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WAGE INCENTIVE PLANS WAGE INCENTIVE PLANS INVIDUAL INCENTIVE

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Presentation on theme: "WAGE INCENTIVE PLANS WAGE INCENTIVE PLANS INVIDUAL INCENTIVE"— Presentation transcript:

1 WAGE INCENTIVE PLANS WAGE INCENTIVE PLANS INVIDUAL INCENTIVE
TIME BASED OUTPUT BASED GROUP INCENTIVE PRIESTMAN SCANLON

2 INDIVIDUAL INCENTIVES
TIME BASED PLANS OUTPUT BASED PLANS HALSEY PLAN ROWAN PLAN EMERSON PLAN BEDEAUX PLAN TAYLOR PLAN MERRICK PLAN GANTT PLAN

3 HALSEY & ROWAN PLAN HALSEY PLAN W = T * R + 50% (S-T) * R ROWAN PLAN
DEVELOPED BY F.A HALSEY STANDARD TIME IS FIXED GURANTEED TIME WAGE TO WORKERS BONUS FOR TIME SAVED BY A WORKER W = T * R + 50% (S-T) * R ROWAN PLAN DEVELOPED BY JAMES ROWAN STANDARD TIME IS FIXED GUARANTEED TIME WAGE BONUS IS THE PROPORTION OF WAGES WHICH TIME SAVED BEARS TO STANDARD TIME W=T*R+T*R(S-T)/S

4 EMERSON & BEDEAUX POINT PLAN
EMERSON EFFICIENCY PLAN DEVELOPED BY HARRINGTON EMERSON PRESCRIBED LEVEL OF EFFICIENCY AT 66.67% EFFICIENCY= COMPARING ACTUAL TIME WITH STANDARD W=T*R+%AGE OF BONUS*T*R BEDEAUX POINT PLAN DEVELOPED BY CHARLES E. BEDEAUX STANDARD TIME= EXPRESSED AS B’s TIME OF OPERATION & REST TIME 75%= PAID TO WORKERS 25%=PAID TO FOREMAN W=S*R+75% OF R(S-T)

5 OUTPUT BASED PLANS TAYLOR’S DIFFERENTIAL PIECE RATE PLAN
STANDARD TASK-TIME AND MOTION STUDY TWO PIECE RATES ALLOWED- LOWER & HIGHER MERRICK’S MULTIPLE PIECE RATE PLAN THREE GRADED PIECE RATES PRESCRIBED WORKER’S <83% OF STANDARD OUTPUT-BASIC WAGE RATE 83%-100%=110% OF BASIC PIECE RATE MORE THAN STANDARD OUTPUT-120% GANTT’S TASK & BONUS PLAN WAGE FOR STANDARD TIME-FAIL TO COMLETE WORK WORK >STANDARD - BONUS B/W 20%-50%

6 TYPES OF GROUP INCENTIVES
GROUP INCENTIVE PLANS BONUS FOR GROUP OF WORKERS DISTRIBUTION- IN PROPORTION TO WAGES EARNED TYPES OF GROUP INCENTIVES PRIESTMAN BONUS PLAN TOWNE’S GAIN-SHARING PLAN SCANLON PLAN


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