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HumanFactorBusiness PDF
I N BUSINESS
BY
B. SEEROHM ROwNTREE
'
AUTBOR OB POVERTY : A STUDY OB TOWN LIBE,'
'HOW TEE LABOURER LNES,' 'TEE HUMAN NEEDB
OB LABOUB,' ETO., ETO.
L O N Q M A N S , G R E E N , A N D CO.
3 9 P A T E R N O S T E R ROW, L O N D O N
FOURTa AVENUE & SOTH STREET, NEW YORK
BOMBAY, ObLDUTTA, AND MADRAS
1921
INT RODUCTION
IN pre-war days Labour Unrest was one of the most
serious problems confronting the country. I n 1913,
11,491,000 working days were lost through strikes
arid lock-outs. The situation was steadily growing
worse, when the contending forces in this country
united in defence against a foreign foe. Then, al-
though from time to time during the war there was
a recrudescence of unrest, it was held in check by a
consciousness of t he national danger.
Now, however, it has broken out again with
redoubled force ; and in 1919 the Labour Gazette,
published by the Ministry of Labour, recorded 1413
strikes and loclc-outs, affecting 2,570,000 persons, and
involving the loss of 34,483,000 working days. That
year witnessed the railway strike, which lasted for
nine days, and dislocated industry from John o' Groats
to Land's End. I n 1920 there was little improvement,
for there were 1715 strikes and lock-outs, affecting
1,932,000 people, and causing the loss of 27,011,000
working days. The iron-moulders' strike, which began
on September 22, 1919, and lasted until January 12,
1920, caused serious dislocation, and its effects were felt
throughout the year ; while in October the general
strike of miners, which continued for 6fteen days,
threatened to bring industry and transport to a com-
plete standstill. I n short, it must be admitted that
the situation is darker than it was before the war.
V
INTRODUCTION vii
vi INTRODUCTION
unfavourably with those of many other workers. More-
Conditions in 1921 are even worse than in the two over, responsible statesmen in this country promised
preceding years. them, when the war was over, ' a land fit for heroes
There are several reasons for this. I n the first to live in ' ; and bright word pictures were painted of
place, the high cost of living, and an exaggerated idea what they might expect. Small wonder that when
of the extent to which employers were ' profiteering,' some of them compared the actual conditions with
produced extreme irritation among the ranks of the those to which they had looked forward, they were
workers-an irritation greatly increased by the growing filled with disappointment. ' If this is the best your
volume of unemployment. Men who had been fighting capitalistic system of industry can provide,' they said,
for years returned to find work difficult to obtain, a t ' then let us try something else, for i t is not good
a time when prices were soaring. The situation was
enough ! '
aggravated by the house famine and the long delay Thus, the causes of labour unrest go much deeper
in building the sorely needed houses. I n the opinion
than difference of opinion regarding wage-rates. The
of the workers, these evils could and should have been whole basis of indiistry is challenged. And frequently,
avoided. Being unfamiliar with the intricacies of to-day, the lot of the agitator is easjer and much less
finance and the economics of industry, they did not anxious than that of the experienced Labour leader,
realise the magnitude of the difficulties to be overcome, who has learned to look all round a question before
and they attributed the hardships from which they giving his opinion, and in whom responsibility and
suffered entirely to apathy on the part of the experience have implanted a sense of caution.
Government and to the selfish greed of employers I do not propose in this book to discuss the basis
and financiers? This view was strengthened by of industry, but I suggest that whatever experience may
irresponsible writers and speakers, who assiduously teach us in that respect, there are certain conditions
fanned the flame of popular discontent. which must be secured for the workers, no matter
I n the second place, a profound change has come what the industrial structure may be.
over the psychology of the workers since 1914. The These are :
war has shaken them out of their ruts. Many of them,
in pre-war days, had grown accustomed to conditions 1. Earnings sufficient to maintain a reasonable
which lelt much to be desired. But they are not standard of comfort.
prepared to return to them without demur. They 2. Reasonable hours of work.
have travelled widely, and mixed with men from other 3. Reasonable economic security during the whole
towns and other countries. They have exchanged working life and in old age.
notes upon iridustrial conditions with Americans and 4. Good working conditions.
men from the Dominions, and now they ask why
they should submit to conditions which compare 5. A status for the workers suitable to men in a
free country in the twentieth century.
I do not wish to suggest that the Government did all that could
possibly have been done to avoid the conditions complained of : my Since hitherto these conditions have not been
p o k t is that the difficulty of setting the world to work again, after so
terrific an upheaval, was enormously greater than the average worker adequately secured under the capitalistic system, the
imagined.
viii INTRODUCTION
more extreme thinkers are demanding its complete That is why I have mitten this book, which largely
overthrow, in order that an entirely new system may be consists of a description of the way in which the
set up in its place. There is great divergence of opinion directors of the Cocoa Works, York, have tried to solve
as to what the new system should be. Some advocate some of the human problems of business administra-
the nationalisation of all the means of production and tion. I deal with the subject under five heads-Wages,
distribution of wealhh, of Course including land. Others Hours, Economic Security of the Workers, Working
advocate Syndicalism or Guild Socialism, and some hold Conditions, Joint Contro1,-and in each section I
that we should follow Russia's example, and set up a indicate the end we have in view, the means by which
system of Soviets. But the overwhelming majority we try to achieve it, and the extent of our success.
of workers are in favour of evolving a better state I should be the last to claim any special merit for
of things out of what exists at present, rather than of our methods, but we have received so much help from
scrapping it entirely and starting afresh. Personally, others, that it seemed incumbent on us to throw our
I agree with that view. Although profoundy dis- experience into the common stock of knowledge, in the
satisfied with industrial conditions as they are to-day, hope that we may thus repay, in some measure, the
I believe improvement must be sought for by building debt we owe to the experience of other firms.
on the present foundation, though the ultimate struc- B. S. E.
ture will doubtless be very different from that with
which we are now familiar. Yom,
Evolutionary changes may come through threo May, 1921.
channels. They may be brought about by legislation,
or by negotiation between workers and employers,
either in an individual firm or in a whole industry,
or they may be made voluntarily by employers who
recognise the need of them. With regard to the last
class, however, it is well to remember that much social
legislation consists in making generally compiilsory
what voluntary experiment has shown to be desirable.
A great and growing number of employers are
trying to provide, in connection with the businesses
which they direct, the conditions which are demanded
by the more thoughtful Labour leaders. In many
cases, they are working out the problems involved in
association with their employees. Being pioneers, they
are obliged to proceed by way of experiment, and it is
of great service to others working in the same field if
they will publish an account of their work and of the
results obtained.
CONTENTS
TIIE ICURiAN FACTOR
IN BUSINESS
CHAPTER I
WAGES
in the evenings. They are markedly less energetic Grade ' B ' Overlookers . . 2 ,,
than school children. This fact points tto the desir- Women are now eligible to join the Pension Fund at the age of
ability of a n arrangement whereby the length of the twenty. In 1919 they could not join until the 8ge of twenty-five.
30 THE HUMAN FACTOR IN BUSINESS
Grade ' C ' Overlookers . . 14 weeks
O6ce Heads . 4
Office Seconds . .
9,
t
2 to 4 weeks,
Engineers, etc. according to
responsibility
The length of holiday does not vary with length of
service. It is felt that the rjght basis for variatjon is CHAPTER I11
the value of the service rendered, or the strain which SECURITY OF LIFE
it involves, and not the number of years for which
it is continued. PART I
COST OF PENSIONFUND
As already stated, one object in founding the
We come now t o the important question of the Pension Fund was to relieve the workers of anxiety
cost of the Pension Fund. Since its inauguration in as t o what was going t o happen to them in old age.
1906, capital Sums, amounting in all to £106,000, have The wages currently paid to ordinary workers in
been handed over a t different times to the Pension industry do not enable them to save sufficient for this
Fund Trustees. Of this total, £19,500 was paid o x r purpose. So far as the workers themselves are con-
on the i ~ c e p t i o nof the scheme, to secure adequa~e cerned, the object was attained by the Pension Fund,
pensions to those who had been in the employment of but this did nothing t o remove the fear of what might
the firm for many years, and had passed middle life ; happen to a man's wife if she survived him, since his
and £73,000 was paid over in 1920, as explained on pension would cease on his death. To meet this
p. 47, t o meet the situation arising through the great situation, the directors, in 1917, inaugurated a Widows'
decrease in the purchasing power of the £1. The Benefit Scheme, under which pensions are payable t o
annual contributions to the Fund during the fourteen all widows aged fifty and over a t the death of the
years ending October 1920 have amounted in all to husband, subject, however, to the following limitations :
£226,000. Of this sum, £134,000 represents payments
by the Company, and £92,000 contributions of members. (U) The parties must both of them have been under
Just a t present, the annual cost of the Fund, the age of fifty a t the date of their marriage.
considered as a percentage of the wage bill, is heavy, (b) The marriage must have preceded the death of
both to the Company and t o the members. I n view the husband by a t least ten years.
of the enormous increase in money wages which has (C) The husband must have been for a n uninterrupted
occurred in recent years, even after allowing for the period of ten years prior t o his death a con-
contribution of £73,000 made by the Company to the tributing member or pensioner of the Fund.
Fund in 1920, i t is necessary for those who are in The pensions are based upon the husband's pension
middle life, or older, to pay high premiums, if they or prospective pension, a t the time of his death, and
are to ensure adequate pensions. As explained above, range from 35 per cent., if the widow is fifty years of
a high premium paid by the member involves a, age, to 50 per cent., if she is aged sixty-five or over.
~orrespondinglyhigh payment by the Company.
60 THE HUMAN FACTOR IN BUSINESS SECURITY OF LIFE 61
The minimum pension for a widow is ten shillings persons have thus been insured a t a cost of about
weekly, and if the percentage of thc husband's pension £200 a year.
is less, it is made up to ten shillings. The rules of the Pension Fund already provided
This Widows' Pension Scheme has been greatly that on the death of a member before pension age,
appreciated, and men have stated that it has removed the amount of his or her own subscriptions, with
from their niinds a grave anxiety. It has, however, compound interest a t 22 per cent., should be paid t o
proved a costly addition t o the original Pension Fund, his or her personal representatives.
especially because so many men were advanced in I n order to provide a death benefit, the Company
years when the widows' scheme was introduced, and promised, in the case of a male member of the Pension
thus heavy new liabilities were incurred, against which Fund who died before entering into receipt of his
no previous payments had been made. Ten thousand pension, leaving a widow, or a child or children under
pounds was paid iiito the Pension Fund when the fourteen, the widow not being entitled under the rules
Widows' Pension Scheme was established, and weekly t o a life pension, to provide a siim sufficient t o bring
payments equal t o one and a third times those payable the member's own subscription, with added interest,
by the Company on account of the men are made in up to £50. They also promised t o make a similar
addition. This heavy charge will not bs permanent, provision in the case of any widow who was a member
being largely in the nature of back payment. Apart of the Pension Fund, and who died before entering
from this, it is estimated that a payment by the into receipt of her pension, leaving a child or children
Company equal t o 75 per cent. of that made on behalf under fourteen.
of the male members will suffice to provide a widow's That this additional sum provided by the Company
benefit. I n other words, the cost of the Widows' may be utilised to the best advantage for the widow
Pension Scheme may be expected to amaunt t o about or children, the money is handed over to a committee,
24 per cent. of the wage bill of male members of the consisting of the workers' trustees of the Pension
Pension Fund or t o about 1 i per cent, of the total Fund, the secretary of the Pension Fund, and two
wages and salaries bill.1 The whole cost of the widows' representatives of the Employment Department, who
pensions is borne by the Company. are held responsible for handling the money in such
a manner as they may deem best.
It will bc noted that under this scheme the liability
of the Company is heavy in the case of young members,
I n 1911 the suggestion was made to the directors, but disappears as soon as a man's own contributions,
by the Secretary of the Pension Fund, that for a with 24 per cent. compound interest, amount t o £50.
comparatively small sum i t would be possible to insure I n the aggregnte, the total cost of the scheme to the
every married member of the Pension Fund for £50, Company is very slight in comparison with the security
made payable a t such member's death. Two thousand giveri to members. Apart from the war, when con-
The diffemnoe between the two percentages is, of Course, due to tributions were made in seventy-three cases, payment
the fact that the 3 per oent. refers to the wages of men over twenty,
and the I f per Cent to dl the wages paid, includmg men under twenty has only been made in thirty-one cases. The total
and all wornen and girls. cost of the scheme for the nine years (1912-1920) has
62 THE HUMAN FACTOR I N BUSINESS SECURITY OF LIFE 53
been--for seventy-three military cases, £2948, and Nations, or otherwise, schemes will be devised for
for thirty-seven civilian cases, £1 133. giving greater economic security to the workers in all
I n reviewing the sahemes which have been adopted civilised communities ; and, speaking from the financial
a t the Cocoa Works to give economic security to the standpoint, I am confident that the favourable reaction
workers, it will be Seen that a substantial measure of of such a policy upon output would more than counter-
security has been given in relation to sickness, in- balance the expenditure which it involved.
validity, unemployment, old age, and death. When
the special circumstances due to the sudden deprecia-
tion of money values have disappeared, the total
annual cost to the Company of providing this will be
a trifle over 5 per cent. of the total wages and salaries
bill. At present it is just over 6 per cent. This
cost is in addition to the capital Sums, amounting in
all to £166,000, whieh have been contributed from
time to time during the last fourteen years. But it
must be pointed out that the security for old age
depends on the continued association of the employee
with the firm. Thus, if an employee were dismissed,
or left the service to take up another appointment,
he would be entitled to withdraw his own contributions
to the Pension Fund, plus 24 per cent. compound
interest, but he could lay no claim to the contributions
made by the Company year by year on his account.
These would revert to the Fund. Similarly, the claim
to a widow's pension would be lost. To this extent the
security is only partial-but this seems inevitable
until pensions on a liberal scale are general.
It may be argued that, in view of the cost, it would
be impossible for industry generally to provide security
for the workers on a scale as liberal as I have described
above, and that this is especially true of industries
where labour constitutes a large proportion of the
cost of production. But as I have already said, workers
are rightly demanding greater security of life ; and
the publio conscience is supporting their demand. I
venture to think that the time is not far distant when,
through the Labour Department of the League of
GOOD WORKING CONDITIONS 55
for gocd wages, reasonable hours, and economic
security.
Assuming this, every employer should seek to
surround the workers with the best materid environ-
ment which his special circumstances and the conditions
of his industry render practicable. Clearly, these must
vary greatly from factory to factory and industry to
industry. One cannot expect to find such good condi-
CHAPTER I V tions in an old factory in a crowded city as in a new
GOOD WORKINCt CONDITIONS
factory in the country, nor can a steel-smelting plant
be kept as clean and comfortable as a factory where
PART I
delicate instruments are assembled. But all employers
can place the Same aim before them-to make the
W o ~ m aconditions in industry may be considered material working conditions as good as possible.
under two headings: first, in relation to material There are few factories-and I certainly should not
environment, and, secondly, in relation to personal include our own among the number-where improve-
environment . ments could not be made which would greatly add to
I will deal with them in this order. the comfort and, incidentally, to the coiitentment and
efficiency of the employees. The fact is that, in the
past, employers have not given enough thought to this
aspect of business administration. We have regarded
Undoubtedly, under this heading, we might include our factories as buildings where certain mechanical
the all-important questions of wages, hours, and processes had to be carried out, and the well-being of
economic security, which have been already dealt with. the workers has often been a secondary consideration.
I t cannot be too clearly stated that proper attention t o
these matters should take precedence over what I may PLANNING AND DECORATION OF WORKROOMS
call the ' refinements ' of factory life. Employers are
sometimes accused of introducing superficial ' welfare Let me give a few illustrations of what I mean.
activitiecl ' into their factories, while they neglect to I n planning a factory, I suggest that we should aim
deal honestly with fundamental questions. But though at some degree of beauty, if that is not too exalted a
no employer should allow this charge to be levelled term to use in this connection. I do not, of Course,
against him with any justice, it would be foolish forget that a factory is built primarily for use and not
entirely to neglect the rehements, until fundamental for show. But so is a cottage, yet a capable architect
conditions were put on an altogether satisfactory can design cottages which are not only moderate in
basis. This cannot be done all a t once. What we cost, and ideally adapted to human needs, but beauti-
have to guard against is the idea that factory reihe- ful. Similarly, in factory construction, it is worth
ments can ever be regarded as in any way a substitute while to take account of the artistic merit of tlie
58 THE HUMAN FACTOR IN BUSINESS GOOD WORKING CONDITIONS 69
wise investment. Apart from any other consideration, falling water and pass through a tile screen, which
it will enable them to attract a better class of workers removes all solid particles. They then pass into ri,
to the factory. wooden tower, eighty feet high, where they are further
I do not think that our experience a t the Cocoa washed, finally emerging as a white harmless vapour.
Works in this connection is worth recounting in any When the whole apparatus is functioning perfectly,
detail. We let it be known that we wish to establish i t is possible to hold a white cambric handkerchief
thoroughly good working conditions, and we deal at the point where the fumes finally emerge without
promptly with any suggestions or complaints which are soiling it. The four Babcock and Wilcox boilers most
made, while the members of the administrative staff recently instalied, when properly fired, give out so
and the welfare officers are always on the look-out little smoke that it is not necessary to adopt the smoke
for any defect which needs remedying. washing process used in connection with the older
Lancashire boilers.
VENTILATION AND SMOKE PREVENTION
We have introduced great improvements in rooms I n rooms where it is not possible t o avoid dust,
which previously were very dusty, by means of such as the starch rooms, where sweets, in liquid form,
appliances of various kinds for the removal of dust. are run into starch moulds, the workers are provided
Again, we are careful to collect steam from Open with special costumes, and a t the end of the day are
boiling Pans by means of fans. allowed ten minutes in the Company's time to change.
Much thought is given to ventilation, and wherever A warm plunge bath is provided, so that they may wash
this is found to be faulty, steps are taken to improve before putting on their own clothes. We have found
it, often by installing a fan or fans. I n some cases this arrangement advantageous from more than
considerable improvement results from the provision one standpoint. Not only is it comfortable and
of fans which merely keep the air in motion without hygienic, but the fact that the men and boys in this
introducing any air from the outside. room no longer go home in dusty clothes adds to their
Some of the largest rooms are ventilated on the self-respect. Formerly they were not welcome neigh-
'Plenum ' system. The air is changed every seven bours in a tram-car ! Now, they are even cleaner than
minutes. I n Mnter it is drawn over heated pipes, the ordinary worker, for they have their bath before
and in summer over cold brine pipes before entering leaving. Considerations of this bind have a distinct
the rooms, and on dusty or foggy days it is also effect, not only on the type of worker drawn to the
filtered by being drawn through a screen made of cocoa- factory, but on the tone of the men who are there.
nut matting, down which water is constantly running.
Mention may here be made of the fact that we
have largely got rid of the smoke nuisance from our
factory chimneys. The flue gases from the seven Another item to which we have given some atten-
Lancashire boilers are forced by a powerful fan into tion is the avoidance of unnecessary noise and vibration
a brick chamber, where they come in contact with in workrooms. There are many processes which are
GOOD WORKING CONDITIONS 61
60 THE HUMAN FACTOR I N BUSINESS
anyone washes. We have not adopted this ideal
necessarily noisy, but both noise and vibration should system, but satisfy ourselves with roller towels fre-
always be regarded as evils, and reduced to a minimum. quently changed.
The evidence of the Industrial Fatiguc Board shows The walls of many of the water-closets are rendered
clearly that these conditions, although the workers may in cement, and then fluted and reeded, rather like
'get used to them,' nevertheless tend to affect their corrugated Paper. When left with a cement finish it
nerves. I am afraid we have still much to accomplish has been tarred, but we have found it preferable to
in this connection. skim the wall over with a thin coat of hard plaster,
which, when dry, is given two coats of paint, and one
of white enamel. This wall can be easily cleaned,
and all scribbling is prevented. The vertical internal
The provision of good cloak-room accommodation angles of all walls are coved, as also the horizontal
is a matter that is often overlooked. From our angles between the floor and walls, and the ceiling
experience, I suggest the following scheme as satis- and walls. This prevents the lodgment of dust.
factory. The cloak-room should be thoroughly well All girls are obliged to provide themselves with
ventilated, preferably with moving air, so that damp overalls of a prescribed pattern. They make arrange-
clothes will dry. Hooks should be placed tdternately, ments among themselves to purchase the material a t
in double rows, one ~ i inches
x above the other, the wholesale prices.
distance between them being nine inches. Woodwork
should be avoided, and the hooks either attached to
metal bars, or bars of ferro-concrete, which we have I once heard it remarked that no one can be a
found cheaper. The bottom row of hooks should be statesman, a philosopher, a poet, or a lover unless he
about five feet from the floor, and seven inches from has had something to eat during the last forty-eight
the floor there should be a shelf of perforated metal, hours. I should like to add that he is not likely to
with a steam pipe underneath, so that wet boots may perform any of these functions as well as he might do,
be dried. Clothes can be hung on each side of the bar, unless his food has been well prepared, and supplied
but in that case the two sides should be separated by under comfortable and restlul conditions. Employers
expanded metal. Of Course, the ideal scheme is a are beginning to appreciate, to a much greater degree,
steel locker for every worker, but that is very costly, how important a part the canteen plays in the economy
and occupies a large amount of space. Wherever of a factory. I think we learned a good many lessons
possible, we keep the cloak-rooms locked, except a t during the war, when so much attention was devoted
starting and stopping times. to the matter.
