The following are some important plans of incentive wage payment:
Plans
1. Halsey Plan:
It is apian originated by F.A. Halsey to encourage efficiency amongst workers as well as to guarantee them wages according to time basis. The standard time required for a job is determined beforehand on the basis of time and motion studies.
Workers who perform the job in less than the standard time and thus save time are rewarded with a bonus but the worker who takes longer than the standard time is not punished, and is paid wages according to time wage system.
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The total earnings of a worker under this plan consist of wages for the actual time plus a bonus which is equal to the money value of 33 % of the time saved in case of standard time set on previous experience, and 50% of the time saved when the standards are scientifically set.
2. Rowan Plan:
Wages, according to time basis, are guaranteed and the slow worker is not made to suffer. A standard time is determined before and a bonus is paid according to time saved.
The only difference between Halsey Plan and Rowan Plan relates to the calculation of bonus. Under this plan bonus is based on that proportion of the time saved which the time taken bears to the standard time. It can be expressed as follows:
(i) The Emerson Efficiency System:
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In this system, the worker is allowed a certain time within which he is required to complete his job. If he completes the job within the required time, he is paid bonus. If he takes longer than the required time, he receives a lower bonus. Under this system, the daily wage is guaranteed.
(ii) The Gantt System:
This system is similar to the Emerson efficiency system. The worker receives the bonus only if he attains the required standard of efficiency.
No bonus is paid to a worker where his efficiency is less than 100%. The foreman is also given a bonus if the worker under his care attains the required standard of efficiency.
4. Bedeaux Point Premium Plan:
The chief novelty of this plan is that the value of time saved is divided between workers and foreman, 3/4 to workers and 1/4 to foreman.
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This is done on the basis that a worker cannot show good results if his foreman does not fully co-operate with him. Therefore, the foreman is also entitled to an incentive.