Which of the following incentive plans ensures a part of the swing to the worker and rest to the employer?

Which of the following incentive plans ensures a part of the swing to the worker and rest to the employer?

Right Answer is:

Halsey premium plan

SOLUTION

The Halsey Premium Plan:

  • Halsey Premium incentive plans ensure a part of the swing to the worker and rest to the employer
  • “Halsey premium plan is a simple combination of time and speed bases of payment.
  • Under this plan, a minimum time wage 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 a 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 the proportion to the wages which he could have earned during the time saved.
  • If a worker saves time, he gets 50% of wages for time saved (called a premium) in addition to normal wages.
  • Workers oppose this scheme because workers have to share the bonus with employers.
  • Workers get only a 50% bonus of the time saved.
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