Human Relations Is about Partnership
Tom Watson Sr. Describes IBM's Human Relations Program
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Date Published: August 29, 2021
Date Modified: June 29, 2024 |
This is an unusually long but comprehensive read.
Peter E. Greulich
IBM's 20th Century Human Relations: A 1956 Perspective
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- A Corporate Benefits Program Should Consider the Community of Man
IBM's 20th Century Human Relations: A 1956 Perspective
A Forbes interviewer once asked Tom Watson Sr. about his company's "Labor Relations." He replied, "At IBM we have Human Relations, not Labor Relations." While the Watsons were alive there never was a Human "Resources" organization either.
IBM's Human "Resources" Organization is a purely 21st Century construct to support a financially-driven rather than human-driven corporation.
IBM's Human "Resources" Organization is a purely 21st Century construct to support a financially-driven rather than human-driven corporation.
Overview
On October 28th, 1941 the press reported on the formation of a new “bureau” within IBM. It was IBM’s Human Relations Department. Fifteen years later, this article written for the opening of the IBM Kingston facility would carry Tom Watson Sr.’s unique stamp of capitalism that enabled IBM to survive sixteen recessions and the Great Depression. Although his son had taken the helm this amazing human relations organization, built on the foundation of maintaining a business family, carried two men’s fundamental belief, trust, confidence and four decade’s experience that an employee was the corporation's most important "asset."
Today’s IBM refers to this organization as its Human "Resources" Organization. Is there a difference between how a company handles a "relationship" and how it handles a "resource?" Semantics matter, but you be the judge.
The headings below were added by Peter E. Greulich for clarity and readability.
Today’s IBM refers to this organization as its Human "Resources" Organization. Is there a difference between how a company handles a "relationship" and how it handles a "resource?" Semantics matter, but you be the judge.
The headings below were added by Peter E. Greulich for clarity and readability.
Creating the IBM Human Relations Bureau
Miss Means [Sara Means as head of the new IBM Human Relations Organization] is going to see what she can do to help in the further development of human relations of our organization. Her work is going to be principally to help our people who may be in unfortunate circumstances [emphasis added].
Thomas J. Watson Sr., IBM Opens New Bureau, Oct 28, 1941
Good Human Relations Was An Organic Part of IBM
Good human relations must be more than just a program. To be truly effective they must be an organic part of an organization's make-up.
We, in IBM, feel we have such human relations because we know that our program is not an expedient, but a practical way of living and working together. Under the guidance of the late Thomas J. Watson, founder of IBM, good human relations have prevailed in the kind of environment where they thrive naturally.
What is this environment? It is the realization that everything starts with the individual. In his first speech before the organization, Mr. Watson stated the case plainly. "Business," he said, "is a man proposition pure and simple." On another occasion, Mr. Watson said, "You can get capital to erect buildings, but it takes people to build a business." In this atmosphere each man is respected as an individual, because it is understood that progress for all can be achieved only when each person makes progress in his or her own life.
We, in IBM, feel we have such human relations because we know that our program is not an expedient, but a practical way of living and working together. Under the guidance of the late Thomas J. Watson, founder of IBM, good human relations have prevailed in the kind of environment where they thrive naturally.
What is this environment? It is the realization that everything starts with the individual. In his first speech before the organization, Mr. Watson stated the case plainly. "Business," he said, "is a man proposition pure and simple." On another occasion, Mr. Watson said, "You can get capital to erect buildings, but it takes people to build a business." In this atmosphere each man is respected as an individual, because it is understood that progress for all can be achieved only when each person makes progress in his or her own life.
Security for the Individual and their Family
A good human relation’s program must start with fundamentals. Security is the thing most working men strive for: security for themselves and for their families.
Present security is built on current wages or salaries, the assurance of steady employment, and a guarantee against loss of income through enforced absence from work. Future security is built on these elements, plus an opportunity for advancement and the guarantee of adequate income for life after the work-a-day career is ended.
This urge for security on the part of an employee is a direct challenge to the employer and our human relations program. Management must make every effort to provide the best wages and salaries for its employees. It can be done. The average annual rate of pay in IBM for qualified hourly rated men and women, not including department managers or supervisors, and exclusive of overtime, is substantially higher than the minimum wage for qualified factory workers in the United States.
