The Expanded and Annotated My Life and Work

Scientific Determination of Wages
And then, too, the wages were not scientifically adjusted to the jobs. The man 
in job “A” might get one rate and the man in job “B” a higher rate, while as 
a matter of fact job “A” might require more skill or exertion than job “B.” A 
great deal of inequity creeps into wage rates unless both the employer and the 
employee know that the rate paid has been arrived at by something better 
than a guess. Therefore, starting about 1913 we had time studies made of all 
the thousands of operations in the shops. By a time study it is possible theo-
retically to determine what a man’s output should be. Then, making large 
allowances, it is further possible to get at a satisfactory standard output for 
a day, and, taking into consideration the skill, to arrive at a rate which will 
express with fair accuracy the amount of skill and exertion that goes into a 
job—and how much is to be expected from the man in the job in return for 
the wage. Without scientific study the employer does not know why he is pay-
ing a wage and the worker does not know why he is getting it. On the time 
figures all of the jobs in our factory were standardized and rates set.
We do not have piece work. Some of the men are paid by the day and 
some are paid by the hour, but in practically every case there is a required 
standard output below which a man is not expected to fall. Were it oth-
erwise, neither the workman nor ourselves would know whether or not 
wages were being earned. There must be a fixed day’s work before a real 
wage can be paid. Watchmen are paid for presence. Workmen are paid 
for work.

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Wages  •  111