Chapter IX
Reading edition
CHAPTER IX
INCENTIVES 271
Definition of Incentive — Importance of Incentives — Direct and Indirect Incentives — Definition of Reward — Definition of Punishment — Nature of Direct Incentives — The Reward Under Traditional Management — The Punishment Under Traditional Management — The Direct Incentive Under Traditional Management — Incentives Under Transitory Management — Rewards Under Scientific Management — Promotion and Pay — Relation of Wages and Bonus — Day Work — Piece Work — Task Wage — Gain Sharing — Premium Plan — Profit Sharing — Differential Rate Piece — Task Work with a Bonus — Differential Bonus — Three Rate — Three Rate with Increased Rate — Other Rewards — Negative and Positive Punishments — Fines and Their Disposal — Assignment to Less Pleasant Work — Discharge and Its Elimination — Use of Direct Incentives — Summary: (a) Effect of Incentives upon the Work; (b) Effect of Incentives upon the Worker.