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Working time is the period of time that an individual spends at paid occupational labor. Working time may vary from person to person often depending on location, culture, lifestyle choice, and the profitability of the individuals livelihood. Unpaid labors such as personal housework or caring for children are not considered part of the working week. Many countries regulate the work week by law, such as stipulating minimum daily rest periods, annual holidays and a maximum number of working hours per week. Standard working hours (or normal working hours) refers to the legislation to limit the working hours per day, per week, per month or per year. If an employee needs to work overtime, the employer will need to pay overtime payments to employees as required in the law. Standard working hours of countries worldwide are around 40 to 44 hours per week, and the additional overtime payments are around 25% to 50% to the normal hourly payments. Maximum working hours refers to the maximum working hours of an employee. The employee cannot work more than the level specified in the maximum working hours law. Working time

Gradual decrease in working hours The New Economics Foundation has recommended moving to a 21 hour standard work week to address problems with unemployment, high carbon emissions, low well-being, entrenched inequalities, overworking, family care, and the general lack of free time. Actual work week lengths have been falling in the developed world. Most countries in the developed world have seen average hours worked decrease greatly. For example in the U.S in the late 19th century it was estimated that the average work week was over 60 hours per week. Today the average hours worked in the U.S is around 33, with the average man employed full-time for 8.4 hours per work day, and the average woman employed full-time for 7.7 hours per work day. The front runners for lowest average weekly work hours are the Netherlands with 27 hours, and France with 30 hours. At current rates the Netherlands is set to become the first country to reach an average work week under 21 hours. Gradual decrease in working hours

DAY-WORK Day-work means simply that a worker is paid a fixed rate for being present on a site for a full working day, which is usually eight hours of work. The amount of work produced depends entirely on the supervisor’s ability to encourage the worker, and the worker’s own motivation and sense of responsibility. In many circumstances this can lead to very low productivity, especially with permanent staff who have no particular incentive to work hard. They know they will be paid (generally very poorly) whether they work or not. Day-work

PIECE-WORK Piece-work Piece-work is any type of employment in which a worker is paid a fixed piece rate for each unit produced or action performed regardless of time. Piece work is a form of performance-related pay. Piece-work is a method of setting work, usually preferred by the private sector. The worker is allocated an amount of work for an agreed rate of pay. The work they do is measured and the more they do the more they are paid. This approach can give very high productivities, but it can also result in exploitation, especially when the rate for the work is too low. Casual workers are seldom in a good position to negotiate favourable rates. The most dangerous situation is when workers have to put in very long hours to achieve even a subsistence rate of pay. Piece-work

Work on the plantation consisted primarily of task-work, that supposes a flat fee for a specific amount of work, whereas time work was paid by the hour. TASK-WORK Task-work evolved on projects where the workers were subject to government regulations, which meant they could not be paid more than the prevailing government wage for a day’s work. Some other incentive had to be provided. Setting a realistic task, or amount of work to be completed for the day, meant that workers could work as hard as they wanted and then go home to do other things. Tasks are generally set to be achievable in 70 per cent of the working day (a working day being assumed as a period of eight hours), but are often completed in 50 per cent of the working day (i.e. in four hours). This approach has proved very successful in practice, often doubling the amount of work achieved in a day; and by inference doubling the productivity of the individual worker, as well as halving the costs. The use of task-work has previously been implemented in the program for excavating activities. Task-work is widespread, but not always used correctly. Standard task tables are used by the brigade leaders skilled to set out task-work. Tutwork is the work done by the piece, as in nonmetalliferous rock, the amount done being usually reckoned by the fathom. Task-work

Remuneration on Result basis

Remuneration on Result basis Any system of payment of wage by which wages gets directly related with the output Advantages: Disadvantages: (1) Only in respect of output, payment is made. (2) More & more is produced & hence more earned by the efficient workers. (3) More products are produced by the workers in their own interest so that they can earn more, as a result more production & less supervision cost is there under this method. (4) Idle time is not required to be paid. (5) Fixed overhead per unit is reduced by greater output. (6) The method, on the basis of careful time study, helps setting up of standards. (7) At the instance of more efficient workers, less efficient workers try to improve themselves. (8) For enhancing earning, scopes are provided to the workers. (1) The method will not be applicable in cases where measurement of output in terms of homogenous units cannot be done. (2) There is a chance of quality of work to get deteriorated. (3) The chances of more scraps, defectives are there. (4)More chances of machinery breakdown may be created by the speedy production. (5) As the workers overworked during early life, this may bring about fatigue early. (6) Under this method, if there is no work, the workers will not get anything unless a guaranteed day rate is there. (7) If continuous work cannot be provided, chances of unrest are there. (8) Much initial cost is involved as piece rate is fixed on scientific basis. Remuneration on Result basis

