely, the individual

a course that benefits society.

sure to be benefited

is

by following

It has been contended by those opposed to Scientific Managethat it deprives

ment
by employers as well as by workmen
the workman of his individuahty robs his chief assets of their

value

and

his skill

Let us look into

traditional knowledge.

the soundness of this contention.

and necessary, and

For example, a skilled machinist running a
lathe can, when taking a finish cut on a piece of work, nine times
out of ten, feed his tool into the work just the right depth to

Manual

skill is

at least equally valuable

cannot be supplanted.

make

the piece the size required, getting

whereas a

less skilful

making the

man would

piece below size,

it

right the first time;

be afraid of going in too far and

and consequently would make

several attempts stopping and

calipering after each until he

The skilled man will

right or spoiled the job.
in
his
work
with
confidence, know
mistakes, proceed
got

in

it

an emergency,

will require less supervision,

make

fewer

what

to

and as a

do

result, will

turn out more work and save expense, consequently being more
valuable under any system than the unskilled.

Under the old type

sessing latent skill are

of

management

employed

work that does not bring

skilled

men and men

frequently in the

pos-

performance of

into use; the result being that they

may be paid less than their services would be worth if they were
employed constantly on work calhng for the exercise of skill.
skill

Through proper planning this may be accomplished.

Under Scientific Management there are new positions created,
calling for good men possessing judgment, experience and skill,
such as gang bosses, instructors, planners, time study men, etc.,
offering opportunities for advancement that did not formerly
exist.

men.

These positions are

filled

from the ranks of the work-

MANAGEMENT

SCIENTIFIC

As

369

the workman's individuality and initiative, Scientific

to

Management develops them along

facts supplanting rule-of- thumb

right lines with demonstrated

and tradition as a

basis;

and

it is

a fact that in practice these qualities are stimulated rather than

restricted.

Even though

the best

men

in

an establishment

may be

selected

for the planning of work, they will quite frequently receive sug-

gestions from workmen who may be much less experienced or

The
skilful, that result in savings in time and improved methods.

man

possessing initiative contemplates with a critical

laid out by his brethren in the planning department, and takes pride in his ability to show them something; at
the same time he is quick to recognize and accept that which is
skilled

mind the methods

good.

As

to the

prises

as to

much

workman's
that

is

traditional knowledge, it usually

comboth

good, indiscriminately mixed with error,

It becomes the function of Scientific

methods and means.

Management to bring together, analyze, and prove the vast

amount of knowledge making up the trade, and to add to it.
This must be classified, tabulated, and made available, through
the planning department, to all men; whereas formerly it was
scattered
some in the possession of one man, and some in that
of another, and not always available when most needed.
The

first great

principle of Scientific

Management

is the establishment of

a science in place of rule-of-thumb knowledge.

Before entering into a description of the Planning Department's
functions and mechanism, I wish to make one thing very clear:
there is nothing done in the Planning Department that did not
have to be done under the old scheme of management by some-

Some of
body
usually less efficiently, but still it was done.
this work was done by the foreman, and much of it by the workman. Some men in the shop were good at planning their work,
others were not.

However, even

in case all

men

in a

were

to the best

equal
say the one who shop
was selected
that reason
the Planning Department
be
would

man in this respect

for

a position in

for

it

still

370

SCIENTIFIC

more economical

to

do

it

MANAGEMENT

in the Planning

Department

for the

following reasons:
1. The man in the Planning
Department has classified data,
aggregating many times the individual knowledge and experience
of any one man, upon which to draw in planning the best method.

He

does the planning far enough in advance so that if any

special appliances are found to be desirable or necessary, they
may be procured or made by the time they will be needed;
2.

whereas
the

if

the planning of what is to be done and how, is left to

the machine, he must frequently use tools and appli-

man on

ances which he knows are not the most suitable because the right
ones are not available; and in some cases, has to abandon the

made or bought.
he
do most of his planning and making preparamust
Finally,
in
the
of
machine work, while his machine is standing
case
tion,
idle; whereas, if it is done in advance, in the planning department,
job imtil tools are

workman and his machine will be turning out product.

Indirect expenses, such as taxes, hghting, heating, interest, selling,
etc., go on just the same when a machine is standing idle, and add
the

to the cost of the product, consequently there is a distinct gain in

having the planning done in advance in a planning department,

while the machines are running on other work.

"

Mr. Taylor states, in his paper on

Shop Management,"
with reference to the work of the planning department:
The following is an outline of the duties of the four functional bosses who
are a part of the planning department, and who in their various functions
The first three
represent this department in its connection with the men.
and receive their returns from the men,
These four representatives of the planning room are, the
"
"
instruction card men,"
time and cost clerk," and
clerk,"

of these send their directions to

mainly in writing.
"
order of work
"

shop disciplinarian."
After the proper man in the planning
Order of Work or Route Clerk}
department has laid out the exact route which each piece of work is to travel
through the shop from machine to machine in order that it may be finished
at the time it is needed for assembling, and the work done in the most
"
"
route clerk
economical way, the
daily writes lists instructing the workalso
all
of
the
executive
men and
shop bosses as to the exact order in which

As will be noted further along in this paper, the current practice has divided the
work and route clerks in a manner slightly different from that

functions of order of

here indicated.

Ed.

SCIENTIFIC

MANAGEMENT

371

the work is to be done, by each class of machines or men, and these lists constitute the chief means for directing the workmen in this particular function.

Instruction Card Mtn.

The " instruction card," as its name indicates, is
the chief means employed by the planning department in instructing both
the executive bosses and the men in all of the details of their work. It tells
them briefly the general and detail drawing to refer to, the piece number and
the cost order number to charge the work to, the special jigs, fixtures, or
tools to use, where to start each cut, the exact depth of each cut, and how
many cuts to take, the speed and feed to be used for each cut, and the time

within which each operation must be finished.

It also informs

them

as to the

piece rate, the dififerential rate or the premium to be paid for completing the
task within the specified time (according to the system employed); and
further, when necessary, refers them by name to the man who will give them

This instruction card is filled in by one or more members

especial directions.
of the planning department, according to the nature and complication of the

and bears the same relation to the planning room that the
drawing does to the drafting room. The man who sends it into the shop and
who, in case difficulties are met with in carrying out the instructions, sees
"
the instructhat the proper man sweeps these difficulties away, is called
tion card foreman."
"
Time and Cost Clerk.
This man sends to the men through the instruc"
all the information they need for recording their time and the
tion card
cost of the work, and secures proper returns from them and refers these for
entry to the cost and time record clerks in the planning room.

instructions,

This description of the duties of the principal men in the planning department is so brief, that one not familiar with the organization of

an existing planning department does not get a very

"

clear idea of the subject.

Indeed,

Shop Management

"

is

so

condensed, that few people begin to get much out of it until they
have seen actual applications of the things described, and have
"
re-read it several times.
Nevertheless, Mr. Taylor's
Shop
"
Mantreatise
on
Scientific
is
the
most
Management
complete
today; and there has been practically
"
nothing written since that has not already been covered in Shop

agement that

exists

Management."
Outside of time keeping and cost keeping, the functions of the
planning department may be classified under two general headings,

namely:

Planning
to be done.
(a)

how work

is

to be done; (6) Planning

when work is
Under the first heading come
The
The

route clerks.
instruction card

men and

time study men.

SCIENTIFIC

372

MANAGEMENT

Under the second heading come

The production clerk, and
The order of work clerk.

men

performing these functions, we have,

acting as auxiliaries to them, recording clerks, balance of stores

In addition to the

clerks,

foimdry

clerks,

and

clerks

who

write

up the numerous

detail orders, tags, etc., used in directing the work.

and impedimenta used by, each

of,

of these will

The

duties

be described

later

in detail.

The question is frequently asked: How many men shotdd be in

the planning department in proportion to the number of workmen ? To this the answer is that it depends entirely upon the
and nature of each specific business. In some cases two or
more men are required for each of the positions enumerated
while on others two or more of the positions may be combined.
For example, one well-known concern has a shop employing about
four hundred workmen, with a planning department composed
of only four men, while another, employing about one hundred in
size

shop, requires a planning force of twenty people.

its

The reason

for this being that the first concern referred to manufactures, in

a limited variety of products in large quantities, with inits

shop,
frequent changes in design

in most cases each machine running

months, or at least weeks, on the same job; while the second

concern manufactures a great variety of products in compara-

for

much of

product being special and

In the second concern,
subject to frequent changes in design.
each workman, on the average, works on four different jobs per
tively small quantities

their

day.

description of the planning department of the second plant

referred to will best serve the purpose of illustration for this
article.

In the planning department of the plant in question, we have

in some cases fimctions being further
the following functions
here
are
sub-divided.
given in the sequence that each
They
takes up, ordinarily, the work of planning for a manufacturing

order that

is

entered.

Ordinarily, an order passes in turn to each

SCIENTIFIC
of these

men, who performs

his

MANAGEMENT
work

373

in connection with planning

there are cases, however, where several of them may be

in some plants this
working on the same order simultaneously
for

is

it;

the rule.

C, Foundry Clerk.
A, Production Clerk.
B, Route Clerk.
(Sometimes called Special Material Clerk.) D, Balance of Stores

E, Instruction Card Men.

Clerk.

Rule Men.)

Slide

F, Route

(Including

File Clerk.

Time Study and

G, Order of

Work

H, Recording Clerk.
In addition to these there are: the Mail Carrier (who in this

Clerk.

instance

also the Tickler Clerk), Stenographer, Messengers,

is

Time and Cost

and

Clerks.

The Production Clerk is the connecting link between the shop

and the sales department. He is the man who furnishes information upon which the sales department bases its promises of
delivery, and who is responsible to the sales department for
meeting deliveries promised.

Based upon the information he receives from the sales departas to when orders are to be shipped, and upon information
from the Balance of Stores Clerk as to what manufactured arti-

ment

cles are required for stock,

schedule or
orders in

"

the Production Clerk prepares a

This is essentially a list of all

Order of Work."

hand

for each

department, arranging the orders accord-

ing to their relative importance, taking into consideration the

amount of work to be done in connection with each, and the date

upon which it should be completed.

There are a number of ways

of classifying or grouping the various orders

each developed
to suit the needs of different businesses.
In the plant being used
for illustration, the classes are practically as follows:

Class

work

in

Emergency Class, made up, as its names implies, of

for one reason or another, over

must take precedence,

any other class.

orders that

Orders in this class should be the exception, and may only be

placed there with the consent of the manager, or some one else
In the Emergency Class we would have, for
high in authority.
the
order
for
example
getting out special parts for a break-down
that
a customer ordered a machine on which
job; or, assuming
:

SCIENTIFIC

374

MANAGEMENT

was promised in a comparatively short time, and as it

neared completion, one of the large castings proved defective and
had to be replaced
the work of replacing that casting would
delivery

come within the Emergency Class.

Work in the Emergency Class receives special treatment from
each man. In the planning department, if possible, two or more
of the steps of the planning are carried
of in sequence; and in certain cases I

on simultaneously, instead

have known

of

work being

started in the shop as soon as the planning had been completed

for the first operation, the planning for the following operations
being done while the first operation was in progress. As soon as

one operation on an emergency job is completed, the next must

be immediately started, even if it is necessary to take some other
job, not in the Emergency Class, off a machine before being
fimshed; although, in most cases, this can be planned ahead.
While much more might be said of this phase of the Order of

Work,

I think the

examples given

will

convey a pretty clear idea

"
Emergency Class of orders, and how they are handled.
This is typical of what Mr. Taylor means when referring to
"exceptions," and is intended to call attention to the flexibility of
of the

"

the system. Exceptions of this kind are so frequent in a shop run

under the old type of management, as to be almost the rule.

For the sake of economical manufacture, there should be very

few orders handled in this manner; and the more efficient the
"
Emerplant is in general, the fewer orders there will be in the
"

"

Order of Work."
of the
gency Class
Class 2. Tools or Appliances required for work under way, or
for maintenance of the Tool Room stock.
Orders for the making or repairing of

tools, etc.,

this class are placed virtually at the top of the

list,

as

comprising
obvious

it is

we have the proper tools we cannot properly prosecute

work on our products.
Class 3. Manufacturing Orders for products required to fill
shipping orders on hand, including any stock parts required for
that unless
the

these.

This class comprises all orders for products not carried

but which must be made up after receiving the cus-

in stock,

tomer's order.

This class

may

be subdivided,

if

desirable, into

SCIENTIFIC
a
h

MANAGEMENT

375

Orders on which definite shipping dates have been promised.

Orders which there abundant
time in which to complete
for

is

them.

Class 4. Orders for Stock Parts.

Class 5. Orders for Stock Machines.
Under each of these classes are arranged,
relative importance, the

in the order of their

manufacturing orders that are in prog-

ress.

The Production Clerk revises the Order of Work for each department at regular intervals, and more frequently if need arises. It
is

not only the Production Clerk's duty to lay out the Order of
see that it is observed in the drafting room, in

Work, but he must

the planning department, and in the shop.

This he does by daily

checking up. For example, he must fix a date for the completion
of the drawings, of each stage of the planning, for the delivery of
castings, etc., all based upon the date required for the completion
or shipment of the order.
He must be constantly looking ahead
to assure himself of the possibility and probability of each stage
of the work being completed in time and where he sees the work
;

falling behind,

must arrange

to

have the

man who

is

overloaded

given extra temporary help.

In the plant which I am describing, there are at times sudden

inundations of

new and

augment the planning

special work,

force

by bringing

when
in

it is

necessary to
the shop

men from

sometimes functional foremen, who are temf)orarily replaced by

the machines, and sometimes taking men directly from

men from

the machines

these men returning to the shop when they are

no longer needed in the Planning Department. At other times

the reverse has been true there has been an abundance of work
in the shop and Uttle in the Planning Department, in which event
some of the regular Planning Department force are temporarily
:

transferred to the shop.

These

shifts

vice versa of

from the Planning Department to the shop and

course occur only as a result of abnormal conditions,

but every concern should be prepared for them.

It is a

remark-

able tribute to the spirit promoted by Scientific Management,

that men can shift from the workman's side to the management's,

SCIENTIFIC

376
and the

reverse, without sviffering in their

and

their associates;

of the

MANAGEMENT

two

it is

own esteem

or that of

pretty good proof that the point of view

Under

sides is coincident.

Scientific

Management,

management are not regarded as possessing

any superior endowments that set them above the rank and file.
With respect to work in progress in the Shop, the Production
those composing the

Clerk, in addition to preparing the Schedule or Order of Work,

systematically, through the route sheets, progress sheets, and the

up the progress of work to see that the

Order of Work is being followed, and for the purpose of detecting
and straightening out things that may have gone wrong. This
bulletin board, checks

will

be touched upon later in the description of the bulletin boards,

route

The
an

and

files, etc.,

their use.

practice followed in checking up the progress of orders by

Production Clerk, and the only one that accomplishes

efiicient

the desired results

that

of fulfilling promises as to delivery, is

what the average person would do, viz: he does not

start in his daily checking up of the progress of work by first looking up the orders due to be shipped today, or those overdue, and
following down his list, but starts at the bottom of his list, with
the orders just received, and makes sure that everything necessary
to the completion of the order on time is being done; the last
order to receive his attention is the one due to be shipped, and as a
the reverse of

matter of fact

it

should be the one that least needs

it.

principal cause of failure to complete orders on time is that

or no attention is given them on this score imtil the date of

The
little

shipment approaches. In machine shops a great deal of time is

ordinarily wasted in getting drawings and patterns made, and
This time cannot be made up
getting materials into the shop.
after the

work

is

started,

and the

effort to

sion, decreased efficiency of the plant,

do so

results in confu-

and more or

less friction

among the individuals comprising the organization.

From the foregoing it will be seen that the Production Clerk
need not be a man with technical or practical shop experience;
although he would, all other things being equal, be benefited
He must, of course, be familiar with the processes of
thereby.
manufacture.

His function

is

to decide

when things are

to

be

SCIENTIFIC

MANAGEMENT

377

done throughout the plant, and his authority in this matter

extends to, and must be respected by, every one in the manufacturing plant, from the manager and superintendent down to the

He must plan, and

messenger boy and the humblest laborer.
transmit to each through the proper channels, information as to
what each is to do now, what is to be done next, and what is to
follow that;

but has no authority to say how things are to be

done.

The Production

Clerk's

function has been described

first

the coordinating factor or connecting link between

the other functions and departments.

because he

is

The Route

Clerk.

The work of the Route Clerk

is

the

first

step in the planning to take place after all information as to what

is to be constructed or manufactured has been procured, and put
in

working shape.

ing plant this

bills of

In an engineering or machinery manufacturis compiled in the form of drawings and

information

material,

and

it

has been the writer's experience in other

always some equivalent of drawings;

specifications, and sometimes samples.

lines of industry that there is

sometimes in the form of

The Route Clerk must be a man with practical shop experience.

He must be thoroughly familiar with the shop practice and with
the products, must be capable of readily reading drawings or their
equivalent, and must have the ability to plan and put in writing
in the form of Route Charts or diagrams
the method to be

followed in the manufacture of the products.

He must have data available pertaining to all machines, giving
their capacities, their location, etc., such as will enable him to
decide which machine

is
the best for performing any given
on
the
work
to
be
done.
He must consult frequently
operation
with various foremen in the shop with reference to the best
methods to be followed in machining various parts and assem-

bling them into groups and machines.

the Time Study and Instruction Card

He must also consult with

men so that the machines

which he assigns work are those that will permit of its being
in the most economical manner, and so that the Instruction
Card men may avoid having to work up completely new cards

to

done
for

a job, whereas,

if it

were assigned perhaps to another machine,

SCIENTIFIC

378

MANAGEMENT

make use,

either wholly or in part, of instruction cards

that had previously been prepared for other work of the same
He must also consult frequently with the Engineercharacter.

they could

ing, Drafting, or

Designing Department, as well as must the

Instruction Card men, so that machines or other product may be

designed with a view to the greatest facility and economy in their

manufacture.

In a large plant, where more than one Route Clerk is necessary

we would have one or more men who were

to handle the work,

expert in assembling to make up the Route Charts, laying out

only the manner in which the parts are to be grouped and the
assembling operations, while one or more others, especially quali-

would lay out the various machine operations on each of the

parts and compute the quantities of materials required, etc.
Others would perform the purely clerical work attached to this
fied,

function.

In other words, the larger the plant and the more varied the
line of

work, the more the work

is

divided up along lines of special-

ization.

Let us now consider the work of the Route Clerk in a machine

representing perhaps the most complex problem, from
shop,

which the reader who is interested in other lines of manufacture

may also form an idea of the application of this function in his

own

business.

is the duty of the Route Clerk to take the drawings that

have been prepared by the Engineering Department, and, in the

It

case of a machine, analyze the construction of the machine, first

splitting it up into groups of parts that can be assembled together
independently of the rest of the machine; deciding the relative

order of importance of these groups, taking into account the

length of time it will require to get the castings and other parts
that must be made especially for the order; the amount of work

on the various

parts, as well as in assembling them; and the stage

which each one of them will be required.

in the final assembling at

This he lays out in the form of a diagram.

He next takes each one of the groups, and lays out a diagram or
route chart showing, in the order of their relative importance,

all

SCIENTIFIC

MANAGEMENT

379

be made especially for the order, and the

operations to be performed upon each of them; their proper
sequence; and the machines in which the various operations are

of the parts that are to

He also indicates the quantity and kind of

to be performed.
material required for each part, indicating whether it is to be purchased or made especially for the job, or whether it is to come
from

stores.

He also indicates what parts, if any, are

in a finished condition

from worked material

to be

stores.

drawn

These he

shows in the order of their relative importance, and assigns to

each one a mnemonic symbol in accordance with his classification,
which serves the purpose of identifying it as it progresses through
the shop; indicates what part of the machine it goes in; as well
as serving as an operation order number and an index to the
instruction cards for each of the several operations to be performed.
The symbol also is used in connection with the cost

keeping system, and

represents.

filing

any data pertaining

The Route Clerk

also has

to the piece that

made up by a

it

clerk the

route sheets and progress sheets upon which the progress of work
through the shop is to be recorded, as well as the various Operation Orders, Inspection Orders, Stores Issues, etc.

The Route Charts

or diagrams described might be called

material, showing as they do not only each part
graphic
entering into the construction of the machine or article to be
bills of

manufactured, but also which parts go together, and how they

are to be put together and the operations that must be performed

on each preparatory to

their being

put together, as well as the

and the kind and quantity of the

These charts
materials from which the parts are to be made.
vary from a very simple one for an article composed of three or
four pieces, to a complicated one, say, for a locomotive, which
In the case of
would consist of perhaps twenty large sheets.
single pieces to be manufactured, no route chart is of course

number

of each part required

required, a simple
cases.

route sheet serving

the purpose in such

The man filling

Foundry Clerk {or Specie^ Materials Clerk).
the position is
be
a
as
need not
mechanical man,
He should, however, be a live wire, as it devolves
pi^rely clerical.
this position

380

MANAGEMENT

SCIENTIFIC

upon him not only

to order certain materials, but to see that they

are gotten into the shop as required.
In many lines of industry there are certain materials that are

not carried in stock, but are ordered from outside parties specially
for the order on which they are to be used.
Castings are typical
of this class of materials in the case of

do not operate

their

own

many machine shops which

foundries.

To take care of such materials is the duty of the Foundry Clerk.

He maintains the pattern records showing where each pattern is;
whether in the pattern storage or at a foundry; when sent to the
He prepares detail orders on
foundry and when returned, etc.
castings required, giving the foundry all neceshas
the patterns delivered, prepares for the
sary information,
foundry an order of work to guide them in the matter of which

the foundry for

castings are
the order of

all

wanted first, etc., and

work is followed.

Under the

old system of

follows

management one

obstacles to economical manufacture

castings called for in a lot.
certain pattern, the foundry

them up

If

is

to see that

of the greatest

piece-meal deliveries of

twenty castings are wanted

makes them

of a

as suits its convenience,

two to-day,
and delivers them to the machine shop in driblets
and
so
on.
This makes it
one to-morrow, five a few days later,
difl&cult to

keep track of them, and results frequently in the foreis hard pressed for a job for a workman, letting him

man, when he
start

on the few delivered, making several

"

bites at the cherry,"

time spent in setting up the machine and

with
In many shops, as a
tearing it down, where once should suffice.
result of this, there can be found lying around in corners and under
the resultant loss of

benches, a lot of castings representing cases in which the foundry

has delivered in excess of the number required, while in other
instances, part of a lot of machines will stand around unfinished
after the rest of the lot to which they belong has been completed

and shipped, waiting for the foundry to deliver the balance of

certain castings which they have forgotten.
This cannot happen under the Taylor system, as it is the duty
of the

Foundry Clerk

delivered in one lot,

to specify the quantity of each casting to be

the lot is to be delivered, and to accept

when

MANAGEMENT

SCIENTIFIC

381

from the foundry no more and no

The

fied.

less than the quantities specito

the
foregoing will be found in almost any
analogy

line of industry.
Tlie

Under the Taylor System

Balance of Stores Clerks.

it is

"
Balance
the practice to keep in the Planning Department,
"
article
for
each
sheets
or
Sheets
showing
running inventory
carried in stock:

(a)

carried in stores,

{b)

The quantity on hand; that is,

The quantity on order but not yet

actually
received

for shipment or
(c) The quantity required for orders
manufacture to which they have been apportioned, but not yet

in stores,

issued.

The quantity

{d)

This information

available for future requirements.

constantly needed in connection with the

is

planning of work.
Orders on the storeroom (stores and worked material issues)
are made out for all of the various materials or parts carried in

as

stock

soon as determined by the Route Clerk from the

drawings and
route sheets
orders

bills of

and

(customers'

material and shown on the route charts and

for articles

orders)

from stock called

for

by shipping

immediately upon receipt of the

order.
It

is

the Balance Clerk's duty to apportion in advance the

them from the

materials called for on these issues, and subtract

After having drawn down his balance

available, he compares it with his minimum quantity shown at
If the balance available is in excess of the
the top of the sheet.
minimum quantity, that ends the transaction; but if it is less than
quantities available.*

the

minimum, he must

for replenishment.

issue

an order

for the quantity indicated

This he does, in the case of purchased articles

on the Purchasing Agent, or, in the case of worked

by issuing a manufacturing order. The quantity to be
ordered is also shown at the head of the Balance Sheet.
When an order has been issued for the replenishment of stock,
he enters the quantity in the column showing materials ordered,
adding it to the previous balance, and similarly adds it in the

by a

requisition

materials

column showing the quantity available.

'

It

must be

clearly understood that

"

quantities available

apportionment or reservation only and not

for issue.

Ed.

"

means available

for

SCIENTIFIC

382

The minimum quantity

is

MANAGEMENT

so set that materials will be received

before the quantity in stores is exhausted, and hence may be considered available as soon as ordered; consequently the balance
ordered, plus the quantity on hand, minus the quantity apporLikewise the sum of the
tioned, equals the quantity available.

balance ordered and the balance on hand, as shown in their

respective columns, should equal the sum of the balance available

and the quantity apportioned.

This

is

a check on the accuracy

of the entries.

In arriving at the proper minimum quantity for each article

take into account the length of time it takes to get the

we must
articles,

and the rate

Fixing these

of consumption.

minimum quantities properly in the first place, and

their revision to meet changes in conditions is very important,

and changes should not be made without the approval of some one
competent to judge the advisability of the change. It should be
the Balance Clerk's aim to keep his stock down as low as is consistent with economical purchasing, and at the same time avoid
not having materials on hand when wanted. He must also keep
the designing department and the Route Clerk advised as to any
materials on hand for which the demand seems to have ceased,
so that they may be used up if possible, and he should be consulted frequently by these parties so as to avoid calling for materials that may not be regularly carried in stock where something

equally suitable is on hand.

In the event of materials not being available at the time of
apportionment, the Balance Clerk on their receipt notifies
the proper party in the Planning Department (the Recording
Clerk) that the work in connection with which they are to be used

may

be started.
to the Balance Clerk the stores
have been taken out of stores. These

Each day the storeroom sends

issues for materials that

he sorts by their mnemonic symbols into piles, so that their

arrangement is the same as that of the Balance Sheets on his files,
using for this purpose, where the number of stores issues is sufficient to warrant it, a special sorting tray commonly called a
"
flying

machine."

SCIENTIFIC

MANAGEMENT

383

After having sorted his issues he enters each one on

its

sheet in the column for materials in stores, subtracting

the balance previously on hand, and also enters it in the

proper
it

from

column

showing materials apportioned, subtracting it from the balance

there shown, and checks off the entry made at the time the materials were apportioned.
The total or balance in this column
should be the

sum

of the

unchecked items.

There are some exceptions to the rule of apportionment in

in general things to be secured from stores imme-

advance

diately after the issue

is

written

and in such cases the quantity

must be subtracted from the quantity available. In the

most office supplies and some shop supplies, it is the rule
not to apportion materials, and in such cases only the columns for
materials on hand and materials ordered are used.

issued

case of

Upon receipt of materials in stores the Storekeeper notifies the

Balance Clerk on forms provided for the purpose, and entries are
made in the columns showing materials ordered and materials on
hand,

subtracting

the

ordered, and adding

it

The Balance Clerk

quantity

from
on hand.

received

to the balance

the

balance

responsible for keeping the Production

Clerk advised as to stock parts that are running low, and for the
accuracy of his sheets; in this connection he must devote a ceris

amount of time each day to checking up his balance with the

quantities shown on the bin tags and the quantities actually in the
tain

bin.

The foregoing is, of course, only a general outline of the Balance

Clerk's duties, intended to give a good general idea of them.
The unique features of this element of the System are keeping
:

the stores balance sheets in the Planning Department instead of

room, as is customary under the old style of manage-

in the store

ment, and the apportionment in advance and subtracting the

quantity apportioned from the quantity available, issuing as a
replenishment of stock when the quantity
thus shown to be available for future orders falls to the estab-

result, orders for the

lished

minimum

drawn down

instead of

for other orders

when

the quantity actually in stock

is

minimum without regard to the requirements

under way in the shop which do not "happen to

to a

SCIENTIFIC

384
have been called

but which

MANAGEMENT

be called for at any minute.

As a preventive against awkward and costly delays, the value of
apportionment in advance will be obvious to the reader.
for,

may

The writer recalls, some years ago, when he was the superintendent of a plant manufacturing steam engines, after several
experiences of not having on hand certain fittings when they were
wanted, making a practice each time an order was received to
build an engine, of going to the storeroom with a list of all the
parts to be drawn from stock for the order in question, finding

how many

were in stock, and then going around

the shop to each engine being erected and finding out which ones
had their parts issued to them, and which had not, subtracting the
out

of each there

quantities required by those for which the parts had not been
drawn from stock from the quantities in stock, thus finding out
laboriously, at the expense of time that could have been more
profitably employed, whether or not the parts required were
With the system of apportionment
available for the new order.
that has been described, in connection with a routing system,

done by a clerk, leaving the superintendent

devote their time to more important matters.
The question of material being on hand when required should
not concern them at all.
this is automatically

and foreman

Mnemonic

free to

Classifications.

The balance sheets must, of course,

be so arranged and indexed in

the sheet for

any

entries are to be

aid of

and

mnemonic

for

"

article

made

as to facilitate finding quickly

is desired, or when

files

when information
This

thereon.

classifications for

worked materials

"

"

is

stores

accomplished with the

"

or purchased articles,

or manufactured articles.

As has already been pointed out

in discussing the duties of the

route clerk, these classifications serve also certain purposes in
connection with that function, and in directing and keeping

track of

work

in progress in the shop.

They

likewise are fol-

the symbol not

lowed in arranging the bins in the storeroom
its
in
but
location
the
article
the
storeroom as
only indicating

and

a means of indexing the route sheets on which

the progress of work in process is recorded, so that when information is desired of any particular piece in any particular lot of a

well

offer

MANAGEMENT

SCIENTIFIC

385

given kind of machine in progress, the sheet on which such information will be found may be turned to and the information

obtained without delay. The same thing is true of recording the

progress of work at each stage, and ascertaining the next step to
be taken and issuing the necessary orders for it.

The same
"

classifications afford

stores issues," etc., for entry

a means for sorting time cards,

on cost

sheets,

and

for bringing

together imder various headings information, expenses, and

data of various sorts pertaining to the product, methods of manuThe " mnemonic symbol " system is,
facture, and accounting.
in fact, an important element in the mechanism for the application of the principles of Scientific

which any system developed

Management, and one without

purpose would be greatly

for that

handicapped.
This subject: classification, its basic principles, and the ends it
serves, is so large that a book might well be written on it, and it
cannot be entered into at any great length here, but a few brief

remarks

serve to give the reader a fairly clear general idea of

are made up.
this system of classification is, as in the

may

how such classifications

The first principle of

Dewey

decimal system, so generally used in libraries, the group)be classified first into broad generic classes.

ing of the things to

A letter is selected,
each

class.

classes,

mnemonic

if

possible, to designate

Next, each of these classes

is

divided into smaller

one that

each of which

is

is

designated by an additional letter that

is

and these sub-classes are still

further divided and designated by an additional letter, and so on

suggestive of the thing

down

it

represents,

to the smallest unit in a class, each letter qualifying or

indicating a subdivision of the class or thing indicated by the

letter preceding it.
Figures are introduced into the symbols in

various

ways

illustrations

to serve certain purposes, as will

which

be indicated by

follow.

Let us consider that we are working up a classification for a

manufacturing concern whose product covers a wide range

large

machinery for the generation and transmission of power, metal-working machinery, wood-working machinery, road making machinery, and certain other miscellaneous
of machinery, including

SCIENTIFIC

386

MANAGEMENT

The classification in question is intended to be used

products.
in connection with the company's accounting and cost keeping,
system, and certain other purposes.
We shall, as is customary, reserve the letters A to F inclusive to
designate the several broad classes of indirect expenses, and the

its

routing system,

its stores

X, Y, and Z to designate the company's building, machinand

other equipment accounts, leaving the letters G to V
ery
inclusive (omitting S, which is to be used for stores or purchased
articles, and I, J, O, and Q on account of their resemblance to
figures and the consequence of their being confused with figures
letters

be introduced into our symbols) to be used in designating the several broad classes of the company's products which we
that

may

would

classify as follows:

A
B
C

Indirect Expenses

D
F

H
K
L

Machine Tools (Metal-working)

N
P

Power-Generating and Transmission Machinery

Product

Road-Making Machinery

Various Miscellaneous Products

not otherwise
W Wood-Working Machinery
X
Y
Z

Direct Expenses

T
U
V

Classified

Each

of these classes of

Plant and
Equipment

machinery would then be subdivided

For
it is composed.

into the various kinds of machines of which

the purpose of illustration

sion for one of them.

Machinery.

it will suffice

to carry out the subdivi-

Let us take Class

M Metal-working

SCIENTIFIC

MA

MB

MC
M D

MANAGEMENT

MN
MP Planers
MR
MS Shapers
MT
MU
MV
MX
MY
MZ

Boring mills

ME

MF
M G
M H
M K
M L Lathes

MM

387

Milling machines

Each of these would again be subdivided into the various

Thus, in the case of
groups of parts making up the machine.
lathes,

MLB might indicate the bed group, M L C the carriage

group, M L H the head stock group,

etc.

M L C A indicating
M L C C the Cross
and M L C C would

The Carriage Group might be split up into

Apron division of the carriage group,

the

The

i
division of the carriage group,
first piece in that division of the carriage group.
size of the lathe would be inserted in the symbol between the

first

and second

Slide

indicate the

letters, thus:

M 20-72 L would indicate a 20

in.

lathe with a 72 in. bed.

Figures to indicate operations to be performed are prefixed to the symbol, thus: 5
20-72 L C 2 C
the
fifth
to
be
would indicate
operation
performed in machining

the second piece in the cross slide division of the carriage group
At the end of the symbol we

of a 20 in. lathe with a 72 in. bed.

would add a number to indicate the particular

lot to

which

this

part belonged.
It will be seen that neither figures alone nor letters alone could
be made to adequately serve the several purposes for which the

symbol

is

designed.

In developing this system of classification, which in its present

form represents a long process of evolution, as indeed does the
entire Taylor System, Dr. Taylor tried first using figures alone,
then letters only, neither of which completely met all requirements, and finally settled upon the combination of the two such
as has been briefly described above.
Time Study and Instruction Card Man.

function

must

also be a practical

The man

filling this

shop man, and one who appre

SCIENTIFIC

388

MANAGEMENT

dates the importance of minute details.

I. Make such elementary time studies as
order to ascertain the best

formance of each

method

work.

class of

It is his

duty to:
be necessary in

may

to be followed in the per-

To

prepare instruction cards

indicating the method to be followed in performing each operation,

what

2.

tools to use, etc.

This function was described at considerable length by the

"
writer in an article entitled
Elementary Time Study as a Part
of the Taylor

of

Management," published in the Feb.,

191 2, issue of Industrial Engineering, to which the reader is
System

respectfully referred.

The Route File

Clerk.

for each article to be

In connection with

made and each

the route sheets

operation on each route

paper to be filled out an order

on the storeroom for the materials from which the article is to be
sheet, there are several pieces of

to be attached to the lot of parts;

an order

for

each

operation, for the inspection that takes place at the start of

each

made; a tag

operation as an insurance that the operator understands the

requirements and gets started right, for the inspection of the work

done on the

moving

lot of parts at the completion of each operation, for

the material from the storeroom to the machine that is

to perform the first operation, and for moving the parts from a
machine where an operation has been completed to the machine
in which the next operation is to be performed.
If the writing of these operation orders, etc.,

was

left until

they are needed, it would result in such delay and confusion that
the whole scheme would fail to work, and even if it could be

made

to work, the expense of doing it that

way would be

pro-

hibitive.

All of these pieces of paper for a given article or unit contain,

with the exception of the operation number, the number of the

machine or work-place where the operation is to be performed,

the time the operation should take, and exactly the same items
of information, consisting of the order number or symbol to which
the article belongs, the piece symbol, the number of pieces in the
the drawing number, etc.; and consequently a dupUcating
"
"
machine, either of the hectograph type or the multigraph can
lot,

SCIENTIFIC

MANAGEMENT

389

be used to good advantage. Which type of duplicator should be

used depends upon how many copies are required from the same
writing; this varies in different types of industries.
It is the duty of the route file clerk, or operation order clerk, as
he is sometimes called, to prepare all of these written orders

In a sense this might be regarded

required by the route sheets.
The operation
as a subdivision of the route clerk's function.

by the route

orders, etc., are placed

a receptacle
the same, and

clerk in

file

"

"

known as an envelope sheet or an equivalent of

placed in the route file, where they will be conveniently at hand
when wanted.

To most

would perhaps seem unlikely that there

should be any science in the performance of this function, and yet
it is

people

it

surprising to find

how much

there

is

in so apparently simple
"
"

a thing as the use of a duplicator of the

for

making up operation

orders.

hectograph

type

careful study of this

proved

that under properly standardized conditions, with standardized

implements and appliances, and following the method developed

as a result of the study, a clerk could handle more than twice the

amount

of

work that he could when

left to

follow the course indi-

"

cated by his
initiative." This is true of almost all clerical work.
The Order oj Work Clerk.
The man performing this function
need not be a shop man, that is, he need not be a mechanic,

although he should be familiar with the work and the plant.

"
"
His function is to administer the Order of Work for the shop
"
bulletin board."
through the medium of the
He must see that the various jobs (operation orders) ahead of

each machine are taken up and performed in accordance with

their relative importance, deciding, as each new job arrives at a

machine, whether it is to be done next after the job under way,

or whether it is to be the third, fourth, or fifth job.
In deciding
this

he

is

guided by the

"

Order of

Work

"

or schedule furnished

him by the production clerk.

Where there is not enough work to keep certain machines
running steadily, he decides when to transfer men to them as
work accumulates. To do this intelUgently, he must know what
kind of machines each workman can operate, and the grades of

SCIENTIFIC

390
work each

is

capable of doing.

MANAGEMENT
This information he must secure

from the various foremen and inspectors.

It is his

duty to see that each

man

has at

all

times laid out

him a proper amount of work (usually at least ten hours

and to notify the proper person (usually the superintendent) in case he cannot get work enough for the men, or in
case there are not enough men to handle the work so that orders
will be completed when due.
The " bulletin board " referred to is a most important piece of
Planning Department machinery, of which there are a number
ahead

of

of work),

description of one of these forms will, however,

as
the differences are merely of construction and not of
suffice,

of forms.

principle.

On

the bulletin board under discussion there

is

a set of three

hooks, one under the other, for each machine or work-place in the
On the first of the hooks is hung the operation order for
shop.
the job in progress on the machine, and a tag showing the name
workman on the machine. On the second hook are the

of the

operation orders for the various jobs that are at the machine
waiting to be done; these are arranged in the order in which they
are to be taken up

by the operator. DupUcates of these orders

shown on a bulletin board in the shop conveniently
located to the machines, to which the gang boss and the workmen
On the third hook
refer for information concerning their work.
for
are hung the operation orders
jobs ahead for the machine
are also

which are in progress in the shop, but which have not yet progressed to the machine in question; that is, they are at some
other machine to have operations performed that precede the
one represented by the order on the third hook.
From this it will be seen that the order of work clerk has a
"
"
of what is going on in the shop, what work is
bird's-eye view

ahead of each machine, and is able to plan the work much more
intelligently than can the foreman under the old style of management, who depends upon his memory and upon observation for

Any one who has

keeping track of and laying out his work.
worked as a foreman under the old style of management will
realize how difficult it is to keep a gang of men supplied with

SCIENTIFIC
work and

to be sure that each

MANAGEMENT

man is working on

39I
the job that

is

of

the greatest importance.

The order of work clerk

is constantly and systematically

bulletin
the
over
board, seeing which machines on which
going
are
workmen are working
running short of work, which machines
to which no men have been assigned have work ahead that should

be started, what men will be available by reason of all the work

ahead of them being finished and how soon, that an important
job

is

not waiting while one that

is less

important

is

being worked

on, etc.

Lost time between the completion of one job and starting the
is thus avoided, the rule being to have preparations made in

next

two or more jobs (at least ten hours' work) ahead for
each workman. If the order of work clerk finds that there is
less than this amount of work ahead of a workman on the maadvance

for

chine he

is

at the time operating, he

any more work that can be gotten

sees whether there

machine in question

first

to the

is

in

If not, he next ascertains to what other

going.
machine, idle at the time, but at which there is work waiting to

time to keep

it

be done, the workman

and arranges

may

be most advantageously transferred,

same by a notification

for doing so, indicating the

an operation order on the hooks for the machine

from which the man is to be transferred and the machine to which
he is assigned.
Duplicates of these slips are, of course, placed on
slip,

similar to

the shop bulletin boards for the guidance of the

gang

workman and

the

boss.

The

bulletin

board

is

also used as a guide in sending out to the

machines the drawings, instruction cards, and tool lists in advance

of the time jobs are to be started, so that preparation for each job
may be made. When a workman finishes his last job on a given
machine, or is for any other reason transferred to another, when
he goes to the machine to which he has been assigned he will find
everything ready for him to start work without loss of time; his
drawing, instruction card, etc., having been delivered and his
tools procured from the tool room.

The Recording Clerk.

sheets, one for each lot

As has been already explained,

of parts or unit

route

composing an order, are

SCIENTIFIC

392

made out by

the route clerk.

MANAGEMENT
These indicate the symbol

of the

part or unit, the quantity in the lot, the drawing number, and
such other general information or description as may be necessary,

and specify the operations to be performed in their proper sequence and the machines in which each operation is to be performed. These sheets are placed in files which are also receptacles
for the instruction cards, tool lists, operation, inspection,

and

move

orders pertaining to the operations indicated on the route

sheets, all of which are written up in advance so that there will be

no delay at the time they are required. On the route sheet each
step in the progress of the work to be done on a lot of parts is
indicated, so that what has been done and what remains to be
done is always evident. Its function is not, however, merely to
record history, but to indicate what each succeeding step is to be,
it is to be taken.
They are the recording clerk's guide
in performing his function, which is to record the progress of the

and when

work, to issue and receive operation orders, inspection orders,

orders, etc., at each stage in the progress of the work.

move
To

illustrate:

workman

finishes a job

and hands

in to the

recording clerk a finished time card, and the recording clerk does
the following things:

Takes from the bulletin board the operation order for the
job just finished, and turns it over to the order of work clerk to
have the shop copy recalled from the shop bulletin board.
(a)

Ascertains what the workman's next job is (from the next

operation order on the bulletin board), and gets the time card and
{h)

inspection order for it from the route file, checking the route
sheet to show that the operation has been started, and that the

first

inspector has been notified.

Stamps the time on card just received and the one being
issued, and delivers the time card for the new job to the workman.
{d) Sends inspection order (for first inspection on job being
(c)

started) to inspector.
{e) Opens route file for job reported finished, and checks it to
show that such is the case. Takes out *' final inspection " order,
checks route sheet to show inspection ordered, and sends the

inspection order to inspector.

SCIENTIFIC

Has

(/)

the

"

MANAGEMENT

393

"

take out to the machine the

drawing boy
and tool list for the next job following

drawing, instruction card,

the last one for which they have been issued, and bring back
those for the job just finished.

When

inspection orders are received showing the final inspecmade, he issues a move order for moving the job to its next

tion

destination,

and checks the route sheet

to

show that

it

has been

done.

When a

"

move

"

is returned showing that work has been

he
issues
the
moved,
operation order (through the order of work
for
clerk)
performing the next operation on the job in question.

order

The functions of the time and cost clerks have not, owing to the
magnitude of the subject, been taken up. The accounting system
developed by Dr. Taylor and those who have been associated
with him is, perhaps, at the same time the most complete and
the most simple that has ever been devised, giving all essential
information accurately and in the most useful form with a minimum of labor. This feature of the Taylor System fits in with the
other elements making use of the mechanism used and work done
in connection with planning the work and running the plant.

book could

well be written

on

this interesting

and important

phase of the system.

people have, in the past, made the mistake of overestimating the importance of cost systems, and without first
laying the foundation for them, and at the same time doing those

Many

things necessary to economical manufacture, have undertaken

In such cases the result is returns so inaccutheir installation.
rate as to be not only valueless,

but misleading, or at best

what might be taken for granted, that things

much. Accurate means of measuring work done are, of
cating

prime

essential to

any

indi-

cost too
course, a

cost system, as well as for measuring the

work, and yet frequently manufacturers will

spend good money in attempts at cost keeping with such slipshod
methods for securing returns as to render the results worthless.

efl&ciency of the

By

a measuring of work the writer means determining definitely,

done

system described, the point at which one

operation ends and another starts, providing reliable means for
as

is

in the routing

SCIENTIFIC

394

MANAGEMENT

the recording of the time of starting and of completion and checks

against time that has been spent on one job being charged to
another.
results.

The chief value of a cost system is a check upon

As a means of lowering costs or increasing output it is,

"
to a great extent, similar to the practice of
locking the barn door
after the horse is stolen."
For these and certain other reasons

the cost system

is

usually the last thing taken up in installing the

Taylor System, although the

almost from the start.

way

is

paved

for it incidentally

In conclusion the writer wishes to emphasize certain points:

1. That in
writing this article it has been his object to amplify
certain things in connection with the practical application of the
of Scientific Management that have already been

principles

less detailed manner by Dr. Taylor in his books

The Principles of Scientific Management and Shop Management, and that unless the reader has already read and studied
them
acquiring thereby a knowledge and understanding of

covered in a

the basic principles of the science of management

derive little good from reading this article, which

he

will

is

merely
intended to give a better idea of the mechanism for the application of the principles and its working.
Again, it may not be out
of place to

"

form
2.

warn the reader against the danger

of mistaking the

for the substance."

That

in describing the various

mechanisms

the functions of the Planning Department, etc.

of the

it

system
has not been

possible to go into sufficient detail to cover every feature or every

element of the features described, but merely to afford the reader

such a bird's-eye view as one would get as a result of a day's

visit to a plant in which the Taylor System is in operation, and
it explained by some one conversant with it.
The mechanism described must not be regarded

having
3.

as being

Every industry and every shop presents

universally applicable.
different conditions and different requirements, to meet which
variations in some or all of the elements must be worked out by
the engineer directing the development of the system.
The
the
of
remain
but
the
method
differs.
same,
application
principles

THE FOREMAN'S PLACE IN SCIENTIFIC

MANAGEMENT
Reprinted by permission of Industrial Engineering

"
?
This expression has
functional foremanship
in
articles
on
Scientific Managethe various
appeared much of late
ment, and as it apparently plays an important part in discussions

What

is

"

The instituof that subject, a detailed explanation is in order.

tion of functional foremen, as opposed to the usual single individ"
"
in industrial plants, is
the boss
ual commonly known as
probably the most radical change that Scientific Management
makes when it undertakes the reorganization of an industry.
For, with the installation of functional foremen, a planning
department automatically comes into existence, and the separation of the planning of methods of doing work from the doing of

work itself is immediately accomplished.

Functional foremanship means the splitting up among several
individuals of the duties usually discharged by a single foreman.
the

Each

of these individuals is a specialist in the particular line to

assigned, and is trained to the highest efficiency in

The work of each
the
particular duties of that line.
discharging
that
of the others,
or
functional
foreman, supplements
specialist,

which he

and

is

their duties are so clearly defined that

none ever

interferes

with the other foremen.

In order to more clearly understand the difference between the
operation of a plant under functional foremen and one run on the
older plan of having a single foreman with a multitude of duties,
let us imagine a case in a plant making a general line of machinery,
where usually every job is different from every other one.

We

choose a case of this character because

it

has often been argued by

uninformed persons that Scientific Management, as it is generally

understood, might easily be applied to a manufacturing plant

where processes were repetitive, and thousands of duplicate

parts are made, but that it would be a very different proposition
395

SCIENTIFIC

396

in a shop doing a variety of

MANAGEMENT

work and where no two operations

are the same.

Consider then a room in a shop, equipped with lathes, planers,

drills and other machine tools, and presided over by a
single fore-

man, responsible

men

for the

work

of say 30

men.

Among

these

are half a dozen,

and Flannery.

Morgan, Brooks, Smith, Johnson, Sweet

The foreman is at Johnson's lathe, supervising

the production of a rather difl&cult and important piece of work,

to be made very accurately, and on which the foreman

which has

must

see that

no mistakes are made.

WhUe

he

is

so engaged.

Brooks approaches him, and informs him that he has finished the
The foreman, being
job he was on and that he wants another.

much engaged with Johnson,

tells Brooks that he will see to him

minute or two, and continues what he is doing.
Brooks
stands around or goes over and talks to Sweet until the foreman

in a

The foreman then examines the orders

with Johnson.
which have been assigned to him by the office for the production
It is a rather complicated
of work, and gives a job to Brooks.
some
and
While
job,
requires
explanation.
explaining the work,
finishes

and discussing the best method of doing it with Brooks, Smith

comes up and demands a job. With a hurried " Well, you see
how it is to be done," the foreman leaves Brooks, to get a job for
Brooks is not altogether sure that he does see, but
Smith.
rather than say so and further detain his boss, proceeds on his
own responsibility, makes a mistake and spoils the piece. It is
not evident to him, however, and he continues work; and the
foreman, being concerned with Smith and worried over the fine
job in Johnson's lathe, does not get to Brooks for a long time.
Consequently Brooks' work is not inspected and the error is not
discovered until a lot of time and money have been wasted, which
would have been saved had the foreman not been so busy.
Meanwhile the foreman has found a job for Smith. It is the
machining of half a dozen large castings, and the ofl&ce has indicated that it expects these to be done on piece work. It is a new
job in the shop, and the foreman and Smith haggle a while over
Neither one knows just how long it should
take to finish one casting and a considerable discussion ensues,

what

is

fair rate.

SCIENTIFIC

MANAGEMENT

397

compromise is reached, although each thinks he has

been stung." The foreman then tells Smith that Flannery had
brought the first casting in the day before and put it at the big
planer where it was to be machined, and goes back to Johnson.
but

finally a

"

the casting, and once more goes to the boss.

assures himself that the casting is not at the planer, and, not

Smith

He

fails to find

seeing Flannery around, the two spend a lot of time hunting until
they find the casting at one of the milling machines where Flan-

nery had put

And

so

of all the

it

by mistake.

The foreman is at the beck and call

goes on all day.
men, showing them how to do their work, discussing

it

methods with them, assigning work, fixing piece rates, pushing

rush orders through, hiring men, firing or disciplim'ng others,
keeping the men busy all the time as far as possible, seeing that
they do not soldier, keeping track of new work, and attending
to a multitude of other duties too

To perform

all

numerous to mention.
and well, and not

to

these duties completely

neglect a single one, he must possess about ten qualifications

which are seldom or never combined in one man. He must have
technical knowledge, patience, tact, nerve,
man with all
energy, honesty, judgment and good health.
these characteristics would be too valuable to be a foreman, and

brains, education,

if

he could be found would probably occupy the position of works

manager or general superintendent. The picture outlined above

is one that can be seen at any time in hundreds of shops on a busy
day, and the various incidents related not only cut down production, but run up charges due not only to the wages paid idle men,

men who

are waiting for the boss, but also to the

much

overhead charges on machinery and plant, which go on

time, whether tools are working or idle.

heavier
all

the

Let us now see how the same plant would be run under funcWe will assume that the full number eight

tional foremen.

recommended by the best

employed, that each one

is

and that there are available

time studies
the shop.

authorities

on management, are

thoroughly instructed in his duties,

for those that

need them, records and

of, at least, all the important jobs

and operations

in

SCIENTIFIC

398

The

MANAGEMENT

various functional foremen are

Instruction Card

known

as

Route Clerk,

Man, Cost and Time Clerk, Gang Boss, Speed

Of these, the
Boss, Repair Boss, Inspector, and Disciplinarian.
three are in the office or planning room.
The next four are

first

in the shop, while the disciplinarian

in either shop or office.

may

spend his time regularly

In its course through the shop a given job will pass through the
hands of these men in the following order: route clerk, instruction card

cost

clerk.

con-

man, gang boss, speed boss, inspector, time and

The repair boss and disciplinarian are not directly

cerned with production and their functions are indicated by their

Their duties will be discussed in detail later on.
titles.

The

and bill of materials for every job that is

The
shop come first to the planning room.
and
other
necessary castings, forgings
parts are ordered by a
stock clerk either from stores or other departments of the plant
or are ordered purchased from outside.
The raw material being
to be

order, drawings

done

provided

in the

for,

the job

is

placed in the hands of the

first of

the

the route clerk.

functional foremen
This man should have a
knowledge of machine work sufficient to enable him to devise
promptly from the drawing the best method of doing a given piece
of work, as

whether a surface had best be milled or planed, or

whether a cylinder could best be bored in a lathe or a boring mill.

He also must be able to read drawings clearly, and have sufficient
imagination to
finished work.

To

man

make from

the drawing a mental picture of the

then, comes the drawing and bill of materials

or other specifications according to the custom of the plant.
He
this

makes a study

first,

of the job

and decides on the best methods

to

He not only decides on the operations necesfollow in doing it.

the
exact
but
sequence in which these operations should be
sary
Furthermore, the route clerk should be armed with
performed.
such information in regard to the equipment of tools in the shop
that he can indicate on his route sheet the particular tool or group
of tools in which each operation is to be performed.
After having

determined these things, the route clerk

will

make a

list

showing

the course of the piece through the shop, the machines at which

it

SCIENTIFIC

MANAGEMENT

399

In
and the sequence of operations at these machines.
addition to routing the individual piece, as above described, the
route clerk daily issues a list of work to the shop showing the
stops,

order in which the various jobs are to be performed

class of machine or men.

by every

After the route sheet on a piece is prepared, it goes to the inman. This man should be an expert in machine

struction card

work, and should be able to devise methods of doing new jobs

which are quick, accurate and economical. He should also have
at his command time studies of fundamental operations, such as
the length of time required to turn the face of a cylindrical surface of a given length, using a particular feed and speed, the
length of time to face a hub of a certain diameter, the time

The instrucrequired to plane a flat surface of a given area, etc.

tion card man will study the drawing and route sheet, and from
these studies will prepare detailed directions for the performance
of each operation.

He

will write the directions in

cannot be misunderstood, on a card, adding,

to
to

if

language that

necessary, sketches

make his meaning clearer. He will detail on the card the tools
use, how they are to be set, the feed to use, the sp)eed of the

machine, the depth of cut, the method of setting and clamping

the

work

each

tool, etc.

the work.

machine, the sequence of minor operations at

In fact, he will tell in advance the story of doing
such records are at his disposal, the instruction

in the

If

card man will prepare these instructions from standards already

Also, if
estabUshed, or from records of previous similar jobs.
time studies have been made in the shop, the instruction card

man will indicate opposite each operation

the length of time which

should not exceed in doing that operation. But

a good workman
even if time studies have not been made, and there are no records
of unit times available, the institution of an instruction card

man

work is a long step in advance of

doing work by the usual scheme of having a single foreman to
After
supervise and instruct all the men at the same time.
to devise

methods

of doing

instruction cards are prepared, the order

shop.

The method

of this article.

is

transmitted to the

of transmission is immaterial to the purpose

SCIENTIFIC

400

MANAGEMENT

The job in the shop comes \mder the direction of the gang boss,
the speed boss and the inspector, each having a distinct function
or set of duties to perform, and each carrying out these functions
independently of the other men. Probably their duties can best
be explained by taking a hypothetical case and following the job
through the hands of the three foremen. Let us assume the job
to be done is the planing of a milling machine table.

The gang boss will know in advance, by means of the order of

work sent him by the planning department, on which planer the
table is to be machined, and in just what order, in reference to the
Before the previous
other work of the shop, it is to be done.
job in the planer is finished, the gang boss will ascertain from the
route sheet of the milling machine table, the location of the cast-

and he causes it to be moved to the planer by a laborer in

advance of the time it is needed.
He also learns from a tool Ust furnished him by the planning
room the planing tools needed, the number, size and shape of
straps required to hold the table on the planer bed, the number
and size of bolts required for the straps, the number and size of
blocks for the outer ends of the straps, the pins and wedges and
other fastening appliances which will be needed, and also all of
the gages which will be required in the measuring and setting
The gang boss will have the tool room get these tools
of the bed.
together, and before the man at the planer is ready for them will
ing,

have them sent to

his machine.

The

machinist, finishing the

from a bulletin board or other source of

information that the milling machine table is his next job, and
alongside of the planer he will find the casting and also the

work

in hand, will learn

He will immediately proceed to place the work

necessary tools.
in the machine, following the directions on the instruction card
which meanwhile has been given to him by the gang boss. This
oversee the putting in the planer of the milling machine table, and will see that it is set up correctly and fastened in
When
accordance with the directions of the instruction card.

ofl&cial will

he has
is

done

satisfied himself in regard to these points, the

gang boss

with this particular job until the inspector passes

it,

when

SCIENTIFIC
it will

MANAGEMENT

40I

once more come under his jurisdiction for movement to the

next machine.

The work once in

the machine, the speed boss takes charge of it,

and sees that the piece is machined in the way laid out by the

planning department.

He

will assure himself that the cutting

tools are set correctly, that the feeds, speeds

and cuts

specified

are being taken, and that the workman is proceeding in such a

manner that there will be no mistakes made, and therefore no
spoiled work.

If necessary, the

expert machinist, will instruct the

speed boss,

workman

who should be an

in the manipulation

of his machine, although this should not be necessary

new or difficult jobs outside the regular run of work.

on any but
However,

he should be prepared at any time to instruct any workman in

of machining and to see that they accomplish each

methods

If the
operation in the time specified on the instruction card.
a
number
of
the
similar pieces,
job consists of
speed boss usually
remains with the workman until he completes the first one, to

assure himself that no mistakes are

made and

that the

man

has

In case
comprehended the correct methods of doing the job.
the man fails to complete the work in the time laid down on the
it is the duty of the speed boss to investigate
and ascertain the reasons for this failure, and to remove the
causes.
If the workman claims that it is impossible to accom-

instruction card,

by the planning room, the speed boss

undertake and accomplish the work in the

plish the job as outlined

must be prepared to
manner and in the time the instruction card calls for.
The milling machine table, after being finished in the

planer,

would be turned over to the inspector. This official would carefully examine and measure it, to ascertain that it was free from
defects, planed to size, and made according to specifications.
This man must be honest, and possessed of judgment to know
when to reject and when to pass work without insisting on un-

The piece, after being passed by the

more comes into the domain of the gang boss for

necessary refinements.
inspector, once

removal to the next machine, or to the assembly

room, if the last operation has been completed.

floor or shipping

SCIENTIFIC

402

MANAGEMENT

the men performing the various operations

are turned in to the planning room, where they are taken charge
of by the time and cost clerk, who computes from them the

The time cards from

earnings of the men, ascertains if a bonus has been made or not,

providing the shop is on a bonus plan of wage payment, and then

work to the proper accounts of the cost

men, whose work we have described, are
the only functional foremen who are directly concerned with the
The two remaining
production of the regular work of the shop.
distributes the cost of the

These

department.

six

functional foremen, while not directly concerned with production,

affect it in certain cases to a greater or less degree.

For instance, the repair boss, as his name indicates, is required

machinery in the shop, including the transmission
machinery, in first class condition. He must see that the workmen keep their machines cleaned and well lubricated, that the
belts from the countershafts to the machines and from the main
to keep all the

line shafts to the countershafts are

kept at the proper tension, so

that they can always pull the loads imposed by the speeds and
by the planning department. If the shop is run
each
belt will be taken down at regular intervals, and
properly,
feeds required
tested

by means

of spring balances, to see that it

within the

is

Umits of tension required for the best results in

power transmisbe lengthened or shortened, as the case requires.

The whole idea is to anticipate breakdowns and to make repairs
sion; and,

if

not,

before the shop or a machine is shut down by the failure of some

The repair boss should keep a record of all repairs and
part.
tests,

such as those of

belts, in order that too

long an interval

not elapse before that particular piece of apparatus

is

may

examined

again.

The shop

disciplinarian

pline out of the

hands

is

man who

takes

all

cases of disci-

of the other functional foremen.

He should

be a combination of firmness, tact, and good nature, and be a keen

He should be a man who understands when the
judge of men.
best results will be accomplished by means of a " jolly," or when
sternness is a necessity.
The functions of this man in relation
to the other foremen can be best understood

might happen with a new

by imagining what
workman who had never worked under

SCIENTIFIC

MANAGEMENT

functional foremen previously.

to his first job by the gang boss

403

The workman would be assigned

and would be provided with his

rough casting and his tools by the same man. In this respect he
would not notice anything particularly different from the proceedings in the shop from which he came and which had been
under a single general foreman. He would be provided with an
instruction card, but might choose to ignore this and to carry out
The speed boss, coming
the work according to his own ideas.
this
would
notice
the
at
moment,
discrepancy between the
along
He
the
the
is doing the job.
and
workman
instructions
way
would immediately call the workman's attention to the fact that
he was not following instructions and would proceed to show him
imagined that a workwhom he had no

the correct

way

man might

resent this interference from one of

It

of working.

is

easily

knowledge and who apparently had no particular authority over

He might

partially accede to the sp)eed boss's request or

refuse
to follow directions.
There would be no
might flatly
The
on
this
score.
boss
speed
might, as man to man,
argument

him.

inform the

workman

that

it

would be to

his

advantage to follow

speed boss would not

dock
his
to
discharge him,
pay, or enforce other disattempt
would
measures.
He
simply report the matter to the
ciplinary

directions, but,

if

he did not do

so, the

shop disciplinarian, who would take up the case of the workman,

and apply whatever remedial measures might be required. All
discharges of men are made
men are also hired by him.

The value
evident on a
bosses

is

by

this official,

and

in

many

cases the

of the disciplinarian as a separate official will

little

to get the

The function of
maximum amount of work out of
consideration.

be

the other
the shop.

Arguments and the enforcement of discipline may, and often do,

engender hard feelings between foreman and workman and reduce
the efficiency of both.

When

these arguments are transferred to

man who

has no direct connection with the production of work,

the relations of the other men to the bosses are left undisturbed

be visited on any person in the shop;

consequently, the working force is maintained at its highest

by any

discipline that

may

SCIENTIFIC

404
efficiency,

regardless of

any personal

between the men and the

We
man,

thus see

how

controlling

MANAGEMENT
feeling

that

may

exist

disciplinarian.

the characteristics required by an ideal forethe functions of management in a single

all

department of a works, are divided up among a number of men,

each of whom possesses certain ones which especially fit him to
discharge certain functions but who lacks other characteristics

which would enable him to take care of other equally important

Thus the
must be a man of foresight, with a general knowledge
He need not, however, be an
of the workings of machine tools.
machinist.
The
instruction
card
man, on the other hand,
expert
in
all the devices of his trade and must also
must be highly skilled
He need not,
possess ingenuity and have some inventive ability.
however, necessarily be a good executive. The gang boss should
have considerable executive ability and should be able to set
work in machines to good advantage, although it is not necessary
functions in the

management

of the department.

route clerk

that he be expert in the manipulation of the machine. He should

be painstaking, a hustler and have a mind for detail. The speed
boss must be an expert machine operator and need not have many

The

inspector should be able to read

drawings and possess keen judgment as to the quality of work.
of the other qualities.

He

should be of sterling honesty and should be of such force of

unmoved by forceful protests of workmen and bosses over rejected work. The repair boss should be
The quality of the disciplinarian we have
painstaking and neat.
character that he would be

discussed above.
It is thus evident that, although it is almost impossible to

obtain in one

man

ideal foreman, it is

those quahties which go to make up the

possible to obtain them in a shop by the system
all

Furthermore, even were it possible

be the ideal foreman, the quality and
quantity of work turned out by the shop would be lower than
under functional foremen, simply for the reason that one man
of functional foremanship.

to obtain a

man who would

would not have the time to look

workmen.

after

more than a very few

SLIDE RULES FOR THE MACHINE SHOP AS A PART

OF THE TAYLOR SYSTEM OF MANAGEMENT

By carl
Reprinted by permissioo of

paper on

G.

BARTH

The American

Society of Mechanical Engineers

"

Shop Management," read at the Saratoga

meeting of the Society in June last, Mr. Fred W. Taylor referred
to certain slide rules that had been invented an,d developed under
his supervision and general guidance, by means of which it becomes a comparatively simple matter to determine that feed and
speed at which a lathe or kindred machine tool must be run in
order to do a certain piece of work in a minimum of time.
2. These slide rules were also mentioned by Mr. H. L. Gantt
"
A Bonus System of Rewarding Labor " (New York
in his paper
1.

In

his

Meeting, December, 1901), as being at that time in successful use

Bethlehem Steel Company, and

were therein preand
which
feeds
of
had been deterdictated
the
sented,
speeds
mined by means of these slide rules.
about making experiments with a view
3. Mr. Taylor early set

in the large

machine shop

reproductions of a

of the

number

of instruction cards

to obtaining information in regard to resistances in cutting steel

with edged tools, and also the relations that exist between the
depth of cut and feed taken to the cutting speed and time that a
tool will endure;

and he advanced

far

in his early position as engineer for the

enough along these lines

Midvale Steel Company

make

systematic and successful use of the information obtained; but as this, of course, was confined to tempered carbon
tools only, it was not applicable to the modern high-speed steel,
to

so that the invention

experiments to
4.

and introduction

of this steel called for

new

be made.

These were

first

undertaken under Mr. Taylor's direction

at Bethlehem, so far as the cutting of steel alone was concerned;

and later on at the works of William Sellers & Co., Inc., of Philadelphia, at which place the writer spent fifteen
40s

months

in going

SCIENTIFIC

406

MANAGEMENT

over these experiments again, on both steel and cast iron, and
with tools of a variety of shapes and sizes, and for which neariy
25 tons of material were required.
5. However, it is not the writer's intention at this time, to give
an account of these experiments, or of the results obtained and

drawn from them, but merely to give some idea of

rules on which these have been incorporated, and by
which a most complex mathematical problem may be

conclusions

the slide

means

of

solved in less than a minute.

6.

He

will also confine his attention to the

teresting of these sUde rules;

that

is,

most generally

the slide rules for lathes,

an example an old style belt-driven

with cone pulley and back gearing.

and he

in-

will take for

lathe,

Considering the number of variables that enter into the

problem of determining the most economical way in which to
7.

remove a required amount of stock from a piece

they may be enumerated as follows
:

of lathe work,

The size and shape of the tools to be used.

n. The use or not of a cooling agent on the tool.
III. The number of tools to be used at the same time.
IV. The length of time the tools are required to stand up
I.

the work (Life of Tool).

V. The hardness of the material to be turned (Class

to

Num-

ber),

VT.
VII.
VIII.

IX.

X.
XI.

The diameter of this material or work.

The depth of the cut to be taken.
The feed to be used.
The cutting speed.
The cutting pressure on the tool.
The speed combination to be used to give

at the same
the
and
time the proper cutting speed
pressure re-

quired to take the cut.

stiffness of the work.

XII. The
8.

All of these variables, except the last one, are incorporated

when the work is stiff enough to permit of

in the shde rule, which,

any cut being taken that

is

within both the pulling power of the

SCIENTIFIC
lathe

and strength

of the tool,

MANAGEMENT
may

407

be manipulated by a person

the slightest practical judgment to bear on the

which
as yet, whenever the work is not stiff enough
but
matter;
to permit of this, does require to be handled by a person of a

who has not

good deal of practical experience and judgment.

9. However, we expect some day to accumulate enough data
in regard to the relations between the stiffness of the work and
the cuts and speeds that will not produce detrimental chatter,
to

do without personal judgment

in this

matter

also,

and we

will

at present take no notice of the twelfth one of the above variables

but confine ourselves to a consideration of the first eleven only.
10. Of these eleven, all except the third and tenth enter into

depend only on the cutting propand ninth

of relations that depends on the pulling

relations with each other that

erties of the tools, while all except the second, fourth

also enter into another set

and the problem primarily solved by the slide

rule is the determination of that speed-combination which will at
the same time most nearly utilize all the pulling power of the
lathe on the one hand, and the full cutting efficiency of the tools
used on the other hand, when in any particular case under consideration values have been assigned to all the other nine
power

of the lathe,

variables.
11.

If

tions per

our lathe were capable of making any number of revoluminute between certain limits, and the possible torque

corresponding to this number of revolutions could be algebraically expressed in terms of such revolutions, then the problem
might possibly be reduced to a solution, by ordinary algebraic

methods, of two simultaneous equations containing two unknown

quantities; but as yet no such driving mechanism has been invented, or

is

ever likely to be invented, so that, while the problem

always essentially the solution of two simultaneous equations,

or sets of relations between a number of variables, its solution
is

becomes necessarily a tentative one; or, in other words, one of

trial and error, and involving an endless amount of labor, if
attempted by ordinary mathematical methods while it is a perfectly direct and remarkably simple one when performed on the
;

slide rule.

SCIENTIFIC

4o8
12.

The

employed

slide rule

MANAGEMENT

method of solution may, however, also be

numerous similar problems that are

for the solution of

10

11

12

13

14

Am-BrnkNaU

15

Co.Jf.r.

Fig. 3.

capable of a direct and perfect algebraic solution; and it will, in

fact, be best first to exhibit the same in connection with the simplest imaginable
13.

tions

may

problem of

this kind.

two simultaneous equabe graphically effected by representing each of them

In the

first

place, the solution of

by a curve whose coordinates represent possible values of the two

unknown quantities or variables, for then the coordinates of the
point of intersection of these curves will represent values of the
unknown quantities that satisfy both equations at the same
time.

SCIENTIFIC

MANAGEMENT

409

and y x = ^,
these equations are respectively represented by the two straight
lines AB and CD in fig. 3; and as these intersect at a point (i)
whose coordinates are x = 4^ and y = 75, these values will
satisfy both equations at the same time.
15. Example 2. Suppose again that we have
14.

i.

Example

Thus,

if

x.y

we have y

-{-

y
18 and

12

3,

and these equations are respectively represented by the equilateral hyperbola EF and the straight line GH; and the coordinates
to the point of intersection of these (2) being respectively a; = 2.45
= 7.35, these values will satisfy both equations at the same

and y
time.

we have y x = $ and y.x = 18,

these equations are respectively represented by the straight Unes
CD and the equilateral hyperbola EF; and the coordinates to
16.

Example

3.

Similarly,

if

the point of intersection of these (3) being a; = 3 and y = 6,

these values will satisfy both equations at the same time.
to the
17. The sUde rule method of effecting these solutions

we

now

will readily

be seen

to be very similar in its essential nature to this graphical

method,

consideration of which

will

pass

though quite different in form.

18. In fig. 4 is shown a slide rule by means of which

may

be

solved any problem within the range of the rule of the general
"
form:
The sum and difference of two numbers being given, what
"

are the numbers ?

19.

of the

The

rule is set for the solution of the case in

numbers

is

12

and

which the sum

their difference 3, so that

X =

we may

write

^ =

12 and y
3,
y +
which are the same as the equations in Ex. i above.
20. In the rule, the upper fixed scale represents possible values

sum of the two numbers to be found, for which the example

under consideration gives y + x = 12, opposite which number is
therefore placed the arrow on the upjjer sUde.
of the

21.

The

lesser of

on this slide represents possible values of the

the two numbers (designated by x) and the double scale
scale

SCIENTIFIC

41

on the middle

MANAGEMENT

fixed portion of the rule represents possible values

two numbers (designated by y) ; and these

laid
out relatively to each other, and to the
are
so
various scales
arrow referred to, that any two coincident numbers on these latter

of the greater of the

scales

have

for their

sum

the

number

to

which

this

arrow

is set;

in this case accordingly 12.

The bottom

on the rule represents possible values of the difference of the two numbers, in this case 3, opposite
which number is therefore placed the arrow on the bottom slide
of the rule, the scale on which also represents possible values of
the lesser of the two numbers, x; and the double fixed scale in
22.

fixed scale

the middle of the rule representing, as already pointed out, poswhole is so laid out that any two coincident

sible values of y, the

numbers on these latter scales have for their difference the number to which this arrow is set; in this case accordingly 3.
23. Fixing now our attention on any number on the double y
scale in the

middle of the

rule,

we

first

note the values coincident

two x scales on the slides; and this done, we readily

discover in which direction we must move along the first scale in
order to pick out that value of y which has the same value of x
For the case under considcoincident with it in both x scales.
eration this value of y is 7I, and the coincident value in both
scales is 4^.
Evidently, therefore, >' = 7^ and x = 4^ are the
to

it

in the

numbers sought. (See fig. 4.)

24. In the same manner we may make a sKde rule for the solu"
The product and quotient of two
tion of the general problem:
"

numbers being given, what are the numbers ?

Such a rule would differ from the above described rule merely
in having logarithmic scales instead of plain arithmetic scales.
25. By the combined use of both arithmetical and logarithmic scales we may even construct rules for a similar solution

"

The sum and product, or the sum and

and
product, or the difference and quotient
quotient, or the difference
"
and a mulof two numbers being given, what are the numbers ?
writer
ventures
and
the
to
that slide
of
others;
suggest
tiplicity
rules of this kind, and some even simpler ones, might be made

of the general problems:

excellent use of in teaching the first elements of algebra, as they

U-

9_

+ o

-_
I

00

,!>_

4"

SCIENTIFIC

412

MANAGEMENT

would

offer splendid opportunities for illustrating the rules for

the operations with negative numbers, which are such a stumbling
block to the average young student.
26.

We now

have

sufficient idea of the

mathematical princi-

ples involved, for a complete understanding of the working of the

slide rule whose representation forms the main purpose of this

paper.
27.

This sHde

rule, in

a somewhat ideal form in so far as

it is

nor cast iron, but for an ideal metal of

made out
It will be
properties between these two, is illustrated in fig. 5.
for neither steel

its upper section and three in its lower

in
so
far
identical with the rules made for the
and
it
is
section,
Bethlehem Steel Company, while in the rules more recently made
it has been found possible and convenient to construct it with only

seen to have two slides in

two

slides in the

28.

It is

lower section also.

shown arranged

for a belt-driven lathe (No. 43

^)

with

five cone steps, which are designated respectively by the numbers

I, 2, 3, 4, 5, from the largest to the smallest on the machine.
This lathe has a back gear only, and the back gear in use is desig-

nated by the letter A, the back gear out by the letter B. It also
has two countershaft speeds, designated respectively by S and
F, such that

stands for the slower,

for the faster of these

speeds.
29.

The Speed Combination ^-A-S thus

to
designates
the belt on the middle cone step, the back

choose an example
gear in, and the slow speed of the countershaft; and similarly,
the combination i-B-F designates the belt on the largest cone

on the machine, the back gear

countershaft; and so on.

step

30.

Feed)

out,

and the

fast speed of the

The
is

double, fixed scale in the middle of the rule (marked

equivalent to the y scale of the rule in fig. 4, and the

on the slides on each side of it (marked

Speed Combination for Power, and for Speed, respectively)
The rest
are equivalent to the x scales on the rule in fig. 4.
scales nearest to this

'

The main frame

of the rule

is

used for a number of lathes, and

to receive interchangeable specific scales for

the illustration.

is

arranged

any lathe wanted, as may be seen in

SCIENTIFIC

MANAGEMENT

413

MANAGEMENT

SCIENTIFIC

414

Speed became coincident with 14

Number for Cutting Speed.

in the scale

marked Class

Let us now separately direct our attention to each of the

sections of the rule.
In the

34.

tions
feeds,

Power

section

we

two

find that all the speed combina-

marked B (back gear out) lie entirely beyond the scale of

which means that the estimated effective pull of the cone

down to the diameter of the work, does not represent

available
cutting pressure at each of the tools to enable a
enough
depth of cut of \ inch to be taken with even the finest feed of the

belt reduced

Turning, however, to the speed combinations marked A

(back gear in), we find that with the least powerful of them
= 0.039
(5-^-F) the e feed, which amounts to 5/128 inch

lathe.

inch,

be

may

taken;

the

while

which amounts

feed,

to

1/20 inch
0.05 inch, is a Httle too much for it, though it is
within the power of the next combination {^-A-S), and so on
until we finally find that the most powerful combination
nearly capable of pulling the i feed, which amounts
to i/io inch =0.1 inch.
35. In the Speed section of the rule we Hkewise find that all the

{i-A-S)

is

combinations

lie

the combination

beyond the

^-A-F

scale of feeds, while

we

find that

(which corresponds to a spindle speed

of 11.47 revolutions per minute), can be used in connection with

the finest feed (a) only,

if

we

are to live

up

to the requirements

while the next combination (4-^-i^)

will allow of the e feed being taken, the combination 3-^-i^ of
set for the life of the tool;

the / feed, and so on until we finally find that the combination

is but a little too fast for the coarsest (0) feed, and that
2,-

AS

both of the slowest combinations {i-A-S and 2-A-S) would

permit of even coarser feeds being taken, so far as only the lasting
qualities of the tools are concerned.
36.

the

We

thus see that there

is

a vast difference between what

Power

feeds

and

section of the rule gives as possible combinations of

speeds for the utilization of the full pulling power of

the lathe, and

what the Speed

section of the rule gives for such

up to the full limit

combinations for the utilization of the tools

set.

However, by again running down the

scale of feeds

we

find

SCIENTIFIC
that, in

both sections of the

MANAGEMENT

rule, the i feed

415

(i/io inch

0.1 inch),

too coarse for the combination i-A-F, while the h

= 0.078 inch) is somewhat too fine in connection
inch
feed (s/64
with this speed combination i-A-F^ both for the full utilization

is

but a

trifle

of the pulling

power

of the belt

on the one hand, and for the full

on the other hand.

utilization of the cutting efficiency of the tools

In this case, accordingly, the rule does not leave a shadow

of doubt as to which speed combination should be used, while it
37.

leaves us to choose between two feeds, the finer of which does not

work up to the full limit of either the belt or the tools,

and the coarser of which will both overload the belt a trifle and
ruin the tools a trifle sooner than we first intended to have them
allow us to

give out.
38.

The

final choice

becomes a question of judgment on the

Rule and Instruction Card Man, and will depend

he
sure
is of having assigned the correct Class Number

part of the Slide

upon how

to the material or not;

and

this latter consideration

opens up a

number

of questions in regard to the practical utilization of the

for the lack of time cannot be taken up in the body of
which
rule,
this paper,

but which

will

be fully answered by the writer in any

discussion on the subject that may arise.

39. Having decided upon the speed and feed to use, the In-

Card Man now turns to the Time slide rule illustrated

and by means of this determines the time it will take the
traverse the work to the extent wanted, and making a

struction
in

fig. 6,

tools to
fair

allowance for the additional time consumed in setting the

and calipering the work, he puts this down on the instruction

tools

card as the time the operation should take.

40. For finishing work the pulling power cuts no figure, so that
this resolves itself into a question of feed and speed only; and

combination that on any particular

lathe will give the nearest to a desired cutting speed, the Speed
slide rule ' illustrated in fig. 7 is used.
for the selection of the speed

be realized that a great deal of preUminary

done before a lathe or other machine tool can be
The
successfully put on a slide rule of the kind described above.
41.

It will readily

work has

to be

Described in American Machinist of

November

20, 1902.

SCIENTIFIC

4i6

MANAGEMENT

and speeds and pulling power must be studied and tabulated

handy reference, and the driving belts must not be allowed
to fall below a certain tension, and must, in every way, be kept
feeds

for

in first class condition.

Fig. 6.

42.

In some cases

it

also

becomes necessary to limit the work

to be done, not by the pull that the belt can be counted on to

exert, but by the strength of the gears, and in order to quickly
figure this matter over the writer also designed the Gear slide
rule ^ illustrated in fig. 8, which is an incorporation of the for-

mulae established several years ago by Mr. Wilfred Lewis.

^

Described in American Machinist of July 31, 1902.

SCIENTIFIC
43. For the pulling
writer has established

increasing

sum

power

new

MANAGEMENT

417

of a belt at different speeds, the

formulae,

which take account of the

two sides of a belt with inand which at the same time are based on

of the tensions in the

creasing effective pull,

Fig.

7.

the tensions recommended by Mr. Taylor in his paper entitled

"
Notes on Belting," which was presented at the Meeting of the
Society in December, 1893.^
44. These formulae have also been incorp)orated on a slide rule,
but as the writer hopes at some future time to prepare a separate

paper on this subject, he

will

not go into this matter any further

at the present time.

1

See Transactions of the American Society of Mechanical Engineers, Vol. 15,

Ed.

p. 204.

SCIENTIFIC

41 8
45.

Having thus given an

MANAGEMENT

outline of the use of the slide rule

system of predetermining the feeds and speeds, etc., at which a

machine tool ought to be run to do a piece of work in the shortest
possible time, the writer,

who has made

exclusive study during the last four years,

Fig.

this

matter an almost

and who

is

at present

8.

engaged in introducing the Instruction Card and Functional

Foremanship System into two well-known Philadelphia machine
shops, which do a great variety of

work

in both steel

and cast

merely add that, in view of the results he has already

obtained, in connection with the results obtained at Bethlehem,
the usual way of running a machine shop appears Httle less than

iron, will

absurd.

SCIENTIFIC
46.

MANAGEMENT

Thus already during the

tion of the slide rules to

two

j5rst

419

three weeks of the applicaone a 27 inch, the other

lathes, the

a 24 inch, in the larger of these shops, the output of these was

increased to such an extent that they quite unexpectedly ran out

work on two different occasions, the consequence being that

the superintendent, who had previously worried a good deal
about how to get the great amount of work on hand for these
of

lathes out of the way, suddenly found himself confronted with

real diflSculty in

keeping them suppUed with work.

the truth of this statement

But while

may appear quite incredible

to a great

and impressed as
many
he has become with the great intricacy involved in the problem
of determining the most economical way of running a machine
persons, to the writer himself, familiar

the application of a rigid mathematical solution to this

problem as against the leaving it to the so-called practical judgtool,

ment and experience

of the operator, cannot otherwise result

than in the exposure of the perfect

folly of the latter

method.

A GRAPHICAL DAILY BALANCE IN MANUFACTURE

By H.

L.

GANTT

Reprinted by permission of The American Society of Mechanical Engineers

I.

At

the

December meeting in 1901 the writer presented a

"
A Bonus System of Rewarding Labor," ^ in which

paper entitled

was given an account of the results gotten under that system at

the works of the Bethlehem Steel Company, and a description
of the method employed.
The paper dealt particularly with the method of setting a task
and with the reward for its accomphshment.
It consisted
briefly in setting as a task for a day's work the amount that a
good man could reasonably be expected to accomplish, and paying the man a substantial amount in addition to his day's wages
if the whole amount was done.
If less than that amount was
done he simply got

his day's wages.

The result of this system, when the task was set in an intelligent manner and accompanied by a suitable compensation, was
an efficiency of operation so far beyond that obtained by the
ordinary day or piece work method that it attracted a great deal
of attention.

This centering of the attention on the result had, however, a

it withdrew the attention from the

serious disadvantage, for

most important parts of the paper

namely, that describing the method of setting the task, and that referring to the
method of operating the system by which an exact record was
kept.

The method

of setting the task is substantially that developed

by Mr. Fred W. Taylor for setting piece rates, and was described
His paper before the present meeting further
at some length.
elucidates that part.^
^

'

"
Incorporated in substance in H. L. Gantt's Work,
"
Referring to F. W. Taylor's
Shop Management."

Wages

Ed.

and

Profits."

Ed.

SCIENTIFIC

MANAGEMENT

42I

routine operation of the system, which involves keeping

an exact daily record of the work done, was not, however, so

The

clearly explained, and

devoted.

to that subject that this

it is

paper

is

In

order to operate such a system we

must not only have an exact record of what each workman does
every day in order to find out whether he has earned his bonus

Man's Record.

2.

or not, but must have beforehand an exact knowledge of the

This amounts to
work to be done and how it is to be done.

keeping two sets of balances

do and did do; the other,

that

is

done.

The former,

or man's record,

and

of the bonus,

what each workman should

amount of work to be done and

one, of

of the

consists in

is

concerned with the

an exact comparison of

payment
what should be done as determined by our investigations, and
what has been done as shown by the daily reports.
The latter is a balance of work
3. Daily Balance of Work.
show
at a glance each day just what
should
each
and
on
order,
has been done and what remains to be done, in order to enable
us to lay out the work for the next day in the most economical
The importance of such a balance has been long
manner.

recognized, but the difficulty of getting

it

is

such that

it

has

seldom been attempted. Many concerns get a weekly or monthly

balance; but in both of these cases the information is usually
obtained too late to prevent delays in work.
Again the value
of a balance is dependent largely upon its availability; in other
words, upon the ease with which the desired information can be
obtained from it.
With this idea in mind the writer devised a

combined schedule

for

work and a balance sheet that

graphical in its nature.

tions,

and when work

no entries

is

On

is

largely

dates are represented by posinot done on consecutive days, there are

it

in consecutive positions.

This practice enables the

foreman or superintendent to see at a glance what work is going

Such schedules can be made out for all classes
along properly.
of work,

and a description

the principle.
4.

sheet

A Foundry

Balance.

and schedule

for

of

one or two

Fig.

a foundry.

will

amply

illustrate

289 represents such a balance

At the heads of the various

SCIENTIFIC

422

MANAGEMENT

columns are the names of the pieces to be cast, under

each is its pattern number; then, in order, when the pattern is
due at the foundry, when it is received, the number wanted per
Below, each column is
day, and the total number wanted.
vertical

These are
divided into two columns headed daily and total.
Unes
horizontal
consecutive
crossed by
representing
working
days, on each of which is entered in the proper column the number of pieces made that day and the total number made to that

Each column

date.

is

crossed

by two heavy

horizontal Hnes,

the upper one opposite the date at which the work should be
begun, and the lower one opposite the date at which the work
should be completed. These lines are usually red, and have been

The position of the

very appropriately named danger lines.
entries with reference to these danger Unes and the amounts of
show

what extent the schedule

is being lived up
being well followed the entries are always
in the neighborhood of the red Unes, or above them.
Fig. 289 represents a portion of an actual order showing how it

those entries
to.

If

to

the schedule

is

was filled in the foundry of the Schenectady works. If there is

no graphical check on the operations of the foundry, the work
that is wanted during a certain week may be spread over three
or four.

an extremely difficult matter for a foreman to get the

work done exactly in the order it is wanted. For instance, if
we are building two locomotives per day, each requiring four
driving boxes, it seems an extremely difficult thing for him to
There
get every day, without fail, at least eight driving boxes.
is a constant tendency when he is rushed with work to drop to
It is

seven or six with a corresponding decrease in output of locomotives.

This tendency to give about what is wanted, rather than
exactly what is wanted, is the most common obstacle to getting
the full output of a plant.
This balance
5. A Daily Balance as a Permanent Record.

sheet shows not only how much work was done each day, but is a
permanent record of exactly how the order was filled, which can
be compared with the record of the previous and subsequent
orders.

This

is

best illustrated

by a study

of

fig.

289,

which

SCIENTIFIC

MANAGEMENT

423

422

SCIENTIFIC

MANAGEMENT

SCIENTIFIC

MANAGEMENT

423

comply with the schedule occurred.

The letter P entered in some of the columns shows graphically
The pattern was not
the reason for the castings being behind.
Similar sheets might show that
received until the date indicated.
it was the draftsman and not the pattern-maker who was to
shows exactly where

failure to

blame.

Machine Shop Balance and Routing Sheet.

Fig. 290 is a
similar balance sheet for work done in a machine shop on a series
The order in which the various
of locomotive frames and rails.
operations are to be performed has been determined, and the
6.

consecutive columns devoted to the operations in their proper

You will note that on this sheet, which is an actual recorder.

ord of work, the consecutive operations were performed promptly,

and that there was no

serious delay.

Fig. 291 represents a record of the same work as it would appear

if the works were short of frame-drilling capacity, and the drillIf it is impossible to
ing of frames were not done promptly.

the delay thus caused, the output is limited by it. Such

sheets show at a glance where the delays occur, and indicate
what must have our attention in order to keep up the proper out-

make up

always on the same operation we know that

more output from the machines doing that
Lines representing when work
work, or get more machines.
should be begun and when it should be finished are used on the
machine shop sheets as well as on the foundry sheet, but have

put.

If

we must

been

the delay

is

either get

left off to

avoid confusion.

A complete set of such

Graphical Balance as a History.
sheets for all the work being done in a plant gives a complete
schedule and a daily record of what is being done, and is of the
greatest possible advantage if an attempt is to be made to im7.

In
prove the conditions or increase the output of the plant.
fact, if the improvement in the operation of a plant is to be

manner, exact knowledge of what is taking

Without it money is
absolutely necessary.
and
but
a
small
often spent wastefully,
proportion of the desired
In large plants run without such a system of
results obtained.

made

in a scientific

place each day

balances

it is

is

frequently impossible to

tell

just

what

is

holding

SCIENTIFIC

424

MANAGEMENT

back the output, and then the value

of such a balance

is

out of

proportion to the cost of obtaining it.

By using the graphical form its value is very much increased, for the general appearance of the sheet is sufficient to tell how closely the schedule is
all

being lived up to; in other words, whether the plant is being

run efficiently or not. Moreover, such a balance is a history of
the

way

the

work went through the shop and is readily comparwork done previously or subsequently, thus

able with similar

enabling us to form a definite idea as to whether the plant is

being run more or less efficiently. The balance of work sheet

then gives us a daily analysis of how the work is progressing,

its graphical form is so easily read that both foreman and

and in

The man's record shows

superintendents find it of great value.
the efficiency of each man, and the two taken together give us
the knowledge, in the clearest way, of what should be done to
increase our output.
8.

tion.

Valiie of Balance not

It

is

Dependent upon Method of Compensa-

not the intention of this paper to discuss the making

of schedules for doing work, or instruction cards for the

men

to follow, or indeed the subject of

work
compensation
work done and a

done, for the

keeping of a daily balance of

record of the

men

method

doing

it

of compensation.

are invaluable, no matter

In

fact,

work-

for

what the

the writer has found the

man's record when work was done by the day to be of the highest value, for when the men realize that not only their chance
but that of holding their positions depends
upon the amount and quality of their work, they become very
for increase of wages,

much more

efficient.

Add

to this the fact that efficient

men

paid in proportion to their efficiency are invariably better satis-

we have an added
reason for keeping the man's record.
Again a workman easily
forgets how many days he has been absent, and how much poor
fied

than

less efficient,

cheaper men, and

work he has done, and an occasional glance at his record often

The writer first kept such a
does him a great deal of good.
record in the foundry of the Midvale Steel Company thirteen
years ago, and found it so valuable that he has always done it
since

when

possible.

Such record sheets are so

easily gotten

up

SCIENTIFIC
and

of so

many

MANAGEMENT

425

kinds that the writer has not considered

essary to illustrate them.

it

nec-

Next to the
The Graifhical Balance and the Foreman.
in
the
overworked
ordinary
people
superintendent the most
Their duties may be
manufacturing plant are the foremen.
9,

summed up

as follows, in the order of their importance: to get

to get it out economically; to improve

work out on time;

their

Add

primary duties a multitude of

others depending upon them, and but little time is left for
thought, or investigation, on which depends improvement.
methods.

their

to their

When

they are rushed, therefore, improvement is naturally the

Further pushing causes economy to be
thing to suffer.
sacrificed, for the work must get out, and the foreman has not

first

time to go over and over his orders to see just what is the most
economical arrangement of his work. Here is where the graphical schedule comes to his assistance, for he can see at a glance
just

what

been but

is

behind or what should be done next.

of such a balance,

and

There has

foremen to recognize the value

have yet to learn of one, who, having

in getting

little difficulty

operation, was willing to give it up.

The question is frequently
10. Cost of Keeping Balances.
In
asked as to the cost of keeping these records and balances.

gotten such a sheet in

full

reply I have to say that

would cut no figure.

if

such cost were ten times what

it is, it

we buy a man's time, and he frequently gives

Our storekeeper checks exactly the materials
we buy, but nobody knows exactly what the day workman has
done in his ten hours; although we know labor to be the most
difficult commodity we have to buy, we give it the least systematic study, and my effort to get an exact record of what we
In day work

but

little else.

get for our

intelligent

money

manner.

is

the

first

step toward purchasing it in an

to the balance of work, I can

With regard

only say that it is hard to estimate the cost of lack of harmony

in a plant, and the increase in efficiency produced by getting
materials in their proper order rather than according to the
judgment of the various foremen is greater than is usually realized.

SCIENTIFIC

426

MANAGEMENT

The

fact that, as far as the writer's experience goes, the foreare not only willing to use these graphical sheets, but are
glad to do so in order to make their work harmonize with that
of other departments, is the strongest proof of the value of the

men

graphical over the other forms of balance.

The value of a balance of some sort is too well understood to

need discussion, and the only reason that

is

often the fancied cost of getting

it.

it

has not been adopted

As a matter

of fact, all

I have suggested can usually be gotten by the ordinary time and

cost keeping force with but httle help, and frequently without
It is so closely alHed to the time

any.

and

cost keeping that

are done together by the best modern method, the

reduction of labor in getting the time and cost often more than

when

all

due to keeping the men's records and the

referred to is the time and pro-

offsets the increase

The method

balance of work.

duction card system, of which the following is a description.

There are conditions under which the system to be described

here

may

be modified; in

fact, it is

not always found possible

is the ideal

to introduce it exactly as described, which, however,

method

and should be approximated as nearly as

introduced substantially in this form by
Taylor at the works of the Bethlehem Steel Com-

of operating

possible.

It

Mr. Fred W.

was

it

first

pany.

In its best developTime and Production Card System.

the
to
card
is
a
every man who is
ment,
day previous
assigned
of these cards is
a.m.
the
next
Each
day.
expected in at 7
stamped with a rubber stamp 7 a.m. and the date. These cards
are placed in a rack, which has a properly numbered space for
each man, who takes from it his own card and no other.
II.

Any men coming

in after 7 a.m. are not allowed access to the

must get their cards from the office, where the cards
marked properly by a time stamp with the exact time each
man comes in.
Without any delay each man goes directly to the work that
has been assigned to him, and while his machine is running, fills
in on the card his name, his number, the order number, the
machine number and the kind of work he is doing. At the end
rack, but

are

SCIENTIFIC
of the

day he enters on

been correctly

finished,

MANAGEMENT

his card the

and the card

number
is

427

of pieces that

signed

by

inspector, certifying that all of the entries are correct.

have been

errors in the

MAN'S NO.

IsaucD

ORDER

SHOP.
WORKMAN'S NAME
NO. ricccs
FINIHCO.

If there

work the foreman or inspector does not

RCTURNCO,

MACHINE

have

the foreman or

HOURS WORKED

NO
#

MACHINE NO.

SCIENTIFIC

428

Men

coming

in after

MANAGEMENT

noon get

their cards in the

same manner

as in the morning; the cards being previously stamped with the

hour work begins, and placed in the rack. Men who do not go

out at noon do not need to change their cards.

When the men have gone out at the end of the day or at noon,
the cards in the rack are stamped by means of a rubber stamp

with the time the work ends.

The

preferable form of card is a square one on paper stout

In the upper right-hand corner of the
enough to be sh'uffled.
card should be placed the man's number, the order number and

the machine number.

As

there

is

room

for

one order number and one machine num-

ber only on one card, the workman must give in his card at the
oflSce and get a new one whenever he goes either on a new order
or another machine.

In order to get a record of the

Time and Man's Record.
man's time and work for the day, all the cards bearing his numIf these do not give a total of the
ber must be gotten together.
full number of working hours, the first card of the day must
show that he was late, or there must be a pass stating what
These passes should be of the same size as
time he went out.
the cards, and be put in with the time cards and sorted out by
the man's number, so that when the clerk begins to enter the
The
time and record he will have all the information at hand.
12.

men's record
set of entries.

may serve as a pay sheet, thus involving only one

When the time is entered up, the clerk doing it

enters his initial in the lower left-hand corner in the space

"

marked

pay-sheet."

To

get the cost on an order the cards are then

order
number," and when the clerk begins to enter
by
or
the
time
wages against any order, he should have before
up
him all the cards representing work on that order. He is thus
13.

sorted

Cost.

"

make the final entry directly from the cards, thus

with a minimum of clerical labor.
The clerk
work
the
doing
"
cost
enters his initial in the space designated for such entry on
sheet."
enabled to

SCIENTIFIC

429

To get a record of the work on

Progress or Prodtiction.
order, the cards which have been sorted by order number

14.

any

MANAGEMENT

We

thus get
by name of part and operation.
of
the
number
the
on
an
order
cards
pieces on
showing
together
These
which a certain operation has been finished that day.
are further sorted

up and entered directly on the Production or Progress

By this method we can keep an intelligible record of all
the work done with a minimum of clerical labor.

are added
sheet.

15.

Difficulty of Getting a

Daily Balance.

It

is

not necessary

purpose I have in mind to dwell further on the

for the

details,

show that the difficulty of getting this

my
record
of
our
men
and a balance of work done is not so
daily
In other words, it is an entirely
great as to be prohibitory.
feasible thing to know exactly all that has been done in a large plant
one day before noon of the next, and to get a complete balance of
work in order to lay out that atternoon in a logical manner the
object being only to

work for
16.

the next day.

Value of such a Balance.

consists in the fact that

it

The value of such

makes

clear details that

however keen he may be, can see by inspection.

what work is behind and how much, and enables us
its

a balance

no observer,
It shows us
to trace to

source the cause of any delay.

The superintendent sees at a
what he never could find out by observation or by asking

glance

questions.

It

shows him how

where the defects

efficiently

in operation are.

a plant is being run and

In connection with the

it is the most complete analysis we can make of

the working of a plant, and the one that will help us most
quickly to bring into their proper channels things that have

man's record,

been going haphazard. Such an analysis is far more important

than an improved tool steel or a new set of piece rates.
It
should be established before the introduction of either of these
in order that

we may have some means

of measuring the gain

should remain after they are
introduced to show that a forward step once taken is never

made by

their introduction,

and

it

retraced.
17.

Accounting and Operating.

wishes to say that

it is

In

his opinion that

conclusion

the

writer

we can do nothing

in a

SCIENTIFIC

430

MANAGEMENT

manufacturing plant that will go so far toward increasing the

output or the economy of operation as obtaining this exact

The cost of getting it is

knowledge of what is being done.
almost nothing, and the methods of operation need not be disturbed in the least until an accumulation of knowledge points

out the best course to pursue.

the adoption of the methods outlined the accounting department ceases to be simply a critic of the manufacturing, and
becomes an active assistant to every foreman and to the super-

By

In other words, the accounts cease to be simply

records of production, and become potent factors in helping the

intendent.

producing departments.

The Bonus System a Form of Profit Sharing.

Having
estabUshed these combined order, schedule, and production
sheets, the next step is to pay a bonus to the head of each shop
based on the extent to which he adheres to the schedule as laid
out.
These sheets thus do for the foreman what the Instruction
Card does for the individual, and the final result of the system
is harmonious working and a high degree of efficiency, a portion
of the profits of which goes directly to the individual in propor1 8.

tion as his efiforts tend to maintain that efficiency.

Carried out
to its logical end, therefore, the Bonus System as described in

my

previous paper becomes practically one

each

man

of profit sharing, in

gets his portion of the profits as soon as he earns

which
it.

In this paper I have confined myself as nearly as possible to

general principles, using specific cases simply as illustrations.
These principles are capable of further development and may be

worked out

in detail to suit the needs of

facture.

many forms

of

manu-

Mr. Gantt in his paper spoke of not requiring

Mr. McGeorge.
any further clerical help. I would like to inquire how he manDoes he appoint special corps of clerks for this purages that ?
Then again, who settles
or
has
each foreman a clerk ?
pose,

when these various parts shall be assembled ? In other words,

who fills out the sheets to begin with ? Then he also spoke of a
I would like to ask who puts that
a red line.
danger signal

red line on ?

SCIENTIFIC
Mr.

MANAGEMENT

43 1

In

answer to Mr. McGeorge's question I may

that
the
whole
schedule, red lines and all, should originate
say
in a planning department such as is advocated by Mr. Taylor,
Gantt.

but as few plants have such a department, it is usually impossible

at first to do this work as it should be done, and the schedules

have to be made out by those most available for the purpose.

Comparing the manufacture of locomotives with that of any
other large machines, a very casual investigation will be sufficient

show that the art of building locomotives is by far the most

and that the harmony between the different
of
a
locomotive
portions
plant is much more perfect than that in
This
other
of
the
same
size building large machinery.
any
plant
to

fully developed,

is

so because locomotives are always built according to a schedule,

is the evolution of more than half a century's work in the

which

same hne.

What

time and evolution have done for the building of the

locomotive, Mr. Taylor does for the building of machinery in
general

by means of his planning department.

in a graphical

What I have done

form not only the schedule

for building
put
the locomotive, but to show graphically how that schedule is
carried out.
At the locomotive works we made no attempt to

is

to

modify or

how

criticize the existing schedule,

but simply recorded

was lived up to.

These combined schedules and records become a history of
how the work went through the shop and will ultimately supply
the schedule

the information needed in modifying the schedules so as to get

greater harmony between the different departments and

still

economy of manufacture.
Where pretty complete schedules

greater

exist, as in

most locomotive

anybody in authority can see that they are made out in a

Three examples given below
graphical form and lived up to.
will show how this work can be started under these conditions.

plants,

Even where there are no well

certain amount of knowledge

defined schedules there

that takes their place,

is

always a

and the

col-

knowledge and the putting of it in a graphical

form can always be done.
Such schedules are necessarily imat
but
far
are
better
than nothing, and, if the recfirst,
perfect
lection of this

MANAGEMENT

SCIENTIFIC

432

ords are properly kept, may be rapidly improved, especially if a

planning or production department is organized to develop

them as rapidly as possible.

The three examples referred to above are as follows:
At the Manchester Works of the American Locomotive Company, Mr. Ayres, the superintendent, gave his personal attention
to having them started in the foundry.
At the Schenectady Works Mr. Peck, foreman of number one
machine shop, personally looked

after their introduction in his

shop.

At the Brooks W^orks Mr. Reid, the

them in the foundry. He is not

started

assistant superintendent
here, so I shall tell you of

He personally put

the red lines on to start with, and

had the sheets sent to his office every morning at ten o'clock with
his results.

the previous day's work written

up

to see

how

the schedule was

They were sent back with his written comup

ments to the foreman in time for him to arrange his work for the

being lived

to.

The

next day.

result of this

was a prompt improvement

in the

The

best illustration I can give you of

his success is to show you these order sheets for thirty-five locomotives filled by that foundry about eight months after the sys-

output of the foundry.

tem was

started.

(Here were shown several actual schedule

sheets of this order with the red lines

in the foundry office as reproduced in
If

you can see the red

lines

and
figs.

and the

entries exactly as kept

289, 290

entries,

and

you can

291.)

see

how

Suffice it to say that out of a total

the schedule was lived up to.
of over nine thousand castings, none were more than five days
behind schedule time, and only two, which were replacements,

more than four days.

This is a record that any foundry might

Don't
be proud of.
imagine, however, that the system alone did
The system simply supplied the means by which it could be
it.
done, and the man trained to use the system and to know its
The fact that a man capable of using the
value got the results.
be
found
or
must
developed is one reason why it takes so
system

long to get

There
ing

is

it

properly started.

one other thing which I did not quite get to in present-

my paper the difl&culty of getting this daily balance

"

It is

SCIENTIFIC

MANAGEMENT

433

not necessary for the purpose I have in mind to dwell further on

the details,

my

object being only to

getting this daily record of

our

not so great as to be prohibitory."

To know exactly
does, it would pay.
is

show that the

men and

difficulty of

the balance of
it

work done

cost fifty times

//
all that

was done

what

it

in a large

plant one day before noon of the next, and to get a complete balance of work in order to lay out that afternoon in a logical manner
the work for the next day, enables us to manage a large plant as
intelligently as

a small one.

