This topic is included with wages and incentives, where as in wages included with Elements of ideal Wage-System,Types of Wages, Merits & Demerits of Wages and in incentives with types of incentives, merits and demerits of incentives. Which can help a student to go through it.
2. Topics to be covered
Wages
1.
a. Elements of ideal Wage-System
b. Types of Wages
c. Merits & Demerits of Wages
2. Incentives
a. Types of Wages
b. Merits & Demerits of Incentives
4. Wages
Wages is the return given to
workers for the mental and
physical efforts which they put
into production process.
5. Guarantee of Minimum wages
Based on ability of the worker
Simple
Motivating
Flexible
Regular payments
Elements of
Ideal-Wage
System
6. Time wage System Piece Wage system
Types of Wages
The wrokers are paid according to
the time spent at the work place.
Wages are paid to workers
according to their output. This
wage system is directly related to
the skill, production, capacity,
speed and precision of the
worker.
7. Time wage System
The wrokers are paid according to the time
spent at the work place.
This is the oldest type of wage system
8. Merits of Time-Wage system
Clear and Simple
Provides Guaranteed minimums wages
Quality is maintained
Reduces labour turnover rate
Wages payable are pre-determined
Suitable for industries where measuring output is
impossible.
9. Demerits of Time-Wage system
Fails to motivate efficient and industrious workers.
Work needs supervision. Thus, cost of supervision increase.
Nurtures the evil of shrinking work.
Cannont be considered a progressive wage system.
Possibilities of the worker being negligent towards work or
production.
10. Why is time-wage is effective?
Quality of production is more important than the
output
Work is to be done minutely, requiring extreme care
and preciseness
production is automated i.e machine based
workers are new, apprentices or trainees
11. Piece Wage system
This system is also known as 'PAYMENT BY RESULT
SYSTEM'.
Wages are paid to workers according to their output. This wage
system is directly related to the skill, production, capacity, speed and
precision of the worker.
12. Merits of Piece-wage system
Worker's skill is taken into account
No need for supervision and inspection
Efficient Workers are given more incentives and
rewards.
Easy to Calculate wages.
More production and best results is the motto of
this system
13. Demerits of Piece-Wage system
Quality is not maintained .
Workers intentionally ignore safety rules, inviting accidents.
Sense of job satisfaction is less among workers.
Admnistrative expenses are high.
Workers feel a sense of insecurity.
14. Why is Piece-wage is effective?
Measurement of units produced is easy.
Efficiency, skill and concentration of worker is high
and productive.
Easy to establish standards and flow of work is
regular.
Only one type of goods are produced.
16. Incentives are an additional
remuneration payable to
efficient workers for their
meritorious perfomance in
terms of time, costs and quality
to motivate them to be more
productive
Incentives
18. Monetary Incentives
Money is the main element of incentives. It boosts the
enthusiam and self-confidence of the worker. It
provides the worker with economic security and gives
the worker a social security
19. Types of Monetary policies
Profit sharing
Co-Partnership
Bonus
Suggestion and advices
Commission
Prizes
