With the differential rate, if for any reason he fails to do his full task, he not only loses the large extra premium which is paid for complete success, but in addition he suffers the direct loss of the piece price for each piece by which he falls short. Failure under the task with a bonus system involves a corresponding loss of the extra premium or bonus, but the workman, since he is paid a given price per hour, receives his ordinary day's pay in case of failure and suffers no additional loss beyond that of the extra premium whether he may have fallen short of the task to the extent of one piece or a dozen…
Mr. Gantt's system is especially useful during the difficult and delicate period of transition from the slow pace of ordinary day work to the high speed which is the leading characteristic of good management. During this period of transition in the past, a time was always reached when a sudden long leap was taken from improved day work to some form of piece work;
and in making this jump many good men inevitably fell and were lost from the procession.
Mr. Gantt's system bridges over this difficult stretch and enables the workman to go smoothly and with gradually accelerated speed from the slower pace of improved day work to the high speed of the new system.