EMPLOYEECOST&I

NCENTI
VESYSTEMS[
10]

LI
STOFFORMULA

Ti
meRat
eSy
stem

Ear
nings=Hour
sWor
ked×Rat
eperHour

Ex.
1Awor
kert
akes10hour
stof
ini
sht
hej
ob.Ti
mer
ateofwagesi
sRs.
20perhour
.

Ear
nings=10hour
s×Rs.
20=Rs.
200

Pi
eceRat
eSy
stem

Ear
nings=No.ofUni
tsPr
oduced×Rat
eperPi
ece

Ex.
2Awor
kerpr
oduces100uni
tsofapr
oduct
.Pi
ecer
ateRs.
3.

Ear
nings=100Uni
ts×Rs.
3=Rs.
300

Hal
seyPr
emi
um BonusSy
stem

Ear
nings=(
Hour
sWor
ked×Rat
eperHour
)+(
50%ofTi
meSav
ed×Rat
eperHour
)

Ti
meSav
ed=Ti
meAl
l
owed/St
andar
dTi
me–Act
ual
TimeTaken

Ex.
3Standar
dti
met
ocompl
eteaj
ob12hour
s,Act
ual
timet
aken8hour
s,Rat
eperhour
Rs.
8.

Cal
cul
atet
hewagesofawor
keront
hebasi
sofHal
seyPr
emi
um BonusSy
stem.

Ti
meSav
ed=12-
8=4hour
s

Ear
nings=(
8hour
s×Rs.
8)+(50%of4hour
s×Rs.
8)=Rs.64+16=Rs.
80

Ef
fect
iveHour
lyWages=Tot
alEar
nings/Hour
sWor
ked

=Rs.
80/
8hour
s=Rs.
10

RowanPr
emi
um BonusSy
stem

Earni
ngs=(
HoursWorked×Rat
eperHour
)+[
(Ti
meSav
ed/Ti
meAl
l
owed)×(
Time
Taken×Rat
eperhour
)]

Ex.
4Standar
dti
met
ocompl
eteaj
ob12hour
s,Act
ual
timet
aken8hour
s,Rat
eperhour
Rs.
8.

Cal
cul
atet
hewagesofawor
keront
hebasi
sofRowanPr
emi
um BonusSy
stem.
Ear
nings=(
8hour
s×Rs.
8)+(4hour
s/12hour
s×8hour
s×Rs.
8)=Rs.
64+21.
33=Rs.
85.
33

Ef
fect
iveHour
lyWages=Tot
alEar
nings/Hour
sWor
ked

=Rs.
85.
33/
8Hour
s=Rs.
10.
67

Ex.
5Ascert
aint
hetot
alear
ningsofeachwor
kersepar
atel
y.Al
socal
cul
ateEf
fect
ive
hour
lyr
ateofwagesoft
hewor ker
s.

A B

Ti
meAl
l
owed(
hour
s) 60 60

Act
ual
TimeTaken(
hour
s) 42 45

Rat
eofwagesperhour Rs.
20 Rs.
20

I
ncent
iveScheme Hal
sey Rowan

Answer
.

Par
ti
cul
ars A B

i
.Ti
meAl
l
owed(
hour
s) 60 60

i
i
.Act
ual
TimeTaken(
hour
s) 42 45

i
i
i.Ti
meSav
ed(
i-
ii
) 18 15

i
v.Tot
alEar
nings: Rs.
1020 Rs.
1125

A=(
42×20)
+(50%of18×20)

B=(
45×20)
+(15/
60×45×20)

v
.Ef
fect
iveHour
lyWages(
iv/
ii
) Rs.
24.
29 Rs.
25

Ex.
6Inanor gani
sation,Wher
eHalseyplani
sinOperat
ion,Mr.XcanearnRs.27ona
j
obforwhichhet akesti
me8hours.RateofwagesisRs.3perhour
.Cal
culat
eWhatwil
l
behisear
ningsifRowanPlanisadopted?

Answer
.
AsperHal
seyPlan,
Ear
nings=(
Hour
sWor
ked×Rat
eperHour
)+(
50%ofTi
meSav
ed×
Rat
eperHour)

Or
,27=(
8×3)
+(50%ofX×3)

Or
,27-
24=0.
5X×3

Or
,0.
5X=3/
3

Or
,X=2

Ti
meAl
l
owed=Ti
meTaken+Ti
meSav
ed

=8+2=10hour
s

Earni
ngsunderRowanPlan=(Hour
sWorked×Rat
eperHour
)+[
(Ti
meSav
ed/Ti
me
All
owed)×(TimeTaken×Rat
eperhour
)]

=(
8×3)
+(2/
10×8×3)
=Rs.28.
8

Quest
ions
1.St
andardt
imeforaprojecti
s120hours.Aworkertakes96hour st
of i
nishthejob.
Timerat
eofwagesisRs.10perhour
.Calcul
atet
het otalear
ningsandtheeffecti
ve
hour
lywagesoft
heworkerunder(i
)Halseypl
anand( ii
)RowanPl an.

2.I
naf actory,standar
dtimeforajobis84hours.Thehour
lyr
ateofwagesisRs.
50.
Halseypr emium planisinoper
ati
onatthefact
ory.Mr.A,aworkercompl
etedt
hejobat
l
esst hanst andardtimeandhisef
fecti
vehourl
yrateofwagesi
sRs.60.Whatwil
lbehi
s
tot
alear ningsifheworkedunderRowanpremium plan?

Answer
.(i
)Hal
seyPl
an:
Rs.
1080,
Rs.
11.
25;

RowanPl
an:
Rs.
1152,
Rs.12

(
ii
)Ti
met
aken60hour
s,Ti
mesav
ed24hour
s,Ear
ningsRs.
3857.
14