Introduction to Priestman's production bonus plan
Within this plan the standard output is determined earlier that has to be achieved, say, in a week through the workers as a group in a factory. The standard productivity can be set in terms of units or points. The bonus is paid to them as per to the proportion of increase in output if the workers produce more than the standard output. This is accommodating production bonus plan because all the workers together make efforts to achieve the standards.
Bonus system for indirect workers
A number of progressive concerns have designed systems of rewarding even indirect workers through setting up norms for the results of their labours. They are based either on the own labours of the indirect workers or the production of allied group of direct workers. For instance, in the former case' a preservation foreman may be compensated for the timely finishing of the maintenance programme; a sweeper might be rewarded on the basis of the floor area cleaned from him etc. In the later case the indirect workers might also be granted a number of incentive bonuses if the workers of the departments for which they render service become labelled to bonus. This might be necessary on the ground that they have also helped the direct works in finishing or getting their aims. Though, the former method should be favoured to the latter since that links bonus with the own labours of the worker.
Individual and group bonus schemes
Incentive schemes to reward the workers for to motivate and their competence them to carry out above average level of activity, might be either on individual basis or group or gang basis. In those cases in which the work of individual workers can be calculated against the standards set, it would be surely better to pay incentives on the basis of comparative efficiency of each worker. This will be a huge moral boost to the worker because he knows that his reward has a direct link. However, with his own performance, the scheme should be well-defined and clearly understood by the worker. In those cases in which the output of individuals cannot be measured separately, group bonus schemes are employed. In case of such type of a scheme, the group like a whole acquires a reward for performance. The scheme has the following benefits:
Team spirit develops between the workers because each worker knows that his or her reward for performance of the group as a complete.
(ii) There is a healthy competition among dissimilar groups doing the same job. This results in more production but less costs.
(iii) The operators and supervisors also feel interested in the scheme because they will also be compensated for the performance of their group.
Group incentive schemes occasionally do not work effectively due to some workers being lazy and not efficient. Other workers also turn into lazy in due course since they resent sharing of fruits of their hard work through other inefficient workers. Furthermore, induction of new workers in the groups that are presents becomes hard on account of opposition through existing workers.
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