After the weekly employee profit share was established, Bata’s production reached
its highpoint. This measure helped to guarantee direct responsibility for quality and
performance with the majority of employees.
The company bank was established in 1919 to ensure the company’s capital independence.
Investment capital was covered by corporate profits and the employees’
savings at 10 percent interest (compared with 5 percent at most banks). The company
bank functioned as a partner: it generated its profits from sharing in the success of
bank-financed projects, not from interests and fees.
Bata supported capitalization of his employees, aiming for financially secure retirement
after the age of 50. The influx of young employees kept up performance and
vitality; during the crisis Bata could choose new talent.
Wages were calculated for a workshop as a whole, not just for each employee. The
allocation was made within the team according to individual performance and added
value. There were five categories of pay: (i) fixed wage, (ii) individual piece wage, (iii)
team piece wage, (iv) salary with share in profit (managers had to also share in losses),
and (v) special rewards and premiums.