Escolar Documentos
Profissional Documentos
Cultura Documentos
By:
Sanket Kothari
Incentives Programme
Wage incentives include all the plans that
provide extra pay for extra performance In
addition to regular wages for the job.
Balanced Scorecard
Productivity / Gain-
Sharing
Team / Group
Incentives
Short Term Pay-for-Performance
Plans
Merit Pay
Lump-Sum Bonuses
Individual Spot Awards
Individual Incentives
Long-Term Incentive Plans
Gain-Sharing Plans
Profit Sharing Plans
Earnings-at-Risk Plans
Individual Incentive Plans
Method of Rate Determination
Units of production per time Time period per unit of
period production
(1) (2)
Pay constant function of Straight piecework plan Standard hour plan
production level
Bedeaux plan
Relationship
between
production level (3) (4)
and pay
Taylor differential piece Halsey 50 - 50 method
Pay varies as function of rate system
Rowan plan
production level
Merrick multiple piece rate
Gantt plan
system
Types of Incentives Plans
The ILO classifies all the schemes of payment by results into
four categories:
Earnings vary Earnings differ
Earnings vary
Earning vary in Proportionately at different levels
less
the same proportion of output
proportionately More than outputs
as output
than output
=8*0.50=Rs 4.00
Case 2 Output =80 units
Earnings
As the output is equal to the standard, the worker is entitled to time wage plus
20% bonus
Time wages =8*0.50= Rs 4.00
Bonus =20*4 = Re 0.80
100
Total earnings = Rs 4.80
Case 3 Output =110 units
As the output is more than th Std, the worker is entitled to a high piece rate
10*0.10= Rs 11.00
Emerson’s Plan
Up to 67% of efficiency, the workr is determined by dividing the time taken by the Std
Time-rate
Up to 100% efficiency, 20% bonus is paid to workers
An additional bonus of Rs 1% is added for each additional 1% eficiency
Case 1 Output in 10 Hrs: 50 units
Efficiency: 50%( below 67%, the worker is eligible for 50% of the time wae as bonus)
Case 2 Output in 10 Hrs : 100 units
Efficiency : 100% (time-wage + 20% bonus)
Case 3 : Output in 10 Hrs : 130 units
Efficiency : 130%
At the rate of 20% at 100% efficiency and 1% increase for every 1% increase in
Efficiency, the worker is eligible for 50% of the time wage as bonus:
Time wag =10*1 Rs 10.00
Bonus =50*10.00 Rs 5.00
100
Rs 15.00
Conditions for Effective Incentives Plans