(c) When applied to machine shop work, it developed in certain operations, increases in production, ranging from 400 to 1800 per cent.

(d) When applied to bricklaying the day's accomplishment rose from 1000 to 2700 bricks.

(e) When applied in the manufacture of cotton goods, it increased the output a hundred per cent.

Under scientific management the same analytical study is made of the possible accomplishment of each part of the plant and of each individual machine, as it is of the individual worker. Analytical study is made to determine what performance is possible under the best conditions and to eliminate every obstacle to full performance so as to secure the full utilization of every part of the plant and equipment. In most cases the increased productivity of the individual workman carries with it increased production of plant and machinery. Every problem incident to plant and machinery receives close study,— for instance, the arrangement of plant and machinery so as to reduce all unnecessary movements of men and material or machinery; equalization of equipment as well as standardization of equipment. A common incident of the introduction of scientific management is the discovery that a plant supposed to have been inadequate proves to be over-equipped.

Under scientific management the same study is made and care taken to secure full utilization of materials as of men and machines. Scientific methods are pursued to determine what materials are best fitted for the particular purpose and what their proper cost should be. Only such materials are supplied. The material is guarded with the same scrupulous care as the money with which it is bought. Ledger accounts are kept for each article; whatever is needed must be vouched and accounted for and the material account be balanced as accurately as the cashier balances his daily cash account. Thus what is on hand is always known by the accounts; and waste either in purchase or in use is avoided.

Under scientific management the employee is enabled to earn without greater strain upon his vitality from 25 to 60 per cent and at times even 100 per cent more than under the old system. The larger wages are made possible by larger production; but this gain in production is not attained by "speeding up." It comes largely from removing the obstacles to production which annoy and exhaust the workman,-obstacles for

which he is not, or should not be made, responsible. The management sees to it that his machine is always in perfect order. The management sees to it that he is always supplied with the necessary materials. The management sees to it that the work comes to him at proper times, with proper instructions and in proper condition. The management sees to it that he is shown the best possible way of doing the job; that is, the way which takes least time, which takes least effort, and which produces the best result. Relieved of every unnecessary effort, of every unnecessary interruption and annoyance, the worker is enabled without greater strain to furnish much more in production. And under the exhilaration of achievement he develops his capacity.

The social gains of the workingman from scientific management are greater even than the financial. He secures the development and rise in self-respect, the satisfaction with his work, which in almost every line of human activity accompanies great accomplishment by the individual. Eagerness and interest take the place of indifference, both because the workman is called upon to do the highest work of which he is capable, and also because in doing this better work he secures appropriate and substantial recognition and reward. Under scientific management men are led, not driven. Instead of working unwillingly for their employer they work in co-operation with the management for themselves and their employer in what is a “square deal."

Scientific management recognizes the right of those less expert in the work to advance to greater efficiency, and the importance to the employer of training his workmen to be competent. It therefore provides through the most practical teachers for careful training of men to work in the best manner and to develop habits of industry instead of letting "the devil take. the hindmost" and exposing the less competent to the probability of discharge. It supplies instruction, and offers to the teachers special incentives if they succeed in bringing up the hindmost.

Experience has already demonstrated that the principles of scientific management are general in their application, and can be introduced into practically all businesses, and all departments of any business. They have been successfully applied in private competitive businesses, like machine shops and factories, steel works, and paper mills, cotton mills and shoe shops, in bleacheries and dye works, in printing and book-binding,

in lithographing establishments, in the manufacture of typewriters and optical instruments, in construction and engineering work, and in establishments not commonly regarded as business, and recently to some extent they have been introduced by the United States Government into the manufacturing departments of the Army and Navy.

SCIENTIFIC MANAGEMENT'

Basic Principles-Social and Industrial

What are the basic principles of Scientific Management, industrially and socially? Historically, Scientific Management was not worked out as the expression of any basic, industrial principles: that is to say, it did not originate in the mind of any man as a detailed and concrete expression of some body of principles in his mind. Mr. Taylor, a foreman over a group of working people, was concerned with the practical problem of making his foremanship successful, and worked out certain detailed methods of control, and made investigations related to the problem of control for a great many years. If he started with a basic principle at all, it was this: investigate thoroughly before you conclude what to do and how to do it. He investigated thoroughly, came to conclusions how to solve certain practical problems relating to the control of the operations of a shop, and then after going over these practical conclusions discerned that there were in them certain universal principles of management. These he presented in a paper before a body of engineers. But few of his auditors grasped their significance; one or two did, and these men in discussion said they were revolutionary, not only from the point of view of management, but also socially and industrially. Since then there has been a growing appreciation that Scientific Management represents new industrial and social as well as managerial principles.

