Question

Which technique of Taylor insists in paying higher wages to efficient employees?

Answer 1

Differential piece rate system:
This technique was suggested by Taylor in order to attract workers who showed high efficiency. This plan proposed two kinds of piece work rates- higher and lower. The worker who will be producing more than the standard output within the stipulated time will be getting a higher piece rate. Whereas, the worker who will be producing less than the standard output within the stipulated time will be getting a lower piece rate. Hence, the worker with an output below standard will be incurring a loss as he will be getting his wage as per lower piece rate. Let us understand this with an example: The standard output of a worker is 30 units/day. The normal piece rate is Rs.10. If production is less than the standard, then piece rate is Rs. 8. Hence, for a standard production he will get 30*10=300 but for below standard i.e if he produces 29 units, he will be getting 29*8=232. He incurs a loss of Rs68 due to his under performance. This scheme ensures workers to attain higher standard of performance so that they can earn at higher work rate.