ADAPTING PEOPLE TO INDUSTRY THE AMERICAN WAY
As machine power rivalled hand work,
promoters of industry until recently relied for its
advancement on the perfection of technology, giving
little thought to the perfection of labor. It
was confidently assumed that labor, out of its own
necessities, would adapt itself automatically to the
new requirements of the machine, and to the shifts
of business interest. When it was discovered that
there were limitations to labor’s voluntary
adaptation under the conditions laid down, intelligent
business in America decided that the responsibility
for realizing labor’s adaptation or “labor’s
cooeperation” as they call it, must be assumed
by the management of industry and that that management
must be scientifically worked out and applied.
Scientific management is scientific
as it subjects the labor operations on each job, each
specific job to be performed in a factory, to a testing
out of the energy consumed; to discovering how to
secure labor’s maximum productivity without waste
of time or energy. It is scientific as the manager’s
state of mind towards the physical and psychological
reactions of the workers is one of inquiry and a readiness
to accept, as facts of mechanical science are accepted,
the reaction of the workers. A scientific manager,
or engineer as he is often called, bears the same
relation to the labor force in a factory that an electrical
engineer bears to the electrical equipment. If
his attention to the emotional reaction of the workers
is less detached than scientific standards require,
it must be remembered that he is trying to make adjustments
which must first of all meet definite business conditions.
Where the reactions of the workers interfere with
the whole scheme of business administration, (and
interfere they ceaselessly do), he has to substitute
measures which are not strictly speaking scientific.
On these occasions he adopts humanitarian schemes,
which are generally spoken of as welfare work.
It is the introduction of these schemes which look
like a “slop over” from science to charity,
that makes it difficult for outsiders to tell just
what scientific management is and what it is not.
Mr. Frederick W. Taylor, the founder
of scientific management, was capable of scientific
detachment in studying working men in relation to
the specific job. He was able more notably than
others had been before him, and more than many who
have followed him, to extend the impersonal state
of mind, which he enjoyed in the study of inorganic
energy, to his study of human energy. Mr. Taylor’s
interest did not emanate from sympathy with labor
in its hardships; his interest was centered in an
effort to conserve and apply labor energy with maximum
economy for wealth production. Mr. Taylor awakened
the consciousness of industrial managers to the fact
that the energy of workers like the power of machinery
is subject to laws. He demonstrated that it was
possible in specific operations to discover how the
highest degree of energy could be attained and the
largest output result, without loss through fatigue.
He showed how efficiency could be enhanced by transferring
the responsibility of standards of work from the workers
to the managers. He formulated, as a business
and industry doctrine, that a definite relation between
the expenditure of labor energy and the labor reward
could be established; that the wage incentive, if
applied to labor in relation to energy expended, would
yield, or might be expected to yield increased returns.
These incentives, rewards, stimuli, which employers
could apply would produce, he stated with unscientific
fervor, the workers’ initiative. The inability
of Mr. Taylor and other scientific managers to distinguish
between initiative and short lived reaction to stimulus
is simple evidence that their scientific experiments
were confined to comparisons which they could make
between a yield in wealth where the stimulus to labor
is weak, and a yield where it is strong. They
will not discover what a worker’s productivity
is, or might be, when incited by his impulse to work,
nor will they secure labor’s initiative, until
they release the factors, latent in industry, which
have inspirational, creative force.
The attitude of Mr. Taylor and his
followers, however, differs from that of the ordinary
manager who maintains an irritated disregard of the
disturbing elements instead of accepting them and,
as far as is consistent with business principles,
allaying or cajoling them. The significant contributions
which scientific management has made are in line with
the experiments originally introduced by Mr. Taylor.
They call for the study of each new task by the management,
for discovering the economy in the expenditure of
labor energy before it is submitted to the working
force; the standardizing of the task in conformity
with the findings; the teaching of the approved methods
to the working force; the introduction of incentives
which will insure the full response of labor in the
accomplishment of the task. Beside the standardizing
of tasks and the relating the wage to the fixed standard,
scientific management has made intensive experiments
in the scheduling of the various operations to be
performed, which are divided among the working force,
so that no one operation is held up awaiting the completion
of another. It has shown in this connection that
work can be “routed” so that the time of
workers is not lost. The most successfully managed
factories also plan their annual product so that employment
will be continuous. They have discovered that
the periods of unemployment seriously affect the personnel
of a labor force and they estimate that the turnover
of the labor force which requires the constant breaking
in of new men is an item of serious financial loss.
