- Halsey or Weir Plan is Individual incentive plan, earning are related directly to the performance of the individual worker.
- The plan was developed by F.A. Halsey.
- Under this Plan, a standard time is fixed on the basis of past performance records.
- A worker who completes his job within or more than the standard time is paid a guaranteed time wage.
- A bonus (usually 50%) of the time saved is paid to a worker who completes his job in less than the standard time. The bonus is calculated on the basis of the Time Rate.
- The plan is simple to understand.
- Beneficial for both employer and employee of time saved.
- Sense of security for workers as they get guaranteed minimum wages.
- Encourage/motivate workers to be efficient, as a bonus is based on Time Saved.
- Standards are based on Past Performance.
- Workers get only half of benefits ie. 50%.
- Quality of production may suffer, as workers focus on time-saving.
- Wastage and Spoilage may increase.
- More Booking Keeping as records need to be maintained for time saved, bonus, etc.
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