Under Taylor's differential piece wage system, the standard output is 10 units per worker per day. Workers who make the standard or more get Rs. 50 per unit, and those below it get Rs. 40 per unit.
A worker making 11 units gets Rs. 550 a day, while a worker making 9 units gets Rs. 360. According to Taylor, what should this difference of Rs. 190 do?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Motivate the inefficient worker to perform better
Option (1) Help management decide the number of workers to be employed — Incorrect. Deciding the number of workers to be employed is an objective of time study. The Rs. 190 gap is a reward for efficiency; it is not used to work out how many workers are needed.
Option (2) Pay the efficient worker for the extra hours worked — Incorrect. Both workers are paid for one day’s work. The higher rate depends on the units made, not the hours worked; it rewards more output and pushes the slower worker to reach the standard.
Option (3) Motivate the inefficient worker to perform better — Correct. The worker below the standard loses Rs. 190 a day compared with the efficient one. Taylor held that this gap should be enough to motivate the inefficient worker to perform better and reach the standard.
Option (4) Help the worker regain stamina through rest intervals — Incorrect. Rest intervals and stamina belong to fatigue study. They have no link with the rate of wages.
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. Now an efficient worker making 11 units will get 11 × 50 = Rs. 550 per day whereas a worker who makes 9 units will get 9 × 40 = Rs. 360 per day. According to Taylor, the difference of Rs. 190 should be enough for the inefficient worker to be motivated to perform better. …” |