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Rowan premium plan: it is widely used in the England. It was introduced by James Roman of David Rowan and sons, Glass raw in 1901. It is modification in the Halsey plan. The premium is calculated on a per cent of wages for the time worked and not for the time saved.
Merits of Rowan premium plan:
1. The total bonus earned does not does not increase in the same proportion in which the efficiency increases and thus there is no possibility of over speeding.
2. There is less cost of supervision.
3. The plan is good for beginners and learners.
4. There is no inducement to the worker to rush through the work.
Demerits of Rowan premium plan:
1. No difference id made b/w efficient and inefficient worker.
2. It is difficult for the workers to understand.
3. As the time saved increases (or efficiency increases), the bonus will be a decreasing proportion.
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Effective human resources management depends upon sound reward system". Comment
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