As regards washing conveniences, in many cases we A canteen should be something more than an eating-
provide hot and cold water in the workrooms, and shop. It should be a place where the fullest possible
where the workers are handling foodstuffs, the rule is advantage can be taken of the dinner hour, for the
that they must wash after any temporary stoppage renewal of the vital energy which has been expended
before beginning work again. I understand that in during the morning's work. Here, once again, let me
some factories a clean towel is provided every time
62 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS
plead for a little imagination on the part of my fellow the outset to decide what proportion of the total cost
employers. If a canteen is to be established, and I should be met out of the gross profits on the food
think i t will soon come to be regarded as a sine qua sold. After a good deal of inquiry as to what has
non where any appreciable number of workers stay been found possible and desirable elsewhere, we
a t the factory for meals, it is worth while to make decided a t the Cocoa Works to charge prices for the
that canteen attractive and comfortable. It benefits food, estimated to Cover its cost and the cost of
a man little to get a cold dinner, sitting by his machine the service, including the salary of the manageress, the
in the shop where he has worked all the morning. cleaning of the rooms, breakages of crockery, and loss
Sometimes, a director, when very rushed, takes a few of Spoons, etc. The Company defrays all other charges
sandwiches for luncheon, and eats them a t his desk- -i.e. provides and maintains the building and all the
but he knows that it does not really pay ! It is much equipment, and pays for electricity, gas, and steam
better to go away from the office, and have a real used for lighting, heating, and cooking.
break during the luncheon interval. This is just as The present canteen was first opened in March 1914,
true of every worker in the factory. Whatever may but in August of that year it was commandeered by
be our special circumstances, whether we are converting the War Office, and troops were billeted in it for two
a small room in a n old building into a canteen, or years. After this, with the full approval of the
erecting an entirely new building, we should always workers, it was offered t o the War Office as a hospital,
try to make it thoroughly comfortable. Of course, for which purpose it was used until 1919, the employees
to secure a good cook is indispensable, but more is meanwhile using temporary accommodation. It is a
needed-the canteen should be a room for the re- large three-storey building. The ground floor is used
creation of strength and energy, and i t should be bright for the Works school and lecture room ; the canteen
and cheerful, since the mind needs refreshment as occupies the two upper floors. On the first floor there
well as the body. A few plants, or even flowers, if is a large room for the girls, which seats 2000 a t
available, make a wonderful difference. Again, i t is tables of eight. The table-tops are of mottled green
worth a little trouble to get hold of some good pictures. and white compressed marble. They are 19 inches
Still more important is it that the tables should be wide and 6 feet long, and the distance from centre to
clean. Pood eaten a t a dirty table is never appetising. centre is 5 feet. The forms, which have backs, can be
At the Same time, with whatever care a meal is pre- approached from either end, so that in no case need a
pared and served, it is difficult t o enjoy it thoroughly girl pass more than one other Person to get to her place.
if one is sitting on a bench with no back ! All tliese I do not think that this arrangement is the best.
facts must be borne in mind. But it would be a If fitting up a canteen now, with our present experience,
great mistake to think that a canteen which fulfilled we should have tables for four persons, provided with
the above conditions must be palatial. What is needed chairs. That method would be more costly, both in
is not lavish expenditure, but forethought, sympathy, equipment and space-it would take up proportion-
and good sense. It is, of course, important that the ately about 25 per cent. more room. But, on the
canteen service should be quick and efficient. whole, it would be preferable.
As t o the fmance of a canteen, it is necessary a t The floors are of ' Pyrofugont '-one of the many
64 THE HUMAN FACTOR I N BUSINESS GOOD WORKING COXDITIONS 65
jointless floor coverings, laid down in a soft state, The canteen is largely used during the evenings.
like concrete. This has proved satisfactory, and being On Saturday afternoons catering is undertaken for
red, it makes the room look more cheerful and fur- sports clubs, and throughout the winter supper is
nished than a plain deal floor. If the question of cost provided each Saturday night for about 200 persons
did not arise, however, the ideal woiild be a polished attending the weekly Works dance. On other days
floor of 3-inch maple boards, or maple blocks. That the various clubs and societies frequently have social
is the best covering for almost all factory floors. It is evenings and dances, and the supper arrangements are
not, however, necessary to put a hard-wearing Aoor in a made by the dining-room staff.
canteen, since i t is used for a very short time each day. Everything sold in the canteen is ' home-made,'
As well as the girls' canteen, there is a canteen including the bread, pastries, and pork-pies. The
for the men, which seats 550. A comparatively small number of employees using it varies with the weather
proportion of men stay a t the works for dinner, as and the time of year, but the daily average is,
so many live near. Many of the girls, on the other roughly, 2000 women and girls, and 450 men and
hand, are the daughters of railwaymen who live a t boys. The majority buy, c6 la carte, just what they
the other end of the town. There are also separate want. Some buy their whole dinner in this way,
rooms for lady clerks and men clerks, and for fore- ordering it the day before ; others buy something to
women. The few foremen who stay to dinner dii~e supplement what they bring from home ; while others
with the men clerks. I n addition there is a restaurant, bring all their food from home, buying only a cup of
where the charges are higher than in the other rooms, tea. Any who wish may have the food they have
and the whole arrangements and service are similar to brought from home heated, a t a charge of i d .
those in a good cafh. It is Open to all who prefer it The prices charged have varied greatly of lste,
to the other accommodation provided, and who are with the constant advances in wages and in the cost
prepared to pay from 1s. 6d. to 2s. for dinner ; and of materials ; an idea of the level of prices may be
i t is used by the directors and higher officials, and gained from a typical day's menu in March 1921.
also by quite a number of rank and file workers.
Anyone is a t liberty to bring friends unconnected CANTEEN
with the Cocoa Works. d.
The restaurant is Open every week-day, except Stuffcd Roast Pork, Apple Sauce, and Potatoes 9
Saturday, from 10 A.M. till 6 P.M. It is largely used Meat Cake, Potatoes, and Haricot Beans . 74
Apricuts arid Custarcl . 3
for teas, both by people who are working late, and by
those who are staying a t the Works for recreation or
Yaked Kice Pudding . . li
C'hippecl Potators . lt
meetings, or going thence to some engagement in the Pork Pie . 3
town. Adjoining it there is a lounge with armchairs, ßutteröd Scone . 1
where smoking is indulged in, and coffee is enjoyed C'akcs (variouh) .
after luncheon. The lounge forms an excellent r1' ea (pcr cup) . .2 $
rendezvous, where persons from different departments Cocoa (per cup) . 2
can meet for conversation. .
Linie Jiiice (pcr glass) . 13
GOOD WORKING CONDITIONS 67
66 THE HUMAN FACTOR IN BUSINESS
committee appointed by the workers. All accounts
RESTAURANT are examined by them, and they are consulted as to
d. the kind of food that should be supplied and as t o
Soup s. d. Vegetables whether, if the cost of materials rises or falls, the
Tomato . . 4 Mashed Potatoes .
Baked Potatoes .
3
4 situation shall be met by increasing or decreasing the
Fish Sprouts . 4 charges, or varging the size of the portions.
Salmon Mayonnaise . 1 2 The question has been considered whether the
Meats Puddings whole management of the canteen could, with advan-
Boiled Beef and Empress Pudding . . 6 tage, be placed in the hands of the workers. This is
Vegetables . . 1 2 Plum Tart and Custard . 6 done in some factories, but experience shows that the
Mutton Hot Pot . 1 0 Meringues and Macddoine plan has not always succeeded ; and probably the best
Harn Croquettes . 0 10 of Fruit . . 6 canteens in the country are those run by the ordinary
Palestine Eggs . 0 8 Baked Rice Pudding . 4 administrative staff, with the assistance of a vigorous
committee of workers.
The sales during 1920 amounted to almost exactly
ten thousand pounds.
During the summer a large number of workers
eat their 4nners in the garden. They usuaUy come PAELT I1
to the canteen for a cup of tea and take this out with
them. The canteen stands in an old orchard, and both MEDICALSERVICE
there and in the ' rose garden ' just across the road, ALTHOUGH the provision of a medical service in
seats are provided, though when the weather is fine factories is becoming more frequent, it does not exist
they seem to be leas attractive than the grass. Roof in the majority of even the larger ones. Thus, we may
gardens lead out of the men's canteen and the rrs- regsrd such a development of the normal factory
taurant, and are much frequented. equipment as being more or less of an experiment,
Pree meals are provided in the canteen or restaurant and it may be worth while to give some account of
for those clerks and administrative officials who are the medical facilities provided a t the Cocoa Works,
not paid for overtime and are working late. On tlie and an estimate of their value from the standpoint of
few occasions, usually during the Christmas rush, when the workers and also from that of the management.
the girls work after six o'clock, each is given half a The first step in the direction of providing medical
pint of tea free. Pree milk during the morning is service was taken in 1904, when arrangements were
given t o a few delieate gids, on the doctor's orders. made for a doctor to attend a t the Works daily, who
The cookiiig in the kitchen is done by steam and could be consulted, without charge, by anyone wishing
gas. We have more than once gone carefully into the to do so.
questioti of cooking by electricity, but have ruled that After a short time he came to the present writer
method out on account of its cost. and said, 'If you can't afford to provide both a dentist
The whole of the canteen arrangements are under tbe and a doctor, I advise you to get rid of me and provide
coritrol of a manageress, who is assisted by an advisory
68 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS 69
a dentist, for so much of the illness is due to faulty sets are charged at the rate of 4s. 6d. for the first tooth
teeth that really I think his services even more neces- and 3s. for each additional tooth. I n the optical
sary than mine.' This condition was not due to work- department spectacles and eyeglasses are charged for
ing in a chocolate factory, for i t was just as marked a t wholesale prices. The price of spectacles, rimless
among new-comers as among the older employees. and in steel frames, varies from 12s. 6d. to £1 15s.,
So, later in 1904, a whole-time dentist was appointed. according to the formula for the glasses. The most
I n 1919 an optician was added to the staff, which now usual price is about £1.
consists of the following : The total net cost of the medical services provided
(1) Adoctor, who attends daily from 8.30 to 12.30, a t the Works is approximately two thousand pounds
or longer if necessary. He does not visit the homes of per annum, including overhead charges. Before
employees. asking whether this expenditure can be justified, a
(2) A trained nurse, who attends to all dressings few words may be said about the way in which the
and who visits employees in their homes in the after- medical department is administered, and the extent
noon. to which the employees make use of it.
A whole-time dentist. From the standpoint of factory administration the
Three whole-time dental mechanics. medical department forms part of the employment
( 5 ) An optician, who attends for two whole days department. Every employee of the Company has
weekiy. the right to make full use of the facilities provided.
(6) An oculist with whom we have arranged to Anyone wishing to do so, gets a permit slip from the
treat, free of charge to the employee, any cases sent responsible official in his department. This is sent to
to him by the doctor or optician. The latter refers the clerk in the medical department, who arranges
to the oculist all cases in which the eyes are diseased, the times for appointments. No deduction is made
or need medical treatment, and which cannot be dealt from the wages of workers for the time spent in visiting
with simply by the provision of siiitable glasses. the department, but those employed on piece-work lose
The services of doctor, dentist, optician, and oculist the wage they would have earned. Care is taken to
are free to all employees. The usual charge for a prevent anyone from having to wait long, after being
bottle of medicine is a shilling, but more is charged summoned from work, before they receive attention.
for a medicine containing exceptionally costly drugs. A nurse is present in the doctor's room when women
All medicines are made up by a chemist in the town. and girls are attending. She deals with dressings and
In the dental department sixpence is charged for a keeps all records. A man who was trained in the
local anssthetic, and for gas anssthetics up to five Royal Army Medical Corps performs similar duties for
Shillings, according to the length of the operation ; men.
and a charge sufficient to Cover the cost of materials
is made for gold stoppings. Artificiai teeth are
charged for at a price which Covers the cost of materials
and pays for the time of the dental mechanic. A All applicants for work are examined before
complete upper and lower set costs £4, aud partial entrance, or if for any reason this is not practicable,
70 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS 71
they must pass the doctor within a fortnight of their if not impossible, to accept responsihility for chronic
appointment. The only exception to this rule is in invalids, as their number would probably be much
the building department, where work is of a much greater than at present, and much stricter regulations
more casual nature. would be necessary in the case of those u~ho,though
It may be asked whether it is reasonable for an not completely unfit for work, suffer from ill-health
employer to insist on the medical examination of all and are frequently absent in consequence.
applicants for work before appointment. I£ every It seems to me, therefore, that there is an over-
employer adopted such a Course, what would happen whelming case for the medical examination of new
to those whom the doctors reject 2 It is certainly entrants, always assuming it is carried out reason-
worth while to consider these points. The question ably. But I think the workers may rightly ask that
whether it is reasonable to insist on examination those who pass the test and subsequently break down
seems to me to depend on the character of the employ- shall be treated more liberallg by the Company than
ment, and the policy adopted towards those who aro they would be were no medical test a t entry required.
ill. I n discussing the matter with employees a t the As regards the second question, as to what would
happen to the medically unfit if all the employers
Cocoa Works, I have usually put, tho case in this
way. First, we are engaged in the manufacture of insisted on medical examination before engagement,
foodstuffs, and therefore it is imperative to take all I do not think this contingency need alarm us. There
possible precautions. Secondly, there are 7000 people, are many different kinds of work, and because a man
is unfit for one, it does not necessarily follow that he
many of them boys and girls, working in a compara-
tively small area and mixing freely. It is only fair is unfit for another. If, however, doctors in one
employment after another rejected him as unfit for
to those employed to prevent the introduction of work, surely it would be time to deal with him by
workers who might spread infection. Thirdly, it is special provision, instead of letting him undertake,
an advantage to the workers themselves that they for a short time, work a t which he could not continue.
should be examined before starting ~ o r k . A man is
The present haphazard policy is very clumsy, and a
not necessarily rejected because he is suffering from great deal of illness might be avoided by tlie adoption
some disease. He may be passed on conditions, e.g.
as suitable for light work, or work out of doors. It of wiser methods.
would be much in a worker's interest, if, for example,
he had a weak heart, to be put on light work, when
he might easily be put on heavy work if no medical It is not easy accurately to assess the value of
examination were made. Lastly, a medical examina-
the work undertaken by the medical department.
tion becomes almost a necessity if the Company is That the facilities offered are appreciated by the
going to accept any kind of responsibility for thosü workers is proved by the extent to whicli they take
who break down while in their service.
On p. 41 et seq. some aceount is given of the Com- advantage of them. I n addition to the examination
pany's Invalidity Fund. If all and sundry were of new entrants, the doctor was consulted 16,511
times in the year ending December 31, 1920, while
engaged, with no medical test, it would be difficult,
GOOD WORKING CONDITIONS
THE HUMAN FACTOR IN BUSINESS
Miscellaneous
during the year 1920 there were 5373 attendances Lumbago 5 Exophthalmic Gout
a t the dental surgery. During the six months ending 1
Sciatica 1 Goitre 1 Balanitis 1
December 1920, 955 visits were paid to the optician Gall-stones 1 Pyorrhoea 2 Synovitis 10
Malaria 1 Rheumatism 27 Bursitis 5
by 241 different persons, and 404 fittings were supplied. Varicose Vcins 1 llheumatic Hcart 1 Displaced Certilege 2
The following is a n analysis of the new cases Goitre 3 Parotitis 1 Ganglion 7
treated by the doctor during the half-year April to Furunculosis 1 Dcbility 1 Hernia 2
Nephritis 1 Rpistaxis 3 Flat foot 1
September 1920 : Dental Anssthetics 40
Septic wounds
Cuts and injuries .. ... .. ... ... 297
289 Accidents happening when the doctor is absent
Sprains and strains
Scalds and bums . .. .. .. .. 1455778
Abscesses, boils, etc.
, are treated in our arnbulance station, which is in Charge
of the chief officer of the fire brigade and his assistants,
Wartsand corns . . . . . 31 who are qualified arnbulance men. The following is a
Contagious and infectious cases . . 67 Summary of accidents treated a t this station during
the three months ending December 31, 1920 :
Septic wounds . .
-
12 Tonsilitis 26 Cuts . . . .
Coryza 17 Laryngitis Lacerated wounds . .
Bronchitis 4 Pleurisy 3 Nasal Ceterrh 2 Cmshings . . .
Pharyngitis 3 Ozoena 1 Fractures . . .
Biirns . . . .
Of Circt~latorySystem
3 Scalds .
Sprains .
. .
. .
. .
Raynaud's Disease 1 Chlorosis 2 Ansmia
Of the Skin
Bruises . . . .
Foreign bodies in the eye
7
Eczema 86 Urticaria 3 Seborrhcea 1
Aone 3 Psoriasis 1 Erythema
Oj the Nervous System
3
Females.
Males .
.. .. .. .. .
. .
. 23
560
Headache 8 Nervous Debility 3 Chorea 4
Neuralgia 25 Epilepsy 1 Insomnia
Oj Digestive System All but twenty-three of the cases treated were men,
Hyperacidity 3 D~spepsia 4 Ulcerative Stomat- owing to the fact that nearly all the girls are on hand-
itis 1
work, and are not so liable to accidents. The men's
Colio 5 Vomiting 4 Gastric Catarrh 16 work is comparatively free from the risk inherent in
Of the Eye smelting or heavy engineering work.
Conjunctivitis 21 Entropicn 1 The doctor periodically examines the hands of
Scleritis 1 Iritis 3 those engaged in handling foodstuffs, so as to ensure
Oj the Ear that no one siiffering from eczema or any other skin
Cerumen 22 Aura1 Catarrh 11 disease is engaged in such work. H e is also freely
Otorrhea 10 Otitis Media 5
THE HUMAN FACTOR IN BUSINESS
GOOD WORKING CONDITIONS
74
consulted on all matters concerning the health condi-
tions throughout the Works, and the suitability of Perhaps a better idea of the value of the medical
different kinds of employment, either for individuals, service than can be gained from general statements
or for classes of individuals-e.g. whether any given may be gathered from a perusal of the results obtained
employment is suitable for women or young persons.
in a number of typical cases. These have been
Any worker with a tendency to phthisis is examined supplied by some of the welfare supervisors, and may
periodically until his or her condition is declared t o be taken as representing what happens throughout the
be normal, and all necessary steps are taken to eradi- factory.
cate or, a t any rate, t o keep in check incipient phthisis.
Sometimes employees threatened with it are put t o MEDICALCASES
light work, or work out of doors ; sometimes they are (1) A girl who frequently had half-days off.
She was
sent away for a change of air-a method which may found to be aniemic, and suffering from headaches
be adopted in the case of any employee who is run and indigestion. Was persuaded to see the
down. There is no doubt that, in not a few cases, doctor, and now describes herself as 'right
champion,' which statement is quite borne out by
the treatment by a doctor of those who show signs her regular time-keeping, and the improvement
of incipient disease has been of the greatest benefit. in her wages, which have risen by over 2s.
Sometimes, the disease has been completely checked, (2) Was sickly and aniemic, with bad septic fingers,
andin other cases its Progress has been greatly retarded.
The Company has no Convalescent Home of its and other signs of debility. Treated by the
Works doctor, and sent for a fortnight's change,
own, but a certain sum is alloc,ated each year t o a she showed greatly improved health and capacity
committee composed of four members elected by the for work. 1s now causing no anxiety, and earn-
Central Council, and four officers of the employment ing her average wage, which formerly she failed
department, and this committee lays down the rules to do.
regulating its expenditure. The recommendations (3) A girl suffering from aniemia and general debility
come from the girls' supervisors, and from overlookers, was treated medically, and given a holiday and
or from the workers themselves. The sanction of the change of air. Her average piece wage rose by
firm's medical officer has t o be obtained before any about 8s. as a result of the treatment, and her
employee can be sent away, and, after recommendation, health is much improved.
every girl's case is considered by the women's section, (4) Complaints were received from the overlooker and
and every man's or boy's case by the men's section, school staff that this girl was becoming lacka-
of tlle above committee, who decide what financial daisical, and shirking work. She looked ill, so was
assistance shall be given. taken to the Works doctor, who, on examining
These arrangements m r y acc,orcling t o the circum- her, found slight dilatation of the heart. A rest
stances, the usual plan being t o ask for some contri- from gymnastic exercises, and the avoidance of
any strain, were insisted On, with the result that
bution-generally the amount of the National Health the girl's general health and application rapidly
Insurance benefit. The expenditure under this head improved.
amounts t o about £350 a year.
7. - THE HUMAN FACTOR IN BUSINESS GOOD WORKING CONDITIONS 77
(5) Consumptive tendencies. Periodic advice from (2) Was often ill, and subject t o headaches, owing t o
the doctor, ehange of work, and an arrangement eye-strain, but has found glasses a great relief,
for her to work by an Open window, have re- and works the better for them. Headaches have
sulted in a marked improvement in work, wages, disappeared.
and time-keeping. (3) Suffered from astigmatism, and had very frequent
(6) Age fifteen. Suffered with constant headaches, headaches, got glasses, and can now work a whole
earache, dullness, and lack of energy. After one day without the slightest trace of headache.
month's treatment under the doctor she com- (4) L o o k i ~ ga t work for any length of time tired her,
menced to work normally, does not suffer with and she wanted to rest her eyes frequently. She
headache or earache, and is able t o produce the now works comfortably.
same output as otber girls engaged on similar work. (5) Suffered for some years from aching eyes and head.
