develop an imaginary plan of differential piece rates to be introduced for workers ,engaged in sewing shirt
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Suppose standard output is fixed at 20 units and two workers A and B produces 24 and 16 units respectively.
Two piece rates are Rs. 100 and Rs. 75.
A will receive =100 x 24 = Rs. 2400
(as he is producing more than standard units) B will receive =75 x16=Rs. 1200 (as he is producing less than the standard units) Thus, the inefficient worker i.e. B will be motivated to produce more units of furniture to reach the standard output.
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