Merrick’s Multiple Piece Rate Plan

• It is the individual wage incentive output based plan.
• Plan succeed the Taylor’s Plan thus overcome the drawback of Taylor’s Plan.
• Drawback is a frequent change in piece rate.
• Under this plan, three graded piece rate is prescribed – Worker’s producing less than 83% of the standard output is paid at a basic piece rate. Those produced from 83% to 100% of the standard output are paid 110% of the basic piece rate. Workers producing more than the standard output are paid at 120% of the basic piece rate.

Advantages-

• Useful where the performance level is to be increased to 100%. Efficient and experienced workers whose performance is more than 100% earn more wages because they get wages at 120% of the ordinary piece rate.
• More Flexible.
• Good for beginners. As a penalty for slow workers is relatively lower as compared to Taylor.
• Overcome drawback of Taylors’

Disadvantages-

• Minimum wages did not guarantee to workers.
• Does not guarantee time wages as wages are paid according to pieces produced.