(7) Age twenty-two. Has been a consumptive suspect She was supplied with glasses, and since then
for some years. She is under constant observation has bern a great deal better; her output has
of the doctor, and by being watched regularly increased, and the standard of her work is higher
the slightest inclination t o lapse into iIl-health than previously.
has been checked, and shc has been able t o (6) Was a worker in the labelling room. She com-
do her work, with almost average health and plained of constant headaches, and of acute giddi-
strength, and t o keep good time. ness, caused, as she thought, by the colour of
(8) Age fifteen. Came to the Cocoa X'orks as a delicate, the labels. Her eyes were tested by the optician,
thin, an~mic-lookingchild. She was kept under and since being supplied with glasses she has had
observation and treated by the Works doctor no further trouble.
for six months, during which time she was not (7) This man suffered a great deal from dizziness and
absent from work for one hour, and a t the end pains in the head, which caused him to be ahsent
of the six months she showed herself t o be an from work for lengthy periods. Pinally he was
average healthy child and able to produce a recomniended t o wear glasses and was fitted by
normal output . the optician. As a result he can attend to his
(9) Suffered from rheumatism, and pains in his knees, work in an efficient manner, thereby increasing
which handicapped him in his work. AS he his production.
was able t o see the Works doctor on the spot, (8) Eyesight failing. TTisited optician and was sup-
without losing a lot of time, he went t o him, and plied with glasses. These have proved to be of
is now all right, and able to do his work without immense use t o him in carrying on his work
inconvenience. as a joiner, and there is no doubt that his
(10) Septic foot. Received daily treatment, and was efficiency has greatly increased.
able t o continue ordinary work.
OPTICAL
CASES (1) Had pyorrhcea, and was often off work, as she
(1) Worked with difficulty, owing to frequent headaches. suffered so much from headaches and indigestion.
Now she is provided with glasses, and her wages -411 her teeth were extracted, she is now in good
are regularlf up t o the average. health, and rarely misses a day.
GOOD WORKING CONDITIONS 79
78 THE HUMAN FACTOR I N BUSINESS
perfect. She was persuaded to see the Works
(2) All her teeth were removed, as they were decayed, doctor, who sent her to the Works dentist. She
and her mouth was in a very bad state. She was had most of her teeth removed and the others
constantly ailing, but now she is looking and treated. Since receiving the artificial teeth,
feeling better and doing much better work. she has not lost any time and her work has
(3) Had such a bad abscess a t the roots of her teeth regained its former standard.
that she got septic gums and was off work for A perusal of the above cases will show, I think,
over five weeks. After the teeth were extracted
t h a t t h e expenditure of time a n d money involved i n
her health improved and there has been no
further broken time. the organisation of a medical department has yielded
satisfactory results. There is n o doubt that, apart
(4) Suffered from constant headaches, dizziness, and
indigestion and was a poor time-keeper. After from the cure of specific ailments, and their avoidance,
her teeth were put in order, her health improved, t h e general level of health has been raised, a n d many
and also her time-keeping. workers who constantly felt ' below par ' are now
(5) Suffered from bilious attacks, indigestion, and a ' fit ' a n d vigorous.
more or less septic mouth : was dentally treated I n terms of human happiness, t h e benefits thus
and provided with a set of artificial teeth. Now derived are considerable, a n d the improved health has
describes herself as quite a different Person, and the reflected itself i n greater efficiency and increased
symptoms before complained of have disappeared. output. It is impossible t o measure the precise extent
(6) Age eighteen. For six months this girl had t o which this has been the case, but having regard t o
slackened very much in regard to her time- t h e comparatively small sum involved i n the organisa-
keeping. Whenever spolien to, she stated that tion of a medical department, there can be no doubt
she was suffering from toothache. She was not
able to earn the standard wage for a girl of her t h a t the expenditure has fully justified itself. And
clearly, if this is true of a factory where processes
age. She was persuaded to consult the Works and working conditions as a whole are normally healthy,
dentist, and after he had treated her, her time- it would be still truer i n factories where conditions are
keeping improved, and her output was equal to
that of others. less favourable.
(7) Age seventeen. For some months she looked It m a y be helpful, if, in conclusion, I appendthe
ammic and ill-fed, and generally unhealthy. opinions of two administrative officers a s t o t h e value
Her output was far below the average. She was of t h e medical work carried on here. These m a y be
sent to the Works dentist, who extracted all her taken a s typical of other reports received.
decayed teeth. She is now a great deal better After citing a number of cases treated b y t h e
in health, and able to keep good time, and her medical department, one official reports :
output has increased considerably.
Our medical department is valuable from the
(8) Held a position of responsibility in her department employer's point of view :
because she was a moman of tact, energy, and
common sense. It was recently noticed that (1) It has advised administrative officers when the
she was losing sonie of her power, that her health effects of certain work are harmful to any special
was not so good, and her time-keeping not so Organ, or to the general healtli of the workers.
80 THE HUMAN FACTOR IN BUSINESS
GOOD WORKDTG CONDITIONS 81
(2) It has prevented-
(2) A girl Comes with a septic finger. Left t o herself,
(a) Much loss of time. she would probably treat it with bread poultices,
(b) Dislocation of work. or nothing, and might be off for weeks. With a
(C) Decreased output. Works doctor, she goes to him in the initial
(d) Conlpensation expenses. Stages, and while the finger is treated is still a t
work-possibly not a t her own job, but something
Prom the worker's point of view : equally usefui.
(3) The value of a Works medical service in case of
1. The medical department gives the employees a sense
of security, and promotes a feeling of good-will accident need not be mentioned. It is the most
towards the Management. obvious of its advantages, second only to the
value of examination for fitness on entry.
2. Saves loss of time and wages. (4) The case of the girl who dislikes her work and finds
3. Enables workers to produce more. i t 'bad for her health,' or the girl who really is
on the wrong job, can always be referred to the
4. Enables them to enjoy their work, instead of fmding Works doctor. He is a potent ally when an
it a drudgery.
overlooker thinks the girl is simply lazy, or
I n a word, the establishment of a medical department ' trying it on,' to get a change of work which i t
is not only humane, i t is essential to production, i t is may not be convenient to give.
beneficial to workers and profitable to employers. (5) Briefly, to have a doctor on the spot saves the time
of the patient and of the firm, nips dlness in the
A girls' supervisor adds t h e following general bud, slowly but surely teaches the workers a few
elemental rules for the care of their constitutions,
remarks t o a report on a number of cases in her and provides skilled medical advice in tho hundred
department : and one cases where this is required. What has
The provision of a medical staff for a factory is now been said of the doctor applies in a lesser degree
to the dentist and optician-they are a trinity
considered an essential of welfare work, and there is no working in unity, and complementary to one
doubt that, from the point of view of increased efficiericy, another.
it pays. The services of a doctor and a dentist are both
required, as the work of one is so often supplementary to
that of the other : if they can in addition call upon an
optician to assist them, so inuch the better. PART I11
(1) A girl is off colour, keeps bad tinie, earns low tvages,
and takes no interest rn lirr ~vorli,aiid no obvioi~s
reason can be found for all this. But if she can ALTHOUGH i t is important t o surround worlrers with
bc peruuaded to bee a doctor, i t will nearly ulu nys good material conditions, it is even more important
prove that her health is a t fault. She may not t o create a n d maintain what perhaps I can best
havc the encrgy to sce a panel cloctor, but slie can describe as a 'personal environment ' which will
hardly refuse to see a doctor n ho 1s on tlie sput. encourage each individual t o be a n d t o do his best.
82 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS
The ideal a t which we should aim is that everyone work with two or three persons, but can i t be carried
should work with as much enjoyment, energy, and out in a large factory where hundreds or thousands
intelligence as if he were working on his own account. are employed ?
This, of Course, is a very high ideal, which probably Yes, it can, but only as the result of a considered
has never been realised, though I have occasionally policy supported by a n adequate organisation. The
visited factories which very nearly attained it. I n managing director, or Worbs manager, in a largefactory,
seeking to create such a spirit, the first thing is for cannot give the necessary detailed attention t o this
those in positions of responsibility to recognise that side of the business any more than he can personally
the workers are something more than profit-producing attend to each machine.
instruments. They are not simply a means to an
ulterior end. On the conirary, their personal welfare
is a n important end in itself, though not the only one
for which the factory exists. Much, probably most,
of the unrest from which industry has suffered for so It is because employers, albeit somewhat slowly,
long, and is suffering so acutely a t present, is due t o are recognising this truth that a properly organised
the failure on the part of employers to recognise this and carefully staffed ' personnel ' or ' employment '
fact. Largely through lack of clear and independent department is coming t o be regarded as essential in a
thinking, they have been inclined to look upon those well-equipped modern factory. The head of this de-
worliing in their factories in the mass, and to speak partment must be a man possessing true, intelligent
of them as ' hands,' or generically as ' Labour.' We sympathy with others. He must have qualities which
have not had imagination enough mentally t o sepa- will make him approachable by all, and he must be
rate the mass into its constituent units. We have trusted by all, workers and management alike. More-
failed t o realise that five hundred ' hands ' are really over, his position must be one of real authority.
five hundred individuals, each with a personality as He will be concerned solely with the human side
sensitive t o its environment as yours or mine. of business administration, and will have no direct
Now, it is just as fatal a n error to treat workers responsibility for anything else. He might perhaps
in the mass as it would be t o treat machinery in the be described as the human ' engineer.' The chief
mass-a thing no one would dream of doing. Quite mechanical engineer 1s responsible for selecting
apart from the human aspect of the question, and for machines suitable for tlie work to be done, and for
the moment considering the workers solely as instru- keeping tliem running smoothly, and avoiding over-
ments of production, such a n impersonal way of strain or breakdown ; and the employment maiiager
regarding them is a serious flaw in our method of will perform similar functions with regard to the
business administration. Every worker should be human instruments of production throughout the
looked upon as a n individual, and encouraged t o con- works. His profession is not a new one in this country,
tribute his individual quota, which no one else can though such officials are far more usual in America
contribute, t o the success of the firm. than they are with us. There is still a suspicion on
This is the policy we naturally adopt when we the part of many British employers that the good
84 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS
old rough and ready methods of dealing with Labour problems of finance, business policy, production, and
are the best, and that all I have been writing about buying and selling, will have quite enough t o do if
is mere sentimental nonsense ! they fulfil those duties efficiently. They cannot be
However, an increasing number of large employers expected in addition t o assume responsibility for
are installing employment departments, and are the workers, whether considered as human beings or
studying the best methods of organising them. I do instruments of production. Broadly then, this function
not for a moment imagine that the organisation of devolves upon the employment manager.
our employment department a t the Cocoa Works is
perfect, or eveii particularly good, biit, in its present
form, it is the outcome of many years of practical
oxperience, and it has often been modified, both as His duties begin with the engagement of the
the result of fuller knowledge on our own part and workers. Everyone is engaged through the employ-
because we have profited by the example of other ment department, except Clerks, who are engaged by
&ms. A description of the methods we follow may, the clerical staff officer, and travellers and technical
therefore, be of some interest . men (e.g. chemists, engineers, etc.). Originally, every
As we employ large numbers of women and girls, foreman or departmental manager engaged his own
as well as men and boys, we divide our employment workers, but this custom was discarded many years
department into two parts, each with its own staff ago. It is the duty of the employment manager t o
and under a separate head. The whole department keep a record of all applicants for employment, and
is supervised by a director, who is responsible to the to keep in touch with all likely sources of supply.
Board with regard to all wage and labour questions. As the supply of adult male labour always exceeds
This is an important point, for employment and wage the demand, great care is taken to select the best men.
questions are so closely related to each other that it The method followed is for the manager of a depart-
is essential that one person shall be ultimately respon- ment requiring workers to advise the employment
sible for both. As the organisation and activities of department of any vacancy, on a form provided for
the men's and women's sections of the employment the purpose, stating the character of the work and the
department vary in certain respects, I shall, for the wage offered. The first duty of the employment
sake of clearness, first describe the organisation of manager is to advertise the post-on the Works notice-
the men's department, and then show in what parti- board, so that any present employee may apply for
culars that of the women's department differs from it. it. If a suitable candidate is then forthcoming, the
The employment manager deals with many matters employment manager negotiates a transfer with the
besides those directly concerned with the employment departmental managers concerned, and proceeds to
of labour. I n some factories he would be described fill the new vacancy thus caused in a similar way.
as the chief welfare officer. The main reason for the It is, however, as a rule, only when the better paid
institution of the department is that those responsible posts become vacant that transfer from within the
for the running of the whole business, or some large Works is sought. If such transfer does not take place,
section of it, and who are necessarily concerned with the employment manager selects the most suitable
86 THE RUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS
outside applicant from his list, or failing this, he employing a man is to introduce the wrong spirit
applies to the local employment exchange. If that from the start. We are, on the contrary, making a
method also fails, he advertises the vacancy in the contract which appears to be mutually advantageous.
Press. Finally, when a candidate has been selected, When a boy under eighteen years is engaged, he
and the necessary inquiries into his character have starts work on the first day at 9 o'clock instead of
proved satisfactory, an interview is arranged between 7.30. On his arrival, he is met at the time office
him and the departmental manager concerned. If the by a member of the employment department, taken
latter approves of him, he is engaged by the employ- to his own department, and introduced to the foreman,
ment manager, subject to his passing the doctor. who is probably better able to spare a few moments
The employment manager also fills up his record than he would have been a t the beginning of the
card, and gives the necessary instructions to the time- day's work. If the boy has no friends in the depart-
keeper for his admission. ment, he is also introduced to one or two lads of about
The engagement of employees, especially when they his own age, who are asked to ' show him the ropes '
are young, should nevor be a slipshod or hurried and look after him until he is at home in the place.
performance. The interview on engagement is a I n addition to engaging new employees, the em-
valuable means of giving the new worker, a t the very ployment manager is responsible for all departmental
beginning, the right bind of personal environment, transfers. Any departmental manager whose work is
and the right outlook. It makes a great difference growing slack advises the employment department that
whether a man or bov is hurriedly ' put on ' by a he will soon have to dispense, either temporarily or
foreman who is principally concerned with production, permanently, with a certain number of workers. The
or engaged by a man chosen for his sympathetic employment manager then seeks to place those
insight into character, and connected solely with the workers elsewhere in the factory. It is important to
personal side of the business administration. The give as long a notice as possible of a prospective
interview should take place in private, in a suitably surplus of workers in a department, so as to avoid
furnished office ; and if the applicants have to wait, dismissals. At the weekly conference of directors and
they should do so in a comfortable room. I n the departmental managers, a question as to the probable
matter of waiting-rooms and office accommodation, prospective demands for labour is invariably asked,
our employment department falls far short of what so that the employment manager, who is always
is desirable, being housed a t the present time in present, may have early notice.
tamporary bwldings.
The applicant should learn something of the spirjt
in which it is sought to conduct the factory-a spirit
of mutual goodwill, in which both the management Should a foreman wish to dismiss a man for any
arid the workers give of their best. It is not a matter cause, he first Sees the departmental manager who,
of simply ' Setting on an extra hand,' but of seeking if he agrees, fills in a form stating why the dismissal
the CO-operationof another colleague. To convey the is recommended. This is sent to the employment
idss that we are bestowing a favour when we are manager, who investigates the case. If he considers
GOOD WORKING CONDITIONS 89
88 THE HUMAN FACTOR IN BUSINESS
finding or tale-bearing, i t is important to provide
that the dismissal is justified, he countersigns the means for the easy ventilation of a sense of injury ;
dismissal form, and himself dismisses the man. In
and one of our safety-valves a t the Cocoa M70rks is
some departments the responsible director Sees all the presence in the factory of the employment manager
dismissal forms before the man is dismissed ; in and the members of his staff. They act as inter-
others the matter is finally settled by the depart- mediaries between the workers and the management.
mental manager and the employment manager, and In this connection reference may be made to a
the director only intervenes if these two disagree. step which we have recently taken, in order to facilitate
The fact that no dismissal can take place without the ventilation of grievances, and also to convince the
the authority of the departmental manager and the workers that the policy of the employment depart-
employment manager not only ensures CO-ordination ment aims a t being thoroughly impartial, as between
throughout the Works in this matter, but obviates
all risk of dismissal for inadequate reasons. Some- the workers and the management. We invited the
president of the local branch of the General Workers'
times, for instance, a man's failure to make good in Trade Union, in which the majority of the employees
one department may be due not to any intrinsic
were enrolled, to work in conjunction with the employ-
fault, but to the fact that he is a 'Square peg in a
round hole,' a situation which can be remedied by ment department staff. He was already employed a t
the factory, and took an active part in trade union
transfer to another department.
Foremen and departmental managers who have the work. Obviously, this step would have failed if the
workers lost confidence in him, or suspected that he
power of dismissal in their own hands may imagine
that the arrangement outlined above would seriously had been ' bought ' ; and therefore, before making the
undermine their authority. Save in the case of that appointment, we consulted the union, explaining that
rapidly disappearing class of foremen who can only we wanted someone whom the men trusted, and who
rule by fear, this is not the case. If a foreman has could put their side of any debatable case. After
good reason for demanding a man's dismissal, he will discussion, the Trade Union and the Central Council
always be able to carry his point, and in the absence at the Works approved our proposal. This experiment
of such good reason he has no right to dismiss a man. has been a complete success. Employees with a
grievance will go more freely to a member of their
own union than to a foreman or manager, or even
to some other member of the employment department
Another important function of the employment staff. If the grievance is imaginary they are more
manager is the investigation of complaints. No matter easily convinced of their mistake by one of them-
how well managed a factory may be, there will always selves than they would be by one of the management :
arise a number of personal grievances, which should if it is real it is much better to attend to it a t once than
be carefully examined. ' Rough justice ' is not enough. to allow it to fester, and probably spread. Grievances
Every persoi~algrievance should be promptly investi- grow by keeping with surprising rapidity. The mem-
gated, and explained away if imaginary, or removed bers of the management also find the advaritage of
if real. Without in any way encouraging mere fault- having a representative of Labour in the employment
90 THE HUMAN FA(;VTOR IN BUSINESS GOOD WORKING CONDITIONS 91
department, and eequently consult him when they the monotony of her subsequent work by explaining
want to know how the workers are likely to regard just what part it plays in the whole process of
any proposed policy. manufacture ; and, thirdly, we want her to start her
industrial career in the right spirit.
WOMEN'S EMPLOYMENT DEPARTMENT The school Opens with an introductory talk by one
of the directors on Works ideals. Other addresses
are given during the week by various Works officials,
With regard to the women's side of the employment on such subjects as the systems of wage payment in
department, there are only two matters in which the use in the factory, factory hygiene, the educational
organisation differs from that of the men's side. and recreational facilities available, both in the factory
Most of the female employees begin work at the and in the city, ' Who's Who in the Works,' ' How a
age of fourteen or fifteen. Until recently, children big factory is organised,' Trade Unionism, etc.
used to leave school at any time of the year, as soon Lantern lectures are given on the raw products
as they were fourteen yeais old. But in 1920 regu- used in the Cocoa Worb-cocoa, gum, Sugar, timber,
lations were made under which they stayed at school -arid slides are shown picturing the firm's estates in
till the end of the term in which they reached the the West Indies, and the journey of the goods to the
leaving age. Now, therefore, girls and boys straight Works. Part of each day is spent in visiting different
from school apply for work at the close of each term, departments, and care is taken to explain the relation of
and consequently we have three large batches of new- werk which falls to girls to the other processes of manu-
comers. This has made it possible for us to copy a f acture. Between lectures, the children play organised
scheme we saw in operation in Messrs. Robinsons' games, which soon banish all feelings of shyness, and
Works in Chesterfield, and to give the girls a period acquaint them with one another. The final address
in a preparatory school before introducing them to is given by a director, and the week winds up with
the workrooms. Those selected for employment are a tea-party.
told to come on a certain day, and attend the pre- Each day is divided as follows :
paratory school for a week.
The object of this plan is threefold. First, we .. .. Roll Call.
recognise that it is a severe ordeal for a girl of fourteen, .. .. Lecture.
straight from school, to enter a great factory, among .. .. Lunch.
seven thousand strangers, and we want to ease the
.. .. Visit to Factory.
transition from school to industry. After a week in
.. .. Dinner.
