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.
• The time required to complete a task is established and a bonus is paid to the worker for every hour he saves from the established time required. This type of incentive plan is known as Halsey Premium Plan.
• 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.