The Psychology of Management by Lillian Moller Gilbreth

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.