.. .. Roll Call.
the Works school, she knows fifty or sixty girls of .. . Lecture.
her own age, and she also knows something of what .. .. Games.
a factory is like. She has been introduced to factory .. .. Lantern Lecture.
life by sympathetic and kindly instructors, instead of
being thrown into it and left to sink or swim. On the last day of the school, the children write
Secondly, we hope in some small measure to lessen essays on the doings of the week, from which it is
92 THE HUMAN FACTOR IN BUSINESS GOOD WORKING CONDITIONS 93
evident that they have thoroughly enjoyed it, and finitely attached t o particular departments of the
gained a great deal of valuable information. The Works. These officers are called ' girls' supervisors,'
overlookers report that when the children enter the and their duty may be briefly described as the super-
factory they are more confident than new girls who vision of all women and girls in the department,
have had no week of preparation, and settle down t o from what may be called the ' welfare ' standpoint.
work more quickly. Several of their parents have Our experience is that, speaking generally, female
expressed appreciation of the school, and it has been employees require more careful supervision than men.
generally supported by the employees, while its This is partly because many of them are physically
initiation was originally approved by the Central weaker, and partly because their age, on the average,
Works Council. is much lower than that of the men, and they are less
Before the school started, it was feared that a able t o look after their own interests. Again, they are
tour round the factory might lead t o dissatisfaction more sensitive and emotional, and hence it is impera-
among girls who were going t o work in one of tlie less tive t o avoid friction, and t o dispel even the shadow
attractive departments. But in practice this difficulty of a grievance. The exact duties of girls' supervisors
has not arisen, since those in charge of the school can are as follows :
almays point out, in even an unpopular department, 1. Wages.-Although the supervisor has no power to
advantages which may escape the eye of a casual fix wages, she is responsible for seeing that each girl in her
observer. department earns the wage fixed as the standard for her
Another advantage of the scheme is that the girls age. When a wage is unduly low, she must find out tho
get t o know people in other departments, and a general reasons for this, and try to remove them. Sometimes it
feeling of esprit de Corps is fostered. The factory tends is only necessary to warn the girl against negligence,
t o become Our Factory ' in their minds, instead of and encourage her to do better. But sometimes another
' The Pactory.' remedy is needed besides increased eff ort on the worker's
The girls' school is still in its first stages, and we part, and then it is the supervisor's duty to acquaint the
feel that there is room for further development. We overlooker or manager with the fact. The work may be
have not yet organised a similar school for boys, since unsuitable, in which case she will recommend trying the
girl elsewhere, but if no remedy can be found, and the girl
their number is much smaller, and very few are engaged cannot be encouraged to do better, the only Course Open
a t one time. But boys need schools just as much as to the supervisor is to recommend her dismissal. If the
girls, and I hope it may soon be possible t o arrange Wages Section wish to draw the attention of the depart-
one for them. ment to the wages of any individual girl on piece-work, as
distinct from the wages of a group, they communicate with
the girls' supervisor. It follows that the girls' supervisor
has full access to all wage books connected with the girls of
The other particular in which the organisation of the department.
the women's side of the employment department 2. Time-keeping.-Those responsible for checking in
differs from that of the men's side is that for certain the girls will, each morning and afternoon, report to the
functions it ia decentralised, and its officers are de- supervisor any girls who are absent. The si~pervisor
94 THE HUMAN FACTOR IN BUSINESS GOOD WORKING CONDITIONS 95
ascertains from the overlookers' lists whether they are out for girls of promise, who should be especially encouraged
absent with leave ; if not, it is her duty to ascertain the to follow up their education.
causes of absence, and to take any action which she may 9. Illness at Work.-Supervisors are responsible for
consider necessary, with a view to reducing the loss of time the management of the rest-rooms. If an overlooker
without leave throughout the department. sends a girl to a rest-room, she should a t the Same time
advise the supervisor ; and all accidents to girls should be
3. Transfers.-The supervisor has not the power to reported to her a t once.
decide what work any particular girl shall undertake, or 10. Accessibility of 8upervisors.-Any girl in the depart-
to transfer girls from one class of work to another, but i t ment may, a t any time, go to See the supervisor, having
is her duty to recommend the transfer of a worker if she
thinks this necessary from the standpoint of health. I n first asked permission of the overlooker. She need not
give any reason for her wish to See her.
cases of doubt, she would, of course, refer to the doctor.
When permanent transfers are to be made from one section 11. Social and Recreationa1.-The directors rely upon the
to another (as distinct from temporary transfers necessary supervisors to do all in their power to encourage the girls
for the daily adjustment of work), a list of the names is to take advantage of the recreational opportunities pro-
sent to the girls' supervisor a t least a day before the trans- vided by the firm, and to assist in the development and
fers are to be effected, so that she may have an opportunity organisation of these opportunities.
of stating whether, on grounds of health, any of the pro- 12. General.-Since the supervisor is responsible for
posed transfers would be inadvisable. watching all wages, with a view to seeing that each one is
satisfactory, and also for the health and general welfare
4. General Conditions.-The supervisor is responsible of the girls in the rooms, i t will be her duty to report to
for watching the general welfare conditions of the rooms, the director of the department any circumstances which
such as ventilation, cleanliness both of the rooms and of prevent her from fulfilling her responsibilities.
cloak-rooms and lavatories, sufficiency of cloak-room and
lavatory accominodation, and general workroom amenities. This method of organisation is still i n a some-
It is her duty to draw the attention of the responsible what experimental stage ; but on two occasions,
administrative officer in the department to any conditions
in this connection which she regards as unsatisfactory. when a supervisor left, the girls very distinctly desired
us t o appoint a successor. The supervisors hitherto
5. Discipline.-All dismissal forms for women must be appointed have been educated women, most of whom
signed by the supervisor as well as the manager. had gone through a definite training i n a welfare course
6. Visiting.-The supervisor is entirely responsible for
a t a university, and had been welfare officers i n other
seeing that any necessary sick-visiting in the department f actories.
is undertaken, either by volunteers or otherwise. It will be Seen from what h a s already been said
t h a t t h e employment department deals with many
7. Savings Pund.-Supervisors are responsible for all matters besides t h e engagement a n d dismissal of
girls' Savings Bund collections. Iabour a n d the investigation of complaints. Most of
8. Education.-Supervisors are responsible for encourag- the welfare activities throughout t h e Works come under
ing girls to take advantage of the educational facilities its purview. Such of these as merit description will be
provided in the Works, and they should keep a sharp look mentioned later on.
96 THE HUMAN FACTOR IN BUSINESS GOOD WORKING CONDITIONS
months' service. Of these, seventy-six per cent. were
LABOURTURNOVER dismissed, a fact which dem~nstra~tes that the first six
Perhaps I may here give patticulars of the labour months may be regarded as a probationary period.
turnover a t the Cocoa Works. For this purpose, Talung the total number : forty per cen',. left for reasons
obviously, war-time figures will carry no significance. of their own, and fifty-five per cent. were dismissed.
I can therefore only use the figures for 1920, when The remainder represent unavoidable reasons for leav-
for the most part labour conditions had reverted t o ing, such as retirement a t pension age, and death.
something approximately normal. Great care is taken to avoid putting boys into
The figures for men nre inclusive of clerks and over- blind-alley jobs. Where it seems likely that this might
lookers, and exclusive of those engaged in the building occur, we try to arrange for the work to be done by
staff on works of construction and of casual workers girls.
engaged by the hour a t the railway siding. The figures Married women are not employed, save in very
for women include overlookers, night cleaners, and exceptional circumstances, but widows are occasionally
clerks. engaged, usually as cleaners, if the employment manager
Taking men first, during 1920, 382 men and boys is satisfied that proper arrangements are made for the
left, 441 were engaged, the average total number of care of their children.
male employees for the period being 2966. From
these figures a n approximate estimate of the iabour
turnover can be obhined, if it be regarded as the
percentage ratio of the employees who leave to the I n the foregoing pages, I have described the special
average total of employees for the period. On this organisation which has been set up a t the Cocoa ViTorks
basis the turnover for 1920 is 12.8 per cent. to develop and maintain the right kind of personal
The figures for women are as follows : Left, 489 ; environment for all who work there. But everyone
engaged, 814 ; average total female employees, 3712. with a knowledge of factory life will a t once realise
This gives a turnover for 1920 of 13.1 per cent. that the object in view can never be attained with-
Of Course, this method of assessing labour turnover out the help and sympathy of the whole body of
takes no account of the two other factors which enter administrative officers.
into such a n estimate, namely, the length of service I venture to think that, in the past, not enough
of those leaving, and the reasons for which they leave. stress has been laid on the value of the art of leader-
Obviously, in the case of women, the turnover will ship when appointing administrative officers ; nor have
always remain comparatively high, since all girls leave employers been sufficientlyanxious to develop that art
when they marry. Apart from those who left on that after their appointment. It has been too often assumed
account the women's turnover is about six per cent. that a thorough knowledge of the technical processes
We regard the present men's turnover as unneces- involved was the supreme necessity, and that if this
sarily high, and careful consideration is being given were associated with the power to ' hustle ' little more
to methods of reducing it. Two-thirds of the men and need be asked. Much of the Labour unrest in industry
boys leaving i n 1920 left before the completion of six to-day is due t o lack of tact, and of a nice sense of
98 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS
justice on the part of the administrative staff, from enough. They should be told quite clearly the ideals
charge-hands to directors. They have sought to drive of the directors as to the way in which the businesa
when they should have been leading, and have been should be administered, and the relations which should
satisfied with ' rough justice ' instead of insisting on be established and maintained between the manage-
complete justice in each individual case. The some- ment and the men. Emphasis should be laid on the
what rough and ready method of handling Labour need of absolute justice, and the importance of courteay,
which has so often done duty in the past will not serve and a high ideal held out regarding the part which a
us in future, any more than will the old rule-of-thumb foreman or other officer may play in creating the right
industrial processes, where science is ignored and ' atmosphere ' in the Works. The great changes which
costing systems are unknown. Both are becoming have come over industry during the last few yeam
relics of the past. Just as we must give science a should be explained, and the staff made to realise how
more prominent place in the development of industrial much greater are the claims made on administrative
processes, so we must learn to handle the human officers now than formerly.
problems of industry with far more intelligent sym- The practical steps we have taken a t the Cocoa
pathy and tact. We must induce rnen to do their Works to help those officers to perform their various
best by encouragement, example, and inspiration. duties efficiently, have been of three kinds. First, we
But here we are face to face with a practical diffi- have arranged a series of lectures. The first experiment
culty. It is easy to find foremen with good technical in this direction was made in 1919, when twelve lectures
qualifications, and comparatively easy to find them with were given to the whole of the administrative staff.
' hustle,' but it is difficult to find rnen who can inspire These lectures were delivered during working hours, and
and lead. Yet, such rnen must be found, or made, for each was given more than once, as obviously ali the
the plain fact is that workmen nowadays refuse to be foremen could not be absent from the workrooms a t
driven. Unless we can learn to lead them, industry the Same time.
will suffer severely ; and, indeed, i t is suffering severely The syllabu~of the h t course of lecturea was CM
from our incapacity in this respect. I suggest, there- follows :
fore, that those responsible for the administration of
business should realise the great importance of sur- SYLLABUS OF LECTURES
rounding themselves with a body of administrative
officers possessing, not only the necessary technical
qualifications, but the power of leading men. Even 1. Introductory.-The true functionof Indnstry. Should
if we have been conscious of this need in the past, be a form of National Service. Production of useful com-
we have not taken enough pains to develop the modities, made under good conditions and sold at reasonable
kind of qualities which are required of a firat-rate prices. The present Industrial situation. New conditions
administrative officer. likely to prevail after the war.-B. S. ROWNTREE.
Obviously, the 6rst essential is to select for adminis- 2. Financial Organisation of a Limited Cmpany.-A
trative posts rnen who, besides the technical qualifi- Limited Company. Rough History of Industrial Evolu-
cations, have tact and sympathy. But that is not tion from simplest commerce to modern developments.
100 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS 101
History of our own business. Method of Financing a 10. Education. What is Education ? Object of
Limited Liability Cornpany.-J. B. MORRELL. Classes a t the Works. The Powerful Influence of Over-
lookers. The Future of our C1asses.-C. HORNER.
3 und 4. Our Raw Materials (two lectures).-Lecture 3 :
Cocoa. Lecture 4 : Sugar, Gum, Glucose, etc. Method 11. Our Sales und Advertising Departments.-Organisa-
of preparation prior to coming to Factory. Our West tion. How to Command Large Sales. Prices. Selection
Indian cultivations. Food Value, etc.-S. H. DAVIES. of Goods. Quality. Prompt De1ivery.-A. S. ROWNTREE.
5. Psycholoyy in the Factory.-Unconscious psychology. Since then, other lectures have been arranged-
Definition of psychology. Business conditions after the some given during working hours, and others i n the
war. How to be faced ? Greater efficiency of Manage- evenings. Attendance a t t h e latter is entirely
ment and Labour. Good and bad features of ' Scientific
Management.' Scientific or Efficient Management plus voluntary .
greater consideration for human factor. Use of psycho- I n addition t o lectures, a staff journal is published
logy. Workers men and women, not machines. Fitting from time t o time a n d given, free, t o every member
task to worker and worker to task. Avoidance of of t h e administrative staff. It deals with all kinds of
monotony. Leading not driving. Right atmosphere. matters which it is thought will help the readers in
Setting the tone. Sympathy. Trust. Co-operation in their work. The following is a list of contents of t h e
Management.-T. H. APPLETON. journal issued i n January 1921 :
6. Working Conditions.-Brief review of factory con- Editorial.
ditions in the past. Factory Acts and Home Office ' The New Spirit in Industry.'
Legislation. Workrooms. Hours. Conditions necessary Professor Marshall on the Future of Industry.
to secure a short working day. Fatigue : Relation be- ' Education.'
tween Fatigue and Efficiency. Cmteen.-J. S. ROWNTREE. ' Foremen of To-morrow ' (reprinted).
7. Wayes. Sweated Industries. Trade Boards. Con- ' Figures.'
ditions which must be observed if an industry 1s to ' The Immediate Future of Industrial Management '
pay high wages. Possibility of increasing efficiency in the (reprinted).
Cocoa Works. Research Committee. Costing. Scientific Graphic Control.
Management. Importance of Chemical and Engineer- ' Administrative Weaknesses.'
ing Developments. Methods of Organisation. Labour- ' Efficiency Fundamentals ' (reprinted).
saving Devices.-B. S. ROWNTREE. The Administrative Staff's Bookshelf.
Reviews, Short Notices, Press Cuttings.
8. Wage System.-Day Wage. Task. Piece Wage.
Collective or ' Fellowship ' Piece. Piece-Day. Premium A further step which we have taken t o help t h e
Bonus. Salary. Advantages and disadvantages of each members of the administrative staff t o carry out their
System. The Cutting of Piece-rates. Co-ordination of duties successfully has been t o enable them t o attend
Wages throughout the Werks.-0. F. ROWNTREE. conferences which have been held in different parts
9. The Place of the Worker in the Control of Industry. of t h e country for Works directors, managers, and
-Trade Unionism. Workshop Committees. Whitley foremen, when various problems of administration are
Counci1s.A. S. ROWNTREE. considered.
102 TRE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS 103
We have found it a great help for our foremen F R I D A Y , September 24th.
and others t o mingle, a t these conferences, with fore- 9 . 0 A.M. Breakfast.
men from other factories, and t o listen t o addresses on 10.0 A.M. Lecture : ' The Psychological Aspects of
some of the larger problems of industry. Employers Training in Industry : (1) Training the
are, perhaps, a little apt to forget the few opportunities Management.' Professor T. H. Pear.
a foreman gets of enlarging his ideas on industrial 1.0 P.M. Luncheon.
matters. He seldom travels, or has any chance of 4 . 0 P.M. Tea.
hearing how others are dealing with the problems 4.30 P.M. Lecture : ' The Problem of Unemploy-
ment.' Victor Gollancz.
which he has t o face every day. If we do not give him 7.0 P.M. Dinner.
the opportunity t o enlarge his ideas, we cannot blame 8 . 0 P.M. Lecture : ' The Co-ordination of Employ-
him if he gets into a rut. Nor can we blame him if ment, Welfare and Educational Activities
he fails to grasp the changes which are so rapidly in the Factory or Business House.'
coming over industry. At these conferences, t o which A. Rowland-Entwistle.
any firm may send representatives, much attention
is devoted t o the human side of business adminis- BAT URDA Y , September 25th.
tration. 9 . 0 A.M. Breakfast.
The following is the Programme of a Conference 10.0 A.M. Lecture : ' The Aspirations of the Workers.'
held a t Balliol College, Oxford, in September 1920, David Stewart, M.A.
a t which 160 persons from 50 different firms were 1.0 P.M. Luncheon.
present ; the number attending from the Cocoa Works 4 . 0 P.M. Tea.
being 21. 7.0 P.M. Dinner.
8 . 0 P.M. Lecture : ' Towards an Industrial Polioy.'
E. H. C. Wethered, LL.B., O.B.E.
LECTURE CONFERENCE
S U N D A Y , September 26th.
9 . 0 A.M. Breakfast.
10.0 A.M. Lecture : ' Educational Needs of the
Sept. 23rd to 27th. 1920 Future.' A. L. Smith, M.A. (The
Master of Balliol).
PROGRAMME 1.0 P.M. Luncheon.
4 . 0 P.M. Tea.
TH URSDA Y , September 23rd. 4.30 P.M. Lecture : ' The Psychological Aspects of
Training in Industry : (2) Training the
7.0 P.M. Dinner. Workers.' Professor T. H. Pear.
8.0 P.M. Short Introductory talk. B. Seebohm 7.0 P.M. Dinner.
Rowntree. 8.0 P.M. Lecture : ' The Possibility of a New Motive
8.16 P.M. Leoture : ' The Historical Basis of the Force in Industry .' P. J. Pybus, C.B.E.,
Industrial System.' C. R. Fay, M.A. M.I.E.E.
104 THE HUMAN FACTOR IN BUSINESS GOOD WORKING CONDITIONS 106
MONDA Y , September 27th. ment '' ; and lately psychology has claimed attention
9.0 A.M. Breakfast. as a serious factor in industrial development.
1.0 P.M. Luncheon. Only those who keep abreast with the modern and
enlightened scientific methods can hope to succeed.
There is no doubt that the steps described We are constantly faced with not only home competition
above have led the foremen and others to take a but with that of foreign countries, in some of which
keener and more intelligent interest in their work, science has been effectively harnessed to the chariot
both on the technical and the personal side. They of industry.
have been given an opportunity of understanding, These important changes, charged as they are with
much more fully than they did, the ideals of the infinite possibilities, will, without adding to hours of
directors as to the way in which authority should be work, insure a greater measure of comfort for the
community. But, a t the Same time, they involve a
exercised.
I n concluding this section, I should like to say new standard of education and intelligence, especially
that some of the best ' welfare ' work in the Cocoa on the part of the more responsible workers.
Works has always been done by foremen and managers. Although the changes to which I have referred
Many of them needed no help, either to develop their have been impending for many years, their importance
powers of leadership or their sympathy with the has been enormously increased by the conditions due
workers, and I am glad to take this opportunity of to the war, which rudely shook industry out of its
testifying to their work in this direction. ruts and forced it to adopt new methods. To-day,
practically every firm is faced with two alternatives :
it must either adopt an up-to-date scientific system,
or fall behind in the race.
PART IV The education of administrative officials, and, a t
any rate, of the more responsible rank and file workers,
has now become a necessity in a well-equipped factory.
I t is possible that in time the ordinary educational
INthe ' good old dsys ' when factories were small, system of the country may turn out boys and girls
and industry was conducted by rule-of-thumb methods, whose mental faculties are so well trained that they
success could be achieved without much attention to can master and apply industrial science, without the
the intellectual training of either rank and file workers help of special Courses of instruction provided by em-
or administrative officials. Shrewd common sense and ployers. But a t present we are very far from the
practical experience were all that was needed. But attainment of that ideal. Moreover, as a rule, the
now conditions have changed. Industry is becoming employer has to deal with the existing staff, many of
more and more complex, and science plays an ever- whom were appoint'ed under the old rigime ; and the
growing part in it. This is true, not only of engineering problem is to help them to meet the new conditions.
and chemistry, but of costing systems, and systems of Education in a factory may be considered under two
administration and wage-hing, or ' scientifio manage- heads, viz. education designed t o develop general
106 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS 107
intelligence, and technical education. I will describe the usual number is twenty, in cookery twelve, dress-
what has been done a t the Cocoa Works under both making eighteen, and housewifery ten. In addition
heads. to the head mistress there are eight whole-time and
one part-time teachers.
All the classes are designed to give really practical
training, and, by dwelling on the why and wherefore
Dealing with general education, the first step was of everything done, to develop the reasoning powers
taken in 1908, when classes in domestic science and of the pupils. It may be urged that it would be better
gymnastics were organised for girls. Sinee then Eng- to give a more intellectual and less practical education.
lish has been added to the course. All girls under It need hardly be said that this policy was carefully
seventeen years of age when engaged are obliged to considered, but it was felt that on the whole, in view
attend the classes, which are held for forty-two weeks of of the short time available, the practical course should
the year, for three hours weekly, during working hours. be adopted, for girls who leave school for the factory,
Girls who are seventeen when they enter the factory and leave the factory to marry, have little chance
only attend gymnastic classes. When in receipt of a to become proficient in the domestic arts by helping
fixed day-wage they are paid while they are a t class, a t home. The number of girls attending classes varies
just as if they were at work ; when working on piece- with the number of new girls engaged. I n January
rates they are not directly paid while at school, but 1921 there were a thousand on the books?
for a week's work they must all receive the minimum Prom 1905 to 1915 classes were held for boys.
wage laid down in the Industrial Agreement entered But in 1915, as the teachers were called up for military
into by most of the Cocoa houses, and no deduction service, and it was exceedingly difficult to obtain boys'
from this is made for their attendance a t school for labour, these classes were discontinued. With the
three hours each week. The girls attend the school until exception of gymnastics, they have not been restarted,
the end of the term during which they reach the age since it was decided to discontinue all our own com-
of eighteen, or for three years, whichever is the shorter pulsory classes, as soon as the Continuation Classes
perild. provided for under the Education Act, 1918, were
The girls attend gymnastic classes during the whole opened. The gymnastic classes were restarted a t the
of their period at school : this occupies one hour request of the Central Works Council, when both the
weekly, including the changing of clothes and a warm administrative staff and workers spoke of their value.
bath. I n addition to gymnastics, the girls take dress- The boys attended school for three years, and
making, cookery , housewif ery , and English. The
housewifery classes are held in two cottages built We decided to close our school in the Autumn of 1921, when the
for the purpose. The course includes all branches of aoutinuation schools provided for urider the 1918 Education Act were
to be opened in York ; and we agreed with the Local Education Autho-
housecraft ; notably, household management, infant rity that it should use our class-rooms for the first few years. Now,
care, and home-nursing. The girls are also taught the opening of the ' Fisher ' schools has been postponed for a time,
but as we had made all arrangements for discontinuing our own school,
household needlework and simple upholatery. we are adhering to our decision. The gymnastic classes, however, will
All classes are kept fairly small. I n gymnastics oontinue, as in the case of the bop.
