Efficiency Methods
An Introduction to Scientific Management

REMUNERATION 143 when he set out to show the applicability of scientific management to the irnprovement of American rail- way organization,1 the following figures are given for the actual increase of wages in works operating the Gantt or Taylor system. Wages Increase. Brighton Mills ______45 to 75 per cent. “ above day-rate." Tabor Co.............25 to 30 per cent. “ above average.” Link Belt Co.........25 to 35 per cent. “ over generally pre- vailing wage.” But we do not learn what was the percentage decrease in labour cost. In Mr. Parkhurst’s book already quoted,3 describing the Ferracute Machine Works, the matter of proportioning the bonus to the man’s “ influence ” on the saving in labour cost is quite fully and lucidly tackled, and he shows that there is great variation according to circumstances. As a rule 25 to 35 per cent, increase on day wages was given when the standard was reached in a machine operation ; 35 to 5<> Per cent- increase on manual operations, particularly on such operations as assembling machines, which operation depends greatly on skilful and quick handling by the worker. Parkhurst speaks of an average increase of 25 per cent, in overhead expenses, but that labour cost and “ total manufacturing cost ” have been diminished to about half. 1 Investigation, before the Interstate Commerce Commission, U.S.A., of Proposed Advances in Freight Rates, 1910. Bnei by L. D. Brandeis. Docket No. 3400, , » See pp. 84.and.117. ,