differential piece-rate system

differential piece-rate system

[‚dif·ə′ren·chəl ′pēs ‚rāt ‚sis·təm]
(industrial engineering)
A wage plan based on a standard task time whereby the worker receives increased or decreased piece rates as his or her production varies from that expected for the standard time. Also known as accelerating incentive.
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Gantt's Task and Bonus wage system was introduced in 1901 as a variation on Taylor's differential piece-rate system. With Gantt's system, the employee received a bonus in addition to his regular day rate if he accomplished the task for the day; he would still receive the day rate even if the task was not completed, whereas Taylor's piece-rate system penalised employees for sub-standard performance.

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