In many industries or undertakings and for a large group of operations well-designed systems of payment by results shall yield advantages to all concerned. Many of these benefits shall berealized when sufficient safeguards are provided. Such prerequisites are:1.The co-operation of workers in the implementation of an incentive scheme is essential because the employees somehow devise, if they do not like a scheme, ingenious ways of evading or sabotaging the plan, often with the tacit connivance of the foreman of supervisor. Worker’s cooperation may be secured through proper discussion with their representatives.In particular, worker’s co-operation is necessary in:
the methods followed in measuring the results or output upon which payment is based
the methods followed in setting wage rates for different classes of work and
appropriate safeguards concerning earnings, job security and settlement of disputes over piece-work rates and allotted time.To prove that the schemes were often introduced without workers’ co-operation andconsequently met with failure we quote the following:‘ .. the practice adopted by several industrial establishments in the Mumbai region inregard to the preparation of an incentive scheme is to hire an industrial consultant and tomake him work in the establishment under the cloak of secrecy, until a scheme has beenfinally prepared. It is only after several months that the workers of the establishment andtheir unions begin to suspect that some scheme is under preparation. Trade union leaders,who are not employees currently, are not even allowed to watch how standards have beenevolved. Naturally, the workers reject out-of-hand, a scheme prepared so surreptitiously.’2.The scheme must be based on scientific work measurement. The standards set must berealistic and must motivate workers to put in better performance. Workers must be provided with necessary tools, materials and equipments so as to enable them reach their standards.3.Indirect workers, such as supervisors, foremen, charge hands, helpers, crane operators,canteen staff, store keepers and clerical staff should also be covered in the incentivescheme.
There should be management commitment to the cost and time necessary to administer incentive schemes properly and these must be carefully assessed before embarking on anincentive program. There are many situations in which the potential gains are just notworth the cost and effort involved. It also means a commitment in terms of integrity to