THE TOOL ROOM UNDER SCIENTIFIC

MANAGEMENT
A

Description of what is required of a Tool Room in

A Tool Classification, Notes
A Modernized Shop
ON Storage, Maintenance, Checking and Inventory
Systems drawn from Practice

By ROBERT THURSTON

KENT

EDITOR OF INDUSTRIAL ENGINEERING

Reprinted by permission of Industrial Engineering

One

the fundamental conditions required by scientific

management is that the skilled worker be provided with the best
of

In the machine
appliances and tools required for his work.
and
the
tools
not
include
these
jigs, in addition
only
cutting
shop
to the machine tools, but, also every fixture required to hold the

machine and to measure it while in process and on

completion. These appliances comprise among others clamps,

work
its

in the

Scientific management also

dogs, blocks, gages, etc.
such
as enumerated above be
requires that tools and fixtures
bolts,

The reason for this is

always kept in first class condition.
that the time of performing an operation, which is determined
beforehand,

is

based on the time required only with appliances

As an illustration we may cite the

in the best working order.

case of a dog used to drive

work held on centers

in a lathe.

It

often happens that the thread of the clamping screw in the dog
becomes damaged and, therefore, requires the application of a
The time predetermined
wrench to run it down to the work.

based on the machinist being able to run the

screw down to the work quickly with his fingers and only applying
a wrench to give the last one-eighth of a turn to tighten the screw
for this operation is

on the work.
screw

all

the

Should

it

be necessary for the machinist to run the

obviously he will exceed

way down with a wrench,

the length of time allowed for placing the dog in position and
434

MANAGEMENT

SCIENTIFIC

435

thus be in danger of losing his bonus for that particular piece of

work.

In order to insure that

tained in good order

all

these various appliances be mainbe kept in the tool

essential that they

it is

room and in charge of a person competent to inspect and repair

them or to issue instructions for their repair should it be necessary to do this work outside in the shop. Under the usual system
of tool rooms, only the highest priced and finer tools are found in
the tool room.
Thus we find drills, taps, reamers, gages, jigs,
and such fixtures in the tool room, while lathe tools are kept at
each machine, milling cutters at the various milling machines, a
complete set of planer tools at each planer, while blocks, bolts and
clamps of various kinds are obtained wherever the machinist can
find them.
They are supposed to be in the shop, but no one in
particular is responsible for their being there, for seeing that they
are supplied in sufficient quantity or in tlje proper variety of

kinds of work done in the shop.

that the machinist given a certain piece of

sizes to take care of the different

The consequence

is

do often wastes much time hunting for the correct sizes

of blocks, bolts and clamps, and when he finds these loses more
time because they are not in the best of condition and require the
application of a wrench to nuts and screws which should run
down witli the fingers, or in matching up two or three sizes of
blocks to form blocking of the requisite height.
After having
the work mounted in the machine he will use a cutting tool more

work

to

or less well adapted to the

his

work

in

hand and often ground

to suit

own

peculiar ideas.
there is a certain shape of tool best adapted to each
individual kind of work and this tool should be ground at certain

Now

definite angles

experiments.
for

which have been found the best by a long series of

Records of these shapes and angles are available

any one who cares

to

make

use of them.'

It is

obvious that

be ground to these correct angles, that the grindof

them
should
be taken from the men in the shops and placed
ing
in the hands of the man in the tool room.
He should be provided
if all

'

W.

tools are to

These shapes and angles are given

Taylor.

in the Art of Cutting Metals,

by Frederick

SCIENTIFIC

436

MANAGEMENT

with a universal tool grinding machine which

will grind the tools

to predetermined angles and shapes, and grind every tool to the

same shape at one setting of the machine.
It is evident, therefore, that a tool

room adapted

for the needs

management is a very different sort of a place from

the ordinary tool room. We are enabled to present here, through
the courtesy of the Tabor Manufacturing Company, Philadel-

of scientific

phia, illustrations of a tool room planned

accordance with the principles of scientific

and constructed in
management. Cermind when laying

tain fundamentals

must be constantly kept

out a tool room.

It should provide storage places for the tools

in

which are economical of space, which permit of easy rearrangement and extension as the tool room grows, and which are so

A
arranged that the distribution of light is the best possible.
certain definite and fixed place must be provided for every tool
and this place must be easily
ascertained even by a newcomer into the tool room, who is
A checking system must be
unfamiliar with its arrangement.
for and locate every tool for which
will
account
which
provided
the tool room is responsible, whether the tool has been issued to
that

is

stored in the tool room,

workman

in the shop, sent to the blacksmith for reforging, or to

stock of tools of ample
room for grinding.

the grinding

shop requirements must constantly be kept

on hand, and these must be maintained in the best condition at all
These
times, means for such maintenance being provided.
in
order.
various points will be taken up and discussed
quantity for all the

Classification

Every

tool, jig, fixture, block,

clamp,

etc.,

should be classified

The classification
it is to be put.
the
more
as
as
so,
provision of the
important, perhaps
just
classification is
The
later.
described
standard storage racks,

according to the use to which

is

what determines the location of the tools in the tool room and
also what enables the attendant, however unfamiliar he may be
In
with its arrangement, to find a given tool almost instantly.
it
in
detail.
some
discuss
will
we
view of its importance

Fig.

I.

Rack

for lathe

and planer

tools.

MANAGEMENT

SCIENTIFIC

438
The
devised

general scheme of classification recommended is that

by Mr, F. W. Taylor and shown in Table I. Every tool

used in a machine shop

falls

within one or another of the general

classes there given.

TABLE

CLASSIFICATION

OF TOOLS

CLASS

A Miscellaneous

not elsewhere

classified.

Bending Tools. Tools,

producing changes
shape by bending,
spinning,
C Clamps and Holding Devices
kinds, including bolts and screws.
D Drilling and Boring Tools. Tools that remove metal from the
B

All tools for

in

etc.

folding,

of all

such as drills, boring bars, cutters and all appliances relating to

them, and lathe boring tools.
Edge Tools.
Edge tools for working wood, and tools for working
plastic materials, such as clay, molding sand, putty, etc.

interior,

Heating Tools. AU kind

used
heating,
melting,
tempering, annealing, drying, cooking,
molding,
or being
H Hammers and all Tools that work by
such as
tups,
used
L Transportation Tools.
moving materials from one
F

of tools

for

lighting,

etc.

oil

striking

struck,

etc., chisels, sets, flatters, etc.

sledges,

All tools

in

place to another, such as buckets, boxes,

etc., trucks, shovels,

wheelbarrows,

bogies, brooms, riggers' tools, slings, chains, etc.

Measuring Tools. ^- All instruments of precision, weights, measures,

M
gages,
P Paring

etc., electrical

etc.

instruments,
that remove metal from the surface by
D
and milling
lathe boring
(See
except
R Milling Tools.
milling or sawing metal.
and
S Slicing Tools.
parting
T Templates and all Instruments
dupHcating work, including
and
U Abrading Tools.
rubbing, scraping,
grinding,
shearing, punching, breaking,
W Wrenches and all Tools used causing
used
X Painting Tools.
covering a surface with an adhesive
Tools.

All tools

cutting,

for

class

tools.

slotter

tools.)

All tools for

tools

All

slotter tools.

for

jigs

fixtures.

All

tools

for

filing,

etc.

for

All tools

foreign material,

and any

for

rotation.

for

removing same.

These general classes can be divided into subclasses and the subclasses can be further subdivided and re-subdivided down to the
individual tool, as the requirements of the shop dictate. A single
Lathe tools are evidently
instance will suffice for illustration.
tools for removing metal from the surface of a piece by cutting.

From Table

I such a tool

either a square or a

is

in class P.

round nose, and

several different shapes.

Assume

if

it

The

tool

the latter
is

blunt.

it

might have
might be of

Furthermore,

I'lO.

2.

Rack with boxes, drawers and trays

for boring

and

diilling tools.

SCIENTIFIC

440

MANAGEMENT

the nose might be in a straight line with the shank, or it might be

The cutting edge also might be either
offset to the right or left.

on the

right or

Assume that
The

left.

the cutting edge

is evidently P.

is

to the left.

The second

the tool

is

straight and that

the tool symbol

first letter of

letter denotes the

shape of the

and being a round nose the symbol from the Taylor

will

The

be R.

and the symbol

tool,

classification

third letter will designate the shape of the nose

happens to be B. To show that

for a blunt nose

the blunt, round-nose, lathe tool is straight with the cutting edge
to the left, the letter C from the Taylor classification is added.

The complete symbol

for the tool

excepting with regard to

its size, is

which clearly identifies it,

therefore PRBC.
The size

meaning the width of the bar stock from which it is

then prefixed to the symbol in the shape of a numeral,

of the tool,

forged,

is

and the

entire description of the tool

acters, viz.,

2PRBC

The symbol
and

figures,

is

comprised in

five char-

for a 2 in. tool.

for each tool is

stamped on

it in large, legible
in
the tools are stored
racks, trays, boxes, drawers,

The tools are also

labeled with the corresponding symbol.
called for by the men by symbol, the planning department
etc.,

issuing its instructions to

them

in

symboHcal form as

far as

possible.

In connection with the classification of the

tools, a classifica-

book or sheet should be prepared, which serves two purposes.

It locates a tool whose name and size are given but whose symbol
is unknown, and it indicates the symbol for a new tool which has
The classification book is a loose-leaf
not as yet been classified.
affair, or a series of blue-print sheets bound together in such
fashion as to permit the insertion of an additional sheet at any
The first sheet of the book carries the general classificapoint.
tion

tion

shown

in

Table

Reference to this sheet will indicate at

I.

once under which class a given tool will be found.

of locating a tool

system
be best understood

2PRBC

mentioned

j-equired to

if

by means

we

consider an actual case

this tool;

which

the

Assume that we

above, for instance.

symboHze

Probably the
book can

of the classification

is

described as a

tool

are

2 in.,

Fio. 3.

Rack

for tools of various classes,

having diawen for stocking milling cutters.

SCIENTIFIC

442

MANAGEMENT

blunt, round-nose, straight lathe tool, with the cutting edge to

the left.

Running down the

of classifications given on the first sheet

evident that this tool will fall only under
Another sheet indexed P
the head of paring tools, symbol P.
will have a list of the various possible shapes of paring tools such

of the classification,

list

it is

Turnas PS, for square-nose tools, PR for round-nose tools, etc.

subclasses
list
of
down
the
P
and
to
this
sheet
then
running
ing

we

there hsted,
in

hand

is

PR.

symbol which will fit the tool

For each symbol on this sheet P there is another

find that the only

sheet in the book, indexed with that symbol, as PS, PR, etc.
Turning then to sheet PR, we find the paring round-nose tools
still

and

further subdivided, according to the particular shape of nose,

among other subdivisions we find one for a blunt-nose tool,

PRB.

the symbol being

In like manner on sheet

PRE,

a set of

symbols indicating the offset and the position of the cutting edge
is exhibited and the symbol PRBC is found to be that of the tool
Examination of the book shows that there is no
in question.

PRBC

sheet

in the book,

and therefore the symbol

is

complete,
except for the size which is prefixed to the part of the symbol
The process of locating a tool known only by
already found.
name and size is the same. As the arrangement of the tool racks

and cabinets

is

made

in accordance with the classification,

it

is

comparatively simple to find a tool once the symbol is known.

The main racks are conspicuously labeled with the general classification letter, as B, F, P,

and

M,

etc.,

and each rack

re-subdivided according to the second,

letters of the symbols,

is

third

subdivided

and fourth

the subdivisions being in alphabetical

The final subdivision is according to tool sizes.

To show the facihty with which tools can be located by means

order.

having been given an explanation of the system, requiring about five minutes, located
within 45 seconds a tool which was designated to him only by its
of this classification, the writer, after

name and
from the

although this involved discovering the symbol

book and finding the particular drawer^
several hundred, containing the tool, in a tool room

size,

classification

from among
he had never before entered, and although he had no previous

knowledge of

this

system of

classification.

Fig. 4.

- Rack showing adapuUon

of standard boxes for

stocking

holding^own bdts, etc

Fig.

s,

Rack with compartments

for jigs

and templates.

SCIENTIFIC

MANAGEMENT

445

Tool Cabinets and Racks

The

illustrations, figs. 1-5,

show a form

of

main

rack, with

various possible subdivisions by means of standard size boxes,

The racks, figs. 1-5,
trays and drawers for the storage of tools.
are built on the unit system

boxes listed in Table

II,

and by means of the standard

by means of standard trays,

and,

present an almost unUmited number of combinations adapted

to the needs of any character of estabUshment.
Furthermore,

they are sufiiciently elastic to permit of any desired rearrangement and extension to provide for the growth of the shop.
The racks are built of sound lumber, planed on both sides, the
various parti" being mortised into one another.
They should be
heavily built to withstand the strain due to the weight of the

The compartlarge quantity of heavy tools carried by them.

ments of the racks are made 24 1 in. square, inside measurements,
and they are 17 in. deep. These main compartments are clearly
shown in all the illustrations, and fig. 3 shows clearly the various
types of boxes, trays, drawers, etc., all adapted to one rack.
standard sizes of boxes, see Table II.

TABLE

II

Standard

Boxes for Subdfviding Tool Racks

(All dimensions in inches,

xNo.

and are outside dimensions)

For

SCIENTIFIC

44^

The pegs have

are issued.

from being

easily

accommodate
Fig. 2

knocked

MANAGEMENT

large heads to prevent the checks

off.

These trays are best adapted

to

tools of class P.

shows a rack, subdivided by boxes, trays and drawers, to

The lathe
drilling tools, class D.

accommodate boring and

boring tools are stored on trays like the class P tools in fig. i,
while the larger drills are stored in boxes and the smaller ones

kept in drawers, each compartment holding two rows of drawers,

which are subdivided into small compartments for the drills and

which have places on the

interior for the

workmen's checks.

a rack subdivided to take care of tools of various classes,

Fig. 3
and drawers for stocking milling cutters, these latter drawers
is

full width of the compartment and mounted on

Each box and each drawer carries the customary brass
label with the symbol of the contained tools thereon, and pegs
or hooks for the checks which show the location of issued tools.
Fig. 4 shows a unique adaptation of the standard boxes and also
illustrates in a measure the difference between a tool room under
scientific management and the ordinary tool room.
Holdingdown bolts are usually kept at the machines in the shop, and are

being of the
rollers.

moved from one machine to another as they are needed.

quently much time is lost by the machinist in hunting for

Frebolts

and frequently he cannot find bolts of exactly the required length.

It is then necessary for him to find washers and packing pieces
to fill up the extra length between the surface of his strap and the
bottom of the thread on the bolt, this consuming more time.
Scientific management regards the bolts needed to hold a piece of
work in the machine as much a necessary part of the tools required

as

it

does the lathe or planer tool which actually removes the

Therefore these should be cared for in the tool room and

metal.

kept in just as good order as the other tools, and issued with them.
Each bolt is complete with its nut and washer; and each bolt is
inspected when it is returned to the tool room to see that the
thread is in good condition so that the nut can be run down by

hand, and that the nut is square so that the wrench will not slip
on it. Defects of this character are repaired before the bolt is
issued again.

Should the requirement of a job

call for

say a

SCIENTIFIC
6 in. bolt

447

have been issued, the next

would be given out with a washer
so that the workman would not have to waste time in

and these happened

longest size in stock,

\ in. thick,

MANAGEMENT

say 6|

all to

in.,

finding washers, or in running the nut down the necessary distance.

The bolts are suspended from T-slots at the top of the

box, the symbol label being placed over the T-slot and the peg
for the check directly underneath.
Fig. 5 shows how the com-

Fic.

7.

Approved plan of tool room for a shop having, lay, loo machinisU.

partments can be subdivided for the storage of jigs and temThe locations of the symbol labels and of the hook and
plates.
are clearly shown.
for
checks
pegs

... a large number of flat tools can be

by means of swinging-door racks. Six of
on one

up against one another, as shown in

and W. The tools are carried on subhooks, and below each is the symbol label and a hook

spindle, folding

the plan,
stantial

stored in a small space

these doors are swung

fig.

7,

at

CC

for the check.

The above

illustrations

show the extreme

flexibility of

the

system of storage. It is evident that the system can be adapted

to any type of manufacturing establishment according to its
In adapting it, however, stress must be laid on the imporneeds.
tance of first classifying the tools and distinctly labeling each and
every division in the storage racks with the symbol of the tools
it contains, if the full benefits of the system are to be obtained.

SCIENTIFIC

448

MANAGEMENT

Checking and Inventory System

The

workman only on the presentation

number and which act as a receipt for the

tools are issued to the

of checks bearing his

The man

gives his check, which is hung on the peg or

hook provided for that particular tool, or is placed in the drawer
This
or compartment, before the tool is removed therefrom.
tool.

determines the exact location of the tool in the shop. On returning the tool, the man gives his number, which must correspond

Fig. 8.

Recommended Arrangement of Tool Grinder.

If
with that of the check on the hook or in the drawer.
not, the check is withheld and an investigation is made.

it

does

This

eUminates the steaUng of tools by one workman from another, to

Whenreceive credit for them on their return to the tool room.
ever a check

is

removed from

its

peg, the tool

it

represents

must

be replaced, or another tool room check, showing that the tool

has been sent to the grinding department, the forge shop, or to

some other department, must be hung in its place. When the

tool comes back from such department, it is replaced and the
Thus every tool must be accounted
tool room check is taken up.
a
workman's check, or a tool room
tool
the
either
itself,
for,
by
check.

somewhat simpHfied by the issuance of

denominational checks, that is, checks which bear on the reverse
These are used when a quantity
side a numeral, as 2, 3, 5, etc.
of tools of the same size and symbol are issued to one workman.

The check system

Take, for instance,

the

is

bolts.

workman will present

If four bolts of

a size are withdrawn,

a check, bearing on one side his number

h showing that he has taken four

and on the other the numeral

SCIENTIFIC

MANAGEMENT

449

bolts from the particular section where the check is hung.

These
from
and
those
size
checks are of a different
shape
usually issued,
to insure that attention will be directed to the numeral which

shows the number of pieces that must be returned.

Inasmuch as every tool can be accounted for, by either checks
or tools, the keeping of inventory is rendered a rather simple

A perpetual inventory is kept of all tools in the tool

room, showing the number and value of each kind of tool in
stock.
Damaged tools or defective ones are either replaced or

matter.

Obsolete tools are written off, while

written off the inventory.
The perpetual inventory
additions are entered in the inventory.
It is checked by referis indexed according to the classification.
ring to the classification to find the symbol,

and then examining

The sum of the number

the compartment bearing this symbol.
of tools in the tool room and the number of checks in the compartment should equal

the

Constant checking of

number of

tools called for

this character is carried

by the inventory.

on from day to day

misplacement or other cause. With

system a detailed examination of the tool room for inventory

to insure against loss through

this

purposes

is

unnecessary.

Issuing Tools to the Shop

in use at the Tabor Mfg. Co.,
best
as
one
of
the
examples of a scientifically
regarded
in
a
tool
list
is
issued to the tool room by
existence,
managed shop

Under the system of management

which

is

the planning department for every job assigned to the shop, so

that the tool room may have the tools in readiness for the job in

advance of the time they are needed. The tool list has printed
on it in permanent form a list of the more commonly used tools,
such as paring tools, lathe dogs, arbors, bolts, etc., with blank

A column is
spaces in which can be written tools not printed in.
and
another
for
the
for
the
number
required
symbol.
provided
These columns are filled in by the planning department, the job
is added together with the workman's name or number
and the list sent to the tool room. The tools are gathered together and placed in a tool box and are ready for the tool mes-

number

senger

when he

calls for

them, thus eliminating

all

waste of time

SCIENTIFIC

450

MANAGEMENT

while waiting for tools.

The workmen do not go to the tool
room, but are waited upon by messengers.

Tool Room Arrangement

an approved plan of a tool room for a shop employing,
It can be enlarged by adding additional
GO machinists.

Fig. 7 is

say,

racks so that

it

accommodate the

will

tools for three times that

number, without disturbing to any extent the arrangement

shown. The floor space required by the plan shown is 50 X 25 ft.,
including that allotted to the grinding department, which is a
necessary part of the scientifically managed tool room. It will be

evident from a study of this plan, coupled with a reference to the

general classification in Table I, that those sections are placed
nearest the issuing and receiving windows which contain the tools
demand. This reduces the number of steps of the
tool room attendants and makes for greater efficiency in accord-

in greatest

Modifications of this
ance with the principles of motion study.
arrangement will of course suggest themselves in accordance with
the needs of the particular plant involved.

Maintenance of Tools
As

indicated in the introduction to this article, an important

room is the keeping of the tools in first class

function of the tool

repair,

This

is

and the grinding of them to standard shapes and angles.

because the unit times on which the total time of each job

on tools in this condition.

Therefore, an
inspection bench and a repair bench are necessary parts of the
tool room equipment, as are the various grinding machines
Drill and cutter grinders are well
shown in the plan, fig. 7.
used
for a considerable period in many
known, and have been
is

figured are based

shops, which, however,

lathe and planer tools.

still

permit their

men

to grind their

own

Only about one man in ten knows how

to grind tools properly, and only about one-tenth of these men
The loss in production due to machines
care to bother to do it.
standing idle while the machinist

his turn at the grindstone or

usually supposed.

It

is

grinding tools or awaiting

is much larger than is

at least 5 per cent, if not more,

emery wheel

probably

is

SCIENTIFIC

MANAGEMENT

45 1

and the overhead charges on the work go on while the machinist

thus idle.
The heavy cuts required by scientific management
can only be made with tools ground to the correct angles. This
involves the ur e of a universal tool grinder and it is shown as part
of the necessary equipment.
Fig. 8 shows the recommended
of
the
tool
arrangement
grinder in its relation to the light and to
the receiving table and rack for finished tools.
Formers for each
is

shape of tool used in the shop should be provided as part of the

grinder equipment.

The

tools reaching the grinding

on the receiving bench

department should be assorted

and height,

in accordance with their size

grouping similar tools together to save time in setting the grinder.

It is uneconomical to grind tools singly or in small lots, and therefore the tool

room stock

of each shape

and

size of tool

should be

sufficiently large to permit the tool room to issue tools for a

couple of days before the stock is exhausted, while tools are

accumulating in the grinding department in

to warrant setting the machine for them.

The

sufficient

quantity

must again express his indebtedness to the Tabor

the
well-known manufacturers of molding machines,
Mfg. Co.,
metal saws and tool grinders for the information and illustrations
writer

of this article,

pany's shops.

which are drawn from the practice in that com-

NOMENCLATURE OF MACHINE DETAILS

By OBERLIN SMITH
PRESIDENT, FERRACUTE MACHINE

CO.,

BRIDGETON, N.

J.

Reprinted by permission of The American Society of Mechanical Engineers

That

the nomenclature of machinery, and of the tools and

apparatus with which

it is

constructed,

is,

in this country, in a

state of considerable confusion, scarcely needs demonstrating.

If we look from an international point of view, and include the

other English-speaking countries, Great Britain and her colonies,

the confusion becomes worse confounded.
reform is destined,

in

due

time, to come, doubtless to be

by such

societies as ours.

promoted in great degree

This reform movement cannot be

begun too soon, and should aim at giving brief and suggestive
each object to have but one
names to all objects dealt with
each
name
to
and
to
but one object.
A simple
name,
belong
method of beginning such a reform would be a common agreement among all our engineering schools to use each technical
word in but one sense, and with no synonyms.
A lesser field of reform, and one which lies more particularly
within the jurisdiction of individual manufacturers, is the comparative designation of a number of sizes or kinds of the same

machine.

There

series of sizes shall

now no common understanding whether a

be numbered or lettered from the largest down,

is

The latter is undoubtedly the most

or from the smallest up.
natural and suggestive method, but usually becomes confused by
want

of careful forethought

(when starting a

series) in

providing
a numerical series
gaps
has been already started, and becomes commercially established,

"

"

for the insertion of future sizes.

If

the only systematic way to insert new sizes (either at the beginning or through the middle of the series) is to use fractional
This, though awkward in sound and appearance,
seems to be the only means of suggesting the comparative size
The use of arbitrary higher numbers
of the article by its name.

numbers.

453

SCIENTIFIC
between the others

The use

is,

MANAGEMENT

of course, worse than

453

no numbers at

all.

of a series of letters does not supply this fractional loop-

hole of escape
quarters,

etc.,

the

euphony of A-and-a-half K-and-threedoubtful.

somewhat
Another method in
being
,

"
"
"
favor is the use of
diminutive
names, such as
fancy
"
"
etc.
These
are
far
eureka,"
firefly,"
giant,"
preferable to
confused numbers, as they are not intended to convey any ideas

much

between manufacturer and customer, and admirably succeed in

their purpose.

and one

We

system.

is a very difficult subject to deal with,

which we can scarcely hope for any exact

All this

in regard to

can but point out to manufacturers two general

that
leaving abundant gaps
a
run
of
series
instead
let
lo, 20, 30, 40, etc.,
is,
i, 2, 3, 4,
regular
etc.; and 2d, of using the smaller numbers for the smaller
The first is similar in idea to the well-known Philaobjects.
delphia house-numbering system, which has worked so admirably
principles to be followed:

in practice,

ist, of

and which has been copied by numerous other

cities.

The two

foregoing paragraphs are intended respectively as but

casual allusions to the technical and commercial nomenclature of

machinery in general. The subject is too elaborate to be treated

at length in this paper, the main purpose of which is to set forth
the results of the writer's experience in establishing a system of

names and symbols

"

details

"

for all the

component parts, commonly called

any manufactured articles.
necessarj', no engineer who has at-

of machines, or, in fact, of

That some such system is

tempted to manufacture machinery by the

modem

system of
a moment,

duplicate (or approximately duplicate) parts, will, for

The necessity for a specific name for each piece, which
question.

name

is

not, never has been,

and never

will be,

used for any

dif-

ferent piece of the same or any other machine, is evident, simply

for purposes of identification.
This identification is required

The name,
mechanically at almost every stage of production.
or a symbol representing it, should be marked upon the drawings,
the patterns, and the special tools pertaining to each piece, and,
when convenient, upon the piece itself.
Commercially, it is
required on time cards and in indexes and pattern lists and cost
books, as pertaining to production.
Pertaining to sales these

SCIENTIFIC

454

MANAGEMENT

names or symbols must appear in illustrated price lists, and in

This our modern method
orders by and charges to customers.
of

repairs,

by

selling

duplicate

parts,

renders

imperatively

necessary.

good system of names and symbols are:

(i) Isolation of each from all others that did, do, or may exist in
the same estabUshment.
(2) Suggestiveness of what machine,
conformwhat part of it, and if possible, the use of said part

The

requisites for a

ing,

to established conventional names,

of course,

practicable.

(3)

Brevity,

importance of isolation to
suggestiveness to aid the
it is

trouble,

Regarding
will

memory;

of brevity to save time

and

hardly necessary to speak.

the systems now in use in our best shops, this

not attempt detailed information.

names

as far as

combined with simpUcity.

Of the
prevent mistakes and confusion; of

more or less
upon the amount

are

It is

paper
understood that the

scientifically arranged;

depending, of

and the quality of the brains

course,
In cases where symbols
that have been expended upon them.
are used, supplementary to the names, they usually consist of
letters or numbers, or (of tener) a combination of both.
Many of
them (both names and symbols) fail in symmetry and suggestiveness, because httle attention has been paid to the names of the
of study

machines themselves, as regards the

serial consecutiveness,

hinted

The quaHty of brevity often suffers severely,

at in paragraph 2d.
because the name and symbol must, in most cases, each have the
machine name

prefixed, to secure their perfect isolation.

The

latter quaUty is rarely dispensed with, simply because the manufacturer's pocket would be too directly touched by the expensive

A perusal of some machinery catalogues

resulting mistakes.
which give detailed lists of parts is very harassing to a systematic mind. They are apt to derive one part name from another,
prefixing the latter as an adjective each time, until some such
pleasant
"

nut

is

title

as

evolved.

"

lower-left-hand-cutting-blade-set-screw locksymbols provided, they consist of

If there are

some unknown combinations of letters part way down the list,

and then change to arbitrary numbers, or perhaps to nothing
It will often be noticed also that no particular order
at all.

SCIENTIFIC

MANAGEMENT

455

appears to be followed in numerical arrangement, similar parts

being scattered at random through the list.
The scheme to be described further on has been evolved gradually from the experience gained in managing a growing machine

This scheme

business.

is

far

from perfect, and

is

probably-

which have not been made public; but it seems

answer
the
to
purpose aimed at, viz., a comprehensive and elastic
system which will accommodate itself to an unlimited growth and

inferior to others

any variation in quantity or kind of goods manufactured. This

the methods we first tried would not do, being too limited in their
scope.

"

be here explained that the word we," as just used,

refers to the above-mentioned machine works, with which the
writer has long been connected and the scheme in question will
"
be spoken of as our symbol system." To further define terms:
It should

"

"

"

"

machine name and machine symbol refer respectively to

the name and symbol of the whole machine, or other article of
manufacture, for it will be noticed that the system is applicable

any products, except those of a textile or chemical

"
and '* piece symbol," in like manner,
Piece name
nature.'
refer to the separate pieces of which the whole is composed. The
"
"
"
"
have so far been used
terms
detail,"
piece
part," and
which
It
is
doubtful
is
really the best to estabsynonymously.
"
but
we
have
lish as a standard,
adopted piece," as best expressto almost

"

ing the idea of one piece of material, reduced to the last condition
In our practice exceptions are made to this
of subdivision.

requirement of homogeneousness in such cases as chains, ropes,

in short,
also material glued or welded together,
belts, etc.,

anything which may (Hke a man) be called one piece, because

The character for
it is not intended ever to be taken apart.
equality

=)

will

be used to show connection between a

name

A brief glance at the history of our system

and its symbol.
shows that at first we (like many others) hit upon the plausible
idea of using numbers for machine symbols and letters for piece
The numbers were somewhat " gapped," but not to
symbols.
'

There

in C. B.

is

no necessity

Thompson's

for this exception,

if

"
Classification," p. 461.

the system

Ed.

b developed

as illustrated

MANAGEMENT

SCIENTIFIC

456

such an extent as
sizes of

we

liow should practise.

pumps were symbolled

and

Examples:

If four

4, their barrels

might
and their handles = i-B, 2-B, etc.
If the
made was a series of lathe dogs, they would probbe
Their frames would =
symbolled 11, 12, 13, etc.
ably
=
ii-A, r2-A, etc., and their screws
ii-B, etc. This all worked
beautifully until the products became so complicated as to contain more than twenty-six pieces
After tampering a little with
the Greek alphabet (which seemed calculated to scare our new
workmen), and trying to use a mixture of small and capital
letters (which looked too near ahke), we fell back upon the

i-A, 2-A,
next product

i, 2, 3,

etc.,

clumsy device of repeating the alphabet, with

letters

doubled

or tripled.

When we

abandoned the above plan, several methods

The next most obvious was to use letwere carefully studied.
This allowed any
ters for machines and numbers for pieces.
of
the
but
limited
the
machines
to twenty-six,
latter,
quantity
A certain modification of this
even with no gaps provided.
method is, perhaps, more in use than any other system. In it
letters are

finally

used for different

sizes or styles of

machine, and used over again

for

a certain kind of

some other kind, ad

infinitum.

This answers the purpose, because there are not likely to be more
It has, however, the
than twenty-six varieties of one machine.
fatal objection of requiring the whole machine name prefixed to
each symbol, in all cases where the symbol stands alone, and does
not happen to be written with the others of the set in tabular
form.
As the general name of a machine usually consists of at

two words, a complete piece symbol becomes too long for

convenience in labelling.
Examples: Force pump, K-26;

least

lathe dog, H-2.

Another system consists in using numbers for the machines and

numbers for the pieces. This gives isolation and brevity, but no

serious objection to it is the danger of blurring

suggestiveness.
the numbers together or of transposition in writing or reading
them; also in the fact that either number cannot be used alone,

as

it

can in the case of

letters

and numbers.

SCIENTIFIC

MANAGEMENT

457

A similar system to the above consists in the use of letters for

both symbols.
It has the same disadvantages, and the additional one of a limitation in the quantity of letters at disposal.
Our system, as finally decided upon, is as follows: Machine
names and piece names are determined by the designer, in general
accordance with the principles already pointed out, being, of
course, made as brief and suggestive as possible, with no two

and no two piece names alike in the same

machine. In this nomenclature no positive laws can be followed
but those of common-sense and good Enghsh.
A machine
machine names

alike

symbol consists of a group of three arbitrary

piece symbol consists of

letters

capitals.

an arbitrary number, and follows the

machine symbol, connected by a hyphen; thus FPA-2 might

smallest
symbolize the force-pump handle before alluded to
size.
The machine symbol may be used alone when required,

as

FPA.
As thus

described, these symbols fully possess the qualities of

and brevity. To make them also suggestive, some attenIn practice, we aim to
tion must be paid to what letters to use.
make the first two letters the initials of the general name of the
machine, and the last letter one of an alphabetical series which

isolation

will represent the sizes of the

shown

in the

symbol

machine.

An example

for the smallest sized force-pump,

of this is

FPA.

If

any chance of a future smaller or intermediate size, gaps

"
"
This initial method
should be left in the alphabetical order.
there

is

cannot always be

FPA

for

that

it

strictly followed,

because of such duplicates as

The remedy would be to

force-pump and foot-press.
one
initial
for
one
some
beginning
synonymous adjecchange
tive; that is, foot-presses might be symbolized TPA, assuming
stands for treadle-press.

machine should be thus changed.

Usually the least important

From this it will be seen

words " arbitrary

The idea is to make the system
were purposely used.
letters
There might be such a number of
thoroughly comprehensive.
machines having identical initials that the letters would be
that, in defining the theory of this scheme, the

"

In practice, the designer can usually succeed

the
making
symbols sufficiently suggestive.

almost arbitrary.
in

SCIENTIFIC

458

In considering how

many

MANAGEMENT

letters to use in

a symbol, considera-

tions of brevity advised two; suggestiveness, three or four. Two

letters did not allow of enough permutations nor indicate well

enough the kind and

size of

machine.

Three seemed amply

provided over 17,000 symbols.

four
letters should seem desirin
the
reason
future,
any
not
would
of
another
the
addition
materially change the
able,
of one, two or
a
number
to
If
three
letters, hyphened
system.

sufficient in the first respect, as it

If, for

three digits, should seem bulky,

remember that

this

symbol can

anywhere and express positively the identity of

comparative brevity is shown by comparing the
In the
second and third columns of the following table (A).
of
the
of
the
different lines an idea is given
system
application

stand by

the piece.

itself

Its

to a variety of products not usually

made

TABLE A
Col. 1st

in

any one shop.

SCIENTIFIC

MANAGEMENT

459

TABLE B
FPL

Piece

number

No. 3 Foot Press

Weight

482

SCIENTIFIC

460

We

boring, then turning.

most important pieces

first.

MANAGEMENT

ako aim to place the heaviest and

Between each group we " gap " the

numbers.

Regarding position in naming pieces, we assume a front to the

machine (where the operator is most likely to be placed), and
"
"
''
''
define direction tersely as
forward,"
back,"
left,"
right,"
"
"
of
to
The
down,"
adjectives
position prefixed
piece
up."
''
names are, of course, derived from these words, as
upper,"
"
lower," etc.
perpendicular row of similar pieces, say five,

would be rated upper, second,

number

third,

fourth,

of different sized pieces of similar

and lower.

name may,

in

A
hke

manner, be prefixed smallest, second, third, etc.

Before closing, a brief reference to certain (two) supplementary
symbols may not be out of place. One is a small letter after a
piece symbol (as FPL-21-a), signifying that the piece is obsolete,
the standard, FPL-2 1 having been altered. After a second alter"
b," and so on.
ation, the last obsolete piece would be suffixed
,

pieces of old-style machines can be identified and

The other symbol referred to is to indito
customers.
supplied
cate the number of the operation in the construction of a piece,

Thus duphcate

and

is

written thus:

FPL-2 i-ist, FPL-2 i-2d,

etc.

Its use is of

It
great value on detail drawings, time-cards, and cost records.
enables any operation (no matter how trivial), on any piece of

any machine

we

define as

any work which

before passing the piece

it

by a symbol alone. An operation

is done by one person at one time,
along and commencing upon another.^

to be identified

^
This article has been reprinted largely for its historical interest and the part
has played in stimulating an important development of the Taylor System:

to wit, the classification

and symbohzation

operations involved in industry.

Ed.

of all functions, costs, materials,

See C. B. Thompson's

"

and

Classification," p. 461.

CLASSIFICATION
By

C.

AND SYMBOLIZATION

BERTRAND THOMPSON

Reprinted by pennission of System

Giving a Business a Memory; How Materials, Processes

AND THE Functions of an Organization are
Given Places and Identities
astonishing that in all the discussion of scientific management that has been going on for so many years, and with such
intensity in recent times, there has been practically no attention

It

is

paid to the fundamental subject of classification.

In the books

on factory management,
and scientific methods of selling and production, you will find
very little on classification. They give you classifications of their
own; but the samples they give are good as suggestions and
industrial engineering, cost accounting,

They will not bear transplanting. What

they tell you is neither how they made them, or why they made
them as they did. Especially do they fail to tell you how to go
To the busy, practical
to work to make one for your own plant.
essential
and
how to do it
man this is the important
thing
illustrations only.

himself.

The making of a classification is the beginning of wisdom.

Without it accurate records are impossible; and where there are
no records the business perishes. A distinguished professor of
idealistic tendencies recently suggested to me what he thought
was a new theory;
records.

that business ought to dispense with

Too much time is wasted, he

said, in

mere

clerical

all

work,

He thought it
and not enough spent on actual production.
would be safe to get along without all this mere writing of history,
and that society would benefit greatly from the increased production.

The only
centuries

trouble with this theory

and found wanting.

is

that

Business
46X

it

has been tried for

men

are today being

SCIENTIFIC

462

MANAGEMENT

more and more

recording, because they have found

that records are an indispensable insurance against mistakes,

forced into

memory, and against general human fallibility. Neglect

them means failure to get and to hold business. It means
failure to work economically, and failure to deliver on time.
It
means inability to finance the business, because no bank will
trust a concern which does not keep records.
It often means
failure to recover a just amount of insurance in case of fire.
In a
business of any size it means ultimate bankruptcy.
To get accurate records you must have classification for two
reasons.
In the first place, to introduce order and comparative
And
simplicity into what is otherwise disorder and complexity.
failure of

of

in the second place, to identify all the elements of industrial

activity.

Business activity
processes,

and

is

made up

relations

of three elements

between individuals, the

materials,

latter usually

called organization.
you want to know what you are doing
in your business
and if you don't the sheriff will certainly get
to order and identify every element of
must
reduce
you
you
bit
of
material, and every detail of organization about
labor, every
If

your place, together with every relation between your business

And you can get
and the financial world and the market.
neither order nor identification without classifying.
Consider how the natural sciences are built up on a foundation
of

classification.

Biology has kingdoms,

orders, genera, species

and

varieties.

branches,

classes,

Each individual must

fit

as an individual belonging to a certain variety of a certain

species of a certain genus, order, class, branch and kingdom.

in,

insect has a location all its own.

This

the only
scientific way through the vast complexities of living matter.
There is no other way to traverse the complexities of business.

Every

little

is

Take for example a simple business like the cigar factory you
The manager, who is also the selling
can find in every town.
force and one of the rollers, sits at a bench with the stripper and
Their materials consist of tobacco of two or
another roller.
three kinds, cement, bands and boxes; their tools are boards,
knives and baskets.
Equipment is summarized in chairs and

SCIENTIFIC
a

table;

perhaps a counter.
filler

The
off,

463

process consists in removing

and wrapper

arranging
cementing the tip, cutting
stalks,

MANAGEMENT
in parallel lines,

packing, delivering.

rolling,

Selling

is

There is no advertising. The costs

direct, to a few retailers.
are not very complicated: wages, materials, and perhaps rent.
Light, heat, and ventilation are such as a more or less benevolent
nature provides.
Efl&ciency is easily measured by output, so
many boxes of cigars a day made and sold.

small business like this, you would think, could be carried

But even this miniature manager feels

in the owner's head.

that the small

the risks he

amount

nms

if

of record keeping necessary

those records are lacking.

is justified

He

by

has the rudi-

of a bookkeeping system, therefore; he has a record of his

customers, as well as of output. The risk is small but so is the

ments

cost of keeping these

memoranda.

And even

these few statistics

require an elementary classification.

But to go from one extreme to the other, consider, for instance,

an automobile plant. Here order becomes imperative.

of detail

is

overwhelming,

until

controlled

by

The mass

classification.

Here you have engineers, draftsmen, designers, machinists,

electricians, assemblers, testers, polishers, upholsterers, painters,

Each
chemists, besides large administrative and selling forces.
its
of
with
is
made
each
and
individuals,
department
up
groups

own

separate and distinctive job.

you have
only classes
leather,

For materials

to mention

wood,
minor
numerous
other
and
rubber, paint, varnish,
iron, steel, brass, copper, nickel,

groups.

Many

types of buildings are required for different purposes:

machine shops, woodworking shops, storerooms, stockrooms,

Your equipment must include machine tools of all kinds,
oflSces.
a store full of small tools, and equipment for carpentering, upholThe routing system must be eflScient and
stering and painting.
therefore elaborate; for success depends on getting parts through
in proper time and sequence for assembhng, and the completed
product out on schedule time.
Costs are enormously complex, and can be handled only by
classification.
Efficiency records must be kept, though the diffi-

SCIENTIFIC

464

MANAGEMENT

great because the elements are so

numerous and varied, for without efficiency records it is imposThe selling organization
sible for a firm to compete successfully.
culty of recording efficiency

is

for the time being the

is

backbone

of the automobile business,

and selling cost is a large element in the price to the consumer.

Failure to develop a highly efficient selling organization enabling
him to sell at or above the market would mean ruin. In the
up-to-the-minute sales department records are the breath of life.
Without classification, there can be no records worthy the name.

even more complex, is

which designs,
company,
management
service
and
builds
finances,
corporations, power
operates public
There are managers, engineers, draftsmen,
plants and factories.

Another interesting type

of business,

the construction and

carpenters, masons, concrete

men, plumbers,

cal

statisticians,

experts,

accountants,

force, librarian, editor, financiers,

bankers, bond

sellers,

filing

agents,

every kind of material that can be used

The
equipment, or on construction or field work.
a large and important problem, first through the office

advertisers.
for office

electricians, techni-

stenographers,

There

routing is
and then in the

is

field or

the factory, and on

all

kinds of jobs.

Costs are extremely complex, and they must be kept with the
utmost accuracy; for it is getting to be more and more the rule
with concerns of this sort to take contracts on a cost percentage
When the contract is of this nature the customer must
basis.
have all the cost records submitted to him regularly and promptly;
He
they must be detailed, up to date, and instantly accessible.
must also be shown that the costs are being kept down efficiency
Both parties must know exactly
records must be maintained.
:

what the
when the

total costs are, in order to fix the proper

compensation

final bills are rendered.

In such businesses as these

the construction and

the

automobile industry and

management company

the

risks of igno-

An ounce of knowledge is worth

rance are simply enormous.
a pound of guesses; a stitch in time saves nine law suits. Insurance at any price is cheap.
This is one of the necessary costs of doing business on a large
scale, and society must submit to pay for it if it wants the advan-

SCIENTIFIC

MANAGEMENT

465

It
tages (probably compensating) of large scale production.
also a necessary cost of any complex business, whether on a
In any concern that has passed beyond
large or a small scale.

is

the

one-man stage there must be plenty

of records; to

have them

properly kept, classification is absolutely indispensable.

and order mean, in the first place, definiteness

of function.
Every body knows exactly what he has to do, and
how he has to do it: there is definite organization. It means
definiteness of operation: everything is done at the time it should
be done, in the order in which it should be done, and in proper
It means convenience in locating the
relation to other things.
It makes possible
materials used and the records compiled.
Classification

accurate knowledge of costs.

without

The disadvantages

of having

it

expense sinks into the background.

meet

it

when one undertakes any kind

one man's head.

big for
like all

doing

It is a necessary cost, like

the cost of labor and materials and machines.

to

of

knowledge are so great, and the advantages

are so many and important, that the question of

this classified

One must expect

of business that

is

too

without saying that this cost,

others, must be kept as low as is consistent with real
It goes

efficiency.

After the introduction of order the second function of classification is the identification of the elements

and the combinations

of labor, materials and organization.

It
mere names are not sufficient for definite

is

a curious fact that

identification.

Lan-

guage has not grown so fast as the facts with which humanity has
to deal.
Consequently names are considerably overworked.
are ambiguous; they may at once mean two or three or a
dozen or twenty different things.
The fact is that names get a definite meaning only from their

They

The context is itself a part of the name; it is the signifThe usual way to get sharpness and defidefining part.

context.
icant,

is by a long, roundabout qualification and

description.
The short, direct way to provide a context which will make
names significant, definite, unmistakable and intelligible, is

nition

classification.

SCIENTIFIC

466

MANAGEMENT

Suppose you are doing business with twenty thousand custoThere are perhaps two hundred Smiths among them.

mers.

You

But there are probably

and
some
initials,
perhaps with even the
on
their
names alone; you
same full name. You do not depend
have their addresses, and by supplying your customers with a
context by their location, the state, city, street, and house
You
number, you can ship and bill them without mistake.
of
classification.
identify them by this system
Your foreman sends in a requisition for five hundred feet of
"
This does not mean anything until you know what
tubing."
If you are in the automobile business, and the tubing
it is for.
classify

them

first

by

their initials.

a number with the same

coat

is for

rails, it

may be

brass;

if

for acetylene feed pipes it will

You must classify.

You want some one to " go to the bank and get some money."
To finance a new departure in your business, your president or
manager needs to make the trip. To get a check cashed for the
be rubber.

Classification
week's payroll, however, a messenger will serve.
You
call
which
to
send.
this common
tells
function
may
you
by

but when you have ordered and classified all your common
sense of small things you have the foundation for a science of
sense

business.

What

classifications are of practical use to you in your busiThere is apparently no end to the groupings which can
Out of these we must select those which
logically be made.
show promise of practical usefulness. The chart on page 469

ness

includes those which every establishment hoping to succeed

must develop to some extent, consciously or otherwise. Many

of them have already been reduced to writing in your factory or
store perhaps;

you have at

least a

system of

classified

commercial

accounts.
Classified cost accounts are generally

acknowledged to be

men know

useful;
they are indispensable; and in many
Stores and stock
factories they are complete and adequate.
"
accounts, under the guise of
perpetual inventories," have been
Filing systems for
injected into many stores and factories.

wise

records, at least for letters

and

orders, are quite

common.

They

SCIENTIFIC

MANAGEMENT

467

be crude and incomplete, and only slightly related to other

Drawclassifications and records; but the beginning is there.

may

ings, blueprints,
still

present

photographs, patterns, samples and catalogues

problem in too many shops; but they are

filed in

some way. The trouble does not come until some one tries
find where they were filed.
Progressive managers, in order

to
to

collect statistics covering the vital phases of production, advertis-

employment and

ing, sales,

efficiency,

have made the

classifi-

cations necessary for these.

Routing, including the naming

and location of all stores, parts

in process (worked materials), tools, machines and work places,
ought to be classified wherever assembling is a process; but
there are few factories which do it thoroughly.
Selling departments have done better. Their statistics of agents, territories,
branches, and other methods of selling correspond to the routing
which ought to be done in factories.
Classification of duties and functions has not been carried so

The

duties of every one, from the messenger boy to the

Carried to
president, are included in functional classification.
completeness, it includes also processes and methods in current
far.

The

use.

functional classification

it is

them

It unifies

classification.

and, as will be shown later,

an extraordinary saver of time

the basis of a system which is

The chart illustrates

How much

it ?

only the first question

answers to the second.

how

all

the other classifica-

it.

your own business,

This section will attempt to answer

classification should

and how can you do

in fact the all-inclusive

all;

and energy.

tions are included under

is

you do

in

succeeding sections will set forth several

extent to which you will make definite classifications on

paper depends first on the nature of your business. For instance,
it would be almost a waste of time to develop an elaborate routing

The

system in

many

cases.

This

is

true of those industries which are

mainly analytical or continuous in their nature, handling a

single material such as cotton, from start to finish, and modifying
it

in process.

On

the other hand, an assembling industry, like

SCIENTIFIC

468

MANAGEMENT

an engine works or a furniture factory, is utterly at sea without

a good routing classification.
The probability of growth must also be considered. If your
business is constitutionally stagnant, it makes no material difference what classifications you have or whether you have any.
If you want to get it on the road again by heroic efforts, you will
probably need them all. If your business is growing at a normal
rate,

your

you

will

need properly arranged records of many kinds, and

be so comprehensive from the start

classification should

that there

A functional

opportunity for unlimited expansion.

is

Hke that illustrated in the chart on page 469 should

be the basis, as this unifies all the classifications, and is easily
classification

developed as the business demands additions.

The type of management also cuts a figure.

Under the

ordi-

nary rough-and-tumble organization almost any classification

If such a management had a good system it might not
will do.

know how

to use

it.

As

the

management improves,

the best

methods become more worth while. Only the best type of manIt takes a high
agement makes the most of the best system.
to
and
to
use
a
of
ability
develop
complete, logical and
grade
Unless the management has that ability,
practical classification.
or can hire it, it would do better to be modest and take its chances

with a

less

elaborate scheme of classification.

This

is

a hard

saying; but business is frequently hard.

The two controlling considerations, however, are the necessity
of insurance against error, which has already been discussed;
to standardization which invariably accomStandization is here used in
effort
to
the
classify details.
panies
the special sense of the determination of the best method or the best
material to use for any given purpose, and strict adherence to that

and the incentive

best as the

standard until a

better is

found.

things and put them down

You do

not want to

permanent records until

classify
are
the
best
known for the purpose.
satisfied
that
are
they
you
time
that you begin to
You begin to standardize at the same
classify

in

and record.

This by-product of classification is of the utmost importance,

and it is a safe prophecy that it alone, in the hands of a compe-

SCIENTIFIC

MANAGEMENT

tent and wide-awake management,

of even the most elaborate system.

one

oflSce

469

more than pays

for the cost

A functional classification of

revealed that any one of four stenographers might

r

'

Operations

Charging

Productive
Producti\
"
"
Non-Pr
-Productive

Raw
.

Stores

Materiab

Worked

Operations
Materials

Raw

Finished Stock

Routing

JR. orked

Tools

Production
.

Machines and Workplaces

Purchases

'

Correspondence

Employment
Customers
Miscellaneous

Filing

Processes

Information

FUNCTIONS \

Classifications

Materials

Accounts

Charging

Administrative

I.

Sales

Customers
Stocks

Agents
Territories
.

Selling

Branches
Mail Sales

Methods

Advertising
!>

Packing

Accounts

Data
{Correspondence

answer the telephone, with consequent interruption of

whenever the bell rang.

all of

them

When you start to list and group materials, you usually find
that the kinds and quantities of materials used are subject to the
whims of the requisitioner or purchasing agent, or the state of

SCIENTIFIC

470
the market.

Yet you know

MANAGEMENT

that, ordinarily, for

any given pur-

pose, one material is better than another, and should be consisWhen you must classify, you put down the one
tently used.

best material, and strike the others off the list, thus estabhshing
This process saved a great university $7,000 a year
on the cost of its stationery and office supplies alone.

a standard.

As to methods, you will not take the trouble to study a process

and reduce it to writing for the guidance of your present and
future force, unless you are reasonably sure it is the best one you
can get.
One of the Government
Similarly with equipment.
departments at Washington was once subjected to a classification
There
of the pens it used, and seventy-six varieties were found.
was no necessity, from any point of view, for using more than
seven or eight kinds; and in the meantime the economy of larger
purchases was sacrificed.
were useless to inquire into the reasons for the neglect of
classification, a neglect all the more surprising in view of its vast
It

importance. As we have seen it lies at the foundation of modern

business practice.
Without classification, there can be no order,

no definite identification and, therefore, no accurate records.

Without records, business has no insurance against mistakes and
forgetfulness, and it misses the opportunity and the incentive
to adopt the best methods which come with the mere act of
recording.

n
Memory Tags for Business

What

a Right
Classification System Does for a Factory
OR Store and How to Make One

The
words:

correct

method

Facts;

of classification

is

summed up

analysis, the enumeration of elements;

in two
and synthesis,

the regrouping of details.

To begin, you list all the facts of your business, every detail
and element, down to the last paper of pins and the last stamped
envelope.

Each

each machine,

bit of material in stores, in process or in stock,

tool,

work-place and operation, each bit of income

of each official and workman.
At

and expenditure, and the duty

SCIENTIFIC

MANAGEMENT

47 1

on paper and in your mind's

eye before you can begin a comprehensive classification.
In practice you will not actually classify all these at once, of
least this

much must be

course.

But

and

definitely

make

to be in position to

you must

unified classification

ultimately a complete

see that the field is staked

You are
out from the beginning, even if it is only in outline.
insurance
own
and
it
is
to
policy
up
really writing your
you to
It is the things you
see that nothing of value is left off the list.
;

forget that always make the trouble.

Next comes the regrouping of all these elements into the classes
to

which they

Each element must

logically belong.

find its

appropriate place, according to the purpose of the classification.

If, for instance, you are dealing with functions, you will group
the duties of the directors in one place, those of the executives

workmen

in another, those of the

up by

departments or

by

in another, dividing the latter

the kind of

work they

do.

In handling

charges, you will start with the old favorite division into direct
and overhead expenses, and then subdivide these into labor and
materials, and shop and general expense, subdividing the last

group to suit your

materials,

operations,
places,

and

as will be

taste.

tools.

shown

Your routing

classification will include

parts
process, machines and workthese are done the filing classification,
in

When

later, will

take care of

itself, for it is

nearly

identical with those already suggested.

Certain items will appear in more than one classification; but

there is no cause for alarm in this.
Instructions for the operation
of a

monotype keyboard may be

for details of

method;

progress of work

in the functional classification

in the routing classification for checking

in the charging classification for proper alloca-

tion of expenditure; and in the filing classification for reference

to data.
The same facts are differently classified for different

purposes.
They appear under the same
the lists; no confusion, therefore, results.

Everything

The

will

go well

if

you are

basis of classification

logical

name

or symbol in

all

and accurate from the

the similarity of certain

elements in the things grouped together as " alike," and dissimilarity between certain other elements which distinguish one
start.

is

SCIENTIFIC

472
class
like

MANAGEMENT

"

from another as different." Men are classified as animals,

the apes, on account of numerous similarities of structure;

but they are distinguished as

men by

Men

by

are classified into races

head together in the same race,

skin or shapes of head in other races.
elements of similarity or of difference chosen for industrial

of skin or the

and

same shape

the few points of difference.

including all with the same color

of the

all of different colors of

The

classification

must be

significant

and

essential;

significant with

reference to the purpose of the classification, and essential in the

nature of the object classified.
If you are classifying
pencils

with reference to charging them as direct or indirect expense, it

is immaterial whether they are blue or not.
If they are classified
functionally, with reference to the purpose for which they are
it makes considerable difference whether
they are blue or

used,

black.

The blueness

is

accidental in the

first case, significant

in the second.

Now that, with the aid of these few simple principles, you have
and have rounded them up in logical
and accurate pens to suit your needs, you must brand them with
marks which will make them capable of easy identification. A
classification is no good unless you use it, and use it constantly.
To use it conveniently, some system of naming the elements
must be provided.
These tabloid names are called symbols. A name is itself a
corralled all the elements,

"

symbol:
on.

desk

When

"

is

want

the symbol for this thing I

am now

writing

to designate a detail, such as the lever in the

lock in the upper left-hand drawer of this desk, ordinarily I must

But this is too long for practical purif
I
had
to designate it very often, as I might
poses, especially

use just this set of words.

manufacture of locks. This name must be shortened into

a symbol, which will mean exactly the same thing at all times and
in all places and never anything else.
This symbol, since it is a
must
be
handled
if
short-cut,
and,
easily
possible, easily remem-

in the

bered.

good system of symbols must have four qualities: First,

simplicity combined with efficiency, with the emphasis on the
Simphcity in itself is no virtue; in the attempt to
efl&ciency.

SCIENTIFIC

MANAGEMENT

473

You

are a canny
manager, and you demand simplicity; when you go to the office in
the morning you use the simplest vehicle you can find, to wit, a

handle complex conditions

it

may

be a vice.

wheelbarrow, with your janitor or gardener for motive power.

Or perhaps I am mistaken you really prefer efficiency to simplicIn the
ity, and go in an automobile, the height of complexity.
:

same

fashion, a system of symbols should be as simple as

is

con-

use a simple number

Many
as simple
million
from
one
a
to
system, running consecutively
as a wheelbarrow.

concerns

sistent with efficiency.

still

The second requirement is definiteness. There must be just

one symbol to one thing, and one thing to one symbol, and the
It ought not to be necessary to put your
twain must be one.
That is, of course, the
finger on a thing in order to identify it.
Men will say: " Order a desk
time-honored way, still used.
like this

"

or

"

a ream of stationery like that," notwithstanding

that in nearly all other relations of life language has carried us

beyond the pantomime

stage.

Classification has given the

perfect definiteness of identification;

same

this

name

the symbol should have

definiteness.

Third, the symbol should have a mnemonic quality; that is,

This is of the
it should be capable of being easily remembered.
It makes symbols convenient and easy to
greatest importance.

handle without constant reference to a key. It serves as a check

on accuracy; if a symbol is incorrectly made, the next person

A mnemonic symreading it will notice that it means nothing.

bol which follows the classification of the thing symbolized, sums
up that

classification in itself, as will

be shown in a moment, and

therefore, a perfectly definite and logical means of identifica-

is,

tion.

Finally,
for

it

brief.
Practically this offers no difficulty ;
certain to be briefer than the name for which it

must be

any symbol

is

stands, to the extent of from one-third to one-twentieth the

number of letters. Here is a choice specimen from a catalogue:
"
"
a fullLower-left-hand-cutting-bladc-set-screw-lock-nut
A perfect symbol for that could
blooded Unguistic dachshund.

not consist of more than eight or ten

letters.

SCIENTIFIC

474

The system which seems

to

MANAGEMENT

me

to

meet

all

the tests laid down,

yet comprehend the whole scope of industrial activity, is a combination of letters and nimibers, predominantly mnemonic, which

has been worked out mainly by Frederick W. Taylor and his

group of associates, especially Carl G. Barth, together with some
extensions (in the

domain

of selling organization)

by the

writer.

This system is based on a complete and exhaustive analysis

of every detail of labor, materials and. organization involved in a
The resulting list of elements
business, as previously explained.
then regrouped in a logical classification; first into broad
general divisions, then each division into its subdivision, and each

is

subdivision into as

many

groups and sections and subsections as

Letters are used for each

the nature of the business requires.

division, subdivision,

made

some other
same thing.
or

Numbers
depending
bol.

on.
Wherever possible they are
the use of the initial letter of the name

and so

suggestive, either

by

significant letter, or

by being always used

for the

are used for dimensions or for job or lot numbers,

meaning on their special position in the sym-

for their

Numbers

are also sometimes used for the individuals in a

ultimate elements are often so numerous as to go

the
beyond
possibilities of the alphabet.
They are also used at
the beginning of symbols for operations, to indicate the first,
class, as these

second and succeeding operations on the piece symbolized.

Obviously the same letter will often be used for different things,
according to whether the thing
Its particular

the symbol.

is

a division, a group or a section.

meaning, therefore, depends upon its position in

In the symbol ASAMP the first A has a meaning

as part of a division, the second

another significance as part
of a group.
It is just as it is with digits, which in the decimal

system get their significance from their position in the group.

Thus 333 means 3 hundreds, 3 tens and 3 units. There is no
reason for confusion in one system more than in the other; and

no one would read this combination

hundred and thirty-three.

To make
fication,

of digits other than as three

suppose we construct a functional

taking for our example a small printing plant.
all this clear,

classi-

This

SCIENTIFIC

MANAGEMENT

475

classification will include all the activities of the plant, productive,

administrative, and selling,

all

purposes

and

will

be broad enough to use for

costing, routing, control of materials, duties of

offi-

of work, sales organization, and filing.

We shall
one item to classify and symbolize: the instructions for
the operation of a monotype keyboard.

cials,

methods

select

our business consists of

It is clear that in the broadest view,

manufacturing, selling, and the administrative and auxiliary

activities connected with these.
Auxiliary activities are those
which are directly connected with production, such as power and
administrative are those which are necessary to the conduct of the business, but do not enter directly into the product,
such as accounting.
light;

For convenience we

break up manufacturing, for our

shall

general classification, according to classes of product, and will

also segregate stores and materials and the operations and accounts connected with the purchase of land, buildings, new

equipment and

This

tools.

more

utilizes

letters for

broad

classes,

shortens the symbol, and is an aid to accounting.

Then we set
down the letters of the alphabet in column, omitting the I and the

O on account of their similarity to the figures representing one and

zero,

and

fit

our classes

To

in.

continue the classification of

manufacturing, D, by departments:

DC

Composing

DP

Room

Press

Room

Analyzing the composing room, DC, with reference to various

we

features,

DCA
DCB
DCC

DCM

not elsewhere classified

Miscellaneous labor

DCR

Machines and work-places

Reclamation of errors

DCS

Stores

DCT

Tools

DCZ

Buildings

Fixtures, furniture
ratus

The next
includes

get:

Composing room functions

step

is

and appa-

easy:

DCM,

machines and work-places,

DCMF

DCMM
DCMP

Proofreaders' tables

DCMS

Monotypn: machines
Proof presses

DCMT

Imposing stones
Typ)e stands

SCIENTIFIC

476

Monotjrpe machines,

DCMMC

Monotype

MANAGEMENT

DCMM,

casting

ma-

divide naturally into

DCMMK

Monotype keyboards

chines
is

Operation

DCMMKP

obviously P, so the symbol

Operation of

we

are seeking

is

monotype keyboard.

We

can go on as far as we like in the analysis of keyboard

operation, for tabular work, straight composition, justification,

and

so on.

This symbol

is

a complete classification and identification in

The

instructions in question are evidently for the operaof

the
tion, P,
keyboard, K, of the monotype, M, which is a
machine, M, in the composing room, C, which is part of the

itself.

manufacturing, D, end of the business.

The symbol

identifies

the machine for the routing department, indexes the instructions

in the methods of work, shows the accounting department that

any charge

in connection with these instructions is a

manufactur-

and provides the filing department with a

for
filing all data on the subject.
self-indexing system
Almost every manager has been driven at times to some variety
It is usually some expedient gotten up on the
of symbolizing.
for some special purpose, such as identifying
moment
the
of
spur
costs or salaries, or shortening names of frequently used items.

ing indirect expense,

however, a few serious attempts at systematic symbolization, besides the one just described, which it is worth our
while to consider and to test by the qualifications laid down.

There

are,

There are several arbitrary systems, some of them made up

One manager symbolizes the parts of a
entirely of numbers.

machine by dividing it first into groups and numbering them

consecutively, and then dividing each group into its elements,
In the wheel group, which is the
also numbered consecutively.
front
front
are
there
These are
hubs,
fourth,
flanges, and so on.
The classification here
s>Tnbolized thus: 4/1, 4/2, and so on.
appears to be practicable, and
"
front hubs."

It is

easier to write

"

4/1

"

than

the only advantage this method of naming

not definite, for it does not, without further descrip-

Brevity, however,
has.

it is

is

SCIENTIFIC
tion, indicate

MANAGEMENT

477

what type of machine the hubs are for. It is thereand it not mnemonic. A similar system

fore not really simple,

has been proposed for identifying costs:

Annealing;

(i)

(2)

As-

sembling; (3) Babbitting; (4) Bending; (5) Blowing; (6)

Boring, and so on. This is subject to the same adverse criticism,
besides being based on no logical classification at all.
Many managers use a system which is an arbitrary combination

numbers and letters. For instance, one symbolizes departments thus: A, Administrative; B, Legal; C, Business, general
office; D, Sales; E, Accounting; F, Purchases; G, Engineering;
H, Drawing; I, Planning, and so on. This is used to identify
Thus 4G is workman
workmen, and departmental expenses.
of

Number

4 in the engineering department G4 is a subdivision of

A well-known accountant symbolizes
;

engineering expense.
private ledger accounts

by the same method. A to D is assets;

These are
is Ai; Notes Payable, lE.
Cash
H,
all short, definite, and comparatively simple; but they lose all the
advantages that would accrue if they were suggestive.
Sometimes you find a combination of arbitrary and mnemonic
Sometimes an effort is made to give
characters in a symbol.
mnemonic quality to numbers alone by grouping them. This

to

liabilities.

has been applied especially to the classification of expenses.

Thus one man gives this for a foundry: Direct labor, 150 and 151
various expenses, 152 to 160; Supplies, 165 to 169; Maintenance,

Departmental expense, 180 to 187; Miscellaneous,

190 to 194; Commercial, Administrative, 200 to 207; and Com170 to 175;

mercial, Selling, 215 to 220.

Another large establishment groups, somewhat

into Administration Expense, loi to 149;
to 179; Distribution Expense, 181 to 199.

it

minutely,

Selling Expense, 151

This system

is

short,

too simple, in fact.

mnemonic, and simple
must either memorize the meanings of groups and

definite, slightly

Those using

less

of single numbers, or else be constantly referring to a key.

is therefore inconvenient to handle.

It

The group idea is carried to its logical conclusion in the Dewey

decimal system, well known from its use in public libraries. This
apparently elaborate system, when applied to a logical classifi-

MANAGEMENT

SCIENTIFIC

47^
cation,

is

in fact simple;

and when frequently used

it is

highly

mnemonic on account
and

brief

of its strict logical associations.

It is
It can be applied to the filing of
very definite.
any

data in an industrial or commercial establishment, simply by

making a basic classification to fit the case; as for instance for
catalogues, chppings, drawings,
great disadvantage is that its use

memoranda, and

so on.

Its

practically limited to filing.

saw that by the Taylor system the symbol for the instructions for the operation of a monotype keyboard would be
is

We

DCM-

MKP.

Let us compare

methods

just described.

this

with what

By

might be by some of the

one method it might be 233; by
it

by another, J6; by another, 14C (slightly

mnemonic) all of them short and fairly definite, but too simple
to be efficient, and in most cases not in the slightest degree sugAnother method might symbolize it MON4, which
gestive.
would be better than any of the others.
The Dewey system
would perhaps call it 677.823.19. Most of these systems could
not classify and symbolize such a detail at all, except in a purely
arbitrary fashion and such a symbol as they could get would
another,

17/11;
;

necessarily

have an exceedingly

The advantages

restricted use.

of the Taylor system are

lutely definite; for the

first,

moment you introduce

that

new

it is

abso-

factor in the

thing you have to change the symbol, hence you can have but
one symbol at any one time for one thing. It is mnemonic, for

the letters remind you of words whenever possible, and the arrangement in a logical classification indicated by the position of
the letters in the symbol helps out your memory of their significance.
That it is brief in comparison with the full name of the

thing symbolized

is

obvious.

It is as simple as is consistent with

and

in practice is far simpler than other systems,

efficiency;
account of its qualities of definiteness and suggestiveness.

on

In addition to these advantages, the classification on which the

is based includes the entire business, and consequently

system

the symbols used are applicable in every department and for

every function, including accounting, routing, handling of stores

and

methods and details of

correspondence and data, and the

stock, checking progress of work,

selling,

the

filing of all records,

SCIENTIFIC

MANAGEMENT

479

arrangement and location of materials, parts in process, stocks of

It is selffinished goods, tools, machines and work-places.
indexing, like a dictionary or a city directory; and this not only
expedites the finding of any material, part, or record wanted, but
greatly facilitates the handling of requisitions, time tickets, bonus

and so on, for the costs department.

The time must come when a complete classification of

tickets,

all

busi-

ness will be made, similar to the Dewey classification of all

This is a task which calls for the resources of ^.,
knowledge.

Government department, or

in default of that it should

be under-

taken gradually but with determination by our great universities.

it is made, the details should be symbolized in accordance with the system advocated in this article.

And when

Class

SCIENTIFIC

480

MANAGEMENT
III

Taking Factory Costs Apart; How to Analyze, Classify

AND Charge Expenses According to What
They Should Buy
It is probably too much to say that a business cannot exist
Stores and facwithout an adequate cost accounting system.
There is a shoe
tories have struggled along for years without it.

store in a western city

which has what some might call a model

"
"
model
in the sense of
is, taking

that
system

accounting
"
a miniature imitation of the real thing."

The owner, who

is

the buyer, chief clerk, accountant, and repair man, has one book
the ordinary ten-cent Manila-covered butcher-shop memo-

On

the left-hand page he enters all expenditures,

dated but unclassified; this includes such things as postage,

randum book.

wages, cartage, advertising, insurance, magazines, and also his

On the right-hand page opposite are
personal expenditures.
listed all receipts, also unclassified;

receipts

from

sales, repairs,

on money loaned, and so on.

These columns are footed on each page, carried forward to the
next, the grand totals taken at the end of the month, and the

interest

balance indicates to this

man

his profit or loss for the period.

Depreciation, discount, and such details as that are too fussy for
him to bother with. The store has been run on this basis for

going on ten years; and the fact that, while he is doing a $60,000
business, he has on his shelves about $50,000 worth of shoes aged

one to ten years has not thus far worried the proprietor.
It is too much to say that a man cannot live on one lung, just
as it would be rash to assert that a store can't get along with such
a system as the one just described.
He lives; but his vitality
along.

A man with one lung can get

is

low and his

life is

compara-

tively short.

Most
lungs.

people, nevertheless, if they have a choice, prefer two

So the business that wants to be healthy and long-lived

some accounting system which is at least sufficient for its

Our friend's shoe store, for example, can hardly get along
needs.
permanently with a system which shows less than these facts:

prefers

MANAGEMENT

SCIENTIFIC

gross

Merchandise
on purchases;

sales, cost of

48 1

sold, discounts

buying goods
Expense
expenses,

selling

taken

expenses,

management expenses and fixed charges^

losses from bad debts, losses from errors and goods returned.
Buying and selling expenses must include, of course, the salaries
of the buying and selling force, extra premiums for selling and an
The wise manager deducts
itemized account for advertising.
delivery

expenses,

from gross

sales all returns

and allowances, unless those are

covered by the factory from which he got his shoes. His cost of
goods sold includes purchases at billed prices, with a separate
account for discounts, and it also includes freight and cartage on

Above

purchases.

of depreciation

shoes
in

is

all,

the wise

and shrinkage.

man does not neglect

An imposing array of

not an evidence of prosperity

a museum.

Shoe dealers who

the item

boxes of

those shoes really belong

make a specialty of novelties
if

are well aware of the fact that 50 per cent is none too much to
Some allowance has to be made even
allow for depreciation.
for staples.

Delivery expense must include salaries and wages of delivery

by an outside company.
and
fixed
Management expenses
charges should include rent,
and
renewals
of equipment, depreciaheat, light, power, repairs
tion of equipment, insurance on stock and equipment, taxes and
licenses, management and ofiice salaries, office supplies and expenses, and anything else that cannot be charged in the items
force or the cost of delivery service

already given.

And

bad debts and cost

as a kind of

of errors

symptom chart the losses from

and goods returned should be kept
forcing them down to a minimum.

separately with the object of

You may have noticed that interest
analysis of costs.

Raising

is

not included in this

this question will

tion of accountants into debate in a minute;

throw any convenand this is not the

I feel, however, that

place to discuss the pros and cons in detail.
there is no more reason for including interest in cost than for
If

you put your money into business instead

If you have to
out, your interest becomes profit.
borrow part of the money to carry on your business, the interest
that you pay the other fellow is part of the profits that you lose
including profits.
of loaning

it

SCIENTIFIC

482
to him.

MANAGEMENT

Interest, like profits or dividends

merely a share of the net surplus after

reasoning applies as well to a factory as
In a good

many

factories, all

on capital stock,

it

is

This

are paid.
does to a store.

all bills

man-

the costs are carried in the

This same manager's head also carries all the inager's head.
formation in regard to raw materials, ordered, on hand, issued,

He

knows all about the time his orders are to be

what
delivered, just
stage of development they have reached in
the factory, what goes into them, and when and how.
This
wonderful head also knows all about the men employed; how
long they have been there, how good their work is, when they are
deserving of promotion or advancement in wages, and how they
ought to do their jobs. The only thing its owner refuses to take
a chance on is the money due from customers
here, at least,
needed.

also

he

is

willing to

admit that a paper record

is

better.

An X-ray analysis of the contents of such a head will show that

it is

made up of a jumble of general impressions about everything,

with very

little definite

and accurate information about anything.

The man who knows

the facts about his business

is

one

who

records those facts as they arise and classifies the information

This is particularly true of factory costs.
For
thus recorded.
cost accounting, though in principle comparatively simple,

is

in practice necessarily complicated, involving as it does many

As you have probably read before,
little and elusive items.

costs like all

Gaul are divided into three

parts.

There

is

the

material that goes into your product, the labor that goes into
your product, and all other material, labor and expenses that are

necessary to carrying on the business but are not sold directly.

first two constitute your direct labor and material costs; the
"
overthird subdivision is your indirect cost, otherwise known as
"
"

The

head
"

or

burden."

Overhead

"

and

"

burden," however, are terms that ought

to be discarded, for they suggest something in the nature of a

weight or drag on the business.

These indirect costs in fact are at least as essential to the

maintenance of the business as the direct. Probably your salary,
you who read this, is an indirect expense; but you are not on that

SCIENTIFIC

MANAGEMENT

483

account any more willing to admit that you are not indispensable

The

brains of the manager usually get into the

if at all.
A large ratio of indirect
product only indirectly
to
the
therefore,
contrary
general impression, be
may,
expense,
evidence of high efficiency, provided of course the indirect labor
to the business.

applied properly and economically with reference to the result

to be obtained.

is

a small plant in Philadelphia which employed six

a hundred men in the shop and six in the office.
about
years ago
This looked like an ideal situation, so far as the proportion of

There

"

is

"

was concerned. The plant, however, was losing

money and borrowing to make up a deficit. It applied for a loan
to one man who named as a condition on which the loan should
overhead

be granted, the requirement that the plant should be completely

This was accepted and the reorganization effected.
reorganized.

The concern now has about seventy men

twenty-five in the office
give

in the

and

shop
a proportion of overhead which
would

most managers the nightmare.

As a

result of this re-ar-

rangement, however, the company is now, with a smaller force,

turning out three times its former product; and in spite of the
lower market price of the article it manufacturers, its net income
It has paid its debts and is
is two and a half times what it was.

now

turning over a substantial dividend.

"
nature of
burden."

So much

for the real

first thing to do is
what they are. You will have to depend on records
and not on any man's head, however capacious. Material costs
should be taken directly from requisitions, without which no

In analyzing and classifying your costs, the

to find out

These
materials should be allowed to go from the storeroom.
should
the
value
of
the
material, and
give
requisitions
quantity,

number or the indirect expense to which it is to be

All work done in the plant should also be recorded
charged.
either on a work ticket, which is the workman's authorization for
expending his labor, or on some other kind of reliable record
which records the amount of labor the workman has performed.
the order

This ticket or record should also indicate the order or the expense
to which the labor cost is to be charged.

SCIENTIFIC

484

MANAGEMENT

you want accuracy

in the allocation of labor cost, it is highly

time
important that the
spent on each order shall be recorded by
some one other than the workman, preferably by a clerk with a
If

a time stamp.

With the

men

and juggle times

will shufHe

for the day,

able

and they

amount

best intentions in the world, the workin order to make a clean record

will also indulge necessarily in a consider-

of guessing.

Workmen's time

tickets filled out

by

themselves run to round numbers, much as ages do when taken

by the census enumerator. The lady of twenty-nine and three"
about twenty-five," as
quarters finds it most convenient to say

her

"

about thirty." The

apt to put it
was not rushed and took an hour and fifteen

sister of thirty-seven is

workman who

minutes on a job is very likely to send in a record of an hour and

a half, and away goes the accuracy of your labor cost.
When materials and labor are to be charged to specific products,
is no great difficulty encountered in allocating the cost.
trouble comes in connection with the materials and labor and

there

The

supervision that are to be charged to indirect expense.

Indirect expenses are so numerous and varied both in factories

and stores that

Once made, this

classification
classification

becomes absolutely indispensable.

becomes most easily workable when

reduced to a mnemonic system of symbols.

In the rest of this
such
a plan and method of classification and
article, therefore,
symbolization, appUcable with slight modification to practically
any manufacturing plant, will be described.
Your first question is: " Is the product on which work is done
"
"
If the answer is
to be sold ?
Yes," then the charge is a direct
"
one against product or worked materials," which will ultimately
"
be sold as merchandise. If the answer is No," then you must
"
Does the work done or the material used increase the perask:
"
If it is for land and buildings, or
manent value of the plant ?
"
machinery and motive power, the answer is undoubtedly Yes,

and you will have two accounts

the other for Construction.

and so

forth,

advisable to

one for Land and Buildings, and

If it is for fixtures, apparatus, tools,

which depreciate rapidly, and on which it may be

charge half the cost at once to Shop Expense, and

SCIENTIFIC

MANAGEMENT

485

the other half to Construction, you have an account for Part

Construction.
If the work done or material used does not increase the permanent value cf the plant, then it must fall under the head of
There are some departments
General or Department Expense.
of your business whose work does not directly affect the product
For example, your accounting department and your sellat all.
ing organization; you can manufacture without them if you are

interested only in making a product.

You may charge one set
of expenses then directly to the selling department and another
set to what you may call administrative or business departments.

Another

your expenses is necessary to carry on the work

manufacturing such, for example, as power, storerooms, and
toolrooms.
Without them, the product could not be manufactured at all.
And yet they do not enter visibly into the finished
class of

of

whose production they are so

These may be
whole plant or departmental shop expenses applicable to one department or another.
Now suppose we lay out a base sheet. First, you arrange the
article to

essential.

either general expenses applicable to the

alphabet in column, omitting

I,

O, Q; then you

fit

in the

broad

following so far as p)ossible the

mnemonic method. You may call the general expenses which
"
are necessary for the manufacture of the product
Auxiliary ";
administrative expenses may be termed "Business"; selling
classifications already given,

expenses
"
called

may as well keep

Departmental

";

own name; shop expenses may be

you may also have an item for erecting,
their

the nature of your product is such that this is essential.

These
can go in at the top of the alphabet; and the last letters, X, Y, Z,

if

be for Part Construction, Construction, and Land and

Your base sheet will then look like
Buildings, as defined above.

may

this:

Auxiliary

MANAGEMENT

SCIENTIFIC

486

In order to connect this classification with other purposes

of the factory than cost accounting, it is advisable to use S
invariably as the first letter in the symbol for raw materials,
developing the rest of the symbol in the manner to be indicated

is reserved for Tools in

in a succeeding article.
Similarly
The other letthe plant, where they are an important factor.

ters then

grinders,

or

may

be used for classes of product:

for milling cutters,

for coats,

Then you

will

for trousers,

for

such as

moulding machines,

for suits,

for

etc.

for overcoats, etc.

proceed to subdivide each of these items: for

might be further

instance, your auxiliary group of expenses. A,

analyzed

AA
AE

to

like this:

AD

Unassigned
Experiments for the benefit
of manufacturing

AHD
AHE

AF

line

AG
AH
AI

Engines, boilers,
other machinery,

to

AS

Heat, light and power

Unassigned
Storeroom

Then you

subdivide

pulleys,

the Engine

Fuel, includes

used in

AH:

all

materials

firing boilers, inclu-

wages to the engineer and fireman when

their work cannot be charged
to any other expense item of
this department, and any
other labor connected with

AHH to AHP Unassigned

AHR Water Rent

running of

boilers,

AHS

generators,

and other ma-

engines,

and movable, and tools

and other minor equipment

fixed

Engine Room. Repairs

and maintenance, but not

in the

new work.

AHG

Gas used throughout building

Stores

and supplies including

stationery, which cannot be

charged to any other expense

Room.

Fixtures and furniture, both

and

Room.

sive of freight and cartage,

receiving and cost of disposing of ashes.

Salaries or

chinery in the Engine

AHB
AHC

AHF

Unassigned
will

all

Repairs and maintenance,

but not new work.

AR

AT to AZ

AHA

shafting,

belts, in

and

including

item of this department.

Unassigned
Piping and fixtures for steam,
gas and water. Also all electric wiring, repairs and maintenance, but not new work.

AHT to AHV

AHW

AHX to AHZ

Unassigned

of analysis should be made of all other items,

the
product, which may be subdivided into the various
including
kinds of grinders, milling cutters, or suits and overcoats made.

The same kind

To

carry out this plan of classification in detail for a simple

SCIENTIFIC

MANAGEMENT

plant requires a small volume and

undertaken.

Such a

classification

is

487

a task not lightly to be

must be made by each plant

in accordance

own

specific needs, following strictly the funamental

of
approved cost accounting. When once done, howprinciples
ever, it is done for good; and until it is done, the management

with

its

must wander

in outer darkness, so far as its costs are concerned.

every expenditure of labor or material is made on a written

order or requisition, the symbol of the expense and the order
If

number should be on each

department can have no
ing each cost.

The

product made

is

When

one.

difficulty

this is done, the cost

whatever in properly

allocation of direct labor

allocat-

and materials

to the

easy; but the proper distribution of indirect

the
product, where it must finally land and be paid
expense over
for by the customer, requires experience and careful thought.

Of the various ways

of doing this, each has its advantages

it is

and

not immaterial which one

Unfortunately,
disadvantages.
chosen, as the adoption of the wrong method may result in
This question, however,
disaster to the cost finding system.

is

is

a matter for separate and extended discussion.

Let it suffice
to call attention to the fact that there are at least a dozen

now

reliable

of the

books on

swarm

of

this subject

"

"
experts

A cost system may be a

now on

the market, to say nothing

ready at your

call.

itself, but not necesFor practical men, it must pass the test of
When an automobile company finds that each car
usefulness.
is taking $90 worth of brass, where $80 worth will do, the cost

thing of beauty in

sarily a joy forever.

worth $10 per car to it. If the costs show that a ma$160 is used in each car, where another material
will
do just as well, this system is worth $130 per car
costing $30

system

is

terial costing

for this service.

A cost system constructed with sufficient minuteness and detail

will call attention to just

studies the costs as they

such facts, provided the management

come from the accounting department

Two things are here required:

intelligently.
that the costs shall be detailed and accurate; second, that
the management shall treat them as an integral part of the busi-

and reads them

first,

SCIENTIFIC

488
ness and

MANAGEMENT

make them

serve the purposes of the business as definitely as the labor he hires.

perfect cost system in the hands
of an unobservant or unintelligent manager is useless and
expen-

sive.

your system shows that 30 per cent of your stock is of a kind

which depreciates at the rate of 50 per cent per year and induces
If

to clean out that 30 per cent as quickly as possible, it may be

worth to you the difference between prosperity and bankruptcy.
And here again you must get facts that are real facts and act on
them with judgment and decision.
Many managers have found themselves borrowing from Peter

you

making up the loss on one product out of the

pay Paul
on
another.
profits
Handling a varied line of articles for each of
which the market is different, there is danger of this. A cost
system which differentiates between the articles sold and follows
to

each class through from purchase to the settlement of the customers' accounts, can know which are profitable and which are

and can cut off the unprofitable members. Failure to attend

this is the direct cause of the decHne and fall of many a com-

not,
to

pany.

Some manufacturers and

idea that

it

pays

to sell

dealers

cheap and

still

cling to the old-fashioned

often, that a quick turnover at

a small profit is better than a slow turnover at a large one. It is

a detail worth mentioning in connection with this that the ulti-

mate consumer thereby

gains.

The

cost system in one auto-

mobile factory that enabled the management to cut off an even

$240 from the price of one of its models was a comfort both to the

manager and the consumer, and both had gained.

It takes as much judgment to know when to stop doing a thing

when

system of records which is indispensable at

one time and for one purpose may be no longer needed when that
time has passed and its purpose has been fulfilled. In most places
as

to

do

it.

a cost system, once developed, should be maintained; but there

are plants in which it may be discontinued once it has established
In a pottery factory, for example,
the cost of the product made.
manufacturing the same line year in and year out, getting its
materials at the same price and able to account easily for varia-

MANAGEMENT

SCIENTIFIC
n

489

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SCIENTIFIC

490

MANAGEMENT

tions in labor cost, once the cost of a line

is

determined, the system

safely allowed to go into disuse, retaining only so much of

it as might be necessary to ascertain the cost of a new line, if such

may be

The

conditions under which such a policy

would be safe are rare, and the best rule, when in doubt, is to
keep your cost system. In any action to abolish it, the burden

should be taken on.

of proof is

on the alleged exception.

IV
Listing Stock to Index Wastes; How Classification
OF Materials Cuts the Capital Investment

AND Insures a Constant Supply

On many subjects

of business administration, the recent report

of General William Crozier, Chief of Ordnance, to the Secretary

There is one paragraph in
of War is of commanding interest.
this report bearing directly

on the subject

of this article.

After

pointing out the savings from improved shop management and

premium system according to the Taylor methods of $240,461.93
in the last year at the Watertown Arsenal, there follows a para"
"
graph on surplus stock savings which reads as follows:
"
more
as scientific

Inasmuch

management

systematically

work than
by the department led to a
among other objects, of the amount and kind of
should be kept on hand for manufacturing purposes,

directs greater attention to all details of manufacturing

was previously bestowed,

closer study,
material that

its trial

with the object of reducing such stock to the lowest limit consisThe study given
tent with efficient and economical operation.
this subject resulted in the adoption during the past year of a

uniform system for determining the amount of stock to be carried

and for providing for its replenishment. The over-accumulation
of stock is easily accomplished.

Material

is

prone to be scattered

through a manufacturing establishment in unimpressive lots and

to rest in out of the way places unobserved.
"
A careful determination under a scientific method of the
proper quantity of stock to be kept on hand revealed the fact
that in the case of many items the quantity had been excessive,
and that the stock of those items could be greatly reduced. The

SCIENTIFIC

MANAGEMENT

49 1

process of realizing upon this surplus by using it in current manufacture was at once begun and will be continued until it is all
It will take several years to accomplish this.

absorbed.

During

the past year $122,789.61 worth of this surplus has been used.
This means that the manufacture of the articles for which the

was used was accomplished by the actual diswould otherwise have been
bursement
required, so that that amount of money was available for addisurplus material

of $122,789.61 less than

tional

He

work."

adds that

"

in the Springfield

Armory

there

a remaining surplus of $130,313.53 over and above that mentioned above."

is

Inasmuch as General

Crozier's administration of the

Ordnance

department has been recognized as one of the ablest feats of

management in the Government service, these figures and com-

ments are

the

all

more

significant.

call to the mind of most managers

swarms of experts and miles and miles
of red tape.
The longer some managers think of it, the redder
the tape becomes and the paler the $i22,cxx).
Many managers
reason thus: a system means overhead; overhead means disaster.
This is the old-school way of thinking, which, it must be

Statements

like the

above

lurid visions of invading

confessed,

And

still

predominates.

systematizing which will save $122,000 in an

institution doing $940,000 a year would presumably be worth
some attention and might even justify some expense.

yet a

little

that, in addition to pointing the

way to using up surthe

under
discussion
reduces
the amount of
plus stock,
system
stock that it is necessary to carry and thereby frees more capital.
Suppose

The manager

of

one of the best known and best managed conme not long ago that in a certain

cerns in the United States told

department of his works, before he systematized

tied

his stores,

he had

up in his storeroom the equivalent of the year's output of that

department.

Since then the business of the department has

increased fifty per cent, the storerooms have been systematized,

and they now carry the equivalent of one-third of the year's
business.

SCIENTIFIC

492

MANAGEMENT

In another plant three thousand varieties of lace and embroi-

The mere effort to

deries were being carried on the shelves.
classify these led the management to consider how many they
could get along without, with the result that
hundred are to be carried regularly. Even a

now

less

little

than three

printing plant

with about two hundred items of stores found that eighty-five

Another plant which prides itself on
of these were superfluous.

"
"
system maintains a special storeskepticism in regard to
"
room for excess and obsolete stores." That is the other way

its

to handle the problem.

The important point in connection with this is the fact that

these economies came about as a by-product of systematizing the
stores department.
Every manager knows or has good reason to
carrying more of some kinds of stock than he
In the one case he is tying up capital
needs and
unnecessarily; in the other he finds himself short of some material
He knows that
or part just when he needs it for a special order.

suspect that he

is

less of others.

this undesirable condition is

what he does not

know

is

due to an absence

how

easy

it is

of system;

but

to systematize his stores

and how inevitably the mere act of systematizing provides a

remedy for these troubles. The fact of the matter is that the
mere classification of raw, partiy manufactured, and finished
materials leads at once to a careful consideration of the real

needs of the business and an immediate adjustment to require-

ments.

The

classification is

not the whole of the stores system;

it is

classified, they must

merely the beginning.
be definitely and continuously accounted for; and they must
be kept under strict control and issued on requisition only, as
But a logical
strictly as a bank controls and issues its cash.

Once materials are

and symbohzation is the indispensable prerequisite

system, and this in itself was responsible for a large

classification

to a stores

part of the savings just described.

begin your stores system, you must get your definitions

All the material in your place can be divided into two
right.
classes: that which is still in the same condition in which you
purchased it, and that on which you have done some work. The

To

SCIENTIFIC
first class

we

the fact that

will call stores or

MANAGEMENT
raw

materials.

493
Notwithstanding

when you purchase them they may be highly finished

products, for the purposes of your plant they are raw materials;

Class
Letter

MANAGEMENT

SCIENTIFIC

494

and stock. Inasmuch as finished stock is only worked materials

on which no further work is to be done, the classification of worked
materials develops into the classification for stock as will be

shown later.
With these definitions in mind, the first thing for us to do is to
list all the raw materials or stores in the place.
We are not
in
values now.
interested
What we want is items and quantities
and we want everything there is whether currently used or not.
those things we are tempted to omit which we have been
omitting for several years and which are accumulating and clutIt

is

tering up the place as well as eating up interest on the investment.

I know one concern which, when it started to list its materials

on hand, got together several carloads and disposed

once rather than burden the classification with them.
A permanent supply of some of these materials has

of

them at

to be kept.

Unless you change your product, you expect your storekeeper

to have these always on hand.
Others, such as a desk or a type-

you purchase occasionally but do not carry in stores. It

hardly worth while to do much bookkeeping on the latter class,

writer,
is

while

it is

counted

highly essential that the former class be properly acYou must, therefore, next divide your raw materials

for.

into two groups: one the Unclassified, of which you will keep a
very simple record; the other the Classified, of which you will

keep a record of materials ordered, on hand, reserved

for

manu-

It is the latter group only which

facturing orders, and available.
it is worth while to classify minutely and symbolize.

As an ounce

of illustration

is

worth a pound

of explanation,

us get busy on a real example of classification, taking first

the raw materials in a printing plant.
After listing all the
materials in the place, we will leave out of consideration for
let

the present those which are not kept in stores at all, such as the
Of
adding machine and the duplicating machine in the office.
the classifiable remainder

used for

many

it is

obvious that some of them can be

about the plant, while others

type metal, can be used only for

different purposes

have one use only. Some,

composing-room products;
for job work.
There may

like

others for press-room products or

also

be a collection of forms printed

SCIENTIFIC
outside and therefore

MANAGEMENT

raw materials

for this plant,

495
which

caiv

used only for special purposes.

You remember that in the base sheet which
of our whole

Let us

SA

fit

mnemonic

classification,

be

is the foundation
S was reserved for stores.

in our printing plant materials under S as follows:

496
SV-A

SCIENTIFIC

MANAGEMENT

SCIENTIFIC
Finally

we

get

down

MANAGEMENT

to each particular

brand

497
of ink

we

will

have:

SVKP
SVKP
SVKP
SVKP

SVKP
SVKP
SVKP

B Regular Black
B Book Black
B Catalogue Black
B Form letter Black

6
7

B
B
B

Magazine Black
Process Black
Tablet Black

To

introduce another wrinkle, let us classify the paper stock.

base sheet for this will be as follows:

Our
SV-PA

SV-PN

SV-PB Book
SV-PC Card

SV-PP
SV-PQ
SV-PR
SV-PS
SV-PT Tissue
SV-PU
SV-PV Cover

papers
stock, including tag

board

SV-PD
SV-PE
SV-PF
SV-PG
SV-PH

Blotting paper

SV-PW

Writing

SV-PX
SV-PY

SV-PJ

SV-PK
SV-PL

Lining pap)er

SV-PM

Manila

SV-PZ

Book papers classify as

SV-PBA
SV-PBB
SV-PBC Coated
SV-PBD
SV-PBE
SV-PBF
SV-PBG
SV-PBH Hand made

follows:

SV-PBN EngUsh
SV-PBP
SV-PBQ
SV-PBR
SV-PBT Toned
SV-PB U
SV-PBV

Poster

SV-PBW Wove
SV-PBX
SV-PBY
SV-PBZ

finish

We are now getting warm on

an English

finish

SV-PBS Super calendered

SV-PBJ Japan

SV-PBK
SV-PBL Laid
SV-PBM Machine

Miscellaneous

the

trail.

Miscellaneous
If

we want

to classify

from the Princeton Paper

be SV-PB iN. This paper, however,

finish paper, for instance,

Company, our symbol

will

has dimensions and the dimensions

may be

the only distinguish-

This
ing features between several items of this particular stock.
Here you insert the
is what that hyphen is for after the V.
dimensions and this item

which

will

mean

English

will

finish

be symbolized

SV 44

48 60

PBiN

book paper mad'e by the Princeton

SCIENTIFIC

498

J,
Ic3
t3S
3

ti

S.

111
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I-C(S5

>

MANAGEMENT

SCIENTIFIC

MANAGEMENT

499

Paper Company, size 44X48, weight 60 pounds to the ream, and

the symbol will tell the cost clerk and the storekeeper that this
is an item of classified stores used in the press department for
various purposes.

Some keen-eyed

searcher for the logic of this matter has

undoubtedly observed that the classification of book papers is

All book papers
not (as he would say) properly coordinated.

and therefore the other

are either laid, wove, or coated,

should be classified under

SV-PBC

SV-PBL

coated,

varieties
laid,

or

SV-PBW wove.

Machine finish, for instance, which is a variety

of wove paper, would be SV-PBWM, if this arrangement were
But to do this means making the symbol one
logically accurate.
whereas a practical

letter longer,

just as

is briefer,

proposed

In such instances as

accurate.

classification

such as the one

mnemonic, and just as

this, logic

definite

and

safely be sacrificed

may

to expediency.
it is

Perhaps

of

worth while to

illustrate this

method

work: to wit, a machine shop.

in another

In order not to

department
betray anybody's trade secrets, suppose we take a classification
of stores for the machine shop in a technical training school. The
base sheet reads like

SA

Stores used

this:

for various pur-

SB
SC

Castings for chipping exercises

Special classification for exercises not elsewhere classified

SF

Castings for engines

SP

SD
SE

SM
SN

poses not elsewhere classified

SR
ST
SU
SV

Stores for a variety of pur-

Castings for face plates

poses

SG

SW

SH

SX

SJ

SY

SK
SL

SZ
Castings used for lathes

The only item coming under

subdivided thus:
S-AiD
S 2zl4

X iK AiD

SA

is

Stores for constructing clamping or fastening devices

S-AD,

S>^

AiD

S-AD

Drip pans rectangular

Rectangular drip pans 231^"

X
S 2>^

drip pans.

is

6"

2^" X

6"

iy2".

Rectangular drip pans

MANAGEMENT

SCIENTIFIC

500

s .s

"^

1-73

OS 55

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Kb
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SCIENTIFIC

You

will

observe that

is

MANAGEMENT

50I

used for rectangular drip pans,

This is to prealthough this place has pans of no other shape.

serve the principle of always having a numeral before the last

mnemonic

letter.

You

will also

observe that the dimensions

This is due to the

are here inserted immediately after the S.
fact that the dimensions cannot be placed anywhere else in so
short a symbol without conflicting with the numeral which indicates the individual.

Here as elsewhere the SV

classification is the largest

and most

important.

The SV base
SV-A

sheet follows:

Stores not elsewhere classi-

SV-M Metals

SV-B

SV-C

Brass and products of brass

not otherwise classified
Iron castings and products of
iron not elsewhere classified

SV-D
SV-E
SV-F
SV-G
SV-H
SV-J

their alloys not

SV-N
SV-P
SV-R
SV-S

Steel and products made of

same not elsewhere classified
SV-T Tools and implements not

elsewhere classified

SV-U
SV-V
Belting,
hangers,
pulleys,
and transmission devices not

elsewhere classified

SV-K
SV-L

and

elsewhere classified

fied

SV-W
SV-X
SV-Y
SV-Z

Lubricants and liquids not

elsewhere classified

Note that SV-T, Tools and implements not elsewhere classified,

still in stores, and not to those in the tool
room. The subject of tool classification is, as Kipling would say,

refers to the tools while

another story.

It is

probably unnecessary to

illustrate further

the method of constructing a classification for raw materials.

Keeping Tab on Finished Parts; How Mnemonic

Classification of Products Saves Time and
Prevents Error in Factory and Office
In the last section on stores classification, you remember, I
pointed out the advantages to be gained from the standardization

SCIENTIFIC

502

MANAGEMENT

which always accompanies the mere effort to classify materials.

This benefit comes not only to stores system, but to the cost
system, fiUng system, and other departments of the business
when classification is undertaken in those departments. The

even of parts in process has the same result and has

led to the modification and improvement of design in machines.
For instance, a large concern, manufacturing vehicles of all sorts,
classification

found,

when

ferent sized

it began to classify parts, that it had slightly difhubs on almost every wheel made
some two hun-

dred and thirty varieties.

The most obvious thing to do was,
of course, to reduce this enormous variety, which was brought
down finally to twenty-two. The economies from this change
are easy for

any

practical

man

to calculate.

The classification of stores, as was seen, is an easy and simple

matter, which can be done by almost any one who can tell a B
from a buzzsaw.
If you start with your definitions right,

that is, have had

remembering that stores are raw materials
no work done on them in your plant, while worked materials are
all parts which have had some labor expended on them by you,
including finished parts or stock

The

the

rest is easy.

worked materials, however, is not quite

so simple as that of stores, for it must be based upon a strictly
logical analysis of the product being made and this analysis can
be made only by one thoroughly familiar with the product and
Inasmuch as the
the details of its design and construction.
classification should be made only of those parts which at any
classification of

stage of the process may be treated as units, it is necessary for

the classifier to know what these units are.
Since, further, the
classification must be so made that it automatically reduces

down

become assembled, the

the whole must be clearly

to the finished product as the parts

relation of

one part to another and to

imderstood.

This information should be gathered from the drawings and

materials for the product.
The bill of materials shows
the entire list of raw materials and partly finished parts going
into the machine, together with the dimensions and quantity of
bills of

SCIENTIFIC

MANAGEMENT

503

the shape and dimensions of each

part of the finished product and the method of bringing these

The drawing shows

each.

parts together.

very complex product, such as a machine, consists

first of

several large groups of parts.

Take, for example, a molding
found
in
such
as
is
machine,
up-to-date foundries. This machine

any one of which may be assembled

and
into
worked materials stores if necesput
independently
consists of four groups,

sary.

These are the base group, the hose group, the yoke group and
the miscellaneous group, the latter consisting mainly of those
parts which are necessary for the assembhng of the other three

groups into the completed machine.

made up

is

of divisions

which

may

Again, each of these groups

be made independently: the

base group, for example, consists of a strain bar division, a

cylinder division, a platen division and, again, a miscellaneous
division.
These divisions likewise consist of sections, subsections, elements,

and so on,

until

you get down

to the separate

pieces which go into the machine.

In the original base sheet which ties together all classifications

into the cost classification, the letters

of S

and T, were reserved

for

to

for products.

with the exceptions

Suppose that you take

W,

molding machines.
Molding machines are of several
which the following are a few examples:

varieties of

MA

Automatic

Stripping

Plate

Power Ramming, Power Draft

Machines
Plain Power Ramming Machines

Shockless Jarring Machines

S04

We

SCIENTIFIC

MANAGEMENT

are dealing with a plain power ramming machine,

Classifying the groups composing this machine we get:

MRA

MR.

SCIENTIFIC

MANAGEMENT

505

how

these symbols develop into the symbol for the comstart manufacturing on
10 32 RBiB, the
plete machine.
10 32 RB2B the left hand strain bars.
right hand strain bars;

Notice

We

When

made and assembled into the strain bar division,

Mio
In the meantime the cyhnder divibecome
they
32 RBB.
M
10
and
the
sion,
32 RBC,
platen division, M 10 32 RBP, have
been made in another part of the shop.
These, together with
these are

the miscellaneous division

10 32

RBM,

are brought together

When

to be assembled into the base group of this machine.

this is done,

for strain bar division,

for cylinder division,

and P for platen division, drop out

and
we
have
the
10 32 RB as the symbol
symbol
symbol
for the base group.
While this is going on, the hose group,
10 32 RH, and the yoke group,
10 32 RY, have been made
up and assembled and these, together with the miscellaneous
group, go to the final assembling, from which emerges the com10 32 R, which means a plain power ramming
pleted machine,
machine with a platen 10 X 32 inches.
Obviously, the same set of drawings, route charts, progress
sheets, and so forth, may be used for this machine over and over
for miscellaneous division,

of the

again.
lots

It is important, however, that

It

going through.

we keep

sent through in lots of fifty and each lot

The

last lot

is,

This
perhaps, No. 68.
at the end of the symbol.

number
we want to symbolize

the lot

track of different

happens that this particular machine

is

is

numbered

indicated

is

serially.

by adding

the operations on this machine all

we have to do is to prefix a number to the symbol of the piece,
division or group on which the work is to be done.
Thus the
If

all

operation on the right hand strain bar may be to lay out, the
second operation to drill. We indicate this simply as i
10 32
RBiB 68; 2
10 32 RBiB 68.
Every piece of material used

first

in this

machine and every

,sistently symbolized,

sixty-eighth lot of

bit of labor that goes into

it, if

con-

charged at once by the cost clerk to this

10 32 R.
Progress sheets are easily kept

is

tickets, which contain the symbol for the operaand the piece worked on; and the stage of development of
Each
any job in the plant is easily determined at any time.

from operation
tion

SCIENTIFIC

So6
piece

and each operation

is

MANAGEMENT

positively

and accurately

identified

without the possibility of confusion with any other piece or any

other operation.
Instructions, orders, and accounts require less
writing, and are easily checked because an inconsistency or a
mistake in the symbol sticks out like a sore thumb.
lo 3 RBiB 68, you
If, for example, you saw a symbol 2

would know that something is wrong, because there is no power

ramming machine with a platen 10 X 3. Or if you saw a symbol
I H 10 32 RBiB 68,
you would know that something is wrong
with that, because there is no machine manufactured by this
as the first letter of the symbol.
On the
Company with an
other hand, if the machine or part were merely numbered as is
the usual practice, a part whose real number is 273648 might by
the copyist's error be called 276348, and there is nothing in that
symbol to show any one that a mistake has been made. Such an
error can be discovered only when the part is brought out and
shown to be the wrong one.

Symbols developed

in this

way

for stores

and worked materials

are self-expanding and self-indexing.

It is evident that, once
your base sheets either of stores or of worked materials are properly

made,

it is

merely a matter of logical deduction to fit any

In the case of stores this is

article into its appropriate place.

done by a

clerk.

In the case of worked materials on a complimust be done by one familiar with the product.

cated machine, it
After the symbols are
like the

found

are arranged alphabetically

for any article, or

name

of the article corresponding to any symbol,

as easily as you find your name in the directory.
If you

conversely the
is

made they

words in a dictionary; and the symbol

start with the

symbol you find the corresponding name

of the

part exactly as you find the definition of a word in the dictionary.

If you start with the name of a part and want the symbol you

have an approximate idea

follow

down through

of its place in the machine and then

group, division, section, until you find the*

unit you are looking for.

