REWARDS AND PENALTIES 1. Fear and interest.—Most men who are in au thority in factory and office are consciously or uncon sciously guided in their administration by the feeling that the two levers which move men are fear and inter est. They believe that no man shows zeal unless be is anxious, and according to their native bent strive to change this anxiety into the fear of punishment or the hope of reward.
Two leading methods of administration result ; first ruling by division, and second, rewarding by titles and prizes. Such methods rely for their success on an appeal to man's imagination or his vanity, rather than on an understanding of the deep-lying sense of what is right and just.
2. Ruling by division.—There is an old Latin maxim that "He who would rule should divide." It expresses the fact that when men are divided in their interests they are unable to make common cause against their leader, arid thus the leader's position is secure.
While visiting a large factory in Brussels, an in vestigator was told by the works' manager that Ile re lied chiefly upon this administrative policy. The vis itor's note-book contains the following comment : "A manager of superior capacities, yet fearing every form of superiority in his subordinates. He seems secure, but is sm.rounded by an atmosphere of jealousy, servility and anxiety." This method is based on the weakness of human na ture, and not on its strength. Instead of seeking to preserve independence of character and thought among his men, and then welding their labor into one unified effort, this manager adopted a cheaper means, which obtained unity of action only so long as the master's prestige remained intact. Fear may be a powerful motive to action but it is not one upon which a permanent organization can be successfully founded.
3. Prizes and distinetions.—The appeal to fear brings eye and lip service but it takes the heart out of man, and one whose heart is not in his work cannot accomplish much. Far more effective is the method of rewarding good service by prizeg and distinctions.
The business world swarms with promotion plans, wage schemes, profit-sharing systems and bonus quota and prize rewards, all of which have for their aim to bring out men's effort by enlisting a personal interest. If a salesman makes a good record he is put in a special class, and may be given a particular district as a special honor. His picture appears on the first page of the house organ, he receives a prize of a gold watch, and so on. The material reward is often of slight value ; it is the distinction which is prized. Someone made the objection to Napoleon that the crosses and ribbons of the Legion of Honor which he founded were mere baubles. "You call them baubles," he said; "well, it is with baubles that men are led." Whether or not these adjuncts to business adminis tration are to be commended depends altogether upon the spirit which is behind them. If they appeal merely to cupidity and vanity they are not an effective force for permanent results. They must be means to an end, and that end must be-the cultivation of in terest in and loyalty to the organization.
4. Associated interests.—No system of rewards is vitalizing unless it is permeated with the spirit of as sociated interests. Unless it aids to induce among all the members of the organization, no matter how humble, the feeling that their interests are wrapped up in the welfare of the whole, it will fail to reach the highest efficiency. It is toward this ideal that in telligent business administration is constantly striv ing. In the measure that it consciously fosters this spirit, it rises above low standards. It discards the cynical attitude so often expressed in the phrase "busi ness is business," and adopts in its stead the view that all concerned, capitalist, administrator and employe are cooperating in a common effort, from which each shall draw the reward which is properly due. him and in which each should feel the true enthusiasm which springs from creative effort.