IBM provides pay for seven holidays each year, and under the company's vacation plan, an employee with six months' to one years’ service receives one week with full pay: after one year and up to ten years, two weeks' vacation with full pay. Employees with 25 years of service receive four weeks' vacation with full pay and may defer and accumulate the fourth week up to a total of five weeks, thus making possible an extended vacation of nine weeks.
The challenge of providing steady employment is a more difficult one for business to meet.
A well-run industry, no matter, how efficient or how vital to a nation's business, cannot help but be affected by a decline in the general economy. It is, however, the duty of every company to make every effort to keep its employees at work, rather than dismiss them and add to the crisis. During the depression years, Mr. Watson increased employment and maintained production levels because of his sense of responsibility to the people who had helped to build IBM and because of his faith in our country and American business. The company intensified its search for new products and new markets to sustain sales, and expanded its research engineering, and educational facilities with an eye to the future and prosperity.
In the midst of the depression, IBM established a minimum wage of 50 cents an hour for qualified employees. We borrowed money to manufacture parts we did not need at the time. In short, we went counter to the trend in those lean days, and we saw this vision pay off when prosperity returned, and the stockpiled parts were put to good use.
Employee reaction to efforts on the part of management to guarantee him against loss of income through enforced absence from work is important. Does the employee take advantage of these guarantees?
During the war, IBM had one of the lowest absentee records in the nation, and peace-time absentee rates remain steadily well below the two per cent mark, despite a very liberal health and accident plan.
Present security is built on current wages or salaries, the assurance of steady employment, and a guarantee against loss of income through enforced absence from work. Future security is built on these elements, plus an opportunity for advancement and the guarantee of adequate income for life after the work-a-day career is ended.
This urge for security on the part of an employee is a direct challenge to the employer and our human relations program. Management must make every effort to provide the best wages and salaries for its employees. It can be done. The average annual rate of pay in IBM for qualified hourly rated men and women, not including department managers or supervisors, and exclusive of overtime, is substantially higher than the minimum wage for qualified factory workers in the United States.
IBM provides pay for seven holidays each year, and under the company's vacation plan, an employee with six months' to one years’ service receives one week with full pay: after one year and up to ten years, two weeks' vacation with full pay. Employees with 25 years of service receive four weeks' vacation with full pay and may defer and accumulate the fourth week up to a total of five weeks, thus making possible an extended vacation of nine weeks.
The challenge of providing steady employment is a more difficult one for business to meet.
A well-run industry, no matter, how efficient or how vital to a nation's business, cannot help but be affected by a decline in the general economy. It is, however, the duty of every company to make every effort to keep its employees at work, rather than dismiss them and add to the crisis. During the depression years, Mr. Watson increased employment and maintained production levels because of his sense of responsibility to the people who had helped to build IBM and because of his faith in our country and American business. The company intensified its search for new products and new markets to sustain sales, and expanded its research engineering, and educational facilities with an eye to the future and prosperity.
In the midst of the depression, IBM established a minimum wage of 50 cents an hour for qualified employees. We borrowed money to manufacture parts we did not need at the time. In short, we went counter to the trend in those lean days, and we saw this vision pay off when prosperity returned, and the stockpiled parts were put to good use.
Employee reaction to efforts on the part of management to guarantee him against loss of income through enforced absence from work is important. Does the employee take advantage of these guarantees?
During the war, IBM had one of the lowest absentee records in the nation, and peace-time absentee rates remain steadily well below the two per cent mark, despite a very liberal health and accident plan.
IBM Protection against Sickness and Accident
When a person is sick or suffers an injury, he needs all his strength to get well. Worry about his economic problems only delays his recovery. A good human relations program relieves the employee of a large part of his worry.
The IBM Sickness and Accident Pay Plan pays the hourly rated employee $6.00 a day for the first three days he is ill. Beginning the fourth consecutive day, he receives full wages for six months. After six months, each case is treated individually.
The IBM Family Hospitalization Plan covers employees, their wives and unmarried children under nineteen years of age. The plan also covers employees retired under the IBM Retirement Plan and during the employee’s lifetime his dependent wife or husband. Payments under this plan are made whether or not the employee carries other types of hospitalization insurance. Actual hospital charges for bed and board up to $10 a day are paid for each day of hospitalization up to 35 days for any one ailment in any 12-month period, and up to $100 for other hospital services, nursing care and attendance by a physician.
