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Explain the merits and demerits of Group Incentive Wage Plan
Posts: 3,285
Threads: 501
Joined: Sep 2010
Merits
(1) It creates a collective interest in the work.
(2) High output and economical production is achieved.
(3) Jealousy among workers is prevented.
(4) It ensures better cooperation and team-spirit and reduction in absenteeism.
(5) Routing and scheduling are simplified.
(6) It reduces cost of supervision, cost of calculation of bonus and wastages.
Demerits
(1) An individual worker may not put his maximum effort in view of equal sharing of bonus by inefficient workers.
(2) Individual efficiency is not taken into account.
(3) There is difficulty in calculation of bonus to all workers in the group.
