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Describe Gantt Task and Bonus Plan. Mention its advantages and disadvantages.
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H.L. Gantt, an associate of Taylor, devised this scheme on the basis of Taylor's plan. Under this scheme, fixed time rates are guaranteed. Output standards and time
Standards are established for the performance of each job. Workers completing the standard job within the standard time or a shorter time receive wages for the standard time plus a bonus! The bonus is a percentage, varying from 20 to 50, of the wage for the standard time. When a worker fails to turn out the required quantity of products, he simply gets his time rate without any bonus.
Merits
(1) It is simple and easily understood.
(2) It guarantees day wages and also provides incentive to efficient workmen.
(3) The employer derives the benefit of decreasing it with higher output.
Demerits
(1) If the minimum wages are kept high due to union pressure, there will not be much incentive for better performance.
(2) Labour cost is high for low production and also upto standard output because of guaranteed day wages and bonus.
(3) The scheme is preferred by the totally inefficient workers as well as by the most efficient workers. Reasonably efficient workers cut a sorry figure.