Straight Piece-Rate system Straight piece rate may be applicable to the work of an individual or to the work of a group of individuals. The system is called individual piece work, when prescribed for a work done by an individual and by multiplying the number of units produced by a worker or number of similar operations done by him by his piece rate, his earnings is obtained. Alternatively, the system is called group piece work, when prescribed for a work done by group of individuals and by multiplying the number of units produced by the group or the number of similar operations done by the group by the group piece rate, the earnings of the group as a whole is obtained. In respect of every worker working on the basis of individual piece rate or in respect of every group working on the basis of group piece rate, piece work card is used, for the purpose of obtaining necessary information. Workers usually rectify the defective units without extra remuneration, which gets accepted after rectification. The formula for wage computation under this system is: Wages = Number of units produced x Rate of wage per unit Under this system, after careful time and motion study, and after considering the comparable time rate for the same class of workers, the straight rate per piece of output is fixed. Instead of one unit; for a definite number of units, the rate may be fixed. Irrespective of the time taken by the worker, wages equal to his output multiplied by the piece rate is received by the worker. The piece rate is fixed as below: Let $.1.20 be the comparable hourly rate of pay. According to the time and motion study, the standard rate for the production of a piece of work is 35 minutes. The piece rate will be: ($.1.20 /60 minutes)*35 minutes = $.0.70 Piece Wage System

Straight Piece-Rate system Matters to be considered: Precautions: (a) The responsibility of fixing piece rates should be given to the person having technical knowledge & experience. (b) Consultation should be made of the past records of similar work. (c) The time required by an average skilled worker for the production of a unit should be taken into consideration. (d) Before the fixation & introduction of piece rate, the method of production & efficiency gain should be known to the worker. (e) The rate should not be too high or too low, as both is dangerous. (f) For eliminating avoidable motions & for the purpose of ascertaining the time required for producing a unit or making operation by an average workman, time & motion study should be undertaken. (a) For eliminating defectives & protecting the standard of work, work should be inspected. (b) For the minimization of the wastage, defectives, spoilage, breakdown etc., the work should be supervised. (c) For avoiding bottle-neck in work-flow, there should be discipline in work & attendance. (d) For providing incentive to the workers for the purpose of increasing the output, piece rate should be made attractive , yet not too high. (e) As a rule, the workers should rectify the defectives without extra remuneration. (f) In case of group piece rate, some members could be exploited by the other members of the group, which should be avoided (e.g. One or more member, in spite of remaining tactfully idle, may share the earnings of the group). Straight Piece-Rate system

Taylor’s Differential Piece Rate system In this system, for each job, two different piece rates are fixed. For the worker who is working at less than 100% efficiency, the lower rate is applicable, which is equivalent to 83% of the time rate. On the other hand, for the workers working at & above 100% efficiency, the higher rate, which is fixed at 125% of time rate plus 50% of time rate in the form of incentive, is applicable. For the performance of standard task, a standard time may be fixed. In this case, the efficiency will be worked out as below: % Efficiency = (Standard time/Actual time taken)*100 Alternatively, during a standard time, standard output could be fixed, in which case, the measurement of efficiency will be as below: % Efficiency = (Actual output/standard output)*100 No day wage has been guaranteed by Taylor. The workers by whom 100% efficiency cannot be attained are penalized because the lower rate is abnormally low. On the other hand, very high rewards are achieved by the efficient workers, as the higher rate is very high. F.W Taylor, who is regarded as the father of scientific management, introduced this system in the United States. Taylorism

Merrick Differential piece rate system Under Taylor’s differential piece rate system, workers by whom 100% efficiency cannot be attained are penalized, whereas under Merrick system, there is no imposition of such punitive lower rate upon them; whereas, those by whom certain percentage or more, of efficiency can be achieved, are rewarded by higher differential rates. This system made by Mr. Merrick, is a modification of Taylor’s differential piece rate system. The rates are as below: Normal rate is applicable Normal rate + 10% of normal rate is allowed Normal rate + 30% of normal rate is allowed No day wage has been guaranteed under Merrick system also. Encouragements are given to the efficient workers, at the same time; penalization is not imposed upon less efficient workers. This system is also called multiple piece rate system. Merrick Differential piece rate system

