T5^ ,B7 ECONOMICS OF EFFICIENCY THE MACMILLAN COMPANY NEW YORK • BOSTON • CHICAGO • DALLAS ATLANTA • SAN FRANCISCO MACMILLAN & CO., Limited LONDON • BOMBAY • CALCUTTA MELBOURNE THE MACMILLAN CO. OF CANADA, Ltd. TORONTO ECONOMICS OF EFFICIENCY BY NORRIS A. BRISCO, A.M., Ph.D. '' AUTHOR OF «* ECONOMICS OF BUSINESS," "THE ECONOMIC POLICY OF ROBERT WALPOLE," DEPARTMENT OF POLITICAL SCIENCE, COLLEGE OF THE CITY OF NEW YORK ^OSTOK COTX.O^ ^BAKY THE MACMILLAN COMPANY 1914 A /I rights reserved Copyright, 1914, By the MACMILLAN COMPANY. Set up and electrotyped. Published November, 1914. lijHiQO J. S. Gushing Co. — Berwick & Smith Co. Norwood, Mass., U.S.A. MY SON NORRIS Digitized by the Internet Archive in 2010 with funding from Boston Library Consortium IVIember Libraries http://www.archive.org/details/economicsofefficOObris PREFACE The growing complexity of the American industrial system and the increasing keenness of competition have introduced a new era in business. Goods are produced and sold on small margins, and the extent of profits de- pends in a large measure upon efficiency. A new busi- ness science has grown up in our midst, and it may be called the science of efficiency. Efficiency is the watchword of future industrial progress, growth, and expansion. The nation which produces with the greatest efficiency will be the one which will lead the van of industrial nations. The business man who heeds the edicts of efficiency will be the one who will be able to produce at the least cost, and to command markets. The aim of efficiency is the elimination of waste. The new science of efficiency bases business activity upon knowledge. Knowledge takes the place of guesswork and ignorance. Efficiency demands a scientific study of the different phases of work to ascertain how it can best be done with the least expenditure of energy, time, and materials. It is giving business a critical aspect, by making a study of how things should be done and how they are done. The chief aim of this book is to open the eyes of business men to the underlying principles of efficiency, to emphasize the importance of these principles, and to explain their methods and workings in such a way that all business men will profit. NORRIS A. BRISCO. New York, Oct., 1914. vii i CONTENTS CHAPTER I ECONOMIC NEED OF EFFICIENCY PAGE Industrial Efficiency a New Study — Effects of Factory System — New Science of Business — Human Factor Neglected — Ex- tent of Wastes — Efficiency the Goal — Conservation of Workers — Accurate Knowledge of Workers — Requisites — Specialization — In Factory — Effects on Labor — Dangers — Demands of Industry — Requisites for Future Industrial Progress — Standardization — Extent — Kinds — Competition — Led to Lower Costs — ■ Varieties of Utilities — Factors in Production — Land — Labor — Capital — Management — Business Men Should Heed Efficiency 1 CHAPTER II EFFICIENCY Evolution of the Efficiency Movement — ^Efficiency — Meaning — How to Ascertain — Denominator — Computed] Efficiencies — Efficiency in Public Administration — Wastes in the Edu- cational Systems — Applying Efficiency to Work — How to Introduce Changes — Wastes — Kinds — How to Eliminate — Strenuousness vs. Efficiency — Efficiency Protects Health — Importance of Knowledge — Method of Obtaining — Im- portance of Scientific Study of Business — Search for Ideas — The One Best Way — How to Attain — Problems to be Solved in Efficiency 27 CHAPTER III MANAGEMENT AND THE PLANT Foundation of Efficient Management — Organization — Impor- tance — System — Requisites — Advantages — Coordination — Handling of Details — Requisites for Reports — Sugges- CONTENTS tions and Ideas — Importance — Cost System — Requisites — Advantages — Plant Location — Design of Buildings — High Grade Machines and Tools — Quality — In Buying — In Pro- duction — Savings from Waste Products — Storage of Ma- terials — Store Room — Moving Goods in a Plant — System in Shipping Goods — Routeing Goods — Inventory — Buying — SelHng — Requisites — Advertising — Requisites — Credit, its Place in Business 45 CHAPTER IV MANAGEMENT AND LABOR Importance of Human Factor in Business — Cooperation — Per- sonality — Rights of Workers Respected — Duty of Em- ployees to Employers — Enthusiasm — Loyalty — Importance of Sympathy — Importance of Incentive — Methods of Han- dling Men — Driving — Leading — Permanence in Working Force — Methods of Holding Men in Organization — Pro- motion from the Ranks — Efficiency and Health — Content- ment — Tardiness — Punctuality — How Ascertained — Irregularity — Causes — Soldiering — How to Eliminate — Authority Clearly Defined — DiscipHne — Methods of En- forcing — Qualities Essential in Superintendents ... 69 CHAPTER V METHODS Guesswork and Ignorance in Business — Intelligent Direction of Work — Old Method of Doing Work— Wasteful Effects — How to Ascertain Best Way — Best Conditions of Work — Theory w. Practice — Time Study — Motion Study — Requi- sites for Finding Standard Methods — Time for Task — Im- portance of Rest — Standard does not Mean Perfection — Responsibility upon the Management — Adoption of Stand- ard Methods — Supervision — Importance — Cooperation of Workers — Just Remuneration — Methods and Time Work — Planning Department — Job Work — Efficiency and the Best Way 89 CONTENTS xi CHAPTER VI HIRING OF LABOR PAGE Importance of Skilled Workers — Buying Machines z's. Hiring Labor — Requisites for Efficient Labor Force — Uncertainty of New Worker — Common Practice in Hiring Men — Ex- perimenting with Men — Evils of Constant Hiring and Firing — Requirements of a Place — Experts in Hiring Men — Mis- fits — How to Fill a Vacancy — Employment Department — Requisites for Selection of Workers — Fundamentals for Efficient Work — Health — Sight and Hearing — Signs of Health — ■ Ner\^ous System — Barriers to Employment — Habits — Age Limit — Drifters — Personal Letters — Intel- ligence — Thrift — Industry — Characteristics which Pro- mote Efficiency — How to Detect — Skill — Experience — Limitations and Possibilities of Men — Selection of Appren- tices — Card Record — Efficiency and the Buying of Labor . 106 CHAPTER VII TRAINING Changes from Industrial Revolution — Training of Workers Neg- lected — Importance of Trained Men — Apprenticeship System — Characteristics — Abuses — Modified Apprenticeship — Sudden Demand for Skilled Workers — Opposition of Unions — Industrial Intelligence — Adaptability — Training in Best Methods — The Corporation School — Methods of Instruc- tion — Instructors — Where Possible — Character of Train- ing — Shop Instruction — Practice Shops — Cooperative Industrial Schools — Industrial Evening Schools — Indus- trial Training in Public Schools — Industrial Schools — Trade Schools — Trade Preparatory Schools — Manual Train- ing Schools — Vocational Schools — Best System for Train- ing Workers 131 CHAPTER VIII HABITS Habit, Its Meaning — Instinct vs. Habit — Nervous System and Habit Formation — Nerve Paths — Repetition — Results of xii CONTENTS Proper Habits of Work — Identical Repetition — Habits of Industry — Importance — Wastes — How to Ascertain Best Methods — Training — Importance — Classes in Habit For- mation — Apprentice — Skilled Worker — Why Employees Oppose Changes — Requisites for Changes — Conversion of New Methods into Habits — Habits of Living — Of Eating — Classes of Habits — ^Effects of Intemperate Habits — Value of Habit in Industrial Society 159 CHAPTER IX FATIGUE Causes — Effects — Tower of Work Varies with People — Re- serve Force — Effects of Toxic Impurities — Fatigue and Memory — Cause of Stupidity — Efficient Cycle — Sleep — How Much is Necessary — Importance of Food and Health — Relaxation — Antidotes to Fatigue — Rest Periods — Accidents — Effects of Dirt, Dust, and Noise — Effects of Speeding — Limits of Work — Length of Working Day — Training in Resisting Fatigue — Real and False Fatigue — Effects of Sitting at Work — Methods of Conserving Energy — Wastes from Fatigue 178 CHAPTER X WORKING ENVIRONMENTS Health and EfiEiciency — Effects of 111 Health — Conservation of Health — Importance — Environment 'and Efficiency — Lighting — Natural vs. Artificial — Daylight — Windows — Electric — Advantages over Gas — Lamps — Overhead and Individual — Conservation of the Eye — Eyestrain — Inju- rious Lighting Conditions — Glare — Flickering — Strong Contrasts — 111 Effects of Gas — Effects of Foul Air — Value of Pure Air — Air Conditioning — Ventilation — Natural — Artificial — Temperature — Air Circulation — Humidity — Dust — Varieties — Effects — Prevention — Fumes and Gases — Effects on Workers — Environments and Ignorance 199 CONTENTS xiii CHAPTER XI WELFARE WORK. PAGE Drain of Sickness upon Industry — Medical Department — Func- tions — Emergency Hospital — Physical Examination — Treating Ailments — Dispensary — Home Environments — Encourage Proper Habits of Living — Medical Department and Efficiency — Nutrition — Indigestion — Lunches — How to Assure Proper Lunches — Drinking Water — Sources — Lavatories — Individual Lockers — Facilities for Baths — Rest and Recreation Rooms — Varieties of Welfare Work — Benefit Associations — Educational Work — Club House — Monthly Papers — Clubs — Savings Banks — Vacations — Pensions — Prizes for Home Keeping — Business Motive in Welfare Work 224 CHAPTER XII ACCIDENTS Classes of Accidents — Unavoidable — Preventable — Need of Statistics — Losses from Accidents — Study of Accident Pre- vention — Divisions — Causes — Ignorance — Carelessness — Clothing — Standard Dress — Poor Lighting — Cleanli- ness — Breakages — Insufficient Space — Slippery Floors — Alcohol and Accidents — Fatigue — Intervals of Rest — Safeguards — Old View — Dangers in Oiling and Cleaning Machinery — Protection of Eyes — Preventive Spirit — Museum — Management and Accidents — Emergency Room First Aid — Employment of Children — Factory Inspection — Compensation in Accidents — Necessary Measures in Ac- cident Prevention 252 CHAPTER XIII FIRE PREVENTION Losses from Fire — Reasons for Excessive Fire Losses — Func- tions of Fire Prevention — Chemistry of Fire — Combustion — Spontaneous Combustion — Favorable Conditions — xiv CONTENTS Causes of Fire — Matches — Smoking — Gas-jets — Oil Lamps — Precautions in Electric Wiring — Methods of Heat- ing — Dangers in Open Spaces — Dangers in Dust — Auto- matic Fire Alarms — How to Install — Manual Alarm Boxes — Fire Patrols — Automatic Sprinklers — Operation — Fire Pails — Chemical Extinguishers — Standpipes — Fire Es- capes — Philadelphia Fire Tower — Fire Walls — Fire Drills — Fire Protection as a Science 284 CHAPTER XIV WAGES Importance of the Wage Question — Requisites for its Solution — Parties to Wage Problem — Various Systems of Pay — Time Wages — How Fixed — Disadvantages — Individual Records — Piece Rates — Rate Cutting Cause of Trouble — Guesswork — Rate Fixing — The Task and the Rate — How to Establish a Just Rate — Essentials — Duties of the Em- ployee — Classes of Workers — Health Precautions — Workers' Share in Fixing Rates — Profit Sharing — Method of Distributing Profits — Disadvantages — Contract System — How it Operates 314 CHAPTER XV SCIENTIFIC PIECE-RATE SYSTEMS Halsey Premium Plan — How it Operates — Ascertaining of Standard Time — Precautions — Rowan Premium System — How it Operates — Gantt Bonus System — How Standard Time is Ascertained — Instructions — Elimination of Guess- work — Soldiering Eliminated — Health Precautions — The Bonus — Reward for Foremen — Differential Piece Rate System — Requisites — Instruction Cards — Precautions in Fixing Tasks — System in Operation — Task Idea in Day Work — Emerson Efficiency System — System in Operation — Piece and Job Work — .Remuneration Proportionate to Output 340 CONTENTS XV CHAPTER XVI ORGANIZED LABOR AND EFFICIENCY METHODS PAGE Trade Union, Its Meaning — Unscrupulous Leaders — Exploita- tion Unjust — Progress and Elimination of Work — Em- ployees Suspicious of Employers — Opposition to New Ma- cHihes — Effects on Labor — Wages and Output — Efficiency and Protection of Workers — Intellectual Development — Care of Aged Workers — Pensions — Opposition to Piece Rate — Proper Piece Rates Benefit Labor — Forms of Wage Bargaining — Individual — Collective — Union Demands, Based on Guess — Aims of Unionism — Ignorance of Mean- ing of Efficiency — ~- - ~-^- ^ 22^ ECONOMICS OF EFFICIENCY CHAPTER I The Economic Need of Efficiency This is the age of industry. Industrial achieve- ment is the aim and the goal of all civilized nations. National progress and growth are based upon industrial industrial progress. Industrial advancement efficiency, a has been rapid, and to-day the world is progres- ^®^ ^^^^^' sing with greater rapidity than ever before. Developments and improvements in every niche of industrial life follow one another in rapid succession. They are the rewards of tireless industry, of superior ability, and of genius. American genius is second to none in the world. It has devoted itself chiefly to conquering the forces of nature, devising labor-saving machinery and devices, and making improvements in facihties of transportation and of transmission of intelligence. The last few years have opened a new field, and new problems have presented themselves for American genius to solve. This new field is industrial efficiency. Its borders have hardly been touched, and American genius must be directed to its domains. If so, the revelations which will result will be as astonishing as those resulting from the industrial revo- lution of the eighteenth century. American genius has not failed in the past, and will not in this case. The future promises in the new field of efficiency, industrial improvements and developments which will make the 2 ECONOMICS OF EFFICIENCY industrial progress and growth of the twentieth century greater than the phenomenal record of the nineteenth. Manufactures have developed, in less than two cen- turies, from mere hand and household industries to those Evolution of machine and factory. For thousands of of manufac- years previous, goods for the satisfaction of turing. Q^Y the wants of man were made in households, or in simple workshops adjacent thereto. During the early part of the eighteenth century, the worker per- formed his work in his own home, where he provided raw material, owned his own tools, furnished the motive power, which was his muscles, and was his own master. By the middle of the century, many changes in the industrial system had taken place, and considerable capital was used in manufacture. Merchants grew rich by fur- nishing raw material to workers, paying them at piece rates to produce finished articles, and selling these in markets. By this time, many experiments and successful attempts had been made to economize in production by the appHcation of capital through labor-saving devices and machines. But the great mechanical inventions took place in the period from 1 760-1 790. This was followed by the discoveries of the application of steam power, and commencing with 1830, with marked improve- ments in faciHties of transportation on land and water. The various inventions introduced so many changes in the industrial system that the process of change is called j^ the Industrial Revolution. The workers were ment under called upon to attend machines, and to work the factory in workshops owncd by the employer. The system. grouping of laborers and machines in buildings for the purpose of production is known as the factory system. The factory and not the home became the unit of production. With the increase of capital and the im- provement of machinery, the factory made it possible THE ECONOMIC NEED OF EFFICIENCY 3 to manufacture goods in larger quantities, and of a more varied nature. New improvements in facilities of trans- portation opened larger markets, and to meet the in- creased demand, production on a larger scale followed. The development under the factory system made the modern business enterprise possible. The factory system with its extensive use of machin- ery, power, and capital, combined with extensive divi- sion of labor, introduced new problems of ad- ^he factory ministration. The small business enterprise system and with its simple organization and methods, ^*^°^' so characteristic of the domestic system, gave way to the large business unit with its compHcated organization and complex methods. Intensive organization became a necessity, and the independent worker of the domestic system became a part of an organization under the guid- ance of a new official, the manager. A clear and definite line was gradually drawn between managerial ability and labor. The laborer became a specialist, and was deprived of all responsibility except that of doing effi- ciently the task assigned him. The present Labor and industrial system has been a development managerial from the simple organization to the complex, ^^^^^y- a process of evolution. Each stage of the development has been attended by labor problems, social difficulties, and class conflicts. The inattention of employers to the new problems has been the chief cause of the numer- ous clashes between workers and employers. Many of the clashes and much of the antagonism which now exists between the two great factors of production could h.ave been prevented if employers had recognized from the beginning the proper place of labor in our industrial system. The nineteenth century has been frequently called the century of the machine. Successful industrial man- 4 ECONOMICS OF EFFICIENCY agement was concerned largely with obtaining greater efficiency through two sources : firstly, the acquiring of Progress ^ more highly efficient plant through more and efficient buildings and arrangement, and sec- markets, ondly, the acquiring of more improved and specialized equipment for the different processes. Pro- duction was greatly increased which necessitated more extensive markets. Manufacturers reahzed that indus- trial development was dependent upon markets. The question of markets has always been a fundamental one in industrial progress. Improved machinery and produc- tion on a larger scale drove the manufacturer to extend his field from the locahty to the nation, and further im- provements made more extended markets an absolute necessity. With the entrance of our commodities into the world's markets, competition became more intense, and the question of costs became more important, but during the nineteenth century, the average employer in his efforts to lower costs centralized his attention upon buildings, equipment, machinery, and of^^sSesr inethods. Near the close of the century, a few more enterprising employers had their atten- tion attracted to the human element, the most important factor in production, and this attraction is the beginning of a new science of business, the science of efficiency, which is a secure and sound foundation for further growth and greater industrial progress. It is astonishing that it was hardly more than a quarter of a century ago that employers realized that men and Three prob- "^^^ money were the determining factors in lems in pro- commercial and industrial undertakings, duction. Three important problems enter into produc- tion, the material, the machine, and the labor. The keen competition arising from entering foreign markets drove manufacturers to tax their ingenuity to devise THE ECONOMIC NEED OF EFFICIENCY 5 methods for lowering costs. Attention first turned to improved machines, equipment, and economies arising from large-scale production. The closer study de- manded by increasing competition made clear the limi- tation upon machines and equipment. Atten- Attention to tion was directed to the labor factor, and busi- the human ness men then recognized the importance of the ^^^*o^- human factor. This factor, so long neglected, has come into prominence as the one to be depended upon to lower costs, make possible successful competition, and pave the way for greater industrial growth and expansion. The human factor is the most difficult one in production, and the most important in the keen competitive activity of the present industrial struggle. Machines have been given special study since the in- troduction of the factory system, but the human factor has been neglected. Machines depend for Human their output upon the labor attending them, factor long and the worker does the real work of industry, neglected. Why should he not be studied to ascertain, as in the case of machines, if wastes exist, or if better methods can be devised for doing work, so as to increase the out- put with the same physical and mental exertion ? Eco- nomic necessity in meeting competition drove manu- facturers to pay attention to the human factor, and to give it closer study in order to devise methods of lower- ing costs, so as more successfully to compete in home and distant markets. Manufacturers were amazed at the extent of the wastes which were found in their plants. Wastes of material, time, and energy were found every- where. A prominent manufacturer declared wastes ° that they were getting only about 50 per cent of the abihty of workmen in their factory. Another stated that few shops produced more than 60 per cent 6 ECONOMICS OF EFFICIENCY of the work that it would be possible for them to pro- duce with the same working force and the same physical Problem to equipment. The chief problem which arose eUminate was how to eHminate these wastes. How can wastes. g^j-^ industrial country hampered with the pres- ence of wastes compete with one with the wastes par- tially or nearly wholly eliminated ? It is impossible. It is a dollars-and-cents proposition, and when manu- facturers reahze this, they will pay heed to the condi- tions existing in their plants, and make endeavors to ehminate as much waste as possible. The goal is the obtaining of the greatest possible output of the highest quahty, and with the least expenditure of material, time, and energy, but at the same time not in any way impairing the health of the workers. The work of studying conditions of material, machines, and labor to ascertain methods for reaching the goal and tii^goS^^' ^^ putting the methods into practice is called efficiency. Efficiency is the goal in industry. The nation which nearest approaches this goal in its industrial and business pursuits will be the one which will lead the van of industrial nations. Efficiency enters every field of business activity and is not confined to manufacturing enterprises. Efficiency methods will make this nation the greatest of all industrial nations, and in an enterprise will be the greatest guarantee of success. Human activity is the most valuable of all factors which enter into our business life, yet until recently, Greatest of l^^s than two decades ago, Httle or no system- all wastes, atic thought was given to the protection and that of labor, ^-j^q conservation of the human element in busi- ness. The greatest of all wastes is that of labor. It is all the more serious because it is the human factor which is being wasted, and this factor has always been, and THE ECONOMIC NEED OF EFFICIENCY 7 will always be, the greatest factor in every branch of business activity. What a saving would result to this nation if we could eliminate, say, 10 per cent of the wastes of the human element, and how much it would mean to laborers if we could increase the percentage to forty ! Such saving would not demand a greater expenditure of energy, but a better directed energy. Manufacturers would also profit, as it would lower their costs of pro- duction, and would place them in a position more suc- cessfully to compete in foreign markets. The elimination of wastes is the greatest problem in every form of business activity. Wastes are found in every factor of production. The greatest exist with the human factor, and the most of^effidency^ difhcult place to save waste is with this factor. This presents the most serious and the most difficult problem confronting business men. The new study of efficiency is concerned with the elimination of all wastes, but its most difficult task is the elimination of the wastes of the human factor. So overshadowing is the human factor that its study is the essence of efficiency. It is a dollars-and-cents proposition, and is of vital interest to every one engaged in business activity. Re- conserva- cently, the American people have been aroused tion of to the need of conservation. Attention was workers, aroused, and was focused upon wastes of forests, rivers, mines, and farm lands. No attention was given to the greatest waste, the waste of human beings, more terrible and appalling than all the others. This was unknown, and people were in ignorance of its extent, until necessity drove the business man to study the human factor in order to discover means of lowering costs. The most valuable resources of a nation are its own people, and it is only recently that employers are real- izing this. Human hands and brains furnish the bases 8 ECONOMICS OF EFFICIENCY of great industrial growth, and are the foundation upon which our future industrial extension will be based. The most valuable possessions of a workman should c(m- ^^^ ^is health, strength, and intelligence, serve as The Conservation of health and strength, the Td^c prolongation of working life, and the preven- tion of disease are problems which affect the nation at large, and every employer in particular. Human life is gradually being recognized as a business asset. Employers are realizing the fact that it is a cold business proposition, and that it pays to conserve the health and the strength of employees. It is a func- tion of this industrial nation to conserve as well as to produce. Wastes should be eliminated. Goods should be produced in increasing quantities and at lower costs. Production should continue with the greatest possible saving of wastes, with the best utilization of natural resources, labor, and capital, and with the greatest conservation. Business men should reahze that econo- mic conditions have a great effect upon business activi- ties, and the efficiency with which they are performed. It is the economist who in the future will prove the greatest friend of business men in solving the impor- tant question of efi&ciency. Business which is con- ducted by one part of society at the expense of another cannot be justified, and will not be tolerated under the new efficiency movement. Labor should be conserved, directed, and given Just and fair remuneration. Efficiency demands this, and Efficiency ^^ soon as business men realize that exploita- not expioi- tion does not pay, and that efficiency does, the tationpays. relations between employers and employees will be less antagonistic, and both will find it to their advantage to work for their common interests. Our industrial progress will to a large extent depend upon our THE ECONOMIC NEED OF EFFICIENCY 9 conforming to the fundamental principles of efficiency. It is only during recent years that this has been realized by business men. This realization and efforts to ascer- tain and follow these fundamental principles is a dollars- and-cents proposition, and as such appeals particularly to business men. The chief aim of this book is to open the eyes of business men to the underlying principles of efficiency, to educate them to the importance of these principles, and to explain their methods and workings in such a way that all business men will profit. With the ignorance and the wastefulness with which our business was conducted throughout the nineteenth century, one marvels at our industrial growth j^^^^^^ and expansion. It is not long ago that each methods of workman ground his own tools, and ran ma- the last chines at rates that seemed to him suitable. *^®^"'y- No worker knew if work could be done better or faster, because he was supposed to go ahead with his task, and not to stop and try experiments. Skilled mechanics learned their trades by observing others work, taking what movements they thought necessary, and doing whatever appeared to their liking. The object was to learn to do a certain task, and little heed was paid to the question whether or not it was the best method. Each man was supposed to be the judge of his own speed. The average man simply worked fast enough to hold his position, and, if possible, to soldier and not be discovered. No attention was paid to protecting workers from machines, as they were supposed to keep out of the way, and if one was injured, it was usually blamed to the carelessness of the worker, and not to the negligence of the employer. With these conditions prevailing in the average business plant, is it a wonder that the progressive business man marvels at our in- dustrial growth and expansion during the last century ? lo ECONOMICS OF EFFICIENCY Management was lax, as everything was based largely upon guesswork. There was little knowledge of the general principles underlying organization, and nTe^hods of ^^e well-organized business was the exception, business Little heed was paid to system, and the average manage- manager kept the details of the business in his head. He was supposed to look after details, as well as important matters, and to get his information by observation. He laughed at system, and thought it hindered rather than fostered success. The only guide as to whether or not the business was prospering was the bank account, the ability to meet obliga- tions. No knowledge existed as to costs, and no system of cost finding, or cost accounting was found. In re- gard to costs, everything was based on guess. Guess, haphazard, chance, and luck were the bases of conduct- ing the average business, until recent years. Such methods work, if coupled with judgment and a more or less large margin between selling and cost prices. With keen competition and small margins they fail. They must be eliminated, and their places taken by cost- finding systems, by organization, and by knowledge in dealing with men, materials, and machines. The expression ^'Knowledge is power" is one which has been handed down from antiquity. Knowledge is Accurate ^^ absolute prerequisite of efficiency, but knowledge knowledge itself is of little avail in obtaining and greater efficiency and business success. The machines. pi-Qpgj. ^se of knowledge is what is needed in business. Efficiency is obtained by first acquiring knowl- edge, and then making proper use of that knowledge. Knowledge as regards machines and equipment has been appKed with varying success. The latter part of the nineteenth century showed great development in the acquiring and the applying of knowledge that obtained THE ECONOMIC NEED OF EFFICIENCY ii greater results from machines and equipment. The appHcation of exact knowledge was during the last century confined to mechanical equipment. Little was done to obtain a knowledge of the human factor, the greatest factor in production. The neglect of this factor was due more to ignorance on the part of the employer than to anything else. Accurate knowledge should be obtained of the human factor in the various phases of business activity, and applied so as to obtain efhcient results. The appHcation of accurate knowledge to the human factor, as well as to the other factors of production, reduces human effort to a minimum and increases production with lessened exertion. The great problem confronting every business man is to furnish daily the prescribed quantity and quahty of work in all its varieties by the most efficient methods, and with a minimum amount of capital locked up in work. Men should be studied as well as machines. Methods of modern science should be appHed to the acquiring and the applying of accurate knowledge re- . garding the human factor in business. The knowledge value of scientific knowledge in industry has applied to long been recognized, but the idea of apply- factor^°^^° ing it to ascertain what a man can do is new. The characteristics of the human element should be carefully studied and analyzed. Much has been done during the past decade, but the study is as yet in its infancy. With its present beginning, much is to be ex- pected from the next few years. Many results have been obtained, but these are slight compared with what will follow. The study will not only benefit large em- ployers, but all employers. The greatest benefit will come to the laboring class in general, as it will assure them proper working conditions, just wages, and higher standards of living. 12 ECONOMICS OF EFFICIENCY Accurate knowledge should replace rule-of-thumb practices, and everything should be done intelHgently and nothing left to chance or ignorance, knowie^dge Careful study and investigation of the human and the factor in all its phases should be made for the human purpose of obtaining exact knowledge. Ex- periments for the purpose of discovering the best methods and ways for shaping action should be conducted with the greatest care. Accurate knowledge discloses wastes, but it requires further action to elimi- nate wastes. It gives conditions most conducive to health and work, but it remains for the employer to apply the knowledge, and to make the working con- ditions the best possible. Accurate knowledge dis- closes the best methods for the performance of a task, but training and cooperation are necessary to put these into practice. Accurate knowledge tells the best ma- terials, machinery, tools, and equipment for work. Accurate knowledge discovers how best to conserve health and strength, and employers should be guided by such in looking after the health of their employees. Health is a prerequisite of efficiency, and everything which impairs health impairs efficiency. Employers should care for employees outside of the plant, as well Requisites ^^ while working. The obtaining of accurate for accurate knowledge demands a careful analysis of the knowledge, gffgct of working conditions, habits, and. work in its various phases upon the worker. It demands a careful study of materials, machines, and equipment, so as to ascertain that which is best suited for perform- ing the work to be done. Success depends upon the care taken in obtaining accurate knowledge, and upon the use which is made of it. A plant should be made to work under condi- tions, as near as possible, to what accurate knowledge THE ECONOMIC NEED OF EFFICIENCY 13 demands they should be. Actual conditions should be studied and changed to meet the demands of accurate knowledge. The conditions existing in thou- success and sands of plants are the result of ignorance, accurate and much of the waste is due to the same cause, ^^^^owiedge. The obtaining and the applying of knowledge obviates guesswork, and eliminates much of the wastes which at present exist in so many of our industrial plants. Each manufactured commodity found in a market is the work of many hands. The development of ma- chinery made possible production on a large scale and, in its turn, greater division of labor ^jent of" to meet increasing industrial needs. Division machinery of labor means the division of the processes of ^J^JaW^^^" making a commodity into a number of sepa- rate processes, and intrusting the worker with the per- formance of one or two of these. A visit to any large factory shows a score or more separate processes in the making of a single commodity, which formerly was made entirely by a single individual. For instance, in the making of a ready-made coat there are thirty- nine distinct processes, and in the making of a pair of men's brogan shoes, no less than eighty-four. Pro- duction on a large scale and the extensive use of ma- chinery make possible an effective utilization of every kind of individual capacity. The proper placing of labor and its proper guidance and training avoid waste of strength, and unite hand- work and brainwork. Division of labor causes gj-ains and unskilled work to be performed by unskilled ability to do, workers, and skilled by experts. Minute divi- requisite in sion of labor or high specialization is a promi- '^^^^®^^- nent factor in our industrial system. The all-round worker has been displaced by the more or less special- ized one. Chance, luck, and guesswork of the old 14 ECONOMICS OF EFFICIENCY regime should be replaced by skill, the application of accurate knowledge, and efficiency. Specialization in industry and subdivision of labor assume a new im- portance. Brawn and muscle should give way to skill and intelligence. Brains and ability to do, and not stores of inapplicable knowledge, are the great needs of our industrial system. Inventions and improve- ments in endless succession are increasing the effective- ness of business activity. They are Hkewise increasing daily the demand for thinking men, — men with the skill and the ability to perform the work necessary for rapid industrial development. The necessity for econ- omy in lowering costs in production has developed intricate, automatic, and highly specialized machinery to a remarkable degree, and is responsible for the present specialization and subdivision of labor. The underlying principle of specialization is division of labor, but it is broader than the ordinary meaning c«^.;oi,vo of the term "division of labor," because it is Specializa- ' tion in its applied to machmes and manufacturmg as broader ^gH^ ^ quarter of a century ago it was com- meaning. ^^^ ^^ ^^^ ^ plant making many forms of commodities. As markets were extended, and com- petition became keener, it was found that it was more profitable to concentrate production on fewer lines of work. The extended markets made it possible to dis- pose of large quantities of product. The lines were narrowed and specialization assumed another form. Formerly, the factory made within its walls all the parts of the article produced. Later, manufacturers found that they could buy many parts more cheaply than they could make them. Enterprising manufac- turers soon found that if they would devote their time to manufacturing bolts, screws, tools, etc., and pro- duce them in large quantities^ they could produce and THE ECONOMIC NEED OF EFFICIENCY 15 sell at a profit to manufacturers using them in small quantities, at a price less than the consuming manu- facturer could produce. Formerly, factories were in a large measure self-sufhcient, with few excep- specializa- tions producing every part of an article, as tioninthe well as the tools used in its production, while ^^^^°^^- to-day, as a result of growing specialization, it is hard to find a factory that is self-sufficient. Every factory depends upon many others, not only for raw materials, but also for its tools and many parts of the article or articles produced. As competition became keener, and the business unit increased in size, the tendency towards greater special- ization in the manufacturing plant constantly speciaiiza- grew. Plants have not only become more tion in ma- specialized, but also machines and tools. The cWnes and tendency towards greater specialization is as great with machines and tools as it is with plants and labor. In a big manufacturing plant, many of the tools and machines are especially designed for their particular functions and no others. The increased specialization of tools, machines, and plants has nar- rowed the work as compared with the old system. It follows that it tends to narrow the field of action of the men employed in a plant. A few years ago, a shoe- maker measured his customer's foot and made the shoe, but to-day, with specialized machinery, the making of a pair of brogan shoes is divided into eighty-four differ- ent processes. Shoemaking is confined chiefly to the mending of shoes, and its place as a trade has disap- peared, and instead there has arisen a highly specialized industry. Markets limit specialization. Specialization depends upon a large market, as a large product must be sold in order to make specialization possible. SpeciaKzation of plant, machinery, and labor is a i6 ECONOMICS OF EFFICIENCY feature of our present-day industrial system. Com- modities are produced more cheaply than under the older Effects of methods, and this fact has attracted the at- speciaiiza- tention of the manufacturer. The influence tionon of the new methods has been the narrowing of the activity of the worker, and the requir- ing of more special skill of hand and head. It confines human activity to a narrower field, and has caused the disappearance of the old-time, all-round mechanic. The concentration of efforts either mental or physical upon a narrower field of activity increases skill and output. The extensive growth of our business unit and the high degree of specialization in our plants made it difficult for one man to know and to retain a grasp of any one field. Specialization increases skill, dexterity, and speed of workers. The worker of to-day is more highly skilled, and far more productive in the few operations that he performs, than was his many-sided predecessor, the all- round mechanic. The simplification of processes, the specialization of machinery, and the consequent division of labor are The dangers consequences of the modern factory system, of special- The necessity of lowering costs of production ization. developed automatic and specialized ma- chinery to a remarkable degree, and is responsible for the present degree of division of labor. The direct result is the specialist laborer, who performs only one of the many operations in the production of a single article. Specialization is a permanent factor in in- dustry, and is an economic necessity in our struggle for markets. It is carried in many cases to such a degree, that if precautions are not taken, it becomes a menace to the worker. It is in cases where operations are repeated rapidly and require little skill or mental effort, but great concentration of attention, that the THE ECONOMIC NEED OF EFFICIENCY 17 menace appears. In such cases, it requires the careful attention of employers, and a careful study of the effects of the monotonous repetition, and of the concentration upon workers, so as not to allow work to proceed to the point of overfatigue. Frequent rests are necessary, as overfatigue impairs health and efficiency, and should be avoided. The highly specialized machines, features of our present complicated industrial system, demand intelli- gent and highly skilled men to attend them. The present need is for workers, skilled and demands intelligent. There never was a time in our intelligent industrial history when this necessity was ^^^j^^^^^ realized as it is to-day, and never before have the pubHc and employers taken such an interest to find methods of obtaining and of assuring the supply not only of skilled, but of intelligent workers. The intelH- gent development of workers has a decided advantage in raising the laborer above the narrowing tendencies of high speciaHzation. Nothing is to be feared from the influence of workers skilled with their hands, and developed in their minds for independent thought and action, but much is to be feared from a body of workers who allow others to think for them. The present ac- tivity in all directions for educating workers has a de- cided benefit in developing independent workers who think as well as perform their manual work. During the last century, industrial progress outran all other forms of development, and it is destined to be greater this century, but the chief attention Requisites will be directed to studying the human ele- for future ment, and making possible its greater effi- industrial ciency. Future industrial progress depends p'^^^®^^- upon the hands and the brains which tend and run the complicated machines. Skill, dexterity, and speed i8 ECONOMICS OF EFFICIENCY combined with intelligent development are what is demanded to-day, and it is well that manufacturers have so early reahzed this necessity, and have taken measures to assure the higher skill and intelligence so necessary for further industrial progress and develop- ment. Modern methods of production favor a con- tinual advance of specialization. Every man should do what he can do best, and only that. It is a fact that the fewer the movements and the simpler, the better and the quicker may work be done. Business success depends upon a most complete subdivision of work, and the greatest number of repetitions of thought and action to the extent of mental and bodily comfort. Speciahzation, when it works correctly, takes into con- sideration not only the worker's efficiency working along lines of habit, but it gives every aid to making methods and environment fit the requirements of mind and body. Progress demands specialization, but it also demands that specialization should not in any way impair health or lower the intelligence of the workers. Specialization should be associated with a careful study of results, so that health is not impaired, and at the same time the intelKgence of workers is raised. Specialization usually leads to standardization. Standardization is setting up and rigidly following standard- Standards or types. It has made considerable ization : its progress in manufacturing, but little advance- meaning, ment in other forms of business activity. The tendency of modern business is towards standardization in product, tools, apphances, methods, environment, equipment, habits, devices, and conditions. It is a necessity in manufacturing for a large market, and is the starting point in every attempt to produce great quantities of goods cheaply and uniformly. Its ad- vantages in increasing ef&ciency and lowering costs of THE ECONOMIC NEED OF EFFICIENCY 19 production are everywhere recognized. The produc- tion of an original type or standard involves concen- tration of thought and skill. It demands expensive study and experimentation by the best talent. When a type is once determined^ its redupHcation is purely a mechanical process. It permits skill, dexterity, and speed on the part of employees, and greatly increases output at a lower cost. In the making of commodities, standardization may be carried to any degree of completeness. It may comprise entire parts of an article, as, for ex- poggi^ie ample, locomotives, typewriters, or watches, extent of Every part of any one of these commodities standardiza- may be made so exactly like the correspond- ing part of every other commodity of the same kind, that perfect exchangeability is secured. The standard for regular product has been set and reached by many manufacturers with many products. The parts mak- ing up the finished product are made separately by workmen often in different establishments. A worker does not have an opportunity to fit the part he is mak- ing to other parts with which it is to work. The part is made according to a standard type, and is made in great quantities. The part when assembled with other parts which go to make the complete article, fits in its place and performs its function usually without the touch of a file. Sometimes an absolute standard of a product may not be possible. In such cases, standard- ization should be carried as far as possible. Standard- ization is the basis of large-scale production, and the tendency is towards adopting types for the parts of regular product, and manufacturing according to standards. The determination of standard methods and the training of workers in their use eliminate much waste 20 ECONOMICS OF EFFICIENCY through eliminating unnecessary movements, and make for greater efficiency. The obtaining of standard time Kinds of ^^^ ^ ^^^k for Comparison with actual per- standard- formance is necessary in increasing effici- ization. ency. The ascertaining of a high quahty, making it standard, and always adhering to it, is a business builder and a valuable asset. Standard en- vironment is important in preventing distraction from work. Wherever possible, standards should be deter- mined and adhered to. Standardization is one of the strongest factors in our industrial system working for greater efficiency, and is a basic structure for suc- cessful competition in foreign markets, and for indus- trial progress. Profit making is the aim and the object of business activity. Profits depend upon the selling of product Competition ^^ ^ greater price than what it costs. From an important their nature, profits may be classed as competi- factorin ^ive and monopolistic. Profits, unless they are monopolistic, depend upon successful com- petition. Competition is a phenomenon which the average business man must reckon with, because his success depends upon his ability to compete success- fully in the market. President Hadley defines com- petition as the effort of rival sellers to dispose of their goods and services, or of rival buyers to secure the goods and services which they require ; an effort limited by the desire of the seller to secure as high a price as possible, and by the desire of the buyer to pay as low a price as possible. Competition is not the product of our present industrial system, as it has existed since the beginning of barter. Under the factory system, competition became a more important factor in busi- ness than it was under the domestic system, when goods were usually sold first and made afterwards. THE ECONOMIC NEED OF EFFICIENCY 21 The practice of our industrial system is the production of goods for the market, and frequently new plants are built or additions made to old to fill anticipated orders. The production of goods for future markets intensified competition which made itself felt in every part of our industrial system. The growth of capital, the various inventions, and the improvements in transportation facilities and in trans- mission of intelKgence increased the size of the business unit, and in the efforts to dispose of petition led product, extended markets to international or to a struggle world's boundaries. To obtain the advan- ^Qg^J^^^ tages of producing on a large scale, a much larger product must be disposed of, and this greatly intensified competition. The best possible method of selling a large product in a competitive market is to undersell one's competitor. Competition resulted in a struggle to lower costs so as to dispose of goods. This made it necessary for the manufacturer to do every- thing possible to decrease the per unit cost of his good. At first, as previously stated, he directed his whole attention to improved machinery, equipment, and pro- duction on a larger scale, with its greater specialization and standardization. Competition became keener and keener and new devices and methods had to be devised to lower costs, or else the market would be lost. It was as a last resort that attention was attracted to the human element, and its study at once revealed wastes which it was never thought existed, and the fact was discovered that costs could be lowered through the elimination of these wastes. The basis of successful competition lies in efficiency, and the more efficient a plant, the better able will the manufacturer be to com- pete successfully in the market. Production in its manifold phases is the center of the 22 ECONOMICS OF EFFICIENCY present business activity. Production applies to the creating of utilities or capacities in goods for the pur- pose of satisfying human wants. The utilities utilities ^ ° with which production is concerned may be divided into four classes — form, place, posses- sion, and time. A new form utility is created by a change in form, shape, weight, color, taste, smell, or any other quality of a thing which increases its capacity to satisfy human wants. Utility may be added by a change in place. Coal in New York is worth more than it is at the mine. Utihties may be added to goods by a transfer of ownership from one individual to another, or by a change in time. Certain kinds of wines, musical instruments, as well as many other products improve in quality by the mere lapse of time. Things that grow, like trees, plants, and animal Hfe, increase in quantity in time. The effort of keeping commodities until they are of more effective service involves the creating of time utilities. In production there is cooperation of many economic elements. In a producing plant one finds land, build- ings, machinery, tools, raw materials, money, Moduction goods in process of production, finished goods awaiting sale, labor, and management. With every business enterprise, certain economic elements are needed for its operation. Generally speaking, each economic element which enters into an industry is a factor, but it is customary to group the numerous factors into four classes, land, labor, capital, and management — and to subdivide each into numerous divisions. Land includes not only the surface of the earth, materials above and beneath it, bodies of water and what they contain, but the physical and the natural forces which assist man in his eco- nomic activities, as climate, winds, tides, and rainfall. THE ECONOMIC NEED OF EFFICIENCY 23 Of equal importance with land in production is man. By his efforts, the raw materials are taken from the mother earth, and converted into utilities to satisfy human wants. The efforts of man directed toward the creation of utihties are called labor. Labor includes not only the efforts of persons in the creation of utilities of a material form, but serv- ices that yield utilities of an immaterial nature, such as those of the doctor, lawyer, or domestic servant. Land and man are the two primary factors of business, but they can accompKsh little without the . assistance of a third factor, capital. Capital *^^ consists of goods produced in the past and used for further production. The capital of a country consists of buildings used for industrial purposes, tools, ma- chinery, transportation systems, transmission of in- telHgence systems, money, raw materials, finished goods awaiting sale, etc. Capital is not, like land and labor, an independent factor in production, but is obtained by the apphcation of human efforts to land. The use of capital in its various concrete forms greatly assists production, economizes labor, and permits the extensive utiKzation of materials and natural forces. The task of cooperating land, labor, and capital in a business enterprise is an important one. The person who per- forms this task has come to occupy such an im- portant place in modern business that it is ^ent^^^' necessary to regard this function, the man- agerial, as a separate factor, distinct from other classes of labor. The managerial function is the most impor- tant factor in our complex industrial system. It is true that there must be land, labor, and capital, but they are of little consequence without organization, super- vision, and management. The managerial function of coordinating land, labor, and capital, of supervising all 24 ECONOMICS OF EFFICIENCY activities, and of assuming all the responsibilities and risks of business is the bone and sinew of every business enterprise, and its successful performance means success. The United States has within the brief span of three score years and ten, one's allotted life, come from com- Business parative obscurity to contending for first place men should among the world's industrial nations. If she pay heed to continues her rapid industrial growth for the ciency. ^^^^ ^^^ decadcs, she will easily lead all indus- trial countries. Our business men should awaken to the great need of a careful study of the factors of pro- duction and of business activities, in order to eliminate wastes, and to ascertain how to get the greatest results from the use of the different factors of production. They should heed the cry of efficiency, find out its methods, and do their utmost to eliminate waste, the greatest evil in production as well as the greatest hindrance to industrial expansion and growth. QUESTIONS 1. What is the factory system? How did it affect labor? 2. Why was the human factor so long neglected? What attracted business men to its importance ? 3. What is efficiency ? Why is it the goal in industry ? 4. What is conservation of workers ? Why was it so long neglected ? 5. Give an account of methods of management during the nineteenth century. 6. How does the expression "Knowledge is power" apply to business ? 7. How should accurate knowledge be obtained and what use should be made of it ? 8. What is the meaning of specialization as applied to (a) labor, (b) machines, (c) plants? 9. Show that specialization is a permanent factor in our indus- trial system and an economic necessity in our struggle for markets. 10. What is standardization? Mention the various kinds of standardization. THE ECONOMIC NEED OF EFFICIENCY 25 11. What are the advantages arising from standardization? 12. What is competition ? Show that competition is an impor- tant factor in business. 13. Name and define the different kinds of utihties. 14. Name and define the different factors in production. 15. Why is the managerial function the most important in our industrial system ? REFERENCES Books N. A. Brisco, "Economics of Business," Chs. I, II; F. T. Carl- ton, "The Industrial Situation," Chs. I, II; W. H. Cottingham, " Business Success" ; J. C. Duncan, "The Principles of Industrial Management," Ch. VI; R. T. Ely, "Evolution of Industrial Society"; H. Emerson, "Efficiency," Chs. II, V, VI, VIII; H. Emerson, "The Twelve Principles of Efficiency," Chs. XI, XII; L. Galloway, "Organization and Management," Part I, Chs. I, II, III; H. L. Gantt, "Work, Wages, and Profits," Chs. I, II; C. B. Going, "Principles of Industrial Engineering," Chs. I, II; C. D. Hine, "Modern Organization," Ch. IV; J. A. Hobson, "The Evolution of Modern Capitalism," Chs. Ill, IV, V, VI; J. A. Hobson, "The Science of Weahh," Chs. Ill, IV; J. A. Hobson, "The Industrial System," Chs. I, II, XI; W. Kent, "Investigat- ing an Industry," Chs. I, II ; D. S. Kimball, "Principles of Indus- trial Organization," Chs. I-V; F. Koester, "The Price of Ineffi- ciency," Ch. V; J.T.Lincoln, " The Factory " ; D. H. Macgregor, "Industrial Combination," Chs. I-IV; F. L. McVey, "Modern IndustriaHsm," Part II ; F. R. Mason, " Business Principles and Organization," Chs. I-IV; "Business Administration," edited by W. D. Moody, Vol. I, pp. 179-288; C. C. Parsons, "Business Administration," Ch. I ; C. L. Rapeer, "The Principles of Wealth and Welfare," Section II; W. C. Redfield, "The New Industrial Day," Ch. I; R. Robb, "Lectures on Organization," pp. 1-23; S. E. Sparling, "Business Organization," Chs. V, VIII; W. D. Scott, "Increasing Human Efficiency in Business," Ch. I; T. Veblen, "The Instinct of Workmanship," Ch. VIH; T. Veblen, "The Theory of Business Enterprise," Chs. II, III, IV. Articles P. Ballard, "Scientific Management and Science," Gassier, Vol. 41, pp. 425-430; L. D. Brandeis, "Business, — the New 26 ECONOMICS OF EFFICIENCY Profession," System, Vol. 22, pp. 365-369 ; F. E. Cardello, "Indus- trial Administration and Scientific Management," Machinery, Vol. 18, pp. 843-847; M. L. Cooke, ''The Spirit and Social Sig- nificance of Scientific Management," Journal of Political Economy, Vol. 21, pp. 481-493; H. Diemer, "Industrial Management," Journal of Accountancy, Vol. 13, pp. 272-278; J. M. Dodge, "Industrial Management," Southern Machinery, Vol. 30, pp. 171- 173; E. C. Eckel, "The Growth of Modern Industrialism," Engineering Magazine, Vol. 45, pp. 321-333; J. Hartness, "Spe- ciaUzation and its Significance," Sibley Journal of Engineering, Vol. 28, pp. 253-260 ; W. Irwin, "The Awakening of the American Business Man," Century, Vol. 81, pp. 689-692 ; E. D. Jones, "The Administrator as Scientist," Engineering Magazine, Vol. 47, pp. 163-171; W. D. Orcutt, "The Conservation of Human Effort," Harper, Vol. 122, pp. 432-437 ; A. G. Popcke, "The Rela- tion of Capital, Labor, and Efficiency in Manufacturing," En- gineering Magazine, Vol. 43, pp. 857-863 ; Sir Wm. Ramsay, "Where Science serves Business," System (English Edition), Vol. 25, pp. 215-219; A. W. Shaw, "Scientific Management in Business," Review of Reviews, Vol. 43, pp. 327-332 ; H. F. Stimp- son, "Business Administration as a Constructive Science," Iron Age, Vol. 87, pp. 662-663 ; W. Talbot, "The Human Element in Industry," Iron Age, Vol. 91, pp. 366-368 ; F. W. Taylor, " Prin- ciples and Methods of Scientific Management," Journal of Account- ancy, Vol. 12, pp. 117-124; F. W. Taylor, "Principles of Scien- tific Management," American Magazine, Vol. 71, pp. 570-581, 785-793 ; Vol. 72, pp. 101-113 ; S. S. Tuthill, "Business Economy and Efficiency," Modern Methods, Vol. 20, pp. 545-550; D. Van Alstyne, "Modern Shop Management," Iron Age, Vol. 87, pp. 970- 972; T. J. Zimmerman, "The Development of National Manu- facture," System, Vol. 10, pp. 216-227; "The Present State of the Art of Industrial Management," American Society of Mechan- ical Engineers, Transactions, Vol. 34, pp. 1131-1229; "Present State of the Art of Management," American Machinist, Vol. 37, PP- 757-762 ; "The Present State of the Art of Scientific Manage- ment," Industrial Engineering, Vol. 12, pp. 235-239. CHAPTER II Efficiency A FEW years ago, many believed that markets could be obtained and held by means of large-scale production. The economies and the advantages arising E^oi^tionof therefrom, it was thought, would so greatly re- the effi- duce costs of production that American indus- ciency tries could continue to compete successfully °^°"^®°^®^*- with the world. Large-scale production resulted in keener competition, and this had to be met by lower costs. Manufacturers, driven by the necessity of a further lowering of costs, turned their attention to their own plants. Improvements in machinery had followed in rapid succession, and Kttle more could be expected in that direction. Attention was by accident directed to labor, and its study has proven that lower costs must be sought through this neglected factor in production. The study of the human factor in production revealed the existence of much waste in every plant. Manu- facturers marveled at the extent of the waste found in their plants, and soon realized that its elimination meant the lowering of costs, and the possibiHty of ex- tending markets. The movement for the elimination of wastes is given the name of efficiency. The efhciency movement spread with great rapidity until it became first national, and then international. Efficiency is a pubHc need, and is not only necessary to meet compe- tition, but to conserve a nation's resources and its most valuable asset, its working classes. 27 28 ECONOMICS OF EFFICIENCY It is difficult to give a definition of efficiency that will be accepted by all who are endeavoring to promote its development in business activities. The h?meanfng. ^sual meaning of efficiency is the ratio between the actual performance of an operation and the maximum performance which has been determined to be possible. The two important problems are what ought to be in case of an action and what ac- Scrrt*in. tually IS. The ratio of what is to what ought to be gives the efficiency of an actual per- formance. Efficiency, therefore, equals actual performance standard performance It is purely relative and should always be expressed as a fraction, in vulgar or decimal form. The value of a fraction is changed by changing either numerator or denominator, and both should therefore be determined if the result is to be a determined quantity. The numerator may be easily ascertained by actually measuring a performance under observation. The diffi- How to find culty comcs in finding out the correct value of the denomi- the denominator. The denominator should be nator. determined by an expert who investigates ma- chines, tools, materials, methods, and arrangements, and ascertains those best adapted for the performance of a task. He carefully studies the performance of the task and ascertains the necessary movements and the time required for their performance. As a result of scientific investigation, and the use of a stop watch, the expert decides what time the performance of a task ought to take, or the denominator. The denominator becomes the standard to be striven for in future per- formances. Workers should be trained in the methods which are ascertained to be the best for performance EFFICIENCY 29 in standard time. The work as actually performed should be carefully studied so as to eliminate misdirected motions, and efficiency increases as the methods of actual performance and the actual time spent approach the standard. As apphed to business, efficiency is the rela- tion between an action which has produced . a known result and the action which has been j^ business, previously determined for producing a similar result. The efficiency of an action varies as its perform- ance varies with the standard. It increases as the per- formance approaches the standard, and the aim should be to have as Httle difference as possible between the two. The real value of computed efficiencies Hes in the ex- tent to which they indicate the means of eliminating wastes, and the direction in which energy and computed efforts may be best directed. Computed effi- efficiencies; ciencies are of little value unless they are used *^®"^ ^^^^®' for the purpose of studying actual work in order to dis- cover wastes, and efforts are directed to devise means of their eHmination. The purpose of efficiency is to eliminate waste, and this is the object of efficiency! the scientific study of plant, machines, and men. The eHmination of waste should be the goal in a business plant. It is a condition which allows pro- duction at lowest cost, and successful competition in markets, national and international. In every busi- ness plant, wastes are prevalent, and business men are usually blind to their extent. Ignorance has been and is still the chief factor causing high costs and failures. Efficiency demands that business men inves- scientific tigate and study the various factors in their study to re- enterprises. An initial study usually proves veal wastes, so successful that it leads to a more extensive one. The elimination of wastes may be slow, but every elimination lessens costs and increases efficiency. Many believe effi.- 30 ECONOMICS OF EFFICIENCY ciency is only attained when ideal conditions are reached. These are never reached, because the discovery of new methods, machines, etc., continually raises standards. The elimination of wastes in any form increases efh- ciency and lowers costs. Business men are realizing the importance of the efficiency movement and are taking an increasing interest in it. Efficiency has received the greatest attention and the greatest advancement has been made in manu- . facturing plants. Wastes are found in needed in every kind of business enterprise, and their all kinds of elimiUiation means lower costs and increased business efficiency. Efficiency, therefore, is of the enterprises. -^ -^ ' , . ' greatest concern to every busmess man, it matters not tJie character of his business activities. It is lacking to a remarkable degree in the conducting and ia the management of railroads and transportation companies. If sincere efforts were made to secure efficiency, the result would be a great reduction in the cost of operation of public utihty corporations, and it would be possible to give better service at reduced rates, and the companies would at the same time enjoy the same if not greater net earnings. PubHc officials should also pay particular attention to efficiency. Public ad- T,« . ministration has been in the past, and is at Efficiency i . i n* i in public present, conducted with appalling wastes, and administra- the result is that people receive poor returns *^°^* for the public money expended. The public should demand a more efficient use of its funds, and if this were done, it would put an end to graft and waste, and secure more than double results for the same amount of pubHc money expended. The entrance of efficiency into our pubHc administration would be a most impor- tant factor in placing it on a businesslike basis. One of the greatest wastes in this country has been in the EFFICIENCY 31 expenditure of public moneys. The sooner the public realizes the need of efficiency in public administration, the better it will be for the country at large. There is no field where efficiency, if apphed, would bear greater fruit than in our educational system. Our schools are seats of appalling wastes. The -vvastesin most important period in the hves of the young our educa- boys, who are destined in the future to fur- ^°^^^ nish labor and executive abiHty to manage ^^^ ^^^' the great business enterprises, is largely taken up with training which is of little use to them in preparation for their life's work. How much of the time of children is practically wasted by taking their time for studies which are of little or no use to them in their future work ! The aim in our industrial system should be a training which gives the best preparation for our boys in order that they may become efficient and intelligent pro- ducers. This demands a careful preparation of school curricula with this aim in view, and the adoption of the best methods of instruction, so as to reach the result with the least expenditure of time, energy, and money on the part of the students, parents, and pubHc in general. The years from fourteen to sixteen are years of great waste in the Hves of many children. They finish gram- mar school, but are too young to enter a trade provisions or apprentice school. Their parents cannot for indus- afford to send them to high school, so they ?"»! train- are put to work at whatever they can get. ^^' They join the ranks of cheap, unskilled labor, and by the time they have been working a couple of years, many lose the desire to become apprentices, and con- tinue unskilled or, at most, semi-skilled workers. How to eliminate this waste is one of the most perplexing educational questions of to-day. The answer seems to be that the training must come from either or both 32 ECONOMICS OF EFFICIENCY of two sources, the establishment of industrial schools, or the extension of the training of grammar schools. Either will give good results, and time should not be lost in making provision for this much-needed training. Efficiency demands workers developed mentally, physically, and morally. The schools throughout the land should follow large cities in looking after and moral ^^^ physical development of children. Effi- training; cicucy demands a strong, healthy body for tanc?^°^' work, and this takes us back to the physical development of children. This phase of train- ing has in the past been sorely neglected, and is very important with every boy and girl. Children should be taught proper habits of living, proper ways of look- ing after their persons, and the necessity of proper diet, regular periods of rest, and proper environments for Hving. The evils of the use of alcohol, tobacco, and of intemperance in every form should be impressed upon them. The acquiring of good habits of Hving is very essential for efficiency, and they should be ac- quired in the home and in the school. Efficiency is as badly needed in our schools as it is in our industrial plants. The study of how to obtain more productive per- formance of work is not new. It is one of the oldest things in the world. From the most primitive methods for ^^^^s, men under a natural inherited stimulus obtaining have always sought to obtain a desired result increased -^ith the least possible effort. Since man be- labors^ ^°°^ g^^ ^^ work for man, various methods have been devised for converting a given outlay of time and labor into the largest attainable results. The methods are as numerous as they are varied, and in- volve every device of human ingenuity. Kindliness and cruelty, high and low wages, the selection of the most intelligent grade of workers, carefully supervised EFFICIENCY 33 training, steady work, and reward schemes have all been tried with varying results. The question of ob- taining the best possible results with the least possible effort dates back to antiquity. The idea of applying the term efficiency to the human element in business is new. It is only recently that people have given thought to increasing re- Applying of suits by paying attention to the subject of efficiency to physical and mental work. The efficiency ^°^^' movement is the extension of efficiency to human ef- forts in business, and the application of scientific study and investigation to methods of work, requirements for work, and conditions of human beings for work. It represents the introduction of science into every phase of business activity, and will result in the reduction of business activities to a scientific basis. The wastes existing in every form of business which the initial study of efficiency has brought forth emphasize its importance in the struggle in every form of competitive business to lower costs. The efficiency movement has suddenly come into prominence and is attracting the attention not only of business men, but of thinkers in every industrial country of the world. Many believe that efficiency means simply doing things well. It means far more, because things may be done well, but at the same time they may be done as well in far less time, with less energy ex- done^wS! pended, and with less outlay. Usually, men the old vs. say things are done well, and it is only a guess, *^® ^?^ 1 1 ^ ri ' 1 1 nieaning. because they have no way of knowing that such is the case. Efficiency is a positive relation between a standard which is possible of accomplishment and the actual attainment. The highest efficiency is therefore when the actual attainment reaches the standard. This should be the aim in every enterprise. The obtaining 34 ECONOMICS OF EFFICIENCY of standards is of the greatest importance in efficiency. They should be based on actual knowledge and not on guess. The obtaining of actual knowledge demands the services of experts, and careful study and experi- mentation. The standards should serve as a basis for scientific study of methods, materials, tools, machines, and equipment in order to devise means of eliminating wastes, and bringing actual work as near as possible to standard. It is never advisable to be too radical in changes, as the greatest success comes from the gradual introduc- Changes tion of innovations. Many wastes may be shoxiid come eliminated by slight changes. A careful slowly. study of machines, tools, materials, equip- ment, and methods will reveal wastes which may be wholly or partially ehminated by the management without any, or with only slight interference with the working force. The greatest difficulty comes with the elimination of human wastes, or the directing of human efforts in such a way, that the greatest results may be obtained with the least expenditure of effort. A care- ful study of methods, machines, and equipment will give standards, or the best methods of doing tasks, and the time necessary. The introduction of best methods of doing work in a working force will invariably meet with opposition, and requires tact and judgment How to ^^ the part of the management. If changes introduce are made slowly, the workers taken into con- changes, fidence, and Kberally rewarded for their ef- forts, and for following proper methods, opposition will be overcome without antagonism, and at the same time the cooperation of the working force will not only be maintained, but strengthened. The introduction of efficiency to any extent in an enterprise is no easy mat- ter. Tact, judgment, taking men into confidence, and EFFICIENCY 35 fairness and justice in dealing with the laboring force are essentials for success. Efficiency is primarily concerned with the eHmina- tion of wastes in every form of business activity. The scientific study of the factors in production is for the purpose of ascertaining proper ^aste.