1.

Explain four major differences between Halsey and Rowan plans of incentive.

Answer»

Distinction between Halsey Plan and Rowan Plan

BasisHalsey planRowan plan
1. UnderstandabilityIt is simple to understand and calculate wages.It is difficult to understand.
2. Bonus calculationBonus is fixed percentage of time saved.Bonus is the proportion between time saved and standard time-bonus varies.
3.Danger of over paymentThere 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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