Q.OR — What is differential piece rate system? How is differential piece rate system a source of incentive to workers.
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🔒 Start your 14-day free trial to unlock the full solution →Concept understanding — Scientific Management Principles
Imagine you are watching a factory floor a hundred years ago. Workers move at their own pace, using tools they have made themselves, and the manager simply tells them what to do and hopes for the best. Nothing is standardised. Some workers are fast, some are slow, and nobody really knows the one best way to do a job. This chaos is exactly what Frederick Winslow Taylor saw, and it led him to create Scientific Management.
At its core, Scientific Management is the idea that management should be treated as a science, not a rule-of-thumb guess. Taylor argued that there is a single, most efficient method for every task, and it is management's job to discover that method, teach it to workers, and then supervise them to ensure it is followed. The goal is to maximise productivity for both the employer (higher profits) and the employee (higher wages).
The NCERT textbook presents this as a shift from "intuition" to "investigation." Instead of a manager relying on his gut feeling, he should use observation, measurement, and experiment to find the best way. For example, Taylor famously studied the shovelling of coal. He experimented with different shovel sizes and handle lengths until he found the exact shovel that let a worker move the most coal in a day without tiring. That is the "science" of shovelling.
Scientific Management is not about making workers work harder. It is about making them work smarter by removing wasted motion and standardising the best method. The worker's effort stays the same, but the output increases because the method is efficient.
Taylor gave us five key principles that form the backbone of this approach. Think of them as the rules for turning a craft into a science.
- Science, Not Rule of Thumb: This is the foundation. Every job should be studied scientifically to find the "one best way." Replace guesswork with systematic analysis.
- Harmony, Not Discord: Management and workers should not be enemies. Taylor believed that if both sides focused on increasing the surplus (profit), they could share the gains peacefully. Conflict arises from a fixed pie; science makes the pie bigger.
- Cooperation, Not Individualism: Workers must cooperate with management to follow the scientific methods. In return, management must cooperate by providing the right tools, training, and incentives. It is a team effort.
- Development of Each Worker to Their Greatest Efficiency and Prosperity: Workers should be scientifically selected and then trained to do the job they are best suited for. No more "anyone can do anything." The right person for the right job, trained in the right method.
- Mental Revolution: This is the most important principle. It means a complete change in the attitude of both workers and management. Instead of fighting over how to divide profits, they should work together to increase profits. It is a shift from suspicion to trust.
The Mental Revolution is the heart of Scientific Management. Without it, all the other techniques fail. Taylor insisted that both sides must stop looking at each other as adversaries and start seeing each other as partners in a shared enterprise. …
The differential piece rate system is a wage-incentive scheme designed by F.W. Taylor to sharply reward efficient workers and discourage inefficiency. …
Under the differential piece rate system, efficient workers (producing at/above standard) are paid at a distinctly higher rate per piece on their entire output, while inefficient workers (below standard) get a lower rate — turning efficiency into a direct and sizeable wage reward.
What is the differential piece rate system? Taylor introduced this system as part of scientific management to encourage workers to maximise their output. Under this system, a standard output (based on time and motion study) is fixed for a task, and:
- Workers who produce output equal to or above the standard are paid at a higher piece rate for their entire day's output.
- Workers who produce output below the standard are paid at a lower piece rate for their entire day's output.
Because the rate applies to the whole output (not just the extra units), the difference in total wages between an efficient and an inefficient worker becomes very significant, even for a relatively small difference in output.
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Showing the 12 most recent of 31 on this concept.
- CBSE 2026Set 66/1/11 markMCQQ.The workers in Alpha manufacturing company were using traditional methods for production of metal parts. Since no standard procedure existed, workers relied on personal experience and guess work. As a result, productivity in the assembly line began to decline. To improve productivity, the company hired a consultant specializing in scientific management. The consultant explained that there was only one best method to maximize efficiency and this method could be developed through proper study and analysis. He emphasized that the scientific method should replace the old method, that the workers were using. So, to develop the scientific method, the consultant carefully investigated the traditional methods through work-study and by unifying the best practices, he developed a standard method that would be followed by everyone in the organization. After applying scientific method, there was a three fold increase in productivity within six months. The principle of scientific management which helped the company in increasing the productivity was : (A) Science, not Rule of Thumb (B) Harmony, Not Discord (C) Cooperation, Not Individualism (D) Development of Each and Every Person to His or Her Greatest Efficiency and Prosperity
›Reveal solutionSolution
The consultant replaced guesswork and personal experience with a scientifically developed standard method through systematic study — the essence of Science, Not Rule of Thumb.
