Demerits of Time Rate Wage System

Question

What are the demerits of Time Rate Wage System?

Answer 1

Following are the demerits of Time Rate Wage System:

1 It does not take in to account the ability and capacity of the workers so the skilful and more capable workers who have higher production efficiency will demoralize.

2 Time rate system is unrelated to the productivity and does not provide extra motivation for extra efforts by the workers.

3 The labor charges for a particular job do not remain constant. This put the management in a difficult position in the matter of quoting rates for a particular piece of work.

4 There is a possibility of systematic evasion of work by the workers, since there is no specific target or demand for specific quantity of work by the management.

5 Time rate system does not ask for maintaining individual workers record, it becomes difficult for the employer to determine his relative efficiency for the purpose of performance evaluation for future promotion or rewards. Thus it does injustice to the outstanding employees.