What is meant by Taylor's differential Piece Rate System?

[rms]

Explain Taylor's differential Piece Rate System and its merits and demerits

[nbm]

As a part of scientific management, this plan was devised by Taylor with a view to provide greater incentives to efficient workers. Under this plan, a standard task is established by the techniques of time and motion study and two piece rates are set up for each job. A high piece rate is allowed to those who can make equal to higher than the standard performance; and for others who cannot reach the standard, a lower piece rate exists. Thus, this method penalises the slow and lazy worker and pays incentive to efficient workers.
Merits
It makes a distinction between efficient and inefficient workers. Lazy and inefficient workers are penalised, while efficient workers are rewarded.
The basis of this system is scientific. It is based on proper work study.
It helps in spotting and eliminating inefficient workers.
Demerits
(1) A worker missing the standard even by narrow margin is penalised heavily.
(2) It is more mechanical and less humane.
(3) Trade unions oppose this plan.
(4) It may lead to discontentment among workers.