° methods of doing work for a guide in eHminat- ing wastes. Waste has been defined as the difference between what is and what should be. Time, energy, and material are wasted in an infinite number of ways. Much waste frequently occurs in buying and in using materials. In buying, waste is the difference between what it should cost to secure the material which is determined by scientific tests to be buying "^ the best adapted to producing best results, and what is actually paid. Take, for example, the buying of coal. Careful tests should be made to determine the grade of coal which gives the greatest number of heat units per ton, to buy this grade, and to test it upon dehvery in order to see that it is obtained. Much waste exists in the use of materials. By care- ful testing and experimentation, a standard may be obtained as to what use and method of use waste in should be made of materials, in order to pro- using duce a given product under the most favorable ^^^t^nais. conditions. A comparison of this standard with what is actually used gives the waste. Under old methods, it was absolutely impossible to discover the extent of waste in the using of materials, and even the detection of, its presence was usually a matter of accident. Effi- ciency demands the ascertaining of standards importance in the using of materials, and these should of stand- give the best quahty of material needed for ^^^• production, and the amount which should be used under best methods. Standards decide not only the exist- 36 ECONOMICS OF EFFICIENCY ence of wastes, but, by comparison with the actual amount used, give the extent. They also give a basis for rigid investigation, which, if properiy and scien- tifically conducted, results in the elimination of much waste and the saving of many dollars. Time is one of the important items in business, and more wastes occur from lost time than from any other cause. Loss of time increases costs, it matters ^g*®°^ not the kind of business enterprise where it takes place. Wasted time is the difference between the time taken to perform a task under the most favorable conditions and the time actually spent. Time in a factory is lost in many ways, some ?°osf °^^ of the chief of which are : waiting for supplies or materials, waiting for other parts of the plant, breakdowns, not starting machines on time, stopping before the end of the working day, not running machines to capacity, running machines in bad repair, using tools in bad repair, not using best machines and tools for work, not using best methods of production, and soldiering on the part of workers. One or more of these forms are found in every kind of business. The work of efficiency is the reduction of these to a minimum. Great wastes are found in every branch of industry from misdirected energy. A prominent investigator of national reputation declares that misdirected ^ergy°^ energy is the greatest of wastes. The prob- lem of lowering costs through the elimination of wasted energy is of recent date. The best method for How to performing a piece of work with the least ex- eiiminate penditure of effort should be discovered by wasted scientific study, and this should be made energy. standard. The men should be trained in this standard and precautions taken to make certain of its adoption and use. This is a decided contrast to the EFFICIENCY 37 old method of allowing every employee to use his own method of doing a piece of work, and giving no thought as to whether unnecessary movements were taken. There is a right way and a wrong way to do a piece of work, it matters not what it is. The right way should be ascertained and made standard. The presence of the wrong way means waste and higher costs. This is true with every kind of labor and with the performance of every kind of task. Efficiency is concerned with the discovery of the right way and having work per- formed according to this standard. The detection of wasted energy and its elimination is a problem of efficiency, and is a subject that deserves the closest attention of every business man. The aim of a busi- ness enterprise should be to produce results with the greatest economy, with the preservation of human health, and with the least possible waste of energy or of time to either man or machine. Strenuousness and efficiency are not synonyms, but are antagonistic in meaning. The former demands the putting forth of extra effort, while the latter strenuous- stands for the conservation of human energy, ness vs. Strenuousness overtaxes the strength, but ®^"®^<^y- efficiency conserves it. The former brings greater re- sults with greater efforts, while the latter brings greater results with lessened efforts, through the elimination of unnecessary movements and the proper directing of energy. The efficiency pace is one which a -^q^j-^q ^f. worker can maintain from day to day with- ficient, but out extra physical, mental, or nervous strain. ^^^ stren- It is the pace of continuous work, and the one which does not overtax strength or impair health. The strenuous pace is the spurt of a short time, which can- not long be maintained without causing an extra strain upon the human system, undue fatigue, and; if continued, 38 ECONOMICS OF EFFICIENCY impaired health. To walk four miles an hour is efficient, because this can be kept up without undue exertion, but to hasten along at six miles an hour is strenuous, because in an hour or two at this pace, a person will be exhausted, and incapacitated for further walking. The efforts of man should be made efficient, but not stren- uous. Efficiency means continuous work, while stren- uousness stands for temporary spurts. Efficiency does not injure the worker, while strenuousness, if continued, is exhausting and very injurious to health. Strenuous- ness is something to be avoided if the goal is efficiency. Men, women, and children of the industrial classes are the greatest gainers from efficiency. A basic struc- Efficiency ^^^^ ^^ efficiency is health, and the demands protects upon employers to guarantee the maintaining health. ^f ^ healthy working force, through giving best possible working conditions and environment, through paying special attention to the maintenance of health, and through training in proper habits of Hving, benefit all members of the working class. Many workers have a fallacious idea that efficiency stands for strenu- ousness, something which demands efforts which ex- haust and undermine health and unfit workers for a long period of service ; whereas it stands for the reverse, the taking of every precaution to preserve and main- tain health and to prolong the productive period of workers. Efficiency demands working conditions most conducive to health, and a wage which assures a stand- ard of living of a nature to give health, recreation, and The pro- ^ higher level of intelligence. It banishes tection of child labor, and assures the training of chil- chiidren. ^yqtl to bccome normal men and women, and developed mentally, physically, and morally. Efficiency demands physically sound and healthy bodies, a high intelhgence, and a high sense of morality, and is gained EFFICIENCY 39 not by a greater expenditure of energy, but by turning the energy used into the most productive channels. EiB&ciency demands close attention to the training and the education of boys and girls, in order to develop them into men and women, physically, men- Benefits tally, and morally fitted to become efhcient from producers. This will in the future be the efficiency, means of raising industrial workers to a higher intelli- gence, which will be a decided benefit to them, and to society in general. Efficiency, in place of degrading workers, lowering standards of Hving, and narrowing intelligence, works to the advantage of every laboring man in raising standards of Hving, in guaranteeing him means of obtaining higher intelKgence, and in making him not only more skilled and more intelKgent, but a better citizen. The efhciency movement demands in- telligent workers and the employing of these in a way to attain the best possible results, with a given expen- diture of time, energy, and outlay. This should be done by conserving in every way not only health, but physical and nervous vigor, and by creating conditions which permit workers to work out their own happiness and contentment. Efhciency is based upon knowledge. It requires the obtaining of accurate information, and then the correct appKcation of it. Efficiency is simply the importance careful investigation of every problem of the of knowi- business world in order to determine its best ®^^®- solution. It introduces scientific methods of research to problems of business. Every step in business should be based upon definite knowledge of how it can best be done. Ef&ciency depends upon ^f^^^jf knowledge which is not a matter of guess- work, but which comes from a careful, painstaking, and scientific investigation. It requires critical observation, 40 ECONOMICS OF EFFICIENCY accurate description, careful analysis, and careful classi- fication of industrial and business phenomena. The aim is to get accurate knowledge, not only about ma- chines and materials, but also about workers. Accurate knowledge is used as a basis for devising means for the ehmination of wastes of time, material, and energy, and is the corner stone of efficiency and of success. Ignorance, rule-of-thumb methods, and lack of skill are factors increasing costs and inefficiency. What is Importance ^^^^ wasteful and costly than the old method of scientific of leaving every worker to guess at the best study of -^ay of doing his work ? Customary ways of doing things are inefficient and wasteful. We are hving in an age of science, but at the same time in one of great wastes. The requirement is the directing of science to business in all of its manifold phases, in order to eliminate wastes. The introduction of scientific study of business methods aroused, at first, much criti- cism from all classes of business men, but to-day this attitude has materially changed, and business men are realizing that scientific study in business is the right arm of business progress. Business men are daily realizing that in this age of keen competition and of close margins it is necessary to run business on a scien- tific basis. The careful study of every phase of business and the application of science and accurate knowledge are factors increasing efficiency. Those who do not heed the demands of efficiency, and still conduct their business on the old system of guesswork, will find themselves severely handicapped, in their struggle to make profits. Only a few years ago, if a man advanced a new idea in business, he found himself and his inno- new ideas vation ridiculed on every side. To-day, busi- ness men are on the search for new ideas which will be helpful in lowering costs, and all suggestions EFFICIENCY 41 are given a respectful hearing. Business men are real- izing the extent of waste in the old methods of doing things, based on haphazard and guess. They are hav- ing brought home to them with increasing emphasis, the necessity of a careful study of every phase of eco- nomic activity in a business enterprise, so as to ascer- tain the best methods of performance with the greatest eHmination of wastes. This is the age of science in busi- ness, and also the age of lowering costs by elimination of wastes. With this reaHzation, and the appHcation of science to business, the business world will make greater advancement and greater industrial progress. Efficiency is the applying of scientific method, in- vestigation, and research to business. There are many ways of doing things, but only one is best. This is the most efficient way, and the aim J^^g^t^ay of every business man should be to find the best way for every task in his business, and to have the actual performance approach as nearly as possible to the best. The old method does not pay any heed to ascertaining the best way, while the new, or efficient method finds the best way first. When business is conducted on improved methods, it is run by proved knowledge, rather than by guess. Efficiency utilizes to the fullest extent the valuable experience of the past. A science of work takes the place of the old rule-of- thumb methods. A substitution of exact knowledge is made for guesswork, efficiency increases, and at the same time wastes are reduced and profits increased. The ascertaining of the best way for every task is the first problem of efficiency. The second is the mak- ing of the plant and equipment in such condi- Problems lion that the one best way may be accom- to be solved plished in the time prescribed by experts, inefficiency. The third is the selection and the training of the workers 42 ECONOMICS OF EFFICIENCY and the giving of instructions, so that they may, with the equipment, perform their tasks in standard time. The fourth is proper remuneration of labor, so that there will be an incentive for workers to follow instruc- tions and to do their part in performing the tasks ac- cording to standard methods in standard time. Effi- ciency systems are various methods for the purpose of increasing the efficiency of each individual in a plant. Efficiency is gained not by a greater expenditure of energy, but by the ehmination of waste, and by getting the greatest productive results from energy, materials, and equipment. There are various degrees of efficiency. The ehmina- tion of wastes of time, energy, or materials, it matters Various de- ^ot how slight, results in increasing efficiency, grees of Efficiency is of special interest to the man with efficiency. ^ small business, as it is to the million-dollar corporation. It is giving business a critical aspect, making a study of how things should be done, and how they are done. It would appall the average man, if he were aware of the profits he is losing annually through ignorance of how work is performed, and of how it should be performed. Every saving of waste is a step towards greater efficiency and one towards increasing profits. Efficiency has assumed such importance, that it is con- sidered one of the fundamentals of the industrial system. QUESTIONS 1. Give the evolution of the efficiency movement. 2. What is efficiency ? How is it ascertained ? 3. What is the value of computed efficiencies? What pre- cautions should be taken in computing efficiencies ? 4. What will the public gain by the adoption of efficiency methods in public administration? 5. What wastes exist in our educational systems ? How may they be eliminated? EFFICIENCY 43 6. What is the importance of physical and moral training ? 7. Compare the old methods for obtaining increased labor results with the new. 8. Compare the old methods of doing work with the new. 9. What precautions should be taken in the introduction of changes ? 10. Mention the different kinds of waste. How may each be eliminated ? 11. What is the relation between strenuousness and efficiency ? 12. Mention the benefits gained by the laboring classes from the adoption of efficiency methods. 13. What is the importance of scientific study in business? 14. Why should business men be on the continual search for new ideas ? How may new ideas be obtained ? 15. What problems must be solved in ef&ciency? REFERENCES Books L. D. Brandeis, "Scientific Management and Railroads"; N. A. Brisco, "Economics of Business," Ch. IV ; " Business Admin- istration," edited by W. D. Moody, Vol. II, Ch. VII; H. N. Casson, "Ads and Sales," Ch. I; M. L. Cooke, "Academic and Industrial Efficiency," Carnegie Foundation for the Advancement of Teaching, Bulletin 5 ; H. Emerson, "Efficiency" ; H. Emerson, "The Twelve Principles of Efficiency"; H. L. Gantt, "Work, Wages, and Profits," Chs. I, II; L. H. GuHck, "The Efficient Life," Ch. II; H. Munsterberg, "Psychology and Efficiency"; W. C. Redfield, "The New Industrial Day," Chs. VIII, IX; H. A. Ruger, "The Psychology of Efficiency"; W. D. Scott, "In- creasing Human Efficiency in Business," Chs. I, X. Articles H. G. Bradlee, " Limitations of Scientific Efficiency," American Machinist, Vol. 34, p. 984; L. D. Brandeis, " The New Concep- tion of Industrial Efficiency," Journal of Accountancy, Vol. 12, pp. 35-43; F. E. Cardullo, "Causes of Industrial Inefficiency," Machinery, Vol. 18, pp. 931-935; H. Casson, "Personal Effi- ciency," Greater Efficiency, Vol. 3, pp. 67-74; F. A. Cleveland, ''Efficiency in PubHc Management," The Efficiency Society, 44 ECONOMICS OF EFFICIENCY Transactions, Vol. I, pp. 219-227 ; F. B. Copley, "How it Works: What Manufacturers and Workmen are getting out of Scientific Management," American Magazine, Vol. 75, pp. 11-17; J. C. Duncan, "Efficiency," Journal of Accountancy, Vol. 12, pp. 26- 34; T. A. Edison, "How Science Aids Business," System, Vol. 10, pp. 229-231 ; H. Emerson, "Efficiency," System, Vol. 19, pp. 37- 44; H. Emerson, "Philosophy of Efficiency," Engineering Maga- zine, Vol. 41, pp. 23-26; H. Emerson, "Standards of Efficiency in Shop Operations," Iron Age, Vol. 88, pp. 204-206; C. B. Going, " The Efficiency Movement," The Efficiency Society Transactions, Vol. I, pp. 11-20 ; H. L. Gantt, "Industrial Efficiency," Machinery, Vol. 18, pp. 700-702; H. L. Hollingworth, "The Psychology of Efficiency in Work," Scientific American Supplement, Vol. 74, p. 59; D. S. Kimball, "Another Side of Efficiency Engineering," American Machinist, Vol. 35, pp. 263-264 ; H. T. Lewis, "Problem of the Efficiency of Labor," Popular Science, Vol. 82, pp. 153-162 ; F. C. Myers, "Some Facts Regarding Efficiency," Southern Machinery, Vol. 29, pp. 3-4 ; M. W. Mix, "Efficiency, Its Use and Abuse," Southern Machinery, Vol. 30, pp. 178-180 ; O. E. Perrigo, "Real Efficiency, What It is and How to Attain It," Southern Machinery, Vol. 29, pp. 185-187; H. S. Philbrick, "Scientific Management," World To-day, Vol. 21, pp. 1167-1170; Polakov and Hanmer, "What is Efficiency?" Gassier, Vol. 44, pp. 82-86; J. C. Smallwood, "The Efficiency Principles of Technical Educa- tion," Engineering Magazine, Vol. 42, pp. 915-920; H. F. Stimp- son, " Efficiency in Its Relation to the Consumer," Gassier, Vol. 40, pp. 313-317 ; H. H. Suplee, "Some Basic Principles of Efficiency," Gassier, Vol. 42, pp. 233-238. CHAPTER III Management and the Plant The problem of increasing efficiency is essentially a problem of the management. An attempt to reduce management to a compact body of fixed rules ^j^^ founda- and principles common to all enterprises tion of ef- would be foolhardy, yet there are certain es- ficientman- tablished and well-defined laws and principles ^2®™®^ • which are of great value as aids in determining the or- ganization of any particular business enterprise. It was only a few years ago, that business men ridiculed the idea of using in business anything that was taken from the writings of others. It was not denied that knowledge of management would be of great value, but it was believed that one could learn to manage only by going out and watching others manage. Recently, it was discovered that good management is founded on laws, practices, and methods which may be expressed in simple language, and that their study is of great assistance to business men in making their management more efficient. The foundation of management is efficient organiza- tion. Organization consists of individuals, and the object is to unite these into a body working for a common purpose. Extreme care should tion^^ts" be taken in the selection of men, and their meaning assignment to tasks for which they are es- ^^^^™- pecially adapted and properly trained. The duties of all should be carefully defined, so that no friction will arise through a misunderstanding in giving 45 46 ECONOMICS OF EFFICIENCY or in obeying orders. The efficiency of an organization depends upon the fact that each part of the business enterprise is placed under the control of a person well quahfied to perform the duties in the best possible manner. An organization to be efficient should look after and take care of the men who compose it, because their bodily and mental development is an important factor bearing upon efficiency. Loyalty, enthusiasm, and cooperation of workers in a business enterprise are absolute necessities for success and efficiency, and their presence is what every management should strive for. These three requisites cannot be obtained unless the management inspires confidence by the assurance of proper reward for services, and proper place, tools, and treatment while at work. An organization should have at its head a strong resourceful leader assisted by a carefully selected, well-trained, and enthusiastic staff and working force. There should be a close contact between management and employees, bringing with it a close cooperation, and a working for the success of the business enterprise. A basic structure for an efficient organization is sys- tem. System consists of rules and regulations which are worked out and adopted as governing the m^anSg **^ actions of members of an organization. Sys- tem is an absolute necessity in every business enterprise, and is a fundamental for efficiency. Little can be accompHshed without its aid, and every business enterprise, large or small, should have some organized method of transacting business, which is system, though it may not be known by that name. Every one admits that a consistent application of clearly defined rules and methods is effective in bringing better results. An efficient system is evolved from within an organiza- tion and is not brought in from the outside. No sys- MANAGEMENT AND THE PLANT 47 tern fits all cases because systems vary with enterprises. If a system proves a success under one environment, and under certain conditions, that is no guarantee -d . CI. P Kequisites that it Will prove successful m another enter- for an ef- prise. A system which is effective in one ficient business enterprise may work with little ^^^ ^^' success in another and be an absolute failure in a third. Each business enterprise has its own special conditions, and these should determine the system that is to secure results. The success of a system depends largely upon its proper installation. Careful study should be made of the enterprise by one whose knowl- edge of conditions as they exist makes him most com- petent to know the situation, and he should devise proper rules, regulations, and methods of procedure. With care in the selection of simple forms, easy to an- alyze, and giving sufficient details, but ehminating un- necessary data, a system may be evolved which if prop- erly conducted will be successful, and prove a valuable asset to a business. System is a good serv- ant, but a bad master. A system when once system f ^^ introduced should not be subject to sudden when and changes. This does not mean that the rules 5°^^^*^°" and the regulations laid down by a system should not be changed to meet new conditions. Care- ful investigation should be made by men competent to analyze new conditions, and only on their recommenda- tion should changes be introduced, and in no case until a most searching and thorough investigation has been made. Every progressive enterprise is continually grow- ing and so may soon outgrow its system. An efhcient system should be flexible and subject to change to meet new conditions. A system to continue efficient should grow with a business, and be changed to meet new condi- tions introduced through development and improvement. 48 ECONOMICS OF EFFICIENCY Efficiency in any business undertaking cannot be obtained and maintained without ' system and organ- ization. System saves time, eliminates inef- of system^^ fective and unnecessary efforts, cuts expenses, and assures accuracy and dispatch. It en- ables the management to dismiss details, and at the same time to keep in touch with the different parts of a business. A good system causes coordination of all the best efforts of an organization, the cooperation of all of its members, enthusiasm for the success of the business, and harmony between the departments and members of an organization. Such a system keeps a business enterprise together and is an important essen- tial in efficiency. Efficiency demands that the management maintains proper coordination between the different factors en- tering into a business enterprise. Coordina- tion- its" ti<^^ is arranging the elements of a business meaning SO that each is working to capacity, and at andim- ^-^^ same time keeps every other element which is depending upon it working to its capacity. Men are frequently prevented from working to full capacity by doing work that should be done by others, as, for example, a carpenter carrying his lumber. A machine is frequently prevented from its full capacity by the loafing of an attendant, by carelessness in feed- ing, by not being run at full speed, or by lateness in starting. For good coordination, four essentials are necessary : proper planning and routeing of work ; regular arrival of materials and supplies; prompt and Essentials proper repairs to equipment; and proper for good CO- quality of supplies. In the struggle to obtain ordination, efficiency, the necessity for proper coordina- tion assumes greater and greater importance. It lessens waste, and at the same time assures regular and simul- MANAGEMENT AND THE PLANT 49 taneous efforts working for a common purpose, the suc- cess of the business enterprise. Efficiency demands that the management should ehminate as many details as possible. Nevertheless, the management should know accurately the The han- actual conditions of every branch of a busi- diingof ness. It is absolutely necessary and im- ^®*^^- portant that the executive head be thoroughly familiar with his business, its needs, and its operations. The only proper method of gathering the necessary infor- mation for the executive head is by a proper series of reports. Efficiency cannot be obtained to any degree in management without reports, and these should be simple and accurate, containing that which it is necessary for the management to know, for*^r^ports. and eliminating all unnecessary and unim- portant details. The heads of the various departments should be thoroughly acquainted with their work and possess, among other qualities, that abiHty to accurately obtain and summarize into simple reports the details necessary for their chief to know. With an efficient system of reports, the executive head centers his work at his desk, and has constantly before him all the im- portant information concerning his business. He can, without leaving his office, keep in touch with the work- ings of every branch of his business enterprise. The time of the executive head is too valuable to be con- sumed with details, which may just as well be performed by minor officials, and time so spent is time wasted. It is a poor manager who does not delegate definite responsibilities to his subordinates. Fre- gubordi- quently, subordinates become dissatisfied when nates and all responsibihty is taken away. A manager 5!^p°^^^- should give all possible weight to the opinions of his subordinates, and, as he gains confidence in their 50 ECONOMICS OF EFFICIENCY judgment, leave many points entirely to their decision. Nevertheless, every business manager should insist that his subordinates follow out his decisions as to methods of work, handling men, and other business matters. Efhciency demands that the management should always be on the alert for new ideas or new methods Suggestions which might be incorporated in the business and ideas; and increase efhciency. Information is the their very soul of business progress. The business impor ance. ^qj.|^ jg presenting continually to the eyes of every business man suggestions and ideas which may be applied to his own business. Many business men find that it pays to pay large sums to their employees for suggestions. Employees are encouraged to offer suggestions for increasing the efficiency of the business enterprise. Every suggestion accepted and adopted carries with it a prize of a sum of money to the one who offered it. Many business enterprises keep a special staff seeking new processes, ideas, and methods that will result in greater efficiency. The modern efficient busi- ness enterprise should be kept up to date, as the old way of doing things soon becomes obsolete. New improve- ments, methods, processes, and systems often arise from ideas obtained here and there, and changed to meet conditions of an enterprise. Efficiency demands a constant study of every branch of a business, as well as a constant study for new ideas and suggestions which might make it possible to devise new methods, processes, machines, materials, and equipment which would make it possible to produce more efficiently. Every management in its efforts to eliminate wastes or obtain the greatest efficiency has certain demands made upon it. First, it should get its work performed accurately and rapidly. The greater the elimination of unnecessary efforts, movements, and wastes of time, MANAGEMENT AND THE PLANT 51 the nearer is the management to the coveted goal of effi- ciency. Secondly, it should get the maximum output from machinery and equipment. This neces- Requisites sitates perfect coordination, and the best for the possible machines, tools, and equipment, elimination Thirdly, it should get the maximum output ^ ^^^ ^^' as well as the maximum quality from materials con- sumed. Fourthly, it should market goods at the highest price. Lastly, it should take pains to see that improve- ments in methods and equipment are introduced, in order to keep the business abreast of the times and prevent it from becoming obsolete. Efficiency demands on the part of the management an accurate and efficient cost-accounting system. Busi- ness men formerly did not think it necessary to make any study of costs and determine as tem ; Tts' nearly as possible their accuracy. Costs meaning were based on guesswork. Among the first po^ance requisites of efficiency to which business men gave heed was that demanding the elimination of guess- work in finding costs. This introduced cost accounting. An accurate cost system is an absolute necessity in every business enterprise. It consists of a system of records which enables a business man to ascertain with fair accuracy, not only the production cost of a product, but the constituent elements of that cost. The records are obtained by means of printed cards. Care should be taken to ask only for that information which is neces- sary to obtain costs. It is the work of a cost expert to ask for essential information, and employees should be instructed in ffihng out the cost cards, so that all ex- penditures will be charged in the right places. No fixed rule can be laid down for what information to ask for, as this varies with different business enterprises. The cards should be a suitable size for fiHng and for 52 ECONOMICS OF EFFICIENCY easy reference. Nothing is so essential to a cost system as a good indexing and filing system. This has been neglected in the past, and has been the cause of the failure of many cost systems. The principles of a cost system, generally speaking, are the same for all business enterprises, but their ap- Requisites plicatiou differs according to local conditions, for a cost A successful system must be developed for system. each business enterprise, and should be es- pecially adapted to meet local conditions. A thorough understanding of the general principles of cost account- ing and a thorough knowledge of local conditions are necessary for the planning of a successful cost system. No general rigid system can be outlined and made standard, because the cost system should in every in- stance be the product of the particular business enter- prise where it is to work. A properly devised cost system readily gives in de- tail the efficiency of working conditions in every part Advantages of a plant. It shows if materials are being of cost economically used, and if the proper amount system. ^^£ finished product of the desired quality is obtained. If the proper amount is not secured, it points out where to investigate to discover the cause of the difference. The accurate account kept of pro- ductive workers tells not only the exact amount, but the kind of work that each is doing. Loafing and pad- ding of accounts are prevented. The management knows at all times the efficiency of each productive worker. The management should use the figures as- certained by a cost system to guide it in studying the business enterprise, in order to increase its efficiency. A business man should know what expenses should be, and by comparison with the actual expenses the wastes will be shown. This demands that careful study is MANAGEMENT AND THE PLANT 53 previously made and correct costs ascertained. After this is done, a cost system proves of the greatest possible service for making a comparison of actual expenses with what they should be, and showing exactly where costs should be pruned. The management should strive to learn if it is getting the greatest output, the highest quality, and the best service from materials, machines, and men. A good cost system tells that, but it is of little service, unless it is carefully studied and made the basis for investigation, in order to discover whether it is possible to prune costs. There is no business man who can afford to conduct his business without a re- liable cost system. It is one of the requisites for effi- ciency, and is one of the most valuable assets in business. In every manufacturing plant, an important factor bearing upon efficiency is location. A well-equipped and properly managed plant may fail in a piantioca- poor location, while the existence of a badly tionand managed concern may depend upon its favor- efficiency, able location. The problem of location is one for the management, and its correct solution frequently re- sults in much saving, and many additions to profits. Several factors have a bearing upon factory Factors to location, as, for example, market for sale of be con- the product, suitable transportation facihties, sidered in nearness to raw materials, power facilities, available labor supply, favorable cKmatic conditions, suit- able water supply, available capital, and local advantages and disadvantages. The necessary factors in each in- stance depend upon the character of the article manu- factured. Sometimes one factor, and sometimes another, is the one that should be carefully studied in choosing the place best suited for a particular manufacturing plant. Location is an important problem with mercantile enter- prises, as well as with other kinds of business. 54 ECONOMICS OF EFFICIENCY The design of buildings used in a business enterprise has an important bearing on efficiency. No standard Desi n of P^^^ ^^^ ^^ given, bccause the design which buUdings gives efficiency depends upon the kind of a^d business conducted, and upon local condi- efficiency. ^-joj^g^ ^he chief consideration is a careful study of the different phases of the business to be carried on, and the special local conditions. The size and the design of the buildings may then be made, to secure the greatest economy of space and the greatest saving of time in the particular case. Buildings suited for one kind of business may be entirely unsuited for another. Whatever the design of buildings, the chief aim should be to furnish proper space for the performance of work, with the greatest facihty, the greatest saving of time, and the least expenditure of money, effort, and power. The success of many enterprises often depends largely upon their buildings, and no money should be spared in obtaining a design that suits the character of the work to be performed. A business plant should be equipped with the latest and the highest grade equipment. In a manufactur- ing plant, the equipment means success or for Wgh-^ failure to the manufacturer. The problem grade ma- of arrangement of equipment is an important chines and factor in every business, and often time and money are wasted by not paying attention to it. Are there sufficient machines of the best grade to do the work required? This is an important ques- tion for every manufacturer to answer. There is a second question that needs solution. If a difference exists between the rated capacity of a machine and its actual output, what is the cause, and what should be done to raise the output to the rated capacity? In a manufacturing plant, efficiency demands that the man- MANAGEMENT AND THE PLANT 55 agement pay particular attention to the attending of machines. Careful watching of parts of machinery for loose or weak parts, regular cleaning, and proper oihng frequently prevent breakages. The management will find it profitable, from the point of efficiency, to employ repair men whose duties are to see that machines are properly tested, cleaned, and oiled, and that machines and tools are always in the best repair. Efficiency demands that machines and tools used should be the best adapted for the performance of the work which is required. Invention is con- Method of tinually bringing into existence new machines assuring and tools the introduction of which may ^ent ma- cause greater efficiency in production. Fre- chines and quently, a manufacturer is placed at a *o°^^- decided disadvantage, because his competitor is producing more efficiently and at lower costs, due to the introduction of recently invented machines. To assure the use of the best possible machines and tools, an expert is often employed to carefully study those in use, others adapted to the anexjfert.*' same kind of work, and new inventions, to see if there are any that allow production to be carried on more efficiently, and at lower costs. To lead the van of competition is the ambition of every manufac- turer, and to do so, he should produce with a high de- gree of efficiency and with low costs, but at the same time quaHty and workmanship should not suffer. A very important factor in increasing efficiency, and one which every factory management should give careful consideration, is to have the factory equipped with the best possible machines and tools. An urgent demand of efficiency in manufacturing is to obtain the rapid production of goods of the highest grade, and at the lowest cost. This necessitates having the machinery 56 ECONOMICS OF EFFICIENCY in operation, as nearly as possible, loo per cent of the working time. To accomplish this, too much stress cannot be placed upon obtaining the best possible supply of tools, always in the best condition, and distributing them so that a worker has ready at hand the proper tool in the best possible shape. Materials of various kinds are important expense items in every manufacturing plant. Great wastes Quality; its ^^ist in their buying and in their use. Ef- importance ficicncy demands the elimination of these in buying, wastcs, and their elimination is an important problem for the management of every business enter- prise. Careful investigation should be made to dis- cover the grade that gives the best product with the least waste. Many plants have finely equipped labora- tories for testing quality of goods, and experiments are constantly being carried on to discover if different materials or grades can be more economically used. The question is to discover in any good the quahty of the part that is utilized, as in wood pulp, it is the fiber, in coal, the heat unit, etc. What the management wishes to know is the grade which contains not only the best quality, but also the greatest amount per unit of that quality. The same care should be exercised in buying machines and tools^ as a flaw in steel may not only cause loss to machinery, but additional loss through the stoppage of machines and the idleness of poor quaSy! ^^^- Pa^ying Strict attention to quality in order to obtain the best niaterials for the money expended, is an absolute necessity in every business enterprise where goods are bought. A second consideration, as important as the first, is the care- ful testing and inspection of goods, when deHvered, to see that the quality and the amounts ordered are obtained. MANAGEMENT AND THE PLANT 57 Quality is an important consideration in production. Every plant should strive to turn out goods of the high- est quaHty, and none except these should be allowed to leave the premises. Precautions SoduSi^ should be taken to see that only goods of the highest grade are produced. Competent and trustworthy inspectors should be chosen, and the raw materials should not only be carefully inspected, but a separate inspection should be made during each process of pro- duction, and, finally, the finished article should pass most rigid tests. QuaHty in goods is a demand of effi- ciency and cannot be overlooked. It should receive the closest attention in the buying of materials and in the production of finished goods. Business failures are frequently due to neglect in not buying according to quahty, in not testing goods dehvered, and in careless- ness in allowing goods of low quality to go on the market. The economical use of materials is an important ques- tion in every business enterprise. The ignorance of employees in not knowing how to care for Economical materials frequently causes serious loss. Ex- use of ma- posure to Hght, moisture, or dryness causes loss, teriais ; how which care in handhng prevents. Many °° ^^• managements never give a thought to instructing their employees in the economical use of materials. A man- agement should instruct its employees in the economical use of materials, and insist that its instructions are carried out. A few lessons in planning prevent waste in the cutting out of garments, leather goods, etc. The management should make a thorough and careful study of how to get the desired result with the most economical use of the materials involved. The most economical use should be made standard, and the working force engaged in using materials should be carefully instructed in the standard, and no other should be allowed in the 58 ECONOMICS OF EFFICIENCY plant. A few instructions in firing and keeping boilers in proper shape frequently save hundreds of dollars in fuel. Proper oiling and the careful use of oils will often, in the course of a year, add many dollars to profits. Efficiency demands attention to waste products. Consideration should in every business enterprise be Savings given to waste material to find if some eco- from waste nomical use cannot be made of it. Many products. large plants have added greatly to their prof- its by the use of waste products. Many manufactur- ing plants save annually many hundreds of dollars in fuel by the expenditure of a few dollars to provide equipment for obtaining power by the burning of saw- dust, shavings, and other waste products. Every one knows of the vast sums made by the large packing- houses and by the oil refineries from by-products. Savings can be made in small plants, as well as large, by attention to odds and ends. Scores of devices are in use throughout the country for the utilization of wastes, and this is an item which cannot be overlooked, and is one which should receive careful attention. The storage of materials is an important problem which deserves the careful attention of the management. Goods should be kept in some specifically mat^eriais. designated place, either room, shed, or yard. Those which are valuable and easily carried away should be safely kept, while the bulky and less valuable may be stored in yards or sheds. All goods affected by exposure to weather or by the elements should be protected by covers. The storeroom in a plant deserves careful attention. Requisites It should be Centrally located and permit of of a store- easy access. Plants both large and small room. should reserve proper and sufficient space for stores. In the latter, the owner himself may take MANAGEMENT AND THE PLANT 59 active charge or he may assign it, as part of the work of a trusted employee, while in the former, a special person is assigned to take charge, and, frequently, it is necessary to have a large clerical force to assist him. The arrangement of the storeroom should be of such a nature as to allow the greatest possible dispatch in filling orders. Each article should have its own place, suited in arrangement, capacity, and location to the requirements of efficient use. Bins, shelves, racks, etc., should have easy access and be carefully marked. Nothing pays so well as proper arrangement and sys- tem in a storeroom. A management may eliminate much waste by having a centrally located, properly arranged, and systematically run storeroom. There should not only be system in the arrangement of goods^ but also in the recording of goods received and given out, so that the quantity remaining on „ ? , ' , 11^ >m_- • System in hand may always be known. Ihis is a neces- recording sity in order to prevent overstocking, loss of receipts and time arising from shortages or searching for issues of mislaid goods, and deterioration of stock through age. The presence of any one increases costs, and the absence of all is demanded by plants working for greater efficiency. Extreme care should be taken in issuing goods. A competent man should be in charge, and goods should be issued only through him or by his orders. Careful records should be kept of all goods received, and they should, as soon as possible, be dis- tributed to their proper places. A record or permanent inventory should be kept of the receipts and the issues of goods. This shows, at any time, the amount of each kind of goods in stock. The simplest method is to attach a card or ticket to each stock bin or shelf, on which all receipts and issues are recorded. A good stock system works towards greater efficiency by being a 6o ECONOMICS OF EFFICIENCY safeguard against waste of materials, theft by em- ployees, and losses from other causes. Efficiency draws the attention of the management to the moving of goods in a plant. Time may often be Moving saved and costs lessened by using proper f acil- goods in a ities for moving goods. Goods are usually plant. moved several times during the process of pro- duction, as the moving of goods in and about the place of storage, from storeroom to shop or different shops, from one machine to another, and of all finished goods to the stockroom. Modern methods should be used in conveying goods. Space will not permit the mention of the many devices in use for moving goods, yet con- veying in many factories is carried on by obsolete methods. A management should pay particular at- tention to the problem of conveying goods, as its satis- factory solution saves time, lessens costs, and increases efficiency. The shipping of goods in every manufacturing and mercantile enterprise requires careful attention. If a System in management has not a good system for the shipping shipping of goods, losses will continually occur, goods. 2^Q goods should leave any business enterprise unless they go through the shipping room, or are shipped on instructions from the shipping clerk. Careful in- spection should be made of filled orders in order to see that only goods ordered, and of the particular grade ordered, are sent. This saves much expense, in pre- venting the shipping of goods not ordered, or of a differ- Lossesfrom ^^^ grade. Carelessness in shipping costs lack of many plants large sums of money annually, system. Goods sometimcs leave a plant without in- voice, and this usually means loss. Again, goods are frequently sent to the wrong destination, or are allowed to go the wrong route, and either means additional ex- MANAGEMENT AND THE PLANT 6i pense. It should be an absolute rule that no goods should leave a plant without careful inspection and proper shipping instructions. The questions of packing and of routeing are of the utmost importance in pruning costs. This is the special study of the shipping clerk, but in large plants it is assigned to experts. Railroads classify g^^^^^ goods and fix rates according to classifications. Often, a Httle different crating or packing puts goods in a different classification and at a lower rate. The classi- fications affecting goods of a particular plant should be carefully studied, and the goods packed so as to obtain the lowest rates. The proper routeing of goods is an important task in every plant shipping commodities. The task of finding the route which will get goods to their destina- tion in time, and at the lowest cost, is of special go^^s!^^ interest to a large class of business men, yet how many pay attention to it? The careful study of routes and proper routeing save a large concern many hundreds of dollars annually. Proper routeing means a saving even to a plant shipping a few thousand dollars' worth of goods, yet it is a part of management which has been, and is to-day, badly neglected. Every management is confronted with the task of inventory taking at least once a year. A running or permanent inventory does not do away with inventory; the annual inventory, because the latter is itsimpor- necessary to test the accuracy of the former. *^°^®- The value of an inventory depends largely upon its accuracy. The greatest care should be exercised to assure correctness in counting, measuring, and weigh- ing goods, and in listing their amounts. Only reliable and trustworthy clerks should be chosen for the task, and every one engaged in taking an inventory should 62 ECONOMICS OF EFFICIENCY be impressed with the fact that accuracy is the watch- word. An annual inventory is an absolute necessity in every business enterprise. It furnishes not only the actual state of affairs, but also records for careful study. It shows whether or not departments are over- or under-stocked. It draws the attention of the man- agement to the presence of undesirable stock, which should be sold at any price, and its place taken by sal- able goods. Without a stock system, the inventory is of invaluable service, and with it, it tests the accuracy of stock records. Efficiency demands standardization wherever possible. In a producing plant there should be standard products standard- ^^ ^ standard quality. In making standard ization; its products, it is possiblc and advantageous to necessity. spend large sums of money for special ma- chinery and equipment, which not only reduce costs, but greatly increase rapidity of production. The de- termination of standard quaHty in product and the taking of rigid measures to prevent any goods below standard going on the market, give a decided advan- tage to a business firm. It is equally as important to have standard machines, standard tools^ standard methods of using and caring for them, and standard methods for every operation. The standardization of methods of work is one of the chief demands of efficiency. It has made some progress, but as its necessity is daily becoming more recognized, considerable advancement may be expected during the next few years. The ten- dency of the modern industrial world is toward stand- ardization in every form of economic activity. The efficiency movement is hastening the introduction of standardization in various phases of business activity. Standardization is recognized as one of the basic struc- tures of efficiency, and one of the chief factors working MANAGEMENT AND THE PLANT 63 towards lowering costs, increasing markets, and assur- ing industrial progress. According to the census of 1910, the percentage of total expenses of all manufacturing industries paid out in 1909 for materials was 65.8. This empha- sizes the importance of buying in a manufac- o?bujdng^^ turing plant, and it is of equal importance in every mercantile estabhshment. To obtain goods at the lowest possible prices is of the greatest importance to every business man, and, frequently, decides the suc- cess or the failure of a business enterprise. Good buy- ing, or obtaining the grade of goods needed for business purposes, in sufficient quantities to meet the demands of business, and at the lowest possible prices, is a req- uisite for efficiency, and is a problem to which every management should give the closest attention. A good buyer will not overstock, and will always keep on hand a proper supply of goods to meet the demands of business. He will take advantage of low prices on staple goods to buy additional quantities, but he will not buy in such quantities as to financially embarrass his firm or to cause loss in deterioration or from other causes before the goods are used or disposed of. Good buying is an important factor in every business enter- prise, and promotes efiiciency as well as adds to the profits of a business. The chief aim in business is profit making. Profits depend upon careful buying, low costs, and good selhng. Carelessness or bad judgment in one is suffi- c «• T . r 1 r '^ Selling an cient to ehmmate profits and to cause failure, important The existence of every business enterprise factor in depends upon the abihty of the management ^^^^^®^^- to dispose of its goods at a greater price than the total outlay or expenses. SelHng is therefore an important factor in every business. Too great emphasis cannot 64 ECONOMICS OF EFFICIENCY be placed upon its importance, for upon it depends not only profits, but the very existence of an enterprise. To obtain the greatest efficiency in the selKng of goods and in the selHng force, is an important problem for every management. Value and service are Requisite . :; .^ . . , , . , . i i i for ef- the bases of satisfaction, which is a valuable ficiency^in asset in obtaining and in holding customers. ®® ^s- In selHng, more depends, in the majority of cases, upon the men than upon the goods. The selec- tion of salesmen should be careful, deliberate, and not hasty. Careful selection should be followed by efii- cient training in the fundamental principles of sales- manship. A capable, efficient selHng force is the aim of every business management, and makes for efficiency and for an increase in profits. Advertising has passed from a speculative stage to where it is a necessity. It is difficult to find a business Advertising; enterprise which does not advertise in some its purpose form. Advertising may be good or bad. Bad and aim. advertising is simply a waste of money, while good is one of the most potent factors in business. Thousands of dollars are wasted annually in poor ad- vertising. Advertising is a necessity in every busi- ness, yet it is a branch of business where great wastes exist, and where there is a great need for increasing efficiency. Advertising is an important task for every management, and by careful attention and study, greater results may be obtained. The purpose of ad- vertising is to sell goods^ and the aim is to sell the great- est amount of goods with the least expenditure in ad- Requisites vertising. A management should place its ad- for good vertising in charge of a competent man, who advertising, ghould strive to increase the efficiency of adver- tising by obtaining greater results from the money ex- pended for the purpose. Poor selection of mediums MANAGEMENT AND THE PLANT 65 and poor copies are sources of wastes, and represent large losses. Too great emphasis cannot be placed upon the necessity and the advisability of increasing returns from advertising through the choice of proper mediums and the writing of good copies. Good me- diums and good copies sell goods, and are the requisites for the efficiency which every management should strive for in advertising. Credit has an important bearing upon every phase of industrial activity. The granting of too Hberal credit has been, in the past, the cause of many credit ; its failures, and to-day is too freely practiced, place in The lowering of margins of profit demands a ^^^^^^^s. careful study of credit and the possibility of ehminating losses by discrimination in its use. Recent years have introduced many changes in credit-giving, and the re- sult has been the working, through the ehmination of losses, toward greater business stability. Discrimination in credit giving is an important business factor, and is one which, if properly exercised, often brings success in place of failure. The granting of credit demands not only a thorough knowledge of character, but ability to judge capacity, and the necessity of capital. No branch of a business requires greater shrewdness and has a more important bearing upon losses and effi'ciency than wisdom in granting credit. QUESTIONS 1. What is business organization ? How may it be attained ? 2. Give the relation between system and successfal business management. State the advantages of system. 3. What is coordination ? How is it ascertained ? 4. What are the advantages of a good cost system? What precautions should be taken in its installation ? 5. Mention the different factors which should be considered in plant location. 66 ECONOMICS OF EFFICIENCY 6. What methods should be adopted to assure most efficient tools, machines, and methods? 7. What losses may result from not paying heed to quality? Where in production should quality be considered ? 8. Mention the requisites for a good storeroom. What is the importance of system in its arrangement ? 9. What losses arise from lax shipping methods? Outline a system for a shipping department. 10. Outline a plan for a good inventory system. Why is inven- tory a necessity in business ? 11. Why is standardization one of the basic structures of effi- ciency ? 12. What is the relation between buying and business success? What precautions should be taken in buying? 13. Why is selling an important factor in business? What are the requisites for efficiency in selling? 14. Why is advertising a necessity in business ? What are the essentials for efficient advertising ? 15. What are the fundamentals of credit? REFERENCES Books N. A. Brisco, "Economics of Business," Chs. IV- VII; S. H. Bunnell, "Cost Keeping for Manufacturing Plants," Chs. IV, XII, XIV, XVI; The Business Man's Library, Vol. VI, "Organ- izing a Factory"; C. U. Carpenter, "Profit Making in Shop and Factory Management," Chs. II, III, V, XII ; A. H. Church, "The Proper Distribution of Expense Burden"; C. Day, "Industrial Plants," Chs. I-V; T. A. DeWeese, "The Principles of Practical Publicity"; H. Diemer, "Factory Organization and Administra- tion," Chs. II, III; J. C. Duncan, "The Principles of Industrial Management," Chs. Ill, IV, XVII ; W. D. Ennis, " Works Manage- ment," Ch. X; H. A. Evans, "Cost Keeping and Scientific Management," Chs. I-VIII; B. A. Franklin, "Cost Reports for Executives," Chs. I, VIII; L. Galloway, "Organization and Management," Part I, Chs. VIII, IX, X, XI, Part II, Chs. I, II, V; C. D. Hine, "Modern Organization," Ch. VIII; E. D. Jones, "Business Administration "; W. Kent, "Investigating an Indus- try," Ch. Ill; D. S. Kimball, "Principles of Industrial Organiza- tion," Chs. VII, IX, XII, XIII ; S. Kirschbaum, "Business Organ- MANAGEMENT AND THE PLANT 67 ization and Administration," Chs. I-XI ; C. E. Knoeppel, "Maxi- mum Production," Chs. II, VI; Library of Business Practice, Vol. I, Part I ; Library of Business Practice, Vol. X ; J. Lee Nichol- son, "Nicholson on Factory Organization and Costs," Chs. I, HI, IV, V; C. C. Parsons, "Business Administration," Chs. II, III; W. C. Redfield, "The New Industrial Day," Chs. IV, V ; R. Robb, "Lectures on Organization," pp. 47-68; W. G. Rose, "Success in Business," Part III; B. R. Vardaman, "The Master Salesman"; J. R. Wildman, " Cost Accounting " ; J. Zimmerman, " Credits and Collections." Articles O. M. Becker, "Building a Factory," System, Vol. 10, pp. 239- 250 ; B. Buxbaum, " Shop Organization and Arrangement," Ameri- can Machinist, Vol. 35, pp. 535-539; J. Calder, " The Productive Department," The Efficiency Society, Transactions, Vol. I, pp. 55- 171 ; C. U. Carpenter, "The Organization," Southern Machinery, Vol. 28, pp. 204-206; J. H. Carter, "The Relation of the General Manager to the Men," The Efficiency Society, Transactions, Vol. I, pp. 243-246; A. H. Church, "What to Record?" Engineering Magazine, Vol. 45, pp. 166-173; H- Emerson, "The Creation of Organization with Special Reference to Personnel," Southern Machinery, Vol. 29, pp. 1 59-161 ; B. A. Franklin, "A Problem of Quality of Workmanship," Engineering Magazine, Vol. 46, pp. 201- 206 ; H. L. Gantt, "The Basis of Proper Management," American Machinist, Vol. 35, pp. 841-842; C. W. Hoyt, "Scientific Sales Methods," Greater Efficiency, Vol. 3, pp. 43-50; W. H. Ingersoll, "Advertising," The Efficiency Society, Transactions, Vol. I, pp. 131-142 ; Wm. Kent, "The Attitude of the General Manager," Greater Efiiciency, Vol. 3, pp. 33-41 ; W. B. Laine, "Arrangement and Operation of Storerooms," Industrial Engineering, Vol. 14, pp. 45-48; M. W. Mix, "Administration Departments," The Efficiency Society, Transactions, Vol. I, pp. 109-118; C. J. Morrison, "What Effective Organization Means," American Machinist, Vol. 35, pp. 784-786; A. H. Morton, "The Layout, Design, and Equipment of Industrial Works," Industrial Engi- neering, Vol. 13, pp. 289-292; B. Orenstein, "The Organization of Large Commercial and Industrial Establishments," Engineer- ing Magazine, Vol. 44, pp. 588-596 ; E. C. Peck, " Systematic versus Scientific Management," Iron Age, Vol. 88, pp. 364-365; E. E. Pratt, "A New Industrial Democracy," Annals of American Academy of Political and Social Science, Vol. 44, pp. 28-38 ; H. F. Stimpson, "Manager and Scientist," Cassier, Vol. 41, pp. 319-325 ; 68 ECONOMICS OF EFFICIENCY H F Stimpson, "The General Manager," The Efficiency Society, Transactions, Vol. I, pp. 231-236; J. F. Stromback, Packing to Save Freight," System, Vol. 23, pp. 98-105 ; H. Tipper, Effi- ciency Advertising," Greater Efficiency, Vol. 3, PP- 3 3-41 1 i^- Walker, ''Scientific Management Applied to Commercial Fnter- prises " Journal of Political Economy, Vol. 21, pp. 388-399 I ^•^• WooUey, "The New Game of Business Management, World io- day, Vol. 21, pp. 17 56-1 762. CHAPTER IV Management and Labor From the introduction of the factory system until near the close of the last century, machinery and ma- terials were carefully studied to increase out- The im- put, but labor passed unnoticed. It is only portanceof recently that employers recognized the im- factor^^y portance of the human factor in the making recently and in the marketing of goods. The men recognized, whose heads and hands perform the labor in our in- dustrial system are the chief factors of efficiency and success. The study of the workman in order to under- stand the various elements that affect his working power is an important and serious problem for every management. The management should deal with the worker as he is, and should reahze that dealing with theories and ideals can only result in inefhciency. An attendant should thoroughly know his machine to get the best results from its working. This has been rec- ognized since the introduction of machinery, but the management has not fully grasped the necessity of under- standing and knowing workmen in order that the best results may be obtained from the efforts that they put forth. It is surprising how long ignorance governed the relation between employers and employees. Formerly no Business men paid close attention to ma- thought chines and equipment, but when it came to given to the the human heads and hands which made the foregoing productive, little or no thought was given. 69 70 ECONOMICS OF EFFICIENCY No attempt was made to study the demands of work in order to obtain men fitted for its performance. The employer did not realize that health is a prime requisite for good work. No attempt was made to study the working force, and to find the environments and the conditions of work most conducive to health and work. No efforts were made to study methods of performance of work in order to ascertain best methods, to train workers in best methods, and to give proper induce- ments, so that work would be performed according to standard methods, and as nearly as possible in standard time. Little thought was given to cooperation, loyalty, and enthusiasm, three prerequisites for efficiency. In obtaining efficiency in any business enterprise, the most serious problem for any management to solve is the human. The human worker should be studied as care- fully as a complicated machine in order to ascertain conditions of work, environments, and methods of work most conducive to efficiency. The cooperation of employees is an absolute essential for efficient work, for without it efficiency is impossible. Coopera- Cooperation, or the act of working together tion; a for a common purpose, is a basis of our modern requisite for industrial development. Hearty cooperation e ciency. between the management and the employees is the main strength of every business enterprise, and in- creases the efficiency of both capital and labor. To enhst the mutual interest and the hearty support of the worker is one of the most important tasks of the management, and success frequently hinges upon its solution. To obtain their cooperation, men should be given a square deal, proper treatment, and a just re- ward for services. They should have some share in devising methods and plans, be made to feel that they are integral parts of an organization, consulted con- MANAGEMENT AND LABOR 71 cerning difficulties, and encouraged to suggest ways of overcoming them. Working together with the in- terest of the enterprise at heart is the proper spirit of workers, and should be sought by every management. Cooperation has two sides, but the management fre- quently sees but one. It beheves that workers should cooperate to produce efficient results, but is blind to the fact that it should cooperate with the men to as- sist them to obtain a higher wage. True cooperation cannot exist without mutual benefits. Management and workers should each obtain what they are striving for: the management, low costs; the workers, higher wages. In every form of business, true cooperation is more than a theory ; it is a necessity, and its impor- tance is gradually being impressed upon every manage- ment. Personality is an important factor in successful busi- ness, and is the element which makes effective organ- ization possible. Personality is the strongest Personality; bond between men and management, the itsim- foundation of confidence, the basis of per- po^t^°<^®- manent growth, and the living spirit of an organization. Dominating every business enterprise is a controlling force, a ''man behind" whose personality stimulates into action and guides the whole working force. Such a man should have character and strength, combined with kindliness and good wishes towards his men. He should always keep in touch with his men, and be ever ready to discuss any differences which may arise. Im- partiaKty in dealing with men is a virtue. Nothing fosters discontent, creates friction, and throws the whole working force into confusion more quickly than favoritism. Angry words, harshness, and injustice destroy enthusiasm, interest, and loyalty, and have no place in any business aiming at increasing efficiency. 72 ECONOMICS OF EFFICIENCY The attitude which men have towards a business is governed almost entirely by their feelings toward the Ri hts of ^^^ "^^^ directs them from day to day. It workers should not be forgotten that men are not bits should be of machinery, but men, and as such possess respecte . certain rights which should be respected. Recognition of the rights of workers and the making them feel that they are integral parts of an organization prevent friction and work toward efficiency. A meas- ure of efficiency is the extent to which the cooperation and the enthusiasm of the working force is sustained throughout an organization. The success of an organ- ization depends largely upon the choice of the proper head, a man who has character and strength to main- tain the personality of the organization. Many busi- ness enterprises fail through having the personality of the organization destroyed by a weak head. It matters not the kind of business undertaking : success depends, in a great measure, upon the proper relationship exist- ing between the management and the workers. There is a moral obhgation due the management from every employee to give his best mental as well as his Duty of ^^^^ physical efforts. This service is not fully employees performed unless the men become interested to em- and enthusiastic in their work, and work with pioyers. ^j^^.^ whole heart for the success and the wel- fare of the business. To obtain and to preserve this attitude of employees toward management and work should be an aim of every management. The manage- ment should make the employees feel that they have a stake in the success of the business, and that the man- agement has an interest in their welfare. Then the men will feel that they are a part of the business, and not like a cog in one large wheel. Each will work for the other's welfare, and all for greater efficiency and for the success of the business enterprise. MANAGEMENT AND LABOR 73 The efficiency of workers is an important source of profits. Nothing affects efficiency more strongly than the interest which each worker takes in his Enthusi- work. The aim of every management should asm; its be to increase not only this interest, but loyalty, in^po^tance. Wherever there is a lack of interest and loyalty, there is no enthusiasm, and without enthusiasm efficiency is impossible. Cooperation and loyalty should be whole- hearted, and then we have enthusiasm. Enthusiasm once aroused needs only direction to turn it into suc- cess. Efficiency is largely a matter of cooperation, loyalty, and enthusiasm on the part of the working force. How to treat employees so as to obtain their cooperation and to arouse their interest, loyalty, and enthusiasm is one of the most difficult problems which confronts every management, and its successful solu- tion paves the way for increased efficiency. The presence of loyalty in any business is an important factor working towards greater efficiency. The amount of work which any person may do is subject to Loyalty a many various conditions. Intellect, feeling, requisite for and will should work together in order to ob- efficiency, tain the best results. Where there is no feeling or heart in the work, a serious handicap to good work exists, even if the intellect and the will be strained to the ut- most. The worker who is not loyal to the management can render only half-hearted service, even though he strives to his utmost. The management which secures the loyalty of its working force has a valuable factor working towards efficiency. Most men are capable of following a worthy leader; few are ever zealots for the sake of a cause, a principle, or a corporation. All these are too abstract to win the affection of the average man. It is the individual, the concrete personality who attracts human interest. The 74 ECONOMICS OF EFFICIENCY worker is loyal to his immediate foreman, or to the head of a business enterprise, rather than to the business it- self. Loyalty to a business enterprise de- business^ velops from loyalty to those performing develops managerial functions. A first essential is to from loyalty pj^ce men of character in all executive offices, lO DOSS6S men who are leaders, and who inspire men, and win their loyal support. If such is the case, loyalty to the business is assured. Loyalty is reciprocal. If a worker feels that he has no assurance of fair treatment from the management, it is impossible to arouse interest and loyalty to the management. A square deal is one indispensable basis of loyalty, cooperation, and en- thusiasm. Human sympathy is an important factor in every business enterprise. If the executive head of an or- The impor- ganization knows that the directors appreciate tance of his efforts and are ever ready to back him in sympathy, ^^y. (;.j-jsis, his enthusiasm and energy for the success of the enterprise never flag. If foremen and superintendents know that the manager is watching their efforts with interest and regard, approving, sup- porting, and sparing them wherever possible, they will place their entire mind, energy, heart, and enthusiasm in their work in order to obtain the greatest possible results. If a worker knows that his superintendent is interested in him, and that he knows the service being rendered, he will put his heart into his work, and have an interest in the success of the business. To secure efficiency, sympathy of the man above with the man below is essential and necessary. Incentive and efficiency are closely related. It must be granted that men will not increase their efficiency without some incentive. Workers cannot be expected to use their best abihty unless they feel that they are MANAGEMENT AND LABOR 75 getting good returns for it. The management should give its workers some incentive, hope of reward, hope of promotion, better working conditions, and, incentive is better still, if a union of all these elements, necessary Sometimes a worker feels that it is to his ^^r greater interest to give just as httle work as possible ® °^*^' for the wages which he is receiving, and to make the management feel that he is giving a full day's work. If in addition to compensation there is the extra in- centive of proper working conditions, benefits, insur- ance, etc., the employer possesses means that hold the workers in an organization and increase their efficiency. The handhng of men is a problem which tests the ability of the management, and is one w^hich is a factor in increasing the efficiency of a business enter- Methods of prise. Two methods are in practice for han- handling dhng men, one, typical of the last century, is °^®°- driving, while the other, needed to increase efficiency, is leading. The ignorant workman may be driven to his task, but with the intelligent or skilled . . workman, driving is a failure. Driving pro- duces discontent, fosters antagonism, and prevents loyalty and enthusiasm. Skill rather than brawn and muscle is needed, and to obtain skilled men with brains, and to get them to do their best work, they should not be treated hke bits of machinery, or driven Kke dumb brutes, but led through their own self-interest. To understand the worker is an important problem, and one which demands much study from the management. The manager should be a close student of human nature, and should know his workers as they are, and not as they are supposed to be. Efficiency requires the cooperation of employers and ^^ ^^^* employees, and this demands that employees be led 76 ECONOMICS OF EFFICIENCY through self-interest. The question of leading, through the arousing of self-interest, is an important problem of the future, and its successful solution insures enthu- siasm, cooperation, and efi&ciency, the goal of industrial activity. The industrial struggle is one for profits, and the management which can produce with the greatest effi- Permanence ciency wins. Employers have recently in the work- learned that an important factor in lower- ing force. -j^g costs is permanence in the laboring force. Nothing so works against efficiency as a continuous change in the working force. Workers, when they know that they are hkely to be discharged any moment^ do not have the interests of the business at hearty and do not give their best service. Experimenting with men is costly, and the less the management is com- pelled to experiment, the greater are the possibihties of increasing efficiency. During the nineteenth century, machines were carefully nurtured and protected, but httle attention was paid to keeping men in a business. The employer failed to reahze the loss resulting from constant hiring and dismissing. The desirabihty of keeping men in an organization, is most forcibly expressed in the different pension sys- Methods of ^^^^ ^^ ^^^ railroads and industrial enterprises, holding men They support a pension fund as a pure busi- in an or- ness proposition. The aim is to hold out a re- ganization. ^g^j.^ ^]^g^^ appeals to the worker with greater force than some future inducement to go elsewhere. From the management's standpoint, the pension is the premium that it is willing to pay for continuity of serv- ice, and the increased efficiency which it affords. Effi- ciency demands not only a high-grade and efficient work- ing force, but one where the fewest changes take place. Many influences may be developed to hold workers in an MANAGEMENT AND LABOR 77 organization. Money return in some form is perhaps the strongest. The worker who is assured that the longer he stays with an organization, the larger will be his income, and that extra effort and efficiency will bring greater reward, has the strongest kind of an inducement to remain where he is. Interest in work, personal con- tact with superiors, assured promotion, good working conditions, fair and just remuneration are the strongest inducements to hold men. An important factor working for efficiency is pro- motion from the ranks. Hope for the future is the chief incentive for giving best efforts^ and a pj-ojuotion hope which appeals most strongly, and gives from the loyalty and enthusiasm is advancement, ranks; its Every manager should make provision for "^p°^*^^^®- filling any vacancy which occurs from his own working force, and the workers should be given to understand that vacancies will be filled from their numbers. Pro- motion should not be based upon seniority, but wholly upon abihty. Preference to seniority is only justified when the senior in service is of equal ability with others quahfied for promotion to a vacancy. Promotion from the ranks has been adopted by many railroads and in- dustrial enterprises. Marshall Field & Co. have only two managers who are not promoted from the ranks. The Pennsylvania Railroad Company rigidly follows the poHcy, and one hundred and fifty of its one hundred and sixty chief officials started in lower positions. The assurance that promotion will be made from the ranks fosters ambition, gives hope of advancement, and greater satisfaction and contentment with the present position. It encourages employees in their work and arouses loyalty and cooperation. The importance of the poHcy is daily becoming more recognized, and its adoption is spreading to all fields of industrial activity. 