Remuneration

Generally there are two basic methods of wages payment. 1. Time rate (or) day rate system, 2. Piece rate system, The Other methods are, 3. Premium bonus (or) incentive system, 4. indirect incentives / non monetary incentives.

1)Time rate system

At ordinary levels, b) At high wages levels, c) Guarantee time rates.
a)

2)Piece rate system

Straight piece rate, b) Piece rate with guaranteed firm rate, c) Differential piece rate, i. Taylor Differential piece rate system, ii. Merrick Differential piece rate system,
a)

iii.

Gantt task bonus system

3)Bonus systems
a) i. ii. iii. iv. v. vi.

Individuals bonus systems Halsey premium plan, Haley-weir premium plan, Rowan system, Emerson efficiency bonus, Bedaux point premium system, Accelering premium plan.

b)Ground bonus/profit sharing scheme

4) Indirect incentives / non monetary

incentives

1)Time rate system:

(a)Time rate at ordinary levels: under this method, payment is made on the basic of time, which may van hours,day,week (or) a month, irrespective of the output.
earnings = hours worked rate per hour

That system, expert that the time rate is high, Higher than the time rate & ordinary level. That system has high standard of performance. High wages increase lab our cost unless it is compensated by an in production.

(b)Time rates at high wages levels:

(3) Guarantee

time rates:

In that system to considered personal qualities,skill,ability,Etc.

2) Piece rate system

According to this systems, the volume of work done is the basis for payment of wages for workers. The workers gets payment according to his speed,ability,efficiency etc. (a) Straight piece rate: under this system the worker gets a flat rate per unit of output. his earnings, (e.g.) piece work earning = rate per unit unit produced. (b)Piece rates with guarantee time rates: Under this systems a workers gets a fixed amount of wages.

(c)Differential piece rate:

Under this systems the rate per piece is increased, as the output level is increased. By this system efficiency workers are encouraged to earn more. (1) Taylor Differential piece rate: o F.w.taylor ,the further of scientific management introduced this system according to this system: i. There are two piece rate systems one is lower & the other is higher. ii. Lower piece rate is for the output below the standard & higher piece rate is for output above the standard. iii. For each job, standard time is stipulated

(2) Merrick Differential piece rate systemmodification of Taylor system, in order to Its a
reduce the penalization of slow workers. thus these persons are encouraged. He introduced 3 rates, in place for two. they are: efficiency piece rate applicable I. up to 83% basic rate (normal rate) II. From 83%to100% 110% of basic piece rate III. Above 100% 120% of basic piece rate

(3) Gantt task & bonus scheme

This is a system combined with time, piece rate and bonus. Time wages are guranteed to workers, who fail to reach the standard. The main features are: i. Standards are set & bonus is paid, if a worker completes the work within the standard time. ii. Day wages are guranteed. iii. A worker whop could not complete the work within the standard time, is pair on time wages. iv. The remuneration is payable.

remuneration a. time rate (guranteed) b. Output at standard level bonus of 20%of time rate c. Output above standard high piece rate on workers

out put Output below standard

5) Premium bonus scheme:

i.
ii.

The system of wage payment is of 2 types; Time rate system, Piece rate system.

(a) Halsey premium plan

This system is also known as split bonus plan or 50-50plan.

Total earnings = TT HR *(TA-TT)HR TT =Time taken, TA = time allowed, 14R =Hourly Rate, TS = Time saved.

Here the worker gets a bonus of 30%of the time saved, against 50% in the halsey plan. expect for this point. Halsey plan & halsey- weir scheme are similar.

(b) The halsey weir scheme:

(c)

Rowan scheme :

Its

similar to halsey plan except in regard to the determination of bonus.

Total earnings = time wages bonus

(d) Emerson efficiency bonus,

Under this plan when the efficiency of the workers reaches 67% he gets bonus at the given rate. The rate of bonus increase gradually From 67%to 100% efficiency. Above 100% bonus will be at 20% of the basic rate plus 1% for each 1% increase in efficiency.

(e)Bedaux point premium system

Its a combination of time and bonus schemes. Standard production per hour determined &the unit of measurement is mints. an hour as taken as 60 mints. Each mints of standard time (or) allowed time is called point-Bedaux point. Bonus 75% is allowed to employees & remaining 25% does to employer.

(f) Accelerating premium:

Bonus at faster increase & faster rate as output increase. The plan offers a higher incentive to the workers. The plan complex one.

(g)

profit sharing scheme & co-partnership:

Profit sharing scheme is an agreement between the worker & employer. The get a share from profit in addition normal wages.

(4) Non monetary incentives:

Under this system incentives are provided in the form of batter facilities instead of paying cash. The object is to attract the workers.

Remuneration
It is the compensation an workers receives is the compensation an worker receives in return for his/her contribution to the organization.

Remuneration

Financial

Non- Financial

Hrs&months

incentives

Fringe benefits

perquisites

Job content challenging job responsibility

Direct

In Direct

Piece work:

A system pay based on the number or item processed by each worker in unit of time.
an incentive plan in which a person is paid a sum for each item he/she makes, with a strict proportionally between results& rewards.

Straight piece work:

Standard hour plan: Workers is paid a hourly rate but is paid an extra % of his/her rate of production exceeding the standard per hour or per day

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