Question

Explain Taylor’s differential wage rate study.

Answer 1

Differential wage-rate study:

• A referential wage-rate system is a method of wage payment in which after tests a standard time for any task is being set. The worker gets a high wage- rate for completing the job within the allotted time and lower wage-rate for / completing the job beyond the allotted time.
• Frederick Taylor favored this motivational wage method.
• Each worker working in factory has different work efficiency. Considering this fact, efficient worker should get more wages whereas workers having less efficiency should get lower wages.