78 ECONOMICS OF EFFICIENCY A worker to do his best work should have his mind upon what he is doing. This freedom of mind arises Content- largely from contentment and has a great in- ment; its fiuence upon the quality of work as well as importance. ^^pQ^ the output. A contented worker has a positive money value. Contentment binds employers and employees closely together and leads to their co- operation for the greater efficiency of an enterprise. Working amidst gloomy and dismal surroundings, with improper equipment, in fear of losing his position, at unfair wages, or under constant nagging by a rough and surly boss causes a man to have his thoughts upon any- thing except his work. The worst frame of mind for good work is one of continual brooding over being under- paid. Yet in how many enterprises do we find one or more of these conditions prevailing ? How many have failed as a result of their presence? Many manufac- turers have well-equipped factories, but there is lacking the contented working force. They have yet to learn the value of contentment. Every effort should be made to have working conditions, environments of workers while at work and at home, and equipment the most conducive to health and to work, and with a fair and just remuneration a contented mind follows. Many employers have introduced welfare movements for the benefit of their employees. These are business invest- ments, and the contented mind obtained more than re- pays the outlay in quaHty of work and in increase of output. Tardiness in attendance is a form of inefficiency which every management should strive to reduce to a mini- Tardiness mum. Efficiency demands not only faithful- andinef- ness in work, but regularity and punctuality ficiency. ^^ attendance. Experience has proven that tardiness cannot be overlooked, and the best way to MANAGEMENT AND LABOR 79 deal with it is to make it unprofitable. Fines are the usual means of enforcing promptness. Not paying for the time lost, the loss of a day's pay if occurring a cer- tain number of times, suspension, and absolute discharge are among the methods found in practice for the punish- ment of tardiness. Punishment in some form is ab- solutely necessary in dealing with certain classes of men. No one method can be given as practicable and workable in all estabhshments. One which gives satis- faction in one business enterprise might be a failure and the cause of driving good workers away in another. The management should remember that plant organiza- tion, working conditions, the personnel and the character of employees are never the same in two places, j^e^hods In deciding upon a method for deahng with for deaUng tardiness, due consideration should be given with tardi- to the character of the workers, whether men or women, skilled or unskilled, salaried or working by the piece. If fines are imposed, the management should make it clear to the workers that the purpose of the fines is punishment, and that they are not a money- making proposition. The only safe way to deal with fines collected is to devote them to some welfare move- ment for the workers. If fines are kept by the man- agement, it inevitably leads to antagonism, and works against loyalty and enthusiasm. Every management finds it imperative to adopt some method of ascertaining whether or not a worker is punc- tual in attendance. The time clock is the Punctuality, favorite method, but metal or wooden tags, Howascer- timekeepers, individual tickets punched at *^^°®^- entrance, the matter left to the direct supervision of superintendents or foremen, and daily work cards are among other methods found in practice. Many claim that a check upon the time that a worker appears at 8o ECONOMICS OF EFFICIENCY work is not necessary and only antagonizes him. Under the present industrial system, some method is absolutely necessary, and if any trouble arises, it is usually on ac- count of poor judgment exercised in fixing the punish- ment, or in the use of fines collected. Many managements find it profitable to encourage promptness by a system of rewards. An effective Methods method is to take promptness into considera- for en- tion in increase of pay, or in advancement, couraging Some give cash premiums and prizes at the promptness. ^^^ ^^ ^-^^ ^^^^ ^^ ^jj ^-^^ h.8i,Ye not been tardy, while some base vacations on the timekeeper's record, and take account of promptness in awarding time of vacation with full pay. Those who have adopted the award system find it necessary to have some system for punishing tardiness. If a worker were tardy once or twice, with no chance of obtaining a reward, there is a tendency to be careless about attendance in the future. Irregularity in attendance has a direct bearing upon efficiency, and is a serious problem confronting every management. The chief cause of irregularity ks ^caus^*^ ' is sickness, and the question to be answered is, Who is responsible? The management may be the cause in not having proper working conditions; if so, the worker is not to blame, and the cause should at once be remedied. On the part of the worker, the cause may be lack of nourishment, unsanitary home surroundings, careless exposure, or intemperance. The management should insist upon proper nourishment and proper sanitary home surroundings. It should take all precautions to have working conditions and surroundings of workers while at work the most con- ducive to health. Careless exposure should be warned against, and intemperance should not be tolerated. Reasons for absence from work are many, and each in- MANAGEMENT AND LABOR 8i dividual case should be dealt with separately. The method of treatment should vary with cases, and punish- ment is only advisable where the cause is due to negligence, carelessness, or intemperance on treatment, the part of the worker. None of these should be tolerated, and dismissal should be the punishment for the second or third offense. A great safeguard against irregularity is a healthy working force, working under sanitary and wholesome conditions. It has been said that 95 per cent of the workers of this country are doing less than 60 per cent of what they might do without physical injury or over- wastes exertion. This statement is perhaps exag- from men gerated, but it is nevertheless true, that a soldiering, great waste arises from men loafing, soldiering, or idling away their time. Efficiency demands that this waste be reduced to a minimum, and it is an important prob- lem confronting the management to devise successful methods of doing so. The average worker is naturally incHned to take things easy, and to do the least amount of work necessary to keep from being discharged. This is one of the evils arising from day wages. When all are paid the same wages, the more efficient worker slackens his pace to that of the lazy fellow, because why should he do more when he receives the same pay ? A great part of soldiering is done by men with the dehberate object of keeping their employers in ignorance of how fast work may be done. Many de- soldiering liberately study how slowly they may go, and is often still convince their employers that they are .1 Where cor- time IS not far distant when banks and financial poration institutions will install schools for training schools are their own employees. These training schools ^°^^* should not be confused with the numerous educational courses carried on by many estabHshments for the benefit of their employees. These courses are usually conducted at night, but a few corporations have them during working hours. Educational courses and lec- tures have a beneficial influence, but do not take the place of a carefully planned apprenticeship school. The training of each apprentice should be along two distinct lines, the one academic, received in the school- 144 ECONOMICS OF EFFICIENCY room, and the other practical, given in the shop. The aim is to teach a boy a trade, and that trade cannot be properly learned miless he knows mathematics, Sofii^i^^ °^ mechanics, and the fundamentals of the science training. ' which accompanies the trade. Shop man- agement, business methods, business English, and fire and accident prevention are subjects which should be taught every apprentice. Courses and subjects to be . , . taught in the schoolroom vary with enter- prises. In some, the fundamental principles of salesmanship and advertising are essential while in others they are not. No standard course of study can be outlined, because such must necessarily vary with business enterprises. The effi- ciency of an academic course depends upon the effi- ciency of the instructors in outlining those subjects which are allied to the trade and business, and which assist in making the apprentices efficient and capable workers. Many corporations do not teach academic courses in the plant, and have their apprentices attend evening Training classes elscwhcre. Usually, they are the outside the classes Conducted by the public school system plant. q£ ^Yie city, or by some organization. Boys are not paid for attendance, and must attend a certain number of hours weekly, usually four. The giving of academic training in evening schools, in or outside of a plant, is unsatisfactory. Every corporation with a school should have it in charge of competent instruc- tors, and school work should be given during the working day. It should compel attendance in the classroom during working time, and the boys should receive the same pay for classroom work as for shop. The hours of attendance at present vary from plant to plant, but the favorite time seems to be from seven to nine a.m., TRAINING 145 with four the average number of hours of classroom work per week. Some corporation schools are open through- out the year, while others run ten months. At least six, and even eight hours of academic instruc- tion should be given the first year of apprenticeship, and lessened to four or six the second and the third. If a boy has had previous academic training, allowance should be made in attendance, ^gtmction Three years should be sufficient to give train- ing in academic work. Apprentices should be under the same discipHne as employees in the shop, and it should be strictly enforced. The average corporation school does not give any ex- ^ons"^^' amination in academic work, holding that the instructor should know each student's advancement. Written examinations give the best results, and with prizes for good work, better results may be obtained. The average school uses few text- books, and the work consists chiefly of written exer- cises and problems chosen by the instructor. The best results may be obtained by having carefully outlined courses with suitable textbooks. The Baldwin Loco- motive Company requires apprentices to attend a free school two evenings per week for twenty-four weeks during the year. Attendance is required for two or three years, depending upon academic training before entering the plant. No system of reports from instruc- tors is required. A boy's written statement made weekly that he has attended school for two evenings during the past week is accepted by the superintendent. The day upon which a boy attends evening school he is excused with full pay one or two hours earher in order to enable him to go home for supper, and to prepare for school. The number of years of apprenticeship may vary in the same plant for different trades. The General Electric 146 ECONOMICS OF EFFICIENCY Company of Lynn, Massachusetts, has the following courses : (A) machinists, die and tool makers, four years ; Cotirses of ^ ) pattern makers, four years ; in either A the General or B, graduates of high school may finish the Electric course in three years ; (C) iron, steel, and ompany. i^j-g^gg molders and steam fitters, two years, including trial period; (D) draftsmen and designers three years ; (E) electrical testers, three years ; (F) tech- nical clerks, two years. This company has student courses to which only selected graduates of recognized colleges and universities are admitted. Special courses of training may be established when required. The pay for the different courses is as follows : A and B, ten cents an hour for the first year, twelve for the second, fourteen for the third, and sixteen and a half for the fourth with a bonus of one hundred dollars on the completion of a satisfactory course ; C, ten cents the first half year, twelve cents the second half year, and fourteen cents the second year, with a bonus of fifty dollars ; D and E, twelve cents the first half year, fourteen cents the second half, sixteen cents the second year, twenty cents the third year, with a bonus of seventy-five dollars ; F, twelve cents the first half year, fourteen cents the second half, sixteen cents the second year, with a bonus of fifty dollars. Many methods are in practice for academic teaching in corporation schools. The most efficient schools have Best method Carefully outlined courses for the apprentices for academic of each trade, or for closely related trades, work. Many give only one course, which all appren- tices are to attend. Unless all the trades taught are closely related, this does not give satisfactory results. The most satisfactory system is to have carefully out- Hned courses for the different trades taught, and not to group, except where trades are so closely related that TRAINING 147 they require practically the same academic and theo- retical training. If it is business to have an appren- ticeship school, it is business to have it conducted so as to obtain the greatest efficiency and best results. Many changes should be made in the majority of existing schools in order to make them efficient, and give the greatest returns for the amount of money expended. Shop instruction should be given by special shop in- structors, but in many schools there are no regular instructors, and the boys are dependent upon . the shop foremen and the workers for instruc- gtruction. tion in their trade, as is the case in the Baldwin Locomotive Works. Shop work should be under the supervision and the direction of shop instructors, who should be the best skilled workers in the plant. Greater efficiency is obtained if the instructors are required to receive special training for their work. They Essentials should be specialists in their trade, and should for good make a special study of the various methods of instructors, performing the trade that they are to teach. Only standard methods should be taught, and these should be the best possible for local conditions. A shop in- structor should always be on the lookout for better and more efficient methods, and if after careful examination and testing such are found, they should be made stand- ard, and it is the duty of the shop instructor to introduce same. There is a growing practice to maintain practice shops where apprentices do the first part of their shop work. The regular commercial product is made . and only apprentices do the work. Extreme ghops^.*^^ patience is essential for getting apprentices started in standard methods, and in a way to arouse interest in their work. When the shop instructor con- siders an apprentice sufficiently developed, a transfer is 148 ECONOMICS OF EFFICIENCY made to the shop proper for the remainder of the apprenticeship. No fixed course can be laid out, because some apprentices are more apt than others ducted!^' ^^ learning, and do not need so much time in certain departments. Each apprentice is advanced in the shop as he has, according to the judgment of the shop instructor, acquired the necessary- industrial capacity. Frequently, apprentices who have been some time in the shop proper if the quality and the quantity of their work are of low standard, are sent back to the training room. By competent instruction and standard methods, the grade of skilled labor may be greatly increased. A great deal depends upon proper training and the acquiring of proper habits of doing work. On satisfactory completion of the time of ap- prenticeship, in school and shop, a diploma or certificate is usually given. Apprentices are not compelled to remain with the corporation, but are encouraged to become a permanent part of the plant organization. Graduates of properly conducted corporation schools are able to do high grade work, and make not only ca- increasing P^-ble and efficient workers, but from their favor of ranks, capable foremen and executive officers corporation may be chosen. With proper instruction by competent instructors, the average apprentice when he becomes a regular employee has usually ac- quired loyalty and interest, and at once heartily cooper- ates with the management. The training received in a shop makes apprentices familiar with shop fife, and when they become regular workers, no time is lost and no additional expenditure is necessary in breaking them in as integral parts of the organization. Where a high grade of skill is required, and many workers are em- ployed, the corporation school is a dollars-and-cents proposition. It assures a supply of competent skilled TRAINING 149 workers. A great increase in the number of these schools will take place in the near future, and the time is not far distant when every large business enterprise will have its school for apprentices. Time will remedy many defects which are found at present in many of our corporation schools. The efficient corporation school has come to stay as an important factor in our industrial system, and its importance is daily becoming more recognized. Due to the fact that corporation schools are only possible in large enterprises, they cannot be relied upon to provide the entire industrial training, cooperative Where it is practicable, the corporation school industrial properly organized and conducted is satis- schools, factory in the training of apprentices. A system closely alHed to this system is that of cooperative industrial schools. Academic and theoretical training are given in educational institutions while shop training is given in producing shops. This is a cooperation between employers and educational institutions. The coopera- tion is brought about in a variety of ways. A particular town or city usually has its own scheme worked out to meet local conditions. If properly conducted, the sys- tem brings results, although it is not as efficient or satis- factory as where the training is given entirely in one establishment. Cooperative schools differ materially in their methods of training. A favorite method is where an apprentice spends half his time in school, and half in a shop. The usual arrangement in half-time ^alS^g^^^ schools is to have two apprentices to a job, and each to spend alternating weeks in school and in shop. In some schools all of the first year is spent in school work, and shop work does not start until the second year. Examples of the half- time system are the University of Cincinnati, Fitchburg ISO ECONOMICS OF EFFICIENCY High School, Fitchburg, Mass., Technical High School, Providence, R. L, and Lewis Institute, Chicago, 111. A second form of the part-time system is where the ap- prentice attends school much less than half time, usually being excused from regular work in the shop a few hours a week to attend some educational institution where subjects correlated with the trade are taught, as the FrankHn Union, Boston, Mass., Mechanics' Institute, Rochester, N. Y. ; and a third is where attendance at school is only during slack time as in the Horace Mann and James Otis Schools in Chicago, 111. Ap- prentices are usually paid for shop practice, but not for attendance in school. The cooperative system is a decided improvement over the ordinary industrial school, but is not as efficient Cooperative ^^ the corporation school. Apprentices work vs. corpora- in a producing plant, and get acquainted to a tion schools. (3gi-|^aij^ degree with shop practice. The aca- demic training is usually better than in the corporation school, but the shop is not nearly so efficient. The ap- prentices in the shop are usually supposed to get their instruction from foremen or skilled workers. Some- times school instructors visit shops and direct the work of boys. This arrangement will not produce the spirit of loyalty and cooperation as will having all boys under special shop instructors. With special pains to improve shop instruction, and assure the teaching of standard methods by having the boys under special ex- perts as shop instructors, the cooperative schools may be greatly improved and made more efficient. Many kinds of evening schools are in operation, Industrial having as their aim the improvement of indus- evening trial education and training. Evening schools schools. ^gj.g £j.g^ intended to give workers a rudi- mentary education. Later, the need of some correla- TRAINING 151 tion between academic and shop practice made itself felt, and the continuation school developed. Courses were given in subjects related to trades, as j, mechanical drawing, shop arithmetic, indus- trial chemistry, etc. No provisions were made for practical training as preparation for a trade, or for special advancement in a trade. As a result of this demand, evening vocational and evening trade schools came into existence. Evening industrial schools may be grouped under three heads, continuation, _ vocational, and trade, and may be pubHc or private. Industrial evening schools, in giving employees knowledge of subjects related to their trades, perform an important work in promoting industrial education. They have a drawback in that instruction is given in the evening, and is not sufficient to give the training necessary to make skilled workers. As supplementary aids in industrial education, they perform an important work, and materially assist in giving academic and theoretical training. Industrial training in public schools is a recent de- velopment, and it is only since 1900 that it has become general. The universal demand for better industrial trained workers has led recently to much im- training in provement in industrial training. Many pub- v^^^ic lie and private institutions have been organ- ized to better equip boys and girls for their life's work, and many old institutions have added courses for that purpose. The question of industrial training is attract- ing much attention from educators, business men, and legislators, and during the next few years many im- provements may be looked for. Industrial, trade, manual training, and vocational are names given to schools for training and better equipping boys to be- come better and more efficient workers. 152 ECONOMICS OF EFFICIENCY Industrial is the name given to those schools which train in the general aspects of industry, and do not Character- speciaHze their training to the extent of teach- istics of an ing specific trades. Many do not differen- industriai tiate between industrial and trade schools, school. ^^^ ^l^gy ^j.^ distinct. An industrial school is not designed to teach any one trade, but teaches what is necessary for the practical working of trades. In- dustrial schools serve as an important factor in prepar- ing boys to be better equipped when they begin their apprenticeship. Many boys leave public school at fourteen, and few trades are open to them as appren- tices until sixteen. Industrial schools may perform an important function in extending the time of these boys in school, and making them much better equipped Industrial ^^ become skilled workers. Our educational courses in System could be materially changed to the grammar benefit of the American people by having sc 00 s. industrial courses in the last year or two of the grammar schools. Many boys leave grammar school and become unskilled workers ; if they learn any trade, it is usually poorly learned, and many remain unskilled throughout their lives. The industrial school is best suited to prepare boys for their vocations by giving them training during the gap, as it were, between leaving grammar school and entering a trade ; that is, from four- teen to sixteen years. Public industrial schools may prove of great service in teaching those subjects closely related to the trades, and by so doing make young boys better equipped to become apprentices. The trade school is for the purpose of giving the train- ing for trades which was acquired formerly schools under the old apprenticeship system. The trade school of the old type simply taught a trade, and the student spent practically all of his time in TRAINING 153 shop work. The trade school of the modern type gives some academic instruction in subjects alHed to a trade as well as teaches the trade itself. In 1907, the first public trade school came into existence, when the city of Milwaukee took over the Milwaukee School of Trades, a private institution, and before that time, trade schools were private institutions. Since 1907, many Require- pubHc trade schools have been opened in dif- ments for ferent cities. A properly organized, equipped, efficiency, and conducted trade school gives satisfactory results. A trade school should give academic training as well as practical, and should be equipped with the best possible equipment for the teaching of trades. The backbone of success is the instructing staff. Care should be exer- cised in ascertaining the best methods for performing the different movements in learning a trade, these should be standardized and taught. If some system could be evolved for standardizing movements, so that only the best were reduced to habit-form, a great advancement would be made in eliminating waste. Strict supervision is required, and the same carefulness should be exercised in working as of*work^^°° if working on goods for sale. Usually the output of a school goes to the scrap-heap and is not sold in the market. Learners are hkely to become careless and slovenly in their work, and this should not be toler- ated. Instructors should insist that in the acquiring of the best methods and best habits, speed is heeded. Several manufacturers complain that boys who are taught in trade schools are slow and do not possess speed. The acquiring of speed is an absolute essential in forming habit. Properly equipped trade schools with efficient instructors teaching standard methods are important factors in acquiring efficiency. They cannot take the place of corporation schools, but after these, are the most efficient means of training. 154 ECONOMICS OF EFFICIENCY Trade preparatory schools are meeting the demand for some system of training for boys from fourteen to six- Trade pre- teen years. They form an important factor paratory in our industrial training and should receive schools. more attention in the future. They teach the elements of a trade, the fundamentals of industry, and some practice. Their purpose is to give a training that prepares students to enter trade and corporation schools. Manual training has received considerable attention in our country. It began with secondary schools, and Manual ^^.ter courses were given in the elementary training schools. The aim is not vocational, that is, schools. ^Q equip a boy directly for industrial pursuits, but is cultural. Statistics show that a very small per- centage of graduates of manual training schools enter trades. Manual training is beneficial in giving better equipment for the industrial pursuits, and in furnishing boys a wider outlook in choosing a vocation. The vocational school is an industrial school for the purpose of preparing boys for vocations. Its aim is the giving of training for the purpose schoois^^ of directing a pupil toward a trade, or other manual occupation, rather than as a part of a direct and intensive preparation for skilled workers. The course is usually two years, open to graduates of elementary schools, and to those who have reached the age of fourteen and are prepared to undertake the work. The purpose is not to turn out skilled workers, urpose. ^^^ ^^ prepare pupils to be better equipped to enter trade and corporation schools. Vocational schools do not supersede high schools, but offer inducements to keep boys at school until the age when they may enter trade and corporation schools, and to give them mpo ance. ^ pj-^ctical and an academic training that will be of service to them in their later training. The voca- TRAINING 1 55 tional school is a necessity, and its place is absolutely- necessary in the training of more efficient industrial workers. Every city in the United States should have these schools, and they should be equipped and conducted at pubHc expense. They have come at an opportune time, and their importance will soon be so recognized that they will be found in every city in the United States. '^We are getting only 50 per cent of the ability of the workmen in our factory," said the foreman of a large plant. ^'How to get ninety per cent and keep ^^^^ gyg_ their goodwill is the all-important question." temsfor An important question to every employer is training how to increase the efficiency of his men. "^^^ ^^^' Efficiency has awakened employers to many wastes in the old methods of doing things. One of the greatest wastes is that of misdirected energy, and this introduces the question of training. Training is a requisite in the elimination of wastes due to misdirected energy. The question of training includes school and shop education. How to furnish industry with the best trained workers is an important question which this country must solve. The question of preparation is important, and to solve this problem, vocational schools are a necessity in our educational system. They should be equipped and con- ducted at public expense, and their value in preparing young boys for trades cannot be too strongly empha- sized. Practical training for trades should be given in trade and corporation schools. Properly conducted corporation schools are best for the training of efficient workers and have become a permanent fixture in the efficiency movement. Trade schools will continue a strong factor in training, but they should be equipped and conducted at pubHc expense. They demand extreme care and supervision to bring them to a high standard. 156 ECONOMICS OF EFFICIENCY Efficiency of the training in trade and corporation schools depends upon instructors and methods. The crucial point is the following of standard methods until habits are formed. Vocational, trade, and corporation schools are the chief systems of industrial training. The numerous varieties found of industrial schools, both day and evening, should not be criticized, because each has its place in industrial education, and each is performing its task of better equipping industrial workers for doing more effi- cient work. QUESTIONS 1. What is the importance of properly trained workers in our industrial system? Why was training neglected during the nineteenth century ? 2. Give the characteristics of the apprenticeship system. What were the abuses of that system ? 3. In what way did trade unions control apprenticeship during the latter part of the nineteenth century ? Account for the oppo- sition of trade unions to industrial education. 4. What wastes are due to incompetence and ignorance? How may these wastes be eliminated ? 5. Give the evolution of the corporation school. Why has it become an integral part of our industrial system ? 6. What are the requisites for an efficient corporation school ? 7. What should be the characteristics of capable instructors? 8. What precautions should be taken in the choice of appren- tices ? Why ? 9. What is the purpose of the practice shop ? What precautions should be taken to make it efficient ? 10. What are cooperative industrial schools? What are the essentials for a good school ? 11. Give the evolution of industrial training in public schools. What are the characteristics of the industrial school ? 12. What is the function of the trade school in our industrial system ? What are the requisites of a good trade school ? 13. What are trade preparatory schools? 14. What is the purpose of manual training schools? What requisites are necessary for a good school? 15. What is the place of the vocational school in industrial train- ing ? Account for its importance. TRAINING 157 REFERENCES Books Adams and Sumner, "Labor Problems," pp. 433-460; H. Beckwith, "German Industrial Education," United States, Bureau of Education, Whole Number, 529; G. L. Bolen, "Getting a Liv- ing," Ch. XI; W. F. Book, "The Psychology of Skill"; R. A. Bray, "Boy Labor and Apprenticeship," Chs. I, II, V, VI; F. T. Carlton, "The History and Problems of Organized Labor," Ch. XVII; F. T. Carlton, "The Industrial Situation," Ch. IV; F. T. Carlton, "Education and Industrial Evolution," Chs. VII, X; J. R. Commons, "Labor and Administration," Ch. XX; E. G. Cooley, "Vocational Education in Europe"; L. M. Gilbreth, "The Psychology of Management," Ch. VIII; P. H. Hanus, "Beginnings in Industrial Education," Chs. I-V; "Industrial Education," American Federation of Labor, 1910; "Industrial Education in Germany," United States, Bureau of Education, Bulletin, 1913, No. 54, pp. 1-75; A. H. Leake, "Industrial Edu- cation"; Massachusetts Bureau of Statistics of Labor, "The Apprenticeship System," Report, 1906; Massachusetts, Commis- sion on Industrial and Technical Education, Report, 1906 ; M. R. McCann, "Fitchburg Plan of Cooperative Industrial Education," United States Bureau of Education, Bulletin, 1913 , Vol. 50, pp. 1-28; J. M. Motley, "Apprenticeship in American Trade Unions"; H. Miinsterberg, "Psychology and Industrial Efficiency," Chs. IV, V, XIII, XIV; New Jersey Commission on Industrial Education, Report 1909; New York, Bureau of Labor Statistics, Report 1908 — Part I, "Industrial Training"; H. S. Person, "Industrial Education"; The System Co., "How Scientific Management is AppHed," Ch. VIII; United States, Bureau of Labor, "Industrial Education," 1911; C. D. Wright, "The Apprenticeship System in its Relation to Industrial Edu- cation," Bulletin of the United States, Bureau of Education, whole number, 389. Articles M. W. Alexander, "Training of Men," Engineering Magazine, Vol. 39, pp. 100-102; L. P. Ayers, "Factors affecting Industrial Education," Elementary School Teacher, Vol. 14, pp. 313-318; G. M. Basford, "The New Apprenticeship," American Machinist, Vol. 34, pp. 321-322 ; W. Bowden, "Education for the Industrial 158 ECONOMICS OF EFFICIENCY Advance of the Wage Earner," Education, Vol. 34, pp. 69-77 I H. Diemer, "Factory Organization in Relation to Industrial Edu- cation," Annals American Academy of Political and Social Science, Vol. 44, pp. 130-140; C. E. Dounton, "Training Mechanics and Engineers," American Machinist, Vol. 36, pp. 85-88; W. B. Hunter, " Educating for Efficiency," Human Engineering, Vol. I, pp. 241-248; J. F. Johnson, "Commercial Education," The Efficiency Society Transactions, Vol. I, pp. 187-193 ; G. Keschen- steiner, "Technical Day Trade Schools in Germany," School Review, Vol. 19, pp. 295-317; P. Kreuzpointer, "Industrial Education, its Relation to Commerce and Industry," Southern Machinery, Vol. 28, pp. 43-44; P. Kreuzpointer, "New Standard of the Present Day Industrial Education in Europe," National Edu- cation Association, 1911, pp. 740-747; L. M. Leavitt, "Need, Purpose, and Possibilities of Industrial Education in the Elemen- tary School," Elementary School Teacher, Vol. 13, pp. 80-90; H. E. Miles, "Training the Apprentice," Proceedings of the First Cooperative Safety Congress, pp. 211-218; J. A. Pratt, "Modern Apprenticeship Training," National Education Association, 191 2, pp. 955-965; E. G. Payne, "How Industrial Education is Con- trolled in Germany," Survey, Vol. 30, pp. 405-407 ; C. A. Prosser, "Facilities for Industrial Education," National Education Asso- ciation, 191 2, pp. 1 196-1202 ; G. A. Stephens, "The New Appren- ticeship," Journal of Political Economy, Vol. 19, pp. 17-35; Thomas and Dennison, "Showing Employees how to Work," Factory, Vol. 9, pp. 515 + ; A. D. Wilhams, "Modern Apprentice- ship," Sibley Journal of Engineering, Vol. 26, pp. 176-180; C. H. Winslow, "Machinist Trade Apprenticeships," American Machinist, Vol. 36, pp. 142-146; E. M. WooUey, "The Training of Workmen," System, Vol. 19, pp. 468-476. CHAPTER VIII Habits The great countries of the world are competing with one another for industrial supremacy. Industrial expan- sion depends in a large measure upon efE- industrial ciency. Accordingly, every factor which has expansion a bearing upon efficiency is of the utmost im- ^^^ . portance to business men. Of all the factors, ^ "ency. the human is recognized as the most important, and indus- trial progress and development depend more upon it than any other. An important question to solve is how to attain the greatest efficiency from human hands and bodies. This demands the study of many factors which until recently business men thought were of little use to them, either in the building up of a business or in the acquiring of profits. One of the most in- Habit, a teresting and important of these factors is factor in habit, and the more careful study that is made efficiency, of it, the more importance is attached to its place in efficiency, industrial development, and progress. Human efficiency depends largely upon the rapidity and the promptness with which workers are able to per- form their tasks. In general, tasks become accurate and rapid in the degree to which ^omhabit*^ workers are able to reduce their performance to habits. It stands to reason that the most efficient way to use a man's energy is to allow him to follow habit in thought and in action. It is surprising to a person when he finds out how rapidly he can do habitual acts, and how 159 i6o ECONOMICS OF EFFICIENCY slowly he performs a task to which he is compelled to give specific attention. Habit-formation is the greatest labor-saving device in industry. Through a proper use of habits, the efficiency of men in fundamental operations may be increased from 40 to 400 per cent. Habit has been defined as a condition of body or mind or both, which has been established by repetition of an act or mental process or both. It is an indi- of\^it°° vidual characteristic and varies with each person. Some habits make Hfe safer and more efficient, whilst others sap vitality, dry up sources of energy, and work toward inefficiency. A person should not confuse habit with instinct, be- cause the two terms are not synonymous but different. Habits are acquired, while instincts are in- habit!*^ ^^ herent. Instincts are innate tendencies which are born with men, and have a profound in- fluence on the development of actions. Animal Hfe is completely controlled by instinctive impulses. The squirrel hides his nuts and the fox buries his food. Each blindly provides against future want. The number of instincts in man is far greater than in animals. Instincts are fixed and defy education and training. Fear, anger. Character- curiosity, jealousy, rivalry, and constructive- istics of ness are a few of our instincts. All through instincts. j|£g^ instincts serve as a background for the acquired capacities. They determine action when ex- perience has failed, and often conffict with acquired knowledge when that knowledge has been fully developed. Instincts are characteristics of a whole class, while habit are acquired during a Hfetime, and vary with individuals. The formation of habit is directly confined to the nervous system. The nervous system is very plastic, and every impression makes its nerve path. Every repeti- HABITS i6i tion of the original impression simply deepens the nerve paths already made. Each repetition of a past action or familiar impulse enables it to travel with less friction along the trodden path. One ^f t^e nerv- might liken what occurs to the process by ous system which a path is made across a meadow. The J^j^^^f first person may have selected his route for no cause whatever, and his course may have been straight or devious, but he left a mark in the down-trodden grass which the next person to cross the field is likely to follow. Presently the grass is worn away, and there- after every one follows the beaten path. The first formation of a nerve course is not strictly haphazard as in the case of the wayfarer's first path across the meadow. The nervous system is Determina- part of a Hving organism, and that organism tion of can itself in a large measure determine whether ^®^® p^*^®* a movement shall be repeated or not. The organism itself largely decides which pathway shall first become estabhshed. Nevertheless it is true that when paths of nervous activity are estabhshed, they tend ever after to remain and be used. Every time an act is performed there is a deepening of the nerve rut. The two important factors in habit formation are that nerve currents tend to follow those paths which have been previously estab- hshed, and that the organism itself plays a governing part in first choosing, and later deciding, what paths shall become fixed. Eating, walking, talking, and all important actions of everyday hfe are habits in whole or in part. The morn- ing toilet is a habit. You wash, strop your razor, shave, brush your teeth, and comb your of^^S^t^^ hair without being conscious of what you are doing. When an action becomes a habit, it seems to dispense wholly with conscious guidance. A pianist can i62 ECONOMICS OF EFFICIENCY play familiar airs and carry on a conversation at the same time. A banjoist can play without looking at the strings and talk at the same time. We may not be entirely obKvious of our muscular activities but to all appearances we are entirely preoccupied with other things, and still are able to carry on habitual acts. Repetition is an imperative demand in habit forma- tion. The only way to master an action is by repeating it at regular and frequent intervals. Each req^^te^^ repetition deepens the nerve paths already made and causes travel with less friction. The conversion of action into habit makes other demands than repetition. Knowing how to perform an action, abiHty to do, and willingness to do, are essentials in habit formation. The mind should be on the performance of the task, and the repetition should be identical. No variations should be allowed. Again, confidence in one's abihty to eventually achieve success in making an action a habit is an essential prerequisite. Failure frequently follows, or mastery is unnecessarily delayed, as a result of lack of confidence in one's abihty to achieve success. Paying heed to the foregoing demands makes habit for- mation comparatively simple and rapid. As a result of habit, many acts are performed auto- matically. A machinist does not stop to think what is Habits re- ^^^ ^^^^ movc to make, but it is made with- Ueve brain out any conscious attention. When a pianist of work. jg playing the piano, the finger movements and the reading of notes are carried on with a minimum of thought. Habits reheve the mind from paying atten- tion to the details of successive steps of an act. While the performance of an act is being reduced to habit, a person's whole attention should be given to directing its performance. As soon as habit is formed, work is done automatically, and attention may be turned to other HABITS 163 things. In the Bureau of Engraving at Washington, I saw a young lady carry on a conversation and count sheets of stamps with great rapidity. Skill, dexterity, and speed in the performance of work are based on habit. Work becomes accurate as well as fast in the degree to which we are able to Results of reduce its performance to habit. No great proper speed is possible as long as attention must be ^^^'^^^ of given to each succeeding step of a task. ^°^ ' Speed of action should not be confused with hurried action. Speed resulting from habit is never hurried, and mistakes and inaccuracies are rarities, whereas they abound in hurried action. Speed, precision, and accu- racy result only from habit. Business men usually look upon habit as detrimental to efhciency. They invaria- bly associate habits with something undesirable, and regard their possession as a handicap to good work. Little do they realize that the very basis of efficiency is habit, and that a careful study of habit and its proper formation are absolutely necessary and essential. In the formation of habits, oftentimes a severe test is that of overcoming the sluggishness and the inertia of the brain. It frequently requires a hard Difficulties struggle to apply concentrated thought, and inhabit regular and constant application until habit is formation, formed. Determination and perseverance are in many cases given severe tests. Very frequently discourage- ment follows the first few repetitions, and failure results. Every one should bear in mind the old saying, ^'If you don't succeed at first, try again." When everything seems hopeless, further repetition will soon give encour- agement. The task gradually becomes easier, and even- tually precision, accuracy, and speed are obtained. One then wonders how a task so easy to accomplish caused so much trouble and discouragement at the beginning. i64 ECONOMICS OF EFFICIENCY Too great emphasis cannot be placed upon the neces- sity of identical repetition of movements in the forma- importance ^ion of habit. Identical repetition not only of identical deepens the nerve paths to the extent that repetition, enables response to travel with less friction along the well-marked grooves, but it guarantees, when habit is formed, no deviations from the established move- ments in the habit. When movements are not identical, other nerve paths are formed. If many repetitions of the exceptions occur, their nerve paths become more and more indented or grooved. So when the habit is formed, in place of one well-grooved path for the response to travel, there is one which it is necessary to follow to get proper performance, and one or more, more or less deeply indented, which it may follow. These exception nerve routes are alert in their efforts to direct the response to The except their courses, and to divert it from its true tion nerve course. The exceptions usually put in their route. appearance at the very time when the worker is most anxious that they should not. Their appearance on one or more occasions frequently encroaches upon the worker's reliability and faith in his accurate perform- ance of a task, and has a tendency to limit his speed. With the additional strain on the brain from watching for the exception, more fatigue is experienced, and fre- quently work is more exhausting with less speed than it is with greater speed and perfect repetition of a habitual task. Efficiency with its demand of accuracy, precision, and speed does not tolerate any exception in habit- formation, and repetition should be accurate and identical. Efficiency demands industry as well as knowledge and skill. A working force, even if it be skilled, efficiency ^^* c^nnot be efficient unless it is industrious. Industry and indolence are largely matters of habit. Industry is the fundamental basis of skill and HABITS 165 dexterity, and without it, the latter are of Kttle service. Boyhood and youth are the ages for the formation of proper habits of industry. Fathers and mothers httle realize that they are largely to blame for a great amount of the indolence in the world. If they would take more pains to teach their children to be industrious importance what a boon it would be to industrial society, of habits of Youths who are allowed to do as they please industry, soon form the habit of loafing. Work becomes distasteful, and only sHght exercise causes discomfort. Indolence is established, and each successive year sees it more firmly rooted. After years of idleness, the habit of indolence is so firmly established that it is impossible to break away, and as a result, thousands spend their Hves in indolence. What a blessing it would be to society in general, and to industry in particular, if this vast indo- lence could be aboHshed and we could have industry in its stead. The time for the formation of habits of in- dustry is youth, and great care should be exercised to see that such habits are then formed. With habits of industry firmly rooted, skill, dexterity and speed are more easily attained. It cannot be too strongly em- phasized that the efficient man is the one who is indus- trious as well as possessing knowledge and skill. One of the factors underlying our future industrial expansion, and essential in our struggle for the world's industrial supremacy, is efficiency, and one of the great bulwarks of efficiency is habit of industry. Fathers, mothers, and teachers should reahze that one of their chief duties is to instill into children proper habits of industry. Visit a plant and watch the movements of the work- men, and you will see many unnecessary movements in the performance of every task. The habits of the aver- age workmen are not such as enable him to do his work in the most economical and efficient manner. Most men i66 ECONOMICS OF EFFICIENCY are allowed to choose their own movements in the per- formance of work. Habits are formed with no thought Formation ^^ ^^ ^^^ attaining of efficiency. Many habits of habit in cause the expenditure of much unnecessary common energy, and not only that, but they entail a prac ce. great loss of time in performing unnecessary movements. I once watched a mason at work, and wondered why he struck each brick at least two or three times, when frequently it was not needed. On inquiry, I was told that it was habit, and that was the only reason given. The time and the energy given to the extra tappings, if saved, would have enabled him to lay many more bricks in a day without an extra expenditure of energy. It is only necessary to visit two or three factories to reaHze the vast amount of time and energy wasted from Wastes due Using unnecessary movements in work. How to poor much more efficient would a man become habits. •£ ^Yiis waste were eliminated, and the energy saved for the performance of more efficient work. The blame for the presence of the many unnecessary move- ments in the performance of work cannot be placed upon the worker because he usually does the best he can under the circumstances, but upon the employer for not taking proper care and pains in the implanting of proper habits for the performance of work. The old method of expecting a worker to observe how work is done, and to use his own judgment in choosing movements, and repeating these until habit is formed, should give way to the demands of efficiency where the employer chooses the best method for the performance of work, and trains employees in it, until habit is formed. An important problem in business is the elimination of waste in its many varied forms. One of the greatest HABITS 167 wastes is that of misdirected energy, and in this case, a large part may be eliminated through the formation of proper habits. There is a right way of learn- _,. . . i , T e r 1 1 Elimination mg the performance of work and a wrong, of wastes of Two workmen may obtain the same results, energy but one by unnecessary movements and round- ^^^^^^ about methods may take not only much longer, but may consume much more energy, than the other. Fre- quently in observing two men perform similar work, you would declare that one would do a third more Examples than the other, but on inquiry, you are surprised of wastes of to find that the larger amount of work is per- ®^®'gy- formed by the latter. The movements of the one are much faster and his efforts much more strenuous. Carefully study the movements of the two. One will take three movements to do a certain part of the work while the other takes two. One, in short, has acquired as a habit a number of unnecessary movements, while the other has not. The new efficiency movement has turned the attention of employers to this waste and to its study in order to prevent its occurrence. The remedy lies in a study of necessary movements for the perform- ance of work, ascertaining those best adapted to the attainment of the desired result, and training workers so that they acquire proper habits of work. After proper movements have been ascertained, the next essential is training. Careful training is one of the great demands of efficiency. The workers xheim- should be carefully taught in the exact methods portance and movements necessary, and care should be ®^ traimng. taken that these are exactly repeated until habits are formed. The acquiring of standard methods and move- ments is of little use unless they become habits of workers in doing work. This demands careful train- ing, and instruction in the understanding and in the i68 ECONOMICS OF EFFICIENCY use of the standards. Competent instructors should take charge of the workers while reducing standard methods and movements to habits. They should in- struct and carefully supervise while workers are learn- ing to make certain that only standard methods and movements are used. This avoids exceptions creeping in, and insures greater efhciency when habits are formed. The great aim is to train men so efhciently that they form the habit of doing the right thing at the right time without stopping to think. If proper standard methods and movements are ascertained, and workers are trained in their use, much of the waste of human energy would be eliminated, and an abundant supply of hitherto wasted energy would be made available for more productive work. The efficiency of the skilled trades could be greatly in- creased by paying attention to motion study and train- How to ing. Take, for example, brick laying. An ap- increase prentice is supposed to watch the laying of the effi- brick and learn the movements necessary. No ciency of . , . . , . . the skiUed attempt IS made to mstruct or assist mm m trades. learning the proper movements. The result is that habits are formed and include many unnecessary movements. Mr. Gilbreth has made a special study of brick laying, and has by careful observation and experi- mentation discovered the movements necessary to get the greatest efficiency in the work. If these movements were made standard, and their compulsory use enforced upon all apprentices and bricklayers, it would greatly increase the efficiency of the bricklayer, and would neces- sarily bring an increase in wages. If the same were done in all trades, it would greatly benefit employees and em- ployers ahke. Efficiency demands standardization of methods and movements, and the time is not far distant when these demands will be fulfilled. HABITS 169 Two classes of workers should be considered in training in efficient habit formation; first, the apprentice, and secondly, the one who has learned his trade, ^ksses Each should receive special consideration, considered What would be satisfactory with the former inhabit may prove a failure with the latter. With the apprentice, when standard methods and movements have been ascertained, the acquiring of them is simply a matter of instruction and supervision. Little objec- ^ rentice tion is usually found by the young apprentice in getting him to follow instructions. No factor in effi- ciency demands more careful study than the training of apprentices in acquiring efficient habits, and yet this has been woefully neglected in the past. Em- ployers should be made to reahze that effi- -v^orker. ciency depends in a large measure upon proper methods of doing things, and when this is accompHshed, they will devote time and money to acquiring proper methods and training to obtain proper habits. Every- thing that adds to profits interests employers, yet it is only recently that a few progressive employers are realiz- ing that proper habits add to profits by assuring greater efficiency. A manufacturer employing several thousand em- ployees once remarked that standard methods and move- ments in doing work were satisfactory in train- ,^^ ing new apprentices, but absolute failures changes when they were forced on employees who had ^^® ^o* formed habits of doing their work, and that ™^ ®* he had not introduced efficiency methods in habit forma- tion because he was afraid of friction on the part of the older employees. The result is that the old haphazard wasteful methods are in operation, and it is not Hkely that in the near future any attempt will be made to ehminate the great wastes resulting from misdirected 170 ECONOMICS OF EFFICIENCY energy. The greatest opposition to new standard methods and movements, it must be admitted, comes from Why do ^^^ employees. Each worker follows naturally employees the habit groove in both thought and action, oppose The nerve paths are usually deeply grooved, c anges ^^^ ^-j^^ opposition to forming new nerve paths is deep seated. Change of habit means a complete change in certain parts of the nervous system. One does not wonder at the great resistance in every case to change of any kind. No new habit can be obtained with- out a hard struggle, and demands for some time increased attention, and a considerably increased outlay of mental and physical energy. With a young worker, who has recently acquired his habits of doing work, habit changes are not so difhcult, but with old employees, who are slaves to their deep nerve ruts, a radical change is almost an impossibility, while only a slight change means a great amount of extra effort. Patience and diplomacy are demanded in every case where the introduction of new ways of doing things is ■D^r, v*^c desired. The use of drastic measures in mak- ReqUlSlteS . . •11 1 > r ^^ mi for the in- mg changes invariably results in failure. The troduction ^j-gt essential is the cooperation of the working c anges. f^j-^g^ ^^^ ^-^[s demands that the workers be taken into confidence by employers. Few realize this, and they wonder why they fail in the introduction of changes. The importance of changes in habit should be made clear, and proper incentive should be given to make the changes. The one great incentive with every wage earner is increase in pay. It should be emphasized that the increased efficiency which will come from the changes will not demand extra effort after habits have been formed, and will increase wages. The saving of energy by eliminating unnecessary move- ments will result in increased output without any in- HABITS 171 creased effort on the part of the workers. It will simply be converting the energy used for unproductive purposes into productive results. The fact that this Ejects of is not for the purpose of exploitation, or dimin- proper ishing the ef&ciency of the workers, but for habits of increasing their efficiency without any greater ^°^ expenditure of energy should be made clear. The aver- age worker is opposed to change, because it means for a time paying more direct attention to mastering new methods, and because he believes that every innovation or change is for the benefit of the employer, at the expense of the employee. Prejudices and fallacious beliefs such as these should be overcome at the very outset, or else proper cooperation will be lacking and failure will result. The cooperation of the laboring force having been obtained, the chief difficulty is over, because without it, the successful introduction of new habits is conversion impossible. Standard methods of work ob- of new tained, their successful introduction demands methods considerable time, patience, and perseverance. *^*° ^ ^*^' The new methods must be mastered, and by repetition converted into habits. This accomplished, the working force through increased efficiency and wages will be better satisfied and more contented under the new con- ditions than under the old. With proper consideration of employees, clear explanations of purposes and results of changes, proper incentive to make changes, and gradual introduction with considerate and patient instructors, no employer will have much trouble in changing habits of employees, and thereby increasing their efficiency. Efficiency demands healthy and intellectual workers. Health is largely dependent upon the forma- proper tion of proper habits of living. Regular eat- habits of ing, proper mastication of food, cleanliness, ^^^^s- regular hours of rest, and wholesome recreation are the 172 ECONOMICS OF EFFICIENCY results of habit. Parents, in training their children in proper habits of living, have a duty to perform to industrial society. A person accustomed to dirty and filthy sur- roundings will have great difficulty in acquiring the habit of cleanliness. Employers frequently have great diffi- culty in getting their employees to Hve amidst proper sanitary and hygienic surroundings. If once the habit of proper living has been acquired, they express the greatest abhorrence to the very conditions which had taken so much patience to break them away from. Em- ployers should insist on the acquiring of proper habits of living, and see that they are followed by their workers. Many acquire early the habit of rapid eating and the improper mastication of food. Many form habits of Proper Overeating, which lead to indigestion and ill- habits of health, and many become accustomed to eat- eatmg. |j^g sweets, cakes, and pastry instead of good wholesome and properly cooked food. All of the bad habits of eating lead eventually to ill health, low vitality, and inefficiency. Efficiency demands careful investiga- tion into the habits of living of employees, and the cor- recting of those detrimental to health. Nurses and dietitians to visit the homes of employees, and to instruct in the proper manner of living and of eating are essentials in large business enterprises. Lectures on hygiene, care of the body, and proper clothing should be regularly given, and all expenses so incurred are good investment, because the increased efficiency of the working force repays manifold every dollar so spent. Even to-day, the Training in ^.vcrage busiucss man hesitates about interest- proper ing himself in the lives of his workers. The habits of tjnie is not far distant when nurses and doctors ^^°^' will be regularly employed by large business enterprises, and not the exception, as it is to-day. Train- ing in proper habits of living is as essential in the HABITS 173 management of an enterprise as training in the methods of doing work. Habits, from the point of view of efficiency, may be classified as efficient and inefficient. The former include those which assist in getting the best possible results out of a given expenditure of mental habits ^°^ and physical energy, as proper habits of Hving, work, and industry. The latter include improper habits of work^ improper modes of hving, and habits of intem- perance and of indolence in any form. These . should be eliminated if the goal of efficiency is the aim. Employers cannot afford to remain indifferent, and trust that the state and society will eliminate or rid industrial society of these cost-increasing fac- t ^ • + tors, but should take the matter into their own hands, and by their own efforts discover and remedy improper habits in their working force. As soon as employers realize that the decrease in costs will more than repay for the expense of such action, they will become active in studying habits in order to eliminate those which are not conducive to efficiency. Formerly, and even to-day, business men associate habits with bad habits, and look upon a habit as some- thing undesirable in a worker, and a factor, if present, working toward inefficiency and loss. ^^ h^Us!^ They look upon all habits as bad and unde- sirable, and fail to see that good habits are just as desir- able as bad are not. Habits play a very important part in the life of every individual, and their study Rgje of is a much neglected factor in industrial society, habits in It is true that the efficient man is marked off society, from the inefficient, and the useful from the useless and vicious, by the nature of their habits. Industry and indo- lence, efficiency and inefficiency, good and bad temper, virtue and vice, are in the last analysis largely matters of 174 ECONOMICS OF EFFICIENCY habit. Losing one's temper or retaining self-control is a matter of habit. Each time one is angered by a trifle it becomes more difficult to look calmly at anything un- pleasant, while each time one controls himself, it becomes easier to retain control over future disagreeable of^Mbfr happenings. The habit of self-control is an important factor in business, and is almost a virtue in a superintendent or boss, because if he loses his temper at every trifle, it reacts upon his men and works toward inefficiency. Losing one's temper increases chances of mistake and because one loses partial control over his actions causes many accidents. A hasty tem- per has no place in a business enterprise, and if one has that weakness, no time should be lost in gaining self- control. The drinking of alcoholic liquors as well as the using of morphine and cocaine are habits, and the excessive use intemper- of 2,ny one stamps more firmly the habit and ance a makes the user a slave to it. The habitual habit. ^ggj. j^ggg control of choice, and upon invitation to partake cannot refuse to indulge. The habitual drinker and the drug fiend have no place in an industrial enter- prise, and are dereHcts upon industrial society. The absolute prohibition of employees to bring alcoholic drinks in any form into a place of business should be rigidly enforced, and everything should be done to dis- courage the use of Hquor or drugs at anytime. Extra precautions should be taken against bringing into a work- ing force a worker addicted to the use of liquor or drugs, and if a habitual user is found, opportunity should be given to reform, and if not promptly acted upon, dis- missal should follow. Efficiency has no place for the alcohol drinker or drug user. The smoking or the chewing of tobacco is likewise a habit. The excessive use of tobacco undermines the HABITS 175 nervous system and unfits a man for efficient work. Its use in any form should not be allowed during working hours, and punishment should be severe for Effect of any infringement of the rules. Employers the tobacco should discourage the use of tobacco outside ^^^^*- their places of business, as no good arises from its use and it works toward inefficiency in every working force. The drinking of tea and coffee may become a dangerous habit, but the use of either in mild form will never do any harm. Injury only results when the habit is formed of using strong beverages. I 2o?ee^habit. have seen workers drink tea and coffee so strong that to the taste it was almost as bitter as aloes. They were such slaves to the habit that they would far rather go without their breakfasts than without their strong cups of tea or coffee. Such a habit gradually undermines the nervous system, en- dangers proper digestion, and lowers vitaHty in general. Everything which impairs health affects the efficiency of the working force. It is advisable for employers to care- fully investigate the drinking habits of their employees because they affect efficiency, and everything which im- pairs efficiency is of vital importance to every employer. The injuries arising from the drinking of strong tea or coffee should be carefully pointed out, and every dis- couragement given to their use except in mild form. The most efficient way to use man's energy is to allow him to follow habit grooves of thought and of action. It is very necessary to see that correct habits y^^^ ^^ are formed, because every correct habit be- habit in comes a power which may be used for increas- industrial ing the efficiency of a worker. Steadiness of ^°"^ ^' production and low costs come from proper habits throughout a business enterprise. A most valued asset 176 ECONOMICS OF EFFICIENCY in any business is acquired habits of doing in a standard way, promptly, and to the best of one's ability, the work set before one. The aim of efhciency is to obtain the best use of natural resources and human energy. To accomplish this, careful and close study should be made of every factor of production to make sure that it per- forms its function with the least waste and with the greatest efficiency. No one factor in efhciency is of greater importance than habit, yet it is one which in the past has been sorely neglected. Waste of energy cannot be eliminated or greatly reduced unless special care is taken to obtain standards of work, and by careful in- struction to make certain that they become habits. The obtaining of standards and proper training to acquire correct habits is of great interest to the employer, and the more attention paid to securing this goal, the greater will be the efhciency obtained. QUESTIONS 1. Why is habit an important factor in efficiency? What is the difference between habit and instinct ? 2. What is the process of habit formation ? Why is repetition a requisite ? 3. In what way do habits relieve the strain of work ? 4. What is the importance of identical repetition? What is the exception nerve route ? 5. What is the importance of habits of industry? How are they acquired ? 6. How may wastes of energy be eliminated through habit ? 7. How may the efficiency of the skilled trades be increased through acquiring the proper habits of work? 8. What precautions should be taken in the introduction of changes for the formation of new habits ? 9. Why do employees oppose changes ? 10. What are proper habits of living ? Give their importance in efficiency. 11. What are (a) efficient habits, {b) inefficient? HABITS 177 12. What are the effects of (a) the drink habit, (b) the tobacco habit, (c) the coffee habit ? 13. Why is it the most efficient way to allow men to follow grooves of thought and action ? 14. What is the importance of training in habit formation ? 15. What difficulties are encountered in the formation of habits ? REFERENCES Books D. H. Bergey, "The Principles of Hygiene," Chs. IX, X; S. S. Colvin, "The Learning Process," Chs. Ill, IV; Colvin and Bag- ley, "Human Behavior," Ch. XI; H. L. Gantt, "Work, Wages, and Profits," Chs. VII, VIII; J. Hartness, "The Human Factor in Works Management," Chs. I, II ; H. H. Home, "The Psycho- logical Principle of Education," Ch. XXVI; W. James, "Princi- ples of Psychology," Vol. I, Ch. IV; Kirkpatrick and Students, "A Study of Habit," P. Klapper, "Principles of Educational Practice," Ch. XXIV; C. L. Morgan, "Habit and Instinct," Ch. VII; H. Miinsterberg, "Psychology and Industrial Effi- ciency," Ch. XVIII; G. E. Partridge, "The Psychology of In- temperance," Ch. VI; W. B. Pillsbury, "Attention," Ch. VII; W. B. Pillsbury, "The Essentials of Psychology," Ch. Ill; S. H. Rowe, "Habit-Formation," Chs. IV-VII, X, XI; W. D. Scott, "Increasing Human Efficiency in Business," Ch. XIII; G. F. Stout, "Analytical Psychology," Ch. IV ; G. M. Stratton, "Experi- mental Psychology," Ch. XI; E. L. Thorndike, "Elements of Psychology," pp. 199-229; E. L. Thorndike, "Educational Psy- chology," Ch. V; Tolman and Guthrie, "Hygiene for the Worker," Chs. II, III, VI. Articles B. R. Andrews, "Habit," American Journal of Psychology, Vol. 14, pp. 121-149; A. W. Benn, "Habit and Progress," Mind, Vol. II, pp. 243-251 ; H. Black, "The Habit of Work," Current Literature, Vol. 35, pp. 724-727 ; J. Calder, "The Effect of Intel- lectual Habits," Iron Age, Vol. 91, p. 496; J. Hartness, "The Factor of Habit," The Efficiency Society, Transactions, Vol. I, pp. 237-242 ; O. J. Schuster, "The Importance of Habit Forma- tion," Education, Vol. 31, pp. 73-81 ; W. D. Scott, "Habits that Help," Everybody's, Vol. 25, pp. 412-417. CHAPTER IX Fatigue One factor in efficiency which the average employer overlooks and which has an important bearing upon effi- Fatigue its ^iency is fatigue. Fatigue is a phenomenon importance which is daily experienced by men, women, in business ^j^^ children. Several psychologists have neg ec e . ^q^q excellent work in the study of this phenomenon, and several exhaustive studies have appeared in America and Europe dealing with the cause and effects of fatigue. The importance of the study of fatigue to the business man has received httle atten- tion. The struggle for industrial supremacy has brought home to every business man the necessity and impor- tance of efficiency. Efficiency demands a careful study of fatigue, a factor which heretofore has been considered of little importance to business men, and only suitable for conjecture and experimentation in the classroom. Work is performed by muscular movement which comes from muscular contraction. A process somewhat similar to oxidation takes place within the mus- Sr^ue ^^ ^^^ during its contraction, and waste products or toxic impurities are thrown off into the blood. Every movement of a muscle and every thought cause oxi- dation , and dross or toxic impurities are formed. During all work, whether physical or mental, they are accumulating in the blood. They are poisonous, and if accumulated to a large amount, poison an individual like any other poison. Their presence at first is not detected, because they do 178 FATIGUE 179 not exist in sufficient amount to make their presence felt. It is only after a certain accumulation that further addition causes injury. When this period has been reached, nature gives warning, and this warning is known as fatigue. Fatigue is nature's signal to cease the accumulation of waste products and to give it an opportunity to eHmi- nate what has been accumulated. If this warning is not heeded, injurious results follow, g^austion and it does not take much more accumulation to bring exhaustion or overfatigue. If carried still further, death results. Men and animals are known to have dropped dead from exhaustion. They are poisoned by their own waste products produced during periods of activity. The muscles almost immediately become rigid, and putrefaction starts in a very short time. Lucky is the one who is able to take heed of the warn- ing signal of fatigue, and not overtax his own capacity for production. Work is performed at the expense of nutrients stored up within the muscles, and of oxygen absorbed from the blood. The toxic impurities pro- duced during work circulate in the blood and fati^e.