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p3 If a worker completes only 5 pieces then also he shall get the wages for 6 hours of work at the rate of Rs.

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p3 If a worker completes only 5 pieces then also he shall get the wages for 6 hours of work at the rate of Rs. 2 per hour. Thus, in fact, it is a piece work system combined with a minimum wage at the time-rate system. The total pay is exactly the same as under piece-rate system if the worker attains the standard speed i.e. he starts completing one piece in one hour. The system is considered most suitable from the point of view of equity and justice. From the costing point of view, the unit cost shall be constant, once the standard speed is attained by a worker. The system differs from Halsey plan since here bonus is paid at 100% of time saved instead of 50% (or 30% Halsey-Weir Plan) of time saved under Halsey plan. 4. Taylor's differential piece-rate incentive plan F.W.Taylor introduced a scheme for wage payment by which the goal of maximum output may be achieved. The basis suggested by Taylor is that low piece rate should be paid for low production and high piece rate should be paid for high production. According to Taylor, a standard time is fixed and the worker who finishes the allotted work before the standard time should be paid at a higher rate and the worker who cannot complete the task within the standard time should be remunerated at a lower rate. This standard should be set up very accurately with the help of time and motion studies because it is the demarcating line for higher and lower rates of wages. Thus, two piece rates are fixed, one for those who perform the standard task in standard time (may be termed as efficient workers) and the other for those who perform less than the standard task in the standard time (may be termed us inefficient workers). Usually rates are 175% and 83% of the piece work rate for efficient and inefficient workers respectively Example Standard production 10 units per hour Working hours in a day 8 units Worker A produces 70 units Worker i produces 100 units Illustration 4. Calculate the eamings of worker A, B and C under Straight Piece Rate System and Merrick's Multiple Piece Rate System from the following particulars Normal Rate per Hour Rs. 5.50 Standard Time per Unit 1 Minute Output per day is as follows: Worker A 390 Units Worker B 450 Units Worker 600 Unit Working hours per day are 8

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