Emerson Efficiency Plan
- It is an Individual incentive plan.
- Developed by Harrington Emerson.
- Under this plan, Standard time foe job is determined scientifically and a minimum time wage is guaranteed to all workers.
- Bonus is given at a percentage beyond the prescribed level of efficiency say 66.67%
- Efficiency is measured by comparing the actual time taken with standard time.
Advantages-
- Security to workers because of the guaranteed time wage.
- Bonus increases with the level of efficiency. Act as fair treatment.
- Encourage healthy competition.
- Act as motivation.
- Provides incentive even to beginners and less efficient persons.
Disadvantages-
- Little incentive after 100% efficiency level.
- Standard fix by employers which becomes a hurdle for employees to achieve and hence earn bonus.
- The plan is not flexible.
- Overspeeding and compromise with quality.
- The records of standards will have to be kept separately for different categories of workers. It increases clerical work.
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