° act upon the nerve endings in muscles, and upon the gray matter of the brain. They diminish the contractabihty of muscles and render them less respon- sive to nerve stimuH. They poison the large nerve cells in the gray matter of the brain, and reduce their power of remitting voHtional impulses. When the waste products accumulate in the blood, the period is sooner or later reached when their action will be felt in the sensation of fatigue. Not only is the whole body subject to fatigue, but every organ, tissue, and cell ^gYsg^en'. of which the body is composed. Fatigue is thus a sensation, the result of work carried beyond the i8o ECONOMICS OF EFFICIENCY capabilities of an organism. It manifests itself in various ways. Headache is the usual sensation of brain fatigue, and sleepiness is frequently that of physical. Exhaustion is very injurious, but fatigue is not. Fatigue may readily be done away with, and appears to be a protection to the human body. It warns a person when it is time to rest, and if the warning is not heeded, the injurious stage of exhaustion is soon reached. It is practically impossible to tell when strain begins. The consciousness of fatigue does not appear with the first casting-ofE of impurities, but only after a certain accumulation has been reached. A person does not perceive the on-coming of fatigue, and only experiences the sensation when it has reached a certain degree of intensity. There is a limit to a man's power of doing work, and this varies with different people. It depends upon train- Power of ^^S' occupation, environment, and the consti- work varies tution of the individual. Some people tire with people, j^ore easily than others. People with weak nervous systems easily become exhausted and recuperate slowly. Different persons vary in their power of resist- ance to the action of the toxic impurities of work, and in the rapidity with which their bodies cast the impurities off. There is nevertheless a certain amount of re- ^?cr^^ serve force which allows our muscles to be overtaxed without injurious consequences. If the work is prolonged so that the reserve force is consumed, precautions should be taken to make certain that there is sufficient recuperation to restore the used reserve force. Serious injuries arise when reserve force is encroached upon, and complete recupera- exSnt*° **^ ^^^^ ^^^^ ^^^ ^^^^ place. There is a limit to the reserve, and when it is consumed, exhaus- tion follows. When the reserve force is approaching final consumption, irritation, nervousness, and impaired FATIGUE i8i vitaKty are found. These impair the efficiency of the worker, and make him a fit subject for all kinds of diseases. The accumulation of toxic impurities without proper elimination lowers the general health of working people. It increases the efforts necessary to perform Effects of work. The lowering of a person's vitality toxic im- makes him susceptible to all kinds of diseases. P^i^^es. A greater injury results from work done by fatigued muscles than from harder labor done before the worker is tired. Thousands of workmen are compelled to work while fatigued. Productivity continues, but at the ex- pense of human health. One of the greatest economic wastes is the consuming of an abnormal amount of energy by the thousands who are compelled to work with fa- tigued bodies. Efficiency demands that work shall not be performed by tired and fatigued muscles and brains. The management, to get the greatest efficiency, should pay particular attention to the question of fatigue, and if it were properly studied, working conditions would be greatly improved to the advantage, profit, and benefit of employer and employee. It is generally recognized that with work which re- quires close thinking and close attention, there is a period, varying with the individual but fairly Effect of definite throughout, when concentration, fatigue on thought, and attention may be maintained, *^®^^^°' but when the limit is reached there must be relaxation, perhaps only momentary, or the productive faculties decrease rapidly in efficiency. All work requires more or less thought and attention. With the increase of the intensity of thought and attention, the casting off of toxic impurities increases at a rapid rate. After nature gives her signal through the sensation of fatigue, sensibihty is gradually blunted and attention flags. It is impossible for a fatigued man to give the close attention which he i82 ECONOMICS OF EFFICIENCY gives when he is fresh. The flagging of attention di- minishes precision of movements, and is one of the great causes of accidents. Nervousness and irritabiHty are consequences of a fatigued mind, and their presence pre- vents efficient work. Fatigue has a baneful effect upon memory, and if activity is continued, it will not only greatly weaken its power but almost destroy it. Tired persons Fatigue and Qf ^gj^ wonder why it is impossible for them to memory. . -^ ^ . remember tmngs, not knowmg that the powers of memory have been benumbed by poisonous waste products. The overworking of children causes an accu- mulation of impurities which weakens memory and pre- vents intellectual development. Stupidity in working children is usually due to the baneful influence of toxic impurities. Efficiency demands intelligent workers, and this in turn demands proper intellectual stupidity in development of young boys. One of the many greatest curses of fatigue comes from cast- children, -j^g -j^^Q ^Yie great industrial system unde- veloped and stupid workers. This should be remedied by compulsory training, and the prevention of overwork of boys during years of growth and development. The body purges itself of the accumulated toxic im- purities during repose. They are normally burned up by oxygen brought from the blood, excreted toxic im^- by the kidneys, destroyed by the liver, and purities cast of! from the body through the lungs, "sed^^ f -^^^^ should eliminate the sensation of fatigue, ^° ^ ° ' and the accumulated toxic impurities should be cast off. The body is repaired during rest as long as activity is continued within psychological limits, or as long as it is balanced by rest. An important factor in efficiency is the taking of precautions to make certain that recovery through rest is complete. The efficient FATIGUE 183 cycle should be, work to the period of sensation of fa- tigue, and sufficient rest to repair the body of its losses. Work is often carried beyond the warning signal, and it becomes difficult to cast off, Jy^Jg^®"^''* through the repose given, the accumulated impurities. This is injurious to health, and the over- taxed worker becomes susceptible to diseases of all kinds, and his efficiency is impeded by nervousness, irritability, loss of memory, and flagging attention. Efficiency demands that the daily average of expended energy should be evenly balanced by fresh strength and recuperation. Closely related to the repairing of the losses of the body through physical and mental activities is sleep. Sleep is the best-known phenomenon of life. Sleep makes rest more complete, allows greater and more complete ehmination of poisonous ^j^^*^***^ impurities, and assists the restoration of the tissues necessary for future activity. Overfatigue with its accompanying nervousness and irritability is inimical to sleep. It causes sleeplessness and a further accumulation rather than ehmination of waste and^eep. products. A good sound sleep is one of the blessings of humanity, and fortunate is he who realizes its necessity, and does not impair his efficiency by encroaching upon his proper hours of rest and sleep. Equally difficult with the question as to what extent work may be carried before it is injurious is the problem of how much sleep is required. Some people How much possess greater recuperative powers than sleep is others and impurities are more quickly cast ^®<^®^^^^y- off. Six hours of sleep with them give the same recu- peration as eight with others. Psychologists agree that for the average man, eight hours of sleep are sufficient to cast off the accumulated wastes of the preceding day. i84 ECONOMICS OF EFFICIENCY Effective sleep should be dreamless, because when a person dreams it means so much hindrance to the eHmi- nation of poisonous wastes. One of the greatest requi- sites of effective sleep is a bountiful supply of fresh air during sleep. Efhciency demands proper sleeping quar- ters and proper ventilation, so as to assure the greatest possible destruction of waste products, and the greatest possible building up of new tissues. Employers are commencing to realize that it is to their interest to see that their employees protect them- Proper selves by taking proper sleep and taking it habits of Under proper conditions. Strictness regarding sleep and regular sleeping hours is an absolute necessity if the greatest efhciency on the part of the working force is to be attained. Nurses should visit the homes of employees in order to see that all precautions are taken for an abundant supply of fresh air during sleep. Sleeping in close quarters retards the process of eHmi- nation of waste products, and defeats the purpose and the object of sleep. Precautions taken to assure proper rest increase the efficiency of the working force, and help the employee in protecting his health, and in conserving his strength and vitality. During work, the process of elimination and destruc- tion of the toxic impurities is going on, but their produc- EvUs of im- ^^^ ^^ greater than their destruction. Work- proper ing with proper sanitary conditions, proper working temperature, good ventilation, and an abun- dant supply of pure air increases the destruction of toxic impurities. Dust, odors, high temperature, and high humidity affect the working power of the laborer, through consuming more energy in the performance of his work, and loading the blood with an increased burden of impurities. One of the chief antidotes to fatigue is nourishment. FATIGUE i8s Fatigue does not always or necessarily depend upon the amount of work done. A good deal depends upon the state of the body. No general rules can be importance laid down which apply to all people and to all of food kinds of work. All circumstances which ham- and good per work in any way, as ill-health or pain, have the effect of increasing the production of toxic impurities. The muscles may for a time continue to perform some work, but they soon give out. Efficient work demands a healthful body and a peaceful mind. Ill-health of any kind increases the energy needed for work and hastens the accumulation of toxic impurities. One of the great essentials for health is regular and proper nourishment. This demands a careful selection of articles of food and their proper cooking. Half-cooked foods cause indiges- tion, a common ill, and the cause of much unnecessary fatigue. It is a business proposition to see that em- ployees get nourishing food, and to have it properly cooked. Some employers give their employees free lunches or lunches at cost. Little attention has been given to instructing the wives of employees in the selec- tion or in the cooking of food. The time is not far distant when employers will realize that it pays to send domestic science teachers to the homes of their employees to teach wives how to choose the best food, and how to cook it. The human body demands relaxation as well as rest to repair the wastes of work. Play, amusement, and reading are the chief agencies for mental re- Relaxation, laxation. Athletic sports should be encour- its place in aged by employers. The benefit obtained by efficiency, employees from the mental relaxation during games of ball or tennis fully repays their cost to employers. In- door games of all kinds furnish wholesome amusement and recreation for the fatigued brain. Efficiency demands 1 86 ECONOMICS OF EFFICIENCY healthy sport and wholesome amusement. It is profit- able to employers to furnish and equip athletic fields, indoor g\^mnasiums, and amusement halls. A hall for dancing, singing, and music during lunch hours and after work is a pa}TQg investment in a large enterprise. Many employers find it profitable to have a circulating Hbrary ■\;\dth good books and magazines. The furnishing of whole- some recreation takes away the temptation to seek un- wholesome centers. JMany a good worker has had his efficiency impaired and oftentimes ruined by being in- duced to take the fatal step in seeking recreation to satisfy the cra\dngs of a fatigued brain. Employers are reahzing that wholesome recreation is part of the worker's daily Hfe, and that efficiency is increased by pro\dding various forms of good recreation. A difficult problem to decide is how much food, recreation, and rest are required for healthy recupera- tion. This is quite difi'erent from w^hat we f^tue*^^*° think we require. Sensations are misleading, and it is not difficult to acquire habits which are quite contrary to nature's demands. The amount of food needed to keep our bodies healthy probably differs with each individual, and at present is not accurately kno^m. The acquiring of the habit to eat proper food, properly cooked, and slowly, and to Kmit eating to the point of satiety, is a very important factor in the health of every workman. The amount of rest needed for the average man follows very closely the old adage, ''Eight hours work, eight hours play, and eight hours sleep." Food, rest, recreation, and sleep are the eft'ective anti- dotes to fatigue. A careful observ^ance of each is the demand made by efficiency, and it is to the interest of employers and employees to see that a proper amount of each is obtainable. Efficiency is an enemy of alcohol and of all stimulants. FATIGUE 187 The efficiency movement puts a ban on the use of all alcoholic drinks, and is an important factor working for temperance. Stimulants are Uke a whip in Effects of that they urge on the muscles, and cause more alcohol on rapid contraction. They do not bring a new workers, supply of energy into the system, but use the reserve force. Liquor may drive away temporarily the sensa- tions of fatigue, but in the end it is a greater drain on the reserv^e force, and leaves the worker weaker. The extra drain resulting from the use of stimulants demands longer rest periods for recuperation ; when they are not obtained, impurities accumulate, and sooner or later cause a breaking down in health. If toxic impurities are not normally ehminated, they place the workman in an abnormal frame of mind. He seeks to deaden the sen- sations of fatigue by alcohol, tobacco, exciting amuse- ments, or excesses of any kind. Liquor acts i^temper- upon the muscles and the nerves, causing un- ance comes certain muscular control, and frequently leads fro^n over- directly to accident and injury. The em- ^*^^®- ployer who is seeking efficiency in his working force should take extra precautions against hiring men ad- dicted to the use of alcohoHc drinks. Their use outside of working hours, if in any quantity, has an effect upon the worker the following day. Alcohol and stimulants of all kinds are factors working towards inefficiency, and if an efficient force is the aim, their use should be strictly forbidden. Pauses and rest periods are in many kinds of work great conservers of energy. They allow the blood to renew oxygen, and to partially ehminate the j^^^^ wastes of work. A few minutes rest allows a periods, certain amount of recuperation. The strength when of muscles under intermittent work may be ahnost double that under continuous work. Pauses are i88 [ECONOMICS^ OF EFFICIENCY absolutely necessary in the case of work requiring con- siderable thought, close attention, or strenuous muscular activity. If they are not given, the sensation of fatigue comes early, and continuous work uses the reserve force and taxes the body. The additional drain is not repaired overnight, and health is soon impaired. Employers can- not afford to have their employees' strength overtaxed or their health impaired. They should pay close atten- tion to all kinds of work, and where more than ordinary attention, thought, and strength are required, should give proper rest periods so that their employees are not over- taxed, and their strength, health, and efficiency impaired. The workman at the beginning of the day is cautious and attentive. He avoids danger because his attention Fatigued ^^ alert. If work continues after nature's workers Warning in the sensation of fatigue, it decreases ^^<^ sensibihty, diminishes attention, and lessens precision of movement. Where before alert- ness avoided accident, now lack of attention and of pre- cision in movements causes a misstep or a slight devia- tion in movement, bringing hand, foot, or body in con- tact with moving machinery, and accident follows. The number of accidents increases with great rapidity as fatigue and weariness of workmen increase. There is an immediate relation between fatigue and industrial acci- dents. Experts have proven that the greatest number of accidents occur between ten and eleven in the morn- ing and three and four in the afternoon. The losses due to accidents caused directly by fatigue amount to milHons of dollars every year. Numerous factors besides work have an important Effects of bearing upon fatigue. Dirt and dust have a dirt, dust, depressing effect upon vitality and lessen re- and noise, sistance to impurities. Efficiency demands cleanliness and freedom from dust in factory and plant. FATIGUE 189 Noise of all kinds has its influence upon fatigue. The roaring of machinery has a great influence upon atten- tion. It necessitates a greater exertion to maintain attention, and is an extra strain upon the muscular and nervous systems. Every precaution should be taken to lessen the roar of machinery. Where there are constant and loud noises, and close attention is required, frequent rest periods should be given, or the vitaHty, health, and efficiency of the operatives will soon be impaired. Workmen, even if properly nourished, cannot produce beyond a certain limit without injury. Capacity for work varies with different individuals. If gpeg^jj^g work is carried beyond a certain point, the frequently work is gained at the expense of the worker's ^^ economic muscular and nervous systems. Speeding, in ^*^*®- the majority of cases, is an economic waste. It causes a temporary increase in productivity by an extra drain upon the human system. If sufficient rest is not given to recuperate, it undermines the ff[;edfng^ human system and impairs the efficiency of the workers. Speeding is one of the common evils of piece- work. If piece-work is carried beyond the normal capacity of the worker, it represents an economic waste in curtailing in the long run the productivity and the efficiency of the worker. More sickness and low vitality are found among piece-work tailors than among any other classes of workers. The greatest precautions should be taken to see that workers do not work beyond their physical and mental capacities, which will even- tually impair their efficiency through undermining their health. Speeding and piece-work are two causes of economic waste, and the extra productivity gained at the expense of human health is dearly paid for. Good work can never be performed by tired brain or igo ECONOMICS OF EFFICIENCY fatigued muscles. The amount and the quality of the work are greater when fatigue has not been woS!^ ° reached. If a worker is tired, and it is neces- sary to use more effort to complete a task, he completes his work only by using a certain amount of his reserve force and by making additional demands upon his nervous system. Work in itself is a blessing. Work, while physiologically making for health, may, if pushed too far, so as to induce overfatigue, ultimately unfit a worker for his daily task. Work becomes injuri- ous and dangerous when a normal amount of rest does not eliminate the impurities accumulated during work. Instead of the daily cycle of accumulation and eHmi- nation of the poisonous wastes, there is a gradual ac- cumulation leading to a progressive impairing of health. What should be the length of the working day is a serious problem to-day. Maximum efficiency comes The length with the adjustment of the work so that it fits of the work- the capacity of the workmen. How many mg day. hours can a man work without impairing his efficiency is the question which should be solved in order that the greatest efficiency may be attained. The decision should be made after a careful study of work to discover what length of working day accumulates impurities that can be eliminated by a night's rest, sleep, and repose. Again, the decision as to whether de^cide! ^ ^^^ should work eight, nine, or ten hours per day should depend upon the character, and the intensity of the work, and the surroundings while at work. What energy, whether muscular, mental, or nervous, is necessary to perform the work is the important question. Six hours with some kinds of work are more exacting than nine or ten with others. Where work is intense and carried on amidst noisy surroundings, or where it requires concentrated thought or strong muscular FATIGUE 191 energy, the maximum time should not be greater than eight hours. Where men are compelled to work longer, the additional product is obtained at the cost of impaired health, and represents a loss rather than a profit. Where work is not difficult and no great strain is necessary, the length of the day may be increased by another hour without any injury to health or efficiency. In many cases, not only should eight hours be the maximum limit, but there should be frequent pauses during the working day. An economical period of work gets all the advan- tages of continued work without injurious fatigue. The power of resistance to the toxic impurities may be increased by training. Training is the development of skill, and of the power of resistance to the importance action of the toxic impurities of work. As re- of training gards the latter case, it acts in much the same j^ resisting way as increasing the tolerance of a poisonous ^ ^^^' drug by administration of successively increasing doses of it. Training increases efficiency not only by the acquiring of dexterity, but also by increasing the power of resistance to toxic impurities. William James, in his essay on ^'The Energies of Man," says, ''We live subject to arrest by degrees of fatigue which we have come only from habit to obey. Most of us may learn to push the barriers further off and to live in perfect comfort on much higher levels of power." It is hard, in many cases, to distinguish between real and false fatigue, and to know when real fatigue fJse fatigue, has been reached. The easy surrender to fatigue may be easily acquired as a habit, and when it is, it is difficult to change. Many people who have little resistance to the toxic impurities of work may account for it by a surrender to habit. Such a habit prevents men from working to their proper efficiency, and if acquired, should be altered by a course of training. 192 ECONOMICS OF EFFICIENCY Progress and development depend upon work. The casting off of toxic impurities is unavoidable if one works. If a worker becomes fatigued before sSr^fatoe ^^^ ^^^ ^^ ^^^ ^^y? ^^ works with impaired energy. If he is compelled to do things in connection with his work that unnecessarily tire him, the employer loses thereby, and loses in proportion as the condition is remediable. It stands to reason that any means which tend to conserve a worker's strength and to postpone fatigue, give increased productive re- sults. There is no reason why energy should be wasted in tiring the muscles by unnecessary work when that energy saved could be used to more productive advantage. CHmbing stairs is very tiring for women and to a less degree for men. A woman after climbing several flights c„ •«„ of stairs starts work with a greater accumula- Saving . .. ••Ill energy for tion of toxic impurities than would result from productive two or three hours of regular work. This handicap is unnecessary and wasteful. There is no reason why this energy should be consumed in un- necessary work when it may be conserved to give more efficient work. An elevator pays for itself several times a year by increasing the efficiency of workers through saving the unnecessary expenditure of energy in climb- ing stairs. In some plants it is necessary for workers to go several times a day from one floor to another, and they are usually compelled to climb stairs. This causes a great expenditure of unnecessary energy which may be easily conserved. Many operations are of a nature that an employee may sit as well as stand. There are few that do not allow the worker to sit at intervals if only for a sitting^ ° ^^^ moments at a time. The old notion was that sitting during working hours was a sign of laziness and not to be tolerated. Little did employers FATIGUE 193 realize that compulsory standing when not necessary- was impairing efficient results, and by just so much diminishing profits. The management to-day, working for efficiency, has a very different attitude towards the question. It beheves that employees should be en- couraged to sit whenever the work may be done as effi- ciently sitting as standing, and encourages sitting when- ever five minutes' rest may be obtained without any loss in work. The clerk in a store might Just as well sit as stand when not waiting upon a customer or putting stock in order. If seats are provided, and clerks are en- where couraged to use them whenever it does not in- sitting is terfere with work, they would be able to give ^^^^^ ®' better service to both customer and employer, because not unnecessarily tired and worn out by useless standing. The same appHes with many operations in a factory. Many machines allow the attendants some time for sitting, and if facilities are provided, many occasions would arise where sitting for a few minutes would be possible. The periods, although short, would in their total make a great difference in the physical condition of employees at the close of a working day. The kind of stool has much to do with the kind of rest that it gives. A mere stool serves a purpose, but to give full benefit, it should have back rests, and Kind of be of the proper height so that the feet of the stool employee rest on the floor. If stools are too ^®®^®<^- high, foot-rests should be provided. In many cases, stools should be provided which allow quick rising and sitting. Many factories do not even provide seats, and the foremen do not allow the use of any improvised by the workers. They beheve that ^^^"^s is .,7^. ^ 11. ...... not laziness. Sitting leads to laziness and diminishes output. They are yet to be enlightened that it increases effi- 194 ECONOMICS OF EFFICIENCY ciency and output. If they would only reflect a little, they would realize that the more they relieve their em- ployees from unnecessary muscular strain, the more energy is left to turn out work. Every employee should have a certain definite task to perform. The greater the specialization of industry, •WTiata the fewer movements are demanded of the worker employee. All his energy should be devoted should do. ^^ ^Yie direct performance of his particular task. Energy consumed in doing other things lessens by so much the energy available to make his work more efficient. This makes many demands upon the man- agement. A worker should not use his time or energy in getting or putting back tools or in obtaining or re- moving materials. Tools and materials should be de- livered and removed by unskilled hands. The proper tools and the proper amounts of materials should always be present, and in a place which causes the least exer- tion to obtain when wanted. There should be no cause or excuse for a worker to leave his task. Every time this happens it not only takes time, but consumes energy, and diminishes the supply for real productive work. The old method of handling and conveying materials and tools from place to place when wanted was by the Methods of use of human muscular energy, whereas effi- conserving ciency demands the abolition of the use of mus- energy. cular powcr for such purposes, and its conser- vation for more effective work. In many factories, in this enhghtened industrial age, you find the calling of men from their tasks to assist in moving heavy ar- ticles. Quite different is the modern efficient factory, where a man is not called upon to waste his energy in such work, but all Hfting is done more effectively by hoists, cranes, etc. Only recently, I visited a loft fac- FATIGUE 195 tory in the city of New York. It occupied three stories and these did not have any connection except the stairs. A few hundred dollars would have installed an elevator, chutes, and speaking tubes. The saving in time alone is sufficient inducement for the extra expenditure, while the increased efficiency from the wasted human energy saved will repay the cost of installation several times during a year. Elevators of various sorts, chutes, cranes, hoists, movable platforms, electric trucks, and conveying belts are a few of the energy-saving devices which have become necessities and integral parts of modern plants. Speaking tubes and telephones play an important role as conservers of human energy. Too much emphasis cannot be placed upon using, wherever possible, various devices for saving human effort and energy. The conservation of human energy wards off fatigue, and to that extent increases the efficiency of the working force. It does not pay to wear out men. If men are forced to work at such a pace that their vigor is diminished, they will in a lifetime do less work than they wastes would if they worked at a lesser pace. Speed from causes losses to both society and industry. ^^*^sue. Professor Irving Fisher estimates the minimum annual cost through serious illness in this country at one and one-half billion dollars, and says that the economic waste through undue fatigue is probably much greater. Fatigue is a factor which should be reckoned with in aU work. It is not due to work, but to overwork. Fatigue should be studied by every employer, and the work of his employees should be so directed as to obtain the highest efficiency. This demands a minimum of fatigue. If the warnings of fatigue are not heeded, it may prove very injurious. Fatigue may limit industrial expansion, and is one of the causes of misery, poverty, and disease. 196 ECONOMICS OF EFFICIENCY It leads to nervousness, craving for excitement, and frequently to crime. Workmen should be taught to work to best advantage and to accomplish as much as possible with minimum fatigue. No one element of industry is of greater peril to workers than fatigue. It destroys intelligence, cuts down output, impairs quality, and invites industrial accidents. QUESTIONS 1. What is the relation between fatigue and efficiency? 2. What are the causes and effects of fatigue ? 3. What are the effects of toxic impurities on (i) the muscles, (2) the brain ? 4. What is the effect of fatigue on memory ? Account for the stupidity of children who work. 5. What precautions should be taken in sleep? How much sleep is necessary for a worker ? 6. What are the chief antidotes to fatigue? 7. Show the relation between intemperance and overfatigue. 8. What is the importance of rest periods ? What decides the length of the periods ? 9. What is the relation between fatigue and accidents ? 10. What is the importance of training in order to resist fatigue ? 11. What is the difference between real and false fatigue? 12. How may fatigue be warded off through conserving the energy of workers ? 13. What are the methods of conserving energy? 14. What are the wastes from fatigue? How may they be eliminated ? 15. What are the limits of work ? How may they be decided ? REFERENCES Books A. R. Adelson, "Mental Fatigue" ; T. Arai, "Mental Fatigue" ; J. Goldmark, "Fatigue and Efficiency"; L. H. Gulick, "Mind and Work," Chs. VIII, IX; L. H. Gulick, "The Efficient Life," Chs. XI-XV; Hough and Sedgwick, "The Human Mechanism, " FATIGUE 197 Chs. V, XVIII; F. S. Lee, "Fatigue," Harvey Lectures, PhHa- delphia, 1906, pp. 169-194; A. Mosso, "Fatigue,"; H. Miinster- berg, "Psychology and Industrial Efficiency," Chs. XVI, XVII; S. Nearing, "Social Adjustment," pp. 190-210; M. Offner, "Mental Fatigue"; T. Oliver, "Dangerous Trades," Ch. VIII; W. B. Pillsbury, "The Essentials of Psychology," Ch. XIV; W. H. R. Rivers, "The Influence of Alcohol and other Drugs on Fatigue," W. D. Scott, "Influencing Human Efficiency in Busi- ness," Ch. IX; Tolman and Guthrie, "Hygiene for the Worker," Ch. IX; C. S. Yoakum, "An Experimental Study of Fatigue." Articles E. S. Bogardus, "The Relation of Fatigue to Industrial Acci- dents," American Journal of Sociology, Vol. 17: Nos. 2, 3, 4; T. L. Bolton, "The Fatigue Problem," Journal of Pedagogy, Vol. 16, pp. 97-123 ; W. Burridge, "An Inquiry into Some Chem- ical Factors of Fatigue," Journal of Physiology, Vol. 41, pp. 285- 307; F. W. Eastman, "An Antitoxin for Fatigue," Harper, Vol. 119, pp. 897-902 ; H. B. Favill, "The Toxin of Fatigue," Survey, Vol. 24, pp. 767-773; M. Foster, "Weariness," The Nineteenth Century, Vol. 34, pp. 337-352; P. W. Goldsburg, "Recreation through the Senses," Atlantic Monthly, Vol. 107, pp. 411-423; W. R. Gowers, "Fatigue," Quarterly Review, Vol. 200, pp. 556- 575; W. R. Gowers, "Brain Fatigue," Living Age, Vol. 244, pp. 102-114; L. H. Gulick, "The Time to Quit Work," World's Work, Vol. 14, pp. 9196-9198; L. H. Gulick, "Effects of Mental Fatigue," World's Work, Vol. 14, pp. 9345-9349; W. Hard, " Fatigue : Why Men Tire and the Effect of Rest," System, Vol. 24, pp. 377-387 ; W. Hard, "What Constitutes a Fair Day's Work," System (English Edition), Vol. 25, pp. 298-306; H. W. Harper, "A Contribution to the Chemistry of Fatigue," Journal of Ameri- can Chemical Society, Vol. 25, pp. 33-47 ; F. S. Lee, "The Nature of Fatigue," Popular Science Monthly, Vol. 76, pp. 182-195; F. S. Lee, "Fatigue," Journal American Medical Association, Vol. 46, pp. 1491-1500; Wm. McDougall, "The Conditions of Fatigue in the Nervous System," Brain, Vol. 32, pp. 256-268; J. M. Moore, "Studies of Fatigue," Yale Psychological Laboratory Studies, Vol. 3, pp. 68-95; W. H. Rivers, "On Mental Fatigue and Recovery," Journal of Mental Science, Vol. 42, pp. 525-529; P. G. Stiles, "The Elements of Fatigue," Science Conspectus, Vol. 3, pp. 58-61 ; T. A. Storey, "Why Workmen Tire," Factory 198 ECONOMICS OF EFFICIENCY Vol. 8, pp. 273 + ; E. K. Strong, "Fatigue, Work, and Inhibition," Psychological Bulletin, Vol. 10, pp. 444-450; L. I. Thomas, "Sitting Down to Work," Factory, Vol. 12, pp. 131 + ; E.L. Thorn- dike, "Mental Fatigue," Psychological Review, Vol. 7; WilHam A. White, "Some Considerations Regarding the Factor of Fatigue with Reference to Industrial Conditions," American Journal of Medical Sciences, Vol. 145, pp. 219-225. CHAPTER X Working Environments During the last few years of the nineteenth century, many employers took initial steps to improve working surroundings and sanitary conditions of their plants. Sanitary and hygienic improvements for**!^!^ were introduced in many plants, as well as provements many movements commenced to improve in the nine- workers mentally, morally, and physically, century. Employers were not guided by the same motives in the improvements as they are to-day. Em- ployees were dissatisfied, and began to murmur against the appalling hygienic and sanitary conditions found in plants and working places. Times were prosperous and employers were making large profits. To calm the dissatisfaction, many improved sanitary conditions and introduced innovations to benefit the working force. Employers believed that this was the cheapest way to cahn the rising discontent. To-day, there is a differ- ent motive for looking after the health of the working force. It is a doUars-and-cents proposition, and because of this it is daily attracting more attention and getting a firmer hold on business men. Dollars and cents, sentiment and not sentiment, is the ruling force in the business world. Sentiment has little place in actual business where self-interest is the guiding motive, yet many would have us believe that other motives play an important role. The average business f^}l^Q^^ man is not in business, with its endless bur- dens and cares, for the love of it, but for the profits made. 199 200 ECONOMICS OF EFFICIENCY The old saying *' business is business" has always ruled supreme in business activities, and will continue to do so as long as men work for profits. Such being the case, it will be only the exceptional business man who is moved by sentiment to introduce changes for the bet- tering of his working force. As soon as business men realize that safeguarding and protecting the health of their workers lower costs and Health an increase profits, it will be the exceptional em- essential ployer who will not take every possible pre- factor in caution to maintain the health of his working e ciency. fQ^ce. One effect of the present efficiency movement is the changing of the motive for paying attention to health from one of sentiment, paternalism, and altruism, to one of dollars and cents. Health in a working force is an absolute essential for eflficiency, and the realization of this accounts for the interest taken at present in this factor of efficiency. Efficiency de- pends chiefly upon the human element in business. Health is its basic structure, and without good health efficiency is not attained. The health of the employee is accordingly of primal importance to the employer. Until recently, employers were not only indifferent, but ignorant of the means of maintaining the health of their workers. This surprising lack of interest in health ^^^ ^^^ health of the working force has been due to the fact that its relation to profits was not known. Employers are interested in profits alone, and as soon as they realize that profits depend on health, they will become interested in it. One can work at his best only when in good health, with brain clear, and with muscles active and responsive. To obtain the best productive results from the human energy ex- pended is the aim of efficiency. The human element, or workers, should be of the best quaHty, and this means WORKING ENVIRONMENTS 201 good physical health. Health and efficiency are closely related, and the latter cannot be reached without the former. Modern industry demands of workers health and good physique, and no kind of work can be performed effi- ciently without good health. Intellectual keenness and foresight, essential factors in ju.hedth employees, are impaired without it. Sick- ness and ill-health are the greatest foes to profits, effi- ciency, and success. The employer cannot afford to tol- erate any conditions which endanger or impair the health, or lower the vitality of his working force. Impaired vigor is a loss to everyone. It affects employees by cutting wages, ofttimes causing great misery and suffering, and at the same time is costly to the employer by increasing costs. No one can do efficient work of the proper quality and quantity unless he is fit in body for his task. In the struggle for industrial supremacy which is being waged by the great industrial nations of the world, success depends largely upon the effi- congerva- ciency of the human element in industry. The tion of nation which first masters the secret of ob- health; its taining efficiency from its working force will "^p°^^^^®- be the one which will forge ahead and conquer. The conservation of health, strength, and vigor, the main- taining of a high vitahty in the working force, and the prevention of disease are important economic factors in this industrial struggle, and are more important than the conservation of our forests and natural resources. The greatest wastes in our industrial system are those due to illness, and to workers trying to work with im- paired health. The conservation of health is of the greatest importance to the employer, to the employee, and to the nation at large, and demands the closest attention of federal, state, and municipal powers, the 202 ECONOMICS OF EFFICIENCY care of father, mother, and teacher, and the earnest attention of the employer of men and women. The effect of environment on workers is great, and there is an intimate relation between the conditions Environ- which surround workers and their efficiency, mentand Expensive machinery is carefully protected efficiency. from dust, and kept well lubricated and in good repair, but until recently no thought was given to the more important factor in efficiency, the human factor, which tends and operates the machines. Just as machinery is affected by environment so is the worker, but a great deal more so, as he is sensitive to slight changes in the conditions which surround him. Suc- cess in the average business enterprise depends in a large measure upon the workers' physical and mental well-being. The importance of the best working con- ditions and surroundings is more generally recognized each succeeding year. Efficiency depends upon the comfort of workers at work, as well as upon their health. The aim, therefore, in every enterprise is to get working conditions most conducive to the comfort, and to the health of the workers. Working conditions and sur- roundings should be made hygienic, sanitary, and healthful in every possible way. Light, ventilation, temperature, humidity, cleanHness, dust, air, odors, gases, and dampness are some of the factors which should be given careful study in every enterprise. The neglect of any one has a direct bearing upon effi- ciency through causing discomfort and impairing the health and the vitahty of the working force. The hghting facilities in an enterprise have a direct Effects of and important bearing upon the health and good the efficiency of the employees. According ^ *^°^' to experts, the normal capacity of workers may vary 20 per cent under proper and improper light- WORKING ENVIRONMENTS 203 ing conditions. Good lighting affects the efficiency of workers in various ways, as : causes greater accuracy in work, saves eyestrain, permits greater rapidity of work, increases output, reduces the number of accidents, makes more cheerful surroundings, increases the com- fort of workers, is conducive to cleanliness by exposing dirt, decreases costs through less spoiled work and fewer mistakes in work, improves the quahty of work, and lastly, discourages slovenly work and soldiering. Efficiency in illumination is measured in obtaining the object sought, namely sight. It depends not upon the number of lights supplied but upon the ability of the eyes to perform their duties with- mu^n^tion! out the least effort or strain. There is no standard as to light and illumination in plants, offices, or stores. Enterprises vary with the character of work performed, and with the amount of light required. The test is that there should be sufficient Hght in every part of a plant, so that the work required to be done may be performed without any eyestrain, or delay through lack of proper light. The cheapest and the best light is natural light diffused uniformly through sufficient windows for proper lighting. The eyes should not be strained Natural vs. even on a cloudy day. Experiments prove artificial that after three hours of work in ordinary day- ^s^*"^^. Hght, there is little change in the working efficiency of the eye, but after the same period of work in artificial Hght the keenness of the eye has fallen off very much, and there is a distinct loss in muscular adjustment for accurate vision. Observe an object steadily for half an hour in natural Hght and then in artificial ; the differ- ence in strain upon the eye will be noticeable. Artificial Hght of any kind differs materially from dayHght in that it does not furnish a pure white light, the customary light 204 ECONOMICS OF EFFICIENCY rays being red, yellow, or violet. There is a difference of opinion as to the color best suited to our eyes, but it cannot be disputed that vision is the most perfect, and there is less strain to the eyes under the influence of white Hght. It is only recently that business men have learned the importance and the value of an abundant supply of How to ob- natural Ught and have taken special care to tain supply have as large an area of glass as possible, of dayUght. -^qq^^ g^s ^^qW ^g walls are used for windows. The saw-tooth roof with the glass portion towards the north allows a satisfactory diffusion of Hght. To get the greatest abundance of dayHght, the window-glass should be either pure white, ribbed, or prismatic, and scrupulously clean. The walls and the ceiling of a building have an important bearing upon the diffusion of light, and should be painted creamish white, white, or greenish gray. Some use whitewash, but its lack of durability, and its falling off in flakes makes it a continuous nuisance. Frequently a wadl painted white gives a glare which is injurious to the eye. A cream color never glares, and gives the best satisfaction as a suitable color for walls and ceiKng. Walls should be kept clean, because if dirty and dingy, the proper diffu- sion is not obtained, and the lack of sufflcient light may be the cause of eyestrain. The eyes of a worker in many kinds of work must remain constantly fixed upon the work which he is Benefit doing, or upon near-by objects in the room, from This constant watching is fatiguing and strain- windows, jj^g upon the eyes. A momentary glance at something in the distance relieves the strain, relaxes the tension, and allows the eyes to work on refreshed. Glancing out of a window in such cases has a very bene- ficial influence, and works toward efi&ciency. Formerly, WORKING ENVIRONMENTS 205 employers objected to windows because they believed that employees wasted time by glancing or looking out, and windows, they declared, interfered with work. Little did they realize that windows, in place of de- creasing output, increased it, by furnishing a momentary rest and relaxation to busy eyes, and assisted in increasing the efficiency of workers. During many months of the year, sufficient natural light cannot be obtained for working through the en- tire working day, and artificial hghting is absolutely necessary. Every afternoon, fre- yghting quently mornings, and occasionally during stormy days in winter, artificial Hghting must be used, while many employers have night work, and then it is the only fight possible. An artificial lighting system is necessary in every enterprise. Arc, incandescent, gas, and kerosene lamps were practically the only arti- ficial fights available ten years ago. During the past few years many improvements have been made in electric and gas fighting. Of the many vari- eties of electric fights on the market, the tung- hghting. sten is the most favored and the most satis- factory. Due to the absence of danger from fire, to no gases being thrown off, and to causing no material in- crease in temperature, the electric lamp has decided advantages over the gas. If the electric lamp is not avafiable or possible, gas used with a over^gas^^^ Welsbach burner gives the most satisfactory light. With the increase during recent years in the use of electricity, it is hard to find a town of any size in the middle west or the east, or even in the major part of the far west which has not the use of electricity. If a building is not wired, and electricity is available, the greater efficiency resulting from electric fighting will in a short time pay the cost of installation of an 2o6 ECONOMICS OF EFFICIENCY electric lighting system. Electric lighting gives the best satisfaction of all lighting, and should be used wherever possible. The requirements of a satisfactory artificial lighting system are as follows : There should be sufficient light to allow every employee to do his work with- H^hting^ out straining of the eyes, and without hesita- require-' tion from not being able to see distinctly the mentsof part of the task being performed. There system. should be uniform illumination. The entire working surface should be Kght, and Hghting should not be restricted to certain sections. There should be reliability. The light should always be avail- able when needed, and should be constant and not flickering, because flickering light is very straining to the eye. There should be proper quality. This has to do with intensity, — that is, proper intensity to do work, proper diffusion through the lighted space, and absence of glare. A room may be lighted by overhead lamps, by indi- vidual lamps, or both. Formerly, the individual lamp, ^ , , with a small number of overhead, was the Overhead , i i <• i* i • i andindi- usual method of lightmg, and as a result, a viduai large part of the floor space was in compara- amps. ^j^^ darkness. This method is poor and defective. With the coming of the tungsten, the mer- cury vapor, and other electric lights, the overhead lamp has come into favor, and the individual is gradually disappearing from use. The overhead is the most effi- cient, and the only system of lighting which should be in use in any plant, store, or office. The eye is the most important organ of the human Conserva- body, and for its conservation httle is being tion of the done. The conservation of the eye means the ®^®' prevention of all causes, and the amehoration of aU conditions which tend to the destruction, or the WORKING ENVIRONMENTS 207 impairment of eyesight. The improper use of eyes causes injury to the eyes themselves and may greatly decrease the efficiency of workers through producing illness. Loss of sight reduces a worker's efficiency to a minimum, while the least impairment of sight injures it somewhat. The lack of good sight is a more or less serious handicap to every worker. The eye is an organ whose sensitive- ness exposes it to numerous risks, and every worker daily runs great risks and is often the victim of injuries resulting in the impairing of sight. These risks are often preventable. Eyestrain causes brain fatigue „ . and has a direct bearing upon efficiency. Poor light produces a bodily and mental discomfort which seriously affects workers and their work. Headache is a common ailment from eyestrain. There is a great temptation to abuse the human eye. Bad methods of lighting are so common that good lighting is the excep- tion. Industrial conditions to-day demand the perform- ance of a lot of work by artificial light, and it is time that employers should realize that good Kghting is a dollars-and-cents proposition. The loss in efficiency of all classes of workers through bad lighting entails losses of milHons of dollars annually. Every place where work is performed with the aid of artificial light should be carefully studied to see that the following injurious conditions do not exist ; injurious excessive fight, insufficient fight, glare, strong lighting contrasts, flickering, heat or odors from light, conditions, and shadows. A too brilfiant illumination is just as injurious as lack of sufl&cient fight. Frequently, inten- sity of fight is caused by the fighting fixtures being so arranged that the worker must look Jg^t^^^^^ steadily, or at intervals, at the source of light. Fixtures should never be arranged so that the light is on a level with the eye of the worker, and to prevent 2o8 ECONOMICS OF EFFICIENCY occasional glancing at a glaring light, reflectors and shields should be provided for all lights. In- nsu cient g^Q^^^jgj^^- ]ig]it to see clearly the performing of work, every one knows and admits causes strain upon the eyes. The amount of light needed de- pends upon the character of the work, and should be sufficient to allow the worker to see clearly every opera- tion necessary to be performed without strain on the eyes. This is a problem for careful investigation, and too great emphasis cannot be placed upon the bearing of proper lighting upon output, quahty of work, efficiency and profits. Glare is very fatiguing and straining to the eyes. It may come from the lights themselves, from walls, ceilings, or bright surfaces. To prevent lamps from glaring, reflectors and globes are used. A reflector performs an additional service in diffusing light most effectively for work. To get the best results, reflectors and globes should be kept and globes, clean. Where individual lamps have not been discarded, extreme care should be exer- cised, or the eyes of workers will suffer greatly from strain. The lamps should never be on a level with the eye, and should be such that the light falls over the shoulder. Frequently, a slight change in arrangement and the addition of globes and reflectors will cause much saving How to ^f strain to the eyes of workers. A careful prevent examination should be made in every case, glare. ^^^^ •£ carefully arranged and protected lamps are not used, a few dollars may greatly increase the effi- ciency of workers through changing fixtures and the ad- dition of reflectors and globes. Walls and ceilings should be such as to prevent glare. A cream kalsomine gives the best satisfaction for diffusing light, and at the same time is not glaring to the eye. By paying attention to WORKING ENVIRONMENTS 209 fixtures, reflectors, and globes, an ample supply of light may be obtained without being in any way glaring to the eyes of workers. Flickering and strong contrasts, or sudden changes in the intensity of Hght, are very injurious to the eye. A uniform steady light is what is desired, and . is what every employer should insist upon ^ ^"^^* having. There are so many excellent lamps on the mar- ket that there is no excuse for a flickering one. Strong contrasts in electric lighting are caused by some fault in the circuit, and the cause contrasts, should be ascertained as soon as possible, and remedied before injury is done to the eyes of workers. Serious injuries to the health of employees frequently arise from poisonous odors given off by gas lamps. In one factory sickness was reduced 50 per cent by changing from gas to electric hght- ^f gfg^^*^ ing. If a working place is Hghted by gas, a frequent inspection should be made to see if workers in any way suffer from the products given off by the com- bustion of the gas. If gas jets are too near workers, discomfort, headaches, and sickness frequently arise from the effects of the products given off and from the heat of burning gas. If gas is necessary, extreme care should be taken to make certain that neither the health nor the eyes of workers suffer therefrom. The eye is contracted more during the day than at night, which is due to the greater intensity of daylight over artificial hght. It is not so sensitive to changes in illuminating intensity during the Su^nation. day as at night, when it is more relaxed on account of the lower intensities of artificial hght. An intensity suitable at night may not be adequate for day illumination. If artificial Hght is used during the day, special care should be taken to secure proper intensity 2IO ECONOMICS OF EFFICIENCY so that the worker is able to perform his task without strain to his eyes. Poor lighting and gloomy surroundings have depress- ing bodily and mental effects which seriously affect Good light- workers in their work. Light and cheerful ing a neces- surroundings have a direct effect upon workers sity. by making them more comfortable, contented, and satisfied. The efficiency of the worker in every form of business activity is greatly increased by the provision of good Hght. Too great emphasis cannot be placed upon the value of good hghting as a factor in lowering costs of production, and it is only recently that the importance of this factor is being recognized by employers. The discomfort of a stuffy room is apparent when it is entered. It affects health and produces physical and mental conditions which decrease efh- Efifects^of ciency. No one can work as well in a stuffy, ill-smelling, uncomfortable room as he can where the air is fresh and pure, and has the proper amount of moisture and heat. The breathing of foul air brings on a sense of drowsiness and a lack of ambition, which are conditions which affect thought, interest, attention, and concentration. Foul air fosters indolence, inac- curacy, carelessness, and poor work. Workers are practically forced into these faults through physical conditions under which they work, and yet they are blamed and criticized for them. No matter what the nature of the work, mental, physical, or merely mechan- ical, if the air a worker breathes and is surrounded by is not suited to his body, an improvement in that air would be an important factor in increasing his efficiency. The value of pure fresh air of proper humidity pure^ak ^^^ temperature cannot be overestimated, and no effort or expense should be spared to supply it. Pure air is an absolute necessity for efh- WORKING ENVIRONMENTS 211 ciency, and the expense entailed in procuring it is re- turned several times during the year in more and in better work. It is strange that shrewd business men who are always on the alert for improvements and innovations for increasing profits have overlooked air, a most important factor in reducing costs and increasing efficiency. The conditioning of air so that a worker may work under the most favorable conditions demands close attention of every employer. The chief ^j. condi- f actors to be considered are temperature, tioning; humidity, air movement, dust, and fumes, chief factors The chief thing which makes air in a working place harmful, aside from the special problems of dust and fumes, is overheating, and this is particularly so with the presence of excessive moisture. A temperature over seventy degrees Fahrenheit affects the heat-regu- lating mechanism of the body by keeping the blood in the skin and away from the vital organs, which impairs the efficiency of the nervous and digestive systems, and of the body as a whole. The general effect Effects of' of heat and moisture is familiar to every one a high who has tried to do either brain or muscular tempera- work in a heated boiler room, as compared with the brisk temperature of an October day. It can- not be denied that workers in any place where the tem- perature is over seventy degrees Fahrenheit have their health impaired by producing a low vitality with a less disease-resisting force, and become easy victims to tuber- culosis and other contagious diseases. The first important problem of air-conditioning is the prevention of overheating, and the practical method for attaining this end is the changing J^l^^^^^^^ of the air. Ventilation or air change is ac- complished either by natural or by artificial means. In a 212 ECONOMICS OF EFFICIENCY room where only a few people work, the air may be transferred through windows, cracks, sub- *^ ' stances of walls, ceiHngs, and floors with sufiS-cient rapidity without making special provisions for the purpose. Where many are working, such is impossible, and some artificial system should *^ ^^ ' be used. The average individual at work produces about as much heat per hour as is given off by the burning of two candles. In many places this is increased by the running of machinery, the lighting sys- tem, and other sources of heat. The heated air should be removed, and provision should be made by a ventilat- ing system to remove and to replace it by cool air. If air is introduced from the outside, it should be made in temperature a httle below that which is normally felt to be comfortable. In summer time it may be neces- sary to cool the air, while in winter the air should be warmed. The latest improvement is to cleanse the air from a room, and to force it back again. If such a sys- tem is used, the hot air expelled may have to be cooled after it is cleansed before it is returned to the room. In every working place, incoming air should Tempera- ^^^^ ^^ below sixty degrees Fahrenheit, be- cause if so, it would interfere with the effi- ciency of the workers. The chief problem is the expulsion of the heated air, and the introduction of cool pure air to take its place. Methods of ventilation are many and should be suited to meet each particular case. It is generally accepted that hot air should be taken out near the top of a room, and cool air admitted near the bottom. The problem of space for occupants is an important one in ventilation. Experience has proven k.wanc^' ^^^^ ^^^ minimum space per person should not be less than two hundred and fifty cubic feet where artificial lighting is not used, and four hun- WORKING ENVIRONMENTS 213 dred where it is. The two minima should be fixed and provided for by statutory law. When the air space is less than the above minimum, it is practically impos- sible to properly condition the air, but above, it may be done in some cases by natural, and in others only by artificial means. Having adequate cubic space does not by any means insure good air, because it simply pre- vents overcrowding to the point where proper air condi- tions are impossible. Where a room has the proper air space, the question of comfort on the part of occu- pants depends upon the important problem of air change. English experts have discovered that without proper provision for air change, the condition of air was no better in rooms with over &ve thousand cubic feet of air space per person than in those with an air space of over three hundred. Proper air conditions in a room should, except in the case of temperature, closely imitate the outside atmos- phere. The air out of doors is never still, and is constantly in motion. The move- Nation ment brings slight changes of temperature which are invigorating and stimulating. A basic prin- ciple of ventilation is not merely that a certain amount of pure air should be brought into a room and foul air expelled, but that the air should be exchanged in such a fashion as to produce a steady move- ment of air in every part of the room where human beings are at work. Proper circulation or movement is an absolute essential in air conditioning. Experts declare that the air in a room should be made to move at the rate of from two to five feet per minute. A majority of ventilating engineers declare that jj^^^jg j^^ the IlKnois law as to air requirements is satisfactory. The law requires that fifteen to eighteen hundred cubic feet of air per hour according to specified 214 ECONOMICS OF EFFICIENCY conditions, for each person present and employed, should be supplied, unless the cubic space in the room should be over two thousand cubic feet per occupant, and outside window and door space be equal to one eighth of the floor space. This gives a reasonable rate of air change, and is satisfactory for efhcient work. Conditioning of air has to do with quahty as well as quantity. Quahty deals with temperature, humidity, o aUtv dust, fumes, and gases. Temperature and humidity are measured by an instrument called a shng-psychrometer, which consists of a pair of thermometers, one of the ordinary type, and the other having the bulb covered with a wet diameter, cloth. Moisture evaporates from the wet bulb at a rate which depends upon the amount of moisture in the air, this evaporation cools the wet bulb, and lowers the temperature, which is recorded. From the temperature of the dry bulb thermometer, and the difference in the readings between the dry and the wet bulb, the moisture in the air is determined. A high wet bulb reading denotes high temperature and a high percentage of moisture, a condition most harmful to the human body. Haldane has Effects of shown, as far as the psychological effect is humidity. concerned, that a very high temperature with low humidity is about the same as a very low temperature with high humidity. When the temperature rises to eighty degrees Fahrenheit with moderate humidity, and about seventy degrees Fahren- heit with high humidity, depression, headache, and dizzi- ness manifest themselves. At seventy degrees Fahren- heit, with saturated air, Haldane found that the temper- ature of the body actually began to rise, that is, fever set in. A moderately high temperature with a low humidity produces a stimulating effect, causing irrlta- biHty, nervousness, and discomfort. WORKING ENVIRONMENTS 215 Air always contains a certain amount of water in the form of vapor, which varies from thirty degrees to complete saturation, and gives from one to twelve grains of water in a cubic foot of air "^'atenn according to temperature. A well-known physician states that the daily amount of water given off by the skin of a single person is two and a half pounds, and about ten ounces by the lungs. When the ^ , . , -^ , ° r • , Causes. air possesses a high percentage of moisture, it lessens evaporation, as it has Httle drying power, and the water from the skin is with difficulty evaporated. One of the chief methods of cooling the body is evapora- tion of the perspiration. When the air is hot with high humidity, it tends to increase the effects of heat, and discomfort, headache, and even fever follow. This condition may become so intensified that the Effects of temperature of the body greatly exceeds the high and normal, and heat exhaustion follows. Exces- low hu- sive dryness of the air is also harmful. It in- ^^ ^ ^' creases evaporation, the skin becomes dry, and the mucous membranes of mouth, eyes, and respiratory passages are irritated. Discomfort, irritation, and nervousness follow. The best working temperature is between sixty-five and seventy degrees Fahrenheit, and with an average humidity of from 60 to 70 per cent. It matters not what kind of work is being performed, every effort should be made to avoid extremes of heat, cold, and moisture. A comfortable temperature, a moderate humidity, and a proper circulation of air are necessary factors for efficiency. A slight variation in the tem- Effects of perature of in-coming air from that of the air high tem- in the room stimulates the energies of workers, p®^^*"^®- Working in a high temperature, workers soon become listless, careless, and slovenly in their work, all of which 2i6 ECONOMICS OF EFFICIENCY have an important bearing upon quality of work, as well as output. It also causes drowsiness, discomfort, and headache, leading to devitalized bodies, which become easy victims to all kinds of diseases. Window and door ventilation should be carefully controlled. If rooms are hot, and workers perspiring, it is a great danger to their health to open fronf^^^ windows and allow draughts of cold air draughts blow through the rooms. During the fall, and heated winter, and sometimes spring, workers are forced to run great risks of ill-health and sickness. They work all day in a high temperature, and going out into the cold air to go to their homes at night, wet from perspiration, and usually with low vitaUty, they become easy preys to many diseases. Proper air not only assures better health, but increases efficiency. It is a dollars-and-cents proposition, and every employer should pay particular attention and spare no expense in obtaining proper temperature, humidity, and circulation of air. The increased efficiency of the working force repays many times the extra outlay. Indoor air is never as pure as that on the outside, because it is always more or less polluted by the products Impurities ^f combustion, by the decomposition of sub- of indoor stances, and by the wear and tear of tools, ^- machinery, buildings, and materials. The presence of individuals always tends to vitiate the air with germs and organic matter from their skin, mouths, lungs, and soiled clothing. These impurities may be classified under three heads, dust, fumes, and gases. Dust is an enemy of efficiency and affects individuals in various ways. Dust may be divided into ^^*g' three classes, insoluble inorganic, soluble in- organic, and organic. The first class includes small particles of metals, minerals, stone, etc. The WORKING ENVIRONMENTS 217 inhalation of these dusts causes more or less harm to respiratory organs. The inhaling of iron dust, it has been proven, may diminish in time the respira- tory efficiency of the lungs through a loss of inorganic, elasticity. It is certain that the inhalation of these inorganic dusts often carries germs and harmful bacteria to places in the lungs favorable to inoculation. Many die from infectious pulmonary diseases, not know- ing that the breathing of dusty air has been the cause of the infection. The exposure of workers to dust is dangerous, as it sooner or later impairs their health and efficiency. Soluble inorganic dusts, as the name implies, com- prise particles of those substances which are soluble, and if taken into the body will in the course of time be absorbed, as arsenic, mercury, inorganic, etc. Many are poisonous, and their absorp- tion by the body causes serious illness and, if in sufficient quantities, death. The third class comprises fine par- ticles arising from flour, grain, cotton, wool, -. rags, hides, etc. Many diseases are traceable ^^ ^ ' to one or the other of these organic dusts. Many dan- gers arise from dusts, whether of the one or the other of the three classes, as, firstly, dusts cause irritation of the respiratory passages, eyes, nose, and skin of workers ; secondly, if inhaled and lodged in (jus^ts!^ ^ the lungs, they may reduce the resistance of these organs to harmful bacteria, and cause workers to become easy preys to tuberculosis and other diseases; thirdly, dusts may be germ-laden, and carry germs not only to the lungs, but to other parts of the body ; fourthly, many are highly inflammable, and in proper propor- tions and under suitable conditions, are subject to spon- taneous combustion. Many conditions and circumstances have a more or 2i8 ECONOMICS OF EFFICIENCY less serious influence upon the health of workers, but the foremost and most certain of serious ^ckneS^*^ results is dust, whether organic or inorganic. Experts have discovered that sickness and mortaHty of workers are high or low in almost exact proportion as the air is filled with or free from dusts. We also know that the proportion of deaths from tuber- culosis is very high in trades with continuous or con- siderable exposure to metalHc and mineral dusts, and the same is true of mortahty from respiratory diseases in general. Employers should reaHze that it is a dollars- and-cents proposition to keep their premises as free as possible from dust. Every dollar spent in so doing re- pays manifold in giving better health and increased efficiency on the part of the working force. From the point of view of the health of its citizens, it is the right and duty of every state to pass laws to prevent workers from working in dust, and in a more or less germ-laden atmosphere. The better health assured, the loss of time on account of sickness saved, and the general increase in efficiency should be sufficient inducements for dust prevention. The problem of dust prevention is more or less diffi- cult. In operations accompanied by the creation of Means of dust, every effort should be made through dust pre- careful arrangement and mechanical devices to vention. reduce the dust as much as possible. The use of hoods for dust-making machines is absolutely neces- sary and inexpensive, and a proper ventilation system greatly assists in dust removal. Where it is impossible by hoods or devices to remove dust, and it is in sufficient quantities to be injurious to workers, respirators and goggles should be furnished by employers. If dust is produced which is highly inflammable, and a sufficient quantity is Hable to lead to spontaneous combustion, WORKING ENVIRONMENTS 219 care should be taken to introduce into the room, at certain intervals, a certain amount of moisture, sufficient to remove the danger. Extreme care should be exercised in removing dust from the floors and walls. The old-fashioned broom and the dry duster are dust movers, and not dust removers. They scatter the germ- move^dusT. laden dust throughout a room. Dry sweep- ing and dusting should never be allowed in any room where people are working, and it is advisable not to use either in any case. Dustless brooms, dustless brushes, wet sawdust, sweeping compounds, hygienic floor brushes, vacuum cleaners, and numerous preparations for dust removal are available and cheap, and should in every place replace the corn broom, cloth, feather duster, and mop and pail. In many places, offensive fumes and gases are produced in the making of the product manufactured. Every effort should be made through careful arrange- ment, and mechanical devices to reduce the ^^^^^^^^ free discharge of these gases to a minimum. Frequently discharge of gas may be prevented by proper covers for vats and vessels, and there are in the market many ventilating, condensing, and burning devices. Where it is impossible to prevent the presence of gas or fumes, respirators, goggles, and sometimes gloves and skin protectors should be used. A proper ventilating system is a great help in lowering ^^^g the amount of fumes and gases in any place where these are produced. The reducing of these in a plant to a minimum should be compelled by statutory legislation. Many states have made the attempt, while a few have fairly satisfactory laws, but there is still the need of much improvement, and this can be more easily accomplished with the cooperation of employers 220 ECONOMICS OF EFFICIENCY and employees. It is an important public health problem, let alone its effect upon efficiency, and either should be sufficient inducement to insure every precau- tion to protect employees from poisonous and injurious fumes and gases. Poisonous fumes and gases workers!^ are closely related to inefficiency, and this fact, if no other, should make the progressive employer reahze that it is a business proposition to guard the health of employees from them, and thus increase their efficiency. Impure air, dust, fumes, and gases are arch-enemies of efficiency, and efficiency cannot be reached in any plant where their presence is found. Every employer should be made to reahze that it is a good investment to study carefully his own plant Returns for with special reference to the health and the proper en- safety of the employees, and to ascertain and vironments. ^^ provide Conditions under which his par- ticular plant may be economically and profitably con- ducted. It is a matter of common experience that an intimate relation exists between the conditions which surround a worker and his efficiency. The proper mental attitude of a worker toward his work is best generated and maintained where best working conditions are provided. Bright and cheery environments, a proper supply of pure air, no dust or fumes, proper temperature and humidity, are great factors in making workers cheer- ful, happy, and contented. It is poor business to allow conditions to exist that cause ill-health, as costs are kept high through diminishing both the quaHty and the quantity of goods produced. It cannot be denied that a happy and contented worker turns out better and more work than the unhappy and discontented one. Em- ployers should be made to reahze the real value of workers' physical and mental well-being. The contentment of the employee with his surround- WORKING ENVIRONMENTS 221 ings, and his freedom from mental depression or ill- health are factors directly affecting his out- put. All physical inconveniences which waste proper en- human strength and effort, as foul air, poor vironments light, dust, and unsanitary conditions, are ?^® °^*®° *° marks of inefficiency. The lack of proper hygienic conditions in the large majority of plants is due to ignorance rather than to neglect. There is need of further development of scientific knowledge of the requirements of the human system. The factors which protect health and give safety to industry are just beginning to be understood in this country. Manufac- turers and employers of labor cannot be blamed for not wanting to install expensive safety devices, ventilating and dust-removing systems, and other methods for protecting and promoting health and comfort unless they can be shown that such an expenditure is a profit- able investment. With reahzation of the fact that the increased efficiency obtained will repay several times the expenditure, and an understanding of the demands of the human body for health, the next few years will see a rapid improvement in air conditions. There is no reason why most plants cannot be kept at a comfortable temperature, with air containing the proper percentage of moisture, and at the same time free from dust and impurities. QUESTIONS 1. Why is health an essential factor in efficiency? 2. What is the importance of conservation of health? Men- tion several ways of conserving health. 3. What precautions should be taken in illumination? Give an efficient illuminating system for a plant. 4. What are the advantages of electric lighting? Give the requirements of a good electric lighting system. 5. How may the eye be conserved? What are the effects of eyestrain ? 222 ECONOMICS OF EFFICIENCY 6. What is air conditioning? Give chief factors. 7. What is ventilation? Outline a good ventilating system. 8. What precautions should be taken with temperature and with humidity ? 9. Give proper temperature and humidity for efficient work. 10. What are the impurities of indoor air ? How may they be eliminated ? 