CHAPTER VI

WAGES

AS A MEANS OF INCREASING HUMAN EFFICIENCY

FIFTY years ago works on psychology

were devoted largely to discussion of

ideas and of concepts. To-day the

point of emphasis has changed, and we are

now paying much attention to a study of

``attitudes.'' It is doubtless important to

analyze my ideas or concepts, but it is of

much more importance to know my attitudes.

It is vital to know how to influence the ideas

of others; but to be able to influence their

attitudes is of still greater significance.

We all know in a general way what we

mean by an attitude, but it is difficult to define

or to comprehend it exactly. I have one attitude

towards a snake and a totally different

one towards my students. If when hunting

<p 132>

<p 133>

quail I happen upon a little harmless snake,

I find that I respond to the sight in a most

absurd manner. Dread and repulsion overcome

me. I can hardly restrain myself from

killing the snake, even though doing so will

frighten the birds I am hunting. I am predisposed

to react in a particular way towards

a snake. I sustain a particular attitude towards

it.

In the presence of my students I find that a

spirit of unselfish devotion and a desire to be

of assistance are likely to be uppermost.

That is to say, I sustain towards my students

an attitude of helpfulness, a predisposition

to react towards them in such a way that their

interests may be furthered. In fact, I find

that we all take particular attitudes towards

the people we know and towards every task of

our lives. These attitudes are very significant,

and yet they are often developed by circumstances

which made but little apparent impression

at the time, or may have been altogether

forgotten. I cannot recall, for instance,

the experience of my boyhood which developed

<p 134>

my present absurd attitude toward harmless

snakes.

When witnessing a play, my attitude of

suspicion towards a particular character may

have been promoted by means of music and

color, by means of the total setting of the play,

or by some other means which never seemed to

catch my attention. These concealed agencies

threw me into an attitude of suspicion, even

while I was not aware that such a result was

being attempted.

This modern conception of psychology

teaches us that in influencing others we are

not successful until we have influenced their

attitudes. Children in school do not draw

patriotism from mere information about their

country. Patriotism comes with the cultivation

of the proper attitude towards one's

native land.

_Success or failure in business is caused more

by mental attitude even than by mental capacities_.

Nothing but failure can result from the

mental attitude which we designate variously

as laziness, indifference, indolence, apathy,

<p 135>

shiftlessness, and lack of interest. All business

successes are due in part to the attitudes

which we call industry, perseverance, interest,

application, enthusiasm, and diligence.

In any individual, too, these attitudes may

not be the same towards different objects

and may be subject to very profound changes

and developments. A schoolboy is frequently

lazy when engaged in the study of grammar,

but industrious when at work in manual

training. A young man who is an indolent

bookkeeper may prove to be an indefatigable

salesman. Another who has shown himself

apathetic and indifferent in a subordinate

position may suddenly wake up when cast

upon his own responsibility.

Few men of any intelligence can develop

the same degree of interest in each of several

tasks. Personally I find that my shiftlessness

in regard to some of my work is appalling.

Touching my main activities, however, I

judge that my industry is above reproach.

The preceding chapters (particularly the

chapters on Imitation, Competition, and Loy-

<p 136>

alty) were attempts to discover and to present

the most effective motives or factors in producing

in workers an attitude of industry.

Based on a study of psychology and of business,

methods were presented which may be

utilized with but little expense and yet are

effective in awakening instinctive responses in

the worker and hence greatly increasing his

efficiency. The present chapter will deal with

an even more effective means of securing an

attitude of industry since it appeals to three

of the most fundamental and irresistible of

man's instincts.

_With most of us the degree of our laziness or

our industry depends partly upon our affinity

for the work, but chiefly upon the motives which

stimulate us_.

For our ancestors, preservation depended

upon their securing the necessary means for

food, clothing, and shelter. In the struggle

for existence only those individuals and races

survived who were able to secure these necessary

articles. In climates and regions removed

from the tropics only the exceedingly

<p 137>

industrious survived. In warm and fertile

lands those who were relatively industrious

managed to exist. Because of the absence of

the necessity for clothing and because of the

abundance of available food, races have developed

in the tropics which are notoriously

lazy. The human race, individually and collectively,

works only where and when it is

compelled to.

The energetic races, those which have advanced

in civilization, live in lands where the

struggle for existence has been continuous.

