From the following data, calculate the earnings of A and B under straight Piece Rate basis and Taylor's Differential Piece Rate method : Standard Production 8 units per hour Normal time rate 0.40 per hour. Differential to be applied : 80% of piece rate at or below standard. 120% of piece rate above standard. Production in a 9 hour day: A-54 units; B-75 units.​

Answers 1

Taylor’s Differential Piece Rate System (Formula and Calculation)!

Differential Piece Rate System was introduced by Taylor, the father of scientific management. The underlying principle of this system is to penalise a slow worker by paying him a low piece rate for low production and to reward an efficient worker by giving him a higher piece rate for a higher production. Taylor was of the view that an inefficient worker should have no place in the organisation and he should be compelled to leave the organisation by paying him a low piece rate for low production.

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Answer:

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