TIME WORK SYSTEM
In this system labor is paid on base of time worked. Total labour remuneration is sum of basic pay and overtime premium given. Basic pay is charged as direct labour and overtime is charged as indirect labour
| Basic pay(Hrs Worked * Rate Per Hr) = XX
Overtime premium = XX ____ TOTAL = XXX |
PIECEWORK SYSTEM
In contrast to old system labour is paid on basis on units produced
Wage= units produces *rate per unit
- Uni rate scheme: same rate paid for all units produced
- Differential rate scheme :different rate paid for units produced after certain limit to boost production level
Incentive schemes
Lets have a look on different models to reward labour:
Taylor’s Differential Piece Rate System
| Percentage of Efficiency Piece Rate
Less Then 100% 83% of Normal Piece Rate Equal or More than 100% 125% of Normal Piece Rate |
Merrick’s Differential Piece Rate System
| Percentage of Efficiency Piece Rate
Upto 83% Normal Piece Rate Above 83% but upto 100% 110% of Piece Rate Above 100% 120% of Piece Rate
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Gantt’s Task & Bonus System
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Combination of time & Piece Rate System Percentage of Efficiency Piece Rate Less then 100% Guranteed Time Rate Equal to 100% Time Rate + 20% Bonus on time rate
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Emerson’s Efficiency system of wage payment
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Percentage of Efficiency Piece Rate Less Then 66.67% Guranteed Time Rate Above Then 66.67% Upto 100% Time Rate + Increasing Bonus Based on Actual Efficiency ( From 0.01% to Maximum of 20 % On Time Rate)” Above 100% “120% of time Rate + 1% Increase for every 1% Increase in Output Beyond 100%”
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POINT SYSTEM OF WAGE PAYMENT
| 1) Bedeaux Method (Basic + Bonus)
Basic Hrs Worked * Rate PerHr Bonus 75% of Points Earned * Rate PerHr Points Earned Time Saved Expressed in terms of B (Bedeaux)
2)Haynes Method Basic Hrs Worked * Rate PerHr Bonus Repeatitive Work : 5/6 * Points Earned * Rate PerHr Non-Repeatitive Work: 50% * Points Earned * Rate PerHr Points Earned Time Saved Expressed in terms of Manits( Man-Minutes)
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