Mairead
01-07-2007, 10:05 AM
Twenty or more years ago (I think) I read articles about two different companies. I say 'different' but they were really rather similar in important ways. I can't tell you any details about them because this was before we had cds and dvds as archival devices, so what I tried to save got lost.
One of the companies was a factory in Indiana (of all places--I remember that much). The employees there set their own pay, and the turnover was zero with a long waiting list. The owner would lay out the figures each quarter and say here's the pool for pay, divvy it up. And the employees, about 100-150 people all told, would get together and do that. And everyone considered that the result was excellent. Some people didn't want to work hard and were happy to take less, others had extra expenses and worked more, etc. And it wasn't a new, untried thing either; that's the way the owner had run the place for years. It completely gave the lie to the capitalist assertion that labor is greedy and stupid.
The other place might have been in Mass or NY, I can't remember. But it was another factory and the owner put up a big board out in plain sight to everyone on the floor. On the board was all the company's financial and performance information, kept updated scrupulously. One of the items was a big slice of the profits that would be shared out every quarter or whatever. It took the people on the floor almost no time at all to make waste go to near-zero, quality up through the roof, shipping on time, etc. They didn't even need to discuss it much. They could each do what they thought might help, and watch to see what happened. It was brilliant: the pool positively bulged. And, as I recall, the owner increased the percentage as the absolute value of the pool got larger (which is exactly opposite to what bean-counters tell bosses to do). So the people on the floor drove the company to astronomically high productivity without management involvement except as suppliers of fresh information. It was a game, and they enjoyed playing it.
Are those outcomes relevant for our problem at all?
One of the companies was a factory in Indiana (of all places--I remember that much). The employees there set their own pay, and the turnover was zero with a long waiting list. The owner would lay out the figures each quarter and say here's the pool for pay, divvy it up. And the employees, about 100-150 people all told, would get together and do that. And everyone considered that the result was excellent. Some people didn't want to work hard and were happy to take less, others had extra expenses and worked more, etc. And it wasn't a new, untried thing either; that's the way the owner had run the place for years. It completely gave the lie to the capitalist assertion that labor is greedy and stupid.
The other place might have been in Mass or NY, I can't remember. But it was another factory and the owner put up a big board out in plain sight to everyone on the floor. On the board was all the company's financial and performance information, kept updated scrupulously. One of the items was a big slice of the profits that would be shared out every quarter or whatever. It took the people on the floor almost no time at all to make waste go to near-zero, quality up through the roof, shipping on time, etc. They didn't even need to discuss it much. They could each do what they thought might help, and watch to see what happened. It was brilliant: the pool positively bulged. And, as I recall, the owner increased the percentage as the absolute value of the pool got larger (which is exactly opposite to what bean-counters tell bosses to do). So the people on the floor drove the company to astronomically high productivity without management involvement except as suppliers of fresh information. It was a game, and they enjoyed playing it.
Are those outcomes relevant for our problem at all?