Illustrations · Q15
Q.Distinguish between Taylor's Differential Piece Rate System and Merrick's Differential Piece Rate Method.
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Start your 14-day free trial to unlock the full solution →| Basis of Distinction | Taylor's Differential Piece Rate | Merrick's Differential Piece Rate |
|---|---|---|
| Number of rates | Two | Three |
| Rate bands (commonly-adopted convention) | 83% of NPR (below standard) / 175% of NPR (at or above standard) | 100% of NPR (below 83% efficiency) / 110% of NPR (83%–100%) / 120% of NPR (100% and above) |
| Behaviour at the cut-off | One large, sharp jump the moment standard is reached | Two smaller, more gradual steps |
| Lowest possible rate | Below Normal Piece Rate (83% of it) — a genuine penalty | Never below the full Normal Piece Rate (100% is the floor) |
| Reception by workers/unions | Regarded as harsh, due to the steep below-standard penalty | Regarded as fairer and more acceptable, since no below-normal penalty exists |
| Administrative complexity | Simpler (two rates) | Slightly more complex (three rates, three efficiency bands) |
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