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Explain the following Techniques of Scientific Management. 

(a) Method Study 

(b) Fatigue Study and 

(c) Differential Piece Wage System

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(a) Method Study : The Method Study Technique of Scientific Management is conducted to find out the One Best Method or Way of Performing the Job which keeps Production Cost Minimum and makes Maximum use of Resources of the Organization . Taylor suggested that Method of Production should not be decided by Rule of Thumb Method , but All the Methods must be tried in the Organization and the one which brings Maximum benefits with Minimum Cost must be Selected . E.g. For Production of Shoes , there can be Labour intensive method and machine intensive method. To find out which is best management must evaluate the cost of production with both the methods and compare both the methods with the available resources of the company. The method which involves minimum cost and exploits maximum resources must be selected as the best method of production.

(b) Fatigue Study : This Technique of Scientific Management is conducted to find out : 

 – The Frequency of Rest Intervals 

– The Duration of Rest Intervals 

– The Number of Rest Intervals 

It is a Human Tendency that a person feels Physically and Mentally Tired if She / He is made to work continuously without any rest. The rest period enables one to regain the stamina and to work again with same capacity . Fatigue study intends to find out the number and frequency of rest intervals that must be provided to a worker in completing a job efficiently. Workers cannot work at a stretch. After putting in work for a certain period of time they feel tired which affects their performance. If they are allowed rest intervals, they will regain their stamina and will resume their work greater energy. For example, if workers are involved in heavy manual labour such as brick layering or poor working conditions then small pauses must be given to them and after each interval they resume their work with greater enthusiasm.

(c) Differential Piece Wage System : The Scientific Technique of Differential Piece Rate System Emphasizes on paying different Rate of Wage for Efficient and Inefficient Employees . The Technique of Differential Wage Rate System insists on : 

– Paying different Rate of Wage to Efficient and Inefficient Employees. 

– Extra Wages Paid to Efficient Employees will Motivate them to remain efficient. 

– Extra Wages Paid to Efficient Employees will Motivate Inefficient Employees to come in the Category of Efficient Employees. 

– When Payment is given according to Number of Units Produced . Automatically the Production will be Maximized.

To conduct or adopt differential wage system Taylor suggested that the company must fix a standard rate of wage for workers producing standard output or their target. The workers who produce more than the standard-target must be paid with a higher rate of wage and those who are producing less than standard output must be paid with a rate less than standard rate.

For example, if the standard target if 10 Units Per Day and Standard Rate is Rs 50 Per Unit : The Worker who is producing 10 units must be Paid Rs 500 (Standard Rate x Standard Output). The Worker who is producing more than Standard Output must be Rewarded by Paying more than Standard Rate say Rs 60 Per Unit .

So He will Receive Rs 12 x 60 = Rs 720 (Higher Output x Higher Rate)

The Worker who is producing Less than Standard Output must be Taxed and Penalized by Paying Less than Standard Rate say Rs 40 Per Unit . So he will receive Rs 8 x 40 = Rs 320 (Lower Output x Lower Rate).This Difference in Wages will Motivate the workers to become efficient and earn more.

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