Cakulation of enmity
(a) A company is proposing to introduce an incentive scheme into its factory. Required:
Three advantage sand three disadvantages of individual incentive schemes.
(b) The company is undecided on what kind of scheme to introduce. Required:
From the following information calculate for each employee his earnings. using
(i) guaranteed hourly rates on/y(1%1de pay):
piecework but with earnings guaranteed at 75% of bask pay where the employee fails to camthis amount:
(i) premium bonus. in which the employee receives two-thirds of time saved in addition to hourly pay.
Employees
| A | B | C | D | |
| Actual hours worked | 38 | 36 | 40 | 34 |
| Hourly rate of pay | £3 | £2 | £2.50 | £3.60 |
| Output (units) X | 42 | 120 | – | 120 |
| Y | 92 | – | 50 | – |
Standard time allowed (per unit):
X: 6 minutes: 9 minutes: 2:15 minutes
Each minute earned is valued at £0.05 for piecework calculation.
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