The Standard Hour planThe standard

The Standard Hour planThe standard hour plan is another form of incentive piece rates. This plan, which sometimes called a 100 percent premium plan, usually requires the establishment of performance standards through time-and-motion studies, On a standard hour plan, workers are paid an hourly wage, but the hour is measured in units produced rather than in minutes. If workers perform the standard amount each hour, they receive the hourly wage, but if they produce above standard, they receive proportionately more money. Standard performance is usually set at 60 units of work per hour, with a unit of work equaling what a worker should produce in one minute. Therefore, if a worker consistently produces n units of work per hour, the worker receives one-and-one-half hours pay for each hour worked.