Merrick's Differential Piece Rate System

In Taylor's Method, the effect on the wages is fairly severe in the marginal cases. To eliminate this defect, Merrick came out along a Multiple Piece Rate System. There are three piece rates under this system rather than two, and employee producing below the standard output are not penalised by the low piece rate. As the earnings enhance with enhance efficiency, performance above the standard will be rewarded by more than one higher differential piece rate. The fundamental features of this scheme are: (a) upto 83precent of the standard output employee are paid at the normal piece rate (b) 83% to 100% at 110% of the normal piece rate, and (c) above 100% at 120% of the normal piece rate.