In the dominant management narrative, this story is frequently used as evidence of the authoritarian character of Taylor's approach. Yet, if Taylor were only interested in command and control (sovereignty) to increase Schmidt's productivity (obedience), then the exchange would have been considerably less complex. It would have played out in the language of contract renegotiation. The old contract was 12 1/2 tons for $1.15 a day, and the new contract was to be 47 tons for $1.85 a day. Schmidt, in turn, would have an array of available responses: agree to the new terms, reject the new terms, or make a counteroffer.
From a Foucauldian perspective, this story lays out, with meticulous precision, the tactics that underlie governmentality. Taylor's approach moves beyond the terms of the sovereignty model. The goal is not simply to increase Schmidt's productivity; rather, it is to make Schmidt want to increase his own productivity (making him glad to do it). This project required first positing a new identity (high-priced man) that Schmidt could (should) assume and then showing him the technique (doing what he's told from morning to night with no back talk) for adopting that new identity. In short, the apparent subjects of the exchange—workload and salary—are displaced with issues that turn on Schmidt's self-conception. Obviously, Schmidt's range of possible responses in this situation is considerably reduced.