Question

Q. 1) Anshul owns a small scale factory where utility items are prepared from waste material like paper machete items, paper and cloth bags, decorative material etc. Over the past few weeks, he was observing that the productivity of one of his very efficient worker, Ramdas, is going down. So he decides to probe into the matter and confronts Ramdas one day. On being asked, Ramdas shares with Anshul that he has deliberately slowed down in his work as many of the less efficient workers often pull his leg saying that there is no need for him to be more efficient when everybody is being paid at the same rate. Taking a lesson from this insight, Anshul decides to implement an incentive bonus plan so as differentiate between efficient and inefficient workers. In context of the above case: 1. Name and explain the incentive bonus plan that Anshul may implement so as differentiate between efficient and inefficient workers. ( 3 marks)

Answer 1

Answer:

Differential piece wage system.

Explanation:

The scientific technique of differential piece wage system emphasis on paying different rate of wage for efficient and inefficient employees. This technique insists on :

1. paying different rate of wage to efficient and inefficient employees.
2. extra wage paid to efficient employees will motivate them to remain efficient.
3. Extra wage paid to efficient employees will motivate inefficient employees to come in category of efficient employees.
4. when payment is given according to the number of units produced automatically the production will be maximized.

This technique is the strongest motivator for employees to perform efficiently.

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