Loyalty : Part 1

Increasing Efficiency In Business: A Contribution to the Psychology of Business
by Walter Dill Scott, Ph.D.

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Loyalty As A Means of Increasing Human Efficiency

DELAYED by a train of accidents, a big contractor faced forfeiture of his bond on a city tunnel costing millions of dollars. He had exhausted his ingenuity and his resources to comply with the terms of his contract, but had failed. Because public opinion had been condemning concessions on other jobs on flimsy grounds, the authorities refused to extend the time allowed for completing the work. By canceling the contract, collecting the penalty, and reletting the task, the city would profit without exceeding its legal rights.

In his dilemma, he called his foremen together and explained the situation to them. "Tell the men," he said. Many of these had been members of his organization for years, moving with him from one undertaking to the next, looking to him for employment, for help in dull seasons or in times of misfortune, repaying him with interest in their tasks and a certain rough attachment.

He had been unusually considerate, adopting every possible safeguard for their protection, recognizing their union, employing three shifts of men, paying more than the required scale when conditions were hard or dangerous.

A score of unions were represented in the organization: miners, masons, carpenters, plasterers, engineers, electricians, and many grades of helpers. Learning his plight, they rallied promptly to his aid. They appealed to their trades and to the central body of unions to intervene in his behalf with the city officials.

How One Considerate Employer was protected by his Men

As taxpayers, voters, and members of an organization potentially effective in politics, they approached the mayor and the department heads concerned. They pointed out - what was true - that the city's negligence in prospecting and charting the course of the tunnel was partly responsible for the contractor's failure. They pleaded that the city should make allowances rather than interrupt their employment, and that the delay in the work would counterbalance any advantage contingent on forfeiture. They promised also that if three additional months were given the contractor, they would do all in their power to push construction.

The mayor yielded; the extension was granted. And the men made their promise good literally, waiving jealously guarded rights and sparing no effort to forward the undertaking. The miners, masons, carpenters, and specialists in other lines in which additional skilled men could not be secured labored frequently in twelve-hour shifts and accepted only the regular hourly rate for the overtime. With such zeal animating them, only one conclusion was possible. The tunnel was entirely completed before the ninety days of grace had expired.

Here was loyalty as stanch and effective as that which wins battlefields and creates nations. It increased the efficiency of the individual workers; it greatly augmented the effectiveness of the organization as a whole. It was developed, without appeal to sentiment, under conditions which make for division rather than cooperation between employer and employee. The men were unionists; wages, hours, and so on, were contract matters with the boss. Yet in an emergency, the tie between the tunnel builder and his men was strong enough to stand the strain of the fatiguing and long-continued effort necessary to complete the job and save the former from ruin. Like incidents, on perhaps a smaller and less dramatic scale, are not uncommon; but the historian of business has not yet risen to make them known.

Loyalty, to Nation or Organization, shows itself in an Emergency

As with patriotism, business loyalty needs some such crisis as this to evoke its expression. In peace the patriotism of citizens is rarely evident and is frequently called in question. In America we sometimes assume that it is a virtue belonging only to past generations. But every time the honor or integrity of the country is threatened, a multitude of eager citizens volunteer in its defense. Likewise, many a business man who has come to think his workmen interested only in the wages he pays them, discovers in his hour of need an unsuspected asset in their devotion to the welfare of the business, and their willingness to make sacrifices to bring it past the cape of storms.

Study of any field, of any single house, or of any of the periods of depression which have afflicted and corrected our industrial progress, will convince one of the unfailing and genuine loyalty of men to able and considerate employers. So generally true is this, indeed, that "house patriotism," "organization spirit," or "loyalty to the management" is accepted by all great executives as one of the essential elements in the day-by-day conduct of their enterprises.

Striking exhibitions of this loyalty may wait for an emergency. Unless it exists, however, unless it is apparent in the daily routine, there is immediate and relentless search for the antagonistic condition or method, which is robbing the force of present efficiency and future power. Cooperation of employees is the first purpose of organization. Without loyalty and team work the higher levels in output, quality, and service are impossible.

Loyalty on Part of Employer begets Loyalty in his Workers

The importance of loyalty in business could not readily be overestimated, even though its sole function were to secure united action on the part of the officers and men. Where no two men or groups of men were working to counter purposes, but all are united in a common purpose, the gain would be enormous, even though the amount of energy put forth by the individuals was not increased in the least. When to this fact of value in organized effort we add the accompanying psychological facts of increased efficiency by means of loyalty, we then begin to comprehend what it means to have or to lack loyalty.

The amount of work accomplished by an individual is subject to various conditions. The whole intellect, feeling, and will must work in unity to secure the best results. Where there is no heart in the work (absence of feeling) relatively little can be accomplished, even though the intellect be convinced and the will strained to the utmost. The employee who lacks loyalty to his employer can at least render but half-hearted service even though he strive to his utmost and though he be convinced that his financial salvation is dependent upon efficient service. The employer who secures the loyalty of his men not only secures better service, but he enables his men to accomplish more with less effort and less exhaustion. The creator of loyalty is a public benefactor.

About the Author

Walter Dill Scott (1869-1955) was one of the first applied psychologists. He applied psychology to various business practices such as personnel selection and advertising. In 1900 he was appointed instructor of psychology and education and director of the psychological laboratory at Northwestern University. In 1905, Dr. Scott was made professor of psychology and head of the department of psychology.