11. What are the dangers of fumes and gases? What pre- cautions should be taken to prevent them? 12. Why did employers so long neglect proper working environ- ment? 13. What is the proper space allowance for work? Give requirements of the Illinois law. 14. What is the relation between efficiency and pure air? 15. Mention various injurious lighting conditions. How may they be remedied? REFERENCES Books C. Baskerville, "Municipal Chemistry," Chs. II, XXII, XXIII ; H. K. Benson, "Industrial Chemistry," Ch. II; D. H. Bergey, "The Principles of Hygiene," Chs. I-IV; R. C. Carpenter, "Heating and Ventilating Buildings," Chs. II, XIII, XIV; C. E. Clewell, "Factory Lighting"; J. C. Duncan, "The Principles of Industrial Management," Ch. XI; Hough and Sedgwick, "The Human Mechanism," Ch. XVI; G. M. Kober, "Industrial and Personal Hygiene," Part I; G. M. Price, "Handbook on Sanita- tion," Chs. II- VI ; E. H. Richards, " Conservation by Sanitation," Chs. I-IV; Richards and Woodman, "Air, Water and Food," Chs. I- VIII ; Technology and Industrial Efficiency, pp. 442-449 ; W. H. Tolman, "Social Engineering," Ch. Ill; Tolman and KendaU, "Safety," Part III. Articles M. C. Albright, "Doing Away with Dark Corners," Factory, Vol. 10, pp. 348+ ; W.J. Bitterlick, "A Successful Factory Drinking Water System," Industrial Engineering, Vol. 13, pp. 388-389; I. Clark, "Norton's Company's Medical Department," Human Engineering, Vol. I, pp. 230-240; C. E. Clewell, "Mercury Vapor Lamps as Related to Shop Lighting," American Machinist, Vol. 40, WORKING ENVIRONMENTS 223 pp. 711-716; T. Darlington, "Sanitation," Proceedings of the First Cooperative Safety Congress, pp. 307-313; E. L. Elliott, "Notes on Industrial Lighting," Industrial Engineering, Vol. 13, pp. 102-105 ; H. L. Estep, "How to Light the Workroom," Sys- tem, Vol. 20, pp. 614-623; I. Fisher, "Industrial Hygiene as a Factor in Human Efi&ciency," Annals of the American Academy of Political and Social Science, 191 1 ; O. P. Geier, " Shop Sanitation and Workmen's Efficiency," Human Engineering, Vol. I, pp. 249- 253 ; LB. Hiltz, " The Conservation of Vision," Human Engineer- ing, Vol. I, pp. 114-116; S. G. Koon, "When Fresh Air Buys More Work," System, Vol. 23, pp. 70-77 ; S. G. Koon, "Oxygen Enough for All," System, Vol. 23, pp. 411-417 ; H. F. Porter, "Moderniz- ing Methods of Sanitation," Factory, Vol. 10, pp. 332-334 ; H. F. Porter, "Getting Rid of Factory Wastes," Factory, Vol. 11, pp. 120 -h ; " Principles of Industrial Lighting," Industrial Engineering, Vol. XI, pp. 171-177, 257-266, 349-356, 454-460; "Sanitation, a Method of Improving Production," Industrial Engineering, Vol. 14, pp. 1-7 ; J. Sebroff, "Drinking Water in Industrial Plants," Indus- trial Engineering, Vol. XII, pp. 21-23, 102-105, 191-192, Vol. XIII, pp. 338-341 ; W. Talbot, "The Hygiene Window," Human Engi- neering, Vol. I, pp. 16-17 ; W. Talbot, "Shop Hygiene as a Factor in Efhciency," Human Engineering, Vol. I, pp. 215-226 ; "Uncon- sidered Aspects of Ventilation : Humidity the Principal Factor," Scientific American Supplement, Vol. 73, p. 247 ; C. E. A. Wins- low, "Ventilation, Air Space, Humidity and Temperature," American Labor Legislation Review, Vol. I, pp. 11 7-1 20. CHAPTER XI Welfare Work Two necessary factors demanded in every employee for efficiency are skill and health. An employee, to be efficient, has not only to know how to do his o/heaUh^ work in the best way, but must enjoy good health. If a worker, skilled or unskilled, is worried, discontented, or in poor physical or mental con- dition, his efficiency suffers. From the time of the introduction of machines, employers knew that to get best results, care and attention as well as skill in opera- tion were absolutely necessary, yet it was not until a comparatively few years ago, that it was realized that the same care and attention were necessary with em- ployees in order to obtain their greatest efficiency. Great care is taken of athletes because their success depends upon their health and abihty to endure strain. The same is true of working men. Health should be safe- guarded with the greatest care because it is a fundamental prerequisite for bodily and mental achievement, and the attainment of success and happiness. According to a statement of Professor Irving Fisher, about three millions of our people are sick at all times, and it is claimed that one-half of this can be ricfaiesf prevented. The number of workers who are slightly ill, ill enough to reduce efficiency but not enough to give up work is much larger, and the pres- 224 WELFARE WORK 225 ence of such in factories, offices, and stores is a real drain upon industry. It matters not how true and accurate your machine is, a half-sick operative i*duste?. °°^ cannot get the best results. Suffering from headache, cold, or indigestion does not allow men to do as efficient work as if they were well. A plant with a healthy working force has a decided advantage in the struggle for markets. In the preceding chapter, it was explained how health is improved by proper lighting, temperature, circulation of air, humidity, and freedom from dust and gases, but it should not be forgotten that health is assured by proper and prompt medical service. Prevention is better than cure, and medical service has a definite place in keeping men at a high point of effi- ciency. The average plant has a well-equipped repair shop to render proper attention in looking after machines and keeping them in the best repair, but only a small percentage maintain an organized department for keep- ing their men in good health. Sickness may not be severe enough to keep a worker from his work, but nevertheless it has a direct bear- ing upon his efficiency. It may cause 2- worker to remain away from his work, and service, the loss in this case is greater. Workmen should be instructed by a doctor or a nurse as to how to prevent sickness, and should receive prompt and effec- tive treatment in case of sickness. A medical Medical department should have its place in every depart- business enterprise. It has five important °^®"*^- functions to perform: the physical examination of every employee ; the maintenance of health in a work- iner force ; the prescribins: and sometimes the „ ^. ,.^ ' r A' ' ' ^^ r • Functions. dispensmg of medicmes ; the care of acci- dents; lastly, attention to Hving standards at home. Every medical department in a large plant should Q 226 ECONOMICS OF EFFICIENCY have at its head a doctor who is either a salaried official Doctor and ^nd devotes his entire time to the employees, nurse in or who makes daily visits and is subject to plant. ^^Y\ at any time. He should be assisted by a nurse, but where men are employed, a male nurse is preferable. A plant employing only a few men will not find it profitable to have a nurse, but two or three in a vicinity may share the expense of one to devote her entire time among the plants, and in visiting the homes and the famiHes of the workers. A small plant need not have a physician visit the place, because this may be too expensive, but it should have some arrangement with one who will examine workers at his office, and pre- scribe if necessary. A large plant should have a well- equipped emergency hospital, while a smaller one will find it profitable to have a small room fitted out for emergency hospitd!^*^^ cases. "First aid to the injured" jars or chests should be found in the emergency room, and if the plant is large, several should be placed in convenient places, so that one may be reached from any part of the plant without trouble, and in a very short time. Provision of some kind for emergency cases, and for medical care and inspection of employees, is absolutely necessary even if only two or three men are employed. Every employee should undergo a thorough physical examination, and the results should be tabulated on cards Physical for the purpose and filed. All new employees examina- should Undergo a similar examination, so that ^°^' there will be a health-card index for every one in a working force. A careful medical examination of all applicants will at the outset eliminate all suffering from any infectious or contagious disease, to which it is very undesirable to expose workers, and will also prevent WELFARE WORK 227 the hiring of those physically unfit for work. No employer should hire a worker without first having a thorough physical examination made by a medical doctor. If this were done, it would be a ^ safeguard to the healthy workers, and would often prevent loss from having workers with impaired health trying to do work which should be performed by healthy strong men. If defects are found in the health of the permanent working force, attention should be given to remedy them, and examinations should be made at Treatment regular intervals as long as the defects last, of defects If sHght defects are found on the physical o^iieaith. examination of an applicant, and this is the only objection, attention should be given, and frequent examinations made until good health is restored. Careful study should be made of the demands of each position, so that the per- son who fills it may not have his efficiency impaired by physical or mental defects. If a worker is found who has a defect which impairs his efficiency, continuation at the old work should not be allowed. If the defect is only temporary, a rest of a few days or a few weeks may restore health, but if it is permanent, another position should change be found where the demands are such that the of work defect will not interfere with efficient work, often neces- If a person is suffering with asthma and is ^^^^' working amidst dusty surroundings, a new position where no dust exists should be given him. Again, if a person is compelled to work in a standing position all day and has spinal trouble, a new position should be given him, where it would be possible to sit the greater part or all of the time, and perform his work. Great losses arise from having workers perform tasks for which they are not physically qualified. Ill-health in any form is a secret force working towards inefficiency, and 228 ECONOMICS OF EFFICIENCY frequently can only be detected by careful medical examination. The goal in every plant should be to have all places filled by workers who are competent to per- form efficiently the tasks to be performed. This demands medical service, and such is an absolute necessity where efficiency is the goal. An employer should insist that every employee consult the plant physician or nurse at the first symptoms of Importance iH-health. It is frequently hard to induce of treating an employee to do so, because he does not slight ail- realize that if slight ailments are taken in °^®° ^" time, it will often prevent the possibility of long sickness following. Severe sickness may frequently be prevented by prescribing at the first symptoms, and slight ailments if neglected often develop into serious illness. Colds, sore throats, and many ailments are contagious, but if promptly treated, and advice given as to precautions to follow, it will frequently prevent their spreading throughout a working force, and save many dollars from loss of efficiency of those affected and attending, and from those suffering from severe cases, and kept away from their places. Maintaining health in a working force is an important factor in efficiency, and is one of the greatest guarantees of regu- larity in attendance and of increasing efficiency by keep- ing employees in good health. The doctor or trained nurse should take special pains to instruct employees how to prevent sickness, and how to administer prompt and effective treatment during incapacity. In a large plant, it is advisable to have a dispensary in charge of a nurse. If no dispensary, provision should be made with a druggist to give ispensary. gp^^-^^j^ rates to employees. In a plant dis- pensary, drugs and medicines should be given gratis. If expensive drugs or medicines are required, they WELFARE WORK 229 should be given at cost. A dispensary is inexpensive, and proves a valuable factor in increasing efficiency by assuring better health in the ducTed.?^" working force. For the treatment of ac- cidents, an emergency room or hospital is necessary in every plant. All injuries, cuts, scratches, bruises, foreign matter in the eye, sprains, etc., should be given prompt treatment. If so, blood poisoning can be almost entirely ehminated, and loss of time and of efficiency from accidents greatly reduced. Efficiency of body and of mind is affected by home surroundings and conditions. It should be emphasized that no employer can afford to do anything which does not bear directly upon securing ^u^^ings" increased efficiency of his working force. Anything beyond this savors of charity, and is inva- riably opposed by workers. Charity is outside the province of a business enterprise, and is bound to react unfavorably upon its success, jn^res^^^ ^ Anything that increases the efficiency of the working force is within the province of every employer, and should be of special interest to him. The problem of efficiency increases the sphere of activity and the interest of employers in their employees beyond the plant, to their lives outside, and to their homes. A work- er's home surroundings react upon his ways of thought and of working. One who comes from a slovenly home, where meals are badly cooked, sleeping quarters not properly aired and ventilated, the house in a Htter, and things always in general disorder, will usually be a slack, careless, and unsatisfactory person. The home sur- roundings of employees are important factors in effi- ciency, and should be carefully investigated by every employer. Workers should be encouraged to Hve healthy, thrifty, 230 ECONOMICS OF EFFICIENCY and moral lives so as to develop into strong, happy, contented working men. It pays to have courage ' ^ nurse visit the homes of workers, and proper teach their wives how to cook food properly, habits of ]^Q^ ^Q keep the homes sanitary and properly ventilated, and how to administer simple remedies in case of slight illness. Many employers provide medical care for the famihes of their workers. Word comes to a worker that a member of his family is sick. In place of his going home, a nurse is sent, and he, knowing that a competent person is looking after the sick member, continues his work as usual. Modern industry demands of workers a good physique, as no work requiring strength, dexterity, or brain power can be per- formed efhciently in the absence of physical stamina, and such cannot be attained with malnutrition, bad housing, or poor sanitation. No employer who desires to obtain and maintain efficiency in his working force can afford to tolerate any of these conditions in the homes of his employees. The instructing of the working force in how to Hve so as to attain and maintain health is an important problem with every employer, and one which cannot be neglected. The personality of the doctor and of the nurse is an important consideration. In either case, the person PersonaUty should be agreeable, sympathetic, possess a of doctor cheerful disposition, and one who makes you and nurse. £g^j ^^^^ ^ great interest is being taken in you, and in whom you are ready and willing to confide. Such a person will greatly increase the efficiency of the medical department, and v/ill have a decided influence in main- taining a good esprit de corps. The maintenance of an efficient medical department has a distinct and important bearing upon the effi- ciency of a working force, and as such is a dollars-and- WELFARE WORK 231 cents proposition. Such a department increases efficiency in various ways, some of which are as follows : it eKminates all who are absolutely unfit for j^g^jjcai de- work ; it increases the efficiency of those with partment defects by changes in work, and by care ^P^ ^^- and attention ; it brings attention to those "®°*^y* who have physical defects, which if not cared for, might lead to physical unfitness, but who with proper care can be partially or wholly restored to health ; it prevents sickness by giving advice to well employees, and by immediate attention to slight ailments; it reduces loss of time due to sickness or accidents ; it reduces accidents owing to the fact that many accidents are due to ma- chines being worked by physically unfit employees ; it eKminates loathsome diseases. Many large enterprises maintain sanatoriums in the country where they send their sick employees. A week or two of rest in a sanatorium will frequently Provisions restore a valued employee to health when for the care neglect might cause illness of long duration, *** *^® ®^*^^- or result in some dangerous disease frequently causing death. Thousands of deaths occur annually due to neglect and carelessness in not paying attention to sKght ailments or symptoms at the proper time. Many em- ployers are not able to bear the expense of private sanatoriums, and make provision with public ones to care for all cases sent. Frequently, the employer bears all the expense whether the sick employee is able finan- cially to do so or not, but in some cases, the employer pays part and the employee part, but if the employee is not able to pay his share, the employer bears all the expense. Proper nutrition is essential to good health, and as far as the employer is concerned, presents two prob- lems : first, wholesome food for the employee and his 232 ECONOMICS OF EFFICIENCY family in the home, and secondly, lunches during the working day. The importance of instructing Stion^^^' ^^^ wives of employees as to the necessity of obtaining wholesome food and properly cooking it is not widely recognized by employers. To insure wholesome food at low prices, many employers of large working forces run stores and sell goods at a small margin of profit. Whatever profits assure? remain at the end of the year are given to an association for the benefit of employees, or divided among them on the basis of purchases. Some- times employees form cooperative associations, and by buying together are able to get discounts. Many employers advise their unmarried employees where to board to get wholesome food, and emphasize the effects on health of irregular eating, imperfect mastication of food, and the eating of indigestible dishes. Many find it pays from a business point of view to run boarding houses and restaurants for unmarried workers. Board is given at actual cost, and frequently at the bare cost of food and service, the building, equipment, and other requisites being furnished gratis by the employer. The obtaining of good wholesome food by workers has an important influence upon health and efficiency, and makes it a business proposition. Indigestion has a direct bearing upon health and efficiency, and its ill effects should be forcibly impressed upon every employee. The loss in efficiency iS^ffe^cts.''' due to this trouble amounts to milHons of dollars annually. One of the chief causes of indigestion is the eating of cold lunches at work- benches, or hurriedly bolting down a lunch at home during the noon hour. Unless a person gets a good substantial lunch, his efficiency must suffer before the end of the working day. Scant and WELFARE WORK 233 cold lunches have a twofold effect upon efficiency. Workers become hungry long before closing time, and good work cannot be done by any one if hungry. The lunches cause indigestion, and this impairs efficiency during the entire working day. Frequently at noon hour, some hasten to a near-by saloon, drink a glass or two of beer, and snatch a few morsels of food from the free lunch counter, while others get a pint or a quart of beer, and lunch upon that and a few crackers. The free lunch in a saloon is unwhole- some and indigestible. Those who lunch on beer and crackers are usually hungry by the middle of the after- noon, and famished before closing time. I have seen men so weak from hunger an hour before closing time that it was practically impossible for them to do half the work that they did without effort during the early part of the day. It is a proven fact that where men are allowed to drink a quantity of beer at the lunch hour, it has an important bearing upon their efficiency imme- diately following. Beer in any quantity causes drowsi- ness and Hstlessness, and is a great barrier to efficiency, and if it is allowed at lunch, it should be only in moderate quantities. From the foregoing, it is readily seen that the lunch problem is a serious one for every employer, and its successful solution adds greatly to the efficiency of a working force. The lunch problem has during the last decade received considerable attention, and in thousands of enterprises throughout the country some provisions are interest of made to guarantee a warm and wholesome employers lunch. Nevertheless, there are many enter- "ii^Qc^es. prises where employees are compelled to eat cold lunches, and are still allowed to patronize the free lunch counters of the near-by saloons. Many started, a few years ago, the practice of providing free coffee and a place to warm 234 ECONOMICS OF EFFICIENCY lunches. The experiment proved so satisfactory that to-day a great many furnish good wholesome lunches at cost. A restaurant should pay not in direct profits, but in increasing the efficiency of workers during the last working hours of the day. Scores of different plans are in operation for helping employees get good warm Methods lunches, and vary all the way from a cup of for assuring warm coffec for one cent, and a dish of soup for proper two ccuts, to full coursc dinners. A common plan is where the employer furnishes a room, Kghting, heat, and equipment, and employees are charged for the actual cost of food and service. Some- times employers take entire charge of the management of furnishing lunches, and sometimes this is left to a committee of employees. An employer cannot be expected to furnish lunches gratis, but it always pays for him to bear a part of the expense. In every case, it is a business proposition to see that employees get good, wholesome, warm lunches. Where only two or three are employed, a small gas stove or an electric plate furnishes a satisfactory cooking utensil, and a pound of coffee and four or five cans of condensed milk per month will give a warm drink. Employees should be encour- aged to bring good substantial food, and warm or cook it in the place. The total outlay amounts to a few cents per month for the employer, and gives each em- ployee a warm lunch, and not only increases his effi- ciency, but creates a better feeling towards the business. Pure drinking water is as necessary to health as wholesome food. Many factories have been severely Pure drink- handicapped by having a large number of ing water ; employees absent on account of sickness, its impor- and on investigation, the cause was found to be the drinking water. Drinking water should receive careful and constant attention so that the health WELFARE WORK 235 of the employees will not at any time be endangered. Whatever imperils health is of the greatest importance to an employer, and it is a business proposition to pro- tect the health of the working force from all perils and dangers. Drinking water comes from various sources: water supply of town or city of location; wells; springs; bays, lakes, and rivers. If the source is the p^^ ^^^^^_ water supply of a town or city, an analysis ing water; should be made occasionally for impurities itsimpor- or bacteria which might endanger health. If the source is either well or spring, extreme care should be exercised and frequent analysis of the water made. Special pains should be taken to prevent the sources of well or spring from being polluted by sur- drinking face water or other causes, and it should be w^*®'^- frequently cleaned and constantly inspected. Many plants along bays, lakes, and even rivers get Precautions drinking water from these bodies. Pipes are to assure laid out some distance from shore, and the good water, water is pumped to the plant. Frequent analysis should be made of the water, and extreme care be taken to see that organic matter or surface water does not pollute the water at the place where the supply is drawn. Many employers take further precautions by filtering all drinking water. Each source has its own problem to solve in guaranteeing pure drinking water, and as such should be carefully studied. Drinking water is supplied to workers in different ways : pail and cup, tank and cup, faucet and cup, sanitary fountain. The old-fashioned wooden pail and tin cup are germ distributors, and a menace to health. The wooden water pail is a relic of the past, and no enter- prising employer should allow its presence in his plant. The water tank and individual sanitary cups may be 236 ECONOMICS OF EFFICIENCY satisfactory if proper precautions of cleanliness are taken. The water should be drawn off by faucet, and ing water ^he tank should be carefully cleaned every should be morning. The common drinking cup should wwkirs *° ^^^ ^^ allowed in any plant. With city sup- ply, the faucet and cup are the old means for furnishing drinking water, but in every case, individ- ual sanitary cups should be used. The ideal drinking receptacle is the sanitary fountain, of which many varieties are on the market and wherever possible, one should be used. One manufacturer said that in the saving of time between the ordinary drinking cup and the fountain, the latter paid for its installation the first month. Provision should be made for re- ceiving waste water, and it should not in any case be allowed to dampen the floor. There should be a suffi- cient number of drinking places easily accessible, and convenient to all sections of a plant, so that too much time is not lost by employees going and coming from getting a drink. Drinking water in every case should be cool and refreshing. Precautions should be taken not to have Importance the water too cold because very cold water of cool increases the desire for it, and the taking of water. quantities into the stomach is injurious. Ice should not be allowed to float in drinking water. A water tank should have a separate compartment for ice, and with a drinking fountain or faucet connected with the water system of a town, or with artesian well, the water should be made to flow through a coil of pipes packed in ice. A cool refreshing drink invigorates workers, and is an absolute necessity in every plant. Drinking water is a more important factor in efficiency than the average employer beheves. An abundant supply of pure, cold, sparkling water is a factor in effi- WELFARE WORK 237 ciency, and it also has a further effect of fostering a better spirit between employers and employees. Even to-day, many employers consider it ridiculous, and an additional expense to furnish sanitary lavatories and washrooms. If men wish to wash be- The old fore going home, or before lunch, pails of water lavatory and are obtained, and all help themselves. Some- washroom, times towels are supplied, but ordinarily men use hand- kerchiefs or whatever they can get. Such practices are not only unsanitary, but are a menace to health, and many infectious diseases are caught from wiping on towels used by many, or washing in the same water with others. Some places still retain the old-fashioned iron sink filled with filth and germs, and one or two rusty iron or tin wash-basins. These are conditions no better than pails. Lavatories and closets are still appalhng in many enterprises. Many states have considered it necessary as a protection to health to pass strict laws governing them. In spite of laws, many are simply depositories for germs, filth, and odors, so nauseating that a person cannot remain long in one. Many a severe case of sickness is traceable to infection received in a dirty, filthy closet, or from dirty, filthy washing facilities. Hundreds of such cases occur annually, and they cost employers thousands of dollars. Efficiency and health should be sufficient reasons for sanitary lavatories and washrooms, g^ciency^ Cleanliness and sanitary conditions make a closer relationship between employees and employers, and assist in creating loyalty, enthusiasm, and interest, essentials for efficiency and success in every enterprise. Closets should wherever possible be flush and sani- tary. Urinals should be kept clean and frequently flushed because if not, they will be germ, carriers. Everything should be kept sanitary 238 ECONOMICS OF EFFICIENCY and clean. Employers find that where clean and sanitary closets are furnished, workers take pride in them, and do their part in keeping them clean. The closets should be ample and distributed, so that they are easily accessible to all parts of a plant. Washing troughs and individual wash bowls have taken the place of the old wooden bucket. Individual bowls are Washing ^^^ most sanitary and preferable. Soap and troughs and towcls should be Supplied by the employers, individual and cvcry worker should have his own indi- °^ ^' vidual closet, with a shelf in it for towel and soap. It is dangerous to have several using the same towel. Prevention is always the watchword, and is more preferable to cure. Many employers have janitors to look after washrooms, and matrons in the case of women. The washrooms in many of our enterprises are thoroughly modern, sanitary, and models of clean- liness. Such washrooms increase efficiency not only by protecting health, but by assisting to create a proper spirit of cooperation among the laboring force. Each worker should have an individual locker in which to keep his clothing and other personal effects. Lockers are made of wood, iron, or steel wire, but the loctlis!"^ last two are preferable. They should be carefully ventilated, and arranged so as to be near heated coils, or have drafts of warm air pass through them in order to dry clothes if wet on going to work, or working clothes if damp on leaving off, at the close of work. Frequently, work is of such a nature that it is necessary to work in difTerent clothes from those worn to and from work. If a change of clothing is necessary, both men and women should have their own dressing rooms. In many plants, dressing rooms are absolutely necessary, and they should be light, cheery, and well ventilated. WELFARE WORK 239 Cleanliness of person is one of the fundamental laws of health. Many employers realize this and furnish bathing faciHties for employees. Bathtubs, shower baths, and, in some cases, swimming bat^g^^°^ tanks are found. Many employers encour- age their workers to take frequent baths, and furnish free towels and soap, but they must take their baths on their own time. Some of the more progressive employers allow workers to take baths once a week on their time, and furnish soap and towels. Hundreds of plants have shower and tub baths for men, and tub baths for women employees. It increases cleanliness at home, affects habits of living, promotes health, and creates a closer cooperation and loyalty in the working force toward the business as a whole. Spitting on the floor is a filthy habit common in many places. It is a menace to the health of workers, and this is sufficient reason that it should not be tolerated. Men should be told the evil of'iUting^ consequences of spitting, and should be warned against its practice. Warning signs should be displayed in conspicuous places. Cuspidors filled partly with sand should be placed in convenient places, and care should be taken to have them cleaned frequently. The plumbing connected with closets, washrooms, and urinals should be regularly inspected. Frequently, employers pay dearly for faulty plumbing in having a large number of their working force piu^bhig. absent on account of sickness due to it. An epidemic frequently starts from a leak in a sewer or waste pipe in some part of a plant. If sewage is not emptied into a municipal system, but is carried some distance and allowed to soak into the ground or emptied into some body of water, extreme care should be taken that it does not in any way menace the health of workers. 240 ECONOMICS OF EFFICIENCY Organic matter should not be allowed to collect in or near a plant, because it may endanger the health of the working force. The hour at lunch if used advantageously is of value in maintaining the efficiency of the working force during Rest and the afternoon. The first essential is a whole- recreation some, warm lunch, and the second is rest and rooms. recreation. A rest room is absolutely essential with a working force of women, and is a good business proposition with men. A bright, cheery, cozy room with lounges, easy-chairs, a piano, a writing-desk, maga- zines, periodicals, and a Hbrary gives opportunities for rest and recreation, and makes workers more efficient for work during the afternoon. Where the work is exacting, many employers give rest periods morning and after- noon. Rest rooms give the rest and the efficiency! recreation needed, and girls who become temporarily ill find a place for repose. A few pots of flowers add to the cheerfulness of a room. A rest or lounging room for men with easy-chairs, magazines, library, games, and perhaps a piano affords an oppor- tunity to rest weary muscles and fatigued brains, and makes men better fitted for the work of the afternoon. Rest rooms are problems connected with efficiency and should be considered as such. They give a direct assistance in increasing the efficiency of the afternoon, and an indirect, in helping to create a proper attitude in the working force toward the business. In order to assure comfortable homes, many employers build houses, and rent them to employees at a sum Assistance j^^t sufficient to covcr cxpenscs. This should in procuring not be confused with the practice found in homes. many places, where employers build cheap houses and rent them to employees at exorbitant rents. The aim in this case is extortion, while in the former it WELFARE WORK 241 is to further assure health, comfort, and happiness by giving employees cheery and sanitary homes within their means. Many build homes and sell them to their employees on easy installment payments. The aim is to assure more comfortable homes in the first place, and secondly, to encourage thrift. Some progressive em- ployers, to safeguard the health of their employees, have lodging houses, and rent rooms to the employees at a rent just sufficient to cover expenses and give a low interest on the money invested. This movement is young, but it will not be long before employers will reahze that it pays on account of its beneficial effect upon the health of employees, and the time is not far distant when aJl employers of large numbers of men and women will have their own lodging houses. The cooperation of the working force with the manage- ment is absolutely necessary for efficiency and success. An employer may have a finely equipped welfare plant with the best possible sanitary and work; its hygienic conditions, but if his laboring force "^po^tance. is dissatisfied and discontented, cooperation is impos- sible, and the result is greater and greater inefficiency. A satisfied, contented, and healthy laboring force, enthu- siastic in cooperating with the management, and work- ing with only one aim, the welfare of the business as a whole, is a most valuable asset of an employer. Many employers realizing the value of a contented and satis- fied laboring force, and its important bearing on both success and efficiency, have undertaken many kinds of work to further guarantee and assure this frame of mind. This class of work is called welfare. Employers who have introduced various kinds of welfare work in their plants do not hesitate to declare that the motive for so doing is purely a business one, as it results in a better, more satisfied, and more efficient laboring force. W^elfare 242 ECONOMICS OF EFFICIENCY work is found in many varied forms. The character Varieties of ^^ ^^^ laboring force determines to a certain ex- weifare tent the kind of work that may be success- work, fully undertaken and carried on. During the past few years, employers have been taking more and more interest in this kind of work, and they declare that as a business proposition it is a good investment. From the success of the past few years, one can prophesy a great increase in this kind of work in the immediate future. Some forms of the work are as follows : benefit associations; educational work; athletic teams; club houses ; pubKcations ; annual outings and amusements ; clubs; pensions; suggestions; savings; vacations. Various methods are in practice for encouraging and looking after the various forms of welfare work. Many How to large corporations have special departments manage wei- in charge of managers with assistants who fare work, ^gvote their entire time to this kind of work. In many cases, other work is assigned, as safety, fire prevention, and sanitation. Sometimes a special person is in charge of welfare work, and decides what should be done to create in workers a proper attitude towards the management and the business as a whole. As to the kind of welfare work to introduce in an enterprise, study should be made of local conditions, and of the character of the working force in general, and the forms of welfare introduced should be such as will be adaptable and satis- factory to the plant. It is a waste of money to intro- duce certain forms of welfare work among certain classes Need of ^f workers. The importance of welfare is daily competent becoming more recognized, and the welfare persons. department is assuming greater and greater importance. In small enterprises, the work is as impor- tant as it is in large, and should be placed under the charge of competent persons, and time should be given to look WELFARE WORK 243 after it. The return in creating a better spirit of the working force towards their work repays several times what is judiciously expended in welfare work. A welfare work that is rapidly gaining favor is the providing of assistance to workers in case of sickness or accidents, and to dependents or relatives in case of death. This work is called benefit, ^o^c^ations" Benefits may be of different kinds, as, for sickness or disability, for funeral expenses, or in case of death, a small amount paid to family or near relatives. Various methods are in practice for managing the work, but the usual one is for the employees to form a mutual benefit association, and to manage benefits, it themselves. An official of the business enterprise is often the custodian of the funds, but this is not always the case. Weekly or monthly assessments are levied, and are usually graduated with salary or wages. When the fund reaches a certain amount, the assessment usually ceases until it is necessary to replenish it. Frequently, in case of extraordinary charges due to unusual sickness or accidents, increased or extra assess- ments are m.ade. Joining is often optional, but should be compulsory. The management sometimes makes occasional contributions, but usually the association is self-supporting. The weekly amount paid and the length of time of payments in the case of sickness or accident are not fixed, but vary ^^^oi*! . , . . n , "^ manage. With associations, as well as the amounts paid for injuries, accidents, or death. A new feature in benefits has been introduced recently in a few large enterprises. The management insures employees against sickness or accident in an Newfea- insurance company. The premiums are turein usually paid by the employees, but sometimes benefits, a part is paid by the management. Benefits, whether 244 ECONOMICS OF EFFICIENCY from local mutual associations of employees or from insurance companies, are absolutely necessary, not only as a protection to employers, but, more so, as a protec- tion to the employees. Mutual benefit associations have given entire satisfaction, but with the lowering of insur- ance rates there seems to be a good opportunity for the growth of the insurance of entire bodies of workers with regular insurance companies. Educational work in practice in American enterprises is of many forms ; as, apprenticeship schools, lectures, Kinds of evening classes, sewing and cooking classes, educational the teaching of Enghsh to foreigners, and work. kindergarten classes for the children of em- ployees. Apprenticeship schools occupy such an impor- tant place in efficiency that they are considered in detail in a previous chapter. The importance of lectures is becoming more recognized. The illustrated lecture is used with great effect in emphasizing and illustrating the various precautions for protection against accidents and fire. It is of the utmost importance in instructing employees how to care for the body, and how to live properly. Employers employing many girls frequently give evening classes in sewing and cooking, and some- times these classes are provided for the wives of employees. Where many foreigners are employed, it is advantageous to open evening classes to teach the EngHsh language, and simple educational subjects. Some employers have kindergarten classes for the children of employees, but this is rather unusual. The kind of work depends in every instance upon the character of the employees. Lectures and evening classes of various kinds improve the working force, and assist in creating and fostering a better attitude toward the management. It is a common trait in every boy and man to have an interest in athletics, and any encouragement on the part WELFARE WORK 245 of employers is much appreciated by employees. Wholesome recreation and outdoor exercise are incentives to health and higher efficiency, o/a^etics Encouragement is given in various ways from contributing to support a team, to furnishing grounds and equipment, and giving a certain time for practice. Baseball is the favorite game, but football, tennis, and cricket receive their share of attention. Finely equipped gymnasiums and indoor ball courts are sometimes found. Girls usually have their own sports, as tennis, basket ball, etc. A club house is only a possibility with an enterprise employing a large number of employees. Many large corporations have built and equipped fine club houses for their employees. A small fee is usually charged for club house privileges, and the deficit, if any, is paid by the management. Wholesome recrea- tion and sport are furnished, and their influence upon employees is toward creating a better attitude toward the management, and a better frame of mind for work. Many large corporations print monthly papers, usually in magazine form. The papers contain articles and news of interest to employees. Every em- Monthly ployee receives a free copy, and it helps to papers, arouse an interest in the business. It is a common practice for business enterprises, large and small, to have outings and picnics, and to provide various forms of entertainments and amuse- ments for their employees. Frequently, the ^^eation. great events are the annual picnic and the annual ball. Entertainments, dances, and concerts are encouraged, and the expenses are wholly or partially borne by the management. This recreation side of welfare work is important. The providing of proper and wholesome forms of amusement works to the ad- 246 ECONOMICS OF EFFICIENCY vantage of employers, in promoting enthusiasm and loyalty in the working force. The formation of clubs is an important duty of the person in charge of welfare work. The working force should be carefully studied, and the character of the work of clubs formed should depend upon the character of the workers. Orchestra, mandolin, and various musical clubs give satisfaction where a suffi- cient number of singers and musicians can be secured. Chess, whist, bowling, and checker clubs are favorites in the average enterprise. Many corporations have their own bands, and these furnish music on special occasions. Frequently the main work of clubs is to promote sociability among the working force. Part of the time in the case of girls' clubs is frequently given to sewing and cooking classes, and the wives of the employees are invited to join. Literary ^ and musical evenings also receive attention. With men, smokers, game tournaments, liter- ary meetings, and debates give satisfaction. Consider- able discretion should be exercised in choosing the activ- ities to be undertaken by a club. What would be suc- cessful and satisfactory with one class of workers would be an absolute failure with another. Success depends in a large measure upon the discretion of the welfare worker in choosing the work that will be appreciated by the workers. The club is very valuable in creating a better spirit towards the management. To encourage thrift on the part of employees, many employers either receive savings directly, and pay a good rate of interest, or encourage the forma- banks^^ tion of savings associations, and supervise the investment of their funds. Frequently, em- ployees are given loans at low rates of interest, and re- payment on the installment plan for the purpose of build- WELFARE WORK 247 ing or buying their own homes. The employees of many enterprises form loan associations, and money is loaned to needy fellow workmen. Encouragement to save and to own homes gives a better contented class of workers, and the provision for loans to the needy fre- quently protects deserving employees from loan sharks. Many employers own summer places where their employees are sent on vacations at low rates. The rates charged are just sufficient to cover ex- „ ^. ^, , •' , , Vacations. penses, and employees are assured a good healthy outing. There are a few instances where the expenses in the case of employees are paid by the man- agement, but such are exceptions. If employers do not own a summer place, many make arrangements with proprietors of suitable places to take their em- ployees at reduced rates. Such an interest is always appreciated by employees, and is amply repaid by their increased loyalty to the business. To encourage interest in work and business, many employers offer prizes for suggestions that are accepted and adopted. Suggestions are sought for dif- ferent things, as improvements in methods, machinery, and equipment, devices for the protection of employees and for fire prevention, and innovations that might increase the interest, cooperation, ^^^^ and loyalty of the working force. The kinds of suggestions vary with different enterprises. The suggestion system encourages employees to take a greater interest in their work, and to use their brains to devise sug- gestions that will increase the efficiency of the enterprise. Many employers believe that they owe their employees who have devoted their lives to building up their business enterprises a duty to assist them when old age p . or incapacity comes. This has led to many voluntarily pensioning their faithful employees when 248 ECONOMICS OF EFFICIENCY they reach a certain age. Railroads introduced the pen- sion system before industrial enterprises, and its adoption by the latter has been comparatively recent. When employees know that their employers take sufficient interest in their welfare, to not only assist them to save for old age, but to further assist with pensions, it pro- duces a better spirit on the part of the working force toward their employers. Other activities in behalf of employees are found. One worthy of mention is where employers give seeds, and offer prizes for the best-kept gardens, ^i^es^*^^ lawns, and houses. This increases pride in bright, neat, and cheery homes. Efficiency demands a healthy, contented, and inter- ested working force. It cannot be too strongly em- Effects of phasized that efficiency demands more than proper en- the physical condition of employees, but also vironments. ^Yieiv general attitude toward the business and their employer. The good health of workers de- mands the best hygienic and sanitary conditions and surroundings while at work and at home, and proper habits of living. The protection of health in enterprises should not be left to employers, but should be a legis- lative requirement. Every state should have strict laws governing the hygienic conditions surrounding workers at work. Employers should, from the fact of increased efficiency, interest themselves in the home surroundings of workers as well as their habits of Hving. Efficiency makes it a strict business proposition for employers to protect the health of their workers. A contented, satisfied working force with a proper attitude towards work and employer is a valuable asset, and is essential for efficiency. The chief purpose of welfare work is to create contentment in a working force and a proper attitude toward the management. It is not WELFARE WORK 249 philanthropic, nor does it savor of paternalism, but is guided solely by business motives. The kind of welfare work in every enterprise depends motive^^ wholly upon the kind of work performed, and upon the character of the working force. Discretion should be exercised in the introduction of any form of welfare work. The increased efficiency coming from a contented, loyal working force, with their hearts in the success of the business and their cooperation in every way to make it a success, is sufficient return for what is spent in giving pleasure, recreation, and happiness to workers. QUESTIONS 1. To what extent is sickness a drain on industry ? 2. What is the importance of a medical department in a busi- ness enterprise ? Give the requirements of an emergency room. 3. What is the importance of treating slight ailments ? 4. What is the relation between nutrition and efficiency ? 5. Why should employers pay heed to the home surroundings of their employees? 6. Why is the midday lunch an important factor in efficiency ? Outline a plan for giving cheap and wholesome lunches to em- ployees. 7. Mention the various ways of supplying drinking water. What precautions should be taken to assure pure water ? 8. Why should employers pay particular attention to lava- tories and wash rooms ? Give their effects on efficiency. 9. Mention various methods of teaching cleanliness. What is the importance of cleanliness ? 10. What is the relation between recreation rooms and effi- ciency ? What is necessary for a good recreation room ? 11. Mention several varieties of welfare work. How is welfare work conducted ? 12. What are benefit associations? Mention various kinds. 13. Mention various kinds of educational work. Give impor- tance of each. 14. Why should precautions be taken in deciding the character of welfare work to be undertaken ? 250 ECONOMICS OF EFFICIENCY 15. Why are pensions a good business proposition? Mention various pension schemes. REFERENCES Books E. Cadbury, "Experiments in Industrial Organization," Chs. IV, VII; E. W. Cooke, "Betterment"; L. M. Gilbreth, "The Psychology of Management," Ch. X ; M. L. Goss, "Welfare Work by Corporations"; E. L. Otey, "Employer's Welfare Work"; W. H. Tolman, "Social Engineering"; Tolman and Kendall, "Safety," Part IV; G. P. Watkins, "Welfare as an Economic Quantity." WELFARE WORK 251 Articles O. M. Becker, "How to Fix up a Lunch Room," Factory, Vol. V, pp. 28 + ; E. Bjorkman, "The Unnecessary Curse of Sickness," World's Work, Vol. 18, pp. 11836-11842; W. H. Cameron, "Do Employees' Benefit Associations Pay?" Iron Age, Vol. 90, pp. 1090-1091 ; W. L. Chandler, "Benefit Funds," System, Vol. 25, pp. 257-261 ; W. I. Clark, " Keeping Workmen in Repair," System, Vol. 24, pp. 263-269; W. I. Clark, "A Plan of Shop Medical Service," American Machinist, Vol. 35, pp. 1041-1042 ; I. Clark, "Medical Treatment for Employees," Southern Machinery, Vol. 27, pp. 73-77; "Enlightened Selfishness — The New Cue of Big Business," Current Opinion, Vol. 56, pp. 144 + ; F. M. Feiker, "What More Than Wages," Factory, Vol. 6, pp. 303 +; W. A. Grieves, "Mutuality," Iron Age, Vol. 87, pp. 908-911; E. K. Hammond, "How to Fix up a Lunch Room," Factory, Vol. 11, pp. 332 + ; W. B. Kaenpffert, "Welfare Work in Germany," Scientific American, Vol. 106, pp. 193-194; R. C. Lewis, "The Emergency Room of the Yale and Towne Manufacturing Company," Human Engineering, Vol. 2, pp. 1 29-131 ; Wm. O'Neil, "The Recognition of the Surgeon in Industrial Operations," Proceedings of the First Cooperative Safety Congress, pp. 291-297 ; H. F. J. Porter, "How Suggestion Systems Work Out," American Machinist, Vol. 35, pp. 371-373 ; H. F. J. Porter, "A Clothes' Closet for Each Work- man," Factory, Vol. 11, pp. 27 + ; H. F. J. Porter, "Industrial Betterment," Gassier, Vol. 38, pp. 303-314; D. C. Shafer, "Keeping Employees in Good Trim," Factory, Vol. 5, pp. 148 +; C. A. Tupper, "Welfare Work in German Industries," Iron Age, Vol. 89, pp. 239-241. CHAPTER XII Accidents During the past century, improvement in machinery progressed at a rapid rate, and is a chief cause of our Machinery industrial development. Decade after dec- andthe ade saw more intricate and complicated increase of machinery introduced into our factories, acci ents. ^^^ found greater numbers of men, women, and children attending thousands of machines. The number of workers annually killed, maimed, and in- jured has increased at a very rapid rate, until the annual death rate in the United States due to industrial acci- dents is greater than the number killed during any battle of the Civil War. Every industry has connected with it a certain amount of risk, and in no case is risk entirely absent. Many ac- cidents which daily occur are simply and solely acddents^ the result of Conditions beyond human con- trol, and inseparable from the ordinary course of existence. Accidents may be divided into two classes : first, those arising from causes beyond human control; and secondly, those due to Tbie^^^^" causes preventable by human agencies. The first class, or unavoidable accidents, cannot be diminished by man, but the second, or preventable accidents, are due to the fault of employers or employees, Preventable ^^^ ^^th. due care and precaution may be avoided. The prevention of accidents has during the past few years attracted attention, and is 252 ACCIDENTS 253 becoming daily more recognized as an important factor in efficiency. Many are devoting time to its study, and it is gradually forging its way to the foreground as an important duty of every business man. The Germans lead all countries in the collection of accident statistics. According to their statistics of a few years ago, 42.05 per cent of all accidents were due to the unavoidable risks of industry, Occidents and 57.95 per cent to the neghgence of em- ployers and employees. During the past few years considerable advancement has been made in this country in the taking of statistics, and several states have passed laws compelKng the accurate keeping of sta- tistics of accidents. The statistics which we ^®5*^ °^ statistics. have, appall us by the number of accidents which occur annually, and by the fact that a large per- centage is due to neghgence in some form or other on the part of employer or employee. A well-known statistician is well within the hmit when he declares that 50 per cent of all accidents in the factories of Amer- ica are preventable. Until reHable statistics are available, people cannot tell the great economic loss from accidents. A con- servative estimate of the number of men killed annually in industrial accidents in the acdd^ents°"^ United States is five thousand, and the num- ber of accidents two hundred and five thousand. Cal- culating the economic loss on the basis of insurance tables at $7265 for each man killed and $660 for each man injured would give an annual loss to the country of more than one hundred and seventy-one milHon dollars. When we hear so much of conservation and the ehmina- tion of waste, we cannot help thinking that here is a neglected field, and one where there is a great oppor- tunity to assist industry and humanity at large^^^ 254 ECONOMICS OF EFFICIENCY carefully investigating accidents, and putting into prac- tice more efficient means for their prevention. Accident prevention is a study of recent development, and is one which should receive considerable attention in the future. It is surprising how stupid the average American em- ployer has been until recently to many of the essentials Profits the ^f efficiency and to important factors in lower- goal of ing costs. The American employers of the business. nineteenth century were utterly indifferent to the suffering, mutilation, and even killing of their em- ployees. But later, when it was brought home to them that accidents represent a great economic loss which, if prevented, would assist in increasing profits, they began How to to take an interest in accident prevention. It arouse em- carries home the fact that the goal of business terestiii^^" activity is profit seeking. In the struggle accident for profits, the business man is heartless and prevention, cruel to those around him. The only way to soften his heart to the interest of those under him is to make clear to him that consideration and care would affect his profits. It must be a pure business proposition assisting in some way to reach the goal, profit making. The new efficiency movement is proving to be a boon to industry and to humanity by making employers realize that a proper consideration of the human ele- ment is the chief means of promoting efficiency, and a great factor in increasing profits. It is not only in the interests of humanity, but of profit making, for prevention the employer to use every means in his power and to secure prevention against the manifold efficiency. (^^^gers to life and limb, which are the accom- paniment of modern industrial conditions. It is only recently reaHzed that to protect the worker against the many dangers attending every branch of industrial '^tivity, is a necessity in attaining efficiency. ACCIDENTS 255 All accidents cannot be prevented, because accidents in greater or lesser numbers must accompany our com- plex industrial system. Unavoidable acci- jji^jsjons dents will occur, and cannot be avoided, but of the study the preventable, which total in many indus- of accident tries to more than half of the accidents, can p^®^®°^°^- be avoided. It is to this field that the study of accident prevention belongs. The new study may be divided into different branches ; as, — first, a careful study of the causes of accidents; secondly, the development of care on the part of employers and employees ; thirdly, the use of safety devices ; and fourthly, the proper design and construction of plant and apphances. Every effort should be made to find out how an accident hap- pened, the machinery involved, the time of day, and how long the operative had been working. Each acci- dent should be carefully studied to ascertain its cause so as to prevent repetition. When the cause of an acci- dent is discovered, the remedy should be sought and appHed so that a similar accident will not occur. In the field of accident prevention, too great em- phasis cannot be placed upon the absolute causes^ necessity of a most careful investigation into the causes of accidents. In a large factory, it pays to have experts devote their entire time to studying the causes of accidents, and devising apphances and de- vices for prevention. In a small enterprise, this work, if not carried on by the employer himself, may be as- signed to one of the foremen, and encouragement in some material way should be given, so that he will be encouraged to exercise his best ability to prevent accidents. Numerous causes have, at one time or another, been given for the happening of accidents. A few of the most common are ignorance, carelessness, unsuitable 2S6 ECONOMICS OF EFFICIENCY clothing, insufficient lighting, dirty work places, defects of machinery and structure, not proper fire accidents. precautions, overcrowding of machinery or materials, fatigue, poor sanitary conditions, slippery floors, walks, or stairs, failure to use safeguards provided, and intoxicants. Many accidents, and often those of a serious nature, are due to the ignorance of workers. Workers are permitted to work on dangerous machinery gnorance. ^j^j^q^^ either proper training or instructions. Education is the chief remedy, and every workman engaged in work around machinery should receive special instructions in how to avoid accidents and in a language which he understands. Special care should be taken in the selection of workmen for machines, and minors should not under any considera- tion be allowed to work around dangerous machinery. Strict rules should be formulated in what should be done to avoid accidents ; these should be given in pamphlet form to all workers, and the foremen and bosses should insist that they be frequently read. Severe punishment should be imposed upon any one who breaks the rules. Warnings in the form of signs should be distributed about plants. Bulletins should be kept in conspicuous places, and upon them cuts from papers of how accidents occur and general information about the occurring of BuUetins accidents should be posted from time to time. and All workers should be encouraged to read the lectures. bulletins. Good pictures will get better re- sults than reading notices. Lectures should be given occasionally with the use of lantern slides, and compul- sory attendance should be insisted upon. If these few simple precautions are taken by an employer, the num- ber of accidents would be greatly diminished. Carelessness is one of the chief causes of accidents. ACCIDENTS 257 It cannot be completely blotted out of human nature, but if certain precautions are taken, accidents from this cause may be greatly reduced. Chief ^^H ®^^" Factory Inspector J. C. Delaney of Pennsyl- vania dwells at some length in his annual report for 1909 upon the danger of carelessness. He says that although workers are aware of unguarded parts, yet some will do their work in a way that borders on criminal neghgence. A few of the often repeated careless acts which he mentions are, placing a ladder upon ^ . a revolving shaft and mounting thereon to ad- just a belt, crawhng under machinery in motion, reach- ing across dangerous parts of machinery in motion, cleaning and oiHng machinery in motion, working in baggy sleeves or with flying tresses of hair about dan- gerous gearing and belting, jumping on or off elevators in motion, and adjusting belts upon rapidly revolving wheels and speeding overhead cranes. He further comments that as long as neghgence similar to this oc- curs, accidents avoidable and serious will continue to happen though the employer of labor exerts himself to the utmost to prevent them. These are a few of the many acts of carelessness which are seen in the average plant. The chief remedy is discipHne, and its strict enforcement. Back Rg^e^jjes ■ of discipline, it cannot be too strongly em- phasized that success depends largely upon the careful selection of superintendents and bosses, and infusing them with the employer's earnest desire to avoid acci- dents. This sincerity soon makes itself felt with the workers. Strict factory regulations should be care- fully drawn up and strictly enforced. Workers should be instructed in their meaning, printed copies should be distributed, and the management should insist that they be frequently read. Every infraction of the regu- 258 ECONOMICS OF EFFICIENCY lations should be severely punished. Other precautions that prove of valuable assistance are warnings placed in conspicuous places, bulletin boards with clippings of recent accidents in different parts of the country, pic- tures cHpped from papers and magazines showing acci- dents, and lectures with lantern sHdes showing how accidents occur, and how they may be avoided. Care- less operatives and violators of rules should be discharged if sufficient warnings fail to reform them. These few inexpensive precautions will prove of great assistance in cutting down expenses through the prevention of many accidents. Hundreds of accidents are caused annually by cloth- ing being caught in moving machinery. The wearing of clothing should be under the supervision of °^' the employer, and should receive his close attention. A loose sleeve, coat, or pant leg, a flowing skirt or a flying cravat, if caught in any part of moving machinery may cause a serious injury, and sometimes death. In the case of men working around or attending machinery, a tight-fitting, closely buttoned waistcoat, with close-fitting sleeves ending at the elbow, and close- fitting pant legs make the most desirable working ap- parel. It is advisable for an employer to de- dress^^ cide upon a standard suit, and insist that all working men wear it. Women should never be allowed to work around high-speed machinery. A stand- ard dress consisting of a tight-fitting waist with close- fitting sleeves terminating at the elbow, and a close- fitting skirt should be worn by women employees in any plant where they are around machinery in motion. Women working around machines should not wear aprons, and should have long hair under close-fitting caps. These precautions are simple and inexpensive, and if universally adopted, would annually prevent ACCIDENTS 259 thousands of accidents, and save many thousands of dollars as well as prevent much suffering and misery on the part of employees and those dependent upon them. Poor lighting of buildings and rooms used for produc- tive purposes is responsible for many accidents. In many plants, men are forced to go back and forth through dark passageways, through ughting. which run rapidly revolving shafts and high speed belts. A false step usually means a serious acci- dent. An abundance of Hght, natural or artificial, should be furnished in every part of a plant. Dirty windows often make a place darker than need be. Sta- tistics prove that the greatest number of accidents occur during the months of diminishing light. Even if a plant has good natural light facihties, provision should be made for the providing of sufficient arti- Precautions ficial light on short notice. Every stair- to assure way, hallway, platform, runway, and passage- s^^®*^' way should be suppHed with sufficient light, either natural or artificial, to enable persons to see distinctly where they are going, and if there are any obstacles in the way. During cloudy days, natural fight is frequently not sufficient, and at once, artificial fight should be turned on. In fall, winter, and early spring, oftentimes during the day, artificial light is necessary. Proper fighting is not only necessary for accident prevention, but is a prime necessity for efficient work. Cleanliness is as important in a plant as in a home. If tools, waste materials, and goods in process of manu- facture are allowed to fitter the floor, there is ^. „ ,.„^„„ 1 i • • Cleanliness. always danger of an employee tripping over them, and being injured by the fall, or being thrown against moving machinery, which invariably means a more or less serious accident. Everything in a factory should have its proper place. Every workman should 26o ECONOMICS OF EFFICIENCY be severely disciplined if found casting tools or materials in aisles, under moving machinery or in out-of-the-way places. Order is the first law for efficient work, and where there is order, many accidents are prevented. Machinery and structures gradually wear out, and often unexpectedly give way and cause accidents. Breaka es Breakages are frequently caused by defects in parts of machines or structures. Extreme care should be exercised in buying machinery, tools, equipment, and construction materials to make certain that only the best are obtained. Platforms, buying. runways, and stairways should be built with extreme care, and only the best materials and workmanship allowed. As a protection against acci- dents, machinery should not be overfed, or machinery or equipment overloaded. Frequent and close inspections should be made of all parts of ma- chinery and of equipment to discover any signs of wear, or any defects which may not be apparent at first sight. Certain parts of machines often require renewal, and inspections should be such as will show when it is needed. Too great emphasis cannot be placed upon the necessity of regular and frequent inspections by competent men of all equipment, machinery, and appliances, so that defects and unsafe conditions may be discovered promptly and remedied. The losses arising from interruptions in continuous production due to breakages amount annually to thousands of dollars. The buying of machines, equip- ment, and materials of the highest grade and quality, and careful inspection are essential factors in a plant in preventing accidents and in lowering costs of production. Fires cause many accidents and injuries as well as _. destruction of much property. Accidents may be greatly diminished by careful con- struction and equipment of plants, and by proper ACCIDENTS 261 protective measures by the management. Every building used for manufacturing or business purposes should be provided with a sufficient number of exits and fire escapes, to permit prompt egress from the building in case of fire . All doors should open outward, and no door should be locked, bolted, or fastened while employees are inside. Fire escapes should be secure and kept clear. Fire drills are of great service in preventing panic, and occasional drills under a com- petent instructor greatly lessens the risk to life in case of fire. Many employers, in order to economize space, place machines too close together. The width of passages between machines is reduced to the danger point. A certain amount of space is necessary ^^^ "®°* for the proper operating of machines and the handling of materials, and if this is encroached upon, the probability of accidents is increased. Space should not be economized to the point that risks to workers are increased. Slippery floors form an element of danger, especially in conjunction with unguarded machinery. Even if a slippery floor is not near unguarded machinery, or ^ •^ , , . ,, ^,^. . . y Slippery it may cause a bad fall resultmg m serious m- floors, jury, and this is particularly so, if workers are stairs, and carrying heavy loads. Many accidents are ^^ caused by slippery treads on stairs. If treads become slippery, either renew or cover with some material that does not become slippery from wear. All floors and walks should be kept in good condition, and free from holes into which a person may step. If walks or stairs are exposed to the weather, care should be exercised to prevent them from becoming covered with ice. Hun- dreds of accidents occur annually from falling on slip- pery walks and stairs. Falls from ladders explain the 262 ^ECONOMICS OF EFFICIENCY cause of many hundreds of accidents each year. Care is not taken to see if the bottom of the ladder is on a shppery floor, walk, or ground. Small pieces of rubber, lead, or sharp iron points fastened to the ends of ladders are effective devices to keep them from slipping. All floors should be as free as possible from water, oil, and grease, and if there is any danger of slipping, powdered rosin, freely used, prevents many falls and accidents. Stairways should be provided with handrails. A handrail has often saved a person from a bad fall. . Stairways, even when inclosed by side walls, should have a handrail on at least one side, that nearest the right hand of the person going down. Platforms should always be railed and skirted at the edge to prevent materials, tools, and persons from falling off. Elevated walks and runways should always be railed. In every case, frequent inspection should be made to see that supports and railings are always in the best condition. Many serious accidents have oc- curred from persons leaning against railings which were not secure, and from too many persons, or a too heavy weight, being allowed upon elevated platforms and run- ways. It is advisable for every employer to prohibit absolutely the drinking of any alcoholic drink during working hours, Use of 2.nd to discourage its use outside of the plant, alcohol and No man under the influence of liquor should accidents. -^^ allowed in a plant, much less to work, be- cause he endangers his own life and the lives of his fel- low workers. A man who is usually careful is apt to become reckless under the influence of Hquor. The regular use of alcoholic drinks in any quantity soon makes a worker an undesirable person in a laboring force, and unflt for efficient work. It has been proven that the greatest number of ac- ACCIDENTS 263 cidents occur between ten and eleven thirty in the morn- ing, and the hour and a half before the half hour previous to quitting time in the after- noon. During the last half hour before noon, and be- fore quitting time, the final spurt reduces danger. Dur- ing these hours, there is the greatest fatigue, and it clearly proves the relationship between fatigue and accidents. The worker, when he becomes tired, has no longer full control of his muscles, and loses a certain amount of alertness and watchfulness. The margin of safety in modern industry is small. The swift ma- chinery of modern factories requires attendants to push and guide materials in close proximity to merciless cutting tools. Many types of machines demand work- ing so close to dangerous parts that the misplacement of the hand only a small fraction of an inch means mutilation. The worker is at first cautious and atten- tive, and avoids danger because his attention is alert, but as sensibiKty decreases at the acdd*erSs!