#### Gantt Task and Bonus System

Introduction to Gantt task and bonus system

This system also includes establishment of standards after performed proper time and motion studies. Workers who done their work in the standard time, are known as 100% efficient. They obtain wages for the time taken as well as bonus at a fixed percentage of the wages earned. Workers who done their task in less than the standard time acquire wages for the standard time as well as bonus at a fixed percentage of wages earned. Bonus is usually 20% of time wages earned. Slow workers are paid definite wages for the day. Mr. Gantt has state that If a man follows his instructions, and completes all the work laid out for him like constituting his proper work for the day, he is paid a exact bonus in addition to the day rate that he all the gets. Though, at the end of day, he has failed to complete all of the work laid out, he does not acquire his bonus, but just his day rate. "The disadvantages" of this plan is that workers are separated into groups one who acquire the bonus and the others who do not.

Example

Standard Rate                                     \$ 2 per hour

Standard hours for the job 10 hours.

Bonus is 20% of standard time.

I Worker had done the work in 12 hours.

II Worker had done the work in 10 hours.

III Worker had done the work in 8 hours.

First worker shall obtain at the rate of \$ 2 per hour the wages for the work for 12 hours that is, \$ 24. Second worker shall acquire the wages for 10 hours at the rate of \$ 2 per hours that is \$ 20 plus 20% of 10 hours that is for 2 hours @ 2 or \$ 4, so in aggregate 24. We can state that he shall be compensated for 12 hours. The 3rd worker who does the work in 8 hours shall obtain the wages for 10 hours because it is the standard time set for the job plus 20% of 10 hours. So, his compensation shall be 10 × \$ 2 + 2 × \$ 2 that is, \$ 20 + 4 = \$ 24 per hour. So, with the reduction of time spent on the job, the salary per hour increases and therefore, the total earnings per day go on rising. So, this system is also termed as Progressive Rate system. So, it is a system of time-rate for sub-standard workers and piece-rate for above standard and standard workers.

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