It is evident that the use of these symbols for stores, worked
In the first place,
materials, and finished stock is manifold.

they identify the items and, as there

is

but one symbol to one

MANAGEMENT

SCIENTIFIC

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507

SCIENTIFIC

5o8

MANAGEMENT

item, they eliminate the possibility of mistake and accidental

substitution of one article for another.
In the second place, they

make it possible for the cost department to trace accurately each

item of labor and material expenditure, since the production
ticket on which the work is done or the requisition on which
materials were issued has the symbol of the product on it.
In
worked
materials
the third place, the
symbols provide a basis for

routing the work through the shop and, if properly made, they
show the superintendent what parts of the product can be started

In
independently and in what order parts can be assembled.
the
amount
of
the fourth place, by reducing
writing required,
they make possible the transmission of all orders in writing and
Of other advantages
the consequent fixing of responsibility.
not the least is the by-product pointed out several times in these
the standardization of materials and of methods which,
in practice, invariably accompanies the mere effort to classify
articles

and symbolize.

VI
Right Filing and Easy Finding; How a Logical Mnemonic
Classification Expedites the Handling of
Records and Correspondence

The young lady

"

This

is

my

happened

to

remark inadvertently:
Suddenly recovering

For conscience's sake, don't

official of the

let

that get out."

the

company who was passing through

"

Don't worry; just put that inand it will never see the light of day again."
This official knew from the depths of bitter experience how easy
is to file things and how extremely difficult to find them after

file

room

just then suggested:

formation in the

it

clerk

twenty-sixth birthday."
"

herself she said:

An unfeeUng

file

files

A filing system often illustrates the proposition

they are filed.
that a thing may be lost though you know where it is, as the
traveler observed when his watch slipped overboard into the
Atlantic.

experience of this particular concern is typical and worth

In the expectation of handling a great deal of correnarrating.

The

with the importance

spondence, they started out fully impressed

SCIENTIFIC

MANAGEMENT

509

of having this correspondence easily accessible.

They engaged a
promising-looking young man, one of those thin-faced blonds

with broad forehead and pointed chin and bright blue eyes behind
a pair of spectacles, who gave the impression of keen intellectual
alertness

and analytic power.

The material

to be handled con-

sisted of all the usual correspondence of current interest and, in

addition, a large amount of correspondence of

which had to be made easily accessible.
It

permanent interest
was also necessary
to provide for the filing of large quantities of data on a wide
variety of subjects. The young man was told to devise a system
to take care of this.

Being fully imbued with the American spirit of independence

and initiative, he decided to make a classification of knowledge,
at least so much of it as was involved in this particular business,
on his own original lines. The classification naturally included a
great deal that the young man knew and a great deal more that
he did not. It ranged all the way from the design of paper clips,
through the sanitary properties of lace curtains, to the compara-

American and the British constitutions, with an

Every item was numbered,
files purchased and equipped with folders numEvery letter and bit of information filed was to

tive merits of the

annex
a

for the mysteries of theology.

set of vertical

bered

serially.

have a number attached to

indicating

its

subject matter and

under that number, and

put
then to be cross-indexed by name.

all

correspondence was

it

in the folder

This was the system that was turned over to the young lady
file

clerk.

After spending several weeks trying to get the hang

put away the enormous mass

of the classification, she started in to

had accumulated while she was studying the

It took her about one day to discover that most items
system.
could just as well be classified under four or five heads, and that
almost every piece of paper she handled had to be classified under
two or more. She also found it easier in most cases to start a
new subject and give it a new number than to hunt through the
classification and find the one already assigned.
And when it
came to cross-indexing, she also used her initiative with reference
to whether she would index by the name of the individual or the
name of the firm, and was quite impartial.
of literature that

SCIENTIFIC

5IO
The

"

MANAGEMENT
"

system
may easily be imagined. The
writer of this article was one of the officials who suffered by it;
and the only way out that I could find (under all the circumstances) was to run a separate filing system of my own in charge
result of this

This meant that every letter I wrote had to

have two carbons: one for myself and the other for the official
of

my

file;

secretary.

and that every

letter that

came in

to

me was kept in my own

office, instead of in the general file.

After this condition had existed for three or four months, an
organization that makes a business of filing systems was invited

to

come

in

and straighten

it

out.

They

installed a different type

of filing cabinet, put a different kind of tab on the folder, arranged

a perfect rainbow of colors in the card-index cross-references (all

which they carried in stock at reasonable prices), and left a

This complicaneatly printed and bound set of instructions.
of

tion

our

was grafted on at once, and our

first.

By

this

own

latter state

time the other executives had

was worse than

all

been forced

systems, and so it continued until the

each executive a king in his own
firm went out of business
to start their

filing

and the central

files a cemetery.
more than a sentimental value. Along
has
A good filing system
comes a hurry-up order for an estimate on a special machine. You

office,

remember making one

of these three years ago.

At

that time

it

You can save that

took three weeks to prepare your estimate.
if
now
can
find
the
former
estimate and
three weeks' delay
you
;

you cannot find it, you either lose the order or make a wild
A filing departguess, on which you will probably lose money.
ment which provides for the speedy recovery of any document put
away in it has an immediate cash value.
You are perhaps a member of a professional society which asks
if

to prepare for their next meeting a paper on the tensile

You have been experimentstrength of various grades of yarn.

you

ing on this for many years and your data are filed away somewhere.
Realizing the compliment implied in their request for

your information, you feel under obligation to make your report

It is worth a great deal to
as complete and exact as possible.
have
a filing system which is
to
your professional reputation

MANAGEMENT

SCIENTIFIC
certain to contain

all

the records

5II

you have made on

this

subject.

be that you are in charge of an office that has very

are perhaps maintaining a
large quantities of incoming mail; you

Or

it

may

force of fifteen

one way

clerks

file

of filing

who

receive twelve dollars a week.

If

your mail takes one-half the time that your

method consumes, the improved method is worth about

week to you.
The President's Commission on Economy and Efficiency

present

ninety dollars a

"

the departments in Washington receive annually 43,000,000 communications and dispatch during a like

points out that

period 22,000,000, making a total of 65,000,000 communications

handled each year." Twenty-five million of these are filed at a
cost of $260,000.

It is interesting to note in this connection

that the cost per thousand for filing varies between $6.53 in
the Post Office Department and $20.33 in the Department of the

300 per cent more than the former.

Commission, the essential requirements of a

Interior, the latter being

According to the
filing

system are the following:

"

Certainty of obtaining a particular paper or of obtaining

the papers relating to a particular subject; and this certainty
to be independent of the time that has elapsed since the filing of
(a)

all

the paper.
"

Rapidity of obtaining a particular paper or of obtaining

papers relating to a particular subject; and this rapidity to be
{h)

all

only slightly affected by the time which has elapsed ^nce

"
{c) Rapidity with which documents may be filed.
"
{d) Cheapness of operating the system.
"

filing.

{e)

Simplicity.

(/)

Reduction to a minimum of the space required for

"

documents.
"

(g) Miscellaneous minor requirements and desirable features,

such as cross-references, numbering, and so on."

To meet
for

which

these requirements, it is necessary that every paf>er

reasonably certain there will be a demand shall be

it is

papers on a given subject shall always be filed in

the same place and so indexed that they can readily be found;

filed;

that

all

MANAGEMENT

SCIENTIFIC

512

that the basis for indexing shall be such that the proper identification mark can quickly be placed on each paper preparatory to

be so arranged and indexed that the proper

paper can be readily found; that the system be
for
an average ten-dollar or twelve-dollar clerk to
simple enough
handle; that such cross-references be maintained as are really
that the

filing;

files

place for each

and no

necessary,

others.

The one

absolutely indispensable prerequisite to an efficient

filing system is a logical and complete classification of the material
This classification is the basis-of the symbol
to be handled.
be

or a combination of these
which

a number, a letter, a sign,

placed upon each paper and
it

and

in finding

it.

is

the guide to be followed in fifing

Unless this classification groups the entire
is

subject matter handled by the concern in a manner so logical

that all intelligent people can easily use it in the same way, and
unless further

it

provides a place for each and every subject on

may require information, the filing system is

which the concern

sure to

The

fail.

first

thing to do then in the filing department

make such a classification and

which
its use may be facilitated.
by
The Commission on Economy and Efficiency recommends for

as elsewhere in the business,

is

to

to adopt a system of symbols

this

"

purpose the

all

decimal classification, designed to cover

This classification was described and criti-

Dewey

knowledge."

cized in section II of this series.

there, it

may

be remarked at

In addition to what was said

this point that

very few concerns

are practically interested in a classification which covers all

There are of course individuals in most concerns
knowledge.

who

carry

all

knowledge in

their

heads but, as a

rule, the respon-

Each office
and
the
that
the
most
has its
Dewey system
can do in such a field is to suggest a mode of classification and
The Commission on Economy and
of numbering the items.
illustrates
this
by an application to a telephone comEfficiency
sible officials are

own

not deeply interested in that

fact.

limited field;

pany, as follows:
ooo
100
200

300

General
Executive
Finance and accounts
Construction

400

Equipment

500
600

Operation
Rates

SCIENTIFIC
Each

by the employment

division

the heading
300
310
320
330

above general

of the

"

MANAGEMENT

classes is susceptible of further sub-

"

Construclion

Pole lines

310: Real Estate

etc.

3 1 0.1

Conduits
Poles, wires, etc.

Cables
Private

310.2

310.2: Construction

is

310.21 Plans and sp>ecifications

310.23

Interior

Maintenance of

real estate

new buildings
310.23 Interior appointments

310.22 Contracts for

Appointments has these subdivisions:

Interior appointments

310.232 Heating plant

310233 Lighting

310.231 Furnishing

310.233: Lighting

is

subdivided into:
310.233.2 Gas fixtures
310.233.3 Oil

Lighting
310.233. 1 Electric wiring

310.233

The method

of the

Dewey system

is

in the

main

correct:

wit, to enumerate, first, all the kinds of information to

fied; second, to

build-

subdivided as follows:

Constrtiction of new buildings

310.23

new

Construction of
ings

310.3

310.2

lines, wire, etc.

subdivided thus:

is

Real Estate
Purchase of property

310

is

340
350
360
370

Real Estate

phantoms,

For example,
subdivided as follows:

of additional digits.

300: Construction

Circuits, loops,

513

be

group these items into a limited number of

to

classi-

classes;

and unchanging
under each group and

third, to give each of these classes a definite

symbol

fourth, to

expand the

classification

symbolize each subdivision by an addition to the symbol for the

group; fifth, to file all correspondence, data, and so on, numerically or alphabetically in accordance with the symbol.

The two advantages

that the

mnemonic system

of classifica-

and symbolization has over the Dewey system are: first, that
the twenty-three letters of the alphabet used in the mnemonic
system give the opportunity for a more rational classification
tion

than the ten possible groups of the decimal system; second, that
a symbol consisting of letters may be made more easily mnemonic,
/. e.,

each letter being as a rule the initial of the term symbolized,

term to mind more easily than a number arbitrarily

recalls that

chosen for that purpose. There

"
"
"
310.233.3

to suggest

nothing about the expression

"
"
Oil," as a subdivision of
Lighting
is

SCIENTIFIC

514

MANAGEMENT

under " Interior Appointments " included in the " Construction

"
"
"
of new buildings
under the heading of Real estate as a sub"

Construction," unless you have beaten the meaning

of these numerals into your head by main force.
In the preface
division of

to the seventh edition of Decimal Classification, Mr. Dewey

"
says that 016.581.974.742 readily translates itself to users of the
*
"
system into Bibliography of the Flora of Albany Co., N.Y.'

Without going behind the

symbolize

it

classification for the

correspondence

company given by the Commission, suppose we

on a mnemonic basis. Our base sheet will be this:

of the telephone

SCIENTIFIC

CRM

Maintenance of

real estate

MANAGEMENT

515

SCIENTIFIC

5l6
If

MANAGEMENT

two or three kinds

of oil are used, they will be designated as

CRCNL2L, etc., as already explained. I think it

CRCNLiL,
may fairly be

claimed that this symbol is at least more intelHgible

it has the further
advantage of automati-

than "310.233.3," and

If, for instance, some one ordered oil and

the
gave
symbol CRPNL2L, the purchase agent would know at
once that there was something the matter with it because " P "

cally checking itself.

in that particular location refers to the purchase of real estate

and could not possibly mean " Construction of new buildings."
"
"
i
But, if the order came for 310.133.3, the
might stand for
"
"
"
construction
as well as for
purchasing," and nobody off-

hand would know the

difference without consulting the

key to

the classification.

The

by the Commission is used here simply

and not as an example of a good classification.
If it were to be used for correspondence alone, it might do; but
if, as was pointed out in section I, one classification can be
made to do service for purchasing, costs, operation, filing, selling,
and any other functions deemed advisable to perform, such a
classification is in the end simpler and more economical.
Suppose, for example, we are running a store and we want to
file copies of dodgers we have sent out advertising special sales.
If we have to symbolize these dodgers for filing purposes, we may
as well, if possible, use the same symbol for the dodgers as an
expense item and for instructions and orders as to their preparation.
If we are following the method described in these articles,
we will first analyze the functions of a store and, in most cases,
From the cost
advertising will be one of our main headings.
as

an

classification given

illustration

accounting point of view, advertising

It is

merely an aid

is

obviously not a direct

to the sale of merchandise.

It is
expense.
therefore an auxihary expense and will fall under the broad group
in the cost classification.
will also use A specifically for

advertising,

We

and then we can get up a cost sheet

like this:

SCIENTIFIC

MANAGEMENT

S^7

SCIENTIFIC

5l8

MANAGEMENT

the data bearing on that section until the campaign is over.

Whenever such a reclassification is made, a note must invariably

be

left in

the

files

from which papers are taken indicating the new

which these have been removed and in which, of

are
to be found.
course, they
If it is found desirable to carry the classification to great

classification to

minuteness, it will often be necessary to classify letters and other

The usual way is to file the docupapers under several heads.
ment under its most important heading and put a note under the
other headings referring to the place where
times better to brief other headings and

it is filed.
file

It

is

some-

them where they

Where the files are constantly used, the latter method

belong.
in the long run saves time.
Letters sent from your office should
deal with but one subject at a time. If they cover several subjects,
separate letters should be written for each and filed accordingly.

This

is

also in

many

cases a time

and money saver and a strong

preventive of error.

Most concerns using this system find cross-indexes in the card

form unnecessary.
One is not usually interested in finding a
from a particular person except on account of the subject
letter; and if the subject matter is known, it can
be found without reference to the name of the writer. If, however, it is desirable to keep track of the name, this can easily be
letter

matter of the

done with a simple card index, care being taken to index each
paper under the name both of the writer and of the firm, as one
or the other

is

easily (and usually) forgotten after the lapse of a

few months.

Every paper should have stamped on it a blank in which the

mail clerk or other responsible individual may write the symbol
under which

it is

to be

bol should be attached

going mail,

when

In case of incoming mail, the symIn case of outis opened.

the mail

should be attached by the dictator.

As a

rule, the

the proper classification

be afiixed by the file clerk.

cannot be determined by the file

whom

the papers originated should be

symbols

When

it

filed.

for all other papers should

clerk, the people with

consulted.

SCIENTIFIC
This system of

MANAGEMENT

519

course not limited to corresp)ondence

It can and should be used for filing all cost

filing is of

and technical data.

data, purchase orders, contracts, proposals, reports, price

estimates, catalogues, books

and

periodicals, blue-prints,

lists,

trac-

in short, anything and everything of

photographs, maps
which permanent record is to be kept, and which should be easily
ings,

and quickly

The

accessible

when

called for.

original classification should

later or
left

be made so as to cover every-

If something comes in
was inadvertently omitted, there are always a few letters

thing intended to be kept in the

files.

under which to include the new items.

the classification and index

limited in its scope;

is

elastic,

and when

it is

When properly done,

self-expanding, and unapplied to every record

handled in connection with the business, its significance soon

becomes known to every one concerned, and the ability to use it
quickly and accurately grows rapidly into an individual and an
organization habit.

ELEMENTARY TIME STUDY AS A PART OF THE

TAYLOR SYSTEM OF SCIENTIFIC MANAGEMENT
AN EXPOSITION OF THE PRINCIPLES AND METHODS
OF THE ART WHICH IS THE FOUNDATION
OF SCIENTIFIC MANAGEMENT
By H. K.

HATHAWAY

Reprinted by permission of Industrial Engineering

Elementary time study

the most interesta

and
most important
ing phase
management,
plays
in
of
the
the
which
the science
part
application
principles upon
of management is based, as well as in the development of the
science itself.
Indeed, it would be almost as difficult for the
science of chemistry to exist if there were no such thing as quantiis

in

many respects

of scientific

tative analysis, as for scientific

management

to exist without

elementary time study.

In 1893 Frederick W. Taylor, in a paper describing his differen-

work system, developed at the Midvale Steel Works,

method originated by him for arriving at
the time required to perform any given piece of work, namely,
the study of unit times, or what is now generally known as
tial

piece

called attention to the

elementary time study.

He

stated, however, in his paper

on

Shop Management, several years later, that he was disappointed

in the interest aroused being chiefly in the piece work system
rather than in the substitution of a fair and accurate
setting rates in place of the guess-work

method for
methods generally in

vogue. This, however, was but natural, as at that time ordinary

"
"
was well known as a means of increasor straight
piece work
ing output; and Mr. Taylor's differential rate, offering as it did
not only the incentive of a reward for greater production, but the

added feature
to

managers

of a

more severe penalty in

generally as a good thing;

case of failure, appealed

while elementary time

study being something entirely new and beyond their ken, as well
as calling for considerable work, was shied away from; especially
as every foreman and many superintendents and managers felt
520

SCIENTIFIC
that, either

by reason

MANAGEMENT

521

of their experience, or through

some super-

intuition, they were able to tell at a glance

take.
should
long any job
look
can
writer
the
back, a few years to the time when
Indeed,
recollect
he became a foreman and
that, by virtue of several

naturally

endowed

how

in his own ability

years' experience, he had considerable confidence
to shut one eye, go into a trance, and fix the proper time for a
job.

on repetition
Another popular method for setting piece rates
has been to put a good man on the job; keep a
work especially
record for several days of his production; divide the time by two

or three; and arbitrarily

make

the result the rate.

Many

other

methods, equally bad, have from time to time been adopted in

piece work shops, all of them being based on ignorance and

and lacking a spirit of fairness and mutual confidence

between the employer and employee.
Where piece rates are set by any of the old methods, the
management feels little or no responsibility for the provision
and maintenance of proper facilities and good working conditions;
such as make it possible for the worker to perform, without undue
deceit,

exertion or worry, a relatively large day's work; and as a result,

instead of true cooperation we see the management on one hand

putting a task up to the worker that is either ridiculously easy,

or on the other hand impossible or extremely difficult; without,
in many of the latter cases, knowing how he is to accomplish it,

no effort to help him solve the problem.

Ultimately, even where the task is unreasonably hard, the workman, by the exercise of ingenuity and perseverance, may bring
about conditions that enable him to first accomplish the task, and

and making

little

or

gradually to exceed

it,

until, unless

he adopts the expedient of

systematically loafing as a means of self-protection, his earnings

He is then
become, in the eyes of his employers, excessive.

rewarded by having the piece rate arbitrarily cut to a point where

he has difficulty again in earning a fair day's pay.
Improper piece rate setting, or, to put it in another way,
ignorance of their own business on the part of the management,
and a disregard of their responsibility for the maintenance of

SCIENTIFIC

522

MANAGEMENT

proper working conditions, has been, and

is,

one of the

and antagonism between employer and

chief causes of distrust

In

still

it may be well to point out that

employee.
"
while the employer has been quick to see the iniquity of soldier"
on the part of the workman, he is inclined to overlook the
ing

this

connection

fact that at least half the responsibility for its existence lies at

own

his

door.

While

this article is

Scientific

do not

intended to treat of but one element of

Management,

lose sight of its

utmost importance that we

relation to the subject as a whole; and
it is

of the

while not minimizing its individual importance, the writer

wishes to emphasize the fact that it is, after all, but one part of
Take it away, and the machine runs
the management machine.
imperfectly;

and alone

it is

practically useless.

be wise, even at the risk of covering ground gone over

show just where the part of Scientific Management
to
before,
It will

Mr. Taylor

the four basic principles in his

book The Principles of Scientific Management, in such a concise
manner that it is not until he has studied the subject exhaustively
fits

in.

states

and become quite familiar with

it

through intimate contact that

the average person grasps their full meaning and importance.

These basic principles are as follows
"
"
rule-of-thumb
1. The development of a science in place of
:

knowledge.

In this
2.

"

scientific investigation

codification of data

and

and study; the

their reduction to laws.

"

plays an obviously important part.

scientific selection and training of the workman in

time study

The

place of

This means

and

collection

workmen being employed

as a result of expediency,

necessity, or mistaken personal preference on work for which

they may be physically, temperamentally, or mentally unsuited;
"
in the past he (the workman)
or, as Mr. Taylor expresses it,
Imchose his own work, and trained himself as best he could."
"
in
has
resulted
of
workman
the
selection
many
square
proper

pegs in round holes."

Hearty cooperation between the management and the men,

so as to insure all work being done in accordance with the principles of the science which has been developed.
3.

MANAGEMENT

SCIENTIFIC
4.

An

523

almost equal division of the work and responsibility

between the management and the workmen, the

for results

management taking over

fitted than the workmen

the

all of

work

for

which they are better

and

in the past almost all of the work,

the greater part of the responsibility were thrown upon the men.
If these principles are kept in mind, it will be seen that time

study is only a means to their proper application, and that it

must not be considered apart from its relation to Scientific

Management

as a whole.

Misunderstanding of the purpose of time study

is

common

management and workmen, the management on one hand

thinking that their task and responsibility end when they have
found how long it takes to do things, and have put it up to the
workman. On the other hand, the workman is apt to regard
time study as spying upon him, and a reflection upon his integrity.
Indeed, time study has been characterized by some men in the
ranks of labor as un-American but such an opinion can only be
regarded as being based on ignorance of the subject, or on bias.
alike to

If to seek the truth

Tlie

were un-American, then time study might

workman's suspicion and opposition

may

be

justified

where time study is grafted onto the old type of management, as

has frequently been attempted by the manager, who, having
heard enthusiastic accounts of what has been accomplished under
Scientific

"
Management, with a

little

"

knowledge

(proverbially

a dangerous thing), concludes that while he cannot see the

advantage of all the features of the
a good thing, and that he will adopt
result of

"

setting rates

increased output

is

"

for piece

"

System," time study

it.

work

is

apparently as a
or bonus work that

It

is

achieved; so he calls into his office a bright

but inexperienced young man, and tells him to start making

time study and setting rates. Just as likely as not the "bright
"
young man intuitively realizes that may be the workman will

and may gently, but firmly impress his objection upon

him with a monkey wrench or hammer, so he tactfully concludes
that it will be best not to annoy the men by letting them know
what he is doing. Therefore he hides back of a post while maknot

like

it,

SCIENTIFIC

524

MANAGEMENT

"

time study," or else, keeping his watch and his hands in

his pockets, affably endeavors to persuade the workman that he
ing his
is

of

not at

all

many
It

is

interested in anything that

is

going on within a radius

miles.

this

kind of

"

time study

"

that arouses the workman's

and which has brought forth from those who have encounit and know not the right kind, the contention that it is
un-American in spirit. In this view the man is amply justified,
ire,

tered

"

such

"

worthless, but positively

an insult to the workman's intelligence. Just the

for not only is

vicious and
minute the time study

time study

man

imdertakes to deceive, he gives the

workman license to deceive him. The workman may then loaf

and make as many false moves as he pleases, but the time study
man,

if

such he

has put himself in a position where

Instead of two men cooperating in a quest

may be

called,

he carmot object.
of truth, such misguided attempts at time study become a covert
battle of one man's wits against another's, resulting in mutual
distrust

where confidence should

There are two

exist.

classes of time study:

is made for the purpose of ascertaining what is

with
a
wrong
process as it exists.
2
That which is made after conditions have been standardized,
1.

That which

and the best method estabUshed.

The first is more correctly motion study,

as its prime object

is

to discover delays, false or unnecessary motions,

and

their causes,

and

first

undertaken.

this is the sort of

time study that should be

It should result in the

Ushment

of standards.

improvement

of conditions,

It is the first step in the

and the estab-

development of

a science.

In
simple illustration or two may help to make this clear.
one of the plants in which the writer took a part in the installation of the Taylor System, we selected a simple operation on
which to make our first time study. Briefly, this operation consisted of putting a roll of cloth into a machine, which,

when prop-

erly set, automatically cut it up into pieces of the required size.

In making a study of this operation, the following things came

to light:

SCIENTIFIC

MANAGEMENT

$25

1. The operator had to walk a distance of about twelve feet to

To remedy this, a suitable
secure the roll of cloth required.

rack was provided, close to the machine, on which a laborer kept

supplied the cloth for three jobs ahead.
It

2.

was necessary

for the operator to set, for

each new job

(so as to cut the cloth to the required width), eight to sixteen

circular knives, loosening a screw in each, sliding

it along a shaft,
the
distance
knives
and
the
.between
measuring
tightening the
The operator was expected to provide his own screwscrews.

and

and, as a matter of fact, any other tools he might

the time study of this part of the operation it was
found that the screwdriver used by the operator was too long
driver

rule,

From

need.

for the job, resulting in fumbling; that it was of an inferior

quality of steel, so soft that after being used for several jobs the
end became twisted, and the operator had to leave his work to

Some of the knives fitted their shaft so

grind or file it to shape.
tightly that it was quite a difficult matter to move them along
the shaft; and measuring the distance from one knife to another
with an ordinary foot-rule was slow, awkward and uncertain.
To remedy these difficulties, the management took it uf>on them-

and of good
have the knives made to properly fit the shaft; and to
provide a gage which could be readily and accurately set to the
width of cloth to be cut, and so constructed that it was only
necessary for the operator to place one end against the first knife
selves to provide screwdrivers of the right length,
steel;

set,

to

and move the next up

until it touched the other

end of the

gage.
3.

It

was found

in setting the shear for cutting the strips of

cloth to length, that

the operator used a

it

was necessary

to loosen a nut.

To do

this

monkey wrench, which

incidentally he provided himself, and which he had to adjust to the size of the nut.
This wasted time, so the management did the obvious thing and

replaced the ordinary hexagon nut with a wing nut which could
be loosened and tightened with the hand without the need of a

wrench.

was found that the

rolls of cloth supplied by the mill

of
one
instead
continuous
contained,
length, several pieces to a
4.

It

MANAGEMENT

SCIENTIFIC

526

making it necessary to re-thread the cloth into the machine

every time an end was reached. To remedy this, the mill was
told that only one-piece rolls would be accepted, with the result
roll,

that they furnished one-piece

This illustration embodies

rolls.

all of

the principles of Scientific

As a

result, the operator turned out twice as

Management.
work
under
the
much
improved conditions as formerly, and with
less

worry, and Uttle,

if

any, greater

effort.

may be well, however, to point out that it would have been

futile to have made this time study until a routing system had
been developed that would insure the workman being kept
It

constantly supplied with materials, so that he would not have to

This operator worked upon from ten

waste time between jobs.

to

twenty different jobs a day.

Let us take another case in a totally different

apparatus

line of business

that of winding magnet coils for small electrical

resulting in almost as great an increase in output as the case just
A study of this operation showed that one-third of the
cited.
operator's time

was wasted, and through no

fault of the operator.

Twenty-one per cent of the operator's time was found to be

wasted on account of defective material, and as this was scattered
through the day's work, no one realized, until it was shown up
by time study, how great the loss in output from this cause was.
It was
In fact, it was regarded as one of the minor troubles.
found that operators had to leave their machines to procure
materials that should have been brought to them; that many of
the spools of wire would not fit the machines; that the operators
were handicapped through having no convenient place for their

Their
materials, for their finished products, or for their tools.
tools and machines were found to be in bad condition, and some
of the tools provided were found to be unsuitable for the work.
In both of the cases just cited, the conditions found had existed

without making a minute time study, it is

doubtful if the management would have ever realized the necesWith definite and reliable information
sity for correcting them.
for a long time, and,

to

work upon, however,

nate the

difl&culties.

it

was

possible to almost entirely elimi-

SCIENTIFIC
These two

illustrations are

MANAGEMENT

527

but one step beyond Mr. Taylor's

and shoveling.

illustrations of handling pig-iron

After making time studies of the class just described, the next
step is to correct the faults in materials, methods and implements
that have been brought to light, and establish standards and
Then assuming
provide means for keeping up the standards.
that a routing system has been developed to the stage that will
insure the workman's work being planned ahead, materials,

information and proper tools always being at hand when wanted,

time study may be undertaken for the purpose of setting tasks,

and the payment

of a

reward

for the task's

accomplishment

be started.

may
Many

people have misunderstood time study to mean ascerand recording the time required to perform any given job.
This is not at all what we mean by elementary time study. In
describing just what is meant by elementary time study, the
writer will draw upon the machine shop for his illustrations, and
leave it to the reader to draw his own analogies with regard to
the lines of industry in which he may be interested.
All machine work may be divided into the following classes:
taining

(a)
{h)

Work done by
Work done by

a machine.
the

workman.

The time
time,

may

that machine work should take, or the actual cutting

be easily calculated, and, where tools, materials and

machines are standardized, may be reduced to slide rules. The

work done by the workman, or the handling time, must be
arrived at in another and

more

difficult

manner.

Handling time in machine shop work, and in most other

manufacturing processes, may be classified under three heads:

The handling of
The handUng of
3. The handling of
The first, handling
1.

2.

may

tools used in connection with the work.

the machine.
the material being worked on.
of tools, is the greatest of the three,

and

be roughly said, in general machine shop work, to represent

75 per cent of

The

all

handling time.

second, handling of the machine, will represent about 15

These
per cent, and handling of materials about 10 per cent.

SCIENTIFIC

528

MANAGEMENT

percentages, of course, will vary in different classes of work, and

are given only for the purpose of illustration.
of tools consists of such things as putting bolts,

Handling
clamps,

on work;

etc.,

putting tools such as

turning tools, etc., into the machine;

gages, scales, or dividers.

drills,

measuring with

reamers,
calipers,

machines consists of such things as stopping and

starting machines; changing the speed or feed; adjusting or
setting various parts of the machine to suit the work to be done.

Handling

of

All of these elementary operations are done repeatedly on a

great variety of jobs, and in many cases are the same for work
done on totally different machines. These are what we make a

time study of, and not any one job as a whole, which is simply a
For instance,
combination of a number of different elements.

we must

and stop the machine several times in doing any

job; consequently, we should study the starting and stopping of
each machine on each of its various speeds, and record the time
imder that heading for each machine.
For any drill press job we must put drills of one or more sizes
into the spindle, and remove them after the holes are drilled;
consequently, we should study the time required to put in and
take out drills of each size.
This will apply on a great variety
of jobs done in various drill presses, and in any shop, that is,
provided proper standards have been established.
start

The

greatest difficulty encountered in connection with this

branch
Management in the past was the classification
of Scientific

and tabulation

make

of the data

accumulated in such a manner as to

readily available for use on future jobs, differing as a

or
in part, from those upon which the observations had
whole,
it

been made.

In plants having a standard line of product, doing

the same kind of work year after year, this was a comparatively

simple matter, as there the data could be classified and filed

according to the product; and in such a plant changes are
infrequent and usually affect only certain details, necessitating
only a study of the parts of the work affected.
Likewise, in industries where each machine performs only one
simple operation which is essentially the same on all work

SCIENTIFIC
although the job

itself

may

MANAGEMENT

be different in

many

529
respects, this

comparatively simple, and the elementary data may

problem
be classified and filed under the headings of the different machines.
A good example of this type of work is stamping or punching
sheet metal parts, which might be analyzed into the following
elements, which, for a given size and type of machine, would be
common to all work done in the machine:
is

Putting in dies;
Adjusting stops, guides, and stroke of machine;

Feeding materials into machine;

Working time of machine.

Of course, each
It

is

of these

might be further sub-divided.

machine shop work, however, that the problem

and tabulating data becomes especially difficult,

in general

of classifying

and the greater the variety of the product the greater the diffiThis is due to the comparatively large number of difculty.
ferent elements that may be involved, and the almost infinite
number of combinations of these elements. For example, on a
drill press,

one job

may

be the

drilling of

a single hole in a block

of iron, consisting of a very simple

adjustment of the machine,

clamping the work with a single bolt and clamp, putting one
drill into the spindle, starting the machine, letting the drill run
through the piece, stopping the machine, removing the piece
and the drill. The next job may include the drilling, tapping,

and reaming of a number of holes of several different sizes (counter-boring some of them) on different surfaces of a complicated
piece of work, necessitating several elaborate settings, and many
This job would include all of the elecareful measurements.
ments entering into the first, and many more in addition. There
is one saving grace, however, due to the fact that in spite of its
complication there are a number of elements that repeat themselves a number of times in almost every job.
To give a more definite idea of the nature of elementary time
units and their use, the author will show a few examples of
instruction cards, outlining in detail the method to be followed
in performing certain jobs and giving the time for each element.

SCIENTIFIC

530

MANAGEMENT

These cards are not the result of a time study of the specific
jobs, but were made up from the drawings of the parts on which
the work was to be done before any of the parts were made.
The elementary time units were previously studied in connection
with previous jobs, or individually, some of them in shops other
than the one in which the work in question was done.

This represents planning of an advanced type, and cannot be

done, as has been already pointed out, until conditions have been
standardized, so that the machine in which the work is to be
done may be depended upon to be in first class condition (as it

was at the time the study of the elementary time units was made),
that all tools are in first class condition and are supplied to the
operator in advance, ready for use; that materials are always at
hand, and placed conveniently for the operator, etc.

one instance of the assumption of responsibility by the

management, and of the management's cooperation with the
This

is

workman.
Under the old type

of management, the workman was responhis

at
machine, or securing as required, such tools
having
as he needed for each job, and was expected to have them kept
sible for

good condition. The difficulties in the way of the workman's

meeting these responsibilities were tremendous, and little or no
help did he receive from the management as represented by the
foreman, who was so harassed with details, and generally overin

loaded with work, that it was a physical impossibility for him to

do much for the workman, even though he recognized the im-

portance and necessity for doing so.

Under such conditions, it was difficult and annoying for the
workman to keep his machine and tools in good condition, as he
could only call attention to the need of repairs or new tools, and
was dependent upon others taking enough interest and taking
the trouble to have them attended to; and as many of the things

he endeavored to have done were inevitably neglected or lost

sight of, he frequently became hopelessly discouraged and lost
Such effort as might
interest in attempting to have things right.

be made by the workman to maintain conditions was, in any

event, at the expense of output from that unit of the plant

SCIENTIFIC
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SCIENTIFIC

532
represented

the

by

MANAGEMENT

workman and

the machine he

was employed

to operate.

With the proper cooperation and assumption of responsibility

the management, however, the workman is relieved of all
this, and can devote his undivided attention to the work for which

by
he

is

employed.

Under

Scientific Management the machines are periodically

inspected, repaired, and adjusted before they have had time to
get into a condition that prevents their efficient operation.

Instead of the foreman looking after this important matter

as an incidental that may be disregarded if other things appear
to be of greater immediate importance
function of a repair boss.

it

is

made

the sole

All tools are kept in a tool room, from which they are issued
for each job, and returned after being used.
The tool room

foreman

is

responsible for seeing that no tools are issued that are

not up to the standard, and in place of the responsibility for

the maintenance of standards being widely scattered among the
entire

working

force,

who

lack the means, and in

incentive, for its enforcement,

we have

some cases the

this responsibility con-

centrated in one man, who represents the management.

The author trusts that he has made clear the necessity for

standardized conditions and functional foremanship being

estabhshed before any attempt is made to inaugurate any system
To make this
of task work based on elementary time study.
still

more emphatic,

let

us see what would happen

if

this

were

ignored.

Suppose we were, in a shop run the old way, to make a study

and after our preliminary investigation had
the machine, tools, etc., put into first class condition, and then

of drill press work,

made

a careful study of the time the various elementary operaA certain amount
tions should consume under proper conditions.

of time passes before

we make

use of the data collected, and

we

then set tasks, based on the result of our observations, for

various jobs to be done on the drill press in question, and one of
these tasks

is

assigned to the workman.

SCIENTIFIC

The

first

thing he

is

MANAGEMENT

required to do

may

533
be to adjust the

We

have allowed the proper

height of the arm of his machine.
of
the
wrench
time for picking up a
right size from a tool stand,

and loosening the bolts that secure the arm; but

TOOL LIST

since

we made

SCIENTIFIC

534

MANAGEMENT
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SCIENTIFIC
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MANAGEMENT

535

SCIENTIFIC

536

much

consiimes as

sumed

MANAGEMENT

time adjusting

it

as should have been con-

in the entire job of loosening the bolts

had a wrench

of

the right kind been available; this alone might be enough to

prevent his accomplishing the task in the time allowed.

Next, he places the piece to be drilled on the table of his maand selects a clamp and bolt of the proper length from the

chine,

box or rack

in

which he keeps them.

The

bolt selected has

no

nut on

it, so he takes one off another bolt and, after placing his
bolt and clamp in position, starts to screw the nut on.
He finds

that

it sticks,

and instead

due to the thread on the bolt having been damaged,

it on rapidly with his fingers,

of being able to screw

obhged to take a wrench and laboriously work it down the

It is also probable that the trusty monkey wrench
entire way.
has to again be called into action, by reason of the absence of
he

is

one of the right kind and size. When our time study was made,
that under proper conditions 0.71 minute was to be the

we found

proper time for putting on this bolt and clamp, but owing to
those conditions not being maintained, the best the workman
could do took anywhere from two to ten times as long.
It is no
exaggeration to say that we have seen a workman spend fifteen
minutes in trying to screw a nut onto a clamping bolt.

Our observations

of this

one item showed as follows

Minute

To lift the bolt,

block and clamp to the table of the ma-

chine took

To put the
To remove

0.07

bolt in slot of table

the nut from bolt

fingers took

To put clamp over bolt and on work

To put block under clamp
To put washer on bolt
To screw nut on bolt with fingers
To tighten nut lightly with wrench
To draw nut down tight with wrench
Total time required

To

0.04

by unscrewing with the

o. 13

0.05
0.05
0.07
0.13

0.07
o.io

0.71

follow through each step of the operation in this manner

would take too long, and the two points cited are typical of what
The
might be expected at almost every stage of the work.

SCIENTIFIC
picture

is

in

MANAGEMENT

no sense overdrawn;

if

537

anything, the reverse

is

true.

Instruction cards such as those used for illustrations are the

Before they are made

second step in the planning of the work.
laid
out
or
has
been
a
whole
as
work
the
routed; the various
up,
operations to be performed on each piece of work have been
determined, as well as their sequence, and also the machines in

which they are to be performed.

The method
is

followed in

making up

instruction cards for

as follows (assuming, of course, that

new

all

elementary
work, then,
time study data are available, and properly classified and tabulated)

The man

in charge of this part of the planning

an experienced and practical man, selected by reahas before him the

qualifications for the work

of course, be

son of his

who must,

drawing of the part to be machined. His first step is to decide

upon the general method to be followed in the operation being

two or more methods may suggest

In
themselves, bringing up a question as to which is the best.
this event, he will add up the time for each of the elements
entering into the different methods, and select the one that gives
planned.

In doing

this,

the smallest total time.

He

next sets

down on

the instruction card a description of the

job, element

by element, in their proper sequence, going through

As he does
the operation just as he would at the machine itself.
which
of
the
tools
will
be sent to
off
a
list
he
draws
so,
required,

room before the job is to be done, and the tools delivered

After having put down on the instruction
to the workman.
card all of the elements to be done, he turns to his data file, and
indexed under the machine number he finds the time for each
Under
of the adjustments or manipulations of the machine.
the tool

the tool symbol he finds the time for each of the elements invol-

ving the use of a tool, while under the classification of material

shapes, he finds the time for handling pieces of the same approximate shape and weight as the one imder consideration.

SCIENTIFIC

538

MANAGEMENT
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SCIENTIFIC

542

MANAGEMENT

Making Time Studies

The

writer has, as yet, said very little with reference to the

making of time studies. In general, it may be said that
man
the
undertaking this work should be as familiar as possible

actual

with the work being studied, and

if he has
actually worked on
the jobs being studied, so much the better.
All other things
a
who
man
has
worked
and
is
skilled
in the trade
at,
being equal,
under consideration, makes the best time study man.

workman, the best time study man is a

whose
chemist,
training has impressed upon him the importance
of exactness, and of little and apparently insignificant points.
Next

to the skilled

The chemist has

The
elements.

also learned

how

to analyze things into their

best possible time study

man

would, in the

writer's estimation, be a chemist possessing practical experience

in the work being studied.

The equipment

required

is

very simple, consisting of a decimal

stop watch that can be stopped at any point, started from the
same point, or snapped back to zero at will. We have found it

necessary to have these watches made especially, and Mr. Sanford E. Thompson, whom we of the Taylor Group regard as
the foremost time study man in the country, has, for a number of
years, taken

upon

himself, as a matter of

accommodation

to the

keep a supply of these watches on hand, from which

he has supplied our needs, and those of our clients; and I take
rest of us, to

this

opportunity to pubhcly acknowledge the debt

we owe him

for doing so.

In addition to a watch, the only other equipment required

a board

for holding the

watch and the sheet

the observations are recorded.

of

is

paper on which

Several different forms of time

study observation sheets have been developed, but essentially

they are all the same, providing first a column in which are entered
the various elements to be observed in the order of their occurrence, and then a series of columns in which are entered the time
consumed by each in each series of observations.
If an operation is one that is repeated over and over again, the
way to study it is to first list the elements entering into it, and

SCIENTIFIC

MANAGEMENT

543

then take the time on each with the watch running, stopping

it

movements, or anything going wrong, and starting

When the obserit again when the actual work is resumed.
vations have been completed, the time for each element is computed by subtraction, and the time for each element ascertained.
Wherever possible, a number of observations should be made on
each sequence of operations, and in determining the elementary
time unit, we eliminate the times that are too high and too low
and follow the general
usually as a result of error in observation
rule of selecting the time unit that occurs most frequently for
in case of false

each element.

An

man

can observe a sequence of elements

totally new, and put down a description of the element and its
time as the operation progresses; but this is no task for the
expert time study

beginner.

SCIENTIFIC
By

MANAGEMENT
C.

IN RETAILING

BERTRAND THOMPSON

Reprinted by permission of System

Introduction

RuNNmo
quite

new

retail store

by

scientific

management

They have heard

to store managers.

is

an idea

of scientific

management and the possibility of its application to

and they know that factories and a few government

railroads,

establish-

The
ments are being operated under scientific management.
consists
in
of
this
is
that
it
idea
popular
particular development
the application of stop watches and motion study to the work of
operatives and the administration of a factory with an excessive
amount of red tape.
One would not have

to reflect long, however, to arrive at the

conclusion that, if this is all scientific management consisted of,

it would have died a natural death long ago, instead of being, as
Scientiit is, the Hvest issue in modern industrial developments.
fic

management

includes time study

and motion study and an

elaborateness of forms and records which to the uninitiated bears

But these things do not

naturally the appearance of red tape.
constitute the system; they are merely parts of the mechanism.
The system itself consists of a series of principles whose applica-

made by Fred W. Taylor and his group of engineers, is

The mechanism is in many cases not
but one particular form.
tion, as

adaptable to retailing, but the principles are.

Any one familiar with the fine arts is thoroughly used to the
Take
idea of transferring the principles of one art to another.
the principle of contrast, for example, originating probably in
dramatic literature, where the interplay of opposing characters

This same principle of constimulated a pleasurable interest.

trast was soon extended to architecture and sculpture and later

modern times to music. The fact that the

aim sought in any fine art is the same in all of them: to wit, an
aesthetic pleasure, suggests that the means successful in one
to painting,

and

in

S44

SCIENTIFIC

MANAGEMENT

545

and experience has

reasonable to suppose that the
same principle would apply to the art of management, whether
In both cases the end
it is management of a factory or a store.

would probably be successful

justified this supposition.

sought

is

It

in another;

is

the same:

to wit, the production of a utility at the

In the case of a factory the utility takes the form

lowest cost.

change in the shape and condition of the materials handled;

they go in, for instance, as bales of cotton and come out as bolts

of a

The thing produced is the change in form. In a store

The goods
the product is also a utility, but a utility of location.
the
in
at
where
arrive
store,
packages
they are wanted only for

of cloth.

distribution,

them

sold in units to the customer who wants

The only change they have experienced is the

and are

for use.

change in location; but as this is a useful change, it

exactly as the change in form made by the factory.

is

utility,

Besides producing the same thing: to wit, utilities, both facmen,

tory and store make use of the same producing factors

Instead, therefore, of its

materials, equipment, and buildings.
how
to
see
the
principles of factory management
being difficult
can apply to store management, it is rather more difficult to see

how they can fail to apply.

The fundamental principles

as practhe
first,
organization of
the present scattered knowledge in regard to the business into a
coherent science; and, second, the organization of the human and
tised in industrial

of scientific

management

estabUshments are:

material factors involved to secure the most efficient application

of the science.

That

there

is

a science of production has been

known

to engi-

neers and factory managers for decades; and that this science
includes not merely the chemistry and physics of engineering, but

hand work has been

As Mr.
management.

the technique of machine operation and

demonstrated for years under scientific

Taylor has shown, there is a science of shovelling as well as a
science of bridge building
simpler, of course, but none the less

a science of selling, too, and

people are trying to find out what it is, thus recognizing

ascertainable

many

and

definite.

There

is

the application of this manufacturing principle to marketing.

SCIENTIFIC

546

MANAGEMENT

The principal methods in a scientifically managed factory for

securing proper organization of the human and material factors
include: first, the selection of the right men for the job; second,
the systematic training of each man for his job and for transfer
to other jobs when needed; third, an accurate determination of

a definite quantity and quality of work which each man may

reasonably be expected to produce, day in and day out, without
fourth, the establishment of such conditions as

inconvenience;
will in

every

way

facilitate the

work

careful planning of all

work place

the machine or

tions necessary for the

in
all

work

of the operator, such as

advance and having on hand at

the materials, tools, and instruc-

workman

to proceed;

fifth,

the

payment

wage sufficiently above the ordinary to be an inducement to

the workman to accept the instruction and other facilities offered

of a

him.

Some

methods are already familiar to store and sales

and
have
been consciously developed, in some cases to
managers
of these

a high degree of perfection.

Though it cannot be said that the selection of sales people,
buyers, and the force of help about a store, is done on any noticeably scientific basis, it is evident that considerable thought has
been given to the training of such people as are actually employed.

common. Committee meetings

amount to the same thing; and fre-

Classes in salesmanship are quite

of buyers, etc., practically

quent conferences between the heads of a concern and

ordinates are in

many

their sub-

stores the occasion of definite instruction.

Conventions of salesmen are utilized for the same purpose.

the second method has secured considerable recognition.

Thus

The establishment

of a quota of sales, whether as the basis for

the tenure of a job or the fixing of a salary, is a recognition of the
third method: the establishment of a definite task.

Fixing the salary proportionally to the sales made, whether in

the form of commission, bonus, premium, or what not, is in a
"
"
in a degree
I say
degree a recognition of the fifth method
because the increased compensation in selling is usually paid

simply for the product: to wit, the quantity of sales and not, as
in factories operating

under

scientific

management,

for the accep-

SCIENTIFIC

MANAGEMENT

547

tance of instruction and increased facilities provided by the

management, bringing with it as a by-product an increase in outCommission and premium schemes as applied to sales are
put.
more like the old piece rate system in factories. In the piece
rate system some one sets a rate according to his judgment, and
the worker is paid exactly in proportion to the number of pieces

produced.

him

The management does nothing

in production,

ability to devise

in particular to assist

but dep>ends on the operator's

improvements and increase

initiative

his output.

and

This

is

evidently entirely different from the method of scientific management, which has standardized so far as possible all the conditions
under which the operator works, trains him thoroughly to the
best use of the conditions provided, sets a task based upon the
continuance of such conditions, and pays a high rate for their

acceptance.
It should be clear from this comparison that the feature in

management is most undeveloped in comparison with

management is in the organization of the conditions
in which the work is done.
In other words, in the adequate
of
the
duties
which
should devolve upon the manperformance
agement and which affect sales only indirectly. Take the stockwhich

sales

factory

handling system of any large department store as an example.

The

and ability to advertisand

the
training of sales people;
buyers

store gives the best of its attention

ing, to the selection of

and stockrooms are usually inadequate, poorly

lighted, poorly located, poorly accounted for, and in general, in
comparison with the factory storeroom, quite inefficiently man-

but

its

store

aged.

The expense connected with

room

"

idea,

is

charged as

now becoming

non-productive

of a store"
and the
burden

management
or

"

management, that overa burden and therefore to be reduced

obsolete in factory

head or indirect expense

to a

the
"

is

minimum,
prevails largely in marketing.
The same observations apply to the usual retail accounting
systems.
They are looked upon as a necessary evil. As much
still

those

necessary is given to the commercial accounts

which the manager keeps posted on how much he owes

attention as

is

by
and how much

is

owing to him.

But

of cost accounting, as that

term

MANAGEMENT

SCIENTIFIC

548
is

known

and yet

it is

to the factory manager, there is little or nothing;

reasonable to suppose that the same methods of cost

accounting which have fully demonstrated their value in manufacturing might be at least equally useful if applied to selling.
It is the object of the articles in this series to point out

how

management work: to wit, cost accounting

these two features of

and the accounting for materials

received, handled,

and

delivered,

may be successfully transplanted from factories to stores; and

it may not be superfluous to add that they are really an account
of

what the writer has already

successfully accomplished.

Cost Classification for Retail Stores

large retail establishments have
developed certain parts of their system to a high degree of per-

Most department

fection.

have

is

stores

The most immediate and important problem

buy the right goods at the right time, to

to

The very

life

that they

get them
as quickly as possible at a
of the organization depends on the satis-

before the customer and

profit.

and

sell

them

factory solution of this problem; consequently, it has received

the greatest share of attention and has been in many cases satisfactorily

worked

out.

The buyers

are carefully selected, well

and highly rewarded. Dealings with

manufacturers and sources of supply have been reduced to a
science, until the manufacturers, especially the smaller ones, have
trained, closely checked,

become almost universally at the mercy of the large retailer,

especially in respect to the making and storage of goods until
called for, so that the manufacturer bears the burden of investment in stock which a few years ago was borne by the retailer.
Advertising and display have similarly been highly developed,
"
"
"
"
service
until the appeal of
quality," and
special bargains,"
Schools have been installed
irresistible.
and instructors retained to teach the sales-people the best method
of closing with the customer.
In short, some of the fundamental

has become wellnigh

what is known among manufacturers as scientific

more or less
management have for some time been applied
to retaiUng.
unconsciously and haphazard, to be sure
principles of

SCIENTIFIC
This situation

MANAGEMENT

549

analogous to that which existed in industrial

is

ago when the technique of production

of attention.
The manufacturer

activities several years

was receiving the Uon's share

considered that he existed to

problem was

to

make

it

make

the product and that his chief

as quickly
"

and as cheaply as

possible.

The product was apparently made at the point of the tool " and
it was therefore the technique of machinery, equipment and
It was at least twenty years
material that got his attention.
that
manufacturers
discovered
that there was more
ago, however,
involved in the economical making of a product than merely the
"
"
machinery and the material. The propaganda of costs called
his attention to the fact that the indirect expenses of his business

constituted a large element in their real cost; and with this

discovery came the resolution first to find oul exactly what these

and then

to take the necessary steps to

consistent with efficient operation.
This determination to eliminate wastes of equipment, materials,

indirect expenses were,

reduce them to the

and

minimum

later of effort is

scientific

behind the whole modern movement of

management.

The time seems

to be ripe for retailers to pursue the same

more striking to the student of industrial

course.
Nothing
methods than the co-existence in the same store of the most
refined methods of buying, advertising, and selling, with the very
crudest methods of receiving, storing, handling, and delivery of
The
goods, and the most cumbersome methods of accounting.
is

or perhaps the ignorance

relatively greater profits in retailing
of the retailer as to the real extent of his profits
have suc-

ceeded in covering up the necessity for close sup>ervision and the

Retailers, however, are already bitten
importance of detail.
with the cost germ and are discovering that their profits are not

Or else they have begun

quite what they thought they were.
to take pride in the efficient management of their business for the
sheer artistic satisfaction that comes from doing a thing exactly
right, and they appear to be at least in a receptive attitude toward
scientific

As

management.
manager reads

the store

this

and

reflects

of printed forms, running into the himdreds,

on the great mass

uses, he

which he

SCIENTIFIC

5 so

may wonder what

though,

if

MANAGEMENT

these statements mean.

It looks to

him

his store has anything, it certainly has system.

as
It

undoubtedly does have system of the type familiar to manufacturers fifteen years ago; that is, numerous and variegated
It is the
cards and sheets, expensively ruled and highly colored.
very quantity and complexity of these forms and the clumsiness

which open him to the charge of wastefulness. Reshould see what manufacturers have long since discovered

of their use
tailers

to wit, that efl&cient system does not consist in a multipHcity of

forms, but in the quick, accurate, and economic securing of

valuable results in the

way

of useful information in regard to the

business, and more particularly in the reduction of wasted effort.

The extent of antiquated methods in the administration of
retail establishments as revealed by recent investigations would

almost lead one to question whether store managers are anywhere

One gains
near ready for any form of scientific management.
reassurance, however, from the readiness with which shoe retailers
are accepting and installing the uniform cost accounting system

developed and provided for them by the Harvard University

Bureau of Business Research. Reports from all over the country
indicate that this system is not only being adopted bodily by
leading shoe retailers but is also influencing the accounting
system and business methods of many more. This cost system
retailers, as similar systems led manufacturers, to
take the next step, which is to reduce the costs of doing business
as soon as those costs are accurately ascertained.
As I have pointed out in former articles, the beginning ofwisdom is analysis and classification. A classification once made

should lead

exceedingly useful and pays for itself many times over, as will
be shown later. But even more valuable than the classification
is

is

the detailed analysis of the business which

classification

can be begun.

is necessary before
Before you can classify your costs,

you must know exactly, exhaustively, and in minute detail what

you are spending your money for; and the mere gathering of this
information and putting it down on paper is in itself a startling
Probably the first thing it will show is that from
eye-opener.
twice to five times more blanks and forms are being used than are

SCIENTIFIC

MANAGEMENT

55 1

and that, with proper management, the clerical force

can be cut in half and quicker and more accurate results secured.
It will also undoubtedly show, in a fairly large store, that the
stock of supplies of various sorts, such as wrapping paper, twine,

necessary,

elevator supplies, janitor's supplies, etc., is a considerable but

indefinite quantity, scattered all over the place, and subject to
If the store runs a soda fountain or a
no control whatever.

show first that they

do
not
and
an analysis of supn
pay;
(or at least the restaurant)
a variety of brands and of prices and a
plies will probably show

restaurant, an analysis of costs will probably

laxity of control

which

may

account largely for the

deficit.

You undoubtedly

have, or can easily get, a sufficiently good

You know from
system of accounting for your merchandise.
your inventory the billed prices of your purchases, the freight
It is not so safe to
and cartage on them, and the discounts.
or
can
the
know
that
get easily
depreciation on your
you
wager

stock or the cost of returned goods in the course of a year; but

even this you may have. If you are right up to the minute, you

know

the cost of heat, light, power, repairs and renewals of equip>-

ment, depreciation of equipment, office supplies and expenses;

and of course it is easy to get your rent, insurance, taxes, and

and management and oflSce salaries. If you are running

a small store as a unit, you can know, with this information in
But if your store is
hand, whether you are making a profit.

licenses,

departmentalized even to the slightest extent, it is reasonably

certain that the indirect exp>enses are not being apportioned
properly over your departments and, consequently, that you

cannot

tell

which departments are running at a

and how much

must remember

profit or at

a loss

For you
the profit or loss is per department.
that the mere accounting for merchandise does

not give you this information. Your merchandise accounts may

show a profit for a department which is in fact entirely wiped

out by a proper apportionment of your indirect expenses; and it

is precisely this indirect expense which store managers as a rule

know little or nothing about.

The analysis and classification of costs which I am about to
describe is intended to make it easy to determine the exact

SCIENTIFIC

552
amount

MANAGEMENT

of indirect as well as direct cost

and easy method

direct cost.

of

It is not

and

to provide a quick

of the indirect over the

apportionment
an easy and simple matter to make the

On the contrary, it calls for a great

analysis and classification.
deal of thought and painstaking care.
But as usual thoroughgoing planning means easy application; and that such is the case
with this analysis and classification has been demonstrated.
Applied to an up-to-date department store in which the manager
got each month, from 'twenty to thirty days after the end of the
month, an accurate distribution sheet, its first result was to get
the distribution sheet five days after the end of the first month,

and three days after the end of the second. It is now used to get
a weekly distribution sheet laid on the manager's desk the first
thing

Monday

morning.

For what kind

of things does a store

pay out its cash ? In the

first place, of course, it pays salaries and its bills for merchandise,
and in most cases rent, and interest on borrowed money.
In
addition it has many bills for freight, express and cartage, advertising, office supplies, wrapping and delivery expense, insurance
and taxes, repairs and renewals of equipment.
In addition to
these actual expenditures, the store should have a proper charge
on stock and on fixtures. There will be many

for depreciation

other

tems of expense such as telephone and telegraph, eleva-

tors, janitor service,

stockhandling,

etc.,

and

in

some

large stores,

may be such adjuncts as an employment department, an

information bureau, waiting rooms, and perhaps even a bank.
there

This does not exhaust the Hst by any means.

Every store has an

developed, and occasionally

accounting department more or less

has to meet legal expenses and to pay for protection against theft.
One of its largest items is likely to be for advertising, including
window-dressing, catalogues, and bill
boards, and extending into a wide variety of special advertising
accounts, such as contributions to charities, fairs, etc., dodgers,
primarily

newspapers,

and gifts, such as playinginscribed

with the name of the
cards, fans, rulers, pencils, etc.,
in
further detail, the advertising departTo illustrate
concern.
circular letters, programs, magazines,

ment may employ

special

men

of its

own, requiring

salaries

and

SCIENTIFIC

MANAGEMENT

553

there will be certain telephone and. telegraph charges

against this department alone; it will consume a considerable
quantity of supplies and stationery, and in some cases may even

wages;

maintain a small printing plant to set up large newspaper advertisements in advance.

The first principle of scientific management, you remember, is

the organization of scattered knowledge into a systematized
whole.
Suppose we apply this principle to our accounts. Fortunately

we can do

method which is
for a factory,

this easily

of precisely the
used in developing a complete system of accounts

making

of course such changes in the terminology

as are obviously necessary.

The first thing to do is to

there

is

by the application

item of

list

that

every
expenditure
a record of and there should be a record of every exp>en-

When this is accomplished, the next thing to do

these items into a few very broad groups.
This
classification may be made by the aid of the questions on the
chart.
See page 554.
diture made.

is to classify

work to be
an
Yes,
may
exp)enditure
for merchandise or products to be sold as merchandise, such as
the meals served in a restaurant.
Such exp)enditure is direct
expense; and as all other expenditures (except capital exp>endiFirst question: Is the expenditure for materials or

sold ?

If the

answer

is

it

be

classified as

such as permanent additions to land and buildings and

equipment) are to be reckoned as a percentage of the selling price
tures,

of the merchandise, all others are indirect.

the expenditure is for materials or work not to be sold

directly, a second question is in order Does the material or work
If

increase the
If the

permanent value of the store

expenditure

is

for fixtures,

machinery and equipment

(except for that which is to be written off immediately when

purchased) or for land and buildings, it should be classified as a
capital account.

or

work to be

not for such items, nor for material

is chargeable to some kind of indirect

If it is

sold, it

expense.
In the latter case there should be asked the third question:
Can the expenditure be charged directly to a department ? All

SCIENTIFIC

554

expenditures which can be,

MANAGEMENT

may be

classified at

once as depart-

mental expenses.

And

in regard to those

which cannot be charged directly to a

department, the fourth question

is

Is the expense for

in order:
'>FouRTH

Question

Is the expense for direct dealing

with merchandise or customers

< < Yes-

Auxiliary Expense

Administrative Expense

- < < No

Departmental Expense

I>Third

Question

Can

the expenditure be charged

directly to a department ?

<<< No

<

Yes*-

-<

First Question

L
(M Merchandise)

Is the expenditure for

^Merchandise

be sold as
merchandise

No ^

Stores and Supplies)

ma-

work to be sold ?

or products to

R
(S

terials or

~
,

-Yes<-

U
V

'^Second

Question
Does the material or work

w
X

increase the permanent

value of the store?

Machinery, and
Equipment, except that
which is written off when

FixTtTRES,

No*-

Yes'*-

-<

purchased

<

Land and Buildings

If
direct handling of merchandise or deahng with customers ?
if
it
is
and
not,
it is, it may be classified as an auxiliary expense;

then as an administrative expense.

is

The dividing line between auxiliary and administrative expense

somewhat shadowy; and in some cases it is immaterial which

way

the expense

is

classified,

provided the

classification,

once

SCIENTIFIC

MANAGEMENT

555

It has a certain usefuhiess,

consistently adhered to.
however, inasmuch as auxihary expenses are by definition those
which are necessary for the proper handling of goods and custom-

made,

ers,

is

and in case

last to

of retrenchment, therefore, these should be the

be attacked.

Administrative expenses, on the other hand,

though necessary to the successful management of the business,

may in many cases be cut down, at least temporarily, without
serious harm.

An

intelligent

workable

answering of these questions would result in a

every item of expenditure.

classification of

Adhering to the mnemonic system of symbols used in the

Taylor system of scientific management and illustrated in former
articles in this

our major

magazine, suppose that we make a base sheet for

which will read as follows:

classification

Auxiliary

SCIENTIFIC

$$6
The base

BA
BE
BF
BG

BH
BL

BM

MANAGEMENT

sheet for administrative expense will be this:

BN

Accounting department
Educational department

BP

Insurance
Protection

Floor-walkers

BS

Statistical

General

BV
BX
BY

Inventories

offices

Shopping
Legal expenses
Mail order department

department

Taxes

System expenses

is the general symbol for departmental expense and, where

there are but few departments, a letter may be added after the

to symbolize the department: for instance, in a shoe store that is

divided into men's, women's, infants', and hosiery departments,

these will be designated as

from

this

DM, DW,

DN

symbolic system on account of

and o), and DH, respectively.'

(I

and

are omitted

their resemblance to the

In a department store
not practicable without classifying and symbohzing the
departments with a resultant symbol of two or three letters for

figures

this is

each one.
better to

In order, therefore, to keep the symbols short, it is

the departments; and this number should be

number

inserted immediately after the D.

In the following base sheet
for departmental expenses, the dash after the
is for the symbol

or

number

D-A

of the department:

SCIENTIFIC

MANAGEMENT

AA Advertising

557

SCIENTIFIC

5S8

MANAGEMENT

Alterations and repairs and rent for land

and buildings are

symbolized respectively AZC and AZR.

General office expenses, which may amount to a considerable
item, may be grouped in this way:

BGA
BGB
BGC

BGD

Salaries and wages

Books and periodicals
Repairs and maintenance
Dues and assessments in

associations

BGE

BGN

Telephone (tolls) and

grams
Entertainment

BGS

Supplies and stationery

BGT

Traveling

tele-

Equipment

Insurance

BNB
BNC

BGF

is

taken care of as follows:

Bonds
Repairs and maintenance of

BNL
BNS

Liability

Stock and fixtures

sprinkler system

Buying expenses are sometimes important and heavy. They

should be grouped in accordance with the following base sheet:

D-BA

SCIENTIFIC

ment and may

also

do some

MANAGEMENT

559

care should be taken to charge

selling,

to buying expenses only that part of his time which is actually

This calls for the exercise of judgment and
occupied in buying.

cannot be absolutely accurate, but

enough

it

can easily be made accurate

for ordinary purposes.

The degree

of minuteness to

which

this classification will

be

carried will vary of course with the relative importance of the

For instance, if
department or function under consideration.

the mail order department is a considerable part of the business,

it will have a complete classification of expenses of its own
while
;

if it is

distinctly subsidiary,

a much rougher and

less

complete

classification will serve.

In the apportionment to each function of a business of such

items as supplies, it becomes necessary to organize a supply
department, from which supplies are issued to other departments

may be charged directly against the departHere again successful factory experience
them.
receiving
has been easily transplanted to department store work.
The
on

requisition,

which

ment
best

way

of handling this

into a storeroom,

make

is

it

to gather the supplies

some one's business

and stationery

to act as store-

keeper, and classify and otherwise handle the supplies as de"

scribed in my former article,
Listing Stock to Index Wastes,"

on page 490.
is a one department or unit
no problem of apportionment of indirect expense,
and the items of expenditure may be grouped easily in accordance

If the store

concern, there

under consideration

is

with the symbol to get any totals desired.

for instance,

your

you want

If

to

know,
and

total expenditures for freight, express

AT

items.
If you
cartage, all you have to do is to total all the
want to segregate the expense of delivery companies, freight,
messengers, and parcels post, simply re-divide into ATD, ATF,

and ATP, respectively. If, on the other hand, you want

to get the total cost of handling goods and customers, that is, the
auxiliary expenses, total all the A's; or if you want your total

ATM,

administrative expenses, take the

sum

indirect cost of your alterations

and

of the

AL items.

The

of all the B's.

repairs

Your buying expense

is

is

the

entire

simply the total

sum

of

DB

for all

SCIENTIFIC

560
departments,

tliat is, it will

MANAGEMENT

include

DBF, DBN, DBR, DBS, DBT, and

DBA, DBB, DBC, DBE,

DBX

(if

the loss on sales

is

charged against buying). Similarly, all your advertising expense

is easily closed into a control account AA, composed of all those
items the symbol for which includes AA as its first two letters.
All his means that every expense should have a voucher, to

which the proper symbol

is affixed
but if this is done, the resultant ease of handling is what makes the system worth while.
If, however, the store in question is organized in two or more
departments, it becomes highly desirable to apportion the indirect
;

expense in some fair way over departments. Such an apportionment properly made often shows wide variations in the profits
from different departments, and may even reverse the current
opinion of the

management

as to their relative

money-making

This becomes a highly important practical question

capacity.
as it is nothing unusual to find the profits of one department
This may sometimes be toleeaten up by the losses of another.
rated as a permanent condition where the maintenance of the
loss-producing department is desired as an advertising feature
or as a convenience to customers; but even in that case the

management should be in a position

to

know what this advertising

and convenience are costing it.

The problem of apportioning indirect expenses over departments is not difficult if sufficient thought is given it in advance,
and the method of apportionment indicated in the symbol for the
This is another story, however, and will be discussed
expense.
fully in the next section.

n
Making Departments Pay Their Share
The first and great commandment in scientific management is
In its application to cost
accurate determination of facts.
accounting this means that all the items of expense shall be careanalyzed and re-grouped, so that each separate item

may be
and
thus
the
charged
group
management
kept informed as to the general tendency and location of its
For the business to succeed the management must
expenditures.
fully

to its appropriate

SCIENTIFIC

MANAGEMENT

561

If it is at all departget back all that it puts in, plus a profit.

must
see
each department or
that
the
mentalized,
management

group

of

products gets back

all

that goes into

it.

There is no way

of being sure o^ this unless all the costs, indirect as well as direct,

are properly charged against each department or group of products, and unless returns from sales are so analyzed as to show

The problem of allothe returns of each department or group.

cating every item of expense to the group or department to which
it belongs is by no means a simple one, and in current factory
practice it has called for and secured the highest grade of ability
and attention.
Every up-to-date factory has a cost accounting

system which in practically every case is admittedly complex and

Many factories, however, have progressed to the
where
complexity and elaborateness are no longer adverse
point
elaborate.

provided they are no greater than

secure the accurate information demanded.

criticisms,

That the
with that of

is

necessary to

management of retail stores, as compared

scientifically managed factories, is still a mere infant
to walk is nowhere more strikingly shown than in

science of

hardly able
the current methods of charging departments with their share
of the indirect expenses of the store.
In factories the subject of
costs has long since been

worked out

to a high degree of refine-

ment.
Every factory cost accountant is familiar with at least
half a dozen methods of distributing indirect expenses, and every
expert can say with confidence which method should be used in
There are
particular instances and for particular departments.
several books on factory costing which are really scientific pieces
of

work;

but

for

In the
department stores there is nothing.
and merchandising always a step

struggle to develop advertising

beyond what the competitor is doing, the details of store administration have had but scant attention.
It is as though the
army spent all its time at rifle practice and never considered the
commissary, transportation and sanitary provisions without
which, with all its fighting eflBciency, it would be utterly useless
in time of war.

As pointed out in the last section in this series, it is highly

important that a department store should know what share of

SCIENTIFIC

562

MANAGEMENT

expenses should be charged against each department.

In the absence of such information it is not at all unusual to find

its indirect

a department, supposed to be making a profit, actually running

In fact, instances have been known where the manager
at a loss.

weak department of any proper share of expense

have that department show a profit, with the explanation that he was n't going to have a department that didn't
show a profit. That is the policy of our old friend, the ostrich.
This policy is not altogether unknown even now in factories, but
the factory in which it is foimd is sure to be spoken of as oldwould

relieve a

in order to

fashioned.

The modern policy is

to find out exactly what each department

really costs, not only in the amount of merchandise handled
through it, but in supervision, accounting, floor-walking, elevator
service, general advertising, and the other innumerable features
which go to make up the entire expense of a store but which
cannot be charged directly against a department.
This is the

problem
incurred
store

of

apportionment

by

to

components as justly as

Some

take

all

those costs which are

the store as a whole and distribute them over the

of the

possible.

more progressive

stores

have already accepted the

principle of the apportionment of expenses over departments;

but as a rule their methods of apportionment are, to say the least,
It is quite usual to find all the expenses apportioned

crude.

the

amount

of sales.

That

this is

not at

all

by

accurate should be

A department selling notions,

have three times the number of employees,

evident on brief consideration.

for instance,

may

cost of supervision greater, and twenty times as much

clerical work as the rug and carpet department or the musical

making

its

instrument department, while its total volume of sales may be

less.
In this case the rug department would be charged with
considerably more than its proper share of the clerical expense

and supervision. On the other hand, the rug and carpet department may occupy three times the space of a jewelry department
doing as

much

on the basis of

business.
total

If,

volume

as has happened, rent

of sales, the jewelry

is

distributed

department will
be paying a large part of the rent which the rug department ought

SCIENTIFIC

MANAGEMENT

563

The condition is just as bad when indirect

to be charged with.
are
apportioned entirely on the basis of floor space
expenses

When this is done, the rug department bears part of

occupied.
the burden which ought to be carried by those departments
occupying a small floor space.
There is in fact no one method of apportionment which
If accuracy
either logical or even approximately accurate.

essential and

is
is

competition becomes keener, reasonable

the apportionment of indirect
accuracy becomes indispensable
should
be
on
the
basis
of
the actual facts; and on this
expenses
as

basis there will be at least ten or fifteen different

methods

of

for different items of expense.

apportionment
There are certain items of expense
the proper

method

example, consisting of a
cash

girls,

and

for

which

it is

easy to find

Take the cash system,

of distribution.

for

number

of stations of carriers, a group of

the necessary printed forms.
The expenses in-

volved are wages, repairs and maintenance, small equipment,

power, rent (unless the system

is

owned by

the concern),

and

incidental supplies.
According to the cost classification illustrated in the last section, this will be symbolized as follows:

AC Cash System
ACP Power
ACA Wages and salaries
ACC Repairs and maintenance
ACR Rent
ACS Supplies
ACE Equipment

When

at a charge of so much per

station.
It is fairly obvious, therefore, that the rent should be
distributed over departments in proportion to the number of
these systems are rented,

stations in departments.

it is

It is clear also that the cost of repairs

and maintenance, equipment, supplies, and power is proportionate to the number of stations and should, therefore, be distributed
in the same way.
On the other hand, wages of girls in the central
station are not necessarily proportionate to the number of stations
in departments, but rather to the number of sales in departments,

and should therefore be distributed on the basis of the number of

sales slips.
In any case these items are in no way proportional
to the total volume of sales or the amount of floor space occupied.

SCIENTIFIC

564

MANAGEMENT

That part of the work of the accounting department which does

not deal with purchasing or stockhandling of merchandise, is
concerned in the main with daily sales, credits, and monthly bills.

The expense

of those clerks deaUng with sales and credits should

most reasonably be distributed over departments in proportion
to the number of sales slips as representing most accurately the

number

of sales, while that of the billing clerks should, of course,

be distributed in proportion to the number of bills entered.

There are faciUties provided by a store, such as the information
bureau, post-office, and waiting-room, the expense of which should
be apportioned according to the number of people using them.

In other words, they should be distributed over the departments

number

in proportion to the

department; and

this is

of people making purchases in the

evidenced by the number of sales slips.

The

benefit that the firm derives from an education department

if it

maintains one,

made; and

this

is

also proportional to the

number

of sales

expense should therefore be apportioned on the

basis of sales slips.

as telephone and telegraph expense.

When
connection with buying for a department,

Take such an item

this is incurred in

it should be charged directly against the department

There
are many telephone and telegraph charges, howbuying.
ever, which are not incurred directly by a department but should
in some way be distributed.
Evidently there is no connection
between the telephone calls and the volume of business or the
An easy and sufficiently
floor space occupied by departments.

obviously

accurate method

number

is

to distribute

them in proportion

to the average

of calls directly charged against departments.

There are many kinds of expense which should be distributed

on the basis of the number of square feet occupied by departments.
Rent, for instance, is clearly on this basis. Heat, light,

and power, not already charged directly to a departbe apportioned on the same basis. Janitor service
should
ment,
ventilation

also is generally in proportion to square feet of floor space.

The

and maintenance of sprinkler system.

same
Where floor-walkers have a round that includes more than one
is true of the repairs

SCIENTIFIC

MANAGEMENT

565

department, their cost should be distributed also on the number

of square feet.

There are
has
is

its

own

other bases of apportioimient, each of which

If a stockroom for supplies
particular application.

many

maintained, the expense of this stockroom should be dis-

tributed in proportion to the value of supplies used by each department. Insurance on stock should be spread over the average

stock carried

The cost of window-dressing

proportion to window space occupied by

by departments.

should be charged in
each department. Advertising

is usually to be charged directly

the
against
department advertised; but in all advertising there
is a large element which is general
that is, which advertises the
:

store as a whole

and from which each department gets some inde-

terminate share of benefit.

Bill-boards, contributions to charity,

into this class.

General advertising in newspapers

etc.,

fall

should be distributed over departments in proportion to the total

advertising space taken by the department during the year.

This applies only to such general advertising as appears in newsOther general advertising cannot be distributed in any
papers.
proportionately to the benefit derived by a department, for
the reason that such proportionate benefit cannot be ascertained.
The disposition of this expense will be discussed later in this

way

article.

Delivery expenses, to be accurate, should be distributed

number of parcels shipped from each

in accordance with the

department. The expense of an employment bureau and liability

insurance should be charged on the basis of the department
payroll, as these obviously vary with the number of persons

employed and

their

wages or

salaries.

The elevator expense offers a special problem.

It is not exactly
over the entire store in proportion to the
number of people using a department, nor on the basis of floor
space, for departrnents on the street floor have no use for the
fair to distribute it

elevator at all, and, therefore, should not be charged with any

The best plan seems to be to dispart of the elevator expense.
tribute it in proportion to the number of sales in the basement

and second and upper

floor

departments.

SCIENTIFIC

566
If the

MANAGEMENT

concern does a small mail order business, not sufficient to

warrant a separate mail order department to which the cost may

be charged directly, the expense of its mail orders should, of
course, be distributed in proportion to the mail orders filled

by

departments.

There remain quite a number of expenses which cannot be

allocated logically on any of the bases stated.
For instance,
in
not
office
newspapers, general
general advertising
expenses,
stockroom expense, shipping and receiving department
general

"

transportation

charges,

legal,

shopping," and system expenses,

protective,

this

means

cost,

statistical,

of course all

which cannot be charged at once

and directly against departments.
Something might be said
expenses falling in these groups

for distributing these in proportion to the total sales of a departbut, as the total sales basis is such an easy one to abuse, it

ment
<

These general expenses

preferable to eliminate it altogether.
be
distributed
equally to departmight with at least equal justice
is

ments and, as they are the only ones that can be so distributed
with any logic whatever, that method is to be preferred as the
danger of abuse is less.

We

thus have fourteen bases of distribution of expenses:

1.

2.

3.

4.
5.

6.
7.

8.

9.

of square feet.
Advertising space taken by department.
Window space occupied.

[Number

Number of sales slips.

Number of bills entered for departments.
Number of sales in basement, second and upper
Number of parcels delivered.
Number of mail orders filled by departments.

floors.

Average stock.

10.

Number

11.

12.

Value of supplies used by department.

Average number of calls for departments.

13.

Payroll.

14.

Equally to departments.

of carrier stations.

administration of this system is not so difficult as might

appear on the surface, if it is thoroughly and carefully worked
out in advance. Distribution by departments calls, of course, for

The

a definite determination of the number of departments involved.

MANAGEMENT

SCIENTIFIC
Distribution

by number

567

of sales slips involves totalling the

num-

ber of sales slips from each department each day for each week,
if the distribution is to be made weekly.
Apportionment by

number of square
ment and getting

feet
its

means measuring the area

proportion to the total

"

"

of each depart-

"

"

productive

area

such space as is actually

of the store (meaning by
productive
used by selling departments).^
Bookkeepers' expense to be
determined according to the number of bills entered for the
departments, requires a weekly total of this number; similarly

with distribution by number of mail orders and average number

of telephone calls.
Apportionment by value of supplies used
requires that supplies issued to the department shall be issued on
requisition, with the values noted on requisition and totalled

AdverUsing space and window space

measured.
be
must
Payroll and average stock are
occupied
the
for
available
management. The number of stations
already
is
The number of parcels
of the carrier system
easily ascertained.
delivered must be kept track of by departments.
With these data once secured, any good clerk with the aid of a
at the end of the week.

make the necessary disshe

knows
how each item is to be
tribution very quickly,
only
That is taken care of very simply by numbering
distributed.
calculating machine or a slide rule can
if

list above, and inserting the

on
each
voucher, the symbol being
symbol

the methods of distribution, as in the

number

in the cost

determined as described in the previous

For

this

purpose the cost symbols for

article.

specific

items should be

written with a space between the first and second letters, this
space being filled in with the number of the distribution method.

On

this basis the cost

be as follows:

B-AA
B4AC
B4A

symbols

for the accounting

B-A Accounting

and wages
Repairs and maintenance
Equipment
Salaries

department

will

Department

B4AR

Reclamation of errors

B4AS

Supplies and stationery

*
It should be distinctly understood that productive and unproductive in this
sense are accounting terms and do not mean at all that space used for a stockroom,
for example, is unproductive, but merely that this expense cannot be charged

directly against a

department but must be distributed on some basis over

departments.

all

SCIENTIFIC

568
Salaries

MANAGEMENT

and wages distributed

base sheet:

differently

B-AA Salaries

B4AAA
B5AAB
B4AAC

must have a

different

and Wages

Auditors

Bookkeepers
Cashiers

every payroll voucher in the accounting department has the

"
"
symbol stamped on it, every one marked B4AA will be disIf

tributed on the basis of the

will

number of sales slips; while "B5AAB"

bills entered.
The applica-

be on the basis of the number of

tion of this to the rest of the system can be easily made.

It would be vain to pretend that this system of apportionment
It is not intended for the small, single-line
is a family necessity.

meant only

department stores or for stores

For
them some system of apportionorganized departmentally.
ment is a necessity, and the justification of this particular one
is that it comes considerably closer to accuracy than any of the
store.

It is

for

It is for
methods now in common use in department stores.
them a necessity because, without it, they cannot know accurately
the percentage of profit or loss they are making on departments
without it they have no accurate guide to changes in buying,
selling and advertising poUcy; without it they cannot make an
;

intelligent

mark-up, nor can they know accurately the cost of

more and more true that,

without such a system, they cannot meet permanently the
increasing competition of ambitious newcomers in retailing.

markdown; and

it is

With such a system

daily becoming

intelligently administered they

can do

all

these things.

Stockiiandling System for Merchandise

factory operates on the basis of definite and accurate knowledge of every detail necessary to the
scientifically

managed

It makes its product out

successful prosecution of its business.
It knows what raw materials it has ordered,
of raw materials.

from whom, and when they are to be delivered;

quantity on hand in its storerooms and its cost.

it

It

knows the
knows how

MANAGEMENT

SCIENTIFIC

much its current manufacturing orders call for

how much of the quantity on hand or on order
It has determined

specific orders.

569
and, therefore,
is reserved for

on the basis of current and

prospective use just how low it can allow its stock to fall without
interfering with production, and how high it can allow it to go

without tying up too much capital; and

cally ordering within these limits.

The

factory

is

provides for automati-

so careful about its stores system because the

The product cannot be

productive process originates there.

or even started in the works unless the raw materials are

made

on hand.

The

scientifically

of the material after

place

it

it

it

managed

factory

has started on

charts that course in advance

is

equally careful
In the first

its course.

then

it

without deviation; and

sees that material

keeps track
guided through it
the time of the location of the partly finished product on

is

it

all

its

and is shipped
This constant keeping tabs on the material
the customer.
not an easy thing to do and has had to jusUfy itself by its

course, until it arrives finally in the stockroom,

to
is

results.

What

it

accomplishes

is this:

first,

standardization of

by elimination of those not necessary or not best

adapted; second, reducrion of the amount of capital tied up in
raw materials; third, a guarantee that raw materials are on hand
materials

when needed;

knowledge of the progress of the

the
reasonable promise dates to
enabhng
shop,
product through
be given; fifth, control of the finished stock, making prompter
fourth, accurate

shipments possible.
is

This

last result, delivery to the

customer,

the end and aim of the manufacturing process.

DeUvery to the customer is also the end and sum of the retail-

In order to insure it, the goods to be deUvered must

have been ordered, received, transferred to the shelves, and
They must be on hand when the customer
finally delivered.

ing process.

wants
is

to see

them; there must not be so much stock that capital

The chief and practically the only

unnecessarily tied up.
between the requirements for the proper accounting

difference

of materials in a factory

and

in a store lies in the fact that the

interval between the receipt of raw materials and the delivery of

the product in the factory is longer and includes manufacturing

SCIENTIFIC

570

MANAGEMENT

processes, whereas in the store it consists merely in the transfer

from the storeroom to the shelves and, in some cases, even that
is

The methods

lacking.

of accounting, therefore,

which have

been found successful in factories should be even more successful

and simpler in stores; and this article describes an application of
a factory system to merchandising.

Every properly-managed
total sales of

store gets frequent reports of the

These reports are usually

merchandise each day.

in the form of totals for departments in a department store or for

entire lines of goods in other stores, such as men's shoes, women's

and piece goods. The report usually

and such incidentals as
and repairs and alterations. On the basis of

shoes, or cloaks, dresses,

shows

also the value of goods unsold

discounts, returns,

these detailed reports it is possible for the manager to check up

the condition of store or department and to keep in constant
If the department is doing well, no action
not
necessary;
keeping up to the standard set, the buyer
and
the
These daily records
is jacked up
necessary steps taken.
extended over a period of years are sometimes charted by weeks

touch with

its

needs.

if it is

is

or months, or even daily, and the resultant graphs are used to

predict the probable demand.

Such information when secured for the store or the department

as a whole has some value, but its usefulness is slight compared
with that to be derived from similar information by lines or

The most up-to-date stores are using the latter

and
still
further
subdivide their information by prices;
method,
and the result of this analysis is to show what priced goods sell
classes of goods.

best.

Some

curious information has been derived

by

this

means.

been shown pretty conclusively, for instance, that a glove

will sell for $1.25 mcTfe quickly than if it is marked $1.15; and
that a $2.00 glove sells better than one at $1.75, although the
It has

is

quality

The
by

the same or inferior.

greatly increased value of the result when the analysis is

and prices raises the presumption that a still more minute

lines

analysis will be even

No

more worth

while.

up-to-date factory follows the current methods of stores in

The reports of a factory on raw mathe handling of its stock.

SCIENTIFIC

MANAGEMENT

57 1

and stock on hand are totaled only when an inventory is

Each article carried has its own stock ledger or balance
and
the management may know at any moment precisely
sheet,
the quantity and value of each item in stores, in process, or in
stock; and with such detailed information before it, it can control
its purchases, the routing of its materials, and its investment of
terials

wanted.

capital with the

There

utmost

effectiveness.

apparently no reason other than custom why retail

There should be
stores should not follow the same procedure.
no more excuse for over-time work or even closing down for stock
taking in a store than in a factory; and the most progressive
factories have ceased to interrupt their business for inventory.
is

The value
ally

of a perpetual inventory

is

so well

known and

so gener-

acknowledged that no argument should be needed in

support.
And there

its

a far stronger reason why a store should know

exactly and in detail how each item it carries is selling than that a
In general
factory should know how its raw materials are going.
is

the success of a store depends upon the rapidity of its turn-over,

assuming of course that each turn-over is at a profit.
Rapid

turn-over

means a comparatively small investment

great elasticity in stock.

or goods strongly affected

of capital

and

In stores carrying seasonable goods

in fashion, frequent turnthe

stock up to date and prekeep
vent loss through rapid obsolescence.
It usually happ>ens that the advantages of rapid turn-over vary

over

is

by changes

absolutely necessary to

In the first place where the profit is large,

the turn-over need not be so rapid as in those cases where the
margin is small. In the second place, in any given line of goods,

with different items.

such as dress goods for example, certain materials are staple and
the fashion in them does not change frequently; while others are

and out to-morrow. Here a quick turn-over is essential.

Obviously a report which totals results from all these types of
merchandise gives a mere average composite picture which is
in to-day

true neither of the staples nor the novelties, nor of the big profit
profit items.

and small

SCIENTIFIC

572

MANAGEMENT

In this matter, as so frequently in business, ultimate success

depends upon attention to

detail,

which means again analysis and

classification.

Frequently the steps necessary to be taken to secure such

The totals now given the
detailed analysis are not difficult.
from
which
the totals are built up.
items
manager presuppose

In order to make the system complete, all that is necessary is

that each of these items shall be carried on a merchandise ledger
This does not involve much more
or balance sheet of its own.

work than is now already undertaken. When this is

done, the balances shown for each item can be easily combined by
classes in such groups as are similar from any point of view in
which the management is interested for instance, by price
ranges, by rate of depreciation, as staples, novelties, etc. With
such detailed reports before them, the manager and the buyer
cannot help but be more intelligently guided in their decisions.
In addition such an accounting provides a perpetual inventory
clerical

,of the store.

The

detail of the

method

to be followed

is

illustrated in the

These forms may be combined on

forms reproduced herewith.
one sheet and kept by merchandise clerks in the accounting department; this takes away practically all clerical work from stock

and buyers, and concentrates it in the clerical

department where it belongs. Experience has shown this to be
the best method in factories where the system is working most

keepers, salespeople,

If for

this

arrangement is
columns
i and 4
not desirable, the forms may be separated and
kept in the accounting department and columns 2 and 3 in the
successfully.

any reason, however,

The description of their use will assume that they

are kept together in the accounting department, and will be
Modifications to
based on the practice of a department store.

stockroom.

meet other conditions may readily be made.

Each sheet is the account for each item carried in stock; for
the sheet may be
example, boy's two-piece suit, blue, No. 531

subdivided by ruling clear across

section for each size.

it

horizontally to provide a
;

SCIENTIFIC

It

MANAGEMENT

573

Column I shows the materials ordered but not yet received.

is made up from a copy of the purchase order which comes from

the buyer, after being O. K.'d or confirmed by the proper authority, and shows the date ordered, date received, purchase order

number, quantity ordered, billed cost, discount, and net cost.

It is not necessary to enter on this sheet the name of the source of
supply as that

is

not essential to the account.

If for

any reason

can easily be found by reference to the copy of the

it is wanted,
purchase order filed numerically. It may be desirable to know
it

whether the order

is

placed with a jobber or a manufacturer.

For this purpose a J or an

may be entered after the order
number.
Column 2 shows the quantity and total cost of the item received
in the stockroom (which in the case of a small store

is

the store

sub-columns have date received, quantity, purchase

itself).
order number, deUvery charges, total cost (which is the net cost
Its

plus the delivery charges), by simple division the cost per unit,
and the quantity still due upon order in case of partial shipment.

By

comparing columns i and 2,

and need

are delayed in shipment

to be deUvered.

Column

easy to see which orders

tickling, and the balance still
it is

shows the cost per

unit,

which

is

the

basis of the mark-up.

Column
in the

is

intended to show mainly the merchandise on hand

its price.
This column is obviously not

stockroom and

needed in a store where goods are placed directiy on the shelves

It is got simply by deductwithout going through a stockroom.
ing the quantity issued to the department or to the shelves from
the total quantity received in column 2 and entering the balance
"
in the column,
Balance on hand," in column 3. Column 3 provides for the date of issue from the department to the shelves,
the quantity issued, the requisition number on which the issue is

made, the price per unit (which

is

the total cost from column 2

plus the mark-up), the total price of the issue to the department,
and the balance on hand secured as just described.
It is the
business of the stock-keeper to call the attention of the buyer
whenever the balance on hand falls to a predetermined minimum.

The buyer

will

then decide whether to re-order.

The minimum

SCIENTIFIC

574

MANAGEMENT

be so set that, if it is desired to re-order, there will be

enough goods still on hand to meet customers' requirements until
This depends therefore upon the
the new shipment is received.

limit should

rapidity with which goods are being sold and

length of time between order and shipment.

mum

upon the probable

To

limit calls for the exercise of considerable

on the side

in general it should err

little, if it is

of too

much

set this mini-

judgment; and
rather than too

the policy of the store always to meet

its

customers'

needs.

Column 4
shows

first

requisition

the account of actual sales in the department.

It
the date received from the stockroom, the quantity,
is

number; and these three sub-columns should check

Column 4 shows daily
3.

with similar sub-columns in column

the quantity sold net, the total price of this quantity, the quantity sold at a discount, the rate of discount, and the total net

with the total of all sales.

price of such discount sales, together
of
the
sum
the
quantity sold net and the
Finally, by deducting
quantity sold at a discount from the total quantity received,
column 4 shows the quantity still on hand in the department.
When the quantity on hand falls to a predetermined minimum,
the responsible person in the department requisitions the stockroom for more goods. This requisition must of course go first

through the balance clerk in the accounting department to see

that the goods are in stock, and if they are, to make the necessary
entries debiting the requisitioning department.

The items in column

column

order, those in

are

made up from a copy of

the purchase

from the stock-keeper's report

of

quan-

for delivery charges, column 3 is

tity received and the vouchers
derived from the department requisitions, and column 4 from the

administer.

and quahty

The system

thus very simple and easy to

In case more checks are desired on the quantity

daily sales slips.

is

of goods received, further detail may be developed

The extent to which this is done will depend

for the purpose.

upon the size and other conditions of each individual concern.

At the head of each balance sheet must be entered the following
items of information:
unit, the

minimum

a description of the

of merchandise in the

article,

the kind of

stockroom at which

SCIENTIFIC

MANAGEMENT

575

point the balance clerk is to notify the buyer, the minimum of

merchandise in the department or on the shelves at which point
the department head is to notify the stock-keeper, and the
The
location of the item in the stockroom and on the floor.

minimum on hand

department at which point a further

requisition is to be issued is kept by the balance clerk as a check
on the department head. The latter must, of course, be supplied
in the

same minimum.

also with the

head of the sheet a summary of

posting, as it will be found in practice that it

It is advisable to print at the

the instructions for

takes balance clerks of average intelligence a month or more to

It must also be
get the balances in shape and keep them there.

remembered that no balance sheet can remain accurate very long

without frequent checking, at first by actual count of the quanFor
tities on hand in the stockroom and in the department.
a while

it will

even

sible,

month

if

or two.

be advisable to check every sheet as often as posthis necessitates double the force of clerks for a
After that the sheets

may be

divided into groups

in such quantities that the entire stock will be covered say once in

three months,

by checking one group each day.

brevity in writing, and definite

identification of each item (which in practice often goes by a

For convenience

of filing,

variety of names), it is usually desirable to symbolize each

item. The method of mnemonic symbolization, which I believe

was described fully in a

"
on page 490.
It
how this works out in practice.

to be tlie best for general purposes,

section

may

on

"

Listing Stock to

be interesting to

M"

Index Wastes

illustrate

"
Merchandise." In a
the symbol for
"
"
for departstore
this
would
be
followed
department
by a
"
"
and
ment, with the number of the department between the
"

is

the

first letter in

*'

the
are

D."

many

number departments where there

than attempt to give them mnemonic

It is advisable to

of

them rather

"

In a one-line store the hyphen and the " D

are
symbols.
omitted and the symbol for the class of articles to be symbolized
"

M"

unless there are several items

immediately after the
of the same article but with different dimensions, in which case
falls

the distinguishing dimensions are included after the

"

M."

SCIENTIFIC

576

MANAGEMENT

Suppose we start with our original cost base sheet

485):

A
B
C

D
E

Auxiliary expense
Administrative expense
Stores

Departmental expense

and

supplies)

(see

page

SCIENTIFIC

M7DG

MANAGEMENT

Gelatine, baking powder,

M7DM

and other cooking compounds, not

M7DH

If this

elsewhere M7DP

M7DS

Herbs, seasonings, condiments, and spices, not else-

M7DU

where

M7DV
M7DX

department

Meats and

fish,

Pickles, olives,

oil

ishable

Vegetables, not perishable

Miscellaneous

might be put

carries fresh vegetables, they

M7DBD

Dry Beverages

M7DBW

Wet, except milk and cream

(for

further:

which see dairy products)

beverages will be further subdivided, as for example:

M7DBDB
M7DBDC
M7DBDD
M7DBDH
And

oKve

Soaps, cleansers, polishers

Fruits and nuts, not per-

down under M7DF; fresh meats under M7DT.

The following subdivisions will illustrate the subject

Dry

not perish-

able

classified

classified

S^J

Bouillon cubes
Coffee

Drugs

M7DBDK
M7DBDM
M7DBDT

Cocoa
Malted milk

Tea

Chocolate

the different brands of cocoa, for instance,

may

be desig-

nated thus:

M7DBD1K
M7DBD2K
M7DBD3K

Baker's cocoa

Lowney's cocoa

M7DBD4K
M7DBD5K

Trinity cocoa
Runkel's cocoa

Van Houten's cocoa

Where

there are different sizes or weights for the

they may be indicated as follows:

M7DiBiW
M7DiBiW

Grape
"

juice, 4 oz.

"

} pt.

M7D1B1W
M7D2B1W

Department No. 8, handling supplies and

have its goods classified in this way:

Grape

M8DA
M8DB
M8DC
M8DD
M8DE
M8DF
M8DH
M8DK
M8DN

Blank cards

M8DP

Blotting papers
Chairs

M8DR

Erasers

M8DS

and fiUng cabinets

Cardholders

M8DT
M8DU

Inks

M8DW

Blank books

article,

juice, i pt.

"

stationery,

qt.

would

Pens, penholders, and pencils

Desks
Files

"

same

Ribbons, typewriter, and

adding machine
Paste
Tables

Rubber bands
Writing paper, unprinted

SCIENTIFIC

578
It

may

MANAGEMENT

be interesting to set out in detail the

classification of

stock for a shoe department, which for convenience

Department lo. The base sheet will be

we

will call

MioD-A

Athletic

MioD-S

Special

MioD-M
MioD-N

Men's

MioD-W

Women's

Infants'

MioD-M, Men's
MioD-M-H

High

Shoes,

is

subdivided:

MioD-M-L Low

Further subdividing Men's High Shoes, we have the following:

MioD-M-HC

SCIENTIFIC
as great as

when

this

is

MANAGEMENT

usually found in the ordinary systems.

system

is

properly administered,

is

579
The

result,

a complete, accu-

and up-to-date account of the precise condition of the stock

on hand, from which it is easy to deduce the present and probable
When the salesman comes
future demand for each item carried.
in and you want to know what to re-order, and in what quantities,
you can get your answer at once from an inspection of the merrate

chandise sheet for your department or store, without going outWhen you want to know the total value of
side the office for it.

you have to do is to total the values given on

these sheets, and there is no necessity for losing three days'
trade to take an inventory.
In view of the fact that this entire system is administered more
cheaply and easily than any other system that comes even anywhere near giving the same results, the apparent complexity of the
balance sheet itself should not be allowed to have any deterrent
effect on the manager who wants to be in a f>osition to meet
all

stock on hand

all

competition by knowing exactly what he

guessing at it.

is

doing, rather than

by

SCIENTIFIC

MANAGEMENT

IN THE OPERATION OF

RAILROADS
By WILLIAM

J.

CUNNINGHAM

Reprinted by permission of the Quarterly Journal of Economics

The most

striking feature of the recent public hearings before

the Interstate Commerce Commission, in the matter of proposed

increases in freight rates, was the charge of railroad inefficiency.

Mr. Brandeis's clever turn in attacking the railroads in the

quarter where attack was least expected called sharp attention

to the subject of railroad management.
The public was caught
the
dramatic
statement
that
the
railroads could save
instantly by

a million dollars a day through the adoption of a new system of

management, and their lively interest in it was kept

up by newspaper and magazine discussion. In getting at the
truth, the pubUc had little constructive assistance from the railroads, and their disdainful attitude added to the first effect of the
charges. The general impression, therefore, was that the railroads
were needlessly deficient.
It is advisable to examine the charge of inefficiency apart from
It is, perhaps, comthe rate question, which is now settled.^
scientific

prehensible that the railroads, already harried

by

public attack

* In
its decision of February 22, 191 1, on proposed advances of rates by carriers
on official classification territory, the Commission says: " It is difficult to see exactly
what application the Commission can make in this case of this testimony [on scienThe witness who apparently had most to do with originating
tific management].
and applying these methods testified that they were in actual operation in not over

one-tenth of one per cent of

The system
tried

and

is

all the manufacturing establishments of this country.

everywhere in an experimental stage. To some extent it has been
now being tried by our railways. The representatives of railway labor
is

who appeared

before us stated that these methods could not

and should not be

introduced into railway work. Upon this record, we can hardly find that these
methods could be introduced into railroad operations to any considerable extent,
much less can we determine the definite amount of saving which could be made.

We cannot therefore find that these defendants could make good any part of these
actual advances in wages

by the introduction
580

of scientific

management."

SCIENTIFIC
and

MANAGEMENT

and now reproached

suspicion,

581

unjustifiably, as they think,

should be indignant at being presented with a new

Perhaps they may be pardoned for looking on

pill to

it

swallow.

as a quack

But it behooves the student of railway problems to

remedy.
examine the new prescription carefully and, so far as may be,
impartially to inquire whether the railroads have some justification for distrust, to ascertain

as suggested, to indicate
of

any system

may

some

of scientific

if

the extent of waste

is

as great

on the adoption
and
to
management,
suggest what
of the limitations

be learned with profit from

its

It is necessary at the outset that

advocates.

we have a

clear understanding

management. To obtain it,

Mr. Frederick W. Taylor,
consulting engineer, Philadelphia, is acknowledged as the dean
of the efiiciency experts and the originator of the new system.
Mr. Taylor was conspicuously successful in his management of
the Midvale Steel Company, where he was successively laborer,
There his
foreman, superintendent, and general manager.
system was first worked out. In addition, he has also made an
as to

we

what

will

is

meant by

scientific

go at once to headquarters.

international reputation as the inventor of high-sf>eed steel for

metal-cutting tools and drills, an achievement in itself sufficient

to stamp him as a man of remarkable scientific attainments.

The

history of the gradual evolution of his system of shop management, his successful efforts to systematize and conserve labor,

and the experiments in evolving high

sf)eed steel, reads like

romance.'

The fundamental principles of Mr. Taylor's system are definite,

*
and are set forth by him as follows:

^
The writer attende<l Mr. Taylor's several lectures before students in the Graduate School of Business Administration, Harvard University.
He has also seen the
practical application of the new system in the plant of the Tabor Manufacturing

Company

of Philadelphia,

where Mr. H. K. Hathaway, vice-president of the com-

pany, took considerable time and pains to explain it thoroughly. Scientific management has practically revolutionized the work of the establishment.
Before its
introduction there were

more than 100 workmen at the machines and less than 6 men

now

there are 70 workmen in the shop and 30 men in the office and
planning department and the output has been increased over 300%.
^
From a paper read by Mr. Taylor before the American Society of Mechanical
in the office;

Engineers, June, 1903.

Mr. Taylor

is

a former president of the

society.

SCIENTIFIC

582

Each man

First.

MANAGEMENT

in the establishment, high or low, should

This task
daily have a clearly defined task laid out before him.
be
or
should not in the least degree
vague
indefinite, but should
be circumscribed carefully and completely, and should not be
easy to accompfish.

Each man's task should call for a full day's work,

same time, the workman should be given such condiand such apphances as will enable him to accomplish his

Second.

and, at the
tions

task with certainty.

Third.
He should be sure of large

pay when he accomplishes

his task.

When

Fourth.

he

fails

he should be sure that sooner or later

be the loser by it.

When an estabhshment has reached an advanced state of
organization, in many cases a fifth element should be added,

he

will

namely, the task should be made so

difficult that it can only be

man.
a
first
class
accomplished by
Under the first principle, the difference between the Taylor
plan and ordinary practice lies in the very careful study (by
experts with stop watches) of each element in each task, so that

definite information is available as to

how

long

it

should take.

In ordinary practice, the fixing of piece work rates is left to the

judgment of the foreman or piece work specialist, and the rates

Under Mr. Taylor's plan rates are inflexible

are often changed.
unless conditions change.
In the appUcation of the second principle, Mr. Taylor goes
much further than is customary in standardizing tools and
and systematizing the storing and distributand the like. Two unique
features are the planning department and functional foremanship,

machine

accessories,

ing of materials, sharpening of tools,

the latter calling for a corps of specialists, each with a single

function, instead of the military type of organization, under which
the foreman is responsible for the work and discipline of all the

men under him and

ning department

and men

all

workman

is

is

the machines which they use. The plandesigned to take out of the hands of foreman
all

the planning of work and how it is to be done. The

merely to act upon written instructions. To make

SCIENTIFIC

MANAGEMENT

583

work is properly performed, the supervision formerly

divided between the superintendent and foremen is assigned to a
number of persons: (i) the gang boss, who has charge of the prepsure that the

aration of

all

work up

who

the speed boss,

to the time it is set in the machine;

(2)

sees that proper cutting tools are provided

and machines properly operated;

(3)

the inspector,

who

is re-

work; (4) the repair boss, who

sees that the workmen keep their machines clean and properly
oiled
(5) the route clerk, who lays out the exact route by which
sponsible for the quality of the

each piece of work must travel from machine to machine; (6)

the instruction card man, who has charge of making up written instructions for each job; (7) the time and cost clerk, who
prepares accurate cost data; and (8) the shop disciplinarian,
who handles all matters of discipline and adjustment of disputes.

The

foregoing briefly describes

management

what

As a system,

in shops.

is

meant by

its details

scientific

have been well

it is in successful operation in a number of imp)orFor branches of railroad

tant manufacturing establishments.
work outside the shops, however, no definite plan has been worked

developed and

have any experiments been made to determine whether

the principles or details of shop scientific management are suf)erior
to the best practice of well-managed roads in activities outside

out, nor

of the shops.

Mr. Brandeis,
definite.

He

in his brief in the rate controversy, is not so

describes scientific

management

as involving a

careful analysis of each unit, and a comparison of each of the

smallest steps in the process with an ideal of perfect conditions.

The system means, he

be determined what
it shall cost.

the

must
be done, and what

says, that before anything is done, it

shall

be done, how

it shall

Planning in advance, he explains, is the essence of

It affords a stimulus to workmen in the form of

new system.

a higher rate for greater output. It shifts the burdens of management from employee to the management, where they belong.

demands universal preparedness, full and complete records^ and

the ascertainment and application of the best attainable methods,
and it means further that all
practices, tools, and machines;
It

SCIENTIFIC

584
tools,

and

MANAGEMENT

machines, and appliances shall be properly standardized

in perfect condition.