° onset of fatigue, his attention diminishes and he does not see danger. Reduce the alertness and the exactness with which the body responds to the demands of its labor, and by just so much you increase the liability that a hand will be displaced that fraction of an inch which means mutilation. Long hours and over-fatigue are two important factors of inefficiency and leading causes of accidents. When a worker's health and strength are under- mined by overwork, he becomes incapable of alertness, attention, and watchfulness, and gradually becomes defenseless against accidents. Low vitaHty, poor health, and nervousness make an em- ployee unfit for efficient work, and if allowed to attend or work around moving machinery, the chances of accident are increased at a rapid rate. Efficiency 264 ECONOMICS OF EFFICIENCY forbids long hours, and the undermining of the nervous system and health through overwork, and if its demands are followed, there will be a great decrease in the number of accidents. It is fatiguing to keep attention on one thing for any length of time, and how much more so must it be, to closely watch rapidly moving machinery. In- Effect of in- . . • i • • tense work, ^^^se contmuous work mcreases maccuracy, diminishes alertness and watchfulness, and at the same time increases the chance of deviation of a fraction of an inch in the movement of a hand which results in accident. Employers should reaHze that workers should be protected from accidents and from working to a point where health is impaired. Extreme care should be exercised in employing as attendants for rapidly moving machinery only those in the rest^ ^ ° ^^^^ possible health, and with sound nervous systems. The time of work should be decided by a study of its intensity. A worker should under no consideration be allowed to attend rapidly moving ma- chinery with a tired mind or body. Frequent intervals of rest are absolutely necessary. The frequency and the time depend upon the character of work. By pre- cautions in the employing of suitable employees, and by providing proper intervals of rest, accidents will not only be prevented, but efficiency will be greatly increased. Gases, vapors, dust, and smoke increase chances of accidents. Intense heat and high humidity decrease Gas, vapor, alertness and watchfulness necessary for the dust, and avoidance of accidents. Proper sanitary sur- smoke. roundings are of greater importance to good health than to accident prevention, but the two are closely related, because whatever lowers the vitality of workers decreases their power to avoid accidents. All ACCIDENTS 265 unsanitary surroundings increase the probability of accident as well as imperil the health of workers. ^'Famiharity breeds contempt" is an old saying, and no greater proof of its truth may be found than in the carelessness of men who are daily in close j^en grow proximity to dangerous moving machinery, careless of A man when first working around dangerous <^^°g®^- parts of machinery takes pains to avoid the possibility of accident, but after a time becomes so used to his sur- roundings that he unconsciously takes a great many chances which he would at first have taken pains to avoid. It is well known that men grow careless of dangers. In the bustle of work, men forget even or- dinary precautions. An electric circuit marked ''Dan- gerous, 2000 volts" will be shunned for a week, but at the end of that time will be treated as contemptuously as an ordinary door battery. The condition of mind which does not heed danger may be preveS overcome in a large measure by rules, cau- tions, signs, and by simple protective arrangements which serve to call attention to the existence of danger. Careful instruction and supervision in the formation of habits of carefulness in heeding danger is the chief remedy. Rules and severe discipline when they are broken are necessary, and further assistance may be given by placards, signs, bulletins, and lectures. If these precautions are followed, men will become accus- tomed to taking pains to avoid dangerous parts, and the constant reminders will prevent them falling into for- ge tfulness, and taking foolhardy risks. The greatest thing which an employer may do to make his workers as safe as possible, is to Necessity provide adequate safeguards for dangerous of safe- parts of machinery and equipment. All ma- s^^^<^s. chinery is more or less dangerous. A certain number 266 ECONOMICS OF EFFICIENCY of accidents are unavoidable, but extra precautions should be taken to lessen the avoidable. It is a cer- tainty that a large number of accidents would not occur if machinery and surroundings were made safe. Employers differ in their opinions as to what is dan- gerous and what is safe. Whether employers scout at The old ^h^ i^^^ ^^ safety through safeguards or not, view of they should be made by law to safeguard all safeguards, dangerous parts of machinery and plant equip- ment. The progressive employer provides safeguards because he realizes that it is good business. They are a guarantee of continuous production, and one of the factors working towards higher efficiency. The anti- quated employer laughs at the idea of protecting a planer and declares, "It has been exposed like that for years and I have not had an accident." Such an argu- ment is nonsensical. If such an employer will not safeguard his machinery, the state should legally force protection. Employers should be required under severe penalty to equip machinery and working places with every prac- tical safety device that it is possible to secure. What to Successful business teaches us that it is cheaper safeguard. ^ to cover a gear than to pay for a finger. It complete guards were provided, so that every acci- dent due to being caught in moving machinery was avoided, it would not only prevent much suffering, but would add annually millions of dollars to the profits of manufacturers. The proof of the adequacy of a safeguard is its power to prevent accidents. Safeguards are usually simple devices and inexpensive. A question arises as to what is to be safeguarded. Mr. dlr's^ii^'t Calder gives a very satisfactory list, which is as follows : all engaging toothed or other gears, rolls, drums, and sHdes of every description on any ma- ACCIDENTS 267 chine; the spaces between fixed and moving parts of any machine, or between the latter and the structures near it, leaving insufficient working clearance, in no case less than eighteen inches for any person employed thereon or near it ; pulleys and clutches ; belts, bands, and driv- ing chains; flywheels and starting balance wheels; shafting and spindles, and all couphngs or projections thereon, or upon reciprocating or other moving parts of machines ; counterweights and balance weights and their suspensions ; the actual element in every machine which comes in contact with work, and cuts, shears, or other- wise operates upon the latter, for instance, the circular saw blade in the sawmill, the punch and die in the press, the revolving cutter in the milHng machine, etc. In- sistence should be that these elements be always guarded where found, unless they are of such form and in such a position as to be as safe to all as if guarded. This gives a good working category of machinery risk. To this list should be added elevators, common utiHties, and structures in power generation and transmission. Safeguards should be durable and easily distinguish- able from parts of a machine or equipment. A device which is widely used in Europe, and should be Drawing adopted in this country, is to paint guards, attention to safety devices, and, wherever possible, the safeguards, moving parts of machinery bright red. This is an effective way of drawing attention to dangerous parts. The proper guarding of all dangerous parts is the de- signer's duty. Purchasers should insist in buying machinery that all dangerous parts are pro- proper time tected. The proper time for providing safe- forprovid- guards is while a machine is in the building, i^s ^afe- because here it may be done with the least ^^^ ^' effort and the least cost. The devising of a guard that will least interfere with the function of a machine may 268 ECONOMICS OF EFFICIENCY be done better by the designer than by any one else. If dangerous parts are not safeguarded in the making, then it falls upon the user to protect his workers by various devices. There are many patented safeguards in the market, but frequently the user is called upon to fur- nish home-made guards. A home-made wire screen is as effective a safeguard to a wheel as an expensive one. It is not necessary to have a safeguard a finished piece of work, because as long as it protects that is all that is asked. If buyers would refuse to buy machines unless the dangerous parts were protected, it would not be long before only machinery with all dangerous parts properly safeguarded would be found on the market. Many workmen object to safeguards, claiming that they are a nuisance and interfere with work. Every Workers Safeguard should be so designed that it does and safe- not interfere with the function of the machine, guards. j£ j^- (Jqcs, a Httle study will devise a sKght change so that work will not be interfered with. Fre- quently, workmen objecting to a guard will not hesitate to remove it. Men who have worked for years without guards frequently develop a spirit of bravo, look upon them as signs of weakness, and scorn them as a reflection upon their cleverness to avoid accident. When safe- guards are introduced, workers should be induced to use them. They should be made to see that their purpose is for their protection, and that their cooperation should be with the management to make their use efficient in preventing accidents. Inspectors should see that no guards are removed, and if a workman is found removing one, the punishment should be severe. The furnishing of safeguards will not assure preven- „ ,. tion of accidents unless employees cooperate Precautions fully and wilHngly in the effort to pro- tect them. Workers should feel that all precautions ACCIDENTS 269 taken for safety are for their benefit. Many safeguards must be removed for cleaning, oiKng, or adjusting ma- chines, and workers should replace them as soon as the work is finished. If a safeguard is provided and left off, there might just as well be no safeguard. Rules should be obeyed, and every case of infringement should receive prompt and severe discipHne. Employees should be instructed to report any dangerous places or signs of weakness in any part of the equipment or machinery. A reward for the prompt reporting of danger will often bring attention to weakness in time to be remedied be- fore accident. Every employee should be taught to be cautious, and be encouraged to warn fellow workers of dangerous places. The oiHng of machinery and shafting while in motion should not be done, unless it is absolutely necessary. Employers should equip all parts of running machinery with automatic oil cups, and these ^-^^^^ ^ should be filled while machines are at rest. If there are no automatic oil cups, and it is necessary to oil machinery and shafting in motion, certain precautions should be taken. Oiling should be done by ex- precautions perienced men who wear tight-fitting clothes, and use long-necked oil cans so as to keep their hands out of danger. With shafts and machinery a few feet above the floor, special platforms should be built for oihng purposes. Sometimes ladders are used in oiKng shafting; if so, special care should be taken that they have special hooks at upper ends to fit over the shafts, and sharp points at the lower to prevent slipping. The safest way to oil machinery and shafts is by automatic oil cups, and these should be introduced, if not already in use. Cleaning machinery while in motion is the cause of thousands of accidents. The chief cause of danger is 270 ECONOMICS OF EFFICIENCY in the soft materials used in cleaning. These catch easily Dangers in ^^ gears or in running parts of machinery, cleaning and draw in fingers, hands, and sometimes machinery, ^rms, and injury follows. Nearly all such accidents are preventable, because, with few exceptions, machines may be cleaned when not running as well as when in motion. If cleaning is absolutely necessary with moving machinery, it should be done only by cau- tious and experienced men. Under no circumstances should minors be allowed to clean or oil machinery in motion. With precautions in cleaning and in oiling machinery and shafts, nearly 25 per cent of industrial accidents may be prevented. A man with poor eyesight is of little service in the industrial field. Hundreds of workers yearly lose or impair their efficiency by accidents impairing o/the^eyes their eyesight. In many factories, little is done to protect this most important member of the human body. Workers operating machines where particles of metal or hard substances are being cast off or likely to be cast off, and workers in rooms where small particles of hard substances are flying about, should have their eyes protected by spectacles or goggles. Screens and hoods should be further safeguards on grinding machines and cutting machines where particles of hard substances are given off. Care should be taken in the choice of goggles. The lenses should be strong enough to stand a hard blow, as many serious accidents occur by the breaking of light, thin lenses. The goggles should be cleaned daily, because this avoids many cases of infection. Precautions The cleaning may be done by either dipping with in boiling water, or immersing in an antiseptic goggles. solution. A promiscuous use of goggles should never be allowed in any plant, as many diseases, as tra- choma, iritis, etc., are transmitted by such practices. ACCIDENTS 271 Every year many men lose their eyesight by per- mitting other workmen to remove foreign bodies from their eyes. A worker on getting something into his eye tries to remove it by rubbing, or Action's by the use of a dirty handkerchief or rag which happens to be near ; if he fails, he calls to a near-by worker to remove it. Infection is often transmitted through the use of dirty handkerchiefs, dirty rags, or fingers when used to push back the eyelids, and frequently means loss of sight. In every plant, there ^g^e^*! should be proper facihties for removing for- eign matter from the eyes, and some one trained in so doing. Every case should at once receive proper treat- ment and then there is Httle danger of infection. In the United States, the people at large need the creation and the development of an accident preventive spirit. In Europe, and in Germany in par- Accident ticular, accident prevention is kept constantly preventive before the pubhc, the legislatures, the em- ^p^"*- ployers, and the workers. It is taught in the schools, and colleges devote some time to it. Trade and technical schools make courses on accident prevention compulsory parts of their curricula. Insurance rates are based upon the state of accident prevention found in the individual plants. The political and industrial leaders unite their strength in discovering various ways of extending, and of making more effective, accident prevention. In this country, we should in the future devote more time to educating the people in the science of accident prevention. There should be compulsory courses in the prevention of accidents, and in first aid to the injured, in every high, trade, and technical school. Ere- hq^ to be quent use should be made of the lantern and attained in sKdes, because in this work the lantern may ^"^erica. be used effectively. Advanced courses in accident pre- 272 ECONOMICS OF EFFICIENCY vention should be compulsory in every engineering school. Periodicals and newspapers should do their share by contributing numerous articles on accident prevention. More attention should be given to educating the em- ployee within a factory. Care should be taken to form with every employee habits of carefulness, and of acting unconsciously in looking out for self first, and the other fellow always. Every new employee should be given careful instructions as to the dangerous parts of machines and of every part of the plant where his work takes him. He should not be allowed to take his place in the plant until he is thoroughly familiar with his work, and able to protect himself against accidents. In the case of for- eigners, they should be instructed in their own language in the proper and safe ways to do work. The aim should be to inculcate habits of caution. Warnings and signs should be put in conspicuous places near dangerous ma- chines and places. Strict rules should be drawn up governing the actions of employees in a plant, these should be closely followed, and infringement should be severely punished. The rules should be printed in a small booklet and each employee furnished with a copy. With foreign employees, the booklet should be printed in their language. Bulletin boards should be placed in conspicuous places, and clippings of accidents should be regularly posted. Pictures or photographs of accidents posted on bulletin boards are always seen, and make an impression. Lectures with lantern slides should be given at regular intervals, and compulsory attendance should be insisted upon. If these precautions are fol- lowed, they will soon develop habits of caution and a preventive spirit with the people at large. An important factor in teaching accident prevention in Europe is the accident prevention museum, or per- manent exhibition containing working exhibits of safety ACCIDENTS 273 devices for machinery and equipment in all kinds of in- dustries. Amsterdam, Paris, Vienna, Budapest, Munich, Berhn, and other places have their accident Accident prevention museums. Most of these are kept prevention up to date, and have the most improved safety °i^seum. devices on exhibition and explained thoroughly at regu- lar hours each day by competent instructors. This is a field for great development in accident prevention in America. Each large industrial city should have its accident prevention museum of work- ^cTed°°" ing exhibits, always up to date, and free of admission to the pubhc. Illustrated lectures should be given from time to time, and efforts should be made to get the working people to attend. The cooperation of employees is absolutely necessary. The expense of the museum should be borne by the people at large, and form part of the expenditures of the town or city. The small cost to each person would be a thousand times compen- sated by its influence in preventing accidents. The frequency of occurrence of accidents in any enter- prise depends largely upon the character of supervision, and the management. The executive head -^ should be earnest and sincere in his efforts to ment, prevent accidents. Great care should be bosses, and exercised in choosing superintendents and **^"^®^*^- bosses, and among other things to infuse into them the earnest desire of the management to avoid accidents. The safety of employees depends in a large measure upon the sincerity and the earnestness of those performing managerial duties. Every factory regulation should be carefully followed, and every precaution to avoid accident should be taken by every superintendent and boss. This conduct on their part will be reflected in the conduct of the workmen. The caution exercised by those in author- ity will unconsciously be imitated by the workers, and 274 ECONOMICS OF EFFICIENCY will be a strong factor in instilling habits of caution and carefulness. Sickness, accident, and death are three grave realities that the average business man is ill prepared to meet. The presence of any one means increased costs Emergency ^^^ ^-j^q temporary lowering of industrial effi- ciency. It pays not only to take precautions to prevent the occurrence of accidents, but to provide facilities for prompt and proper treatment if they should occur. One of the best-paying rooms in a business plant is the emergency room for furnishing first aid to the injured. It pays in a plant employing several hundred hands to have a thoroughly equipped emergency room and to have in attendance a trained nurse. If the fac- tory is small, a room thoroughly equipped to mpor ance. pj-^^-^g ^j.g^ ^^^ ^^ ^^le injured should be pro- vided, and a number of men trained to give first aid. There should be at least two men in each department who have received training in giving first aid, so that whenever an accident occurs, aid will be near at hand. A great amount of knowledge is not necessary to become expert in giving first aid. A competent medical doctor Giving first should be engaged to instruct a selected corps aid to the to give proper assistance in case of accident, injured. ^ fg^ Icctures on the human body, and how to treat hemorrhage, bleeding, fracture, and insensibihty, what to do for sprains, burns, and scalds, and how to remove the sick and the injured, provide the necessary training and knowledge to quahfy to give first aid. The names of the men chosen in each department and trained should be placed in prominent places in the department. Illustrated lectures on giving first aid should be given occasionally, and all workers should be compelled to attend. With slight cuts and bruises, the treatment given by the trained men will be the only treatment ACCIDENTS 275 necessary, but in the case of a serious accident, the first thing to do is to send for a doctor, and in giving first aid, nothing should be done that should be done only by a doctor. An emergency room is an absolute essential in every plant. If one is not installed, no time should be lost in doing so. The expense of installation will Equipment soon be defrayed by the advantages which it of emer- gives. The room should be fitted out with ^^^^^ ^^°^' the latest apphances and conveniences for giving assist- ance in case of accidents. A bed, a movable stretcher, cushions, glass cabinets completely equipped with medi- cines, instruments, cones for etherizing purposes, band- ages, plasters, needles for sewing up wounds, cocaine, absorbent cotton, and everything to apply when aid is necessary, until the physician arrives. The room should also be furnished with heat, electric or gas light, and run- ning water. When the doctor arrives, no time is lost in preparing the patient for removal to his home or hospital, and the doctor is not delayed in looking for apparatus which might be needed in caring for the injured. Cases of sterilized bandages should be placed in con- venient places in various parts of a plant, but when- ever possible, the injured person should be treated only in the emergency room. Certain wf.^*^«„x •^ . T 11 -n 1 jars in plant. cases may arise when bandages will be neces- sary at once and before removal. In every case, extreme care should be taken to prevent infection, and every in- jured person, it matters not how slight the injury, should be treated whenever possible, in the emergency room. Even a slight cut or scratch should not be neglected, and the person should go at once and receive proper treat- ment. It is not unusual to find some of the best me- chanics absent for several days as a result of infection caused by slight cuts or bruises. A properly equipped 276 ECONOMICS OF EFFICIENCY emergency room with an efficient man in giving first aid prevents such absences, and the loss of work which might result from men being laid off repays several times the cost of installation. Good medical attendance hastens healing and saves many a worker from losing time. Proper attention to Gains from bad wounds frequently saves hands, fingers, medical and feet. An injured person should be re- attendance, quired to avail himself of the facilities provided for treatment of injuries. Slight injuries and bruises which in the past were neglected, are in the progressive plant given careful attention. Business men are more and more reahzing that money expended in providing treatment for the injured is not only the best kind of investment, but essential in an efficient plant. Immediate attention to all injuries saves much suffering, many limbs and fives, and much money. Men engaged in hazardous occupations should undergo careful medical examination at least once a month. If Health of ^^^^ ^^ strictly followed, it prevents many workers in accidents. Workers with weak nervous sys- hazardous tcms, run-down health, or over-fatigued lose a occupations. ^^^.^^^^^ amount of control over their muscular action, and are more subject to accidents. If any of the foregoing causes are found, workers so impaired in health, and engaged in hazardous work, should not be allowed to continue their present work. A rest of a few days with a prescription usually restores the health, steadiness, and the former efficiency of the worker. No person under legal age should be employed in a plant. Where age limitation is not provided by statute, Employ- ^^ person under sixteen years of age should be ment of allowed to operate any power machinery, and ciuidren. where close attention is required and hazard comes into the operation, eighteen years should be the ACCIDENTS 277 minimum age. The employing of children and youths to do work which they are not physically or mentally able to do should be avoided, because their youth and in- experience endanger themselves and make them dan- gerous to other workers. The old saying that an old head cannot be found on young shoulders applies to the fullest extent in the operating and the attending of machinery. Accuracy, precision, alertness, caution, and discretion, prerequisites of safety, are the acquirement of maturity, and cannot be relied upon to any great degree in childhood or youth. It is inconceivable that our complex industrial organi- zation can be conducted without some accidents and some fatalities. Many of our accidents are solely j^^, ^^ the result of conditions beyond human control, state to and inseparable from the ordinary course of protect existence, but thousands upon thousands of ^°^ easily preventable accidents occur each year, and it is from these that workers should be protected. It is self- evident that in the field of industrial activity, the indi- vidual cannot protect himself, and it is the duty of the state to step in and protect him. Every one knows that the average plant is more safe than it was a decade ago. Many plants with their safely protected dangerous places, and precautions taken to protect workers from harm, are equal to the safest protected plants of Germany. But there are thousands of employers who are still indifferent to safety devices, and that is one of the reasons why we should have strict and severe laws. Statutes should be prepared under expert advice and should make employers and makers of machinery responsible for the guarding of dangerous parts and appliances which they use or manu- facture. The law should provide an efficient factory inspection department which should be a division of the labor de- 278 ECONOMICS OF EFFICIENCY partment. The number of inspectors should be sufficient to allow thorough inspection of plants, and hTspeSon ^^^ P^^ large enough to get competent men to perform the work. The inspectors should be appointed on merit and be under civil service. The law should insist that all existing factories and every new factory be registered with the factory ^^cTed?^" inspection department, and that employers report to the department every accident, the machine or appliance involved, cause, hour of the day, number of hours the person had been working, age, sex, length of time engaged in the particular work, and the precautions taken by the employer to protect from accident. There are two systems of dealing with employers' Habihty for injuries from accidents. The first, which Systems of formerly prevailed in all industrial countries, employers' but which now Only survives in certain states UabUity. Qf ^]^g United States, is the law of tort, or the master and servant principle of the law of negligence. This harsh common law rule is that no damages are pay- able when an accident is caused by the fault of the in- jured workman, or of a fellow servant, or by the unavoid- able risks of the employment. It is very unjust to em- ployees, and a travesty upon justice in this enHghtened age of ours. All industrial countries except some of our states have recognized the injustice of this law, and have passed statute laws aboHshing the old master and servant principle when deahng with industrial and other acci- dents. The principle originated in primitive times of industry, and is impractical and unjust in any advanced industrial system. It is antiquated and savors of the days of primitive industry. The second system is that of compensation, which in- cludes both ordinary compensation and its complex form, ACCIDENTS 279 compulsory insurance. In its simplest form, it is a liabil- ity to pay compensation for injuries from ac- compensa- cidents to employees, with an added legal obli- tion in gation to insure its payment. This is the only accidents, just way of deaHng with compensation for accidents, and it is surprising that America, one of the most enlightened countries of the world, should be so backward in passing legislative acts enforcing this method of payment. En- forced payment for injuries and death due to accident will more than anything else induce the employer to adopt better safety devices. It is essential that the re- sponsibility of the employer be fixed, and that compensa- tion be certain without expensive litigation. Every accident incurring suffering should be fairly and promptly compensated for, without having to wait for delays and uncertainties of the courts. The certainty of respon- sibiHty fixed with the employer, and the certainty of compensation fixed with the employee, will make the employer more anxious and cautious to provide safety devices to protect his employees. The compensation provided should cover all injuries irrespective of em- ployer's or employee's negligence except where injury is self-inflicted. The compensation should be fair and just to both employer and employee, and the machinery of awarding should be simple so as to avoid unnecessary delays and expense. Workers appreciate measures taken to protect them, and respond by taking a better interest in their work. The fact that they no longer have fear of Effects of getting hurt and getting no compensation is a safety de- factor working towards greater efficiency, vices on Actual tests have shown a marked increase in ^°^ ^'^* output on safeguarded machines due to natural speeding of workers who are relieved of the fear of accident. It stands to reason that if a worker is compelled to divide 28o ECONOMICS OF EFFICIENCY his attention between the fear of coming in contact with dangerous moving machinery and his work, that if he is reheved of the first, he will prove more efficient by giving his entire attention to the latter. Accidents are costly to the employer in the amount of money paid to the injured employee, and in loss of time and output. Em- ployers should be made to reahze the importance of acci- dent prevention from the side of waste and increased cost and as soon as this is made clear to them, the great battle for accident prevention will be won. The important measures necessary to minimize acci- dent risks may be summarized as follows : First, the pro- Ne essar viding of machinery and equipment with safe- measures guards, and the making it almost impossible for accident for a worker to be caught or injured by a piece prevention. ^£ machinery or apparatus. Secondly, the careful instruction of workers to inculcate habits of caution and to know how to avoid dangerous places about a plant. Thirdly, the providing of effective rules, signs, bulletins, and illustrated lectures, which constantly re- mind workers of dangerous places, and the enforcing of strict discipHne in carrying out all rules and instructions. Fourthly, the provision of means for promptly caring for any who may be injured, through establishing emergency rooms and first aid to the injured service. Fifthly, the passing of legal statutes compelHng every employer under severe penalty to equip machinery and working places with every practical safety device it is possible to secure. Sixthly, the provision of adequate accident compensation to the injured in case of accident. You cannot find a single employer who has installed accident prevention devices, estabhshed an emergency room and first aid to the injured service, and made provision for the careful instruction of employees, who will say that money so expended is not well expended, and that it does not pay. ACCIDENTS 281 QUESTIONS 1. What are the different classes of accidents? 2. What is the relation between accident prevention and efficiency ? 3. Mention various causes of accidents. 4. What remedies would you suggest to overcome ignorance and carelessness ? 5. What precautions should be taken to prevent accidents in case of fire ? 6. What is the relation between the use of alcoholic drinks and accidents ? 7. What is the relation between fatigue and accidents ? 8. What parts of machinery should be safeguarded? What precautions should be taken to prevent safeguards being removed ? 9. What is the proper time for providing safeguards ? What statute law is necessary to have them provided at that time ? 10. What precautions should be taken in oiling and cleaning moving machinery ? 11. What are the different methods of protecting the eyes from accidents ? 12. What is the importance of an emergency room and first aid to the injured jars ? 13. What precautions should be taken in the employment of children ? 14. What are the requirements of efficient factory inspection ? 15. What is a safety museum ? How should it be conducted ? REFERENCES Books Bureau of Labor Statistics, Washington, D. C, Bulletin No. 78, "Industrial Accidents"; G. L. Campbell, "Industrial Accidents and Their Compensation" ; C. W. Dulles, "Accidents and Emer- gencies"; C. Eastman, " Work- Accidents and the Law"; F. L. Hoffman, "Industrial Accidents in the United States," Encyclo- pedia of Social Reform ; Independence Inspection Bureau, "Acci- dent Prevention," Bulletin No. 10; "Industrial Accidents in Illinois," Bulletin of Illinois Bureau of Labor Statistics, 1907 ; "Industrial Accidents in Canada," Report of Department of Labor, Canada, 1 907-1 908 ; Law and Newell, "The Prevention of Indus- 282 ECONOMICS OF EFFICIENCY trial Accidents"; D. D. Lescohier, "Industrial Accidents and Employers' Liability in Minnesota," Chs. I, II; "Live Articles on Industrial Safeguards," The Weekly Underwriter; M. O. Lorenz, "Industrial Accident and Employers' Liability," Report of Wisconsin Bureau of Labor, 1907; W. H. Tolman, "Social Engineering," Ch. IV; Tolman and Kendall, "Safety," Part I, Part II, Ch. XXIV; T. D. West, "Accidents, Their Causes and Remedies"; D. Van Schaak, "Safeguards"; D. Van Schaak, "Woodworking Safeguards." Articles "Accidents in the Machine Shop, Suggestions and Rules for Their Prevention," Machinery, Vol 18, pp. 188-191 ; M. C. Albright, "When Accident Prevention Pays," Factory, Vol. 12, pp. 28 + ; M. C. Albright, "When Accident Prevention Prevents," Factory, Vol. 12, pp. 142 + ; M. W. Alexander, "The Economic Value of Industrial Safety," Proceedings of the First Cooperative Safety Congress, pp. 204-211; Atkins and Edwards, "Work- Accidents and the Employer," System, Vol. 20, pp. 41-45 ; G. L. Avery, "Making Accidents Teach Safety," Factory, Vol. 11, pp. 431 + ; L. D. Burlingame, "Factory Safeguards, "Human Engi- neering, Vol. 2, pp. 56-68; J. Calder, "The Mechanical Engineer and Prevention of Accidents," Machinery, Vol. 17, pp. 550-552; J. Calder, "Manufacturers and Industrial Safety," American Machinist, Vol. 36, pp. 273-275; John Calder, "Scientific Acci- dent Prevention," American Labor Legislation Review, Vol. I, pp. 14-24; W. H. Cameron, "Accidents to the Eye and How to Prevent Them," Proceedings of the First Cooperative Safety Con- gress, pp. 298-300 ; R. W. Campbell, " Safety in the Iron and Steel Industry," Proceedings of the First Cooperative Safety Congress, pp. 279-291; R. W. Campbell, "How to Organize for Safety," Factory, Vol. 12, pp. 127-128 ; C. L. Chute, "Industrial Accidents, a Problem of To-day," Review of Reviews, August, 1910; W. I. Clark, "First Aid in Shop Injuries," American Machinist, Vol. 38, pp. 320-322; A. Cotter, "The Conservation of the Worker," Engineering Magazine, Vol. 45, pp. 489-505 ; J. H. Crabtree, "Reducing Factory Accidents in England," Factory, Vol. 11, pp. 113 + ; E. T. Davis, "Safety Inspection in Illinois," American Labor Legislation Review, Vol. I, pp. 81-101 ; W. M. Doolittle, "Inspection for Safety," Human Engineering, Vol. 2, pp. 56-68; J. B. Douglas, "Accident Prevention," Scientific American Sup- ACCIDENTS 283 plement, Vol. 76, pp. 232-234; H. W. Forster, "Accident Pre- vention," Stone and Webster Public Service Journal, Vol. 14, pp. 182-189; G. Gilmour, "Safety Engineering," Scientific Amer- ican Supplement, Vol. 76, pp. 36-39; C. M. Hansen, "Industrial Accidents," Southern Machinery, Vol. 31, pp. 82-84 ; F. R. Hutton, "Prevention of Industrial Accidents," Machinery, Vol. 18, pp. 600- 603 ; D. D. Lescohier, "Accident Records in Minnesota," Ameri- can Labor Legislation Review, Vol. I, pp. 1 18-125; M. W. Mix, "Education in Accident Prevention," Proceedings of the First Cooperative Safety Congress, pp. 219-223 ; C. Sandburg, "Train- ing Workers to be Careful," System, Vol. 24, pp. 124-132 ; R. J. Young, "Practicable Safeguards," American Labor Legislation Review, Vol. I, pp. 25-44. CHAPTER XIII Fire Prevention The elimination of wastes of energy, time, and ma- terials has attracted considerable attention, and some Preventing progress has been made in its accomplishment, waste but the question of preventing waste through through fire ^j-g prevention has received little attention, preven ion. p.^^ prevention should be an important factor in every business, and it often has an important bearing upon costs and efficiency. During the years between 1881 and 191 2, the total value of property destroyed in the United States by fire amounted to $5,364,578,199. The fire from^fire losses have increased steadily year after year in greater proportion than the growth of the population. The property loss from fire in 1875 was ap- proximately $78,000,000; in 1885, $102,000,000; in 1895, $142,000,000; in 1905, $165,000,000; in 1911, $217,000,000; in 1912, $225,000,000; and for the first nine months of 1913, $1,026,900 greater than for the first nine months in 191 2. Between 1900 and 1 910, the population of this country increased by 73 per cent, while the fire loss increased by 134 per cent. Eurooe and '^^^ P^^ capita loss from fire in the United United States greatly exceeds that of any foreign coun- states com- try. During the year 191 1, the per capita loss ^^^^ ■ in this country was $2.62 ; in Italy, $.31 ; in Germany, $.21 ; in France, $.81 ; and in England, $.53. During the same year New York City had 324 fires for 284 FIRE PREVENTION 285 every hundred thousand people ; London, 67 ; and Paris, 152. London in 191 1 had 4455 fires, but its losses were only one fifth of those in New York, while those of Paris were one ninth. According to ex-Chief Croker of the New York Fire Department, Cincinnati, Ohio, has lost from fire $2092 worth of property every day for fifty-eight years, or a total loss of $44,685,977. During 191 1, five cities in this country had fire losses greater than $15 per capita, and nine greater than $10. In addition to this great loss of property, 1500 persons on the aver- age lose their lives annually in fires, and nearly 6000 more are injured more or less seriously. The great difference between the fire loss in Europe and in this country is the more striking in that their fire-fighting equipment is inferior to ours. Reasons for Chicago has a far more efficient fire-fighting excessive equipment and force than Paris, France, yet ^^^ losses, the fire loss in Chicago in 1907 was $1.34 per capita, and in Paris it was only $.47. We excel the world in fire fighting, yet our losses per capita are several times greater than any country in Europe. The only reason for this is that we are backward and lax in our methods of fire prevention. Fire prevention is simply making Hfe and property safe against destruction by fire. Ex- Chief Croker declares that at least 50 per cent of our great loss in property and human life is preventable and is directly due to inexcusable carelessness. Much has been learned about fire prevention, but the knowledge is not used by the average person. Little is done in the case of fires to ascertain the cause, so that the knowledge obtained may be of use in preventing future fires. Prevention is better than cure in fire fighting. Em- ployers should be made to reahze that it pays to take fire hazard into consideration, and to adopt every means known to modern science to guard against fires. 286 ECONOMICS OF EFFICIENCY The losses due to destruction of property do not in- clude those to employees from being thrown out of em- insurance ployment, nor those arising from stoppage of does not business activities. Many employers seem to cover total think that the only thing to do to protect °^^* themselves against loss from fire, is to keep insured. Insurance may cover material loss in buildings, machinery, and stock, but there is in the case of fire a loss to a going concern more or less serious which insur- ance does not cover. The most disastrous losses from fire are frequently those coming from stoppage of pro- duction, disorganization of business, and delay in filHng orders. Insurance can never cover a loss of business. Fire loses the trade of customers, who must be steadily suppHed with goods or they will go elsewhere, and fre- quently do not come back when the business has re- covered from a temporary cessation as a result of fire. It is good business to pay particular attention to provide in every way for fire prevention rather than depend upon remuneration by insurance for loss. People proclaim this an age of conservation. Much has been said and written about the great wastes of Many fires material resources, and what should be done are pre- to protect and conserve the gifts of nature, ventabie. j^ ^g surprising that so Kttle has been done to prevent destruction and waste of material wealth by fire. The waste is enormous, and when we realize that a large part is preventable and due to carelessness, our negligence appears to be almost criminal. This fact alone would make fire prevention an important factor in efficiency. Losses frequently go beyond the individual plant Losses be- Suffering from fire loss, because often one or yond plant more plants depend upon goods produced by of fire. ^Yie plant to maintain production, or, on the other hand, one or more may largely depend upon goods FIRE PREVENTION 287 consumed by the plant to keep them running at full capacity. Whatever prevents plants running to full capacity affects efficiency, and, at the same time, costs of production. Any fire of any consequence in a pro- ducing enterprise has a direct bearing upon production, and productive activities are always to a greater or lesser degree impeded. Fire prevention is therefore an im- portant factor working towards efficiency, and has an important bearing upon maintaining a high efficiency. No treatise upon efficiency is complete without a more or less careful study of fire prevention. The problem of fire prevention may be divided into three parts, — preventing the origin of fires, putting out fires after they occur, and preventing the Divisions spread of fires. The first is the most im- offirepre- portant to the American people. The subject mention, of fire protection and prevention does not alone concern the producer, but it is of the greatest concern to every man, woman, and child, because fire makes no discrimi- nation, and its devastations are felt by every one whose interests in one form or another come within its destruc- tive path. The second and third, although important and essential, are vastly less so than the first. Preven- tion is better than cure in fire fighting, but very few men act on this principle. To understand the precautions for fire prevention, it is necessary to know something about the phenomenon, fire. Fire results from the mixing of a gas called oxygen with things. Oxygen is color- ^f^l^^*^^ less and odorless, and with another gas called nitrogen forms air, which is composed of one fifth of the former and four fifths of the latter. Scientists tell us that oxygen makes up more than one half of the earth, and that every living creature must have oxygen to live. Combustion is the process whereby substances or individ- 288 ECONOMICS OF EFFICIENCY ual constituents combine with oxygen and become oxi- ^ ^ ^. dized with the Kberation of heat. Decompo- Combustion. •^- • i i, ^' r^ •.• sition IS slow combustion. Oxygen umtmg with carbon produces heat, and if the union is rapid and in large enough quantities, the combustion becomes visible in flame and is called fire. If the union is slow as in the decay of organic bodies, the heat escapes unnoticed. An article must be raised to a certain temperature before it can burn. The presence of certain substances increases the rapidity of oxidation and the amount of heat given off, and as soon as the degree of heat needed for flame is reached, fire results. Spontaneous combustion, or a substance taking fire of its own accord, is very mysterious to the average man. During every year, this is the cause of many comb*ustion^ fires. The phenomenon is possible without the assistance of any external heat, and this is the mystifying part of its occurrence. Spontaneous combustion, chemists claim, is the result of various processes, but the most frequent one is the chemical process whereby substances combine with the oxygen of the air. Take for example a piece of cotton. It is porous and is filled with a great quantity of oxygen. A slight spark will cause instant bursting into flame. Add to the cotton saturated with oxygen, animal oils also loaded with oxygen, oxidation takes place at a more rapid rate, and as a result more heat is produced. The heat becomes more and more intense until the point of igni- tion is reached and flame bursts forth. Saturate a piece of cotton with animal oils, and if conditions are favor- able, it will burst forth into flame in a comparatively short time. Fibrous, porous, and finely divided materials favor spontaneous ignition because they are always saturated with oxygen. When these are brought in contact with FIRE PREVENTION 289 oils or fats saturated with carbons and oxygen, the tend- ency to spontaneous combustion is greatly increased. The oxygen-saturated oils and condSons. fats scattered over a large surface increase the rapidity of oxidation and the production of heat. The heat becomes more and more intense until the point of ignition is reached, and then flame bursts forth. This is a most favorable condition for spontaneous combustion, and explains many mysterious fires in the cotton mills of New England. Thus is seen the danger in allowing oil- soaked materials to collect in out-of-the-way places, or in any place in a building. Although water is a fire destroyer, yet under certain conditions a small amount of it may assist in producing spontaneous ignition. Dampness in many Danger of substances increases the rapidity of oxidation dampness in and heat production. Damp hay or grain "^^tenais. stored in a barn favors oxidation, and frequently the heat produced is sufficient to raise the temperature to the point of ignition. Piles of wet excelsior, rags, straw, etc., produce favorable conditions for spontaneous combus- tion. Many a fire in home and in plant is caused in this way, and is due to carelessness in allowing wet rags to collect in closets, cupboards, cellars, etc. Spontaneous combustion may occur in any inflammable material which is subject to oxidation, and moderate moisture and warmth encourage it. The principal causes of fire are, according to experts, rubbish heaps, lighted matches, cigars, cigarettes, and exposed gas jets. Rubbish and wastes of all kinds are great fire hazards in every factory, q^^^^^ ° store, or home. Cleanliness is therefore a first requisite in fire prevention, and there is nothing that is so dangerous as an accumulation of rubbish of any sort. Many are the places about a store, factory, or house that 290 ECONOMICS OF EFFICIENCY collect rubbish. The best way to keep rubbish from be- coming a fire danger is to have no rubbish, and to keep places where rubbish accumulates entirely clean. Cuttings, wastes, and rubbish should be deposited in fireproof cans, and removed at rubbish ^^^ ^^^ ^^ ^^^^ working day. The disastrous Triangle Waist Company fire, causing many deaths, was caused by a lighted cigarette being thrown into a pile of cuttings. A few dollars provide fireproof cans for all kinds of rubbish. The compulsory placing of all rubbish in such cans and their emptying at the end of each working day greatly decreases fire hazard. In a factory or store where more or less cuttings and rubbish find their way to the floor, and are likely to be cast into out-of-the-way places, the em_ployment of a boy to keep the floors clean decreases the fire hazard. Extreme care should be taken in looking after discarded oily wastes of all kinds. Employees should be carefully instructed in the great hazards of their presence ^u ^wastes ^^ ^ factory or store. Oily wastes, greasy rags, wiping rags left by painters, greasy lunch papers, should never be thrown aside, but extreme care should be taken to see that all are placed in fireproof cans with self-closing covers. All oxidize very rapidly, and spontaneous combustion is likely to follow. Many fires start from throwing greasy wastes or rags into cut- tings or shavings. Frequently oily or grease-soaked clothes are allowed to hang on wooden partitions instead of in fireproof, well-ventilated lockers. All ^Mhin^ lockers, and especially where they are to con- tain oil-soaked, greasy clothing, should be fire- proof, and such clothing should never be allowed to be left except in the proper places. Such clothing is favor- able to spontaneous combustion, and the condition be- comes more favorable if the room were to become very FIRE PREVENTION 291 humid. Many an unknown fire, if the real cause could be known, could be traced to the presence of oily or greasy wastes, rags, or clothing being carelessly cast aside about factory or store, and spontaneous combustion following. Extreme care should be exercised in the handling and the using of all liquids or materials which are highly inflammable. If it is necessary to keep any inflammable quantity on hand, it should be allowed only liquids and in fireproof supply rooms, and only enough ^^atenais. should be taken out to last for safe periods of time. If artificial light is necessary, electricity should be used, and under no condition should exposed flame be allowed. If the workers handle quantities of inflam- mable materials, fireproof tables should be used and no cuttings or rubbish of any kind should be allowed to collect. Many people make a mistake in using sawdust in pans to catch oil drippings, or in spittoons. Either prac- tice is very dangerous in any place. Sawdust Filling for soaked with oil may at any moment spring spittoons into flame, and sawdust dampened with water ^^^ °^ p^^^- is also very favorable to spontaneous combustion. Sand should be used instead of sawdust, and then no danger lurks in pan or spittoon. GasoKne, naphtha, or other volatile oils should never be stored in buildings. They give off highly inflammable vapors, which, if mixed with air in the right proportion, form explosive gases that very readily ignite. A person cannot be too cautious in the using, handhng, or storing of any highly inflammable substance. There is a twofold danger. One is the dan- ger of fire, and the other, the sudden bursting into flame under favorable conditions, frequently causing explosions, accidents, and sometimes the deatl? of people in the near vicinity. 292 ECONOMICS OF EFFICIENCY Matches carelessly thrown about are the cause of a great many fires. No match should be manufactured that will strike upon any place except the box. Matches thrown carelessly about are often carried by rats or mice to their nests. These rodents like to nibble at the tips, and this nibbling fre- quently causes ignition and fire. Ex-Chief Croker de- clares that more destructive fires are chargeable to the parlor match than to any other cause. Mr. McKeon, the well-known fire expert, states that there is only one safe rule for matches, and that is, use only safety matches, the kind that have to be struck on the box to be lighted. A match falls from the clothes of a worker to the floor, and is lost amidst cuttings and wastes. A person by chance steps upon the tip, and if it is not a safety match, it ignites and a disastrous fire may result. Many a serious fire has its beginning under similar S^handSig circumstances. In the modern business house or factory, it should not be necessary to use matches, but if matches are needed to light the gas, they should be placed in a fireproof box near where needed, and not be carried by workers. Pipes or matches should not be carried by workers while in a factory or store. Workers should have a place at the entrance of place of work to leave their pipes and matches. This should be enforced by rigid discipKne, and if matches are found on a worker in the place of work, severe punishment should follow. One of the most frequent causes of fire is smoking. Smoking should be prohibited in every factory or store. In the majority of factories and stores, in spite of posted prohibitions and verbal instructions not to smoke, smoking goes on all the time by superin- tendents and employees. The members of the Factory Investigating Commission of the State of New York in FIRE PREVENTION 293 their report state that considerable smoking was found in nearly all of the buildings visited, and frequently the proprietor or superintendent would be smoking while showing the estabHshment to the inspectors of the Com- mission, and that smoking employees, seeing their ap- proach, would sometimes throw a lighted cigarette underneath tables and in corners where rubbish and scraps might easily have started a blaze. Some even go so far as to claim that it is impossible to pro- hibit smoking. The working force should be °y **J • ,- •I'll prevent. mstructed m the great risks mvolved, not only to property but to Hves, in allowing smoking in a place of work. Strict rules should be made, and penalties should be so drastic to the one who dared to break the rules, that smoking would soon be impossible. Hot ashes are responsible for many fires. Many have the bad habit of dumping ashes on the floor and allow- ing them to accumulate for several days before removing. The ash pile in the meantime be- comes the common dumping ground for wastes of dif- ferent kinds. Ashes should not be allowed to be piled on the floor, or kept in barrels or wooden boxes, but should always be kept in closed carrfor metal cans. They should not be allowed to be kept in buildings even over night, but should be removed from the premises as soon as collected. Many fires occur annually from not properly pro- tected gas jets. All jets in factories and stores should be inclosed by globes, wire cages, or otherwise _ . properly protected. Gas jets should be rigid, or so arranged that they cannot swing against woodwork or other combustible material. If the distance be- tween gas jets and a combustible ceiling or combustible material is less than three feet, there should be provided a heat deflector, preferably in 294 ECONOMICS OF EFFICIENCY the form of a metal bell, which should be suspended over the jet at least four inches from the ceihng or material exposed. Even with a heat deflector, the gas jet should not be less than eighteen inches from inflammable ma- terial. All combustible materials on walls behind gas jets, and within one foot, should be protected preferably by a sheet of asbestos-board and tin with an air space. In no case, even where a shield is provided, should a gas jet be less than eight inches from combustible material on walls. Rubber tube connections should be avoided wherever possible, and if it must be used, the gas should be turned on and off where the tube joins the gas pipe, and not at the burner. The use of mantles and in- closed burners is safer and preferable to ordinary tips. If the smell of gas is detected, open doors and windows, and do not look for a gas leak with matches or exposed lights. If the oil lamp is used, many precautions should be taken. Care should be taken that the lamp is always safe from being knocked over. Lamps should ouiamp. always be filled during dayhght, and never while burning, and those burning gasoHne or naphtha should not be allowed in factory, store, or home. The best grade of kerosene should be used, and it never should be used to start fires. Faulty insulation and imperfect wiring cause many fires. When electric Hghting is installed in factory, store, or house, the wiring should be such as com- i^'wki'ng°''' P^i^^ wi^^ ^^^ regulations of the National Board of Fire Underwriters. Wiring is a true source of danger if not properly installed, but it is per- fectly safe if properly done. Careful inspection should regularly be made, and deterioration should not be allowed to go too far before renewing. Incandescent electric light bulbs should not rest on combustible ma- FIRE PREVENTION 295 terials, and the latter should not hang or be draped over the former. The heating of factory, store, or home is either by gas, electricity, hot water, steam, hot air, or stove. In each case, precautions should be taken, or fire hazards will exist. The gas stove is used ^aSi°g^,^°^ more extensively for heating purposes in the house than in factory or store. Gas stoves, if used, should have legs or stands to keep the burners above the base of the stove, but if less than a foot from combustible material, a heat shield should be used. Iron piping should be used for all connections, as rubber tubing wastes gas, catches fire easily, and, by leaking, causes explosions. The same precautions should be taken when wiring for electric heating as for fighting. The electric heater should not be nearer than a foot to woodwork or combustible material, heater ^ If nearer, a heat shield should be used, and in no case should a space of less than eight inches exist. Pipes for carrying hot water, steam, or hot air should be properly protected when installed. Those running underneath floors should be properly covered gteam hot with non-conducting materials. Many fires water, and are traceable to contact of steam pipes with ^°* ^ floors, ceifings, and partitions. If pipes run ^^ ^^' in concealed parts, there should be proper ventilation, and in every case it should be possible to inspect, and inspection should be careful and frequent. SmaU pipes for feeding radiators should have a clear space of two inches from wood or combustible materials, and one inch if a shield is used. When pipes pass through ceifings, or floors, there should be metal sleeves or tubes at least an inch larger than the pipe. A tight collar should be next the floor or ceifing to prevent dust or rubbish from get- ting into the opening. 296 ECONOMICS OF EFFICIENCY Many owners of small factories and stores still use the wood or the coal stove for heating purposes. All stoves should be placed on legs or stands to keep Wood and them from the floor. Underneath every stove, coal stoves. , i 1 i i • i • • there should be a galvamzed iron, zmc, or sheet iron covering, and this should extend beyond the front to catch any coals that might by accident drop. At least three feet of clear space should exist around stoves, but if not this distance, metal shields should be used. These shields should be at least one inch from combustible material, so as to allow an air space for heat to circulate. Wood in contact with hot-air or steam pipes will char, and then take fire rapidly, and if condi- tions are favorable, may ignite spontaneously. Wood within two feet of such pipes should be protected, if pos- sible, by heat shields with air space. A few inexpensive precautions remove many fire hazards, and if all would see that such were used, there would be several thou- sand less fires every year. Stovepipes should run directly from the stove to the chimney, and should not go through floors or partitions. In case they do, extreme precaution should be stovepipes. ^^-^^^ ^^ protect by heat shield and air space. All chimneys should be inspected regularly and kept clean. Stovepipes should be spark-tight, and sections should fit tightly into each other by at least three inches. Every pipe should enter the chimney horizontally, but should not enter so far as to choke the flue. It is advis- able to have one or more turns in a pipe before entering a chimney, because bends and turns are needed to kill sparks. Many of our factory and store buildings have open spaces under floors, behind walls, and over the Dangers in (.gjij^sfs. These concealed spaces form excel- open spaces. f> ^ 1 • . lent hiding places for rats and mice to roam, and build their nests. Holes in floors allow cuttings FIRE PREVENTION 297 and wastes to collect, and holes in ceilings and walls per- mit the collecting of dust. All assist in making condi- tions most favorable for starting fires by spontaneous combustion. Special care should be taken that no hollow construction exists, and every precaution should be taken to keep floors, walls, and ceilings absolutely tight. Regu- lar inspection should be made for nests of rats and mice, and special care should be taken to prevent the collecting of dust, cuttings, and wastes in concealed places. In many factory and store buildings^ a serious fire hazard exists in shafts and openings through floors and ceilings, as stairways, elevators, belt holes, pipe ducts, ventilating shafts, etc. These openings openings^ make it easy for the rapid spreading of fire through a building, and soon getting beyond the control of firemen. Openings should all be closed so as to pre- vent their acting as fire carriers. A sheathed wall is dangerous, as it allows fire to spread rapidly from cellar to roof. Special attention should be paid to floors, walls, and ceilings to keep them absolutely tight, and if such precautions are taken, fire hazard will be greatly reduced. Means should be taken to keep a factory as free from dust as possible. This is imperative, not only as a protective measure to the health of employees, but is in many cases necessary ^^^^^^ ^ as a prevention of fire. Frequently in many factories, the dust is of such a character that a quantity of it suspended in the air in the right proportion forms an explosive mixture. This is true of the dust found in grain elevators, flour mills, planing mills, etc. A slight spark caused by a nail or stone getting into the grinder will ignite flour dust, and cause a disastrous ex- plosion. Frequently small sparks of electricity will be given off of belts, and just sufficient to cause if conditions are favorable the ignition and explosion of dust-laden 298 ECONOMICS OF EFFICIENCY air. Moisture in the air lays dust and materially lessens static discharges from belts, and may be admitted by allowing jets of steam to escape where most of the dust is found. Just sufficient steam should be allowed to moisten the atmosphere, and not enough to cause damage to whatever stock may be in the room. As re- gards belts, Professor M. M. Richter states that coating them once a week with acid-free glycerin attracts mois- ture, and not only gives security against static discharges, but increases the life of the leather. The second part of the problem of fire prevention is controlling and putting out a fire after it starts. Effi- cient control of fire requires prompt discovery, &^^^ °^ prompt application of extinguishing measures, and the provision of retarding or confining measures. For detecting fires, various automatic devices are in use, as well as the old method of employing watch- men or fire patrols. Automatic fire alarms or detectors are operated by the heat of the fire, and ring alarms or give signals to the fire department, or to per- fire^Sarms. ^^^^ ^ charge of a building. The automatic fire alarms, or thermostats as they are called, are of various types, and if well made and properly in- stalled, are of great value in fire detection. The ma- jority are alike, in that they send in an alarm when the temperature in the place which they protect rises sud- denly beyond a certain degree of heat, usually a hundred and fifty to a hundred and fifty-five degrees Fahrenheit. Thermostats are either electrical or pneumatic Electrical • ,• rr^-i . • •> i thermostats. ^^ operation. The great majority are elec- trical, and depend for their operation on the melting or expansion of parts of the mechanism as a result of a rapid rise in temperature to the point of safety. The melting or expansion causes the completion of an electrical circuit, and the electrical current starts in FIRE PREVENTION 299 operation the transmitting mechanism which sends in the alarm. The pneumatic thermostat de- pends upon the melting of a fusible strip of metal used as a connection by which a piston is moved and air compressed, and the resulting pressure starts in operation the transmitting apparatus which sends in the alarm. Thermostats of the best variety give an alarm at a sudden rise of temperature only and this avoids alarms when the area protected gradu- installation ally becomes hot by natural means, as by ofthermo- allowing steam heat to remain on, or through ^*^*^' defects of the heating system. Thermostats are placed in ceihngs at from eight to twelve feet apart, and cover the entire floor space. Care should be taken in their installation in order to provide the proper wiring. A single circuit should not carry more than twenty-five instruments. Circuits should be provided with auto- matic means of giving notice when they are out of order, but this precaution should not prevent careful and con- stant inspection. The wires of the system should be under battery test ; if not, a testing apparatus should be in some part of the building where an employee is con- stantly on duty. A recent development of the thermostat idea is the use of heated air as an active mechanism. Air when heated expands and produces pressure which Automatic is the working principle of this new automatic alarm alarm. The device is simple, and consists of operated by copper tubing of small size which is fastened upon the ceiling of the room to be protected. At the end of the tube is a box containing a detector and a transmitter. The tube is filled with air of the same temperature as the room, and when the latter becomes hot, that in the tube undergoes the same change. The detector is a device whose purpose is to make an elec- 300 ECONOMICS OF EFFICIENCY trical contact, and by this means operate the transmitter. It has a silver-foil diaphragm. When the air is heated, the extra pressure pushes the diaphragm outward, and makes an electrical contact^ which starts the transmitter, and the alarm is sent in. The contact is made only when the silver-foil diaphragm is pushed outward by a certain pressure which comes from a certain amount of heat in the tube. Experts by experimentation discovered that a real fire causes the air in the tubing to increase in tempera- ture at the rate of about four degrees per va/ve^ minute. The detector is set to operate by a rise of temperature of four degrees or more, but if the rise is less than four degrees, no alarm is sent in, because a safety valve or vent prevents it. The safety valve consists of a closed tube with a very small opening. This allows the air to escape as long as it is heated less than four degrees per minute, but if the tem- perature increases at the rate of four degrees or more, the opening cannot let the air escape fast enough, so the expansion causes sufficient pressure on the diaphragm to make an electrical contact, and to start the transmitter in sending the alarm. It makes no difference whether the temperature in the place protected is high or low, because a rapid rise is what operates the device. The alarm will work as well in a cold-storage vault as in a room with a mean temperature of a hundred and fifty degrees. A common alarm is the manual alarm box, which is a simple alarm operated by hand. A chief prerequisite is accessibihty, so that no time will be lost in ^a^r^ box gi^^^S ^^^ alarm. The number of alarm boxes in a building depends upon its area. They should be placed so that in any case no great distance should be traveled to reach one. Manual alarms re- quire testing, which should be thorough, and as frequent FIRE PREVENTION 301 as once a month. The boxes should be painted bright red, have directions posted in one or more languages, if need arises for it, and be so designed that they cannot be used for any other purpose. Another protection against fire is the employment of watchmen or fire patrols who regularly patrol a building during nights and hoHdays, and visit every part at least once each hour. The custom is "^ ^^ to have watchmen in addition to automatic alarms. For fire detection during nights, hoKdays, and Sundays, watchmen are necessary in any factory or building of value. As a guarantee that watchmen properly perform their duties, a system of control has been estabhshed for them. The movements of the watchman are recorded by means of time detectors, and they are absolutely neces- sary to make a patrol system effective. A patrol should be made every hour from the end of the day's business until just before business is again resumed. Special care should be taken in the choice of watchmen. They should not only be men of high character and strictly temperate in every way, but if possible, should be men of some experience in fire matters. Veteran firemen or men who have served as volunteer firemen are best suited, and a few dollars a month should not be considered if a properly quaHfied watchman can be obtained. The general types of instruments for recording the movements of watchmen are the portable watch clock, the stationary watch clock, and the central ofiice system. The portable watch clock in J^J^^ clock appearance is a small alarm clock, and as the name signifies, is carried by the watchman on his rounds. The record is made on a paper dial by inserting a key, the turning of which punctures or embosses the dial. The dial should be large enough to make it possible to determine with accuracy the time at which the record 302 ECONOMICS OF EFFICIENCY is made. A building is divided into a number of stations, and each station has a distinctive key. The paper dial should show the exact hour and minute, and the number of times that each key is used. The stationary watch clock system may be sub- divided into two general classes. The first is one sta- tionary clock in a central location, and the watch^tock second consists of many stationary clocks located in different parts of a building. A stationary clock of the first class is in appearance hke an ordinary office clock. It resembles the portable clock in that it uses a paper record, but it is different in that it is electrically operated. The marking mechanism is a needle point held back of the paper record. The point is mounted on one end of a pivoted lever bar at the other end of which is an electric magnet. When elec- tricity flows through the coil of wire around the magnet, the lever bar is attracted, and the movement forces the point into the paper record. Each station has a sepa- rate marking mechanism connected by wires to a small generator at the station. The generator is a device for producing a current, and is operated by turning a handle carried by the watchman. When a watchman visits a station, he inserts his handle into the mechanism and turns it. This starts the electrical current which marks the time on the dial at the office. If there are several watchmen, each having a separate district, each will have a separate clock, or a separate dial on a large clock face. The second form consists of a separate clock in differ- ent stations of the building. The records of rounds are Separate Ordinarily made by puncturing the dial, which clocks in is usually made of paper, but sometimes the different rccords are made by embossing. Whatever method is used, the marks should be clear and distinct. The puncture or embossing is made by insert- FIRE PREVENTION 303 ing and turning a key. The opening of the door should make by some mechanical means a distinct record on the dial. A precaution should be taken to have the keys of watch clocks of rather an elaborate pattern, so that dupKcates cannot be easily made, and that a key will fit only the clock for which it is intended. The station- ary clock of the first type is more commonly used than the second. The central office system is in use in many large plants. The territory to be covered by watchmen is divided into a number of stations, and each is equipped central with a special kind of signal box, which is office usually worked by inserting a key and ^y^*®^- winding a spring. The spring, on being released, starts in motion a tooth wheel which makes an elec- trical contact with a registering device in the central office. The registering device prints upon a paper tape a mark for each tooth of the wheel in the station box, and the teeth are spaced to correspond to a given number which is a station signal. Each box has a separate signal, and the operator at the central office records the time it is received. In a large factory or store, the cen- tral ofiice system may be conducted by the factory or store itself, but the usual practice is to have it conducted by a special company, who make a specialty of fire detec- tion. Messengers are kept in attendance. When signals do not come at allotted times, they are dispatched to ascertain the cause. The third problem of fire prevention is the applying of fire extinguishers as soon as possible after a fire starts. The most efficient means of rapidly checking the spread of fire, and putting it out in its ^^j-i^^erg. incipiency, is the automatic sprinkler system. Chief John Kenlon of the New York Fire Department declares that the sprinkler is the best single means of 304 ECONOMICS OF EFFICIENCY preventing fires and saving life known to scientific fire fighters. The automatic sprinkler, when properly ar- ranged and systematically inspected, has been described as the greatest economic system of the age. One of the best known experts in fire prevention has declared that fully 90 per cent of the fires in buildings equipped with automatic sprinklers have been effectively held in check or extinguished in incipiency. To obtain the greatest efficiency, automatic sprinklers should be properly in- stalled, carefully inspected, and maintained at the highest point of efficiency. Automatic sprinklers are of many varieties and vary in size, power, and cost. They are devices for shower- ing water on fires at their starting without specific Mechanism human agency. The sprinkler is the mecha- of nism which discharges water upon the fire, sprinklers, j^ holds the water back and turns it on when needed, and in this way resembles an ordinary water faucet. The faucet is turned on by hand, while the sprinkler is started by heat, which makes it auto- matic. Sprinklers are square or circular plates having one or more openings, and are set in pipes in the ceilings of rooms at greater or lesser intervals. The pipes are connected to large vertical pipes, which are supply pipes, and these connect with the source of water supply. The sprinkler head is sealed under normal conditions, so that the water in the pipe cannot escape. When the temperature in the vicinity rises to a certain SSkilr^^ intensity, say a hundred and fifty-five or a hundred and sixty degrees Fahrenheit, the seal is automatically broken. The seal is made of a fusible solder which melts at a fixed temperature. By making the seal of solders that melt at different degrees of heat, sprinklers may be made to begin to operate at any temperature, and many are made for high temper- FIRE PREVENTION 305 atures, as two hundred and eighty-five or three hundred and sixty degrees Fahrenheit. When the seal is broken, the water bursts forth. The head is usually provided with a splash plate against which the water is forced, and this causes it to fall hke a shower. A single head drenches like rain an area of from eighty to a hundred square feet. Sprinkler heads are so dis- tributed in the ceiling of a room that the S^heads^°° water from them covers the entire floor with- out overlapping. The automatic sprinkler may be the means of giving an alarm, and frequently it is the first alarm. Attached to the main supply pipe is an alarm valve which is a device so constructed, that the flow aiarr^^*^*^ of water through it causes the operation of an electric or a mechanical gong. The gong may be either in a central place in a building or in an outside office. The use of both kinds of gongs gives the best protec- tion. Many instances are known where the first inti- mation of fire to a watchman has come from an alarm operated with the automatic sprinkler system. The modest Httle sprinkler, almost out of sight in the ceiling, is a great fire fighter in putting out fires at their start as well as a valuable alarm giver. The automatic sprinkler is an outgrowth of the per- forated pipe sprinkler. This is a system of perforated pipes placed close to the ceilings of the rooms Perforated to be protected. The perforated pipes are pipe connected with supply pipes leading to the spnnkiers. source of water supply. When fire breaks out, the water is turned into the supply pipes, then to the perforated pipes, and by them it is discharged over the area served. The system is frequently used in cellars and out-of-the- way places, where it is difficult for firemen to reach with hose and nozzle. Most cities have strict regulations 3o6 ECONOMICS OF EFFICIENCY regarding the installation of perforated pipes, and specifications and standards to be rigidly followed with the pipes used. A pail of water is the fire extinguisher which is most commonly used. The fire pail is cheap, may be placed anywhere, and its use is understood by every one. The chief objection is that it is used for other purposes, and is not always filled with water. As a result, when needed, it is often empty, and often not found in its place. Fire pails should be placed in con- spicuous and convenient places, always kept filled with water, and never allowed to be used for other purposes. In stores, offices, and other places, people object to the inartistic appearance of rows of pails, painted bright red, and labeled ''Fire." Bucket tanks are used in their place. These are metal or wooden tanks or barrels filled with water, in which are placed several pails. If fire breaks out, the cover is re- moved, and the water is dipped out, to put out the fire. Care should be exercised to see that the tanks are always filled with clean water, and that pails are ever ready for use. Where oil, paints, or inflammable liquids are used, it is well to have part of the pails filled with clean dry sand, because with burning oil, sand is more effective than water. Many devices have been invented for providing ready means for use in case of fire in addition to the ordinary Chemical ^^^ P^-il- The most successful and the most extin- widely used is the chemical extinguisher, guisher. which is a small tank having attached at one end a small hose for the purpose of directing a stream of water. The tank contains about two and a half gal- lons of water in which is placed some bicarbonate of soda, and at the top is suspended a small bottle of sulphuric acid with a loose stopper. When the tank is turned FIRE PREVENTION 307 upside down, the sulphuric acid flows out, mixes with the soda solution, and gives forth carbonic acid gas. The water carries the carbonic acid gas, which greatly assists in putting out flames. The gas performs another function. In keeping the water in the tank under certain pressure, it makes it possible to ope7ate. throw the stream some little distance. Pails of water and chemical fire extinguishers are fire fighters which may be used by every one, and their presence in sufficient and adequate numbers should be found in every factory, store, and office. Chemical extinguishers should be regularly inspected, and recharged at certain periods of time. There are many varieties of small fire extinguishers, as hand grenades, which are glass bottles of chemical solutions to be thrown on the fire, dry powder extinguishers, or tubes filled with bicarbonate of soda which give off carbon dioxide when heated, etc. A protective measure which is more important in a large building than in a small, is the standpipe with hose attachments. A fire standpipe is a line of g^^^^ . ^ pipe to supply water to hose connections at various places along the pipe. In a large building, a number of these pipes is necessary and there should be hose connections on every floor. The hose used should be of standard size and quality, and should be kept folded on racks rather than rolled. The water supply may come from a tank on the roof or from the city system. A tank is always advisable on a high building, but is only temporary until the city fire de- pj.gj.autions partment is able to make connections, and force water up with fire pumps. A standpipe is supposed to be only necessary for high buildings, as it does away with long stretches of hose, but it is equally important in buildings of three stories. Whenever standpipes are installed, care should be taken to get adequate water 3o8 ECONOMICS OF EFFICIENCY supply, and that with sufficient force. The hose and all apparatus used should be regularly inspected and tested. Axes and hooks should be placed in accessible and convenient places on each floor of a building. A third problem is confining a fire or preventing its spread. This has to do with confining a fire to as small a space as possible, and to preventing a building from taking fire from the outside. Buildings are of bSidSgs. two kinds, fireproof and non fireproof. The fireproof building is one with walls of brick, stone, cement, or metal; with floors of cement, stone, or brick; with partitions, ceilings, windows, trim, and doors, of metal or fire-resisting material; and with stairways of stone or metal and inclosed by fireproof walls. These buildings should be supphed with automatic sprinklers, standpipes, and chemical extinguishers. If a fire occurs, it is confined to the floor or room where it starts. If all buildings were so constructed, our fire loss would dwindle to a small frac- tion of what it is to-day. In New York City, and in other places, many buildings are called fireproof which are not. They usually have open stairways, wooden partitions, doors, floors, windows, and trim, and here is where the fire hazard lies. In Europe, practically all city buildings are constructed of fireproof materials. The Consul-general of Vienna reports that there is no case known in that city where fire has extended beyond the building in which it originated, and cases are hardly ever known where fire extended beyond the floor where it started. A fourth problem has to do with the protection of Hfe in case of fire. The ordinary outside fire ofhie^^^^ escape is the usual means provided for escape from fire. Fire escapes should at all times be kept clear of articles and rubbish. Exits to them should FIRE PREVENTION 309 be clearly marked, and passageways should at all times be kept clear. Windows to fire escapes should be large enough to allow a grown person to pass quickly and easily through, and should be made of wire glass. All doors leading to fire escapes or other means of exit should open outward and be fireproof. If sKding doors are used, no obstruction should be placed in the way of their sliding freely backward. Doors and windows should be cut down to the level of the floor and the platform of the fire escape should be also on this level. Outside fire escapes are usually inadequate in case of fire. Employees are not accustomed to their use, and usually do not use them except as a last resort. Fire escapes allow only a slow means of exit, because not being accustomed to cHmbing down, a person moves very slowly. Fire frequently breaks through below the es- cape and prevents flight by this method. Fire experts throughout the country declare that the fire escape is unsatisfactory, should in future be discarded, and other methods adopted. Thousands of buildings throughout the land have wooden stairways open or inclosed with wooden parti- tions. When fire starts, it rushes with great rapidity from floor to floor through these stairways. Dangers in and makes flight by means of stairs impos- wooden sible. The open wooden stairway is a menace staircases, to property and to Hfe. The law should insist that all wooden stairways be removed, and be replaced by fire- proof stairs inclosed with fire-resisting materials. A reasonable safety will then be afforded employees who will be able to descend the stairs in safety. Stairway exits should be distinctly marked, and the passageways thereto should always be clear and unobstructed. The best fire escape for any factory or building is the so-caUed Philadelphia fire tower. It consists of a flight 3IO ECONOMICS OF EFFICIENCY of stairs leading to the ground, and inclosed in a tower of brick or fireproof material. The tower is Sxetower^^ separate and apart from the rest of the build- ing. Its construction should be such that it is absolutely fire- and smokeproof . From each floor there is a fireproof balcony leading to the tower. The tower is the safest and best of all fire escapes. An- other type of fire escape is the outside stairs Outside which are regular fireproof stairs placed on the stairs. outside of a building. They are reached by doors passing out from the various floors, and these should shde or open outward and be fireproof. The fire wall is gaining favor as a protection, and a safeguard to life. The simplest form is to have a fire- . proof wall divide a building from top to bottom into two parts. If a building covers a large area, more than one wall should be built. The doors on every floor should be fireproof and should never be locked. Fireproof walls should be compulsory in every building over three stories, whether fireproof or not. The wall, besides being a safeguard to the lives of employees, is also of great value in confining a fire. An important question in safeguarding life is that of overcrowding. The number of persons which should be allowed on a floor depends upon the exits ^ vercrow - ^^^ ^^^q £re protection, and whether the building is non-fire- or fireproof. The law should be severe in compelling a sufficient number of exits, and should limit very materially the number of people allowed if fire precautions are not used. The number of persons which should be allowed on a floor of any building, where more than fifty persons are em- ployed, should be ascertained by the fire commissioner of the town or city where the building is located. The number should be posted in FIRE PREVENTION 311 a conspicuous place on every floor of the building, and if the number is exceeded, the proprietor should be notified, and if the number is not reduced, he should be severely punished. In factory and ofhce buildings, and in stores, where more than twenty-five persons are regularly employed above the second story, the use of the fire drill „, ^ .