Jun 11 2014 11:09 AM Solution.pdf Example: Standard output 50 units per day. c. b. one piece-rate wage for units produced up to a standard output and the employee is not paid for units produced over the standard. For guidance on the use and function of the Section 14(c) online calculators, please see the Section 14(c) Online Calculators User Guide (PDF) Print The Department of Labor is providing these calculators as a public service. For additional information regarding piece rates. Piece-rate pay is also sometimes referred to as a "payment by results system". (3) Gantt’s task and bonus plan. (2) Merrick’s multiple piece rate system. Frederick Winslow Taylor, "A Piece-Rate System" (1896) The ordinary piece-work system involves a permanent antagonism between employers and men, and a certainty of punishment for each workman who reaches a high rate of efficiency. A differential piece-rate system pays employees: a. one piece-rate wage for all units produced irrespective of employee productivity or work output. Differential piece rate Differential piece wage system is the strongest motivator for a worker to reach standard performance. https://en.wikipedia.org/wiki/Wage_reform_in_the_Soviet_Union,_1956–1962 a. Advantages: It is a method of wage payment in which efficient and inefficient workers are paid at different rates. In Taylor's differential piece rate system an inefficient worker is paid only ___ of the piece rate. In this method, increase in efficiency is co-related with an increase in the wage rate. (I) Straight Piece Rate: Under straight piece rate system workers are paid according to the number of units produced at a fixed rate per unit. 75% c. 80% d. None of the above a. Thus, if the piece rate pay is less than the minimum wage, the amount paid must be increased to match the minimum wage. Piece-rate pay gives a payment for each item produced – it is therefore the easiest way for a business to ensure that employees are paid for the amount of work they do. Differential Piece Wage System: (i) Taylor wanted to differentiate between efficient and inefficient workers. 120% b. This system gives every workman an opportunity to earn more by putting more efforts … In the piece rate system, worker is paid per piece of job and no consideration of time taken is made. Those who reach the standard output are given a higher piece rate. The piece rates will be Rs.1.50 and Rs.1.40 per unit. (ii) He wanted to reward efficient workers and introduced two rates of wage payment for those who performed equivalent to or above standard and for those who performed below standard. Actually this system is an improvement on the “Time Rate” system of payment. Under Merrick"s multiple piece-rate system, 110% of the ordinary piece rate is given to the workers whose level of performance is between _____ and _____ of the standard output. Explain : Taylor’s Differential Piece Rate SystemTaylor’s Differential Piece-Rate System was introduced by F.W. The lower rate is applicable to those workers whose output is below standard. The demoralizing effect of this system … Which of the below given options is a pre - requisite for an effective incentive system? (1) Taylor’s differential piece rate system. Example of Piece Rate Pay. The standard is determined by time and motion study. In addition, an employer using the piece rate pay system must still ensure that its employees are at least paid the minimum wage.