108 THE RUMAN FACTOR IN BUSINESS GOOD WORKING CONDITIONS 109
similar arrangements to those made for the girls sisted of four whole-time teachers. These, however,
governed the payment of wages. The classes occupied in addition to teaching, were responsible for super-
four working hours and two hours of leisure time in vising all the social activities organised for boys in
the week. As in the case of the girls, gymnastics were their leisure hours, such as games, week-end Camps,
taught during the whole three years, and in the summer evening clubs, etc.
swimming was taught in an open-air bath adjoining
the school.
I n addition to gymnastics the boys had classes in
mathematics, English, and woodwork, which in the A stat,ement may here be inserted as to the cost of
third year were exchanged for classes in experimental the school, which, needless to say, is on a much higher
physics and chemistry. The aim of these was to teach scale now than before the war. Not only have the
the boys accurate measiirement and careful observation. salaries of the teachers and the cost of equipment
Care was taken to teach all the subjects in such a risen, but there has been a great increase in the amount
way as to encourage boys to make a practical use of to be paid per pupil, directly or indirectly, as wages
their mental powers. Thus, mathematics, instead of for time occupied in school attendance.
being taught as an abstract science, was connected For 1920 the cost of the girls' school, with an
with interests entering into the boys' daily lives- average of about a thousand on the books, was as
such as the measurement of a cricket pitch, or the follows :
laying out of a football ground, or calculations con-
nected with wages or the work they were doing. I n Salaries . . £2281
the woodwork classes, boys made scale drawings of the Charing . 229
objects they were working On. I n physics and chemis- Washing gymnastic costumes . 175
try, emphasis was laid on great accuracy in weighing Gymnastic costumes, shoes, etc. . 111
Materials for classes (less sales) . 249
and measuring, and chemical experiments were used Wages paid to day-workers while at
to develop faculties of reasoning and observation. I n school . 666
the English classes, which were very popular, such books
as the favourite stories of R. L. Stevenson were read
-
£3711
to the boys, or read aloud by them, and they were then Less Government Grant . 850
asked to write essays on the chapters read. This
developed their powers of expression, in which those Net cost . . £2861
who have only had an elementary education are
usually sadly deficient. (It wiii be noted that no charges are included for rent,
The number of boys on the school books was heating, and lighting.)
generally about 350-a much smaller number than that
of the girls, because, as already pointed out, the latter If the boys' school were restarted, with 260 boys
leave the factory when they marry, and hence many on the books, attending six hours weekly during
more girls are engaged year by year. The staff con- working hours, the estimated cost would be £3300, less
110 THE HUMAN FAC"II0R I N BUSINESS GOOD WORKING CONDITIONS 111
£600 Government grant. An increase in the number tage to a girl, for however brief a period, to come under
of hours spent in the school would involve approxi- the influence of a teacher carefully chosen, not merely
mately a p o rata increase in expenditure, as it would for her technical qualifications but for sympathy and
be necessary to provide additional class-rooms. strength of character. Thoroughly satisfactory results
Before describing the educational facilities pro- could only, however, be attained if more time were
vided for older persons, I must try to estimate the spent a t the school.
results of the education provided for boys and girls. Speaking as a result of experience, I should say
Taking the girls first, I think there is no doubt that that if we continued the schools, instead of handing
the gymnastic classes and baths have a beneficial the work over to the local authority, when the 1918
effect on their health, and this cannot fail to improve Act is applied in York, I should advocate two changes.
their efficiency as workers, though precisely t o what The f i s t would be substantially to increase the time
extent it is impossible to say. As for the other classes, spent a t school by girls under sixteen, devoting the
it is more difficult to speak with certainty. A con- extra hours to general subjects and not to domestic
siderable number of girls benefit very decidedly. They science, and the second would be to adopt in the girls'
enjoy and appreciate the classes, and acquire howledge school the arrangements made in the case of the boys,
which will be of use to them all their lives, and they and t o associate the teachers intimately with the
are old enough to profit by instruction more than they social activities organised out of school hours. The
did when attending the elementary schools. There headmaster of the boys' school considers that far more
are other girls who certainly benefit by the classes, was done to influence the boys helpfully on the football
but not to a very great extent ; while a few take little and cricket fields and in the week-end Camps than
interest in the work, and it hardly seems to affect them. during school.
I suppose such an analysis of the value of teaching is
true of most schools, and even of universities ! As a
rule the girls h d the classes a pleasant change from THE RESULTSOF THB E D U C A T I O WORK N~
work, though the piece-workers cannot be persuaded To my mind, there is no evidence that the girls'
that they do not lose money by attending, and some school has ' paid ' the Works, from the purely financial
of these would absent themselves if attendance were standpoint ; but i t has tended to raise the general
not compulsory.
tone. It has drawn attention to particularly capable
The chief criticism of the school from an educa- girls, who have been encouraged to take advantage of
tional standpoint is that the time devoted to it is further educational fwilities provided in the Works or
much too short. The girls only attend for 120 h o m in the city, and who have thus become better qualified
a year, or about one-third of the time those under
sixteen will be obliged to attend as soon as the to iill responsible posts. Again, as one among other
Education Act Comes into force in York. One dis- amenities, it has attracted a better class of girls to the
advantage due to this fact is that so many girls pass factory. Prom the purely industrial standpoint, i t can
through each teacher's hands that she cannot get to hardly be expected that the provision of costly edu-
know them really well. Undoubtedly it is an advan- cational facilities for all young girls will directly pay
the particular firm that provides them. But this is
114 THE HUMAN PACTOR IN BUSINESS GOOD WORKING CONDITIONS 116
court disaster. It is therefore most important that he acts as tutor. If a course in the town is recom-
the Person in charge of their education should know mended, the student returns to him, from time to time,
them so well that he can interpret their wishes even to be helped over any particular difficulties, and he is
before these are coherently expressed. The teachem, in close touch with the local education authorities,
too, must invariably have the type of personality who arrange convenient courses whenever possible.
which makes them appear to be working with a class This method of encouraging students to attend classes
rather than down to it. organised by the local education authorities has not
Organised effort in the direction of providing adult been entirely satisfactory, even where classes have been
education only dates from 1920, when two reasons led arranged for our employees only. This is partly due
us to systematise and develop facilities for it. One to their dislike of going to a school, and fear of being
was a growing demand for it from a section of the mixed with juniors and outsiders, before whom it is
workers, and the other a recognition on the part of disagreeable to display ignorante. If it can be
the directors that a higher standard of education was managed, it is much better to have classes taken by
essential to the industrial efficiency demanded by members of the staff, who know the men and women
modern conditions. We therefore appointed an edu- individually, and can help them personally far more
cational adviser to undertake this work. than a teacher whom they see only once a week, and
He began by attending meetings of all the depart- who very probably is t,ired out before the class begins.
mental eouncils throughout the Works, and spoke of For these reasons, in future there will be a greater
the importance of education and of the help which he number of classes a t the Cocoa Works. They will be
was prepared to give. Each department elected two held out of working hours, and chiefly on Saturday
representatives t o confer with him over arranging morning, when the factory is closed.
detaila of courses and hours. The normal method The class most in demand is one which com-
of letting employees know about any special lectures, prises arithmetic and English. It is taken on tutorial
or anything ehe of educational interest, is through class lines, and is intended to refresh the minds of
these appointed council members, who show consider- students on the essential fundamentals before they
able interest and are keen to help. This was the first proceed to the other subjects.
step towards creating the atmosphere which is required I n the offices,also, clerks are recommended t o join
and towards focussing the educational enthusiasm classes in the town. Here it was found that some
which is otherwise scattered and ineffective. incentive was required if education was to be a success,
We have not attempted to provide adult classes or if the standard was to be appreciably raised. All
a t the W o r b for all who wish to continue their educa- junior clerks, before joining the staff, must pass an
tion. It was made known that the educational entrance examination which is partly mitten and
adviser's services were a t the disposal of anyone who partly oral. At the age of seventeen they have to pass
wished to take up a course of study, either by attending another examination in arithmetic, English, shorthand,
classes or by private reading. Arrangements were and general intelligence. By the age of twenty they
made enabling anyone in the Works to go to his office must also obtain elementary certificates in arithmetic,
during working hours for advice, and thenceforward English, book-keeping, and one other subject from the
116 THE HUMAN PACTOR IN BUSINESS GOOD WORKING CONDITIONS 117
Royal Society of Arts. Failure to do so is a bar to Education Committee, comprising two managers, tmo
promotion, but a prize of f10 is given for success, forewomen, two foremen, and the educational adviser,
and another £20 is given if the candidate obtains four will select the candidates for travelling, according to
intermediate certificates (in arithmetic, theory of their Progress in class and the benefit they are likely
commerce, book-keeping, and one other subject) by to gain. The tours will last four or five days, and will
the age of twenty-five. No special classes save one include a day a t a university. The value of these
in French, are arranged for clerks a t the factory, tours is enhanced if some one goes who can lead a
but the educational adviser is always willing to help discussion in the evening on what has been Seen.
them individually. As with the adult education Mention must also be made of debates, popular
for factory workers, the above scheme is run by a leetures, and week-end conferences, which help to
committee. create a spontaneous interest in education and a
The education provided for persons holding desire for a better equipment for work. Articles in
administrative posts is based on the need of giving the firm's magazines also contribute to this end.
them the power of grasping the new ideas of the time, Finally, it should be noted that ready access to a
of understanding the new relations towards the workers good library is an essential, without the help of which
which recent events have established, and of assimilat- the students would be severely handicapped. A con-
ing the new forms of industrial administration. We venient reading-room is a great asset for those who
wanted them to have an opportunity of fitting them- have busy and crowded homes.
selves to perform their present work more efficiently,
and to meet the demands which will be made on them
in the future. But it is well-nigh impossible to give
a man or woman a broader outlook by class work alone. Although we are primarily neither an engineering
We have, therefore, tried a fresh experiment, and nor a building concern, the extension and mainten-
during the last summer four parties of twelve over- ance of our buildings and plant compel us to maintain
lookers visited other lirms. This proved well worth a comparatively large supply of technical labour.
the expense, if coupled with class work. There is Apprentices are therefore trained, under our scheme,
one tutorial class for foremen a t the Works, which in the engineering department as fitters and turners,
includes several items-a lecture on ' Management ' electricians, pipe fitters, and sheet-meta1 workers,
from a director, a discussion with the educational and in the building department as joiners, painters,
adviser, and an English class conducted by another bricklayers, and slaters.
member of the staff. These are taken in rotation. I n the engineering department the attendance of
We hope now to increase the number of classes apprentices a t the technical engineering classes held
and the parties for travel. We shall probably allow by the city education authorities is compulsory, but
two hours for classes in working hours, in which the in the building department similar attendance is
subjects will be arithmetic and business talks ; and voluntary. I n both cases the firm pays for the tuition
there will be classes on industrial history, economics, and examination fees, on condition that the apprentice
English, and psychology out of working hours. An has attended a t least 90 per cent. of the possible
118 THE HUMäN FACTOR IN BUSINESS GOOD WORKING CONDITIONS 119
classes. This payment is made to parents a t the end Bench work . . about 14 years.
of the Courses, so as to interest them in ensuring the Lathe work . . about 1 year.
General machines . . about 1 year.
regular attendance of their sons. I n cases of illness, Erecting work . . about 14 years.
of course, this percentage may be decreased a t the Drawing office work . . about 6 months.
discretion of the firm. The firm also offers to all
apprentices cash prizes of ten shillings for each Board Naturally, the time spent on these activities varies
of Education or City and Guilds Examination pass, and according to the adaptability and ultimate trade of
five shillings for each first-class Railway Institute or the apprentice. For instance, one who is training to
Council School Evening Class pass. be a turner will spend the greater portion of his time
Engineering apprentices come to us a t an average on lathe work. If, when the apprentice has completed
age of fifteen, but building apprentices are not taken about five years on the first four of these sections of
under sixteen except in special cases, the circumstances his practical training, he has not reached his twenty-
of which are mutually agreed upon by the firm and the first year, he then receives a further period of training
trade union. They are paid for all holidays, and wages in the Same operations, unless transferred to the drawing
are paid according to the union rates for apprentices. office. Only the apprentices on the electrical and
The theoretical training during the first two years mechanical side who have shown ability in drawing
of apprenticeship, for the engineers, consists of attend- a t the technical classes, or have displayed special
ance a t the preparatory engineering course under the capacity on practical work, are selected for the last
local education authorities. This course Covers prac- six months of training in the drawing office.
tical mathematics, practical drawing, and English. Owing to the more general nature of their work,
During the remainder of the apprenticeship the pupils apprentices to electrical work, sheet-meta1 work, and
attend the mechanical engineering course, which pipe fitting have no such standard course arranged,
includes tuition in practical mathematics, applied but work under the supervision of the skilled workers
mechanics, machine drawing, electricity, etc. The of their adopted trade.
training is graded to meet individual differences in age Similar statements may be made with regard to
and ability. I n order to help apprentices with the the work of apprentices in the building trades. Every
home work given by the teachers a t these classes, the encouragement is offered to them to attend night
engineering department organises a tutorial class a t classes on building construction and allied subjects.
the factory under the supervision of a draughtsman Practical work consists of attendance upon skilled
who is a qualified technical teacher. The class is held tradesmen. Special care is taken to See that appren-
for one hour on four mornings a week during working tices are not used simply to do hand-carting. For
hours, and for two hours one evening a week out of joiners' apprentices the training is mainly on the bench,
working hours. Home work is thus rendered definitely under the supervision of a good tradesman. A small
instructive, and this extra tuition acts as a useful proportion of their time is spent on maintenance
supplementary course. joinery work in and about the factory. The painters'
The practical training of engineering apprentices on apprentices spend a t least one-third of their time
the mechanical side is divided into five sections : outside the shop, on decorative work, including wall-
120 THE HUMAN FACTOR IN BUSINESS
papering. Bricklayers' and slaters' apprentices simply abreast of modern developments, in so far as these are
work under the best tradesmen in each section on what- published. About 200 periodicals are read, and a
ever work is in hand. A full complement of appren- careful look-out is kept for books likely to prove of
tices is carried, according to the working rules of the value.
Joint Council of the Building Trade.
PART V
Our educational work is supplemented by two To include recreation under the general heading
libraries. The General Lending Library, which is Open of ' Good Working Conditions ' is perhaps to use both
for the use of all employees, supplies fiction and general terms somewhat broadly. But the subject can hardly
literature. The library is in a separate building a t be omitted from a study of the human side of factory
the main entrance to the Works, and is Open daily, administration, and may, I think, best be dealt with
except on Saturdays and Sundays, from 12 noon to 2.30 in this chapter.
P.M. and from 5 P.M. to 6 P.M. Employees have free That adequate opportunity for wholesome recreation
access to the shelves, so that they can handle the books is desirable for all workers, especially in view of the
and find out for themselves exactly what they require. shortening of the working week, will not be disputed.
A librarian is present when the library is Open. About The only question is whether an employer has any
500 books are borrowed weekly, of which 90 per cent. responsibility in connection with the matter. I think
are fiction. The costs, which amount to about £250 a the right answer is that if many of his workers live
year, exclusive of the part-time services of a librarian, near the factory he should satisfy himself that adequate
are borne by the Company. With a view to en- recreational facilities exist for them, although he may
couraging reading among the employees, arrangements not, strictly speaking, be responsible for providing
are now being made with a bookseller to Open a book- those facilities.
stall daily during the dinner hour on the Company's There are two courses which an employer may
premises. Special publicity will be given to books follow. He may either provide adequate recreational
recommended by the Library Committee. facilities for his own employees only, or, by his influence
The Technical Library deals entirely with technical and his financial help, he may assist communal effort
literature on all subjects which come within the scope to provide such facilities for the community as a whole.
of our business. A staff of twelve librarians and Strong arguments can be brought forward in favour
assistants is engaged in reading all relevant periodical of both courses.
and other literature, and extracting any items likely I n the case of a town where the local authorities,
to be of interest to persons engaged in different branches whether officially or otherwise, are seeking to provide
of our business. This literature is catalogued, and playing-fields, clubs, and similar amenities for the
weekly bulletins are circulated among administrative general public, it is certainly a disadvantage if large
officers to draw their attention to those matters which employers refuse to CO-operatein the public effort
concern them. I n this way it is possibls to keep because they are concerned merely with t'heir own
122 THE HUMAN FACTOR I N BUSINESS GOOD WORKING CONDITIONS 123
employees. Their attitude might indeed so weaken to wait for an articulate demand before doing anything.
communal effort as to render action impossible. Again, But begin by suggesting to a few active spirits that it
there are decided advantages in establishing clubs and might possibly be a good thing to start a particular
societies whose membership is not confined to the
club. Get them to discuss the idea among their mates,
employees of a Single firm. and tell them that if they find the club is wanted
On the other hand, an employer may very well you will be willing to help them to establish it.
say : ' I am prepared to spend thought and money I may add that some of the most successful Works
on securing adequate recreational facilities for my own Clubs have been started and carried on without any
employees, but I cannot undertake the heavier task suggestion and with scarcely any help from the firm.
of ensuring the provision of such advantages for the (2) Never become responsible for making good a financial
general public.' deficit on the working of a club. Discuss in advance
I n other words, it is a much easier and quicker what contribution, if any, it is reasonable for the firm
process to cater for a comparatively small section of to make, and then place the whole of the remaining
people than so to influence public opinion that measures liabilities on the members.
will be taken which meet the needs of the whole I n this connection it may be worth while t o state
community. what contribution our firm made to various clubs and
Again, the association for purposes of play of the societies during 1920. The cost of the upkeep of
workers in a particular factory tends to develop a playing grounds is included, but no rent is charged.
Spirit of esprit de wrps and camaraderie among them.
On the whole, I think that the employer should Firm's Contri-
Club. Membership in 1920.
steer a middle course between these two policies. bution, 1920.
Let hirn encourage communal effort, and if necessary
help it financially, but do not let him rely upon it Crioket . . . 72 (47 men and 25 girls)
Tennis . . . 140
entirely. Where the public provision is inadequate, Rrass Band . . .
and there is no early prospecu of changing it, let him Bowling . . .
See that provision is made for his own workers. Boys' Club . . .
Our experience has been that it is amply worth
Football . . .
Girls' Dinner-Hour
while to encourage the organisatiori of a wide range
of recreational activities in connection with the
Recreation
Hockey . .. ..
Swimming (girls)
.
.
125 (40 men and 85 girla)
160
Works. It would weary the reader were I to describs Pishing . . .
the various clubs in detail, and I will only refer to a Annual Sports . .
few of those which have proved especially successful.
First, however, there are two rules which experience
has taught us to follow with regard to all these matters.
(1) Never seek to ' dump ' a club or society on the I n addition to the help referred to above, the f?rm
workers because you think they will like it or that often arranges for a member of the Employment
it will be good for them. Of course, there is no need Department Staff to give secretarial assistance.
1 These amounts are considerably higher than usual.
GOOD WORKING CONDITIONS 125
124 T H E HUMAN FACTOR M BUSINESS
I n the case of the following clubs and societies lady gardener, who also runs a communal seed-bed for
raising seedlings, which are bought by the girls a t a
no money contribution is made by the firm :
low ~ r i c e .
1. Choral Society. L o t h e r recreational activity which is much appre-
2. Fur and Feather Fanciers' Society. ciated is the Works Dance, held in the boys' gymnasium
every Saturday night, except during the summer
3. Rounders' Club. months. This was initiated by a committee of em-
Of all the recreational facilities associated with the ployees, and the arrangements are under their control.
Cocoa Works, probably the allotments are the most About 200 are present every Saturday, and there is
keenly appreciated. Unfortunately, the constant build- no doubt that the dances not only give a great deal
ing developments have disturbed allotment holders of enjoynient, but afford a valuable opportunity for
in the past, and this drawback cannot be fully atoned workers of all grades and from all departments to make
for by a money payment and the provision of acquaintance with one another.
a fresh allotment. Recently, however, further land I do not think any other clubs call for special
in the vicinity of the Works has been acquired, and comment. They are very similar to the clubs con-
here it is fully expected that security of tenure can be nected with other factories, and they all serve a useful
given. purpose. The sports clubs could be considerably
Altogether there were, in January 1921, 364 extended were more ground available. At present,
allotments for men, 31 for boys, and 122 for girls. the playing-fields provided by the firm comprise :
Our experience has been that ,1,of an acre (345 square Sports Field, used for cricket, men's and girls' hockey, rounders,
yards) is about the right size for a man's allotment. annual sports, etc.
