r2 Rowan Plan differs from the Halsey plan regarding calculation of bonus. It is modified form of the Halsey System. The workers get wages at an hourly rate for the actual time spent on the job under this plan also. Besides the guaranteed minimum wages. they get a bus if the task is finished before the determined standard time as is the case with Halsey plan. Under this plan bonus is that proportion of wages of actual time taken which the time saved bears to the standard time in place of S0% or so as in the case of Halsey plan Time Saved Standard Time TimeTaken Hourly Rate Total Earnings Time Taken x Hourly Rate + Bonus Example Standard Time - 20 hs Time Taken 16 hours Hourly Rate Rs. 2 per hour (20-161 Bonus x 16x2x16x2 - Rs.6.40 20 20 Total Eaming - 16x R$ 2+ Rs.6.40=Rs. 38.40 The merits and demerits of Halsey plan are applicable in case of Rowan plan also Besides those, the other disadvantages of Rowan plan are as follows: The calculations are not simple and hence the workers sometimes fail to understand the computations Under certain circumstances, a very efficient worker and comparatively not so efficient worker earn the same amount of bonus. This is because after every decrease in the time taken beyond 50% of the standard time, the amount of bonus goes on decreasing Comparison of the two plans If a worker finishes the work in half of the time alkoted to him, the amount of bonus an well as total earnings shall be the same under both the plans - Rowan and Halsey (assuming the bomis at 50% under Halsey plan). The reward for the increase in effort is not to that extent under Rowan plan as it is under Halsey plan. If the time taken is more than the time saved the worker is benefited under Rowan plan but as the time taken decreases and the time saved increases to more than the time taken the worker is better remunerated under Halsey plan. (The student can himself see it buy calculating the bonus and total earings under both the plans with the help of different examples). Illustration 3. Calculate the earnings of a worker under (1) Halsey Plan and (n) Rowan Plan from the following particulars 1. Hourly rate of wages guaranteed 0.50 paise per hour. 2 Standard time for producing one dkxxen articles - 3 hours 1 2 3. Actual time taken by the worker to produce 20 dozen articles - 48 hours