Plans of incentive wage payments

Question

Explain importance of plans of incentive wage payments?

Answer 1

Some important these plans of incentive wage payments are as follows:

1. Halsey Plan: Under this plan a standard time is fixed in advance for completing a work.

2. Rowan Plan: Under this method minimum wages are guaranteed given to worker at the ordinary rate for the time taken to complete the work.

3. Emerson Plan: Beneath this organization, wages on the time basis are guaranteed even to those workers whose output is below the standard.

4. Bedeaux Plan: It provides comparable standards for all workers. The value of time saved is divided both to the worker and his supervisor in the ratio of ¾ and ¼ respectively.

5. Taylor’s Differential Piece Rate System: F.W. Taylor, founder of the scientific management evolved this system of wage payment.

6. Gantt’s Task and Bonus Plan: In this, a minimum wage is guaranteed. Those completes their job in particular time period, least pay is given to anybody.

7. Profit Sharing –  It is a method of remuneration under which an employer pay his employees a share in form of percentage from the net profits of an enterprise, in addition to regular wages at fixed intervals of time.