As a further means of relieving employees of hardship and worry in the event of an accident or illness of major proportions, IBM has introduced the Family Medical Plan to cover all employees, their dependent wives or husbands, and their unmarried children less than 19 years of age. When an employee or any covered member of his family incurs medical expenses exceed the payments under the Family Hospitalization Plan, he receives benefits for 75 percent of all such charges over $300—up to $10,000. The new plan was introduced with the realization that a long and costly illness or accident may wipe out an employee’s savings of many years.
The company bears the entire cost of this plan, and of all other IBM benefits.
The IBM Sickness and Accident Pay Plan pays the hourly rated employee $6.00 a day for the first three days he is ill. Beginning the fourth consecutive day, he receives full wages for six months. After six months, each case is treated individually.
The IBM Family Hospitalization Plan covers employees, their wives and unmarried children under nineteen years of age. The plan also covers employees retired under the IBM Retirement Plan and during the employee’s lifetime his dependent wife or husband. Payments under this plan are made whether or not the employee carries other types of hospitalization insurance. Actual hospital charges for bed and board up to $10 a day are paid for each day of hospitalization up to 35 days for any one ailment in any 12-month period, and up to $100 for other hospital services, nursing care and attendance by a physician.
As a further means of relieving employees of hardship and worry in the event of an accident or illness of major proportions, IBM has introduced the Family Medical Plan to cover all employees, their dependent wives or husbands, and their unmarried children less than 19 years of age. When an employee or any covered member of his family incurs medical expenses exceed the payments under the Family Hospitalization Plan, he receives benefits for 75 percent of all such charges over $300—up to $10,000. The new plan was introduced with the realization that a long and costly illness or accident may wipe out an employee’s savings of many years.
The company bears the entire cost of this plan, and of all other IBM benefits.
Promotional Opportunities and the IBM Retirement Plan (The Watson Fund)
Now let us turn our attention to management’s responsibility in providing future security for its employees.
Everything we do in this life is generally done with an eye to the future, either immediate or distant. If an organization wants its employees to remain with it and enjoy thereby the benefits of the employees' increasing experience, it must provide an opportunity for the kind of future its employees will find valuable. In 1917, Mr. Watson said, "I hope that every man in the organization will remain with it, because as the business expands you are going to grow; there are going to be new positions created from time to time and with it new opportunities." In IBM, the chance of advancement is always there. With very few exceptions, vacancies and newly filled positions are filled from the ranks. It has been our experience that a person will remain with an organization that gives him a chance to grow, and the benefits that result to the organization are readily seen.
Everything we do in this life is generally done with an eye to the future, either immediate or distant. If an organization wants its employees to remain with it and enjoy thereby the benefits of the employees' increasing experience, it must provide an opportunity for the kind of future its employees will find valuable. In 1917, Mr. Watson said, "I hope that every man in the organization will remain with it, because as the business expands you are going to grow; there are going to be new positions created from time to time and with it new opportunities." In IBM, the chance of advancement is always there. With very few exceptions, vacancies and newly filled positions are filled from the ranks. It has been our experience that a person will remain with an organization that gives him a chance to grow, and the benefits that result to the organization are readily seen.
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To the young person in industry, his day of retirement seems far in the distance. But it must come to everybody, and a good human relations program helps employees plan for that day. Company payments to retired IBM employees come from two sources: The IBM Retirement Plan and the Watson Fund for Supplementing the IBM Retirement Plan.
The Watson Fund came into being when Mr. Watson refused to share personally in any profits derived from the production of war materials, and reduced the contract rate of his percentage commission. The resultant profit has been set aside, since 1942 in a special reserve fund to be used for the benefit of employees. |
The details of the Watson Fund, how it came into being, and how it funded various IBM programs are included in THINK Again: The Rometty Edition
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The IBM Retirement Plan, recently revised in line with the Company's policy of keeping such plans abreast of current conditions, provides monthly retirement income for life ranging from $110 for those with 10 years of continuous service to $275 after 45 years of service. These figures, which include Social Security, are based solely on length of service. In addition, the Retirement Plan is supplemented by a retirement pay formula based on earnings as well as length of service.
A retiring employee receives which ever retirement income is greater—the one computed exclusively upon length of service or the one computed upon both length of service and earnings.
A retiring employee receives which ever retirement income is greater—the one computed exclusively upon length of service or the one computed upon both length of service and earnings.