The Ford Automobile Works at one time hired 50,000
men in one year while not employing at any one time
more than 14,000. They estimated that the cost
of breaking in a new man averaged $70.00. To
reduce this cost, they instituted profit sharing, as
an incentive for men to remain. Other factories
have estimated the cost of replacing men from $50.00
to $200.00. A rubber concern in Ohio has a labor
turnover of 150 per cent. In connection with the
effort to reduce the turnover in the labor force the
management of well organized factories takes great
care to estimate a worker’s value before employing
him. The policy of transferring a man from one
department to another where he is better suited yields
evidently valuable results. In factories where
there is effort to hold labor, to make employment continuous,
the turnover has been reduced in some cases to as low
as 18 per cent. Generally, however, it is still
high; frequently as high as 50 per cent, and 50 per
cent is still considered low, even in factories which
have given the subject much consideration.
There is a tendency in developing
the mechanics of efficiency, as they relate to labor,
to establish for machine production standards of workmanship.
Long and weary experience has proved that wage earners
under factory methods and machine conditions are not
interested in maintaining standards of work.
The standards which are set by the scientific management
schemes of efficiency are not, to be sure, the qualitative
standards of craftsmanship but they are qualitative
as well as quantitative standards of machine work.
The tendency to establish standards should have educational
significance for workers. It would have, if the
responsibility for setting standards as well as maintaining
them rested in any measure with the workers; it would
have, that is, if the workers had the interest in workmanship,
which as things now stand they have not. The
point in scientific management is that efficiency
depends, wholly depends they believe, on centralizing
the responsibility for setting and maintaining workmanship
standards, on transferring the responsibility for
standards of work from workers who do it, to the management
who directs it done. I have learned of only one
manager who realizes that although the factory workers
are not to be trusted to maintain standards, a management
nevertheless will fail to get the workers’ full
cooeperation until it arouses their interest in maintaining
them.
The manager is Mr. Robert Wolf, who
illustrated this point at a meeting of the Taylor
Society in March, 1917. In describing the process
of extracting the last possible amount of water from
paper pulp, he said:
“Our problem was to determine
the best length of time to keep the low pressure
on, as the high, pressure is governed entirely by the
production coming from the wet machine. After
having determined that three minutes of low pressure
... gives maximum moisture test, we furnished
each man on the wet machines with a clock and asked
him to leave this low pressure on just three minutes.
As long as the foremen kept constantly after their
men and vigilantly followed them up we obtained
some slight increase in the test; but it required
a constant urging upon our part to focus the attention
of the men upon this three minute time of low pressure....
We realized finally that in order to get the results
we were after, it was necessary for us to produce
a desire upon the part of our men to do
this work in the proper way ... so we designed an
instrument which would give us a record of the
time lost between pressing operations, also the
number of minutes the low pressure was kept on.
It took us something over a year to perfect this machine,
but after it was finally perfected and a record of
the operations made, we found that the men actually
were operating at an average efficiency of 42
per cent, and our moisture test was running about
54 per cent. Our next step was to post a daily
record of the relative standing of the men in the
machine room, putting the men who had the best
record at the top of the list, in the order of
their weekly average efficiencies. (The efficiency
of low pressure, which proved to be the most important
factor, was computed by calling three minutes
of low pressure 100 per cent and two minutes either
way 0 per cent.) As a result of simply posting this
record our efficiencies rose to over 60 per cent and
our moisture test increased a little less than
1 per cent. Some of the best and most skilled
men had an efficiency of over 80 per cent, but
quite a large percentage of them were down below 50
per cent. We therefore decided that it was
necessary to have the foreman give more detailed
information to the men as to what the machine meant
and how their efficiencies were obtained and to put
the instrument which did the recording into a
glass case in the machine room where all the men
could see it. Each foreman took a portion
of the chart and one of the celluloid scales by which,
we obtained the efficiencies and explained in
detail to each one of the men how their records
were calculated. As a result of this, our
efficiency rose from 60 per cent to 80 per cent in
less than four weeks, and it has remained at 80
per cent ever since (ever since being
over two years) enabling us to get a moisture
of over 56 per cent."
This was accomplished, Mr. Wolf told
them, without resorting to piece work or bonus or
any of the special methods of payments, their men
being hired by the day throughout the entire plant.
Mr. Wolf accomplished the result by giving meaning
to a meaningless task, by letting the men see for
themselves how they arrived at results, letting them
see the different processes of getting results and
knowing on their own account which were the most valuable.