This summation

it goes, but it is incommention

are very important
plete.
and probably are those upon which Mr. Taylor would place
strong emphasis.
Nothing is said about the long time required
for patient and careful study in the introduction of the Taylor

The

system, nor

painstaking

is

admirable so far as

features which

its

fail

to get

delicacy of adjustment, calling for thorough and

There is no reference to the difficulty of

effort.

finding exceptionally skilled experts to specialize in the

of transportation.

small.

The number

new

field

of such experts is exceedingly

These omissions in setting forth the scope and plan of

are of serious consequence, since the public

is only too ready to believe in new treatments, and as a result a
swarm of unqualified or imperfectly qualified " physicians "
is already appearing.
The railroads are continually importuned
scientific

management

to adopt schemes or devices

which

their originators believe will

bring large returns, but which are obviously impractical or are

After
likely to be vitiated in experience by some fatal defect.

experiments of this kind, the railroads are naturally wary

or skeptical.
It is of the greatest importance, both for the railroads and the system of scientific management, that a clear dis-

many

tinction be made between the genuine thing and the poor copy.
Amidst diversity and disagreement of doctors, railroad men,
with large responsibilities, may well hesitate and insist upon

proof before accepting the new doctrine.

To what sources may they turn for this proof

?
Unfortunately,
a convincing demonstration, either affirmatively or negatively,
is yet to be made in railroad operation.
Only in textile mills,

printing and binding concerns, and other manufacturing establishments is there ample proof that scientific management is both
practicable and profitable, that it has increased output and at the

same time decreased cost.

Commerce Commission is

The testimony

before the Interstate

replete with concrete illustrations of

substantially increased net returns, notably in the cases of the
Yale & Towne Company, The Link Belt Company, Tabor

Manufacturing Company, Brighton Mills, and Plimpton Press.

SCIENTIFIC

The only instance of

MANAGEMENT

585

the appUcation of something similar to the

Taylor system in railroad operation is the experiment made on the

Santa Fe Railway in 1904-07 by Mr. HarAtchison, Topeka

&

rington Emerson, president of the Emerson Company of

York, who are standard practice and efficiency engineers.

Emerson

is

New
Mr.

the author of the inspiring book, Efficiency, and an

earnest advocate of advanced methods of securing efficiency.

He has had a wide experience in installing his system in industrial

establishments and has devoted

much

time to developing a plan

The results, as described

particularly adapted to railroad shops.
in articles by the editor of the Engineering Magazine and by Mr.
Emerson himself

in several articles

and

lectures, indicate

on

their

face that the workings of the new system were remarkably sucIn selected items of expense and unusual units of cost,
In one minor item, the maintenance of
large savings are shown.
cessful.

belts, astonishing results

were achieved by more

scientific treat-

ment from workman to purchasing agent.

It will be remembered that Mr. Emerson was the authority for
the statement that the railroads, by the adoption of scientific
management, could save a million dollars a day. While it is not
clear from his testimony before the commission, Mr. Emerson has
stated elsewhere

how he arrived at his estimate of a million a day.*

took the last statistical rep>ort of the Interstate Commerce

Commission and applied to each grade or class of employee and

He

cost of materials the percentage of efficiency obtaining in railroad

operation at this time, according to his observation and judgment.

Thus he
roads at
are but

ascertained

100%

what

efficiency.

60% efficient;

it

would have cost to run

He

all

the

believes, for instance, that

section forces, less than

rail-

shops

50%; stationmen,

to 80%.
Applying the same process and reasoning to the
cost of materials, he estimates, for example, that fuel consumpIt requires an average saving of
tion is but 50% efficient.

60%

approximately 23
day.

If the

% in all items of expense to reach a million per

saving applied only to the accounts specifically

referred to, namely, section forces, shops, fuel,

*

son.

The writer had

and

freight sta-

the pleasure of discussing this subject personally with

Mr. Emer-

SCIENTIFIC

586
tions, it

would be necessary

MANAGEMENT

to reduce each of these

by 50%.

In

either case, the operating ratio must be cut down from 66% to
The result would be also that 310,000 workmen out of a
51 %.

would be dispensed with.

Since this one example of efficiency methods is held up to the
railroads for emulation, it is advisable to call attention to certain
total of 1,500,000

conditions, not emphasized in the descriptions of accomplishments; not with any thought of minimizing the good that was

accomplished while Mr. Emerson was with the Santa Fe, but to
explain why the results of the experiment are not convincing.
In the

first place,

the

new system was introduced

in the Santa

Fe shops just after the collapse of a lengthy strike of machinists.

Shop forces were demoralized and maintenance costs abnormally
high, because of the inevitable employment of incompetent men
to take the place of the strikers.

A return

to

normal conditions,

under any system, would have shown a marked improvement

when results were compared with the former abnormal period.
In the second place, the introduction of high-speed steel for tools
and drilling was coincident with the installation of

for cutting

Mr. Emerson's system, although not one of its distinct or unique

features.
High-speed steel was in general use before that time
in other railroad shops; in fact, railroads were among the first
extensive users of Mr. Taylor's invention.
It is certain that the

Santa Fe would have adopted the new tool steel, as other roads
had already done, even had Mr. Emerson's system not been
adopted. Mr. Taylor's new steel revolutionized the art of cutting
A large part of the
metals and very much reduced shop costs.
Santa Fe saving, therefore, was due as much to high-speed steel

new system of management.

In the third place, Mr. Emerson's usual method of expressing
"
road
the expense of locomotive maintenance is in cost per

as to the

an unusual and misleading average because it

includes the weight of the locomotive as a factor and assumes
It assumes
that the repair cost varies directly with the weight.
that an engine weighing one hundred tons will cost twice as much
unit."

This

is

This assumption is not

true that a heavy engine costs somewhat

to repair as one weighing fifty tons.

entirely incorrect; it is

SCIENTIFIC
more

MANAGEMENT

to maintain than a light one.

But the

587

cost of repairs does

not vary directly with weight. In this case, Mr. Emerson's unit
gave a favorable showing to the new system, because of the pur-

number of new and heavy locomotives during the

two years under his regime. Naturally, the new engines did
not call for the same measure of repair work as the older ones,
which had kept up the cost in the previous period with which the
comparison was made.
chase of a large

first

The unsatisfactory character of the ordinary accounting unit,

cost of repairs per locomotive mile," is recognized.
Yet, with
a knowledge of conditions, it is a better index than the Emerson
"

imit,

most
all

which assumes that cost varies directly with weight. The

reliable indication of cost of maintenance is afforded after

by

the

reports.

"

"

and

"

"

per year
figures in the annual
In the figures tabulated below, comparison is made
per mile

between the Santa Fe and the Union Pacific, running through

similar territory to the north, and also the Southern Pacific,
It will be noted
running through similar territory to the south.
that the Santa Fe costs have been steadily higher since 1903 than

those of either of the

Harriman

lines.

Taking the average

of the

seven-year period following the introduction of the new system

"
"
on the Santa Fe (1904-10), its per mile costs are 20% higher
than the Union Pacific and 14% higher than the Southern Pacific.

COST OF LOCOMOTIVE REPAIRS AND RENEWALS

SCIENTIFIC

588

MANAGEMENT

In his testimony before the Interstate Commerce Commission

referred to the time taken to give a locomotive

Mr. Emerson
shop

repairs.

By

his

system the time was reduced from sixty

To

the uninformed public this would seem a

to thirty days.
But even thirty days is too long.
gratifying accomplishment.

Many

of the railroads

Western,

do

better.

On

the Chicago

for instance, the average is fifteen days.

&

North

In this case

again the improvement is relative only. The final results are no

better than the average of other roads, nor as good as those of
roads which are very well managed.
Since the Santa Fe experiment lacks convincing proof, the
railroad manager must turn to the records of the manufacturing

management is known to be
The impulse of the railroad man, as well

establishments where scientific

eminently successful.

as of the manufacturer,

is to acknowledge the benefits of the

but
to
doubt
that it can be successfully applied
system elsewhere,
to the complex details and difficulties of his business with which

His
the efficiency experts cannot be intimately acquainted.
"
answer usually is, This may work elsewhere, but not in my
But open-minded railroad men, while admitting that
plant."
first

they may be giving a stereotyped objection, and that in the course

some roads may find features of value in the system of
management thus rudely brought to their attention, may neverof years

theless urge with

good reason that especial

difficulties

stand in the

The success of scientific management in commercial undertakings does not in itself prove that the new system would be
The essential differences
equally effective in railroad work.
and
railroads
between
manufacturing establishments must be

way.

borne in mind.

These differences

may

be summarized under

four headings: (i) area and extent of activity; (2) nature of

product or output; (3) relations with the public and the govern-

ment;
(i)

(4) relations

The

with labor unions.

differences in area

and extent

of activity are obvious:

the manufacturing establishment with its concentrated forces

and intensive activity; the railroad with its long lines of com-

munication, scattered units of organization, and extensive range

Railroad forces, spread out thinly over the line,
of action.

SCIENTIFIC

MANAGEMENT

589

work under scant supervision. Section forces, stationmen, signal and repair men, car inspectors and oilers, worktrain and way-freight crews, and many other employees located
in small groups at intervals of two or three miles, must be
left largely to themselves, and their work checked chiefly by
necessarily

inspection.

It is obviously impracticable to afford the constant

such a vital part of the new system.

In a
thousands
of
men
work
in
one
manufacturing plant
may
group of
to
the
not
supervision
buildings, subject
only of gang bosses and
supervision which

is

foremen, but also of

all officers

and owners

of the establishment.

In contrast, compare the one item of section forces. Gangs of six

to ten men are scattered over every section of three to ten miles,
the average being one man per track mile.
This attenuated line
of two or three thousand laborers on a double- track road, say,

from Boston to Chicago, a distance of more than a thousand

miles, could be concentrated on one acre in a textile mill.

With

respect to the nature of product or output, there are

also distinct differences between an industrial establishment
(2)

(such as the Tabor Manufacturing Company), with a uniform

output, and a railroad repair shop, where there is little uniformity
in the work.
The cost of the work in a railroad shop is a small

part of total operating expenses.*

Shop and repair work is
incidental to the main function of producing transportation. The

value or efficiency of railroad shop work depends upon

assists in the safe

and expeditious movement

how

well

of passengers

it

and

cannot be systematized to the same degree as in

manufacturing shops, where the character of the work varies but
It

freight.

Oftentimes, too, it is much more imp)ortant that railroad repair work be done quickly than at the lowest p)ossible cost.
This feature applies particularly to repairs made at the engine
slightly.

houses and outlying car inspection points.

In railroad shops which carry on the manufacture (as well as
the repair) of locomotives and cars, it would be practicable to

adopt a large part of Mr. Taylor's system. But such shops are
The great majority of the railroads
relatively few in number.
'

The

expenses.

cost of maintaining locomotives

and cars averages about 18%

of operating

SCIENTIFIC

59P

MANAGEMENT

find it cheaper to purchase their rolling stock, because the best

use of the railroad shops and the mechanical department organization is to maintain, not to manufacture.
It has been found
that they cannot compete on even terms with an industrial concern which specializes in manufacture.
(3) Quite apparent, also, are the dissimilarities between railroads and private concerns in their relations to the public and
A railroad is a public service
governmental regulating bodies.

The public rightfully demands that adequacy of

corporation.
service shall outrank the payment of dividends.
manufactur-

ing establishment exists solely for profits. If it ceases to be profitable, it may close its doors or change the nature of its business.

The operation of an unprofitable road must

functions, public service
service to favor profits.

and

profit

continue.

making;

may

it

It has

two

not neglect

Necessarily, therefore, methods are

in the interest of public service even though they in-

employed
volve economic loss, and would not be resorted to if railroads
were operated as private industries.
For example, paralleUng lines, trolley competition, or other
changed conditions

may make

certain divisions, branches, or

yet satisfactory service must be continued,

with little thought of returns.
The losses from such divisions,
branches, or trains are perforce absorbed in the earnings of the
trains unprofitable;

which are better patronized.

Again, the demand for
and
of
movement
regular
freight often results in cars
prompt
trains

being moved with a light load. If they were held for a full load,
the regularity of the service would suffer. As a result only onethird of the capacity of freight cars

is utilized.^

In other ways

economies in railroad operation could be brought about at the

expense of the service; but these are desired neither by the railroads nor the shippers.

The effect of governmental regulation is much more apparent

in railroad operation than in private industries, and, while both
Mr.
proper and desirable, it adds to the cost of operation.

Howard

Elliott,

president of the Northern Pacific Railway,

*
The average capacity of freight cars in the United States
age ton miles per loaded car mile is 19.3.

is

35 tons.

The aver-

SCIENTIFIC

MANAGEMENT

59 1

^
stated that the cost to the railroads of the United
recently
States for board and commission control amounts to $85 per mile

of road per

annum, an aggregate

affects nearly

of $20,ooo,cxx).

every detail of operation.

This regulation

Though

justified

by

public policy, and apparently necessary to keep all the raikoads

up to a standaid which the well managed might adopt without
governmental requirement, it has an important bearing on any
comparison which may be made between railroads and manufacturing estabhshments not so circumscribed.
For the safety of trains, again, every precaution must be taken
to avoid accident.
Methods which might reduce costs but which
also add to the element of risk are necessarily barred. For
that reason certain classes of work are performed under day
rates rather than by piece work.
It is more important to have

would

the task well done than to

make a

slight saving in cost.

accident as the result of such apparent

savings of a long time.

economy would

One

offset the

Perhaps the greatest barrier to the introduction of any

system designed to accomplish savings which will diminish the
(4)

number

of employees is the labor organization.

Practically
of
railroad
branch
the
service
is
every
strongly organized and
The
manufacturer
has
his
labor
militant.
problem also; but he

can close down his plant or lock out his

railroads, resistance to

able

men

if

he sees

demands considered by them

fit.

With

as unreason-

must not be allowed unduly to affect service. Trains must

cost, and if men cannot be had to take the

be kept moving at any

place of striking employees, or if, before a strike is declared, it

is plain that resistance is useless,* the company must make the

and maintain peace.

Any system or contrivance which has for its object the creation
of competition among workmen, or which will cause them to

best terms

it

can,

exert themselves,

is

repugnant in principle to labor leaders.

direct result, as they see

^

it, is

to

"

speed up," and

Its

to lessen the

Address before the Minnesota Federation of Commercial Clubs, January-

ad, 1911.
*

This was the situation a year ago on the Baltimore

New York

Central roads.

& Ohio,

Lackawanna, and

MANAGEMENT

SCIENTIFIC

592
number

of workmen.
Their attitude is indicated by the strong
opposition of the Brotherhood of Locomotive Engineers to the
introduction of the Mallet compound locomotive.
This type of

machine is capable of handling very much heavier trains, but calls

for no more effort and very little additional skill on the part of

The organization held out strongly for double

the engineman.
on
the
pay,
theory that the Mallet engine does twice the work of
an ordinary engine and, if ordinary engines were used instead,
double the number of enginemen would be necessary. The issue
came near precipitating a strike on all the western lines last fall,
but was finally settled by mediation under the Erdman Act, the
enginemen receiving a bonus of $i per day over the highest
This settleexisting rate, instead of double pay as demanded.
will hardly be permanent.
Opposition will
the
continue
and
will
probably
question
undoubtedly cause
friction in future negotiations between the railroads and their

ment, however,

enginemen.

Of similar significance are the organized efforts of conductors

and trainmen to prohibit double-heading. By this is meant the
practice of running two engines on a freight train so as to increase
The resulting decrease in the number of trains and
its length.
the consequent smaller

number

of train crews are

opposed by the

men.

The year 1910 saw

plan to

"

yardmen

the successful culmination of an ambitious

standardize

"

the wages of conductors, trainmen, and

is, to set a uniform rate per

in the eastern states, that

day, per hour, or per mile for each class of service, regardless of
The road with the highest wage scale (the
local conditions.^
Baltimore & Ohio) was selected as the battle ground, and the
entire forces of the train-service brotherhoods focussed

in a

demand

for

new and unreasonably high

strike, the railroad

(under the
rates

Erdman

rates.

upon

it

To prevent

invoked the aid of the Board of Mediation

Act),

and the award, while not granting the

demanded, carried with

it

substantial increases over rates

already considerably higher than those of other roads in the East

"
See a paper by the present writer on
Standardizing the Wages of Railroad
Trainmen," Qttarterly Journal of Economics, November, 1910.
^

SCIENTIFIC

MANAGEMENT

593

with distinctly different operating characteristics. The new basis

was then in turn forced upon practically every road in eastern

New England averaged between

some cases exceeded 50%. At the same
time long-standing differentials between different grades of
The

territory.

increases in

20% and 30% and

in

employees were seriously disturbed.

Throughout, the new wage

basis and working rules (prescribed partly by governmental

mediation) are far from scientific or equitable.

At this writing (April, 191 1) the boiler makers of the New York
Central lines have been on strike for ten weeks because of the
introduction of piece work rates at Collin wood, Ohio, on the Lake
Shore Railway.
Undoubtedly, former abuses of the piece work
basis have much to do with the determined opp>osition to its

Yet the same opposition would probhad been the Emerson bonus plan used

introduction in this case.

ably have occurred if

on the Santa Fe. In
in railroad service

is

it

head of the strongest organization

as
having said that the bonus system
reported
fact, the

and his organization could not exist together on any railroad.*

These difficulties, serious as they are, may be met by experts.
But the railroad man sees no definite plan for the application of
"
the new
principles "; and he has a fondness for the concrete.
After studying scientific management as applied to shops he
realizes that when similar efforts are made to extend it to the

and expert study will be

and
modifications
of the system
and
new
needed,
unsuspected
the
conditions
of
made
to
meet
must be
exacting
railroading.
whole

The

line of railroad operation, long

technical record of railroads in the United States

is

credit-

They have had to meet exceptional difficulties. In their

to keep pace with the conmiercial development of the

able.
effort

country, a policy of expediency has in many cases justified

standards of construction, maintenance, and operation which
would have been considered faulty in an older country, like England,

whose railroads came

many

deficiencies

Warren

S.

not before, her industrial growth

two or three decades

in the past

have been corrected and the work of eliminat-

ing other imperfections

^

after,

But

and dense population.

is

progressing.

Stone before the National Civic Federation, January

12, 191 1.

SCIENTIFIC

594

MANAGEMENT

In the interest of a clearer understanding of the situation by the

public, it would have been worth while for the railroads to offer

more

of constructive evidence to

show that although

scientific

management, as a system, has not been adopted by them, yet the

principles of sound business management have free play in a
large number of shops and other railroad operating activities.
from being ignorant as to costs, many roads have statistical
departments which compile and disseminate information upon
every detail of operation, so that each unit of efficiency may be
So

far

compared with other

sion,

units, or

with the same unit of another divi-

Instead of being out

another railroad, or another period.
in shop practice,
behind
the
time
or
shop equipment,

of date in

they are, on the average, in advance of manufacturing establishments. They might have shown further that railroads, while far

from perfect, are constantly improving in efficiency; that rail"

"
school and those
practical
officers, both of the so-called

road

and technical schools, are earnest

incentive
to operate economically.
have
and
in their effort
ample
Railroads believe in and practise the free and frequent exchange
of ideas by associations and clubs which include every branch of

who

are graduates of colleges

the service.

In

fact,

they are unique in having so few secrets

concerning operating methods, and in their willingness to

hear about, and profit by their mutual experiences.

tell of,

work -of one association, witness the

Car
Efficiency Committee of the American
monthly
The
statistical exhibit, showing every
Association.
Railway
detail of operation and revenue connected with freight movement

As an

illustration of the

reports of the

is a convincing example of the

with
which
such information is compiled
thoroughness
benefit.
for
mutual
and distributed
Every department has its
As other instances,
association doing similarly scientific work.

on every railroad

in the country,

scientific

take the Railway Engineering Association and its careful studies

and experiments in perfecting rail design and cross-tie preservation; the Master Car Builders' Association and its exhaustive
tests of air-brake apparatus; the Master Mechanics' Association
and its painstaking efforts to evolve a perfect super-heater and

SCIENTIFIC

MANAGEMENT

595

mechanical stoker; and the Railway Signal Association and

its

thoroughgoing work

There

may

of standardizing the art of signaling.

be ground for the impression that railroads are in a

an attitude of self-sufficiency, that is, a

little from the experience or ideas of
Yet that this is not altogether
those outside the railroad circle.
railroads
not
only welcome but seek assistance
true, and that the
class

by themselves

belief that

in

they can learn

from outside experts, is shown by the establishment of the

This bureau was organized under the
Bureau of Explosives.
American
of
the
Railway Association about five years
auspices
Dunn
of
the
ordnance department of the United
ago by Colonel
States army, working closely in conjunction with the late Dr.
Dudley (then chief chemist of the Pennsylvania Railroad) and a

committee of other railroad officers from different sections of the

The American Railway Association realized that they
country.
did not have a man within their ranks with the same wide knowledge of the characteristics of explosives and the best manner of
handling them, and were glad to secure Colonel Dunn's valuable
services.

He

has accomplished

much

in organizing a

system and

formulating rules of inspection which have reduced to a very

large extent the accidents formerly frequent in the transportation
of this dangerous class of freight.
In the committee work of the Railway Engineering Association,

Master Car Builders, Master Mechanics, Signal Engineers, and

other railroad technical associations, the cooperation and active
There are eleven uniassistance of outside experts is sought.
versity professors on the various committees of the Railway
In the acdve work of the railroad
Engineering Association.

mechanical associations there are as

Goss of the University of

versity of Missouri,

Illinois,

many

more, notably

Dean

Professor Hibbard of the Uni-

and Professor Benjamin

of

Purdue Univer-

sity.

man, knowing how keen is the anxiety of his proimprovement and vigilance, has been and is proud of
He believes that railthe achievements of American railroads.

The

railroad

fession for

is higher than the average in manufacturing

establishments, and can hold its own with any line of enterprise

road efficiency

SCIENTIFIC

596

He

in the United States.

MANAGEMENT

thinks, too, that in the recent rate

hearings the railroads should have been measured not with the
He
exceptional industrial establishment, but with the average.

none better than

recognizes,

he, the existing deficiencies in rail-

road management; but that they are greater or more flagrant

The
than those in other large undertakings he will not admit.

extended area of railroad activity and the problem of adequate

supervision
materials.

make it diflScult to secure high efficiency and use of

The tendency of labor union policy is increasingly

trammel the manager. He is also hampered by the difficulty

of securing competent men in supervisory positions.
Expert
to
out
losses
and
is
not
inefficiencies.
point
required
knowledge
to

are apparent.

They

But

criticism should be

accompanied by

practical remedial suggestions.

The history of American railways shows that their progress
has been steady and substantial.
comparison of any two

periods ten years apart will reveal impressive increases in effiThe net train load, for example, has increased nearly
ciency.
Such advances in nearly
fifty per cent in the last ten years.
of
have
been
the
result
case
development and improvement
every
of existing

been

methods and

The new and improved have

judging by this steady

facilities.

And

the adaptation of the old.

improvement

in the past, it

may

be expected to continue in the

future.

solution of the problem of how to effect further economies

yet maintain good service seems to lie in a more rigid applica-

The
and

tion of the railroad's

own kind

of scientific

management and a

continuation and enlargement of the best practices of the best

railroads, so that the operating results of the least economical
those whose efficiency is marked, and these in turn
new system is not needed so
and higher standards.

may approach

new
much as a more
set

determined, and a more general application of the

sound and business-like methods which have already been found

effective in railroad work.

After all, there is little essential difference between the aims

and accomplishments of scientific management as advocated by
the new experts and scientific management as practised by the

SCIENTIFIC

MANAGEMENT

597

As a system,

it means a
and analysis of each element of operation, and the
application of the methods best adapted to bring about the best
results under the given conditions.
Many railroads are doing

exceptionally well-managed railroads.

careful study

this successfully;

others are doing

it

in part.

In the nature of

things, however, their efforts have been directed more to the

"
"
or to those features of operation which are most
high spots

in need of correction or which promise the largest or quickest

returns.
Scientific management, as a system, takes a broader

view and requires that the same careful study and treatment be
given to every detail of operation as
of train loading.

unprofitable,

is given, say, to the subject

a point where this would be
is
there
Obviously,
where the cost of the system would exceed the

saving.

The real difference, then, between the efficiency experts and

the railroads in their conception of scientific management is not
in kind but in degree.
To find a common ground means mutual
concessions.
less stress

On
"

the part of the efficiency expert

"
"

it will

require

"

upon system," principles," dependent sequences

it will require more knowledge of the practical problems of railroads, more respect for what the railroads have accomplished, and
less exaggeration and generalization concerning waste and possible
On the part of the railroad a more receptive attitude is
savings.
needed for suggestions from the outside and a recognition of the
fact that, notwithstanding commendable progress in operating
economies, much yet remains to be accomplished.
Among the imp)ortant features of Mr. Taylor's system of shop
management, the principle of time study might well become a
part of the practice of any railroad shop with a piece work basis.
The piece work schedules of today are generally an evolution
"
"
cut and try
methods.
Their defects are recognized.
from

Mr. Taylor's second principle, of standardized conditions, is

equally important, and many railroad shops come reasonably
close to standard practice.

But apart from shop operation, other and greater avenues of

economy are being earnestly studied. The delays and red-tape

SCIENTIFIC

598

MANAGEMENT

obstructive to local initiative,^ will yield to some plan of decentralizing authority, such as is now being tried on the Harriman
lines.
There are undoubted economies in further standardizing

equipment and materials, as well as in improved methods of

There is promise of economy
storing and distributing supplies.
of

in the experiments now being made by the American Railway

Association in clearing-house accounting for joint use of cars.

substantial saving in fuel

tion of the

And

methods

may

be made by a more general adop-

of the roads having the best fuel records.

throughout the service there

is

crying need for more and

better supervision.

Better supervision calls for better men, and to that end the
educational activities of the railroads should have wider scope and

more

effective organization.*

needed so much as managers.

as the man.

system of management is not

is not as important

The system

good system will not altogether save a poor

manager, nor will an imperfect system altogether hold back one
who is ambitious and able. Mr. Taylor himself recognizes this
"

the first object of any good system must be

^
that of developing first class men."
Except in the important particulars of time study and functional foremanship, the system advocated by the experts and the

in his statement,

Mentioned by W. M. Acworth, the English economist, as a defect in American

In the same statement, made on the eve of his departure

railroad organization.

February ist last, he expressed surprise that the newspapers should give so much
In his opinion American railroads are the
space to criticism of railroad efiiciency.
most efficient in the world. He believes that the skeletons in the railroad cupboards
"
have all been buried and that now the roads would do well to open their cupboards

how sweet and dean they are."

Eaton, in Education for Efficiency in Railroad Service (1909),
"
In the course of railroad development, there was a first era, which was the
says:
era of railroad building.
Any railroad was better than a wagon road. There was
and

let the

'

J.

public see

Shirley

next an era of coordination of the railroad service and finance to the commercial and
financial conditions as

a whole with which the railroads were called upon to

deal.

organization and railroad consolidation. Next came

the era of internal adjustment on the physical and mechanical side
perfection of
machinery, cutting down grades, strengthening bridges, increasing the train unit.

This was the time of the

And now

traffic

has come the sociological adjustment.

quite as vital as the steel

creasing the income."
is

'

and wooden part

American Magazine, March, 191 1,

p. 570.

The human

part of the machine

in producing efficiency,

and so

in in-

SCIENTIFIC

MANAGEMENT

599

system practised by the railroads are not very far apart. Both
have for their object that which is desired by the railroads and

ability to give good, safe, and economical service.

achieved either by an improvement of present methods,
or by an adaptation of the new system, private management of
railways will have strengthened its claim to continuance.

the public,

And

if

THE APPLICATION OF SCIENTIFIC MANAGEMENT

TO A RAILWAY SHOP
By H.

STIMPSON

F.

Reprinted by pennission of the Railway Age Gazette

The

object of any legitimate organized enterprise is to serve

A railway company is an
beneficially the entire community.
In order that the effort may be sucinstance of such an effort.

which the shop

but one, must be intelligently coordinated and directed toward
This is scientific management.
To this end
the common end.
cessful the efforts of all its constituent parts, of

is

it is

necessary:

(a)

To determine

the present and estimate the future oppor-

tunities for service.

(b)

To

determine the material, equipment, energy and admin-

methods which are necessary

istrative

for the

performance of the

service.
(c)

(d)

To procure the requisite capital.

To make proper records of the

ensuing operations and

transactions.

The immediate duty of that part of the railway organization

which operates its shops is to fabricate or keep in repair that
portion of the equipment by which the service to the community
The shop organization is, therefore, neither
is directly rendered.
a beginning nor an ending; it is but a portion of one of the
principal

intermediaries

the

operating

department.

The

volume
dependent on the volume of
shop operations
traffic
the business developed by the
department, and is largely
affected by the efficiency with which the train crews, etc., handle
of the

is

The resources at
the equipment with which they are entrusted.
from the
are
derived
the
of
command
the
shop organization
the
affected
are
also
and
financial department
efficiency
largely
by
with which the operating equipment

The shop

organization, therefore,

sidered as a separate entity.

is
is

handled.

not and cannot be con-

This must be taken into account

600

SCIENTIFIC
in considering

of

shop management.

6oi
In any

line

The position which

starting point.
Interstate
its
Commerce
Commission,
community, through

of reasoning

the

any question

MANAGEMENT

we must have a

has recently assumed regarding an increase of rates, goes to

show that the

present, or lower, instead of the higher rates

must

While the charge against new

be taken as being such a point.
construction is a charge against capital account, the interest on
this as well as the cost of repairs on both transportation and
shop equipment becomes an overhead charge on the direct cost of
If then the rates are fixed, it is desirable that
transportation.

both the amount and cost of

shop operations be reduced to the

lowest possible terms in order to reduce the overhead charge on
all

the direct cost of transportation.

Any waste here or in any other contingent operations will
either increase the cost or decrease the quantity or quality of

the service rendered to the community, of which each of the

is a part, whereas the attainment of a high state of
efficiency should result in a decrease in cost or an increase of

workers

the quantity or quality of the service, thus benefiting the comThe interests of the community as a whole, of the
munity.
stockholders as such, and of the workers as such are, therefore,
identical.

If the operation of the railway results in

protection to
industrial or

any

of these interests, it will

over or under

be because either the

commercial management has been inadequate.

If the industrial management has failed, the actual cost of proIf the
duction will be found to have been unduly increased.
commercial management has failed, the profits will be found to
have been improperly divided between worker, stockholder and

community.
Because the shop organization is, as has been said, neither a
beginning nor an ending, but simply a part of an intermediary,
it is as unwise to attempt the immediate and exclusive application of the principles of scientific management to such organizamust
tion as it would be to develop one leg of a horse.

We

consider both the things which precede and the things which
For instance; I was told, with much
follow its operations.
pride,

by a shop manager

of the

number

of locomotives

which

6o2

SCIENTIFIC

MANAGEMENT

came out of his shop each month. This was not of much imporThe important thing was the time which each locomotive
had been withdrawn from service. I was perfectly convinced
from what I saw, being accustomed to observe such things and
to draw correct deductions therefrom, that, if a chart had been
tance.

made showing

the chronological durations and relations of the

actual operations performed, it would have been found that not
only were there large wastes of time in the performance of the
individual operations, but between them.
Not the least evidence of this condition was the difficulty the executives had in

comprehending the possibihty of such a thing. They were not

interested in searching for a remedy for a disease which they
did not believe existed.
Here we have a diminution of earning

power co-existent with the increased cost of repairs, both of

which add to the overhead charge, thus burning the candle at
both ends.

To

we must first have complete

what should have and could have
taken place (standards), as well as of what has taken place
Liberal expenditures of both time and money are
(records).
arrive at correct conclusions,

and accurate statements

as to

necessary in order to obtain these, but these expenditures are

insignificant when compared with the savings which should
result

from their

use.

Taking the maintenance side of the question, the first step

should be to separate the process of deterioration of the direct
operating equipment into the preventable and the unpreventable
factors; second, to determine the actual and necessary rate of
each; third, the causes of each; fourth, the remedies for each

We

have now determined the necessary gross

so far as possible.
rate and volume of repair work which should come into the
From an analysis of this we can determine the unit
shop.
operations together with the material, equipment and energy
and administrative methods which are necessary for their perScientific management, so far as the shop is conformance.
cerned,

is

the process of properly supplying these essentials and

of directing their use.

MANAGEMENT

SCIENTIFIC

The

first

Certain material

essential is material.

603
is

fairly-

Other
standard as to quality and the rate of consumption.
In
either
in
both respects.
material is more irregular
case, as
the result of the above analysis, the exact date of delivery to the
shop can be and should be fixed both specifically and in detail by
a person who is in a position to grasp the entire chain of operations in which the one involving the use of any bit of material is
link.
While this work is often delegated to or attempted
or other person immediately engaged in the perforeman
a
by
formance of manual operations, it is evident that such a course
Not only is the foreman unable to grasp correctly
is illogical.

but a

the entire situation, but the

which he establishes

will

ill

be

any erroneous sequence

throughout the entire organ-

effects of

felt

ization.

Having been given the desired date

of delivery to the shop, the

storekeeper should set a date for delivery to himself which is

sufficiently in advance to admit of the necessary examination,

The order should then go to the

been
instructed as to the quality of
Having
purchasing agent.
the commodities and the date at which they must be delivered to
checking up and redelivery.

the storekeeper, the only variables in the operations of the purIt should be possible to
chasing agent are price and time.

upon the basis of a compound unit comThus a high price would be comand days.

establish his efficiency

posed of dollars

pensated for by the saving in the productive time of the operating

unit, which could be effected by a quick repair resulting from a
quick delivery.
The next essential
fashioned, or the

is

the equipment

work

i)erformed.
which interest

by which the material is

Equipment represents a
and depreciation must be

capital investment upon

It is therefore desirable to use the smallest possible
earned.

when operated to its fullest legitimate capaThis condiof work can be produced.
amount
the
desired
city,
tion is not often as closely approached as should be the case.
quantity by which,

Here again we must use compound units to measure results. The

cost of interest and depreciation on the machine, the time of
op>eration and the cost of power must all be taken into account.

SCIENTIFIC

6o4
It

is

MANAGEMENT

conceivable that a quick acting machine might be so costly

and to drive as to be far excelled by a slower machine

to maintain

which besides being far cheaper took less power to drive. Details
of past accomplishments and the opinions of men and foremen
in such matters are extremely unsafe and unsatisfactory as
guides

when

things

by

contrasted with the cool scientific analysis of the

efficiency engineer of the results which it is mechanically possible
to achieve.
There is, furthermore, a curious tendency to do
halves, to utilize highly developed mechanical energy

and appliances for a part of an operation and the crudest kind

of methods for the rest.
I have seen, in a railway shop, a highly
for
developed press
forming boiler heads, operated by hydraulic

The

controlling valves, instead of being operated by

mechanical energy through a secondary system of cylinders and
pistons, were operated by human physical energy, applied slowly
pressure.

and painfully through levers. The same thing was true of the
work of prying the heads from the dies where they often stuck.
Boiler sheets were lifted and lowered over the jaw of a riveter
by an expensive crane which was needlessly tied up on the job.
The crane should have transferred its burden to a stationary
at a slow rate of speed, rotated the shell when
vertical, power driven drum,
rivetting the transverse seams.
cable-connected to the shell, should have done the trick more
hoist.

Man,

cheaply and quickly.

These wastes clearly demonstrate the

on
men
depending
immediately engaged in the direction
manual or mechanical operations for the evolution of operative

fallacy of
of

methods.

The

third essential

physical,
origin;

which

may

energy, of which there are two types

be either of mechanical, animal or human
is

and mental, which

is

of

both superhuman and

human

the latter variety alone being under consideration at

Human physical energy is essential to the control of
present.
origin,

Human mental energy is

either mechanical or animal energy.
essential to the direction of all types of physical energy.
Working back from the equipment, on one

side

we

find in

series, the tool, the generator, the engine, the boiler and the coal,
which is one of the chief sources, terrestrially speaking, of me-

SCIENTIFIC

MANAGEMENT

605

The boiler, engine, generator and motor are

chanical energy.
only the means whereby the latent energy in the coal is transformed, transmitted and applied to the tool.
Controlling the
we find the body of the man actuated by his mind which is

tool

Working back from the mind of the man, we find

that it is at the end of a series composed of the minds of the foremen, superintendents, general manager, president, executive comThe wish in the
mittee, board of directors and stockholders.
minds of the stockholders that a railway shall be operated for the
his motor.

purpose of making money is the real latent energy which, transformed and transmitted through the whole human organization
finally reaches and is applied to the mind of the worker and causes
him, by means of his physical energy, to put the mechanical
If the various appliances by which the
energy into operation.

energy in the coal

is

transmitted to the tool are not suited to the

end in view or are not properly connected, the result will be disIt is even more true in the human machine or
appointing.
organization that there

must be a

sufficiency of adequate

mind

A
properly connected, to insure satisfactory results.
motor cannot be energized through a lightning rod by occasional
units,

It must receive a continuous supply through

connections
from
an adequate generator backed by coal
proper
of high thermal qualities.
Similarly a man must receive a con-

flashes of lightning.

tinuous supply of mental energy through a proper organization

from a competent executive backed by energetic stockholders.
As we have seen, the railway shop is but a part of one of the
principal divisions of a railway organization.

In a well-designed

power plant there must be a principal steam drum main into

which all the boilers discharge and from which all engines draw
This steam drum may be compared to the
the necessary steam.
chief executive officer.
is

The

title of

president, usually employed,

and not executive in its

incorrect, being purely parliamentary

better term would be general manager, as expressing

universal control of the operating organization.
The departmental managers, which are the heads of the principal divisions,

nature.

may

be compared to the generating

sets

by which the energy.

6o6

SCIENTIFIC

focused

MANAGEMENT

the general manager,

is

applied to the various phases

of the business.

In a power plant, however, but little in the nature of a refining

operation, except a certain amount of drying, is applied to the

steam in the drum.

In the case of the

The

volume

increase in the

especially, has

been so rapid that

impossible for the general

human steam it is different.

of ascertained fact, in recent years

it is

manager

physically and mentally

of a great railway or other

industrial enterprise to acquire a complete acquaintance with

that which pertains to his line of work.
To overcome this

two general methods have been pursued, sometimes

The first method is
separately and sometimes in combination.
difficulty,

to require each member of the organization to absorb such new

information as pertains to his particular work.
This is not
advisable because it requires a man to carry on, simultaneously,
two radically different hnes of thought which require different

conditions and equipment for their operation.

Productive and

and the same

method is to attach

investigative operations cannot be conducted at one

time with mutual advantage.

The

second'

certain speciahsts, or energizers, to various parts of the organization to perform the investigative portion of the work.
This is

an improvement, but

it fails

of this disjointed advice

tion has not

application.

of entire success because the effect

on the other

divisions of the organiza-

and cannot be properly digested

It is only

when

in

advance

of its

these specialists are entirely withinto sec-

drawn from the operating organization and separated

above alluded to, and put

under
the
control
of
the
directly
general manager that success
tions corresponding to the divisions

will

attend their

efforts.

mental energy in the form of a direction or

standard practice instruction is to be applied, it will have been
considered from every possible standpoint; it will have received

When,

the

final

and may

therefore,

consideration of the chief executive, as to generalities,

be fairly depended upon to produce the desired results.

In applying this theory the result would be the gradual withdrawal of the more able men from the directly operative work
to the advisory work, their abilities being replaced

by

carefully

SCIENTIFIC

607

This would open up a line of promotion

The result
does not now exist.

prepared instructions.
to the operating

MANAGEMENT

men which

would be a development of workers,

first

into the administrative

positions under carefully formulated instructions, and finally into

The
positions on the staff which formulates these instructions.

would not be by any means an

entire addition to the present operating cost, for most of the
men are, at present, doing such work, but in the wrong place and
under the wrong directions.
Any additional cost which ought
to eventuate would be many times regained from the increased
expense of mairtaining this

staff

efficiency of the great

of workers.

The

army

fourth essential

is

the administrative methods

by which

proper directions for the utilization of material, equipment and

energy are transmitted to the various units of which the organization

is

composed, and proper records are secured as to the

Both of these things are equally necessary for

the comparisons which are essential to the successful control of

results obtained.

any

business.

The

line of the

outward flow

of the directions

must be

care-

fully determined, in great detail, so that all units will receive their

proper share of the directions in the proper sequence.

The

experience necessary to lay down these lines is, contrary to the

common belief, quite distinct from that necessary to pass upon

The phases of all such

the subject matter of the directions.
much alike, as are the principal phases of all
This is almost incomprehensible to those whose
organizations.
directions are

been that of the subject matter, but it is neverspecialist in this work, therefore, finds much
in devising a proper routine for almost any business

chief study has

theless true.
less difficulty

The

than the specialist in any one line would find in devising a routine
The two lines
for the business with which he is most familiar.

work are separate. The machinist can make a better typewriting machine than can the stenographer; though, being unable
to compose the letters which are to be written upon it, he is
unable to operate the machine to advantage after its completion.
This the stenographer can do even though he is unable to construct the machine itself.
of

6o8

The

SCIENTIFIC
inward flow

line of

MANAGEMENT

of the records

must carefully parallel

The maxim should

that of the outward flow of the standards.

Because
be a standard for and a record of every operation.
frantic attempts have been made to deduce information from
records alone, which it is impossible to get except from a comparison of records with standards, most concerns are loaded up
It is quite
with a vast amount of unproductive bookkeeping.
possible to gather, at a large expense, masses of figures which
never become of the slightest use, and to leave ungathered much

Hence the correct correlation

of extreme value.
and records is of the highest importance.
Both standards and records, however, fail to be of use unless

data which

is

of standards

by the various members of the organization,

Of what use would be the most
the chief executives.

diligently studied

especially
careful observations

and plotting by the navigators of a ship if

the captain did not digest the information and act accordingly ?
When the information has been put into proper form, the work
For this reason the data
of using it has not been even begun.
should reach each administrator in such shape that only the
problems suited to his rank will be presented to him for his solution, thus

economizing his energy.

In closing this very brief discussion of the principles which

should guide the application of scientific management to the rail-

way shop and

also, as is absolutely essential, to the entire organi-

zation, a word

may

be in order as to the characteristics of the

and the part which he should play. Such an

engineer should be a corporation, or other aggregation of individuals, coordinated under a competent head and having

efiiciency engineer

members

individuals able to advise in every form of

administrative detail, both commercial, disciplinary and techni-

among

its

No single individual can possibly have acquired the necesof experience which is necessary in order to properly
breadth
sary
Such an engineer
handle directly all the detail of this work.
cal.

should not under any consideration, attempt to do constructive

work with his own men. He may and should employ such men
for his investigations,

udiced.

He

should lay

which should be impartial and unprejthe entire form of the organization

down

SCIENTIFIC

MANAGEMENT

609

He should
leaving the railway oflScials to fill them.
revise the present routine and the forms which insure its operation, and make such specific recommendations as are necessary

by

office^,

to bring about the desired condition.

He

should suggest the

order of changes and promotions, but not pass upon the ability
He should, directly
of the individuals to be affected by them.
or through trusted subordinates, give such explanations of new
methods as are necessary for the proper understanding thereof,
He should conduct such a
to any individual needing them.

process of friendly inspection, from the president down, as will

determine, until the natural checks get into full operation, that
the administrative operations are being properly performed.

This work
plishment.

take several years in any railway for its accomOnly

Large results will not be seen unmediately.
will

from all
patient and persistent effort and honest cooperation
these
Given
them.
concerned will eventually produce
things,
the results are sure to follow.

THE RAILWAYS AND SCIENTIFIC MANAGEMENT

Reprinted by permission of Engineering and Contracting

Engineers and the public in general have become reasonably

familiar through the daily papers with the novel line of reasoning
offered by Mr. Louis D. Brandeis against the proposed increase
in railway freight rates, permission for which was recently refused

by

the Interstate Commerce, Commission.

Mr. Brandeis con-

tended that by applying the principle of scientific management it

would be possible for American railways to save a million dollars

a day in operating expense, and he produced expert witnesses to

show the possibihty of such a saving. While the Interstate
Commerce Commission has decided adversely to the railways,
the commission was not influenced by the testimony and arguments offered by Mr. Brandeis, nor is this to be wondered at.

We

quote from the text of the commission's ruling:

however, earnestly insisted by the shippers that the railroad might

find other kinds of economies with which to make good this
increase in wages.
Several prominent manufacturers testified that in their
business in recent years wages had been advanced, but they had not been
able to make corresponding advances in the price of their product, and were
therefore forced to look about for other ways in which to take up the increase
It was,

and should

in the cost of production.

It was claimed that by the introduction of

what was termed

"

scientific

management," the purpose of which was in various ways to make labor more
efficient, at the same time increasing the wage paid the laborer himself,

much more than the amount of these advances could be

One gentleman who described these methods testified

saved.

that they had been

introduced to some extent into the operations of railways with remarkable

results, and that from a careful analysis and computation he was satisfied
that not less than $300,000,000 annually could be saved by the proper
application of these methods to the business of railroading in the United
States.

what application the commission can make in

The witness who apparently had most to do
with the originating and applying of these methods testified that they were
It is difficult to see exactly

this case of this testimony.

in actual operation in not over one-tenth of i per cent of all the manufacturThe system is everywhere in an experiing establishments of this country.
mental stage. To some extent it has been tried, and is now being tried by
6zo

SCIENTIFIC

MANAGEMENT

6ll

The representative of railway labor who appeared before

bur railways.
us stated that these methods could not and should not be introduced into
railway work.
Upon this record we can hardly find that these methods could be introduced into railroad operations to any considerable extent, much less can we
determine the definite amount of saving which could be made. We cannot,
therefore, find that these defendants could make good any part of these
actual advances
wages by the introduction of scientific management.

The weakness of the testimony given by the experts whom Mr.

summoned is found mainly in the fact that few of

Brandeis had

them had ever done any railway work at all, and the one or two
who had been engaged on efficiency engineering by railways
"
But our
seemed to be unable to cite many
repeat orders."
readers should not let this fact influence their judgment, although
There are
necessarily had weight with the commission.

it

engineers known to the editors of this journal, and among them

are editors of this journal, who, for years past and right now, are

applying the principles of modem scientific management to railway operation with success. Obviously certain of these engineers

would not appear as witnesses against the railways in a rate case

The
if they could, and some of them couldn't if they would.
The former feel
latter would lose their positions if they did.
that, while it

reduced by

is

a fact that railway operating costs can be greatly

management, it is not logical nor fair to

scientific

an argument against the advance of railway rates

would be equally reasonable to demand a lowering of
the price of every manufactured product in the world on the
ground that it is possible to reduce the unit cost of every product.
We who have knowledge of the great, and often astounding,
economies that have been effected by scientific management also
have knowledge of the extreme slowness with which it can be
Even on a small railway it is a matter of years to
introduced.

offer that as

now.

effect

It

changes in methods, so firmly fixed are the prejudices in

"
the good old way."
It may almost be said to be a law

favor of
of

human nature that it takes twentyyears

to introduce and popuan entirely novel machine or method for economizing labor.
First, there is the resistence of owners and managers to be over-

larize

come.

They

are quite certain that they cannot be taught

more

6l2

SCIENTIFIC

economic ways of production.

foremen.

MANAGEMENT
Second, there

is

the resistance of

They are absolutely certain that the innovation will be

Finally there is the rock-founded resistance of the

fruitless.

workmen

to

any device or method that seems Hkely to effect a

We have seen all three of these elements at

saving of labor.

work

in this particular case before the Interstate

Commerce Com-

From railway presidents down the Hne to superintendents have issued derisive statements as to the possibility of

mission.

radical reduction in operating costs

by application of scienthe
labor
unions sent their repremanagement.
"
sentatives to testify that
these methods could not and should
not be introduced into railway work."
As to the latter, we may reply that " these methods " have been
and should be introduced into railway work.
Moreover, the
"
workmen have been the greatest gainers where these methods "
any

And even

tific

have been introduced.

While we do not believe that the railways should be denied
increased rates because of economies in operation that may be

we do contend that it is a false position for

when they scout the possibility of
costs.
Most of them know that deoperating

effected in the future,

railway managers to take

greatly reducing
cided reductions in cost are not only possible but are actually
If they will study the laws of scientific managebeing affected.
will find that the principles they have been deriding
are the very ones they have been applying, at least in part.
They
will see that true scientific management is not a few special

ment, they

methods

of timing and scheduling work, but that it embraces a

system of laws that are founded on experience, and many of
which are as old as industrialism itself. They will also learn that

fundamental difference between following a law unconsciously, by intuition, and following consciously; for in the latter
there

is

case

management becomes

case

it is

acquired

One

by

truly scientific, while in the former

Art is mainly
Science can be taught.
those
naturally gifted.
practice, and then only by

merely an

art.

of our engineering contemporaries, Engineering News, has

also upheld the contention that

wrong

in asserting that scientific

Mr. Brandeis

is

ludicrously

management can be applied in

SCIENTIFIC
railroading.

The News

MANAGEMENT

holds that the

613

management

of a railway

quite unlike the management of a factory, and resembles

It asks the exponents
closely the management of a household.

is

of scientific management to apply their theories to their own

house servants, and then report results. It avers that the number

of railway station agents

and the

like is fixed

by

conditions,

and

cannot be reduced, and that the same holds true of trainmen and

most other employees.

Our contemporary may be interested

knowing that the

writer is now writing in a hotel that has reduced its expenses and
increased its net income remarkably within a year by applying
In fact the hotel under
the principles of scientific management.
its previous management had gone into the hands of a receiver.
Whereas now it is highly profitable. So even a large household
such as a hotel is can be reorganized and made profitable by
in

scientific

management.
With regard to railways, however,

there

is

vastly

more

of the

factory than there is of the household; and this is best seen by

studying the percentages of the different operating cost items.
Wellington has well said that a railway is a factory for manufacturing transportation.
more than 40 per cent of

tenance

all

is

The maintenance items

alone total

the operating expense; and mainanalogous to factory production in so far as

all

nearly
the principles of scientific management are concerned.
Fuel for locomotives is another big expense that may be called

a factory item.

number

of

So, too, are train crew expenses.

men on

management,

the

each train

number

may

While the

not be decreased by

scientific

of daily train miles per crew can cer-

tainly be increased

by improved management.
Train loads have been increased remarkably by reducing

grades.

Yet the man who

is

father of the principles that en-

gineers apply in determining the justifiable expenditures for

grade reduction, the late A. M. Wellington, may well be called

an exponent
application.

of scientific

Let

it

management

in certain phases of its

not be supposed that

scientific

management

a thing entirely new, or that it relates wholly to factory work,

or that it involves nothing but handling men, or that any single
is

SCIENTIFIC

6l4

MANAGEMENT

all its principles.

As we conceive it, scientific
consists in the conscious application of the laws

engineer originated

management

inherent in the practice of successful managers and the laws of

science in general.
It has been called management engineering,

which seems more

fully to cover its general scope of the science.

no business man has ever honestly built

up a large enterprise without applying some of the laws of scientific management.
Such success is not a matter of chance, alchance
though
may have furnished the opportunities that led to
It is self-evident that

it.

If it is

not a matter of chance

it

must be a matter

of scientific

law, even though the man who has succeeded may not himself
have seen a formulated statement of the particular laws that he
intuitively applied.

men have had

Generally, however,

pretty clear conceptions of

successful business

some

of the laws of

management.

The

science of

management has now developed sufficiently to

ridicule is heaped upon it.
In this

have reached the stage when

Fifteen years ago American

repeats the history of all sciences.
farmers were laughing at professors of agriculture. It was a great

it

joke to them to hear it gravely asserted that they did not understand the most important principles of scientific farming. Indeed

was laughable enough in itself, this new linking of the words

The laughter has ceased.
science and farming.
The Interstate Commerce Commission may wisely refuse to
it

consider scientific

management

as a factor in rate making. Rail-

unwisely ridicule the claims

way presidents may

new science. The facts are

made

for the

that some civil engineers are applying

the principles of scientific management in railway operation and

construction with the same measure of success that has been

secured in factories and in contract work.

success of these

knowledge of the

engineers will spread slowly at

first, but it will spread and the result will be the inevitable recognition of management engineering as a scientific profession of

great importance.

management

THE MISTAKES OF THE EFFICIENCY MEN

Reprinted by permission of the Railway Age Gazette

Extravagant Statements and Claims

Extravagant

claims are of two kinds:

(i) misrepresentation,

either wilful or through ignorance, and, (2) extravagant in the

sense that, even though possible of proof, their mere assertion

creates a prejudice against them and thus prevents a fair trial of

And of the two, the second is the more insidious.
proof.

claim based upon misrepresentation or ignorance is proved to be

untrue when the facts are known; and the discovery of the facts
is

in itself

a most important step

costs or low efficiency.

in

But a claim

an investigation into high

that, because of its extrava-

gance, immediately calls for a flat denial, even though having

thrown out without a hearing. To

such claims on the part of efficiency men is due the apparent
absence of agreement between them and those whom they would
foundation in

enlighten.
continue to

because

An

The
make

astonishing thing is that the efficiency men

the same fatal mistake; and it is unjustifiable

so unnecessary.

it is

schemes are

fact, is usually

Examples

of failure of efficiency

legion.

employ of a large concern had not

informed
on
when
he
the manager in no uncerthe
been long
job
tain terms what could be saved and how it could be done.* There
efficiency expert in the

was no doubt

either as to the

amount

or the method.

did not immediately follow, the efficiency

man

As action

telegraphed the

It is the practice of the Taylor group to make a preliminary survey at the

request of the management interested in the application of the Taylor system, and
to estimate as carefully and closely as the conditions permit the direction in which
*

A study of their reports shows

savings can be made and their probable extent.
that this estimate is in all cases most conservative, that it is always given as an
approximation, and that the expense to the management in time and money is at
the

same time

carefully estimated.

Ed.

61S

6l6

SCIENTIFIC

MANAGEMENT

of the company urging him not to delay because every

hour's delay meant an actual loss of one hundred dollars.
Perin
a
somewhere
the
was
leak
the
there
plant;
management
haps

manager

not have been all that it should; and it is not unlikely that
amount named might have been saved through efficiency
methods. But why was it necessary to invite criticism by making
the bold claim and thus create a prejudice at a time when cooperation was the one important thing ?

may
the

Another extravagant claim is that used to illustrate the alleged

It has done yeoman
enormous waste in railway operation.
It runs something like this: A
service on various occasions.
first class condition is but 50 per cent efficient if
the track and road-bed have been allowed to deteriorate 50 per

locomotive in

cent.

If,

in addition, the

engineman has an

efficiency of

but

50 per cent, the result is to reduce the efficiency of the locomotive

to 25 per cent.
If, further, the fuel used has but half the heat
units

it

should have, the combination of poor track, engineer and

an efficiency of but 12^ per cent, or a waste, or

fuel results in

inefficiency, of 87 1 per cent.

The argument appears

logical

enough, but however compelling it may be to the layman, the

railway manager knows that such conditions do not exist. Except

no road-bed is allowed to deteriorate to such

an extent as to carry but half the traffic it should. There cannot
be such a combination of poor road-bed, locomotives and cars,
in extreme cases

fuel, etc., for the reason that long before these factors are
allowed to deteriorate sufficiently to affect the net results mateLocomotives are
rially, the remedy is discovered and applied.

men,

taken out of service and shopped before their condition has any
Engineers who are
appreciably damaging effect upon traffic.
unable to meet their schedules must promptly give way to those

who
It
for

can.

must be admitted that not unusually

many

there

is

a basis in fact

of the extravagant assertions of the efficiency

men.

It

true that their claims not only do not accomare

intended to, but, on the contrary, have the
what
they
plish
That machine tools in
actual
conditions.
of
effect
obscuring
is

because this

is

most manufacturing and railway shops are not operated as

effi-

MANAGEMENT

SCIENTIFIC

617

ciently as they should be, that the cost of maintenance is high,

that the efficiency of the average workman is low, that fuel and

and cars are not

supplies are being wasted, that locomotives

And it is
unquestionably true.
The
important that the truth in this respect should be told.
is sufficient; and although it requires frehowever,
truth,
plain
quent repetition, it needs no embellishment.
always repaired economically

is

II

Neglect of the Human Element

Criticism of the theories of the efficiency

men may be more

or less a matter of opinion, but criticism of methods and practices, based on actual results, and backed up by the evidence
of practical

men who have

intimate knowledge of the working

of the so-called efficiency systems, ought to bear weight.

And

not to their credit that the efficiency men dismiss such evidence with scant consideration. Of the mistakes that have been
it is

made some

are recognized so universally that it is to be wondered

at that the efficiency men themselves fail to appreciate and corso far reaching are they in their effects.
rect them
Among

these mistakes, perhaps none has been more apparent or more

surely fatal than their failure to recognize the human element,
in other words, their ignorance, at least in practice, of human

The millennium has been a long time coming, but most

of us are willing to accept a little less than perfection, as we
understand it, because we have learned by experience that pernature.

seldom to be reached.
an ideal to be striven for
There are practical and visionary idealists; the one appreciates
the limitations of men and the frailties of human nature without
fection

is

sacrificing his ideals, the other, living apart in

a world of fancy,

can be

therefore

satisfied

only by
remains unsatisfied.

and
perfection

This fundamental mistake

efficiency

men

to the rank

to foremen, superintendents,

authority.

How

is

and

forever

not confined to the relations of

workmen; it extends alike

managers and those in executive
file

the efficiency

of

men

can exp)ect to receive a

favorable audience for presenting their cause after following the

6l8

SCIENTIFIC

MANAGEMENT

course they usually pursue is hard to imagine.

What has been
their general attitude toward these various classes ?
They have
criticized railway executives because their philosophical discus-

have not been taken seriously, forgetting that they are men
of action rather than of words.
They have charged railway and
sions

managers with incapacity in deahng with intricate

problems that have resulted from the growth and consequent
complexity of their business, ignoring the power that comes only
industrial

from

intelligent

They have

and intimate knowledge

of actual conditions.

and others in
and to their
"
as
because
have
management
rutty,"
they
depended on a
and
an
to
handle
men
rather than on
practical experience
ability
referred to superintendents, foremen

direct charge of operations as

"

of the old school,"

systems, to secure permanently good results, forgetting

that the standards attained by such men have not been generally

artificial

They have
efficiency system.
substituted for comparatively simple methods of determining

improved upon under so-called

costs

and earnings, complicated and

preparing the

way

for a clear

theoretical schemes without

understanding of their elements.

however worthy their object and however correct

their reasoning, they have depended more on the force of logic
to carry their plans to a successful conclusion than on a reason-

In

all of this,

able attitude which takes into account the elements of

nature that are

common

to the large majority of

men.

human
They

have talked and written too much, and it is not surprising that
"
"
has been given little serious
scientific management
the term
thought in certain quarters.
of the leading efficiency men has stated that "it is not
or materials, money, machines and methods that count,

One

men

but more potently theories and principles." We shall not quarrel with them regarding the principles that underlie all successful
industrial and railway management.
Efficiency men are not
alone in recognizing them.

but in

itself

Abstract reasoning has

cannot make two

its place,

blades of grass grow where one

grew before, nor turn the wheels of industry. Great as imagination is, and however necessary a part it plays in broad and comprehensive plans for the improvement of the

human

race, it

MANAGEMENT

SCIENTIFIC
must be translated

And

it is

619

into the concrete before

it is really vital.
correct in theory is likewise
Scientific management of railways

not true that what

is

always correct in practice.

industrial plants is not a system of philosophy; it is common
sense applied to the working out of the problems that cannot be

and

solved except through

men

practical men, men who know.

number of years ago one of the now leading efficiency

engineers was engaged in a large industrial plant to introduce a
For two years he labored. Stop watch in
piece work system.
hand, he timed the various operations and tabulated the results.
He was a
His attitude toward the workmen was impersonal.
scientist (?) in his laboratory.

men around him

He was

man

apart.

The

him as such. Lacking their conwas impossible. But from the standpoint
the efficiency engineer this was unnecessary;' his faith was
his theories and principles.
Consequently, when he appeared
the shop and began his observations, machines would often be
recognized

fidence, cooperation

of
in
in

slowed

down with

loss of

output or speeded up with damage to

Every device known to the various trades was resorted

The result was that after two
to to block him at each turn.
tools.

years of effort the establishmeht of a satisfactory piece work

system was as far from realization as it had been when the task

was

Then a

started.

practical

man was

called in.

He

acquainted

He mingled with
himself with the machines and their capacity.
He explained that the
the men and gained their confidence.
object in view was two-fold, to increase the output at a reduced
cost per unit to the company, and at the same time to enable the

men

to earn more.

results that the efficiency

to secure.

the

man

Why

months he had accomplished

man had spent two years in an effort

Within

six

Because he appreciated the importance of

element.

Yet they tell us that practical men follow the rule-of-thumb,

that they have not had the time and do not possess the ability
to analyze closely the successive steps in the almost

myriad

1
Even a cursory study of the principles of the Taylor System should make it
dear that cooperation, so far from being unnecessary, is absolutely fundamental
Ed.
and essential.

620

SCIENTIFIC

MANAGEMENT

operations of a large shop, that because of a lack of scientific

knowledge they are not competent to determine proper methods
of

work or secure the best

doubtedly true that

many

from operation.

results

It is un-

men

lack the peculiar qualities required by the efficiency engineer.

Not a few successful
men would be more successful if they possessed more fully the
practical

faculty of analysis and coordination and had a more hvely appreciation of the theory of scientific management.
But are the
efficiency men assisting them in this direction ?
Rather, are

they not practically ignoring the experience of practical men

in their endeavors to establish the efficiency system, or to
clarify
the atmosphere surrounding it ?
credit to the capacity of such men

by many

Do

not

to handle men, to convince them

gain their

sympathy and

which no organization

too

little

they
give
inherent
in some, acquired
of their mistakes, to

to establish that esprit de corps without

is

efficient ?

Under

these conditions,

not be surprised that practical men

view with distrust their efforts in fields in which they have had
efficiency engineers should

While there is perhaps no little prejudice

no actual training.
of
such
an
back
attitude, it is nevertheless a real situation, and
the success or failure of many an attempt in scientific management, as interpreted by the efficiency men, has been fore-shadowed by the extent to which the confidence has been secured
of the

An
sented

men behind

the guns.
understanding of the psychology of the crowd as repre-

by a shop

by most

filled

with workmen, possessed in large measure

and railway managers, master me-

successful factory

chanics, round house

and shop foremen, cannot be replaced by a

theory of management nor ignored with impunity in introducing

Of two men entering a shop apparently
methods.
was found to be analytical and critical
one
equally equipped,
efficiency

both in respect to the details of his work and his fellow workmen,
The
but lacking the magnetism that makes for leadership.
other, with less analytical abihty and often wrong in his theories,
possessed a personality that gave him an influence over the men

Which, naturally, became the leader, afterwards

Such men, by the law
the foreman, then the superintendent ?
around him.

MANAGEMENT

SCIENTIFIC

62 1

of selection, represent the great majority of those

who manage

our railways and superintend our industrial and railway shops.

Whatever their failings, they are to be reckoned with.

many a shop foreman, superintendent or master mechanic may have no proper appreciation of the beauties of the
philosophy of efficiency, may be unable to follow the line of
reasoning of the efficiency men, may be mistaken in his belief
"
"
have shown,
that his men are more efficient than the
assays
and may have much to learn, he has usually reached his position
While

because of certain qualifications possessed in greater measure by

him than by the other men with whom he has been associated.

And

in introducing efficiency

fatal mistake to

omit the

methods

department it is a
good will, because al-

in his

first essential, his

most invariably except through him the good

will of the

men

Too

often the system is worked out with

insufficient consideration being given to the men most closely

cannot be secured.

affected;

whose suggestions given with the best of intentions are

Little pains are taken to explain the details of the sysignored.

tem to those who must understand and favor it if it is to succeed.

The word has gone out

the new, and short

that the old system must give way to

Thus it
given to the opposition.

shrift is

happens, that while this is farthest from their thought, the attitude of the efficiency man and that of the foreman and workmen

Lacking the

are antagonistic.

agreement on

initial

meeting of the minds and

essentials, efficiency plans are foreordained to fail.

The efficiency man

tem to the greatest of

is

wise

all

who

studies

greater place
gives
the study of man.

in his sys-

Ill

Unscientific
In what respects are
in their attitude

agement

many

of the efficiency

and methods with reference

men

unscientific

to scientific

man-

basing their conclusions on incorrect, insufficient,

or immaterial data and in applying them to conditions which
(i)

In

were absent in the

(2)

initial investigation.

In their impatience for results.

622

SCIENTIFIC

MANAGEMENT

UNSCIENTIFIC METHODS OF DRAWING CONCLUSIONS

What

more common in their utterances than an imposing

array of examples of extremely low efficiency, submitted as evidence that conditions call for heroic treatment, or of examples
is

of high efl5ciency as a proof that their methods can alone bring

order out of the chaos ?
mere citation of disjointed facts,

however, proves nothing.

They are at best but half-truths,
and as such are not only out of place in a scientific discussion
of the questions under consideration, but are misleading.
A dis"

interested seeker after the truth asks:

If the unsatisfactory

conditions that have been described actually exist, are they due
to a wrong system or to the absence of system; do they correctly represent average conditions, or are they only exceptional
instances due to factors which are but local and transitory ? "
Efficiency men claim to be scientific, as contrasted with practical

men, who they

say, follow the rule-of- thumb.

publishes his conclusions only

when,

But a

scientist

after extended experiments

and observations, he has found the evidence sufficient to warrant

He is no scientist who hastens into the
giving them publicity.
Hmelight with evidence based on scattered examples, found
amid varying conditions, and risks the odium of his co-workers
conclusions.^

Among reputable
physicians, chemists, biologists and other scientists, it is customary to delay the announcement of important discoveries even
by

far

premature

announcing

beyond the time which would seem under

logic to be required.

ment

made

The

result is that

the laws of

all

when such an announce-

backed up by a series of facts so closely related

and so strongly fortified by innumerable examples bearing disis

tinctly

it is

upon the

question, that

it is

unusual, indeed, for

it

to

require alteration.
Is it scientific to use as evidence cases of

low efficiency and

consequent high costs and unsatisfactory service, or of improve^

Compare with

remark the Introduction

W.

"

Art of Cutting
page 242. This paper was not published until twenty-six
"
"
years of experiments had been made.
Taylor's
Shop Management was published thirty-three years after the methods described in it had begun to be pracEd.
tised.
this

Metals," in this volume,

to F.

Taylor's

MANAGEMENT

SCIENTIFIC

623

ments that have followed the introduction of efficiency methods,

without an equally fair statement of all the conditions that surround the operations ? Or to search through the records for an
especially poor performance to set alongside an especially good
one, irrespective of the causes and the general tendency in
either case ?

All thoughtful accountants appreciate how misdata may be unless all the concurrent factors

leading statistical

are taken into consideration and proper allowances made for

them. Whatever the unit of measurement, it is unsafe and im-

proper to draw definite conclusions from too narrow a range of

data.

A good
all

record of one

the facts are known.

month may
For

be a poor one when

an industry where the

really

example, in

different operations that precede the completion of a certain

unit are scattered over a period of several months, the output

during a particular month may, and usually does, bear no direct
relation to the cost of operations during the month in question.

In a shop building steam engines, machine tools, passenger cars,

or similar equipment, requiring perhaps two months or more to
assemble complete, it is the height of folly to assume that the
cost of the operations in a given month divided by the output
represents the cost per unit, and indicates whether the results

are satisfactory or otherwise.

But the reader, left in such cases to his
rate the real from the unreal,

is

own

resources to sepa-

either the willing

and unsuspect"

"

evidence
neophyte, accepting with wonderment the
which has no established basis, or is obliged to reject it all as
ing

It is unfair to those among the efficiency engineers who

There is danger
are scientists in the true meaning of the term.
that their reputations will suffer and that their usefulness will

unreal.

be limited because of the unscientific deductions and absurd

claims of the pseudo-scientists who ransack heaven and earth
for comparisons that only serve to mislead those who are not
in position to answer their arguments.

MANAGEMENT

SCIENTIFIC

624

IV
Impatience for Results
Perhaps next to the

failure of the efficiency

men

to appreciate

human element, the most certainly fatal

mistake they have made is their impatience for results.
This
comes often after many of the obstacles to their success have
been removed. It is not confined alone to them; many practical
the importance of the

managers have failed for the same reason. But in introducing a

system of work that involves features, which while the principles
not be new, are strange to the men who are
vitally affected, impatience can undo in short order what
has taken much time and expense to build up.
If it is true

underlying them

may

most
it

man

that
full
its

is

a suspicious animal, the average

when a new system

share

success should not be risked

is

introduced.

workman has
If it

by premature announcements

by assuming an uncompromising

his

has merit,

attitude toward the men.

or
If

great waste in shop operation, and this has been going

on many years, why the impatience to change it all in six months
there

is

or a year

Instead of establishing the system in one department, and

proving its worth so unequivocally that it is demanded in other

departments, certain efficiency men have urged its speedy extension to other departments, for the reason that unless it is intro-

and recognized as the established system, there is

danger that it will fail in the department in which it was initially
instituted.* Such a necessity for its general extension is unworthy
One of the most unfortunate
of any system which merits it.
duced into

all

results of the impatience that has caused shipwreck of so

well intentioned plans

is

the opportunity that

is

many

given to labor

to organize and present a soUd front of opposition to their estabIt is both unnecessary and unscientific to demand or
lishment.

expect permanently satisfactory results in introducing scientific

management without giving it time to grow in favor. If the

It is the practice of the Taylor group to develop the system, department by

department, mainly because this process facilitates the training of the permanent
Ed.
stafif which is to extend and maintain the system after the expert is through.

MANAGEMENT

SCIENTIFIC

625

efficiency men have profited by this mistake, which has

direct cause of many of their failures, they have gained

now

Just
eitiier

those

scientific

management

favorable or otherwise, in

who

believe that

it offers

is

been the
much.

receiving consideration,

many

quarters.

There are

nothing toward a solution of the

There are others

problems that confront the industrial world.
for
all
our
it
a
economic
ills.
who consider
panacea
Perhaps
midway between these classes are those thoughtful men, some
trained in the hard school of practical experience and possessing
"
an infinite capacity for taking pains,"
that true genius which is
and others, with equal genius and with the instinct and training
of the scientist,

tablishment of

ment
them.

is

who

are to be depended

upon to extend the esThe purpose of scientific manage-

its principles.

not to displace existing institutions.

It is to perfect
been established on a much larger scale,

It has already

although

it

may

not bear the name, than

engineers are willing to admit.

many

of the efficiency

It is being further

extended

through patient study of existing conditions and a recognition

of those factors which make for permanency.
And while it is
to be regretted that

tion

and unfair

it is

being retarded through misrepresentaan encouraging sign that there is

criticism, it is

a growing number of industrial and railway

are not blinded to its merits

philosophers

who may

by

men

of all ranks

who

the fulminations of the school of

for the time being

occupy the stage.

Neglect of Large Factors

mistake

common

to the majority of the leading efficiency

men, due perhaps to their zeal for a perfect control of the most
minute details of every operation, is the neglect of certain large
and important factors. The efficiency system cannot be separated from the other departments of shop activities, for the
reason that

it

affects

the main tree, but

all.

It is not

a branch grafted on to
is a part of the

There are many systems of shop management, which

installed in their entirety and strictly according to the ideas

body itself.
if

them

when properly introduced

626

SCIENTIFIC

MANAGEMENT

of their originators, are so complicated that it is manifestly imposshop manager to familiarize himself with their details

sible for a

without neglecting

many

of the larger interests that

have pre-

men, when given

Efficiency
viously demanded
the opportunity to introduce scientific methods are often so intent
his attention.

correctness of their theories that they, too,

The difference is that they do so from
factors.
the
neglect
large
while
the
choice,
shop manager does so from necessity when he

upon proving the

is

required to adopt a system which he

knows beforehand

to be

inadequate.
One of the most difficult problems confronting the efficiency
engineer when he attempts to establish a new system of shop

The task of keeping the workmen

is that of labor.
contented without sacrificing profits is often the supreme test
of a man responsible for their relations with the company.
The
management

usually equal to this test.

Efficiency men,
however, are strangely blind to the attitude of labor toward a
system which the men believe can tend only to reduce their earnsuccessful

ings.

manager

is

Whether they

are correct in this attitude or not does not

cannot be ignored with

"
under
efficiency engineer has said that
impunity.
It is because of
efficiency operation strikes are inconceivable."
alter the situation; they are a factor that

An

eminent

this abounding faith in their theories that they fail to recognize

the rumblings of discontent until the earthquake occurs.
Another factor all too frequently overlooked is the opportu-

nity for increasing efficiency and reducing costs through simple

Many a successful superintendent motive power

expedients.
has accomplished by the exercise of ingenuity and common sense
what

and the
have failed

efficiency engineers, after exhaustive investigations

introduction of theoretical schemes

of doubtful value,

Instead of following the Hne of least resistance

to bring about.
seem
to
Successful pracprefer indirect and devious ways.
they
for
tical men know of better methods.
If,
example, the cost of

a certain

class of locomotive repairs is

running at, say, 12 cents

a mile, the superintendent motive power may reach the concluIt is not necessary that he should make
sion that it is too high.

an extended investigation

in order to determine exactly

how

MANAGEMENT

SCIENTIFIC
excessive his costs have been.

by common

Comparative

sense and good judgment will

for his present purpose,

and he

tell

627

figures interpreted

him

closely

enough

may conclude that the cost should

He has thus arrived, through the

average not over nine cents.

expedient of a simple determination of the

possibilities,

at a

standard which may be termed a practicable ideal cost as disThen by another

tinguished from a theoretical ideal cost.
simple calculation of charges and credits, and through comparative records by divisions, roundhouses and shops, the percent-

age of inefficiency

may be determined and localized.

If traceable

to defective organization this can be corrected; if due to some

inherent weakness in the design of any particular part of the

This, of course,
locomotive, the part can be strengthened.
"
*'
for
it
is not the
scientific
does
not
method,
attempt to deter-

mine

for every separate operation included in the cost of repairs

It is enough for all practicable
the actual cost and efficiency.
this
to
know
that
at
the costs are computed on
stage
purposes

the

same

basis as formerly

and that the

periods are properly comparable, so that

from 1 2 to 9 cents a mile he is assured that

figures for different

if

costs are reduced

not in the bookbut

that
a
reduction
of
cent
has
keeping
25 per
actually been
made.
It

is

fair

statement that

if

it is

in a certain instance locomotive

or car repairs are excessive by, say, 30 per cent, it will cost less
than half as much to save the first 20 per cent as to save the
In fact, it is not unlikely that it would be
last 10 per cent.
practically impossible to secure the last 10 per cent,

however

elaborate a system might be installed.

When the cost of a system is equivalent to the possible savings, it is, of course, only a
Proof that a high efficiency can be reached
useless burden.

without recourse to a highly specialized system is found in the

fact that it is recognized even by the scientific engineers that on

many

of the representative railways

and

in scores of industrial

shops, low costs of operation accompanied by a high standard of

service have been maintained for years.
The p)ossible economies

through somewhat unscientific but effective calculations, comparisons and allowances, are enormous.

628

SCIENTIFIC

MANAGEMENT
VI

Incompetent Counsel

When the efficiency men are charged with the mistake of giving
incompetent counsel when their advice is sought, they are taken
to task for ignoring one of the principles upon which their structure of shop

management

is

enumerated by Mr. Emerson

built; for among the principles

in the series of articles current in

the Engineering Magazine, not the least prominence is given to

"
We have read these and other similar
competent counsel."

by the chief efficiency men with the hope that

much of what has been termed misunderstanding of their methods
effusions written

The particular series

might be cleared away.
referred to has been hailed as a great work, and should contain
One has a right, therethe last word on scientific management.
counsel
at
the
hands
of one speaking
to
fore,
expect competent
and

theories

with such authority.

It has been correctly stated in the Railway Age Gazette on
various occasions, that the interest in efficiency methods and
It is a quesscientific management has been increasing rapidly.
in
rather
than
this
is
not
because
whether
spite of,
tion, however,
exposition by certain efficiency men who are recognized
as the leaders of the new philosophical school.
Railway and
of, their

managers have been asking for bread and they have

In the April number of the Engineering
been given a stone.

industrial

Magazine,

is

published the eleventh of the series of articles on

"The Twelve

Principles of Efficiency," entitled

Standardized Conditions."
Principle

"The Ninth

Recognizing the importance of having conditions standardized and the economic loss
due to the absence of standards, one naturally looks for valuable
If
suggestions regarding this feature of scientific management.
there are any such suggestions in the article in question, a second
and a third reading have failed to disclose them. As a philo-

sophical dissertation, it may have a place, but as a contribution

It
to the cause of scientific management it is sorely deficient.

opens with an interesting chapter from the life of the grub,

followed by a comparison of the standards of the spider and the

MANAGEMENT

SCIENTIFIC

629

with those of man, much to the detriment of the latter.

Egypt and her pyramids have a place, then consideration is

firefly

given to the evolution of the aeroplane.

are compared to the framework of a dome.

Efl&ciency principles
The eight-hour train

New York

and Chicago, and the three-day schedule for

general repairs to a locomotive are prophesied, but no hint is
A large
given of the methods that will bring them into being.
house
if
we
between
the
read
lines,
(which,
publishing
correctly
between

paid dearly for the introduction into its plant of a certain system
of shop management) is put on the rack with other business men,

who do

not progress because of

The

ize the soul."

"

conditions in

our

"

imaginary specters that terrorwith an appeal for standardizing

To what
our shops and our nation."

article closes
lives,

extent competent counsel is given to those who are interested in

standardizing conditions can be judged from the above summary.

This absence of competent counsel is not peculiar to the article

in question; in a previous instalment of the same series on the
"
subject of the first principle
Clearly Defined Ideals," five

pages are given over to a discussion of the seven ancient and the
seven modern wonders of the world, and the seven American

Nor

wonders.

is it

peculiar to this series of articles.

Ask one

of the leading eflSiciency engineers to make a trip over a railway

system, or make a study of a certain manufacturing plant, and to

report

upon the

existing conditions

larger part of such a report

of Polonius,

is

and the

possibilities.

The

likely to be akin to the conversation

which Hamlet characterized

"
as,

Words, words,

words."
It is not unusual for certain efficiency
of their plans to a lack of cooperation

authority.

men

to refer the failure

on the part

of those in

Is it not rather that the counselor has failed to give

sound advice, and that consequently results have not squared

with the promises ?
His attitude is too often that of one who
never needs, but always gives counsel.
That prejudice sometimes exists

than that of

common

is

perhaps no more marked

of the efficiency men toward the organization

no doubt

many

true,

but

to nearly all railway

this is

and

industrial shops.

SCIENTIFIC

636

MANAGEMENT

CONCLUSION

An

has been

made

in these studies to point out for the

advantage both of the efl&ciency men and of those who are
interested, or should be, in the principles of scientific, or common
effort

sense,

management, some

of the chief mistakes that

have figured

No

in connection with its exposition and introduction.

is made to literary excellence in these discussions.

claim

They have
been written by one who is himself deeply interested in the vital
issues, and who recognizes and apphes in his own field many
of the principles that

have been recommended, who

on the part of efficiency

familiar with extended efforts

introduce systems of greater or

less excellence.

is

also

men

to

That they have

made

mistakes, however, need not be seriously regretted, proThe important thing is not
viding profit is secured from them.

make

same blunders repeatedly.

Those mistakes, which

have seemed to the writer to be the most common, are: (i)
Extravagant statements and claims, (2) the neglect of the human
to

the

element, (3) the unscientific nature of

and

many

of their discussions

conclusions, (4) impatience for results, (5) neglect of large

factors, (6)

incompetent counsel. Of these the most surely fatal

any advanced system of shop control are the

to the success of

neglect of the

human

element and impatience for

results.

The nature

of these observations has precluded the possibility

of a recognition of the good that has been accomplished by the
efficiency

men, either directly or as a

has followed their utterances.

them with many and

The

result of the publicity that

fact that

we have charged

serious errors has not blinded us to those

features of their systems which have merit.

It is not our province
to refer to them here in detail; it would be unfair, however, and

might lead to a misconception of the purpose of these studies

to close them without a word of commendation for those among
the efficiency men who have urged the principles of a common
sense
cles.

management
It has

in the face of almost insurmountable obsta-

been largely a campaign

has gone out to operating

mate knowledge

men

of education,

of all classes to seek a

of the details of their business.

and a call
more inti-

The charge

SCIENTIFIC

MANAGEMENT

63 1

of gross inefficiency that has become a popular slogan, while

much exaggerated, has led to systematic plans to reduce waste,

and economies have already

resulted,

which had not been con-

From whatever point

sidered within the realm of possibility.
of view this science of management may be considered, and in
all

the heat of argument,

it

should be remembered that the law of

the survival 01 the fittest holds in the economic as in the animal

realm, and that because the principles of scientific management
are vital to our industrial life, they have come to stay.

SCIENTIFIC
By

F.

MANAGEMENT

LINCOLN HUTCHINS

Reprinted by permission of the

Raimay Age

Port Chester, N.

Gazette

Y., February

5,

191 1.

To THE Editor of the Railway Age Gazette:

It

is

inconceivable that the writer of

"

The Mistakes

of Effi-

Men," in your issue of February 3, page 230, could ever

"
have worked with them," for he shows such a lamentable ignorciency

ance of their fundamental principles.

Ordinarily such writers
but
as scientific management is
may be left to hang themselves,

now on

the tapis and

is

so imperfectly understood in

many

quar-

most of the article.

Will the
"
writer kindly give an instance which justifies his saying,
Failure
ters I feel impelled to criticise

of

many

of their theories

application

"

The

when brought

to the test of practical

principles of scientific

management

are

based on truisms and must be as true in practice as in theory;

when failure occurs it will inevitably be found that it is caused by
a violation of principle and not through fault of principle.
"
"
For a writer who claims to have worked with them to ask

how

the efficiency of a

workman

is

arrived at, and then to go on

entirely erroneous account of how it is done is to say

the least surprising.
Cursory observation readily detects lost

and give an

time in any operation; the operator stops to talk, to go on an

It is easy to see that waste
errand, to look for material, etc.
motions are being made, that the speed is slow and to locate in-

numerable causes that

"

Time

studies are

restrict output, so that

when he

made, often with the assistance

says:

of a stop

students and others

watch, by inexperienced men of little tact
himself
down
as one wholly mishe
writes
equally incapable,"
A
trained
situation.
the
observer, though he may
conceiving

know

about the particular operation which he is observing,

can readily detect the wastes and keep account of them, the stop
watch being merely an assistance in fixing the time; when this
little

632

SCIENTIFIC

MANAGEMENT

633

only the beginning of the making of a schedule upon

The fixing of that
which the efficiency shall be calculated.
is

done

it is

must be the work of a person expert in the particular

which the observation has been made and in which every

schedule
line in

given to the conditions surrounding the operation.

He also says that " men cannot be worked like machines," and
this is where efficiency engineers maintain a strong position.

consideration

is

Their object is not to increase the effort of the men, but on the
other hand to decrease it, mixing a Uttle brain with it to pro-

duce a greater output. The operator who has to nm after the

foreman for a job, for material, or for other things, has to work
harder to turn out a satisfactory day's work.
It is the object

make the work easier for the operator.

Take an actual illustration; an observer noticed that a machine
was held up quite a time while two men laboriously put into
of the efficiency engineer to

roll of paper; he studied out a plan whereby a new

was ready to drop into the place of the preceding one as soon
as it was empty; this increased the output and diminished the
It is an inexcusable error to maintain
effort of the employee.

place a heavy
roll

that efficiency engineers study to drive

on the contrary they aim at

men to exhaustive effort;

men to secure greater

assisting the

output with diminished effort.

The trouble with the present system lies almost wholly with
the management and not with the men; this is why scientific

management
"

agement

is

is

so effective.

immediate,

One

reliable

of the tenets of scientific

man-

and adequate records."

These
Managers would

are almost wholly lacking in railway service.

be astonished could they but know the true facts as to their
operations, but the reports, not records, which come to them do
Were such records available it would be found
not give them.

that the estimates

made by

the efficiency engineers were

much

too low.

Again the writer exhibits his ignorance when he says: "It

not an unusual occurrence for superintendents and foremen
to be misled by the evidence that John Brown and Tom Jones
have increased their output from 70 to 100 per cent, into thinking that such results may be expected of all the men in their

is

SCIENTIFIC

634
If

shop."

know

he had worked with efficiency engineers he should

that often a
will attain

an

man

of exceptional ability, the uncommon

^
efficiency of 200 per cent and keep it up

man,
in and day out.
When it
can be made 100 per cent

men

MANAGEMENT

day

is

said that a concern or

efficient, it

any part

of it

means that the average

of

be that, or in other words, that the output is

that
which
would be produced if every man worked to an
to
equal
even 100 per cent efficiency, a condition that will probably never
the

all

will

There

occur.

The

will

always be

men

of high

and men

fault with the present

of

low

effi-

that high and low

ciency.
system
the
same
is
which
neither
nor
economical.
The
rewards,
get
just
schedule always being made for the average man enables the

uncommon man

to realize

much above

should receive his reward in

It

would be interesting

engineer

who

is

if

way

the 100 per cent, and he

of a bonus.

name any efficiency

scientific management could

the writer would

ever contended that

be had without

It is one of their cardinal principles that

cost.
to secure efficiency the cost of supervision must be increased and
that the efficient man should receive more money.
But the

writer goes on to say that ultimately the

men

will beat the system; how this can be is past comprehension; if the operative
How he is to get the
deUvers the output he gets his reward.
reward without delivering the goods is not explained and would

defy explanation.
Again,

it is

lishments.

said that railways are different from other estab"

is the old, old story:
That plan is excellent

This

for so-and-so,

but

it

would not work with me." All enterprises

and the same underlying principles

are alike in their fundamentals

apply to

all.

The writer refers to testimony taken before the Interstate

Commerce Commission as to costs on some roads, but no efficiency engineer of any standing would claim that those costs were
It might well be that roads with low costs were
schedule costs.
1

Two

hundred per cent

lating efficiency, but not

per cent

is

a standard set

Taylor method.

Ed.

by the Emerson method of calcuIn the Emerson method 100

much more roughly and approximately than by the

efficiency is possible

by

the Taylor method.

SCIENTIFIC

MANAGEMENT

635

as inefficient as those with high costs, the low cost being the result

Only an exhaustive study

can determine the schedule in any particular case, for
any particular road or any particular establishment.
The writer ends his article with these excellent sentences:
of exceptional favoring conditions.

and

"

trial

Successful railway operation

is

made up

of a multiplicity of

steps each carefully planned and carried out; that the problem
is to control the parts in order that the whole may be controlled."

These sentences are the alpha and omega of scientific management, but no one with a modicum of actual experience in connection with railway operation will hold for a moment that those

The methods in vogue

steps are either planned or controlled.
"
have grown up like Topsy," without coordination between parts
and there is constant friction between departments and divisions.
Each road has its heredity, which controls its system; each head
of departments has his idiosyncracies resulting from his environment and the experience of the American Railway Association is
sufficient proof that this heredity and environment are the most
serious obstacles to placing the railway business on a scientific
basis.

The

writer says:

"

An

efficiency engineer does not hesitate to

promise almost immediate results." This is rank slander of the

profession; perhaps the writer can name a single instance, but
It is a fact, however, that in anticigreatly to be doubted.
of
an efficiency task the men brace
hold
of
the
taking
pation
up and make a spurt to show that they are not so black as
it is

painted, but lacking systematic

cannot be continued.

As the

real

management

it is

something that

work

of the efficiency engineer does not begin imtil

"
"
ways of the management, it
rutty
against the

he comes up
follows that no immediate permanent results can be looked for or
promised, and no one knows this better than the efficiency enI appeal for fair play and the discussion of this question
gineer.

on

fair

sale

grounds, with illustrative instances instead of a whole-

denouncement with misleading and erroneous statements

of fact.

A PIECE RATE SYSTEM

BEING A STEP TOWARD PARTIAL SOLUTION OF THE
LABOR PROBLEM
By FREDERICK W. TAYLOR
GERMANTOWN, PHILADELPHIA,

PA.

Reprinted by permission of The American Society of Mechanical Engineers

Introduction

The ordinary piece work system involves a permanent antagonism between employers and men, and a certainty of punishment for each workman who reaches a high rate of efficiency.
The demoralizing effect of this system is most serious. Under
it, even the best workmen are forced continually to act the part
of hypocrites, to hold their

own

in the struggle against the en-

croachments of their employers.

The system introduced by

the writer, however,

is

directly

It makes each
the opposite, both in theory and in its results.
workman's interests the same as that of his employer, pays a
premium for high efficiency, and soon convinces each man that

permanent advantage to turn out each day the best

and
maximum quantity of work.
quality

it is for his

The

writer has endeavored in the following pages to describe

the system of management introduced by him in the works of

Company, of Philadelphia, which has been

them
during the past ten years with the most
employed by
the Midvale Steel

satisfactory results.
The system consists of three principal elements:
(i)

An

(2)

The

(3)

What

elementary rate-fixing department.

differential rate system of piece work.
he believes to be the best method of managing

who work by

men

the day.

rate-fixing differs from other methods of making

prices in that a careful study is made of the time
required to do each of the many elementary operations into

Elementary

piece

work

636

SCIENTIFIC

MANAGEMENT

637

which the manufacturing of an establishment may be analyzed

or divided.
These elementary operations are then classified,
recorded, and indexed, and when a piece work price is wanted
work, the job is first divided into its elementary operations,
the time required to do each elementary operation is found from
the records, and the total time for the job is summed up from
for

these data.
glance,

it is,

While

this

method seems complicated at the first

and more effective than the old

in fact, far simpler

method of recording the time required to do whole jobs of work,

and then, after looking over the records of similar jobs, guessing
at the time required for any new piece of work.
The differential rate system of piece work consists briefly in
offering two different rates for the same job; a high price per
piece, in case the work is finished in the shortest possible time
and in perfect condition, and a low price, if it takes a longer
time to do the job, or if there are any imperfections in the work.
(The high rate should be such that the workman can earn more

This is
usually paid in similar establishments.)
directly the opposite of the ordinary plan of piece work, in which
the wages of the workmen are reduced when they increase their

per day than

is

productivity.

The system by which the writer proposes managing the men

who are on day work consists in paying men and not positions.
Each man's wages, as far as possible, are fixed according to the
and energy with which he performs his work, and not accordwhich he fills.
Every endeavor is made to
This involves keeping
stimulate each man's personal ambition.
of
and
careful
records
the
performance of each man,
systematic
as to his punctuality, attendance, integrity, rapidity, skill, and
accuracy, and a readjustment from time to time of the wages
skill

ing to the position

paid him, in accordance with this record.

The advantages

system of management are

First. That the manufactures are produced cheaper under it,
while at the same time the workmen earn higher wages than are
of this

usually paid.
Second. Since the rate-fixing is done from accurate knowledge
instead of more or less by guess-work, the motive for holding

SCIENTIFIC

638

back on work, or "

MANAGEMENT

and endeavoring to deceive the

employers as to the time required to do work is entirely removed,
and with it the greatest cause for hard feelings and war between
the management and the men.
Third. Since the basis from which piece work as well as day
rates are fixed

is

soldiering,"

that of exact observation, instead of being

founded upon accident or deception, as is too frequently the

case under ordinary systems, the men are treated with greater
uniformity and justice, and respond by doing more and better
work.
Fourth.

It

and the men

for the

is

common interest

day the maximum quantity and

The system

Fifth.

attaining the

and when

is

both the management

way, so as to turn out each

best quality of work.

rapid, while other systems are slow, in

maximum productivity of each machine and man;

maximum is once reached, it is automatically

this

maintained by the differential

Sixth.

of

to cooperate in every

rate.

It automatically selects

and

men for
men who

attracts the best

each class of work, and it develops many first-class

would otherwise remain slow or inaccurate, while at the same
time

it

discourages and

sifts

out

men who

are incurably lazy or

inferior.

Finally.

One

of the chief advantages derived

effects of the

is

that

it

from the above

promotes a most friendly feeling

system
between the men and their employers, and so renders labor
unions and strikes unnecessary.
There has never been a strike under the differential rate sys-

tem

of piece work, although it has been in operation for the past

ten years in the steel business, which has been during this period
more subject to strikes and labor troubles than almost any other

In describing the above system of management, the

industry.
writer has been obUged to refer to other piece work methods, and
to indicate briefly

As but few
index to

its

what he

will care to

contents

is

believes to be their shortcomings.

read the whole paper, the following

given:

SCIENTIFIC

MANAGEMENT

639

INDEX
paragraph

Need of System and Method in Managing Men

System of Managing Men who are Paid by the Day.
Ordinary system of paying men by the position they occupy
of

Bad

1-9
instead

by individual merit

effects of this

Proper method of handling

man and

10

system

fix his

11,

men working by

rate of

pay according

the day is to study each

to his individual merit,

not to pay them by classes

t3~iS> 84-87

Necessity for clerk in managing men

Defects in even the best-managed day work

14. iS
i6 17

Methods of Fixing Piece Work Prices or Rates.

Ordinary Plan of Fixing Rates
Description of Elementary Rate- Fixing
Description of the starting and development of the
rate-fixing

41, 42

39-43
first

elementary

department

44-48
48

Illustration of elementary rate-fixing

Size

and scope

12

of rate-fixing department^

69, 70

Indirect benefits of elementary rate-fixing almost as great as the

direct

74-76

hand-book on the speed with which different kinds of work can

be done badly needed
Systems of Piece Work in Common Use,
Ordinary Piece Work System

67,

19

Defects in this system

30-24

Slight improvement in ordinary piece work system

" Gain Sharing " Plan
" Premium Plan of Paying for Labor "
Benefits and defects of these two systems

The

relation of trades unions to other systems of

26
27, 29

28, 29

30

management

93
31-34

Cooperation or Profit Sharing

Antagonism of interests of employers and workmen in all ordinary
piece work systems
Fundamental basis for harmonious cooperation between workmen
and employers
36, 37, 53-55.
Obstacles to be overcome before both sides can cooperate harmoniously

And

Description of Differential Rate System of Piece

Description of
attained

35
59. 61, 65

38, 39.

principles underlying true cooperation

Advantages of

this

49

53-55. 59. 61, 65

Work

50-52

system

first

68

53-65

application of differential rate, with results

Modification of the differential rate

71,

79-82
72, 73

Illustrations of the possibility of increasing the daily output of

men and machines

78,

79

Relative importance of elementary rate-fixing department and

differential rate

66

MANAGEMENT

SCIENTIFIC

640

There have never been any

system of piece work

Moral

strikes

effect of the various piece

under the

differential rate

83
20-24

work systems on the men

Ordinary systems, differential rate

Probable future development of this system

8&
89-91

Capital demands fully twice the return for money placed

manufacturing enterprises that it does for real estate or trans-

1.

in

And this probably represents the difference

portation ventures.
in the risk between these classes of investments.
2.

Among

the risks of a manufacturing business,

by

far the

that of bad management; and of the three managing

greatest
departments, the commercial, the financiering, and the producis

tive, the latter, in

most

from
and con-

cases, receives the least attention

those that have invested their

money

tains the greatest elements of risk.

in the business,

This risk arises not so

much

from the evident mismanagement, which plainly discloses itself

through occasional strikes and similar troubles, as from the daily
more insidious and fatal failure on the part of the superintendents
to secure anything even approaching the
their men and machines.
3.

It

is

maximum work from

not unusual for the manager of a manufacturing busi-

ness to go most minutely into every detail of the buying and selling and financiering, and arrange every element of these branches

most systematic manner, and according to principles that

have been carefully planned to insure the business against almost
any contingency which may arise, while the manufacturing is
turned over to a superintendent or foreman, with little or no

in the

restrictions as to the principles

sue, either in the

management

and methods which he

of his

men

is

to pur-

or the care of the

com-

pany's plant.

Such managers belong distinctly to the old school of manufacturers; and among them are to be found, in spite of their lack
of system, many of the best and most successful men of the
4.

country.

They

men, not in methods, in the manageand what they would call system in the
departments, would be called red tape by them
Through their keen insight and knowledge of
believe in

ment

of their shops;

office

and

sales

in the factory.

character they are able to select and train good superintendents,

SCIENTIFIC

who

in turn secure

prospers under this

MANAGEMENT

good workmen; and frequently the business

system (or rather, lack of system) for a term

of years.
5.

64I

The modem manufacturer, however,

seeks not only to

and workmen, but to surround

each department of his manufacture with the most carefully
woven net-work of system and method, which should render the
secure the best superintendents

business, for a considerable period, at least, independent of the

any one man, and frequently of any combination of men.

loss of
6.

ment

the lack of this system and method which, in the judgof the writer, constitutes the greatest risk in manufactur-

It

is

it frequently does, the success of the business at

the hazard of the health or whims of a few employees.
7. Even after fully realizing the importance of adopting the

ing; placing, as

best possible system and methods of management for securing

a proper return from employees and as an insurance against
strikes

and the

carelessness

and

laziness of

men, there are

dif-

the problem of selecting methods of management

which shall be adequate to the purpose, and yet be free from red
ficulties in

and inexpensive.
literature on the subject is meagre, especially that
which comes from men of practical experience and observation.
And the problem is usually solved, after but little investigation,
by the adoption of the system with which the managers are most
familiar, or by taking a system which has worked well in similar
tape,
8.

The

lines of
9.

manufacture.

Now, among

the methods of

management

in

common

use

certainly a great choice; and before describing the

"
"
differential rate
system it is desirable to briefly consider the

there

is

more important of the other methods.

"
"
10. The simplest of all
systems is the
day work
which the employees are divided into certain

plan, in

and a
standard rate of wages is paid to each class of men; the laborers
all receiving one rate of
pay, the machinists all another rate, and
classes,

the engineers all another, etc.

The men are paid according to
the position which they fill, and not according to their individual
character, energy,

skill,

and

reliability.

SCIENTIFIC

642
11.

The

effect of this system is distinctly demoralizing and

even the ambitious men soon conclude that since there

levelling;

no

is

do

is

MANAGEMENT

them in working hard, the best thing for them to

work just as httle as they can and still keep their position.

profit to

to

And under
them

all

these conditions the invariable tendency

down even below the level of the medium.

is

to drag

The proper and

legitimate answer to this herding of men

into
classes, regardless of personal character and pertogether
the
formation of the labor union, and the strike,
is
formance,
12.

pay and improve conditions of

employment, or to resist the lowering of wages and other encroachments on the part of employers.
either to increase the rate of

The
when men
13.

necessity for the labor union,^ however, disappears

are paid, and not positions; that is, when the em-

ployers take pains to study the character and performance of

each of their employees and pay them accordingly, when accurate records are kept of each man's attendance, punctuality, the
amount and quality of work done by him, and his attitude

towards his employers and fellow workmen.

As soon as the men recognize that they have free scope for
the exercise of their proper ambition, that as they work harder

wages are from time to time increased, and that

when they recognize
they are given a better class of work to do
them
have
no
use
for
the
labor
union.
best
of
the
this,

and better

their

Every manufacturer must from necessity employ a certain

amount of day labor which cannot come under the piece work
system; and yet how few employers are willing to go to the
trouble and expense of the sUght organization necessary to
How few of them realize that,
handle their men in this way ?
of
an
extra
clerk
and foreman, and a simple
by the employment
system of labor returns, to record the performance and readjust
14.

the wages of their men, so as to stimulate their personal ambition, the output of a gang of twenty or thirty men can be readily
1

For another view

of the relation of scientific

management

to the labor unions,

"
The Relation of Scientific Management to the Wage
Thompson's
"
Scientific Management and the WageProblem," p. 706, and F. T. Carlton's

see C. B.

Earner," p. 721.

Ed.

MANAGEMENT

643

and at a comparatively

slight increase of

SCIENTIFIC
doubled in

many

cases,

wages per capita!

The

15.

the particular horror of the

realizes the expense each time that

clerk in the factory

He

old-style manufacturer.

he looks at him, and

is

fails to see

any adequate return; yet by

the plan here described the clerk becomes one of the most valuable agents of the company.
If the

16.

performance

plan of grading labor and recording each man's

is

so

much

handling men, why

foreman can watch and

superior to the old day work method of

not all that is required ?
Because no
men
all
all
of
his
of
the
time, and
study

is it

because any system of laying out and apportioning work, and of

returns and records,

which is sufficiently elaborate to keep

account
of
the
proper
performance of each workman, is more
than
It is evident that that system is
complicated
piece work.
the best which, in attaining the desired result, presents in the
long run the course of least resistance.
17. The inherent and most serious defect of even the best

managed day work

lies in

the fact that there

is

nothing about

the system that is self-sustaining.

When once the men are
working at a rapid pace, there is nothing but the constant, unremitting watchfulness and energy of the management to keep

them
that

and

there;
is

while with every form of piece work each

new

rate

fixed insures a given speed for another section of work,

foreman from worry.

the best type of day work to ordinary piece work
the step is a short one.
With good day work the various operations of manufacturing should have been divided into small secto that extent relieves the

18.

From

tions or jobs, in order to properly gauge the efficiency of the men;

and the quickest time should have been recorded in which each
The change from paying by the
operation has been performed.

hour to paying by the job is then readily accompHshed.

19. The theory upon which the ordinary system of piece work
operates to the benefit of the manufacturer is exceedingly simple.
Each workman, with a definite price for each job before him,
contrives a way of doing it in a shorter time, either by working

harder or by improving his method; and he thus makes a larger'

SCIENTIFIC

644

MANAGEMENT

After the job has been repeated a number of times at the

more rapid rate, the manufacturer thinks that he should also

profit.

begin to share in the gain, and therefore reduces the price of the
job to a figure at which the workman, although working harder,
earns, perhaps,

but httle more than he originally did when on

day work.
20. The actual working of the system, however, is far different.
Even the most stupid man, after receiving two or three piece
"
"
work cuts as a reward for his having worked harder, resents
this treatment and seeks a remedy for it in the future.
Thus

begins a war, generally an amicable war, but none the less a war,
between the workmen and the management. The latter endeavors

by every means

to induce the

workmen

to increase the out-

put, and the men gauge the rapidity with which they work, so
as never to earn over a certain rate of wages, knowing that if
they exceed this amount the piece work price will surely be cut,

sooner or later.

But the war is by no means restricted to piece work.

Every intelUgent workman realizes the importance, to his own
interest, of starting in on each new job as slowly as possible.
There are few foremen or superintendents who have anything
21.

but a general idea as to how long it should take to do a piece of

work that is new to them. Therefore, before fijdng a piece work
price,

they prefer to have the job done for the

first

time by the

They watch the progress of the work as closely as their

day.
other duties will permit, and make up their minds how quickly
It becomes the workman's interest then to go
it can be done.
just as slowly as possible, and still convince his foreman that he
is

working

well.

The

extent to which, even in our largest and best-managed

"
markestablishments, this plan of holding back on the work
"
is carried on by the
ing time," or
soldiering," as it is called
22.

men, can scarcely be understood by one who has not worked

among them. It is by no means uncommon for men to work at
the rate of one-third, or even one-quarter, their maximum speed,
and still preserve the appearance of working hard. And when

a rate has once been fixed on such a

false basis, it is

easy for the

SCIENTIFIC

MANAGEMENT

"

men
term

645

"

of this sort through a

to nurse successfully
a soft snap
of years, earning in the meanwhile just as much wages as

they think they can without having the rate cut.

23. Thus arises a system of hypocrisy and deceit on the part
of the men which is thoroughly demoralizing, and which has led

many workmen

to regard their employers as their natural en-

emies, to be opposed in whatever they want, believing that whatever is for the interest of the management must necessarily be to
their detriment.
24.

the

The

men

effect of this

is,

in

many

system of piece work on the character of

make

cases, so serious as to

it

doubtful

whether, on the whole, weU-managed day work is not preferable.

25. There are several modifications of the ordinary method
of piece

know

of

work which tend

to lessen the evils of the system, but I

that
can
eradicate
the fundamental causes for war,
none

and enable the managers and the men to heartily cooperate in

It is
obtaining the maximum product from the establishment.
the writer's opinion, however, that the differential rate system
work, which will be described later, in most cases en-

of piece
tirely

harmonizes the interests of both parties.

