A rational wages system : $b some notes on the method of paying the worker a reward for efficiency in addition to wages — John Shaqi
A rational wages system : $b some notes on the method of paying the worker a reward for efficiency in addition to wagesAtkinson, Henry
General
A rational wages system : $b some notes on the method of paying the worker a reward for efficiency in addition to wages
Atkinson, Henry
Incentives in industry -- Great Britain; Wages -- Great Britain
As before, reward begins at an earlier point than standard. That is to
say, if a smaller quantity than 36 be produced reward is earned, but a
certain minimum quantity must be produced before reward begins. This
minimum quantity is called "reward production," and begins at 75 per
cent. of the standard production. (36 x 75)/100 = 27.0, and this is the
reward production for one hour, reward being paid on any excess above
this.
Let us assume that a worker is 6 hours on this work, and in that time
produces 220 pieces. The reward quantity is 27 per hour, and for the 6
hours is 27 x 6 = 162. The job rate is, say, 24s., because this work
would be done by unskilled or partially skilled labour. This is 6d. per
hour, and if the worker produces 27 or less pieces per hour that is
what he receives. If he produces more than 27 per hour, he gets paid at
the rate of 6d. per 27 for the excess, this being equivalent to being
paid for all the time saved.
The production in 6 hours is 220; the reward quantity for that time is
162, and the standard quantity 216. It is seen that efficiency in this
case is over 100 per cent., because 220 is 4 more than standard. Reward
is paid on 220-162 = 58, and payment is made at the rate of 6d. for
each 27. If we divide 58 by 27, and multiply the result by 6d., this
will give the amount of reward--namely, 1s. This is the reward for 6
hours' work, and is 2d. per hour, so that the worker gets 8d. per hour
instead of 6d.
Efficiency is about 102 per cent.
The following shows these examples in tabular form:
I.
Base time 12 hours
Standard time 15 "
Reward time 20 "
Time taken 16-1/2 "
Time saved 3-1/2 "
Job rate per hour 9d.
Reward 3-1/2 x 9 = 2s. 8d.
Total reward for week if reward is earned at
same rate all the week (namely, 48 hours) 7s. 9d.
Total earnings .. .. .. 36s. + 7s. 9d. = 43s. 9d.
II.
Base quantity 40 per hour
Standard quantity 36 "
Reward quantity 27 "
Time worked 6 hours
Quantity produced 220
Reward quantity for 6 hours 162
Excess quantity 58
Reward at 27 for 6d. 1s.
Total reward for week if reward is earned
at same rate all the week (namely, 48
hours) 8s.
Total earnings 24s. + 8s. = 32s.
Public-domain text, read in full here on John Shaqi.
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