Men's Football Field
. .. ..
.
.
.
.
.
.. . . 2 PS
acres
Occasionally a particularly active man will rent two
. .
Juniors' Football Fields . . . . . 3 ,,
allotments, but this is quite exceptional. The boys'
allotments are 86 square yards, and the girls' 115
Bowling Green
T e ~ i Courts
s . . . . .
. .
, ,
.
. .
. .. .. acre
4 ,,
square yards. The rents are 10s. a year for men, .
Lawn, used for net ball, volley ball, etc.. .
Rose Lawn, used for Girls' Cricket Club and dinner games
. . f „
4 ,,
2s. 6d. for boys, and 3s. 4d. for girls. This includes Girls' Hockey Grounds (two) . . . . . . 2 acres
the Charge for water, which we have found it necessary
Total . 134 acres
t o lay on in all allotment fields. The girls are provided
with a garden shed, cold frames, and implements, for Some of these grounds are used all day on Saturday,
which they pay 1s. 2d. per annum. now that it is a whole holiday for almost all the
I n order to encourage a love of gardening among employees.
the girls, the services of a lady gardener were secured Two of the firn's motor lorries have been fitted
in 1919. She helps them with their gardens, and with movable char-a-bancs bodies. and are let out on
organises a horticultural show in the summer. It is Saturdays to self-constituted groups of employees, who
doubtful whether girls' allotments would succeed merely pay the running costs. The firm has a launch
without such help. Seeds, potato sets, artificial on the river which is let out on similar terms. Al1
manures, etc., are bought CO-operatively,through the
126 THE HUMAN FACTOR IN BUSINESS GOOD WORKING CONDITIONS 127
through the summer months a number of week-end present carefully considering how their needs can best
camps, some for boys and some for girls, are arranged be met, and how those who have lost the habit of play-
in various places within a reasonable distance of York. ing can be encouraged to develop it again. If only
The Campers go out on Friday night and return on from the health standpoint, it is well worth while to
Sunday night. During the Works holiday week larger encourage a large proportion of the workers, old and
camps are organised-one for about 150 boys, and one young, to take part in different games.
for about 60 girls. Before the war a number of lads
used to go to Belgium for a week during the summer
holiday, and it is intended to revive this custom in
1921. Those visits, under the guidance of enthusiastic
leaders, and preceded by lectures on the history and
geography of the districts to be visited, were valuable
from many points of view.
I n addition to recreation for week-ends and
evenings, games, dancing, and music are arranged for
during the dinner-hour. During the winter, the big
boys' gymnasium is used for dancing by a crowd of
girls. I n summer they often dance on the grass-to
the accompaniment of a barrel-organ ! The boys play
footbaii in the dinner-hour, and there is often music
both in the men's and women's canteens. I n the latter
it is spontaneous, but in the former, since, I suppose,
men are more reserved, it is usually arranged for in
advance, once or twice a week, by a member of the
Employment Department .
I n reviewing all the recreational activities a t the
Works, perhaps the chief criticism I have to make is
that the sports to which the greatest amount of energy
is devoted are so organised that only the best players
can play, while the rest either absent themselves or
merely act as spectators. There is a growing feeling,
and I think it is a right one, that the sports Programme
of a factory should include games in which all can take
part. Some workers suffer from lack of exercise, others
from exercise which is not adapted to them, and they
would benefit by games suited to their physical capacity.
A committee appointed by the Central Council is at
130 TRE HUMAN FACTOR IN BUSINESS JOINT CONTROL OF INDUSTRY 131
the employment in which we spend our working lives, in an industry from the outside, and often it can only
the atmosphere and under the conditions in which we have be exercised on unwilling employers by the threat of
to work, in the conditions of remuneration, and even in a strike. A trade union usually enters the field of
the manners and practices of the foreman with whom we industrial action to remedy a grievance or to put
have to be in contact, in all these matters we feel that we, right a n injustice. The workers now wish to enter i t
as workmen, have a right to a voice-even to an equal a t an earlier stage and in a different capacity.
voice-with the management itself. Believe me, we shall Leaving aside those who frankly desire the im-
never get any lasting industrial peace except on the lines mediate overthrow of the capitalist system, with whom
of industrial democracy.' the capitalist, qua capitalist, can obviously hold no
Finally, there is a section of workers, including parley, let us ask whether the demand for a defbite
a large majority of the women, who, although they share in the determination of working conditions is a
are anxious for better working conditions, have no reasonable one, and how far i t can be granted without
desire to control them. interfering with business efficiency. I think the
This, very briefly, is my analysis of the present majority of employers to-day regard it as reasonable
situation. But how has the demand for a greater -witness the development of Whitley Councils and
share of control arisen ? I think that it is the in- Interim Industrial Reconstruction Committees, which
evitable result of popular education and of the extension now number over ninety. Save for a diminishing
of the franchise. Men are no longer content to accept minority of employers who still hold that ' a man
conditions unquestioningly. That, after all, is the may do what he likes with his own' the demand is
attitude of a serf, rather than of a free man who has not regarded as revolutionary. On the contrary, most
learned to read, and, often, to think. With the employers welcome any proposals which will allay the
growth of trade unionism an ever-increasing number present suspicion and misunderstanding. But even
among those there is as yet no Consensus of opinion
of workers are meeting together, asking whether the as to how far joint control should go, or by what
present working conditions are just and reasonable, administrative machinery it can best be exercised.
and discussing their possible improvement. This is
Any definite conclusion must be the result of further ex-
developing a strong class consoiousness, and, whatever
views men may hold as to the ultimate basis of in- periment. Meanwhile, all over the country, employers
and workers are feeling their way in the matter, and it
dustry, a certain share in its control is coming t o be is to be hoped that there will be a very free exchange
regarded by many as an elementary right of the workers.
Just as through the vote they have a n equal share of the knowledge gained in individual factories. To
promote that end, I will outline our experience a t the
with other classes in the government of the country,
Cocoa Works. We recognise that we have much to
so, they are beginning to say, they should have a learn, and, indeed, we have only taken the initial
share in the government of industry. steps, although already we have made, and tried to
It is true, of Course, that to a great extent workers remedy, a considerable number of rnistakes.
help t o determine working conditions through their
trade unions. But they are asking for something
more. Trade union influence is brought t o bear on
132 T R E HUMAN FACTOR I N BUSINESS JOINT CONTROI, OF INDUSTRY 133
The question of control must be considered first While recognising the value of the work done by
with regard to the industry as a whole, and secondly the Interim Industrial Reconstruction Committee, if
with regard to individual factories. I n connection with this were the full extent t o which joint control went,
the first point, as mentioned in the chapter on Wages, it certainly would not meet the demands of the workers.
there is no fully fledged Joint Industrial Council for I n my opinion, far more important than a national
the Cocoa Industry. It is represented on the Interim committee of this kind is the development of a scheme
Industrial Reconstruction Committee, which deals with for joint control of working conditions in the individual
matters affecting the Sugar, confectionery, and jam factory. But even with the best will in the world i t
trades as weU as the cocoa trade. This was set up is difficult to determine the best way of sharing the
in 1918, and when the trades concerned are more fully responsibility of governing the industrial side of a
organised it will probably give place to a Joint Indus- business with the workers without lowering efficiency.
trial Council. Meanwhile, the functions which it per- The fact is that if one could eliminate the psycho-
forms are very similar to those of the more fully logical side of the question altogether, the ideal system
developed bodies. The Committee consists of thirteen of government from the standpoint of pure efficiency
employers' and fourteen workers' representatives? and is absolute autocracy, always granting that you succeed
its chief task has been to draw up agreements covering in finding a n ideal autocrat ! I n practice, however,
working conditions t o be adhered t o by the signatory the realisation of such a n ideal would be impossible.
firms. The trade unions who have signed the agree- Equally impossible, to take the other extreme, is the
ments are pledged not t o approach individual signa- method of governing a factory by large committees.
tory firms for any alteration in the conditions, which The problem is to find some via media, and it is the
can only be changed by the national committee. search for this on which so many employers and
I n addition to fixing minimum wages, the agree- workers are engaged a t the present time. I think it
ments entered into have dealt, among other matters, may truthfully be said that in the Cocoa Works the
with hours of work, payment for six public holidays directors wish to give as much control to the employees
annually, and the granting of a week's holiday in the as is consistent with full efficiency, and not merely t o
summer with wages paid. Firms employing over 75 give as little as they are obliged t o do. Of Course, t o
per cent. of those engaged in the manufacture of cocoa consult the workers on industrial conditions is not a
and chocolates have signed the agreements ; but no new policy in factories. It has been our custom to
firms can be compelled to do so, the only inducement do so informally, and frequently, for years past, but
to sign being freedom from the necessity to negotiate latterly we have sought to establish a more definite
individually on basic wages and conditions. system of consultation. This was begun some time
before the appointment of the Government Committee,
Originally the number of employers' and workers' representativea generally known as the Whitley Committee, and long
was equal. Special circumstancea made it desirable to add a further
workers' representative. before its reports were published.
I will not weary the reader by describing in detail
134 THE HUMAN FACTOR I N BUSINESS JOINT CONTROL OF INDUSTRY 135
the experiments which we have made. Briefly, how- workers, so that if any question arises as to particular
ever, it may be said that in the beginning we set up a
conditions, someone will be present who can speak
threefold system. First, there were sectional councils with knowledge of the kind of work affected.1 So far
which were concerned solely with matters affecting
clearly defined sections of the workers, all of whom as possible all grades of administrative officers are
were engaged on similar or closely allied processes. represented-directors, departmental managers, and
the different grades of overlookers. The councils meet
Representatives from sectional councils sat on depart-
monthly, or more frequently if necessary, unless the
mental councils, which considered matters affecting a
department as a whole, and departmental councils shop steward and the chairman agree that there is
sent representatives to a Gntral Works Council, which no business of sufficient importance to justify a
meeting. All meetings are held during working time ;
dealt with matters affecting the whole factory. Ex- day workers are paid their ordinary wages, and members
perience showed, however, that this system was too
who are on piece-work receive their average piece-rate
complicated. Often the work t o be done by the
earnings during the time they spend in council meetings.
subsidiary councils was so trivial that the workers We have not yet had sufficient experience of
took but little interest in it, and felt that the whole
departmental councils organised on the above basis
scheme was somewhat artificial. Moreover, the total to say with certainty whether the system is satis-
number of persons taken from work to attend the factory, but as it is the outcome of two or three years'
councils was out of proportion t o the value of the experience, we quite expect that it will prove successful.
ends gained. We have recently, therefore, abolished I n the past, when the departmental councils were
sectional councils altogetlier, and reduced the numbers rather differently organised, a number of them worked
on the departmental councils. There are fifteen exceedingly well, especially those consisting almost
departmental councils, each consisting of approxi- entirely of men. Matters of real importance were
mately equal numbers of the administrative staff discussed, and there was no sense of artificiality.
and of rank and file workers, the latter elected by Some councils, however, notably those on which girls
ballot of all the workers in the department who have predominated, really did not amount to much ; the
been in our employment for six months or more and questions raised a t the meetings were often felt by
are over eighteen years of age. Neither membership both sides to be trivial, and but little interest was
of the council nor voting is confined to trade unionists, taken in the discussions.
but, as a non-unionist would stand but little chance I am, personally, still uncertain whether in a
of election, i t may be said that the committees are factory where every girl leaves when she marries, and
substantially trade union bodies so far as the repre- consequently the average age of the female worker is
sentation of the workers is concerned. The trade low, councils consisting of girls will ever be worth
unionists in each department nominate one of their while. As already stated, there is no strong or wide-
members to act as shop steward, and he or she is a n spread demand among women workers for joint
ex-officio member of the departmental council. The
numbers on the councils vary, the idea being that there Including members of the administrative staff, ten councils have 12
shall be a representative of each defined section of members or less ; the othera have, respectively, 16, 20, 20, 24 and 38
members.
136 THE HUMAN FACTOR I N BUSINESS JOINT CONTROL O F INDUSTRY 137
control. They do not wish for responsibility, but only hand, 29 workers is not a large number t o represent
for comfortable working conditions and a n adminis- a body of nearly 7000. The detailed work is done
tration which is both kindly and just. by sub-committees, and on the whole I think that the
The Central Council consists of 27 administrative sense of joint control would be lessened if we were t o
representatives and 29 workers' representatives, ap- decrease the representation.
pointed by the departmental councils. It is held With regard to joint control in the departments,
monthly, and the chairman is elected by the meeting now that in each of them a shop steward is appointed
and has no casting vote. There is no limit set to the by the trade unionists, it is hoped that there may be
subjects which may be raised either a t the depart- much more frequent informal consultation with these
mental or central council meetings, except that basic officials, possibly in association with two or three
working conditions laid down in the agreement drawn directly interested members of the departmental
up by the Interim Industrial Reconstruction Committee councils. This would be a n advantage with regard t o
are ruled out. If either party desires the alteration a great number of matters which need quick decision,
of these conditions, they must apply to the National and which are not of such magnitude as t o justify
Committee. The Central Council could, however, calling the whole council together.
request the National Committee to consider such We have had some difficulty in familiarising the
alteration. All decisions of the councils, whether workers generally with the activities of the councils.
central or departmental, are subject t o the veto of So far as the departmental councils are concerned, a
the Board of Directors on the one hand, and that Summary of the minutes has been put on the depart-
of the trade unions on the other. Since, however, mental notice boards, but this hardly solves the
the councils consist of approximately equal numbers of problem. The work of the Central Council, however,
administrative officers and rank and file workers, the is given due publicity by the insertion of its minutes
Board of Directors and the unions would hesitate, in the Works magazine, which is given t o every
without good reason, to Veto a decision approved by employee.
a large majority. There are always directors present
a t the meetings of the Central Council (where the most
important matters are discussed), and they often take
upon themselves the responsibility of finally agreeing, It would weary the reader if I were to desoribe
on behalf of the Board, to matters settled in the in anv detail the kind of subiects discussed in the de-
11
council. If they are in doubt, they bring the matter partmental councils. Since, however, many employers
up a t the next directors' meeting, and inform the are considering the subject of joint coritrol, I may
Central Council if exception has been taken t o its perhaps take a n illustration. I will select the council
decision. Similar action would be adopted by the of the saw mill and wooden box mill. which consists
trade unions if occasion should arise. of four representatives of the workers'and four of the
Probably the size of the Central Council will be administrative staff. The following is a list of some
criticised. Obviously, if it were much smaller, matters of the subjects dealt with by this council during the
could be discussed in greater detail. On the other -
last year or so :
138 THE HUMAN FACTOR IN BUSINESS
JOINT CONTROL OF INDUSTRY 139
8. Allocation of Work as between Dzfferent Clusses oJ
1. Working Conditions.-Heating of rooms, light, Workers.-Very useful and important work has been done
ventilation, sanitary conditions, and comfort of workers
generally . in this connection. One of the first suggestions put for-
ward by the workers' side was that the boys on the box
2. 8afety.-For example, the provision of gates a t a nailing machines should be replaced by girls, on the ground
railway crossing, and the provision of more prominent that i t was a blind-alley occupation. This was agreed to.
notices forbidding the cleaning of machines whilst in Acting on another suggestion, provision has been made in
motion. one section for limiting the number of apprentices to be
taken On. As a result also of council discussions, arrange-
3. Suggested Improvements.-For example, (a) useful ments have been made that boys are not to be put on
suggestions of a minor character for improvements in as sawyers under eighteen years of age, and that in the
machinery ; (b) provision of tool accessories for each selection of sawyers preference is t o be given to boys who
Operator ; (C)the utilisation of waste wood ; and (d) the have worked for a proper period as ' pullers-off ' on the
use of more suitable nails. sawing machines. Work has been classified as men's work,
4. Transfer of Labour.-Establishment of a committee boys' work, and women's work respectively.
to discuss with the management what men should be trans-
ferred from the department to other departments in the On the Central Council during the last year or
case of shortage of work. two t h e following matters. among a, host of others,
have been discussed a n d settled.
5. Complaints from Emp1oyees.-Forexample, as to
(U) not being put on to piece-work, and (b) pilfering by 1. Length of Working- Week und Apportionment of Work-
fellow employees in cloak rooms. ing Hours over the Week.-The Directors offered to reduce
the working week from forty-eight to forty-seven hours,
6. Complaints by Management.-For example, as t o day rates and piece-rates to remain as before. The decision
(a) men leaving in some cases before finishing time, and was left to the Central Council, which decided to accept this
(b) inferior quality of work. offer. Later, when it was decided to ofler to reduce the
7. Piece-rates.-The establishment of a piece-rate hours to forty-four per week, again without alteration of
Committee to deal with the fixing and alteration of piece- rates, the matter was put before the Central Council, and
rates and adjustment of disputes with regard to such rates. referred by i t to the departmental councils for considera-
The committee consists of two members of the adminis- tion. When the proposal was approved, the question of
trative staff, the shop steward, and a worker representative the allocation of the hours over the week was discussed.
from the section concerned in the piece-rate under dis- The Central Council decided against certain alternatives,
cussion. The suggested rates are prepared and submitted and then submitted three final alternatives to a ballot of
by the management to the workers' representatives and the whole of the workers, voting to be on the alternative
after explanation they have generally been accepted. vote system. She proposal voted for and carried out was
The basic day wage in the shop is fixed by agreement with tliat of the five-day week, though this is not the alternative
the trade union, and the piece-rates must allow workers which the management would have selected.
of normal ability to earn a prescribed percentage above 2. Arrangements for the Annual Works Ho1iday.-A
the figure. The committee's duty is to fix rates for committee was appointed which made certain recommenda-
specific jobs which will enable such workers to earn the tions, among others that the week to be fixed should be
prescribed wages. chosen by ballot of the workers. This was done.
140 THE HUMAN FACTOR I N BUSINESS JOINT CONTROL OF INDUSTRY 141
3. Appointment of 0verlookers.-A proposal was made employees, and eligibility to join the Pension Fund was
by one of the departmental councils that, when a vacancy limited to permanent employees who joined the staff
occurred in the overlooking staff of any department, the before reaching a certain age. Difficult problems arose a t
council of that department should have the right t o make the end of the war, and the whole question of the position
the appointment, subject to the final veto of the directors. of temporary men, and the age a t which, and the condi-
After lengthy discussion a t different meetings, the arrange- tions upon which, men should be allowed to join the
ment finally come to was that, when an overlooker is to Pension Fund has been the subject of exhaustive and
be appointed, a meeting shall be held between the manage- useful discussion, ending in agreed proposals.
ment and a small committee of workers' representatives. 7. Proposed Appointment of Works Psycho1ogist.-The
The manager submits the names of one or more candidates approval of the Central Council was asked as to the appoint-
regarded by him as suitable, and the workers' representa- ment of a Works psychologist. His proposed functions
tives have the right t o offer any objections, and to submit were explained, and a committee was appointed to con-
names on their own part. After frank discussion the sider the matter. After lengthy consideration, the com-
appointment is finally made by the management. This mittee, in a report, recommended that the Council should
arrangement has subsequently been extended t o the pro- agree to the appointment upon certain conditions ; one
motion of overlookers t o higher grades. A somewhat of which was that the person to be appointed, and his
analogous arrangement, recently made, is that when in any sphere of work, should be approved by a joint comniittee.
department an administrative post is vacant, i t shall be This report was ultimately adopted by the Central
filled out of the department itself, if any person there Councjl and a joint committee appointed t o carry out
possesses the necessary qualifications. its recominendations.
4. Education.-Proposals have been made from time 8. Theft.-A Committee was appointed by the Central
t o time, by the workers, for the provision of educational Council to confer with the director concerned, with a view
facilities for overlookers and for the rank and file. These to discovering the best method of dealing with cases of
proposals have, so far as possible, been complied with, and theft, and of creating a sound public opinion on the matter
representatives of the workers have been associated with in the Works. Ultimately, i t was decided to set up a joint
the administrative staff on the appropriate committees. committee to deal with all cases of theft. The present
At the special request of the workers, week-end conferences arrangement is that this committee is to consist of six
have been held a t which problems affecting management members, three being elected workers' representatives
and the relation between Capital and Labour have been and three members of the administrative staff, with a
frankly discussed by both sides. Director in addition as chairman. There is also t o be a
5. Interpretation of Industrial Agreements.-It was found panel of three more representatives of each side, upon
that questions as t o the proper interpretation of the In- whom the chairman of the theft committee can call in
dustrial Agreements occasionally arose. These are dis- rotation if i t is necessary to fill a vacancy a t any meeting.
cussed and settled by the Council where possible. If the If, for any reason, a case is referred back for further con-
management and workers do not agree, they are sent to the sideration, or if a delinquent appeals against a decision
Interim Industrial Reconstruction Committee for decision. the case is to be reconsidered by a full meeting of the
committee and of the panel. The decision of this body is
6. Conditions of Employment : Permanent Employment to be final. So far, this committee has been very success-
und Eligibility for Pension Fund.-Until a short time ago, ful. It is interesting to note that on one occasion a decision
a distinction was made between temporary and permanent of the committee was contrary to the views not only of the
142 THE HUMAN FACTOR IN BUSINESS JOINT CONTROL OF INDUSTRY 143
chairman of the theft committee, but of the whole Board consulting the workers on all matters directly affecting
of Directors. Nevertheless, the decision of the committee them, and extending as rapidly as experience shows
was accepted by the Board. to be prudent the sphere of their real responsibility.
