Which method is better halsey wage payment or rowan wage payment and why?
Answers
(1) Under Halsey system, with the increase in efficiency the bonus increases steadily. On the other hand, under Rowan system, up to certain level of efficiency, i.e. where time saved is 50% of allotted time, bonus increases & then it begins to decline.
(2) More wages is earned by the worker under Rowan system than under Halsey system, where time saved is less than 50% of the standard time. On the other hand, more wages will be the earned by the worker under Halsey system than under Rowan system, when more than 50% of the standard time will be saved. Same bonus may be earned by the less efficient worker as well as by the more efficient one under Rowan system. Therefore, a safeguard is provided against a loose fixation of standards by the Rowan system.
(3) The worker, if he can save 2/3rd of the standard time, doubles his earnings per hour under Halsey system whereas earnings per hour can never be doubled under Rowan system.
(4) Under Halsey system, with a view to earning more bonuses, the quality of work may deteriorate which may arise due to over speed in work. On the other hand, as there is automatic check on the earnings under Rowan system, over speeding is arrested.
(5) Bonus under both the systems is the same, when the time saved is ½ of the standard time.
It may be concluded from the above observations that the Rowan scheme is better than the Halsey scheme, provided no loose fixation of standard is there.
There are other premium bonus schemes also, like (a) Barth scheme, (b) Accelerating premium bonus.