Explain 'Differential Piece Rate' and 'Functional Foremanship' as techniques of scientific management.
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Solution
Differential piece rate Differential piece wage system is the strongest motivator for a worker to reach standard performance. It is a method of wage payment in which efficient and inefficient workers are paid at different rates. In this method, increase in efficiency is co-related with an increase in the wage rate. That is why, an efficient worker gets more wages whereas, an inefficient worker gets less. Workers are paid on the basis of number of units produced. If a worker produces more than a certain number of units (standard output), he gets higher wage per piece/units on his total output. If he produces below the standard number, he gets lower rate per piece. Because of different rates of wage for different sets of workers, this is known as differential piece rate plan.
Functional foreman ship
Functional foreman ship It is an extension of the principles of division of work and specialization. The term, functional foreman ship means separation of planning from execution. Each worker is supervised by various specialists. For this, Taylor suggested that under the factory manager, there is a planning in charge and a production