ABSTRACT

This chapter deals with hours of work, incentive wage plans, and measures to provide supplementary compensation. Emphasis is placed on the techniques which were used to induce employees to put forth greater effort on the job. Important among the changes introduced by employers were incentive wage plans. Straight piece rate systems had been used long before 1890, but more refined plans were an integral feature of the Scientific Management Movement which had its beginning in this period. Sharing profits with employees was early recognized as one possible way of reducing conflict between employers and employees over wages and working conditions. While many employers were trying to improve the relationship between themselves and their employees through profit sharing, others placed reliance upon stock purchase plans. The practice of providing life insurance for employees was inititated at the close of the nineteenth century.