Remuneration on Time basis

Time Rate System Time-Rate System The system is also called time work system, day work system, day wage system, day rate system etc. Under this scheme, payment is made to a worker at a specified wage rate on the basis of his attendance irrespective of his outturn. The specified wage rate could be in terms of hour, day, week or month. After the existing rate for similar employment in the area has been considered, the rate is fixed. The wage rate could be a consolidated one or it could be on a scale which starts from the minimum and through increments at different stages, rises to the maximum. At a particular stage of the scale, there may be imposition of efficiency check up. Time-Rate System

Time Rate system Time Rate system Time rate system is suitable in case of: Workers who are highly skilled Workers who are unskilled & trainees When the work is beyond the control of the worker When on the output of the previous worker in the chain, the work is dependent When the work cannot be measured in terms of homogeneous units Close supervision is required for the job Work is of high quality & precision. Time Rate system

Remuneration on Result basis Time Rate System Advantages: Disadvantages: Much clerical effort is not required for the calculation of wages, which can be done easily The worker can verify the calculation of the wages from the specified rate and the gate time, as a result no suspicion will arise in his mind For the period of attendance, assurance is given to the worker of his wage at the specified rate For protecting the quality of work, it is the most suitable method Time rate system is only applicable in cases where measurement of work cannot be done in terms of a measuring stick. From the view point of workers it can be said that, efficiency is not encouraged by time rate system. All are treated at par; thereby dissatisfaction arises amongst the efficient workers who lose efficiency gradually. From the employers point of view it can be said that, for much idle time he has to make payment. From the view point of nation it can be said that, if time rate system is introduced, the nation suffers from low rate of production. Remuneration on Result basis

High Wage Plan High Wage Plan In this case, time rate is fixed at a level which is higher than the prevailing rate in the locality for a similar employment and as a result, standard of efficiency and output fixed for a worker is correspondingly high. A worker is taken out of the scheme if the level of efficiency cannot be attained by him. Obviously, the employer assured the working conditions suitable for attaining the standard efficiency. High wage plan is suitable for organizations whose objective is to achieve high quality of output and high productivity. Advantages of High wage plan are: Like ordinary time rate, the scheme is simple. Supervision cost is reduced & through higher productivity, labour cost & fixed overhead per unit of output also gets reduced. Incentives are provided by which workers gets attracted. High Wage Plan

Differential Time Rate system Under this system, for different level of efficiency, different time rates are fixed. A percentage of efficiency is fixed & the worker gets normal rate up to that. If that percentage of efficiency is crossed by the worker then there will be step by step increase in his time rate. Let $. 8 be normal hourly rate. The percentage of efficiency up to which the normal hourly rate is applicable is S. 50 and for each 10% increase in efficiency, the multiplier of the hourly rate increased by 10%. At different levels, the hourly rates will be as follows: Efficiency, Above Efficiency, Up to Hourly Rates 50% $. 8 * 1.00 = $. 8.00 60% $. 8 * 1.10 = $. 8.80 70% $. 8 * 1.20 = $. 9.60 80% $. 8 * 1.30 = $. 10.40 Differential Time Rate system

A timesheet (or time sheet) is a method for recording the amount of a worker's time spent on each job. Factory workers often have a "time card" and "punch in" by inserting their card into an automatic timestamp machine (sometimes known as a bundy clock) when starting and ending their work shift. Time Sheet

Weekly Time Sheet

Gantt Task Bonus System Unlike Taylor & Merrick system, day wages are guaranteed under this system. A high standard or task is set. A time rate is paid to the worker who is not able to attain the standard. On the other hand, a high piece rate including a bonus of 20% of the time rate or 20% of ordinary piece rate is paid to the worker attaining or exceeding the standard. Therefore, fixation of time rate, piece rate and standard performance is required under Gantt task bonus system. Thus this combines time wage and piece wage system. Under this system, as the worker proceeds towards the standard, the labour cost per unit tends to diminish. Gantt Task Bonus System

If labour could be measured adequately in simple homogeneous units of time, such as labour-hours, the problems of economics would be considerably simplified. But labourers differ in the amount and character of their training, in their degree of skill, intelligence, and capacity to direct their own work or the work of others, and in the other special aptitudes that they require. Apart from the circumstances that the mobility of labour is imperfect and that it cannot be transferred readily to the employments in which its products have the highest value, the wages of different kinds of labour cannot be taken to be payments for larger or smaller “quantities of labour.” The price per unit of time that a particular kind of labour commands in the market depends not only upon the technical efficiency of the labourer but also upon the demand for the particular services that he is able to furnish, upon their relative scarcity, and upon the supply of other productive agents. Thus, the attempts of the earlier economists and of some socialists to find a simple and direct relation between the value of a product and the quantity of labour that it embodies proved fruitless.