Necessity is a hard master, but its rule is

indispensable to worthy achievement. The instinct

of self-preservation and the industrious

attitude are responses which the human race

has learned to exercise, in the main, only in

case of need. Self-preservation is the first

law; where life and personal liberty are

dependent upon industry, idleness will not be

found. Wealth removes the obligation to

toil; hence the poor boy often outdistances

his more favored brother.

Individuals work for pay as a means of

<p 138>

self-preservation, and unless that is satisfactory

other motives have but little weight

with them. The needs of the self which preservation

demands are continuously increasing.

The needs of the American-born laborer are

greater than those of the Chinaman. Regardless

of this higher standard of living and

the ever increasing number of ``necessities,''

the instinct of self-preservation acts in connection

with them all.

_Almost without exception the interest of workers

centers in the wage. If they could retain

their accustomed wage with less effort, they would

do so. If the retention and increase depend on

individual production, they will respond to the

compulsion_.

Every student of psychology recognizes the

fact that the wage is more than a means of

self-preservation. Man is a distinctly social

creature. He has a social self as well as an

individual self. His social self demands social

approval as much as his individual self demands

bread, clothing, and shelter. In our

present industrial system this social distinc-

<p 139>

tion is most often indicated by means of monetary

reward. The laborer not only demands

that his toil shall provide the means for self-

preservation, but he seeks through his wages

the social distinction which he feels to be his

due. His desire for increase of wages is often

partly, and in some instances mainly, due to

his craving for distinction or social approval.

In such instances the wage is to be thought

of as something comparable to the score of a

ball player. The desire for a high score is

sufficient motive to beget the most extreme

exertion, even though the reward anticipated

is nothing more than a sign of distinction and

without any relationship whatever to self-

preservation.

In common with some of the lower animals

man has an instinct to collect and hoard all

sorts of things. This instinct is spoken of

in psychology as the hoarding or proprietary

instinct. In performing instinctive acts we

do so with enthusiasm, but blindly. We take

great delight in the performing of the act,

even though the ultimate result of the act

<p 140>

may be entirely unknown to us. The squirrel

collects and stores nuts with great delight and

industry. He has no idea of the approaching

winter, but gathers the nuts simply because

for him it is the most interesting process in his

experience.

Most persons display a like instinctive

tendency to make collections and hoard articles.

This is particularly apparent in collections

of such things as canceled postage

stamps, discarded buttons, pebbles, sticks,

magazines, and other non-useful articles.

When this hoarding instinct is not controlled

by reason or checked by other interests, we

have the miser. In a less degree, we all share

with the miser his hoarding instinct. We all

like to collect money just as the squirrel likes

to gather nuts. The octogenarian continues

to collect money with unabated zeal, even

though he be childless. He is probably not

aware that he is collecting merely for the pleasure

of collecting.

_Since the wage is the means ordinarily employed

to awaken in workers the three instincts_

<p 141>

_of self-preservation, of social distinction, and of

hoarding, it is not strange that an industrial

age should regard it as the chief means of increasing

efficiency_.

The employer has not attempted to discover

what instincts were appealed to by the wage,

or the most economical method of stimulating

these instincts. He has not undervalued the

wage in securing efficiency, but rather has

assumed that the service secured must be in

direct proportion to the amount expended.

Such an assumption is not warranted.

Of two employers with equal forces and payrolls

one may receive much more and better

service than the other. It is not a question

merely of how much is spent but how wisely

it is spent. The wage secures service to the

degree in which it awakens these fundamental

instincts under consideration.

It is apparent, therefore, that other factors

than the amount of money expended in wages

are to be considered by every employer. Without

increasing the pay roll he may increase the

efficiency of his men. The employer who has

<p 142>

determined the number of men he needs and

the wages he must pay has only begun to solve

his labor problem.

In the preparation of the present chapter a

large number of business men were interviewed

personally or by correspondence.

One of the questions asked was: ``How do

you make the most of the wages paid your

men?''

As subsidiary to this general question three

other questions were asked: ``In paying them

do you base the amount to be received by each

man upon a fixed salary? By some of the

men upon actual output--commissions or

piecework rates? By some upon a combination

including profit-sharing or bonus?''

The answers to these latter questions were

not uniform even among employers engaged

apparently in the same business and under

very similar conditions. Some reported that

all the methods suggested were used in their

establishment. Factory hands were employed

on piecework or on a premium or bonus basis

where conditions permitted; office assistants

<p 143>

on fixed salaries; department managers upon

a combination including profit sharing. The

results reported, however, were far from uniform.

