Mgt402 Gdb

 

1. Production goes up when wages are paid according to piece rate system. Workers will feel encouraged to increase output because their wages will also increase. ... Efficient workers will try to exert maximum in order to raise their production and hence wages. . It can be implemented under the circumstances to know exact cost accountable for , to increase workers efficiency ,To Complete the quantity order within time frame, for better utilization of equipment’s /machines ,To know difference of efficient and inefficient workers ,To reduce extra supervision cost, for better planning and control .

2. Taylor’s Differential Piece-Rate System was introduced by F.W. Taylor, who believed that the workers should be paid on the basis of their degree of efficiencies. Under this method, with the help of Time and Motion Study, the standard time for the completion of a job is fixed on the basis of which the performance of the workers is evaluated. Taylor’s differential piece-rate system posits that the worker who exceeds the standard output within the stipulated time must be paid a high rate for high production. On the other hand, the worker is paid a low rate if he fails to reach the level of output within the standard time. Thus, there are two piece-rates, one who reach the standard output or exceeds it, is paid 120 percent of the piece rate. While the one who fails to reach the standard level of output, is paid 80 percent of the piece-rate. The minimum wages of the worker are not guaranteed.