Mechanical Engineering - Industrial Engineering and Production Management - Discussion

The correct answer is Halsey's plan.

The Halsey plan is a wage incentive plan that rewards workers with a bonus that increases in proportion to the increase in efficiency. The plan is based on the idea that workers should share in the gains resulting from their increased productivity.

Under the Halsey plan:

- The standard time for a task is set
- The worker's actual time is recorded
- The bonus is calculated as a percentage of the time saved, relative to the standard time

The other options are not correct:

- Gantt plan: This plan pays a bonus for completing work within a certain time, but the bonus does not increase proportionally with efficiency.
- Emerson's efficiency plan: This plan pays a bonus based on a percentage of the total wages, but it does not directly tie the bonus to individual efficiency gains.
- Rowan plan: This plan pays a bonus based on a percentage of the savings achieved, but it is typically used for group incentives rather than individual efficiency gains.

The Halsey plan is a classic example of a wage incentive plan that aims to motivate workers to increase their productivity and efficiency.

According to Emerson, bonus need not be paid to those workers who efficiently are less than 66.67 per cent. Up to 66.67 per cent efficiency, the bonus will not be paid but minimum wages as per time are to be paid. The rate of bonus will increase along with the increase in efficiency.