“Lowering” Of Morale By Incentive Schemes

Press, Volume CII, Issue 30277, 1 November 1963, Page 15

“Lowering” Of Morale By Incentive Schemes

The lowering of workers’ morale and grievances caused by incentive schemes outweighed the benefits of such schemes, said the general manager of C W F. Hamilton and Company. Ltd. (Mr E. P Chapman), addressing the Canterbury branch of the New Zeeland Institute of Management last evening on “The Employers’ Point of View of Morale.”

‘lt cannot be said that incentive schemes do much for improving morale,” he said. ‘There is bound to be a certain amount of mistrust and suspicion on both sides ” Mr Chapman said that operatives had doubts on the fairness and integrity of management to run incentive schemes On the other hand, the management wondered if the operatives had found their way around the numerous loopholes in incentive schemes.

Friction was often created between operatives on incentive schemes because some incentive jobs paid better than others. Supervisors became accused of favouritism because some workers thought they never got the •‘good” jobs. Mr Chapman said that at his company’s earth-moving and industrial equipment factory. only about 10 per cent of work was done under incentive schemes That 10 per cent caused about twice as much trouble as all the rest of the work in the factory. Another disadvantage of incentive schemes, Mr Chap-

man said, was that supervisors abdicated their authority. The workers really became sub-contractors, making parts for the company at so much a piece If the worker arrived late, he was ’nclined to say. “What of it? It’s my own money I’m losing.” With piecework it became difficult to control the quality of work.

Challenge Seen “It seems to me now to be a challenge how to achieve the same results (in productivity) as the piecework schemes without the schemes,” he said. The workers had to be ensured of the same level of pay as the scheme provided and agree to maintain production ait the same level Apparently this could be done by verv good leadership and good management techniques. There was a growing trend towards this “honour scheme” in America The problem involved in dropping incentive schemes was much harder than that of starting them Margins for skill in New Zealand were very tow, said Mr Chapman They must be increased to increase the productivity of the country’s skilled workers. Labourers received about 6s 9d an hour, compared with 7s 6d an hour for qualified tradesmen. Supervisors who looked after three or more workers received an extra allowance of about 3d an hour. These margins were too small to promote trade skills or encourage persons to become supervisors.