piece-rate system economic of labour & socio-labour relations demos of the discipline ©...

Piece-Rate SystemPiece-Rate System

ECONOMIC OF LABOUR ECONOMIC OF LABOUR

& SOCIO-LABOUR & SOCIO-LABOUR

RELATIONSRELATIONS

ECONOMIC OF LABOUR ECONOMIC OF LABOUR

& SOCIO-LABOUR & SOCIO-LABOUR

RELATIONSRELATIONS

Demos of the disciplineDemos of the discipline

© Filippova I.H.© Filippova I.H.

Time Rate SystemTime Rate System

RemunerationRemuneration

Vladimir Dahl East-Ukrainian National University

ECONOMIC OF LABOUR & SOCIO-LABOUR RELATIONS

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Working timeWorking time

Working time is the period of time that an individual

spends at paid occupational labor.

Working time may vary from person to person often depending on location,

culture, lifestyle choice, and the profitability of the individuals livelihood.

Unpaid labors such as personal housework or caring for

children are not considered part of the working week.

Many countries regulate the work week by law, such as

stipulating minimum daily rest periods, annual holidays and a

maximum number of working hours per week.

Standard working hours (or normal working hours) refers to the

legislation to limit the working hours per day, per week, per month or

per year.

If an employee needs to work overtime, the employer will need to pay

overtime payments to employees as required in the law.

Standard working hours of countries worldwide are around 40 to 44

hours per week, and the additional overtime payments are around 25%

to 50% to the normal hourly payments.

Maximum working hours refers to the maximum working hours of an

employee. The employee cannot work more than the level specified in

the maximum working hours law.


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Gradual decrease in working hoursGradual decrease in working hours

Most countries in the developed world have

seen average hours worked decrease greatly.

For example in the U.S in the late 19th century it

was estimated that the average work week was

over 60 hours per week. Today the average

hours worked in the U.S is around 33, with the

average man employed full-time for 8.4 hours

per work day, and the average woman

employed full-time for 7.7 hours per work day.

The front runners for lowest average weekly

work hours are the Netherlands with 27 hours,

and France with 30 hours. At current rates the

Netherlands is set to become the first country to

reach an average work week under 21 hours.

The New Economics Foundation has recommended moving to

a 21 hour standard work week to address problems with

unemployment, high carbon emissions, low well-being,

entrenched inequalities, overworking, family care, and the

general lack of free time. Actual work week lengths have been

falling in the developed world.

Gradual decrease in Gradual decrease in

working hoursworking hours


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Day-workDay-work

DAY-WORKDAY-WORKDAY-WORKDAY-WORK

They know they will be They know they will be paid (generally very paid (generally very poorly) whether they poorly) whether they

work or not.work or not.

They know they will be They know they will be paid (generally very paid (generally very poorly) whether they poorly) whether they

work or not.work or not.

Day-work means simply that a Day-work means simply that a

worker is paid a fixed rate for being worker is paid a fixed rate for being

present on a site for a full working day, present on a site for a full working day,

which is usually eight hours of work. The which is usually eight hours of work. The

amount of work produced depends amount of work produced depends

entirely on the supervisor’s ability to entirely on the supervisor’s ability to

encourage the worker, and the worker’s encourage the worker, and the worker’s

own motivation and sense of own motivation and sense of

responsibility. In many circumstances responsibility. In many circumstances

this can lead to very low productivity, this can lead to very low productivity,

especially with permanent staff who especially with permanent staff who

have no particular incentive to work have no particular incentive to work

hard.hard.


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Piece-workPiece-work

PIECE-WORKPIECE-WORKPIECE-WORKPIECE-WORK

Piece-workPiece-work is any type of employment in which a is any type of employment in which a

worker is paid a fixed piece rate for each unit produced or worker is paid a fixed piece rate for each unit produced or

action performed regardless of time. Piece work is a form action performed regardless of time. Piece work is a form

of performance-related pay.of performance-related pay.

