The Richmond palladium and sun-telegram. [volume] (Richmond, Ind.) 1907-1939, 1911-12-21

one-third Of maximum speed II speed thaa
one-third OF maximum is attained q bonus 10 paid
II extreme speed for an hour by professional bicycle
rider on track i. so miles would haaf
Is miles, high standard. limit
On an epan road these figures drop 10 nlss
for extreme l. miles for standard.
mum Some time has be allowed rest. cay Per
cent This would put the standard q day lee
miles per hour and the minimum mi. IN hour.
We would pay man bonus for doing a average
- miles day OF 10 hours him to &C.
him 20 miles. Above ,os m,,e. ws
would give him bonus OF all the time he his
day rate and 20 percent Tor the time Some
efficiency engineers give him all tho time he
saves below standard At his premium This
". prefer all tho tim. h. ..v.a ..
his day rata and bonus OF 20 Tor
Cd II no beats the reasonable standard b. 4. en-
titled to all his savings At his day The
plant makes gain through the 'esasnins Of over
Co Twenty is induce

 very calcui.,. ,hi. bonus either On
monthly efficiency or individual Job basis.
This ease Of calculation is most important feature
Tho men know as rule exactly what is coming
They know tho actual hours worked they
into the standard hours the efficiency
the amount OF bonus depends the efficiency
Example:
Actual hours worked in a month .s.,s
Standard hours delivered MISREPRESENTATION.
Efficiency tcsS':ss:S> NEUTRALITY-SUSPICIOUS.. los.s co
Namely GOO AM :: 10 s,:qe,
49,. 49, "a
Total $l0l.7a
Men working thi. plan difficulty what
in making these calculations in
fact figure their status from day to day.
Tho most difficult OF all work is to estah
thoroughly =
physician physiologist psychological. moraiiat. an
athletic trainer would sanction and improve
Because this is difficult approach 1t by de-
We put in temporary schedules first and
schedules. allow the plant feel its u
innate operation schedules.
Today there thousands OF horse. tina. 're. on.
40
To illustrate the effects bonus. that
$3.50 the cost of operating messenger
business amounts sos4 hour overhead. that the
work for 10 men 10 hours a day.
At ~ miles hour the minimum speed set above.
mileage per 7ao miles and the costs
milo and the totals as follows:
Labor cost at $3.50 an hour .............. o"lss
a SOFA q .................. 003333
Total cost at 1854 an hour ............. oo7t
Total revenu. per mile NEUTRALITY-SUSPICIOUS.. ooss
Total for 7.o miles NEUTRALITY-SUSPICIOUS.. 800
Total profits ACKNOWLEDGEMENTS. 1870
the messenger is put bonus. and the standard
time 1o,s miles hour the cost milo and
totals a. folows
at $3.50 hour .................. oe377
Bonus 300 at 3o.os an hour ............ o'ooes
Overhead at 3o2% an hour Observation-Disclosures. o.o7s3
profit Der mile Observation-Disclosures. oeasJ
Tot.l r.v.rue ner mile ............,..
Total costa for 1850 miles ..''..'...." 800
An extra cost Of $500 in bonus increases profits
$3sas O 400 per cent
1t i. extremely important tho standard and
any that does not do this. II defective
instance paid twice much a. you ought
to, he men e12oo day bonus instead Of
$780, profits t3sss. but through not
paying enough $500 instead OF $780, the eff
cheney dropped per s72 miles hour then
profit t353 compared to $3.50 through
paying double bonus for standard efficiency
however. owing the selection OF exceptional
efficiency could crowded to 40 per cent Tor
tho account would stand
$3.50 hour ............... ! o.ozS
Ronus Ola an hour ............ o.ooss
Overhead At Oz@ an hour V'ots
Total cost at O6S an hour 900
profta per mile NEUTRALITY-SUSPICIOUS.. o.046
Toto, nrost. NEUTRALITY-SUSPICIOUS..
n profits the 100 cent standard
is 1850
aim Is to pay neither moro nor less than that
amount o which will maintain tho workers In
terest in the work.
Some need stimulus others can
stimulated by bonus but We have found that
time for a bonus OF 20 per cent works well
Some will attain regularly 100 percent and they
must others will only so per cent
vet good below 70 cent are mietts
A plant - built average OF 100 Per cont
not cent but by selecting 1.e
per
Our bonus resolves itself into this question:
II the average the district $3.50 an hour
for men gng 50 cent efficiency how much wiz
Mt ~