Question

Which of the following wage incentive plan is applied to all workers and guarantees minimum wage?
1. Halsey Plan
2. Gantt Plan
3. Emerson's Efficiency Plan
4. Rowan Plan

Answer 1

Correct Answer - Option 1 : Halsey Plan

The Halsey Premium Plan:

• “Halsey premium plan is a simple combination of time and speed bases of payment.
• Under this plan, a minimum time wages is guaranteed to every worker.
• A standard time is fixed for the completion of a job.
• If a worker performs his job in less than the standard time, he is given bonus.
• But there is no penalty for performing the job in more than the standard time fixed.
• The slow worker is paid the time wages and the efficient worker is paid some bonus in addition to the time wages.
• The bonus is in proportion of the wages which he could have earned during the time saved.

The Rowan Plan:

• The Rowan plan is a modification of the Halsey plan.
• It also guarantees the minimum time wages and does not penalize a slow worker.
• A standard time is fixed for completion of a job and bonus is paid to a worker on the basis of time saved.
• Here, the bonus is that proportion of the wages for the time taken which the time saved bears to the standard time.

Emerson’s Efficiency Plan

• Emerson has suggested guaranteed wage payment to all workers on time rate basis.
• In addition, bonus or extra payment was suggested to those who prove to be efficient.
• For determining efficiency, standard output per unit of time or standard time for the job is determined.
• Efficiency is to be measured on the basis of comparison of actual performance with the standard fixed.

Gantt Task Bonus Plan:

• The Gantt Task Bonus plan is a mixture of time rate and piece rate plans.
• Under this plan, if a worker’s output in task time is equal to or more than the stipulated task, he is paid a bonus at a certain percentage of his guaranteed basic wage.
• The guaranteed basic wage is always a time rate wage. The basic wage rate and task standards have to be carefully determined.