There are two statements marked as Assertion (A) and Reason (R). Mark your answer as per the options given below.

Assertion: Differential piece wage system is a principle of general management.
Reasoning: Fayol was a strong advocate of piece wage system.

Both assertion and reasoning are not correct

The correct answer is option 4- Both assertion and reasoning are not correct.

Assertion: Differential piece wage system is a principle of general management. This is incorrect as it is a technique of scientific management.

Reasoning: Fayol was a strong advocate of piece wage system. This is incorrect as Taylor was strong advocate not Fayol.

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. 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. Now an efficient worker making 11 units will get 11 X 50= Rs. 550 per day whereas a worker who makes 9 units will get 9×40 = 360 per day. According to Taylor, the difference of Rs. 190 should be enough for the inefficient worker to be motivated to perform better.