Differential Piece Wage System:Differential Piece Wage System is a technique which differentiates between efficient and less efficient workers. It rewards the efficient workers and motivates the less efficient ones to improve their efficiency.
In this plan, there are two piece rates - one for those workers who produce the standard output or more, and the other for those who produce less than the standard output e.g.
Standard output (per worker per day) = 10 units.
Wage rate I = Rs. 2 per unit (for output < 10 units).
Wage rate II = Rs. 3 per unit (for output > = 10 units).
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Particulars
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Worker 'A'
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Worker 'B'
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Actual output
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9 units
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11 units
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Total wages (in Rs.)
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9 x Rs. 2 = Rs. 18
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11 x Rs. 3 = Rs. 33
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Difference in units produced = 2
Difference in wages = Rs. 15
Functional Foremanship
- Functional foremanship is a technique which aims to improve the quality of supervision at shop floor by putting a worker under eight specialist foremen.
- In this technique, planning is separated from execution. Taylor suggested four foremen for planning, namely, route clerk, instruction card clerk, time and cost clerk and disciplinarian and four foremen for execution, namely, gang boss, speed boss, repair boss and inspector.