Piecework Plan and Merit Pay
Programme Title: Management of Human Resource and the Practice of Management
Batch No: ABMEM 0962B
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Written By:
Deadline: 26-Dec-2009
Table of Content
No. | Topics Headings in Project | Pages | 1 | The usefulness and limitations of Piecework plan and Merit Pay | Pg 3 – Pg 10 | 2 | Identify and explain 5 reasons as to why incentive plans fail | Pg 11 – Pg 13 | 3 | How are you going to implement the incentive plans? | Pg 14 – Pg 15 |
Question 1
It was Frederick Taylor who advances the arguments for adopting financial incentives as a motivation tool. Critically examine the usefulness and limitations of the two following incentive plans: a) Piecework plans b) Merit Pay
a) Piecework plans
Under the straight piecework plan, the employee is guaranteed a minimum hourly rate for meeting a pre-established standard output. For output above this standard, the employee earns a specified amount for each piece produced. Under differential piece rate plans, there are two rates. One rate is for the performance up to the standard. The other is used when the employee exceeds the standard. The latter rate is higher than the former. It is simply to encourage the employee to exceed the standard.
Following stated two type of Piecework pay:
Straight piecework is a fixed sum is paid for each unit the worker produces under an established piece rate standard. An incentive may be paid for exceeding the piece rate standard.
Standard hour plan is worker gets a premium equal to the percent by which his or her work performance exceeds the established standard (Dessler.G, 2005)
Following are several benefits applying of piecework plans in organization or factories:
Boost Productivity
Motivating employee’s more productivity and enhanced. This plan is suitable apply on certain field i.e.; farms crew and textile factories in order to raise output to meet customer orders or improving on time shipments.
From theory
Batch No: ABMEM 0962B
===============================================================
Written By:
Deadline: 26-Dec-2009
Table of Content
No. | Topics Headings in Project | Pages | 1 | The usefulness and limitations of Piecework plan and Merit Pay | Pg 3 – Pg 10 | 2 | Identify and explain 5 reasons as to why incentive plans fail | Pg 11 – Pg 13 | 3 | How are you going to implement the incentive plans? | Pg 14 – Pg 15 |
Question 1
It was Frederick Taylor who advances the arguments for adopting financial incentives as a motivation tool. Critically examine the usefulness and limitations of the two following incentive plans: a) Piecework plans b) Merit Pay
a) Piecework plans
Under the straight piecework plan, the employee is guaranteed a minimum hourly rate for meeting a pre-established standard output. For output above this standard, the employee earns a specified amount for each piece produced. Under differential piece rate plans, there are two rates. One rate is for the performance up to the standard. The other is used when the employee exceeds the standard. The latter rate is higher than the former. It is simply to encourage the employee to exceed the standard.
Following stated two type of Piecework pay:
Straight piecework is a fixed sum is paid for each unit the worker produces under an established piece rate standard. An incentive may be paid for exceeding the piece rate standard.
Standard hour plan is worker gets a premium equal to the percent by which his or her work performance exceeds the established standard (Dessler.G, 2005)
Following are several benefits applying of piecework plans in organization or factories:
Boost Productivity
Motivating employee’s more productivity and enhanced. This plan is suitable apply on certain field i.e.; farms crew and textile factories in order to raise output to meet customer orders or improving on time shipments.
From theory
References: Dessler G., Human Resource Management 10e (2005) Prentice Hall Inc: http://www.sba.pdx.edu/faculty/marcian/ppt12.ppt (Accessed 11 Dec 09) Incentive Program, modified on 10 November 2009 http://en.wikipedia.org/wiki/Incentive_program (Accessed 11 Dec 09) The New York Times: published October 27, 1921[Copyright the New York Times] [articles: Threatens Strike on Piecework Plan] Pilbeam S Selvaraj N. & Devi S.S. (2002), Quality Human Resource Management, Malaysia: Selangor James Pickford (Ed), (2003), Mastering People Management, British: Edinburgh Gate Harlow