Bedeaux Plan

Definition: The Bedeaux Plan is an incentive scheme in which the standard time for the completion of a
job is fixed and the rate per hour is defined. Each minute of the standard time is called as point or B,
such as in one hour there are 60 Bs.

Under Bedaux plan, every job has a standard number of Bs. If the worker completes the job in more
than standard hours, then he is paid according to the time-rate, i.e. time taken is multiplied by the
hourly rate. In case, the work is completed in hours less than the standard time; then the worker is
entitled to the bonus in addition to the hourly rate. A bonus is equal to the 75% of the earned/saved
points (in excess of 60 per hour) multiplied by one-sixtieth of the hourly rate.

Even if the worker does not reach the standard, then he is paid according to the time-rate. This scheme
can be illustrated by examples given below:

Standard Time = 8 hrs

Rate per Hour = $ 1

Case (1): Actual Time = 10 hrs

Earnings = 10 X 1 = Rs 10

Case (2): Actual Time = 6 hrs

Earnings:
Time-wages = 6 X 1= $ 6
Bonus:
Standard Bs = 60 X 8 = 480
Actual Bs = 60 X 6 = 360
Saved Bs = 120 (480-360)

Thus, total earnings = $ 6 + 1.50 = $ 7.50

Halsey 50 – 50 Plan
Definition: Under Halsey Plan, the standard time for the completion of a job is fixed and the rate per
hour is then determined. If the time taken by a worker is more than the standard time, then he shall be
paid according to the time rate, i.e. time taken multiplied by the rate per hour.

In Halsey plan, the time wages are guaranteed even if the output of a worker is below the standard. In
case, the worker completes the works in less than the standard time, then he/she will be paid according
to the actual time, i.e. time-rate plus the bonus calculated at a specified percentage of the saved time.
The usual bonus share paid to the worker is 50% of the time saved multiplied by the rate per hour
(time-rate).

This scheme can be further illustrated by the examples given below:

Standard Time: 8 hrs

Rate per Hour: $ 2

Case (1): Time Taken = 8 hrs

Earnings = 8 x 2 = $ 16

Case (2): Time Taken = 10 hrs

Earnings = 10 x 2 = $ 20

Case (3): Time Taken= 6 hrs

Earnings:
Time wages = 6x 2 = $ 12
Bonus = ½ x 2 x 2 = $ 2

Thus, in the above example, the worker’s total earnings are $ 14 (time wages +bonus), if he has
completed the work in 6 hrs, less than the standard time.
Rowan Plan
Definition: Under Rowan Plan, the standard time for the completion of a job and the rate per hour is
fixed. If the time taken by the worker is more than the standard time, then he is paid according to the
time rate, i.e. time taken multiplied by the rate per hour.

In case, the worker completes the work in less than the standard time; then he is entitled to a bonus
along with the time wages. A bonus is the percentage of worker’s time rate. This means, the
bonus/premium is calculated on the percentage of wages earned for working on a job and is not
calculated for the time-saved, as in the case of Halsey Plan. This percentage is equivalent to the
proportion of the time saved to the standard time. Numerically,

Bonus = Time Saved/ Standard Time

The incentive scheme under Rowan Plan can be illustrated by the examples given below:

Standard Time = 8 hrs

Rate per hour = $ 2

Case (1): Time Taken = 8 hrs

Earnings = 8 x 2 = $ 16

Case (2): Time Taken = 10 hrs

Earnings = 10 x 2 = $ 20

Case (3): Time taken = 6 hrs

Earnings:
Time Wages = 6 x 2 = $ 12
Bonus = 2/8 X 6 = $ 1.5

Thus, in the above example, the worker completing the work in 6 hrs, less than the standard time, the
total earnings will be $ 13.50 (time wages+bonus).
Gantt Task System
The Gantt task system guarantees the worker’s time-rate for the level of output below the standard.
Thus, if the worker takes more than the standard time to complete the task, then his efficiency is below
100%, and he is paid only the time wages.

If the worker completes the task within the standard time, then his efficiency is 100% and in addition to
the time wages, he is also paid a bonus of 20% on the wages earned. If the worker takes less than the
standard time to complete a task, then his efficiency is more than 100%, and the wages are paid at high-
piece rates.

The Gantt task system can be illustrated by the following example:

Rate per Hour = $ 0.5

High piece-rate= 0.10
Standard Output= 100 units
Time Taken = 8 hrs

Case (1): Output = 80 units

Since the output is less than the standard, the worker is entitled to only time wages, thus,
Earnings = 8 x 0.5 = $ 4

Case (2): output = 100 units

As the output is equivalent to the standard, the worker is paid the time wages plus a bonus of 20% on
time wages. Thus,
Earnings:
Time Wages = 8 x 0.5 = $ 4
Bonus = 20/100 x 4 = $ 0.8
Total Earnings = $ 4.08

Case (3): Output = 110 units

Since the output is more than the standard, the worker shall be paid at a high piece-rate, thus,
Earnings = 110 x 0.10 = $ 11