9. UnemploymentScheme -TheUnemployment Scheme, The difficulties in the way of this are few, and the
outlined elsewhere, was drafted by a committee partly advantages are real. I n our own case, I think that the
appointed by the directors and partly elected by the establishment of the councils has certainly resulted in
Works Council. It is worked by a committee appointed a better mutual understanding between the rank and
by the Central Council, whose decision is final.
file workers and the administrative staff. They afford
an opportunity for the free and frank discussion of
all kinds of questions concerning working conditions ;
and where requests made by workers are not conceded,
Let me now try t o summarise the purpose the the reasons for their refusal can be explained in detail.
councils serve, and indicate the possible lines of If the explanation is not accepted, the workers' point
development in the future. of view can be still further emphasised, and thus,
The words 'control' and ' joint control' are whatever decision rnay ultimately be arrived at, both
ambiguous, and not calculated to give the best expres- parties become familiar with all the arguments urged
sion t o the idea which we have in mind. I have on either side. They afford, too, an opportunity for
continued t o use them because they are so generally the workers t o get a n insight into the difficult problems
accepted. I should like, however, a t the outset, t o with which management is constantly faced, and they
make a sharp distinction between executive work and tend to develop a sense of responsibility. They
the work of laying down policy and revising executive undoubtedly form a first step to the granting of such
decisions. The former must be left to individual re- a share in responsible control as rnay be found prac-
sponsibility : without that, efficiency could not possibly ticable, and we find that we are able, with advantage
be maintained. The latter can be performed with ad- to the business, steadily to increase the number and
vantage by a committee, indeed, a Board of Directors importance of questions in which the final responsi-
is such a committee. When, therefore, we speak of bility rests with the councils.
sharing control with the workers, we are using 'control ' If we look t o the future, and rule out financial
in the latter sense of a determination of policy. and commercial management as not yet within the
Again, such a share in control rnay take two forms. scope of joint control, I think that the matters with
The workers rnay simply be taken into consultation, regard to which it rnay suitably be exercised fall under
or they rnay be given a real share of responsibility. four main heads. These are the application of wage-
The adoption of the former course only will certainly agreements made with the trade unions to special
not meet the demands of the workers. On tEe other jobs or conditions in the factory, the improvement
hand, it would obviously be unwise suddenly t o hand of processes and of works organisation, questions of
over any large measure of real responsibility to persons works discipline, and ' welfare,' by which I mean all
who had not been trained to exercise it. questions affecting the comfort and health and well-
I think the right course is to adopt both methods, being of the workers.
JOINT CONTROL OF INDUSTRY 145
144 THE HUMAN FACTOR 1N BUSINESS
in themselves to justify the cost, in time and otherwise,
As already stated, in the Cocoa Industry minimum of a system of departmental councils. While, there-
wages are determined by the Trade Board or the fore, the improvement of processes or organisation is
Interim Industrial Reconstruction Committee, and it a subject which may very suitably be discussed in
is becoming more and more usual in industry for basic joint committees of workers and the management,
wages t o be settled on a national basis. It is doubtful we must not expect t o see any startling results.
whether it is really desirable for Joint Industrial As regards discipline, there is a considerable sphere
Councils or Interim Industrial Reconstruction Com- of useful activity for councils in the future. I See no
mittees to deal with this subject. Some of the most reason why all shop rules should not be drawn up by
successful refrain from doing so, and there are dis- them, instead of being issued by the management,
tinct advantages in settling basic wage rates by nego- with or without consultation with the workers. It
tiation between the Employers' Pederation and the should be the duty of a council t o formulate a complete
trade unions concerned. Certainly, this may be called set of disciplinary rules, covering time-keeping, punish-
joint control, but it is not the kind of control which ment for various offences, such as theft, and so On.
the workers desire, being really only the organised But i t is not enough that the shop rules shall be
play of economic forces. Works councils and com- mutually agreed upon. A great deal depends upon
mittees are, however, perfectly suitable bodies t o discul..s the way in which they are administered, and I think
questions of the interpretation of a national wage that the workers may rightly claim to have some
agreement with regard to any particular process or voice in this matter. As already stated, in our own
job, though tlzis will not be their main function. factory we have admitted their right t o be consulted
As regards the improvement of processes and works before anyone is promoted t o an administrative post.
organisation, I believe t h a t some employers, and others This fact, although the ultimate appointment rests
who have advocated the system of works committees, with the management, is a safeguard against the
expected to reap valuable suggestions for the improve- promotion of persons who would not administer shop
ment of processes. I have never expected this. If rules justly. There remains the question of dealing
a worker has a really valuable suggestion, he will voice with the case of any worker who believes that some
it through other channels. If, as is the case in our injustice has been committed in the administration
factory, there is a suggestion scheme, with a system of of discipline. It is not an unreasonable suggestion
prizes graded according to the value of the suggestion, that in every works a disciplinary appeal committee
he will make it through that . Otherwise, he will prob- should be established. It might consist, say, of two
ably put it before his manager, or a director, in the workers, two members appointed by the management,
hope of a suitable reward. Discussions have been and an agreed chairman (from within the works), and
raised by foremen and managers in our departmental would be a body to which any worker might appeal
councils, with a view to encouraging proposals for in a matter of discipline, and whose decision would
possible improvements in processes, and while I do not be final. Some employers might suppose that this
wish to minimise the value of suggestions which have policy would weaken the power of the management,
been made in the Course of such discussions, there is but I do not think that would actually be the case.
no doubt that they have not been of such value as
146 THE HUMAN FACTOR I N BUSINESS JOINT CONTROL O F INDUSTRY 147
If a manager or other officer were not quite Sure so far fall under the head of ' working conditions.'
whether a man should be disrriissed, or suspended, So far as financial and commercial control are con-
he might submit the matter to the disciplinary com- cerned, I doubt whether we can go any distance unless
mittee, and this would obviate any danger of the there is joint responsibility for the financial stability
reversal of his decision on appeal. I n other words, of a business.
he would only act when he felt Sure his action would Finally, the question will arise whether in addition
be supported by an impartial body. Directors and to, or in place of, a share in responsibility in certain
managers need not fear the adoption of such a course, defined spheres, tlie workers should be represented
which, in my opinion, woiild tend t o strengthen rather on the Board of Directors. We have not adopted this
than to weaken discipline. Tf the suggestion outlined course a t the Cocoa Works, since i t entails certain
above were adopted, if all disciplinary rules were definite disadvantages. If, on the one hand, worker
mutually agreed upon before they were enforced, directors were appointed for a short time only, they
if the names of candidates for administrative posts would be handicapped a t the directors' meetings, where
long erperience of the business, with its many problems,
were submitted to a committee of workers before
is essential to taking part usefully in the discussions.
promotion took place, and if a n appeal could be made
t o a n impartial committee against any act of disci- On the other hand, if, once appointed, they practically
remained on the Board for life, they would tend to get
pline which was considered harsh or unjust, the Status
of the workers would be sensibly raised, and there out of touch with their fellow workers, and the purpose
would be greater harmony in factories. The carrying for which they had been elected would not be fulfilled.
Moreover, they would be asked to consider a great
out of these proposals would afford a valuable field
number of questions concerned with the commercial
for the activity of works councils? and financial sides of the business, with which those
With regard to welfare, this is obviously a matter
whom they represented were not directly coneerned.
for councils to deal with, and in connection with it Before coiicluding this chapter, I must add a word
there is a great scope for their energies. as to the relation of the MTorkscouncils to the trade
All the matters with which we have been dealing
union movement. When first we suggested the
1 Since the above was writtcn, steps have been taken a t the Cocoa
inauguration of councils a t the Cocoa Works, our
Works to put into practice what 1s here advocated. All existing Works proposal was looked a t very doubtfully by the trade
Rules are being considered by a committee of the Central Council, con- unions, wlio thought that its effects might be to
aisting of equal numbers of representatives of the workers and of the undermine their authority. The matter was carefully
administrative staff. When a. complete list of rules has been agreed on -
by the committee and coiifirmed by the cential council, this will be discussed with them, and eveiitually they were per-
signed by rrprcsentatives of the workcrs and management and become suaded that the unions would not be weakened, if
operative, and i t will only be altered or added to by mutual conaent.
Arrangements arc also bcirig made for the appointmcnt of an appeal they had the power to veto any decision and t o
committee of two workers elected by the worker menibers of the central discuss it with the directors. I n practice, there has
council, two persons appointed by the directors, after consultation with been no opposition between the unions and the
representatives of tbe administrative staff, and a. chairman selected by
these four. Anyone complaining of harsh disciplinary action may councils, and certainly the fears originally entertained
appeal to the committee, and its dccisions will be final. It will be by the former have not been justified.
empowered to increase as well as confirm or decrease penalties.
CONCLUSION 149
-days in which workers were regarded merely as
instruments, to be used to pile up profits for the factory
owner. The public conscience, powerfully stimulated
by the trade union movement, is demanding that
working conditions shall be humanised. This does
not mean coddling the workers, or adopting a paternal
attitude towards them. That would be almost as
CONCLUSION strongly resented by every worker of independent
spirit as was the callous indifferente displayed by the
WHENacting as the Director of the Welfare Depart- average employer in the early part of the nineteenth
ment a t the Ministry of Munitions, it was once my duty century. But though the workers refuse to be treated
to interview the director of a large firm, and ask him with benevolent paternalism, they demand that
to introduce certain welfare conditions into his factory. industry shall be so organised that proper considera-
He told me, quite frankly, that he regarded the whole tion shall be given t o their individual welfare. If
thing as a fad. ' It's your hobby,' he said to me. they are to CO-operatein producing a high output
' Now, rny hobby happens to be old china ! ' of goods, which will compete successfully in the world
That represents the attitude of one clsss of market, they rightly demand, in their working lives,
employers towards organised effort to introduce the conditions which will enable and encourage them to
best possible working conditions into factories. give of their best.
Another view is represented by an American firm well It will, I know, be maintained by some readers that
known for the elaborate arrangements made for the the suggestions referred to in this book are too costly
welfare of its employees. I n the room where visitors to be generally adopted. But similar arguments have
are received, a large placard is displayed containing been urged against every proposed improvement in
the two words-' I T P A YS.' industrial conditions, and events have proved them to
Here we have two widely divergent views. Where be mistaken.
does the truth lie ? I am inclined t o think that the The fact is that, in connection with such industrial
right verdict to display on a placard such as I refer reforms as we are here considering, we are inclined
to above would be-'It's the only wsy in which only to emphasise one side of the account. The g o s s
business can be successfully carried on under modern cost of improvements can be accurately gauged, but
conditions.' we cannot demonstrate, in uncontrovertible figures,
I am quite Sure that the attempt t o establish an the value of the various items which appear on the
ideal working environment is not the fad of a senti- credit side. Nevertheless, we shall agree that, purely
mentalist. Nor is i t a counsel of perfection, which as a practical proposition, it would be worth a great
can only be adopted by a wealthy firm. We have deal to secure a substantial measure of industrial
travelled a long way since the days of those early peace, and the cordial CO-operationof the workers in
factories so vividly described by Mr. and Mrs. rendering industry more efficient. These would be
Hammond in their olassic work, ' The Town Labourer ' business assets of the very utmost importance.
CONCLUSION 161
160 THE HUMAN E'ACTOR IN BUSINESS
with it, march through our towns as they did in
But employers cannot secure them unless they are August 1914. And this is not a unique experience.
willing to pay the price. We can obtain industrial Last autumn witnessed identically similar conditions.
harmony, but only on certain terms. The question According to the Ministry of Labour Gazette there
is whether the terms are too high, and I do not think were in the month of February 1921, 112 strikes and
they are. On the contrary, I believe that if satis- lock-outs in Great Britain, involving a loss of 378,000
factory schemes of reform were carried through, both working days. How can we hope to make good the
workers and employers would actually be better off. material losses of the war, or to raise the standard
Those who shrink from such schemes because of the of comfort of the workers, when industry is such a
outlay involved are still thinking in terms of the old bear-garden ?
pre-war conditions which to-day have ceased to exist. But why do these things occur ? Why are men
I do not suggest, of Course, that improvements should openly quarrelling, or sullenly grumbling, instead of
necessarily foElow the lines indicated on the preceding working harmoniously together ? If this is an inevit-
pages, nor do I minimise the fact that they will cost able outcome of the capitalist system of industry,
money. But the point I want to make is that the one can understand the point of view of those who
expenditure necessary to establish good working say ' Let us scrap it, and try to find something better.'
conditions will not in the long run increase the cost But many of us are not yet cunvinced that turmoil,
of production. It will raise the industrial organisa- strikes, and lock-outs, with all their terrible waste of
tion to a higher potential ; a greater cost will appear productive effort, are inherent in capitalistic industry.
on one side of the account, a greater output on the I n any case, we believe that it is worth while, even
other. under the present system, to seek out and remove
What is the alternative ? It is to See industrial the causes of these evils, so far as that is possible.
efficiency progressively weakened by strikes, lock- It is as futile for the employer to rave against the
outs, and ca' canny, with all the other features of idleness and intolerance of the working man, as i t is
class strife and labour unrest. That is not a pleasing for the working man to rave against the greed and
prospect, from whatever point of view ! selfishness of the employer. It may relieve their
The spirit of serfdom is gone for ever. The war feelings, but it does not make for peace or Progress.
removed the last traces of it. At present, industry Why is Labour restless and discontented ? I have
is more like a field of battle than a field of human already referred to the psychological effects of the war,
Service. As I write,l every coal-mine in the country but Labour Unrest is not a post-war phenomenon.
is idle, wbile the lack of coal is closing factories by If we desire industrial peace ; if we wish men to
hundreds all over the country, and queues of people get on with their work whole-heartedly, instead of
wait anxiously to buy half a hundredweight of coal. A ' devoting sixty per cent. of tlieir time to doing their
railway and transport strike was averted last week by work and forty per cent. to doing the boss,' their
a hab's-breadth. Hundreds of thousands of reservists real grievances must be removed. When that is done,
have been mobilised to quell possible disorder, and we shall not be seriously troubled with imaginary
squads of men, some in khaki, some not yet supplied grievances : for it is curious how these are apt to
April 20, 1921.
162 THE HUMAN FACTOR IN BUSINESS
disappear with the real ones. I n the preceding pages allowed a reasonable time limit, would be regarded
I have indicated the principal conditions which must as parasitic, and its failure to survive would be no
be observed if we are to secure industrial peace. First, loss to the State?
there must be a basic wage which will enable men Already wages in thirty-eight industries are
to live in reasonable comfort, and then careful adjust- regulated by Trade Boards. I would urge employers
ment of wages above this minimum, according to the on these Boards, as well as other employers whose
value of the service rendered. The closest possible wage rates are still unregulated by statutory action,
attention should be given t o all wage questions, to aid in hastening the day when low wages are a
which must be treated from the standpoint of the thing of the past. Not until then can we hope for,
individual concerned, and not in the mass,l and all or should we desire, industrial peace. If only the
grievances must be dealt with as soon as they are workers in low-paid industries who are trying to
discovered. secure higher wages felt that employers were
I am aware that many industries, to-day, cannot endeavouring, no less earnestly, to achieve that end,
afford to pay their least skilled workers a wage suffi- there would be much less electricity in the air !
cient to enable married men to live in a decent house, I refer to wages first because, until these are fixed
end to maintain a household of normal size in physical on a basis which the normal workman regards as fair,
efficiency, with a moderate margin for contingencies it is futile to look for harmony. Wages, however,
and recreation, and any attempt to force a materially are only the foundation-stone of the industrial ' palace
higher wages bill immediately upon employers might of peace.'
even ruin the industry. But this is not to say that Next in importance to low wages as a cause of
things should remain as they are. labour unrest is the economic insecurity of the
I have not dealt, in this book, with legislative worker's life. It is essential that this evil should
action in relation to industry ; or I should have be remedied, and I have suggested means by which
argued the case for making it a statutory duty, through an individual firm can, in large measure, meet the
Trade Boards or otherwise, for all trades to pay, needs of the situation. That adequate unemploy-
within a specified period, say five or seven years, a ment insurance and old age pensions are costly cannot
wage sufficient to enable men to live in accordance be gainsaid. But that is only one side of the picture.
with the above standard. Spurred on by this It is impossible to deny that the workers are right,
statutory obligation, I believe that practically every in regarding as unjust the hardships which they
industry could so increase its efficiency as to meet suffer in periods of unemployment brought about
the wage demands made upon it. Any industry through no fault of their own. It is impossible t o
which could not pay a proper wage, after being 1 Thia is true of pmtically aii industries, but if it were really shown
It may be urged that when wages are fixed nationally, as in the that agriculture as a whole, including both good and bad fermeni,
case of the railway men, there is no such need for detailed attention to could not pay an adequate wage, steps to m:et the situation would be
the wages of individuals as exists in industries which have no definite necessary, since obviously we couM not scrap ' agriculture. But
acience has much in store for us in this field of activity, and it ia by no
national Standard, and where men often work on ' piece.' But conver- mesns certain that agricultural workers niwt slways be comparatively
sation with a group of railwaymen will soon convince one that, even
with a national standard, many individual problems arise. poorly paid.
164 THE HTJMAN FACTOR I N BUSINESS CONCLUSION
justify conditions which condemn a man, after a control of business can be given t o workers, unless
long life of toil, to end his days in want, because he they are directly interested in the prosperity and
has never been able, even though thrifty, to lay aside financial stability of the enterprise with which they
enoiigh for his old age. The waste of energy and of are associated. I believe that some method of attain-
efficiency occasioned by these grievances is greater ing this end must be devised, if we are t o establish
than the cost of removing them. industrial peace. At present, although increasing
Turning to other causes of unrest, I need not prosperity in a business or industry is a n advantage
dwell on the folly of allowing uncomfortable or t o the worker, because it provides a fund from which
unwholesome working conditions t o continue. The higher wages may be drawn, still, before he gets those
remedy for these is comparatively simple. It is a wages there will be negotiations, in which employer
great mistake to imagine that a factory must be and worker often represent opposing interests. I n
palatial before it can be comfortable ; what is needed Chapter 11. I have roughly outlined certain sugges-
is sympathetic consideration for the workers. I n a tions as t o how the desired end can best be achieved,
word, act, in relation to all working conditions, as but much further time and thought should be given
if your own children's comfort and well-being were to the question.
involved. Expenditure is certainly necessary, but not Lastly, as a condition of industrial peace, I have
always cash expenditure. Sometimes we need to draw emphasised the importance of what I may define as
more freely, not on our banking account, but on our courtesy and consideration in industry. A great
imagination. deal of unrest is due simply to the lack of these.
I come now to the worker's status. He resents This brief review of the subjects we have con-
the continuance of what some of his rhetorical spokes- sidered, and their relation to industrial peace, will
men describe as 'wage slavery.' The question of sufficeto refute the Charge that the activities described
giving Labour a share in the control of industry is are the outcome of sentimentalism. But neither
one of immense difficulty, but i t must be faced. The should they be viewed merely from the narrow stand-
rapidity with which the demand for control has point-' Does it Pay ? ' Careful and systematic
developed is striking, but not more striking than the attention to the human and psychological aspects of
growth of the desire to meet it on the part of einployers. industry is not something to be put On, or taken
I n this connection, however, it is essential to move off, as freely as a n overcoat. It is not philanthropy
with caution. Any rash procedure might lead to a on the one hand, or cute hard-headedness on the other,
serious lowering of business efficiency, which would that will bring peace. It will only come when Labour
be especially disastrous when we are endeavouring is convinced that employers generally recognise the
t o establish the highest possible Standard of real human aspect of industry, and are anxious, not only
wages. t o give the workers ' a square deal,' but t,o promote
I have indicated some of the developments in this their individual welfare.
direction which I regard as immediately possible ; I n all that I have written I have assumed that
but we shall only be courting disappointment if we industry is conducted on a capitalistic basis. To
fail t o recognise that no very substantial share in the query this would be to enter on a very wide field
166 THE HUMAN FACTOR I N BUSINESS
of controversy. Personally, I have a perfectly Open
mind as regards the best mode of conducting industry
in the future. But any attempt t o change the in-
dustrial basis suddenly would be t o bring about
disaster, which, in a highly industrialised country
such as Great Britain, might well be irretrievable.
While, therefore, we are considering all possible
future developments, do not let us neglect the present. AYYENDICES
There are many reforms which are urgent, on which
a large measure of agreement already exists. Let
all those who are responsible for the conduct of in- APPENDIX I
dustry, while not shrinking from the contemplation MEMORANDUM ON UNEMPLOYMENT INSURANCE DRAWN
of vaster reforms in the years t o come, seek t o deal UP BY THE COMMITTEE OF EMPLOYERS AND
promptly with those evils which admit of immediate LBBOUR MEN
remedy.
