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According to Rowan plan of wage incentive system, bonus is paid to a worker
Answer & Solution
Correct Answer:
Option
B
The Rowan plan of wage incentive system calculates the bonus based on the time saved by the worker.
According to this plan:
Option A: Whose output exceeds 67% efficiency. This is incorrect because the Rowan plan does not specifically tie bonuses to a set efficiency percentage.
Option B: On the percentage of time saved. This is correct as the Rowan plan pays a bonus based on the proportion of time saved compared to the standard time.
Option C: On the percentage of time worked. This is incorrect because the bonus is not based on the time worked but on the time saved.
Option D: On the percentage of standard time. This is incorrect because it is the time saved, not the standard time, that determines the bonus.
Therefore, the correct answer is Option B: On the percentage of time saved.
According to this plan:
Option A: Whose output exceeds 67% efficiency. This is incorrect because the Rowan plan does not specifically tie bonuses to a set efficiency percentage.
Option B: On the percentage of time saved. This is correct as the Rowan plan pays a bonus based on the proportion of time saved compared to the standard time.
Option C: On the percentage of time worked. This is incorrect because the bonus is not based on the time worked but on the time saved.
Option D: On the percentage of standard time. This is incorrect because it is the time saved, not the standard time, that determines the bonus.
Therefore, the correct answer is Option B: On the percentage of time saved.
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LoginA/C to rowan plan bonus is paid if the worker completed the work less than standard time.
Other hand if the worker takes more than standard time for completion of job the he will paid guaranteed wage only