Unit 7
Unit 7
Structure
7.0 Objectives
7.1 Introduction
7.2 Methods of Wage Payment
7.2.1 Time Wage System
7.2.2 Piece Wage System
7.2.3 Balance of Debt System
7.3 Incentive Plans
7.3.1 Halsey Premium Plan
7.3.2 Rowan Premium Plan
7.3.3 Differential Piece Rate System
7.3.4 Group Bonus Scheme
7.4 Let Us Sum Up
7.5 Key Words
7.6 Answers to Check Your Progress
7.7 Terminal Questions
7.0 OBJECTIVES
After studying this unit, you should be able to:
●● understand time wage system; and
●● understand piece wage system;
●● explain balance of wage system; and
●● explain various incentive plans used to reward labour efficiency.
7.1 INTRODUCTION
In the previous unit, you learnt various aspects of labour and how their
wages are computed. In this unit, you will learn another important aspect
of labour that is payment of wages.
There are three important methods of wage payment namely time wage
system, piece wage system and balance of debt system. Besides there are
some incentives plans by which the more productive labour is motivated
and rewarded. Incentive plans are used to compensate the efficiency of
labour for the extra efforts used in minimising the time and cost.
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Note: These questions will help you to understand the unit better. Try to
write answers for them and verify with the content. But do not submit
your answers to the University. These are for your practice only.