There may be other managers who appreciate
the value of letting men in on the experimental effort
of getting results but it is not the practice to do
so and it is opposed to the idea of transferring the
responsibility from the workshop to the manager’s
office or laboratory. Because of this practice
the educational value of establishing standards of
workmanship is lost so far as the workers are concerned.
Mr. Wolf’s criticism of orthodox scientific management
and his conclusions are illuminating; they are indeed
revolutionary in nature as they come from a manager
of a successful industrial enterprise:
“Our efforts, ever since we began
to realize the workman’s point of view,
have been not to take responsibility from him.
It is our plan to increase his responsibility
and we feel that it is our duty to teach him to
exercise his reasoning power and intelligence to
its fullest extent. There is no advantage gained
by stimulating a man’s reasoning power,
and through this means his creative faculty, if
the management relieves the man of the responsibility
for each individual operation. The opportunity
for self expression, which is synonymous with joy
in work, is something that the workman is entitled
to, and we employers who feel that management
is to become a true science must begin to think
less of the science of material things and think more
of the science of human relationships. Our
industries must become humanized, otherwise
there will be no relief from the present state
of unrest in the industries of the world.
“In this connection it might be
well to observe that our experience in the pulp
industry has been that instructions which go too
much into detail tend to deaden interest in the
work. We realize fully the value of sufficient
instructions to get uniform results, but we try
to leave as much as possible to the judgment of
the individual operator, making our instructions take
more the form of constant teaching of principles
involved in the operation than of definite fixed
rules of procedure. It is necessary to
produce a desire in the heart of the workman to do
good work. No amount of coercion will enlist
him thoroughly in the service.
“The new efficiency is going to
reckon a great deal more with the needs of the
individual man; but in order to do this, it must have
some philosophical conception of the reason for
man’s existence. It is beginning to be
understood that when we deny to vast numbers of
individuals the opportunity to do creative work, we
are violating a great universal law.”
Scientific management is sacrificing
educational opportunity latent in the realization
of workmanship standards in the same way that machinery
sacrificed it. They both curtail the workers’
chance to discover first-hand what the processes of
fabrication are, the processes in which they are involved;
they must adopt ready-made methods of doing their
work, they must accept them out of hand without questioning,
or chance to question, their validity. Workers
endowed with good health and moral vigor resist these
attempts to put something over on them, irrespective
of their good or evil results.
The workers have resisted machinery
not only because as individuals they were thrown,
out of jobs for a time or lost them permanently, but
because the machine imposed on them a method of work,
of activity over which they had no control. Scientific
management has undertaken to gather up whatever bits
of initiative the machine had not already taken over
and to hand back to the workers at the bench directions
for them to follow with a blind ability to accept instruction.
It is incredible to factory managers that workers
object to being taught “right” ways of
doing things. Their objection is not to being
taught, but to being told that some one way is right
without having had the chance to know why, or whether
indeed it is the right way. This resistance to
being taught, it seems, is nothing more nor less than
a wayward desire of a worker to do his own way because
it is his way, and of course from the managers’
point of view, that is stupid. It is stupid,
but the stupidity is in the situation. What does
this waywardness of the worker to do his own way suggest?
Not that he has a way worth bothering about but that
he wants to exercise the quality which all industrial
managers agree he does not possess his
initiative. Now a man who has the desire to exercise
initiative and does not know how to put anything through
is not only a useless person in society but the most
pestiferous fellow in existence. Allowing that
he is does not mean that he has not the power of initiative
or that he could not have learned to put this initiative
to good use, if at any time in his manhood or youth
he had been taught to use it, instead of being required
to follow the accepted ways of doing things without
having had the experience of trial and error.
Schools and factory management give workers scant
opportunity to discover whether they have initiative
or have not.
Mr. Wolf finds that “while it
is possible, under certain conditions, to compel obedience,
there is no possible way in which a man can be compelled
to do his work willingly and when he does it unwillingly
he is far from being efficient. He must have
the opportunity to enjoy his work and realize himself
in its performance.” “In our plant,”
he remarks, “we never made it a practice to determine
arbitrarily standard methods for performing an operation,
for we believe that the men who are actually doing
the work have generally as much to contribute as the
foremen and department heads in deciding standard
practices; and because we give the workman the chance
to have the most to say about the matter, he is willing
to conform to the standard, because it really represents
a concensus of opinion of the men in his particular
group.” It is significant in this connection
to remember that he does not pay the men by special
methods to get the return. “I am not necessarily
opposed to piece work or task and bonus methods of
payment.... We have been able to obtain splendid
results without resorting to a system of immediate
money rewards.” He thinks it is better
to pay the workers liberally so that they “can
forget this economic pressure and do good work because
of the joy that comes from the consciousness of work
well done.”
