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.
McGraw-Hill Dictionary of Scientific & Technical Terms, 6E, Copyright © 2003 by The McGraw-Hill Companies, Inc.
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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.
Henry Laurence Gantt: the Gantt Chart

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