IBM Group Insurance Coverage
In addition to the pension benefits, arrangements have been made to provide paid-up insurance policies of $500 each for all employees retiring with 10 years of continuous service. For each additional year of service, $50 is added up to a maximum of $2,250. This provision is made in order to take care of expenses at the time of death.
Part of the income from the Watson Fund provides pensions for the widows and orphans of IBM employees who died in service during World War II. Under this plan the company pays such widows and children an amount equal to that paid by the U. S. Government under the Widows and Orphans Act. Payments by the company, to a widow continue for her lifetime or until marriage. Payments made by the company for a child continue until 21 years of age is attained.
A good human relations program must be designed according to common sense. The IBM Group Life Insurance Plan, entirely company supported, has been planned in this way. Mr. Watson reasoned that the younger a man is, and the shorter his business career, the less, time he has to build up an estate that would provide for his family in the event of his death. After a month of service, the IBMer is insured for $1,000. At the end of one year his coverage is increased $3,000 a year, so that at the end of five years, of continuous service the employee has $15,000 worth of life insurance. From six years to ten there is an annual increment of $1,000, bringing the policy up to $20,000. After the tenth year equal annual increases are made so that when the employee joins the IBM Quarter Century Club he is insured for $25,000.
When Mr. Watson announces improvements in these plans, he invariably reiterates that these benefits are not inducements to further effort, but are rewards for services rendered the organization by IBM employees.
You can see therefore, that a human relations program is effective where there is a giving as well as a receiving on both sides.
Part of the income from the Watson Fund provides pensions for the widows and orphans of IBM employees who died in service during World War II. Under this plan the company pays such widows and children an amount equal to that paid by the U. S. Government under the Widows and Orphans Act. Payments by the company, to a widow continue for her lifetime or until marriage. Payments made by the company for a child continue until 21 years of age is attained.
A good human relations program must be designed according to common sense. The IBM Group Life Insurance Plan, entirely company supported, has been planned in this way. Mr. Watson reasoned that the younger a man is, and the shorter his business career, the less, time he has to build up an estate that would provide for his family in the event of his death. After a month of service, the IBMer is insured for $1,000. At the end of one year his coverage is increased $3,000 a year, so that at the end of five years, of continuous service the employee has $15,000 worth of life insurance. From six years to ten there is an annual increment of $1,000, bringing the policy up to $20,000. After the tenth year equal annual increases are made so that when the employee joins the IBM Quarter Century Club he is insured for $25,000.
When Mr. Watson announces improvements in these plans, he invariably reiterates that these benefits are not inducements to further effort, but are rewards for services rendered the organization by IBM employees.
You can see therefore, that a human relations program is effective where there is a giving as well as a receiving on both sides.
Designed to Create a Sense of Family
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We must keep in mind that a human relations program is not expressed solely in terms of dollars and cents. To be effective, a sense of social responsibility as well as a feeling of common purpose must be nurtured by the program.
When the family spirit pervades any business there is an increase in the feeling of common purpose so necessary to cooperation and success. IBM encourages members of the same family to work within the organization. The steady growth in membership in the IBM Two Generations Club and Three Generations Club points up the fact that parents think IBM is a good place for their children to work. A human relations program must be an integral part of an organization to be effective. A test of this would be to analyze how much pioneering is done by an organization in its human relations program. IBM has always striven to be a pioneer in its industrial field. Mr. Watson often pointed out that no progress could ever be achieved if it were not for the pioneers in all fields of endeavor. Somebody, in short, has to get out in front and lead the way. In IBM, we have tried to follow this principle in our human relations. |
Watson Sr. greeting employees and their spouses after an IBM family gathering.
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When the merits of employing women were still being debated, IBM was hiring young women and giving them responsible positions. There is no double standard of treatment for men and women in IBM. Women receive the same pay for the same work, and are eligible to fill any executive position for which they qualify. One young woman who joined IBM in 1939 rose to vice president after only four years with the company, and held that position until 1954, when she resigned to become a homemaker. Women hold other responsible posts throughout the organization. [Read the introduction to the Tom Watson Sr. Videos from the Great Depression].