The scenario describes a classic problem that Frederick Winslow Taylor identified in early 20th-century factories: workers doing the same job in different ways, each relying on their own intuition, habit, or what they had picked up over the years. There was no agreed-upon best way, no benchmark, no standard. This is what Taylor called the "rule of thumb" approach — decisions made by rough estimation, tradition, or individual judgment rather than systematic investigation.
When the consultant arrived at Alpha Manufacturing, he did exactly what Taylor advocated. He didn't simply tell workers to work harder or faster. Instead, he conducted a work-study — a careful, methodical examination of how the work was actually being done. He observed the traditional methods, broke down each task into its elements, timed them, analyzed them, and identified the most efficient practices scattered across different workers. Then he synthesized these into a single, standardized method that eliminated wasted motion, unnecessary steps, and inefficiency.
This is the heart of the principle Science, Not Rule of Thumb. Taylor believed that for every job, there exists one best way to do it — not a matter of opinion, but discoverable through scientific investigation. Once found, this method should replace all the varied, inefficient practices that had evolved haphazardly. The threefold productivity increase within six months is a direct result of this shift: from many inconsistent methods based on guesswork to one optimized method based on evidence. …
- CBSE 2026Set ANNUAL1 markQ.Who presented the concept of 'Mental revolution'?
›Reveal solutionSolution
'Mental Revolution' was given by F.W. Taylor as part of his principles of scientific management.
Mental revolution is one of F.W. Taylor's principles of scientific management. It means a complete change in the mental attitude and outlook of both workers and management toward one another. Instead of fighting over how the surplus/profit is to be divided, both sides should shift their attention to increasing the total production (the size of the surplus) …
- CBSE 2026Set ANNUAL1 markMCQQ.The experiments done by Taylor under scientific management were:(a) Motion study(b) Fatigue study and time study(c) Motion study, fatigue study and time study(d) None of these(a) Motion study(b) Fatigue study and time study(c) Motion study, fatigue study and time study(d) None of these
›Reveal solutionSolution
Taylor's scientific-management experiments covered all three — motion study, fatigue study and time study — so the correct option is the one combining all three.
Taylor's scientific management rested on careful, systematic experimentation rather than rule-of-thumb. He conducted:
- Motion study — observing and recording every movement a worker makes while doing a task, to eliminate wasteful or unnecessary motions and standardise the best sequence of movements.
- Time study — determining the standard time required to complete a task by a qualified worker, using a stop-watch, so a fair day's work could be fixed.
- Fatigue study — determining the frequency and duration of rest intervals needed so that workers do not get exhausted, keeping output steady over a full working day. …
- CBSE 2026Set ANNUAL1 markMCQQ.Which technique of Scientific Management lays down that workers should have multiple accountability? (A) Differential piece rate system (B) Functional foremanship (C) Mental revolution (D) Standardization
›Reveal solutionSolution
Functional Foremanship is the technique that gives workers multiple supervisors (multiple accountability) — four planning-side and four production-side foremen.
Taylor's Functional Foremanship
F.W. Taylor proposed that the work of a supervisor be divided among specialists, each an expert in one narrow function, instead of one foreman handling everything. Under this system a worker on the shop floor receives orders from eight different foremen:
Planning in-charge (office):
- Route clerk — decides the sequence/route of work
- Instruction card clerk — prepares work instructions
- Time and cost clerk — fixes time and cost standards
- Disciplinarian — maintains discipline
Production in-charge (shop floor):
5. Gang boss — assembles tools/machines
6. Speed boss — ensures correct speed/timely completion
7. Repair boss — maintains machines in working order
8. Inspector — checks quality of work
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- CBSE 2025Set ANNUAL1 markMCQQ.Management should find 'one best way' to perform a task. Which principle of scientific management is defined in this sentence? (A) Universal (B) Flexible (C) Absolute (D) Behavioural
›Reveal solutionSolution
The idea that there is 'one best way' to perform a task reflects the absolute (fixed, rigid) character of scientific management — a scientifically determined standard method that is not left to individual discretion, unlike the flexible principles of general management.
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- CBSE 2025Set ANNUAL1 markMCQQ.The essence of mental revolution is - A) Decentralisation B) Scientific management C) Combination D) General management
›Reveal solutionSolution
Mental revolution is the essence of Taylor's scientific management.