Scientific management like ordinary
management as a matter of fact does not want to cultivate
initiative in the rank and file of workers; it would
like to find more of it; and its eternal expectation
is that enough of it will rise out of the oppressive
atmosphere of the factory system to supply its limited
needs. Scientific management especially wants
this, as it must have more foremen and teachers to
carry forward its advanced schemes of organization.
But every manager will tell you that industry does
not produce men with sufficient initiative to fill
these positions. Their estimates of the number
of men found in industry who have initiative varies
from one to five per cent. The rest they believe
are born, routine workers. They speak of their
limitations as native. Managers do not stop to
consider that their judgments are based wholly on
the reaction of the mass of wage workers to the special
stimuli which they offer. They say also that high
school and college boys show up very little if any
better in respect to initiative than the lower school
product. The truth is that schools and colleges
are more concerned with passing on the standards of
an older generation to a younger, and the younger
that generation is the less it is entrusted with opportunity
to make its own first hand inquiries. That is,
the lower schools which deal with a generation at
its most plastic time, furnish the higher schools with
minds inured to the pressure of accepting subject
matter without independent inquiry or curiosity.
Factory management like college and
school management, instead of depending on the subject
matter to interest the workers, instead of opening
up to them the factors of interest in industrial enterprise,
has adopted incentives for getting the required work
done. Enlightened school practice, out of long
failure to get the children’s initiative by
the artificial stimulus of rewards for work done, now
depends upon the content of the subject matter and
the children’s experiments with it, to develop
their desire to do the work. The practice of depending
on school rewards instead of interest in subject matter
is largely responsible for superficial knowledge and
lack of ability to think as well as to act. As
schools fail to incite the interest of the children
they train them to put through this and that task and
reward them for it without having added to their power
of undertaking tasks on their own account. Indeed,
as they fail to give them the chance to do that, they
actually decrease whatever power they may have had.
The doing of tasks in factories for
the sake of rewards, gives the workers experience
in winning rewards. As they are interested only
in the reward, they carry away no desire or interest
in the work experience. As the method of doing
the work is prescribed in every detail and their only
requirement, under scientific management, is to follow
directions with accuracy, they are trained to do their
tasks as the children in school are trained.
They are trained in routine, and to do each task as
it is given. This is not education, it is training
to do tricks. The worker does not take over what
can be called experience from one task to another.
He forms certain motor habits, called skill.
But under the efficient methods of scientific management
the acquirement of this skill is robbed even of the
educational value that it had under the unscientific
method of factory work, which within its limited field,
left the worker to discover by trial and error what
were the best methods of getting results. Moreover,
the standards of workmanship which scientific management
sets up are not the worker’s own standards;
he has had no part in the making of them or in deciding
on the comparative merits of the results. He
accomplishes the results as he follows directions,
not for the sake of the result, not for the sake of
good workmanship, but for the reward.
As I have said scientific management
has given the subject of incentives the same careful
thought that it has given to the study of lost energy.
The two important incentives for inducing the response
of labor to productive enterprises which scientific
management has carried forward in their applications,
are wages and promotion. The general assumption
is that the wage as an incentive has no limitations,
except the physical limitation of a human being in
response to stimulus. And surely it is true that
the chance to “make money” is to-day the
most powerful stimulus in use. But thoughtful
managers of industrial enterprise tell you, incredible
as it may seem, that the worker’s objection
to applying himself to his task is not invariably
overcome by anticipation of the wage return; he will
slack or be perverse or throw over a job in the face
of opportunities to earn as good a wage or a better
one than he can get elsewhere. It is well known
that workers joint unions in the face of opposition
of employers and at the risk of losing permanent positions.
A resourceful manager in one of the
most intelligently managed plants in the United States
told me that women were less susceptible than men
to the wage incentive. He found that many of them
are content when their wage covers a sum which represents
for them their personal requirements; that they cannot
interest them in trying for more. On that account
the manager takes up the case of the individual girl
to see if her ambition to earn more money cannot be
stimulated. They find sometimes that a mother
requires her daughter to give in her whole wage at
the end of the week and that the girl has no pleasure
in the spending of it; they visit the mother and persuade
her to let the girl keep a proportion of her wage
and point out to the mother that she is limiting the
girl’s ambition. They also find girls who
have entire control over the spending of their wages,
who are without ambition to earn over and above a
certain sum because that sum will meet their own recognized
needs. The case of these girls the management
tries to cover by encouraging them to save for vacations
and other purposes which they offer by way of suggestion.
