Halsey Premium Scheme
Under this plan,
(i)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Time rate is guaranteed;
(ii)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Standard time is fixed for the job or operation;
(iii)            The workers producing more than the standard, or the workers completing the work in less than the standard time fixed, get bonus in addition to the ordinary time wage;
(iv)Â Â Â Â Â Â Â Â Â Â Â Â The bonus of the premium, by whatever name called, is 30 to 70 percent of the wages of time saved, the usual percentage being 50%,
(v)Â Â Â Â Â Â Â Â Â Â Â Â Â Â The remaining of the bonus percentage is shared by the employer.
Merits of Halsey Plan
(i)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Day wage or the time rate is guaranteed. Even if output is less than the standard, one gets the time wage;
(ii)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Workers get premium for the output above the standard. It provides incentive to the workers to produce more;
(iii)Â Â Â Â Â Â Â Â Â Â Â Â As the premium is not 100% but only 50% or so, the employers feel happy about it is a they share the remaining 50%;
(iv)Â Â Â Â Â Â Â Â Â Â Â Â The scheme is very simple and understood easily by the workers.
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Demerits
(i)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â Â A significant share of the bonus goes to the employers. So the workers object to it;
(ii)Â Â Â Â Â Â Â Â Â Â Â Â Â Â Incentive is not so attractive as it is with the piece work;
(iii)Â Â Â Â Â Â Â Â Â Â Â Â Where the workers start saving more than 50% of the time, they earn premium in huge amounts, which the employers do not relish.
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