Taylor said scientific management requires a mental revolution — a complete change of attitude on the part of both workers and management, so that instead of fighting over the division of the surplus, both cooperate to increase it. This change of outlook is the very essence of **scien …
- CBSE 2025Set ANNUAL1 markMCQQ.Which of the following is not a principle of management as given by F. W. Taylor?(a) Harmony, not discord(b) Science, not rule of thumb(c) Functional foremanship(d) Cooperation not individualism
›Reveal solutionSolution
Functional foremanship is a technique of scientific management, not one of Taylor's four core principles.
F. W. Taylor gave four principles of scientific management: (1) Science, not rule of thumb — replace guesswork with scientifically studied methods; (2) Harmony, not discord — management and workers should share a common interest, not be in conflict; (3) Cooperation, not individualism — replace competition between workers with mutual cooperation; (4) Development of each and every person to his or her greatest efficiency and prosperity.
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- CBSE 2025Set ANNUAL1 markMCQQ.Under functional foremanship technique, a speed boss is responsible for .......................(a) Checking the quality of work(b) Specifying the route of production(c) Getting the task completed accurately and on time(d) Ensuring that machine and tools are in proper working condition
›Reveal solutionSolution
The speed boss, one of Taylor's eight functional foremen, ensures work is completed accurately and on time.
F.W. Taylor's functional foremanship replaces a single all-purpose foreman with eight specialists, split between the planning in-charge and the production in-charge, each handling one function:
Under the Planning in-charge:
- Route clerk — decides the path/route of production.
- Instruction card clerk — prepares instructions for workers.
- Time and cost clerk — prepares time and cost sheets.
- Disciplinarian — looks after discipline in the workplace.
Under the Production in-charge:
- Speed boss — concerned with the speed of work, ensuring timely and accurate completion of the task set for workers.
- Gang boss — keeps machines and tools ready for operation. …
- CBSE 2025Set ANNUAL1 markMCQQ.Vinay and Pooja started a dry cleaning shop but customers were unhappy with their services. They decided to find out the best way to perform the job. Identify the technique of scientific management in the above case.(a) Fatigue study(b) Method study(c) Time study(d) Motion study
›Reveal solutionSolution
Finding "the best way to perform the job" is the definition of Method study.
Taylor's scientific management includes several techniques, each solving a different problem:
- Method study — finds the one best way of doing a job, by analysing all the existing ways of performing it and selecting the method that uses the least resources (time, cost, material) while giving the best quality output.
- Time study — determines the standard time required to perform a job.
- Motion study — studies and eliminates unnecessary/wasteful body movements of workers while working. …
- CBSE 2024Set MARCH1 markMCQQ.How many principles of management are given by Henri Fayol in his famous book published in 1917 ?(a) 7(b) 14(c) 11(d) 4
›Reveal solutionSolution
The correct option is (b) 14. Henri Fayol, the Father of General/Administrative Management, propounded fourteen principles of management in his famous work 'General and Industrial Management'.
In the Kerala Plus Two (DHSE) Commerce course, Fayol's fourteen principles of management are a core topic. They are: Division of Work, Authority and Responsibility, Discipline, Unity of Command, Unity of Direction, Subordination of Individual Interest to General Interest, Remuneration of Employees …
- CBSE 2024Set ANNUAL1 markMCQQ.Which of the following is not a principle of management given by Taylor? (A) Science, not rule of thumb (B) Functional foremanship (C) Cooperation, not individualism (D) Harmony, not discord
›Reveal solutionSolution
Functional foremanship is a technique of scientific management, not one of Taylor's four principles.
Taylor gave four principles of scientific management: (1) Science, not rule of thumb; (2) Harmony, not discord; (3) Cooperation, not individualism; and (4) Development of each worker to his greatest efficiency. Functional foremanship, by contrast, is a technique in which planning and execution are separated and eight specialised foremen supervis …
- CBSE 2024Set ANNUAL1 markMCQQ.The change in behaviour of employees and management toward each other is called - A) Mental revolution B) Good industrial relations C) Democratic management D) Stress on practical aspect
›Reveal solutionSolution
The answer is A) Mental revolution, one of F. W. Taylor's principles of scientific management.
F. W. Taylor's principle of 'Harmony, not discord' calls for a complete change — a mental revolution — in the attitude of both workers and management toward each other. Instead of treating each other as adversaries fighting over the division of surplus, both sides should realise that they can gain more by cooperating and increasing total output. Management should share the gains, and workers s …
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