Busineas History Review Vet 46 net) i972 By Daniel Nelson ASSOCIATE PROFESSOR OF HISTORY UNIVERSITY OF AERON Stuart Campbell Taylorism Versus Welfare Work in American Industry: H. L. Gantt and the Bancrofts uo differing managerial philosophies competed for the support of American businessmen around the Beginning of the twentieth century — the “slentifc management” of Frederick W. Toylor ond a gener set of practices Bou as "welfare work” This study examines Sur experience ‘ofa Brandywine River textile fre which tied to employ both approeches ‘tthe some time, arch for new ways to “recouple” the distended firm, late nineteenth centery businessmen and engineers inspired the “management movement,” a series of loosely related attempts to bring system and order to business administration. Perhaps the best ‘example of the divergent, fragmented character of these efforts was the rivalry between ‘Faylorism and welfare work, two aspects of the “movement” that attracted considerable attention from managers interes goals, Tay tracted separate followers, and followed parallel, often competetive courses for more than a decade. ‘The similarities, differences, and reasons for the antagonism between the rival doctrines can be seen in the experiences of the Joseph Bancroft & Sons Company of Wil- ington, Delaware, the first frm to introduce both Taylorism and welfare work during the same period? Bornes story Revie, Vol KVL No.1 (Sprig, 1978). Coprght The Drsdest sofas ef neg cores x Prana Racontne ig Fics Burne tory eens XKVIE Water, 1065), 3. i "Early Panes of the Macngenest Movement” hdmithotee ecuber) 1900), 481-447" Fon ha vse the “omnogerent gh Gs. Althea, Fglro e We‘Taylorisin was an outgrowth of the “works management” move- ment and the pioneering work of Frederick W. Taylor at the Mid- vale and Bethlehem Steel Companies in the 1880's and 1890's. Its basic premise was that “human activity could be measured, analyzed, and controlled by techniques analogous to those that had proved successful when applied to physical objects.”* In practical terms, it combined a variety of new and old ideas, the most notable of which were time study and the incentive wage. In fact, Taylor's relative obscurity before the publication of “Shop Management” in 1908 was in large part due to the widespread belief that his earlier paper, “A Piece-Rate System,” merely described another plan to make piece ‘work operate as it was intended, Readers of “Shop Management” were therefore surprised to learn that Taylor's system demanded a thorough reorganization of the shop, new roles for managers and workers alike, and, most ominously, a “mental revolution.”* Equally ambitious were the promised results: greater output, lowered costs, higher wages, anc labor-management harmony. OF the men who applied this doctrine after Taylor's retirement ia 1902, Henry Laurence Gantt was perhaps the most notable. An engineer trained at Johns Hopkins and at Stevens Institute of Tech- nology, he had worked with Taylor at Midvale Steel, Simonds Roll- ing Machine, and Bethlehem Steel. By 1908, when he introduced Taylorism at the Bancroft Company, Gantt was probably the most experienced practitioner of the new “science,” and next to Taylor himself, the best-known member of the Taylor circles ‘Welfare work was also a response to the businessman's demand for a more systematic approach to labor problems. Although it had cexisted in some form since the time of Robert Owen, its late nine- ‘tops ante miioed intodeced + wlfire pop. st approimately the sme, tne Ewertoa's work, Bowe confor te ae ‘he ‘ie ower iene ony Laat bat Pitas rat Prologue (New York, 1940), Jane. cope et reas a SSppeped aa oad ray fe ore ay "ot "see Samuel Haber, Eciency oe Uy ise ena yer dete? «Semen TERT Pr Pie ME Bay cur on 2 BUSINESS HISTORY REVIEWteenth century version grew out ofthe activities of a few paternalis- ‘tic employers and humanitarian reformers. It was promoted at first by organizations such as William Tolman’s League for Social Service, butit attracted an important sponsoring group only after the National Civie Federation (NGF) formed a welfare department in 1904. Unlike Taylorism, which encompassed a definite set of prac- tices, welfare work could include any number of programs. "The NGF tried to be more specific: “welfare work involves special con- sideration for physical comfort wherever labor is performed; oppor- tunities for recreation; educational advantages; and the providing of suitable sanitary homes . , . plans for saving and lending money, and provisions for insurance end pensions.” * ‘The purposes of this activity were equally diverse. Employers usually stressed their philanthropic or paternalistic motives, but also their desires to secure a stable labor force, “decrease the floating element,” promote harmonious relations and worker loyalty, com Dat unfonism, and insure against strikes! A careful of employers’ statements indicates that the latter economic goals (dis- ccouraging unions and avoiding strikes) were nearly always impor- tant, if not paramount. The activities of John Patterson, president and principal owner of the National Cash Register Company, are suggestive. ‘The antocratie Patterson, whose progeam was among the first and most ambitious, introduced welfare work in the mide 1890's and, despite occasional reverses, continued it until his death in the 19213. In an influential article published at the tun of the century, he emphasized that welfare work reduced production costs ‘and increased profits? Patterson adopted the slogan “it pays” and duced inthe TH a he nd Son a th er pe. See Eee aorta emer es & Seite tn a, te sar a, an tn, SSi Rania of Socal Shy Mason” Eocncrng Magee’ rete Eg Hee EE Gan ee ero Bae eS a aterm yt fr tay tor Ech ASME Tio ‘to Fen Tpit "X Hr at Sn” Ashe Tone, SVE (09), Bete H.R ‘Tome im ashen Trove Ut (1887), 2002 nate Ware Work Nodame Ge Federtion Monthly Rees, € (August, aera pais i ot nr Mahe aks A aka sel Rc wo ig Tat Gnd of taba ond tea Coen ROLELSUROUN DS Denes ie eral la ek 2a. Paseon, “Alon ae Smputhy ap Paco ia Wotks Adminsrtn:” ‘eg Mag, 908 Una, 1003), 78300” ‘TAYLORISM AND WELFARE WORK 3