In both of these instances the management undertakes
to create new wants or ways of realizing wants which
were not recognized by the workers themselves.
The satisfaction of these wants may or may not be
in the direction of extending experience and expanding
contacts. But that is neither here nor there.
The point is, the manager of the industry has used
an incentive for increasing production which has no
relation to production itself. He is forced to
do this because he fails to make the process of production
a matter of interest to the worker. The processes
of production do not of themselves as we know compel
the workers’ application or stimulate their
desire for productive enterprise.
It is in the nature of the case impossible
to increase the wage incentive indefinitely.
One large and scientifically managed plant has made
remarkable provisions for staving off the time when
the dead line is reached. They have taken stock
account of the labor power they require, the amount
of energy which each worker possesses, for the purpose
of evaluation and payment. They have undertaken
to cover as separate items each condition which affects
a worker’s relation to his job. They rate
as separate items the worker’s proficiency,
reliability, continuity in service, indirect charges,
increased cost of living, and periods of lay-off;
they rate him according to the number of technical
processes he is proficient in, whether or not he is
engaged on more than one; they rate him if he attends
the night school connected with the factory and shows
in this way a disposition to learn other operations
than, those he already knows. Why, they wonder,
does only ten per cent of the force take advantage
of the school and what, they are eager to find out,
can they do further to secure the men’s cooeperation.
For “cooeperation,” they say, “in
a special way deserves credit, since it is unexpected
... certain well defined acts of cooeperation will
bring extra reward.” Their rewards so carefully
calculated did not seem to enlist response as spiritual
in its nature as cooeperation. It seemed that
they had reached “the dead line” where
wage stimulus fails to draw its hoped for response.
To get from the workers the highest
efficiency the scientifically managed plants pay for
a task a stated rate based on piece or time; if the
task is performed within the time set and the directions
for doing the task as laid out by the management,
are followed, the worker receives in addition to the
regular rate, a bonus. Mr. H.L. Grant, while
working with Mr. Taylor, discovered that there was
weakness in the system of paying bonuses, and the
weakness was not overcome until he devised a method
of paying the workman for the time allowed plus a
percentage of that time according to what he did.
This method he declares constantly induced further
effort and overcame what they discovered was the weakness
in a flat bonus. As fair or as superior as this
bonus may be in relation to the prevailing rate in
the market, managers say that the workers are apt
in time to fall below the standard as their work becomes
routine, unless the incentive after a time is increased
or changed in character. In other words the wage
incentive is like a virus injection. The dose
is not continuously effective, except as the amount
is increased or altered.
A usual method of keeping alive the
financial incentive is profit sharing and schemes
for participation in profits, but they are rewards
of general merit and bids for continuity of service;
they have no direct relation to the workers’
efficiency and compliance with standards which distinguish
the wage rewards of scientifically managed plants.
Promotion, the incentive second in
importance to the wage incentive, is of assistance
in postponing the time when the dead line for the
worker is reached. Nothing better illustrates
the limitations of promotion in this respect than
the fact that in factories where the turnover is the
lowest, the opportunity to promote the workers decreases;
it falls in proportion to the length of their term
of service. That is, chances for promotion are
the lowest in factories where conditions otherwise
are favorable to the worker. In the factory where
the turnover is only 18 per cent the management says
that promotion is a negligible factor. Where
the turnover is high there is greater opportunity
in plants scientifically managed than in others to
promote men, as the scheme of organization calls for
a larger number of what they call “functionalized
foremen” and teachers in proportion to the working
force.
It is as I have said, on account of
the necessity of these positions in the general scheme
that managers of factories are interested in finding
more men who have initiative, than industry under their
direction has produced.
Before scientific management was discovered,
business management and machinery already had robbed
industry of productive incentives, of the real incentive
to production; a realization on the part of the worker
of its social value and his appreciation of its creative
content. All that was left for scientific management
to gather together for its direction were bits of
experience which workers gained by their own experimental
efforts at how best to handle tools. Their efforts
it is true were not sufficiently great in this direction
to promise progressive industrial advance. The
margin for experiment which was still theirs was not
sufficiently largo to insure continued effort inspired
by an interest in the work.
