3. A. Halsey plan
• This plan was first designed by F.A. Halsey of
Rand Deill Co., Canada.
• According to this plan, a standard time is fixed
for completing a work in advance.
• If a worker completes his task in less than
standard time is paid for some of the time
saved.
• Generally wages for one half of time saved are
paid.
4. Example.
Time allowedfor a task :20 hrs
Actual time taken :15hrs
Hourlyrate of pay :Rs.1.50
Calculate the wages of the workers.
Solution.
15 X 1.5 +(20-15/2)X 1.50
= 12.50 + (2.5X1.50)
=22.50+ 3.75 =Rs.26.25
In this equation, a worker gets Rs. 3.75 as incentive for
saving four hours.
T X R + (S-T/2) X R
S=standard time taken.
T=time taken.
R=hourly rate.
5. Merits and demerits.
Merits.
Simple.
Beneficial to efficient
workers.
Minimum base-wage
is guaranteed.
No need to over
speed.
Demerits.
Fixed percentage of
return.
Fixing of standard
time.
Quality suffers.
6. B. Rowanplan
This system is very much similar to Halsey’s
plan.
The only difference between Halsey and
Rowan Plans is the method of calculating
bonus.
In this bonus is that proportion of wages of
the time taken which the time saved bears to
the standard time allowed.
T X R + (S-T/2) X T X R
7. Merits and demerits
Merits.
Guaranteed minimum
wages.
Efficiency is
rewarded.
Demerits.
Calculation of bonus
is complicated.
Discourages workers
to over-achieve.
8. C. Emerson plan
Emerson has developed this efficiency plan in
1910.
Under this, a standard output is fixed for
determining the efficiency of worker.
A worker reaching 66 2/3% of efficiency is paid
only minimum wages and bonus is paid only
when his efficiency crosses this limit.
9. Merits and Demerits.
Merits.
Simple & easy to
understand.
Guaranteed minimum
wage.
Encourage workers.
Demerits.
More clerical work.
Discourage the
workers.
10. D. Bedeaux plan
• This plan was devised by Charles E. Bedeaux in
1911.
• This plan provide comparable standards for all
workers.
• In this benefit of time saved goes to both to the
worker as well as to his superior in the ratio of ¾
and ¼.
• The standard time for each job is determined in
terms of minutes which are called Bedeaux
Points or B’s.
Each B represents one minute through time and motion
11. Merits and Demerits.
Merits.
Simple.
Guaranteed minimum
wages.
Motivated Supervisor.
Demerits.
Quality suffers.
More clerical work &
complicated work.
Workers do not like
that foreman should
share their bonus.
14. A. Taylor’s differential piece-rate system
The underlying principle of this system is to
reward an efficient worker and penalise the
insufficient worker.
Under this, a standard time was fixed for
completing a task, if a worker completes the
task in the standard time he is paid at higher
rate and lower rate is paid if more than the
standard time is taken.
15. Features.
• No minimum wages are guaranteed.
• A standard time is fixed for completing the task.
• Higher rate is given if work is completed in
standard and lower rate is offered if more
standard if more time is taken.
16. Merits and Demerits.
Merits.
• Simple.
• Good incentives to
efficient worker.
• Preferred by
employees.
Demerits.
• Punish slow workers.
• Disunity among
workers.
• No guaranteed
minimum wages.
• Quality suffers.
17. B. Gantt’s task and bonus plan
• A standard time is fixed for completing the
work.
• A worker taking standard or more time gets
wages on an hourly rate.
• A bonus ragging from 25% to 50% is paid for
completing the task in less than standard
time.
• Demerits.
Less efficiency of workers.
Disunity among workers.
19. A. Priestman’s plan
• Under this plan a standard production is fixed
for the whole factory.
• If productivity exceeds the standard then
bonus is paid in accordance with the increase;
and if not workers will get minimum wages
only.
• A team spirit is visible because production will
increase with the collective efforts of everyone
in the organisation.
20. B. Scalon plan
• This method is named after Joseph Scalon of USA.
• In this, a payment of one percent participating
bonus for every one percent increase in
productivity.
• The bonus is available to all employees except
top management.
• For this bonus, a reserve fund of one- half of first
fifteen % is created for off setting any change in
labour cost; and after every year if the reserve is
unused it will distributed among employees in
last month of the year.
21. C. Co-partnership
• Under this scheme, the employees are offered
shares of the enterprise at reduced rates.
• The underlying of this method is to make
workers feel themselves as a part of the
organisation and understand the viewpoint of
the management.
• Because as a co-partner they will try to make
the concern more and more profitable.
22. D. Profit sharing
• In this plan workers should also get a part of profits
for contributing their labour.
• These profits are paid to workers in addition to their
nominal wages.
• The payment is made after ascertaining net profit.
Objective-
• To recognise the right of workers for sharing the
prosperity of the company.
• To make workers feel as members of the enterprise
rather than only employees.
• Cordial relations between employees and
employers.
23. Merits.
1. Increase in productivity.
2. Cordial relations.
3. Reduction in labour turnover.
4. Additional earning for workers.
5. Less need for supervision.