Word: scanlon
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...Prototype. In 1945 Scanlon for the first time took the bits and pieces of what he had tried out in dozens of companies and put them together at the Adamson Co. of East Palestine, Ohio, a small maker of welded steel tanks. Complained Owner Cecil Adamson: "I give the union everything it asks for. But still the shop isn't working well. Let's get together and work out something so that you'll get something and I'll get something." Joe went into the plant, checked the books, and determined a "normal" labor cost...
...team working toward a mutual goal. After a year, the Adamson Co. was five times as profitable as in the old days; even after sharing the productivity savings 50-50, management still reaped twice as much income. As for the workers, a union veteran of many picket lines told Scanlon: "Joe, I can't fight here. I'd be fighting myself...
...next year, Scanlon moved into the Lapointe Machine Tool Co. of Hudson, Mass., then on the verge of a strike. Within 20 months its production was up 61%. Said a National Planning Association report on Lapointe meetings on joint production problems: "An outsider has difficulty distinguishing management from union...
Invited to come in and help, Scanlon pitched out the old-style incentive system, which promoted individual effort at the expense of the group. He spent days with the finance and accounting people-whose role he considers vital-and devised a productivity norm. In Parker's case, it was the fiscal year March 1953 through February 1954. He then arranged that the savings on output made at less than the costs of the base year figure (as measured by sales value) should go into a bonus pool. A fourth of the pool money was automatically set aside...
Last week, as the plan began its second year, Parker Operations Vice President Philip Hull announced: "I'm a convinced Scanlon Plan adherent...