What is meant by Multiple Piece Rate Plan?
#1
Explain Merrick's Multiple Piece Rate Plan with its advantages and disadvantages.
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#2
It is an improvement over Taylor's Differential Plan. According to this plan, three piece rates for a job is fixed. None of these three piece rates are fixed below the normal level. These three rates are applied in the manner given below:
Rates Bonus Incentive
1. Upto 83 '/3% Normal Rate
2. Above 83 1/3 % to 100% 110% of Normal Rate
3. Above 110% 120% of Normal Rate
Merits
(1) This plan is liberal for the efficient workers. The workers producing more, get their wages at increasing rates.
(2) There is no sudden rise in the wages at one point.
(3) It has all merits of Taylor's Differential plan.
Demerits
(1) The system does not guarantee minimum wages for the workers.
(2) There is wide gap in slabs. All workers producing 1% to 83% of the standard output are considered as sub-standard workers and are paid at the same piece rate.
(3) The general criticisms levelled against Taylor's plan also applies to it.
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