Given below are two statements:
Assertion (A): Under the differential piece wage system, workers who perform above the standard are paid at a higher rate per unit than those who perform below it.
Reason (R): The differential wage system must be based on the premise that efficiency is the result of the joint efforts of the managers and the workers.
In the light of the above statements, choose the correct answer from the options given below:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Both (A) and (R) are true but (R) is not the correct explanation of (A).
Assertion (A): Under the differential piece wage system, workers who perform above the standard are paid at a higher rate per unit than those who perform below it. — True. A standard output is first fixed through work-study. Workers who reach or cross the standard get a higher rate per unit, and those below it get a lower rate.
Reason (R): The differential wage system must be based on the premise that efficiency is the result of the joint efforts of the managers and the workers. — True. Taylor held that efficiency comes from the joint efforts of managers and workers. So both sides should work in harmony to raise output, rather than quarrel over their share of the surplus.
Why R does not explain A?
A is about why there are two rates of pay. R is about the attitude the system should rest on: managers and workers both create efficiency, so they should work together. Working together does not lead to paying one worker more than another, so R does not bring about A.
The correct reason for A is that Taylor wanted to tell efficient workers from inefficient ones and reward the efficient. Because a standard is fixed by work-study, each worker can be judged against it, so those above the standard get the higher rate.
NCERT (2026-27 Edition): “Differential Piece Wage System Taylor was a strong advocate of piece wage system. He wanted to differentiate between efficient and inefficient workers. The standard time and other parameters should be determined on the basis of the work-study discussed above. The workers can then be classified as efficient or inefficient on the basis of these standards. He wanted to reward efficient workers. So he introduced different rate of wage payment for those who performed above standard and for those who performed below standard. … There must be a compensation system that differentiates those who are able to accomplish/exceed the fair day’s work. This differential system must be based on the premise that efficiency is the result of the joint efforts of the managers and the workers. Thus, rather than quarrelling over the share in the resultant surplus, the workers and managers should work in harmony for maximising the output rather than restricting it. …” |