„ T? 1 t- ij 1. Fire drill. IS very necessary. Employees should be shown where the stairways and exits are, told which to use, and the means of reaching them. A fire drill is extremely useful in preventing panic at time of fire. The importance of keeping all passageways to exits open and clear should be strongly emphasized. A fire drill should be held at least once every ^° month under the supervision of one of the members of the local fire department. It serves to constantly bring to the mind of the employer and employee the constant pos- sibility of fire, and the necessity of using every possible precaution to prevent it. The employees in a building of more than two stories in height should frequently have their attention drawn to the exits. Illustrated lectures should be occasionally given upon precautions to prevent fire, and what should be done in case of fire. Fire protection is a science in itself. It pays every employer to have his premises regularly inspected by a competent fire protection engineer. Every pij-e pro- precaution should be taken to prevent a case tection a of fire, and every possible means adopted to science, put a fire out as soon as possible after starting, to confine its spread, and to protect occupants of the building. Employers and employees alike play an important role in reducing our great loss from fire. If we could lower our loss to what it is in Germany or Austria, what a great saving would result in material resources and what a benefit to worker and to employer ahke. 312 ECONOMICS OF EFFICIENCY QUESTIONS 1. Compare fire losses in Europe with those of the United States. 2. What are the functions of fire prevention? 3. Give the chemistry of fire. 4. What is spontaneous combustion? Mention favorable conditions. 5. Give the causes of fire. 6. What precautions should be taken in electric wiring? 7. What are the dangers from open spaces? How may they be eliminated ? 8. What is the automatic fire alarm? How should it be in- stalled ? 9. Give a good fire patrol system. 10. What is the automatic sprinkler? What precautions should be taken in installation? 11. Mention various kinds of automatic alarms. 12. What is the chemical fire extinguisher? What precautions should be taken to keep it in good condition ? 13. What precautions should be taken to protect life in case of fire? 14. What is the importance of the fire drill ? How may the fire drill be installed ? 15. What precautions should be taken in the case of fire escapes ? REFERENCES Books J. S. Braidwood, "Fire, Its Prevention and Extinguishers"; E. F. Croker, "Fire Prevention" ; Crosby and Fiske, "Hand Book of Fire Protection" ; J. C. Duncan, "The Principles of Industrial Management," Ch. X ; J. K. Freitag, " Fire Prevention and Fire Protection" ; H. Ingle, "The Chemistry of Fire and Fire Preven- tion," Insurance Engineering Hand Book of Public Safety, Newark, N. J., 1911 ; P. J. McKeon, "Fire Prevention" ; New York State Factory Investigating Commission, "The Fire Problem," Report, 1913, Vol. I, pp. 53-89; H. F. J. Porter, "The Fire Hazard," New York State Factory Investigating Commission, Prehminary Report, 1912, Vol. I, pp. 151-199; The Spectator Company, "Fire Prevention and Protection"; G. V. Steeb, "Agents' and FIRE PREVENTION 313 Inspectors' Pocket Book of Fire Protection"; E. Von Schwartz, ''Fire and Explosion Risks"; J. P. Whiskeman, "The Fire Haz- ard," New York State Factory Investigating Commission, Report, 1913, Vol. 2, pp. 613-666. Articles J. M. Bessey, "Fire Waste," Independent, Vol. 74, pp. 626-631 ; B. Blackburn, "Elevated Tanks for Fire Protective Service," Engineering Magazine, Vol. 44, pp. 385-392; "Chemical Fire Extinguishers," Scientific American Supplement, Vol. 77, p. 139; E. F. Croker, "Practical Fire Prevention," Engineering Magazine, Vol. 43, pp. 373-377; "Electrical Fire Protection," Scientific American, Vol. 109, p. 215 + ; P. Evans, "Fire Waste," Survey, Vol. 26, pp. 496-507; "Fire Protection for Factory Workers," Industrial Engineering, Vol. 13, pp. 411-417; E. V. French, " Control of Fires through Scientific Methods," Scientific American Supplement, Vol. 72, pp. 34-35 ; J. Johnson, "Recent Progress in Fire Prevention and Fire Fighting in New York City," American City, Vol. 9, pp. 203-208; S. G. Koon, "Training the Factory Force to Fight Fire," Factory, Vol. 9, pp. 520 + ; P. J. McKeon, "Standards of Safety from Fire in Factory Buildings," Human Engineering, Vol. I, pp. 125-133 ; H. F. J. Porter, "Taking Fewer Chances with Fire," Factory, Vol. 12, pp. 409 + ; H. F. J. Porter, " Factory Fire Drills," Cassier, Vol. 40, pp. 177-186 ; H. F.J. Porter, "Life Hazard in Crowded Buildings due to Inadequate Exits," Scientific American Supplement, Vol. 76, pp. 2-3 ; "Safeguarding the Factory against Fire," Industrial Engineering, Vol. 14, pp. 15- 24 ; F. P. Walther, "Automatic Sprinkler Protection for Industrial Plants," Engineering Magazine, Vol. 44, pp. 79-90 ; F. P. Walther, "Fire Fighting AppHances for Industrial Plants," Engineering Magazine, Vol. 44, pp. 233-241; F. P. Walther, "Principles of Fire Resisting Construction for Industrial Plants," Engineering Magazine, Vol. 44, pp. 720-736; I. H. Woolson, "Elements of Factory Fire Protection," Engineering Magazine, Vol. 43, pp. 719- 720. CHAPTER XIV Wages The problem of wages has been a perplexing one, and the cause of dissension and strife since man began to Importance work for man. From earliest times, the of the wage chief cause of dispute between employer and question. employee has been what should be paid for labor. With the introduction of the factory system, and the investment of large sums of capital in the industrial field, the wage question caused the opening of a wide chasm between employers and employees. Due to the struggle over wages, trade unions came into existence to protect laborers, and employers' associations were formed for the purpose of carrying on the struggle against labor. The question of what constitutes a fair wage has led to countless bloody conflicts between employers and employees, causing a loss of millions of dollars, as well as much suffering on the part of wage earners and those dependent upon them. During the past year, the struggle between employers and employees over the wage question has been waged more or less bitterly in nearly every industrial country. When one sees the bitterness in many of the recent struggles, it almost makes one believe that the chasm between the two great factors of our industrial system is as wide as it was half a century ago. The question arises, Has any progress been made in making employers and employees realize that their in- terests are not antagonistic but one ? Many answer with- 314 WAGES 315 out hesitation in the negative. I am more optimistic, and firmly believe that during the last quarter of a cen- tury, a great advancement has been made in interests of making employers better understand em- employers ployees and vice versa. Every day employers ^^^ ^^- are realizing that employees are human beings ^ °^^^^ °°^' and should be treated as such, and employees are also realizing that employers are necessities in our industrial system, and should have their rights respected and protected. This reahzation is gradually bearing fruit, and impressing upon both parties the fact that their interests are not antagonistic, but one, and that both should put their shoulders to the great industrial wheel in order to make America what she should be, the greatest industrial country in the world. Employer and employee should meet on common ground, the one willing and anxious to give to labor the share it produces, and the other contented with that share. The two should be brothers in a great industrial brotherhood, and work for each other's interests, and not like two enemies, each stealthfuJly watching every move made by the other, suspicious that it is for exploitation. The wage problem is important with every employer, because upon its successful solution depends efficiency. Efficiency is absolutely impossible with a Requisites working force dissatisfied with its pay. The for soiu- solution of the wage question lies largely in tion of wage the appKcation of a system of wage payment ^^° ^^' that appeals to both parties as being essentially Just, and one that is adapted to the varying conditions of our modern industrial system. It is folly to advocate a standard system, because such is impossible. Frequently several systems of wage payment are found in the same estabhshment, all giving satisfaction and working toward greater efficiency. It cannot be too strongly empha- 3i6 ECONOMICS OF EFFICIENCY sized that only with satisfaction on the part of the labor- ing force with wages received may efficiency be at- tained. There are two parties to the wage problem, the one who pays and the one who receives wages. It is natu- Parties to ^al for the employer to try to get all the work wage he can for the wages that he gives, and for the problem. worker to try to get all the money he can for the work that he does. The meeting of employers and employees in order to try to adjust their differences gave rise to the different systems of wage payment. Until the last quarter century, employers gave little heed to justice and equity in dealing with em- Former ployees. They took every possible advantage attitude of to drive as hard bargains as they could in employers. }i2i'ing labor. The average employer beheved that the cheaper he got his labor, the lower would be his costs, and the greater his profits. Little did he care for the laborers, as long as he could drive them to put forth greater efforts. He was blind to the immediate relation between wages and efficiency, as well as between the hygienic and sanitary conditions of the working place and efficient work by laborers. Wage earners for self- preservation were driven to unite and to deal with employers collectively through unions. Employers are largely to blame for the bitterness which existed for a century after the introduction of the factory system, and which is found even to-day in many plants. The average employer until recently firmly beheved that it paid to drive workers, by every possible means, to in- creased efforts. Workers were to him simply cogs in the great industrial wheel, and were treated Hke inani- mate objects rather than human beings with feelings and rights. With history showing that employers seized every opportunity to lower wages, is it a wonder that WAGES 317 employees are to-day suspicious of any innovation on the part of employers ? One of the greatest tasks that the new efhciency move- ment has to overcome is the deep-rooted suspicion of employees against employers. The chief solution cause of this attitude has been the struggle of wage over wages. Wages are of the greatest im- problem , , 1 rrii and success, portance to every employer. They are usu- ally the cause of strikes, and are the chief cause of friction and antagonism between the two parties. Effi- ciency, with its demands of interest, enthusiasm, and loyalty on the part of the worker in the success of the enterprise cannot be approached, unless there is satis- faction with both parties over the wages paid. Wages may therefore be emphasized as the first important problem for every employer seeking efficiency to solve. The wage question is one which every employer must solve, and his success in reaching greater efficiency largely depends upon its solution. There are many ways of paying labor. With some kinds of work only one method of payment is possible, while with others different methods may be nq standard used. A method which proves successful in methods for one case may not in another. Because a cer- ^ plants, tain system of payment is satisfactory in one plant, an employer should not take it for granted that it will be in his. Before it is introduced, a careful study should be made of the plant, and the result may prove that it will fail under existing conditions. The great demand is a study of the particular plant, and a decision as to the best method for efficiency, remembering at all times that cooperation is a necessity, and the wage, to give that requisite, should be fair and just. Cooperation cannot be obtained by the mere payment of wages, or the giving of gratuities, but the chief question is whether 3i8 ECONOMICS OF EFFICIENCY or not the wage is a fair one. Another thing to bear in mind is that no matter how satisfactorily a method of paying wages may appeal to the few, that the solution of the wage problem rests upon its satisfactory appeal to the many. The average employer usually makes the mistake of considering only the amount of wages earned by indi- Consider vidual members of his working force. He what is fails to consider what has been done to earn done to the wages. There is fixed in his mind what earn wages. ^ worker should earn, whether working by time or by piece, and if the earnings greatly exceed that amount, he is at once convinced that the pay is too high, and should be reduced. This attitude is one which has been handed down from generation to generation, and must be changed before any great progress can be made in efficiency. It cannot be denied that each worker is vitally interested in an increase of wages, and it is human for him to be so. Every employer is interested in a reduction of wages per unit of output in his place. Fairness and Justice should be the basis of deciding the wage which the one is to receive, and the other to give. In a working force are found men of various degrees of ability. One is slow in movements while another is Requisites ■■ Q^i^k. One may do in a given time a much for a proper larger amount of work than the one working ^age next to him. One is more skilled than an- system. other. The question to solve in deciding upon a wage system is to discover one that will pay each according to what he does, rather than according to the time that he serves. Wherever possible, this should be done, but in some cases, labor must be paid according to the time served. The most efficient system of wage payment is that where a worker is paid according to some scheme whereby his pay is directly proportionate WAGES 319 to his output. The ascertaining of a fair and just wage, and the willingness of employers to give and employees to accept it, is an important factor in assuring coopera- tion and efficiency. More wages to the average individual is the greatest encouragement to industry and progress. Wages should be increased to the point of contribution by Labor is not labor, but beyond that, the only possible way the only to increase wages is to make labor more pro- ^^c*?^ ^^ ductive. The efficiency movement has for its ^^° "^ ^°^' aim the making of labor more productive, and stands for a corresponding increase in wages. Employers should be willing to give in wages what is justly due labor. When employers realize that it is a business proposition to do so, and that they have no right to what labor actually produces, a better understanding will exist between the two parties, and the greater part of the battle for efficiency will be won. Laborers, on the other hand, should realize that there are factors in pro- duction assisting in increasing output other than labor. Buildings, equipment, machinery, and managerial abihty contribute their share, and in some cases, one assists more than others. Each should receive its share accord- ing to the part taken in production. This is practically impossible to ascertain, and approximation is the best that can be done. Laborers and employers working together should try to ascertain approximately the part each takes in production, and each should be willing that the other receive his share. Employers usually recognize the fact that efficient men are worth more than inefficient, but many jj^^ ^^ do not know how to introduce a scheme of introduce a payment that will pay the efficient a fair ^^^^^^^^ wage without trouble with the inefficient. ^^^ ^^' It necessitates great care and diplomacy. The workers 320 ECONOMICS OF EFFICIENCY should be taken into confidence and shown how wages will be increased by following the instructions of the employer. Patience in instruction and a suitable re- ward for success usually win out. Employers should always bear in mind the deep-rooted suspicion of em- ployees, against any innovation, as only a means of exploitation. The suspicion exists and may be over- come by frankness, but if it is not, failure of any new system will follow. A careful study of conditions is necessary before any new system of wages is decided upon, so that the one selected may be the best system of reward for the particular kind of work performed in a plant. Openness, frankness, and justice on the part of employers in their dealings with laborers always pay, and these are essential in any system of wage payment. Laborers should be made to feel that a change is for their benefit, and that it is for the purpose of making them able to increase their wages. The earhest system of labor was a form of servitude. The lash and the whip were the chief means of increas- Servitude ^^S the output of laborers. Sackcloth cloth- earUest ing and the plainest food were the remunera- form of tion for services. Under serfdom, the lot of the workers improved. They were bound to the soil, and had to perform certain services for their lord and master. Slavery and serfdom gradually broke down, and the wage system took their place. It may be noted that servitude did not disappear with the introduction of the wage system, but the two existed side by side for years, and the aboHshing of the former came much more slowly in some industrial countries than in others. Almost simultaneously with the breakdown of serf- dom, and the general appearance of the wage system, the laborer became the center of restrictive legislation. WAGES 321 Rates of wages, apprenticeship, and other details of labor were fixed by some superior authority. Later, the growth of industry proved that the restrictive Restrictions measures were not economic and just, and under early they gave way to a system of contract. The ^^se laborers on gaining their freedom of contract ^^^ ^^^' were found to be almost helpless in the hands of grasp- ing employers. The contest for freedom of contract was won by employers, and not by em- ployees. Employers foresaw the advantage gys^em^ which they could take of unprotected and unorganized labor, and how they could profit by exploit- ing the helpless laborers. The poHcy of exploitation was severe, caused much suffering on the part of workers, and soon drove them to the formation of unions in order to protect themselves. The original and first wage system was paying a laborer for the time that he worked. From the earhest introduction of the wage system until to-day, time wages have been in all industrial coun- tries the commonest form of paying labor. The unit of time under the time wage system may be an hour, day, week, month, or year. A certain amount is paid for a unit of time, regardless of the amount of work performed. Wages are fixed by bargain between the worker and the employer. The bargaining may be done col- lectively at the dictation of a labor union which fixes a minimum rate, or it may be done by the individual workers themselves who fix their wages with their employers. The wages in the case of individual bargaining depend upon two factors, the relation of supply and demand of labor of the particular grade, and the skill of the laborer in bargaining, but in the average case, the latter is of little consequence. The fundamental principle underlying time wages 322 ECONOMICS OF EFFICIENCY is that a certain sum of money is equal to the work _,. of a certain unit of time spent by any man never fair in a plant doing a certain kind of work. The and just sum, unless it is fixed by unions, may vary *° ^^' from place to place, and even from plant to plant. It takes for granted that every man shoveHng sand in a particular plant is worth two dollars for ten hours' work, or every man laying brick in a particular place is worth five dollars for eight hours' work. It cannot be denied that there is always a difference, and often a large one, in the quality and the quantity of work performed by different men doing the same kind of work, and if all are paid ahke, either some are not paid enough, or some are paid too much. The system of paying by time is never fair and just to all. All men are born free and equal, but all are not born with the same abiHty or capacity. This appHes to workers of all kinds, and should as far as possible be considered in fix- ing remuneration for work. Time wages present many disadvantages. They put all men on the same level, and men are not paid accord- Disadvan- ^^S ^^ their efficiency. On the part of workers, tages of there is not any difference, whether one man time wages, jg more efficient than another, because it is practically impossible for him to get higher wages than others of his group. There is no incentive to increased efforts, diligence in work, or interest in what is being done. The good employee receives the same fjr work.*'''^ pay as the one who loafs, so he has httle or nothing to gain by putting forth greater efforts or taking more interest in his work. The fact that extra effort, greater skill, or more interest is not recog- nized stifles ambition, destroys interest of the laborer" in his work, and prevents cooperation, so necessary for efficiency. The industrious and efficient employees be- WAGES 323 come dissatisfied, and slacken their pace to that of the poor and inefficient. The employer who pays time wages usually gets the efficiency of the poor laborer, and there is a tendency to level speed to his pace. The aver- age man works just enough to hold his place, and where there is no inducement, the question arises, why should he do more. Why not save his energy for other things ? Time wages foster soldiering and loafing. Many men make a practice of soldiering even in the presence of their superiors, believing that there is a certain amount of work to be performed, and the less soldiering, they do, the more employees will get work, or the longer will their jobs last. This erroneous and fallacious idea of curtailing efforts to increase the num- ber of workers or to prolong work is current among laborers. Time wages foster idhng on the part of many who develop the practice of awaiting the opportunity for playing pranks, talking, or joking with their fellow workers. How often does work practically cease, when the boss is called away to other parts of the building on some business errand, and at the first sign of his approach- ing return, every one returns to work, and works with greater vim, as if the pace was kept up during his absence. A worker was asked why such advantage was taken of his employer, and his reply was that it was all in a day, and why not have a good time when possible, and that the pay was the same to those who worked faithfully, as to those who had a good time at every opportunity. A great amount of idleness is due to the completion of a piece of work, and the workman waiting patiently until the foreman comes with another job. causes for Little or no effort is made on the part of wasting workers to get a new job, as soon as one is ^"^^• finished. Why not take advantage of a little rest because it amounts to the same thing as far as pay is 324 ECONOMICS OF EFFICIENCY concerned? It would be far better to have a system whereby it would interest a worker to keep steadily em- ployed, and be interested in the amount of work pro- duced from his efforts. It is human nature to take life as easy as possible, and with a worker it is natural for him to take an easy pace and pay little or no heed to what he does. Workers as a whole prefer to sell time rather than labor, and to perform in the time the amount of labor they consider proper for the pay. Thousands of dollars are lost annually through idling of time and soldiering. Frequently time wages cause increased activity of the unions, and labor troubles. The more industrious and efficient men find that they cannot increase their pay by putting forth greater efforts, or being more efficient, and so resort to other methods to try and obtain the result. They get all laborers performing their kind of work to demand an increase of pay, and the cry from both the efficient and inefficient is for more pay. A strike usually follows, and if successful, no one cares whether he does more work or not. Under the time system, it cannot be said that an employer is totally indifferent to the output of workers. How to find If 3.n employee is found frequently loafing, and what a man his output is below what is considered a mini- does, mum, he is discharged, but the discovery depends on his attracting the attention of the fore- man. The loafer usually has his loafing down to almost a science, so that it is easily done without his being caught. Frequently, a worker works for a long time far below the minimum, and is not a°sciSice^ discovered because his foreman has a large number to look after, and his attention has not been directed to the output of this particular worker. It is exceedingly difficult in an ordinary plant for a fore- WAGES 325 man with several men under him to pick out the men who are not doing what is considered the minimum amount of work. A slow, steady, plodding worker, who to the eye is not accompHshing much, may in reality be doing a third more than a nervous, quick-moving worker. Where there is no incentive to increased effort, the average worker will do httle more than is necessary to hold his job, or not to have his pay decreased. Even then, there are so many ways of deceiving, and it is so hard to get the amount of output, that many are continued for a long time on pay when they are far below the average. In spite of all these disadvantages, time wages con- tinue to be the commonest form of remunerating labor. Due to the fact that it is the only system Time wages possible in many classes of work, time wages vs. piece must always occupy a prominent place in our ^^*®^- industrial system. Nevertheless, there are many kinds of work where other forms of remuneration are better suited, and work towards greater efhciency. Wher- ever it is possible, time wages should be replaced by a more efficient system of pay. The wage system which induces men to put forth greater efforts is one where the remuneration is in some way directly proportionate to output. Time wages should be discarded and piece rates introduced wherever it is possible to measure indi- vidual performance. Where work cannot be measured in units produced, the time system is the only way of paying labor, as, for instance, with bookkeepers, ffremen, engineers, etc. An increase in wages and a chance of promotion are two chief inducements for workers to take an interest in work, to put forth greater efforts, and to induce- cooperate for the success of a business. Where ments for these inducements are lacking, workers are ^°°^ ^°^^' liable to be indifferent, with Httle or no interest in work, 326 ECONOMICS OF EFFICIENCY and with Kttle desire to increase output. As far as these inducements are present and before workers under time wages, the more satisfactory will be this system of payment, and the greater will be the interest, coopera- tion, and enthusiasm of workers in the business, and the greater their efficiency. Frequently, promotion and increase in pay are due to favoritism. The foreman takes a liking to a worker, and at the first opportunity increases his pay or promotes him, and pays Kttle or no attention to his efficiency. Often- times, a capable worker is not promoted or increased in pay, due to the fact that in some way he has aroused the anger of the foreman. Either case arouses distrust on the part of workers, and causes them to lose interest in their work. Promotion in the ranks, or increase in wages due to favoritism, fosters antagonism and increases inefficiency. In some plants, different time wages are paid in the same class, and promotion is made from the ranks. Methods Increase in wages is based as far as possible forincreas- on efficiency. The more efficient men are ing wages, rewarded by an increase in pay, and the great difficulty is the ascertaining of those who deserve the increase, and who are more efficient than the others. With no records, extreme care should be exercised, and favoritism should never under any circumstances be a factor. The best results are obtained with a competent boss, and comparatively few men under his direction. He can easily by close observation ascertain, to a certain degree, the quality and the quantity of work of each worker. If a worker knows that his work is under observation, and that if he increases his output, his pay will be increased, there is an inducement to put forth greater efforts. Workers should also be assured that in case of a vacancy, the more energetic and efhcient will WAGES 327 be promoted. These two inducements give incentives for more efficient work, and good results with time wages. The more efficient method, wherever conditions are suitable, is to get individual records, and to base in- crease of pay and promotion on these. Where work is of the same class and gangs are small, Jecords"^ the boss may without any inconvenience keep daily records of each of his men. Pay is based on the records, and the men know that the more efficient will receive the larger pay. A great amount of work by its very nature makes record keeping absolutely impossible, and the only measure of efficiency is the close observation of the boss. Wherever the character of the work is such that time wages are the only possible means of payment, care and judgment should Remedying be exercised in bringing all under observation, faults of and making all know that they are observed, *"^® wages, and that good work will be rewarded. If this is done, many of the faults of time wages will be remedied. Nevertheless, where it is possible to measure, in units of production, the work of a laborer, the most efficient way is to displace the old method by piece rates. The piece rate system is where a man is paid, not for the time that he spends, but for the amount of work that he does. It is not of recent origin, as I •! r » •• . t Jriece rates. strikes lor mcrease m piece rates occurred years before the introduction of the factory system. The factory system, nevertheless, gave great impetus to this method of remuneration, and the piece rate system increased in practice. Employers at first, and even in many cases to-day, introduce this system solely as a method for reducing labor costs. Piece rates, to be successful, should benefit both parties, and each should be willing and anxious for the other to profit. Piece 328 ECONOMICS OF EFFICIENCY rates have caused much friction between employers and employees, because they are usually looked upon as . a means to force extra effort with lower wages. Opposition to the system is not the fault of the system, but is due to ignorance and cupidity on the part of employers. Employers themselves are largely to blame for the many failures of piece rates, and the antagonism on the part of employees. Where friction has arisen over piece rates, it has been due chiefly to stupid methods of introduction. No Friction due System is used to ascertain the proper rates, to stupidity which are chiefly based upon guess, or upon in rate the judgment of foremen. The judgment ^^* based on past experience is as a rule far from being correct. Some employers try to ascertain the time it takes to perform a certain task, on the basis of previous records, made by men employed on time wages. This fails to account for the fact that with the incentive offered by piece rates, the output of the worker may vary as much as 50 per cent over time rate. Pre- vious records are inaccurate, and form a very unsatis- factory basis for estimating piece rates. Records of past performance are a poor indication of what may be done by capable and industrious workers. No uni- form standards in the performance of a task make snap judgment a mere guess. The guess cannot help being inaccurate, and is the beginning of trouble. By fixing rates according to methods which are based chiefly on guess, it is only by chance that any kind of equitable rate is fixed. The whole problem of piece rates is the deciding upon rates satisfactory to employer and to employee. Employers do not make sufficient allowance for the increase in output due to piece rates, and the rates are usually high. A large increase in the weekly wages WAGES 329 arouses an employer, who forgets that more work is being done than under time wages, and as soon as Rate cutting the wages rise above 25 or 30 per cent, he, the cause of thinking that he is paying his workers too *^o^^^®- Hberally, cuts the rate. The great bane of piece-work is rate cutting. In the past, and even to-day, many em- ployers beheve that a man should not under any circum- stances earn more than a certain sum, working either by day or by piece. Where wages are very much in- creased, the average employer cannot resist the tempta- tion to cut. This has been the cause of many failures of the piece rate system as well as many strikes. If strikes do not occur with rate cutting, bitterness arises, as the average worker beheves that it is only to increase the profits of the employers. Rate cutting causes lazi- ness and lack of interest and enthusiasm, and works toward inefhciency and an increase of costs. The old method is to set a rate and leave it to the worker to solve the problem of making wages, and as soon as he solves it, and increases his wages pjece rates above a certain amount, to cut the rate. The under the workers are usually responsible for keeping °^^ system, machines and tools in condition, and for getting work to and from the machines. The employer places as much as possible of the burden of getting work per- formed upon his men. In one factory, a person noticed that the employer was not as painstaking as formerly about repairs, tool sharpening, and taking care of ma- terials. On being asked why, he answered: ''I have put my men on piece rate, and it's up to them now. If they wish to earn wages, let them use extra care to see that machines are in repair, and the goods taken care of." This old practice has caused an endless amount of friction between employers and employees. To pre- vent friction, rates should not be fixed under the old 330 ECONOMICS OF EFFICIENCY method, since it is almost impossible to make a rate, without the necessity of later readjusting it, and this is the cause of the failure of many piece-rate attempts. Employees are more or less suspicious of making too high wages, because they beheve that then their rates Piece rates will be cut. It is a known fact that capable foster workers will soldier rather than make wages soldiering. j.-gg ^lore than 20 or 25 per cent above day wages, knowing that if they do, rates will be cut. The capable or more efficient hold back for the slow, who would suffer if rates were cut. The fear of making a record which might be used for a cut in rate causes sol- diering. It is claimed that piece rates have developed systematic soldiering to a remarkable degree. Workers after one or two cuts decide that there will not be another if soldiering will prevent it. Piece rates very often under the old method decrease efficiency. The men learn that the management is wilKng to pay a certain amount and no more, and soldier so as to make their earnings by piece rate about equal to it. Even to-day, the bare mention of piece rates causes great opposition on the part of many employees. This opposition is more or less justified by the experience of history in the working of the system. Piece-rate fixing is based upon two factors, the task and the rate. Rate cutting results from ignorance The task ^^^ carelessness in ascertaining the task and and the in fixing the rate. If these defects can be rate. remedied, there is not the least doubt that piece rate would prove a most satisfactory system of paying labor, where such a system is possible. It solves the question which efficiency sets before us of how to encourage and reward efforts in order to ac- compHsh more efficient results. To obtain efficiency, men should be satisfied that they are getting a square WAGES 331 deal, and are receiving a just and fair reward for their efforts and skill. Opposition to piece rate may be avoided if extreme care is used at the outset in estabhshing a just rate. This demands a careful study of conditions How to es- precedent to its installation. The task and tabiisha the rate should be properly fixed, and then i^strate. there would be no reason for a cut. The whole problem is to get the proper piece rate at the outset, and to ob- tain a just rate, it should not be based on guess- work, but on careful study and investigation, in order to ascertain what a task should be, the time it should be performed in, and what is a fair and just rate, so as to give labor its just reward for its share in pro- duction. The best and the only proper method is to ascertain the task and the time by careful time and mo- tion studies. This takes the work of fixing the task and the rate out of the hands of those who fix them by guess, and places it entirely in the hands of specialists, who as- certain them by careful observation, scientific study, and experimentation. By ascertaining the time in which the average worker under ordinary local conditions can perform the ascertained task, a suitable rate can easily be determined upon, which will give an equitable and just rate, fair to employer and to employee aHke. A careful study should be made of factory conditions, and with equipment and conditions as they are, the rate should be such that the average man will Duties of earn from 30 to 60 per cent more under piece the rates than he would under time wages. Ex- employer, treme care should be taken that it is not necessary to work at a speed which is injurious to health. The employer should keep his equipment thoroughly up to date, and materials and tools always on hand when needed, so that there is no unnecessary delay on the part of the worker. 332 ECONOMICS OF EFFICIENCY The members of every working force may be divided into three classes : workers below the average, average workers, and workers above the average. It w(M±eTs°^ is the average worker who should be carefully studied in making tests and experiments to decide upon task [and rate. Tests and experiments should determine the best method and the time required The average ^^ ^^^ average man, to do the task with the worker is factory equipment. The method should be the one to standardized and the workers instructed in its ^^ ^' use. The equipment should always be main- tained in the same degree of excellence as when the ex- periments were made. In the determination of the rate, account should be taken of the fact that the men will become more expert with time, so that what might be considered a somewhat low rate at first may be satis- factory after a short experience. In fixing the time, allowance should be made for necessary delays, and where the work is very exacting, time should be allowed for rests in order to prevent injurious fatigue. The men below the average should be instructed, and if they cannot make the average, some other kind The men ^f work should be found for them. There below the should be no maximum wage Kmit to the more average. efficient, and their wages should depend upon their degree of efficiency. By extreme care in prepara- tion and in proper installation, a rate may be obtained which will be fair and just to both employer and em- ployee, and which will not give cause for cutting. The increased interest and loyalty of the men in the work will make them cooperate with the employer for increased efficiency. An important precaution in piece rates is that the workmen should not be allowed to overfatigue them- selves, or work to the point of injuring health. The rate WAGES 333 should be such that overfatigue is not necessary to earn a good wage. The ambitious should not be allowed to tax their strength in their endeavors to earn a few more dollars. Care in not allowing workers precautions. to overtax their strength, which impairs their health and efhciency, is an important duty of the management. The workers should be taught the evil consequences of overtaxing strength, and how it brings a loss of earning power that more than offsets the few extra dollars earned in the present. In every instance, workers should be taken into con- fidence by employers in ascertaining rates and in the installation of a piece-rate system. The first workers' essential is the cooperation of employees, which share in may be obtained only by being frank, open, ^^^s rates, and just with them. Employees should be shown that piece rates are for their benefit, and will enable the average employee to earn a more equitable wage, and the more efficient, a reward proportionate to their output. The necessity of making proper tests to ascertain proper rates should be carefully explained. As soon as em- ployees learn that there is nothing underhand, and that the change is for their benefit, they will, in the majority of cases, cooperate, and their cooperation assures success. Employees should assist in ascertaining the proper task, and be consulted as to the rate, and when a satisfactory rate is obtained, the employer should bind himself to maintain it without cutting, unless unforeseen circum- stances should arise that would make adjustment nec- essary. But adjustment should take place only with the cooperation of the workers. The average worker is a fair-minded, open, and just person, and will every time meet the employer halfway and do his part to obtain a fair wage. If the average employer were more cognizant of this fact, and would be just, open, and fair, we would 334 ECONOMICS OF EFFICIENCY have less friction, more cooperation, and greater effi- ciency on the part of the working force. It has been charged that piece rates rest upon a fallacy that permanent just rates can be predetermined. This is quite true, because conditions are always may be^ ^^^ changing, and American genius is always active necessary in devising new machines and methods. If in some ^]^g management goes to the expense of intro- ducing new machines and new methods that greatly increase the output of workers without any in- crease of effort, the rates should be adjusted. The em- ployees should be told frankly the situation, and then the majority will realize the justice and fairness of a reduction, and will not oppose it. Proper precautions should be taken in fixing rates, and then rate cutting would be necessary only in exceptional cases, and should take place only with the assistance of employees. A method of encouraging employees to increase efforts and become more interested in a business is profit shar- ing. This is giving employees, in addition to sharing ^^^^^ regular wages, a certain per cent of the net profits of a business. Strictly speaking, it is not a method of wage payment, but many look upon it as such, and on that account, it is considered with the other methods. The practice is more prevalent in Eng- land than in the United States, but we have in this country many strong advocates of profit sharing as the best method for obtaining the cooperation of the working force. It is slowly increasing in favor, and several employers of large forces give it considerable credit in increasing the efficiency of their working forces. Method of Profits are divided between employees and distributing employers, and at first sight, this seems equi- profits. table and just. The percentage of profits given to employees varies with individual cases, and may WAGES 335 be divided among all employees, or restricted to those of a certain time of service. The distribution may be equal, or based to a certain degree on salary received, or on years of service. The distribution of profits to workers depends upon the existence of profits. Profits depend upon many ele- ments, of which labor is only one, and the speculation labor of a single individual a very small frac- as to exist- tion. Errors of judgment in buying or in ^^^^ °^ selling, excessive losses through bad debts, ^^° unforeseen happenings which affect the markets for goods produced or sold, bad management, losses through accidents or fires, are all costly, and may be sufficient to wipe out profits. Men who have worked faithfully throughout the year expecting at the end a good-sized bonus may be sorely disappointed to find no profits. There are so many elements affecting profits other than labor, that it is always more or less of a speculation as to the existence of profits at the end of a year, and if they will be sufficient to make the amount distributed attractive to individual workers. On the other hand, the greater part of profits is usually due to causes over which labor has no control. Im- proved methods of production, good manage- causes for ment, capable executive heads and superin- profits other tendents, shrewdness in buying so as to take t^^n labor, advantage of favorable markets, and in selling to best advantage, carefulness in granting credit, good fortune in not having losses from fires or accidents, all assist in adding to profits. There are so many elements con- tributing to profits that it cannot be said that they are due to labor alone, and it is difficult to say what part is due to labor. The distribution of profits to workers, or what is known as profit sharing, should be looked upon as a gratuity and not a system of wage payment. 336 ECONOMICS OF EFFICIENCY The degree to which the gratuity affects greater interest and cooperation on the part of a working force, is im- possible to say. There are many disadvantages in profit sharing, and these possess such force that the incentive is not suffi- Disadvan- ciently great to induce workers to put forth tagesinprof- increased effort. The bonuses are more or less It sharing. q£ ^ speculation, and come only after long intervals, usually a year. The distribution is not ac- cording to efficiency, but usually according to classes. Share does ^^^ efficient and the inefficient in a class being not depend rewarded alike, and by the same sum. A on effi- worker will not be Kkely to increase his ef- ciency. forts to increase output when his share will not be any more than that of the one who idles away his time. The share given to a worker does not depend upon his efficiency, but simply on the fact that he is a member of a class coming within the line of distribution. The remoteness and the probability of a re- S^rewarT^^ ward are not sufficient inducements to make the average worker take greater interest in his work or increase his efforts to increase his output. To a certain degree profit sharing penalizes the efficient worker by making distribution alike to good and poor workers. Easy work is more attractive than hard with a possible reward to be shared with others many months No way to ^^ ^^^ future. Again, there is no way on the know extent part of workers to know the extent of profits, of profits. g^j^j whether or not, the promise of the em- ployer is carried out. Accounts are not audited, and the word of the employer must be taken. Frequently dissatisfaction arises, due to the fact that employees think that a correct accounting has not been made. Profit sharing is so remote in its reward, so impartial to efficiency and extra efforts, and based upon so many WAGES 337 contingencies, that it gives Kttle incentive to efficiency and extra efforts. It requires a more immediate and direct reward to arouse men to action. The contract plan is a system of wage payment oc- casionally found in the United States and Great Britain. A certain rate is agreed upon for a job between the management and a contractor, who uses system, the shop equipment but hires his own labor. The difference between what he gets for his job and what it costs to get it done is his profit. The contract system is frequently used in the case of unskilled work for which laborers of a low t3^e, usually foreigners, are employed and invariably results in slave-driving habits which will not be tolerated by American laborers. There is no knowledge of what operates, the job will cost, and the price is fixed by higgling between the contractor and the management. Each uses his skill, the one to get as high a price as possible, and the other, as low as possible. With the average worker, the ordinary contract system will con- tinue to lose favor, but there are various modified forms of it which may continue in practice and win favor for some time. QUESTIONS 1. What is the relation between wages and efficiency? 2. What are the requisites for a proper wage system? 3. What are the various systems of pay? 4. What are the advantages and disadvantages of time wages ? 5. In what way do time wages foster soldiering? 6. What are piece rates and when should they be used ? 7. Account for the opposition, of unions to piece rates. 8. What precautions should be taken in the installation of a piece-rate system ? 9. In what way do piece rates foster soldiering ? 10. Give the difference between the old system of piece-rate fixing and the new. 338 ECONOMICS OF EFFICIENCY 11. How may a just piece rate be established? 12. What are the duties of an employer in establishing proper piece rates ? 13. What precautions should be taken to protect the health of workers under piece-rate systems ? 14. What is the profit-sharing system? Mention different methods of profit sharing. 15. Give the advantages and disadvantages of profit sharing. REFERENCES Books G.L.Bolen, "Getting a Living," Ch. V; F. T. Carlton, "The History and Problems of Organized Labor," Ch. VIII; S. Dean, "Shop and Foundry Management," Article IV; L. R. Dicksee, "Business Organization," Chs. VI, VII, XV ; H.L. Gantt, "Work, Wages, and Profits," Chs. III-V ; N. P. Oilman, "Profit Sharing" ; C. B. Going, "Principles of Industrial Engineering," Ch. VII; S. Kirschbaum, "Business Organization and Administration," Ch. XII; F. R. Mason, "Business Principles and Organization," Chs. XI, XV; J. L. Nicholson, "Nicholson on Factory Organiza- tion and Costs," Ch. I ; C. C. Parsons, " Business Administration," Ch. XV; The Library of Business Practice, Vol. II, pp. 1 21-156; W. H. Tolman, "Social Engineering," Ch. VII; F. E. Webner, "Factory Costs," Ch. IX. Articles W. J. Ashley, "Profit Sharing," Quarterly Review, Vol. 219, pp. 509-530; B. Buxbaum, "Wage Systems in Germany," Ameri- can Machinist, Vol. 35, pp. 827-829; D. Carnegie, "Systematic Piece-Work Pricing," Gassier, Vol. 18, pp. 74-76; J. E. Chace, "Setting Piece-rates with Science," Factory, Vol. 7, p. 16; R. Clark, "Why Profit-sharing Schemes Fail," System (English Edition), Vol. 25, pp. 231-234; H. P. Clausen, "Speeding up Pro- duction for Establishing Piece-work Rates," Engineering Maga- zine, Vol. 41, pp. 63-68; H. Diemer, "The Fixing of Piece-work Rates," Engineering Magazine, Vol. 26, pp. 169-176; B. A. Franklin, "Quality Piece-work," Engineering Magazine, Vol. 41, pp. 273-278; B. A. Franklin, "Gang Piece-work," Engineering Magazine, Vol. 41, pp. 457-460; J. B. C. Kershaw, "Co-partner- WAGES 339 ship and Profit Sharing as a Solution of the Wages Problem," Engineering Magazine, Vol. 43, pp. 837-845 ; H. F. J. Porter, "Paying for Work — Not for Time," Factory, Vol. 10, pp. 231 4- ; H. F. J. Porter, "Making the Most of Day Work," Factory, Vol. 10, pp. 341 +; W. D. Scott, "Wages," System, Vol. 18, pp. 492- 496; J. C. Smith, "Theory of Equitable Profit-sharing," West- minster Review, Vol. 180, pp. 492-512 ; C. B. Thompson, "When Higher Wages Pay," System, Vol. 22, pp. 339-348 ; J. G. Thomp- son, "Present Work and Present Wages," Quarterly Journal of Economics, Vol. 24, pp. 515-535- CHAPTER XV Scientific Piece-Rate Systems Various systems of pay have during the last few years been devised to additionally reward men for in- Haise creased efforts and greater output. The premium earliest method is the giving of premiums to plan of wage j^en who perform their tasks in less than a cer- payment. ^^.^ allotted time. There are in practice many ways for deciding and awarding premiums, but the one which has reached the greatest favor in the United States and Great Britain is the Halsey premium system. This is named after its originator, Mr. F. A. Halsey, who, when he devised the system, was employed by the Rand Drill Company of Sherbrook, Quebec, Canada. A certain allotted time is allowed for the performance of a task, and is ascertained by a careful study of the records of the performances of average men in derates ^^^ P^^^* ^^^ ^^^ P^^^ ^^^^^ regular time wage, regardless of what their output may be, and if they perform their tasks in time less than that allotted or standard, they receive a premium for the time saved. The premium depends upon doing the task in a shorter time than that of the recorded per- formance of the average man in the past. Men usually receive their pay in two envelopes, one containing the regular time wage and the other the premium earned during that time. It is optional with the men whether they take the premium or not, but it is very rarely refused. Suppose, for example, the time for a certain 340 SCIENTIFIC PIECE-RATE SYSTEMS 341 task is ten hours and the pay thirty cents an hour. If a man performs the task in eight hours, he saves two hours. The full amount of the value of the time saved is not given, but a percentage varying from 30 to 50 per cent. The percentage varies in different shops and with different kinds of work. The value of the time saved is divided with the employer, as a reward for the extra wear and tear on the plant and equipment, and extra waste resulting from more rapid work. With the sharing of profit with the employer, there is not the Hkelihood of cutting rates. If the distribution for time saved is on the basis of 50 per cent, then the worker will receive for the task 8 X .30, $2.40, plus a premium of I of .60 equals .30, or a total of $2.70 for eight hours' work, or approximately $3.37 instead of $3.00 for ten hours' work. Wherever possible, all work is given a standard time which is printed on cards, as well as the percentage given for time saved. These are either given to the workers or they have access to them, so payment, workers know w^hen they receive a premium and how much. Daily records are kept of the units of work performed by each worker. Ascertaining the premium is a simple matter of bookkeeping. The timekeeper finds that for a week John Brown performs ten units of work. He looks at the standard time card and finds that the standard time for each unit is eight hours, and the rate per hour thirty cents. John Brown works ten hours a day and during the week performs eighty hours of work in sixty hours, and accordingly saves twenty hours. The week's wage of $18.00 is paid in the regular weekly pay envelope, and in a sepa- rate envelope is pla^^ed the prem^'^im earned during the week, which if the 'xistribution is on the basis of 50 per cent, is I X 20 X 3c, or $3.00. 342 ECONOMICS OF EFFICIENCY The time allotted for a task is not based on scientific study, and no attempt is made to obtain standard con- ditions or standard methods. A worker is taining of left to himself to devise and to find ways of standard shortening standard time. No limit is placed *^°^®' upon earnings. The management undertakes to keep each worker suppHed with work during the work- ing days, so that he may not be handicapped by waiting for new work. The serious problem under the Halsey system is fixing the standard time. If extreme care is not exercised, the time may be made too low and earnings are excessive ; or too high, and then the earnings may be such that few earn premiums, and this takes away the incentive for work. The system with a fair standard of time encourages workers to put forth their best efforts to increase their output, and it further encourages them by making the reward immediate and substantial. Workers who do not do their best are not punished, as every one receives the daily wage. The Halsey system, with care in getting standard times so that cuts are not necessary, is a successful system of paying labor. No change is necessary to introduce the system, and the premium if substantial induces workers to put forth their best efforts. The records kept will show the men below the average. If they remain so for any length of time, and are not able to make the standard time, their places should be taken by others. A modification of the Halsey premium system is that credited to James Rowan, a member of a prom- Rowan inent firm of engine builders of Glasgow, Scot- premium land. The plan is known as the Rowan system. premium system. The standard time is obtained as in the Hr^-ey system ]-y a careful study of past records of average men. The time saved is con- verted into a percentage of the standard time, and this SCIENTIFIC PIECE-RATE SYSTEMS 343 is the percentage of the regular pay that goes to the worker as his premium. The worker accordingly re- ceives as a premium the percentage of his regular pay that the time saved is of the standard time. If, for example, the standard time for a unit of work is ten hours and the pay thirty cents an hour, and a worker does the work in eight hours, the time saved is How it two hours, or 20 per cent of the standard time, operates. The premium is therefore 20 per cent of 8 X .30, or .48. It is no more difficult to record than the Halsey pre- mium system. If John Brown during a week performs ten units of work, and the standard time for each unit is eight hours, therefore during the week of sixty working hours, he does the equivalent of eighty standard hours and saves twenty hours. The time saved is therefore 25 per cent of the standard time. If the regular pay is thirty cents per hour, the weekly wage equals $18.00 and the premium $4.50. A formula for finding the premium is — - — equals premium, where A equals A. the standard time, and B the actual time consumed. From this formula one may see that under no circum- stances can any worker more than double his regular daily wage. This system has met with considerable favor in England but Httle in the United States. As a result of the movement for scientific investiga- tion of operations, three new systems of pay have been introduced and have attracted considerable attention. Perhaps the most favored is that sy^tem.**^"^ introduced by Mr. Gantt and sometimes called the Gantt bonus system. This is a combination of time and piece rates. Mr. Gantt places great stress upon the task and the time required for its perform- ance. Best methods are ascertained for the perform- ance of work and made standard. These are taught to 344 ECONOMICS OF EFFICIENCY workers by competent instructors. The best machinery and equipment are provided and maintained in best How stand- ^^^P^i^, and provision is made for providing ard time is workers with proper tools and proper quan- ascer- tities of materials. Working conditions and ^^^ * environments most conducive to health and work are provided. Careful time studies and numerous experiments are made to ascertain the proper time for a task. The time allotted takes into consideration the conditions existing in a plant, necessary delays, and rest periods if such are given. When the workers are taught standard methods for performing tasks, and the plant is standardized, the men are paid on the bonus plan. The I tr ti ^^^^ methods and tools for performing work are carefully worked out and given to workers as instructions. A worker follows instructions, and if he accompHshes the task in the time allotted, he gets time wage and bonus. If he fails to do so, he gets his time wage, but is supposed to report to the superintendent that he has failed to accomplish the task in the allotted time. Inspection is made of the instructions, and if they are found to be correct, the worker is given further in- struction, and if after several trials he cannot make the task in the time set, he is changed to another class of work. The time taken by the average worker is carefully ascertained. The average worker and not the most efficient is the one who is studied, and the one workerTs^^^ who is considered in allotting the time. The the one discovery of the average worker is not by studied guesswork, but is ascertained by careful tests and experiments. Mr. Gantt insists that guesswork in setting tasks should be eHminated. His ideal is where "the best expert available investigates the work, standardizes appliances and methods, and sets the SCIENTIFIC PIECE-RATE SYSTEMS 345 task that involves utilizing them to their best efficiency." It stands to reason that if accuracy is to be Elimination attained, the use of the stop watch is indis- of guess- pensable. The methods adopted by Mr. '^°'^^' Gantt ehminate guesswork, the great cause of mischief and trouble between employer and employee. Mr. Gantt reahzes that precautions should be taken not to make the task too difficult or too easy. It should be possible with conditions, machines, and jasknot tools furnished, and by the average trained too difficult man in the time allotted. It is necessary to nor too emphasize that it is the average trained man, ^^^^' because a man untrained may not accomplish the task in the time set, but the average trained man should. If the task is too difficult and only possible for the most efficient men to attain, it will not be conducive to increased efforts and will cause discontent. This de- feats the purpose of the system. Again, if the task is too easy, earnings would be too large. The chief prob- lem is fixing the task, and with careful study, experi- menting, and time and motion studies, it is accurately and scientifically determined. After the task has been fixed and the time ascertained, the next important prob- lem is fixing the rate. Mr. Gantt says that the task and the rate should be such as would make it possible for a competent workman to . earn from 20 to 100 per cent more than day pay. There should be sufficient induce- ment for extra effort in order to obtain the best results. Rate cutting, the cause of so much trouble in the ordinary piece-rate system, is eliminated because the Gantt system of estabhshing task and rate is ^^ ^^^ the result of careful study and scientific in- mum limit vestigation. There is no maximum limit ^5°°; placed upon the efficiency of any worker, and ®^^^^^- his reward is increased with his efficiency. There is 346 ECONOMICS OF EFFICIENCY no object in soldiering to prevent rate cutting, and soldiering is almost entirely prevented. If a eliminated ^^^ ^^^^ ^^^ reach the standard after instruc- tion, his instructor has to find out the cause, and if it is due to laziness or unwillingness to put forth effort, the man is changed to other work or discharged. If the fault is due to lack of instruction, it is the work of the instructor to take special pains to teach the worker patiently in the best methods until they are mastered. Where it is impossible for a man to learn best methods, he is changed to other work or discharged. Employers should remember that workers can do only a certain amount of work in a day without injurious results, no matter what the reward is. In fix- Health pre- • ^j^g j.^^g ^Yie employer should take this cautions. ,o j r- j .ii.i mto account, and fix a rate where the desired inducement will be present without a worker working to the point of injurious fatigue. A worker should not be allowed to work at a pace that will impair health, because whatever impairs health, impairs efficiency and is a dollars-and-cents proposition to both employer and employee. An important problem is not to get a large output at the expense of health, but to get the largest possible output with the energy expended that will not impair health, and to reward the laborer as liberally as possible for his efforts. Any management which allows workers to become impaired in health will soon find itself seriously handicapped by an inefficient working force. The question is what amount of work can the average laborer perform without fatigue or im- pairing his health. Mr. Gantt does not advocate urging workers to the point of exhaustion, or to the point of injurious results, so as to undermine their health and devitalize them. This fallacious charge has so often been made. He real- SCIENTIFIC PIECE-RATE SYSTEMS 347 izes as well as any student of efficiency, that efficiency can only be obtained and maintained by a healthy work- ing force, and whatever undermines health Gantt sys- and causes dissatisfaction undermines effi- tem and ciency. The increase in output and in wages ^®^^*^- claimed by Mr. Gantt for his system comes not from the expenditure of an extra amount of energy, sapping vitahty and strength, but from other causes, chiefly those of converting a great amount of the wasted energy under the old methods into productive results, through providing best possible tools, machinery, methods, and working conditions. The worker who performs the task in the allotted time is given a bonus. At first, the bonus was fixed, and there was no inducement for a worker to ^^^ ^ ^^^ do more than just sufficient to earn the bonus. This was later changed to paying the worker the bonus allowed for doing the work in the allotted time, plus an additional bonus equal to the percentage of the time saved. This gives an inducement for further effort, and is more satisfactory. Workers who perform tasks in the allotted time are encouraged to make suggestions for better methods of performance. If on careful experimentation _ j^^- 4.' ^1,4-^1, Suggestions. and testmg, a suggestion proves that the average trained worker may perform the work in less than the standard time, the suggestion is adopted, the standard is changed, and the workers are instructed to do the work under the new change. The worker mak- ing the suggestion is rewarded. Mr. Gantt further rewards foremen for the men under forrmen.^' them making bonuses. A bonus is given to the foreman for each man under him who performs his work in standard time, and a further bonus if all make the bonus. This gives an inducement for the foreman 348 ECONOMICS OF EFFICIENCY to take special care to see if any men do not receive the bonus, and to devote his energies to bring them up to the standard, and earn the extra bonus. The great essential for a satisfactory and efhcient working of the Gantt system is the support and the cooperation of the working force. With jus- tain the CO- tice and fairness on the part of the employer operation in fixing the task and the remuneration for of the ^Yie average trained worker, there is every- thing to gain and nothing to lose on the part of the working force with the introduction of this sys- tem. The employer should be open, frank, and just with his employees. He should explain in detail the working of the system, and show that its introduction will increase earnings, reward according to efficiency, and that overwork and overfatigue will not be neces- sary to earn a fair wage. With careful explanation and proper understanding of a proposed change, the average employee will be ready to follow the instructions neces- sary to carry out the change. This system may be used to exploit as well as other systems. The employer should expect to be just and to give a fair and just re- ward for labor. Employees, on the other hand, should be satisfied with a just reward. Employees should assist and be consulted in ascer- taining task and time, and should Hkewise be consulted Share of ^^ fixing remuneration. They should be im- empioyees pressed with the fact that fairness and justice in fixing ^^e what the employer is seeking, and that he is wilKng that his employees should give their assistance in ascertaining the proper task and its just remuneration. The success of the Gantt system de- pends upon fixing the task and its remuneration. The working force should be satisfied or they will not coop- erate and the purpose of the system will not be obtained. SCIENTIFIC PIECE-RATE SYSTEMS 349 The cooperation of the working force in fixing task and remuneration works for harmony and the success of the system. A second method of remuneration demanding scien- tific investigation of conditions and methods is the sys- tem devised by Mr. F. W. Taylor, heralded as Differential the father of the widespread scientific man- piece-rate agement movement. Mr. Taylor's system is ^y^*®™- known as the differential piece-rate system. As under the Gantt system, every task is studied by experts, carefully analyzed into its simplest parts, and ^^ uigites the best possible methods ascertained for its performance. Careful time studies are made of the performance of the task, and the necessary time for its performance obtained. The time allotted takes into consideration the conditions existing in a plant, neces- sary delays, and rest periods, if such are needed. Stand- ardized conditions, best possible equipment, machinery and tools always in the best repair, the working conditions most conducive to health and work are requisites for the system. After the best methods are ascertained and made standard, the workers are instructed carS!