Training for the handicapped
Industry's human relations programs should seek out every opportunity to provide training for handicapped people in the use of its products and to develop applications of its products to provide means of self-support for the handicapped. The problems faced by a handicapped person are community problems, and industry should make every effort to work with the community in their solution. Under Mr. Watson's leadership, extensive programs for training handicapped people in the operation of IBM equipment have been developed and put into operation on a countrywide basis.
IBM plants in Endicott and Poughkeepsie cooperate with all agencies that work with handicapped people. If the person is so handicapped as not to be able to work in a plant, there is a Sheltered Workshop and a Blind Workshop where he can work without self-consciousness. IBM cooperates by sending work to these shops, for which regular IBM rates are paid. Sometimes, the skills learned in workshops, accompanied by physical rehabilitation, enable the handicapped person to go into industry as a regular employee. Mr. Watson's great interest in finding ways to assist the handicapped has led him to have IBM engineers devote a great deal of time to the development of several devices for the benefit of disabled people.
At the suggestion of Mrs. Watson, our engineers have developed a remote control typewriter keyboard which, used in conjunction with the IBM Electric Typewriter, enables a partially paralyzed or otherwise immobilized person to type while lying in bed or sitting in a wheel chair. The company also assisted in the development of a Braille Writer and an Electrical Arm.
A Suggestion Program to Gather Employee Ideas
A human relations program can be carried right into the production end of a business, enabling employees to take greater interest in the economic and industrial aspects of their work. To this end the IBM Suggestion Plan has been created for IBM employees, both in the manufacturing and field organizations, whereby they can submit suggestions for improving all phases of IBM operations. Special "Suggestion Blank" forms are available to all employees and suggestions may be forwarded by the employee through intra-company mail to the Suggestion Department where they are time stamped and numbered. Each suggestion is properly investigated by those in the company most familiar with the subject, and following the investigation the suggestion is returned to the Suggestion Department with the investigator's comments.
Accepted suggestions are referred to the Suggestion Committee which determines the amount of award to be paid. The Suggestion Committee is made up of representatives appointed by management to represent the various areas of the business. The suggester is then advised by a personal letter the amount of the award and when his award check will be delivered to him. In cases where a suggestion is not accepted a personal letter is written advising the suggester why his suggestion was turned down. Also, he is advised that if he is not satisfied with the results of the investigation of his suggestion, he is invited to furnish any additional facts which might give the committee reason to review his suggestion. In cases where it is the employee’s first suggestion which is turned down, he is contacted personally and given a verbal explanation along with the letter.
Awards are made in proportion to the value of the idea submitted. $10 is the minimum award and $5,000 is the maximum award. Winners of outstanding awards receive their checks from one of the higher executives of the company. This recognition of effort is part of the IBM Human Relations Program, and a very practical aspect as far as finances are concerned. In 1955 a total of 106,313 suggestions were received from IBM employees (domestic), of which 19,244 were adopted. The award money paid for suggestions amount to $501,756.51 or an average of $26.07 for each adopted suggestion.
The savings to the company through the adoption of these suggestions into manufacturing and operating procedures was estimated to be considerably more than this amount.
Training for the handicapped
Industry's human relations programs should seek out every opportunity to provide training for handicapped people in the use of its products and to develop applications of its products to provide means of self-support for the handicapped. The problems faced by a handicapped person are community problems, and industry should make every effort to work with the community in their solution. Under Mr. Watson's leadership, extensive programs for training handicapped people in the operation of IBM equipment have been developed and put into operation on a countrywide basis.
IBM plants in Endicott and Poughkeepsie cooperate with all agencies that work with handicapped people. If the person is so handicapped as not to be able to work in a plant, there is a Sheltered Workshop and a Blind Workshop where he can work without self-consciousness. IBM cooperates by sending work to these shops, for which regular IBM rates are paid. Sometimes, the skills learned in workshops, accompanied by physical rehabilitation, enable the handicapped person to go into industry as a regular employee. Mr. Watson's great interest in finding ways to assist the handicapped has led him to have IBM engineers devote a great deal of time to the development of several devices for the benefit of disabled people.
At the suggestion of Mrs. Watson, our engineers have developed a remote control typewriter keyboard which, used in conjunction with the IBM Electric Typewriter, enables a partially paralyzed or otherwise immobilized person to type while lying in bed or sitting in a wheel chair. The company also assisted in the development of a Braille Writer and an Electrical Arm.