The astounding feature was the diversity

of opinion among successful managers

of employees. By various houses one or more

of the systems had been tried under apparently

favorable conditions and had been discarded.

On the other hand each of the systems was

advocated by equally successful business firms.

In judging of the relative merits of fixed

salaries as compared with other methods the

experiences of individual firms offer no certain

data. The relative merits and demerits

are best disclosed by a psychological analysis

of the manner in which the various devices

appeal to the employee's instincts and reason.

_When wages are based on commission, piece

rate, or a bonus or premium system, the stimulus

to action is constantly present. Every stroke

of the hammer, every sale made, every figure

added, increases the wage. The wage thus continuously

beckons the worker to greater accomplishment_.

<p 144>

All other considerations lose in importance,

and the mind becomes focused on output.

The worker is blinded to all other motives,

and invariably sacrifices quality unless this

be guarded by rigid inspection. The piecework

or task system thus influences the worker

directly and incessantly without regard for

the particular instinct to which it may be appealing.

Every increase in rate adds directly

to the means of self-preservation, of social

distinction, and of the accumulation of

wealth.

_The worker with a fixed salary or wage does

not feel as continuously the goad of his wage.

It is less in mind and does not control his attitude

toward his work. The man on a fixed

salary, therefore, will not produce so much_.

If he be a workman, he may take better

care of his tools, keep his output up to a higher

standard of quality, prepare himself for more

responsible positions. If he be a salesman, he

may be more considerate of his customers and

hence really more valuable to his employer;

he may be more loyal to the house and hence

<p 145>

promote the ``team work'' of the organization,

and he may because of his more receptive state

of mind be preparing himself for much greater

usefulness to his house. If he be a superintendent,

he may be more thoughtful of his

men, or more scrupulous for the future of the

business.

Production methods or labor conditions

are often such that piecework is impossible.

There are many functions and processes which

thus far have not been satisfactorily adjusted

to task systems; there are others (the inspection

service in a factory, for instance) where a

premium on increased output would defeat

the first purpose of the service. Where results

can be accurately measured, however, and the

quality of the service can be automatically

secured or is not sacrificed by concentration

upon quantity, the task system--whether

it take the form of piece rates, premiums, or

bonus--has such superior psychological advantages

that it will probably come more and

more into use.

Under the general heading quoted above--

<p 146>

``How do you make the most of the wages

paid your employees?''--the following question

was asked: ``What special method do

you employ to make men satisfied or pleased

with their wages?'' The answers were most

interesting and instructive. One manager

having many thousand men in his organization

narrated various methods by which he

kept in personal touch with his men, and

turned this personal relationship to the advantage

of the house.

One illustration will make clear the line he

pursued. In the card catalogue of the employees,

the birthday of each is noted, the

executive recognizing that for the average

man this is an anniversary even more important

than New Year's.

_If for any reason a member of the organization

deserves or requires the executive's personal attention,

his birthday may be chosen as the date

of the interview. Then whether the man merits

an advance for extra good work or needs help to

correct a temporary slump in efficiency, the reward

or the appeal takes on added meaning_

<p 147>

_because it coincides with a turning point in his

life_.

To facilitate the plan, the manager's file

of employment cards is arranged, not by

initials or departments, but by birthdays.

Each workman's name falls under his eye a

few days in advance, long enough to secure

a report from his foreman, if knowledge is

lacking of his progress.

As I entered this manager's office, I met a

young man coming out. He had been in the

company's employ only a few months and his

relations with the organization had not yet

been established. Asked for a report, his

foreman gave him a good record and recommended

a small advance. Imagine the surprise,

the instant access of pride and loyalty,

the impulse towards greater effort and efficiency,

when the young man was called into the

manager's office on his birthday, congratulated

on his record, and informed that he would start

his new year with an advance in wages.

Double the advance, if allowed in the usual

way, would not have so impressed and satisfied

<p 148>

him. The increased wage made its appeal direct

to the instinct for social recognition, and

hence was very effective.

Such a method does not admit of general

application. Practiced in cold blood, it might

even be harmful. But in this case, it struck

me not as an act of selfish cleverness, but as

the expression of a real sympathy and interest

which the manager felt for his men. The

cleverness lay in the recognition that no man is

ever so susceptible to counsel, to appreciation,

or to rebuke as on his birthday, when the social

self is especially alert.

