" A great deal of inequity creeps into wage rates
unless both the employer and the employee know that the rate paid has
been arrived at by something better than a guess. Therefore, starting
about 1913 we had time studies made of all the thousands of operations
in the shops. By a time study it is possible theoretically to determine
what a man's output should be. Then, making large allowances, it is
further possible to get at a satisfactory standard output for a day,
and, taking into consideration the skill, to arrive at a rate which will
express with fair accuracy the amount of skill and exertion that goes
into a job--and how much is to be expected from the man in the job in
return for the wage. Without scientific study the employer does not know
why he is paying a wage and the worker does not know why he is getting
it. On the time figures all of the jobs in our factory were standardized
and rates set.
We do not have piece work. Some of the men are paid by the day and some
are paid by the hour, but in practically every case there is a required
standard output below which a man is not expected to fall.
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