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    Labor Slides

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    Shahvaiz Meer
    This document describes several premium bonus plans for incentivizing worker productivity. The main features common to most plans are that they combine time and piece rate systems, with time wages guaranteed and additional piece rates paid according to work. Three specific plans are outlined: 1) Halsey Plan pays a 50% bonus on time saved; 2) Halsey Weir Plan pays a 30% bonus; 3) Rowan Premium Plan calculates bonus as a percentage of time saved multiplied by time and rate. All aim to reward workers for completing work more quickly than the standard time.

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    Labor Slides

    Uploaded by

    Shahvaiz Meer
    44 views13 pages
    This document describes several premium bonus plans for incentivizing worker productivity. The main features common to most plans are that they combine time and piece rate systems, with time wages guaranteed and additional piece rates paid according to work. Three specific plans are outlined: 1) Halsey Plan pays a 50% bonus on time saved; 2) Halsey Weir Plan pays a 30% bonus; 3) Rowan Premium Plan calculates bonus as a percentage of time saved multiplied by time and rate. All aim to reward workers for completing work more quickly than the standard time.

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    This document describes several premium bonus plans for incentivizing worker productivity. The main features common to most plans are that they combine time and piece rate systems, with time wages guaranteed and additional piece rates paid according to work. Three specific plans are outlined: 1) Halsey Plan pays a 50% bonus on time saved; 2) Halsey Weir Plan pays a 30% bonus; 3) Rowan Premium Plan calculates bonus as a percentage of time saved multiplied by time and rate. All aim to reward workers for completing work more quickly than the standard time.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    44 views13 pages

    Labor Slides

    Uploaded by

    Shahvaiz Meer
    This document describes several premium bonus plans for incentivizing worker productivity. The main features common to most plans are that they combine time and piece rate systems, with time wages guaranteed and additional piece rates paid according to work. Three specific plans are outlined: 1) Halsey Plan pays a 50% bonus on time saved; 2) Halsey Weir Plan pays a 30% bonus; 3) Rowan Premium Plan calculates bonus as a percentage of time saved multiplied by time and rate. All aim to reward workers for completing work more quickly than the standard time.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 13

    Premium Bonus Plans MBS-10-43

    Premium Bonus Plans

    The system of wage payment under this plan aim at inducing workers to increased efficiency and greater output.

    The main features of most incentive plans are: It combine both time and piece rate systems Time wages are guaranteed to all workers Piece rate system in which employee are paid according to work Check the speed of worker either worker perform work on stranded or below or above slandered

    There are two method of remuneration Time rate system Piece rate system

    Advantage
    This

    method is very simple and calculation of wage is easily understood by the worker Worker are assure of a certain amount of wages payable even if there is stoppage of work due to power failure machine break down Quality of product is batter in this method It ensures equality and care

    Disadvantages
    Low quality : when the worker ate paid on the on time basis they tend to be slow in work this result tend in lower production quantity. Extra supervision : in this method extra supervision is needed so that worker do not waste time

    1. Halsey Plan: F. A. Halsey,


    The

    method recognizes individual efficiency. It advocates a bonus based on time saved. Standard time and standard work are prescribed in advance. If an employee completes the job less than the standard time, he is entitled to receive a bonus for the time saved. A bonus equal to 50% of the wage time saved is paid to the workers as a reward to his good work Workers, who fail to achieve the standard, get the time wage

    Method of Computation:
    Total

    Earnings of the worker = (Time Rate X Time Taken) + (1/2 X Time Saved X Time Rate) Example: The standard time for producing 250 articles is 65 hours. The rate of wages is Rs. 2.50 per hour. The actual time taken for producing 250 articles is 55 hours. What are the earnings of the worker under Halsey plan?

    Solution:
    1.

    Total Earnings of the worker =(Time Rate X Time Taken) + (1/2 X Time Saved X Time Rate)(Rs. 2.50 X 55 hours) + (1/2 X 10 X Rs. 2.50) =Rs.150 2. Effective Wage rate per hour=( 150/55 hours)= Rs.2.72

    2. Halsey Weir Plan:


    This

    method is more or less similar to the Halsey plan except that in Halsey Weir plan the bonus is equal to 30% of the time saved. Example: The standard time for producing 250 articles is 65 hours. The rate of wages is Rs. 2.50 per hour. The actual time taken for producing 250 articles is 55 hours. What are the earnings of the worker under Halsey plan?

    Solution:
    1.

    Total Earnings of the worker =(Time Rate X Time Taken) + (30%X Time Saved X Time Rate) (Rs. 2.50 X 55 hours) + (30% X 10 X Rs. 2.50) =Rs.145 2. Effective Wage rate per hour=( 145/55 hours)= Rs.2.63

    (3) Rowan Premium Plan:


    Rowan

    plan is also similar to Halsey plan, except in the calculation of bonus. The main features of his plan are: Workers receive remuneration based on actual time taken by them in completing the job Workers receive bonus for the time saved i.e., for the difference between the standard time and actual time.

    Its formula is:


    1.

    Bonus = (Time Saved/Time allowed) X Time taken X Time rate 2. Earnings = (Time taken X Time rate) + Bonus

    Example:
    The

    standard time for producing 250 articles is 65 hours. The rate of wages is Rs. 2.50 per hour. The actual time taken for producing 250 articles is 55 hours. Solution: 1. Bonus = (Time Saved/Time allowed) X Time taken X Time rate= (65-55/65) X 55 X Rs. 2.50 = Rs. 21.15 2. Earnings = (Time taken X Time rate) + Bonus= (55 X Rs. 2.50) +21.15385 = Rs. 158.65 3. Effective Wage Rate per hour = Rs. 158.65/55 = Rs. 2.89

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