One method of temporarily reb'eving the strain between

workmen and employers consists in reducing the price paid for
work, and at the same time guaranteeing the men against further
reduction for a definite period.
If this period be made sufficiently long, the men are tempted to let themselves out and earn
"
"
as much money as they can, thus
their own job by
spoiling
"
"
another
cut
in rates when the period has expired.
26.

27. Perhaps the most successful modification of the ordinary

"
system of piece work is the gain sharing plan." This was invented by Mr. Henry R. Towne, in 1886, and has since been
extensively and successfully applied by him in the Yale & Towne

Manufacturing Co., at Stamford, Conn.

It

was admirably

described in a paper which he read before this Society in 1888.

This system of paying men is, however, subject to the serious,

and

I think fatal, defect that it

does not recognize the personal

merit of each workman; the tendency being rather to herd men

SCIENTIFIC

646

MANAGEMENT

together and promote trades unionism, than to develop each

man's individuality.
28. A still further improvement of this method was made
by
Mr. F. A. Halsey, and described by him in a paper entitled
"
The Premium Plan of Paying for Labor," and presented to this
Society in 1891.^ Mr. Halsey's plan allows free scope for each

man's personal ambition, which Mr. Towne's does not.

29. Messrs. Towne and Halsey's plans consist briefly in recording the cost of each job as a starting-point at a certain time;
then, if, through the effort of the workmen in the future, the job

done in a shorter time and at a lower cost, the gain

among the workmen and the employer in a definite

is

workmen
30.

receiving, say, one-half, and the employer

Under this plan, if the employer hves up to

and the workman has confidence

is

divided

ratio, the

one-half.
his promise,

in his integrity, there is the

proper basis for cooperation to secure sooner or later a large

increase in the output of the estabhshment.

Yet there
"

soldier

"

still

workman

remains the temptation for the

or hold back while

on day work, which

is

to

the most

And in this as well as in all the

thing to overcome.
referred
heretofore
to, there is the common defect:
systems
that the starting-point from which the first rate is fixed is undifficult

Some of the rates may have resulted from

equal and unjust.
records obtained when a good man was working close to his

maximum

speed, while others are based on the performance of

a medium man at one-third or one-quarter speed.
From this
follows a great inequality and injustice in the reward even of

the same

man when

from a realization

far

at

work on

The

different jobs.

of the ideal condition in

result is

which the same

uniformly received for a given expenditure of brains

and energy. Other defects in the gain sharing plan, and which
return

is

the differential rate system, are

it
is
slow and irregular in its operation in reducing
That
(i)
costs, being dependent upon the whims of the men working

are corrected

under

it.

See Transactions of the American Society of Mechanical Engineers, Vol. 12,

p.

by

755.

Ed.

MANAGEMENT

SCIENTIFIC
(2)

That

it fails

to especially attract first class

647

men and

dis-

courage inferior men.

does not automatically insure the maximum out(3) That it
establishment
the
of
per man and machine.
put
or
profit sharing, has entered the mind of
31. Cooperation,

every student of the subject as one of the possible and most

attractive solutions of the problem;

and there have been certain

instances, both in England and France, of at least a partial

success of cooperative experiments.

So far as I know, however, these trials have been

made

either

remote from the manufacturing centres, or in

which in many respects are not subject to ordinary

in small towns,

industries

manufacturing conditions.
Cooperative experiments have

and, I think, are

generally destined to fail, for several reasons, the first and most
important of which is that no form of cooperation has yet been
32.

failed,

is allowed free scope for his

This
always has been and will remain a
personal ambition.
more powerful incentive to exertion than a desire for the general

devised in which each individual

welfare.

The few misplaced

drones,

equally in the profits with the rest,

to drag the better
33.
lies

men down toward

The second and almost

who do

the loafing and share

under cooperation are sure

their level.

equally strong reason for failure

in the remoteness of the reward.

The average workman

which is
(I don't say all men) cannot look forward to a profit
The
nice
time
which
or
a
months
six
they are sure
year away.
to have to-day, if they take things easily, proves more attractive
than hard work, with a possible reward to be shared with others
six

months

later.

34. Other and formidable

difficulties in

the path of coopera-

tion are the equitable division of the profits, and the fact that,
while workmen are always ready to share the profits, they are

Further than this,

neither able nor willing to share the losses.
in many cases, it is neither right nor just that they should share
either in the profits or the losses, since these may be due in great
part to causes entirely beyond their influence or control, and to
which they do not contribute.

SCIENTIFIC

648
35.

When we do

between the

MANAGEMENT

recognize the real antagonism that exists

men and their employers, under all

work in common use; and when we re-

interests of the

of the systems of piece

member

the apparently irreconcilable conflict implied in the

fundamental and perfectly legitimate aims of the two: namely,

on the part of the men:

THE UNIVERSAL DESIRE TO RECEIVE THE LARGEST POSSIBLE
WAGES FOR THEIR TIME.
And on the part of the employers
THE DESIRE TO RECEIVE THE LARGEST POSSIBLE RETURN
FOR THE WAGES PAID.
What wonder that most of us arrive at the conclusion that no
system of piece work can be devised which shall enable the two
to cooperate without antagonism, and to their mutual benefit ?
36. Yet it is the opinion of the writer, that even if a system
has not already been found which harmonizes the interests of
the two, still the basis for harmonious cooperation lies in the
two following facts
First. That the workmen in nearly ^ every trade can and will
:

materially increase their present output per day, providing they are
assured of a permanent and larger return jor their time than they

have heretofore received.

Second. That the employers can well afford to pay higher wages
per piece even permanently, providing each man and machine in the
establishment turns out a proportionately larger amount of work.
37. The truth of the latter statement arises from the well-

recognized fact that, in most Unes of manufacture, the indirect

expenses equal or exceed the wages paid directly to the work-

men, and that these expenses remain approximately constant,

whether the output of the establishment is great or small.
'

The

writer's

knowledge of the speed attained in the manufacture of

very limited.

textile

It is his opinion, however, that

owing to the comparative

uniformity of this class of work, and the enormous number of machines and men
engaged on similar operations, the maximum output per man and machine is
more nearly realized in this class of manufactures than in any other. If this is
goods

is

the case, the opportunity for improvement does not exist to the same extent here
Some illustrations of the possible increase in the daily out-

as in other trades.

put of men and machines are given

in paragraphs 78 to 82.

SCIENTIFIC

From

MANAGEMENT

this it follows that it is

649

always cheaper to pay higher

wages to the workmen when the output

is proportionately inthe diminution in the indirect portion of the cost per

Many manupiece being greater than the increase in wages.
of
the
cost
fail
to realize the
in
facturers,
considering
production,

creased;

that the volume of output has on the cost.

They lose sight
of the fact that taxes, insurance, depreciation, rent, interest,
salaries, office expenses, miscellaneous labor, sales expenses, and
ejffect

frequently the cost of power (which in the aggregate amount to

as much as wages paid to workmen) remain about the same
whether the output of the establishment is great or small.

In our endeavor to solve the piece work problem by the

appUcation of the two fundamental facts above referred to, let
38.

us consider the obstacles in the path of harmonious cooperation,

and suggest a method for their removal.
39. The most formidable obstacle is the lack of knowledge
on the part of both the men and the management (but chiefly
the latter) of the quickest time in which each piece of work can

be done;

or, briefly, the lack of

accurate time-tables for the work

of the place.
40.

The remedy

for this trouble lies in the establishment in

every factory of a proper rate-fixing department;

a department
equal respect with

shall have equal dignity and command

the engineering and managing departments, and which shall be

which

organized and conducted in an equally scientific and practical

manner.

The

rate-fixing, as at present conducted, even in our bestestablishments, is very similar to the mechanical enMechanical engineering
gineering of fifty or sixty years ago.
at that time consisted in imitating machines which were in more

41.

managed

or less successful use, or in guessing at the dimensions and

strength of the parts of a new machine; and as the parts broke

down

Thus
or gave out, in replacing them with stronger ones.
each new machine presented a problem almost independent of
former designs, and one which could only be solved by months
or years of practical experience and a series of break-downs.

SCIENTIFIC

650

MANAGEMENT

Modern engineering, however, has become a study, not of

individual machines, but of the resistance of materials, the funof mechanics, and of the elements of design.
other
the
42.
hand, the ordinary rate-fixing (even the
best of it), Hke the old-style engineering, is done by a foreman

damental principles

On

or superintendent, who, with the aid of a clerk, looks over the

record of the time in which a whole job was done as nearly like

new one

as can be found, and then guesses at the time renew job. No attempt is made to analyze and
do
the
quired to
time each of the classes of work, or elements of which a job is

the

a far simpler task to resolve each job

careful study of the quickest time

composed; although

it is

into its elements, to

make a

which each

in

of the elementary operations can be done,

and

then to properly classify, tabulate, and index this information,

and use it when required for rate-fixing, than it is to fix rates,
with even an approximation to justice, under the common sys-

tem

of guessing.

In

43.

the

work

fact, it

has never occurred to most superintendents that

of their establishments consists of various combinations

of elementary operations

which can be timed

in this

way; and a

a practical way of dealing with the piece

work problem usually meets with derision, or, at the best, with
"
It might do for some simple business, but my
the answer that
suggestion that this

work

is

44.

is

entirely too complicated."

Yet

this

elementary system of fixing rates has been in suc-

cessful operation for the past ten years,

on work complicated in

nature, and covering almost as wide a range of variety as any

In 1883, while foremanufacturing that the writer knows of.
man of the machine shop of the Mid vale Steel Company of Phil-

its

adelphia, it occurred to the writer that it was simpler to time

each of the elements of the various kinds of work done in the
place,

and then

find the quickest time in

which each job could

be done, by summing up the total times of its component parts,

than it was to search through the records of former jobs, and
After practising this method of rateguess at the proper price.
for
a
himself
about
fixing
year, as well as circumstances would
that the system was a success.
evident
it
became
The
permit,

SCIENTIFIC

MANAGEMENT

65 1

writer then established the rate-fixing department, which has

given out piece work prices in the place ever since.

This department far more than paid for itself from the
very start; but it was several years before the full benefits of
the system were felt, owing to the fact that the best methods of
45.

making and recording time observations of work done by the

men, as well as of determining the maximum capacity of each of
the machines in the place, and of making working-tables and
time-tables were not at
46.

first adopted.
Before the best results were finally attained in the case of

work done by metal-cutting tools, such as lathes, planers, boring

mills, etc., a long and expensive series of experiments was made,
to determine, formulate, and finally practically apply to each
machine the law governing the proper cutting speed of tools;
namely, the effect on the cutting speed of altering any one of the
following variables: the shape of the tool {i. e., lip angle, clearance angle, and the line of the cutting edge), the duration of the
cut, the quaUty or hardness of the metal being cut, the depth of

the cut, and the thickness of the feed or shaving.^

47. It is the writer's opinion that a more complicated and
difficult piece of rate-fixing could not be found than that of deall kinds of machine work
and iron castings and forgings, which vary
in their chemical' composition from the softest iron to the hardest
tool steel.
Yet this problem was solved through the rate-fixing
"
department and the differential rate," with the final result of
completely harmonizing the men and the management, in place
At the
of the constant war that existed under the old system.
same time the quality of the work was improved, and the output
of the machinery and the men was doubled, and, in many cases,
trebled.
At the start there was naturally great opposition to
the rate-fixing department, particularly to the man who was

termining the proper price for doing

on miscellaneous

steel

taking time observations of the various elements of the work;

but when the men found that rates were fixed without regard to

W.

"

The Art of Cutting Metals," in Transactions of The

American Society of Mechanical Engineers, Vol. 28, p. 31. Published by same
Ed.
Society in book form, 1907.
'

See F.

Taylor's

MANAGEMENT

SCIENTIFIC

652

the records of the quickest time in which they had actually done
each job, and that the knowledge of the department was more
"
solaccurate than their own, the motive for hanging back or
"
with
and
it
the
cause
for
work
on
this
ceased,
greatest
diering

antagonism and war between the men and the management.

48. As an illustration of the great variety of work to which
elementary rate-fixing has already been successfully applied
the writer would state that, while acting as general manager of
two large sulphite pulp mills, he directed the application of
piece work to all of the complicated operations of manufacturing,

throughout one of these mills, by means of elementary rate-fixing,

with the result, within eighteen months, of more than doubling
the output of the mill.
difference between elementary rate-fixing and the ordinary
can
plan
perhaps be best explained by a simple illustration.
the
work to be planing a surface on a piece of cast iron.
Suppose

The

In the ordinary system the rate-fixer would look through his

records of work done by the planing machine, until he found a
piece of work as nearly as possible similar to the proposed job,
and then guess at the time required to do the new piece of work.

Under the elementary system, however, some such

the following would be

made

Work done by man

Time
Time
Time
Time
Time
Time

analysis as

Minutes

piece from floor to planer table

to level and set work true on table
to

lift

to put on stops and bolts

.y.
to remove stops and bolts
.

remove piece to floor

to clean machine
to

Work done by machine

Minutes

Time to rough off cut \ in. thick, 4 feet long, 25 ins. wide.
Time to rough off cut | in. thick, 3 feet long, 12 ins. wide, etc.
Time to finish cut 4 feet long, 25 ins. wide
Time to finish cut 3 feet long, 12 ins. wide, etc.
.^^^^
Total

Add

per cent for unavoidable delays

It is evident that this job consists of a

combination of

ele-

mentary operations, the time required to do each of which can

be readily determined by observation.

MANAGEMENT

SCIENTIFIC

This exact combination of operations

may

653

never occur again,

but elementary operations similar to these will be performed in

differing combinations almost every day in the same shop.

A man whose business it is to fix rates soon becomes so familiar

with the time required to do each kind of elementary work performed by the men that he can write down the time from

memory.
In the case of that part of the work which

machine the

rate-fixer refers to tables

is done by the
which are made out for

each machine, and from which he takes the time required for any
combination of breadth, depth, and length of cut.
49. While, however, the accurate knowledge of the quickest
time in which work can be done, obtained by the rate-fixing

department and accepted by the men as standard, is the greatest

and most important step towards obtaining the maximum output of the establishment, it is one thing to know how much work
can be done in a day, and an entirely different matter to get
even the best
near
50.

most

men

to

work at

their fastest speed or

anywhere

it.

The means which

the writer has found to be

effective in obtaining the

maximum

by

far the

output of a shop, and

which, so far as he can see, satisfies the legitimate requirements,

both of the men and the management, is the differential rate
system of piece work.

This consists briefly in paying a higher price per piece, or per

if the work is done in the shortest
possible time,
and without imperfections, than is paid if the work takes a

unit, or per job,

longer time or

imperfectly done.
51. To illustrate: Suppose 20 units or pieces to be the largest
amount of work of a certain kind that can be done in a day.
Under the differential rate system, if a workman finishes 20
is

pieces per day, and all of these pieces are perfect, he receives,
20 = $3.
say, 15 cents per piece, making his pay for the day 15

however, he works too slowly and turns out, say, only 19

pieces, then, instead of receiving 15 cents per piece he gets only
If,

12 cents per piece, making his

instead of $3 per day.

pay

for the

day

12

19

$2.28,

SCIENTIFIC

654
If
fect,

MANAGEMENT

he succeeds in finishing 20 pieces, some of which are imperthen he should receive a still lower rate of pay, say, 10 cents

or 5 cents per piece, according to circumstances,

for the day $2, or only $1, instead of $3.

making

his

pay

that this style of piece work is directly

52. It will be observed
To make the difference bethe opposite of the ordinary plan.
more
clear:
methods
two
tween the
Supposing, under the ordinary system of piece work, that the workman has been turning

out 16 pieces per day, and has received 15 cents per piece, then
wages would be 15 X 16 = $2.40.
Through extra
in
his
20 pieces per
succeeds
to
he
exertion
increasing
output
his day's

= $3. The
day, and thereby increases his pay to 15 X 20
employer, under the old system, however, concludes that $3 is
too much for the man to earn per day, since other men are only
getting from $2.25 to $2.50, and therefore cuts the price from
15 cents per piece to 12 cents, and the man finds himself working

at a
12

more rapid pace, and yet earning only the same old wages,
What wonder that men do not care
20 = $2.40 per day.

to repeat this performance

many

times

53. Whether cooperation, the differential plan, or some other

form of piece work be chosen in connection with elementary

rate-fixing as the best

method

of working, there are

certain

fundamental facts and principles which must be recognized and

incorporated in any system of management, before true and lasting success can be attained;
ciples will

and most

of these facts

and prin-

be found to be not far removed from what the strictest

morahsts would

call justice.

54. The most important of these facts is that men will not
DO AN EXTRAORDINARY DAY's WORK FOR AN ORDINARY DAY's

pay; and any attempt on the part of employers to get the best
work out of their men and give them the standard wages paid by

and ought to be, doomed to failure.

55. Justice, however, not only demands for the workman an
increased reward for a large day's work, but should compel him
to suffer an appropriate loss in case his work falls off either in
their neighbors will surely be,

It is quite as important that the deducquantity or quality.

tions for bad work should be just, and grg,ded in proportion to

SCIENTIFIC

MANAGEMENT

655

the shortcomings of the workman, as that the reward should be

proportional to the work done.

The

fear of being discharged,

which

practically the only-

is

penalty applied in

many establishment,
entirely inadequate
to producing the best quantity and quality of work; since the
workmen find that they can take many liberties before the management makes up
56.

is

its

mind

to apply this extreme penalty.

It is clear that the differential rate satisfies automatically,

were, the above conditions of properly graded rewards and

deductions.
Whenever a workman works for a day (or even a
as

it

maximum, he
unusually high wages; but when he
shorter period) at his

receives under this system

falls off either in quantity

or quality from the highest rate of efficiency his

even the ordinary.^
57.

which

The lower

differential rate should

will allow the

pay when he

workman

falls off

from

his

falls

below

be fixed at a figure

to earn scarcely

maximum

pay

an ordinary day's

pace, so as to give

him

every inducement to work hard and well.

58. The exact percentage beyond the usual standard which
must be paid to induce men to work to their maximum varies
with different trades and with different sections of the country.

And

there are places in the United States where the men (generally speaking) are so lazy and demoralized that no sufficient
inducement can be offered to make them do a full day's work.*
59. It is not, however, sufficient that each workman's ambition
should be aroused by the prospect of larger pay at the end of
even a comparatively short period of time.
The stimulus to

maximum

exertion should be a daily one.

This involves such vigorous and rapid inspection and returns

as to enable each workman in most cases to know each day the
exact result of his previous day's work

succeeded in earning his

'

In practice the low rate

is

maximum

rate.
*

Ed.

This

is

well illustrated

men

trifle

above, the prevailing rate

of course, considerably

fact that

whether he has

the

above the customary

same company which

working to advantage in Philadelphia is unable to apply

Ed.
working in one of its plants in Chicago.

differential rate

class of

by the

is,

t. .,

pay, and exactly what his

usually set at, or a

in the vicinity; while the high rate

finds the
it

to the

6s 6

SCIENTIFIC

MANAGEMENT

losses are for careless or defective work.

moral

effect, either of a

reward or penalty,

Two-thirds of the
is lost

by even a short

postponement.
It will again

60.

forces this condition

since the

men,

be Aoted that the differential rate system

both upon the management and the work-

men, while working under

it,

are above

all

anxious

know

at the earliest possible minute whether they have earned

to
And it is equally important for the mantheir high rate or not.
whether
to
know
the work has been properly done.
agement

As

61.

far as possible each

and measured separately, and

his individual efforts alone.

upon
that

man's work should be inspected

pay and losses should depend

his

much

running

of the

roll-trains,

It

of

course,
necessity

such,
instance, as
manufacturing

or
machines
should be
hammers,
paper

work

of

is,

for

done by gangs of men who cooperate to turn out a common

product, and that each gang of men should be paid a definite
price for the work turned out, just as if they were a single man.
In the distribution of the earnings of a gang among its members, the percentage which each man receives should, however,
depend not only upon the kind of work which each man performs,

but upon the accuracy and energy with which he fills his position.
In this way the personal ambition of each of a gang of men

may

be given

its

proper scope.

we

find the differential rate acting as a most powerful lever to force each man in a gang of workmen to do his best;
62.

Again,

through the carelessness or laziness of any one man, the

earn its high rate, the drone will surely be obliged
gang
by his companions to do his best the next time or else get out.
since

if,

fails to

great advantage of the differential rate system is that

quickly drives away all inferior workmen, and attracts the

63.
it

men

work to which it is applied; since

none but really good men can work fast enough and accurately
enough to earn the high rate; and the low rate should be made
so small as to be unattractive even to an inferior man.
64. If for no other reason than it secures to an establishment
a quick and active set of workmen, the differential rate is a valuable aid, since men are largely creatures of habit; and if the
best suited to the class of

SCIENTIFIC

MANAGEMENT

piece workers of a place are forced to

hard the day workers soon get into the
shop takes on a more rapid pace.

The

65.

657

move

quickly and work

same way, and the whole

greatest advantage, however, of the differential rate

for piece work, in connection with a proper rate-fixing department,

is that together they produce the proper mental attitude on the
In
part of the men and the management toward each other.
of
the
and
indolence
indifference
which
characterize
the
place

workmen of many day work establishments, and to a considerable

extent also their employers; and in place of the cpnstant watchfuhiess, suspicion, and even antagonism with which too fre-

men and the management regard each other, under

the ordinary piece work plan, both sides soon appreciate the fact
that with the differential rate it is their common interest to co-

quently the

operate to the fullest extent, and to devote every energy to turnThis common interest
ing out daily the largest possible output.
quickly replaces antagonism, and establishes a most friendly
feeling.

66. Of the two devices for increasing the output of a shop,

the differential rate and the scientific rate-fixing department,
The differential rate is
the latter is by far the more important.

invaluable at the start, as a

management is in earnest in
for

hard work; and

it

means

of convincing

men

intention of paying a
at all times furnishes the best
its

that the

premium
means of

maintaining the top notch of production; but when, through its

application, the men and the management have come to appreciate the

mutual benefit

of

harmonious cooperation and respect

an absolute necessity. On

for each other's rights, it ceases to be

the other hand, the rate-fixing department, for an establishment

doing a large variety of work, becomes absolutely indispensable.

The longer it is in operation the more necessary it becomes.
67.

Practically, the greatest

wishing to start a rate-fixing

need

felt

department

in
is

an establishment

the lack of data as

to the proper rate of speed at which work should be done.

There are hundreds of operations which are common to

lem

for itself,

most

yet each concern studies the speed proband days of labor are wasted in what should be

large establishments;

settled once for

all

MANAGEMENT

SCIENTIFIC

658

all,

and recorded in a form which

is

available to

manufacturers.

What

a hand-book on the speed with which

work can be done, similar to the elementary engineering handAnd the writer ventures to predict that such a book
books.
68.

is

needed

is

Such a book should describe

making, recording, tabulating, and indexing
time observations, since much time and effort are wasted by the

will before long

the best

method

be forthcoming.
of

adoption of inferior methods.

69.

The term

able sound.
in

In

"
rate-fixing

department

"

has rather a formid-

fact, however, that department should consist

most estabUshments

of one

man, who,

in

many

cases,

need

give only a part of his time to the work.

70. When the manufacturing operations are uniform in character,

and repeat themselves day

after

day

as, for instance, in

the whole work of the place can be put

paper or pulp mills
upon piece work in a comparatively short time; and when once

proper rates are fixed, the rate-fixing department can be dispensed

with, at any rate until some new hne of manufacture is taken up.

The system

was first applied by the

writer to a part of the work in the machine shop of the Mid vale
Its effect in increasing and then mainSteel Company, in 1884.
machine to which it was appHed was
each
the
of
output
taining
remarkable that it soon came into
and
so
almost immediate,
It was
high favor, with both the men and the management.
of
the
work
of
to
a
the
establishpart
great
appUed
gradually
71.

ment, with the

of differential rates

result, in

combination with the rate-fixing de-

doubUng and in many cases trebling the output,

and at the same time increasing instead of diminishing the accu-

partment, of

racy of the work.

72. In some cases

it was applied by the rate-fixing department

without an elementary analysis of the time required to do the
work; simply offering a higher price per piece providing the
maximum output before attained was increased to a given extent.

Even

this

system met with success, although it is by no means

is no certainty that the reward is in just pro-

correct, since there

portion to the efforts of the workmen.

SCIENTIFIC

MANAGEMENT

659

In cases where large and expensive machines are used,

such as paper machines, steam hammers, or rolling mills, in
which a large output is dependent upon the severe manual labor
73.

as well as the skill of the

workmen

(while the chief cost of piro-

duction Ues in the expense of running the machines rather than

in the wages paid), it has been found of great advantage to establish two or three differential rates, offering a higher and higher

maximum

price per piece or per ton as the

possible output

is

approached.

As before

stated, not the least of the benefits of elementary

rate-fixing are the indirect results.
The careful study of the capabilities of the machines, and the
74.

analysis of the speeds at which they must run, before differential

rates can be fixed which will insure their maximum output, al-

most invariably

and then correcting the

method of running and caring

result in first indicating

defects in their design,

and

in the

for them.
75.

In the case of the Midvale Steel Company, to which I

referred, the machine shop was equipped with

have already

standard tools furnished by the best makers, and the study of

these machines, such as lathes, planers, boring mills, etc., which

was made in fixing rates, develof)ed the fact that they were none
them designed and speeded so as to cut steel to the best adAs a result, this company has demanded alterations
vantage.
from the standard in almost every machine which they have

of

bought during the past eight years.

They have themselves been

obliged to superintend the design of

would not have been thought of had

many
it

special tools

which

not been for elementary

rate-fixing.

But what

perhaps, of more importance still, the ratehas

shown the necessity of carefully systemfixing department
atizing all of the small details in the running of each shop; such
76.

is,

as the care of belting, the proper shaf)e for cutting tools, and the
dressing, grinding, and issuing same, oiHng machines, issuing
orders for work, obtaining accurate labor and material returns,
and a host of other minor methods and processes. These details,

which are usually regarded as

of comparatively small importance,

SCIENTIFIC

66o

MANAGEMENT

and many of which are left to the individual judgment of the

foreman and workmen, are shown by the rate-fixing department
be of paramount importance in obtaining the maximum outand systematic study and
put, and to require the most careful
to

attention in order to insure uniformity and a fair and equal

chance for each workman.

Without

this

preUminary study and

systematizing of details, it is impossible to apply successfully

the differential rate in most establishments.
77.

As before

system of piece work

the possibihty of materially inand per machine, providing the

stated, the success of this

depends fundamentally upon

creasing the output per man
proper man be found for each job and the proper incentive be
offered to him.

between what ought

to be done by a workman well suited to his job, and what is
generally done, I will mention a single class of work, performed
78.

As an

illustration of the difference

In shovelling
in almost every establishment in the country.
on
to
a
one
man
should
unload
over
the
side
coal from a car
pile
forty tons per day, and keep it up, year in and year out, and
thrive under

it.

knowledge of the possibilities I have never failed to

find men who were glad to work at this speed for from four and

With

this

a half to
coal in

five cents

most

per ton.

places, however,

The average speed

is

for unloading

nearer fifteen than forty tons

In securing the above rate of speed it must be clearly

understood that the problem is not how to force men to work
per day.

harder or longer hours than their health will permanently allow;

first, to select among the laborers which are to be

but, rather,

found in every community the men who are physically able to

work permanently at that job, and at the speed mentioned, without damage to their health, and who are mentally sufficiently
inert to be satisfied with the monotony of the work, and then, to
offer them such inducements as will make them
happy and contented in doing so.
79. The first case in which a differential rate was applied
furnishes a good illustration of what can be accomplished by it.

SCIENTIFIC

MANAGEMENT

66 1

A standard steel forging, many thousands of which are used

each year, had for several years been turned at the rate of from
four to five per day under the ordinary system of piece work, 50
cents per piece being the price paid for the work.
After analyzing the job and determining the shortest time required to do
each of the elementary operations of which it was composed
and then summing up the total, the writer became convinced

was possible to turn ten pieces a day. To finish the forgat

this rate, however, the machinists were obUged to work
ings
at their maximum pace from morning to night, and the lathes
that

it

were run as

fast as the tools

would

allow,

and under a heavy

feed.

It will

be appreciated that

this

was a big day's work, both

for

men and

machines, when it is understood that it involved removing, with a single 16-inch lathe, having two saddles, an
average of more than 800 pounds of steel chips in ten hours.

In place of the 50-cent rate that they had been paid before, they
were given 35 cents per piece when they turned them at the
speed of 10 per day, and when they produced

less

received only 25 cents per piece.

80. It took considerable trouble to induce the
this high speed, since
it

was the intention

they did not at

of the firm to allow

first fully

them

than

men

10,

they

to turn at

appreciate that

to earn

permanently

But from the day they first turned

at the rate of $3.50 per day.
10 pieces to the present time, a period of more than ten years,
the

day

men who

understood their work have scarcely failed a single

to turn at this rate.

Throughout that time,

ginning of the recent fall in the scale of

until the be-

wages throughout the

country, the rate was not cut.

81. During this whole period the competitors of the company
never succeeded in averaging over half of this production per
lathe, although they knew and even saw what was being done

They, however, did not allow their men to earn

over from $2 to $2.50 per day, and so never even approached
at Midvale.

the

maximum

output.
following table will show the economy of paying high
wages under the differential rate in doing the above job
82.

The

662

SCIENTIFIC

MANAGEMENT

COST OF PRODUCTION PER LATHE PER DAY

Ordinary system of piece work

Man's wages
Machine cost
Total cost

DifFerential rate

$2.50
3.37

f)er

day

$5.87

5 pieces produced.

Cost per piece

The above

$1.17

result

$350
3.37

Total cost per day

10 pieces produced.

Cost per piece

was mostly, though not

The

system

Man's wages
Machine cost

$6.87

$0.69

entirely,

due to the

superior system
managing all of the
small details of the shop counted for considerable.
83. There has never been a strike by men working under

differential rate.

differential rates,

of

although these rates have been applied at the

Midvale Steel Works

for the past ten years; and the steel business has proved during this period the mq^t fruitful field for
And this notwithstanding the
labor organizations and strikes.
its men from joining
in the company saw
of
men
labor
All
the
best
organization.
any
a
success
of
labor
that
the
organization meant the lowerclearly

Midvale Company has never prevented

ing of their wages, in order that the inferior men might earn
more, and, of course, could not be persuaded to join.
84.

I attribute a great part of this success in avoiding strikes

wages which the best men were able to earn with

the differential rates, and to the pleasant feeling fostered by
It has
this system; but this is by no means the whole cause.
to the high

for years been the policy of that company to stimulate the personal ambition of every man in their employ, by promoting

wages or position whenever they deserve it, and

the opportunity came.
A careful record has been kept of each man's good points as
well as his shortcomings, and one of the principal duties of each

them

either in

foreman was to make

this careful

study of his men, so that sub-

When men, throughout

stantial justice could be done to each.
an establishment, are paid varying rates of day work wages,
according to their individual worth, some being above and some
below the average, it cannot be for the interest of those receiving
high pay to join a union with the cheap men.

SCIENTIFIC

MANAGEMENT

663

No

system of management, however good, should be

wooden way. The proper personal relations should
always be maintained between the employers and men; and
even the prejudices of the workmen should be considered in
85.

applied in a

dealing with them.

The employer who goes through his works with kid gloves on,
and is never known to dirty his hands or clothes, and who either
talks to his

not at

all,

men in a condescending or patronizing way, or else

has no chance whatever of ascertaining their real

thoughts or feelings.
86.

their

Above all is it desirable that men should be talked to on

own level by those who are over them. Each man should

be encouraged to discuss any trouble which he

in the works or outside, with those over him.
rather even be blamed
"

by

may have, either

Men would far

their bosses, especially

if

the

"
tearing

human

nature and feeling in it, than to be

without
a word, and with no more notice
after
passed by day
day
than if they were part of the machinery.

out

has a touch of

The opportunity which each man should have of airing his

mind freely, and having it out with his employers, is a safetyvalve; and
to

and

if

the superintendents are reasonable men, and listen

what their men have to say, there is

treat with respect

absolutely no reason for labor unions and strikes.

87. It is not the large charities (however generous they may
be) that are needed or appreciated by workmen, such as the

founding of libraries and starting workingmen's clubs, so

much

as small acts of personal kindness and sympathy, which establish a bond of friendly feeling between them and their employers.

The moral effect of the writer's system on the men is

The feeling that substantial justice is being done
them renders them on the whole much more manly, straightforward, and truthful.
They work more cheerfully, and are
88.

marked.

more obliging to one another and their employers.

They are
not soured, as under the old system, by brooding over the injustice done them; and their spare minutes are not spent to the
same extent

in criticising their employers.

SCIENTIFIC

664

MANAGEMENT

A noted French engineer and steel manufacturer, who recently

spent several weeks in the works of the Midvale Company in
introducing a new branch of manufacture, stated before leaving
that the one thing which had impressed him as most unusual
and remarkable about the place was the fact that not only the
foremen, but the workmen, were expected to and did in the main
the truth in case of any blunder or carelessness, even
they had to suffer from it themselves.
tell

89.

From what

the writer has said he

is

afraid that

when

many

may gain the impression that he regards elementary

rate-fixing and the differential rate as a sort of panacea for all

readers

human

ills.

This

is,

however, far from the case.

possibilities of these

methods as

great, he

While he regards the

is of the opinion, on

the contrary, that this system of management will be adopted

but few estabhshments, in the near future, at least; since

by
its

really successful application not only involves a thorough or-

ganization, but requires the machinery and tools throughout

the place to be kept in such good repair that it will be possible
for the

workmen each day

But few manufacturers. will

to

produce their

maximum

output.
care to go to this trouble until they

are forced to.

90.

It is his opinion that the

most successful manufacturers,

those who are always ready to adopt the best machinery and
methods when they see them, will gradually avail themselves of

the benefits of scientific rate-fixing; and that competition will

compel the others to follow slowly in the same direction.

manufacturers in the country who are

competing in the same line of business were to adopt these
91.

Even

if all

of the

still well afford to pay the high rate of wages

demanded by the differential rate, and necessary to induce men
to work fast, since it is a well-recognized fact the world over that

methods, they could

the highest-priced labor, providing it is proportionately productive, is the cheapest; and the low cost at which they could pro-

duce their goods would enable them to

and

still

pay high wages.

sell

in foreign

markets

MANAGEMENT

SCIENTIFIC

665

is far from taking the view held by many

labor unions are an almost unmitigated
that
manufacturers

92.

The

writer

detriment to those

who

the general public.

The labor unions

particularly the trades unions

join them, as well as to employers

have rendered a great service not only

to their

to the world, in shortening the hours of labor

and

and

of

England
members, but
in modifying

the hardships and improving the conditions of wage workers.

In the writer's judgment the system of treating with labor
unions would seem to occupy a middle position among the vari-

ous methods of adjusting the relations between employers and

men.

men together in classes, pay all

same wages, and offer none of them any inducements to work harder or do better than the average, the only
remedy for the men lies in combination; and frequently the
only possible answer to encroachments on the part of their

When

employers herd their

of each class the

employers is a strike.
This state of affairs

is

far

from satisfactory to either employers

or men, and the writer believes the system of regulating the

wages and conditions of employment of whole classes of men by

conference and agreement between the leaders, unions, and manufacturers to be vastly inferior, both in its moral effect on the

men and on

the material interest of both parties, to the plan of

stimulating each workman's ambition by paying him according
to his individual worth, and without limiting him to the rate of
work or pay of the average of his class.
93.

The

level of the great

and must continue

mass

of the world's labor has

to be regulated

by causes

so

complex as to be at best but dimly recognized.

The utmost effect of any system, whether of
social combination, or legislation,

been

many and

so

management,

can be but to raise a small

wave of prosperity above the surrounding level, and

the greatest hope of the writer is that, here and there, a few
workmen, with their employers, may be helped, through this

ripple or

system, toward the crest of the wave.

666

SCIENTIFIC

MANAGEMENT

Discussion

Mr. H. L. Gantt.
One cannot read Mr. Taylor's admirable
"
"
Rate
on
A
Piece
System without realizing that it conpaper
It is really a system
tains vastly more than the title suggests.
by which the employer attempts to do justice to the employee,
and in return requires the employee to be honest.
His method of fixing rates by elements eliminates, as nearly as
possible, all chance of error, and his differential rates go a long
way toward harmonizing interests of employer and employee.
It was my good fortune to work for a year as his assistant in
this work, and I fully agree with him as to the effect on the men.
They improve under it, both in honesty and efficiency, more than
I have ever seen them do elsewhere.
Realizing that substantial
justice was being done, and that to do their duty was to follow
their own interest, it soon became a matter of habit with them.
The greatest obstacle in the way of adopting this system is that
the man in charge of the rate-fixing department must be a man
of more than ordinary ability, and should have had a very wide
To err in fixing a rate has a very bad effect upon the
experience.
men, who should never have reason to think that the element of
"
"
It is therefore only in a comparaoccurs in their rate.
guess
tively very large establishment, where a capable man can be employed to give his time to this work, or in a very small one, where
the superintendent can give

it

his personal attention, that the

plan is entirely applicable.

His idea of a hand-book on the speed with which work can be
done, similar to the elementary engineering hand-books, is one

which is bound to interest all progressive engineers, and I hope

that he will see that his predictions about such a book do not fail.
In paragraph 15 he states that a clerk in the factory is the

Why

is this ?
particular horror of the old-time manufacturer.
In many cases the manufacturer is a shrewd and successful man,

has he not seen the advantage of using a clerk in

connection with his foreman ?

and

if

so,

why

This takes us back to the advantages of a system. No matter

successful a system may be in one shop, modifications are

how

MANAGEMENT

SCIENTIFIC

667

always required to make it equally successful in any other. No

shop should be run to siut the demands of a system, but the

system must be modified to suit the demands of the shop. No

system is a success unless it makes work go more smoothly and
cheaply, and ultimately makes the proper running of a shop inde-

pendent of any particular man.

The fact that most ready-made systems
these respects

makes the shrewd,

fail

in almost all of

manager fight shy of

them as a needless ex-

old-style

them, and regard any approximation

to

pense.

To pay men what they

are worth requires that we keep accuand as the foreman is too valuable a

rate records of their work,

man
and

to be used as a clerk, he should

Finally, the ideal system

It

have

be free to give his entire time to his

must be so simple as

this

work done

men and

must be automatic and

to appeal to those

for him,

the work.
self-contained.

working under

it,

and

should impose checks in such a way as to prevent or correct

errors without the interference of the superintendent, or of any
one not directly connected with doing the work under it, and,

above

all, it

should be free as possible from

"

red tape."

Mr. Taylor's paper p>oints out that in

Mr. F. A. Halsey.
cost exceeds the wages paid, a piece
where
the
machine
cases
rate which increases with the output
cost, as the output advances.

reduced
is,

must own, new

to

me, and

it

may

in such cases the advancing piece rate

maximum
case,

may

be compatible with

Simple as is the idea, it

be admitted at once that
provided the
In the average

is justifiable,

output cannot be obtained without

it.

however, where the wages paid exceed the machine cost,

the condition no longer holds, and the advancing piece rate

would involve an increased cost, as an accompaniment of an

enlarged output.
It

was under the condition

Premium Plan
and

(see vol. xii,

of a

page

moderate

tool cost that

755, of the Transactions)

my
was

application, under a high tool cost, was not considered, the fundamental idea being that the workman's earnings

devised,

its

per piece should decrease (though per day increase) as the output
increased.
By reference to my paper on the Premium Plan it

668

SCIENTIFIC

MANAGEMENT

be seen that the need of different premium rates to cover

different conditions was clearly recognized, and while such a

will

development was not contemplated,

it is plain that there is

the
making
premium rate so high as to give
the workman a wage which increases faster than the output, if
the conditions are such as to make that course necessary to secure

nothing to prevent

the

maximum

output.

It thus seems to

me

that, while

Mr. Taylor's plan

is

applicable

only to the condition of high tool cost, the Premium Plan not
only applies to the condition of low tool cost, for which it was

There
planned, but to the condition of high tool cost as well.
are not many shops in which the maintenance of every tool costs
more than the wages of its operator
the tools falling under that

Mr. Taylor's system

class being usually in the small minority.
being economically apph* cable only to the larger tools, it would
seem necessary,

if

the best results are to be obtained, to apply it

and use some other system for the

only to such large tools,

With the Premium Plan, the same system,

smaller ones.

as has

been shown, applies to aU, and its advantage in requiring only

one system of time and cost keeping against two, with Mr. Taylor's

system,

is

apparent.

Is it clear, however, that a

wage

rate

which advances

faster

than the output is necessary in any case ?

The only system
which will endure is the one which pays the least possible per

The purpose of these systems is not, primarily,

piece of product.
to pay
high^ages, but to produce cheap work, the adjustment
sought being one which shall give the workman an increased
wage per day in return for a decreased cost per piece of product.

In my.'^xperience, a comparatively small premium will call out a

workman's best efforts, provided the work is not too laborious,

and the workman

is

assured against future cuts in the

rate.

Why

should this not be the case with large and expensive tools as well
as small ones, and, if true, why should the wages increase faster

than the product, even on large tools ?

Mr. Taylor's strictures on the piece work plan have my cordial
approval, but what is the fundamental difficulty with piece work?
simply that the output under

it is

always found to be larger than

SCIENTIFIC

MANAGEMENT

66^

anticipated, and a rate which seemed moderate before trial is

The workman's earnings,
found to be excessive after trial.

increasing pro rata with the product, soon get to be excessive,

unless he has acquired wisdom and restrains himself.
In Mr.

Taylor's system, the earnings imder an increase of product increase still faster than with piece work, and the consequences of
a too high rate would be even more serious than with piece work.

Wherein, then, does the superiority of Mr. Taylor's system over

Not in the advancing piece rate, but in the method
piece work lie ?
If Mr. Taylor can determine the maximum outof fixing rates.

put of the miscellaneous pieces of work comprised in the everyday

operation of the average machine-shop, he has accomplished a
great work, and the present paper should be followed at once by
It is
another, giving the fullest possible details of his method.
determining the possible output which
bottom of the difficulties besetting the piece work plan,
was its contemplation which led the writer's thoughts to

this universal difficulty of

is

at the

and
the

it

Premium

possible

Plan.

output

is

With that plan, the attempt

abandoned.

to determine the

Present output

is

taken as

the basis, and if the premiums offered for an increase are small,
as they should usually be, no possible increase of output can carry
the workman's earnings beyond reason.
It is its extreme flexibility

and the absence

of

commend

danger of expensive errors of judgment

Premium Plan, and while it is imposMr.

method
of fixing rates with the present
judge
Taylor's
I
that
it
is hard to concek^e
of
must
it,
say
knowledge
anything
so simple or safe as the plan offered by me.
When piece work is introStill another point presents itself.
duced in place of day work, the rate offered is usually lesi than
The workmen often object, as few of
the work previously cost.
them know the real capacity of the tools, and the system is only
introduced by the exercise of some coercion on the part of the
which

chiefly

the

sible to

Nevertheless these first rates are eventually found to

employer.
be too high, and a really large output is only reached after several
the final output is to be determined at
once by Mr. Taylor's method, and the rates fixed in accordance,
is not still greater opposition on the part of the men to be exsuccessive cuts.

Now,

if

SCIENTIFIC

670

MANAGEMENT

The maximum output is usually and necessarily a

pected ?
matter of growth. With Mr. Taylor's plan there must intervene
a period of low pay.^ The outcome is uncertain to the workmen.

They

are

full of distrust,

and can they be blamed

if

Premium Plan

they rebel

Right here, again, the merits of the

There is no cut at its introduction; on the contrary, present output is taken as the basis, and the workman is offered an

are conspicu-

ous.

wage if he
satisfaction from the

increased

start,

and increasing

Nothing can be simpler,

goes on.

can meet

all

the varied conditions

Mr. F. W. Taylor.

The

will increase the output.

In

fairer, or plainer,

more

result

is

satisfaction as time

and nothing

perfectly.

Mr. Halsey's

criticism of

my

piece

rate system, he very justly lays great weight on the elementary

An accurate-fixing as the most important part of the system.
rate knowledge of the quickest time in which each job can be

the very foundation

upon which the

done

is

rests,

and without this knowledge the whole system must

differential rate
fall

to

the ground.

Mr. Halsey

is

of piece

in error, however, in his

assumption that

my

work involves paying a higher

price per piece

the contrary, with
in nine cases out of ten, be

system
than is paid under the ordinary system.

On

the differential rate the price will,

lower than would be paid per piece either under the ordinary piece work plan or on day work. An illustration of this

much

fact can be seen

in

which

it will

referring to paragraphs 79 to 83 of the paper,

found that a piece of work for which the work-

by

be

men had

received for years, under the ordinary piece work syscents

tem, 50
per piece, was done under my system for 35 cents
in this case the workmen earned $3.50 per day,
while
per piece,

when they had formerly made, under

the 50-cent rate, only $2.25

per day.
It is quite true that

imder the

differential rate the

workmen

earn higher wages than under other systems, but it is not that
they get a higher price per piece, but because they work much
^

This was one of the

diflSculties

with the differential piece rate plan which led

"
See H. L. Gantt's Work, Wages,

to the development of the Gantt bonus method.

and

Profits."

Ed.

SCIENTIFIC

MANAGEMENT

67 1

harder, since they feel that they can let themselves out to the
fullest extent,

without danger of going against their

in the long run.

What

ment could weU

afford to

own interests

the paper was that the managea higher price per piece, to insure

I said in

pay

maximum possible

output, not that it was necessary to do so.

Mr. Halsey is right in saying that there is sometimes difficulty in
introducing the differential rate, owing to the great and sudden
increase in speed which is demanded of the workmen.
This is
the

particularly true of the first few cases in which the system

C^est le premier pas qui coute
applied in a new establishment

is

and much tact and skill is sometimes required to get the men to
accept and work under the first rate. After the system, however,
once has a start in a place, on however small a scale, the workmen
are quite as quick to recognize its merits from their standpoint
as the management are from theirs.
Mr. Halsey's is by far the best of the ordinary systems of
piece work, yet, even under his system, there still remains what
to my mind is the very weakest point of all the ordinary systems,
and what may be called, almost, the curse of modern industrial
management, namely, that it is for the workmen's interest to
"
"
soldier
and go as slowly as possible on each new piece of work
that

comes along, so as to get as high a price

|>er

piece as jxjssible

when

piece work first starts; and for this reason, even after
work
has been inaugurated, under Mr. Halsey's plan, there
piece
is

almost necessarily a great lack of justice in the prices fixed for

different jobs, since the starting-p)oint

fixed is

from which the

first

rate is

Some of the rates may have reobtained when a good man was working close

unequal and unjust.

sulted from records

maximum speed,

while others are based on the p>erformance

at one-third or one-quarter speed, and from
this follows a great inequality and injustice in the reward of even
the same man when at work on different jobs.
to his

of a

medium man,

Other defects of Mr. Halsey's plan, and which are corrected by

my

system, are:

That

slow and irregular in its of)eration in reducing

costs, being dependent upon the whims of the men working under
First.

it.

it is

SCIENTIFIC

672
That

Second.

it fails

discourage inferior

MANAGEMENT

to especially attract first class

men and

men.

does not automatically insure the maximum

output of the establishment per man and per machine.
Mr. John A. Penton.^
Although I am not a member of the
Third.

That

it

want to thank you for the privilege

The paper we have just listened to and

of just saying a
the presentation
made by Mr. Taylor strike me as being perhaps the most remarkI do not wish to
able thing of its kind I ever heard in my life.
or
its
if
about
it
has any.
merits,
demerits,
say anything

Society, I

word.

My

knowledge

of

it is

altogether too superficial to admit of anything

but I can sympathize with every word he

of that sort;

said, for

the reason that fortunately, or perhaps unfortunately, I was for

five years at one time occupying the position of president of a

very large organization, which would be called a labor organizaWith us,

tion, prominently identified with the iron business.
the treatment of this piece work problem was something which^
even now as I think of it, causes me to shudder and to feel a little

nervous; and when I think of the problems which might be

such a one, for
solved by this paper presented by Mr. Taylor
instance, as was solved by the military at Homestead a year or

two ago

when I think of

all

those things, and of the numberless

instances which occur almost every year, I feel that, as a workman, I want to congratulate Mr. Taylor and to say that his paper,
I think, is a

landmark in the

field of political

economy; and, as

our leading thinkers have devoted their time in the last few
years to solving problems of that kind, I feel that the paper he
all

worthy of the greatest consideration at the hands

It
of every employer, and at the hands, also, of the employee.
seems to me that every sentence, almost, might form a text for
It certainly enunciates a number of logical ideas,,
an article.
I would like to go before the American Society of
I
feel
that
and
Mechanical Engineers, and, as a workman, testify to my feelings

has written

is

in the matter.

Mr. W.
in a while.
*

S. Rogers.

It

is

strange

how we meet

old faces once

In 1883, in the State of Ohio, I had charge of men,

Fonnerly President

of the

Brotherhood of Machine Moulders.

MANAGEMENT

SCIENTIFIC
and that
head.

identical plan of a differential piece price came into

was not near as old then as I am now, but I recognize,

my

also, the fact that I

not talking to students now. I am talkmore than I do of how to handle men. A

am

men who know

very capable member of
ing to

tain Minot),

before him.

that

is

ought

673

this association,

who

is

now dead (Cap-

WLS a particular friend of mine, and

He said: " Do you believe in it ? " I

I laid this

said:

"

plan

I think

shop right down to where it

just the thing to fetch
He said: "Try it." He went by
shop to and

my

my

to be."

"

and he would stop occasionally and say:

Rogers,
"
At first I was enthusiastic.
how is the differential working ?
"
At the end of six weeks, he said:
Rogers, what do you think of
fro to his,

I said:

the differential?"

''Captain, I

feel like

thief;

it

There are times when a man cannot turn out as

much work today as he did yesterday, and it is not his fault; the
fault lies sometimes in the foundry or elsewhere, and the man is

is n't

honest.

not to blame, but

have got to
"

"

live

up

to

my

rules

and cut the

I thought you would feel that way,

Well," he said,
price."
and I have been feeling that way for you." Then I abolished it.
At the Providence meeting, Mr. Halsey read a paper on the Pre-

mium

I have a
I have tried it three times since.
mine trying it. I am trying that in the shop where I
am today, and it is simple and easy, and the men ask for it.
You cannot give it to them fast enough, and you do not require
a rate-fixer. Now, as to cutting prices and cutting rates, I know
an instance that occurred not long ago. A man took charge of a
shop, and not ten days after he went there he slapped it on to
Today he is looking for another situation and the
piece work.
You cannot pass to piece work infirm is cutting the men.

Sharing Plan.

friend of

you thoroughly imderstand the

have
whole situation; and you
got to throw your hobbies and
ideas to the winds and be governed by what you find and the men
you find. A short time ago a man applied at our place for work.
He said he was
I make it a point, if possible, to hire every man.
stantly, or anything else, until

He

I said:
asked what wages he would get.
That depends on you your rate will not be fixed for one week."
He replied that he was glad to
I asked where he was from.

a machinist.
"

get

MANAGEMENT

SCIENTIFIC

674

away from a

place where the differential system was in

operation.
Mr. F. W. Taylor.

I must object to Mr. Rogers saying that

system of piece work; for, according to his own

he
statement,
entirely omitted the vital part of my plan, namely,
the elementary rate-fixing, without which the differential rate
he tried

my

must, in most cases, prove a

He, however, says that he

only tried differential rates for six weeks, which, in point of fact,
If he had tried the plan for six years or
is no trial whatever.
failure.

months, and abandoned it, his experience might have

some weight, but six weeks counts for nothing. Regarding his

even

six

statement that his workman was glad to get away from my system, all that I need say is that about a thousand of the most

most prosperous, and contented workmen in the counare

working there under this system, and a majority of these
try
men have been in the employ of the company for more than ten

intelligent,

years, without complaint about the system,

and without a

Can Mr. Rogers say

or even the talk of a strike.

as

strike

much

regarding the workmen of any other steel works in the country ?

I am very glad that Mr. Rogers has attacked
Mr. Wm. Kent.
There are very few men who have the
Mr. Taylor's paper.

I hope there will be others who will rise up

courage to do it.
and attack it, and I know of no man stronger than Mr. Taylor to

He

repel such attacks.

is

just the kind of

man to stand
may come

deal of hammering, but sometimes I think he

a good
out on

top.

In regard to Mr. Halsey's plan, which Mr. Rogers has indorsed,

had the pleasure some years ago of indorsing it also, and I

think I was possibly the first one to put it on trial, because Mr.
I

Halsey had told

me

lished his paper.

success.

But

about

So

my

it

far as I

two or three years before he pubknow, the plan has been an entire
that Mr. Taylor's plan is a little

opinion is
It is probably a little better, provided it is carried out
ahead.
with proper intelligence, by the right men, with proper sense

workmen.

whole
in
Mr.
his
started, possibly, by
Towne,
paper, then continued by Mr. Halsey, and now supplemented
of generous treatment of their

question, which was

I regard this

SCIENTIFIC

MANAGEMENT

675

Taylor's paper, as one of the most important questions,

not only before this Society, but before the world to-day
the harmonizing of labor and capital; and this question is not

by Mr.

to be settled

as

my

young

by the opinion

of the old-time mechanics, such

who has spoken.

by men capable of

friend

profound study,

It is to

be

settled, after

logical analysis,

and by

students of political economy, and I do not expect that we are

going to introduce any of these systems, in any great degree, by
the men who are now over fifty years of age, who have all their
old-time prejudices; but I think

it will

be from such

men

as the

one who presented those opening remarks, such as Mr. Gantt, a

young man, a technical graduate, who has given some attention
not only to workshop matters, but to political economy, and that
such men will be the ones who will introduce this system in the
I hope to see this subject of workshop economics
long run.
taught as an inductive science from actual statistics
of tool cutting, of wages, of rates, in the

statistics

modem method of study-

ing p>olitical economy; that this science must be taught in our

technical schools, and that our graduates will graduate, not with
the knowledge of how to apply this system, but with minds
trained to begin studying the system in practice, and gradually
I heartily
the proper systems for our shops will be evolved.
Mr.
on
the
he
has
pai>er
presented, and hope
congratulate
Taylor

he

will

continue his studies for a great

this direction.

many

years to

come

in

I would like to ask Mr. Taylor a question

about a matter upon which he has not entered in his paper.
How does he deal with the apprentice system ? A good apprentice will often do as much work as a journeyman.
Now, is he to

Mr. D. L. Barnes.

The temptation for the manufacturer is to

get the same price ?
How are disputes about
use as many apprentices as possible.
That, to
apprentices with labor organizations to be settled ?

my

mind,

is

the most important problem with which a manuwhen the work is such that an apprentice

facturer has to deal,

can do

it.

The plan proposed by Mr. Taylor

the profit

is

great and

applicable in a shop where

where there is an unlimited amount of
is

SCIENTIFIC

(srjS

orders to

work

on.

MANAGEMENT

But suppose

the contract price

is fixed,

and

the orders are not very frequent, and the profits small can a man
afford to pay more for extra quality work than for what will pass
as good work ? It seems to me that the manufacturer can afford,
;

under those conditions, to pay only one price, and that is to get
work good enough to pass inspection, and how the differential
rate system can be applied under those circumstances I do not
see.

Mr. Taylor.

The

apprentices, in the

answer to that

first place,

is

this:

the Midvale Steel

With regard

Company

to

takes

no regular apprentices, in the old-fashioned meaning of the term,

but they do take a great many boys, young men, and even older
laborers, and teach them trades, and when I was there I treated
my apprentices or learners just as I would the other men, I let
them earn all that they could earn, and I was delighted to have
them do it. I do not care who turns out my work. So much
work is worth so much money, whether done by an apprentice
or by a man just tottering to the grave.
With all due respect to
Mr. Barnes, the apprentices or learners are not able to do, in my
experience, anything Uke as much work as the first-class trained
are able to do, and under the differential rate system

workmen

they must be content with the lower price per piece.

They, howhave the higher price per piece before them as a goal,
to spur them on to become fast and accurate workmen, and the
system has certainly worked admirably in this respect, since I
ever, always

should say that fully two-thirds of the skilled

workmen

of the

place have been taught their trades right there in the steel works.
As to the second matter referred to by Mr. Barnes, namely, the
applicability of the differential rate to a shop which did not have
sufficient work to completely occupy all of its tools; if the differ-

system involved paying a higher price per piece than is

under
other systems
that is, if you had to pay with the
paid
differential rate actually a higher price for a piece than your
ential rate

then Mr. Barnes is perfectly right in saying

competitors pay
that in a shop which runs slack of work this could not be done.

As
in

I have already explained in answering Mr. Halsey, however,

most cases where the differential rate is applied your actual

SCIENTIFIC
work

MANAGEMENT

d^J

lower than your competitor's price is, so that

you have the advantage not only of a larger productivity per
tool, but also a lower price per piece.
piece

rate

is

I would like to add a few words

Mr. Gustavus C. Henning.
in commendation of Mr. Taylor's paper, not because I have been
an employer of labor, but simply because I have suffered from

I found
being in intimate connection with unsatisfied laborers.
that, in shops where the old-fashioned piece rate was in vogue,
every time a man did a good piece of work his wages were cut

They would induce a man

work on the
had to go out in a hurry, and just as soon as his
amount of work increased his rate was cut down, so that he was
always kept to earn about the same amount of money per day.
I remember one case where this had a very important effect on
It was driving rivets.
the character of the work.
The men
were driving originally about 2,500 steel rivets, with hydraulic
down.

plea that

to turn out the

it

contract, but they earned so much money at the rate

they were getting that before the next lot of similar work was
contracted for a lower rate was offered, and the men had to drive
riveters,

by

The first trouble that arose was that 90

3,500 instead of 2,500.
of
Then the shop
cent
the
rivets
were
not absolutely tight.
per
began to question the propriety of the inspector marking all the
loose rivets, because most of them could only be shown to be
loose by tapping them on both sides of the head, but if tapped
on one side only they would rarely show a defect. Then the men
were made to cut out

this

work at

their

rivets, the shop paying for the new

found by the riveting gang, and they

new

for driving the rivets

power
very much.

own

exp)ense

rivets,
lost

was

and put in

but the labor was

Then the
improving the work
money.

increased,
actually succeeded in running up their
capacity to about 4,500 rivets per 10 hours, but there were so
many loose ones in the work that the men, of themselves, dis-

The men

carded the use of steel

specifications,
tighter.

although it was prescribed by the

rivets, because they could be driven

rivets,

and used iron

Then, when the objection was made that the contract

heaven and earth were raised to prevent

called for steel rivets,

the reintroduction of steel rivets, and the

work was shipped one

SCIENTIFIC

678

MANAGEMENT

hundred and twenty-six miles, with these wrought-iron rivets in

place, and it was only after the severest fight that they were compelled to cut out about 3,000 iron rivets in the field and replace

them by

simply to

steel,

make

they would have to carry out

the contractors understand that

their agreement.

been in

That was

all

such a system as this had

caused by the piece rate system.

use, such a thing could never have occurred.
If

Those men

were trying to do their best, but by doing their best they were
compelled to work harder and were getting less and less pay; the
work was inferior to what it was when the men were getting less
I think, if such a system as Mr.
pay and turning out less.
Taylor here describes can be carried out on any work in hand,
and arranged to suit the particular shop in which it is to be in-

would certainly improve the work, increase the

capacity, and make the general relation between employer and
employee a far more satisfactory one than it is in many of our
*
works at the present day.
I would like to ask Mr. Taylor a question
Mr. C. E. Bement.
Do I understand that when the maximum day's work is
or two.
troduced,

it

fixed, it is

never changed

Mr. Taylor.
When, by the elementary rate-fixing, you have
maximum day's work is, for instance, on a lathe
a
what
out
found
or a planer, on a certain class of work, that rate is never changed
until some new element enters the problem; that is, until you
have a distinctly new method of doing the work. If you invent
a new tool which will turn out more work, or if the machine
heretofore used

then the rate

is

materially improved or better speeded, etc.,

altered; but while the conditions remain the

is

originally, and after a careful and thorough analysis has

been made of the quickest time in which the job can be done,
that rate is never cut; that rate remains permanent until a

same as

material change takes place in the rate of wages paid throughout

such a change, for example, as occurred very
the country

^^ ^^s time, the

generally in the rate of wages paid in 1893.
rates
was
under
differential
rate of wages paid
cut, and the men
did not complain of the cut.
They saw the justice of it.

SCIENTIFIC

MANAGEMENT

679

Mr. Bement.
Suppose, in ordinary piece work, the same
was
taken
and
the piece work price was fixed on that basis,
pains
would n't that be as just as your system ? You fix a day's work
which you calculate is the greatest that the machine or man
can turn out.
Now, suppose in an ordinary piece work shop,
such as I am running, we fix a piece work price based on a maxi-

mum

day's work,

why

is

not that as just a price, provided the

same pains is taken to fix it ?

Mr. Taylor.
If you can once persuade your men that you
are really going to allow them to earn more than the usual standard of wages no differential is essential; that is to say, it is not

then nearly as necessary as

I think I said distinctly

usually is.
in the paper that, after your men are thoroughly in accord with
the management and you are all pulling together, it is possible
it

to drop the differential rate without a great sacrifice of the

amount

your product, but even then you

of

will

make a

sacrifice

of possibly 10, 15, or 20 per cent of your product, because the

incentive of earning his differential is lacking to make each man

very much like running a

each man can go at any
rate of speed to suit himself, they will not go as fast as they will
if they have
got to get to the taf>e at a certain time, or else forfeit

work
race

to his

their

if

maximum.

there

premium.

What

is

The

case

is

no goal to reach,

That

is

if

the incentive of the differential rate.

not speak of and what

is of equal importance is, that

the
firm
to keep their shop in the best of order.
spurs
Everything must be kept up in the finest state of repair, or the men can-

I did

it

not earn their differential rate, and I think, if possible, that this
is a greater benefit to the firm than

indirect result of the system

the rate is itself.

Mr.

J. L. Gobeille.

This paper

is

especially interesting, since

our moral responsibility toward those in our employ is so prominent a feature of this discussion.
In a certain concern, twenty

men were

by that number of women, the output of

both being practically the same. Now, the average pay of these
women was much less, perhaps one-half what the men had earned.
While we are discussing ethics and morals, the question comes
to

me

displaced

whether

it is

right to

put those

women

in at the highest

68o

SCIENTIFIC

MANAGEMENT

had previously earned, and thus save an equal sum for

the department, or whether they should have been paid, as Mr,

rate they

Taylor paid his apprentices, equal pay for equal work. Apprenticeship, by the way, is a back number and a lost art, except in
shops in small country towns, and they do not pay the same rate
as

men

get per unit of work.

"

"

woman question will be prominently

Seriously, I believe the
In a little while women will be
before the Society in a few years.
in
all
the
tools
lighter
machine-shops and factories.
running
This
to

is

certainly coming.

am

doing

it

and others must come

it.

Believing that our first duty is to the workman, and profit on

the investment a secondary consideration, what discrimination,
if

any, shall

we make between men and women,

without, perhaps,

in every instance taking the high moral ground that

esteems so important in running a factory ?

Mr.

J. F. Holloway.

place in that class

Mr. Rogers

Feehng

known

that I may possibly claim a

as old-time mechanics, I would Uke to

It certainly
say a few words on the matter under discussion.
does conmiend itself to all thoughtful and well-meaning persons,

that there should be some method pro\dded by which workmen

could obtain a better rate for what they do, and, at the same time,
that proprietors should make more money out of it.
Whenever

that can be accomplished,

it

certainly will be a long step in ad-

me that, in these latter days, so many

combinations and so many differences have come up that it is
The
exceedingly difficult to see how this may be brought about.

vance.

It

seems to

changed conditions in manufacturing, especially in the line of

manufacturing with which most of us are connected, that of
machinery, are so different from what they were years ago that

As Mr. Gobeille has

they have brought in new compUcations.
know where the apprentices are to-day. I

well said, he doesn't

know where you will find apprentices. When

Mr. Rogers and I were boys, the apprentices were in small shops.
The machine shops of this country were individual shops; they
were owned by the man who operated them, or by a small partnership, and the apprentice had the privilege, the inestimable
myself hardly

SCIENTIFIC

MANAGEMENT

68 1

up in the early mornthe

and
and
the
cow,
fire, milking
taking care of the
ing
making
in
the
There was a certain
horse, before he went to work
shop.
community of feeling, in those days, between the boys in the
shop and the master, which I think passed away when machineshop owners became corporations, when they were managed by
a board of directors who never saw the workmen, who knew
privilege, of living in the family, of getting

nothing of them, individually, and, as I fear, cared less.

It is unfortunate in many ways that there should have been that
sort of a diversion of interests, that sort of almost

antagonism
which has grown up in these latter years between workmen and
their employers, and often for the reason that they do not know
employers are. They know the superintendent of the
and
works,
they know their foreman, and they have a slight

who

their

acquaintance with the paymaster, through the medium of their

check number, but over and beyond that they do not know who

They never come in contact with the owners,

they work for.
and that sort of human contact which is so essential to good
feeling, as Mr. Taylor has well observed, is not now prominent.
The
the

If the affairs of
directors look only at the balance sheet.
well
or
the
have
been
state
of the market
managed,
company

has been such as to enable them to show good balance sheets,

then there is nothing said; but if unfortunate contracts have been

made, or if the market prices have gone down and the balance is
on the wrong side of the ledger, the directors, meeting in solemn
conclave, say. Well, we have got to cut the workmen, and they

do

and

in doing that there has

grown up, as I say, a sort of

antagonism between workmen and employers which is exceedIf any way can be devised by which
ingly unfortunate for both.
this can be remedied, it will be certainly an advantage to each.
So far as the intent of the paper is concerned, and so far as the
many good things in it are concerned, I heartily commend it, and
so;

am

I am very glad,
very glad, indeed, to have listened to it.
know that there are gentlemen in the profession of
engineering who are thinking and studying about the social side

indeed, to

of these questions,

out of

it

which

and

may

am

something may come

be of mutual benefit.
There are other
I

in hopes that

682

SCIENTIFIC

MANAGEMENT

elements which have come into existence in latter years which

have been, I think, equally harmful. Among them are organizations, ostensibly for the benefit of the

in
to

workman and

possibly

some ways truly so. In many instances they have assumed

do the workman's thinking. They have assumed to take care

of the

workman, as they

say,

but unfortunately, in

men who have thus assumed to take care of

not the men who should have been put in the
the

the

many

cases,

workmen

are

place of leaders,
unfortunately, often for this reason that strikes arise,
There has grown up a feeling that one
that divisions take place.

and

it is,

man

shall

have the same pay as another man, irrespective of his

I think that is unfortunate, beexperience, or industry.

cause it detracts from the energy and from the industry and from

skill,

These associations, which

the ambition of a good man.

am

quite willing to beUeve were intentionally well-meant, and designed for the welfare of the workmen, compel certain things

which I

am certain do

not in the end conduce to their advantage,

men to one lower level. No matter how good

workmen they may be, no matter how industrious they may be,
no matter how ambitious they may be to get a home for themselves and their family, they are tied down to one common grade
because

it

brings

all

and they are controlled often by one person, so that the individual Hberty of the workman today is wanting.
As to the matter of apprentices and as to the matter of pay
that they
largely

by

may

Mr. Rogers
that

get, I

would say that the work of today is done

I can hardly agree with my friend

special machinery.

in his suggestion, elsewhere

we should do away with

into the scrap heap; but

today largely supplement

made

at this meeting,

engine lathes, and throw them

all

true that the special machines of

the industry and the intelligence of

it is

A bright young fellow, without any previous

the workman.
mechanical training, can go into almost any establishment and
go on almost any machine, and with industry and application
he can in a very short time do just as much as a skilled workman
on that machine.
very indefinite term.

In

fact, the

term

He may be

workman is now a
workman on a slotting

skilled

a skilled

machine, or a shaper, or milling machine, but the true skilled

SCIENTIFIC

MANAGEMENT

683

whom you could send anywhere to do anything, and

could accomplish it with few or no tools, is sadly wanting.
So I can hardly see how you can manage the apprentice part of
any system so long as there are no longer any apprentices to

workman,

who

apply

it to.

Mr. F. W. Taylor}

I am much surprised and disappointed

that the elementary rate-fixing has not received more attention

No better evidence could have been
during the discussion.

produced, however, of the crude and elementary state in which

the art now stands, of determining the time to do work and of
fixing rates,

Society which

than that only one member of the engineering

is in the closest touch with the manufacturers of

the country should have most briefly referred to the matter,

while thirteen engineers have discussed at length the less imjwrtant matter of what kind of piece work to use.
I

am, nevertheless, mostly firmly convinced that the question

must occupy more and more of the atten-

of scientific rate-fixing

tion of manufacturers in the future.

Competition

will force the

subject upon them.

I think that this will

tion for

young

prove a most

fruitful field for investiga-

engineers in the future.

*

Author's closure under the

rules.

WAGES AND WAGE SYSTEMS AS INCENTIVES

By

C.

BERTRAND THOMPSON

Reprinted by permission of System

"

How do you pay your men ? "

the manager of a thriving

New

England plant employing about a thousand hands was asked.

"
I started thirty years ago with a straight day rate, and an
occasional piece rate in

some departments.

about every system there is: day rates, piece

Gantt bonuses, Emerson bonuses, some Taylor
rates,

and

salaries

and commissions

departments."
"
Why do you use so
"

Now
rates,

am

using

premiums,

differential piece

in the administrative

and

selling

many methods

"

have had to in order to meet the changing conditions of the

labor market, not only with day laborers, skilled workmen and
machinists, but with clerks, executives, and salesmen. Men are
I

wage for giving me their time to dispose of. I have

watchmen
pay my
just to be present, though they may have
nothing actually to do once in ten years. But what I want more
entitled to a

to

than anything

else is that

my men

shall

employ

their time pro-

ductively, turning out goods, superintending manufacture more

This takes more than their
effectively or selling my output.
time.

It takes their energy, their thought, their interest and

I found that these desirable things could not

their enthusiasm.

be had for a mere day wage. The problem of securing them was
one of market conditions and the psychology of the workers.
"
My grandfather ran a mill where the women who tended the
machines would leave them whenever they liked and go out to
look after their children playing in the factory yard. These
occasional absences didn't make much difference, since they were

Then the shortening of hours

began, until now I am running only forty-eight hours a week.
In the old days competition was not very keen, and all industry
operated at about the same level of inefficiency. Today we have
working twelve hours a day.

684

SCIENTIFIC
to

work

for all

in the factory
"

we

and

get.

MANAGEMENT

And above

all

685

we must have

efficiency

in the selling field.

When the pressure began to be felt, we could get our work up

the simple though disagreeable process of driving.
But that
if
does not serve any longer.
Workmen, especially
they are

by

and competent executives and salesmen, do not have to

stand it. We have had to depart widely from the old day wage
and piece rates, therefore, in order to provide some incentive for
the men to give voluntarily the volume of production and the
personal efficiency which employers must have."
He went on to tell me about some of his experiences. There
was a girl in his plant working on hand-folding. Her day wage
amounted to $6 a week. At one time this work had been done
on a piece rate basis.
Figured by the old rate, the girl was
actually earning just $1.05 a week, as against the $6 she was
This discrepancy was called to her attention daily, but
getting.
without effect; and after five weeks she was discharged.
Her
in
the
same
for
her
sister, employed
reinstatement,
plant, pleaded
on the ground that the girl had not understood that she was
expected to work for that price; she supposed she was paid just
for her time.
A bonus plan carefully worked out was applied to
this group of workers, and thereafter there was no trouble.
This illustrates the idea that some men have: that they are
paid a day wage just for being in the shop or the office, and that
"
"
if the employer wants productiveness and
results
besides, he
must expect to pay extra for them. It is like the carpenter who
When asked
applied for a job in one of the Thames shipyards.
what wages he expected he said: " Three shillings if I take the
skilled,

hammer
it

here,"

here," half

"
four
up near the head;

way down

the handle;

"

shillings

Five shillings

if
if

I take

I take it

here," at the point where he could work most efficiently with it.
What the employer wants, in most cases, is of course not the

mere time and presence of the employee, but his productiveness.

If the manager could abolish day rates and pay only by the piece
for what the man produced or sold and nothing more, he would
do it. Or, if he held to the day wage, he would like to pay only
for the time actually spent on production or selling.
He would

SCIENTIFIC

686

MANAGEMENT

have time tickets for every moment of the day, and would pay
on those only which were productively used. If a man waited
about between jobs it would be on the man's own time. This is,
of course, impracticable.
Many delays between jobs are inevithe
others
and
management has not taken the trouble to
table,
eUminate.

In the majority of cases the employee

not the one who

who

waits

is

and his Uving cannot

be made dependent on other people's failures.
"
The question I have to solve," said the manager, " is how to
the time of

all

get

is responsible for the delay,

my

employees occupied productively, contin-

uously and efficiently."

The

old answer to this question,

places,

is

plain driving.

and one

still

tried in

some

young man was

sent to a quarry in
months had been unsatis-

Vermont where the output for some

He was told to put in force the modern efficiency
factory.
methods he had just read about in a book, but especially to get

When he got there

He forgot all
outrageously.

a larger output.

loafing
in at once to get behind

men were
about his book and started

he found that the

them and drive them

about

to efficiency.

His

weeks, then there was a strike.

The expedient of cutting piece rates to such a point that the
worker will have to go at a furious gait to earn a living is a familiar

program worked

one.

for

six

A big company in Pennsylvania worked this plan regularly

end its men struck.

Others are
"
"
with
it
and
have
thus
far; but
gotten away
doing
such
and
workmen
shun
those
who
concerns,
stay are
competent
a
chance
to
break
out.
for
good
merely waiting
Human nature reacts on this practice in much the same way in
for several years, until in the
still

all

it,

grades of employment.

Some managers have cut an agent's commissions in the effort to

make him hustle. A Boston firm in a growing specialty business
put men on the road who were soon earning commissions amountOrders were coming
ing to an average of twenty dollars a day.
in fast; but the firm decided that this rate of pay was too high

and hard-fought argument

Their agents, good
folly of this course.
large contracts, would undoubtedly have quit

and should be reduced.

to convince them of the
men, bringing

in

It took long

SCIENTIFIC

MANAGEMENT

the firm had the proposed reduction in

687

commissions

been

made.

The

is a modification of the day wage, insome degree of speeding up without placing

on the employer.
the responsibility for driving where it belongs
The manufacturer hires the contractor at a fixed sum, and th6
contractor sets a rate of pay and a speed of work which will
enable him to get as much as possible out of the contract.
He
has every incentive to drive the laborer up to and beyond the

contract system

tended to accomplish

This is the essence of the sweating system.

can be restrained only by law, or by the employer
who steps in between the contractor and his force; and if he
does this he may as well eliminate the contractor altogether.
limits of safety.
Its excesses

This

is

just

what has happened at a great locomotive works which

once had a full-fledged contract system, but now retains only the
name.
Its contractors have ceased to be anything but subforemen.
is rapidly waning in popularity, all the more
as
labor
becomes more effectively organized.
The
rapidly
elimination of ruthless driving is one of the best things to the

This policy

credit of the labor unions.

Where

work

the

is

mental rather

than physical, as in the case of salesmen, executives and clerks,

You can prod an
driving has never resulted in permanent gains.
agent into the presence of the prospects every day, but you can't

make him

sell.

Intensified

competition between managers, and a growing

self -consciousness
it

and independence in the workmen, have made

imperative that some incentive to increased production be

provided, which will accomplish what driving was intended to

do but failed in. To provide this incentive is one of the tasks of

management today.
There are four principal levers by which you can move a
to action:

moved by

fear, pride,

ambition, loyalty.

Not

all

man

men can be

them, nor do they all have the same value as

Fear is one of the strongest of the
incentives to efficiency.
all of

emotions but

and

is

is

brutalizing in its effect,

becoming daily

more

is

difficult to

therefore least effective,

apply, except in unusual

688

SCIENTIFIC

Mere

conditions.

pride or emulation,

beautifully for a time,

tired of either

MANAGEMENT
when

but soon wears out.

winning or

aroused, works

People soon get

the

game is costing
them considerable effort, and the only reward is " honorable
But when combined in some way with a more
mention."
substantial gain, pride may be made a most powerful incentive.
Ambition, when effectively appealed to, is stronger still; but the
longest lever of them all is loyalty.
People will do most and
best when they are deeply and fundamentally loyal.
Loyalty,
like love, is a more or less unreasoning force, which has but one
losing, especially

if

aim: to do one's best for mistress or manager.

These levers can be swung on two fulcrums: the market rate
of wages, or a rate above the market.
In the rest of this article

we

how wages

"

market

"

may be modified to
rouse the motives of efficiency; in the next, how wages " at the
"
market plus can be applied to the same end.
shall see

at the

The market rate of wages obviously makes no appeal to ambiThe forces determining it are apparently beyond the

tion.

control of the individual laborer,

and ambition appeals

to the

individual.

In a few rare cases emulation may be brought into play.

A
scheme has been worked out in connection with construction

work whereby the contractors succeed

individuals competing with each other.
are arranged between gangs building piers.

in getting gangs and

"
"
Athletic contests

Both start at exactly

same kind of pier; they have the same
The winners are decorated
service, the same bricks and mortar.
with buttons. This works well for a short time; and by the time
the enthusiasm has died down the job is ended and the contractors
"
"
contests
are elsewhere starting the same
with a new set of
workmen.
So it is with sales contests.
Unless the contest is
the same

moment on

followed

by

the

substantial benefits for the contestants, or dissolu-

tion of this organization, about one in a generation is sufficient.

The goad of fear will make a man work better than no incentive

With wages at the market it can be brought into play

When all emonly in bad times, when other jobs are scarce.
"
"
full up
the men with the jobs have got to do what
ployers are
at

all.

MANAGEMENT

SCIENTIFIC
the boss

tells

Of course

them.

this is

689

very far from

efficiency,

perhaps better than blank indifference and positive

All employers have noticed a seasonal variation in
soldiering.

but

it is

When there is plenty of work disciWhen work is scarce every one is remark-

the attitude of their men.

pUne becomes

difficult.

ably willing to please.

Fortunately the incentive of fear has practically ceased to
operate, especially with skilled men and in highly organized
"
trades.
The competent salesman or artisan can always get

another job, and the unions will see that the ordinary man is not
allowed to starve for asserting his manhood.
And it is well for
the future of efficiency in industry that the employer
appeal to some more humane and elevating motive.

The

thing to do

is

is

forced to

to arouse the enthusiastic loyalty of the

done by the sheer force of the

Some managers are " magnetic."
They draw people about them by their personal charm. They
seem to emanate fairness and democracy. Every member of the
force feels that the manager knows him personally and likes him.

Sometimes that

employees.

is

personality of the employer.

Tiiis is

gift of the gods.

The

president of a great company with five plants in different

parts of the country tells me that one of the chief reasons for his
and his men all swear
success in dealing with his employees

by him

always open to any one who

any purpose. He will talk over anything
with his employees, from the granting of a holiday to the naming

wants

is

the fact that his door

to see

him

is

for

of the latest baby.

Unfortunately this policy is limited in its

both
the
personal deficiencies of many employers
by
application
who have not this divine gift, and by the defects of organization

which do not permit the ordinary manager to spend very much

"
confabs."
of his time on these
A policy which has attracted increasing attention in recent
years

is

the so-called

"

welfare

"

work, which at

its

best

is

the

policy of doing things for the employees which they could not do
for themselves, and not from charitable motives but with the

object in view of making their lives more attractive and healthful

and the workmen more efficient.

SCIENTIFIC

690
This

is

tations.

MANAGEMENT

a somewhat risky policy, beset with dangers and tempIt has had some conspicuous failures; but it has also

It appears to work best

been made to succeed conspicuously.
when it comes in response to the real needs of the employees,

rooms at the desert stations on the Santa Fe;

when it is done unostentatiously and not for the mere purpose of
advertising; and when it is done inexpensively and economically,
so that there can be no suspicion that large sums are being spent
on frills which had better be paid out as wages.
Provision can be made for outdoor athletic sports on vacant
This is always appreciated and
fields at very small expense.
like the reading

effective;

whereas a large and gorgeous clubhouse

may be entirely

One
neglected and the management that built it despised.
company turned over a large room in its plant for the use of a
the girls accepted it, but were not really happy until
girls' club
Not until then
allowed
to pay for the heat and light.
were
they
"
"
their
did they begin to talk about
clubroom, and to bless
;

the management.

Lavish expenditures for "welfare" challenge

and invariably arouse all that suspicion which centuries

of oppression have ground into the wage-earner.
Only the more
can
and
better-paid employees
really appreciate the
intelligent
criticism,

value of such collective expenditures for them.

Here again the personal factor enters largely.
fare

"

work

is

in the

hands

of

an unpopular

When

"

wel-

man it almost invari-

In one very large establishment the development of

ably fails.
"
"
was entrusted to such a department
welfare institutions
the
He got as far as the organization of a mutual benefit
head.

Some time ago it was announced that the manager

society.
was going abroad, and it was hinted around that the proper
thing would be to give him a farewell dinner. Every one was
they were so glad it was his
delighted to go to the dinner
But when he came back a few months later the point
farewell.
of view was changed.
Unwittingly, with the remembrance of his
dinner
farewell
urging him on, the unpopular manager thought
it would be a pleasant thing for the mutual benefit society to have
The picnic was
a picnic, partly at the company's expense.
Out of ten
like
on
it.
and
$400 spent
something
arranged,

SCIENTIFIC

MANAGEMENT

69 1

thousand employees about forty went. Today that concern has

doubts about the value of " welfare " work. And yet it needn't
were only wise enough to see where its mistake lay.
These supplements to " wages at the market " are helpful,
when the situation is such that they can be used; but it is the
have,

if it

many managers that after all they are supplements

and
that
the body of the problem is the setting of a fair
only,
market rate. If your employees are convinced that their rates
are fairly set, there will be no great active enthusiasm, to be sure,
but you will have a basis for a powerful appeal in time of stress.
opinion of

This raises the question,

"

What

are fair wages

"

"

Merely to answer, the prevailing rate," is not to answer at all.

For our question is, in other terms: " Can we show that the prevailing rate

is fair ?

"

The wages which might possibly be paid

the lower Umit of subsistence for

somewhere between
the employee and the lower
lie

limit of subsistence for the employer.

If the employee does not
at
least
this
minimum
will
he
The
get
quit or die, or both.

employer, on the other hand, has got to get enough to pay his
employees, to pay for materials and equipment, and to support
In addition, he has got to clear enough to make it

himself.

for him to stay in business and take the risk and the
trouble that both involve, rather than shun the risk and trouble

worth while

by taking employment with somebody else.

The value of the product has nothing to do with
limits; nor

these

minimum

have these hmits much to do with the value.

Society,

the whole body of consumers, sets a value on the product quite

independently of the wants or needs of either employer or em-

In the bicycle business, for instance, when the comat

munity
large decided that it no longer cared much for bicycles,
no amount of need on the part of manufacturers could induce
ployee.

pay what would have been necessary to keep them in

Neither did the fact that a large number of people
were thrown out of work when the desire for bicycles disappeared
have any effect on society.
Society sets the price or value of work done for it in accordance
with methods of its own, entirely distinct from the needs of either
society to
business.

SCIENTIFIC

692

employer or employee.
that value;

somehow

MANAGEMENT

Their payment has got to come out of

it has got to be divided between

or other

employer and employee; and the whole question of fairness

centers around the mode of this division.

The popular theory among many economists today is that the

is made in proportion to the relative contributions of

division

each group and even of each individual engaged in the process of

production and marketing. This would be comforting if it were
true

but unfortunately it does not seem to fit the facts. What

an article is contributed by employers and

part of the value of

employees respectively, and then again by different groups, such

as manufacturers, salesmen, transportation companies, and retail
clerks, and finally by each individual in those groups, it is absolutely impossible to say.
When you find, for instance, that 30.6 per cent of those in the
patent medicine business are clerks, how are you going to deter-

mine what each

of these clerks contributed as

who ground

compared with the

the materials, the mixers, the machinists,

people
the bottlers, the labelers, the packers, the advertising men, and
How is it possible to apportion, out of the dollar
the rest ?
(or the 59 cents at the cut-rate store) received for the bottle, the
contribution of each of those people, or even of each group ?

There
analysis must be applied to every business.
kinds
work
where
in
of
some
of
the
are certain stages
progress
you can reckon the actual physical contribution of an individual

The same

workman with some

possible to determine

degree of accuracy; but in no industry is it

what proportion of the value of the finished

and marketed product was contributed by any one workman or

group of men.
If the

Statistics
theory won't help us, perhaps the facts will.
clearness that the wages of unskilled laborers

show with some

vary with the cost of living. When the cost of subsistence goes
up wages must go up too. Wages of skilled labor are those of
imskilled plus a certain addition, determined by several factors,
as will be seen in a

and

moment.

salaries of skilled

ard of living; but

Statistics again

workmen vary

it is

show that the wages

fairly closely

with the stand-

not clear in this case which

is

cause and<

MANAGEMENT

SCIENTIFIC
which is

efifect:

that

is,

693

whether high wages make a high standard

The probabilities are that it is both;

of living, or vice versa.
when wages go up, the standard of living rises; this makes a new

minimum

of subsistence for the skilled man; this makes it poshim to resist strongly any tendency to reduce wages
below his new m.inimum, and exerts a continual pressure to raise
them above this point.
The trained man is also helped by the possibility of getting
more in some other business or employment. The employer has
sible for

no measure

of productivity in

salary; he has to go

"

the man's

to

pay
Your clerk

by what

many cases by which to

man can get elsewhere;

his

set the

he has

opportunity cost," as the economists call

it.

getting $1,000 thinks he can earn $1,500 writing ads;

If you want
so he threatens to go into the advertising business.
to keep

to come up to his new expectation,

a
really
competent man, and the chances of

him you have got

especially

if

he

is

success are in his favor.

the

demand

for

therefore higher.

them

is

They

Skilled

men

great,

and

are comparatively scarce;

their opportunity cost is

get higher wages than the unskilled, not

because of any social obhgation felt by their employers, but

because they are able to command them.

Another important factor in determining the division of the

value of the product between the employer and the employee is
Skilled labor gets a better wage partly because
organization.
Unskilled labor is organizing, and is
it is better organized.

Organization counts
finding its conditions improved at once.
tremendously in deciding what share of the zone between the
limits of subsistence of the

to labor.

the payments, and it

employ at all or not.
in bargaining

That

employer and of the employee is going

the funds, he is the one who makes

The employer holds

this

is

he

who determines whether he

will

He therefore has an immense advantage

which can be met only by organization.
advantage can be counterbalanced even by com-

paratively unskilled labor and on short notice has been shown

by the success of the Lawrence strike and the recent coal and
railroad strikes abroad,

where the men have shown that they are

the masters of the situation.

SCIENTIFIC

694

MANAGEMENT

In the popular mind, to which appeal must finally be made in

the questions arising between capital and labor, a fair wage is
that which permits the employees to maintain the standard of
living to

which they are accustomed, and which therefore

with increase in the cost of

It will

living.

rises

vary also with the

margin between cost of materials, plus overhead, and the selling

price; that is, when this margin is large and business is prosperexpected to get a larger share; when the margin falls,
labor must expect a decrease of wages.
This is an automatic
ous, labor

is

sliding scale

which pubhc opinion

will

always support.

company, who is especially

labor, how he determined the

I asked the president of a large

interested in the

handUng of his
wages when he started a new department. He could not go by
the market rate in that vicinity, for there was none.
He said
he began by setting the wage in accord with the neighborhood
cost of Uving and the standard of the men he would take on for
his new work; later he modified the wages as necessity required
or opportunity allowed.

when he had

Fairness in setting a rate

comes and

it is

of employees
tive benefit.

He

paid higher

when he

could, less

to.

necessary to

and

public.

"

at the

market " helps when trouble

make an appeal
It is thus a

It does not arouse

to the sense of justice

form of insurance, a nega-

any enthusiasm,

for people

man to be fair, and are merely not disappointed when he

To awaken the enthusiastic support and cooperation with-

expect a
is.

out which the efl&ciency demanded by modern conditions cannot

be had, something more than this must be done.
It is pretty clear to most managers that the policy of paying
"
at the market," while it may do for the
wages and salaries
of
run
ordinary business, will not do at all for those
ordinary
kinds of business which demand the highest grades of productive,
"
Fair wages, sensible
weladministrative and selling ability.

work," and a winning personality in the management will

and
keep a fair organization of hardworking, conscientious
get
"
pluggers "; but it does not and cannot secure that brand of
enthusiasm which makes the prize-winning business, as distinguished from the common or garden variety. The prize-winning
fare

SCIENTIFIC
must be

MANAGEMENT

695

careful nursing of all the best

You get tkis talent, and then keep it after
talent available.
in some way, to pay more
trained
have
it, only by offering,
you

organization

for it

up by

than the other fellow pays; in other words, you must set

your wages and

built

rate a little

somehow "

market plus."
higher than your competitors are paying appeals

salaries

to every incentive that

makes

at the

One

for efficiency.

of the floor

foremen in a certain concern was a competent fellow when he

wanted to be. He could maintain discipline, get the work out

and keep up the quahty. But he was a suspicious and grouchy

individual, and every once in a while would decide that the firm
"
"
was trying in some way to do him. Of course, while in these
moods his chief aim in life was to retaliate, in some quiet and
He
unobtrusive way, which would be none the less effective.
was finally brought into line by paying him 10 per cent more
than the prevaihng rate.
Thereafter, though he was still sus"
lie
picuous and grouchy, whenever he showed any tendency to
down on the job," the firm would bring out a powerful argument,
to wit, the loss of that 10 per cent bonus he would suffer if he had
Fear was the only emotion which could
to get a job elsewhere.
reach this man; and as he was highly skilled, and could get
another job at any time, the only way this spring could be tapf)ed
was by paying him above the market.
The moment you pay a man or woman a higher wage or salary
than other people in the same neighborhood and line of work are
getting, you have touched that motive of pride and emulation

such a powerful incentive with the higher grade of

In one factory where there is a bonus system the
employees.

which

is

employees have organized a

"

Bonus Club,"

to which none are

eligible except those capable of earning the usual bonus of 30

The privilege of belonging to that club, the Phi Beta
per cent.

Kappa
pay.

as eagerly sought after as the increase in

like publishing the pictures of the sales agents who

of the mill,
It is

is

These men become known and

the biggest selhng records.
All
the
best
stories are attributed to
authorities.
as
quoted

make

them.

They may even become

worship, with

its set of

the center of a sort of hero-

legends and

its

group of

disciples.

And

SCIENTIFIC

696

MANAGEMENT

kind of incense, combined with substantial increases in

But the picture
salaries and commissions, worka wonders.

this

alone will not.

somewhere near the standard of living,

those who get something over the market are in position to
maintain that standard and a Uttle over, which they can put in
This
the savings bank or into a building and loan association.
the
men
of
ambition
and
initiative.
One
and
holds
policy gets
which
a
bonus
on
is
sales,
pays
considering
pubhshing concern,
the feasibiUty of paying that bonus in the form of a savings bank
If the

market rate

is

account, partly to see

its

value.

who among

its

agents are the

men who

These are the men it will keep and promote.

appreciate
the account grows their ambition grows with

As

respect also increases and they

the best that they can do.

become incapable

it;

their self-

of falling

below

In a factory which was introducing the bonus system it was the

policy to offer the bonus to the men for their voluntary acceptIt almost invariably happened that the first men in each
ance.

department to accept were those with families who were planning

"
"
in some way, usually to buy a little lot and build
to
get ahead
on it. The sight of these men earning their bonuses and demonstrating the possibility of getting out of the rut of day wages soon
stimulated the ambition of the others, and under the impetus
of this goad they pleaded for the opportunity to earn the bonus

The
even those who originally had opposed its introduction.
net result in one department, after certain changes had been

made

in the construction of the machines,

output 105 per cent and the wages of the

Loyalty

is

mind

of the

on the way the

true of the clerical force.

mental and

all

work

is

is

at least

when he
Where

feels

the

man

feels.

"
right."

work

and
and

An
The

is

largely
the state
of
partly mental

most important condition.

and ambition are aroused and satisfied by
working for is pretty apt to have a strong feeling of

employee

A man whose pride

the firm he

per cent.

any industry or business,

difficult to measure the output,

executive or salesman does his best

is

to increase the

an important factor in

especially in those where it is

where the output depends largely

same

was

men 50

is

the

MANAGEMENT

SCIENTIFIC

^'J

This sentiment can be fanned into a roaring flame

loyalty for it.
"
of
what might be called ultrafairaess "; that is,
the
policy
by
not only paying for what the man does directly, but for what he
An insurance agent, for example, lands
does indirectly as well.
after that the company takes care of it, follows it up,
the collecting and the accounting; but when the renewal
comes, the company pays the agent just the same.
For the agent this is like finding money, although, of course, he

his risk;

does

all

did have something to do with

him

to his

company.

it

A similar

manufacturing company which

This near-gift ties

pursued by a specialty

originally.

policy
is

is

famous

for the loyalty of its

The country is divided into districts, with an agent

in each.
Any sale made in a district, no matter who made it, pays
a commission to the agent in whose district it is. The sale may
be made to a visitor at the works of the company, or by another
agent who met the customer in another part of the world; it
makes no difference.
sales force.

This not only gets the loyalty of every agent, but in addition
tends to eliminate jealousies, and to make the knowledge of
men the possession of all of them, A well-known

it

one of the

magazine, which publishes books to be sold only by advertising

in its own columns, does something like this.
It pays the magazine agents and canvassers a bonus on the books sold they have
;

do with selling books, except that the sale of the books

This indirect
is dependent on the circulation of the magazine.
"
"
but
relationship protects the deal from the charge of
charity
at the same time it is so indirect that it looks like a mark of sf)edal
consideration on the part of the house.
nothing to

The

secret in all these plans

feeling of the bondholder, the

money with no

is

that they give the employee the

**

plute,"

who apparently

gets his

and let it
in.
This
men
is
so
and
so
that
most
rare,
delicious,
drop
feeling
and women will do anything for the employer who can give them
effort at all, except to

open

his pocket

the experience.
You can
It is like riding in the boss's auto.
feel, for the moment, all the commiseration which you imagine

he

feels for

the ordinary pedestrian, though the pedestrian

may

SCIENTIFIC

698

MANAGEMENT

man who works at the next desk to yours, or a desk higher

You love the boss for giving you the chance.

be the
up.

The

industrial air

of various

"

systems

of their wares.

"

is

"

thick today with the cries of the inventors

of paying wages, hawking the advantages

A man hardly feels justified in calling himself an

"

ciency expert

"

"

"

or an
effiproduction engineer
imtil he has developed some new kind of bonus or

industrial engineer" or a

premium, and added another wrinkle to the familiar curves

showing the operation of the standard systems. And yet what
they all amount to is simply an expedient for paying above the
market rate, and on some basis more or less directly connected
Where the nature of the work
with the employee's output.
in
some kinds of clerical work,
as
factory
production,
permits,
and selUng, the connection is made as direct as possible, and the
bonus is in some way made proportionate to the increased output
In other cases an indirect connection is established;
or sales.
but in all cases the aim of the buyer of labor is to pay the market
rate plus something added for imusual diligence and success.
As these " wage systems " are all aimed at the same thing, to
arouse the enthusiasm which leads to efficiency, their relative
value depends upon the success with which each accomplishes
this purpose.
Their success depends upon the conditions under
which each is introduced and maintained. That system is the
best which under given circumstances produces the
efficiency with the minimum cost and friction.

The

method used for this purpose was the ordinary

This permitted the exceptional workman to earn a

earliest

piece rate.
daily

wage somewhat

in excess of that currently paid.

high a degree of efficiency as the

himself.

It

was easy

management began
and proceeded
process
result

from

maximum

is

was
this

to feel

known

until the
and worked well
that the men were earning too much,

The succeeding

to call for narration.

history of this
Its inevitable

to call the unions to the protection of their

form of

It got as

able to devise for

to introduce,

to cut the rates.

too well

workman was

injustice;

and the

members

result is that today, unless

there are the strongest guarantees that the rates will not be cut,
the unions are in general opposed to the system.
Any change

MANAGEMENT

SCIENTIFIC

699

from day rates to piece

rates, unless most carefully made, is apt

to arouse the opposition of the workmen; and if it is carried
through in spite of them, they will take it out in soldiering, so

that the effort to get greater production is defeated.

One big
concern obviates this by forbidding its employees to earn over
what it considers a fair day wage. The men are all on piece

work, but when they have earned what the company says they
should, they are expected to loaf.
out the time on each job so as to

Of course, they simply stretch

come out even at the end of the

about the worst possible system, both for the

and
the men.
management
Many progressive concerns have improved on this by giving
a basic guaranteed day rate, with an addition for each increase
over the normal production.
They have added to this a systeThis

day.

is

matic course of instruction, so that their employees

their output to the limit.
its

may

increase

A big department store in Boston pays

saleswomen a wage based on a certain amountof sales per week.

When the clerks get over their

are paid a commission in addition to their week's

It runs a school of salesmanship.

minimum they

When

commission has been earned regularly for a

few weeks, the basic rate is increased, and again a commission
A great
paid for the excess of sales over the new minimum.
wages.

this

magazine publishing house pays its typists $8 per week for so

many hundred square inches of typewriting, and 25 cents a

hundred inches for

all

over that.

The

result is that the average

earnings of its typists exceed $12 a week.

This company also

maintains an elaborate school where the best

way

thing in
recruits

all its

and

departments

is

to old employees.

of doing every-

continually taught both to new

The spirit here is of the finest,

and

it pays the company many times over in increased output.

The Towne-Halsey premium plan is another system easy to
As used
introduce and maintain, and productive of results.
originally by the Yale and Towne Company, it consisted in setting

a standard time in which a job should be done, based on the best

time in which it had been done in the past by an average man.

Then

the

workman was given

in doing the job.

If the

half or one-third the time he saved

standard time was eight hours, the rate

SCIENTIFIC

yoo

MANAGEMENT

30 cents per hour, and the man did it in six hours, there was
added to his regular wage, 6X30 cents, or $1.80, plus one-half
2 X 30 cents, or 30 cents, making a total for the
job of $2.10, or

The man got a higher rate and had in addi35 cents per hour.
tion two hours to apply on another job on which he could be
earning the same or a higher rate; the firm's overhead was less,
was lower, and it was under no temptation to cut
There was no objection from the unions, and everyuntil the men found a way to beat the combody was happy
pany in setting a rate on new work, and made such excessive
its

labor cost

the rate.

wages that a modification became imperative.

The trouble with this system came in the method of setting
That was left to the men, and of course their
the standard time.
tendency was to make the standard time as large as possible.

The way

it

worked, especially on new jobs,

is

clearly

shown by

Mr. Taylor:
Suppose that two men, named respectively Smart and Honest, are at
work by the day, and receive the same pay, say 20 cents per hour. Each of
these men is given a new piece of work which could be done in one hour.
Smart does his job in four hours (and it is by no means unusual for men to
Honest does his in one and one-half hours.
soldier to this extent).
Now, when these two jobs start on this basis under the Towne-Halsey
plan and are ultimately done in one hour each. Smart receives for his job 20
20 cents
a total of 40 cents.
cents per hour plus a premium of 60/3
Honest receives for his job 20 cents per hour plus a premium of 10/3
3

1-3 cents

total of 23 1-3 cents.

This easy means of getting excessive premiums of course did

There are two ways of meeting
not long remain undiscovered.
One is to reduce the rate at which the premium
the difiiculty.
increases:

The

best

the other

is

to set the standard time in a better way.

of reducing the premium is the Rowan

known method

the leading exponents of the other method (which was

finally adopted in the Yale and Towne plant) are Taylor and
Gantt.

plan;

The Rowan plan

just like the

takes the standard time as set

Towne-Halsey.

the workman's share

But the premium

is

by

the men,

figured dif-

a percentage of his regular rate

ferently
equivalent to the percentage of the standard time he has saved.
;

is

SCIENTIFIC
If the

time

is

MANAGEMENT

eight hours, the rate 30 cents,

two hours saved

70I

and the work

is

done

25 per cent of the standard,

the regular wages are 6 X 30 cents, or $1.80, and the premium is
In the early stages the premium
one-fourth of this, or 45 cents.
in six hours, the

is

usually higher than by the Towne-Halsey plan but it decreases

as the amount of saving increases, with the curious result that
is

when

the

mium

is

man

the

saves 90 per cent of the standard time his precent.

This de-

same as when he only saved 10 per

creased gain in earnings, of course, destroys the incentive to beat

the management as in the case supposed by Mr. Taylor; but it is
equally effective in penalizing honest efforts to make great gains.

The

first

20 or 30 per cent increase in eflSciency

is

easy for any

good man; it is the higher percentages which become difficult;

and it is just those higher percentages which are paid for at a lower
rate

by the Rowan

plan.

Nevertheless both the Towne-Halsey and the Rowan plans

have at times been strikingly successful, and are in use in many
establishments.

Their inventors are

practical and successful men.

all leading manufacturers,

Their plans are easy to introduce,

standard times are easily ascertained, no suspicions are aroused,

the temptation to cut is slight or none at
output is invariably obtained.

all,

and an increased

But their defects are glaring, and it was to remedy these that
Mr. Emerson evolved his system. First he sets a standard time
partly in accordance with past achievement, and partly in accordance with what an expert time study shows would be right. This
A workman must reach 66?
standard is called 100 per cent.
of
hold
his
this to
For every increase of efficiency
job.
per cent
beyond 66 f per cent he gets a bonus, very small for the first
increases, and becoming larger as he approaches the standard.
At 100 per cent he gets 20 cents bonus on the dollar of wages;
over 100 per cent he gets one cent for each one f>er cent.
Thus
at 140 per cent efficiency the gets a bonus of 60 cents on the

The management can afford this on account of the lower

overhead cost per unit of product.
This system involves a little more work on the part of the
management than the other in setting the standard time, yet
dollar.

SCIENTIFIC

702

conservative and ought not to arouse antagonism.

it is

the

MANAGEMENT

men a guaranteed base

ment in efficiency,

this

and an increase

It

pays

for

rate,
any improvebonus increasing as the difficulty of further
becomes greater.
It does not leave the

increasing inefficiency
loophole for beating the

management which

exists in the

Towne-

Halsey plan.

On

the other hand, inasmuch as the rate is not set with

thorough exactness, it contains the germ of future trouble. Further, the gradual increase in pay, beginning at the first little

increases in efficiency, allows the easy-going unambitious workman a chance to get a little better output and stop there, content

There

with his sUghtly increased wage.

is

no powerful incentive

to get the best possible.

The Taylor system (and the Gantt, which grew out of it) is
based on a radically different set of principles from all these.
It sets a standard time for each job with a precision as nearly
scientific as the nature of the work will permit.
Materials,

equipment, processes and methods are perfected

first;

then the

workmen

are trained carefully and patiently to the performance

of the work in the best way that experts can determine; the
result of this process is the standard time.

It is

what the trained

man

can do under circumstances made as nearly ideal for him as

After the management has done
the management can devise.

its part,

which

is

considerable, Gantt says to the

workman

"
to

Now we will pay you your usual wages until you have learned
do this in the proper time.
We will provide you with an

instructor

and with

all

the conditions which are necessary for

you to do it in this time, and when you have succeeded we will

pay you from 30 to 60 or 100 per cent bonus in addition to your
regular wages, depending on the nature of the work; but whether
you get up

to the standard or not

you

will

never be paid

less

than

your present wages."

The plan known

as the Taylor differential piece rate makes the

to standard time, conditions and instruction,

same proposition as

but says to the workman

"
When you have learned to do
:

will

pay you a piece

this in the

rate higher than

standard time,

you have had

we

before; but

SCIENTIFIC
if

you

fall

MANAGEMENT

below the standard your piece rate

703

will

be lower. With

a high output, you will get higher pay for more pieces;
below, you will get lower pay for fewer pieces." This

if
is

you

fall

in effect

a tremendous inducement to high efficiency, combined with a

penalty for

failure.

