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.