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Q. Taylors differential piece rate system?
Taylor's differential piece rate system (developed by the F W Taylor in the 1880): there is a low rate or for the o/p below the standard, and a higher piece rate for the o/p above the standard with a large bonus of 50 per cent of the time rate when the standard output is attained. Merits of Taylor's differential piece rate system:
a. It makes a distinction b/w efficient and inefficient worker. Lazy and inefficient workers are penalized, while efficient workers are rewarded.
b. The basis of this system is scientific. It is based on proper work study.
c. It helps in spotting and eliminating inefficient workers.
Demerits of Taylor's differential piece rate system:
a. A worker missing the standard even by narrow margin is penalized heavily.
b. It is more mechanical and less humane.
c. Trade unions oppose this plan.
d. It may lead to discontentment among the workers.
e. There is no guaranteed minimum wage.
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