effect. On increasing the time to the original five hours the workers completed the job in three and a half hours, and earned a very good bonus. Once again the time was cut, with the result that the workers' suspicion was aroused, and the time promptly jumped to seven hours. The workers had learned their lesson!

Neither worker nor employer can be satisfied with such a result, and mutual suspicion is the natural outcome. Yet all rates must be juggled with in this manner in the absence of a method whereby the time may be accurately determined.

It follows that, in the first place, the firm will not cut prices, and, in the second, that the first-class worker may earn the highest reward in his power, with the knowledge that he is not injuring the welfare of his fellow-workers in any way.

Now, suppose for some reason a worker takes longer than reward time to do a job, or suppose he produces less than reward quantity. It only means that he gets no reward. His day wages, 36s. or 24s. a week, or whatever it may be, are absolutely guaranteed. Whatever happens, his day wage is not interfered with. It must be kept in mind always that—Day wages are for attendance; reward, is for efficiency. The two things are distinct, and it is advisable to pay wages and reward earnings at different times. The firm must see to it that when the worker is in the works he earns his day wage, and in this respect the day wage standard is equivalent to reward production or reward time. If the worker does less than these he is not earning his wage, although he gets it, and such a case calls for the immediate attention of the firm as well as of the worker.

Let us sum up the foregoing points:

1. The time study gives all the workers the same opportunity of earning reward.

2. Reward is paid for all production above a certain minimum.

3. Reward begins at such a production that everyone should be able to earn some reward.

4. The standard production is so calculated that all workers should reach it by diligence and careful attention to the instructions.

5. No matter how large a worker's reward may be, prices cannot be cut.

6. The worker is safeguarded by the conditions of the system.

7. The day wage is guaranteed even if the production be less than the reward point.

8. As reward is proportional to profit (the higher the reward the greater the efficiency, and the greater the efficiency the greater the firm's profit), the worker is encouraged to earn high reward. This can only be done by good conditions and freedom from fatigue, and therefore the comfort of the worker is assured by the principles of the system.

(c) Special Reward for High Efficiency.

Besides the reward described in the foregoing explanation, special reward is given to all high efficiency workers—that is, to those who reach 100 per cent. efficiency all through the week.

This special reward takes the form of paying the worker a bonus either in the form of a sum of money or an additional percentage on the standard time.

If the worker's efficiency reaches 100 per cent. or more for any one week, and the hours on reward are, say, forty or more, a cash reward of 1s. or 2s., or other suitable amount depending on the status, etc., of the worker, is given in addition to the reward earned by production. It is necessary to base this special reward on the number of hours worked; otherwise, if the worker happened to be only an hour or so on reward during the week, and his efficiency for that hour was 100 per cent., he would get the special reward, and this would be absurd as well as being unfair to workers who had been on reward all the week.

In the other case, when the worker reaches 100 per cent. efficiency on any one job, no matter how long it takes, his reward for that job jumps 5 per cent. or 10 per cent., or whatever special proportion be decided upon. If the reward point be 75 per cent., then at 100 per cent. efficiency the reward is 33⅓ per cent. of the job rate. To this would be added, say, 5 per cent., thus making the reward 38⅓ per cent. of the job rate.