Contribution

Types of Wage Incentive Plans

Wage fillip invents may be classified into two broad categories as follows:
Individual incentive plans, and
Group incentive plans.

Individual Incentive Plans

Under unmarried incentive plans, lettuce are related directly to the slaying of the individual worker. In case of sort incentive schemes, earnings of a group are related to the performance of the group as a whole. Individual incentives may be base on age or turnout. Under time found plans, a monetary tired time is determined and bonus is presumptuousness if a worker completes the job in less than standard time. Under output based plans, a standard of output is determined and workers producing more(prenominal) than the standard output are given bonus. Various types of individual incentive plans are given in following diagrams:


1. Individual Incentives

Time Based

1. Halsey or Weir Plan

This plan was develop by F.A. Halsey and was first introduced in the Weir Engineering Works, England. Under this plan, a standard time is fixed on the basis of outgoing performance records. A worker who completes his job within or more than the standard time is stipendiary a guaranteed time wage. A bonus (usually 50 per cent) of the time saved is paid to a worker who completes his job in less than the standard time. The bonus is taked o the basis of time rate.






Merits
The plan is simple to understand. A worker can easily calculate his earnings.
Both the employee: and the workers derive equal benefit of time saved.
A guaranteed minimum wage to every worker provides a experience of security.
The plan encourages the workers to be efficient because bonus is based on time saved.

Demerits
Standards based on past performance may not be scientific and fair.
Workers get only half of the benefit of their efficiency.
If the workers rush through the job to save more time, the quality of production may suffer. Wastage and spoilage may withal increase.
Much clerical work is involved because records of...If you want to get a full essay, order it on our website: Ordercustompaper.com



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