Documente Academic
Documente Profesional
Documente Cultură
worker, worker's foot does n't touch the earth due to pleasure. When he shares same
information with his family, all family members also feel happy because with these
incentive wage plans, family's standard of living will rise and they can also live their life
with luxury and prosperity. Children will also burst into laughter if they will get more
pocket money from this future incentive.
But other side, to calculate correct amount of incentives from incentive wage plans is the
headache of company. It is more difficult, if a new fresher joins for calculating and
making payroll of each employee and worker. So, solving company's problem, we are
writing the tutorial on incentive wage plans
Incentive wage plans are extra wages in the form of monetary and non-monetary ways for
increasing the efficiency of employees and workers. It is also known as bonus to workers.
In incentive wage plans, free house facility, free education of children of workers, free
medical treatment and other excess money gifts.
There are about 10 incentive wage plans and these plans were made by experts of
management fields. But we are taking first three plans in this part of tutorial for
calculation.
This incentive plan was made by F.A. Halsey in 1891. It formula is given below
Total Wage = Taken Time X Standard Rate + ( Saved Time X Standard Rate) X
50/100
solution :
= 30 X 4 X 50/100 = 60
2. Rowan Plan
This incentive wage plan was made by James Rowan in 1901. Formula of this plan
is below.
Total Wage = Time taken X standard rate + ( time taken X time saved X
standard rate ) / standard time
For Example
A worker takes 12 hrs to complete a job to time wage and 9 hrs on a scheme of payment
by result. The rate of payment is Rs. 5/- per hr. Calculate his earning if he is paid on the
basis of Rowan plan.
Solution :
Incentive wage or bonus = ( time taken X time saved X standard rate ) / standard time
= 9 X 3 X 5 / 12 = Rs. 11.25
This plan was made by G.T. Weir which is improvement of Halsey plan.
Total Wage = Taken Time X Standard Rate + ( Saved Time X Standard Rate) X
30/100
solution :
= 30 X 4 X 30/100 = 36