When we have taken into full account
the repressive effect of scientific management on
initiative, we may well admit an advantage: educationally
speaking, the repression is direct. The workers
are fully aware that they are doing what some one
else requires of them. They are not under the
delusion that they are acting on their own initiative.
They are being managed and they know it and all things
being equal (which they are not) they do not like it.
The responsibility they may clearly see and feel rests
with them to find a better scheme for carrying industry
forward. The methods of scientific management
are calculated to incite not only open criticism from
the workers but to suggest that efficient industry
is a matter of learning, and that learning is a game
at which all can play, if the opportunity is provided.
Scientific managers have hoped that
their plans to conserve energy and increase the wage
in relation to expenditure of energy would meet little
opposition. They also have hoped that the paternalistic
feature of welfare work would allay opposition.
But I am not inclined to include the welfare schemes
in a consideration of scientific management; they
have little light to throw on what educational significance
there is in the efficiency methods which scientific
management has introduced in industry. The playgrounds
attached to factories, the indoor provisions for social
activity, the clubs, while not having an acknowledged
relation to the scientific management of the factory
and while repudiated by some managers, are a common
feature of plants which claim to be scientifically
managed. There are scientifically managed plants
which object to the recreational and other features
which have to do with matters outside the province
of the factory, on the ground that it is a meddling
with the personal side of people’s lives.
“A baseball game connected with the factory,”
said the educational manager of a certain plant, “has
the effect of limiting the workers’ contacts;
it is much better for them, as it is for every one,
not to narrow their relationships to a small group,
but to play ball with the people of the town.”
It is significant that this concern deals with the
union and conforms to its regulations. Whether
this more generous concept of the workers’ lives
yields more in manufactured goods than one that confines
the activity of the workers to the factory in which
they labor, scientific management, so far as I know,
has not discovered.
The very nature of the welfare schemes
suggests that they are inspired more out of fear of
the workers’ freedom of contact than launched
on account of comparative findings which relate strictly
to the economy of labor power. The policy of
leaving the workers free, it was clear in the instance
just cited, had been adopted out of a personal preference
for freedom in relationships. The introduction
of clinics, rest rooms, restaurants, sanitary provisions,
and all arrangements relating directly to the workers’
health have a bearing on efficiency and productivity
which is well recognized and probably universally
endorsed by efficiency managers, even if they are not
invariably adopted.
Scientific management wants two things;
more men in the labor market to fill the positions
of functionalized foremen, more men than modern industrial
society has produced; and it wants an army of workers
who will follow directions, follow them as one of
the managers said, as soldiers follow them. It
wants this army to be endowed as well with the impulse
to produce. It may by its methods realize one
of its wants, that is, an army of workers to follow
directions; but as it succeeds in this, as it is successful
in robbing industry of its content, and as it reduces
processes to routine, it will limit its chances to
find foremen who have initiative and it will fail to
get from workers the impulse to produce goods.
During the last four years, under
the stress of a consuming war every stimulus employed
by business management for speeding up production
has been advanced. Organized efficiency in the
handling of materials has increased the output, as
increased rewards to capital and labor have stimulated
effort. But the quantitative demand of consumption
requirements is insatiable. It is not humanly
possible under the present industrial arrangements
to satisfy the world’s demand for goods, either
in time of war or peace. It was never more apparent
than it is now, that an increase in a wage rate is
a temporary expedient and that wage rewards are not
efficient media for securing sustained interest in
productive enterprise. It is becoming obvious
that the wage system has not the qualifications for
the cooerdination of industrial life. As the
needs of the nations under the pressure of war have
brought out the inefficiencies of the economic institution,
it has become sufficiently clear to those responsible
for the conduct of the war and to large sections of
the civil population, that wealth exploitation and
wealth creation are not synonymous; that the production
of wealth must rest on other motives than the desire
of individuals to get as much and give as little as
particular situations will stand.
In England and in the United States,
where the individualistic conception of the industrial
life has been an inherent part of our national philosophy,
the governments, with cautious reservations, have
assumed responsibilities which had been carried in
normal times by business. Because business administration
had been dependent for its existence on a scheme of
profiteering it is not in the position where it can
appeal to labor to contribute its productive power
in the spirit of patriotic abandon. But governments
as they have taken over certain industrial responsibilities
are in a better position to make such appeals to capital
as well as to labor.
The calculable effect of the appeal
to capital to assume the responsibility is in the
long run of passing importance, as under the present
business arrangement that is the position capital occupies.