These methoas, of course, set their standards with due regard

to what a capable worker can do permanently without injury to
been shown in several elaborate investigations.
are
They
strongly selective; they appeal most to the ambitious,
the energetic and the intelligent; such workers are brought to a
his health, as has

high plane of efficiency and are kept there by the prospect of the
entire loss of the bonus if they fall below it.
On account of the

which the standard is set it is impossible to beat

the management; and as the gain is shared between the employer
and the employee there is no incentive to cut rates, and every
rigidity with

The percentage of bonus that goes

not arbitrary but is the result of exp)eriments

inducement to keep them up.

to the

workman

is

made to determine what percentage would get the largest number

of workmen up to the standard.
And the results of the system
when it is appHed in its entirety are in some cases so extraordinary
as to seem incredible.

But, on the other hand, the Taylor system is the most difficult
to develop and maintain.
It involves a degree of intelligence and
ability
rare.

on the part of the management which

Though

is

comparatively

the results read like a fairy tale, to get

them

requires an investment of time, money and patience which few

feel prepared to make.
In addition, there is a tendency at present
on the part of the unions to opp)ose all " efficiency " systems,

under which term they hash together everything except straight

day

rates.

The

difficulty

with the men, however,

is

insignificant in

com-

parison with the trouble which the management has with itself.
The Taylor system is a radically new departure which calls for

an entirely different spirit and attitude of the management

toward its responsibilities.
It challenges the management to
manage and this is precisely what they are most averse to doing,
;

so long as they can get along

somehow

or other with the

men

SCIENTIFIC

704
managing
consider

MANAGEMENT

Isn't this a question for every

for them.

manager to

The problem

of the relation of the labor unions to all systems

of efficiency is not so hopeless as it seems.

productive of an immense amount of good

The unions have been

and the evil for which

been
is
due
to
the stand of their
have
responsible
partly
they
in
to
and
to
the
economic
conditions
regard
employers,
ignorance
;

left by those who ought to

Their opposition to piece rates, for instance, is
entirely justifiable, in view of the history of this particular method

and

facts in

know

which they have been

better.

of payment.
On the other hand, their aversion to

modern methods

of

man-

chargeable to two causes, both of them bound to disfear on the part of some of the leaders that with
the
appear;
in
wages paid
proportion to efficiency there will be no further

agement

is

need for unions, and the fear on the part of the rank and file that
increased output means a decrease in the number of those
employed.

The

type of fear was illustrated by the locomotive engineers, when their president announced flatly to the Santa Fe
that the bonus system and the Brotherhood of Locomotive
first

Engineers could not coexist on the same road at the same time.
to run its trains, so they carried their point, and

The Sante Fe had

the engineers are doing without the bonus.

Where bonuses are
for
and for those
there
is
less
occasion
to
strike
higher
wages
paid
whose living depends on strikes or the prospects of strikes, this
;

does not open up a pleasant vista.

Not all labor leaders, however, look at the plans for getting
Some of them see that
higher wages from this point of view.
their unions exist for

many

other indispensable purposes besides

getting higher wages and that even with the best bonus system
there will be the same necessity for organized labor to protect
;

itself

against the greed of unscrupulous employers who will

to the temptation to cut bonuses as their forefathers

succumb

cut piece rates.

The only way

and long-continued regime

their relations with their

to

meet

this is

of absolute fairness

workmen on

by an unvarying
and

the part of

reliability in

all

employers.

SCIENTIFIC

MANAGEMENT

70$

other objection, that increased output means diminished

employment, is more subtle; yet the facts of history show the

The

contrary so consistently that the prevalence of the idea must be

charged to sheer ignorance.

This ignorance of what history has proved, the employers and
the better informed workmen must eradicate.
They must show

how increased output means,

in the long run, lower prices, greatly

increased
increased demand, and
employment to meet the new
Also that it means a larger dividend in which the
demand.
laborer may share, and a lower cost for the products which he

consimies; in short, that this idea

delusions from which

is

one of the most cruel

has ever suffered.

humanity
an incessant campaign of education.

It

self-

demands

With the disappearance of these two fears, employers and

unions are bound to unite eventually in a conmion effort to
increase the efficiency of production and distribution.
They will
reduce and perhaps eliminate the hardship which has usually
accompanied the period of transition from one stage of efficiency
to another.

They

will eliminate the

wasted energy characteristic

methods of production, and thus increase the total

They will reduce the
product in which they must all share.
friction and waste of disorganized marketing, and they will adjust
the balance of supply and demand more carefully and intelli-

of ordinary

gently, so that there will be

minimum waste
busy

all

cost,

made just what can be absorbed at

and no more.

This

will

the

keep everybody

the time and the industrial millennium will be nearly at

hand.

This is no irridescent phantasy, but merely a statement of the

probable outcome of the tendency of today to attack and solve
intelligently the age-long problem of fair dealing between the

master and the man.

THE RELATION OF SCIENTIFIC MANAGEMENT TO

THE WAGE PROBLEM
By

C.

BERTRAND THOMPSON

Reprinted by permission of the Journal of Political Economy

That

management has made

good with manufacturers and employers who know, cannot now
The sworn testimony
in the light of recent history be gainsaid.
of manufacturers before the Congressional Committee on Labor
"
appointed to investigate the Taylor and other systems of management "Us conclusive on this score. The report of the chief of
the Taylor system of scientific

ordnance for 191 2* with reference to the working of the system in

government arsenals is an illuminating and informing document
from an unprejudiced source, which settles the question at least so
machine-shops are concerned. The application of scientific
management to other branches of industry has been spreading
widely, not only in this country but abroad in Europe and Japan,
faryas

and always with the same

satisfactory results.

In spite of the

popular confusion of ideas about what scientific management is

"
"
and the frequent mistaking of various other systems for the

Taylor system, the success of the

tions

is

now

latter in its

complete applica-

indisputable, and well-informed managers are aware

of that fact.
It is not surprising, however, that the mass of laboring men are
as a whole quite uninformed and misinformed on the subject.
Men who work in plants organized according to the Taylor system

know the facts and are quite willing to admit its success from

their

point of view. But the majority of workingmen have never seen

such plants, and in all frankness it must be said that they have

been consistently and persistently misinformed, especially by

^
Special Committee to Investigate the Taylor and Other Systems of Shop
Management, The Taylor and other Systems of Shop Management. Hearings,
October 4, 191 1, to February 12, 191 2. Government Printing Office, Washington,

1912.
*

Government Printing

Office,

Washington, 1912.
706

SCIENTIFIC

MANAGEMENT

yoj

of their trade union leaders, in regard to the effect of the

system upon the health and wages of the men. This propaganda

some

of misinformation is

but a variation of the warfare with which the

introduction of machinery was met, and it is likely to have the

same effect of retarding the further development of scientific

management, unless counteracted by a propaganda of facts. A

campaign of education of the workingmen is necessary and, if
Such a camlong enough continued, is bound to be effective.
paign, however, must itself be based upon facts; and in this paper
"
I hope to show the bearing of the Taylor system on the
wage
problem."

Of the

trinity of materials,

machinery, and

men

that consti-

most important factor is men.

one
this
truth, very few have in the past
Though every
recognizes
A great deal of attention has been given to the
acted upon it.
purchase of materials in the cheapest markets, and the getting
tutes factory organization, the

of materials best

adapted to the processes

larly,

much thought has been devoted

ment

of

machinery and

up-to-date concern has

in hand.

And, simi-

to the technical improvethe introduction of inventions.

Every

its

laboratories, its machinists

purchasing agents, its inspectors and

and inventors; but very few seem tp

have given particular attention to the most fundamental of the

three elements
the men.

In spite of the prevalence of the talk about sanitation, safety,

etc., the most vital point of contact be-

welfare, esprit de corps

men is the pay envelope. There is no

solution of the problem of apparently conflicting interests between
employers and employed that does not involve fundamentally the
tween managers and the

question of wages.
What is the relation of scientific
?

Perhaps the easiest

problem
which I hope to arrive in
of

this

wage systems.
It is rather difficult to

day

rates or piece rates.

management to the wage

way to make clear the point at

paper

is

to review briefly the history

say which kind of wages came first

Probably both have existed ever since

man worked for another. Perhaps piece rates came first; for
we may imagine that, when our primeval ancestors got together
one

MANAGEMENT

SCIENTIFIC

708
and one

of

them decided

to fish for a

day

if

another would

make

axes that same day, they would swap products with each other.
In other words, each was paying the other for a definite product,
which is the essence of a piece rate. In a condition of society in

which foresight was not highly developed and complex thought

was difficult, such a method was the easier and therefore probably

But when the operations of labor became

the more common.
more complex and the imagination more comprehensive, one
would start to do something for another that would necessarily
The workman in the meantime would
take more than a day.
have to Uve and could not wait until the product he was working
on was finished before getting some kind of payment. His pay
evidently could not be for a definite product and must therefore
But whatever the origin and the
have been on a day rate.
priority of these rates, it is a fact that they
side through all historic time.

The

idea of

payment

for

have existed

work involves the notion

side

by

of equiva-

lence of value, and this notion has crystallized into the common
"
a fair day's work for a fair day's pay."
These
expression,
fair day's work seems to mean to
terms are exceedingly vague.

most people that the workman shall keep busy

for the greater part

or the whole of the day, or at least appear to be busy. A fair day's

wage in most minds means such a wage as will enable a man to live

up

common among his peers in the

In primitive conditions if a man would work all day

to the standard of comfort

community.
and his employer would pay him

for that day's

work what was

necessary to enable him to live, the sense of fairness was satisfied.

Both of these ideas are exemplified in the parable of the man

who went out

morning to hire laborers for his vineyard; an hour or two later he went out and hired others; late in
the afternoon he hired still others; then at the end of the day each
was paid a penny. The men that went to work in the early morning protested that, as they had worked longer, they should be paid
more.

early in the

The master

of the vineyard, however,

maintained that

it

pay what he chose, and his idea seems to have

been that whether a man worked one hour or ten he needed the
was

his right to

penny

in order to live.

The workmen were going on

the theory

SCIENTIFIC

MANAGEMENT

709

that a fair day's work means working all day; the employer on
the theory that a fair day's wage is what a man needs.

One obvious

difl&culty

with day wages

lies in

the fact that,

though the wage may be fairly set by public opinion or by organization, the content of a day's work is not by that method estab-

You may satisfy the workman by giving him what he

what
he has to have, but you have not necessarily satisfied
needs,
the employer that the workman has done a fair day's work merely
because he has spent a certain number of hours on the job; for
after all the employer's equivalent is not as a rule the mere command of the workman's time but a measurable product.
lished.

When

the day's wage is set by public opinion or by organization, but the day's work is not, there is a tendency for the day's
work to diminish gradually to the point where the workman can
just keep his job.

That

this

has happ)ened in

many

cases

is

matter of current knowledge, and is one reason for the dissatisfaction of employers with the day wage; for the workmen have
sometimes abused their opportunity and have done just the least
possible;

and

their opp)ortumty to

do

this

has arisen largely from

known what a fair

the fact that the employer has never really

day's work

When

is.

this condition

becomes intolerable to the employer, the

natural, the obvious thing to do is to pay for the unit of product

The history of piece rates is well
instead of the time employed.

known.
On their introduction the employer pays for what he
and the employee is paid for what he does. Both sides are
satisfied and the production increases.
The time soon comes

gets

workman puts forth all the energy he can muster to earn

as large a wage for as large a number of units of product as he can
The employer is highly pleased with the
possibly produce.
when

the

increased production, but soon begins to worry about the wages

he is paying. Then comes the inevitable cut. The workman has

himself established the rate of production of which he is capable,

and the employer figures a piece rate on this production which will

man an average living wage.

One or two cuts are

show
the
workman
the
usually enough
futility of putting forth
his best efforts under such a system; and the advantages of piece

just provide the

to

SCIENTIFIC

7IO

MANAGEMENT

rates have in many cases been destroyed in this way by the greed
and the injustice of the employer. The opportunity for greed and
injustice, however, arose from the fact that neither the employer
nor the employee really knew what a fair day's work was.
It is generally recognized today that both day rates and piece

rates are clumsy

and

inefficient, for the

reason that the

workman

and the employer will cut the

day
This
is made possible and practically inevitable
rate.
piece
by
the ignorance on both sides as to what is either a fair day's work or

will frequently beat the

fair

rate

day's wage.

Many

efforts

have been made to avoid both horns

From

dilemma.

depended upon.

of the

the fourteenth century on, legislation was

Legislation which set wages to meet the condi-

tions existent at the time

it

was passed was

fairly efficient;

but the

rapid changes in industrial conditions were not followed by

equally rapid changes in legislation; with the result that the laws
of the

market prevailed eventually over the laws

of the legislature.

In fact near the beginning of our modern era of industrial organ-

had actually become obsolete, and the

wages by act of Parliament was, under the
the ideas of Adam Smith, formally and officially

ization existing legislation

attempt

to regulate

influence of

given up.

Adam
were

left

Smith's optimistic philosophy to the effect that if men

alone the compromise effected by the conflict of their

self-interests

would work out

to the greatest satisfaction of

justified

Though

originally intended to set a

by the

event.

all,

The

was not

Statutes of Labourers,
the
conditions
at
the
fitting
beginning of the ninethough poorly
teenth century, were some slight protection to the workingman.

maximum beyond which

wages should not go in periods when labor was scarce, their application changed entirely in the course of two centuries, and in the
early years of the industrial revolution they established at least a

when they were repealed, the workingman

was left at the mercy of .his employer, and from his relatively
weak position was forced down to and below the limit of endur-

minimum wage

ance.

and,

His only resort was organization.

SCIENTIFIC

MANAGEMENT

This was the time at which labor unions in the

71I

modem sense of

the term established themselves, demonstrated the necessity of

their existence, and got the foothold which they maintain in Eng-

land and America and

many other countries today. They were

the answer of the under dog to the insolent assertion of prerogative on the pan of the employers to establish any wages and any
conditions which they chose to impose.

Labor unionism has not been exempt from the usual tendency
movements to go too far in the direction in which they started.
The unions were organized originally to protect the employee
of

against the aggression of employers; but as they began to feel

their power and to exercise it, it was inevitable that in the course

on the employers and

themselves become the oppressors.
They discovered that they
could tell the employers what the latter must pay but that the

of a few decades they should turn the tables

employers had no means of determining how much work the

employees ought to do. The policy of restriction of output has
been based on many arguments, but the most primitive and
potent reason for
as

little

it is

as possible for

the selfish tendency of human nature to give

what it gets. When the employees through

organization acquired the power to determine wages and the

employers in their ignorance had no means of determining a fair

day's work, a minimum output was the inevitable consequence.

some cases this tendency was counteracted by a sense of

fairness and mutual dependence, in many more cases it was aggravated by the feeling of conflicting interest and inherent hostility
between the two parties. In fact this feeling of hostility has been
If in

so prominent as to mislead many men into the idea that to solve

the wage problem meant merely to establish cordial relations
between the employer and the employee. Many means to this

end have been proposed and

tried.

One of the earliest attempts to bridge the gulf was to leave the
method of payment unchanged but to secure the cooperation of
the workingman by the psychological means of kindness, fair
treatment, and the development of a spirit of loyalty and of personal satisfaction in doing the job right; this is the basis of the
"
welfare movement."
so-called
Experience has shown that

SCIENTIFIC

712

MANAGEMENT

where day wages are paid and there is no established method of

determining and enforcing a day's work, the best that can be done
is

to try to develop the spirit of cooperation by such methods.

There are many objections, however, to most welfare schemes.

One

reason for their frequent failure is the fact that they are
He
largely personal to the man who instals and develops them.
is

unable to

his

own

resist the

temptation to impose upon the workingmen

ideas of what is best for them.
Often also he is arbitrary

He looks at welfare work as a gratuity on his

he
can
extend or withhold at his convenience. Somewhich
part
times also, in the excess of his zeal, he carries his welfare activities
and

capricious.

down

to the

most personal

details of his employee's domestic

management and arouses a feeling of strong resentment. But

more important than these objections is the common and natural
opinion of the men that the firm which can afford to maintain
welfare institutions can just as well afford to pay better wages,

and that they (the men) have a right to decide for themselves how
these wages shall be spent.
And, finally, welfare schemes often
bear the aspect of charity to the employee or of advertising for
the firm; and in either case they come speedily to destruction.

Some manufacturers have

is

disagreeable to the

charity
success of our concern

management, and

it is

said:

men,

"
let

If welfare is charity

us be businesslike.

and

The

the joint product of the men and the

businesslike for the management to share
is

the profits with the men. We will Umit our profits to lo per cent
and all over that we will divide among our employees."

The

history of profit-sharing has been as discouraging as that

One or two conspicuous successes may be
of welfare movements.
the
The
on
whole, it is a history of failure.
out;
but,
pointed

recent report of the British Board of Trade on Profit Sharing,^

bringing its history in Great Britain up to date, shows conclusively that, the best results accomplished in a few estabHshments consist merely in a general better feeling toward the
It points out that definite and substantial inmanagement.
1
(British) Board of Trade (Labour Department), Report on Profit Sharing
and Labour Co-partnership in the United Kingdom. Wyman & Sons, Ltd., Lon-

don, 191 2.

SCIENTIFIC

MANAGEMENT

713

creases in output or in wages are rare, if they exist at all, and that
it is extremely difficult to establish a relation between

at the best

such improvement as has been observed and the method of profit

The reasons for this are numerous: in the first place
sharing.
the reward

is

too remote and uncertain; the

workman may wait

a year for his dividend and then find that there is nothing to be
He is usually suspicious that the accounts are being
divided.
In any case he
in
the interests of the management.
juggled
finds his share of the profits ridiculously small in prop>ortion to
The
the increase of energy he may have put into his work.

most conspicuous example of this is the scheme of interesting the

employee in the concern by allowing him to purchase shares; a
holder of five shares in a company that has an issue of twenty
million may double, treble, or quadruple his output and efficiency
without producing the slightest effect upon the dividends on his
shares.
Beyond and behind all these reasons is the fact that
Profit
people generally do not consider profit sharing fair.
and
a
should
be
for
partnership
sharing is a form of partnership,
worse as well as for better; but the profit sharing scheme divides
part of the profits among the men and imposes all the losses on
Such a scheme is not and cannot be perthe management.
manently

satisfactory.

As

these plans have failed one after another, other schemes

have been prop)osed to take their place. It was felt that the interest of the

workman, which the usual

failed to arouse, might be secured

more quickly the

if

profit sharing

the

scheme had

workman were

benefits of his increased activity.

to get

straight

which would secure him such a benefit would carry

with it the temptation to the management to cut; so the scheme
was evolved of setting a standard time, based on exp)erience, in
piece rate

which work could be done, and then dividing with the workman
This
any time saved by the latter over the standard time.
amounts to notifying the workman in advance that, after certain
earnings on a piece rate basis have been reached, his rate will
Crude as it is, this premium system has been
be cut one-half.

The management
successful for limited periods in many cases.
makes its cuts once for all in advance and the workman knows

SCIENTIFIC

714
what

exactly

MANAGEMENT

Unless some cut is made which is not

coming.
men will work under this scheme with considerable

is

scheduled, the

and profit both to themselves and to their employer.

scheme also usually fails in the long run because it has
not cured the fundamental weakness of both day and piece rates
to wit, uncertainty as to what is a fair day's pay and ignorance as
to what is a fair day's work.
In short, none of the current and
historic methods of wage payment satisfy the popular demand for
"
equivalence incorporated in the expression, a fair day's work for

interest

But

this

fair day's wage," for the reason that neither side of the equation
has been until recently definitely determined.
Where there is
as
a
to
what
constitutes
either
only uncertainty
day's work or a
fair

wage, there can obviously be no satisfactory solution of the

problem.

So

far as I

know, the

first

recorded successful attempt in his-

and
scientifically was made by Mr. Frederick W. Taylor at the works
As foreman in
of the Midvale Steel Company thirty years ago.
the plant, Mr. Taylor found himself involved in the usual conflict
over wages; and he observed that no matter what scheme he
tory to determine either side of the equation accurately

tried,

he did not secure permanent satisfaction among the work-

men

or the employers.
Nobody really knew what ought to be
as
a
work.
He set out, therefore, to devise a
expected
day's

method to determine accurately if possible what a fair day's work

was, and then to pay for the performance of this work in proportion as it exceeded the ordinary commonly accepted day's work on
which the ordinary rates

of

pay were based.

As

the result of several years' study and experimenting, Mr.

Taylor evolved the method of time study and the differential
piece rate which characterize his system of scientific management
Where the differential piece rate prevails, there are two
today.
rates for each product: one known as the low rate and the other
as the high rate.
For example, time study shows that it is possible to

produce lo units of a certain product in a day; for each of

workman gets 35 cents, provided he produces the

these units the

he produces less than 10, he gets 25 cents per unit.

If he produces 8 units, he gets $2.00; if 9, $2.25 if 10, he gets, not
10.

But,

if

SCIENTIFIC

MANAGEMENT

715

This obviously pro10

25 cents but 10 X 35 cents, or $3.50.
vides a strong incentive to a man to accomplish the production on
which the high rate is based.

The

essential feature of the

system

is,

however, that the stand-

ard production (known technically among the Taylor group as

"
the task ") must be based on an accurate time study; and it

must be determined with the same impersonal and dispassionate

desire for truth that actuates the scientist in his laboratory.

The

work to be studied is divided first into its elementary operations,

and the time in which these operations can be performed after
methods and materials have been standardized, is ascertained by
a long-continued series of tests on an average man fitted for the
The requirements are intelligence,
job under observation.
patience, analytical power, and the capacity for accurate observation on the part of the time study man (for whom we should like
to adopt the French name chronometreur), and honesty and skill
Given these qualifications, the
on the part of the observed.
determination of a fair day's work is a mere impersonal study
It is simply answering the question how long
takes to do a given thing, and the answer does not depend on
any man's personality: it makes no difference whether the time

of a physical fact.
it

study is done by a union leader or by the owner of the works, by

an old man or a young woman; personal interest plays no more
part in

it

than

it

does in the measurements of an astronomer or

physicist.

then, when made by competent men trained in its

and
the technique of the industry under observation,
technique
defines at least one side of the equation: namely, the content of a

Time study

Such study, when properly made, includes

day's work.
When
allowance for necessary rest and other necessary delays.
these facts are determined and a mimimum time established, the
fair

conclusion
tion;

it is

a positive, impersonal fact, the result of observanot a matter of any one's opinion or interest, but a fact
is

established in accordance with the approved

methods

of scientific

investigation.

Time

study, while but one element of the Taylor system of

management, is typical of that system in its scientific method; and

SCIENTIFIC

7l6

MANAGEMENT

method is that which has gained for the Taylor

"
When such time
the
name
of
scientific management."
system
standardization
of
in
involves
the
is
instituted
a
it
study
plant,
this characteristic

administration and of equipment, materials, and methods, and

therefore implies a radical and revolutionary reorganization of the

The establishment of a fair day's work (the task) and

plant.
the institution and maintenance of conditions which will enable

workman to accomplish this work and earn the increased com"

pensation known as the bonus," cannot be done successfully in a
It requires more than a new
plant managed by the old methods.
a
it
new
mental
attitude on the part of the
mechanism;
requires
the

management, the attitude

of the scientific investigator,

which

is

as free as possible from personal interest, and which assumes

nothing that cannot be ascertained and proved; it means a new

moral attitude

a substitution of the passion

reUance on guess work, ignorance, and

bluff

for truth for the

which has heretofore

prevailed.

The usual method of setting piece

even

in

some

cases

rates

makes no claim

be honest.

to being

Some

plants
may
estabhsh their rates as the result of a series of observations of the
scientific,

if

it

time similar jobs have taken in the past; but as these observations
show widely varying times for the same work, an average is taken
which is simple arithmetic and nothing else. Others set a rate on
the basis of what they can afford to pay in the prevailing state of
New rates are almost always set by some one's
the market.
"
"
which
is merely a term for a more or less experijudgment

enced guess.
For aU these methods the Taylor system substitutes the method
If the observer, being human and in
some cases more in sympathy with the management than with the
men, allows his scientific judgment to be swayed by his desire to
make the day's work as large as possible, he cannot do otherwise
than overstep the mark to the extent of setting a task which cannot be accomplished. But this process is self-defeating, for if the
task cannot be made, the bonus cannot be earned, and the men
The management
will not attempt to do the new day's work.

of the scientific observer.

SCIENTIFIC

MANAGEMENT

717

thereby loses more than the men, and the intrusion of a greedy
bias kills the goose that lays the golden egg.
The Taylor system therefore puts a firm foundation under one
pier of the arch which is to bridge the gulf between employer and
employee, in that at least it makes it possible to determine what is

fair

day's work.

ScieAtific

What

does

it

say about a

fair

day's wage

management does not today attempt

to establish

what is a fair day's wage. It takes the prevailing rate of wages in

the community and then proceeds to add to that a bonus in proportion to the achievement secured in excess of the ordinary
achievement in that conmiunity. This process, however, leaves
the basic rate to be determined as before; that is, by the ordinary
We have seen that in this
daily bargaining in the market.

bargaining the disadvantage at which the workman is placed by

his dependence upon his work for a living has subjected him to

abuse at the hands of his employers.

Legislation has failed to
determine a fair day's wage.
It can set a rate of payment, but,
until

it

sets the

amount of work that is

to be

done

for that rate

and

enforces the performance of the standard amount of work set, the

rate is futile.
In this fact lies the fundamental weakness of

mimimum-wage

legislation.

The law cannot

comp>el an emcan also assure

ployer permanently to pay $8 a week, unless it

him workmen who can and will produce at least $8 worth.

Experience has shown that the good-will of the employer cannot

be depended upon permanently to maintain a fair day's wage.
Public opinion also has failed, for the reason that, while in an

way each man wants justice for the other fellow, he is not
make much personal sacrifice in the way of paying
Each member of the
higher prices for the other fellow's product.
abstract

willing to

public wants to buy everything as cheap as he can get

this cheapness involves some one's else low wages.

In

it,

even

if

my opinion it is as true today as it was a century ago that the

final resort of the

workingman is in the collective force of organUnder scientific management or any other system,
the workmen must depend upon their combined power to enforce
a mimimum wage. But this policy will not succeed in the future
ized labor.

any better than

it

has in the past, unless the

demand

for

a mini-

71 8

mum

SCIENTIFIC
wage

is

quantity of

MANAGEMENT

accompanied by the promise and guaranty of a

will warrant that wage.
There is no

work which

possible harmony between scientific management, large output,

and the social interest on the one hand, and mere unintelligent

output and class interest on the other. But

union
which
will adopt the policy of estabUshing a minithe labor
mum wage as a basic rate on which a bonus, determined by the
force, restriction of

conditions of the industry, shall be paid for the performance of a

proper day's work, and which, in addition, will assist if necessary

in determining what a proper day's work is, and in enforcing the

performance of that work on the part of its members, is acting at

once in its own interest and in that of society. This would be a
long step toward the solution of the wage problem and would help
to bring about that cooperation of employee and employer which

we

and hope for but rarely see.

something more than a dream that labor unions are sooner
or later going to take over scientific management and make it their
own. They have already established their right
by force, to be
to determine a minimum
sure, as most rights are established
have
estabHshed
their
right to safe and sanitary
wage.
They
There are cases on record where they have
conditions of work.
"
You will have to scrap that
gone to the management and said:
obsolete machinery and put in new machinery."
They have comall

desire

It is

plained to state commissions of the obsolete equipment of railroads.

They have even struck to compel the management to
instal the Taylor system, and have done this, not because they

were primarily interested in large output or higher profits for the

management, or even in a lower cost to the consumer, but because
they were intelligent enough to reaUze that in industry as elsewhere, knowledge is the foundation of justice, and only that

method

of

management based upon knowledge can answer

per-

manently the question of fairness.

Along this line a union can and should say to its employer:
"
We do not care how much profit you can make out of your business but we insist upon having fair wages, and if you cannot make
enough by your present methods to pay us fair wages, you must,

SCIENTIFIC
you want
modern and

if

When

to

employ

MANAGEMENT

719

your business on the most

you can pay us."

us, organize

scientific plan, so that

labor unions arrive at that point of view, as they will

get a type of leadership which is more interested in

when they

members through peaceful progress

by fomenting strife
when they take over scientific management and say: "We
beUeve in this and will help it because it means larger output,
securing the welfare of their

and cooperation than

in earning their salary

lower cost to the consumer, higher wages for ourselves, prosperity

for the employer, general satisfaction and a higher standard of
living;
it

"

and because

then we

nent because

And

it

good for us we insist that you shall adopt

have a type of cooperation which is perma-

it is

shall

involves fundamentally the welfare of both parties.

in this I believe I see as near a solution of the

wage problem

we

are likely to reach under our current form of industrial

organization. This involves not the weakening but the strength-

as

ening of organization of both employers and employees, and

It can
the assumption of greater resix)nsibihty on both sides.

come only with the

increase of knowledge

and under the preand as

dominating influence of a desire for truth and justice;

usual the world is being driven toward truth and justice
stress of the conflict

brought on by ignorance and

by the

injustice.

MANAGEMENT AND THE WAGE-

SCIENTIFIC

EARNER
By frank

T.

CARLTON

ALBION COLLEGE
Reprinted by permission of the Journal of Political Economy

Efficiency programs are attracting much attention in

this

country, at the present time, because nearly all of the great expanse of land found within the borders of the United States has

been taken up and the vast natural resources of the nation have

been tapped.

We

are entering a period of diminishing returns;

which increasing attention will be directed toward

small economies that were not considered worthy of notice a gen"
The cream has been skimmed off the pan of our
eration ago.

and a period

in

Also, factory legislation, laws as to hours

natural resources."

and the activity of labor organizations are tending to

raise the level of wages and to increase the expenses of operating
a business. As a consequence, employers are being stimulated
to adopt more efficient methods.
Many indications point to the conclusion that modern indusof labor,

nations are passing over the threshold of a new era in indusand social progress. We are about to enter upon a period
marked by the rapid increase in the use of machinery and of
trial
trial

methods

of doing work.

Witness, for example,

the
the glass-bottle blowing machine,
giant mail-order house
with its systematized large-scale distribution of goods, and the
The term " indusfarmer's use of engines drawing gang-plows.
"
has heretofore been applied to the rapid adoptrial revolution
carefully planned

tion of

"

new

tools

and machines.

Social invention

And what may be

"

is

to be typical of the epoch just ahead.

tabulated under the head of social invention,

efficiency engineering, or scientific

management

Efficient

com-

binations of labor-saving machines, accurate information as to the

time and energy required to do specific jobs, motion studies of

730

SCIENTIFIC

MANAGEMENT

721

and psychological studies of the kinds of

incentives which most effectively stimulate workers to do their
work eflSciently
these are some of the important planks in the
different craftsmen,

efficiency

program.

management or efficiency engineering is concerned

The first is efficient
with two somewhat interrelated matters.
systematization of the work in a given factory from the engineerScientific

the routing of the work,

ing or the mechanical point of view
tools
and machines, and the
care
of
the
proper cutting speeds,

The second

psychological in its nature; it relates

"
"
the workers by proto the effective methods of
energizing
interest in the work.
and
incentives
stimulating
by
viding potent
The first is the more simple of the two problems but it cannot be
like.

factor

is

carried out successfully without solving the psychological problem.

Since technical improvements in machine-shop methods

increase the per capita output of the wage-earners, these scientific

methods will doubtless be introduced, as were machines, in spite
of opposition.

methods of doing work will sooner or

efficient methods just as, for example, the

Efficient

later displace less

steamboat has displaced the sailboat, the automobile is displacing

the horse upon the streets of our cities, and the giant drop-ham-

mer has displaced the

village blacksmith.

The transformation

be retarded; but the constant pressure of economic forces

break down all opp)osition.
But the second portion of the program of the efficiency engineer

may

will finally

cannot be forced through. It cannot be secured by coercion; it

can be effectively carried out only when the wage-earners harmoniously cooperate with the managers in working out the proposed plan. The fundamental problem of efficiency engineering
It is more
centers around the treatment of the wage-earners.
a problem concerned with the relations existing between the
employer and his employees than it is a problem of bookkeeping
The pioneer
or of the care of machines or of the selection of tools.

and leading exponent

writes:

"

This

close,

Mr. F. W. Taylor,
intimate, personal cooperation between the
of efficiency engineering,

management and the men is of the essence of modem scientific

And Harrington Emerson asserts that
task management."

or
to

SCIENTIFIC

722
"

establish rational

MANAGEMENT

work standards

motion and time studies

for

men
but

requires, indeed,

requires in addition all the skill of the planning manager, all the skill of the physician, of the humanitarian, of the physiologist; it requires infinite
knowledge directed, guided, and restrained by hope, faith, and
of all operations,

it

compassion."
In theory, according to its advocates, scientific management
stands for increased productive capacity without increased effort;
it

aims to do away with

means maximum

mean

"

worthy

lost

results

motion and useless movements.

with a

minimum

of effort;

it

It

does not

frenzied production."
Now, these objects are certainly
of approval; and, consequently, opposition to efficiency

engineering must arise because of the methods employed in carryOur attention evidently must be directed
ing out the policy.
"
toward this pertinent inquiry: How, then, can this close, inti-

mate, personal cooperation," of which Mr. Taylor speaks, be

secured ?
It is perhaps worth while at the outset to call attention to the
"
"
obvious fact that the man who is working for himself does not
The farobject to methods or systems which lighten his work.

mer is glad to obtain a tool which will increase his productivity.

Even the conservative wife of the farmer is not adverse to the
installation of a new or better pump, a cream-separator, or some
scheme which

will

save steps.

Why, then

it

may

be asked, does

the wage-earner so frequently resist the introduction of new

machinery or of new and scientific methods of performing work ?

The farmer and

the farmer's wife do not fear that the

chines or methods will cause

them

new ma-

to lose their positions, or that

be called upon to do much more work for little more

They beheve, on the contrary, that their income will be
pay.
In
increased and the length of their working-day reduced.
they

will

short, they are confident that the results of their efforts will be
On the other hand, the wage-earner feels instincmultiplied.
tively, too often as the

consequence of past experience, that the

system of scientific management is some more or less subtle

scheme to advance the interests of his employer at the expense
How can the viewof the workers individually or as a class.

SCIENTIFIC

MANAGEMENT

723

point of the worker be modified until it coincides in this particular with that of the farmer or with that of the man who is
"
"
This points to another fundamental
working for himself ?

problem

for the eflSciency engineer to solve.

The wage-earner

is

today insistently demanding that a portion

of his share in che advantages accruing from the introduction of

improved machinery and of scientific management be given to

him

His conception of a
desirable form of society in the twentieth century is not one in
which a certain number of individuals work at high speed during
in the

form

of a shorter working-day.

a long working-day but one in which all work during a short

There are, obviously, at least two alternative
working-day.

methods which may be pursued in producing a given quota ^ of

economic goods and services: a small number of men may be
employed

for a long

working-day or a larger number for a shorter

From

the standpoint of the wage-earner observworking-day.

ing a large and apparently growing army of unemployed, the
His ideal is not
second alternative is by no means repulsive.
necessarily maximum productivity p>er worker per day; but a
condition in which work and recreation are blended for each

"
the reasoned
And, if economics is
a
toward
the
of
satisfaction
of its needs,"
activity
people tending

and every
shall the

individual.

economist confidently assert that the wage-earner's

one worthy only of contemptuous rejection ?

ideal
If scientific management has great possibilities, the
is

effect of its

may not be unlike that caused by the displacement

Not only may increased proof the hand tool by the machine.
introduction

duction be anticipated, but also the displacement of workers,

temporary unemployment for many, and a multitude of industrial evils

which accompany every important readjustment

The introduction of scientific manin the sphere of industry.

"
bids
fair
to
cause
another
intensive, resistless reorderagement
"

a given quota of economic goods and services " is applicable only to a static state and, in so far as the argument of the writer is based
upon this assumption, it does not apply to a dynamic economic condition in which
the quota of economic goods and services which can be absorbed by society is
'

The assumption

constantly increasing.

of

Ed.

MANAGEMENT

SCIENTIFIC

724
ing of industrial
sole capital,

life."

a family to provide
"
resistless

And the wage-earner,

with his

skill

as his

with only a small savings account or none, and with

for, is justified in

reordering of industrial

A
manifesting alarm.
"
for
usually means,

hfe

wage-earners, unemployment and uncertainty.

"
hitherto it is questionable if
Stuart Mill asserted that

many

mechanical inventions yet

any human being."

John
all

made have

lightened the day's

Will scientific management do so ?

the

toil of

Before passing to a consideration of the conditions which are

requisite for the successful outcome of scientific management, it

seems appropriate to notice some of the points made by Mr. F. W.

Taylor in his recent book. The Principles of Scientific Management.

These points have a direct bearing upon the

topic under consideration.

later discussion of the

Mr. Taylor declares that under an adequate system of scientific

"
management, each man should daily be taught by, and receive
the most friendly help from, those who are over him, instead of
being, at the one extreme, driven or coerced by his bosses, and at
In this manner, it is
the other left to his own unaided devices."
"
"
on
the
one
hand and injurious
urged,
systematic soldiering
hand
will
be
avoided.
on
the
other
But is it reasonspeeding-up
able to expect that the \v;orkers will willingly and contentedly
leave the determination of the definition of systematic soldiering

and

injurious speeding-up to the inevitably prejudiced

^
of their employers ?

The model workman, from

ciency engineer,
'

While

it

is

is

judgment

the standpoint of the typical

the vigorous

man who

freely

expends

all

effi-

of his

true, as the writer suggests, that the introduction of scientific

"
management means eventually a

resistless reordering of industrial life," it

appears

must come about quickly. The fact is, as has

been pointed out by Mr. Taylor and as is evidenced in experience, that the effect
of this development of management upon industrial conditions is and must necesto be

sarily

assumed that

this reordering

be gradual from the nature of the factors involved: the necessarily slow
of the science of each industry; the weight of the inertia both of

development

management and men to be overcome; the scarcity of experts available to extend

Ed.
the system; and numerous other reasons.
*
The writer here overlooks the fact that the task to which he refers is not

based upon any one's judgment, either that of the employer or of the employee,
Ed.
but upon accurate time study.

SCIENTIFIC

MANAGEMENT

surplus energy during working-hours and

725

who

non-

utilizes his

working-hours only for recuperation and preparation for another

day's work.^ It is not the purpose of efl&ciency engineering to
allow the worker to depart from the door of the factory at night
with more than a minimum of surplus energy for recreation, for

family

life,

for civic duties, or for trade-union activities.

I find little in the actual

program

In short

of eflSciency engineering

which

indicates that the wage-earner is to be given opportunity for indiand I have not overlooked the various
vidual development

paternalistic endeavors classified as welfare work.

A human

"

machine rather than a man is the model workman." I also find

little, or more accurately nothing, in Mr. Taylor's book which
indicates that he appreciates or sympathizes with the viewpoint
of the wage-earner.

Mr. Taylor informs us that a long series of experiments has

shown that an increase in wages up to 60 per cent beyond the
"
wages usually paid has a good effect upon the men. But, on
the other hand, when they receive much more than a 60 per cent
increase in wages, many of them will work irregularly and tend
to become more or less shiftless, extravagant, and dissipated.
Our experiments showed, in other words, that it does not do for
most men to get rich too fast."* But what of the eflSciency of the
'

from

Cf. this statement with

his

"

Mr. Taylor's definitions.

Management," f>age

Principles of Scientific

The

following quotation

is

9.

"

The principal object of management should be to secure the maximum prosperity for the employer, coupled with the maximum prosperity for each employee.
"
The words maximum prosperity are used, in their broad sense, to mean not
only large dividends for the company or owner, but the development of every
'

'

branch of the business to

its

highest state of excellence, so that the prosperity

may

be permanent.
"
In the same way maximum prosperity for each employee means not only
higher wages than are usually received by men of his class, but, of more importance
still, it also means the development of each man to his state of maximum efficiency,
so that he may be able to do, generally speaking, the highest grade of work for
which his natural abilities fit him, and it further means giving him, when p>ossible,
Ed.
this class of work to do."
' Mr.
Taylor's observation on this matter hxis been amply confirmed by experience.
One conspicuous example should be sufficient. The man referred to in
"
"
"
as
Schmidt," the pig-iron handler, has had his record
Shop Management

traced recently, and the investigation showed that the unusual

earnings he

made were used

largely in drinking.

Eo.

and exceptional

SCIENTIFIC

726

MANAGEMENT

torporation which receives large increases in its rate of profits ?

How do such increases affect the alertness of the managers,
the adoption of improved methods, machines, and safety appli-

ances

Can

the workers or the consumers afford to allow an

employing corporation to increase its rate of profits ? If so, how

This is an unworked field of efficiency
rapidly and how much ?

And our efficiency engineers are not enthusiastiengineering.

in investigations of this sort.
interested
cally
"

is

"

on the part of wage-earners in the United States

Soldiering
alleged to be a menace to the prosperity of every establishment

and

of every wage-earner in the nation.

The

causes of soldiering,

Mr. Taylor, are three in number; but these are

to two.
These two causes may be stated as
reducible
readily
according to

follows: (a) the general acceptance of the lump-of-work doctrine;

I have elsewhere ^ shown
{b) the lack of scientific management.

that the lump-of-work argument cannot be so easily laughed out

some economists and employers would have us believe.

of court as

The workingman is interested in tomorrow's job and wages rather

than in some indefinite benefit to society next decade.
The knowledge that

a certain p)olicy, if pursued by all for a period of years,

about reductions in the wage scale does not appeal to the
average wage-earner with a family to feed, clothe, and shelter, in the direct
and forceful manner that the immediate probability of slack work does. He
"
"
a particular job he may work longer or another felsees that by
nursing
low-workman may be employed. This is something tangible, the other is a
Immediate work for John overshadows
remote and uncertain possibility.
the vision of a chance of future employment for Tom, Dick, and Harry, and
will inevitably bring

other

unnamed and unknown

individuals.

Mr. Taylor directs attention to the shoe industry. The introduction of machinery into this industry has undoubtedly cheapened the price of shoes to the consumer; and the workers can, as
a consequence, afford to buy more and better shoes. And it may
"
that there are relatively more men working in the
also be true
^

Inasmuch as the increased

profits referred to

cannot persist in competitive

conditions, in the absence of managerial alertness, this alertness is in such condiIn most cases it is precisely the fact that the
tions automatically maintained.

manager has the acquisitive or business temperament that is indispensable to

Ed.
being manager instead of man.
^
The History and Problems of Organized Labor, Tp^. 12,2-iiA-

his

SCIENTIFIC

MANAGEMENT

727

shoe industry than ever before." But it is also a fact that many
workers were adversely affected by the introduction of shoe

That great and spectacular outburst of unionism

was not the fantastic result of purely
the ICnights of St. Crispin
men
with wives and children to feed,
imaginary dangers. Many
clothe, and house saw their trade, that is, their means of earning
and their vision
a decent liveUhood, being ruined; they saw
the menace, at that time and place, of cheap
was not defective
Their problem was individual and immediate, not social
labor.
machinery.

and a matter

of future welfare.^

The non-social lump>-of-work argument is closely paralleled by

what may well be called a lump>-of-capital argument. Many a
corporation composed of individuals who are not in business for
their health has obtained a patent upon some new appliance
which would cheapen the cost of production but necessitate the
scrapping of much valuable equipment; and, consequently,
with the aid of our antiquated patent laws such corporations
have quietly shelved the patents. The attitude of the capitalist
in such a case is not very dissimilar to that of the

workingman

the introduction of machinery or of new processes

In addition to
which threaten his trade or his lump-of-labor.

who opposes

the prevention of soldiering on the part of workingmen one of the

problems of a well-rounded program of eflSciency engineering
would be to prevent the shelving of new appliances and machines,

a modification of patent laws.

But so
knowledge goes, our eflSciency engineers have not paid

and, perhaps, to

call for

far as

my

much

attention to this important matter.

With

these illustrations before us, you are asked to direct your

attention to the requisites, in the judgment of the writer, for a
successful

form of

efficiency engineering or of scientific

manage-

ment.
*

The

writer

is

correct in calling attention to this fact which has apparently

by most of the exponents of scientific management. It

hitherto been overlooked

on account of the important personal bearing of scientific management that the

problem of educating the laborer is so much more difficult than from a strictly
Ed.
logical point of view would appear to be necessary.
is

SCIENTIFIC

728

MANAGEMENT

and disinterested students of efficiency engineering

admit that such systems are advocated by the
that
the employer instituting them expects to direct
employer,
their operation, and that the systems are adopted primarily for
All careful

will doubtless

The problems connected with the

the benefit of the employer.
various systems are viewed from the standpoint of the employer
and capitalist. Benefit to the wage-earner is perhaps considered
an incidental advantage; but it is a secondary matter. The
the attractive lure
is lowered costs
bright and shining goal
and increased profits, rather than better workmen and citizens, or
more leisure and culture and enjoyment for the toiling mass and
to be

Is it reasonable to expect that the wage-earners,

organized or unorganized, will grow enthusiastic over a lop-sided

their families.^

as Mr. Taylor declares,

"
"
is required to
enerpersonal cooperation
"
a
cannot
reach
a
plant, efficiency engineering
gize
high degree of
while
workers
the
the
distrust
motives of the employer,
success

system of
"

scientific

management

If,

close, intimate,

or as long as the workers in the plant are convinced that the

employer

is

trying to get

more work out

of

them without

pro-

portionally increasing their pay.

The average American

askance upon an arbitrary

no way under the control of the mass of
The despot, whether enlightened and benevolent or
governed.
be
would
not,
regarded with suspicion and would not be tolerated.
Men have repeatedly and vigorously objected to arbitrary action

government which

is

citizen looks

in

on the part of government. And for centuries the western world

The Louis XIV view of
has been moving toward democracy.
but
absolutism
in industry is still charis
obsolete,
government
Will not, therefore, the average
wage-earner, granted poHtical privileges but shut out of the
councils of industry, distrust the management of the business in
acteristic of the business world.

his daily bread.

He will certainly see in the plans
of the employer schemes for quietly and effectively squeezing
The workers in our shops, factories, and
the laboring man.

which he earns

It

is

neither a long nor a diflScult course of reasoning which connects lowered

costs, increased profits,

author) with
families."

"

more

Ed.

and higher wages (the latter unfortunately omitted by the

and culture and enjoyment for the toiUng mass and their

leisure

SCIENTIFIC

MANAGEMENT

729

mines can no more be expected to look with favor upon arbitrary

changes concerning which they have not been consulted, than
can the average citizen of today be expected smilingly to abide
by the rulings of an arbitrary monarch.
The day of the individual entrepreneur is of the past, not of the

We may regret his going; we may

present nor of the future.
assert
that
he
was
superior to the giant corporation
vociferously
mutually independent units, and we may
argue that the rivalry between entrepreneur and entrepreneur is
essential to business progress and industrial efficiency; but the
with

its collection of

Likewise, the day of indicorporation is here, and here to stay.

vidual bargaining with the isolated worker is passing. Employers

may strive to delay its going; but in vain will be the effort. Professor Commons has pointed out that unorganized as well as
organized workers are willing to strike for the right to bargain
"
It is their desperate recognition that the day of
collectively.
It is safe to assert that
individual bargains is gone for them."
eflSciency engineering will

not be successfully introduced and

maintained by union-smashing corporations demanding indi"

vidual bargaining with workers, because
close, intimate,
personal cooperation between the

"
management and the men

impossible under such conditions.^

Organized labor is definitely committed to the

obviously

is

method of coland both organized and unorganized wageearners recognize that, except in a few highly skilled trades and in
the case of farm laborers, the individual bargain leads toward a
sweating system. The employer who demands the continued use
lective bargaining;

of the individual bargain,

name

whether the demand

is

made

in the

and the freedom of contract or in the name of

Individual bargainefficiency, becomes an object of suspicion.
ing is productive of distrust rather than of harmonious cooperation.'^
*

of liberty

And

Thus

consequently efficiency engineering can only hope to

far scientific

management has been introduced mainly

which practise individual bargaining exclusively and,

in establishments

in spite of the theory,

it is

"
evident to any student of those organizations that
close, intimate, i>ersonal
"
Ed.
has been secured.
codperation between the management and the men

'

As may be

in experience.

inferred

Ed.

from the previous note,

this

statement

is

not borne out

SCIENTIFIC

730

MANAGEMENT

succeed, in the long run, in energizing workers by utilizing the

And accepting the collective bargain means
collective bargain.

the partial admission of the representatives of the workers into

It is a tentative step away from
the councils of the employers.

autocracy in business; it is a step toward putting industry upon

Collective bargaining and the
a peace instead of a war footing.
admission of the workers into the councils of the management
are essentials of close cooperation between the management and
But the leaders in the movement for efficiency
the employees.

engineering have not, as yet, given this fundamental fact definite

recognition.

management which posmanagement

must necesdemanded by its advocates

Successful scientific
sesses the qualities

sarily cast aside the old incentives such as coercion,

and the

constant nagging and prodding by the foreman.

Furthermore,
it must be so directed that the workers will be convinced that it
is

to their interests to accept the planning-room's

methods and

program, and to follow the system outUned by the experts

in charge of the work.
But, without organization and the collective bargain, have the workers any reason to beheve that the
If the
of the efficiency engineer will benefit them ?
or
of
of
the
course
of
machinery,
history of the introduction
events in the steel industry since unionism was driven from the

program

any useful lessons, the obvious conclusion, in

the judgment of the writer, is that the workers must unite upon
both the industrial and the political field in order to derive any
considerable share of the advantage of efficiency engineering.
steel mills offers

action, it may be anticipated that

the workers will be shorn of the major portion of the direct bene-

Without united and aggressive

fits

which

respect and cooperation between

employees are the fruits of equahty in the strength

may result.

Mutual

employers and
and coherence of their respective organizations; and, indeed, only
under such conditions can scientific management achieve its maxi-

mum of efficiency.
that

if

Further,

it

may be quite confidently asserted,

under our present industrial order this kind of scientific

management

or of eflSciency engineering cannot thrive, then

is

SCIENTIFIC
that order

form

doomed

MANAGEMENT

to be displaced

by

socialism or

731
some other

of industrial democracy.

The growth of industrial unionism with its emphasis upon direct

action, as illustrated in the recent EngUsh strikes and the Lawrence strike, indicates that a new era in unionism is beginning.
Bitter opposition to organized labor and contemptuous disregard
demands of employees are strengthening the spirit of soli-

of the

If it be desirable that
darity in the ranks of the working class.
of
and
united
a class-conscious
army
wage-earners be developed,

then the bitterest and most uncompromising opponents of organized labor are its friends in disguise;

and the union-recognizing

dangerous antagonist. But if it be desirable to preemployer

a
vent such
consummation, the wise and conservative entrepreneur of today will recognize organized labor and accept the
its

collective bargain.

In fixing upon the remuneration to be given to the wage-earner

in a factory where scientific management is utilized, two points

must be determined: the day wage and the amount or

premium

or bonus.

lective bargain.

In either case

The premium

rate of the

possible to utiUze the colrate as well as the day wage can

it is

undoubtedly be fixed by means of the collective bargain. Scienit is

tific management can therefore utilize the collective bargain
not restricted to the individual bargain. And it is not clear that
;

Although under the premium plan,

workers in a given class would not receive the same weekly
wage, yet the premium rate could be adjusted by agreement
the wage-earner need oppose.

all

And the
between the employer and the ofl&cers of the union.
rate also could be so adjusted as to militate against over-driving.^
The spokesmen of organized labor inform the general pubUc that
demands a minimum wage, not a uniform wage. But
a reasonable premium plan would offer a minimum wage with an
This would not
opportunity to receive a bonus for efficiency.
the union

necessarily miHtate against organized labor unless a flat rate of

*

This statement betraj^ a misunderstanding of the nature of a taslc.

See the
"
The Relation of Scientific Management to the Wage Problem," page

article,

706.

Ed.

SCIENTIFIC

732

MANAGEMENT

wages within a given class of workers is essential to the maintenance of union solidarity.
In conclusion, it may be pointed out that the success of collective bargaining which l^as been asserted to be an essential element
in successful efficiency engineering in turn depends upon the solution of the basic problem: What is a fair wage ?
Or, more

be formulated in the following

an epoch when competition is
wage
being displaced as an effective force in the industrial world ?
Or, one further step may be taken: Is there a concept of a fair
wage which can be made acceptable to both employer and emspecifically, the question

manner:

What

is

fair

may

in

Concretely and specifically, the question may be

ployees ?
stated after this fashion: Can a scientific basis be found for the
determination of a satisfactory time base and for a satisfactory
rate for the various progressive wage systems which are
introduced
by efficiency engineers ? The familiar theories
being
of wages such as the wage-fund theory, the residual theory, and

premium

the marginal-productivity theory are all grounded upon the

fundamental postulate of free competition.
But today monopand
economic
friction
oly, special privileges,
play such important
r61es in the economic sphere that none of these theories throws

much

light upon the actual wage question.

Indeed, no inconsiderable portion of the recent theorizing as to the rights of labor
and of capital is futile because it proceeds on the theory that free

competition
projectile

determine

exists.

moving
its

in

To work out
a vacuum is

the hypothetical course of a

important; but in order to

actual trajectory such studies

must be supple-

In hke manner, a theory of wages applicable in a hypoof free competition is desirable; but it also should be
state
thetical

mented.

supplemented by a thorough study of the efifect of economic

friction and monopoly.
And, lastly, it may not be irrelevant to inquire Can scientific
:

management reach a high level of efficiency while approximately

one-half of the adult wage-earners of the nation are receiving not
more than $500 per year ? But students of workingmen's budgets seem to agree that in order to support a normal family in a
decent manner an income of $750 to $900 per year is required.

SCIENTIFIC

MANAGEMENT

733

Does not the efficient working-out of a plan of scientific management require the efficiency engineer to go outside the shop in
which the workers are employed ? Does it not require a study
of the conditions surrounding the home life and the recreations
of the wage-earner, such as food, housing, amusements, and the
In building the Panama Canal, it was found necessary
like ?
'

to devote

much

attention to the sanitary conditions witliin the

This work was carried out as an essential part of

Canal Zone.

the work of building the canal; it was an integral part of scientific management and of good business policy as applied to that
Surely the same principles apply to the
great undertaking.

management

of

any

large business within the borders of the

nation.

In

brief, these are

the conclusions reached: (i) Up to the presbeen a one-sided matter.

(2) If

ent, efficiency engineering has

be attained the cooperation of

the men with the management must be secured.
(3) Such cooperation can be secured only by utilizing the collective bargain

any high degree

of success is to

and by admitting

in

some measure the representatives of the

(4) And, still

workers into the councils of the management.

further, the success of collective bargaining depends, in the long

run,

upon

finding

some mutually acceptable

basis for a fair wage.

^
This fact is fully recognized by practitioners of scientific management; but
they also recognize the possibilities of danger and of the accusation of unreasonable

interference,

amusements

if

any considerable

of the workers.

effort is

Ed.

made

to control the food, housing,

and

ANOTHER SIDE OF EFFICIENCY ENGINEERING

By dexter

S.

KIMBALL

PROFESSOR OF MACHINE DESIGN AND CONSTRUCTION, SIBLEY COLLEGE,

CORNELL UNIVERSITY
Reprinted by permission of The American Machinist

In these days when hurry and speed are the keynote of indusit would seem to be almost sacreligious, or at least a mark of

try

ignorance, to raise one's voice even in doubt, to say nothing of

protest, against any ways or means for increasing production.

Yet

cannot but think that only certain aspects of some of the

new methods

of increasing production are being presented and

that those aspects, which are so alluring, entirely overshadow
certain others and hence do not give a true perspective of what

the net results will be.

Now

may

be entirely mistaken in

be glad to be corrected and

be glad to correct me.

my

no
doubt find many who will
In the outset I wish to state that I believe firmly in modern
methods of production and appreciate fully what increased propoint of view.

If so I shall

will

ductive power by means of machinery and improved methods

I believe we should welcome and
civilization.

has done for our

encourage any and all new discoveries in machinery or methods

which will enable us to still further increase our capacity in this
direction

and gladly accord the honors due

been and now are leaders in

this

work.

No

to those

sane

who have

man

questions
the net results to humanity of improved modern methods as far
as they have affected physical and mental well-being.
No one

who knows much about manufacturing doubts that many of the

methods now being advocated in many quarters under the name
of

"

"

Efficiency Engineering

human

will still further multiply the fruits

The

questions which I wish to raise concern

the expediency of certain methods of applying them and the social
and economical effects which are claimed for their application.
of

effort.

The mental and

of

physical welfare of the individual

members

any form of organized society are dependent largely upon

three factors, namely:

734

SCIENTIFIC
(i)
(2)

The
The

MANAGEMENT

natural resources at the

tools

and methods

command

of production

735

of the

community.
which are available

to develop these resources.

(3)

labor

The knowledge and

may

be

fairly

organization whereby the fruits of

and equally

distributed.

In the early and simple forms of organized society where resources were ample but tools of production primitive, the third
factor came very nearly being realized in full; but as society
became more and more complex it became increasingly difficult
for the producer to enforce his demands and secure the full return for the service which he had rendered to society.
The
introduction of machine processes and the tremendous extension
of division of labor, intensifying as they have the complexity of

our social organization, have

further intensified this difficulty.

The effect is greatest where the skill or intelligence of the worker
is least.
Experience shows that the rate of pay for industrial
still

workers has not increased in proportion to the increase in productive capacity; he would indeed be a bold man who would

contend that in our organization today with its immense burden

of high financiers, grafters, drones and incompetents, the proclasses, including employer and employee, are receiving
return for the services which they render.

ducing
full

Many civilizations have possessed immense natural resources,

and the modern nations possess tools of production such as the
world has never seen; but only in the simplest forms of organization has equitable distribution of the products of labor been
achieved; all experience goes to show that increased productive
capacity does not necessarily mean increased revenue to the producer; but on the contrary may,
terest, mean an actual decrease.

if

he

We

is

not alive to his

own inwho

read of few nations

have starved to death for lack of tools or methods of production,

but the highway of history is paved with the bones of civilizations

which came to

grief on the rocks of unfair distribution.

Many
modern nations still carry dreadful scars received
bloody revolutions which had their genesis in this, the greatest
problems of organized society, while many more tremble on

of the existing
in

of

the brink of similar disasters.

SCIENTIFIC

736

Principles of the

MANAGEMENT

New

Industrial Efficiency

With these things in mind let us examine the principles of the

new industrial efficiency as laid down by its leading exponents.^

No

one can reasonably doubt that the extension of these

methods

in greater detail will, in general, give increased produc-

tion, because they have been appUed already on a very large scale
with great success. And there can be little doubt but what these
methods will come into common use and their field be extended

more and more as they are more fully understood. Labor-saving

machinery and processes always, eventually, come into common
use no matter what the opposition to their adoption may be.
In the long run it would seem that humanity as a whole benefits
from

their adoption.

It

may

be noted in passing that the

effect

of new labor-saving processes and methods is very similar to that

of labor-saving machines, namely, to put actual production in
the hands of inferior classes of men under the direction of a few
more highly skilled or more intelligent leaders. This tends to
further extend the principle of division of labor and to disintegrate what are commonly known as trades into fragmentary
portions where each worker performs only a small part of what
was formerly the work of one man.
Now in the methods under discussion wh^re refined measurements are made of the physical and mental abiUties of men it
puts into the hands of the employer a more powerful selective

agency than he has hitherto possessed.

be used solely for the purpose of sorting
the indolent and those

who

If this selective

men

power

so as to eliminate

are clearly unfit for the

work

in

hand

there can be no objection raised to them from the humane standIf, however, they are used to eliminate all but the very
point.

best workers their effect will be disastrous both from the

humane

and from the economic standpoint

until an entire readjustment

There are at present more men than
scheme which tends to still further concentrate

of the field has taken place.

positions.

Any

labor in the hands of a few can hardly be desirable; and in the

hands of grasping employers such a result is possible. What is
*

Mr. Kimball here

recites briefly the four

Taylor

"
principles."

MANAGEMENT

SCIENTIFIC
wanted

is

a scheme whereby every

man

737

can be worked up to his

full efficiency whether his output be as great as his neighbor's or

not.
Economically there can be nothing gained by concentrating

labor in the hands of a few picked men if they must support

indirectly a large number of idle or poorly paid men.
Efficiency
is, after all, only a relative term and it is far better that all men

be producing up to their capacity than that all the production

be by the relatively more efficient.
We are as much in need of

men who can organize industries and lead the army of producers
we are in need of more refined methods of production.

as

Some Claims of the Advocates of the

New Methods

These new methods then, in so far as we have discussed them,

means of increasing man's productive power and faU, there-

are

fore,

under the second item of the

classification

made

in the first

To what

extent will they affect the third

distribution
of the products of labor ?
item, namely, equitable
The advocates of these new methods make such claims as the

part of this paper.

following
"

The

great increase in wages which accompanies this type of

management will largely eUminate the wage question as a source
of dispute."

"

The one

cure, the only

one for the condition that confronts

us, is to increase the efficiency of the

"

The low

producer."

cost of production which accompanies a doubling

of the output will enable the

companies who adopt

this

manage-

ment, particularly those who adopt it first, to comp>ete far better

than they were able before, and this will so enlarge their markets
that their men will have almost constant work even in
and that they will earn large profits at all times.
"
This means increase in prosperity and diminution

dull times,

in poverty
not only for their men, but for the whole community around
them," and many other statements, of the same tenor.

That

is

to say, increased productive

power necessarily means

increased profits and their resulting comforts to the actual producer; for a diligent search through the literature of efficiency

engineering

fails

to disclose

any new

principle regarding the

MANAGEMENT

SCIENTIFIC

738

distribution of the fruits of labor.

True, great stress is laid on
"
"
the
deal
and
the
cooperation of the employer and
square

employee; but these are not peculiar to any system of management.

It is also, of course, true that decreased cost of production

always gives the employer an opportunity to pay better wages

until his competitors obtain the same methods, when the natural
law of competition again comes into effect, and the employer is
again confronted with the choice of smaller profits, lower wages
or

still

more

refined

methods and improved

tools.

Parallel between Labor-saving Machinery and

Labor-saving Management

The
ever

greatest gain in productive ability which the world has

witnessed came with the introduction of labor-saving

All the possibihties for the physical and mental

machinery.
betterment of humanity offered by the most tremendous gain in
productive power mankind has ever witnessed were opened up at

The immediate

that time.

efifect

of these

new methods was

to

reduce the workers concerned to a state of pauperism and wretchedness which was reheved only by legislation and other reactive

measures and not by anything inherent in the new methods.^

These methods have been improved and added to steadily for
over a hundred years and what is the net result ?
Today the
Instead
skilled mechanic who can save a competence is a rarity.
of the individual independence
to acquire,

pensions;
facilities

we

which every

man

should be able

are talking of governmental and other forms of

much vaunted increased educational

in spite of our

only 25 per cent of the entire population of

this,

the

most favored of countries, get the minimum amount of education

which is considered necessary to make them intelligent citizens.
True, the

workman

of all kinds has benefited very greatly

improved methods, and

*

it is

It is hardly accurate to say that this

was due

solely to the introduction of

by the

also true that he is better clothed,

"

was the " immediate

these

new methods."

effect

The

"

to were spread over a period of forty to fifty years and were complicated
Ed.
other factors, notably the Napwleonic wars.

or that

it

factors referred

by many

SCIENTIFIC

MANAGEMENT

739

and particularly better educated than formerly; but

the fact remains that his progress has not been proportionate to
his increased productive capacity.
fed, housed,

am

wilUng to concede, therefore, that these so called

methods

that in

will increase

new

all

production;
probability they
time, be generally used and that the general effect should
benefit humanity; but I see no reason for thinking that they
will, in

inherently possess any power to change the problem of distribuIt may be that these methods will even make it necessary
tion.
for the

worker to redouble his

efforts.

Even

the most ardent

new methods

are compelled to acknowledge at

times the truth of these statements, as for instance, the following:
"
Inasmuch as mechanics as a class get little benefit from the
development of a better method or a labor-saving process, they

advocates of the

a rule, Uttle interested in such improvements."

"
If the fruits of scientific management are directed
again
into the proper channels the workingman will get, not only a
are, as

And

share but a very large share of the additional profit arising

In order that the workingman may
from improved industry.
fair

get this large share of the benefits through higher wages, shorter
hours, and better working conditions, the labor unions must

participate in fixing those wages, hours and conditions, and in

determining the application to the various businesses of the
principles of scientific

they

now

management."

And

this is the crux of

the fruits of production under methods as

exist could be more fairly distributed and the wastes

the whole matter.

If

and oppressive financiering eliminated so that the

producing classes, employer and employee alike, would receive
what is justly theirs, much of the problem would be solved; if
Mr. Taylor or Mr. Gantt, or Mr. Brandeis can only tell us how
this can be done, they will do more for humanity, as it exists in
due to

foolish

organized society, than any one, economist or engineer, who has

ever walked this planet, and infinitely more than can be accom-

by the most refined methods of production which they

can develop. The great problem which confronts us is not and
has not for many years been that of production, but distribution.
We can now produce more manufactured goods than we can use.

plished

SCIENTIFIC

740
and

far

more than

new productive
problem

of

why

is

MANAGEMENT

needed to make us

all

comfortable.

All the

processes possible will throw little light on the

we find in many places, at one time, storehouses

with raw material, idle factories equipped with the finest

tools the world has ever seen and people walking the street with-

filled

out food or clothing, yet willing to work.

The problem is too complex to be solved by the simple expeThere still remain the questions
dient of increased production.
of competition, unfair taxation, immigration and a dozen other
factors that are not as yet within the control of the employer, be
he ever so fair minded, or of the employee, be he ever so strongly

I am not so sure but what a small readjustment of

organized.
some of these would do as much for the workers, both employer

and employee, as a large increase of productive power. What

we need most is scientific distribution. Fortunate, indeed, will
we be if some of the reactive influences now at work on our social
and industrial organization will point the way to this much
needed readjustment.

THE TAYLOR SYSTEM OF SHOP MANAGEMENT

AT THE WATERTOWN ARSENAL
Appendix

to Report of the Chief of Osdnance, 1913

Rqwinted by permission

of the Chief of

Ordnance

Watertown Arsenal, June

21, 1913.

Hon. LiNDLEY M. Garrison,

Secretary of War, Washington, D. C.

Dear

Sir;

We,

the representatives of the diflferent trade

unions employed at this Arsenal in the various departments do

hereby request and petition you to abolish the Stop Watch

System because of the unfair and unreasonable methods which are

described in the following:
This is the machine shop:

third class machinist rated at

working on a job; the stop watch

premium makes his appearance and makes a time study of operaHe goes back to his desk and juggles figures for a
tions, etc.
$2.56 per day, for instance,

while and he
job.

is given a long time and a short time to finish the

Sometimes he makes the time reasonable and other times,

This third class

he

is

of

80 cents to $1.00 per day.

a long

way

off.

But

it

man may make

must be borne

in

a premium

mind that

one kind of a machine, whereas a

first class man rated at $3.52 per day (this Arsenal is depending
on first class work) can operate any machine and this time study
he

is

only capable of running

You can therefore see the

or Stop Watch is not put on the job.
unfairness of this premium system towards a first and third class
machinist.

man

getting $3.52 per day and running a

requires so much time to finish a large
piece, he generally has those pieces on premium from i to 6 to
18 months, making $26 to $32 per month.
Whereas a man going

Another case

is

of a

Where

large machine.

it

around the shop at the same pay working at different jobs does
not get a chance at this class of work or machine, which is absolutely unfair.
*

Petition of certain of the

741

workmen.

Ed.

SCIENTIFIC

742
It also

may be

a dozen pieces.

seen that a

He makes

MANAGEMENT

man is
a

full

working on a lathe, roughing

premium which is equivalent

day above his day's pay. This job very often is

taken away and given to another man to finish, which requires
closer and accurate work and is subject to inspection. He makes
The difference
approximately 15 to 60 cents on the same job.
between the time study on the roughing and the finishing of the
to $i.oo per

job can be seen is very unreliable.

Several cases in the Blacksmith Shop that does not work satisfactory according to the Stop

Watch Premium:

blacksmith had been working on several forgings and soon

after he had started, he was going to be the first victim for the

time piece; forging under normal conditions had been completed

and the blacksmith's estimated time for this piece of work was
The Stop Watch man made a time
8 hours and 20 minutes.
went
away and juggled figures for a while,
study of operations;
came back and set the total time for the completion of this piece
of work, six hours, which was impossible for him to do.
Another blacksmith had a much more trying period with the
Stop Watch Premivmi System. He was about to start on several
forgings and the Stop Watch man appeared to make a time study
The blacksmith, evidently, was not
of the job, to be completed.
accustomed to this way of doing business. He put a piece of
steel into the fire until it was hot and then started to forge the
The Stop Watch man told him to put
piece with his helper.
another piece in the fire while working and he positively refused.
The foreman and ofiicer in charge of the shop was notified and
came to investigate the matter.
The Stop Watch man told the blacksmith there was no need of
The blacksmith then told him he did not
his being there then.
know why he was there, but that he the blacksmith did know the
reason of the Stop Watch man being present there. Finally, the
"
No Stop Watch for me, I have
blacksmith went out, saying,

always done a day's work for the Government, and always will as
long as I work in this Arsenal."
The System in the foundry has not been carried out as promised.
In addition to the speeding up of men, there has been a con-

SCIENTIFIC

MANAGEMENT

743

It is not a question
tinual cutting in the time of similar articles.
of
what a job is worth, but is
in the minds of those in charge
based upon the quickest time that one can make and in nearly

every case where fault has been found by the workmen in regard
to time, he was told that it was the time set and not satisfaction
given whatsoever in this department that it is impossible to keep
or to get a sufficient number of laborers owing to the abnormal
This department has
pace which they are expected to go.

unanimously petitioned this continuance of a System.

Take a painter's case, for instance; two men taken from the
yard laboring gang were placed upon a job painting shot and shell
For doing the work
together with all templets and instructions.
The
at
Watch
are
rated
Premium was
$1.84 per day.
Stop
they
received
from
60 to 70 cents, added on
advised, therefore, they
to their regular day's pay on account of the premium, and one of
the regular painters was suspended for lack of work, whereas if
this man was given the work through the regular channels, there
would be no need of suspension. Whereas a great deal more work

would be accomplished by so doing and the other painters would

not have to stop their regular work to mix paint for the laboring

men from

the yard.
The conditions of the Stop Watch Premium in the Carpenter
For
Shop are equal to those in the Machine Department.

man

started to work recently repairing old Shot and

The work did not require a very skilful man and
This man got 60 cents over
the Stop Watch was introduced.
It must be taken into consideration that there are
his day's pay.

instance, a

Shell Boxes.

first

class

men

in

this

Wood-Working Department such

as

cabinet makers, pattern makers and wood turners, whereas it

may be seen that the third class rated man gets more money than
the

first class

mechanic by

this unfair

method.

Referring to the laborer in the Yard, for instance, a time study

made between shops and buildings,

man shall make the same time from day

has been

it is

the

to

of load or the animal, with

no allowance

expected that

day

irrespective

for the conditions of the

weather whatsoever.
Again, if a carload of pig-iron arrives at
this Arsenal with approximately 40 ton on board, it is to be

SCIENTIFIC

744

MANAGEMENT

unloaded by Stop Watch Premium. For instance, a car with side

boards measuring 4 feet high is expected to be unloaded just as
quickly as a car with 18 Side Boards, which is utterly impossible.
a recent occasion, a man with a horse and team entered the
foundry to clean up waste material such as slag iron and sand
which were unfit for use. They usually use an ordinary shovel

On

with a capacity of 21 lbs., which is described in the so-called

He was told by the Stop Watch man to use a
Taylor Book.
has a capacity of 40 lbs., and the foreman of
shovel
which
scoop
arrived_^on the job and told him it was not fit for any
The team was loaded,
white man to use on that class of work.

the

Yard

however, with the usual shovel and went on

its way to the dumpMan

the
The
Watch
told
foreman in a very
Stop
ing place.
sarcastic manner that he should not talk that way before the men

to him.

the

man

be seen that his sole object was to push

to the dead limit simply because he was a laborer, irre-

Whereas

it

may

spective of the size of the shovel or the nature of the work.

great many are caused by this
Referring to the accidents:
from
to
It also may be seen that the
continual driving
day.
day

majority of

men

Whereas it is absolutely
work and do justice to himself or the
required of him on account of the Stop Watch

impossible for a

work which

is

are failing in health.

man

Premium System.

to

More than

75 per cent of accidents has taken

place this year than the previous year of which a very careful
It
record has been made from time to time in all departments.

may

also

be seen that the bad work and rejections are greater

by 100 per cent. Below is a list of the names of

than ever before

the representative mechanics of their respective departments.

Machine Shop

A-

Blacksmith Shop

Matthew

Foundry

Joseph R. Cooney

Pattern

Carpenter
Paint

James B. Cunningham
Eugene P. Gingras
H. A. Gildersleeve

Yard Laboring

Peter Kidbride

J-

Coyle
T. Glynn

Respectfully yours,

Maurice W. Bowen
Chairman, Represenative CommiUee
23

Charles Street, Auburndale, Mass.

SCIENTIFIC

MANAGEMENT

Watertown Arsenal, June

745
17, 1913.

Hon. LiNDLEY M. Garrison,

Secretary of War, Washington, D. C.

Dear Sm;

We, the undersigned, employees of the Govern-

ment, representing 349 of a total of 373 hands employed in the

various departments as indicated hereon, respectfully petition
that the Taylor System, now in operation at this Arsenal, be

immediately discontinued

We

for the reasons as hereinafter set forth.

Watch, as it is used a means of

a point beyond their normal capacity.
It is

object to the use of the Stop

speeding

men up

to

humiliating and savors too much of the slave

driver.

A comparison of the record of serious accidents occurring in the

works since the introduction of the Stop Watch Premium System
will convince the most skeptical that it is dangerous to limb and

and we claim that a large percentage of these accidents are

the direct result of the driving system in vogue at this Plant.
We believe that this System, instead of producing what was

Ufe,

claimed

would produce,

high

wages to employees, with a

low cost of production has worked exactly opposite inasmuch as
it

the investigation into the wages paid (outside of premium) will

show that there has been no material increase in wages, while
the cost of production has been increased to such an extent that
large deficits are being reported on nearly every job of any consequence that is done at this Arsenal.

The number

of non-productive

employees in proportion to the

productive employees who are necessary to carry out the details
of the System, has been largely resp>onsible in the great increase
in overhead expense,

which

Government being unable

in

many

cases, has resulted in the

compete with outside concerns and

has resulted in contracts being placed with outside parties to do
to

work which the Arsenal

is equipped to do and which, under

normal conditions, could be done at a cost considerably under
that charged by the Contractor securing the work. For instance,

has become the practice to let large contracts for manufacturing

patterns, which the Arsenal is equipped to manufacture and
could manufacture at a figure considerably below that charged
it

by

outside concerns; the quality of

work being considered were

SCIENTIFIC

746
it

MANAGEMENT

not burdened by an excessive overhead charge which must be

pay an abnormal non-productive force of employees.

above case to show that there is ground for our
that the continuance of this System would finally eventuate

carried to

We
belief

cite the

in closing this Arsenal as a manufacturing Plant.

large corps of inspectors are kept busy examining and rejecting material, and the number of pieces rejected since the Premium System was inaugurated has increased by a large percentage.

The number

of parts rejected since the

System was

installed will

run well into the thousands.

The

System here has been to create a feeling of

between the employees and the management; it has
destroyed every vestige of cooperation between the workmen and
effect of this

distrust

the foremen collectively, and has produced a condition of unhappiness throughout the whole works.

For the reasons as stated above as well as many others which

not trouble with at this time, we respectfully pray that
as
head
of the War Department, take such immediate steps
you,
as will effectually remove this System from Water town Arsenal

we

will

and

restore the

workmen

to a condition similar to that enjoyed

other artisans and laborers in the public service as well as in

by
most private manufacturing

We

plants.

also respectfully petition that the records as obtained

by

watch observation be removed from this Arsenal

or destroyed altogether as they do not represent the normal time
in which given work should be accomplished, but rather they are
"
"
the product of the
System which has resulted in
speed up
accidents, inferior work and numerous abuses such as no American

means

of stop

Citizen should be called

upon

to endure.

be understood that the signatures to this

petition were not obtained by coercion or unfair means and each
individual signing this petition, does so of his own free will and
In conclusion

let it

accord.

Respectfully submitted,

Maurice W. Bowen
Chairman Representative Committee
23

Chaeles

St.,

AtrBURNDALE, Mass.

SCIENTIFIC

MANAGEMENT

747

Signed by 51 molders and helpers; 25 pattern makers, carpenters, and painters; 17 blacksmiths and helpers; 53 yard laboring

men;

88 machinists and helpers, assembling department;

88

machinists and helpers.

War

Memorandum

Department,

Ofpice of the Chief of Ordnance,

Washington, September 6, 1913.
for the Secretary of War.

Subject: Petitions of Watertown Arsenal employees against

certain features of the Taylor system of shop management.

These petitions were referred to this office accompanied by

certain questions in regard to the Taylor system of scientific shop
management. These questions will be answered in their order.
1.

Question

i.

"

Exact

That is,

ter of cost.

all

matwhich
cost
be
should
expenses upon
prices
figures of everything going into the

figured."

Depending upon the use which

is

to be

made of the

figures there

are three general classes of costs of articles procured for the public
These can be called
service by the Ordnance Department.

(a)
(6)
(c)

The appropriation cost,

The arsenal cost, and
The War Department cost.
The appropriation cost includes

expenditures

made out

of the appropriations for procuring the article, either

by manu-

2.

facture or purchase, such as those

all

made

for labor, material,

power, heat, light, clerical work, draftleaves

and holidays, disabilities, etc.
current
ing,
repairs,
cost
is
the
The
arsenal
appropriation cost with what is
3.
"
"
known as the arsenal burden added. The arsenal burden is
civilian superintendence,

composed

of items

which increase the cost

of the article at the

procured, but are not paid for from the

congressional appropriation which is made directly for procuring
the article, such as interest on the value of the plant, depreciation,

establishment where

allowance for
4.

it is

fire losses,

pay

The War Department

tion of the

"

of officers

cost

War Department

is

and

enlisted

men,

etc.

the arsenal cost with the addi-

burden."

The War Department

SCIENTIFIC

748

MANAGEMENT

burden comprises the proportion of the expense of maintaining

the War Department proper which is rightfully chargeable to the
It is
manufacturing operations of the Ordnance Department.
of the proper proportion of items, such as salaries in
the office of the Secretary of War and in the various bureaus of the
War Department, contingent expenses of the War Department,

composed

rent of buildings for the

of the Chief of

pay

of retired

ment,

War

Department, expenses of the

Office

Ordnance chargeable to manufacturing operations,

officers and enUsted men of the Ordnance Depart-

etc,

The

appropriation cost is the only one with which these

petitions are concerned, since the statements made therein relate
to comparative costs of manufacture before and since the in5.

troduction at the

Watertown Arsenal

features of the

of

the time study and

The arsenal cost is

Taylor system.
generally used for the purpose of comparing Government manufacture as carried on by the Ordnance Department with private

premium

The War Department

cost is of importance when

reimbursement of that department
serviceable property disposed of by it in accordance with the

manufacture.

there is a question of securing

for

methods authorized by law.

"

The system as now operated."

The
6.
Taylor system of shop management may be roughly
The first part relates to the
divided into two general parts.
Question

2.

systemization of processes of manufacture, so that these processes shall

be carried on in a perfectly orderly manner, with

and provision than has ever before been given

better forethought

them, and with more detailed arrangements concerning their

To the natural inquiry as to what there
relations to each other.
is

nerw in this, since everybody has always been striving for sysin manufacturing operations, the answer must be

tem and order

made

amount of attention which is given under Mr.

Taylor's method to system, as evidenced by the number of the
that is, by the
personnel engaged and the expense involved
amount of administrative energy which is devoted to it
is so
that the

different from that which has ever anywhere before his time been
devoted to systemization as to be absolutely revolutionary.

SCIENTIFIC

MANAGEMENT

749

part relates to the quantity of output to be

obtained from the workman, and the stimulus required to induce
7.

him

The second

to cheerfully

and earnestly and

intelligently strive to give

This part rests upon the theory that the best and
most expeditious way of doing a piece of work is too difficult
of ascertainment for the workman who has to do it to have any
the output.

it; and that it must be reached

methods
prescribed by a highly
through painstaking study, by
skilled and expensive specialist, utilizing measurements of the
time required by the various elements of a job, and a great deal
of knowledge such as the workman does not have and cannot
be expected to have. There is the further theory that the current

reasonable chance of arriving at

rate of wages, as

it

exists in

any manufacturing community,

is

not

that corresp)onding to the best directed and most earnest efforts

of the employees, but is that corresponding to the class of per-

formance in connection with which the rate has grown up, which
is very far from being the best reasonably and agreeably attainable.
By expensively finding out the best method of doing a
given piece of work, and the time in which it can reasonably
be done by following this method, and then by making it very
well worth the employee's while to approach, within a given
interval, this time, or to improve up)on it, means are found to
improve the individual output, and to improve the compensation

which

is

paid for

it,

in a

manner

profitable

and

satisfactory to

both employer and employee.

8. For a comprehensive understanding of the system and its
inauguration at the Watertown Arsenal it will be necessary to
read Mr. Taylor's careful works upon Scientific Management^
upon Shop Management, and upon The Art of CtUting Metal.

highly condensed exposure of the system and of the three

years of its operation at the Watertown Arsenal is, however,

my annual reports for the fiscal years 191 1 and 191 2,

from which the pages relating to this subject have been extracted
and are attached hereto.
contained in

The second

part of the system, relating to time study of a

the
and
premium offered for approaching the time thus
job
given
arrived at, is the part which is objected to in the petitions, being
9.

SCIENTIFIC

7SO

MANAGEMENT

them the " stop watch system," because a timepiece is used in studying the various component elements of a job,
so as to arrive at a conclusion as to the manner in which the total
time may be shortened. The process can be described as follows
called in one of

A workman being

employed upon a job for which it is intended

to set a rate, the time study man takes his station near him and,
openly and with the full knowledge upon the part of all concerned
of what he is about, proceeds to study the job by first dividing it

into its different

component movements and

periods.

He

then

times carefully each one of the movements and periods, usually

more than once. From the data thus obtained he works out

what he considers the best sequence

of movements and periods,

certain
elements
simultaneous which before
possible,
making,
were successive, and arrives at a complete program for performing
if

the job and at an estimate of the time in which, by attentively

This time
following the program, the job should be completed.
"
is called the
task time."
It must be understood that the

management has
in

theretofore

had no

definite idea as to the time

which the job should be done, or that it was being done unnecesKnowledge has been lacking to permit an idea as

sarily slowly.

to this point to be formed.

Also, any unnecessary slowness is

have been caused as much by unscientific methods as by
lack of diligence on the part of the workman.
The whole object
is to secure an intelligent idea of the best way to do the work and
likely to

of the right time for

been without

it.

Upon

these two points

all

hands have

reliable information.

lo. After the task time has been arrived at; and it must be
remembered that no necessity for unpleasant exertion is admitted
in fixing the time; some stimulus in the form of increased pay

given to the

workman

for meeting this time, or for approaching

of increase is not important, provided
scheme
particular
The
always that it gives an adequate reward for good effort.
scheme applied at the Watertown Arsenal is as follows: The
workman is informed that his regular pay is not to be affected.

is

it.

The

He

continues to receive that in any event. The task time is then

increased by two-thirds, and he is told that for every minute

which he saves within

this increased

time he will be paid, in addi-

SCIENTIFIC

MANAGEMENT

75 1

tion to his regular pay, for half a minute, at his regular rate.
this it follows that if he completes the job in exactly the

From

task time the increase in his pay will amount to 33^ per cent. No
limit is placed upon the time in which he can do the work or the
extra

that the task time

is

and it frequently happens

bettered, and more than 335 per cent extra

amount which he can thus

is

earn,

earned.

The commanding
a report each month of

the

of that estabUshment.

II.

May,

1 913, is

officer of

the

Watertown Arsenal makes

premiums earned by the employees

copy of

inclosed herewith.

his report for the

It

month

of

shows that the premiums

earned in that month ranged from practically nothing to $31.02,

which was made by a

man whose day

rate

was

$3.52, whose total

therefore increased

day rate pay was $95.04, and whose premium

It is the object of the management to
his pay by 35.38 per cent.
have as many men as possible working under the premium system,
and effort is made to enable each workman to increase his premiums to the fullest extent. There has been introduced a system
of rewarding the foremen by premiums which increase with the
proportion of their subordinates who are working upon
jobs and with the amount of premiums which they earn.

premium
So that

the foremen are stimulated to assign as many men as p>ossible to

jobs on which they can increase their pay in this way, and to help
each one of them to the greatest possible increase. On account of
the limited nimiber of time study men, and on account of the
it is not possible to give all of the men prereport for May shows that, in the foundry
during that month, 13 molders out of 13 had such jobs; in the
machine shop, 130 machinists out of 166, and 26 machinists'

nature of the work,

mium

jobs.

The

helpers out of 70; among the laborers, 22 out of 45 had such jobs;
in the carpenter shop, 5 carpenters out of 14 worked on pre-

and

mium jobs. The percentage in extra compensation earned by

men on premium jobs, while so working, on an average was, in

the

foundry, 25.24 per cent; in the machine shop, 24.69 per cent
and by machinists' helpers, 28.97 P^r cent;

by
by

machinists,

laborers, 24.06 per cent;

smiths, 39.39 per cent;

the

by teamsters, 26.35 P^^ cent; by blackby blacksmiths' helpers, 39.39 per cent;

SCIENTIFIC

752
and by

MANAGEMENT

In the foundry 66.95 P^r cent

carpenters, 61.6 per cent.
working time of the whole number of employees of

of the entire

the class

who worked on premium

class of jobs.

per cent;

jobs at

all

For the machine shop these

was spent on that

figures

were 45.65

for the machinists' helpers, 12.83 P^r cent;

for the

for the teamsters, 26.35 per cent; for

the blacksmiths and blacksmiths' helpers, 8.81 per cent; and for
It will be seen that there is still
the carpenters, 5.38 per cent.

laborers, 12.71 per cent;

much room

for including

premiums, and constant

The average premium

more employees
efforts are

in the

being

month

of

in the

made

May,

number earning
in this direction.

of all the

men

earn-

$8.96, which was earned by 210 men out of

This
about 600.
average would have been greater if these men
had worked on premium jobs all the time, which was not possible.
12. The extracts from my annual reports show that great

ing premiums, was

of manufacture, as well as benefit to the workmen,

from
the employment of both general parts of the Taylor
arises
It has been estimated, from analysis of a large
system.
nimiber of jobs, that the increase of output, due to time study
and premiiun payment, in a given time, is about 200 per cent.

economy

The analysis was of 39 different jobs, of which records were on

hand of the time required to do them, both on the day rate and
on the premium system. In four of the cases the jobs, under the
two systems, had been done by the same men, and the records
showed that the time required by these men, under day work,
ranged from one and a half to three and a half times the time in
which they did the same jobs imder the premium system, with an
average of 2.72 times.

Perhaps something can be said on both sides of the quesThere are in all walks of
tion of stimulation by high rewards.
life men who wear themselves out in their effort at great accom13.

plishment, and there are

more such

in a

new

country, where the

rewards are great, than in old countries, where the more settled
conditions impose narrower limitations upon what may be

accompUshed by strenuous and intelligent effort. It is not easy

to set a point at which stimulation by high reward should cease.

The Taylor system does not attempt

to settle the question.

But

MANAGEMENT

SCIENTIFIC

753

with the limitation of hours of labor in the Government service,

it does not seem to be likely that workmen will be stimulated to
efforts injurious to their health

by rewards so great that they can-

not refrain from overexerting themselves in order to secure them.

14. The question remains to be answered how the process at
the Watertown Arsenal differs in kind from the class known as
"
"
"
"
slave driving
sweatshop," or
processes,
speeding up," or
I take it that the essential difference lies in the charso called.
acter of the stimulation which

is

applied to increase the output.

In the reprehensible methods the output of a very rapid workman

is taken as the standard, and the rate set is such that this output
in order to make ordinary wages.
The task and
the compensation are so fixed that, unless the employee puts
himself under a great strain all the time he is either discharged or

must be reached

In other words, the highest possible

demanded for what is, at best, no more than the current

fails to

earn a living wage.

output

is

The Taylor system, on

the contrary, demands the

at
the
current
rate
of wages, and, as pracordinary output only
tised at the Watertown Arsenal, neither effects nor threatens any
rate of wages.

reduction of the wages in vogue before the introduction of the

The increased output is accompanied by an increase,
system.

and a very substantial increase, in the pay. And no rate is set

which requires heart-breaking exertion or exertion of a character
which is not agreeable, in order to increase the wages theretofore
The management spends a great deal of money and a
received.
of
deal
effort in finding out the best way to do a piece of
great
work.
It then offers the workmen an inducement to meet this
by giving them the benefit of the time and money spent, in the

way

of information as to the best

enable them to

way

to proceed, in order to

No discharges have

make

taken
higher earnings.
at
the
Watertown
Arsenal
because
of
failure
to
place
accompUsh
work in the time set; and no reduction of pay of any class of the

employees had been put into

That is,

effect since the introduction of the

Taylor system.
premiums earned have been over and
above the wages which were being received before the system was
put into effect. All of the men are informed of the system in
practice at the arsenal,

all

and

all

give their consent to

it

by being

MANAGEMENT

SCIENTIFIC

754

The time study and premium

taken on.

15.

features

have now been

two years.

in use for over

great deal has been

made

of the following statement in

one of Mr. Taylor's books:

When an establishment has reached an advanced stage of organization in

many cases a fifth element should be added, namely, the task should be made
so difficult that

This

following
It

"

first class

men.

"

speeding up
process, pure and
statement has received some explanation by the

The

simple.

can only be accomplished by

claimed to be the

is

must be

first class

it

distinctly understood that in referring to the possibilities of

man

the writer does not

mean what he can do when on a

spurt

when he is overexerting himself, but what a good man can keep up for a
long term of years, without injury to his health, and become happier and
thrive vmder.
or

The character of the exertion is well covered by the explanation,

but perhaps some
those

needed from apprehension in regard to

not be the fastest workmen of their class.

relief is

men who may

Of course common sense prevents the understanding that all men

must be thrown out of employment except the very best. The
work must be done, and it must be done by such men as are in
existence.

It

is

not out of accord with ordinary practice, either

under the Taylor system or otherwise, to have one's work done

by the best workman that one can get. Harshness of stimulation
avoided by the principle that the task must be such as he who
"
become happier and thrive under." But Mr.
has it to do can
himself
has
furnished an explanation of what he means by
Taylor
is

"

"

man. On pages 1454 et seq., volume 2, of the

taken
by a committee of the House of Representatives
testimony
to investigate the use of the Taylor and other systems at Grovernment establishments, he says:
a

first class

have found that an illustration often furnishes the most convincing form
"
I want therefore to define what I mean by the words
first
class
through an illustration. To do so I am going again to use horses as
an illustration, because every one of us knows a good deal about the capacity
of horses, while there are very few people who have made a sufficient study of
men to have the same kind of knowledge about men that we all have about
horses.
Now, if you have a stable, say, in the city of Washington, containing
I

of definition.
"

SCIENTIFIC

MANAGEMENT

755

300 or 400 horses you will have in that stable a certain number of horses
which are intended especially for hauling coal wagons; you will have a cerof
tain number of trotting horses; and a certain number of saddle horses
pleasure horses, and of ponies in that stable.
Now, what I mean by a first class horse to haul a coal wagon is something
We will all agree that a good big dray horse is a
very simple and plain.

"

"

horse to haul a coal

wagon (a horse, for instance, of the type

however, you hve in a small town and have a small
many cases you may not have enough dray horses in your
stable to haul your coal wagons, and you will have to use grocer wagon horses
and grocery wagons to haul coal in; and yet we all know that a grocery
"
"
wagon horse is not a first class" horse for hauling coal, and we all know
"
first class
that a grocery wagon is not a
wagon to carry coal in; but
times come when we have to use a second class horse and wagon, although
we know that there is something better. It may be necessary even at times
to haul coal with a trotting horse, and you may have to put your coal in a
buggy under certain circimistances. But we all know that a trotting horse
"
"
horse for hauling coal.
first class
In the same
or a grocery horse is not a
"
"
way we know that a great big dray horse is not a first "class horse for
"
nor
a
is
horse
first
a
class
for
grocery wagon
grocery wagon,
hauling
hauling a buggy, and so, right down the line.
first class

of a Percheron).
stable of horses, in

Now, what

mean by

"

"

man

"

first

class

"

men

is

set before

you by what

mean

mean

that there are big pKjwerful men suited to

as the dray horses are suited to the coal wagon, and I would
who would be " first class " for this heavy work to do light

by first class
heavy work, just
not use a

If,

horses.

work for which he would be second class, and which could be just as well
"
"
done by a boy who is first class for this work, and vice versa.
What I want to make clear is that each type of man is " first class " at
some kind of work, and if you will hunt far enough you will find some kind
But if you insist, as some people in
of work that is especially suited to him.
the community are insisting (to use the illustration of horses again), that a
shall be made so light that a pony can haul it,
task
say, a load of coal
"
second class "
then you are doing a fool thing, for you are substituting a
"
animal (or man) to do work which manifestly should be done by a
first
"
**
animal (or man). And that is what I mean by the term first class
class
man."

Now,

there
"

the

Among

is

another kind of

"

second class

"

horse.

We all know him.

"

big dray horses that are hauUng coal wagons you

that will balk, a few of them that can haul, but won't

first class

a few of them
will find a few of these dray horses that are so absolutely lazy
And in the same way among every class
that they won't haul coal wagons.
I do not mean men who are
of workmen we have some balky workmen
unable to do the work, but men who, physically well able to work, are simply
lazy and who through no amount of teaching and instructing and through
"
no amount of kindly treatment, can be brought into the first class." That
"
second class." They have the physical possibihty
is the man whom I call
"
first class," but they obstinately refuse to be so.
of being
will find

haul.

You

'

756

SCIENTIFIC

MANAGEMENT

Now, Mr. Chairman, I am ready to answer your question, having clearly

mind that I have these two types of " second class " men in view; the
one which is physically able to do the work, but who refuses to do it, and the
other who is not physically or mentally fitted to do that particular kind of
work, or who has not the mental caliber for this particular job. These are
in

the two types of

"

second class

"

man.

The Chairman. Then how does scientific management propose to take

"
"
care of the men who are not
first class
men in any particular line of
work ?
Mr. Taylor.

I give

The Chairman.

it

up.

management has no place for such a man ?

Mr. Taylor.
Scientific management has no place for a bird that can
sing and won't sing.
The Chairman. I am not speaking about birds at all.
Mr. Taylor. No man who can work and won't work has any place under
scientific

Scientific

management.

It is not a question of a man who can work and won't

"
a question of a man who is not first class " in any particular line;
according to your definition.
Mr. Taylor. I do not know of any such line or work. For each man
some Une can be found in which he is " first class." There is work for each

The Chairman.

work;

it is

t3T>e of man, just, for instance, as there is work for the dray horse and work
for the trotting horse, and each of these types is first class for his particular
kind of work. There is no one kind of work, however, that suits all types of

men.
If, under the Taylor system, a man is not earning good premiums, there is an inducement for everybody connected with the
management to try to find out the reason. And, if the reason is

discovered to be that he

working at a class of employment for

which he is not well suited, it becomes everybody's interest to
find something for him for which he is well suited and at which he
is

can earn good premiums.

"

Question

3.

The

present in operation

discontinuing the system at

and adopting some other system, and what
result of

other system would be recommended

if

the present system

is

abandoned."
16.

As

before stated, the system spoken of

is

the time study

and premium feature of the Taylor system. The result of discontinuing the premium feature would bring all of the employees
back to the state of day work system of payment, under which
they were working before the introduction of premiums, and, as a
matter of course, the output would fall back to that which pre-

SCIENTIFIC

MANAGEMENT

757

That is, the wages of the workmen now earnwould

be reduced by amounts running up to 35.38
ing premiums
per cent, and averaging about 20 per cent; and the output of
these workmen would be reduced about 60 per cent; this without
viously obtained.

shortening the hours of labor or improving conditions of work.

reduction of the wages of those workmen who are

The immediate

engaged in repetition work could be avoided by substituting for

the premium system of payment a piece work system, such as has
been for

So

many

years satisfactorily used at various other arsenals.

would be little to choose

far as these jobs are concerned there

between the premium and the piece work system of payment.

work at the Watertown Arsenal, and

would soon run out. When
an attempt is made to set a rate for a new job of repetition work
there is always an embarrassing lack of information upon which
to base the proper rate.
Usually a tentative rate is set, and when

But

there

is little

repetition

the repetition jobs

this is

now

in progress

found unsatisfactory, either to the management or the

generally the case, it is changed, to the intense

dissatisfaction of either one or the other.
Cutting of rates, to

workmen, as

is

meet what has been regarded as

unjustifiable wages, has been a

with the piece work system, and
often times, in a limitation of output, holding

fruitful source of dissatisfaction

has resulted

finally,

back both production and compensation. When repetition work

of some classes has lasted a long time it sometimes has been found

and reasonable adjustment of the

but
even
under
such
conditions
the work has proceeded a
rate;
long time without the advantage, to the management and to the
workmen, which would result from an intelligent time study by a
skilled specialist, with the object of determining the best propossible to secure a satisfactory

The

repetition jobs at the Watertown Arsenal are too

short to permit the use of a try-out method of rate setting, and it

gram.

therefore probable that when the work had so changed as to

prevent the use of the information which has already been gathis

would prevent the formation

new programs and the setting of rates on new jobs, and the
work would revert ultimately to the day wage conditions.

ered, the abolition of time studies

of

SCIENTIFIC

758
Question

"
4.

MANAGEMENT

Specific facts with respect to all other allega-

tions in these papers."

17. The papers consist of

two petitions from workmen at the

Watertown Arsenal; one dated June 21, 19 13, and signed by
names claimed to be those of a representative committee, and one
dated June

17, 19 13, signed

by something over 300 employees.

The

petitions are fastened together, with the petition dated

June 21 preceding.
Taking the statements in this petition in
order, and numbering them in accordance with the red ink num-

bers which have been placed on the margin of the petition,

they
met as follows:

are

Complaint No.

i.

This

complaint

is

that a low class

ma-

given opportunity of earning from 80 cents to $1 a day

by making a good output. There is no claim made that the work
chinist

is

beyond the capacity of the low grade machinist, and it appears

work ought to be given to a higher grade machinist, whether with or without opportunity to earn a premium
"
is not clear, but from the statement
this time study or stop
watch is not put on the job," it may be inferred that the claim is
that a high grade man should do the work and that he also
is

to be held that the

should be allowed to earn the premium. On the ground that the

reply is obvious none will be made to the claim that a higher-

man

than is necessary should be put on the work; but a

needed
to the inference that highly paid machinists are
reply
not allowed to earn premiums.
A partial reply is found in complaint No. 2, where it is alleged
that one high grade machinist makes a premium while another
does not, and a conclusive reply is found in the inclosed statement
grade

is

of
it

premiums earned during the month of May, 19 13, from which

appears that premiums, and very substantial ones, were, during

that month, made by i machinist of the $3.76 per day grade, by

8 of the $3.52 grade, by ^^ of the $3.28 grade, and by 58 of the
$3.04 grade while they were earned by only ^^ of the $2.80 grade,
and 7 of the $2.56 grade. It is true, however, that some of the
;

highest-paid machinists, to whom the most difficult jobs must be

assigned, do not earn premiums on these jobs, for the reason that,

not being intended to be repeated, they are not such as time study

MANAGEMENT

SCIENTIFIC
can be made upon and a rate

made

to so distribute the

a chance at

premium

jobs,

man is earning
grade man whose

them

set.

Continued

effort is

work that all machinists may have

and when this cannot be done and a

more, through a larger output, than a

output cannot be measured, it is no

low grade
higher

for

759

is common in industrial work, of a

with
no
claim
to skill in more than a special and
worker
piece
narrow line, who, by special industry, is earning more than a man
In either case no
of much more general skill not on piece work.

more than the case which

one

is

hurt,

and some are benefited.

Complaint No.

2.

grade machinists
have the chance.
this

is

This

a complaint that one of the high

a
making
premium while another does not
It is answered above by the statement that
is

cannot always be prevented, but that every possible effort is

to distribute the premium jobs so that all may have a

made

The extent

chance at them.

to

which

this effort

has been success-

evidenced by the fact that, for the

ful in the machine shop
months of April, May, and June last, the amount of work under
is

the

premium system was 36 per cent

of all the

work done

in that

shop, including both machinists and helpers, and in the month of

May
by

the

all

premium work was

machinists.

45.65 per cent of

all

the

work done

This is a complaint that rates are so set

Complaint No. j.
that machinist doing the rough part makes a higher premium
than the more highly skilled man doing the finishing part of the

same job.

No evidence is given in support of this allegation, and

general truth

denied.

The

workman

of

rates are so set that

it ought to
without
disaany
make,
cent
more
than
his
day rating, whatever
greeable effort, 33^ per
The day rate is, of course, determined by
the day rate may be.

its

is

be possible for any

grade to

the class in which the man's skill causes him to be graded.

Very
conclusive evidence that the allegation is unfounded is contained
in the statement made above as to the relative number of men of
the different grades

who made premiums during

May.

the

month

of

This is a complaint that a blacksmith

Complaint No. 4.
estimated that it would require 8 hours and 20 minutes to do a

SCIENTIFIC

760

MANAGEMENT

certain piece of work, while the time study man placed the time
at 6 hours, which is claimed to have been impossible to meet.
this complaint just as it stands it appears that since the
task time was 6 hours, the time within which premium would
commence to be earned would be two-thirds greater, or 10 hours.

Taking

A blacksmith doing the work in 8 hours and

20 minutes would be

paid for one-half of the i hour and 40 minutes which he would

come within the premium time; that is, he would be paid at his
regular rate for 50 minutes of time, which for an ordinary blacksmith would amount to 34 cents. It is shown, therefore, that on
his

own

cents a

In

estimate, the blacksmith

day

this

would have made about 34

extra.

connection the following example under the premium

of interest: Time study was made of a job of forging

system is
40 friction bands, after the forging had progressed through several
bands. As a result of the study a rate was set requiring the pieces
to be forged in 2 hours and 27 minutes each as task time, in order
to earn a premium of 331 per cent, or about $1.09 per day.
The

blacksmith completed the remaining pieces, :^t,, in an average

time of 2 hours and 12.4 minutes each, thereby earning premium
of $1.39 per day,

more than 33 f per

cent.

For the bands which

he had forged before the time study was made he had taken 6
hours and 41 minutes each.

This seems to be a complaint that, in

Complaint No. 5.
time
of
a
study
job of forging some crosshead pawls for a
making
disappearing gun carriage, the time study man had endeavored

work proceed so that a piece would be in the forge

heated
while another piece was being forged; to which the
being
In the actual event the point was not insisted
smith objected.
to have the

upon at the time the study was made, but in fixing the task time
the ground was taken that this simultaneous work should be done,
that is, a piece should be heated while another was being forged.
On this assumption the task time was fixed at i hour and 50
minutes, corresponding to a 33 1 per cent premium.
thereupon actually did the work in an average time of
49.5 minutes each, thus earning just over the

full

The smith
i

hour and

premium.

SCIENTIFIC
Complaint No.

6.

This

is

MANAGEMENT

76 1

a general complaint of speeding up

in the foundry, it being charged that there has been a continual

When
cutting in the time allowed for molding similar articles.

the premium system of payment was first started in the foundry

no time studies of molding operations had been made, and as it
was desired to give both the workmen and the Government the
benefit of the increased production due to the stimulation of

premiums as quickly as possible, existing records of time in doing

jobs under the day work system were utilized as a basis for setting
As was expected, and announced beforehand, many of
rates.
these rates permitted the earning of abnormal premiums, and

some of them did not permit earning sufficient premiums. In the

cases where the premiums were too low the rates were adjusted
so as to allow higher ones to be earned; but where the premiums
attainable were too high the rates for these articles were not
changed, and were never thereafter changed; but in setting rates
later

was

on very similar

articles the experience of the previous rates

utilized so as to permit the average

designed premiimi of 33^ per cent.

