Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:

Based on following case study, answer question.

 "Oxlo enterprises" is a renowned name in textile manufacturing Industry. Over the past 2 years the company has scaled to new heights. The management has been grateful to the loyal team of managers and staff. Mr. Sharma, who is the operations head has been very clear about giving work to team mates based on their specialisation and skills. He has also given positional rights to people and often talks to subordinates to perform work and submit it on time. Talking about production department, where Ms. Neeta is departmental head. In her team, work is well distributed till the lower most levels. She makes sure that no gender bias is there and all people are treated equally.

"Oxlo enterprises" follows a system of official communication where each subordinate contacts his/her immediate superior only. One of the best working patterns that exists in the organisation is that everyone and everything can be found at the right place. The whole company works on the ideology of "United we stand" and the culture can be translated by their usage of "We" as a common phrase. As the size of company has tremendously expanded, now the management has hired two new Departmental heads to focus on productivity. One of them has been made "Planning Incharge" and the other one as "Production Incharge". Mr. Padam, who is the Production Incharge, has suggested, an innovative way to improve production of units by workers. He said those workers who produce more units than standard would be paid more money per unit produced.


Mr. Padam also suggested to use standards for performance of both men and machines, so that raw material, time, product, machinery methods on working conditions can perform as per benchmarks.

"He said those workers who produce more units than standard would be paid more money per unit produced."

Identify the technique of F.W. Taylor being suggested by Mr. Padam.

Options:

Time study

Differential piece wage system

Motion study

Method study

Correct Answer:

Differential piece wage system

Explanation:

The correct answer is option (2) : Differential piece wage system

The technique of F.W. Taylor being suggested by Mr. Padam is the "Differential Piece Wage System." This system involves paying workers based on the number of units they produce, with higher rates per unit for those who exceed the standard production. It's a method aimed at incentivizing higher productivity and efficiency among workers.

* 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 workstudy 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.