explain halsey-weir scheme.
Answers
The hourly rate is fixed & the workers are guaranteed so that even if, within the standard time specified, the job is not completed by them, guaranteed time rate may be received by them. The worker becomes entitled to bonus, if he is in a position to complete the job in less than the specified time; bonus being equal to his time wage for 50% of the time saved in addition to the time wage which he is entitled for the actual time worked.
The total earning is obtained by multiplying the sum of time allowed & time taken by half the hourly rate.
Advantages: (a) The scheme & the calculation of the remuneration are easily understandable by the worker.
(b) As time wage is guaranteed, penalty is not imposed on the slow workers; whereas rewards are provided to the slow workers for their efficiency.
(c) The workers are encouraged to save as much time as possible due to the bonus, because for the higher time saved bonus will be higher.
(d) Employers are enabled to obtain more output from the workers under the scheme, & as a result of that, per unit fixed overhead get diminished.
Disadvantages: (a) Since the employers & employees share the savings in time, this may not be liked by many employees’ organizations & they argue that the workers should get the entire benefits as the savings is done by them.
(b) Compared to the other incentive plans, the workers are being offered less incentives under this scheme.
(c) Apart from the workers, savings in time also depends upon the tool’s standards, materials, and machinery & working conditions. So the desired result cannot be expected unless the best of these are assured.
(d) Chances of more spoilage, wastage, defectives & breakdown of machinery are there under this scheme, as for the purpose of maximizing the bonus, the workers will try to save as much time as possible. As a result, greater supervision cost has to be involved.
The Halsey-Weir Scheme: Under the Halsey-Weir scheme, a worker is entitled to bonus which is equal to his time wage for 331/3% (often 30%) of the time saved; instead of 50% in case of the Halsey scheme. Thus except the above, there is no difference between the Halsey scheme & the Halsey-Weir scheme. Under this scheme, for performing a job, operation or task, a standard time is specified.
The hourly rate is fixed & the workers are guaranteed so that even if, within the standard time specified, the job is not completed by them, guaranteed time rate may be received by them. The worker becomes entitled to bonus, if he is in a position to complete the job in less than the specified time; bonus being equal to his time wage for 50% of the time saved in addition to the time wage which he is entitled for the actual time worked.
The total earning is obtained by multiplying the sum of time allowed & time taken by half the hourly rate.
Advantages: (a) The scheme & the calculation of the remuneration are easily understandable by the worker.
(b) As time wage is guaranteed, penalty is not imposed on the slow workers; whereas rewards are provided to the slow workers for their efficiency.
(c) The workers are encouraged to save as much time as possible due to the bonus, because for the higher time saved bonus will be higher.
(d) Employers are enabled to obtain more output from the workers under the scheme, & as a result of that, per unit fixed overhead get diminished.
Disadvantages: (a) Since the employers & employees share the savings in time, this may not be liked by many employees’ organizations & they argue that the workers should get the entire benefits as the savings is done by them.
(b) Compared to the other incentive plans, the workers are being offered less incentives under this scheme.
(c) Apart from the workers, savings in time also depends upon the tool’s standards, materials, and machinery & working conditions. So the desired result cannot be expected unless the best of these are assured.
(d) Chances of more spoilage, wastage, defectives & breakdown of machinery are there under this scheme, as for the purpose of maximizing the bonus, the workers will try to save as much time as possible. As a result, greater supervision cost has to be involved.
The Halsey-Weir Scheme: Under the Halsey-Weir scheme, a worker is entitled to bonus which is equal to his time wage for 331/3% (often 30%) of the time saved; instead of 50% in case of the Halsey scheme. Thus except the above, there is no difference between the Halsey scheme & the Halsey-Weir scheme.
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Under this scheme, for performing a job, operation or task, a standard time is specified.
The hourly rate is fixed & the workers are guaranteed so that even if, within the standard time specified, the job is not completed by them, guaranteed time rate may be received by them. The worker becomes entitled to bonus, if he is in a position to complete the job in less than the specified time; bonus being equal to his time wage for 50% of the time saved in addition to the time wage which he is entitled for the actual time worked.
The total earning is obtained by multiplying the sum of time allowed & time taken by half the hourly rate.
Advantages: (a) The scheme & the calculation of the remuneration are easily understandable by the worker.
(b) As time wage is guaranteed, penalty is not imposed on the slow workers; whereas rewards are provided to the slow workers for their efficiency.
(c) The workers are encouraged to save as much time as possible due to the bonus, because for the higher time saved bonus will be higher.
(d) Employers are enabled to obtain more output from the workers under the scheme, & as a result of that, per unit fixed overhead get diminished.
Disadvantages: (a) Since the employers & employees share the savings in time, this may not be liked by many employees’ organizations & they argue that the workers should get the entire benefits as the savings is done by them.
(b) Compared to the other incentive plans, the workers are being offered less incentives under this scheme.
(c) Apart from the workers, savings in time also depends upon the tool’s standards, materials, and machinery & working conditions. So the desired result cannot be expected unless the best of these are assured.
(d) Chances of more spoilage, wastage, defectives & breakdown of machinery are there under this scheme, as for the purpose of maximizing the bonus, the workers will try to save as much time as possible. As a result, greater supervision cost has to be involved.
The Halsey-Weir Scheme: Under the Halsey-Weir scheme, a worker is entitled to bonus which is equal to his time wage for 331/3% (often 30%) of the time saved; instead of 50% in case of the Halsey scheme. Thus except the above, there is no difference between the Halsey scheme & the Halsey-Weir scheme.