Professional Documents
Culture Documents
- Benham
METHODS OF WAGE
PAYMENTS
Time Rate Or Time Wage
System
Piece Rate Or Piece Wage
System
Incentive Plans Of Wage
Payments
To be contd.
The rate of wages may be revised from time to time
on the basis of cost of living index or according to the
agreement between the workers and the employers.
It is also called as time rate plan .
The wages under this can be calculated as follows-
Total wages =
No. of hours /days worked * Rate per hour/ day
EXAMPLE
ADVANTAGES
Simple
Security
Beneficial To Fresher's
Quality Production
Acceptable To Unions
Proper Handling Of
Machines And Tools
Satisfactory
Reduces Clerical Work
Equality of Wages
DISADVANTAGES
Lack Of Initiative
Unscientific
Difficult To Determine Cost
Greater Need For Supervision
Lengthening Of The Work
Process
Employer Employee Conflict
Too Much Security
INCENTIVE PLANS OF
WAGE PAYMENT
- George Terry
Increase Productivity.
Decrease Costs.
Increase The Earning
Of The Personnel.
HALSEY PLAN
Halsey premium plan is a simple combination of time and
speed based of payment.
Under this plan, a minimum time wage is guaranteed to
every worker.
A standard time is fixed for the completion of a job. If a
worker performs his job in less than the standard time ,he is
given bonus . But the is penalty for performing the job in
more than the standard time fixed.
The slow workers is paid the time wages and the efficient
worker is paid some bonus in addition to the time wages .
The bouns is in proportion of the wages which he could have
earned during the time saved .
12 hours
8 hours
R.s. 9 per hour
wages for 50% of the
time saved
ROWAN PLAN
The rowan plan is a modification of the HALSAY PLAN.
It also guarantees the minimum time wages and does not
penalized a slow worker .
A standard time is fixed for completion of a job and bonus is
paid to a worker on the basis of time saved .
Here , the bonus is that proportion of wages for the time
taken which the time saved bears to the standard time .
Efficiency is thus measured as,
Time Saved / Standard Time
As the time saved increases, time taken will be reduced and
as such the bonus would increases at a diminishing rate .
This will check over-speeding and overcome the major
drawback of HALSEY PLAN .
Calculation Of
Rowan
Wages Under
Plan
12 hours
8 hours
R.s. 9 per hour
300 Bs ( 5 hours )
240 Bs (4hours )
R.s. 8 per hour
1 hour
= 5*8 + 75% * ( 5- 4) * 8
= Rs.46
category of
workers
Performance of
standard task
Wage rate
Below average
Average workers
Below 83%
83% - 100%
120% of basic
piece rate