A factory sets a standard output of 20 units a day. Workers who make 20 units or more are paid Rs. 10 per unit, and those who make fewer are paid Rs. 8 per unit. According to Taylor, on what basis should the factory fix the standard used in this wage system?
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → The work study of the job
Option (1) The paying capacity of the company — Incorrect. Paying capacity helps decide what remuneration is fair.
Option (2) The prevailing wage rate for the occupation — Incorrect. The prevailing wage rate also helps decide what pay is fair.
Option (3) The output that workers gave under the rule of thumb — Incorrect. Taylor wanted science in place of rule of thumb. Past output under rule of thumb is a guess, not a scientific standard.
Option (4) The work study of the job — Correct. Taylor said the standard time and other parameters should be fixed on the basis of work-study, that is time, motion, fatigue and method study. The 20-unit standard should come from such a study. Workers are then classed as efficient or inefficient against it.
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. For example, it is determined that standard output per worker per day is 10 units and those who made standard or more than standard will get Rs. 50 per unit and those below will get Rs. 40 per unit. …” |