A Suggestion Program to Gather Employee Ideas
A human relations program can be carried right into the production end of a business, enabling employees to take greater interest in the economic and industrial aspects of their work. To this end the IBM Suggestion Plan has been created for IBM employees, both in the manufacturing and field organizations, whereby they can submit suggestions for improving all phases of IBM operations. Special "Suggestion Blank" forms are available to all employees and suggestions may be forwarded by the employee through intra-company mail to the Suggestion Department where they are time stamped and numbered. Each suggestion is properly investigated by those in the company most familiar with the subject, and following the investigation the suggestion is returned to the Suggestion Department with the investigator's comments.
Accepted suggestions are referred to the Suggestion Committee which determines the amount of award to be paid. The Suggestion Committee is made up of representatives appointed by management to represent the various areas of the business. The suggester is then advised by a personal letter the amount of the award and when his award check will be delivered to him. In cases where a suggestion is not accepted a personal letter is written advising the suggester why his suggestion was turned down. Also, he is advised that if he is not satisfied with the results of the investigation of his suggestion, he is invited to furnish any additional facts which might give the committee reason to review his suggestion. In cases where it is the employee’s first suggestion which is turned down, he is contacted personally and given a verbal explanation along with the letter.
Awards are made in proportion to the value of the idea submitted. $10 is the minimum award and $5,000 is the maximum award. Winners of outstanding awards receive their checks from one of the higher executives of the company. This recognition of effort is part of the IBM Human Relations Program, and a very practical aspect as far as finances are concerned. In 1955 a total of 106,313 suggestions were received from IBM employees (domestic), of which 19,244 were adopted. The award money paid for suggestions amount to $501,756.51 or an average of $26.07 for each adopted suggestion.
The savings to the company through the adoption of these suggestions into manufacturing and operating procedures was estimated to be considerably more than this amount.
IBM Benefits Extend Outside of Work
Another test to apply to a human relations program is whether it comes to an end when working hours are finished. The effective program, we believe, should not.
In IBM, there is an education program which extends throughout the organization, and provides a general education curriculum which includes subjects which range from Interior Decoration to Higher Mathematics. There is also a program of education which offers training for varied positions in the organization. Mr. Watson's creed that there is no saturation point in education is woven right into IBM Human Relations. In both educational programs, the knowledge gained enhances the employee’s opportunity for advancement. This is in line with Mr. Watson's sincere belief that the more education one acquires, the better equipped one is to get the most out of life—spiritually, culturally, economically.
A human relations program should also take into account the fact that a person who plays well also works well.
IBM maintains employees' country clubs at Endicott and Poughkeepsie, New York, and Sands Point, Long Island, and has purchased 300 acres at Kingston, New York to provide space for recreational facilities there. Facilities of the clubs are available to employees and their families for an annual membership fee of $1.00 for employees, $1.00 for associate members (wives or husbands), and 50 cents for juniors. All clubs are operated by Boards of Governors elected by employees, and managers and executives cannot be members of the board.
Children's Clubs in Poughkeepsie and Endicott provide recreation and instruction for children between the ages of four and seven. Dues for these clubs are 25 cents and activities include handicrafts, gardening, story period, group games and nature study. Facilities at Endicott and Poughkeepsie provide for golf, swimming, tennis, baseball, basketball, bowling, rifle and pistol shooting, and other sports. The Sands Point Club, which was opened in 1953, has a nine-hole golf course, a beach house and swimming area on Long Island Sound, and facilities for a number of other outdoor sports, as well as picnic grounds.
In IBM, there is an education program which extends throughout the organization, and provides a general education curriculum which includes subjects which range from Interior Decoration to Higher Mathematics. There is also a program of education which offers training for varied positions in the organization. Mr. Watson's creed that there is no saturation point in education is woven right into IBM Human Relations. In both educational programs, the knowledge gained enhances the employee’s opportunity for advancement. This is in line with Mr. Watson's sincere belief that the more education one acquires, the better equipped one is to get the most out of life—spiritually, culturally, economically.
A human relations program should also take into account the fact that a person who plays well also works well.
IBM maintains employees' country clubs at Endicott and Poughkeepsie, New York, and Sands Point, Long Island, and has purchased 300 acres at Kingston, New York to provide space for recreational facilities there. Facilities of the clubs are available to employees and their families for an annual membership fee of $1.00 for employees, $1.00 for associate members (wives or husbands), and 50 cents for juniors. All clubs are operated by Boards of Governors elected by employees, and managers and executives cannot be members of the board.
