Q.Explain the Rowan Premium Bonus Scheme, stating its formula for computing Bonus and Total Earnings, and briefly state how it differs in principle from the Halsey Scheme.

Rowan also guarantees the Time Rate wage for time taken, but instead of a fixed 50% share of time saved, it bases the bonus on the ratio of time saved to time allowed, which makes the bonus rise and then fall as more time is saved.

Unlike Halsey's fixed 50% share, Rowan's bonus fraction itself depends on how large the time saved is relative to the time allowed — this makes Rowan self-limiting: the bonus peaks at 50% time saved and then declines for any further saving.

The Rowan Premium Bonus Scheme, devised by David Rowan, shares Halsey's basic guarantee (Time Taken × Time Rate as basic wages) but computes the bonus differently:

• Time Saved = Time Allowed − Time Taken (Nil if Time Taken ≥ Time Allowed).
• Bonus = (Time Saved ÷ Time Allowed) × Time Taken × Time Rate.
• Total Earnings = (Time Taken × Time Rate) + Bonus.

How Rowan differs in principle from Halsey: Halsey pays a FIXED percentage (conventionally 50%) of the time saved, so its bonus rises in a straight line however much time is saved. Rowan instead multiplies Time Taken by the FRACTION of time saved relative to time allowed — a fraction that itself changes from job to job. This makes the Rowan bonus self-limiting: it increases as time saved increases, up to the point where Time Taken equals half of Time Allowed, and then DECREASES for any further time saved, even though the worker is finishing the job even faster. Halsey has no such built-in ceiling.

A frequent error is using Time Allowed, instead of Time Taken, as the multiplier in the Rowan bonus formula — the correct formula multiplies the TIME-SAVED RATIO (Time Saved ÷ Time Allowed) by TIME TAKEN, not by Time Allowed.