Q.Explain Taylor's differential piece-wage system with a suitable example.

Taylor's wage system deliberately pays two different rates for the same job, purely to create a strong financial incentive to reach or beat the standard output. …

Under Taylor's differential piece-wage system, two distinctly different piece rates are set for the same job: a higher rate applies to workers whose output reaches or exceeds the standard set by time study, and a lower rate applies to workers whose output falls short of that standard. The gap between the two rates is deliberately kept wide, so the system acts as a strong financial incentive to reach or beat the standard rather than a mild encouragement.

Example: suppose the standard output for a job is fixed at 20 units a day. The higher rate is set at ₹10 per unit and the lower rate at ₹6 per unit.

• A worker who produces 22 units in a day (at or above standard) is paid 22 × ₹10 = ₹220.
• A worker who produces only 16 units (below standard) is paid 16 × ₹6 = ₹96, not 16 × ₹10. …

Compute total pay at the higher rate for output at/above the standard, and at the lower rate for output below the standard, and c …

Assuming the lower-rate worker is paid the higher rate for the units up to the standard and only the lower rate beyond it (a slab system) — Taylor's system applies a single flat rat …