Question

outline the features of the differential piece rate system​

Answer 1

Answer:

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.

Answer 2

Explanation:

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CONCEPTS ›HUMAN RESOURCES (HR) ›

Differential Piece-Rate System

Published by MBA Skool Team, Last Updated: January 22, 2018

What is Differential Piece-Rate System?

A differential piece-rate system is a method of wage payment in which after tests have set a standard time for any task assigned the worker gets a high piece rate for completing the job within the allotted time and lower piece rate for completing the job beyond the allotted time. F.W. Taylor gave a method of differential piece-rate system with the name Taylor’s differential piece-rate system as a part of the scientific management.

The simple underlying principle of this method is to reward the efficient worker and while penalize the worker not performing good. In Taylor’s method the organization has no space for the inefficient workers. In this the standard time for completion of the task is fixed with the help of time and motion study. If any worker completes his task within the time limit, he gets paid at a higher rate and if he fails to complete it within the time limit he gets paid at a lower rate.

Advantages of this method are as follows:-

1. Efficient workers receive good incentives.

2. This is a very simple method and the wages can be calculated easily.

3. This method reduces the overhead expense per unit.

Disadvantages are as follows:-

1. In this method, workers are punished with payments at lower rates