In other organizations, the effort to extend

this factor of human sympathy to each worker

and to see that full justice is rendered to him

takes the form of a department of promotion

and discharge. The head is the direct representative

of the ``front office'' and is independent

of superintendents and foremen. No

man can be ``paid off'' until the facts have been

submitted to the consideration of this department.

Here also the man may present his case

to an unprejudiced and sympathetic arbiter.

<p 149>

_In actual practice the man ``paid off'' is

sometimes retained and the foreman, on the evidence

of prejudice, bad temper, or other incompetency,

is discharged. In consequence every

workman knows that his place does not depend

upon the whim of his immediate superior, but

that faithful service will certainly be recognized_.

Furthermore, this department assumes the

task of shifting men from one department to

another and thus minimizing the misfits which

lower the efficiency of the whole organization.

Records of each man's performance are kept,

and promotions and discharge are more nearly

in accord with facts than would be possible in

a large house without some such agency. In

too many big establishments the individual

feels that he does not count in the crowd and

that he is helpless to do anything to advance

himself or to protect himself against an antagonistic

foreman. In large measure, such a department

reduces this feeling and bridges the

chasm between the men and the firm.

In its effect on the attitude and efficiency

of employees, the method of fixing and ad-

<p 150>

justing wages is no less important than the

wages themselves. The steady trend of the

labor market has been upward and always upward;

it is one of the notable achievements of

trade and industry that this constant appreciation

in the price of man power has been

neutralized by increase in the efficiency of its

application. This increase in earning capacity

has been secured not alone by the development

of automatic machinery, but by the division

of labor, the subdivision of processes, and the

education of workers to accept the new methods,

and acquire expert skill in some specialty.

Hardly a generation has passed since one

man, or perhaps two working together, built

farm wagons, steam engines, and a thousand

other articles entire. Now a hundred mechanics

or machine tenders may have contributed

to either wagon or engine before

it reaches the shipping department. Three

fourths of these workers are paid piece rates.

The substitution of these piece rates for day

wages, the striking of a satisfactory balance

between production and compensation, and

<p 151>

the endless changes in the scale as new parts

or faster or simpler processes are invented--

have all been operations in which the tact and

man-handling skill of executives have played a

significant part.

In the larger organization this knowledge or

skill is often supplied by a manager who has

``come up through the ranks'' and has not

forgotten his journeyman's dexterity on the

way or neglected to keep in touch with improved

methods.

_Frequently the advantage of a small industry

or trading venture over its larger rivals depends

on the owner's mastery of all the processes or

conditions involved and his ability to deal with

his employees on a personal plane in fixing

wages or in establishing the standard day's work_.

In a stove factory where four fifths of the

processes are paid by piece rates, it was necessary,

not long ago, to fix the remuneration for

the assembling of a new type of range. Most

of the operations were standard; the workmen

and the management differed, however,

on what should be paid for the setting and fas-

<p 152>

tening of a back piece with seventeen bolts.

The men asked fifteen cents a range. When refused,

they named twelve cents as an ultimatum.

The company was willing neither to pay

such a price nor to antagonize the workmen.

The dispute was settled by a demonstration.

The superintendent was himself a graduate

from the bench and had been an expert workman.

The company's contract with the assemblers'

union set $4.50 a day as the maximum

wage. To prove his contention that even

twelve cents was too great a price, he set the

back pieces on ten ranges himself, under the

eyes of a committee, and proved that at six

cents a range he could easily earn the maximum

day wage. The price agreed upon was

eight cents, little more than half the original

demand. Without the demonstration the

men would have accepted twelve cents reluctantly.

In the course of the interviews with employers,

it became evident that there was

agreement on one point--to educate the

worker to realize that the house's policy in

<p 153>

handling its men gave added value to the

sums paid out in wages.

_The shiftless or unskilled man works mainly

for the next pay envelope, with little or no regard

for the continuity of employment, the possibility

of promotion, of pension, of sick or accident

benefits, of working conditions, or the like_.

The skilled worker, on the contrary, and the

more desirable class of laborers, nearly always

rate their wages above or below par, according

to the presence or the absence of these contingent

benefits or emoluments.