70 units per hour · 175 hours per moth = 12,250 units per moth TASK 1 Before the revision of the output norms the worker's output was 10,500 units per month (175 working hours per month). After implementing some measures for the organization of labor output norm was set of 70 units per hour. Evaluate the percentage of reducing in regulatory laboriousness of products, and increasing in labor productivity, and what will be the monthly output of the worker? Monthly output of the worker after the revision of the output norms, units: 70 units per hour · 175 hours per moth = 12,250 units per moth   Working hours per moth Monthly output of the worker, units Output norm Regulatory laboriousness of products Increasing in labor productivity, % minutes Reducing, % Before the revision of the output norms 175 10500 60 1,00 X After the revision of the output norms 12250  70 0,86 14,29 16,67 Labour productivity

10500 units per month / 175 hours per moth = 60 units per hour TASK 1 Before the revision of the output norms the worker's output was 10,500 units per month (175 working hours per month). After implementing some measures for the organization of labor output norm was set of 70 units per hour. Evaluate the percentage of reducing in regulatory laboriousness of products, and increasing in labor productivity, and what will be the monthly output of the worker? Output norm before the revision, units: 10500 units per month / 175 hours per moth = 60 units per hour   Working hours per moth Monthly output of the worker, units Output norm Regulatory laboriousness of products Increasing in labor productivity, % minutes Reducing, % Before the revision of the output norms 175 10500 60 1,00 X After the revision of the output norms 12250  70 0,86 14,29 16,67 Labour productivity

TASK 1 Labour productivity Before the revision of the output norms the worker's output was 10,500 units per month (175 working hours per month). After implementing some measures for the organization of labor output norm was set of 70 units per hour. Evaluate the percentage of reducing in regulatory laboriousness of products, and increasing in labor productivity, and what will be the monthly output of the worker? Regulatory laboriousness of products, minutes: Before the revision of the output norms : 60 min. / 60 units per hour = 1,0 min. per unit After the revision of the output norms : 60 min. / 70 units per hour = 0.86 min. per unit   Working hours per moth Monthly output of the worker, units Output norm Regulatory laboriousness of products Increasing in labor productivity, % minutes Reducing, % Before the revision of the output norms 175 10500 60 1,00 X After the revision of the output norms 12250  70 0,86 14,29 16,67 Labour productivity

TASK 1 Labour productivity Before the revision of the output norms the worker's output was 10,500 units per month (175 working hours per month). After implementing some measures for the organization of labor output norm was set of 70 units per hour. Evaluate the percentage of reducing in regulatory laboriousness of products, and increasing in labor productivity, and what will be the monthly output of the worker? Reducing the regulatory laboriousness of products, %: (1.00 min. – 0.86 min.) * 100 / 1.00 min. = 14.29 %   Working hours per moth Monthly output of the worker, units Output norm Regulatory laboriousness of products Increasing in labor productivity, % minutes Reducing, % Before the revision of the output norms 175 10500 60 1,00 X After the revision of the output norms 12250  70 0,86 14,29 16,67 Labour productivity

TASK 1 Labour productivity Before the revision of the output norms the worker's output was 10,500 units per month (175 working hours per month). After implementing some measures for the organization of labor output norm was set of 70 units per hour. Evaluate the percentage of reducing in regulatory laboriousness of products, and increasing in labor productivity, and what will be the monthly output of the worker? Increasing in labour productivity, %: (70 units per hour – 60 units per hour) * 100 / 60 units per hour = 16.67 %   Working hours per moth Monthly output of the worker, units Output norm Regulatory laboriousness of products Increasing in labor productivity, % minutes Reducing, % Before the revision of the output norms 175 10500 60 1,00 X After the revision of the output norms 12250  70 0,86 14,29 16,67 Labour productivity

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