Wage Incentive Systems

copyright Kaushik lecture series

The Halsey System

This system provides for the standard time for the completion of the task For work done in actual time or more actual rate is paid. If the job is completed in less than the prescribed standard time bonus payment is made on the basis of time saved. Formula: Bonus = of (time saved/time taken) daily Wage
copyright Kaushik lecture series

The Rowan System

Under this system a standard time is allowed for the job. Bonus is paid on the time saved. But the basis of bonus calculation is different from Halsey Plan. Formula: Bonus = (Time saved/ Time allowed) Time taken Hourly rate
copyright Kaushik lecture series

The Barth Variable Sharing System

It is based on the standard time. But does not provide any guaranteed time rate. The Formula: Workers Pay = (standard hour Actual hour) hourly rate

copyright Kaushik lecture series

The Bedaux Point System

The standard time set is divided into a number of points at the rate of one minute per point. The bonus is calculated @75% of the points earned in excess of 60/ hour. Formula: Time saved in hour points gained per hour .75 hourly rate/60
copyright Kaushik lecture series

Taylors Differential Piece rate system

There will be two existing rate of payment. The first rate is for those who reach the standard. This is a higher rate to enable them to get a bonus. The lower rate is for those who cannot reach the standard. But the higher rate will act as an incentive to them.
copyright Kaushik lecture series

copyright Kaushik lecture series

copyright Kaushik lecture series

copyright Kaushik lecture series

copyright Kaushik lecture series