Wage incentive plans: plan with guaranteed minimum wage and bonus as fixed percentage of time saved Identify the incentive plan that guarantees a time rate and pays a bonus equal to a fixed percentage of time saved. Choose the correct plan.
Mechanical Engineering
Industrial Engineering and Production Management
Difficulty: Easy
Choose an option
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AHalsey plan
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BGantt plan
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CRowan plan
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DEmerson efficiency plan
Answer
Correct Answer: Halsey plan
Explanation
GivenBonus is a fixed percentage of time saved with guaranteed minimum wages.
ConceptHalsey plan bonus = p × (Time saved) × (Hourly rate), typically with p = 50% and an assured time rate floor.
Why others do not match• Rowan: bonus ∝ (Time saved / Time allowed); not a fixed percentage of time saved.• Gantt: guaranteed time rate plus high piece rate/bonus for meeting standard, not fixed fraction of time saved.• Emerson: bonus based on efficiency levels; different structure.
Final AnswerHalsey plan