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What is incentive wage payment system ?
Posts: 3,310
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Joined: Sep 2010
In order to remove the defects of time wage system and piece wage system, management authorities of wage payments which blended the two systems in such a manner that the interests of both - the workers and the employees might be protected under these systems, time and speed form the basis of wage payment. Technically, these methods are called "incentive plans". These plans provide an incentive to workers to produce more and are paid bonus or premium for additional work. According to Hummel and Nickerson, "it refers to all the plans that provide extra pay for extra performance in addition to regular wages for a job." According to the National Commission on Labour—"Wage incentives are extra financial motivation. They are designed to stimulate human effort by rewarding the person, over and above the time rated remuneration, for improvements in the present or targeted results."
Posts: 3,310
Threads: 505
Joined: Sep 2010
In order to remove the defects of time wage system and piece wage system, management authorities of wage payments which blended the two systems in such a manner that the interests of both - the workers and the employees might be protected under these systems, time and speed form the basis of wage payment. Technically, these methods are called "incentive plans". These plans provide an incentive to workers to produce more and are paid bonus or premium for additional work. According to Hummel and Nickerson, "it refers to all the plans that provide extra pay for extra performance in addition to regular wages for a job." According to the National Commission on Labour—"Wage incentives are extra financial motivation. They are designed to stimulate human effort by rewarding the person, over and above the time rated remuneration, for improvements in the present or targeted results."
