Principles of Management — Business Studies STD 12 Commerce — Question

Differential Wage System: Taylor has advised the adoption of differential wage systems in order to motivate the employees. According to this system wages are paid on the basis of work done and not on the basis of time spent in doing the work. In this system, two different wage rates are used: one is the high wage rate and the other is the low wage rate. Those workers who are able to produce the standard number of units within a fixed duration are paid as per the high wage rate, and those workers who are not able to produce the standard number of units within the same time are paid as per the lower wage rate.
Imaginary Plan: The following is the plan of differential piece rates to be introduced for the workers engaged in sewing shirts:

Standard Production:	4 Shirts Per Day
Working hours per day:	8 Hours
Wage rate for standard and more than standard output:	₹ 40 per shirt
Wage rate for less than standard production:	₹ 35 per shirt