in this we have wage system& incentive plan....

1. Wages system
BY
VI JAY MITTAL
BBA,LLB 2ND YEAR

2. wages
Time
rate
Piece
rate
Wages are paid
according to actual
time worked.
Wages are paid
according to actual
production per unit.

3. BBaassiicc ssaallaarryy++ b obnouns u=sw a=gwesages
Now a question arise is how
company's calculate this bonus?

4. Kinds of incentive plan
Based on time based on productivity
Halsey plan
Rowan plan
Emerson plan
bedaux plan
Taylor plan
Merrick plan
Gantt plan

5. Types of bonus schemes
Halsey bonus scheme
Rowan bonus scheme
Emerson plan
Bedeaux plan

6. Halsey plan :
Total wages = time taken Wages rate per hour
50% of stantdard time
taken –actual time
taken
Rowan plan =time saved wage rate actual time
standard time
Emerson plan : paid by compasion
100%----------------------------20%
And above 100%------------------------------------30%
Bedaux plan: standard time wage rate + 75% of value saved

8. Example :- Calculate the total earnings of a worker & the effectively rate of labour
wages per hour where payment of bonus is under the Rowan scheme from the
below mentioned particulars:
Basic wage rate per hour – $.10.80,
Time allowed for the job – 48 hours,
Actual time taken – 36 hours.
Answer
Total wages =
Normal time wage + Time saved/Time Allowed *Time taken* Time rate
Normal time wage = 36 hours @ $. 10.80 = 388.80
Bonus = Time saved/Time Allowed*(Time taken * Time rate)
= 12/48*(36*10.80)
= 97.2
Total Wage = 388.8 + 97.2 = 486
Effective hourly rate = $.486.00/36 = $. 13.50
Rowan plan