Industrial engineering (wage plans): Which of the following wage incentive plans is designed to be applied across all workers in a plant, awarding bonuses based on measured efficiency against a standard?

Difficulty: Easy

Correct Answer: Emerson's efficiency plan

Explanation:


Introduction / Context:
Wage incentive plans in industrial engineering motivate higher productivity and align worker compensation with performance. Understanding which plan applies to all workers versus only those who save time on an assigned task helps select the right scheme for a factory or service operation.



Given Data / Assumptions:

  • A plant uses time standards developed via time study or predetermined motion time systems.
  • “Applied to all workers” means every worker's bonus is calculated from a common efficiency metric, not just a few individuals who beat a specific time.
  • Quality and safety levels are maintained; only acceptable output counts toward efficiency.


Concept / Approach:
Emerson's efficiency plan calculates an efficiency percentage (actual output or time versus standard). Below a threshold (often around two-thirds efficiency) workers receive guaranteed day wages; above that threshold, progressive bonuses are paid to all workers according to their efficiency level. By contrast, Halsey and Rowan are premium plans on a single job's saved time, and Gantt is a task-and-bonus differential plan.



Step-by-Step Solution:

Define efficiency% = (Standard time / Actual time) * 100 or (Actual output / Standard output) * 100.Apply a plant-wide bonus schedule that increases with efficiency beyond a set threshold.Ensure day-wage guarantee so low-efficiency workers still receive base pay.Outcome: every worker's pay can include a bonus, scaled by efficiency.


Verification / Alternative check:
Compare plan mechanics: Halsey/Rowan require time saved on a job; Gantt pays a high bonus only when a high standard is met. Only Emerson's explicitly scales bonuses for all workers via efficiency percent.



Why Other Options Are Wrong:

  • Halsey plan: Bonus applies to saved time on a job, not automatically to all workers.
  • Gantt plan: Task-and-bonus or differential piece—bonus only if the task standard is met.
  • Rowan plan: Bonus proportionate to time saved; again job-specific, not plant-wide efficiency for all.


Common Pitfalls:
Assuming “applied to all” means equal bonus; in Emerson's plan, bonus scales with each worker’s efficiency.



Final Answer:
Emerson's efficiency plan

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