Determining Efficiency under Gantt’s Task and Bonus Plan

This system, like the Emerson’s system, involves measurement of efficiency. A standard has to be set on the basis of

careful time and motion study. The worker’s actual performance is compared with the standard and his efficiency

determined. Only time wages are paid if the efficiency is below 100%.

At 100% efficiency, a bonus of 20% is paid on the wages earned. For efficiency greater than 100%, or where the

worker does the job in less than the standard time, he is paid wages (under piece rate) plus the bonus of 331/3%. The

above two plans are not as harsh as the Taylor’s Differential Piece System and they are easy to introduce. But the

workers are divided into those who earn bonuses and those who do not.

Illustration:

The following particulars relate to a factory:

Guaranteed Normal Rate Rs. 2 per hour; Piece Rate Rs. 1.20 per unit; High Task (Standard) 60 units per week;

Output of three workers in a 40 hours week:

A—48 units; B—60 units; C—65 units

Total wages of the workers are calculated according to Gantt Premium Scheme, where guaranteed time wages will

be paid if the worker is below standard; a bonus of 20% on the piece rate will be paid if the worker is at standard and

for above standard a bonus of 331/3% will be paid. Calculate the wages of all the three workers.