Q.State any three limitations of Taylor's Differential Piece Rate System, and briefly explain why Merrick's Method is considered a gentler alternative.

Taylor's steep two-rate jump is seen as harsh because a small shortfall costs a worker the LOW rate on their entire output — Merrick's softens this with a gentler, three-tier scale.

Limitations of Taylor's Differential Piece Rate System:

1. Harsh penalty for a small shortfall — a worker who misses the standard by even a single unit is paid the LOW rate (83% of Normal Piece Rate) on their ENTIRE output, not merely on the shortfall — widely seen by workers and unions as disproportionate and unfair.
2. No guaranteed minimum wage built into the scheme itself — a worker who falls well below standard, for whatever reason, is paid strictly at the low piece rate with no floor.
3. Takes no account of causes beyond the worker's control — a shortfall caused by a machine issue or a material delay is penalised exactly the same as a shortfall caused by the worker's own slow pace. …

Students sometimes state that Merrick's Method 'has no limitations' in contrast to Taylor's — this is incorrect; Merrick's is gentler, not flawless. It is more complex to administer (three rates instead of two), and its fairness still dep …