I n conclusion, I would suggest that industry WE consider that the State should deal with this problem
on effective and permanent lines. It should admit the
should be regarded, not primarily as a means of
claim of all adult wage-earners who are willing to work and
promoting the material welfare of groups or indi- capable of working to either suitable employment or
vidual~,but as a great national service, endeavouring adequate maintenance throughout their working lives, and
t o realise three ideals. These are : it should satisfy that claim by legislation providing unem-
1. Industry should create goods or provide ployment benefit varying with the needs of the worker
end his family (with a maximum).
services of such kinds, and in such measure, Our detailed proposals are as follows :
as may be beneficial t o the community.
2. I n the process of wealth production, industry (1) Definition of ' insured Persons.'-Subject to certain
should pay the greatest possible regard t o exemptions referred to later, the statute embodying the
the general welfare of the community, and scheme should apply to all manual workers, and to salaried
workers receiving not more than £400 a year, between the
pursue no policy detrimental t o it. ages of sixteen and seventy. The exemptions should be
3. Industry should distribute the wealth pro- those Set forth in the Unemployment Insurance Act, 1920.
duced in such a manner as will best serve (2) Rate of Benefit.-The rate of benefit should be fifty
the highest ends of the community. per cent. of the average earnings of the insured Person,
with ten per cent. additional for a dependent wife, and five
per cent. for each dependent child under sixteen, provided
that the total benefit should not exceed seventy-five per
cent. of the average earnhgs, nor should it in any case
exceed £5 per week. In the case of seasonal or other ex-
ceptional trades, special provisione should be made for the
168 THE HUMAN FACTOR I N BUSINESS APPENDICES 159
calculation of the earnings on which the rate of benefit is
based. Benefits should be payable after three days' uncm- seven years' working, the State should take the full benefit
or bear the cost of this. The Government actuary should
ployment, and should be limited to one week's benefit for
every six weekly contributions previously made ; but in then re-assess the contributions for a further period of
order to give the necessary sense of security from the seven years on the experience of the previous term, the
beginning an adequate number of payments should be Government's contribution continuing to be the original
credited to all workers a t the initiation of the scheme. figure of four million pounds, plus administration expenses.
The present limitation of benefits to fifteen weeks in any According to our estimate the cost of the scheme would be
one year should be altered to one of twenty-six weeks. If divided among the three parties during the first period in
the reactions sought are to be obtained we must aim a t the following proportions :
removing the menace of unemployment. We favour the State . . 4 million pounds.
limitation of benefit to one week for every six weekly Workers .153 million p0unds.l
contributions as a necessary safeguard against persons Employers . .37 million p0unds.l
who are such unsatisfactory workers as to be practically Our suggestion is that while the workers' contributions
uninsurable. should be the Same in all industries, the State, as soon as
(3) The Cost of the Scheme.-We have made such estimate the necessary statistics become available, should have power
of the probable cost of the suggested scheme as was to vary the employers' contributioils in a given industry,
possible with the materials a t our disposal. We place the according to the amount of unemployment in that industry.
figure a t about fifty-six million pounds per annum, exclusive ( 5 ) Short Time.-Under the Unemployment Insurance
of the cost of administration. Act, 1920, paragraph VII., Clause 2 (b), those suffering
from under-employment can claim unemployment benefit
(4) Sources and Amount of Contributions.-The contribu- under certain conditions. In view of the increased
tions should be levied on the wage-earner, the State, and benefits here proposed, the inducement so to organise short
the employer. It is suggested that the worker's contribu- time as to comply with the conditions will be greater than
tion should be a t the rate of one penny on every complete under the terms of the -4ct with its comparatively small
ten shillings or part thereof of his earnings ; that the benefits. This fact has been taken into account in framing
State's contribution should be four million pounds annually, the above estimates.
plus the cost of administration ; and that the balance (6) Contracting Out.-Contracting out is contemplated,
needed to enable the fund to pay the statutory benefits as under the present Act, but in the present state of trade
shouid be raised by a levy on employers. It is estimated it is unlikely to take place on any large scale. An industry
that this levy would amount to two per cent. on the wage that contracts out would be required to collect the statutory
bill. That the scheme may be put into early operation and rate of contributions from the workers, and to pay the
financed during abnormal trade depression, it is proposed statutory rate of benefit. The State would contribute a t
that the employers' contribution should be fixed for a term the Same rate per worker as under the general scheme, t ~ n d
of (say five or seven) years a t an amount which it is esti-
mated will enable the fund, if the worker contributes the employer whatever was necessary to provide the
twopence in the pound on wages and the State its fixed benefits.
contribution, to bear the statutory claims upon it. The (7) Administration.-We suggest that the method of
State should then act in practice in the capacity of an administering the fund should be that set up under
Insurance Company. If there is a profit or a loss on the the Unemployment Insurance Act, 1920.
These amounts will vary with the rates of wages.
160 THE HUMAN FAC!I!OR IN BUSINESS
APPENDICES 161
We are advised that with certain greatly needed and
practicable alterations in the administration of the Employ-
ment Exchanges i t will be possible to prevent malingering.
The Scheme Sumnzarised.-The chief points in our 2. The scheme will come into force on 1st January, 1921,
proposal are as follows : and will apply to all persons (male and female) between
age 20 and pension age, employed by the Company on whole
(1) Unemployment benefit takes the form, not of a fixed time service within the United Kingdom, who, immediately
amount, but of a proportion of the worker's regular prior to their unemployment, have been in the employ of the
wage, adjusted to the number of dependents. Company for a continuous period of six months, or in the
(2) Whilst the worker's and the State contributions case of the Building Staff for a period of three years either
are fixed, the tmployer's contribution varies, continuously or broken by periods amounting in the
being made to bear the residuary cost of aggregate to not more than two months.
unemployment in his industry. Note.-To be eligible for benefit, euch persons must prove
thet they have made, for the neceesary period, the payment
The proposal is supplementary to the Unemployment of 2d. per week provided for in Clause 13 (2).
Insurance Act (1920). That, and previous Acts, will have
established the whole administrative machinery needed to
work the proposal, which could thus be grafted on to the UNEMPLOYMENT
FUND
existing system. 3. The Company will set aside on the institution of the
Essentially the proposal is one to compel industry to scheme a lump sum of £10,000 to found the Unemploy-
create a wages equalisation fund, and to give employers ment Fund. It will also in each year commencing with
an incentive to eliminate every removable cause of unem- the year 1921 set aside sums equal to 1%of its wages bill
ployment. It is suggested that not only would such a during such year, until the Unemployment Fund reaches
policy be worth almost any cost in the suffering which i t £50,000, or reaches 5% of the wages bill for the time being
would alleviate, but that it would prove in practice to be (whichever is the greater). Thereafter the Company will
just as sound a policy financially as is a Dividends set aside annually such Sums (not exceeding 1% of the
Equalisation Fund. wages bill) as are necessary t o keep the Fund up to the
amount mentioned above.
APPENDIX I1
FULLUNEMPLOYMENT BENEFIT
UNEMPLOYMENT BENEFIT SCHEME
ROWNTREE & CO., LTD.
4. Subject to Clause 5, full unemployment benefit will
be a t the rate of :-
Note.-This scheme has been amended in certain respects
since it was first completed. The followmg waa its form (U) 50 per cent. of the average earnings of the unem-
on July 4, 1921 : ployed Person ; and
(b) 10 per cent. additional for a dependent wife ; and
(C) 5 per cent. additional for each dependent child who
1. The object of this scheme is to remove as completely
as possible from the minds of the Company's workers any is under 16 years of age or is receiving full-time
anxiety which they may feel through the possibility of instruction a t a school, university, college or other
unemployment through trade depression. educational establishment,
with a maximum of 75% of the average earnings or Y£5 a
162 THE HUMAN FACTOR IN BUSINESS
week, whichever is the smaller, and a minimum of £1 58. a (b) I t will be noted that in the case of a single woman
week. 50% of 453. would be less than 25s., and therefore
the minimum is substituted.
5. The full unemployment benefit will be reduced by (C) Benefit is only payable in respect of a dependent wife
a sum, in the case of men, of 21s. a week, and in the case of or child.
women, of 18s. a week, these amounts being considered
t o represent the sum t o which in most cases the State 6. The conditions for receipt of full unemployment
benefit could, whilst i t continues, be made up for the con- benefit are :-
tribution of 2d. a week mentioned in paragraph 13 (2).
(1) That the unemployed Person has made application
Note A.-The amount of State benefit is 15s. in the case for such benefit in such manner as may be pre-
of men and 12s. in the case of women; the sum of 6s. per
week is h i n g paid as supplementary unemployment benefit scribed, and proves that since the date of the
by the union with the lagest membership in the Works application he has been continuously unemployed,
(in return for a weekly contribution of 2d.) ; and the figures and
of 21s. and 18s. are arrived a t on this basis. I t must be
understood, however, that these deductions are made in (2) That he is capable of, and available for, work, but
every case, whether or not the sum in question, or a greater unable t o obtain suitable employment,
or less sum, is in fact received by the unemployed person. provided that a person shall not be deemed to have failed
The figures of 21s. and 18s. were increased to 26s. and
22s. when the State benefit was correspondingly increased, t o fulfil these conditions by reason only that he has
and again reduced when the State benefit was reduced, and declined :-
it is anticipated that the same thing will occur in the case
of future alterations. (U) An offer of employment in a situation vacant in
consequence of a stoppage of work due to a trade
Note B.-Assuming the average earnings of a man to
be 80s. per week and of a woman 45s., the following will dispute ; or
illustrate the effect of Clauses 4 and 5 : (b) An offer of employment a t a rate of wage lower, or
on conditions less favourable, than those generally
I I I
Qross ' ~ m o u noft
obtained or observed in the district of such
employnient by agreement between associations
,
figure Deduction Supple-
':E,":
earnings.
Average provided
easaings. for by
under I mentary
Clauae 1Unem- of employers and employees in employments of
Cause
4.
6.
~2~;;n;t
the Same nature as that of his usual employ-
I ' - - ' -
ment, or, failing any such agreement, than
those generally recognised in that district by
% 8. S.
Single man
Married man
. 60 80 40
good employers.
. .. ... .1.
(U) Single Man. 8. d.
The time lost in the thKd week is 100%, but from Wages-Two weeks a t 45s. 90 0
this is to be deducted three times the weekly average Benefit-State 2 0
Trade Union 6 0
of 10%, or 30%, which ia borne by the employee,
leaving a net percentage of 70% of a week to be
paid for under this Scheme. The percentage of
Supplementary . . . nil
earnings under Clause 4 in the case of a single man 3)108 0
ia 50%. The gross figure under Clause 9 wiii there- Average income per week, 80 % of
fore be :
8. G?.
average earnings, or . . . 36 0
7 0 % of 60 % of 80e. . . . 2 8 0 Note B.-The case which the second proviso to Clause 9
is designed to meet ia as foilows :-Suppose that it is
R o m this ia to be deducted. under
Clause 10, three tim& 3 3 i %, or decided that a department must work 33b % of short
100 %, of 21s. . . . . 2 1 0 time and that this is to be done by one-third of the employees
being laid off each week, and suppose that those in the
Leaving partial unemployment benefit. 7 0 &st week's group are laid off accordingly and are paid
partial unemployment benefit on a 336 basis ; and then
Assurning the person to receive Trade Union it is found that the volume of work is greater than was
benefit a t 6s., in addition to State benefit a t 158., expected and that it will be sufficient if the employees are
hia income over the three weeks would be : off only one week in four, and the average is thus changed
from 3 3 ) % to 25 % ; then, in the abaence of this proviso,
8. d.
Wagea-Two weeks a t 808.
.
.. .. 160 0
the employees who were off the h t week would have
been overpaid to the extent of the differente between
Benefit-State
Trade Union
Supplementary
... .. .
.
1 6 0
6 0
7 0
25 and 334 %. The effect of this proviso is that in
such a case such men shall not be asked to refund thie
difference. On the other hand, if the average had been
altered from 3 3 ) % to 50 X, then the employees who
were off the first week would have their partial unemploy-
Average income per week, 7 8 % of ment benefit made up to the extent of the difference
average eamings, or . . . 82 8 between a basis of 3 3 ) and a basis of 60 X. This
proviso haa been inserted since the commencement of thia
(b) M a W lnan with three chüdren. Scheme and as a result of ditnculties in working.
I n this case the calculation would be the same, 11. No partial unemployment benefit shall be payable
save that the percentage under Clause 4 would be
75 % in place of 50 X, which wouid bring the in respect of time lost during any given period in which the
supplementary benefit up from 78. to 218., and the employed person shall, without leave, be absent on any
average income to 84 %, or 67s. 4d. day on which work is provided for him.
(C) Single Womn.
I n this caae 50 % of 46a. would be 228. Ba., which
ia less than the minimum of 26s., and therefore 25s. 12. Employees who, as being only on the auxiliary
would be substituted for it.
staff, are members of the existing Unemployment Benefit
.. .. 8. Cl.
70 % of 268. is . . 1 7 6 Fund, will have the option of continuing that benefit and
Deduct . . . . 18 0 being excluded from this scheme. If, however, they decide
Leaving supplementary benefit . . nil
to take advantage of this scheme, the existing Unemploy-
ment Benefit Fund (which will henceforth be called ' The
Asswning the person to receive 6s. fiom her Union, Auxiliary Retirement Fund ') will in their case apply only
her inoome over the three weeks would be : to retirement on reaching 65.
170 THE H W FACTOR IN BUSINESS APPENDICES
(3) If he fails to prove t o the satisfaction of the Un-
GENERAL employment Committee that he has effccted and
13. A person will be disqualified for the receipt of kept effective a suitable registration a t the proper
unemployment benefit :- Employment Exchange and has used his best
endeavours to obtain suitable employment.
(1) If he has lost his employment through his mis-
conduct or misbehaviour, or has voluntarily left (4) If he is in receipt of or entitled to any sickness or
the employment of the Company or any other disablement benefit or disablement allowance
employment which he has obtained after leaving under the National Health Insurance Acts, 1911
the employment of the Company ; to 1920, or any compensation under the Work-
men's Compensation Acts ;
(2) If he fails t o prove t o the satisfaction of the Unem-
ployment Committee that he has for a period (5) If his unemployment is owing to a stoppage of work
of six months immediately prior t o the com- directly due to a trade dispute, whether a t the
mencement of his full or partial unemployment, Company's works or elsewhere, but such dis-
or for the whole period between the expiration qualification shall only apply so long as the trade
of two calendar months from the commencement dispute continues ;
of the scheme and the commencement of his full (6) If he has exhausted his right to unemployment
or partial unemployment (whichever is the benefit under this scheme ;
shorter) contributed t o a Trade Union or other (7) Whilst he is an inmate of any institution supported
Society a sum or premium of not less than 2d. wholly or partially out of public funds or is
per week for the purpose of assuring a weekly or resident, whether temporarily or permanently,
other periodical payment during his unemploy- outside the United Kingdom.
ment, or such other sum or premium as shall be
sufficient t o assure a weekly or other periodical 14. The Company may make and amend regulations,
payment equivalent t o 6s. per week ; increasing or decreasing the amount of or varying the condi-
Note.-The effect of this provision is that a person must tions as to unemployment benefit or for the administration
show that he has paid for a certain period to a Trade Union of the scheme, but any regulations decreasing the amount
or other Society (and in addition to the State Contribution) or period of unemployrnent benefit or increasing the deduc-
a sum of not less than 2d. per week towards additional tions therefrom or the period of employment qualifying
Unemployment Insurance. Thii payment is t o be made
either :
therefor shall only be made with the consent of the Central
Council or after three months' notice by the Company of
(a)For the six months immediately prior to the com.
mencement of unemployment ; or the intention to make the same.
( b ) For the full period between Ist March 1921 and
such commencement, whichever is the shorter. 15. Unemployment benefit cannot be assigned or
If a smaller sum than 2d. per week will secure a n additional charged, and on the bankruptcy of the unemployed person
unemployment benefit of 6s. Per week, then the smaller the benefit would not pass to the Trustee or other person
payment will satisfy this condition. acting on behalf of his creditors.
The reasons for this provision are first, and chiefly, 8
desire to protect the position of the Unions, and secondly, 16. Unemployment benefits will be administered by a
a feeling that help should be confuied t o those who are Committee called ' the Unemployment Committee,' ap-
prepared t o make some voluntary effort on their own
behalf. pointed by the Oentral Council and oonsisting of nine
172 THE HUMAN PACTOR I N BUSINESS APPENDICES 173
persons (of whom a t least two shall be women and one shall standard period '), provided that where the rate
represent the outside advertising and dep6t stafi), whose of wages in force during any period of unemploy-
decision will be final. ment shall be greater or less by not less than
17. No person will be eligible for appointment on the 10 % than the rate or average rate in force during
Unemployment Committee unless actively engaged within the standard period, the amount of the average
the United Kingdom in connection with the business of the earnings shall for the purpose of this scheme be
Company, and if any member of the Committee ceases t o increased or reduced by an amount bearing the
be so engaged his office will be vacated. Casual vacancies same proportion t o such average earnings as the
on the Committee will be filled by the Central Council. increase or reduction in such rate of wages bears
t o the rate or average rate in force during the
18. The Company will be entitled to discontinue the standard period.
scheme if an adequate scheme of industrial or national
unemployment insurance Comes into force, or may, on Note.-The purpose of the proviso to Clause 19 (3) is t o
secure that, broadly, changes in the rate of wages shaii be
giving three months' notice, reduce or discontinue its con- followed by corresponding changes in amount of unemploy-
tributions to or terminate the Fund, but such notice will ment benefit. For example, if a person is discharged on
not relieve the Company from contributing t o the scheme the 15th April, his unemployment benefit would be based
up to the termination of such notice. upon his average earnings during the quarter ending on
31st March, but if the rate of wages during that quarter
19. Por the purposes of this scheme the masculine were 100s. and on the 1st May this rate were reduced to 908..
gender shall include the feminine, and :- then his average earnings for the purpose of calculating
unemployment benefit would, from the 1st May, be reduced
(1) ' Central Council' means the Central Council a t also by 10 %. I n the Same way, if there were an increase
in the rate of wages, a corresponding inorease would be
the Cocoa Works. made for this purpose.
(2) ' Earnings ' means all ordinary wages or salaries
paid by the Company to employed persons for
Services rendered and work done in the employ-
ment of the Company, but does not include pay-
ments for overtime except in such particular cases
or class of cases as the Company may from time
t o time prescribe. I n the case of a piece worker
or a n employee who has worked short time, his
earnings shall be taken to be the amount certified
by the Company as that which he would have
earned during the period in question had he
worked for full normal time instead of during the
period actually worked by him.
(3) ' Average earnings ' means the average earnings
of the employee in question during the quarter
of a year immediately preceding the period of
unemployment in respect of which unemployment
benefit is payable to him (hereinafter called ' the
INDEX
ADULTEducation, 113 seq. Guild Socialism, viii, 128, 129
Allotments, 124 Gymnastic Classes, 106, 107
Apprentices, Training of, 117 seq.HmMOBD,J. L., 148
BATHS,59 Holidays, 29 seq.
Bowley, A. L., 3 Hours of Work, 20 seq.
Boys' School, 107, 108 Human Needs of Labour, 2
INDUSTRIAL Harmony, Condi-
CANTEEN, 61 seq. tions for Securing, 150
Central Council, 22, 42, 92, 107, Interim Industrial Reconstruc-
126, 134, 146, 147 tion Committee, 8, 11, 12,
Subjects discussed, 139 seq. 22, 131, 132, 133, 136, 144
Cloak-rooms, 60 Invalidity Scheme, 32,41 seq., 70
Complaints, Investigation of, 88
JOINT Control of Industry, 128
DEATHBenefit, 40.50 seu. sea.. 154
Dental ~ervice;68.seq. - ~ ~ t ; r eDevelopment of,
Departmental Councils, 137 seq. 142 seq.
Discipline, 94, 145, 146 I n the Factory, 133 seq.
Dismissal Regulations, 37, 94 Sphere of, 137 seq.
Disrnissing Employees, 87 seq. Women and, 135
DomesticScienceClasses,106,107 Wooden Box Mill, 137 seq.
EDUCATION Act (1918), 107 aazette2 l5'
Education Committee, 117 Labour Manager, 6,7
Turnover, 96
of Employees, 91, 94, 104
seq., 140 Unrest, Causes of, vii, 160,
of Administrative Officials, 151
97 seq., 116, 117 League of Nations Labour
Educational Adviser, 114, 115 Department9 52s53
Work, Result of, 111 seq. Lec1aire9 l4
COnferences,lo2 seq'
Employees, Engaging of, 85 seq.
Employment Department. 83, Lectures [W.
84, 85 Administrative Officers, 99
Preparatory School, W ,91
FISHER Act, 29 Libraries :
Friendly Society, 40, 41 General Lending, 120
GIRLS' School, 106 Technical, 120
Girls' Supervisors, 92 seq. A~AGA~N E , 137
117,
Good Working Conditions, Medical Inspection, 69 sep.
54 seq. Medical Service, 67 8 q
Material Environment, 64 Cases treated, 71, 72, 73
Personal Environment, 81 Dentist, 68
Gosling, H., 129 Nurse, 68,69
176 INDEX
Medical Service : Oculist, 68 Shift Work, 28
Value of, 76 seq. Shop Stewards, 134, 137
Medicine, Charges for, 68 Short Time, 26 seq.
Miners' Dispute, V, 150 Sick Club, 41
NATIONALHealth Insurance, Sickness* 39 "q.
329