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Answer» Distinction between Halsey Plan and Rowan Plan | Basis | Halsey plan | Rowan plan | | 1. Understandability | It is simple to understand and calculate wages. | It is difficult to understand. | | 2. Bonus calculation | Bonus is fixed percentage of time saved. | Bonus is the proportion between time saved and standard time-bonus varies. | | 3.Danger of over payment | There is a danger of over-payment of bonus when the rate is not fixed. | There is no danger of over-payment of bonus when the rate is not fixed. | | 4. Formula | (Time taken x Hourly rate)+(Time saved/2 x Hourly rate) | (Time taken x Hourly rate) + (Time saved/Standard time x Time taken x Hourly rate) |
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