Merits of Taylor’s Differential Piece Rate Plan

Merits of Taylor’s Differential Piece Rate Plan

1. It is simple to understand by an average worker the wage rate is applicable to him.
2. Taylor’s plan makes distinction between efficient and inefficient workers. Moreover it gives special reward to efficient workers and punishment to those who are lazy.
3. It encourages workers to be efficient because there is no guarantee of minimum wage payment to workers. In addition, due to different rates, workers try to be efficient in order to get wage payment at a higher rate.
4. It helps in removing inefficient workers from the industrial unit.
5. It retains efficient employees and encourages other efficient workers to join the organization.
6. It gives more production to the employer.
7. Taylor’s differential piece rate plan is popular among efficient and sincere workers as they draw more wage under this incentive-plan.