How Differential Rate System Is Less Motivational Than Bonus System

Topics: Management, Project management, Productivity Pages: 4 (1028 words) Published: April 30, 2011
* How differential rate system is less motivational than bonus system? Answer: F.W.Taylor is the father of scientific management. His scientific management is based on differential rate system. The basic is increase productivity through differential rate system in scientific management. Henry Gantt a contributor to scientific management was an associate of Taylor. Later, working alone, he developed other techniques for improving worker output. It is called “Bonus System”. On e called the “Gantt Chart”. This bonus system is still used today. By differential rate system, the salary is fixed by the workers working capability. The more you produce, the more your salary will increase. But if any worker not want to increase his salary. Then it comes to the technique of Henry Gantt , “The bonus system”. In bonus system , the workers will get a bonus payment for extra work. Suppose if “X” produce 10 products and “Y” produce 20 products . Then “Y” will get the bonus payment. The limitation of producing for every workers is 10 but “Y” has done something extra. That’s why “Y” will get bonus payment. Combining “X” and “Y” the total production is 20. But by bonus system the production increase into 30. This is better than the differential rate system. So that’s why differential rate system is less motivational than bonus system. * Describe the principles of management given by Henry Fayol. Answer: Henry Fayol has given 14 principles about management. The principles are: * Division of Labor or work.

* Authority.
* Discipline.
* Unity of Command.
* Unity of Direction.
* Subordination of individual interest to the common good. * Remuneration.
* Centralization.
* Hierarchy
* Order.
* Equity.
* Stability of staffs.
* Initiative.
* Esprit de corps.

The descriptions of the 14 principles are given below:

* Division of Labor or work: Division of work means dividing the total work into small convenient components and...
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