Piece-work is a method of setting work, usually Piece-work is a method of setting work, usually

preferred by the private sector. The worker is allocated an preferred by the private sector. The worker is allocated an

amount of work for an agreed rate of pay.amount of work for an agreed rate of pay.

The work they do is measured and the more they do The work they do is measured and the more they do

the more they are paid.the more they are paid.

This approach can give very high productivities, but This approach can give very high productivities, but

it can also result in exploitation, especially when the rate it can also result in exploitation, especially when the rate

for the work is too low.for the work is too low.

Casual workers are seldom Casual workers are seldom in a good position to in a good position to

negotiate favourable rates.negotiate favourable rates.

Casual workers are seldom Casual workers are seldom in a good position to in a good position to

negotiate favourable rates.negotiate favourable rates.

The most dangerous situation is when workers have to put in The most dangerous situation is when workers have to put in

very long hours to achieve even a subsistence rate of pay.very long hours to achieve even a subsistence rate of pay.

The most dangerous situation is when workers have to put in The most dangerous situation is when workers have to put in

very long hours to achieve even a subsistence rate of pay.very long hours to achieve even a subsistence rate of pay.


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Task-workTask-work

TASK-WORKTASK-WORKTASK-WORKTASK-WORK

Task-work evolved on projects where the workers were Task-work evolved on projects where the workers were

subject to government regulations, which meant they could subject to government regulations, which meant they could

not be paid more than the prevailing government wage for a not be paid more than the prevailing government wage for a

day’s work.day’s work.

Some other incentive had to be provided. Setting a Some other incentive had to be provided. Setting a

realistic task, or amount of work to be completed for the day, realistic task, or amount of work to be completed for the day,

meant that workers could work as hard as they wanted and meant that workers could work as hard as they wanted and

then go home to do other things.then go home to do other things.

Tasks are generally set to be achievable in 70 per cent of Tasks are generally set to be achievable in 70 per cent of

the working day (a working day being assumed as a period of the working day (a working day being assumed as a period of

eight hours), but are often completed in 50 per cent of the eight hours), but are often completed in 50 per cent of the

working day (i.e. in four hours).working day (i.e. in four hours).

This approach has proved very successful in practice, This approach has proved very successful in practice,

often doubling the amount of work achieved in a day; and by often doubling the amount of work achieved in a day; and by

inference doubling the productivity of the individual worker, as inference doubling the productivity of the individual worker, as

well as halving the costs.well as halving the costs.

Work on the plantation consisted Work on the plantation consisted

primarily of task-work, that supposes a flat primarily of task-work, that supposes a flat

fee for a specific amount of work, whereas fee for a specific amount of work, whereas

time work was paid by the hour.time work was paid by the hour.

Work on the plantation consisted Work on the plantation consisted

primarily of task-work, that supposes a flat primarily of task-work, that supposes a flat

fee for a specific amount of work, whereas fee for a specific amount of work, whereas

time work was paid by the hour.time work was paid by the hour.

The use of task-work has previously been implemented in The use of task-work has previously been implemented in

the program for excavating activities. Task-work is the program for excavating activities. Task-work is

widespread, but not always used correctly. Standard task widespread, but not always used correctly. Standard task

tables are used by the brigade leaders skilled to set out task-tables are used by the brigade leaders skilled to set out task-

work.work.

The use of task-work has previously been implemented in The use of task-work has previously been implemented in

the program for excavating activities. Task-work is the program for excavating activities. Task-work is

widespread, but not always used correctly. Standard task widespread, but not always used correctly. Standard task

tables are used by the brigade leaders skilled to set out task-tables are used by the brigade leaders skilled to set out task-

work.work.

Tutwork is the work done by the piece, as Tutwork is the work done by the piece, as in nonmetalliferous rock, the amount done in nonmetalliferous rock, the amount done being usually reckoned by the fathom.being usually reckoned by the fathom.

Tutwork is the work done by the piece, as Tutwork is the work done by the piece, as in nonmetalliferous rock, the amount done in nonmetalliferous rock, the amount done being usually reckoned by the fathom.being usually reckoned by the fathom.