The fundamental industrial and social principles are two: I. It is a method of management which permits a greater satisfaction of human wants from a given quantity of material, capital and labor. It is a fundamental principle which is not

1 By H. S. Person, Managing Director, The Taylor Society. From a lecture delivered before the Filene Coöperative Association, an organization of the employees of Wm. Filene's Sons Co., Boston, Mass., in its business course. Printed here by permission.

disputed, that the total income of all of us, in the form of wages, interest, rent and profits, is limited by the productivity of the combination of labor, machinery, raw materials, and so forth, at our disposal and we cannot have a larger income than can be derived from the best known technical methods of combining these. There is no way of increasing one's share of the total income except at the sacrifice of another party, or by making total production more efficient. Now Scientific Management means greater technical efficiency, and therefore greater total income, which will result in greater profits, higher wages, or a shorter working day, or in a combination of these, and in general in the satisfaction of more wants than we are now able to satisfy under present operating methods.

II. The second fundamental principle-I think it may surprise some of you-is the principle of democratization. There are a great many who conceive of Scientific Management, through its centralized control, as working against the democratization of the whole combination of working people. It means the reverse, I believe, for the following reason: It seeks exact information, which it does not conceal. It pools the information ascertained so that everybody can have it. It is recognized that it makes much more efficient and independent the average of ability. You can go into a Scientific Management plant and you will find that the Order of Work Clerk, the Production Clerk, those in immediate supervision of control of the processes, have nearly all been drawn from the ranks of working people. It discovers, records, and pools information in such a way as to make more efficient and much more productive the average ability, such as we all have; and as a result it makes it possible for industry to rely less on genius and on intuition. Another reason for its influence towards democracy is that it is conditioned upon co-operative good will.

There are two fundamental principles: (1) the industrial principle of greater satisfaction of human wants from a given amount of equipment and material; (2) the social principle of greater democratization in industry.

Plans and Policies

I interpret "Plans and Policies" to ask me what is the object of Scientific Management and what does it purpose to do in actual operation? First, I want to speak about the plans and

purposes of Scientific Management as concerning productive processes; after that I want to say a word about the plans and policies as they concern the distribution of the income which results. Keep those two points separately in mind.

1. Aims, plans, policies and methods as they concern productive processes. As I analyze it there are three principal aims in it:

(1) Seeking of more precise information through investigation, experiment, etc.

(2) As great an amount of prediction of what is going to happen in business operation as is possible on the basis of the unusual amount of exact information acquired.

(3) Precise control of the processes of conducting the business by various functionalized people in such wise as to bring about as precisely as possible the predictions which have been made on the basis of the exact information required.

I think that is a somewhat new analysis of the aims of Scientific Management, but I believe it is absolutely sound.

(1) Seeking of more precise information. It is in the Scientific Management plant that investigation and experiment,the establishing of an experiment room with adequate equipment under the direction of capable investigators, have been worked out. It is in connection with this investigation and experimentation that time study has come in. I cite it as a method of acquiring precise information. Time study simply means a method of acquiring exact information with respect to the time which it takes a person to do a certain thing, with certain definite equipment, under certain definite conditions. If you know that the time it takes a person to do a definite thing, with definite equipment, under definite conditions-you have a piece of precise information which you can use in prediction if you receive an order to make something. There has been a great deal of abuse of time study, because it is one of those things of which it is easy to comprehend the possibilities; because it is easy to buy a stop watch; because it is easy to put over the bluff of using it properly. The stop watch has been used injuriously by unskilled persons. The scientific use of the stop watch is to take unit times. It has been applied to a good many varieties of work. Take brick laying, because that is a classical case of the application of time study as a method of scientific investigation. Brick laying has a great many variables, such as windows, corners, the nature of the