In other words, the appeal will mark no change in
capitalist psychology as it promises to do in the
case of labor.
The calculable effect on labor psychology
may have revolutionary significance. It is quite
another sort of appeal in its effect from the stereotyped
and familiar one of employers to labor to feel
their responsibility. That appeal never reached
the consciousness of working men for the reason that
it is impossible to feel responsible or to be responsible
where there is no chance of bearing the responsibility.
Experiencing responsibility in industry means nothing
more nor less than sharing in the decisions, the determination
of procedure, as well as suffering from the failure
of those decisions and participating in their successful
eventuation. As the governments in the present
case have made their appeals to labor they have carried
the suggestion of partnership in responsibility because
the government is presumably the people’s voice
and its needs also presumably are the common needs
and not the special interests of individuals.
It is hardly necessary to point out that it was not
the intention of government officials who made the
appeal to excite a literal interpretation; they did
not expect to be taken so seriously and up to date
they have not been taken more seriously than they
intended by American labor. All they mean and
what they expect to gain, is what employers have meant
and wanted; that is labor’s surrender of its
assumed right to strike on the job, its surrender
of its organized time standards and its principle
of collective bargaining. But when officials speak
in the name of a government what they mean is unimportant;
what it means to the people to have them speak, and
the people’s interpretation of what they say,
is the important matter.
These appeals of the governments in
this time of war to the working people have the tendency
to clear the environment of the suggestion that common
labor, that is the wage earning class (as distinguished
from salaried people, employers and the profiteers
pure and simple) are incompetent to play a responsible
part in the work of wealth production. A responsible
part does not mean merely doing well a detached and
technical job; it means facing the risks and sharing
in the experimental experience of productive enterprise
as it serves the promotion of creative life and the
needs of an expanding civilization. As the appeals
of the governments at this time bear the stamp of a
nation’s will, its valuation and respect for
common labor, there is the chance, it seems, that
they may carry to the workers the energizing thought
that all the members of the industrial group
must assume, actually assume, responsibility for production,
if production is to advance. Equally important
in the interest of creative work is the power of these
appeals to shift the motive for production from the
acquisitive to the creative impulse. In the midst
of the world’s emergency, driven by the fear
of destruction the nations have turned instinctively
to the unused creative force in human and common
labor, that is to the ability of the wage earner to
think and plan. If the response of labor is genuine,
if with generous abandon it releases its full productive
energy, it is quite certain as matters now stand that
neither the governments nor the financiers are prepared
to accept the consequence.
If labor in answer to these appeals
gains the confidence that it is competent to carry
industrial responsibility, or rather that common labor,
together with the trained technicians in mechanics
and industrial organization are competent as a
producing group to carry the responsibility, one
need we may be sure will be eliminated which, has
been an irritating and an unproductive element in industrial
life; I mean the need the workers have had for the
cultivation of class isolation. As the workers
become in the estimation of a community and in their
own estimation, responsible members of a society, their
more rather than less abortive effort to develop class
feeling in America, will disappear. Under those
conditions concerted class action will be confined
to the employers of labor and the profiteers, who will
be placed in the position of proving their value and
their place in the business of wealth creation.
On this I believe we may count, that labor will drop
its defensive program for a constructive one, as it
comes to appreciate its own creative potentiality.
Judging from recent events in England,
where the government appeals to labor have had longer
time to take effect, it seems that new brain tracks
in labor psychology have actually been created.
English labor apparently is beginning to take the
impassioned appeals of its government seriously and
is making ready to assume the responsibility for production.
The resolutions adopted by the Labor Party at its
Nottingham Conference in November in 1917 covered organized
labor’s usual defense program relating to wage
conditions. The Manifesto which was issued was
first of all a political document, written and compiled
for campaign purposes. But the significance of
the party’s action is the new interpretation
which it is beginning to give industrial democracy.
It is evident where state ownership is contemplated
that the old idea that industry would pass under the
administrative direction of government officials,
is replaced by the growing intention and desire of
labor to assume responsibility for administration
whether industry is publicly or privately owned.
The Party stands for the “widest possible participation
both economic and political ... in industry as well
as in government.” In explanation of the
Manifesto, the leader of the Party is quoted in the
Manchester Guardian as saying, that when labor now
speaks of industrial democracy it no longer means
what it did before the war; it does not mean political
administration of economic affairs; it means primarily
industrial self-government.