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Remuneration on Result basisRemuneration on Result basis

Remuneration Remuneration on Result on Result

basisbasis

Remuneration Remuneration on Result on Result

basisbasis


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Remuneration on Result basisRemuneration on Result basisRemuneration on Result basisRemuneration on Result basisAny system of payment of wage by which wages gets directly related with the outputAny system of payment of wage by which wages gets directly related with the output

Advantages:Advantages: Disadvantages:Disadvantages:

(1) Only in respect of output, payment is made. (1) Only in respect of output, payment is made.

(2) More & more is produced & hence more earned by the efficient (2) More & more is produced & hence more earned by the efficient

workers. workers.

(3) More products are produced by the workers in their own interest so (3) More products are produced by the workers in their own interest so

that they can earn more, as a result more production & less supervision that they can earn more, as a result more production & less supervision

cost is there under this method.cost is there under this method.

(4) Idle time is not required to be paid. (4) Idle time is not required to be paid.

(5) Fixed overhead per unit is reduced by greater output. (5) Fixed overhead per unit is reduced by greater output.

(6) The method, on the basis of careful time study, helps setting up of (6) The method, on the basis of careful time study, helps setting up of

standards.standards.

(7) At the instance of more efficient workers, less efficient workers try to (7) At the instance of more efficient workers, less efficient workers try to

improve themselves.improve themselves.

(8) For enhancing earning, scopes are provided to the workers.(8) For enhancing earning, scopes are provided to the workers.

(1) The method will not be applicable in cases where measurement of (1) The method will not be applicable in cases where measurement of

output in terms of homogenous units cannot be done. output in terms of homogenous units cannot be done.

(2) There is a chance of quality of work to get deteriorated.(2) There is a chance of quality of work to get deteriorated.

(3) The chances of more scraps, defectives are there. (3) The chances of more scraps, defectives are there.

(4)More chances of machinery breakdown may be created by the speedy (4)More chances of machinery breakdown may be created by the speedy

production. production.

(5) As the workers overworked during early life, this may bring about (5) As the workers overworked during early life, this may bring about

fatigue early.fatigue early.

(6) Under this method, if there is no work, the workers will not get (6) Under this method, if there is no work, the workers will not get

anything unless a guaranteed day rate is there.anything unless a guaranteed day rate is there.

(7) If continuous work cannot be provided, chances of unrest are there. (7) If continuous work cannot be provided, chances of unrest are there.

(8) Much initial cost is involved as piece rate is fixed on scientific basis.(8) Much initial cost is involved as piece rate is fixed on scientific basis.


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Piece Wage SystemPiece Wage System

Straight Piece-Rate systemStraight Piece-Rate systemStraight Piece-Rate systemStraight Piece-Rate system

Straight piece rate may be applicable to the work of an individual or to Straight piece rate may be applicable to the work of an individual or to

the work of a group of individuals. The system is called individual piece the work of a group of individuals. The system is called individual piece

work, when prescribed for a work done by an individual and by work, when prescribed for a work done by an individual and by

multiplying the number of units produced by a worker or number of multiplying the number of units produced by a worker or number of

similar operations done by him by his piece rate, his earnings is similar operations done by him by his piece rate, his earnings is

obtained.obtained.

Alternatively, the system is called group piece work, when prescribed for Alternatively, the system is called group piece work, when prescribed for

a work done by group of individuals and by multiplying the number of a work done by group of individuals and by multiplying the number of

units produced by the group or the number of similar operations done by units produced by the group or the number of similar operations done by

the group by the group piece rate, the earnings of the group as a whole the group by the group piece rate, the earnings of the group as a whole

is obtained.is obtained.

In respect of every worker working on the basis of individual piece rate In respect of every worker working on the basis of individual piece rate

or in respect of every group working on the basis of group piece rate, or in respect of every group working on the basis of group piece rate,

piece work card is used, for the purpose of obtaining necessary piece work card is used, for the purpose of obtaining necessary

information.information.