To the average man with a family, the

``steady job'' at fair wages is the first

consideration. It appeals more strongly to him

than intermittent employment at a much

higher rate; while the younger, restless, and

less dependable man, both skilled and unskilled,

gravitates to the shop where he can command

a premium for a little while. Just as managers

are always looking for the steady worker,

nearly all agree in assuring their employees

that faithful and efficient service will be rewarded

with continuous employment.

<p 154>

To carry out this policy is sometimes difficult

in businesses where demand is seasonal

and where a large part of the product must

be made to order. Nevertheless, the manager

who adjusts his production program to cover

the entire year has the choice of the best

workers even when other factories offer higher

rates. Likewise, the employer who sacrifices

his profit in bad years to ``take care of his

men'' and hold his organization together recovers

his losses when the revival comes.

So deeply rooted is this desire for a ``steady

job'' and so generally recognized as an essential

of the labor problem that several large industries

have developed ``side lines'' to which

they can turn their organization during their

slack seasons; while others in periods of depression

pile up huge stocks of standard products,

making heavy investments of capital,

for the primary purpose of keeping their men

employed.

How such a policy reacts on the wage question,

and hence on the efficiency of employees,

is shown by an instance which lately fell under

<p 155>

my notice. By a long and persistent campaign

of education and demonstration, a small ``quality''

house forced a rival ten times as large

to adopt the careful processes on which this

quality depended. Adopting the small man's

methods, the competitor, instead of training its

own operatives to the new standards, sought

to hire the other man's skilled workers. The

premium offered was a thirty per cent advance.

It was refused, however. The tempted mechanics,

analyzing the rival's proposal, hit on

the disloyalty contemplated towards its own

employees. They were to be discharged or

transferred to other departments to make

room for the new men.

Measuring this cold-blooded policy against

the consideration, the unfailing effort of their

old employer to ``take care of them'' in bad

seasons, the workers decided to stick to the

smaller company and refuse the advance.

_Next to continuous employment, among methods

of increasing the value of wages, is the policy

of making promotions from the ranks_.

This practice seems to be commonly ac-

<p 156>

cepted as fruitful, although many firms believe

it impossible of application in filling some

of the higher as well as some of the more technical

positions. Where the system is applicable,

it acts as a powerful stimulus to the

men by adding to their present wages the

promise or possibility of better positions and

higher pay in the future. It gives assurance of

promotion for faithful service much greater

than in houses which fill the upper positions

from outside sources on the assumption that

they thus get ``new blood'' into the business.

The men secured from outside may be more

skilled or more productive of immediate results

than any available in the house organization.

By their importation, however, the

wages of all the men aspiring to the position

have been cheapened. Nor does the evil stop

there.

_The assumption is naturally drawn that the

same practice is likely to be followed in filling

other vacancies. The stimulus to initiative and

activity is thus weakened for men in every grade

and their wages are shrunk below par_.

<p 157>

The importance which some successful employers

attach to this principle of promotion

from the ranks is well illustrated by an incident

which recently occurred in a large manufacturing

establishment organized on a one-man

basis. During the president's absence it was

decided to open up a new zone of trade for a

new product. No one in the organization

knew the product and the field, so a new man

was put in charge. The work progressed

surprisingly well; the enterprise was in every

way successful.

When the real head returned, he called his

managers together and told them that the

new man must be removed and the most deserving

man in the regular organization appointed

in his place. He was met with the protest

that no employee was capable of taking up the

work and reminded that the new man had

already achieved great success. The president

answered that he was willing to lose money

in the department for the first year rather than

cheapen and disorganize the service by taking

away the certainty of promotion and by re-

<p 158>

moving the incentive to study and self-development

which had increased the efficiency of

every ambitious employee.

Innumerable examples of the same principle

in promotions could be gleaned from the

records of some of the oldest and most progressive

houses in the country. In one establishment

visited, the quality of whose wares

is strenuously guarded, it was discovered that

the chemist and metallurgist in charge of the

factory laboratory had been lifted out of one

of the departments and supplied with the

money to take a specialized course in physics,

chemistry, and metallurgy. The advertising

manager, the factory engineer, and two or three

of the foremen had been given leaves of absence

to study and fit themselves for the positions

to which their talents and inclinations

drew them. Even among the workmen there

was a fixed basis for advancement towards the

better jobs and the higher rates, dependent on

satisfactory service and output.

To these major considerations in increasing

the worth of wages, those companies which

<p 159>

have given the longest attention to the problem

add many other inducements.

