Calculate the earnings of a worker under (A) Hasley premium plan and (B) Rowan scheme
Answers
● Under Halsey premium plan method, standard time for doing each job or operation is fixed and the worker is given wages for the actual time he takes to complete the job or operation at the agreed rate per hour plus a bonus equal to (usually) one-half of the wages of the time saved.
(calculation - in attachment)
● Under Rowan Plan, the standard time for the completion of a job and the rate per hour is fixed. If the time taken by the worker is more than the standard time, then he is paid according to the time rate, i.e. time taken multiplied by the rate per hour.
Bonus = Time Saved/ Standard Time
The incentive scheme under Rowan Plan can be illustrated by the examples given below:
Case (1): Time Taken = 8 hrs
Earnings = 8 x 2 = Rs 16
Case (2): Time Taken = 10 hrs
Earnings = 10 x 2 = Rs 20
Case (3): Time taken = 6 hrs
Earnings:
Time Wages = 6 x 2 = Rs 12
Bonus = 2/8 X 6 = Rs 1.5
Thus, in the above example, the worker completing the work in 6 hrs, less than the standard time, the total earnings will be Rs 13.50 (time wages+bonus).
