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