Children's Clubs in Poughkeepsie and Endicott provide recreation and instruction for children between the ages of four and seven. Dues for these clubs are 25 cents and activities include handicrafts, gardening, story period, group games and nature study. Facilities at Endicott and Poughkeepsie provide for golf, swimming, tennis, baseball, basketball, bowling, rifle and pistol shooting, and other sports. The Sands Point Club, which was opened in 1953, has a nine-hole golf course, a beach house and swimming area on Long Island Sound, and facilities for a number of other outdoor sports, as well as picnic grounds.
A Corporate Benefits Program Should Consider the Community of Man
When it became necessary, in view of the world situation, for our country to increase its military forces, IBM put into effect a plan to ease the financial burden on employees called to service.
An employee who has been with IBM one year or more when he enters the U. S. armed forces is kept on the payroll for monthly payments equivalent to one-quarter of his pay up to $4,000 a year at the time he enlisted, was inducted or called to active duty. IBM also pays the premiums on the same amount of National Service Life Insurance that the employee was receiving in IBM group insurance at the time he entered the armed forces, up to the government's maximum of $10,000. Additional benefits include pay for time taken in undergoing physical examination, two weeks' salary or wages at the time of induction, payment for accrued vacation time, and a subscription to a hometown newspaper. The plan is generally similar to the plan adopted for the benefit of employees who served in World War II, with the addition of extending the IBM family hospitalization plan to cover the wives and children of employees in the armed forces.
An employee entering the armed forces is regarded as on military leave of absence and upon satisfactorily completing his military service will be reinstated with full credit for continuous service with the company in connection with all benefits under other employee benefit plans.
An effective human relations program should take into consideration the community as well as the industry itself.
A sense of social responsibility has been encouraged among IBM employees. Mr. Watson often said that he wanted IBMers to take enough time away from the company to fulfill their obligations as citizens in their respective communities. "Communities," he said, "are states and nations, and states and nations are people." In IBM we have followed, in the development of human relations, the program embodied in Mr. Watson's first speech to the organization. Everything since then has been the practical application of the principle he expressed. There is nothing in that first talk which does not hold true today. It is this sense of continuity in the program, the knowledge on the part of all IBMers that the program is really part of the company they work with, that has nurtured unity within the organization. This unity and the easing of financial worries through the program have helped bring about the spirit of cooperation that prevails throughout the company, and all these things make for progress.
The steady growth of IBM speaks for the effectiveness of our human relations.
They are our best investment.
An employee who has been with IBM one year or more when he enters the U. S. armed forces is kept on the payroll for monthly payments equivalent to one-quarter of his pay up to $4,000 a year at the time he enlisted, was inducted or called to active duty. IBM also pays the premiums on the same amount of National Service Life Insurance that the employee was receiving in IBM group insurance at the time he entered the armed forces, up to the government's maximum of $10,000. Additional benefits include pay for time taken in undergoing physical examination, two weeks' salary or wages at the time of induction, payment for accrued vacation time, and a subscription to a hometown newspaper. The plan is generally similar to the plan adopted for the benefit of employees who served in World War II, with the addition of extending the IBM family hospitalization plan to cover the wives and children of employees in the armed forces.
An employee entering the armed forces is regarded as on military leave of absence and upon satisfactorily completing his military service will be reinstated with full credit for continuous service with the company in connection with all benefits under other employee benefit plans.
An effective human relations program should take into consideration the community as well as the industry itself.
A sense of social responsibility has been encouraged among IBM employees. Mr. Watson often said that he wanted IBMers to take enough time away from the company to fulfill their obligations as citizens in their respective communities. "Communities," he said, "are states and nations, and states and nations are people." In IBM we have followed, in the development of human relations, the program embodied in Mr. Watson's first speech to the organization. Everything since then has been the practical application of the principle he expressed. There is nothing in that first talk which does not hold true today. It is this sense of continuity in the program, the knowledge on the part of all IBMers that the program is really part of the company they work with, that has nurtured unity within the organization. This unity and the easing of financial worries through the program have helped bring about the spirit of cooperation that prevails throughout the company, and all these things make for progress.
The steady growth of IBM speaks for the effectiveness of our human relations.
They are our best investment.