^*^°^ by competent instructors to perform the tasks in the standard way. Instruction cards are made out for each task, giving standard methods for performance, tools to be used, and directions to be followed. In every case, the worker follows closely the instructions laid down. The system punishes and rewards. If a worker does not perform his task in the given standard time, his rate of pay is lower than if he does. It offers for the same work, a higher piece rate for entkirate" standard time and perfect work, and a lower rate for slower time. Mr. Taylor uses two different rates for the same task, but there is nothing to prevent the 3 so ECONOMICS OF EFFICIENCY use of more than two. The differential scheme of Mr. Taylor allows a lower rate for not finishing on schedule time, but no increase in rate if finished in less than standard time. There is an inducement to reach standard time but none to produce in less than standard '^^at is time. Mr. Taylor says that the task should be a first-class so difficult that only first-class men can per- man? form it in standard time. If the task is so difficult that the average man in a class cannot perform it in the allotted time, the incentive to increased effi- Precaution cicncy is restricted to a small number^ and infixing the system produces friction rather than an task. increase in efficiency. It should be possible for the average man to perform the task in the allotted time and get the higher rate. Men below a first- class man should be, according to Mr. Taylor, given additional instruction so that it will bring them up to the standard. If after careful instruction, this is im- possible, they should be given other work. The pur- pose of Mr. Taylor's system may be easily defeated by making the task too difficult. This has been the cause of many failures of the system. Mr. Taylor's differential rate works as follows : If after careful investigation it is found that two units of a certain kind of work can be done in an ^^operatfon ^^^^ ^Y ^ first-class man working under stand- ard conditions, with best equipment and ap- pHances, and trained in best methods, two pieces an hour are made the standard. If a man makes two pieces or more, he receives fifteen cents a piece, but if he does not, twelve cents. If he finishes four pieces in an hour, his pay is sixty cents, but the task is so difficult that such an increase is phenomenal and rarely occurs. If a man makes one and a half pieces an hour, his pay is only eighteen cents. Mr. Taylor's SCIENTIFIC PIECE-RATE SYSTEMS 351 system is undoubtedly the most difficult to introduce and to maintain. It sounds well from a theoretical point of view, but is not nearly as practical as Mr. Gantt's or Mr. Halsey's. Mr. Gantt furnishes a regular time rate and Mr. Taylor does not. Mr. Gantt rewards all who make the task in the allotted time and does not punish those who do not — except if they cannot make it after further instructions, they are transferred or dis- missed. Mr. Taylor punishes as well as rewards. If care is not taken, the punishment may be so severe that the antagonism which it arouses causes its failure. Mr. Taylor strongly emphasizes the fact that the task should be so difficult, that only first-class men can do it in standard time, and if care is not taken, the incentive may not be great enough to induce the average man to cooperate in increasing output. The Taylor system is especially adapted where the same kind of task is re- peated day after day. Even here, if the task is made too difficult, so that the proper encouragement is not given, it is likely to be an absolute failure. The prin- ciple should be followed that the rate should be such as will allow an increase in wages of Proper en- from 30 to 60 per cent to all who make stand- ^ent should ard time, and this should be possible to the be given, average trained man in a plant. If these pre- cautions are not taken, the chances of success are slight. To the impartial observer, it appears that the Gantt system will give all the desired results of the Taylor, will not meet with the same opposition, and will give all necessary incentives for increased efforts. The Gantt and Halsey systems have met with greater favor with employees and will continue to increase in favor. The task idea with the bonus omitted has been adapted with success for day work. The amount of work which can be performed by the average man under existing con- 352 ECONOMICS OF EFFICIENCY ditions is set as the task, and as soon as the task is completed the worker is allowed to go. If the task is not Task idea finished at quitting time, those who have not in day done SO are not allowed to go until it is. The ^°^^- boss or superintendent is held responsible for quahty, and frequent inspection is made to see that uniform quahty of work is obtained. The last of the wage systems to be considered is the Emerson efficiency system. It was devised by Mr. Emerson Emerson, the well-known engineer and effi- efficiency ciency expert. Machines, tools, and factory system. conditions are standardized and put in the best possible condition. As with the Gantt and Taylor systems, standard times and motions for different tasks . . are determined by scientific investigation, eqmsi e . ^j^pi^yggs receive instruction cards, giving instructions as to best methods, tools, and the time the work should take. The standard time is ascertained and is the time which the average trained man takes to perform the task. This point should be emphasized, because if it were the best man of his class, few would reach standard time, and the motive for extra effort would be lost. When a man does the work in Scheme standard time, his bonus is 20 per cent, but the bonus starts when the work is performed in two thirds standard time. From two thirds standard to standard time, there is a rising scale until men be- come 100 per cent efficient, or do the work in standard time, when the bonus becomes 20 per cent. If a worker does the work in still less than standard time, he gets the bonus of 20 per cent plus the value of the time saved at the standard rate. The practice is not to compute the bonus unit by unit of work, but on the sum of the work done during a bonus period, usually a month. Daily records are kept of each SCIENTIFIC PIECE-RATE SYSTEMS 353 man's performance. Each job or unit of work has stand- ard time. The sum of the standard hours' work is found by adding the standard times for all jobs or units of work performed. The sum of the operation! actual hours of work is known. By the com- parison of the actual time with the standard, the effi- ciency percentage is ascertained. Suppose a man works twenty-six days of eight hours each, or two hundred and eight hours in a month, at a wage of forty cents per hour. The time wage for the month is $83.20. By adding the standard times of the units of work, it is found that this worker performs one hundred and eighty hours of standard work. His efficiency is ^ff of 100, or 86.5 per cent. There is a prepared table of percent- ages for bonuses, from performances in 66f per cent of standard time to 100 per cent. By looking over the bonus table, this percentage gives a bonus of 7 per cent. Therefore the bonus is 7 per cent of $83.20, or $5.82. If work is found defective, has to be done over and the fault lies with the worker, standard time is counted but once, and the efficiency of the man as well as that of the foreman diminishes. Foremen and Foremen bosses also receive bonuses. The average receive efficiency of his men gives the efficiency per bonuses, cent of the boss. By comparison with the table of bonuses, the amount of the bonus is easily ascertained. The Emerson system is used for ordinary piece work and for job work. Where the work consists in turning out like pieces of goods, it is simpler than in job work. Standard time is ascertained, and introduce a one set of instructions is given to each man, cut in and he is to follow instructions. Workers are l^f^^^ instructed in best methods until they form habits of work. Sometimes inducements are given to workers who turn out 100 per cent efficient work to 354 ECONOMICS OF EFFICIENCY make suggestions for improvements. These are studied by experts in charge of standard time, and if a sugges- tion is accepted, a reward is given. If by new methods, devices, or machinery, standard time is reduced, before it is done, the workers are consulted and shown that by instruction in the new methods they are able to perform the task with the same effort and turn out the same amount of work as before, but in shorter time. Allow- ance is made for instruction, and if properly explained, and with fairness and justice on the part of the em- ployer, the average worker will not object to a cut in standard time when it is shown that he is not the loser. New instructions are given, these are followed in place of the old, and workers are carefully instructed in their use. The efficiency and bonus percentages do not change. In the case of job work, each job is carefully analyzed and planned before it is given to the workers. The How it experts in charge decide upon best methods, works with machines, and tools to use, and these as well as job work. routeing are given on instruction cards. The standard times for the jobs are found by experts and given to the workers. The management insists that instructions are followed in all cases, and it remains for the management to keep the plant always equipped with standard machines, tools, and equipment. As in previous cases, the quantity of output should not interfere with, or impair the health of the worker. Prere ui- '^^^ worker should be considered in fixing sites in the standard time, and it should not be made operating ^q^ the most efficient man in a class, but for system. ^-^^ average efficient trained man. If too high, the purpose of the system is lost, and antagonism in place of cooperation is obtained. With proper fixing of standard time, a Kberal bonus, and the management SCIENTIFIC PIECE-RATE SYSTEMS 355 fulfilling its part in doing everything to assist the worker in increasing output, the system should prove satisfactory with ordinary piece or job work. With all wage systems, where increased pay follows increased efforts, extreme precaution should be taken by the employer to see that quality is not im- paired. Provision should be made in every and^quriity. case for proper inspection, and it should not be left to the workers themselves. Quality is an absolute necessity, and no system of wages should be allowed to interfere with turning out a product of the highest quahty and grade. The wage problem concerns two parties, the employer and the employee. EfSciency demands the harmonious cooperation of both for the success of the importance business enterprise. One requisite for this of a satis- cooperation is the satisfactory solution of factory the wage problem. This demands more than ^^^^' the paying of wages or giving a share in the profits. The question is not so much the amount paid, but whether or not the wage paid is a fair and just one. Efficiency is impossible without satisfaction with wages paid. The determination of the method of payment and of the amount paid demands deliberation, tact, and Hberahty on the part of the employers, and judg- ment and reasonableness on the part of employees. Many plants have several systems of payment. The character of the work and of the employees should be specially studied. A system of payment ^.^^ ^ should be adopted which will give the greatest ^age sys- satisfaction and bring about the heartiest tem de- cooperation on the part of the working force, conditions" In one factory, one kind of payment may be best, and in another, another. It remains for the man- agement to make a special study of conditions and adopt 3S6 ECONOMICS OF EFFICIENCY that which will be just, and give satisfaction. The successful solution of the wage problem is so important in efficiency that an employer cannot afford to experi- ment, and should be cautious in determining the system of wage payment, the task, the time, and the remunera- tion, each of which should be based on knowledge and not on guesswork. The day of guesswork is past and that of knowledge is at hand. Every employer should learn the importance of knowledge and base the solution of his wage problem upon it. QUESTIONS 1. What is the Halsey premium plan of wage payment ? Give advantages and disadvantages. 2. What is the Rowan system? How does it operate? 3. Compare the Halsey scheme with the Rowan plan. 4. What is the Gantt bonus system ? How does it operate ? 5. What precautions should be taken in the introduction of the Gantt bonus system ? 6. What are the advantages and disadvantages of the Gantt system ? 7. How is the bonus given to foremen ? 8. What part should employees take in fixing task, time, and rate? 9. What is the differential piece-rate system? Give its characteristics. 10. Compare the bonus system with the differential. 11. What are the advantages and disadvantages of the differ- ential system ? 12. What precautions should be taken in the installation of the differential system in the treatment of labor? 13. Show how the task idea may be applied to day work. 14. What is the Emerson efficiency system ? 15. Compare the Emerson system with that of Taylor and that of Gantt. SCIENTIFIC PIECE-RATE SYSTEMS 357 REFERENCES Books S. H. Bunnell, "Cost Keeping for Manufacturing Plants," Ch. VIII; C. U. Carpenter, "Profit-Making in Shop and Factory Management," Ch. XI; J. R. Commons, "Trade Unionism and Labor Problems," Ch. XI ; Dartmouth College Conference on Scientific Management, pp. 60-83; H- Diemer, "Factory Organ- ization and Administration," Chs. XXIII, XXIV; J. C. Duncan, "The Principles of Industrial Management," Ch. XV; H. Emer- son, "Efficiency," Ch. X; W. D. Ennis, "Works Management," Ch. IV ; H. A. Evans, " Cost Keeping and Scientific Management," Ch. VIII; H. L. Gantt, "Work, Wages, and Profits," Ch. VI; L. M. Gilbreth, "The Psychology of Management," Ch. IX; C. B. Going, "Principles of Industrial Engineering," Chs. VII, VIII; D. S. Kimball, "Principles of Industrial Organization," Ch. XI; J. L. Nicholson, "Cost Accounting, Theory and Prac- tice," Ch. VI; J. L. Nicholson, "Nicholson on Factory Organiza- tion and Costs," Ch. II; The System Company, "How Scientific Management is Applied," Chs. IX, X. Articles C. B. Auel, "A Review of Existing Wage Systems," American Machinist, Vol. 36, pp. 945-950; K. Banning, "More Work and Fewer Mistakes," System, Vol. 24, pp. 390-397 ; C. G. Barth, " Premium Systems," Iron Age, Vol. 85, pp. 1068-1070 ; C. Bender, " Systems of Wages and their Influence on Efficiency," Engineering Magazine, Vol. 36, pp. 498-512; C. Bender, "Halsey Premium Plan and the Rowan System," Engineering Magazine, Vol. 36, pp. 501-505 ; S. H. Bunnell, "Right Principles in Works Manage- m.ent," Iron Age, Vol. 87, pp. 1084-1085 ; A. H. Church, " Premium and Piece Work," Engineering Magazine, Vol. 46, pp. 7-18 ; H. Diemer, "Bonus and Premium System," Engineering Magazine, Vol. 29, pp. 719-730; H. Emerson, "Efficiency Reward," Engi- neering Magazine, Vol. 41, pp. 632-640 ; H. L. Gantt, "The Bonus System of Rewarding Labor," Review of Reviews, Vol. 26, pp. 326- 328; H, L. Gantt, "The Task and Bonus System," American Machinist, Vol. 35, pp. 920-921 ; H. L. Gantt, "Compensation of Workmen and Efficiency of Operation," Engineering Magazine, Vol. 38, pp. 813-823 ; Vol. 39, pp. 17-23 ; H. L. Gantt, "The Task and a Day's Work," Industrial Engineering, Vol. 10, pp. 363-368 ; 358 ECONOMICS OF EFFICIENCY H. L. Gantt, "Task Work the Basis of Proper Management," Southern Machinery, Vol. 27, pp. 44-48 ; H. L. Gantt, "Practical Application of Scientific Management," Engineering Magazine, Vol. 41, pp. 1-22 ; H. L. Gantt, "Bonus System of Wages," Engi- neering Magazine, Vol. 35, pp. 698-701; F. B. Gilbreth, "The Making and Use of Instruction Cards," Industrial Engineering, Vol. II, pp. 380-390; C. B. Going, "The Efficiency of Labor," Review of Reviews, Vol. 46, pp. 329-338; F. A. Halsey, "The Premium Plan of Paying Labor," American Society of Mechanical Engineers, Transactions, Vol. 12, pp. 7SS-780; J. Nelson, "Bonus and Rating for Works Executives," Iron Age, Vol. 91, pp. 1159- 1162 ; F. A. Parkhurst, "Piece Work, Premium, Bonus, Differen- tial Rate and Differential Bonus Systems of Wage Payment," Industrial Engineering, Vol. 10, pp. 337-345; E. H. Schell, "A Simple Piece Rate System," American Machinist, Vol. 39, pp. 765- 768; H. F. Searle, "The Premium System for the Payment of Wages," Journal of Accountancy, Vol. 9, pp. 321-339; S. E. Thompson, "Taylor Differential Piece Rate System," Engineering Magazine, Vol. 20, pp. 617-630. CHAPTER XVI Organized Labor and Efficiency Methods A trade union, as defined by Mr. John Mitchell, is an association of workmen who have agreed among them- selves not to bargain individually with their Trade employer or employers, but to agree to the union, its terms of a collective or joint contract between °^®^^^g- the employer and the union. Employees as well as society in general have benefited as a result of trade unions. No one can deny that unions have been pro- ductive of an immense amount of good, but unions have not always been just and right in the wielding of their power. Unscrupulous leaders have often gained control, and wielded the power of lousTeaders. unionism for personal aggrandizement or for revenge for fancied wrongs committed by employers. Trade unions should learn to avoid the unscrupulous, narrow-minded leaders, and trust their power in the hands of leaders of sound judgment only. If unions use precautions so that leadership is intrusted in the hands of men of character, they will gain far more in the end, and it will be a great advancement in bringing about a better understanding between employers and em- ployees, and a reaHzation of the fact that workers should cooperate and unite their interests with those of their employers, and not be antagonistic. All the . demands of unions should be fair and just, unj^jst.^ °^ Unions may be guilty of exploitation just the same as employers, and exploitation by either is unjust ,and should be avoided. Dealings between unions and 359 36o ECONOMICS OF EFFICIENCY employers should be reciprocally based upon fairness and justice. The industrial progress made in the past has been through the ehmination of work and not by making it. The same will be true of future industrial depen?s^ growth. Progrcss demands the constant in- uponthe vention of new and improved means and ^f^°"^k^°^ methods of production, and the accompany- ing saving of labor. The great industrial progress of the past century was directly due to the invention of labor-saving machines. The period of in- vention which gave to the world many labor-saving machines, and so completely revolutionized the in- dustrial system, is known in history as the Industrial Revolution. We are in the dawn of a second industrial revolution which is also based upon labor-saving devices. The focus of attention is upon the human element in industry and not, as in the previous case, upon the me- chanical. The aim in this labor-saving movement is to so direct human energy that the best possible results are obtained from the energy expended. The changes which will result from the saving of labor through better direction will be as important upon our industrial system as the previous era of labor-saving machines. The first industrial revolution proved very beneficial to society in general, and the second will eventually prove as beneficial as the former. The average worker is more or less suspicious of his employer, and this has been true since man began to Employees work for man. A worker has a feeling that suspicious his employer will take every opportunity to of em- increase his profits to the disadvantage of the poyers. worker. Sad to relate, history proves to us that during the eighteenth and nineteenth centuries, the worker was justified in being suspicious of every ORGANIZED LABOR AND EFFICIENCY 361 innovation introduced by his employer. Employers as a whole are responsible for instilling into employees this feeling of suspicion of their actions. It is not the fault of the worker that he is against anything that is unwisely or thoughtlessly sprung upon him. The first thought is that it is for further exploitation, and when history proves that this is usually true, can you blame him? It may be said that even to-day, the wage^arner^ isj;suany_^epLdc^ new progosalajidsuspicious of any innovation. This attitude isalways present with ever3r"laBoring force, and is one which should be considered in the introduction of any change which affects workers. Failure is fre- quently due to the lack of its realization, and if not fail- ure, considerable hindrance is put in the way of the smooth introduction of a change. The attitude of suspicion and of doubt of the intention of the employer should first of all be changed to one of confidence and the belief that if a change is pgeij^ ^f made, it is not for the exploitation of labor, confidence but for its uphfting in one way or another, inem- This can be acquired only, in any laboring ^ ^^^^' force, by being open, frank, and just in deahng with labor, by taking labor into confidence in the case of a change, and by carefully explaining the reasons for the change and its effect upon labor. Such q^^red.^" has not been the practice of employers in the past, and the result has been, in the introduction of changes, resistance, opposition, and even bitter struggle, often resulting in failure. Efficiency demands protection of labor and the abolition of exploitation in every form. It stands for fairness and justice in dealing with labor, and requires the taking of labor into confidence in all dealings of the management with labor. The reahzation of this is absolutely necessary to change the long-rooted 362 ECONOMICS OF EFFICIENCY attitude of suspicion into one of confidence, which is essential and necessary to obtain the cooperation of the laboring force, and an absolute essential for the successful introduction of efi&ciency methods. For a century after the introduction of the factory system, whatever tended to increase output met with Opposition Hiore or less strenuous opposition from the to new workers. Workers invariably beHeved that machines. ^]^g benefits of improved machinery accrued to the employer, and not to the employee. During the last quarter of the nineteenth century, many union- ists bitterly opposed the introduction of machinery, and refused to allow union men to operate machines. Coopers, iron workers, stonecutters, plumbers, and cigar makers followed this policy. During recent years, organized labor has gradually been forced to recognize the fact that the introduction of labor-saving machines is necessary for industrial progress, and that labor benefits thereby. A different attitude to- ward the introduction of improved machinery exists to-day from that which existed even a decade ago, because organized labor does not oppose generally the introduction of new labor-saving machines, but welcomes such changes. In England, the Lancashire unions encourage improvements in cotton factories, knowing that upon the prompt adoption of them de- pends the very Hfe of the industry in which they are engaged. Laborers should realize that the present supply of useful things is possible only with machinery, and with- Effects of ^^^ ^^' ^^^y would not be enjoying their new ma- present standard of living. They should also ciunes on know that it is only by more and better ma- chinery that the commodities now enjoyed can be increased and cheapened so as to give them ORGANIZED LABOR AND EFFICIENCY 363 greater comforts. From the point of consumption, a greater blessing comes from increased output. Many workers doubt if it would really benefit the working people to turn out a larger output than at present, and still believe that an increased increased output will throw men out of work. History output shows that increase in output in any trade beneficial always results in more men being employed, and usually in an increase in wages. The cheapening of any article in common use almost immediately results in an increased demand for that article. Take the case of shoes. The use of intricate labor-saving machines for doing every element of the work which was concrete formerly done by hand has resulted in the case of making of shoes at a much less cost than they ^^°^^- were formerly made. As a result, shoes have greatly decreased in price, and have become so cheap that now almost every man, woman, and child in the working classes buys one or two pairs of shoes a year and wears them all the time, whereas formerly each worker could not afford more than one pair of shoes a year for himself, and his wife and children were forced to go barefooted six months of the year. The demand for shoes has so increased that there are more workers engaged in the shoe industry to-day than ever before. As a result of the increased output coming from the use of more im- proved machinery and better methods, workers are en- joying comJorts of living which would have been impos- sible without them, and are not only enjoying higher wages but more of their number are employed than would have been if such improvements had not taken place. Yet even to-day, many unionists and workers may be found who still beheve, as their fathers before them, that it is against their best interests for each man to turn out each day as much as possible. 364 ECONOMICS OF EFFICIENCY The average worker does not realize that the more labor produces, the more it has. The greater the aver- Wages de- ^.ge output of the average individual in a pend on particular trade, the greater will be the aver- output. g^gg wage earned in that trade. The worker contributes a certain share in production, and if he gets more than that share, he is exploiting some one else, but if he is not getting that share, he is being exploited. The wage which he receives is paid from the share he con- tributes. It stands to reason that the greater the share which the laborer produces, the greater will be his wage. This is invariably the case, as the history of wages proves. The greatest blessing to the laborer in his struggle for increased wages is to be able to increase his share of production. Every worker should realize that every machine, method, and device to increase the product of labor is a blessing to labor. The very same thing is true of the new efhciency move- ment which has proved true in the case of labor-saving Efficiency machines. Efficiency increases output with the consists of same amount of energy previously expended labor-saving and the same time occupied. It allows the worker to increase his share in production, and consequently assures him a higher wage. Efficiency will bring to the door of the worker many comforts which he does not now enjoy. Workers should reaHze that efficiency methods are not subtle schemes on the part of employers to advance their interests at their expense. It took nearly a century and a half for workers to realize that improved machinery was for their good. The realization that increased output and improved machines work for improved standards of living and higher wages will soon convince workers that efficiency methods will work for the same end. One of the greatest fallacies believed by many union- ORGANIZED LABOR AND EFFICIENCY 365 ists is that restricted output would benefit the working classes. This fallacy is the result of the erroneous belief that there is just so much work in the Effect of world, and the less one does the more there restricted will be for others. It was long held as a output on unionist doctrine that if a worker worked too '^°^ ^^^' fast or too long hours, it would take employment away from others. Enlightened unionists to-day realize the fallacy of this doctrine, but it is still beheved by many. In many cities, the plumbers' unions forbid the use of the bicycle in going from job to job because one can go more quickly than on the cars or Jfg^trictton ^ by walking. A few years ago, the carpenters' union of Chicago declared that any member found guilty of excessive work and rushing on a job would be subject to a fine of five dollars. It is a common practice of union men even to-day to make it unpleasant for any member found hastening with his work or continuing work after quitting time. It has been a hard struggle to convince unionists that restricting output works to their disadvantage rather than to their benefit. This short- sighted policy must be blotted out, and unionists should be made to realize that all restrictions upon output, whether due to lack of sufficient incentive or other causes, inevitably lead to a reward commensurate with the output, and that in every trade wages received be- come ultimately proportionate to output. During the nineteenth century, unions usually pur- sued the policy of increased wages and curtailed produc- tion, believing that it would improve the changed condition of labor. Little did they know that views of there is a close relation between wages and "^o^^®^^. output. Workers in general were inspired to curtail output by the widespread delusion, that there will not be work for all if all work to their utmost. Beginning 366 ECONOMICS OF EFFICIENCY with this century, the fallacy of restriction of output began to dawn upon the more enhghtened unionists, and their influence upon the laboring force in general has been to impress it upon an increasing number of workers. Every day the fallacy is being brought home to a greater number of workers, and the time is not far distant when the working force in general will hold up to ridicule what for many years was held as an absolute necessity in increasing wages and improving their condition. All who believe in the policy of restriction will oppose the efhciency movement. Efficiency demands the very Efficiency opposite, the greatest possible increase in out- and restric- put without impairing the health of workers, tion of The universal acceptance of the old belief of ou pu . restriction of output, as a delusion detrimental to the interests of workers, will make workers the more easily realize that increased output coming from the various efficiency methods is for their benefit. This will break down the opposition which developed so strongly against the efficiency movement in its incipient stage. The fallacy of the restriction of output idea must be made plain to all workers because it is a strong factor working against the acceptance of efficiency methods as beneficial to workers. Restriction of output is antagonis- tic to efficiency. Efficiency, as a result of the rapid con- version of the workers from the restriction of output delusion, will have far less opposition to the introduction of its methods than was experienced in the introduction of labor-saving machines. Energy, skill, and dexterity are the worker's capital Efficiency ^^^ should be adequately protected by law. and protec- Organized labor declares that under highly tion of specialized conditions workers are frequently wor ers. compelled to work at a speed which impairs their health and their efficiency. A prominent defender ORGANIZED LABOR AND EFFICIENCY 367 of unionism declares that no industry has a right to more than that amount of the worker's energy which can normally be replaced by the food and the rest allowed him. Such an attitude of unions should be supported by every one. Speeding, overdriving, and sweating, as they impair health and efficiency, should be abolished. Speeding machinery at the expense of sapping the vitality of workers is one of the greatest crimes on humanity. Efficiency demands the conservation of the human ele- ment. It demands health and every possible precaution and care on the part of the management to maintain working conditions most conducive to health, and to take the very best care of workers. It further demands a careful study of the work to be performed, and of the workers so that workers will not work beyond their strength. Efficiency stands for a pace which may be maintained day after day without impairing the health or the vitality of the workers. It is not obtained Methods of by driving or by speeding, but through the protecting careful directing of energy, and having the w°^^®^s- worker perform his task with the best methods, amidst the best environments, and with the best conditions pos- sible. It is not efficient to speed up temporarily, and overstrain, overfatigue and undermine the health of workers, but it is efficient to scientifically investigate con- ditions and workers, and to guide their energy so that the greatest possible results can be obtained from the amount of energy spent, but at the same time, the fact is borne in mind that the pace and the work should be such that workers can maintain their speed day after day without impairing their health. Efficiency prolongs the productive period of a man's Hfe, and makes his produc- tive period more productive by protecting him against fatigue, and everything which impairs his health. The 368 ECONOMICS OF EFFICIENCY efficiency movement from the standpoint of health is one of the greatest blessings which has befallen labor. The charges that efhciency stands for speeding, sweating, and overdriving are absolutely false, and are made by those who have an entirely wrong conception of what efficiency stands for. There never has been an industrial move- ment which promises so much for labor in general, organ- ized or unorganized, as the efficiency movement. The charge has been made that the efficiency move- ment means greater specialization of labor, and that this . will make work more monotonous, demorahze an/in- ^^c laboring class, and produce a class of teUectuai workers of lower intelligence. Efficiency on ment°^' ^^^ other hand demands a high degree of in- telligence, provides for the careful training of workers, and chooses occupations for workers for which they are by nature best fitted. Efficiency demands care- ful training of the inefficient to make them efficient. It recognizes the need of an intellectual laboring force, and the providing of careful training and instruction in order to give skill and dexterity. Not only that, but it de- mands various ways of making the laborers more intel- lectual as free libraries, free classes, and lectures, and in so doing, gives the laborer an opportunity to extend his knowledge to a broader sphere so that it may be pos- sible for him to make the most out of his occupation. Efficiency stands for the uplifting of labor, for making the inefficient efficient, and for giving the industrial system of to-day better trained, more intellectual, and better skilled workers. Some see in the efficiency movement a cause of alarm, claiming that it casts upon society an ever increasing army of unemployed. The inefficient and the old, they claim, will be dismissed without compunction, and this will entail an increasing burden upon society and cause ORGANIZED LABOR AND EFFICIENCY 369 much suffering to the discharged workers. As already stated, efficiency endeavors to make efficient workers out of the inefficient through careful training. It ^^ . recognizes permanency m service which is and the quite the opposite of a temporary speeding up, care of the sapping the vitahty of workers, and then dis- ^^jf^^gyg missal. Efficiency demands the protection and care of the sick, and recognizes the fact that workers who through their hves have assisted in building up a business have a right to be protected when old age over- takes them. Efficiency strongly advocates sick benefits, and pensions to those who grow old through _. . . . ^ ^, . , ^ • ^ 1. • • Pensions. giving their best service to a business organi- zation. All business men who beheve in efficiency advo- cate that those who have spent their hves in building up a business should be cared for. Pension schemes have during the past few years made wonderful growth, and their growth will be still greater with the greater spread and more universal advance of efficiency methods. For safeguarding against inefficiency, and for the provision of protection for old age, the efficiency movement promises a great blessing to the laboring class as a whole. Many unionists believe that the piece-rate system of rewarding labor is some arrangement to squeeze the worker into making him work for less wages, opposition Unionists generally consider piece rate as an of unions evil to be abolished whenever possible. Never- *o *^® P^^^e theless, many successful unions operate by piece rate. There is a growing tendency to view piece rate with somewhat greater favor, as a proper system for rewarding labor according to its efficiency. The present widespread distrust of piece rate is due to the practices of employers in the past. Experi- ence has taught workers that when wages ex- ceed a certain amount, their piece rates are cut, so that 370 ECONOMICS OF EFFICIENCY they earn no more for working hard than they do for taking it easy. This is not the fault of the piece-rate system, but ignorance in the operation of the system. Rates are fixed by guess and no attempt made to find out what would be just, and no knowledge of what would be the increased output as a result of the introduction of the piece-rate system. With such a haphazard method of introduction, readjustment and rate cutting results, and trouble arises. The system should not be blamed but the ignorance of employers. Efhciency methods demand that wherever possible the laborer should be paid according to piece rate, but T, instead of guess in ascertaining the task and Proper . .^ . . . ^ . , , piece rates the rate, scientific investigation is made, and benefit as we havc seen, a just and fair rate is ascer- tained. Knowledge takes the place of guess. Labor is not allowed to overtax its strength in work. All possible means are taken to find out the proper task and its fair and just remuneration. What is fairer than the rewarding of labor wherever possible according to its efficiency, and with a reward that is fair and just? With a bonus or premium, extreme care is taken to guarantee labor a fair and just reward, and, to the effi- cient, a greater reward based upon productivity. It matters not the scheme of payment for wages, the worker himself is carefully studied, and every precaution taken to conserve his health and strength. Increased wages are not the result of overtaxed, overtired, and overstrained muscles. With efficiency methods, good wages can be earned by the average worker without strain, overfatigue, and impairing health. Opposition to the piece-rate system of the efficiency movement has been chiefly due to a misconception of what efficiency stands for. As soon as workers know the demands of efficiency, and its precautions to guarantee labor its ORGANIZED LABOR AND EFFICIENCY 371 fair and just remuneration, they will realize that the efficiency movement is ever protecting and looking out for their interests. Mr. Mitchell states the view of organized labor when he declares that the destruction of the working men is the individual bargain, and that their salva- Forms of tion is the joint, united, or collective bargain, wage ^ There are two forms of w^age bargaining, bargaining, individual and collective. If each worker makes a separate and independent bargain with his employer, the method is one of individual bargaining. ^ ^. .^ , -p. , r 1 1 Individual. If employees or a group 01 employees send representatives to bargain with the employer, and an agreement is reached which fixes the standard wage for each group or for each class of work, the method is collective bargaining. The abihty to require collective bargaining is the chief aim of union- ism, and is a right which every union man is very jealous in demanding and in protecting. Collective bargaining is essential to guard the in- terests of labor ; few to-day advocate its overthrow and the return to individual bargaining. It is an . integral part of our industrial system, and its does^not^ operation is necessary and essential for Indus- abolish trial growth and progress. Nearly all abuses ^oiiective and unjust conditions affecting workers have arisen where workers have not enjoyed this right for determining wages and conditions under which work is carried on. The efficiency movement in its demands for fairness and justice in the treatment of labor does not advocate the abolition of collective bargaining, but its continuance as a further guarantee for the protection of labor. A misconception of efficiency exists among em- ployers as well as among employees. Some employers have declared that the efficiency movement would 372 ECONOMICS OF EFFICIENCY abolish collective bargaining, would restore individual bargaining in all classes of labor and would at the same time gradually cause the disappearance of unions. Such employers do not know of what they are talking. The efhciency movement stands for the cooperation of labor working through unions and collective bargaining. The unions should not be controlled by selfish narrow- minded leaders but by broad-minded, fair, and just men who work not for selfish motives but for the lead^^s. ^^^^ ^^^ i^^^ treatment of labor in their par- ticular trades. Unionism has suffered more from the abuse of power by unprincipled, selfish, and ignorant leaders than from any other cause. Unionism, to accompHsh the most good, has no place for such leaders, nor has the efficiency movement. Unions in general have opposed the premium and the bonus systems of paying labor, and there is no reason for such opposition. The task, its method of No basis ^ performance, the time and the remuneration tion°of'°^^" allowed are not fixed except with the coopera- unions to tion of the laboring force affected. Both em- premium ployers and employees work in harmony in systems. their effort to establish a fair task, just time, and fair remuneration. The premium or the bonus is fixed with the assistance of labor through its representatives. It is short-sightedness on the part of unions to oppose either scheme for remunerating effi- ciency because it is just that greater efi&ciency should be rewarded, and the premium or the bonus is a fair way of remuneration. Unions should bear in mind that the premium or the bonus is not earned at the expense of overstrain, fatigue, or impaired health. If this were so, it would increase inefficiency and defeat the very purpose of both premium and bonus schemes of rewarding labor. Success and the greatest benefit to labor come ORGANIZED LABOR AND EFFICIENCY 373 through unions and collective bargaining, but are based on justice and fairness in dealing with employers. Fairness and justice between the two great classes should be reciprocal. Efficiency demands such reciprocal rela- tions, and only where such prevail, can cooperation and efficiency be found. Efficiency demands conditions of work most conducive to health and to continuity of service. Such conditions are ascertained by careful and expert investi- -gnion (le- gation, and with the cooperation of labor. In mands the past and at present, unions base their based on demands in the case of wages, conditions of ^^^^^' work, and hours of work, upon guess. How much better it would be to follow the dictates of efficiency and base their demands upon knowledge. This recognition by unions would give us a new unionism accompHshing more for labor than the old, working in harmony with em- ployers for industrial progress, and would confer benefits upon labor and society in general. Mr. John Mitchell strikes a keynote when he declares that if the trade-union movement is permanently suc- cessful, it will be due to the compelling of constant invention of improved means and unionism methods of production, and the continual and effi- saving of labor, and that trade-unionism should antagoSstic make labor valuable, compel employers to save it wherever possible, and make the competition among workers one of efficiency. With this declaration of the aims of unionism coming from its most distinguished and ablest member, can organized labor consistently oppose the efficiency movement ? The opposition to efficiency methods will continue for years to come, and will be due to ignorance on the part of workers of what efficiency really means and its demands on labor. Until unionists are educated as to what unionism stands for, serious 374 ECONOMICS OF EFFICIENCY opposition will arise to efficiency methods. A great need is education in the principles of unionism, in what effi- ciency methods stand for, and in what way labor will be affected as a body. As soon as union men know what unionism stands for, and what the efficiency movement means, they will realize that to follow consistently the principles of unionism they cannot oppose the efficiency movement. There is urgent need of teaching employers what effi- ciency means and what it demands. Few employers Ignorance really know what efficiency demands of them as to the and of employees. As a result of this igno- meaning of rance, many false views have been given as to ciency. ^^^ effects of efficiency methods upon labor. Fallacious effects are stated, and cause antagonism to arise between employer and employee, as, for example, many employers have declared that efficiency stands for the abolition of collective bargaining. This fallacious notion has caused no end of opposition from organized labor. A number of employers have said that efficiency stands for the abolition of unionism, and this has aroused many of the unions to stand at almost open arms against efficiency methods. The teaching of the fundamental principles of efficiency is essential to employers as well as employees, and when the principles are understood, each will realize that when efficiency methods are properly carried out, they confer benefits upon both, and it will be to the interest and advantage of each to hasten their adoption in every plant and enterprise. The efficiency system is destined to become an in- tegral part of our industrial system in the future. Mis- takes will be made by employers in the installation of efficiency methods, and opposition will be made by mis- informed unionists. Knowledge must take the place of ignorance in the conducting of business enterprises, and ORGANIZED LABOR AND EFFICIENCY 375 efficient methods of doing work will sooner or later dis- place inefficient methods. The change may be retarded, but the constant pressure of economic forces will finally break down all opposition. Men ^y^^'m an working for themselves do not object to integral methods which will make their work easier part of our and more productive. Why do wage-earners system! oppose efficiency? Efficiency adds to wages, to the comfort of workers, protects their health, saves them from fatigue, and prolongs their years of producti\dty. The opposition which exists to-day is the result of lack of knowledge of the principles underlying the efficiency movement. The dissemination of these principles is what is badly needed to break down this opposition, and will change the opposition into a fervent support of efficiency methods. Efficiency is necessary for progress, and opposition to its methods is due to ignorance and suspicion rather than to observation of what efficiency will do. opposition A large amount of opposition also comes from to efficiency the remembrance of bitter experiences of the ?"® *o past. Teaching the laboring classes the *s°°^^°*^®- general principles of unionism and of efficiency will clear away much of the opposition because it will be shown that unionists should support efficiency if they support their own principles. There is no basis for any opposition of organized labor to efficiency methods ex- cept ignorance, bad economic theory, and the remem- brance of bitter experiences. Any system which lowers costs by eliminating unnecessary labor should be wel- comed and encouraged. It is inefficiency which retards industrial progress. The converting of inefficiency into efficiency benefits labor, employers, and society in gen- eral. Theodore Roosevelt once declared that we have no higher duty than to promote the efficiency of the 376 ECONOMICS OF EFFICIENCY individual and that there is no surer road to the effi- ciency of the nation. QUESTIONS 1. What is a trade union ? 2. Show how society is benefited by unions. 3. What has brought about the present attitude of suspicion of many laboring men toward employers ? 4. Account for the opposition of many unionists to new ma- chines and new methods of production. 5. What is the fallacy of the restricted output theory? 6. Why are so many union people opposed to the piece-rate system ? How may this opposition be overcome ? 7. Show how proper piece rates benefit labor. 8. What are the different forms of wage bargaining ? Why do unions place so much importance on collective bargaining ? 9. Show that efficiency does not abolish collective bargaining. 10. Show that the aims of unionism and of efficiency are not antagonistic. 11. Show that much of the opposition of unionism is due to selfishness of union leaders. 12. What are the methods of protection of workers advocated in the efficiency movement ? 13. What methods should be adopted by employers to gain the confidence of employees? 14. Show that progress depends upon the elimination of work. 15. Show that increased output is beneficial to labor. REFERENCES Books C. L. Bolen, "Getting a Living," Ch. X; F. T. Carlton, "The History and Problems of Organized Labor," Ch. VI ; Clark and Wyatt, "Making Both Ends Meet," Ch. VII; J. R. Commons, "Labor and Administration," Chs. IX, X; F. A. Fetter, "The Principles of Economics," Ch. 27; H. L. Gantt, "Work, Wages, and Profits," Ch. Ill; J. Goldmark, "Fatigue and Efficiency," Ch. VII; A. T. Hadley, "Economics," Ch. XI; J. Mitchell, "Organized Labor"; E. R. A. Seligman, "Principles of Eco- ORGANIZED LABOR AND EFFICIENCY 377 nomics," Ch. XXVII; F. W. Taylor, "Shop Management," pp. 186-194. Articles L. D. Brandeis, "Organized Labor and Efficiency," Survey, Vol. 26, pp. 148-151; H. R. Callaway, "Efficiency and the Worker," Engineering Magazine, Vol. 45, pp. 715-717; F. T. Carlton, "Scientific Management and the Wage Earner," Journal of Political Economy, Vol. 20, pp. 834-845 ; J. R. Commons, "Organized Labor's Attitude toward Industrial Efficiency," American Economic Review, Vol. i, pp. 463-472; T. N. Carver, "Machinery and the Laborers," Quarterly Journal of Economics, Vol. 22, pp. 210-232 ; H. B. Drury, "Organized Labor and Scien- tific Management," Industrial Engineering, Vol. 14, pp. 99-101, 145-149 ; J. P. Frey, "The Relationship of Scientific Management to Labor," Journal of Political Economy, Vol. 21, pp. 400-411; H. Godfrey, "Attitude of Labor towards Scientific Management," Annals of American Academy of Political and Social Science, Vol. 44, pp. 59-73 ; J. Golden, "Industrial Peace from the Stand- point of a Trade Unionist," Annals of the American Academy of Political and Social Science, Vol. 44, pp. 141-144; J. Golden, "The Attitude of Organized Labor," Journal of Accountancy, Vol. 1 2, pp. 189-194 ; R. Hugins, "The Effect of Scientific Manage- ment on Wages," South Atlantic Quarterly, Vol. 13, pp. 51-68; A. S. Johnson, "The Effect of Labor-saving Devices upon Wages," Quarterly Journal of Economics, Vol. 20, pp. 86-109 ; P. Klapper, "Organized Labor's Attitude toward Machinery," Journal of Accountancy, Vol. 10, pp. 321-333 ; "Labor Unions and Efficiency," Nation, Vol. 92, p. 334; H. T. Lewis, 'The Problem of the Effi- ciency of Labor," Popular Science Monthly, Vol. 82, pp. 153-162 ; J. Mitchell, "Economic Necessity of Trade Unionism," Atlantic Monthly, Vol. 113, pp. 161-170; W. B. Prescott, "Trade Unions and Industrial Education," National Education Association, 1910, pp. 265-273 ; C. B. Thompson, "The Relation of Scientific Man- agement to the Wage Problem," Journal of Political Economy, Vol. 21, pp. 630-642 ; H. White, "Machinery and Labor," Annals of American Academy of Political and Social Science, Vol. 20, pp. 223-231 ; A. P. Winston, "The Trade Union and the Superior Workman," Atlantic Monthly, Vol. 90, pp. 794-801. INDEX Accident prevention, efficiency and, 254; divisions of, 255; spirit, 271; how attained, 271; museum, 273; necessary measures for, 280. Accidents, fatigue and, 188 ; classes of, 252 ; losses from, 253 ; causes of, 255 ; ignorance and, 256 ; carelessness and, 256; clothing and, 258; poor lighting and, 259; fires and, 260; slippery floors and, 261 ; alcohol and, 262 ; long hours and, 263; intense work and, 264 ; safeguards and, 265 ; man- agement and, 273. Adaptability, need of, 139. Advertising, purpose and aim of, 64 ; requisites for good, 64. Age limit, 119. Ailments, treating slight, 228. Aim of the book, 9. Air, effects of foul, 210; value of pure, 210; circulation, 213; water in, 215; composition of, 287. Air conditioning, factors in, 211. Alcohol, effects on workers, 187; acci- dents and, 262. Antidotes to fatigue, 186. Apprentices, care in selection, 126, 141 ; imder old apprenticeship system, 135; in corporation schools, 142. Apprenticeship system, origin of, 134; characteristics of, 134 ; limitations of, 134; abuses of, 134; crude form of training, 135 ; abolition of the old, 136; a modified, 136. Artificial lighting, means of, 205; re- quirements for good, 206. Ashes, how to care for, 293. Athletics, promotion of, 245. Attendance, encouraging prompt, 80; causes for irregular, 80. Authority, clearly defined, 83. Automatic, fire alarms, 298 ; sprinklers, 303. Average worker, methods of, 92. Baldwin Locomotive Company, 145, 147. Banks, savings, purpose of, 246. Bargaining, collective, 371; individual, 371. Bathing, facilities for, 239. Benefits, kinds of, 243 ; how to manage, 243 ; new feature in, 243. Blackford, Dr. Katharine, 108. Brain, fatigue and the, 181. Buildings, design of, 54. Business, former methods of, 10; tendency of modern, 18; activity, aim of, 20; efficiency in, 29; goal in, 29; scientific study of, 40; guess- work in, 89; principles vmderlying, 93 ; ruling force in, 199. Business enterprise, aim of, 37. Business management, lax methods in, 10. Buying, waste in, 35; importance of quality in, 56; importance of, 63. Capability, ability to tell, 125. Capital, definition of, 23 ; kinds of, 23 ; advantages of, 23. Card record, for each worker, 127; advantages of, 127. Carelessness, efficiency and, 124; accidents and, 256. Changes, how to introduce, 34. Characteristics, promote efficiency, 123; how to detect, 124. Chemical extinguishers, 306. Chemistry of fire, 287. 379 38o INDEX Child labor, efficiency and, 38; acci- dents and, 276. Cincinnati, University of, 149. Cleanliness, need of, 188; accidents and, 259. Clock, portable, 301 ; stationary, 302. Club house, 245. Clubs, kinds of, 246 ; work of, 246. Collective bargaining, meaning of, 321 ; aim in, 371; efficiency and, 371. Combustion, meaning of, 287; spon- taneous, 288. Compensation in accidents, 279. Competition, definition of, 20 ; business men and, 20; results of keen, 21; basis of successful, 21. Computed efficiencies, value of, 29. Confidence, in employer, 361 ; how ac- quired, 361. Conservation, of workers, 7; of health, 201 ; of the eye, 206. Contentment, effect on output, 78. Contract system, 321, 337. Cooperation, definition of, 70; im- portance of, 70; how to gain, 100. Coordination, definition of, 48; es- sentials for, 48. Corporation school, definition of, 140; methods of a, 140; instructors in a, 141 ; period of apprenticeship in a, 142 ; character of training in a, 144. Cost system, definition of, 51; im- portance of, 51 ; requisites for a, 52; advantages of a, 52. Credit, place in business, 65 ; requisites for granting, 65. Day's work, a reasonable, 92. Delaney, J. C, 257. Denominator, how to find, 28. Details, handling of, 49. Differential piece-rate S3^stem, requi- sites for the, 349; the rate in the, 349; in operation, 350. Discipline, a necessity, 83 ; methods of enforcing, 84; fining and, 85. Dispensary, how conducted, 229. Dissipation, efficiency and, 83. Division of labor, definition of, 13; machinery and, 13. Draughts, dangers from, 216. Dress, standard, 258. Drifter, meaning of, 120; how to tell a, 120. Drinking water, importance of, 234; sources of, 235 ; how supplied, 236. Driving, evils of, 75. Dust, kinds of, 216; effects of, 217; and sickness, 218; means of, pre- vention, 218; dangers in, 297. Eating, habits of, 172. Economist, importance of, 8. Educational system, efficiency and, 31. Educational work, kinds of, 244. Efficiency, the goal in business, 6; essence of, 7 ; a public need, 27 ; definition of, 28; how to ascertain, 28; denominator in, 28; in business, 29 ; purpose of, 29 ; railroads and, 30; in public administration, 30; and educational system, 31 ; applying, to work, S3 ; problem of, 37 ; and strenuousness, 37 ; and child labor, 38 ; benefits from, 39; knowledge and, 39; system and, 48; coordination and, 48; demands of, 50; plant location and, 53 ; quality and, 57 ; hiring men and, iii; health and, 116; nervous system and, 117; habits and, 119; carelessness and, 124; training and, 156; fatigue and, 178; intemperance and, 186; en- vironment and, 202; dust and, 216; restriction of output and, 366; in- tellectual development and, 368; collective bargaining and, 371. Efficiency movement, evolution of, 27 ; extent of, 27; definition of, 33; and intelligent workers, 39; and the management, 98. Efficient cycle, 183. Electric lighting, 205. Emergency hospital, 226. Emergency room, equipment of, 275. Emerson, H., 352. INDEX 381 Emerson efficiency system, 352; in operation, 353. Employers' liability, systems of, 278. Employment, barriers to, 118. Employment department, 115. Energy, waste of, 36 ; methods of con- serving, 194. Enthusiasm, 73. Environment, standard, 20; efficiency and, 202 ; returns for proper, 220. Exhaustion, causes of, 179. Experimenting with men, no. Exploitation, does not pay, 8; imjust, 359- Eye, conservation of, 206 ; strain, 207 ; protection to the, 270 ; infections, 271. Factors in production, 22 ; careful study of, 24. Factory inspection, how made, 278. Factory system, definition of, 2; in- troduced new problems, 3. Fatigue, causes of, 178; effects of, 179; warning of, 180; and memory, 182; and stupidity, 182; and sleep, 183; nourishment and, 185; antidotes to, 186; and intemperance, 187; and accidents, 188; and noise, 189; training and, igi ; real and false, 191 ; unnecessary, 192; wastes from, 195. Favoritism, evils of, 71 ; and promotion, 326. Fining, in disciplining, 85. Fire, losses from, 284; loss and insur- ance, 286 ; chemistry of, 287 ; causes of, 289 ; matches and, 292 ; smoking and, 292 ; controlling a, 298. Fire alarms, automatic, 298. Fire drill, importance of, 311. Fire escapes, precautions with, 309. Fire pail, 306. Fire patrol, 301. Fire prevention, preventing waste through, 284 ; divisions of, 287. Fireproof buildings, 308. Fire tanks, 306. Fire tower, 309. Fire walls, 310. First aid, to the injured, 274 ; jars, 275. Fisher, Irving, 195, 224. Fountain, sanitary, 236. Fumes, how to remove, 219. Gantt, H. L., 343, 344, 345,_35i- Gantt bonus system, definition of, 343 ; standard time and, 344; task and, 345 ; health and, 347. Gases, how to remove, 219. Gas jets, precautions with, 293. Gas lighting, 205 ; ill effects of, 209. Gas stove, precautions with, 295. General Electric Company, 146. Glare, evils of, 208; how to prevent, 208. Globes, purpose of, 208. Goggles, care in using, 270. Goods, moving, 60 ; system in shipping, 60; packing, 61; routeing, 61. Grenades, 307. Habits, efficiency and, 119, 159; defi- nition of, 160; instincts and, 160; examples of, 163; results of proper, 163 ; difficulties in formation of, 163 ; of industry, 165; proper, of work, 171; proper, of living, 171; proper, of eating, 172; classes of, 173; old notion of, 173 ; tobacco, 175 ; tea and coffee, 175. Hadley, President, 20. Halsey, F. A., 340. Halsey premium wage system, meaning of, 340 ; how it operates, 340. Handling men, methods of, 75. Health, signs of, 117; factor in effi- ciency, 200; and profits, 200; con- servation of, 201 ; protection of, 224, Hearing, efficiency and, 117. Heating, methods of, 295. Hiring, importance of, 107 ; common practice in, 109; the right man, in; guesswork and, 112; superintendent and, 112; essentials in, 112. Holding men, methods of, 76; impor- tance of, no. Honesty, 123. 382 INDEX Human factor, long neglected, 5; study of, 11; accurate knowledge and, 12. Humidity, effects of, 214, 215. Ideas, search for new, 40. Ignorance, wastes and, 29; and in- efficiency, 40; in business, 89; and environments, 221 ; accidents and, 256. Ill health, effects of, 201. Illinois law, for air requirements, 213. Illumination, efficiency in, 203. Incentive, kinds of, 75. Incompetency, 139. Indentures, 136. Indigestion, effects of, 232. Individual bargaining, factors in, 321 ; definition of, 371. Individual records, 327. Individual wash bowls, 238. Inducements for work, 325. Industrial evening schools, evolution of, 151 ; kinds of, 151. Industrial progress, requisites for, 17. Industrial revolution, meaning of, 2 ; changes introduced by, 131. Industrial schools, definition of, 152 ; characteristics of, 152. Industrial system, development of, 3. Industrial training, aim in, 31; in public schools, 151. Industry, need of, 122; how to detect, 123 ; habits of, 165. Inflammable liquids, care of, 291. Instincts, definition of, 160; habits and, 160; characteristics of, 160. Insurance, fire loss and, 286. Intelligence, need of, in workers, 121. Intemperance, a habit, 174; fatigue and, 187. Inventory, permanent, 59; importance of, 61 ; how to take, 61. Irregularity, causes for, 80; how to treat, 81. James, William, 191. Job work, how planned, loi. Kenlon, John, 303. Knocker, avoid a, 121. KLnowledge, need of, 10; prerequisite of efficiency, 10 ; application of, 11; requisites for accurate, 12; results of accurate, 12; success and, 13. Labor, former methods of, 9 ; definition of, 23. Labor efficiency, requisites for, 114. Labor force, an efficient, 107 ; an ideal, US- Lamps, overhead, 206 ; individual, 206. Land, definition of, 22. Latent ability, 142. Lavatory, old form of, 237 ; dangers in, 237- Leaders unscrupulous, 359. Leading, importance of, 75. Letters, personal, 120. Lewis Institute, 150. Light, excessive, 207; insufficient, 208. Lighting, effects of good, 202 ; natiual, 203 ; artificial, 203 ; methods of natiiral, 204; methods of artificial, 205 ; electric, 205 ; gas, 205 ; injurious, conditions, 207; good, a necessity, 210. Limitations of men, 125. Living, proper habits of, 171. Location, chief factors affecting, 53. Lockers, kinds of, 238. Loyalty, need of, 73; to business, 74. Lunches, kinds of, 233 ; employers and, 233 ; methods to assure proper, 234. Machinery, cleaning moving, 269. Machines, opposition to new, 362; effect of, on labor, 362. Management, lay methods of, 10; im- portance of, 23 ; efficient, 45 ; re- sponsibility of, 98; and accidents, 273- Manager, a new official, 3; and sub- ordinates, 49. Manual alarm box, 300. Manual training schools, aim of, 154. Manufacturing, evolution of, 2. INDEX 3^3 Markets, importance of, 4; progress and, 4; limit specialization, 15. Matches, cause of fires, 292. Materials, economical use of, 57; storage of, 58. Medical department, functions of, 225 ; and efficiency, 231. Medical examination, need of, 118. Memory, fatigue and, 182. Mental relaxation, efficiency and, 185 ; agencies for, 185. Methods of work, the old, 90 ; best, 91 ; of the average worker, 92 ; standard, 94; adoption of standard, 98. Misfits, meaning of, 113 ; evils of, 113. Mitchell, John, 359. Motion study, definition of, 94; how made, 94. Moving goods, methods, 60. Nerve paths, determination of, 161. Nervous system, efficiency and, 117; habits and the, 161. Noise, fatigue and, 189. Nutrition, proper, 231 ; how to assure. 232. Oiling, dangers in, 269 ; precautions in, 269. Oil lamp, how to use, 294. Oily wastes, dangers in, 290. Open places, dangers in, 296. Organization, definition of, 45 ; eflBcient, 46; holding men in, no. Output, increased, and labor, 363; increased, and wages, 364 ; restricted, and labor, 365. Overcrowding, dangers in, 310. Packing goods, 61. Pensions, 247 ; efficiency and, 369. Permanence in a working force, 76. Personality, importance of, 71 ; of doctor and nurse, 230. Personal letters, objections to, 120. Philadelphia fire tower, 309. Physical endurance, requisites for, 117. Physical examination, necessity for, 226. Physical training, importance of, 32. Piece rates, definition of, 327 ; fixing, 328; vmder old system, 329; foster soldiering, 330; and quality, 355; unions and, 369 ; benefit labor, 370, Pipe sprinklers, 305. Piping, precautions in, 295. Planning department, its work, loi. Plant location, factors in, 53. Plumbing, care in, 239. Practice shops, 147. Premium wage system, the Halsey, 340; how it operates, 340; the Rowan, 342 ; how it operates, 343. Prizes for homes, 248. Production, problem in, 4; aim in, 8; specialization and, 18; definition of, 22 ; factors in, 22 ; quality in, 57. Profits, cause of, 20; kinds of, 20; and health, 200. Profit sharing, definition of, 334; methods, 334; disadvantages of, 336. Progress, markets and, 4; elimination of work and, 360. Promotion, methods of, 77 ; favoritism and, 326.. Promptness, how to encourage, 80. Public administration, efficiency and, 30. Punctuality, how to obtain, 79. Quality, standard, 20; in buying, 56; in production, 57; piece rates and, 355- Rate cutting, 329. Rate fijiing, stupidity in, 328; essentials for, 331 ; workers' share in, 333 ; necessary in some cases, 334. Recreation, need of, 186; rooms, 240; kinds of, 245. Relaxation, efficiency and, 185. Reports, requisites for, 49 ; importance of, 49- Rest, importance of, 95; time for, 95- 384 INDEX Restriction of output, methods of, 365 ; labor and, 365 ; efl&ciency and, 366. Richter, M. M., 298. Roosevelt, Theodore, 375. Routeing, savings from, 61. Rowan, James, 342. Rowan premium wage system, 342. Rubbish, care of, 290. Safeguards, necessity of, 265; old view of, 266; list of, 266; drawing atten- tion to, 267 ; proper time for pro- viding, 267 ; workers and, 268. Safety devices, effect on workers, 279. Savings banks, purpose of, 246. Selection, of workers, 116; of ap- prentices, 126. Self-interest and business, 199. Selling, efl&ciency and, 63. Seniority, when recognized, 77. Sentiment and business, 199. Serfdom, 320. Servitude, labor and, 320. Shipping, system in, 60. Shop instruction, 147. Sickness, extent of, 224; drain on in- dustry, 225. Sight, need for good, 117, Sitting at work, effects of, 192 ; v/here possible, 193 ; not laziness, 193. Skill, meaning of, 138; habit and, 159. Skilled workers, need of, 106. Sleep, effect of, 183; fatigue and, 183; habits of, 184. Sling-psychrometer, 214. Smoking, dangers in, 292. Soldiering, evils of, 81 ; elimination of, 82 ; science of, 324 ; piece rates and, 330. Space, proper allowance for, 212. Specialization, meaning of, 14; in the factory, 15; in machines and tools, 15; effects on labor, 16; dangers of, 16; progress and, 18. Speeding, effects of, 189. Spitting, evils of, 239. Spontaneous combustion, reasons for, 288. Sprinklers, automatic, 303 ; mechanism of, 304; operation of, 304. Staircases, wooden, 309. Standardization, definition of, 18; extent of, 19; demands of, 19; kinds of, 20; a necessity, 62. Standards, importance of, 35; not per- fect, 96 ; changes in, 96. Standpipes, 307. State and protection of workers, 277. Statistics, need of accident, 253. Storage of materials, 58. Storeroom, location of, 58; arrange- ment in, 59 ; records in, 59. Stovepipes, how to use, 296. Strenuousness, eflSciency and, 37. Stupidity, fatigue and, 182. Success, knowledge and, 13 ; essentials for, 46; personality and, 72; wage problem and, 317. Suggestions, 50. Supervision, importance of, 99. Sympathy, its need, 74. System, definition of, 46 ; installation of, 47 ; advantages of, 48. Tact, definition of, 123, Tardiness, dealing with, 79 ; ineflficiency and, 78. Task, in piece rates, 330; in Gantt system, 345; in Taylor system, 350; in day work, 352. Taylor, F. W., 91, 349- Taylor differential piece-rate system, requisites for, 349; rate in, 349; task in, 350 ; in operation, 350. Temperature, effects of high, 215. Thermostats, electrical, 298; pneu- matic, 299; installation of, 299. Thrift, advantages of, 122. Time, wastes of, 36 ; causes for wasting, 323- Time study, meaning of, 94 ; how made, 94. Time wages, how fixed, 321 ; disad- vantages of, 322; foster soldiering, 323; and individual records, 327; remedying faults of, 327. INDEX 38s Tobacco habit, 175. Toxic impurities, definition of, 178; effects of, 181 ; power to resist, 180; how disposed of, 182. Trade preparatory schools, definition of, 154; work of, 154. Trade schools, definition of, 152 ; re- quirements of, 153 ; supervision of, 153. Trade vmions, definition of, 359; and piece rates, 369; and premium systems, 372 ; aims of, 373. Training, physical and moral, 32 ; long neglected, 132; importance of, 133; in best methods, 139; and fatigue, 191. Uncertainty of a new worker, 108. Utility, definition of, 22; varieties of, 22. Vacancy, how to fill, 114. Vacations, 247. Ventilation, definition of, 211 ; natural, 211; artificial, 211; methods of, 212. Vocational schools, piurpose of, 154; importance of, 154. Wage bargaining, forms of, 371. Wage problem, solution of, 315; parties to, 316; success and, 317. Wages, earning of, 318; time, how fiixed, 321 ; disadvantages of time, 322; how to increase, 326. Wage system, a proper, 318; early appearance of, 320; restrictions, 321. Waste products, savings from, 58. Wastes, extent, s ; how to reveal, 29 ; in public administration, 30; in educational system, 31 ; kinds of, 35 ; in buying, 35 ; in using materials, 35 ; of time, 36 ; of energy, 36 ; from soldiering, 81 ; from ignorance, 139 ; from poor habits, 166 ; from fatigue, 195. Water, drinking, 234-236; in air, 215. Welfare work, importance of, 241 ; varieties of, 242 ; how to manage, 242. Windows, benefits from, 204. Wiring, precautions in, 294. Work, old methods of doing, 90; one best way of, 90; reasonable day's, 92; qualifications for efficient, 116; limits of, 190; elimination of, and progress, 360. Worker methods of average, 92; the efl&cient, 132; his work, 194; and safeguards, 268. Working day, length of, 190. 2C THE following pages contain advertisements of books by the same author or on kindred subjects. of B, JLconomics or ousiness By NORRIS a. BRISCO, Ph.D. Instructor in Political Science in the College of the City of New York Cloth, ismo, 3gg pages, $2.00 net Business principles and methods are discussed in this vol- ume in clear, untechnical language, and in such a manner as to make the work one which may be read intelligently by the novice and with profit by the business man, and which may be used to advantage as a text in college courses. The author's knowledge of business conditions and methods is based upon his personal experience, his work in the class- room, and his study of the publicly and privately expressed views of the leading experts in the various lines of business activity. Among the topics treated are Organization, Man- agement, Cost Accounting, Efficiency of Methods, Labor, Buying, Selling, Advertising, Money and Credit, Copyrights and Patents. ^^ The style is clear and non-technical. This work may well be used in the classroom. It will help business men by offering them rules and results of efficiency." — Wall Street Journal. *' The writer of this book has managed in a clever way to pack into less than four hundred pages many valuable sug- gestions for practical business men drawn from the business world itself, a clear analysis of industrial processes and prin- ciples for the student of economic life, and a comprehensive picture of industrial development and modern business life for the general reader." — Educational Review. THE MACMILLAN COMPANY Publishers 64-66 Fifth Avenue New York NEW AND ENLARGED EDITION Business Organization and Combination An Analysis of the Evolution and Nature of Business Organization in the United States and a Tentative Solution of the Corporation and Trust Problems By lewis H. HANEY, Ph.D. Professor of Economics in the University of Texas. Author of " A Con- gressional History of Railways " and " History of Economic Thought" Clo^A, 8vo, ^23 pages, $2.00 net Dr. Haney in his treatment of business organization recognizes two kinds : business that is productive from the social point of view, and business that is productive only from the individual point of view. According to the social point of view, business is productive when it adds to the net sum of goods and services which men want ; that is, when the amount of food, clothes, books, automobiles, teach- ing, medical service, etc., is increased. But individuals may grow rich in ways which do not increase the net sum of goods and ser- vices and still be actively engaged in business, or in production from the individual standpoint. A large part of advertising is merely ac- quisitive, not adding anything, but taking for one business man what another business man loses. So it is with some "speculation" and some middlemen's activities. But all this, when recognized as law- ful and when the price is freely paid, Dr. Haney calls "business"; and in the long run, he holds, the test of a good business man is simply the amount of income or private gain which he acquires le- gally. In his treatment Dr. Haney has recognized "business" to include some activities which add nothing to the sum total of so- ciety's wealth. The usefulness of this book as a text in courses on Business Or- ganization or Corporation Finance has been increased by the addi- tion of a chapter tracing the development and organization of a large corporation (the International Harvester Company). Its usefulness as a text in the above courses and also in courses on Trusts has been increased by the addition of a chapter on the Sherman act and its interpretation. In this chapter Professor Haney gives the history of the application of the Sherman Anti-Trust Law and an account and criticism of recent developments in policy. Besides the addition of these two chapters, Professor Haney has further improved the book by minor changes in the text so that it is now more satisfactorily adapted than ever before to classroom use. THE MACMILLAN COMPANY Publishers 64-66 Fifth Avenue New York Industrial Combinations and Trusts Edited by WILLIAM S. STEVENS, Ph.D. Instructor in Economics in Columbia University Clothy i2mo, 5g3 pages, $2.00 net; postage extra EXTRACT FROM PREFACE During the last two or three years while the editor of this volume was giv- ing careful study to the subject of Trusts, he became more and more forcibly impressed by the need of a presentation of the subject that should be strictly impartial, that should advocate no theories, but yet should present the prob- lems that arise in relation to Trusts comprehensively, and as they are. The realization of this need was increased by the fact that a large number of writers have shown the disposition to confuse the problems to which the Trust gives rise, with those that develop in connection with corporations and large scale production. The publication of the Steel and Interstate Commerce Committee Inves- tigations bridged many of the chasms which, in the opinion of the editor, lay in the way of a satisfactory treatment of the subject from source material. Thereupon it was decided to attempt the present volume, a book that should not give the reader a second hand knowledge of the Trusts, but which should place before him the original documents themselves : poohng, Trusts, factors and international agreements; court decisions and laws against Trusts ; Trust methods of fixing prices, eliminating competition and restraining trade ; the dissolution plans of dissolved Trusts ; lease and license agreements of representative patent monopolies ; and the views of eminent business and professional men as to the proper methods of hand- ling this gigantic problem. Throughout the preparation of the volume two purposes were held steadily in mind. The first was to design a volume that should place within the reach of the students in courses in Trusts in our colleges and universities, material of which much is, as the editor knows from personal experience, only too often difficult of access or else altogether unavailable. The second purpose of the editor was the collection of such a set of materials as would afford the ordinary reader who chances to be interested in Trusts, a fair knowledge at first hand of the historical development of the Trust move- ment in the United States, and a thorough comprehension of those problems in regard to them that the country is facing to-day. " The author has performed a distinct public service in making available the most important material bearing upon the trust problem in America." — Louis D. Brandeis. PUBLISHED BY THE MACMILLAN COMPANY 64-66 Fifth Avenue New York |K mmm ||HHM r 1 DATE DUE 1 H 1 H B 1 H 1 ■ H ■ H H H 1 j B B B B ^^B GAYLORD PRINTED IN U.S.A. BOSTON COLLEGE 3 9031 01494751 9 ftRISCD / /!/ BOSTON COLLEGE LIBRARY UNIVERSITY HEIGHTS CHESTNUT HILL, MASS. Books may be kept for two weeks and may be renewed for the same period, unless reserved. Two cents a day is charged for each book kept overtime. If you cannot find what you want, ask the Librarian who will be glad to help you. The borrower is responsible for books drawn on his card and for all fines accruing on the same.