Contribution

Types of Wage Incentive Plans Wage fillip invents whitethorn be classified into two broad categories as follows: Individual inducement excogitates, and Group incentive aims. Individual Incentive Plans under(a) unmated incentive plans, lettuce are related directly to the slaying of the someone 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 given if a worker completes the job in little than streamer time. Under outfit based plans, a standard of output is determined and workers producing much(prenominal) than the standard output are given bonus. several(a) types of individual incentive plans are given in adjacent 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 ground 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 work out his earnings. Both the employee: and the workers derive equal benefit of time saved. A guaranteed minimum wage to every wor ker provides a have it off of security. T! he 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 take off only fractional 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 thus far increase. Much clerical work is involved because records of...If you want to get a full essay, order it on our website: BestEssayCheap.com

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