An

workman

to earn the

examination of the

in-

premiums earned in the month of May

show that the average premium earned in the foundry was 25.24
per cent, while the satisfactory fact is also shown that over 66
per cent of all the molder's work done was on a premium basis.
will

closed statement of

These

figures are conclusive in

showing that the molders in the

foundry have had a fortunate experience.

In regard to the charge that it has been impossible to keep or to
get a sufficient number of laborers in the foundry owing to the

abnormal pace at which they are expected to go, it is sufficient to

state that during the fiscal year ended June 30, 1913, only two
molders were separated from the service for any cause, one having
been furloughed and the other having resigned.
This is a complaint that the work of paintComplaint No.y.
ing shot and shell is given to selected men from the laboring gang,

at $1.84 per day, with the opportunity of earning premiums said

to range from 60 to 70 cents, instead of being given to regular
painters, with the result that, in one case at least, a regular

painter was laid

oflf

for lack of work.

Here, again, no charge

is

SCIENTIFIC

762

made

that the laboring

As a matter

MANAGEMENT

men were

of fact, they

not capable of doing the work.

it, and did it very

were capable of doing

was exceedingly simple work, requiring no

special
regular painters were used for the more appropriate work of mixing the paint and making preparation for the
lower grade men.
Actually, much of the work required of the
laborers was handhng the projectiles, which is rough work for
which they are better suited than are painters.
satisfactorily, since it
skill.

The

This

is another complaint that a man of

doing rather rough work, repairing old
shot-and-shell boxes in this case, instead of giving it to a high-

Complaint No.

no great

skill

grade man.

8.

was

set at

The obvious

advisability of giving this kind of

that it is stated to have been given to
needs no insistence; the fair treatment of the man who did the
work is evidenced from the statement in the complaint that he

work

to the class of

man

made 60

cents over his day's pay.

That the low class man by
the methods used was enabled to make as high pay as do cabinet-

makers, pattern makers, and wood turners may be a reason why

efforts should be continued to get these last classes of skilled

woodworkers under the premium system, but it is not a reason

for discontinuing the advantage accorded the less skilled woodworker.
It has not thus far been found practicable at the
Watertown Arsenal to apply time study and premium system of

payment

to the high grade woodworkers, but efforts to this

end

are continuing.
That is, the management is trying to extend
the benefits of the system to those who are not now enjoying

them, and is not contemplating withdrawing them from the

ones who now have them.

Complaint No.

p.

This

is

a complaint that the laboring work

of carting must be performed without allowance for the day,

The carting about the establishment has been
load, or animal.

put under the premium system and the load is carefully taken into
That
consideration; but no allowance is made for the weather.
the system does not operate unfairly is shown by the fact that in
the month of May laborers working on premium jobs earned 24

per cent over and above their pay of $1.84 for the time while they

were so working.

SCIENTIFIC

This

MANAGEMENT

763

a complaint that no allowance is

made for the height of the sideboards in the time set for unloading
This refinement has not yet been gone into as
a car of pig-iron.

Complaint No.

10.

is

the cars in which pig-iron is received have usually sideboards of

3 feet or under. Time studies of unloading ordinary pig-iron have

not been

made

at the

Watertown Arsenal, but those used

in set-

ting rates have been accumulated elsewhere by the time study

In 13 instances reported there
expert employed at the arsenal.

was only

which a considerable premium, 30 per cent in that

The question as to whether any very great
instance, was earned.
efforts to earn premiums were made is raised by the very difin

do apparently similar amounts

needs
more
attention at the arsenal and
subject

ferent lengths of time required to

of work.

The

will receive

it.

This is a complaint that the stop watch

Complaint No. 11.
man endeavored to prescribe the use of shovels of 40 pxjunds
capacity instead of shovels of 21 pounds capacity in cleaning up
waste material about the foundry. The point in this case is that
the time study man was trying to obtain some experimental

information in regard to the use of a 40 pound shovel, and had no

intention of continuing the use of this shovel for ordinary work.
It appears that he did not insist up>on the use of the larger shovel,

and that the work went on with the smaller one. The matter is
a very unimportant one but it may be stated that on more than
one occasion men have been noticed to be voluntarily using 40
;

pound shovels

in the

Complaint No. 12.

in the

number

work

referred to.

This

is

of accidents

Careful record of

all

accidents

is
is

a complaint that a large increase

caused by the driving system.

kept at the arsenal.

Most

of the

machine shop.
During the fiscal year
ended June 30, 191 2, the total number injured in this shop was
34, of which 5, or 14.7 per cent, were working on premium at the
accidents occur in the

time.
During the fiscal year ended June 30, 1913, 57 persons
were injured in the machine shop, of which 13, or 22.8 p>er cent,
were premium workers. During these two years the number of

workmen employed in
same, but the amount

the machine shop remained about the

premium work increased nearly four-

of

SCIENTIFIC

764

MANAGEMENT

premium work increased

about 300 per cent, the percentage of accidents to premium
workers increased only 8.1.
During the nine months from
That

fold.

is,

while the

amount

of

October to June, 1913, 33 machinists were injured, 10 of whom,

or approximately 30 per cent, were premium workers.
During
this same period 44.8 per cent of the work in the machine shop
It thus appears that the percentage of
was premium work.
accidents among the premium workers was less than the percentage of premium work; that is, that the greater proportion of
accidents during these nine months occurred among the day

workers.

These

figures are a

conclusive refutation

of

the

charge.
It is true that the

number

comparatively recent times.

of accidents has increased during

This increase

is

coincident with

the better understanding of the disability act, by reason of which

the employees now receive compensation for absence on account

which was formerly denied them.

This is a complaint that the majority
Complaint No. ij.

of injury,

men

of the

are failing in health.

This

is

distinctly not true.

no evidence of it, and no complaint of it. A number of

men questioned on the subject denied it, no man being found who
claimed or admitted that his health had been injuriously affected;
and no man has personally claimed that he has been overworked.
There

is

In regard to the possibiUty of overwork, it is at least extremely

In machine work particularly, where, as stated
improbable.
before,

most

of the

premium jobs

are found, the machinist

usually stands for a considerable time looking on while the

Such a job can be divided into
machine is doing the work.

machine time and handling time, and the machine time can be
subdivided into that in which the feed is by hand and that in

by power. It is during the time that power

the machinists simply stand and watch the
that
operating
work. Ten jobs, taken at random, have been examined and the
which the feed
feed

is

is

following have been found to be the percentage which the power

feed time, that is the resting time, is of the whole time required
for the job:

No.

3,

Job No.

i,

5.75 per cent; job

40 per cent; job No.

4,

No,

58 per cent; job

2,

68 per cent; job

No.

5,

35 per cent;

SCIENTIFIC

MANAGEMENT

765

46 per cent; job No. 7, 78 per cent; job No. 8, 71 per

Of
9, 80 per cent; and job No. 10, 54 per cent.
course, during the power feed time the machinist has to fix his
attention upon his work; but it is not strained attention, and is
job No.

6,

cent; job No.

not of a wearing character.

facts of

These

figures,

coupled with the

moderate working hours, frequent holidays, and generally

good working conditions, show the practical impossibility, in

the general case, of overworking a machinist.
This is a complaint that the number of
Complaint No. 14.
work
is greater than ever before, by at least
for
bad
rejections

The inspection service has been improved under

100 per cent.
the Taylor system, and the number of inspectors increased.
Formerly it was customary to insf)ect only the finished pieces,
and the inspectors examined only such operations as the foremen
called upon them to inspect.
Under the better organization of
the present system inspections are prescribed in the planning

room and many more operations are inspected; with the result
that the standard of work is being gradually raised, and that it is

much

easier than formerly to fix the responsibility for spoiled

work, which was then shared indefinitely by the workmen, the
An examination of the rejection
foreman, and the inspector.

reports does not indicate that there is a greater amount of spoiled

work by the premium workers than by the day workers. It is
also

shown that the amount

of spoiled

work at the Watertown

not greater than that of other establishments engaged

in work of similar character, and is not inordinate.
The economy
Arsenal

is

of its production also indicates that fact.

18. In the petition of June 17, 1913, I have numbered the
complaints, as in the previous f>etition, and will speak of them in

order:

This is a general complaint that the time

Complaint No. i.
study system is used as a means of speeding men up abnormally,

The fact
humiliating and savors of the slave driver.
men
has
been
and
there
denied,
ought
up
abnormally
to be nothing humiliating to an honest workman in an effort to
that

it is

of speeding

by careful study, at a measure of the time required to do a

of work, in order to set for it a rate which is just, and
piece
given
arrive,

'J

66

SCIENTIFIC

MANAGEMENT

same time enables the workman

at the

to

make

higher pay than

ever before.

Time

studies are not required for every job, nor more than once
the
same job; that is, they are comparatively infrequent.
upon
the
two years in which the process has been in operation
During

Watertown Arsenal, 149 men out of about 600 have had

made of work which they were performing. Many
of these men had only one time study made of their work during
the two years, and the maximum number which was made of the
work of any one man was 1 1 and this occurred in the case of 4
men only. The average number was about three, which would
mean one in about eight months. As the premium work increased, however, during the latter part of the two years, the
average interval during the latter part would be correspondingly
at the

time studies

shorter.

This complaint charges the premium

Complaint No. 2.
with
an
of
increase
accidents and has been answered with
system
reference to the

first petition.

This complaint is a statement that the

Complaint No. j.
The comsystem has not produced the high wages promised.
that there has been no increase of wages except through
premiums paid. As the only increase promised by the system
plaint

is

is

Rates
through premiums, the complaint falls to the ground.
is well known, are determined by the wages paid for

of wages, as

work

Hke character in the vicinity; premiums are paid as percentages on those rates.
Nothing else has ever been promised,
and in this respect the promise has been amply fulfilled.
of

The statement

that the cost of production has been increased

an extent that large deficits are being reported is the exact
contrary of the fact, and in that it is made without knowledge is
to such

reckless.

The substance of this charge is the same

Complaint No. 4.
as that mentioned above
increased cost of production, and an

illustration is given of orders placed

with outside parties for

When
patterns which could have been made at the arsenal.
orders for patterns have been placed with outside parties it has
been because there were rush orders for them, which otherwise

SCIENTIFIC

MANAGEMENT

767

would have required an increase of the pattern making force,

which would have been only temporary. It is considered undesirable to frequently increase and reduce the force in any department, and to be detrimental to the interests of the workmen.
It is true that in many of these cases, if not all of them the esti-

mate

manufacture of the patterns at the arsenal was

greater than the price for which the patterns were purchased.
This is not as it should be, and it may perhaps be explained by
the fact that it has not yet been found practicable to apply the
for the

The
Taylor system of shop management to the pattern shop.
statement that the overhead charges due to the system are responsible for the

presumption

expense therefore
raised that

is

falls to

the ground,

and the strong

an improvement in costs would be

to the pattern shop some of the features of

have
been foimd so effective in other parts of
the system which
the establishment. This charge as to the cost of patterns instead

effected

by applying

an arraignment of the Taylor system really constitutes

an arraignment of its absence.
This complaint concerns the number of
Complaint No. 5.
of being

inspections and the rejections for spoiled work, which have been
dealt with above.

Complaint No.

system

is

bound

6.

This

is

a statement to the effect that the

good feeling between the workmen and

All the evidence except that of these peti-

to destroy

the management.

There is a cheerful and cordial

all parts of the establishment and of the
between
cooperation
individuals employed in it, which is markedly better than that
which was apparent before the introduction of the system. The
occasions on which men have to be admonished for various
tions, is directly to the contrary.

reasons have diminished and the cooperative efforts in pushing

work along have

was made to the
19.

So much

have been expected when

everybody to push it along.

increased, as
interest of

was

to

it

for the specific allegations contained in the peti-

In all cases they show the complaints of injury to be

without foundation, and in many cases they show that the complaint of too much premium system is really a complaint of too
tions.

little

of

it,

in that the point complained of is that

somebody

is

SCIENTIFIC

768

MANAGEMENT

given a chance at the premiums while another is not.

quently stated in the course of this paper, efforts are

amount

As fremade to

premium work, and the success attained

amount of premium work
is evidenced by
during the fiscal year ended June 30, 19 13, was about four times
In the 17 months ended May
that of the preceding fiscal year.
of
the
amount
money paid out in premiums, over and
31, 1913,
was
above the regular wages,
$22,257.82.
increase the

of

the fact that the

20.

In the face of the demonstrated advantage of the pre-

mium

system to a considerable percentage of the workmen,

accompanied by no compulsion to undue or disagreeable exertion

and

of its disadvantage to none, the question remains as to

why

come

in a numerously signed petition for the aboliThe statement advanced of reasons for
tion of the system.

there should

granting the petitioners' requests are shown to have no basis in

If the reasons
fact, in that no injustice or real hardship exists.
given for the requests are the real ones it ought therefore to be

supposed that the objections would disappear upon the showing

that their foundation is in error. I think the question is partially

answered by the statement that in many instances the petitions

do not represent the real sentiment of the persons whose names
are attached to them.
Upon the receipt of the petitions they

were sent to the Watertown Arsenal for certain information, and

there a number of the employees were examined individually as.

Some

stated that they liked the system and had

Several stated that they did not
refused to sign the petitions.
Also it was
wish to sign, but had done so under compulsion.
to their views.

discovered that the facts alleged in the petitions were not asserted
by a considerable number of the alleged signers, since many signatures were obtained without showing the matter subscribed, to
the signers knowwhich the signatures were afterwards copied
the
were
that
Taylor system. As soon as
opposing
they
ing only
that employees were
establishment
the
known
about
it became

being individually interviewed a telegram charging intimidation

was sent to the local Member of Congress, and at the same time
the answers received commenced to take on a uniform tone of
opposition to the system.

Nevertheless

it

must be stated that

SCIENTIFIC

MANAGEMENT

769

workmen, including men who were earning good

declared
voluntarily their opposition to the system.
premiums,
21. I think the petitions are due both to the coercion and the

some

of the

The coercion comes from the

teachings of labor organizations.
opposition which organized labor has always shown to the increase
of the productivity of the individual, which

forms in which

it

has

introduction of the

made

its

it

has fought in

all

the

appearance, from the time of the

power loom.

The

fact that increased indi-

vidual production redounds ultimately to the advantage of the

working classes, as well as to that of everybody else has been
In the
powerless to produce a change of attitude in this respect.

ordinary case this is perhaps explicable by the fact that, while the
ultimate advantage is demonstrated, the immediate effect is

some

disastrous to
diate

remedy

of the individuals involved, while

for the disaster

an imme-

has not been provided.

In the

instance of increased productivity at the Water town Arsenal,

however, there has been no immediate disadvantage to any class,
since the substantial increase in the

wages paid out has not been

diminution
of
the
accompanied by any
working force.
22. From interviews with the employees I am of the opinion
that the teaching of the unions at the Watertown Arsenal is that,
the men will join in the expulsion of the premium system, the

if

power of the unions will be sufficient and will be used to

same increase of pay as is had under the premium
This, of course,
system, without the necessity of working for it.
could not be accomplished without the abandonment of the rule
of the department that the wages paid at an arsenal shall be the
same as those of the vicinity for work of like character. Careful
political

secure the

examination upon this point is periodically made, and it is a fact

that at the present time the wages at the Watertown Arsenal are
slightly

above those paid in the

vicinity.

comparison

tives of the

workmen and readjustment

occasion for

it is

The

is

Evidence as to the

always welcome from the representa-

effect of the

is

willingly

made when

shown.

subject of the discontinuance of the system through

has been up in both Houses of Congress, in
action
legislative
which resolutions forbidding it have been introduced and have
23.

SCIENTIFIC

770

MANAGEMENT

been favorably acted upon by the committees to which they were

referred.
So far as I know the committees have not taken evidence upon the subject matter of the resolutions no one has been
summoned from this department, which is the only Government
;

organization which has introduced the system in its entirety.

Pursuant to a resolution of the House of Representatives, a committee of that body investigated the Taylor and the other systems

management and

their appHcation to Government work

and the committees reporting upon the propositions
above mentioned to abolish the system made use of the report of

of shop

in 1911-12,

the investigating committee, notwithstanding the fact that this

report recommended that there should be no legislation upon the

The report of the investigating comsubject at the time.

did
not
make a statement of what it had found
however,
mittee,
Watertown Arsenal

as a result of its investigation, but

mentioned in a condemnation a number of reprehensible practices

at the

did not find and did not say that it had found at that
It is impossible to find in the report of the committee a statement of the general conditions under the system

which

it

establishment.

these must be sought in

reading through the three volumes of evidence taken and printed.
I think it would not be difficult for you to reach a conclusion which

and

of conclusions in regard thereto;

would be satisfactory to yourself through an examination which

you would have the time to make, and I entertain no doubt that,
if

permitted to handle the matter at the arsenal, without legislaI could continue its operations satisfactorily,

tive directions,

since the leaders of disturbance could not hold the

men in

opposi-

tion to the manifest advantages of which they have had experience.

But danger

lies in congressional action, under pressure from

outside the arsenal, and for the purpose of satisfying Congress
and the country at large as to the advantage or disadvantage,
both to the Government and to the employees, of the features

complained of as in operation, I think that an investigation

made by an authoritative body in which the country

should be

could have confidence, which should take the time necessary for
the purpose, and would render a report embodying its findings as
to the facts

and conditions and

its

conclusions thereon, with

its

SCIENTIFIC

MANAGEMENT

recommendations; which could be

ment

of their action

by

relied

those in authority

upon

who

77 1
for the govern-

are called

upon

to

take action in the premises and who, of course, have not the time
Such a body
to look thoroughly into the matter for themselves.
I believe to be the Industrial Commission appointed by the
President pursuant to the act approved August 23, 191 2, entitled
"

An

act to create a commission on industrial relations."

do

is any more worthy subject for the investigation of this commission than the one of modem scientific

not believe that there

management

in industrial works, of

which they have now an

Government establishment conducted openly, under public laws and regulations, and
operated with solicitude for the welfare of its employees and
illustration in four years' operation at a

without
24.

profit.

The numerous documents containing

the

information

from which this memorandum has been compiled are on file in

this office and available for examination, but are withheld in
order to diminish the size of this already bulky communication.
Respectfully,

William Crozier,
Brigadier General, Chief of Ordnance.

[Extract from the Report of the Chief of Ordnance, 191 i.j

Scientific

About

Management

three years ago the department began to devote attenmanagement as apphed to its

tion to the subject of scientific

Previously to the last fiscal year

manufacturing operations.
the subject has been considered more as an experimental detail
of shop management, but it has now assumed suflicient impor-

tance to justify a reference to it in this report.

It is unnecessary here to attempt any detailed description of
the principles of scientific management or the particular application of those principles which constitutes the Taylor System,
have been the subject of extensive discussion in the

since both

public prints and have been very fully described in various treaIt may be said, however, that the principles are no new
tises.

SCIENTIFIC

'T]^

MANAGEMENT

discovery, nor are they claimed to be such by the advocates,

that the many details have been the subject of special

laborious attention for

many

years.

One

of the basic ideas

is

and
and
the

application of educated and scientifically trained intelligence

to those operations of manufacture which were formerly considered either as of too small importance to attract such attention

or as belonging entirely to the practice of a trade, and were therefore left to the judgment or choice of those immediately and
practically connected with the operations; that is the workmen
and foremen.
The employees to whom these matters have

heretofore been left acquired their skill not from study, but by
copying the methods of their predecessors, and are not generally
incUned to question the old methods. Besides, the best method
of doing certain work is too difficult of ascertainment for the workman to have any chance of success in arriving at it, which has to
be done by careful and scientific consideration of a number of

variable elements whose successful combination

high

skill

and

careful observation.

An

is

a matter of

illustration is the process

of cutting metal, a particular task involving which is usually

given a workman with no other special instructions than that he
is to use a particular machine and follow a drawing upon which
The
dimensions and allowed variations therein are specified.
are
determination
workman's
own
which
are
left
to
the
matters

which he usually grinds himself

the form of cutting tool
the speed at which he will run the machine, the depth of the cut

which he will take in removing the metal which must come off,
and the feed which he will set for the travel of the tool along the
In determining these matters there should be taken into
consideration the character of the metal upon which the work is

piece.

to be done, the quahties of the steel in the cutting tool, the best
length of time for the cutting tool to last without renewal, the

strength of the machine, and the capacity of the belting to transmit power to it without sHpping. Certain only of these elements

can be known to the workman; others are without his ken and
have probably been determined without consulting him, as, for
instance, the appliances by which the machine is to be given its

power and speed, and the

specifications for the steel in the cutting

SCIENTIFIC
tool;

MANAGEMENT

773

and the best combination so as to secure the completion

of

the task in the shortest possible time can only be insured by the
application of recorded results of long experience and close obserEflScient work requires that
vation of the art of cutting metals.

workman must be given the elements of speed, feed, depth of

cut, and a cutting tool by some one who knows what the combithe

nation ought to be.

When the claims

ment

first

attracted

of existing shop

made by

my

the advocates of scientific manageattention, the question of the efficiency

methods was naturally raised

in order to estimate

It is believed that the shop

the probable value of a change.
methods in effect at the different arsenals were fully abreast of the

best general practice in private industries of the same nature.

While, therefore, the general conditions would compare favorably

with commercial practice, in those arsenal shops engaged in the

manufacture of small arms, ammunition, etc., where the work
consists of turning out large quantities of the same pieces, the

and
had been more evident than in general
machine shop and jobbing work, more study had been given the
subject, and as a result the methods there were highly developed.
It may be said, in fact, that those shops have had scientific
management for years and do not, therefore, appear to afford as
necessity for closely coordinating the successive operations
for eliminating delays

wide a
I

field for

may also say

improvement as might be found

that one of the earliest publications

"

in the others.

upon

scientific

management was a work entitled The Cost of Manufactures

and the Administration of Workshops," by Capt. Henry Metcalfe,
an officer of the Ordnance Department, published in 1885. Of
Capt. Metcalfe's work Mr. Taylor said, in 1903:
Among

455.

the

many improvements

for

which the originators will probmay be mentioned:

ably never receive the credit which they deserve

*

41

The card system of shop returns invented and introduced as a complete system by Capt. Henry Metcalfe in the Government shops of the
Frankford Arsenal.
The writer appreciates the difficulty of this under461.

taking, as he

system

was at the same time engaged in the slow evolution

Midvale Steel Works, which, however, was the

in the

of a similar
result of

gradual development, instead of a complete, well thought out invention, as

was that of Capt. Metcalfe.

SCIENTIFIC

774

MANAGEMENT

As a result of consideration given the subject the probability

that the general machine shop and job work practice might be
materially improved by the methods of scientific management
seemed great enough
object I directed,

warrant a practical trial.

something over two years ago, the
to

With

this

trial at

the

Watertown Arsenal, Mass., of some of the elementary features

of what is known as the Taylor System, with the intention of
testing out these features thoroughly and determining their value
before proceeding further, and I employed Mr. Carl G. Barth, an
expert in shop management recommended to me by Mr. Taylor,
to assist us in effecting their introduction.

Mr. Earth's principal

service has been the systemization of the

general processes of manufacture.

Under

his

guidance

we have

systematized the method of putting work into the shops, so that

orders for manufacture now go from the office to the shops with

much more complete arrangement and supply than

formerly

of drawings, specifications, lists of parts, bills of material,

and

orders relating to particular parts of the structure to be produced,

so that the foremen are reheved from much of the semi-clerical

and other

office work which they used to have to do, and for

which they are not well quaUfied and cannot attend to without a
We have systematized
neglect of other more appropriate duties.

the

work

of planning the course of

component parts

of the struc-

tures to be manufactured through the shops of the arsenal, so

that this course shall be regular and orderly, and the work shall
at no time be held through the lack of some component which is

not at hand when needed, and that no wasteful effects shall arise

through congestion of work at particular machines, or the idleness

machines or workmen, while waiting for the assignment
of operations which should have been planned for them in
of other

For

purpose there has been installed a planning

room, equipped with personnel and appliances, for the regular
production of what might be called the time-tables of the thouadvance.

this

sands of pieces which must travel through the pattern shop, the
foundry, the forge shop, the machine shop, and the erecting shop
their way from the stage of raw material to that of finished

on

product, without collisions, or unnecessary delays.

We

have

SCIENTIFIC

MANAGEMENT

775

systematized the issue of material for manufacture from the

storehouses to the shops, and have placed the task of estimating
the amount of material required among the duties of persons
other than those

who

are to

make

use of the material in

manu-

facture, so as to reduce the likelihood of over-estimates, to insure

the possession of the material at the time when it is needed,

prevent the disappearance of material while awaiting use and the
duplication of issues, and to insure the return to the storehouse
of surplus material, with the result of a useful reduction of the

amount

of material issued,

fabrications.

and supposedly used,

for particular

We have systematized the care of material in store

and the accountability

for

it,

so as to insure

more frequent and

accurate check of the material on hand with the clerical state-

We have also systematized

of what ought to be on hand.
the methods of caring for machines and tools so as to preserve
their efficiency; for example, the proper maintenance of the con-

ment

dition

and tightness

of the extensive system of belting,

and the

systematic tempering, and grinding of cutting tools; and we

have made such improvements in the efficiency of certain ma-

As an example of the
improvement, we made such changes in

chines as to greatly increase their output.

last-mentioned item of

the cutters and speeds of a certain gear-cutting machine as to

its daily output nearly threefold, and this at a time when

increase
it

was operating

in accordance with general practice

satisfaction of the skilled

The

and

workman who was employed

practical effect of these

at

to the
it.

methods at the Watertown Arsenal

has been a material reduction in the cost of general manufacture

The most important manufactures at the Waterat that place.

town Arsenal are seacoast gun carriages, which are large structures,
with hundreds of parts, requiring many months for their completion.

It is therefore difficult to give at this time

of the decrease of cost of production

many examples
due to the improvements

been made, but the following are illustrative:

Five different orders, each for 40 sets of parts for the alteration

which have thus

far

of 12 inch mortar carriages have been given in comparatively

The first two orders were executed before the
recent years.

introduction of the improvements very summarily and partially

SCIENTIFIC

'J'jd

MANAGEMENT

The average cost per set of these two orders

third order was carried through after some
The
$1,536.73.
little progress had been made in the new methods, and the cost
The last two orders had the
per set under it was $1,120.32.
described herein.

was

benefit of

most

of the

improvements which have thus

far

been

introduced, and under these the cost per set was $988.36. Another
example is found in the case of 6 inch disappearing gun carriages.

Under an order

which was executed under the

old system the cost of each carriage was $24,618.31.
Under the
new system the cost of each carriage, under an order for two, was
for three carriages

This comparison is, however, not quite accurate,

$18,103.13.
since the first order had to stand the cost of the patterns, which
the last order got the benefit of.
This cost would, however, not

have been nearly

sufficient to

overcome the difference

in price.

In the case of the parts for the mortar carriages, the direct labor
cost per set was reduced from $411 for the first order of 40 to
$275 for the

last order,

and that

of the indirect labor

shop expenses was reduced from $358 to $332.

and other

In the case of the

6 inch disappearing gun carriages the cost of the direct labor was
reduced from $10,239 to $6,949, and that of the indirect labor

and other shop expenses from $10,263

to $8,956.

This satisfac-

tory result has been attained without affecting the pay of the
employees or requiring special exertion by them. The previous
practice at the Watertown Arsenal was the same as that still
followed in practically

all

machine shops the management of

which has not yet appreciated the wastage that a

of the usual practice

is

claimed to reveal.

of this wastage include failure to appreciate

and

scientific

study

The principal elements

and

to utilize the full

machine

tools, lack of planning by which

power
machines are frequently without work, the employment of skilled
workmen instead of cheaper help to bring work to machines or to

efficient

of

procure and grind their cutting

tools, etc.

By

the establishment

and cuts the work done by the machines is

increased, and by regulating the flow of work so that it shall be
even and continuous, and employing laborers and messengers to
supply the work and tools to the skilled workmen, the latter are
able to devote the time and labor which they previously expended
of specified feeds

SCIENTIFIC

MANAGEMENT

777

ways to work proper for their grade. Mr. Barth entered

upon
employment on June 14, 1909, since which date he has
in
2 years and 3^ months intervening till September
the
given
in other

his

30, 191 1, 156 days of service to the arsenal, at a total cost, including his expenses, of $8,808.30.
In view of the successful results obtained at the Watertown

Arsenal, in

December

last I

a board, which included the

decided to assemble at that arsenal

commanding

officers of the principal

manufacturing arsenals, for the purpose of studying the shop

methods which had there been put in practice and of determining the extent to which these methods were suitable for other
arsenals.

The board of officers made a thorough study of the Watertown

methods and recommended the adoption of those methods for
similar work at other manufacturing arsenals, with such changes
In accordance
in details as local conditions seemed to require.
with this recommendation preUminary steps toward introducing
the methods, in so far as they are applicable, have been taken at
several other arsenals.
Due, it is believed, to an erroneous conception of the purposes which it is intended to accomplish by these
methods, the employees at one of the other arsenals to which the
changes are to be applied have protested against the installation.
They have been assured that this department does not contemplate the introduction of any system, or any feature of a system,
As stated above, the features
which is oppressive or unjust.

which have been in effect at the Watertown Arsenal for about two
years, and which are all which it is intended to introduce at the
other arsenals at the present time, do not affect the wages to be
paid to employees or the exertions to be made by them.

The employees have been fully informed as to my intentions in

The explanation given them should suffice to allay

this matter.

any apprehension that may have been aroused by a misunderstanding of the matter, and induce them to await the result of the
practical trial of the methods in question, with confidence that
their proper interests are not endangered.

In addition to the study of methods,

scientific

management
workman

usually includes some plan for demonstrating to the

SCIENTIFIC

J7^

MANAGEMENT

that he can increase his production without unduly exerting himself, and for stimulating him to do so by offering him increased

pay for such increase in output. The advocates of the Taylor

System claim with great positiveness that the features of that
system which do affect the employees' pay, if appKed, will result
in further very marked economies to the Government, accompanied by increased pay and conditions generally satisfactory to
These claims they base upon the

the employees.

result of actual

experience in shops in which the system has been put in operation.

The confirmation of the claims as to the advantages of the features
first installed,

which the practical

test at

Watertown

afforded,

such force to these further claims that, in the absence of any

positive evidence to the contrary, I do not think they can be
leiids

disregarded by an administrative officer honestly desirous of

serving the interests of the Government.
Briefly stated these
features contemplate offering additional pay to workmen for
in the manner and sequence selected from the

work performed

and completed within the time which that

study indicates as sufficient for the purpose. The saving in time
results, aside from any increased efficiency of machines, chiefly
results of careful study,

from the

given the workmen, by which

more advantageously applied, and will involve no

effect of the instructions

their effort is

exhausting exertion on their part, nor such as should be disagreeIf the work is not performed within this given time, the
able.

workman

receives his regular daily pay;

never

less

than his

The proposition is simply that

regular pay.
instructions and by so doing saves time, his pay will increase in
if

he follows his

For example, a workman has

proportion to the time saved.
been doing a piece of work in 190 minutes. After painstaking
study of the job and of all the means of saving time the man is
carefully instructed as to these means, and is told that for every
minute saved, within say 120 minutes, he will be paid for half a
minute at his regular rate, in addition to his regular daily pay; and
that it is thought that he can do the work in 72 minutes, for which

time the increase over his regular pay will amount to 33 i per cent.
The real point in the matter, however, is the determination, by a
method of scientific common sense, of the time within which the

SCIENTIFIC

MANAGEMENT

work can and should be done, and the

particular

779
method

of

com-

pensation as a stimulus for meeting this time is not important.

An application of the method described to the first employee
of the

Watertown Arsenal was made

in

May

The circum-

last.

stances are worth examining somewhat in detail, as they are

illustrative of what might, at least, be accomplished by the general

use of the method.

The

case

was that

of a machinist cutting

It must be remembered
gear wheels on a gear-cutting machine.
that all the preliminary means of improving the machine had
It had been standardized and speeded
already been resorted to.

up and, although not a new machine,

it

was

in as

good condition

The man employed

could be for getting the best output.
at it, a capable workman, well disposed to turning out a good
day's work, had already cut a number of the gears, so that his
as

it

A careful time study

ordinary rate of production was known.
had been made, and an instruction card issued to him in accordance with the methods of the Taylor system.

The

following

figures are given as illustrating the change of output: The time

which the man had occupied in cutting a gear was 329 minutes; as

the result of the time study he had been told that he would be
paid at his regular rate for a half minute for every minute under

300 minutes within which he would cut a gear, and that the results
of the time study showed that he should cut them in 180 minutes

premium would be 33^ per cent over his

which
he
was assured he was going to get in any
day rate, $3.28,
No limit was placed upon the amount which he could earn
event.
by cutting the gears in still less time than io minutes each.
each, in which case his

Under these conditions the man went at the work and cut 10
gears, all that

were

left to

be cut, in 220 minutes each, thus

pay about 18 per cent over his day rate. This

appears to have been a result worth attaining, and was reached,
not only by stimulating the man and giving him instructions, but

increasing his

also

by

affording

him

all

the facilities for doing the

work which a

made had shown might be given him with advanThe magnitude of the achievement
Government.

careful study

tage to the
Of the 329 minutes which
does not yet appear in its entirety.
had been previously taken in cutting a gear, 152 minutes was

780

SCIENTIFIC

MANAGEMENT

the running time of the machine, which the man could not alter,
leaving 177 minutes as the handling time, occupied by the man in

taking out finished gears, putting in new blanks to be cut, adjusting cutters, etc., so that the 109 minutes finally saved were out
of the 177 minutes handling time.
The cost of the gears before

putting the man on the premium system had been, for his own
labor, for the labor of his helper, for the cost of running the

The final cost

machine, and for indirect expenses, $4.75 each.
for these same items was $3.28 each, making a saving of $1.47 per
For the effect on the man's pay: He cut
each gear in 80 minutes less than the 300 minutes which were
given him as the time within which he would be paid premium;
gear, or 44 per cent.

he was therefore paid, at his rate of 41 cents per hour, for 40

minutes for each gear, and as he cut a gear in 220 minutes he thus
made 40 minutes' pay, or 37 cents, every 220 minutes, which is
at the rate of 7.45 cents per hour, an increase of about 18 per cent
over his regular rate, which applied to his entire day's pay would

from $3.28 to $3.87.

Following the above quoted

raise it

and several others in the

machine
an attempt was made to extend the
improvement in methods to the foundry, where there was thought
to be still greater opportunity for economies which would result
advantageously both to the employees and to the Government.
There had been no opportunity for making a time study such as
had preceded the placing of some mechanics under the premium
system In the machine shop, but the advantages in that shop had
been so great that it was concluded that part of them could be
had by placing some of the molders under the premium system,
while basing the time within which premiums might be earned
upon the record of preceding production. It was well known
that this time was greater than it should be, but as it was intended
at this time to apply it only to certain work which was not to be
repeated, it was considered wise to allow the workmen the advantage of this liberal time for the sake of the economies which would
Several molders were given jobs
also result to the Government.
under this plan; but it was not successful in getting any material
case,

shop of the arsenal,

reduction of the time occupied in doing the jobs, or in producing

SCIENTIFIC

MANAGEMENT

78 1

premiums for the men. A time study was therefore made upon
a mold for the pommel of a pack saddle, of which a considerable
number were required. Under the day wage system a molder had
been making these molds in about 53 minutes each. The time
study showed that they ought to be made in 24 minutes each;
and in accordance with the usual rule premiums were to com-

mence

to be earned after the time represented by the 24 minutes

of the 24 minutes, or 40 minutes.
two-thirds
Both the
plus
molder and the foreman, however, thought this time was too
short, and the ofl5cer in charge of the shop therefore increased
it

arbitrarily to 50 minutes.

Howevej, although no objection to the time study was made

at the time, on the same evening a meeting of the molders was
held, and it was decided that they would not submit to the proc-

and when, on the following day, attempt was made to carry

on with reference to another man on another job, the molders

ess,
it

all

Their places were being filled by

struck, leaving their work.
men employed when, after a few days, they returned to

other

work under the same conditions as those on account of which

they had left, with the information that the whole matter would
be made the subject of an investigation.
After the return of the striking molders to work the

man who

had been on the pommel job was again put at it and occupied the
same time as before, about 53 minutes for each. One of the new
men who had been taken on was therefore assigned to this job,
when he made the molds at an average of 20 minutes each, the
castings from them not being distinguishable from those made by
That this time of 20 minutes each was not
the former molder.
difficult of accomplishment is shown by the fact that this man
upon one occasion did a whole day's work at the rate of 16
minutes each and on one occasion was observed to make one of
the molds in 10 minutes.
Also, one of the striking molders after
his return made them in 28 minutes each.
When these molds were produced in 53 minutes each their labor
cost, including helper and all the direct and overhead charges,
was $1.17 each. When they were made in 20 minutes each this
There was thus a saving of 63
cost was reduced to 54 cents.
;

MANAGEMENT

SCIENTIFIC

782

cents on each mold, and as, at the 20 minute rate, 24 molds were
made per day, the net daily saving to the Government upon this

one molder's job was $15.10.

The pay of the time study man,
a high-priced specialist, was $15 a day; so that his entire day's

pay was saved on

this

one job.

When

the molds were

made

at

the rate of 53 minutes each, under day wages, the molder earned
$3.28 per day; when they were made in 20 minutes each, under
the

premium

During the

and machine

plan, the molder earned $5.74 per day.

month of September last 29 men, in the foundry
shop, were working more or less time under the

Their total pay for the time that they were so

premium system.

working, at their regular rate,

was $1,108; the premiums which

they earned amounted to $279.19.

They thus

increased their

pay by an average of something over 25 per cent.

a pertinent inquiry who was hurt by this process ? The men

regular daily
It is

were certainly benefited in their compensation. They were not

required to overexert themselves, nor directed to speed up, and
the best evidence obtainable

is

to the effect that the rate at

which

they worked was not such as ought to have been other than pleasant.

about 120 jobs have been done under the new

scheme in the machine shop, and the average premium earned by

Up

to October

the machinists engaged

upon them was a

little

over 21 per cent

of their wages.

After the return of the molders to work, Lieut. Col. John T.

Thompson, from the Office of the Chief of Ordnance, was directed

Watertown Arsenal and make an investigation

and the events preceding it.
From his report it
that
the
on
the
of
the
dissatisfied
workmen
appears
objection
part
is to the process of making a time study, which
generally precedes
the setting of a premium time upon a new job and the underlying
cause of this objection appears to be an apprehension that
to proceed to the

of the strike

advantage

will

study to speed

work

be taken of the knowledge gained by the time

up the workmen with a temporary incentive to

fast, and then to use the knowledge thus acquired to require

the increased rate of production at the same old pay.
Such an
well
be
the
circular:
apprehension might
produced by
following

SCIENTIFIC

MANAGEMENT

783

Affiliated with the American Federation of Labos.

International Association of Machinists,
Office of International President,
404-407 McGill Building, Washington, D. C, April 26, igii.
OflBcial circular

To

No.

12.

the order everywhere, greeting:

It has been the purpose of the grand lodge in the past to raise a warning
voice whenever dangers have arisen which would affect our craft, and to
Through the eflForts of our organization the
point the way to safety.
machinists' trade has been raised to a higher level, as far as wages and condi-

tions of labor are concerned, than otherwise would have obtained.

Wherever a high-paid class of labor exists by reason of organization

and

has had the effect of stimulating the inventive genius of emmechanic

ployers to find ways of eliminating skill and with it the high-priced
and substituting common laborers with corresponding low wages.
The latest danger, and the one we propose to deal with in this letter, is the
Mr. Taylor, the originator of
so-called Taylor system of shop management.
skill

combined

it

this system, is a former master mechanic of the Mid vale Steel Co., Philaundertake
delphia, Pa., and is well qualified by disposition and education to
His system is very insidious in the process of
to undermine our trade.
installation and operation, it being his plan to install it slowly, and by a

process of selecting workmen, he will have it in full operation in a shop in the

time it takes him to select a body of docile, nonresisting workmen.
Mr. Taylor's system, as applied to the machinist trade, in brief, is as follows:
1. Instead of having a general foreman in a shop, he has four specialized
shop foremen, each of whom performs a specified part of a foreman's "job.
"
"
"
They are called the speed boss," gang boss," repair boss," and inout
as
These
are
boss."
plums to machinists who are
jobs
given
spector

willing to act as pacemakers.

2. Instead of machinists using their
"

judgment in doing their work, Mr.

planning department," which furnishes the machinist with an
"
"
similar to a drawing, telling him exactly what feeds,
instruction card
speeds, tools, and machines to use; how to hold the work, etc., leaving
This eliminates skill and common
nothing to the workman's judgment.
Taylor has a

laborers are used.

with the
3. Instead of relying on the honor of the machinists, together
watchfulness of the foreman as a means of getting a fair day's work from the
men, Mr. Taylor holds a stop watch on the best workman while working
fast, and leaves out the time on all such movements as he thinks is unnecesThe result forms a standard for a day's work. To get a man to work
sary.
at a terrific pace
(a)
(b)

is

his

method.

He

solves

it

something

like this:

Offering a bonus for reaching this maximum.

Standardizing the movements of a workman, thus

making an autom-

aton of him.
(c)

Fining the

workman

all

the

way from

cent to $60.

SCIENTIFIC

784

MANAGEMENT

Discharging all who fail to reach the maximum pace after a trial.
Discharging the dissatisfied workman, and keeping those who will do
as they are told.
(/) Oflfering the foreman a bonus to keep the men spurred up to the top
id)
{e)

speed.

InstaUing piece work with a differential rate per piece, thus: If the
10 pieces, and the workman may get, say, 35 cents a
piece, or $3 50 per day, if he succeeds in completing the entire task.
If, however, he fails to finish 10 pieces, even if he misses this limit by only a fraction
of I piece, he gets only 25 cents a piece, or less than $2.50 per day.
This
gives a tremendous incentive to a man to exert himself to the utmost.
4. Instead of collective bargaining, Mr. Taylor insists upon individual
(g)

maximum day's work is

.

agreement, and any insistence on organized labor methods will result in

discharge.

Wherever this system has been tried it has resulted either in labor trouble
and failure to install the system, or it has destroyed the labor organization
and reduced the men to virtual slavery, and low wages, and has engendered
such an air of suspicion among the men that each man regards every other
man as a possible traitor and spy.
The present eflfort on the part of Mr. Taylor is to have his system installed
in the Government arsenals and navy yards.
He has been so successful
that the War Department has decided to give his system a trial.
This
would give his methods a tremendous advertisement, and only be a short
time until all private manufacturers throughout the country would adopt
his system, since, with the public, the Government has the reputation of
being a good employer. This is but another instance in which a good reputation is exploited for a despicable purpose.
We do not know what motives
the War Department has in the matter, but we do know that this proposed
staggering blow at labor must be met by determined resistance.
The installation of the Taylor system throughout the country means one
of two things, i. e., either the machinists will succeed in destroying the usefulness of this system through resistance, or it will mean the wiping out of
our trade and organization, with the accompanying low wages, life-destroying hard work, long hours, and intolerable conditions generally.
It is manifestly impossible in a short letter to explain the Taylor system
satisfactorily, but let this letter serve as a warning to you to prepare for the
As a means of preventing the Taylor system of shop management
struggle.
gaining headway, we ask you to carry out the following instructions:
(i) Purchase a book explaining the Taylor system.
(2) Appoint a committee to read this book and report findings to the

loSge.
(3) Instruct the secretary or a committee to immediately write to the
Secretary of War, to two United States Senators of your State, and the Congressmen from your district, protesting against the installation of the Taylor
system by the Government, asking the law makers to support any measure

that
It

be submitted to Congress which will secure this result.

would be well to enumerate some of the objections to the system as out-

may

lined in this letter.

SCIENTIFIC

We
and

MANAGEMENT

785

you will be impressed with the importance of this matter,

Act quickly.
the impending danger.

trust that

will see

Yours

fraternally,

JaS. 0'C0^fNELL,
International President, International
Association of Machinists.

This circular was issued

last spring, closely following

a vigorous

protest of the employees of the Rock Island Arsenal against the

introduction at that arsenal of the first-described part of the

Taylor system which concerns systemizarion and general administration only, without directly affecting the employees or their
compensation, and which had been shown to be so advantageous
at the Watertown Arsenal, the protest being based upon the fear
of

what might

follow.

It seems quite conceivable that men might be influenced by

such publications as this, coming from organizations which they

support themselves, to such an extent as to cause them to lose

"
"
sweatshop
sight of the fact that the Gk)vernment is not in the

and that there are plenty of instances in the Ordnance

Department itself in which employees are continuously earning
by stimulated efforts under the piece work system, wages very
considerably in excess of those paid to persons of the same degree
A little inquiry would
of skill, under the day wage method.
business,

show that there

are many employees in the department working

which
can be readily learned in time very much
at employment
less than that required for the apprenticeship of a machinist,
for instance,

who

are regularly earning the wages of a good

If the employees of the Ordnance

machinist paid by the day.

Department were left to the guidance of their own experience in

Government employ, and if the leaders of labor organizations
would take pains to inquire as to the promise in regard to condi-

employment which is implied in the record of labor in the

Government service before taking and diffusing alarm, I believe
that experiments such as the one now making at the Watertown
Arsenal would be given the fair chance which they do not have
tions of

when

feelings are stirred

quoted.

up by such

circulars as the

one just

SCIENTIFIC

786

MANAGEMENT

As an example of what is shown by this department's record of

employment; the gear-cutting machinist whose experience has
been described above has been a regular employee of the department

for a

number

year ended June

30 last, in which the experience described occurred, he had been
given, as usual, leave of absence with pay for 13! days' annual
of years.

During the

fiscal

Saturday half -holidays, and 7 full holidays, making

all, for which he received $83.56, without rendering
27 J days
service.
For the service which he did render during the year
any
he received $899.65.
The amount which he received for no
leave, 13

in

service therefore was a little over g\ per cent of that which he

received for his labor; and the labor was rendered at the rate of
His hoUday time he was privileged to
only eight hours a day.
use for his own pleasure or profit.
In addition he had the sta-

had an opportunity to
take his luncheon in a clean, well- warmed and ventilated and
well-kept lunch room, where facilities were supplied for heating
was able to take a shower bath at the end of his work
coffee, etc.
bility of the civil-service tenure of office;

he wished to; and enjoyed the assurance that if disabled by his

work for over 15 days he would, under the governmental liability
if

be paid at his full rate for the time for which his disability
should last, up to one year; or that his dependent family would
be provided for at such rate in case of his being killed. With this
act,

experience I do not beUeve that, of his

man would

own motion,

have become suddenly possessed

this

good

of the fear that the

employment by the Government was to be entirely

changed and that thenceforth he was to be subjected to an unenspirit of his

durable slave driving process.

The theory under which the

trial is

being

made

at the Water-

town Arsenal

is that the current rate of wages is not* a just

compensation for the employees' best production, but that it is
compensation for the character of production under which the rate

has grown up, which is very far from the best. It is believed that
better production can be had by proper care upon the part of the

management, but that continued high production

is

impossible

It is also considered that

without correspondingly high wages.
there are differences between men which should be taken account

SCIENTIFIC

MANAGEMENT

There

of in their compensation.

is

not lacking evidence that

these differences are not always relished

and that there

is

787

by labor

some tendency upon the part

organizations,
of

members

of

these organizations to consider that they should be industrially

as well as politically equal; and it may be that this feeUng is
stronger on the part of employees in a Government establish-

ment, feeling that

in private

all

men are properly equal

employment.

before the law, than

have not yet reached a conclusion as

to the extension to other arsenals of the part of the Taylor system

of shop management which directly affects the workmen, and I

do not intend to do so in advance of further trial at the Watertown Arsenal; but I am convinced that, either by this system or
by some other, it ought to be possible to secure better cooperation
of the employees among themselves and between them and the
management than has been had in the past. I think it ought to
be possible to accomplish

this

by making

it

to the interest pf as

many employees as possible to call attention to any improvement

which would increase their productiveness, or to any slackness
it, and I do not think that the spirit of keenness
and forwardness which ought to accompany conditions of this
kind would properly be described as one involving spying, or a
state in which every man's hand would be against his neighbor, as

which diminishes

has been alleged.

As

to the effect

upon the employment

of labor which

would be

a given amount of work were to be performed by a

produced
less number of men than had previously been required for it, it
if

should be borne in mind that at a Government establishment the

amount of work is regulated by the capacity of the establishment

If by means of improved
and the appropriations available.
department should be able to diminish the cost of
military stores manufactured by it, by reason of the increased
efficiency of labor or otherwise, the funds thus saved would not
be turned back into the Treasury, but would be used to manufacture additional stores, for which there is much need, requiring

methods

this

This result would be comthe employment of additional labor.

parable to that obtaining in private manufacture when diminished
cost and price increase consumption.

SCIENTIFIC

788

MANAGEMENT

In getting this system going for the last two years or more
the

commanding

officer of the

Charles B. Wheeler, and his

have been

called

upon

Watertown Arsenal,

Lieut. Col.

Maj. C. C. Williams,
in excess of those cor-

first assistant,

for efforts

much

responding to ordinary working hours and have exhibited a

degree of zeal and intelUgence which merits special mention.

[Extract from the Report of the Chief of Ordnance, 191 2.]

Scientific

In

Management

my report for the fiscal year ended June 30,

of the appHcation of

more

191 1, the subject

management to the plants of
discussed at some length, and a

scientific

the Ordnance Department was

detailed statement of the reasons that determined the

trial,

the

extent to which the system had been introduced, the conditions

under which it would be retained or extended, and the results
already obtained were given.

During the past year the subject has received even greater
public attention than before, so that it is deemed proper to
describe the progress made and the conditions that have
developed since

my

last

annual report in greater detail than

would otherwise be considered necessary.

The occurrence of the brief strike among the molders at the

Watertown Arsenal, mentioned in my last annual report, was
represented by the outside labor interests which had supported
the strike and were encouraging opposition to the introduction of
management in the plants of this department as indicaexistence
of unsatisfactory conditions, due to the use of
the
ting
the particular system of management under trial, known as the

scientific

Taylor System.

The

representations

made induced

the

House

of

Representatives to appoint a special committee to investigate the

While the
Taylor and other systems of shop management.
resolution authorizing the appointment of the committee provided
for the investigation of other systems, it specifically named the

Taylor System and directed that the applicability of this system

to Government works, its effect on the health and pay of the
The
employees, and on wages and labor cost be ascertained.

SCIENTIFIC
special

MANAGEMENT

committee thus appointed began

The members

its

789

labors on October 4,

Watertown Arsenal and held

191
hearings there, at Boston, New York, and Washington, covering
a period between October 4, 1 9 1 1 and February 12, 1 9 1 2 Ample
opportunity was afforded to all Government officers and employees, outside labor leaders and workmen, industrial engineers,
civilian managers, and generally to any one interested in the
1.

visited the

subject, to present their views to the committee.

In short, the

committee went into the subject thoroughly and had presented

to it in great detail all the information needed for an exhaustive

The
study and the formation of an authoritative conclusion.
committee made its report to the House on March 9, 191 2, and it
was unanimous.
Inasmuch as the opponents of the Taylor
had
System
virtually concentrated their attack upon the time
and
study
premium features under trial atthe Watertown Arsenal,
claiming that those features operated against the health and
well-being of the employees, it is particularly interesting to
note what the committee, as the result of its investigation, had

upon the points

to say

especially affected

by those

features.

Their remarks were as follows:

Neither the Taylor system, the Emerson system, the Gantt system, the
Brombacher system, the Stimpson system, nor any of the systems of so-called
scientific management have been in existence long enough for your committee
to determine with accuracy their effect on the health and pay of employees
and their effect on wages and labor cost. The conclusions we have arrived at
are all based upon what we consider to be the logical sequence of the conditions existing or proposed.
The selection of any system of shop management
for the various Government works must be to a great extent a matter of

administration, and your committee does not deem it advisable nor expedient to make any recommendations for legislation upon the subject at this
time.

In other words, the committee, properly zealous to protect the

well-being of the employees, failed to find any ground in the
representations made by the opponents of the system upon which
to base

condemnation or serious criticism of the methods in

effect

or contemplated by this department, or any conditions which

called for remedial legislation, although it showed its alert interest
in the well-being of the

many

workmen by mentioning and condemning

oppressive practices, which

it

did not find, and did not say

SCIENTIFIC

790

MANAGEMENT

had found, at the arsenals of this department. This result

should be sufficient to stay the campaign against the use of the

it

Taylor system by the Government, which, on the part of its

opponents, has been principally one of misrepresentation of the
purposes sought, and unjustified assertions as to the results which
it would produce, at least until bad conditions become a fact
instead of a mere prediction.

Particularly have these opponents

endeavored, by quoting carefully selected and therefore misleading extracts from the writings of its original advocate, to create a

popular prejudice against the time study and premium features

of this system, alleging that these features are only devices for
"
"
the workman and reducing him ultimately to the
speeding up
"
"
"
of
a
machine
or
level
beast of burden."
The persistency

with which these statements have been circulated, in the face of

failure of the committee to discover any facts which justify them,

more than a suspicion that there is some other reason

which animates the opposition than a fear that the employees of
the department are going to be overworked.
The following
instance, which occurred at the Watertown Arsenal, well illusexcites

an instrument of oppresbut that the determination of the proper quantity of work

trates the fact that the time study is not

sion,

revealed

by

its

use

is

advantageous to the workman as well as to

the Government, and that the department intends to act justly

upon the information thus obtained. After a time study had

been made on a piece of work, the workman proceeded to earn a

good premium, but upon comparing the cost of the work to the
Goverrmient before and after the premium system of payment,
was discovered that the cost was greater afterwards than before.

it

That

was no saving of time and overhead charges to

compensate for the increased amount paid to the workman. The
reason was that this was an exceptionally fast and skilful man,
and that he had been all along giving an output corresponding to
is,

there

In other
a reasonable task time without getting paid for it.
words, he was underpaid. The time study disclosed this, and he
is

now

being paid in accordance with his merits.

In spite of the well-grounded conclusion reached by the committee that no legislation is needed at present, interests outside

SCIENTIFIC
of the

having

MANAGEMENT

79I

Government

service have, nevertheless, succeeded in

introduced into both Houses of Congress which aim

bills

to prohibit the taking of accurate time studies of operations

the payment of premiums, or extra pay, to the workman.
effect of these bills,

workmen

if

enacted into law, would be to deprive the

of all material

The

and

The

advantages that

scientific

management

attitude of the

department is that improvement in industrial conditions should benefit both employer and
employee. This attitude is clearly evidenced by the record that
offers

them.

the department has

was

made

in its dealings with its

given positive expression in

my

employees and

testimony before the special

To prevent any misunderstanding

January.
considered
it
is
this
fitting to quote that portion of
point,
upon
committee

last

the hearings which contains the expression referred to:

Mr. TiLSON.

There

is

another question

would

like to

ask in regard to

after a fair trial of the second part, as we have called it; of

this Taylor system, at Watertown Arsenal, it should be found that it does not
work satisfactorily to both the Government and the men, after a fair trial, so

the system.

If,

it could not be claimed on either side that it had not a fair trial, it should be
discovered that it could not be installed satisfactorily to the workmen themselves and to the management, do you believe that it would be installed at
the other arsenals, regardless of that fact ?

Gen. Crozier. No, sir; it would not be my intention to install it at the

other arsenals under those circumstances.
Mr. Fitzgerald. Would it mean the elimination of that feature at the
Watertown Arsenal ?
Gen. Crozier. Yes, sir; it would.
Mr. Fitzgerald. In its entirety ?
Gen. Crozier. Of this second part of the system ?
Mr. TiLSON. Any part which did not work satisfactorily.
Gen. Crozier.

would not permanently continue any system that was

the cause of continued discontent.

Mr. TiLSON. You regard the workmen at the Watertown Arsenal as fairthe majority of them
men who as between man and man
minded men
would wish to be fair. Now, after giving it a fair trial with these men, if it
engenaered constant strain and you could not make any satisfactory arrangement with this system, would it not discourage it in your eyes ?
Gen. Crozier. Yes, sir; it would. After I shall have given it a fair trial,

then I shall know everything about it of my own knowledge.

Mr. Fitzgerald. Of course, there are some features that might remain
after this second part of the system was presumed to have been abolished,
Would workmen be required to still
like the time records, for instance.
maintain the time as determined by the time study methods of this system ?

SCIENTIFIC

792

MANAGEMENT

Gen. Crozier. I think I have covered that when I say that I would not
continue anything that produced permanent discontent.
Mr. TiLSON. The system or any part of it ?
Gen. Crozier. No, sir.
Mr. TiLSON. I just wanted to be sure of wljat you said, General. I
simply wanted it reiterated, that is all.
Gen. Crozier.
Anything that produced permanent dissatisfaction and
We desire to have our relations with the
discontent would be given up.
workmen harmonious.
Mr, TiLSON. That 's the point.

These expressions should not be misinterpreted. They do not

that any feature deemed beneficial will be given up imme-

mean

upon the request of employees, without investigation of

the groimds and reasons for such a request.
Before the abandonment of a feature is decided upon it must be demonstrated
that those objecting to it have worked under it long enough to
understand it thoroughly, that their objections are material and
diately

based upon their own experience rather than the suggestions of

others, and that they represent in number more than the small
discontented element that exists in all industrial organizations.

The time study

most accurate measure yet devised

work that should be performed without overexertion, and the premium system is one of
the means by which this just quantity of work can be adequately
paid for. The combination of the two secures increased earnings
affords the

for determining the just quantity of

to the

competent workman, without a corresponding decrease

and material step forward which

to the less competent, a positive

would seem should meet with general approval. The proposed

bill, however, takes away this advantage, and requires the workman to continue to labor under the old conditions, the unsatisfactory and inadequate character of which is evidenced by the
it

symptoms

of general unrest occurring throughout the industrial

world.

The advocates

of these bills profess to foresee that the time

study and premium features will produce conditions inimical

to the workman, and draw a harrowing picture of a future in
which the overwrought workman is laboring feverishly to accomplish daily a task beyond his strength in return for a wage no
The
greater, and perhaps less, than he formerly received.

SCIENTIFIC

MANAGEMENT

793

absurdity of the supposition that such a state of affairs in a plant

belonging to this Government would be tolerated by the people,
or that there

is

any incentive which would lead sane Government

attempt anything of the sort, does not seem to strike

Neither do they appear to comprehend the fact
these prophets.

officials to

that the determination of the rate of wages to be paid

is

a matter

wholly independent of any system of management. The Taylor

system has no occult power to force workmen to work under
It does
unsatisfactory conditions or for an inadequate wage.
not take away from the workmen any weapon of self-protection

which they now possess.

Wages are not fixed by a system, but

by agreement. Under the Taylor system there is exactly the
same opportunity for bargaining, either individually or collectively, exactly the same remedies for oppressive conditions, in
short, exactly the same protection for the workmen that there is
no more and no less.
under any other system
The same
forces that operate now to maintain, raise, or depress the rate of
wages will operate as effectively under the Taylor system, and

these are the only forces that can affect the question.
When the
time study has revealed more accurately than mere guesswork
how much work can properly be done, there still remains the

The settlequestion as to how much shall be paid for that work.

ment of that question is not determined by the time study, nor by
of the Taylor System.
But the result of the
time study has furnished the workman with a vastly better ground
upon which to bargain about wages than he had when both

any other feature

parties were merely guessing as to the amount of a fair day's

In the face of the actual results so far obtained, and the
work.

unequivocal statements as to the future intention of this depart-

ment, the

effort to protect the

workmen from purely

visionary

dangers by depriving them of a present and very material benefit

appears so strained and illogical as to suggest irresistibly either
that the real reason for the effort has not been revealed or that
those

who

obtuse.

profess to be so alert in protecting labor are singularly

effort to eliminate

Should they be successful in their

the time study and premium features, the workman who has
become accustomed to receiving a substantial increase in his pay

MANAGEMENT

SCIENTIFIC

794

envelope under the premium system is going to find it difficult to

figure out how he has been benefited when that increase is taken

away from him and

his hours of

work

are not reduced.

I believe

that the practical experience of the benefits of the premium

system obtained by those who have worked under it during the

past year will lead to a saner and more enlightened view of the
subject, and develop clearly the fact that there is not, on the part
of those

ment

who

are personally affected,

of legislation so evidently

To show how

directly

any

real

wish for the enact-

opposed to their interests.

and materially the premium system,

based upon time study, has benefited the workman, I invite

attention to the following data as to the number, trade, and grade
of the employees who have worked on premium during the past

and the average monthly percentage of

pay represented by the premiums earned. (See
year,

their

regular

tables, pages

795-801.)
The net result of these figures may be more significantly summarized by the statement that 153 men received during the last

year a total of $6,938.43 more than they would have been

Had
paid except for the time study and premium features.
conditions been such that all of these men could have been emfiscal

ployed continuously on premium jobs, the premiums earned

would constitute an actual increase in their annual pay of 28.59
per cent.

These very substantial increases earned under the premium

method, without complaint of undue or disagreeable exertion, can
hardly be regarded by any unprejudiced person as other than a

improvement in the industrial position of the workmen

concerned, who must have been enabled thereby to live better
and to obtain for themselves and their families advantages not
It is difficult to believe that these men and
previously enjoyed.
those dependent upon them really favor a legislative prohibition
of the premium feature, which would deprive them of their new
comforts and compel a return to their former scale of living.
I
but
on
the spot, as well as
do not believe it,
by evidence gathered
by the above considerations, am convinced that a free expression
of opinion by the employees of the Watertown Arsenal, if it were

distinct

SCIENTIFIC

MANAGEMENT

PREMIUMS EARNED DURING MAY,

By Molders

No.

1913

795

796

SCIENTIFIC

MANAGEMENT

PREMIUMS EARNED DURING MAY,

In Machine Shop

No.

ig 13

Continued

Continued

SCIENTIFIC

MANAGEMENT

PREMIUMS EARNED DURING MAY.

In Machini: Shop

No.

1913

Continued

Continued

797

798

SCIENTIFIC

MANAGEMENT

PREMIUMS EARNED DURING MAY,

In Machine

No.

1913

Shop Continued

Continued

SCIENTIFIC

MANAGEMENT
Continued
1913
C<uitinued

PREMIUMS EARNED DURING MAY.

By Machinists' Heuess

No.

799

8oo

SCIENTIFIC

MANAGEMENT

PREMIUMS EARNED DURING MAY,

By Fireman

No.

1913

Continued

SCIENTIFIC

MANAGEMENT

PREMIUMS EARNED DURING MAY,

By Caxpemteks

No.

1913

Continued

8oi

802

SCIENTIFIC

possible to receive
of the system.

it,

MANAGEMENT

would be strongly

in favor of a continuance

The figures given above show the benefits which accrue to the
workman from the Taylor System as applied at the Watertown
It is now appropriate to consider what advantages
Arsenal.
have been secured

for the

Government.

In

my

last

annual

report such typical examples of reduced cost of manufacture were

It must be remembered
given as were available at that time.

that the Grovernment lacks the simple measure of economical

efficiency which a private concern possesses in its net earnings,

and that a convincing and definite comparison can only be had

when the same or very similar articles have been manufactured
under both new and old conditions. It should not occasion surprise, therefore, that the concrete instances available are not more
numerous. But while these instances are not many, they serve
to indicate beyond a reasonable doubt that the methods which
have been so successful
tionate success in the

in the cases cited are producing a propor-

work

generally.

From

60 different jobs, each of

a comparison of the
which was performed

job cards of about

under both the old day woA and the premium system, it appears
that the average rate of production under the premium system is

about 2 times that of day work. Had the same number of men
been working on premium work throughout the year as were
employed on such work during May and June at the Watertown
Arsenal, there would have been a total net saving to the Government of $100,095.80. Inasmuch, however, as the number in the
earlier

months was much

smaller, the

amount saved was

less,

and

the saving actually made was $49,102.95, as compared with the

amount which had been estimated that the work was going to
cost.

Savings from Improved Shop Management and Premium

System {except as noted) and Disposition Thereof
cost of production at the various ordnance estabdue
to the improved methods of manufacture and to
lishments,

The reduced

the

premium system,

realized

as previously outlined, will continue to be

from year to year.

These savings were made with

MANAGEMENT

SCIENTIFIC
practically

no reduction

of

wages

803

on the contrary,
day wages at all the

of employees;

there were a large number of increases in

and the earnings of those on a piece

arsenals,

basis were increased considerably.

work or premium

These increases, of course,

have been deducted from the amount of savings reported below.

Due

to the existence of these savings for the current fiscal year

the estimates for the next fiscal year have been reduced, thus

giving the most practical expression to the results obtained. The

savings amounted to over $240,000, which was used to increase
the

amount

of

work done and material manufactured under the

various appropriations from which the savings were made.

The
estimates for the manufacture of small arms ammunition during
the next fiscal year have been reduced by $150,000 below the
current appropriations; but for the reduced sum just as much

ammunition

will

be procured as would be possible under the pres-

ent appropriations at the prices of a year ago.

the manufacture of small arms is $100,000 less.
small arms
priation,

made

but

The estimate for

The number of

not be as great as under the current appronot be diminished in proportion to the reduc-

will

it will

tion in the estimate.

need

little comment, and, taken in connection

the
increased earnings of the workmen,
with those showing
furnish a complete explanation and justification of the advocacy

These

of the

figures

Taylor system by

this

department.

The workmen have

work has been

result
which
both
an
industrial
reduced,
employers and employees
So far, at least, the advanare generally desirous of achieving.

received higher wages, while the net cost of the

tages anticipated for both the

have been

realized,

and none

Government and the employees

of the objectionable results so confi-

opponents have developed. The present

situation, therefore, offers every inducement for the continuance

dently predicted by

its

of the conservative application of the Taylor

system begun by
of
such
extension
the
use
of those features
and
department,
shall
as
local
conditions
to
be
beneficial
justify.
proved
this

SCIENTIFIC

804

MANAGEMENT

Surplus Stock Savings

Inasmuch

as scientific

greater attention to

management more

all details of

systematically directs

manufacturing work than was

previously bestowed, its trial by the department led to a closer

study, among other objects, of the amount and kind of material
that should be kept on hand for manufacturing purposes, with
the object of reducing such stock to the lowest limit consistent

and economical operation. The study given this

in the adoption during the past year of a uniform
resulted
subject
for
system
determining the amount of stock to be carried and for
with

efficient

providing for
is

its

replenishment.
Material

easily accomplished.

The overaccumulation
is

of stock

prone to be scattered through

a manufacturing establishment in unimpressive lots and to rest in

out of the way places unobserved. The record of it is buried in
the property return, often under a variety of half-known names,
not meaning much to the clerks who handle the returns, which for
the large arsenals are ponderous volumes discouraging critical

examination.

A careful determination under a scientific method

of the proper quantity of stock to be kept

on hand revealed the

items the quantity had been excesthe

of
and
that
stock
those
items could be greatly reduced.
sive,
The process of realizing upon this surplus by using it in current
fact that in the case of

many

manufacture was at once begun and

absorbed.

will

be continued until

it is all

It will take several years to accomplish this.

During
the past year $122,789.61 worth of this surplus has been used.
This means that the manufacture of the articles for which the
surplus material was used was accomplished by the actual disbursement of $122,789.61 less than would otherwise have been
required so that that amount of money was available for additional work.

The

surplus stock savings, amounting to $122,789.61, were

utilized in manufacturing 2,189 additional infantry rifles and a
large

amount

of small

arms ammunition; while $17,585.13 were

turned into the Treasury, as the purpose to which this sum was
applicable can be covered by other appropriations without
increase.
Some $17,000 of this saving is still on hand.

MANAGEMENT

SCIENTIFIC
Stock

At the

Fund

805

not yet Utilized

Armory there is a remaining surplus of

above that mentioned above.
and
over
When
$130,313.53
future orders are received by the anjiory for the manufacture of
Springfield

arms report in each case will be promptly made to this office

showing the value of the surplus material which can be utilized
in such manufacture, and the allotment covering such orders will
This surplus consists largely
then be correspondingly reduced.
of those components of the rifle which require the longest time,
in the event of war, for their procurement, as, for instance,

stock, which should be seasoned

for several years prior to use,

steel for the larger parts, as for the barrel

amount

and

gun
and

receiver, so that the

of the saving does not represent a corresponding quantity

of material for that

number

of

completed

rifles.

It will require

several years to absorb this surplus, which represents the amount

by which the war reserve of material can be reduced by reason of

the satisfactory store of finished rifles.

Reports have not yet been received from the other arsenals as
to the resulting surpluses that will be available for such use in the

stock fund.

When

such reports shall have been received these

surpluses will be similarly utilized.

Recapitulation of Savings
Savings from improved shop management, and premium

system

$240,461.93
122.789.61

Savings resulting from the use of surplus stock

Total

$363,251.54

Scrap material was utilized, as usual, in the manufacture of all

whenever possible. The value of the scrap material so

articles

utilized during the year

about $212,000. Under the

now taken up at its proper value

amounts

new stock system this scrap

on the stock fund account.

is

to

That used

in the

manufacture of

charged against the allotment for its manufacture

any
to
the stock fund account.
When the stock fund
and credited
article is

exceeds an authorized
office

maximum

and made available

factures.

the excess

is

turned back to this

for allotment for additional

manu-

8o6

SCIENTIFIC

MANAGEMENT

Cash Rewards for Employees

During the past year the subject of the desirability and justice
by which employees who were the authors

of securing authority

of suggestions that resulted in value

improvements or economies

in manufacturing processes or plant could be adequately rewarded

was taken up and a recommendation submitted

effort

to

you that an

be made to obtain the necessary legislative action.

The

history of this department contains many instances of

employees who have offered suggestions that resulted in material

Under previously existing law

improvements and economies.
there was no suitable way by which the laudable interest of these
This lack of power
employees could be properly recognized.
to reward such suggestions undoubtedly deprived the Government of much advantage that would accrue from the stimulus

work that could otherwise be secured, and

Government in the unsatisfactory position of appropriating such suggestions and benefiting from them without
suitable recognition of the authors.
The action recommended
met with your approval and the matter was submitted to ConThe result was the passage of an act, approved July 17,
gress.
to the interest in their

placed the

191 2, which authorized the payment of periodic cash rewards for

the most valuable suggestions submitted by employees.
So far
as I know this act is the first successful effort on the part of any
executive department of the Government to recognize in a
material way those praiseworthy efforts of its employees which

are outside of their ordinary work and for which their regular
wage cannot be considered a fair compensation. In addition it
affords another practical instance of the desire of this department

and to promote that community

cooperation which both equity and efficiency

to deal fairly with its employees

and close
demand.
The necessary instructions for putting the act into
effect have been issued, in accordance with which the first period
within which rewards may be won will be from October i to
December i of this year.
of interest

SCIENTIFIC

MANAGEMENT AS APPLIED TO
WOMEN'S WORK

CHAPTEK Vn IN "MAKING BOTH ENDS MEET," BY SUE AINSLEE CIAXK AND

EDITH WYATT
Reprinted by permission of

The Macmillan Company

new method of conducting work,

has
been established in various
Management,
"
businesses in the United States, including
machine shops and
factories, steel work and paper mills, cotton mills and shoe shops,
Within

the last thirty years a

called Scientific

in bleacheries

and dye works,

in printing

and bookbinding,

in

lithographing establishments, in the manufacture of typewriters

and optical instruments, in constructing and engineering work

and

extent the

some
manufacturing departments of the
^
and
Army
Navy."
Three of the enterprises to a greater or less degree reorganized

by

to

this

new system

in this country

These establishments are a

New

employ women workers.

Jersey cotton mill, a bleachery

and a cloth finishing factory in New England. The

reduction of costs for the owning firms inaugurating Scientific
Management has already received a wide publicity. It is the

in Delaware,

object of this account to present as clear a chronicle as has been

obtainable of the effect the methods of Scientific Management

have had on the fortunes of the workers

more especially on
the hours, the wages, and the general health of the women workers
in these houses who have so far experienced its training.*
'

Brief on behalf of TraflSc Committee of Commercial Organizations of Atlantic

Louis D. Brandeis.
Seaboard, p. 70.
*
Fourteen years ago Scientific Management was applied to women's work in a
Here the women's hours were
Rolling Machine Company in Massachusetts.
reduced from io>^ a day to 8K; their wages were increased about 100 f>er cent; and
All the women had two days' rest a month with
consisted in insjiecting ball-bearings for bicycles.
Their department of the business, however, closed twelve years ago. Accurate facts other
than those listed concerning the workers' experience as to hours, wages, and general
their output

pay.

about 300 per cent.

The work

health under Scientific

Management

are at this date too few to be valuable.

807

8o8
.

MANAGEMENT

SCIENTIFIC

What,

then, are the

been inaugurated

new

management which have

The
Management ?
be defined to lay readers by a lay

principles of

What

Scientific

is

expression may perhaps best

writer by means of an outline of the growth of its working prinan outline traced as far as possible in
ciples in this company
the words of the engineers creating the system, whose courtesy

in the matter

In

1 88 1,

is

here gratefully acknowledged.

Mr. Frederick W. Taylor, the widely reverenced

"
The Art of Cutting Metals " and of '' Shop Man-

author of the

agement," then a young man of 21, closed, in grave discouragement, a long, hard, and victorious contest of his conducted as
gang boss of the machinists of the Midvale Steel Company in
Pennsylvania.
rates in his

In the course of the last three years, as he nar-

book Principles

of Scientific

Management

^
:

discharging workers, lowering the wages of the more stubborn men

refused to make any improvement lowering the piece rate and by other
such methods, he (the writer) succeeded in very materially increasing the
output of the machines, in some cases doubhng the output, and had been

By

who

promoted from one gang boss-ship to another until he became the foreman
For any right-minded man, however, this success is in no
.
.
of the shop.
sense a recompense for the bitter relations which he is forced to maintain
with all those around him. Life which is one continuous struggle with other
.

Soon after being made foreman, therefore,

men is hardly worth living.
he decided to make a determined effort in some way to change the system of
.

management so that the interests of the workmen and the management

He therefore obtained
should become the same instead of antagonistic.
the permission from Mr. William Sellers, the President of the Midvale Steel
Company, to spend some money in a careful scientific study of the time
required to do various kinds of work.
Lack of information on the part of both workers and the management as
.

to the quickest time in which a piece of work can be done constitutes what
has been the most formidable obstacle in the path of all progress toward
.
Every wasteful operation, every
improved industrial conditions.
.

mistake, every useless move has to be paid for by somebody, and in the long
run both the employer and the employee have to bear a proportionate share.
.
For each job there is the quickest time in which it can be done by a
.
.
"
Standard Time," for the
first class man; this time may be called the
time is more or less
this
all
the
Under
quickest
ordinary
systems
job.
.

completely shrouded in mist.

^

Principles of Scientific Management,

by

F.

W.

Taylor.

SCIENTIFIC
Through a period
in the shop were

809

about twelve years the simplest operations

of

now

MANAGEMENT

timed, observed, and studied

by graduates

from science courses, different university men, engaged by Mr.

Taylor, until a general law had been discovered regarding the
exertion of physical energy a first class worker could employ
"
and thrive under." It was found that the worker's resistance

and carrying the load depended, not on the

which he was obliged
to exert to elevate and sustain the load, but on the proportion
of his day spent in rest.
For instance, a pig-iron handler, Ufting
and carrying pigs weighing 92 pounds each, could lift and carry
47 tons of iron in a day without undue fatigue if fifty-seven per
cent of his working hours were spent in rest, and forty-three per
cent were spent in work.
If he Hfted and put in place a number
of pigs amounting to half that tonnage, he might work without
undue fatigue for a greater part of the day. Under a certain far
lighter load he could work without fatigue all day long, with no
of fatigue in lifting

amount

of strength in terms of horse-power

rest whatever.

With accurate time study

each job

is

as a basis, the

"

quickest time

"

for

times in plain sight of both employers and workreached with accuracy, precision, and speed.

at

all

men, and is
Here is an account of the effect the result of this time study
and these tests in strength produced on the output and wage of a
group of men at the Bethlehem Steel Co., whose work Mr.
Taylor reorganized after that of the Midvale Steel Company:

The opening of the Spanish War found some 80,000 tons of pig-iron piled
in small piles in an open field adjoining the Bethlehem Steel Company's
works.
Prices for pig-iron had been so low that it could not be sold at a
of the Spanish War the
accumulation of iron was sold.
The
steel company's
consisted of about 75
pig-iron gang
men
good average pig-iron handlers, under an excellent foreman. .
A railroad switch was run out into the field, right along the edge of the piles
of pig-iron.
An inclined plane 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
profit,

and was therefore

stored.

price of the pig-iron rose,

.

and

With the opening

this large

inclined plank, and dropped it on the end of the car.

found that this gang were loading on the average of about 1 2}4 tons
We were surprised to find, after studying
per man per day in this manner.
the matter, that a first class pig-iron handler ought to handle between 47
and 48 tons per day, instead of i2>^ tons, which were being handled.

up the

We

8lO

SCIENTIFIC

MANAGEMENT

This task seemed so very large that we were obliged to go over our work
we were sure we were absolutely right.
The task
which faced us as managers under the modern scientific plan
was
to see that the 80,000 tons of pig-iron were loaded on the cars at the rate of
It was further our
47 tons per man per day in place of 12^ tons. ...
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 with loading at the new rate of 47 tons than they were
several times before

when loading at the old rate of iiyi tons.

The first step was the scientific selection of the workmen.
Under
scientific management ... it is an inflexible rule to talk to and deal
with only one man at a time, since we are not dealing with men in masses,
.

develo'^^ each individual man to his highest state of efficiency and prosperity. The 75 men in the gang were carefully watched and
studied for three or four days, at the end of which time we had picked out
four men who were beUeved to be physically able to handle pig-iron at the
A careful study was then made of each of these men.
rate of 47 tons per day.
.
.
.
Finally one man was selected from among the four as the most likely

but are trying to

man

to start with.

This man, who had been receiving $1.15 a day, agreed to follow
a day the directions of the time student, who had deter-

for $1.85

mined the proportion and

intervals of rest necessary for the

undue
regular accomplishment
to
his
accustomed
load
and
The
worker
started
at
carry
fatigue.
regular intervals was told by the time student, observing the
"
Now pick up a
proper period for rest and work with a watch:
rest.
sit
down
and
Now
walk.
and
Now, walk
now,
pig
of the task, without overstrain or

rest, etc."

He walked when he was told

to walk

and rested when he was

told to

rest,,

half past five in the afternoon had his 47>^ tons loaded on the car.
And he practically never failed to work at this pace and to do the task that
was set him during the three years that the writer was at Bethlehem.

and at

Throughout this time, he averaged a little more than $1.85 a day; whereas
he had never received more than $1.15 a day, which was the ruling wage at
One man after another was picked out and
that time in Bethlehem.
.

trained to handle pig-iron at the rate of 47^^ tons a day, until all of the pigiron was handled at this rate, and all of this gang were receiving sixty per
cent more wages than other men around them.

and extended investigation concerning the

human energy and labor by motion study
made
has been
independently of Mr. Taylor by Mr. Frank Gilbreth, whose discoveries in the field have already cut down the
very

brilliant

elimination of waste of

effort of the labor of bricklaying two-thirds.

...

SCIENTIFIC

MANAGEMENT

8ll

These extremely simple processes of bricklaying and carrying

have been selected as instances of the procedure of Scientific Management, because they reveal one of its most
illuminating

pig-iron

Management makes an

Scientific

qualities.

art of

all

work.

It

most primitive manual task its right dignity, and turns

knowledge, science, and the powers of direction from the position
gives the

of tyrants of labor to that of its servitors.

Scientific

Management,

besides eliminating waste in

then,

human

energy, or rather by way of eUminating this waste,

eliminates waste in equipment, waste in machine power, and
evolves through an extended planning department such better
appliances, such an improved program of work and recording
work as has been only very imperfectly indicated

of individual
here.

"

...

But

Mr. Taylor, in speaking of the methods of

"
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
these," said

Scientific

"
the finest the present writer has ever heard.
By a man's
I
mean
his
best
of
use
his
prosperity,
highest powers."
It

study

be asked, after the eflSciency of workers has been

may

increased

by

scientific study,

what provision

for their increased compensation.

at the Bethlehem Steel

is

made by

scientific

While Mr. Taylor was

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 predeter-

mined amount be accomplished

principles are these

"A

^
:

in a certain time.

Its general

each piece of work

and the determination of the best method and the shortest time
in which the work can be done."
1.

scientific investigation in detail of

"A

teacher capable of teaching the best methods and

shortest time."
2.

Work, Wages and

Profits, pp.

no

to iii.

H. L. Gantt.

8l2

SCIENTIFIC
"

3.

Reward

successful."

MANAGEMENT

both teacher and pupil, when the

for

latter is

II

About

ago Mr, Gantt was consulted concerning the

application of Scientific Management in a New England Cloth
five years

The

Finishing house.

on the eve
this strike

of a strike

and

its

installation of the

new system here began

lost.
The history of

which the workers

causes

these facts concerning it

strike started among the

not a part of this account.

bear upon the present subject.
is

men

Only

The

then folding 155 pieces of

cloth a day for $10 a week on week wages, and asking for ten
per cent increase of wage without increase of output. The women
folders'

wage on

lighter

folders,

work was

$7.50.

As

will

be seen, this

The wage was

request was met by Scientific Management.
increased far beyond ten per cent.
The output was increased,
both by improved mechanical methods, and by a standard of
from 447 to 887 pieces a day. The engineers
Management had not on either one side or the other

more expert work,

of Scientific

to

any part whatever

in the strike.

But undoubtedly one of its

by the rumor that a

contributing causes was a distrust aroused

new system of work was to be inaugurated.

The Cloth Finishing establishment bleaches,

starches,

and

calenders dimities, muslins, percales, and shirtings, and folds and

wraps them for shipping. The factory has good light and good
air and an excellent situation in open, lightly rolling country.
About two hundred young women, Americans, Scotch, English,
and French Canadians are now employed here on the bonus and
task system, most of them whom I saw living with their families
in very attractive houses in pleasant villages near.
One or two
were on the gloomy, muddy Uttle streets of a French Canadian

These girls, too, were in well-built houses and not

But all their surroundings were
crowded conditions.
At
the
Cloth Finishing factory and
and
disagreeable.
dingy
mill town.

living in

While the bonus system as a means of compensation has been used very often
Management, it must not, however, be supposed
In
that this method of compensation is alone and in itself Scientific Management.
1

in connection with the Scientific

fact,

as employed without Scientific

apprehension.

Management,

it is

to be regarded with

some

SCIENTIFIC

MANAGEMENT

813

both the other establishments, every opportunity for the fullest

inquiry among workers as to the result of the system for them was
Difficulties in the industry
workers were frequently pointed out by managers; and
the addresses and names of the less well-paid workers and those

offered

by the owning companies.

for the

in the harder positions

were supplied as freely as information

about the more fortunate

and that
through

effects of the system.

Both

this firm

of the cotton mill are anxious to obtain first class

first class

work

working conditions as rapidly as trade condi-

tions will allow.

The

first

process at which

women

are

employed

is

that of keep-

The
ing cloth running evenly through a tentering machine.
the hooks of the metaphorical
machine holds on tenter hooks
the damp cloth brought from the process of bleachr
reference

and rolls it through evenly into a drier, where it slips off.

There are two kinds of tentering machines.
At one kind two
an
of
each
the
cloth
and
watching
girls sit,
edge
keeping it straight
it
will
on the tenter hooks, so
feed evenly.
The newer machines
ing,

run in such a manner that one

girl

who may

either stand or sit

can watch both edges.

Because of the nearness of the drying
the
air
would
be
hot
and dry here but that outside air is
closet,
driven in constantly by fans through pipes with vents opening
close to the workers.

The tentering machines used to run slowly. This slowness

enhanced the natural monotony and wearisomeness of the work.
The girls used to receive wages of $6 a week, and to rest threequarters of an hour in the morning and three-quarters of an hour
in the afternoon, with the

same period

for dinner at

noon in the

middle of a ten-and-one-half hour day.

ment was introduced, the

girls

After Scientific Managesat at the machine only an hour

and twenty minutes at a time. They then had a twenty-minute

rest, and these intervals of work and rest were continued throughout the day by an arrangement of speUing with " spare hands."
The machines were run at a more rapid rate than before. The
girl's task was set at watching 32,000 yards in a day; and if she
achieved the bonus, as she did without any

difficulty,

she could

SCIENTIFIC

8 14

MANAGEMENT

earn $9 a week.
The output of the tentering machines was
increased about sixty per cent.

The

machines praised the bonus system

eagerly.
They said they could not bear to return to the former
method of work; that now the work was easier and more interesting than before, and the payment and the hours were better.

One

girls at the tentering

of the

"

spare hands

"

showed me, as a memento

of a

new

era at tenter-hooking machines, the written slip of paper the

efl&ciency engineer had given to her, explaining to her how to
"
"
rest
with a difarrange the intervals of rest, and to start the
ferent girl

a five-hour day
so that the
on each Saturday
would not have three intervals of rest every Saturday.

same girls
But in another part of the factory the girls at the tentering
machines had wished to lump their rest intervals and to take
them altogether in fifty-minute periods in the middle of the
"
"
morning and of the afternoon. Here the spare hands intervals at the machines fell awkwardly, and they were obliged to
work for an unduly long time. The girls became exhausted with
the monotony in these longer stretches of work; and further
wearied themselves by embroidering and sewing on fancy work
Here the girls were much less contented
in the long rest periods.
than in the other departments.^
After the cloth is dry and passed through calendering machines
where men are employed, it is run into yard lengths by a yarding
machine or " hooker." At the yarding machines the girls stand
under the frame holding the wooden arms that measure off the

The workers here used to earn $7.50

and forth.
watch
the
machine, mark defects in some kinds of
They
cloth, by inserting slips of paper, stop the machine when the
material runs out, and Uft the pile of measured cloth to a table
where it is taken up by the cutters and folders and inspectors.
After the bonus system was introduced at the machines where
cloth back

a week.

the heavier material

is

measured, the yarding machines were

elevated to small platforms, so that the pile

when

finished

all

would

The work in this department was, besides, rather slack at the time of year
when I visited the factory, and wages for some of these workers were $6 a week, as
^

low as they had been before the bonus was introduced.

SCIENTIFIC

MANAGEMENT

815

level with an adjacent table, and the worker need not lift
and carry the heavy weight of cloth to the table, but could slide
The machine was run more rapidly. The task was
the work.

be on a

increased to about 35,ocx5 yards, or from about 155 pieces to

about 610. The wage with the bonus was now about $10 on full
time,

and the hours were lessened 45 minutes, as at the tentering

machines.

The worker stops the yarding machine by throwing her weight

on her right foot, on a pedal to the right. The girls interviewed
said they did not feel this as a strain, as there

was a knack in

On

doing
consulting a neighborhood physician it was
found that within the last ten years, however, several women,
it easily.

both at the yarding and tentering machines, had strained themselves, probably by the tread at the yarding machine and by the
slightly twisted seated position

necessitated.

process of

The number

the older tentering machines

of these cases traceable to

any one

The

work had not increased under the new system.

whole number of these cases in the factory had, on the other

hand, either decreased under the new system, or else had not
come under this doctor's care. He believed, however, that there

was a reduction

of the cases,

and that

this reduction

was

attrib-

utable to the better general health achieved by shorter hours,

better ventilation, and better working conditions and appliances.

The

increased task at the yarding machine seems to have

increased the danger of accidents.

A knife extends from the
side of the machine; and when the girl's attention is concentrated

on her work, she sometimes puts her fingers too near the blade,
and cuts them, though no instance was known here of the loss
of a finger or of serious injury.
The girls stand all day at the yarding

machine and at most of

These are various
"
book
inspecting, counting yards, folding in

the succeeding processes of preparation.

arrangements of
"
"
of the
folds," of doubled-over material, or
long folds
width, ticketing and stamping, tying selvages together with
thread, or tying

them

to

wrapping paper by means of a

instrument called a knot-tier

this process is called

full

silk

little

knotting

tying with ribbons, pasting on strips of silver tissue ribbon,,

8l6

SCIENTIFIC

MANAGEMENT

further ticketing and stamping, and running the sets of tickets

indicating the several yards in each piece through an adding
machine, which then produces on a stamped card the total

number

of yards in each consignment, before it is finally rushed

for shipment.

away
The

process of inspection is different for different qualities of

material.
Before the material is bleached, the number of yards

and the character

of treatment for each piece are specified on

orders
issued from the planning room and sent with the
stamped
cloth through the processes of production.
It may as well be
said here, that several girls have been promoted from manual

work

to work in this planning room, where. they stamp orders,

on a bonus at different rates, giving them a wage of about $io a
week in full tirae on office hours of 8 hours a day.^
The inspector receiving the bales from the yarding machines
now counts off the number of yards and cuts the bale in accor-

ance with these directions.

Some

material she inspects yard by

After marking the yards on the

for imperfections and dirt.

cut piece, she sends it on to the folder if it is clean, and if it is
spotted to girls who wash out the spots and press the cloth.^ On
other material, imperfections are marked by the girl at the yard-

yard

ing machine,

has

less to

by the

insertion of slips of paper.

do on these

pieces, she

As

the inspector

not only counts and cuts, but

folds them.

Before the introduction of the bonus system, one girl used to

She used also to carry her material
fold, inspect, and ticket.

from a table near the yarding machine.

Boys now bring the
material except where at the yarding machines for heavier stuffs
The hours, as for almost all of the
it is pushed along the table.
bonus workers, have been shortened by 45 minutes. The wages

which were $7.50 a week are now between $10 and $11 on full
Almost all the workers here said they greatly preferred
time.
the bonus system and would greatly dislike to return to other
work.
^
The girl who directs them and issues the orders receives a bonus for every
stamper earning a bonus and earns on full time from $12 to $15.
2
But it is
These girls are not employed under the bonus and task system.
interesting to observe that they may either sit or stand to iron, as they prefer.

SCIENTIFIC

MANAGEMENT

817

But in dealing with the heavier materials the work was tiring,
and more tiring under the new system than before, as the number
of pieces lifted had been increased.
It was said while there was
every intention of fairness on the part of the management in
arranging the work, it was sometimes not evenly distributed in
slack times, the same girls being laid off repeatedly and the same
girls chosen to work repeatedly instead of in alternation.
In the further processes of folding, some of the work and the
lifting to the piles of the sheer,

book-folded stuff

is light,

but

requires great deftness; other parts of the work and the lifting
to the piles are heavier.^
The wage before the bonus was intro-

duced was $7.50 a week, and with the bonus rose to $11 a week,
the inspectors, the work was now brought
and the hours were shortened by 45 minutes.
Here there was great variation in the account of ihe system.
One of the folders on light work, a wonderfully skilful young
woman, who had folded 155 pieces a day before, and ;iow folded
887, could run far beyond her task without exhaustion and earn
as much as $15 a week.
She and some of the expert workers
in full time.

As with

to the folders,

paused in the middle of the morning for 10 or 15 minutes' rest

and ate some fruit or other light refreshment, and sometimes took
another such rest in the afternoon.

Another strong worker, employed on heavy material though

"
she liked the bonus system, and said
it couldn't be better," had
remained at work at about the same wages as before, because
j

she was a

little ahead of the others before and earned $8 a week

and now, as there was hardly more than enough of her kind of
work to occupy her for more than four days a week, she still
;

earned about $8.

One folder was made very nervous by a constant fear that she
would not earn her bonus. She always did complete the necessary
amount; but when the system was first introduced, she had been

Though this sleeplessness had passed

took a nerve tonic to brace her through her work
and this was the case with another folder. The mothers of both
sleepless night after night.

away, she

still

The men

folders at the heaviest

$14 to $17 a week.

work here now receive with the bonus from

8l8

SCIENTIFIC

them to return
and ends
the new system.

these girls urged

poor

odds
quality

persisted in

MANAGEMENT
to

week work.

and

But

this

the girls disliked

was of
and

it,

In tying ribbons around the bolts of material, the girls sit at

Their wages had been $i a day for tying ribbons around
600 pieces; and now, on a bonus for 1200 pieces, is at times for

work.

But the ribbon tying was not

quick workers, as high as $11.
work.
It
is
to
applied
steady
only some of the material, and the

The girls who knot, or

threads through the selvages, paste on tinsel ribbon, and
wrap are younger than the other workers. Their wages before
had been from $5.80 to $6 a week. Now they are in some cases
task and bonus here are intermittent.

run

silk

over $8; in others about $7; in others about $6.

The work
reaches them in better condition than before.
said
it was
They

more interesting, and the chief difficulty was in lifting occasionally

a greater number of heavy pieces in piling.
Seats were provided
for these workers except for those at tinselling; and if they found
they were able to complete the task

At

the heavier work, the

ticketer, all

bonus,

all

In the

girl

easily,

they sat at the work.

at yarding, the folder, knotter, and

if the
girl at yarding loses her

worked tandem, and

the girls lose the bonus.

stamping tickets and ticketing, the girls

work without one superfluous motion, with a deftness very attractive to see; and both here and at book folding justify the claim
last process of

made by

Scientific Management that speed is a function of

The
quality.
wages here had been $6 before, and were now in
full time from $9 to $10.
As the task before had been combined

with various other processes, it was, as in other cases, impossible

to determine how much the work of each worker had been

The present task was that of ticketing 39 bundles of

each
5 pieces
hourly, with different rates for different amounts of
But at the tickettickets, and was not considered at all a strain.

increased.

ing connected with the adding machines the work was not differentiated so carefully.
More of the heavy work came to these

and the lifting was sometimes too exhausting. But

the work was better than in former times, and the wages of from
ticketers,

SCIENTIFIC
$9 to $10 were thought
the heavier

work

just,

here.

if

MANAGEMENT

819

a higher rate had been added for

work described at the tenter hooking, the yarding, the

folding, inspection, and ticketing was of a different character
from that carried on under the bonus and task system in a large
room where sheets and pillow-cases were manufactured. This
work afforded the only instance of an appUcation of Scientific
All this

Management

to the processes involved in the great needle trades

of special interest.

and was, on that account,

The white

brought on trucks to the girls, who tear it

into lengths, in accordance with written orders received with each
consignment.
They snip the cloth with scissors, place the cut
cloth

is

against the edge of an upright knife, set at a convenient height

on a bench, and pull the two sides of the cloth so that the knife
tears through evenly to the end; then they stamp the material,
fold it over, and place it on a truck to be carried to the machine
The weekly wages before the bonus was introduced had
sewer.
been $5.98 and were now with the bonus $6.75, though workers
sometimes tore more than the 11 90 sheets required by the task
and made from $7 to $7.50 by a week's work. The quick workers
occasionally stopped for 10 or 12 minutes in the morning and ate
a light lunch.
The task was severe for the muscles of the hand

and forearm, and apt to cause swollen fingers and strained wrists,
though the girls bound their wrists to prevent this. All the work
was done standing. The loosened starch flying here was annoying, both to the tearers and the girls at the sewing-machines.
Since the time of the inquiry, all the girls engaged in tearing
have been relieved and transferred to other positions, and the
work of tearing has been done by men.
Here the sheets are turned back and hemmed by workers who
sew tandem, one girl finishing the broader hem and the other the

narrower one, their task being 620 sheets a day. The girls at the
machines formerly earned $7.50, and now earn with the machine
set at the higher rate of speed from $8 to $11.
They stop for 10
machines
and clear away
in
the
and
clean
the
minutes
morning,
the

litter

around them.

The sewing and

stooping are monot-

820

SCIENTIFIC

MANAGEMENT

onous, and the work on bonus here is apt to cause nervousness,

because of uncertainty occasioned by frequent breakages in the
machines.^

There

is

were to

a room at one side of the department, where the

rest

when they had completed

their tasks.

girls

But the

present foreman, not understanding the system, comes to the

rest room and hurries them out again, even after the 620 sheets
are finished.^

who used

to

One
run

of the girls in the

department, an ItaHan

beyond the task at the machine, had

far

girl,

fallen

under the strain of the work, or at least left the factory looking
extremely ill and saying that she had broken down and could not

ill

remain.

Another unfortunate

machines

is

result of the speed at the sewing-

that the girls are more apt than before to run the

needles through their fingers.

The

folding in this department is also exhausting, and the

management is trying to find a better system of conducting this

The folders here stoop and

process than that now employed.
The
pick up the sheets and fold them lengthwise and crosswise.
task is 1200 a day; and the wage with the bonus comes to
between $6 and $7 a week. But after the bonus is earned, payment is, for some reason, not suitably provided on work beyond

the task.
One worker said she used to fold one or two pieces
above the amount without any objection, but lately she had
folded as many as 200 beyond, without payment.^

From

the folders the sheets are carried

away

to a mangle,

where they are folded over again by young girls.

The work is
of
to
for
but
the
$6
payment
$5.80
770 pieces an hour is
light,
low.
The mangle is well guarded. By an excellent arrange1

A worker does not lose her regular wage if she is stopped bj^ a breakage.

time card

is

altered.

she has credit on a time basis for the period while the
A breakage in the first machine of a tandem pair stops

machine is not running.

both sewers. But a breakage in the second means that work
sewer,

and

unless she

Her

And

makes

it

piles

up

for the second

up, she will prevent her companion from earning

a bonus, though not a time wage.

2
The management, on learning

of this, said the practice

would be stopped at

once.
'
Mr.
This must have been due to a misunderstanding of the Gantt bonus.
Gantt's arrangement provides for payment for work in excess of the task set on a
Ed.
piece rate basis determined by the earnings at the task point.

SCIENTIFIC

ment

here, the material

is

MANAGEMENT

piled

on a small

82 1

elevator, so that the

mangle does not have to stoop or lift, but easily adjusts

the elevator, so that she can feed the mangle from the pile at her

girl at the

convenience.
is

The

not tired in any

at a mangle can earn from $7 to $8 and

by her work.

girl

way

stamping and wrapping in paper and tying with

cord are done at a rate of 25 pieces an hour, for a wage coming to
$6 a week, by young girls; and the situation is otherwise about the

The

final

same as with the other wrappers.

Except at the mangle, the operation of the sheet and pillowcase factory was unsatisfactory to the management, who had
to study the department for reorganization just before
the time of the inquiry.
Competition had so depressed the price
of the manufacture of sheets that the commission men, for whom

begun

these processes described were executed, paid 25 cents a dozen

This does not, of course, include the initial
sheets for the work.
It means, however, that all of the following
cost of the material.
kinds of machine tending and manual labor on a sheet were to be

done

for

2}4 cents:

Book-folding (women workers)

Wrapping (women workers)
Ticketing (women workers)

Tearing (men workers)

Hemming (women workers)
Folding (women workers)

Mangling (women workers)

The management
felt

the

lost in its

work was too hard

payment

for its workers,

for labor here,

and yet

and should be changed.

For
Alterations in the rest periods are now being introduced.
the girls the system of operation at the time of the inquiry in the
sheet and pillow-case factory, except on the mangle, was undoubtedly more exhausting than the old method, though their
wages had been increased and their hours shortened.

In general in the Cloth Finishing establishment Scientific

Management had

increased wagesIt had shortened hours.

In regard to health and fatigue, outside the sheet factory,

the general vague impression that the new system was more
exhausting than the other was sifted down, the grist of fact

when

remaining was small, and consisted of the instances mentioned.

822

SCIENTIFIC

MANAGEMENT

young women told me their experience of the work.

mothers and their fathers talked with me about
it.
one
whose
health had suffered under the new task
Every
had been exhausted by some old difl&culty which had remained

About

forty

Sometimes

their

This point will be considered in relation to the

industry of the other women workers in the other houses after
the accounts of their experience of Scientific Management.

unremedied.

IV
There are over 600 workers in the New Jersey cotton mill.
Of these 188 are women. One hundred and ten of the women
workers are at present engaged under the bonus and task system,
though the management expects to employ eventually under this
system all of its workers, and is in this establishment markedly
in

sympathy with

Scientific

Management.

The

mill is a large,

well-lighted brick structure, with fields around it, and another

The
factory on one side, on the outskirts of a factory town.

establishment

is

composed

of a larger

and newer well-ventilated

building, with washed air blown through the work-rooms; and

an older building, where the part of the work is carried on which

necessitates both heat

and dampness

to prevent the threads

from

breaking.

The

cotton,

which

is

from Egypt. It
the last of which

is

it

comes into the

from our southern sea-coast and

of extremely fine quality,

picker building in great bales

fed into the first of a series of cleaners, from

issues in a long, flat sheet, to go through the

processes of carding, combing, drawing, and making into roving.

The carding product consists of a very delicate web, which, after

being run through a trumpet and between rollers, forms a

"
"
of the size of two of one's fingers, from which it issues
sliver
is threaded into a machine
and rolled out again in one stronger
strand; and this doubling and drawing process is innumerably
repeated, till the final roving is fed into a machine that gives it a
There are three
twist once in an inch and winds it on a bobbin.
kinds or stages of twisting and winding roving on these machines,
"
and at the last, the speeders," women are employed.

in a long strand.

This strand or sliver

with other ends of

slivers

SCIENTIFIC

MANAGEMENT

823

Up to this point all the workers have been men. These

speeders are in the carding rooms, which are large and high, filled
with great belts geared from above, and machines placed in long
Hulanes, where the operatives stand and walk at their work.
midifying pipes pass along the room, with spray issuing from their

The lint fibres are constantly brushed and wiped up by

the workers, but there is still considerable lint in the air.
The
the
whir
of
the
heaviness
of
the
the
heat,
machines,
atmosphere,
vents.

and the

lint are at first

overpowering to a visitor. While many

grow accustomed to these conditions,

of the girls say that they

others cannot

work under them, and go away

sometimes a few hours'

after a few days* or

trial.*

The speeders stand at one end of a long row of 160 bobbins and
watch for a break in the parallel lines of 160 threads, and twist
The greater number of
the two ends together when this occurs.
But two or three women,
the speeders used to earn $6 a week.
on piece work, earned about $9 and did nearly twice as much as
The speeders had

the other workers.

them

to thread the

back

the bobbins in front.

minutes.

helpers

who used

to assist

machine and to remove and place

The change or " doff " occupied about 20
of the

It generally occurred five times in the

day

of the better

worker and thus consumed an hour and forty minutes of her

working time. The hours in the cotton mill are ten and a half

a day with five and a half on Saturday,

58 hours a week.
In order to ascertain the proper task for the speeders, a time

study was made of the work of one of the abler workers,

*

"

dust.

The cotton
.

Lint

as
is

it

grows in the

given

field

who may

becomes more or less filled with blown

up to and including spinning.

off in all processes

to keep down the dust in all of these operations is by frequent sweeping and mopping the floor and wiping off the machinery." Report on
Condition of Women and Child Wage-earners in the United States. Vol. I, p. 365.

The only

"

practical

way

What

degree of moisture is safely permissible from the standpoint of the

When the operative after a day's
is an unsettled question. .
work in a humid and relaxing atmosphere goes into one relatively drier, the assault
on the delicate membrane of the air-passages is sharp. The effect of these changes

operatives' health

greatly to lower the vital resistance and make the worker especially susceptible
to pulmonary, bronchial, or catarrhal affections.
It is very possible that the dust
and lint present in the mill have been credited with effects which are due in part to

is

these atmospheric conditions."

Report on Condition of
Vol. I, p. 362.

earners in the United States.

Women and

Child Wage-

SCIENTIFIC

824

MANAGEMENT

be called Mrs. MacDermott, a strong and skilful Scotch woman,

who had been employed at speeding in the mill for 14 years.
Mrs. MacDermott was employed to teach the other speeders

how

The
accompHsh the same amount in the same time.
the
back
of
the
machines
with
her
thread
Mrs.
help.
girls
MacDermott, the speeder tender herself, and the doff boys, all
working together, remove the bobbins and fill the frame, thus
to

now

accomphshing the change in

minutes instead of 20 minutes.