_An efficient and contented employee has a

positive money value to any employer. To hold

him and keep him efficient, his personal comfort

and needs should be considered in every way

not detrimental to the company's interests_.

As nearly as possible, the ideal in factory

location and construction is approached. Some

industries have removed bodily to country

towns, less for the sake of a cheap site than

for the purpose of establishing themselves

where housing conditions for workers were

good, rents low, the cost of living cheaper, and

other factors tending to _*add value_ to every dollar

paid in wages were present. Direct appeal

was made to the intelligence of employees,

whose health is part of their capital, by making

and keeping working conditions as healthful

and sanitary, as little taxing on eyesight and

bodily vigor as circumstances and judicious

investment of capital allowed. Scores of

towns have been built outright, to benefit

employees.

<p 160>

In line with this policy are the systems of

benefit insurance for accident and sickness

maintained and partly supported by many

companies; the pension systems which have

been adopted within the last few years by

some of the greatest and most progressive

companies in America; the free medical service,

both in case of factory accidents and

sickness at home, which other firms provide

for employees; and various other activities

contributing to the welfare of workers, both

during working hours and afterwards.

Employers are coming more and more to

see that this is the case and to devote both

thought and money to the elimination of conditions

which cut wages below par.

_Whatever reduces hazard, discomfort, loss of

time, uncertainty, or the cost of living for workers

adds value to their wages and is a means of

influencing their attitude towards the company_.

Some employers are continually exercised

to keep the wages of their men from falling

below par. Others are equally solicitous that

their men may regard their wages as above

<p 161>

par. This classification is a real one and was

made plain by some of the interviews referred

to above. Thus in answer to the question,

``What special method do you employ to make

men satisfied or pleased with their wages?''

one employer immediately put his own interpretation

on the question. To him it meant,

``What method do you employ to keep your

men from being _*dissatisfied_ with their wages?''

His answer was: ``By paying them somewhere

near what they ask or expect. If we

don't,'' he added, ``they go out on strike and

we have to compromise.''

The majority of successful employers have

advanced beyond this negative, defensive

attitude and take a positive and aggressive

position in dealing with the problem.

_Instead of assuming their work accomplished

when the men are not dissatisfied or rebellious,

they do not rest until every dollar paid out in

wages is above par in its influence upon efficiency_.

Thus in innumerable ways the progressive

employer increases the value of all wages he

<p 162>

pays by making them appeal to the reason

and to the instincts of workers in a way un-

dreamed of by less enlightened men. The

purpose of wages is to produce a certain

psychological effect and to promote the most

favorable attitude on the part of the worker.

The methods of increasing the purchasing power

of money thus spent is one of the most interesting

and yet complex problems which the

business man has to face.

This chapter shows the psychological ground

for the following statements:--

Employees differ in their response to piecework

rates and to salaries. Some respond

more satisfactorily to one and some to the

other.

When the development of men for better

positions is of prime importance, the piecework

system is not to be adopted. If the

quantity of work per unit of wage is of greatest

importance, then some form of wage other

than fixed salary should be used.

An employee should not be dismissed as

hopelessly lazy till he has shown this attitude

<p 163>

in more than one department or has failed to

respond to different forms of stimulation.

Changes in wages may often be placed under

the authority of some person or committee

other than the immediate superiors of the

employees involved. This authority may be

vested in the direct representatives of the

executives or in such a committee as would

be formed by representatives of the executives

and also employees from the different departments

of the establishment.

_Payment of wages, so far as possible, should

be made to appeal to the instincts for social distinction

and for acquisition as well as to the instinct

for self-preservation_.

Wages should never be reduced without a

tactful and sincere attempt to convince the

men of the necessity of such an act.

Increase in wages may well be made a personal

matter. Some firms, however, are most

successful with a mechanical wage system in

which employees know exactly the conditions

necessary for an increase in wages.

All work should be thoroughly supervised

<p 164>

and inspected so that employees know that

good service will be recognized and rewarded.

The policy of filling all positions from the

ranks seems growing in favor, since it gives

certain hope for advancement and hence

greater satisfaction with the present wage.

The wage may well include a tacit insurance

for the future. Employees should be assured

that so long as they remain faithful to the

firm, their work and pay will continue, and

that in accident or old age they will be provided

for. Accepted thus, the wage secures

increased service.

Increasing Human Efficiency in Business A Contribution to the Psychology of Business · 第 6 / 13 章