Factors for Selecting Incentive Scheme


0

 

The following factors should be considered for selecting an incentive scheme:

 

  1. Productivity

 

The object of the incentive scheme is to increase productivity. Therefore, this factor is very important. The increased productivity lowers the cost to the benefit of the employers.

 

  1. Simplicity

 

The scheme should be simple in operations and well understood by the workers. The scheme should be amenable to the setting up of standards and the comparison of the results with the actual.

 

  1. Cost Reduction

 

The scheme, when introduced, is bound to increase the pay-bill of the workers, and thus increase the cost. But the simultaneous increase in production would reduce the cost per unit or production. The fixed overheads remain constant up to a certain limit of plant capacity. As such, the increased productivity reduces the cost of fixed overheads per unit.

 

  1. Better Labour Psychology

 

The scheme should not affect worker’s health adversely, should reduce labour turnover and help to improve the standard of living of the workers.

 

Under this heading, we study the following methods:

 

(I)                 Halsey Premium Scheme;

(II)              Halsey Weir Scheme;

(III)            Rowan Premium Scheme;


Like it? Share with your friends!

0
BMS Team

We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected].

3 Comments


Warning: Undefined array key "html5" in /home/bmsnewco/public_html/wp-content/plugins/facebook-comments-plugin/class-frontend.php on line 140

Facebook comments:

This Website Is For Sale. Email us an offer we cannot refuse on [email protected] :)

X
Choose A Format
Personality quiz
Series of questions that intends to reveal something about the personality
Trivia quiz
Series of questions with right and wrong answers that intends to check knowledge
Poll
Voting to make decisions or determine opinions
Story
Formatted Text with Embeds and Visuals
List
The Classic Internet Listicles
Countdown
The Classic Internet Countdowns
Open List
Submit your own item and vote up for the best submission
Ranked List
Upvote or downvote to decide the best list item
Meme
Upload your own images to make custom memes
Video
Youtube and Vimeo Embeds
Audio
Soundcloud or Mixcloud Embeds
Image
Photo or GIF
Gif
GIF format