The

girls are paid, while learning better methods from Mrs. MacDermott, at their old rate of a dollar a day. If they accomplish
the task allotted, they receive a dollar a week more fiat-rate, a

bonus equivalent to a few cents a pound on each pound received

by the management; and this brings the wage to $1.65 a day,
The work tires the girls no more
or between $8 and $10 a week.
than it did before.
They receive about thirty per cent more
and
the
management receives from the speeders nearly
wages,
Mrs. MacDermott's wage
twice as great an output as before.
been
raised
to
has
as a teacher
$12.

From

called fine
the speeders, the dofif boys send the roving
in
the
other
in
because
the
mill,
rovings
preceding
operaroving
tions are coarser
upstairs in the older building to the spinners.

task than speeding.

Two rovings
The spinners have
are here twisted together by the machines.

Spinning

is

a more

difficult

104 bobbins on one side of a frame, and watch for breakage, and
"
sides."
Spinners
change the bobbins on three frames, or six
formerly worked at piece work rates and by watching eight sides,
and frequently doing the work very imperfectly, would earn

about $9. After a time study was taken, the task was set at six
With the bonus the
sides, and doffs as called for by a schedule.
In
about
the
comes
to
$10.
spinning departgirls' weekly wage

ment

there

is

The heads receive a dollar

a school for spinners.
who learns to achieve the task and bonus.

for every graduate

The yarn is carried from the spinners to

wound from bobbins to spools for convenience

the spoolers, and

in handling.

The

work of the spool tenders seemed to the present writer to be the

The bobbins run
severest work for women in this cotton mill.
out very rapidly, and require constant change.

The

girls

watch

SCIENTIFIC

MANAGEMENT

825

the thread for breakages just as at the other machines.

In replac-

ing the bobbins and fastening the broken threads with a knot tier,
the girls have to stoop down almost to the floor.
Before the

time study was taken, the

were watching 75 bobbins, hurrybending up and down perpetually at

girls

up and down the sides,

work.
Some of the spool tenders had $6 a week on piece
work; others, more experienced workers, were able to earn
$10.50 at piece work, although the work was frequently unsatisA little Italian girl, who may be
factory and had loose ends.
ing

this

called Lucia,

an extremely rapid worker, used to run wildly

from one end of the frame to the other, and in the summer-time
fainted several times at her work from exhaustion. A time study
was taken from the work of a very deft young Polish girl, and from
Lucia.

The

rapidity,

and were soon able

other spoolers were taught to work with the same

to earn with the bonus and the work

done beyond the task a sum which brought their wage up to

nearly $12 a week.

But the work was

This lasted for about two months.

improperly done and the spools were so

so

and untied
be tended was reduced

full of

loose

ends, etc., that the number of spindles to

from 75 to 50, and the machines were run at a lower rate of speed.
The task was changed accordingly so that the worker's wage,

But she was

simply with the bonus, was as it had been before.
unable to overrun the task as far as she had formerly.
By the
workers' constant attention, the work now improved in quality,
but the limit of quantity, was, of course, lower. The wages with
the bonus dropped back to a smaller excess, or $1.47 a day.
This was, of course, disheartening, though Lucia said it was
better, she was so much less tired by the work than she had been

But the work is still undoubtedly very wearying and

The spoolers still give incessant attention to their
still
do
their best, and yet make by close application far less
work,
had
than they
grown accustomed to expect whether justly or
each doff requiring
The task is now 12 doffs a day
unjustly.^
before.

difficult.

a change of 208 bobbins.

'

Besides,

wages.

work had

lately

S9 that in changing bobbins alone the

been slack, and

this

had further decreased the

826

SCIENTIFIC

MANAGEMENT

have to stoop down over 2000 times a day, without counting

the stooping for knot tying, which the forewoman said would
about equal the labor of bending and working at bobbin changing.

girls
all

She had talked with the management about having the frames
raised, so as to eliminate this exhausting process of stooping to

work

for the spoolers.

machines and

This change had been made in two

be extended.^

will doubtless

the further twisting and plying of the cotton, the processes

From these the
succeeding the spooling, men are employed.

At

yarn goes to the winding room in the newer building, where better
air and temperature are possible than in the carding and spinning

The winding room

is large and light.

At one side stand
to
and
with
their lines of
the warps, very
see,
interesting
In the winding room
delicate filament and high tiers of bobbins.
machines
which
wind
at
the
are
engaged
yarn from spools
girls
back to bobbins for filling in the looms and also for the warp.
In winding the filling bobbins the girls watch the thread from
eighteen bobbins, and replace and stop bobbins by pressing on
The worker had made from $7 to $7.50 a week
foot pedals.
She can
before a time study was taken and the task increased.
now make from $8 to $10.50 a week. The work is lightened for
her by the fact that whereas she formerly placed the bobbins on
the warp, doffers now do this for her. But the increased stamping

rooms.

tall

of the pedals made necessary by the larger task is very tiring.

There are no women on bonus in the weave room, where the

warp and the filling are now carried. After the woven product
an extremely heavy, strong
comes from the weaving room
stuff of the highest grade, used for filter cloth and automobile
it is hung in a large finishing room in the newer building
tires
over a glass screen lighted with sixteen electric lights which shine
through the texture of the material and reveal its slightest defect.

has been rolled over the screen,

by needlework.
remedy

After

it

it is

sent to girls

who

these defects

Since visiting the New Jersey cotton mill, the present writer has seen spool
work at a machine requiring no stooping, and provided with a board

tenders at

below the bobbins, placed at such a height that the worker can relieve her position
while standing by resting her weight against the board, above one knee and then

above the other.

SCIENTIFIC

MANAGEMENT

827

It is again run over the lighted screen by the inspectors and

Before the bonus
returned to the girls if there are still defects.

system was applied, the girls had made $5.04 a week, and finished
about 5 rolls a day. After the system was applied, they made
from $7 to $8 and did sometimes 10 and sometimes 12 rolls a
But, in spite of the greatest care on Mr. Gantt's part in
standardizing the quahty in this department, here, as with the
day.

had recently caused a

This change in requirement was

spool tenders, requirement as to quality

temporary drop in wages.

occasioned, not as at the spool tending by the negligence of the

workers, but by the somewhat unreasonable caprice of a customer.
Knots in the texture, formerly sewed down as they were, are

now

To learn this process meant

cut and fastened differently.
work for the girls, and put them back temporarily

just as hard
to their old

day

rate,^

sufficiently quick in the

though they were recently becoming

process to earn the bonus as well as

new

before.
large, the wages of the women workers in the cotton
had been increased by Scientific Management.
Their hours had not been affected. These were in all instances
io>^ a day and 5^2 on Saturday. There was no overtime. But
on five nights in the week, women preparing yam for the following day worked at speeding and spinning from six at night until
six in the morning, with half an hour for lunch at midnight.
This arrangement had always been the custom of the mill. The

By and

mill

go home at

six for breakfast, sleep until about half

past four,
and
have
rise, dress,
supper, and go to work in the mill again at
six.
The night workers I visited had worked at night in other
mills in New England before they worked in New Jersey.
Their
sole idea of work, indeed, was night work; and if it were closed

girls

in one mill, they sought it in another.

One

of the youngest girls,

a clever Httle Hungarian of 17, who had been only 3 years in this
country and could barely speak EngHsh, knew America simply as
a land of night work and of Sundays, and had spent her whole
life here like a little mole.
The present owner, the superintendent,
*

and the head

of the planning

At the same time work was

so slack that

department

all

seriously dis-

week wages had dropped

to $3

and

I4.

SCIENTIFIC

828
liked night

work

dispense with

it.

output so as to

MANAGEMENT

for women, and said they were anxious to

But they had not been able to arrange their
make this change, though they intended to

as rapidly as possible.
the
health and conservation of the strength of the
Concerning
women workers in the mill under Scientific Management, the

inaugurate

it

and of the women at cloth inspection tired

In the spool tending and
the girls no more than it had before.
the winding, as the two most exhausting operations in each
process, the stooping and the stamping of the pedals had been
task of the speeders

by the heightened task, the exhaustion of the workers

was heightened. But the work of the excitable little spool tender
mentioned was finally so arranged as to leave her in better health
than in the days when she was employed on piece work, and the
management was now endeavoring to eliminate the stooping at
the bobbins. At spinning almost all the spinners found the work
increased

easier than before, probably because Scientific Management

demands that machine supervision and assistance shall be the
best possible.
It must be remembered that the adjustment of
Almost all
conditions in the mill here is comparatively new.

"
the girls said:
They don't drive you at the mill. They make
It was of special value to observe
it as easy for you as they can."
the operation of Scientific Management in an establishment

where

all

the industrial conditions are difficult for

women.

As

in the white goods sewing for the Cloth Finishing estabhshment,

these industrial conditions are unfortunately controlled to a great

by competition and by custom for both the employer and

employees. The best omen for the conservation of the health

extent
the

of the

women workers under

Scientific

Management in

the cotton

was the entire equity and candor shown by the management in facing situations unfavorable for the women workers'
health and their sincere intention of the best practicable readmill

justments.

SCIENTIFIC

MANAGEMENT

829

V
The application of Scientific Management to women's work in
the Delaware Bleachery was very limited, extending only to
employed in folding and wrapping cloth.^
The factory, on the outskirts of a charming old city in Delaware,
is an enormous, picturesque cement pile, reaching like a bastion
along the Brandywine River, with its windows overlooking the
wooded bank of the stream.
about 12

The

girls,

girls

all

stand in a large room, before tables piled with great

and stamp tickets and style cards, fasten them

raw edges of the material in a lap, tie
two pieces of ribbon around the bolt, wrap it in paper, stamp and
attach other tickets, and tie it up with cord to be shipped. Here,
after a time study was made of the quicker girls in all the operations, different tasks were set for diflferent weights of material;
and if the task was accomplished, a bonus was paid, amounting,
bolts of material,

to the

roll, fold over the

speaking, to a quarter of the worker's hourly wage.

of the different processes was so different for
each worker, after and before the system was installed, that none

roughly

The arrangement

of the girls could

compare the

different

amounts

of

work she

completed at the different times. But the whole output, partly

through a better routing of the work to the tables, and by paying
the boys who brought it a bonus of 5 cents for each worker who
made her bonus, was increased from twenty-five to fifty per
cent.

The

girls'

hours were decreased from

overtime up to nine at night to g]4

a-

10^

a day with frequent

day with no overtime, the

Here

Saturday half-holiday remaining unchanged.

is

list

of

week wages. The work at the time of the

Sometimes there were only a few hours in the
day of wrapping of a kind on which the task and bonus was
applied. Besides, these workers were in the midst of an establishthe changes in the

inquiry was slack.

One

of the girls issues batches of tickets.

Another

girl

unfolds one end of

certain of the packages, and inserts a ticket and stamps an outside label, to accord
with the invoice system of some of the purchasers. These girls had received before

$5.40 and $4.84 a week, respectively, and

between $5 and $6.

now

receive, the

one $5.73, and the other

Per Week

SCIENTIFIC

Even

MANAGEMENT

831

considering slackness, these increases per week for firstand work, though in many cases the work was light,

rate speed

cannot but seem small.

All the girls lived in attractive houses

The
and pleasant places.
People of all grades of income go to
city has an open market.
market properly with market-baskets, choose food of excellent
The
quality, and have fresh vegetables through the winter.
ladies of the house, the girls' mothers, preserve fruit from June
strawberries to autumn apple-butter, and exhibit it proudly in
All but one were with their families.

row

after

row

of glass jars.

for such living conditions.

But the girls' wages could not pay

The girl who was boarding, and whose

wages were sometimes $5 a week, could not always pay her board
bill and had almost nothing left for other expenses.*
In regard to health and fatigue the main difficulty here, as at
the Cloth Finishing factory, was in the lifting of heavier pieces of
Two of the girls had suffered, since the introduction of

cloth.

the bonus and task,

them was

of

The

other

at

girl

by
home ill

was away

One
straining themselves in this way.
for a week, and is now quite well again.
for

two months, and though she

now

is

at work, has not fully regained her health.

The company had
at once obtained employment less straining for the first of these
girls,

and the second said that the firm had always been

fair

with

her in arranging the work.

It was said that it had been Mr.
Gantt's intention to have the heavier Hfting done by men and
boys, instead of combining it with the larger tasks the girls now
But the department had
accomplished under the new system.
never fully carried out its intention, and unfortunately since
Mr. Gantt's departure rather more of the heavy material had

been ordered from the house than before.

The general good will of the firm, the picturesque factory site,
the pleasant Vork-rooms, and the attractive living conditions of
the Delaware workers gave them an extraordinary opportunity to
pursue their labor healthfully.
adoption. Scientific
*

AH

But because

Management, though

the firms have rest rooms for the

girls.

it

of its incomplete

had shortened hours,

The Delaware

firm and the

Jersey cotton mill have pleasant lunch-rooms, where an excellent lunch

at cost.

is

New

provided

SCIENTIFIC

832

MANAGEMENT

most cases had

raised wages, had proven of less potential

value to the workers than to those in the more diflSdilt industrial

and

in

situation obtaining in the cotton mill.

VI
In general, then,
in this country

may

Scientific

Management

be said as far as

it

women

for

workers

has been applied to have

increased wages, to have shortened hours, and to have resulted

fortunately for the health of women workers in some instances

and unfortunately in others.

Wherever a process presented a

difficulty

which remained

the task were multiplied, the difficulty, of course,

unremedied,
was multiplied. No matter how greatly the weight of a wagon
if

is

lightened,

road

is

now

if

there

is

a hole in the road of

its

passage, and the

to be travelled sixty times a day, instead of

times, as before, the physical difficulty

from

this hole is

twenty
not only

trebled, but while it may be endured with patience twenty times,

This,
is not only a muscular, but a nervous strain at the sixtieth.

was the situation in regard to all unrelieved heavy lifting wherever

cloth was manipulated, the situation in regard to the stooping
for the spool tenders, the stamping at the winding machine, and
But these
the stooping and breakages at the sewing-machine.
points, instead of being ignored by the management, were seriously
regarded by the employers as inimical to their own best interests
in combination with those of their employees,

and in

all

the

establishments were in process of adjustment.

In the present writer's judgment this adjustment would have

been inaugurated earlier in several processes and would have been

more rapid and effective for both the employer's interest and that
of the women workers if the women workers' difficulties had been

Such an
clearly specified through trade organization.
in
also
be
of
value
would
preventing danger of
organization

fairly

and

injury for workers whose attention under Scientific Management

should be concentrated on their tasks, and of value in supporting
the tendency of Scientific Management to pay work absolutely

according to the amount accomplished by the worker, and not

under a certain specified rate for this amount.

SCIENTIFIC
Scientific

country
history
of the

is,

is

MANAGEMENT

833

as applied to women's work in this

This synthesis of its short
61 course, very recent.

Management

collected

from the statements made by about eighty

Gantt, and by the owner, superin-

women workers, by Mr.

tendent, and head of the planning department of the cotton mill,

by the superintendent and one of the owners of the Cloth Finishing factory,

and the superintendent and one

of the

owners of the

The account should be supplemented by

Bleachery.
general observations.

The

first is

that

it is difficult

to determine

several

where the health

of

worker has been strained by industry and where by other causes.

Quite outside any of the narratives mentioned were those of two

young women employed under Scientific Management whose

Both of these poor girls were
health was hopelessly broken.
and
maltreatment
at home.
to
Indeed,
oppressive
subject
wrong
from oppression at home, one of the girls had repeatedly found
refuge and protection in the consideration shown to her by the
establishment where she worked. It was not she who blamed the
new way of management for her breakdown, but people whose
impression of her situation was vague and lacked knowledge.

The whole tendency

of Scientific

Management toward

truth

about industry, toward justice, toward a clear personal record

of work, established without fear or favor, had inspired something
really new and revolutionary in the minds of both the managers

and the women workers where the system had been inaugurated.
Nearly all of them wished to tell and to obtain, as far as they could
Almost no
the actual truth about the experiment everywhere.
one wished to

"

make out a case."

This expressed sense of candor

and cooperation on both sides seemed to the present writer more

stirring and vital than the gains in wages and hours, far more
serious even than the occasional strain on health which the
imperfect installation of Scientific Management had sometimes
caused.

These strains on women's health in industry in America

stooping and

monotony

in all the needle trades,

pedals in

machine tending, dampness and heat

tion, the

standing without pause for

many

jumping on

in cotton produc-

hours a day through-

MANAGEMENT

SCIENTIFIC

834

out the month, the

distribution

all

lifting of

in packing

heavy weights

these industrial strains for

womdn

and

in

constitute

grave public questions affecting the good fortune of the whole

nation and not to be answered in four years, nor by one firm. It
is

undoubtedly the tendency of

all

Scientific

Management

to relieve

these strains.

No one can see even

factory work,

in part the complications of

the hundred operations of

contemporary

human hands and

muscles required for placing a single yard of cotton cloth on the

market, the thousand threads spinning and twisting, the thousand
shuttles flying, the manifold folding

and

and refolding and wrapping

tying, the innumerable girls working, standing, walking

these whirring wheels

and twisting threads and high

by

piled folding

is indeed an industrial
and
that
the
conditions
of
civilization,
industry not only completely control the lives of uncounted multitudes, but affect in
some measure every life in this country today.
No finer dream was ever dreamed than that the industry by
which the nation lives should be so managed as to secure for the
men and women engaged in it their real prosperity, their best
use of their highest powers. By and large, the great task of common daily work our country does today is surely not so managed,
either by intent or by result, either for the workers or for the most

tables,

"

without feeling strongly that ours

successful

ment
will

"

owners of dividends.

How

far Scientific

Manage-

go toward realizing its magnificent dream in the future

be determined by the greatness of spirit and the executive
will

genius with which its principles are sustained by all the people
interested in its inauguration, the employers, the workers, and the
engineers.

SCIENTIFIC

AS VIEWED FROM THE

STANDPOINT
WORKMAN'S

MANAGEMENT

What the Men thought

of the Methods used in a

its
Production by Modern
that
increased
Shop
Methods of handling Men
Reprinted by pennission of Industrial Engineerinf

In the oast few months there has appeared

in the

columns of

Industrial Engineering considerable material on the scientific

management of labor, its effect on the efficiency of the shop, and
the benefits that will accrue to all hands by the adoption of its

"

milithan by adherence to the older type of

with
the
dealt
been
written
Much
that
has
management.

principles, rather

"

tary

Stress was laid on the fact

question from the employer's side.
that he could increase the quality and quantity of his product
without the addition of new machinery. It was also stated that
scientific

management would

this last

statement

many

totally eliminate labor troubles; of

owners and managers are probably

and perhaps with reason.

It does, at first sight,

appear
improbable that a workman could be required to turn out from
two to three times as much work as formerly, and have him
skeptical,

remain contented at the same time.

skeptic of such a statenow

are
entitled
to
ment is fairly
proof.
prepared to offer it.
In proving the statements as to the contentment of the worker,

We

the employer's word need not be accepted.

We

his statements in regard to increase of product,

can safely take

and

of quality of

work, but for proof that the methods used to obtain this increase
This
are not burdensome we must go to the men themselves.
the writer has done.

The Link-Belt Company, having shops

at Philadelphia, Chi-

cago and Indianapolis, operates these shops wholly under the

In the main, the so-called
principles of scientific management.
"
"
Taylor System is in use. Modifications of the original system
have been found advisable. One of the fundamental principles
83s

SCIENTIFIC

836

MANAGEMENT

of scientific

management is that all planning of the method of

doing a job shall be done by a man, or men, especially trained for
the work, and not by the man at the machine.
Another is that
the

minimum

time required to do a certain piece of work be

The man is then given an instruction
accurately determined.
card telling him exactly how to do the work, and the time required for each piece if the instructions are followed. If the man
does each piece in the time specified or less, he is given a certain
If he takes longer than the time specified, he is
price per piece.
given another, and

Taylor
is

calls

the

"

much lower, price per piece.

differential piece rate

"

This is what Mr.

plan of

payment, and

the principal method used in the Link-Belt shops.

It was the writer's privilege, recently, to spend considerable

time in the Philadelphia plant investigating the workings of the

As he was
system of management there used, and its effects.
at one time, several years ago, and before the present scheme of

management was

installed, employed in this same plant, he was

compare with some accuracy the results obtained under
the old and new systems.

able to

The

company were most emphatic in their

statements as to the value of the new order of management,
which has now been tried for over five years. From his knowlofficials

of the

edge of previous conditions in the shop, which even in the earHer

days was one of the best managed in the country, the writer
could see that from the employer's standpoint scientific manage-

ment was an unqualified

He, however, was most

was immediately suggested
by the superintendent that he get the information at first hand
from the men themselves. He was allowed to wander around the
shop and question the men at will.
It is interesting to note that the men do not know of any parcurious as to

its effect

success.

on the men.

It

system of management in the shop. They know that if

do
what is expected of them the earning rate is high, and if
they
they do not, the earning rate is much lower.
They refer to
ticular

"
two-rate piece work."
system as
all
conversations
with the men led back to the subInvariably

differential rate

ject of the

pay envelope, and

in every case the

man

volunteered

SCIENTIFIC
the information that

it

MANAGEMENT

was the amount

of

837

money he

received on

pay day that interested him. He did not object to working in

any particular way desired by the boss, provided that he was
He soon learned
able thereby to receive a fatter pay envelope.
that he could turn out the greatest amount of work by following
the instructions given him, rather than
Therefore, as one workman put

own.

so as to get the
I

most money, and the

by
it,

trying methods of his

"
I'm doing the work

boss's

way

is

the best

way

know."

men. The burden of the

work steadily; they had to
pay strict attention to business; they had to follow the instructions given to them; but they made more money than they could
in any other shop the bosses helped them the company treated
them square, and you could not drive them out of the shop with

The

writer talked with

talk of all

many

of the

was the same; they had

to

a club.

was that with one of the lathe hands.

was rated at 28 cents per hour. He stated
"
"
his earnings were as high as
two-rate piece work
that on the
hour.
as to how much more he
to
cents
Questioned
45
per
43
"
I
turned out at piece work than if he was on day work he said,
it's
been
a
time
since
I
was
know.
You
see
on
don't
long
day
work, and on piece work we don't slow down any, for then we
might get into the low rate, and we would make but little more
than we do on day work." Asked then if he was not afraid that
"
if he made high wages the rate would be cut, he replied,
No,

typical interview
This man, at day work,

They never cut the rate. If they make

made a little more than they wanted us to,
they take their medicine and there's no kick coming." And be it
known that when you have got a workman to say that the comthe company's square.

a mistake and we

pany

is

square,

you have obtained the

last

word on

the subject.

And the squareness of the

no higher praise possible.
most
factors
in scientific manageis
one
of
the
important
company

There
ment.
"

is

We

shall

have more to say on

"

this later.

they make a mistake the

they give us a job and figure on taking

But," continued the workman,

if

If
other way, they fix it.
two cuts over it, and we find the casting

is

made

large, so that

we

SCIENTIFIC

838

have to take three

cuts, or is

MANAGEMENT

hard so that we can't run as

fast or

take as heavy a cut as they want us to, or if anything happens

that they didn't think of, so that it takes longer than they

He
would, all we have to do is to tell the gang boss.
to
the
and
make
a
new
rate
on
the
ofl&ce,
puts
up
they
job.
The mistakes are always on the company and not on us, if we do
thought

it

it

as they

want us

to."

It will

be well to keep in mind the above

a great extent the duties of the

It will explain to

paragraph.
"
"
to appear later.
demonstrator
The workman was then asked if he had to work

much

harder

work than he would if the whole shop was on day work,

"
"
to which he replied in the affirmative.
it's
But," he added,
this way: it is rather steadier than harder.
I'm after the coin;
I'm going to work where I can get the most. If I could get more
over at Midvale ^ than I can here, I'd quit and go over to MidI don't mind
vale, even if I had to work harder than I do here.
I get more money for doing it than I would if I was
the work.
on day work some place else, so I'm staying right here as long
at piece

make good." This statement led to the question as to

how soon a new man was expected to " make good " at the
as I can

It
necessarily high pace that was the standard in the shop.
of
that
was
to
become
plenty
opportunity
transpired
given
New men are put on
accustomed to the existing conditions.

day work

for

from four to

six

weeks, until they catch the

spirit of

They are then put on piece rate, and the incompetent

If they cannot maintain
automatically weed themselves out.
the place.

the standard

they make a very low rate per piece, and posthan they would at day work in a shop where the

set,

sibly earn less

average speed of working is lower. They therefore leave of their

accord, and it is seldom necessary to discharge a man for

own

inefficiency.

Consequently, aU the

standard, probably

much

men

average up to a high
above that found in most shops in

Philadelphia.

The man was then blimtly asked if he would rather be on piece

work than on day work
they are sometimes put on day work

if

the job has not been standardized, or

*

Midvale

Steel

if

no time study

Works, an adjoining plant.

of its

SCIENTIFIC
conditions has been

long face
that.

was

and he

on a fellow on day work

his

Why,

there

made

MANAGEMENT

nothing in it."

"

If you saw the

week you wouldn't ask
thin that you 'd think

replied,

for a

pay envelope looks

839

so

From which

it

may

be inferred that

the piece work system, if conducted rightly, is not the unmixed

evil it is often claimed to be by some misguided persons.

The man was next questioned

as to spoiled work.

It de-

he spoiled a piece, he was expected to replace it

i. e., he was not paid for the time
on his own time
required to
veloped that

make

the

if

new

He was

piece.

also asked

if

there

was much work

This subject was deemed important, as

spoiled.

it

has been

claimed by opponents of advanced systems of management that

the high speed required of the men is subversive to accuracy.

The workman pointed

out, clearly

and

forcibly, that

he spoiled

In
place, he couldn't afford to.
very
the second place, in order to make the high rate he had to attend
very strictly to his machine, and he did not allow his attention to
little

In the

work.

first

His instruction card told

be distracted while he was working.
him plainly what to do, and if he followed instructions he could
This testimony was later confirmed by the

not go wrong.
superintendent,

higher than

it

who

stated that the quality of work was much

In answer to a question as to
formerly was.

whether he was any more fatigued at the end of the day than
formerly, when he did not have to maintain such high speed, the

man

said he did not think he was.

He

said, that

he was kept so

day that he did not have time to think of being tired.

Quitting time came before he thought it was near due. Finally,
busy
the

all

man

expressed himself as being thoroughly satisfied with his

job, and convinced that he was much better off than before the
company began to pay him the way it was now doing.

Conversations with other

same

men brought out

practically the

They took pride in their

They
and
to
be
of
the fact that they were
seemed
work,
especially proud
employed in the Link-Belt shops.
are

facts.

all

Mention has been made

the duties of the

"

contented.

in

one of the previous paragraphs of

It is necessary under the

demonstrator."

system used in the Link-Belt shops that when the time in which

MANAGEMENT

SCIENTIFIC

840

a piece of work is to be performed is fixed and the instruction

card bearing this time is issued to the workman, the company be
prepared to demonstrate to any workman that the work can be
done in this time. The writer had related to him by the demonstrator

an incident which showed the value

The demonstrator
sets the rates

on

in this case also

the

all

work

happened

of this provision.

to be the

man who

in the shop.

The incident related by the demonstrator was as follows: A

new turret lathe had been installed and it was decided that a
certain piece to be made in quantity should be manufactured on
The rate setter had had no opportunity to run
this machine.
the machine in question or to make any time studies on it. However, from his knowledge of how the job had been done in other
machines and from his general knowledge of machine work, he
put a time of 23 minutes on the job. The card was issued to the

workman

early the next morning, giving instructions for this job

and showing him the time in which it should be performed. The

demonstrator was prevented by illness from showing up at the
shop the next morning. The next day, when he appeared, he found
considerable trouble in the shop.

been assigned declared that

minutes.

He had

intendent

who were

appealed to

absence of the rate

much

disturbed.

it

The man to whom the job had

was impossible to do it in 23
the gang boss and to the super-

powerless to change the time set in the

setter.

The workman was

naturally very
the gang boss were
one of the best workmen in

The superintendent and

somewhat stirred up, as the man was

the shop and they desired to aid him.

They suggested that the

workman that
time allowed.
The rate setter, who

rate setter either revise the rate or convince the

the job could be done in the

the demonstrator, after a short conversation with

now became

the workman, said that although he had never run the machine,
he was sure that he (the demonstrator) could do the work in the

The workman offered to bet him that he could

The demonstrator took him up and
On the first trial he made the piece in 23)^ minutes;
started in.
on the second trial he made in 22 minutes; and on the third trial
The man who had been closely watching the
in 19 minutes.
time allowed.

not do

it

in three trials.

SCIENTIFIC

MANAGEMENT

84I

motions of the demonstrator, then told him to get away from the
machine, that if he could do it in 23 minutes, he was sure that he
On his first trial he made the piece in
(the workman) could.

and subsequently, reduced the time to 17 minutes,

which is now about what he usually requires on this job
The rate setter declared that 23 minutes was a very bad estimate on his part, and that if he had known the machine better,
it would probably have been lower.
In many shops the temptation in this case would have been to
cut the rate so that the man would have been regularly required
The fact that this has not been
to do the work in 17 minutes.
done shows that the company thoroughly appreciates the necessity of acting fairly by its men and maintaining a rate when it
The fact that the company maintained
has once been made.
this rate and others of like class, convinces the men that they have
nothing to fear by working at their maximum pace and turning
21 minutes

out the greatest possible quantity of work.

They know that
in no case will they be compelled to call the maximum rate,
attained under probably exceptional conditions, the ordinary
Because they
rate to be attained under any and all conditions.

thoroughly understand the necessity of keeping faith with the

men is one of the reasons why the Link-Belt Company is able to
retain in its

employ such a

large

body

of exceptionally fine

mechanics, while working them at a much swifter pace than

the case in most every other shop in the country.

is

PREFACE TO THE FRENCH EDITION OF "THE

PRINCIPLES OF SCIENTIFIC

MANAGEMENT "

BY FREDERICK W. TAYLOR
By HENRI LE CHATELIER
\

TRANSLATED BY ELEANOR BUSHNELL COOKE

The author of this volume, Frederick Winslow Taylor, is the

well-known inventor of high-speed tools his discovery has revo:

lutionized all mechanical construction.

It has doubled

and

tripled the output of machine tools, while increasing in the same

This remarkproportion the daily production of the workmen.

able increase in production and the corresponding decrease in the

cost of the output, have produced very important economic con-

sequences, of which the following

others.

is

an example, among many

An American company, The

was preparing

to double its

Pennsylvania Railroad,

machine shops, when the unexpected

appearance of high-speed tools made it possible for them to double

their output at a single stroke, and thus to abandon their plans

In other places the economies effected through

high-speed tools have brought about profound changes in the
old methods of work, reversing, for example, the relative imporfor enlargement.

tance of forging and finishing.

mechanical construction and

Many engineers engaged in

many mechanics are familiar with

and appreciate their importance.

After having exercised such an influence on the evolution of
modern industry, the ideas of the great American engineer should
these facts

command some

He

attention.

attributes to his principles of

scientific management in machine shops a still greater importance

In the face
than to that of the discovery of high-speed tools.

of such a claim

on

his part, it

would be unreasonable

to refuse

new methods with

the greatest care.

It is obvious
absolute
one
can
claim
even
no
after great
that
infallibility,

to study these

accomplishments.
tion in favor of the

Former

successes, however, create a

man who

has
843

made them.

presump-

SCIENTIFIC

The dominant

MANAGEMENT

843

idea of Frederick Taylor aims at an increase in

the product of labor, without increasing the fatigue of the workman; and this increase in output leads invariably to a large
increase in the man's wages.
result because the

output

It is possible to accomplish this

workman depends in all cases

of each

on a very considerable number

ables, to speak in

of independent factors, or variIn the case of turning

mathematical terms.

metals in a lathe, for example, Frederick Taylor has shown that

the minimum number of these variables is twelve, each having

an important bearing on the final result.

Confronted by this
is
that
the
workman
it
evident
cannot, by
complex problem,
mere guess work, discover for himself the most favorable conditions for the execution of the tasks assigned to him.

To

estab-

adapted conditions for lathe work, elaborate slide

rules have been found indispensable.
The study of the working
lish these best

most imp)ortant of the author's accomplishments, has cost more than $200,000 and required twenty-five
years of work.*
of metals, one of the

Even the simplest shop operations are difficult to plan properly

and are beyond the capacity of the workman.
For example,
the simple operation of loading pig-iron into cars involves very
The alternations of rest and

delicate physiological problems.

labor, the rate of speed of each motion, the weight lifted at

each

effort, considerably modify the fatigue incident to a given task.

systematic motion study Mr. Taylor has succeeded in quadrupling the production of his workmen, without material increase
of fatigue.
He has made it possible for them to load 47 tons

By

day after day, year after year, instead of the 12^ tons which
had been their accustomed daily stint when left to themselves,
In like manner, a
while at the same time doubling their pay.^
mason habitually makes five times as many motions as are necessary, when handling his bricks and mortar and laying them in
A study of bricklaying made in Philadelphia and carried
place.
on for several years made it possible to produce in a given time
nearly three times as much work as formerly.
*

See the introduction to Taylor's

Ed.
book, p. 242.

"

Art of Cutting Metals," republished in this

This should be "increasing their pay sixty per cent."

SCIENTIFIC

844

MANAGEMENT

The

opinions advanced in this book will certainly shock a

great many employers, and a still greater number of workmen,
because they are opposed to current ideas and prejudices. Fred-

advance of his age;

reason for the closest examination of his ideas.
erick Taylor is manifestly in

Scientific

has for

and

management

its essential object,

or

work

all

the

more

in industrial establishments

the increase of individual productivity,

opposed to the cherished ideas of the

Their chief concern is just the opposite,

this is diametrically

labor unions of today.

namely, to limit the output of every

workman, so as to assure
work to a greater number of men, and thus to limit the number
of the unemployed.
Is it unreasonable to ask them to ponder
a little over these problems, to study them at closer range, to
devote a few hours of leisure to the reading of this little book ?
In looking over the daily papers and the records of the Chambers
of Deputies about the year 1840, the reader would appreciate the
alarm occasioned by the introduction of railroads. It was feared
that they were going to throw large numbers of people out of
work; to take the bread from the mouths of all teamsters and
diligence drivers, and to ruin agriculture by eHminating the use

The peasants were not the only ones to express these

men occupying important positions in business
educated
fears;
and politics shared their apprehensions. In spite of these pessiof horses.

number of horses and carriages in use is

no labor union would dream of advocatToday
increasing.
railroads.
elimination
of
the
They all see too clearly what a
ing
means
of
this
communication
has played in the
quick
large part
mistic prophecies, the
still

increase of general wealth

among

all classes

and

of society.

in the

development of prosperity
Are they then sure that they are

not making the mistake of repeating the errors of their forefathers under another form, in opposing, as they are now doing,
the development of better and quicker methods of production ?
To all workingmen reading these words, one may say in good
faith.

Stop and think!

The manufacturers

are making an entirely different type of

to
the
Taylor methods.
They state that their appliobjection
cation demands conditions that are not only very taxing, but

SCIENTIFIC

MANAGEMENT

also exceedingly diflScult to realize.

charge of the

workmen who know

more or

less

Foremen must be put in

manual trade as thoroughly

and yet the young engineers of today

looked down upon by the skilled mechanic. At

as their subordinates do

are

the

845

the same time, in order to apply efficiently the Taylor methods,

these engineers must be thoroughly trained in scientific methods

In fact they are required to measure, almost

of great precision.
to the fraction of a second, the time which the workmen placed

under their authority take to make each motion, to move a foot

If manufacturers,
All this seems very complicated.
state
of
to
the
look
back
will
however,
manufacturing at about

or an arm.

the time

when

railroads were first introduced, they will see a

from that of today; infinitely

very different type of organization

more

simple, infinitely less complex.

There were at that time

any engineers with scientific training; no laboratories, and

Withthe rule-of-thumb sufficed for everything that was made.
few

if

out a moment's hesitation, employers of that period would have

considered it foUy to install in manufacturing establishments
either chemical laboratories or laboratories for mechanical experi-

And yet
still less those for physical research.
these laboratories are found everywhere in the great

mentation; and

today

industries.

engaged

in

In some shops more than a hundred employees are

work of this type. In the same way manufacturing

now generally directed by scientifically educated engineers.

Will not this development probably lead the Captains of Industry
is

to ask themselves whether the use of the methods of precision

recommended by Taylor for studying the work of their employees,
will not become in the near future as indispensable as chemical

One
is today for the purchase of mineral products ?
can say to them, as to the workingman, Stop and think!
Right now, manufacturing is going through a serious crisis.
During the last century, it attained a degree of expansion abso-

analysis

lutely unforeseen, thanks to the help of the experimental sciences,

mechanics, physics, and chemistry.

During a few years

it

made more progress than had been made in all previous history.
But this forward movement is beginning to slacken; the incessant struggle between capital and labor hinders further progress

SCIENTIFIC

846

MANAGEMENT

and menaces even the results already attained. To escape from

this critical situation and to resume their forward march, manufacturers will have to apply themselves to the solution of the
labor problem, and to this end they must call to their aid the
economic and social sciences. The application of these sciences
would seem to be as important for the development of public
wealth in the future as that of the physical and natural sciences
has been in the past. Now, according to Mr. Taylor, his system
for the organization of labor would give an almost complete solution of the problems affecting the relations of capital and labor.
There have never been either strikes or serious labor difficulties
It would be
in the shops where this system is in operation.
worth the trouble to verify on the spot such a surprising fact.
This would be an easy matter for manufacturers, as they are

new types of
not send them also to study new methods of
The workingmen, for their part, should com-

constantly sending their engineers abroad to study

machines:

Why

management

mission the representatives of their unions to

make a

similar

investigation.

The

incessant struggle between capital and labor, which has

reached an acute stage today, has two very distinct causes:

first, the natural perversity of man which impels him to do the

harm

to his neighbor, either by robbing him of

his good fortune, or for the simple pleasure of evil doing; and
this ignorance of his own real
and more happily
second

greatest possible

interests.

The

track walker

who throws

out a switch in order to wreck

a train and to

kill as many people as possible is a veritable vandal,

instincts as the negro among the uncivilized
same
the
obeying
natives of Africa, who slay for the pleasure of seeing the blood
run.
The speculator, who manipulates the stock market so as

to ruin a laboring or agricultural district, the manufacturer who

deteriorates the quality of his goods and cheats his customer,

man who speculates with and loses the funds enhim by his too confiding clients, have the same type
of mind, and cause the same troubles, the same wrecks in society.
From time immemorial the average morality of men has hardly
the business
trusted to

SCIENTIFIC

The

varied.

MANAGEMENT

847

fear of the police, religious sentiment,

and the power

commimities can temporarily curb these

evil instincts; but as soon as these reins are relaxed, man reverts
This always becomes apparent after a
to the savage state.

custom in

of

civilized

when the power of the police is for the time being suslikewise in any country where authority falls into
and
pended,
We must resign ourselves to living with this tendency
disrepute.
revolution,

towards disorder; while trying to maintain the authority of the

police, cost

what

it

may.

But, in addition to this, the ignorance of

of his real interests is prodigious.

case of the working

man.

man on

Especially

is

the subject
this true in the

Fortunately this ignorance can be

for man is constantly increasing his knowledge.

A
thousand years ago, not a single manual laborer knew how to
read.
Today almost all of them read. But although they do
not yet have the smallest knowledge of the economic sciences,

corrected;

we must

not, however, despair of their capacity to learn.

will surely succeed in

This

Some day employers and workmen

will require earnest effort.

thoroughly grasping certain truths that

simply do not exist for them at the present time. It is impossible

to realize the extent of this ignorance, unless one has actually
come into close contact with it.

have always treasured the remembrance of an incident in

which I happened to play a part at the beginning of my engineering career, when I was in charge of the operation of the mines of
I

One day I received a

the mineralogical district of Besangon.
all
workmen
the
of
the
mines of Ougnee
petition signed by
(Jura).

They appealed

management, and asked

to

my

me as the representative of the

protection from the superintendent

This man had induced them to agree to accept a

for taking out the ore, in place of the old day
work
contract
piece
labor, and had, they said, entirely deceived them, as the new
of the mine.

arrangements were
to

my

less

advantageous than the

old.

In response

inquiry, the superintendent of the mine said:

"

Send

me

at once this petition with your approval, and I shall be only too
happy to act upon it. I had made a mistake in the calculations

which served as a basis

for the establishment of

new

rates,

and

SCIENTIFIC

848

MANAGEMENT

am now

paying my miners wages which are more than 15%

I did not know how to return again
than
the old ones.
higher
to the former schedule, not daring to hope for such a favorable
I

opportunity as this."
Before studying the science of economics, one must believe in
its existence.
Today every one beUeves in the physical sciences.
If

an inventor were to pretend to have discovered the means

of

retarding or hastening the march of the sun, every one would

workmen as well as employers. But in the
laugh at him

reahn of economic

facts, there are

no absurdities that one

may

not advance, with the certainty of finding believers to accept

them. People do not as yet suspect the existence of determinate
relations

between different economic

existence of

what we

call

facts;

natural laws.

that

is

to say, the

In the moral and the

economic world, these laws are complex and difficult to study.

They depend upon a greater number of single factors than in the
material world; yet, like them, they cannot be evaded.
In both
cases the efforts which have been made to transgress these laws

The rulers of the first Republic of

have ignominiously failed.
France believed it possible to procure resources by creating paper
money, the assignats, and giving it forced circulation, but as a
consequence the amounts in paper money demanded for the
smallest purchase constantly advanced until no one could get
anything in exchange for this paper; the severest measures

proved powerless to give it any value;

laws which are beyond the mere whim

credit

is

regulated

of the legislator.

by
For

the same reasons, the Republic of 1848 was not able with its
national ateliers to give employment to all laborers; not even to
Neither will
those who wished to work; still less to the loafers.
the equahzation of all wages, advocated today by certain visionThis also is an impossibility.
aries, ever be realized.

The

general diffusion of the belief in the existence of inevitable

natural laws, that is, the belief in determinism, will constitute an

enormous step
existence

is

in advance, even if these laws whose possible

admitted remain unfathomed. This belief in deter-

minism leads one necessarily

to consider in every case the possiOn the other hand, in the

biHty of attaining the desired end.

SCIENTIFIC
absence of this

belief,

to find the best

tions of unions

MANAGEMENT

849

our efforts are squandered in vain endeavors

means of accomplishing the desired end federaand of employers, political action, etc. Effort
spent lavishly, and society is overturned without
:

and money are

accomphshing anything, whereas a few minutes of preliminary
reflection would often have sufficed to turn one aside from an
impracticable scheme.

When

belief in

determinism shall have become

employers and workmen,

solved.

Then

half

of the social

common with

problem

will

also, the ideas of Frederick Taylor will find

be

many

advocates.

Let us suppose for a moment that the belief in economic determinism has become general and let us try to unravel some of its
Here is one, for example, to begin with, of such extreme
laws.
simplicity that

you

will

say that

it is

too obvious to deserve

more

than a statement.

In

civilized countries

men

they seek all the amenities oj

have a great desire for happiness;

life, and are willing to make strenuous

eforts to procure titem.

Restraint

is

indispensable in civilized countries.

Often the

negroes of the African tribes are satisfied with primitive

homes;
without
clothes
and
have
no
other
ambition
than
to
they go
in
existence
a
the
without
lead
simshine,
vegetative
bestirring
themselves.

In these countries the economic conditions are

exceptional.
On the contrary, in civilized countries the desire to enjoy the
pleasures of hfe, each day more numerous, to possess the good

things in increasing degree, to make more money (for money

it possible to procure in exchange all the coveted joys)
is certainly the most powerful motive to force men into action.

makes

One

is

dumbfounded

at the

amount

of labor accomplished

by

the husbandmen, the small proprietors doing their own work,

when they are sure of not having to divide the reward of their

Here is a fundamental truth; an

labor with any one else.
In spite of its simplicity and its obviousness,
economic law.
it is necessary to call attention to it, because of the consequences
which

it entails.

SCIENTIFIC

850
Here

is

MANAGEMENT

one of the consequences which, in itself, constitutes a

less fixed than the first but, however, less gener-

second law, not

ally accepted.

It is of

paramount importance from the point

of view of the labor problem.

The inhabitants of a given civilized country become twice as rich,

each time they succeed in doubling their productivity because, on
the average, each one then has twice as many useful or agreeable
things to use.

This truth, this law,

need to elucidate

it.

is

so self-evident, that there should be

no

In a country where each inhabitant would

produce all the materials necessary for his needs, no competition

would be possible; the law would then apply equally to savage

and to civilized races.

Formerly, it was so in France;
the peasant produced on his land the grain necessary for his
nourishment; he then ground it to make flour, and he himself
tribes

baked the bread.

it for his

wove

He

winter food.

his cloth;

raised a pig also; he killed it, and salted

He cultivated hemp, spun the thread and

he also grew the wood and the straw necessary

In increasing his pro-

for the building of his thatched house.

duction, as the use of farm machinery today

makes

possible for
The sale
him, he has obtained a greater output for his labor.
of the excess of his production has permitted him to replace the

hovel of his fathers, by a solid house of stone, of concrete and of

His estabUshment in this luxurious house will remain for
slate.

him

the greatest joy of his

future

life,

and compensate him

for all

toil.

Outside of certain mountainous regions,

means of easy communication,

this old

still

deprived of the

type of agricultural organi-

Almost everywhere a specialirarely found in France.

zation of labor has come about, by which it is possible for every
man to obtain greater returns for his effort. The peasant of
zation

is

Beauce prefers to grow corn; the peasant of Normandy to raise

stock.
Neither of them continues to manufacture cloth, because
it can easily be purchased at a much lower cost in the large mills.
This division of labor necessitates incessant exchanges on their
part, to allow each one to accumulate all the varied things considered necessary to comfortable living.

If,

thanks to this

SCIENTIFIC
specialization, our peasants
in producing today, twice as

MANAGEMENT

85 1

and our spinners together succeed

many

useful things as in the past,

each one of them be able to procure either directly or

they
by exchange, twice as much as formerly; they will then have
will

become twice

We

as wealthy.

Where specialimust, however, make a restriction here.

it is not sufficient that an isolated individual double

zation occurs,

become twice as rich; his neighbors must also

would be no one with whom to
of
his
and his increased output
the
labor,
exchange
products
would then be of no use to him. Here we find an essential condihis production, to

do the same,

for otherwise there

tion of the law of the proportion between the increase of production and that of wealth.

In civilized countries, this difficulty never presents itself because of a well-recognized rule not to concentrate one's efforts
on the production of articles of too limited use. One can pursue

without hesitation the multiplication of things used for food, for

the

and

toilet, for

means of transportation, etc.,

raw materials necessary for these industries, such
cement, etc. There is practically no limit to their
construction, for the

of all the

as coal, iron,

consumption.

The

following

is

a very clear illustration of this fact.

In the
no one even suspected the magnitude

of railroading

early days
of the possible ultimate development of traffic;
able, for terms of

comparison were lacking.

seem that the experience

make

of the past

was excusToday, it would

this

ought to render

it

possible

And

yet a
few years ago, at the time of the organization of the Metropolitan
to

Railway

fairly definite calculations in this matter.

of Paris, every one, including the

most able railway en-

gineers, absolutely miscalculated the capacity of the Parisians

for intra-mural travel.

They

figured that they had made more

size of the trains and

than adequate provision, both as to the

the frequency of their running.

No

sooner was the

first line

put into operation, however, than they were forced to recognize

the necessity of doubling the length of the trains.
They have
since multiplied the
all their efforts,

number

of lines in service, yet, in spite of

they have not succeeded in overcoming an

in-

SCIENTIFIC

852

MANAGEMENT

We

credible congestion at certain hours of the day.

often hear
that an increase in production does not necessarily bring about
an increase in consumption; that we must avoid exceeding the
of the consumer to absorb.
In reahty, as demonstrated
the example of the metropohtan railway, there is no limit to

power

by

this

power of absorption.
is no Umit, either,

there

At least in civilized countries, because

to the desire for comforts and luxuries.

It is necessary to proclaim this truth incessantly

and

to

make

the whole world acknowledge it.

As long as this truth fails to be recognized, the ideas of Frederick Taylor will

fail

to be appreciated at their full value, for

their sole object is precisely to increase every

man's power of

production.
Machinery, although very often used without such
methods as will secure its proper output, has already produced

enormous results. Within a century it has increased man's productive power almost tenfold, and hence, increased tenfold his
wealth.
Without making any further change in the machinery

method proposed by Taylor makes it possible for each

workman to double, and sometimes even to triple, his production,
and in consequence to double and to triple the general wealth.
the

itself,

Why
of

is it

which

tested

is

that a law so important, a thorough understanding

so useful, should be so often misconstrued and con-

The explanation must be sought among the multiple

judgment among men. Instead of appealing to ordi-

errors of

common

sense, they either make long calculations, entirely

or
else they allow themselves to be guided by unmisleading,

nary

reasoned opinions.
The first mistake arises from the use of
universal) for the
of

payment

paying in kind.

so far as

it

exchange.

makes

money (which is now

method

of salaries, instead of the old

only serves to satisfy our needs in

possible for us to obtain useful articles, by

Money

it

Today

the

sum

of

one franc represents about 3

kilograms of bread, while at the time of the assignats

For the same
represented less than 30 grams of bread.

franc

amount

spent the actual bread obtained was a hundred times

less then than it is now.
Now, in most cases, the workmen conof

money

sider only the

amount

of

money

that they receive in wages.

If,

SCIENTIFIC

MANAGEMENT

853

were to succeed in doubling their production, -without having their wages increased, they would believe
themselves to be absolutely robbed, and would think that they
for example, they all

had secured no

benefit

from the increase in

their output.

In

same nominal wages, they would have doubled

their income, because, on account of the diminution of the price
of things resulting from this extra output, they would be able,
with the same wages, to buy twice the amount of useful things
reality, at the

for themselves.

The
is

fact, is

however, that the actual dollars and cents received

almost always increased in proportion to the increase of inFrederick Taylor, in his system of scientifijc

dividual production.

management, proposes

workmen who succeed

to increase the

wages 33 to 100%

for the

doubUng or in tripling their production.

This primary difiiculty, concerning the use of money, is not
fundamentally very serious, and it could be satisfactorily exin

workmen with very little trouble.

come now to an objection which is much more serious,
because it does not result entirely from an error.
When the
plained to the

We

daily output of the shops in a given trade is suddenly doubled

by the introduction of new machines and new methods of work,
the inevitable consequence is a disturbance in the market of the

manufactured article; increase of consumption does not at once

follow the sudden increase of production.
Prices fluctuate,

wages must be reduced or some of the workmen discharged, to

avoid too great over-producrion.
The discharged workmen,

who

are obliged to learn a

new

trade, as well as those retained

sometimes with reduced wages, suffer obvious hardship.

It is
of
the
labor
unions
are
this
loss
the
efforts
directed
that
against
in a desire to limit the production of all of their

members;

it is

against the same difficulty that the employers also league themselves in their trusts, when they impose a limit to the production
of each of the allied shops.

Both the employer and the workman are laboring under a

common
The

misapprehension, but one that is easily understood.

reduction of prices is, however, not the result of over-

production, for the capacity for absorption of a civilized country

SCIENTIFIC

8S4
is,

as

we have

MANAGEMENT

already indicated, almost infinite:

the

damage

from too sudden and too violent fluctuations in the

of production.
Men, and associations of men, can-

results simply
rise

and

fall

not suddenly change their conditions and their habits, any more
than a violently hurled stone can be stopped or its course suddenly
deflected, without producing shocks or serious accidents.

All

sudden change in an economic condition is destructive; the

diminution of production, indeed even more than its increase.

To understand

this, it is sufiicient to

brought about by decreases, however

duction of food

have

stuffs.

Consumers

note the social upheavals

insignificant, in the prosuffer

keenly from

it,

as

by reaction, the producers whose stores have been

This happened during our first Revolution, and can

often,

pillaged.

be seen

still

in France,

on the very day on which

I write these

lines.

We

an absolute law. In the same way, temporary

bound to follow whenever new legislative measures

see here

suffering

is

are put too suddenly into execution, changing the regime of commerce or of industry: particularly is this true of any new tax
If manufacturers and meror of a change in customs duties.
chants, however, are too often the first to provoke these economic
disturbances by unreasonable demands, it is because they cherish

the hope, frequently mistaken, that the loss

their competitors

may

all

be borne by

When they demand protection

and neighbors.

manufactured products, they too frequently make it

their business at the same time to prevent the according of the
same advantages to the articles they consume, whether they be
for their

raw or manufactured
All the economic

materials.

ills

imputed

are in reality occasioned solely

the changes are accomplished.
It

is

by the undue haste with which

The damage would be practi-

the changes were made with extreme deliberatherefore an absolute and a serious error, from the

cally negligible
tion.

to the increase of production

if

view of both the general and the individual welfare, to

on opposing an increase in production. The only concern

point of
insist

need be to properly regulate the speed with which the change

made

is

in order to reduce the necessary losses, and, in the last

SCIENTIFIC

MANAGEMENT

855

analysis, to accept cheerfully an inevitable temporary inconvenis negligible in view of the positive
advantages which

ience which

come

to all of us as a result of the increase of wealth.

In the

application of economic laws, sufficient time should always be

given for their establishment on a solid foundation, whether they

be labor legislation, customs duties, or whatsoever.
Of all

economic disturbances, these two are perhaps the most dangerous, because by their very nature, they can be made instantaneOn the contrary', in the case of an improvement in
ously.

methods of production, that is, of the development of better

machines and the perfecting of methods of work, this inconvenience is generally greatly reduced, because, from their very
It often
nature, these improvements can only be made slowly.
requires more than ten years to bring a new manufacturing
many times have an inventor's
process into successful use.

How

patents, though legally valid for a period of fifteen years, become

public property before they have had any considerable practical

This was the case, for example, with the SiemensMartin process for the manufacture of steel.
It will be the same a fortiori with the application of the scientific methods of work advocated by Frederick Taylor.
In the
application!

fifteen years since the first publication of these principles, the

number

have put the new methods into use is

probably be another fifty years before they

of shops that

negligible;

it will

come

into general use; their application therefore need occasion

no apprehension.
Every progressive reform tending to increase production is
free from serious danger because, on one hand, the managers
have time to study the general trend and to adapt themselves
to its final consummation, and on the other hand, the constant

coming and going

to discharge

ductivity.

of

workmen

them so as
At most, it

men day by

day,

if,

at

to

in the shops

compensate

makes

it

unnecessary

for their increase in pro-

is enough to hire a smaller number of

any given time, the consumption in an

behind the production. Finally, the manufactured

accumulate in the shops are not lost; the normal
which
products
demand for them is so great that they disappear very rapidly;
industry

falls

SCIENTIFIC

8s6

MANAGEMENT

is completely renewed
every
a
ten or fifteen years.
By progressive evolution, all of the necessary changes can thus be made without any serious damage or

in certain industries the plant itself

loss.

last difficulty, really the

most

serious of

all,

arises

from the

between the
workmen and the employers, between the producers and conquestion of the equitable division of the profits

sumers.

One

have already
ing alone on

of the characteristics of civilized races

is,

as

we

said, the disappearance of the small proprietor livhis land, and producing all that he needs to live.

Specialization and cooperation have increased the productive

power of man enormously; the great factories, with their many

workmen,

their engineers, their selling agents,

stockholders, have made

it

and

their

moneyed

possible to reach a production per

capita out of all proportion greater than the results obtained in

It is impossible to recede from
the past by individual workers.
this new type of organization; we must accept then one of the
inevitable inconveniences of the new conditions, the necessity

for sharing the profits of the joint

accomplishment.

Each

of

the two parties wishes to have the lion's share and this greed at
times surpasses every other with the employer, as well as with
the

workman;

it

prevents their giving proper attention to other

considerations often far

more important.

The workman

hesi-

tates to increase his output, for fear of seeing his employer profit
it more than himself, and the employer, remembering the
hard years, fears to raise the wages of his employees, even when
the increase in their production makes it possible for him to do
At the same time, the owner of the business for once in
so.

from

accord with his fellow workers, refuses to reduce his selling price,
even when the increase of production diminishes his cost price.
It is painful to him to contribute too directly to the enrichment
of the consumer.

This question of the division of profits

ment

in the labor

problem to-day.

alike wish to secure greater happiness;

is

the most serious ele-

Employer and employee

each wishes to reap the

Now, as we said in the

greatest possible reward for his labor.
beginning, there are two ways to increase one's personal riches;

SCIENTIFIC

MANAGEMENT

SS7

either to seize the largest possible proportion of the profits resulting from the work done in common, or to produce more,

while keeping the percentage of division constant.

Human
nature is so constituted that it attaches much more value to
gains of the

first

kind than to those of the second, while they are,

by
important of the two.
Let us take the industries where the capital is large, and of
such a nature that its returns can reach a total equal to the pay
in fact,

of the

far the less

workmen.

In spite of the efforts of certain Utopians the

workmen will never succeed in wresting from capital the full

amount of the profits, unless all the shops could shut down from
and production, and in consequence wealth in
would dwindle to nothing.
Perhaps they will succeed
some day in taking half of the actual returns now received by
capital.
They will first have to become better informed; they
must first learn to understand and discuss a cost price, and they
must not allow themselves to be tossed about by fair words;
doubtless they will wait long for this Golden Age to come.
If

day

to day;

general,

this time ever arrives,

dustries,

but

they will then, in these exceptional in-

have increased their share of the

this increase will

industries where

be

much

more than 25 %,
the very numerous

profits

smaller in

wages play a predominant part in the cost of

While this small gain on the part of the workman

has been slowly wrested from his employer, industrial improvemanufacture.

ments and the increase of the individual production of the workwill have perhaps increased tenfold again the wealth of
About this enormous gain they do not conevery one of them.
cern themselves: they do not even suspect its existence.
The most elementary common sense demands the abandonment of prejudices concerning these two ways of increasing individual wealth.
Employer and employee, of course, must

men

continue to defend their right to their proper share resulting

from the work done in common, for from the day on which either

one would cease to protect himself, he would be sure of being

But for all that, the far
absolutely robbed by his co-partners.

more important consideration

of the increase of production

must

SCIENTIFIC

858
not be forgotten.

On

MANAGEMENT

this point the essential interests of the

employer and of the workmen are

them

easy for

identical,

and

it

ought to be

to cooperate.

They should do just what many producers and consumers are

now doing who know how to work together for their common
For example, although in France manufacturers of
and the engineers of the great metal working companies are

interests.
steel

in constant warfare with their customers, the railroad companies,

and although they do not easily agree on selling prices, on the

terms of contracts, nor on any of the commercial questions where
yet this does not prevent their
mutually profitable to improve the quality

their interests are opposed:

recognizing that
of steel

it is

and they meet together

cuss these questions.

ground where

in technical conventions to dis-

They wilHngly

ployers ought to do the same.

In a more or less distant future
will surely

ingmen

be generally accepted.

will

fraternize

their interests are identical.

no longer

all

on a vantage

Workmen and em-

these elementary truths

that day comes, work-

When

start a strike because of the introduction

new machines

into their shops; they will do so rather when

their employers are too ignorant or too old-fashioned to increase
their output per man as they ought to by the introduction of

of

the most efficient machines and methods, in this

way

securing

for themselves higher wages, not forgetting of course to

demand

proportionally a

fair

share of the profits for the work done in

common.
The scientific management of our factories and industrial works
proposed by Frederick Taylor is a realization of the essential
ideas here suggested; it demands of the captains of industry
that they apply their knowledge and experience to increasing the
capacity for production of their workmen; and to the workmen
it offers as a reward for their increased output a large increase in

wages, to say nothing of the greater value given to money earned

by the worker brought about through the reduction in the selling price of manufactured articles because of their lower cost
price.

SCIENTIFIC

MANAGEMENT

859

But to attain this end, the belief in economic determinism

must first be made general, and the acceptance of the law must
be general, that an increase in output means an increase in
wealth.

This

is

today the battle to be won.

In the past the

physical sciences have increased tenfold the riches of the world;

in the future the economic sciences will perform again the same
miracle.

BIBLIOGRAPHY OF
SCIENTIFIC

MANAGEMENT

BIBLIOGRAPHY OF SCIENTIFIC MANAGEMENT

By
The (oUowing

C.

BERTRAND THOMPSON

references with the exception of those printed in italics are cited in the
"
on "The Literature of Scientific Management in this volume.

article

I.

Development and Theory of Scientific Management

American Society of Mechanical Engineers: Majority Report of Sub-Committee on Administration on the Present State of the Art of Industrial
Transactions of the American Society of Mechanical
Management.
Engineers,' vol. 34, p. 1131; Minority Report, ibid,, p. 1151; discussion,
ibid., p.

IIS3, vol. 35, pp. 447, 87i.

Aspects of Scientific Management.

Babbage, Charles.

The Economy

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of Manufactures.
Chas. Knight,

don, 1832.
Barth, C. G. Shde Rules as Part of the Taylor System.

Trans. A, S.

Lon-

M.

E.,

vol. 25, p. 49.

Transmission of Power by Leather Belting.

Trans. A. S.

M.

E., vol.

31, P- 39-

Bradlee, H. G.

Consideration of Certain Limitations of Scientific Effi-

McGrawIn Technology and Industrial Efficiency, p. 190.

ciency.
Also Stone
Webster's Public Service
Hill Co., New York, 191 1.

&

Journal, vol.
Brandeis, L. D.

8, p.

323.

Scientific

Management and

ing Magazine Co., New York, 191 1.

Scientific Railroad Management.

the Railroads.

The Engineer-

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p. 62?.

Brewer, C.

Work,

S.

Scientific

Management

in the

Army and Navy.

World's

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CarduUo, F. E. Industrial Administration and Scientific Management.

Machinery, vol. 18, pp. 843, 931; vol. 19, p. i8.
"
"
Scientific Management
Science ?
American MaChurch, A. H. Has
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The Meaning of Scientific

Management.

Engineering Magazine,

vol. 41, p. 97.

Church, A. H., and Alford, L. P. The Principles of Management. AmeriReview of same by D. S. Kimball and
can Machinist, vol. 36, p. 857.
J.

Calder.

Ibid., p. 965.

Report on Industrial Management of United States

Prepared by direction of Hon. George von L. Meyer,
Government Printing Office, Washington, 191 2.
Secretary of the Navy.

Civilian Expert Board.

Navy

Yards.

>

S. M. E.
Majority Report and part of discussion reprinted in this volume.
Reprinted in this volume.

Hereafter abbreviated A.

863

SCIENTIFIC

864

MANAGEMENT

Comment upon Some of the History of the Science of Management. Engineering 6* Contracting, vol. j8, p. i6g.
Carnegie Foundation
Cooke, M. L. Academic and Industrial Efficiency.
Bulletin No. 5, 1910.
Copley, F. B. How it Works: What Manufacturers and Workmen are
{A)

Getting out of Scientific Management.

American Magazine,

vol. 75,

p. II.

The Taylor System Again.

Crissey, F. E.

American Machinist,

vol.

34, p.

1182.

Day, Charles.

Industrial Plants.

York, 191
The Machine Shop Problem.

The Engineering Magazine

Co.,

New

1.

Management

Principles

Trans. A. S.

M.

E., vol. 24, p. 1302.

and the Consulting Engineer.

Engineering

Magazine, vol. 41, p. 133.'

Iron Age, vol. 89, p. 87.
Diemer, Hugo. The Efficiency Movement in 1911.
McGraw-Hill Co., New
Factory Organization and Administration,
York, 1910.
Dow, C. S. Scientific Management. Chautauquan, vol. 66, p. 357.
Educational or Administrative Efficiency ? Engineering Magazine, vol. 40,
p. 606.

Edwards,

J.

R.

Fetishism of Scientific Management.

Journal of American

Society of Naval Engineers, vol. 24, p. 355.

{an editorial). Industrial Engineering, vol.7, p. 463.
{Jhe) Efficiency of Labor

vol. 70, p. 739.

System, vol. ig, p. 37.
Efficiency.
Efficiency as a Basis for Operation and Wages.

Efficiency Program.

Independent,

Emerson, Harrington.

New

ed., revised

The Engineering

and enlarged 191 2.

York, 1909; 3d
Engineering Magazine, vol. 41, p. 23.
The Engineering Magazine
The Twelve Principles of Efficiency.

Magazine

Co.,

Philosophy of Efficiency.

Co., New York, 191 1; revised and enlarged ed., 191 2.

{An) Essay on Scientific Management. London Nation, vol. 11, p. 652. See
discussion by H. G. Selfridge and Dorothea Spinney.
Ibid., p. 766.
Ferguson, B. M. The Application of the Taylor System of Shop Management to Gas Works. American Gas Light Journal, vol. 95, p. 225. Also

Progressive Age, vol. 29, p. 830.

Frederick, J. G. Applying the Science of
trial

Management

to Selling.

Indus-

Engineering, vol. 12, p. 204.

Galloway, L., Hotchkiss, G. B., and Mavor, J. Business Organization.

Alexander Hamilton Institute, New York, 191 2.
Gantt, H. L. Graphical Daily Balance in Manufacture. Trans. A. S. M. E.
vol. 24, p. 1322.1

Industrial Efficiency.

Machinery,

The Mechanical Engineer and

vol. 18, p.

700.

the Textile Industry.

Trans. A. S.

M.

E., vol. 32, p. 499.

Work, Wages, and Profits. The Engineering Magazine Co., New

York, 1910; revised ed., 1913. Reviewed by C. W. Mixter. American
Economic Review, vol. i, p. 103.
1

Reprinted in this volume.

SCIENTIFIC
Gilbreth, F. B.

Scientific

M.

865

Clark Publishing Co., Chicago, 1909.

Van Nostrand Co., New York,

Bricklaying System.

Primer of
1912.
Gilbreth, L.

MANAGEMENT

Management.

The Psychology of Management.

Industrial Engineering,

vol. 12, pp. 13, 65, i'i6, 155, 199, 248;

vol. II, pp. 343, 429;

vol. 13, pp.

18, 66, 113, 161, 213.

Trans. The EffiGoing, C. B. The Efficiency Movement -r- an outline.

ciency Society, vol. i, p. 11.
McGraw-Hill Co., New York,
Principles of Industrial Engineering.
1913-

Guernsey,

J.

B.

Scientific

Management

in the

Home.

Outlook, vol. 100,

p. 821.

The Administration of

Halsey, F. A.

the

Premium Plan.

American

Ma-

chinist, vol. 22, pp. 60Q, 6ji, 6gi.

The Economics of

Premium Plan.

the

American Machinist,

vol.

2j,

p. 418.

The Origin of the Premium Plan.

From

Piece

Work

American Machinist, vol. 25, p. jji

American Machinist, vol. j2,

Premium Plan.

to the

p. 464.

The Premium Plan

Criticised.

American Machinist,

vol.

22, pp. 556,

858.

Some Questions Regarding the Premium Plan tenth Answers to Them.

American Machinist, vol. 22, p. 240.
Halsey, F. A., and Rowan, James. The Premium Plan of Paying for Labor.
"
Trans. A. S. M. E., vol. 12, p. 755. Reprinted as chapter xi in
Trade
"
edited by John R. Commons, Ginn
Unionism and Labor Problems

&

Co., Boston, 1905.

Hoyt, C.

W.

Scientific Sales

Management.

Wooison

&

Co.,

New Haven,

1913-

Jackson, D. C.

Criticism of the Engineering Schools.

Stevens Indicator,

vol. 27, p. 25.

American
Johnson, James R. A Manager's View of the Taylor System.
Machinist, vol. 34, p. 885.
American MaJjnes, H. P. Do Taylor's Methods increase Production ?
chinist, vol. 35, p. 175.

Kendall, H. P. Management: Unsystematized, Systematized, and Scientific.

In Scientific Management, Tuck School Conference, p. 112. 1912.'

Abstract in Industrial Engineering, vol. 10, p. 374.

Kimball, D. S. Another Side of Efficiency Engineering.

Arnerican

Ma-

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McGraw-Hill Co.,

New York,

1913-

LeChatelier, H.
"

Introduction to the French edition of F.

Principles of Scientific Management."

Scientific
Industrial
Operation.
Lyon, Tracy.

Taylor's

In Technology and InMcGraw-Hill Co., New York, 1911. Also

922; and Industrial World, vol. 45, p. 464.

dustrial Efficiency, p. 200.

Iron Age, vol. 87, p.

W.

>

Reprinted in this volume.

866

SCIENTIFIC

Science (n. s.),

Educational and Industrial Efficiency.
on same), Industrial Engineering, vol. 9, p. 216.
The Cost of Manufactures and the Administration of

Maclaurin, R. C.
vol.

^2)}

MANAGEMENT

P- loi-

(Editorial

Metcalfe, Kenry.

Workshops. Wiley & Sons, New York, 1894 (3d ed.).

The Shop Order System of Accounts. Trans. A.

S.

M.

E. vol.

7, p.

330.

Meyers, G.

J.

The

Science of

Naval Engineers,

Journal American Society of

What Elective Organization Means.

Morrison, C. J.
vol.

Management.

vol. 23, p. 994.^

American Machinist,

35, P- 784-

Labor Saving Machinery the Secret of Cheap ProducEngineering Magazine, vol. 12, p. 650.

Outer bridge, A. E., Jr.

tion.

Page, A W. What is Scientific Management ? Frederick W. Taylor's Work.

World's Work, vol. 21, p. 14045.
Iron Age, vol. 88,
Peck, E. C. Systematic versus Scientific Management.
.

p. 364.
Perry, E.

"

"

and the Bvisy Business Man.

Engineering
Magazine, vol. 40, p. 249.
Philbrick H. S.
Scientific Management.
World To-day, vol. 21, p. 1167.
Popcke, A. G. The Relations of Capital, Labor, and Efficiency in Manufacturing.
Redfield,

W.

The

Outsider

Engineering Magazine, vol. 43, p. 857.

C. Scientific Spirit in Management. American Machinist,

36, p. 6l2.
Richards, F. Is

vol.

Anything the Matter with Piece Work ? Trans. A. S. M.

Reprinted in American Machinist, vol. 26, p. 1733.

E., vol. 25, p. 68.

Rowan, James.

Premium System Applied

to Engineering Workshops.

Proceedings, Institute of Mechanical Engineers, March 20, 1903, p. 203.

Reprinted in American Machinist, vol. 26, p. 1383.
A Premium System of Remunerating Labor. Proceedings, Institute of

Mechanical Engineers, Sept., igoi, p. 865.

B. A German View of the Premium Plan.

Schiller,

American Machinist,

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(The) Science of Management Defined,

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neering and Contracting, vol. 29, p. 339.

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Scientific

Management More than a Labor Problem

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(an

Trans. A.

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In-

E., vol. 2,

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Special

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248.
>

Reprinted in this volume.

SCIENTIFIC
W.

Tardy,

MANAGEMENT

867

A Plea for a Standard Organization of the Engineer Division

B.

and for a Uniform Method of Management of the Engineer

Department with a Section Devoted to the AppHcation of Scientific
Management. Journal of American Society of Naval Engineers, vol. 23,

Aboard

Ship,

p. 681.

W.

Taylor, F.

The Art

Trans. A. S.

of Cutting Metals.

M.

E., vol. 28,

p. 31; discussion, p. 281.'

A Comparison of University and Industrial Discipline and Methods.

Stevens Indicator, vol. 24, p. 37.
The Gospd of Efficiency. American Magazine, vol. 71, p. 570; vol. 72,
p. loi.
Reprinted in World's Work {London), vol. 18, pp. gi, 168.
Notes on Belting. Trans. A. S. M. E., vol. 15, p. 204.
A Piece Rate System. Trans. A. S. M. E., vol. 16, p. 856. Reprinted
by American Economic Association, Economic Studies,
also

by Engineering Magazine,
Principles and Methods of

countancy, vol.

vol. i, no. 2, p. 89;

vol. 10, p. 690.*

Scientific

Journal of Ac-

Management.

12, pp. 117, 181.

Principles of Scientific Management.

Harper & Bros., New York,
ign.
Shop Management. Trans. A. S. M. E., vol. 24, p. 1337. Repubhshed in book form by Harper & Bros., New York, 1910. Reviewed by
E. D. Jones in American Economic Review, vol. 2, p. 369.

Why

Manufacturers Dislike College Graduates.

Sibley Journal of

Engineering, vol. 24, p. 195.

Taylor, F.

W. and Thompson,

S.

E.

Concrete Costs.

Wiley

&

Sons,

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York, 191 2.

Thompson, C. B.
Problem.

Thompson,

S.

The Relation

of Scientific

Management

to the

Journal of Pohtical Economy, vol. 21, p. 630.*

E. The Taylor Differential Piece Rate System.

ing Magazine, vol. 20, p. 617.

Towne, H. R. The Engineer as Economist.

Trans. A. S.

M.

Wage

Engineer-

E., vol. 7, p.

425.

Gain Sharing. Trans. A. S. M. E., vol. 10, p. 600.

Reprinted by
American Economic Association, Economic Studies, vol. i no. 2, p. 51.
Walker, Amasa. Scientific Management Applied to Commercial Enterprises.
Journal of Political Economy, vol. 21, p. 388.
Webster, A. G. Scientific Management and Academic Efficiency.

Nation,

vol. 93, p. 416.

What

is

Scientific

Management, and What Does

neering, vol. 9, p.

it

Do

Industrial Engi-

I.

Wooley, E. M. Getting Out the Mail, System, vol. 21, p. 284.

"
"
Lost Motions
in Retail Selling.
System, vol. 21, pp. 366, 465.
"
The One Best Way." System, vol. 2c, pp. 223, 356, 468, 614.
Scientific Management in the Office.
System, vol. 21, p. 3.
The Wanton Waste of Labor. System, vol. 21, pp. 13, 173.
I

Introduction and parts of discussion reprinted in this volume.

Reprinted in this volume.

SCIENTIFIC

868

Scientific

II.

Adams, C. W.

The

MANAGEMENT

Management

in Operation

Differential Piece Rate.

American Machinist,

vol. 34,

Use.

American Machinist,

vol. 36,

p. 18.

Alford, L. P.

Scientific

Management in

p. 548.

The General Manager in Specific Industries

Experiences with
Trans. The Efficiency Society, vol. i, p. 247.
American Society of Mechanical Engineers. Majority Report of Sub-Committee on Administration on the Present State of the Art of Industrial
Allen, C. L.

the Taylor System.

Management.

Trans. A.

S.

M.

E., vol. 34, p. 1131.'

Arnold, H. L.

Pre-Eminent Success of the Differential Piece Rate System.

Engineering Magazine, vol. 12, p. 831.
Barth, C. G. Betterment of Machine-Tool Operation by Scientific Metal
Cutting. Engineering Magazine, vol. 42, p. 586.
Chief of Ordnance, Reports of, for 19 11, 191 2, and 19 13.
Government
Printing Office, Washington.^
Cook, A. M. Scientific Management Methods at a Naval Magazine. Engineering Magazine, vol. 42, p. 75.
Iron Age,
Diemer, Hugo. Shop System of Ferracute Machine Company.
88, p. 106.

vol.

A History of the Introduction of a System of Shop ManageTrans. A. S. M. E., vol. 27, p. 720.1
Evans, H. A. Detailed Instruction for Machine Shop Methods. American
Dodge,

J.

M.

ment.

Machinist, vol. 31, p. 645.

Do

Taylor's

vol. 34, p.

Methods

increase Production ?

American Machinist,

133.

General Instruction for Machine Shop Methods.

American Ma-

chinist, vol. 31, p. 610.

Output under

Scientific

Management.

American Machinist,

vol. 34,

p. 1202.

Navy Yard Work.

American Machinist,

vol.

Machine Shop Exi>erience with the

Principle of Eflaciency

Re-

Reduction in Cost of
33, p. 1200.

Flack, A.

ward.

Engineering Magazine, vol. 41, p. 641.

Gantt, H. L. A Practical Application of Scientific Management.
Engineering Magazine, vol. 41, p. i.
Engineering Magazine, vol. 36,
Going, C. B. Methods of the Santa Fe.
p. 909; vol. 37, pp. 9, 225, 337, 541.
Kendall, H. P. Management: Unsystematized, Systematized, and Scientific.
In Scientific Management, Tuck School Conference, p. 112, 1912.^
Abstract in Industrial Engineering, vol. 10, p. 374.
In Technology and InLewis, Wilfred. An Object Lesson in Efficiency.

dustrial Efficiency, p. 173.

McGraw-Hill Co.,
stract in Industrial Engineering, vol. 9, p. 379.

Reprinted in this volume.

Appendix

of report for 1913 reprinted in this

New

York, 1911.^

volume.

Ab-

MANAGEMENT

869

Observations on Scientific Management.

The Printing Art,

SCIENTIFIC
H. P.

Porter,

vol. 18, p. 17.

Scientific

Management

editorial).

Shaw, A. W.

Can

it

The Printing Art,

Scientific

{an

be Applied to the Printing Indttstry ?

vol. ij, p.

Management

223.

Review

in Business.

of Reviews, vol.

43, P- 327-'
Sterling, F. W.

ment.

Tardy,

W.

Navy.
Review

The Successful Operation of a System of Scientific ManageJournal of American Society of Naval Engineers, vol. 24, p. 167.'
B. Scientific Management and Efiiciency in the United States
Abstract in American
Engineering Mageizine, vol. 41, p. 545.

of Reviews, vol. 44, p. 229.

Taylor, A. K.
Applying the Principles of Scientific
ing Business. Inland Printer, vol. 48, p. j/j.

Management

to the

Print-

Iron Age, vol. 8g, p. 726.

(The) Taylor System in Government Shops.
Toume, H. R. The General Principles of Organization Applied to an Individual Manufacturing Establishment.

Trans. The Efficiency Society,

vol. i,

P- 77-

SciENTinc Management and the Railroads

III.

Baker, Benjamin.
of Reviews,

vol.

Efficiency, Freight Rates

43, p. 80.

and

Review

the Tariff Revision.

(The) Bonus System on the Santa Fe.

Railway Age Gazette, vol. 47, p. iig2.
The Engineering
Brandeis, L. D. Scientific Management and Railroads.
Magazine Co., New York, 191 1. Reviewed by E. D. Jones in American

Economic Review,

vol. i, p. 833.

Scientific Railroad

Management.

Engineering Magazine,

vol.

40, p.

622.

Brewer, C. B.

Management

Substitute for the Rate Increase:

as Applied to Railroads.

Economics of

Scientific

American,

Scientific

vol. 104, p.

596.

Brombacher, M. H. C. Application of Scientific Management to a Railway

Shop. Railway Age Gazette, vol. 51, p. 23.
Burns, G. J. Notable Efficiencies in Railway Machine Shop Operation.
Engineering Magazine, vol. 42, pp. 161, 386, 616.
Pacific Shop Management.
American Machinist, vol. 35, p. 1164.
How Bonus Works on the Santa Fe. American Machinist,
Colvin, F. H.

Canadian

vol. 36, pp. 7, 165.

(The) Comparative Merits of Functional and Geographical Systems of Organization.

Engineering News, vol. 64, p. 692.
Cunningham, W. J. Scientific Management in the Operation of Railroads.
Quarterly Journal of Economics, vol. 25, p. 539.' Reprinted in Railway
Abstract in Freight, vol. 12, p. 137.
Library, 2d series, 1911, p. 118.
Efficient Management
1 103.

{an

Emerson, Harrington.
neering Magazine,

editorial).

How

Railway Age

Railroad Efficiency can be measured.

vol. 42, p. 10.

t

Gazette, vol. 51, pp. 886,

Reprinted in this v<dume.

Engi-

SCIENTIFIC

870
The Methods
Efficiency at the

MANAGEMENT

of Exact Measurement applied

Topeka Shops of the Santa Fe.

Railroad Journal, vol. 81, p. 221.

Preventable Wastes and Losses on Railroads.

and Shop
American Engineer &

to Individual

Railway Age Gazette,

vol. 45, p. 12.

Fagan, J. O. The Dream of Scientific Management on Railroads, Journal

of Accountancy, vol. 12, p. i.
Fagan, J. O., and Abbott, E. H. Humpty Dumpty's Question, and its
Answer. Outlook, vol. 97, p. 543.
Scientific Management of American Railways. In TechnolFelton, S. M.

ogy and Industrial

Efficiency, p. 221.

McGraw-Hill

Co.,

New

York,

1911.

Franklin, B. A.

An Efficiency Experiment

Station for the Railroads. Engi-

neering Magazine, vol. 42, p. i.

Fritch, L. C.
Opportunities for Economy on Railways.
Railway Age
Gazette, vol. 51, p. 1059.
RailFry, C. H. The Working of the Premium System on the Santa Fe.

way Age Gazette, vol. 41, pp. 476, 504.

Genesis of Railway Brotherhoods.
Railway Age Gazette, vol. 50, p. 782.
Going, C. B. Methods of the Santa Fe. Engineering Magazine, vol. 36, p.
909, vol. 37, pp. 9, 225, 337, 541.

Harahan, W.

Scientific

J.

Management.

Railway Age Gazette,

vol. 50,

p. 212.
S.
The Scientific Thought apphed to Railroad Problems. In
McGraw-Hill Co., New
Technology and Industrial Efficiency, p. 181.
York, 191 1.
The Engineering Magazine Co.',
Hine, C. deL. Modem Organization.
New York, 191 2.
"
"
Scientific Management
for Railways.
Hines, W. D.
Nation, vol. 91,

Hinckley, B.

P- 576.

Hutchins, F. L.

Letter on Scientific Management.

Railway Age Gazette,

vol. 50, p. 268.*

W. Betterment Briefs. Wiley & Sons, New York, 1909. Edion same, Railway Age Gazette, vol. 45, p. 892.
Leech, C. C. Letter on Efficiency.
Railway Age Gazette, vol. 51, p. 221.
Letters on Scientific Management.
Railway Age Gazette, vol. 50, pp. jio, jii.
Mistakes of the Efficiency Men. Railway Age Gazette, vol. 50, pp. 29, 230,
Jacobs, H.
torial

391, 849, 1059.1

Moffeit, C.
Saving $1,000,000 a

Day for American

Magazine, vol. 26, p. 346.

Morrison, C. J. Letter on Scientific Management.

Consumers.

Hampton's

Railway Age Gazette,

vol. 50, p. 214.

Railroad Efficiency and the Labor Unions.

Iron Age, vol. 87, pp. 476, 724.
(The) Railways and Scientific Management
(an editorial).
Engineering
& Contracting, vol. 35, p. 379.'
Scheduling Locomotive Repair Work on the Canadian Pacific Railway. In-

dustrial Engineering, vol. 8, p. 380.

1

Reprinted in this volume.

MANAGEMENT

SCIENTIFIC
Scientific

Management

Railway Age Gazette, vol. 50, pp.

vol. 51, pp. 19, 20, 50, 889, 1106.

(editorials).

18, 210, 265, 307, 344, 387, 835;

Scientific

Shop

87 1

of Railway Shops.
Machinery, vol. 10, p. 16.
and Railroad Rates. American Machinist, vol. jj, pp. log/,

Management

Efficiency

1127.

Stimpson, H.

F., Allison, L. W., Sheafe, J. S., and Morrison, C. J.

tion of Scientific Management to a Railway Shop.
Railway

ette, vol. 51, pp.

i2,,

Apphca-

Age Gaz-

38,42, 46.

Symons, W. E. The Practical AppUcation of Scientific Management to

Railway Operation. Journal of Franklin Institute, vol. 173, pp. i, 140,
271, 365Taylor, F. W.

Scientific

New

Management.

England Railroad Club,

10, iQii, p. 138.

What is Scientific Management ?

Oct.

Railway Age Gazette, vol. 50, p. 839.

(The) Working of the Premium System on the Santa Fe
(an editorial).
Railway Age Gazette,

vol. 45, p. 413.

IV.

Methods

General Books

Cost Keeping and Scientific Management.

Evans, H. A,
Co.,

How

New

York, 191 1.

Scientific

Management

is

The " System "

applied.

McGraw-Hill
Co., Chicago,

1911.

Knoeppel, C. E. Maximum Production in Machine Shop and Foundry.

The Engineering Magazine, New York, 191 1.
Parkhurst, F. A. Applied Methods of Scientific Management.
Wiley &
Sons, New York, 191 2.

W.

Taylor, F.

Trans. A.

Shop Management.

S.

M.

E., vol. 24, p. 1337.

Republished in book form by Harper & Bros., New York, 1910.

Taylor, F. W. and Thompson, S. E. Concrete Costs,
Wiley & Sons,

New

York, 191 2.

Methods of Approach

M.

to the

System

The

Spirit in Which Scientific Management should be apDodge, J.

proached. In Scientific Management, Tuck School Conference, p. 142.
Abstract in Industrial Engineering, vol. 10, p. 350.'
191 2.

Hathaway, H. K.
Trans. A. S.

M.

Discussion of F.

W.

"

Taylor's

Art of Cutting Metals."

E., vol. 28, p. 287.*

Prerequisites to the Introduction of Scientific

neering Magazine, vol. 41, p. 141.'
Installation of Scientific

Management

(an

editorial)

Management.
.

Engi-

Industrial Engineer^

ing, vol. 10, p. 301.

Osborne,

W.

Echoes from the Oil Country.

American Machinist,

vol. 34,

p. 1036.

Taylor, E.

M.

Modem Methods

and the Business

vol. 84, p. 184.

>

Reprinted in this volume.

Specialist.

Iron Age,

SCIENTIFIC

872

MANAGEMENT

Functional Foremanship

The Production Department.

Colder, John.

Trans.

The

Efl5ciency So-

ciety, vol. I, p. 155.

(The) Foreman's Place in Scientific Management.

Industrial Engineering,

vol. 9, p. 197.1

Time and Motion Study

Adamson, N.

E., Jr.

The Taking

Time Study Observations.

of

Industrial

Engineering, vol. 10, p. 439.

Cost and Time Keeping Outfit of the Taylor System.

American Machinist,

vol. 29, p. 761.

An

W. D.

Ennis,

Experiment

in

Motion Study.

Industrial Engineering,

vol. 9, p. 462.

and McCormack, H.

Frederick, J. G.,

S.

Motion Study

System, vol. 21, p. 563.

"
"
Gantt, H. L.
Hipped on Motion Study.
307.
Gilbreth, F. B.
8, p.

in Ofiice

Work.

Industrial Engineering, vol.

"
Chapter 14 of Bricklaying System."

Clark Pubhshing

Co., Chicago, 1909.

Motion Study. Van Nostrand Co., New York, 1911.

Hathaway, H. K. Elementary Time Study as a Part of the Taylor System
of Scientific Management.
Industrial Engineering, vol. 11, p. 85.1
Guide Pratique du Compositeur.
Firmin Didot,
Lefevre, Theotiste.
Paris, 1883.

Micro-Motion Study
a New Development in Efficiency Engineering.
Scientific American, vol. 108, p. 84.
Reed, H. W. A Time Study under the Taylor System. American Machinist, vol.

Scott,

35, p. 688.

W. D.

The Rate

of

Improvement

in Efficiency.

System, vol.

20, p.

iSS-

{A) Thought on Scientific Management.

Industrial Engineering,

vol. 11,

p.

293-

Wooley, E. M. Getting Out the Mail. System, vol. 20, p. 284.

"
"
in Retail Selling.
Lost Motions
System, vol. 21, pp. 366, 465.
Classification

Benedict, H. G.

Management.
Thompson, C. B.
Memory Tags

The Mnemonic Symbolizing

of Stores under Scientific

Industrial Engineering, vol. 12, pp. 24, 69.

Giving a Business a Memory.

for Business Facts.

tory Costs Apart.

vol. 22, p. 588.

Taking Fac-

Listing Stock to Index Wastes. Ibid.,

Finished Parts.
Ibid., p. 386.
Right FiUng

Ibid., p. 131.

Keeping Tab on
and Easy Finding. Ibid.,

p. 260.

Reprinted in this volume.

Reproduced

in this

System,

Ihii., vol. 23, p. 21.

p. 286.*

volume under the

title

"

Classification

and Symbolization."

SCIENTIFIC

MANAGEMENT

873

Routing

The Engineering Magazine Co. New

Industrial Plants.
York, 191 1.
The Routing Diagram as a Basis for Laying Out Industrial Plants.
Engineering Magazine, vol. jg, p. 8og.
Trans.
Gantt, H. L. The Mechanical Engineer and the Textile Industry.

Day, Charles.

A.

S.

M.

E., vol. 32, p. 499.

Hathaway, H. K.

The Planning Department.

Industrial Engineering, vol.

12, pp. 7, 53, 97-'

Room

(The) Tool

under

Engineering, vol.

Scientific

Management

(R. T. Kent).

Industrial

9, p. 87.*

Standardization
Ballard, P.

Scientific

Management and

Science.

Cassier's Magazine, vol.

41, p. 425.

Barth, C. G.

Slide Rules as Part of the Taylor System.

Trans. A. S.

M.

E.,

vol. 25, p. 49.

Carpenter, C. U.

Profit-Making Management.

The Engineering Maga-

zine Co., New York, 1908.

Day, Charles. Advanced Practice of Economical Metal Cutting.

neering Magazine, vol. 27, p. 549.

The First Case of Standardization.
Gilbreth, F. B.

Engi-

Trans. The Efficiency

Society, vol. i, p. 257.

The

Instruction

Card as a Part

of the Taylor Plan of

Management.

Industrial Engineering, vol. 11, p. 380.

Reed, H. W. Following a Fixed Schedule imder the Taylor System. American Machinist, vol. 35, p. 1020.
Two Turret Lathe Instruction Cards. American Machinist, vol. 36,
P- 915-

Taylor, F.

W.

The Art

of Cutting Metals.

Trans. A.

Notes on Belting. Trans. A. S. M. E., vol. 15,

Wooley, E. M. Scientific Management in the Ofl5ce.

S.

M.

E., vol. 28, p.

p. 204.

System,

vol. 20, p.

3-

Cost Accounting

Production Factors. The Engineering Magazine Co., New

York, 1910.
The Engineering
The Proper Distribution of Expense Burden.
Magazine Co., New York, 1908.
Cost and Time Keeping Outfit of the Taylor System. American Machinist,

Chiu-ch, A. H.

vol. 29, p. 761.

a Letter
Emerson, Harrington. Practising Efficiency and Knowing Costs
The Emerson Co., New York, igiz.
to a New England Manufacturer.

Reprinted in this volume.

Introduction and parts of discussion reprinted in this vcdume.

MANAGEMENT

SCIENTIFIC

874

McGraw-Hill
Evans, H. A. Cost Keeping and Scientific Management.
Co., New York, 191 1.
American Machinist,
Sacerdote, Guido.
Collecting Data to Compute Costs.
vol.

35, P- ^70.

Simeon, C.

J.

The

Scientific

Management

of a

Foimdry,

Iron Trade Re-

view, vol. 50, p. 68.

and Training of Employees

Selection

Blackford, Katherine M. H., and Newcomb, Arthur.

Boss. Doubleday, Page & Co., New York, 1914.

The Job,

the

Man, the

The Scientific Selection of Employees. The Emerson Co., New York (pamphlet).
The Engineering Magazine Co.,
Gantt, H. L. Work, Wages and Profits.
New York, 1910; revised ed., 1913. Reviewed by C. W. Mixter. American Economic Review, vol. i, p. 103.
"
Wooley, E. M, The One Best Way." System, vol. 20, pp. 227, 356, 468,
Emerson, Harrington.

614.

The Wanton Waste

of Labor.

Wages as
Barnes, G. N.

Magazine,

Wage Systems and

21, pp. 13, 173.

Incentive

their

Bearing Upon Output.

Engineering

vol.

27, p. 4go.
of Trade (Labour

Board
and Labour Co-partnership
Ltd., London, 191 2.

(British)

Differential Piece Rates

Emerson, Harrington.
vol. 82, p.

System, vol.

11

Department) Report on Profit Sharing

United Kingdom.
Wyman & Sons,
:

in the

(an editorial).
Engineering, vol. 80, p. 413.
Different Plans of Paying Employees.
Iron Age,

50.

Rational Basis for Wages.

Trans. A. S. M. E., vol. 25, p. 868.
The Basis of Proper Management. American Machinist, vol.
Gantt, H. L.
35, P- 840.

Bonus System of Rewarding Labor. Review of Reviews, vol. 26, p. 326.

Bonus System of Rewarding Labor by the Bethlehem Steel Co., Engineering News,

vol.

46, p. 460.

Modifying Systems of Management. Trans. A.S.M. E., vol. 25, p. 6j.

The Problem of Industrial Efficiency. Industrial Engineering, vol. g,
p. 179.

The Straight Line to Profit. System, vol. ig, p. 11 j.

The Task and Bonus System. American Machinist, vol. j^, p. g20.
The Task and a Day's Work. Industrial Engineering, vol. 10, p. 363.
Task Work
The Basis of Proper Management. Machinery, vol. 18,

p. 279.

Work, Wages and

nomic Review,

The Engineering Magazine Co., New York,

Reviewed by C. W. Mixter. American Eco-

Profits.

1910; revised ed., 1513.

vol. i, p. 103.

Halsey, F. A., and Rowan, James. The Premium Plan of Paying for Labor.
Trans. A. S. M. E., vol. 12, p. 755.
Reprinted as Chapter XI in

MANAGEMENT

SCIENTIFIC

875

"

Trade Unionism and Labor Problems," edited by John R. Commons.

Ginn & Co., Boston, 1905.
AmHastings, Clive. The Efficiency of the Worker and his Rate of Pay.
erican Engineer and Railroad Journal, vol. 81, p. 238.
American Machinist, vol. 36, p.
Morrison, C. J. Piece Rates vs. Bonus.
178.

The Premium Plan

Rowan, James.

at the

Works

of David

Rowan

6*

Com-

American Machinist, vol. 25, pp. 49, $3.

pany, Glasgow, Scotland.
A Premium System Applied to Engineering Workshops. Proceedings
Institute of Mechanical Engineers, March 20, 1903, p. 203.
Reprinted
in American Machinist, vol. 26, p. 1383.
Trans. A. S. M. E., vol. 16, p. 856.
Taylor, F. W. A Piece Rate System.
Reprinted by American Economic Association, Economic Studies, vol. i,
no. 2, p. 89; also by Engineering Magazine, vol. 10, p. 690.^
A Piece Rate System and Shop Management. Engineering Magazine,
vol. 10, p. 690.

The Reason for a Payroll. System, vol. 22, p. 249. When

Higher Wages Pay. Ibid. p. 339.*
Thompson, S. E. The Taylor Dififerential Piece Rate System. Engineering Magazine, vol. 20, p. 617.
Towne, H. R. The Engineer as Economist. Trans. A. S. M. E., vol. 7, p.

Thompson, C. B.

425-

Gain Sharing. Trans. A. S. M. E., vol. 10, p. 600.

Reprinted by
American Economic Association, Economic Studies, vol. i, no. 2, p. 51.
American Machinist, vol. 26,
Walker, W. O. The Value of Incentives,
p. 996.

Wright, C. D.

No.

Profit Sharing.

IS, p. 157.

Wright

&

Bulletin of

Bureau

of Statistics of Labor,

Potter Co., Boston, 1886.

V. Personal Factor in Scientific

Management

Scientific Management:
Cooperative or One-sided.
Survey, vol. 28, p. 312.
Journal of
Carlton, F. T. Scientific Management and the Wage-Earner.

Bloomfield, Meyer.

Political

Economy,

Church, A. H.

vol. 20, p. 834.^

Intensive Production and the Foreman.

American Ma-

chinist, vol. 34, p. 830.

Clark, S. A., and Wyatt, Edith.

New

Co.,

Do Men

like

Making Both Ends Meet. The Macmillan

York, 1911.*

Work ? Industrial Engineering, vol. 8, p. 288.

The Taylor System as a Machinist sees it. American Ma-

Dwight, F. H.

chinist, vol. 34, p. 989.

Emerson, Harrington. Ethics and Wages. Outlook, vol. 99, p. 682.

Evans, H. A. Effect of the Taylor System: What is to become of the
Mechanic ? American Machinist, vol. 33, p. 1095.
*

Reprinted in this volume.

Reprinted

Chapter

in this

volume under the

7 reprinted in this

volume.

title

"

Wages and Wage Systems

as Incentive*."

SCIENTIFIC

876
Flanders, R. E.

Scientific

MANAGEMENT

Management from a

Social

and Economic Stand-

Machinery, vol. 18, p. 764.

Gantt, H. L.
Training Workmen in Habits of Industry and Cooperation^
Trans. A. S. M. E., vol. jo, p. 1037.
American Machinist,
Godfrey, J. R. Eliminating the Inefficient Man.
point.

vol. 34, p. 1232.

The

Going, C. B.

Review

Efficiency of Labor.

of Reviews, vol. 36, p. 329.

Goldmark, Josephine. Fatigue and Efficiency. The Russell Sage Foundation, New York, 191 2.
Trans. The Efficiency Society, vol. i,
Gulick, L. H. The Human Element.
'

p. 181.

The Factor

Hartness, James.
vol.

I,

of Habit.

The

Trans.

Efficiency Society,

p. 237.

Human

Factor in Works Management.

McGraw-Hill

Co.,

New

York, 191 2.
Helping a Man to Find his Place
(aneditorial)
Machinery, vol. 18, p. 679.
Higgins, M. P. Intensified Production and Its Influence upon the Worker.
Engineering Magazine, vol. 20, p. 568.

The Machinist's

Hudson, F. C.

Side of Taylorism.

American Machinist,

vol. 34, p. 773.

Kellogg, P. U.

National Hearing for Scientific Management.

Survey,

vol. 25, p. 409.

Klyce, E. D. K.

Scientific

the Moral Law.

Management and

Outlook,

vol. 99, p. 659.

Lewis, Wilfred.

F.

W. Taylor and

the Steel Mills.

American Machinist,

vol. 34, p. 655.

Munsterberg, Hugo. Psychology and Industrial Efficiency.

Mifflin Co., Boston, 1913.

W. D.

Orcutt,

The Conservation of Human

Effort.

Houghton,

Harper's Magazine,

vol.

122, p. 432.

Outerbridge, A. E., Jr. The Educational Influence of Machinery.

neering Magazine, vol. 9, p. 225.

The Emancipation
vol. 9, p. lOI

Redfield,

W.

C.

of

Labor by Machinery.

Engineering Magazine,

2.

The Moral Value

of Scientific

Management.

Atlantic

Monthly, vol. no, p. 411.

Rose, F. H. The Rise of Labor through Labor-Saving Machinery.
neering Magazine, vol. 27, p. 836.
Scientific

Management

(aneditorial).

p. 289.
Scientific Management as
trial

Engineering, vol.

Slave Driving or Scientific

neering,

Engi-

vol. Q, p.

Engineering (London), vol.93,

viewed from the Workman's Standpoint.

8, p.

377.

Engi-

Indus-

Management

{an

editorial).

jog.
to Investigate the Taylor

Industrial Engi-

Committee
and other Systems of Shop
Management: The Taylor and other Systems of Shop Management.
Hearings, Oct. 4, 191 1 to Feb. 12, 191 2. Government Printing Office,

Special

Washington, 191 2.
*

Reprinted in this volume.

SCIENTIFIC

MANAGEMENT

8/7

W. Shop Management. Trans. A. S. M. E., vol. 24, p. 1337,

ReRepublished in book form by Harper & Bros., New York, 1910.
viewed by E. D. Jones in American Economic Review, vol. 2, p. 369.
Towne, H. R.; Smith, OberUn; Calder, John; Higgins, A. C; and Falkenau, A. Human Element in Scientific Management. Iron Age, vol. 89,

Taylor, F.

p. 912.

Van

In Technology and Industrial

McGraw-Hill Co., New York, 191 1.
The Personal Equation in Scientific Management. Stone

Alstyne, David,

Profitable Ethics.

Efficiency, p. 207.

Whiting, F. J.
& Webster's Journal, vol.

8, p.

Relation of Scientijk

411.

Management

to

Social Problems

Cooke, M. L. Spirit and Social Significance of Scientific Management.

Journal of Political Economy, vol. 21, p. 481.
What is it ? What
Duchey, Louis. Scientific Business Management.
Effect will it have on the Revolutionary Movement ?
International
Socialist

Review,

vol. 11, p. 628.

W. H.

Social Philosophy and the Taylor System

Will the
Ultimate Result of the Taylor System be Beneficial ?
Engineering

Herschel,

News (London), vol. 65, p. 577.

Kimball, D. S. Another Side of Efficiency Engineering.

American Ma-

chinist, vol. 35, p. 263.'

Taylor, F.

W.

Principles of Scientific

Management.

Harper

& Bros., New

York, 191 1.
VI. Scientific
Brandeis, L. D.

Management and Organized Labor

The New Conception

of Industrial Efficiency.
Journal of
Accountancy, vol. 12, p. 35.
Organized Labor and Efficiency. Survey, vol. 26, p. 148.
Iron
Brombacher, M. H. C. The Rock Island Arsenal Labor Trouble.
Age, vol. 89, p. 306.
Government Printing Office, WashChief of Ordnance, Report of, for 1913.
ington.*

Commissioner of Labor, Eleventh Special Report of (prepared under the

direction of Carroll D. Wright): Regulation and Restriction of Output.
Government Printing Office, Washington, 1904.
Commons, J. R. Organized Labor's Attitude towards Industrial Efficiency.
American Economic Review, vol. i, p. 463.
Duncan, J. Efficiency. Journal of Accountancy, vol. 12, p. 26.
Emerson, Harrington. The Fundamental Truth of Scientific Management.
Journal of Accountancy, vol. 12, p. 17.
Relation of Scientific Management to Labor.
J. P.

Fry,

Iron Trade Re-

view, vol. 52, p. 917.

Gantt, H. L.
Application of Scientific Methods to the Labor Problem.
erican Machinist, vol. 27, p. 1394.

GilbrethyF.B.

The Theory

at

Work.

Journal of Accountancy,

Reprinted in thb volume.

Appendix

of this report reprinted in this

volume.

vol. 12, p,

Amig.

MANAGEMENT

SCIENTIFIC

8/8
Golden, John.

The Attitude of Organized Labor.

Journal of Accountancy,

vol. 12, p. 189.

How
J. H.
and the Public.

Efficiency should Benefit the Employer, the Employee,

Trans. The Efficiency Society, vol. i, p. 67.
Industrial Engi{The) Labor Unions and the Taylor System
{an editorial)

Gray,

neering,

Norris,

H. M.

Magazine,
O'Connell,

Shop.
Pierce,

W.

vol. g, p.

476.

Actual Experience with the Premium Plan.

Engineering

vol. 18, pp. 572, 589.

Piece Work not necessary for best Results in the Machine

J.
Engineering Magazine, vol. 19, p. 373.
S.
Government Work
Shop Management. Iron Age, vol.

89, p. 476.

Railroad Efficiency and the Labor Unions. Iron Age, vol, 87, p. 476.
Scientific Management
{an editorial).
Outlook, vol. p8, p. 46.
Scientific Management and the Labor Unions
World's
(an editorial).

Work,
Scientific
trial

Management and

Engineering,

Scientific

vol. 22, p. 14311.

the Limitation of

Output

{an

editorial)

Indus-

vol. 10, p.

Management

204.
at United States Arsenals.

Iron Age, vol. 88, p.

1022.

Scope of

Scientific

Management.

Electrical

Railway Journal,

vol. 41, p.

451-

Letter
Stilson, C. H.
vol. 35, P- 175-

on

Scientific

Management.

American Machinist,

Stratton, G. F.
Ca-Canny and Speeding Up. Outlook, vol. 99, p. 120.
Taking Ambition out of the Workman. Century, vol. 82, p. 462.
Trans. A. S. M. E., vol. 24, p. 1337.
Taylor, F. W. Shop Management.
Republished in book form by Harper & Bros., New York, 1910. Reviewed
by E. D. Jones in American Economic Review, vol. 2, p. 369.

The Relation of Scientific Management to the

Journal of Political Economy, vol. 21, p. 630.*

Thompson, C. B.
Problem.

Reprinted in this volume.

Wage

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