2 types or kinds or methods of incentive plans
1) Individual incentive plan
2) Group incentive plan
1) Individual incentive plan: it may either be time based or production based. Under time based plan a standard time is fixed for doing the job. A worker is said to be efficient if he completes the job in time and he is given the reward for his efficiency.
i) The time based individual incentive plans are: Continue reading “Types of incentive plans”
Incentive wage plans:
Incentive wage plans are popular all over the world and are used for raising productivity.
They offer attraction of extra payment for efficiency or more production. The main purpose of incentive plan is to increase the production by giving an extra payment to the workers. It is also called payment by result and a managerial device for increasing production. It is the method of sharing gains in productivity with the workers by rewarding them financially for their increased productivity. Continue reading “Incentive wage plans and its importance”
In last articles I have discussed the time wage system and piece wage system, let us today discuss the difference between the two:
1) Security: Time wage systems provide a security to the workers as they are assured of their wages. While wages in piece wage system varies from month to month.
2) Wastage: wastage of time is high in time wage system and in piece wage system wastage of raw material, machines is high. Continue reading “Difference between time wage and piece wage system”
In last article we have discussed the wage system and one of its type that is time wage system Today we will discuss another wage system that is piece wage system.
Piece wage system meaning
Under the piece wage method the wages are paid on the basis of the output. They are paid on the basis of the number of units produced by them irrespective of time spent on the job. So the earning of the worker depends upon the speed of the worker so an efficient worker earns higher wages than the inefficient worker. Continue reading “Piece wage system”
Wage payment meaning:
Wage payment concept is not only important for the employees but also for the employers as they are interesting in paying fewer wages. But paying low wages are not economical as they can prove to be costly for the employer. Employer is morally responsible to pay fair wages to his employees. Continue reading “Methods of wage payment”
Factors affecting wages or compensation or determinants of wages or compensation:
1) Productivity of workers: to get the best results from the employees and to increase the productivity compensation has to be productivity based. Continue reading “7 factors affecting compensation”
Concept of compensation:
Compensation is a wide range of financial and non financial rewards to employees for their services rendered to the organization. It is paid in form of wages, salary, other benefits such as vacations, maternity leave, medical facilities etc. compensation helps in motivating the employees and reduce labor turnover. Continue reading “Compensation and its types”
Concept of time study in HRM:
Time study is the art of recording the time required to perform a motion or a series of motion. It determines the standard day’s work by finding the amount of time needed by the workers to perform the various operations. It is done by measuring the time with a stop watch to check how long a work takes time to perform each operation of the job. After measuring the time for various operations of a job allowance should be made for fatigue and visits to attend necessary calls. Continue reading “Concept of time study”
Motion study is a systematic way of determining the best method of doing the work by scrutinizing the motions made by the worker or the machine. As per Gilbreath it is the science of eliminating the wastefulness due to unnecessary motions. He was interested in finding the one best way to do the job. he analyzed the motions of bricklayers and was successful in reducing the number of motions of a bricklayer from 18 to 5.
Motion study can be divided into three components or types: Continue reading “What is motion study”
Work study is further classified into method study and work measurement.
Method study is a systematic method of analyzing the method of doing a job including human movements involved in it. So it is the process of analyzing the methods involved in work flow to increase productivity. It deals with doing the work in a better way, with less time and effort. That is why it is also termed as work simplification. Continue reading “What is method study”