Over the years, Taylors principles

Over the years, Taylors principles of scientific management have been severely misrepresented and unjustly criticized. The misrepresentation and criticism are unfortunate because research studies have consistently demonstrated that piece-rate incentive have a greater influence on performance than any other variable..Straight piecework is the oldest and most common incentive-wage plan, and it is used in over half of all incentive-wage plans Originally, straight piecework plans paid a fixed rate per piece regardless of how little a worker produced. Today, most straight piecework plans have a guaranteed base rate that is at least as high as the minimum-wage rate.Taylor advocated a differential piece-rate plan. This plan pays a lower rate to workers who produce less than the standard amount and a higher rate to workers who exceed the standard. This plan significantly rewards productive workers since they are not only paid for producing more pieces but their rate of pay is higher for each piece (normally 20 percent higher than the lower rate Taylor intended thus system to encourage slower workers to quit and find more suitable employment. A comparison of straight piece rates and Taylor's differential piece-rate plan is shown in Exhibit 21.Exhibit 21: A Comparison of Straight Piecework and