Wage incentive plans “The bonus increases in proportion to the increase in efficiency.” This statement applies to which plan?

Introduction / Context:
Wage incentive systems link worker earnings to performance. Understanding how popular plans compute bonus is essential for fair compensation and productivity improvement. The Emerson efficiency plan ties bonus directly and proportionally to the measured efficiency level.

Given Data / Assumptions:

• Efficiency is measured as (standard time / actual time) or similar index.
• Plans differ in how they calculate bonus from efficiency.
• The question asks which plan makes bonus proportional to efficiency.

Concept / Approach:
Emerson’s plan pays a guaranteed day rate up to a threshold efficiency, then adds a bonus that increases proportionally with efficiency improvements. By contrast, Halsey and Rowan plans compute bonus from time saved; Gantt often gives a high bonus if standard is met or exceeded but not strictly proportional across the entire range.

Step-by-Step Solution:
Identify proportionality requirement: bonus ∝ efficiency.Emerson: bonus rate rises with efficiency beyond a base level → matches condition.Halsey/Rowan: bonus depends on time saved, not directly proportional to efficiency across the whole range.Gantt: premium/bonus once standard met, not proportional across the spectrum.

Verification / Alternative check:
Review formulae: Emerson bonus = k * (efficiency − threshold) for efficiency above threshold, illustrating proportionality.

Why Other Options Are Wrong:
Halsey and Rowan rely on time saved mechanics; Gantt uses a task and bonus approach with a step at standard performance.

Common Pitfalls:
Confusing proportional bonuses with threshold or stepwise bonuses; mixing “time saved” formulas with “efficiency index” formulas.

Final Answer:
Emerson's efficiency plan