Write briefly about Bedaux Points Premium Plan

[rms]

Describe shortly Bedaux Points Premium Plan with its merits and demerits

[nbm]

Under this plan, Standard time is divided into Standard minutes. Each minute of standard time is called Bedaux point or B's. B's are indicated on each job ticket. Time wages are paid until 100% efficiency is reached. Bonus is paid on the basis of number of Beduax Points saved. Bonus at 75% of wages of Bedaux saved is paid to the worker and 25% is paid to the foreman.
Merits
(1) Minimum wages are guaranteed to the workers, even if they are not able to compete their job within the standard time.
(2) Since 25% of the wages for time saved goes to the foreman, he is motivated to get higher productivity from the workers.
(3) It is suitable where a worker is expected to perform a number of different jobs.
Demerits
(1) Calculations are complicated and workers are not able to understand it and it involves heavy clerical expenditure.
(2) Workers do not like that foreman should share their bonus.