Efficiency Methods
An Introduction to Scientific Management

REMUNERATION 133 Mr. H. M. Norris,1 who has followed the Towne- Halsey plan, states that Halsey recommends a generous allowance for the initial job-rating or time- setting, and then a small premium rate—at first, at least, for it is easier to raise it than to lower it. Mr. Norris prefers the reverse arrangement. Halsey states in his own paper that he thought one-third the most suitable proportion generally, but would vary it according to the extra amount of exertion entailed. In his works in the United States it was one-third to one-half; in those in Canada one- quarter to cne-third. (This difference seems due to different labour conditions, and not to bear any reference to exertion.) He mentions a Glasgow firm which made the proportion one-half (Messrs. G. & J. Weir). Another firm (D. Rowan’s) cal- culated their bonus quite differently, so that it rose very rapidly at first, but the rate of increase dimin- ished rapidly if the extra output was very large. Both Mr. Halsey and Mr. Norris admit inci- dentally in their papers what will be clear to everyone after a little thought: that the management stand to gain considerably if the overhead expenses remain the same during the men’s extra exertions, as there will be a smaller charge per unit of output when the output is increased. They contend, however, that certain expenses will increase : expenses for in- spection, motive power, general wear and tear, and for some of the materials used ; and evidently feel 1 “ The Premium Plan for Wages.” Engineering Magazine, vol. xv. (1901), p. 631.