Gantt Task and Bonus Plan

This plan combines piece, time and bonus systems. The major features of this plan are following:

• Day wages are guaranteed.
• Standard time for task is fixed and both time wages and a high rate per piece are determined.
• A worker who cannot complete the work within the standard time is paid on basis of time.
• If a worker reaches the standard, he will be paid time wage as well as a bonus at fixed percentage (20%) of normal time wage.
• If the worker exceeds the standards level, he is paid a higher piece rate.

Merits

• This plan is not as insensitive as the Taylor's differential piece rate system. Therefore it is more suitable to the workers.
• Workers can simply understand its working.
• It ensures guaranteed time wages to unproductive workers also.
• It makes difference between efficient & inefficient workers because the system make ensures time wages for ineffective workers and piece wages and 20% bonus for efficient workers.
• Labour cost per unit drop with increase in manufacture due to incentive for efficiency given under this plan.

Demerits

• It categorizes workers into two competing categories (efficient & inefficient) and It may bring disunity amongst workers.
• While this method is utilized, labour cost will be high for low manufacture.
• Great care is to be exercised in fixing the guaranteed time rate and determination of standard output. Due to lack of experience any error will lead to unfavourable consequences.