Premium bonus method
According to illustration 11 as per halsey system if worker works efficiently he gets payment of Rs.420 But if he don't work efficiently then he will work for complete 8hrs and he will be paid 480Rs.(time allowed is 8hrs Ã? rate per hr 60Rs.=480Rs.) Then why would the worker works efficiently...?
In the illustration 11, it is said that as per Halsey the employee earned Rs.420 as bonus and as per Rowan he earned Rs.450. Your point is that if the employee do not opt for any of the bonus schemes then his pay will be Rs.480 (8 hours x Rs.60). Do you think the employee will stop working after 6 hours when he is being paid for his efficiency? Since he is getting bonus payment he will either work efficiently for the remaining 2 hours also or save the time for earning more money in some other way. But since here we are calculating for a fixed output to be achieved, we only concentrated on the efficiency (in terms of time) of the employee in getting the targeted output. So thinking in a different way, we can also assume that the employee worked for 8 hours where only 6 hours are for the targeted output and remaining 2 hours for extra output paid, either by the normal wage rate or by applying the bonus schemes (This depends on the employee efficiency and the company's rules).