Halsey Premium Plan
This premium plan was originated by Mr. F. A. Halsey. Under this worker is paid at the time rate if the actual time taken is equal to or more standard time.
Thus the worker is not penalised for his inefficiency and he gels for the actual time worked. If the time taken is less than the standard time, l saved is shared by the worker and the employer. Besides the wages for the actual worked, he gets bonus usually at 50% of the time saved at time rate.
The main features of Halsey premium plan are:
(i) Standard time is fixed in advance for performing a job.
(ii) Time rate is guaranteed and the worker gets the guaranteed irrespective of whether he completes the job within the time also takes more time to do it.
(iii) If the job is completed in less than pre-determined standard time worker is paid a bonus of 50% of the time saved at time rate in ad to his wages for the actual time spent on the job as a reward to his work.
The advantages and disadvantages of this premium plan are mentioned below: Advantages
(i) The plan is simple to understand and easy to operate.
(ii) It creates a feeling of security among workers as the plan assures a minimum hourly rate or guaranteed wage.
(iii) The efficient workers are rewarded by way of payment of bonus, whereas the inefficient workers are not penalised.
(iv) Earnings of workers increase and productivity increases since the workers are motivated.
(v) The employers also gain since direct labour cost and overheads cost per unit decline.
Disadvantages
(i) The workers do not get the full benefit of their efforts since the employee gets a share of the wages of the time saved.
(ii) More wastage of raw materials may result due to over-speeding.
(iii) The quality of work may decline as the workers want to rush through the work.
Halsey-Weir Plan
The Halsey plan was modified by G.T. Weir. This plan is the same as Hales premium plan except in the manner of calculation of bonus. Under this scheme a work gets a bonus of 30% of time saved as against 50% in the case of Halsey plan.