Perhaps an even better evidence of
the intention of English labor in this direction is
the movement towards decentralization in the trade
union organization. This movement, known as the
“shop-stewards” movement is essentially
an effort of the men in the workshops to assume responsibility
in industrial reconstruction after the war, a responsibility
which they have heretofore under all circumstances
delegated to representatives not connected directly
with the work in the shops. As these representatives
were isolated from actual problems of workshop production
and alien therefore to the problems in their technical
and specific application, they were incapable of functioning
efficiently as agents of productive enterprise.
This “shop stewards” movement recognizes
and provides for the interdependence of industrial
interests, but at the same time it concerns itself
with the competent handling of specific matters.
Such organization as the movement
in England seems to be evolving, the syndicalists
have contended for as they opposed the German idea
of state socialism. But the syndicalists in their
propaganda did not develop the idea of industry
as an adventure in creative enterprise. Instead
they emphasized, as did the political socialists and
the trade unionists, the importance of protecting
the workers’ share in the possession of wealth.
They made the world understand that business administration
of industry exploited labor, but they did not bring
out that both capital and labor, so far as it was
possible for each to do, exploited wealth. That
was not the vision of industry which they carried
from their shops to their meetings or indeed to their
homes. Their failure at exploitation was too
obvious.
An interesting illustration of what
would happen in the ranks of the syndicalists if the
business idea of labor’s intellectual and emotional
incapacity for functioning, gave way before a community’s
confidence in the capacity of labor we have
in the case of the migratory workers in the harvesting
of our western crops. The harvesters who follow
the crops with the seasons from the southern to the
northern borders of the United States and into Canada
are members of the most uncompromisingly militant
organization of syndicalists, The Industrial Workers
of the World. On an average it takes ten years
for these harvesters to become skilled workers and
these men, members of this condemned organization,
are the most highly skilled harvesters in the country.
On account of their revolutionary doctrines and their
combined determination to reap rewards as well as crops,
they are considered and treated like outlaws, and
outlaws of the established order they are in spirit.
When the owners of the farms of North Dakota realized
that their own returns on the harvests were diverted
in the marketing of their grain, they combined for
protection against the grain exchanges and the elevator
trusts. While developing their movement they
discovered that the natural alliance for their organization
to make was with the men who were involved with them
in the production of grain. And as the farmers
have accepted the harvesters as partners they have
formed in effect a cooerdinated producing combination.
Without finally settling the problem of agriculture,
they have strengthened the production group and eliminated
strife at the most vital point.
In the period of reconstruction the
industrial issues of significance to democracy will
be whether or not management of industry as it has
been assumed by the state for the purpose of war shall
revert after the war to the condition of incompetency
which the war emergency disclosed or whether state
management shall be extended and developed as it was
in Germany after the Franco-Prussian War. Fortunately,
these evidences of a new interest of labor in industry
as a social institution, give us some reason to hope
that we shall not be confined to a choice between
business incompetency and state socialism. The
evidence of the desire on the part of the labor force
to participate in the development of production is
the factor we should keep in mind in any plans for
democratic industrial reconstruction. It is inevitable
that an effort to open up and cultivate this desire
of labor will be regarded by the present governing
forces with apprehension. The movement of labor
in this direction is now looked upon with suspicion
even by people who are not in a position of control.
The general run of people in fact outside of those
who recognize labor as a fundamental force in industrial
reconstruction, conceive of the labor people as an
irresponsible mass of men and view their movements
as expressions of an irresponsible desire to seize
responsibility. They are the men who are not experienced
in business affairs and therefore cannot, it is believed,
be trusted. The arguments against trusting them
are the same old arguments advanced for many centuries
against inroads on the established order of over-lordship.
But over-lordship has flourished at all times, and
in the present scheme of industry it flourishes as
it always has, in proportion to the reluctance of
the people to participate as responsible factors in
matters of common concern. Corruption and exploitation
of governments and of industry are dependent upon the
broadest possible participation of a whole people in
the experience and responsibilities of their common
life. It is for this reason that we need to foster
and develop the opportunity as well as the desire
for responsibility among the common people.
After the war, it is to be hoped that
America will undertake to realize through its schemes
for reconstruction its present ideals of self-government.
As it does this, we shall discover that the issues
which are of significance to democracy are of significance
to education; for democracy and education are processes
concerned with, the people’s ability to solve
their problems through their experience in solving
them. If America is ever to realize its concept
of political democracy, it can accept neither the
autocratic method of business management nor the bureaucratic
schemes of state socialism. It cannot realize
political democracy until it realizes in a large measure
the democratic administration of industry.