Workers usually rectify the defective units without extra remuneration, Workers usually rectify the defective units without extra remuneration,

which gets accepted after rectification.which gets accepted after rectification.

The formula for wage computation under this system is:The formula for wage computation under this system is:

Wages = Number of units produced x Rate of wage per unit

Under this system, after careful time and motion Under this system, after careful time and motion

study, and after considering the comparable time rate study, and after considering the comparable time rate

for the same class of workers, the straight rate per for the same class of workers, the straight rate per

piece of output is fixed. Instead of one unit; for a piece of output is fixed. Instead of one unit; for a

definite number of units, the rate may be fixed. definite number of units, the rate may be fixed.

Irrespective of the time taken by the worker, wages Irrespective of the time taken by the worker, wages

equal to his output multiplied by the piece rate is equal to his output multiplied by the piece rate is

received by the worker.received by the worker.

The piece rate is fixed as below:The piece rate is fixed as below:

Let $.1.20 be the comparable hourly rate of pay.Let $.1.20 be the comparable hourly rate of pay.

According to the time and motion study, the According to the time and motion study, the

standard rate for the production of a piece of work is standard rate for the production of a piece of work is

35 minutes.35 minutes.

The piece rate will be:The piece rate will be:

($.1.20 /60 minutes)*35 minutes = $.0.70($.1.20 /60 minutes)*35 minutes = $.0.70


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Straight Piece-Rate systemStraight Piece-Rate system

(a) The responsibility of fixing piece rates should be given to the (a) The responsibility of fixing piece rates should be given to the

person having technical knowledge & experience. person having technical knowledge & experience.

(b) Consultation should be made of the past records of similar work. (b) Consultation should be made of the past records of similar work.

(c) The time required by an average skilled worker for the production (c) The time required by an average skilled worker for the production

of a unit should be taken into consideration. of a unit should be taken into consideration.

(d) Before the fixation & introduction of piece rate, the method of (d) Before the fixation & introduction of piece rate, the method of

production & efficiency gain should be known to the worker. production & efficiency gain should be known to the worker.

(e) The rate should not be too high or too low, as both is dangerous.(e) The rate should not be too high or too low, as both is dangerous.

(f) For eliminating avoidable motions & for the purpose of ascertaining (f) For eliminating avoidable motions & for the purpose of ascertaining

the time required for producing a unit or making operation by an the time required for producing a unit or making operation by an

average workman, time & motion study should be undertaken.average workman, time & motion study should be undertaken.

(a) For eliminating defectives & protecting the standard of work, work (a) For eliminating defectives & protecting the standard of work, work

should be inspected.should be inspected.

(b) For the minimization of the wastage, defectives, spoilage, (b) For the minimization of the wastage, defectives, spoilage,

breakdown etc., the work should be supervised. breakdown etc., the work should be supervised.

(c) For avoiding bottle-neck in work-flow, there should be discipline in (c) For avoiding bottle-neck in work-flow, there should be discipline in

work & attendance. work & attendance.

(d) For providing incentive to the workers for the purpose of (d) For providing incentive to the workers for the purpose of

increasing the output, piece rate should be made attractive , yet not increasing the output, piece rate should be made attractive , yet not

too high.too high.

(e) As a rule, the workers should rectify the defectives without extra (e) As a rule, the workers should rectify the defectives without extra

remuneration.remuneration.

(f) In case of group piece rate, some members could be exploited by (f) In case of group piece rate, some members could be exploited by

the other members of the group, which should be avoided (e.g. One the other members of the group, which should be avoided (e.g. One

or more member, in spite of remaining tactfully idle, may share the or more member, in spite of remaining tactfully idle, may share the

earnings of the group).earnings of the group).

Precautions:Precautions:Matters to be considered:Matters to be considered:

Straight Piece-Rate systemStraight Piece-Rate systemStraight Piece-Rate systemStraight Piece-Rate system


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TaylorismTaylorism

Taylor’s Differential Piece Rate systemTaylor’s Differential Piece Rate systemTaylor’s Differential Piece Rate systemTaylor’s Differential Piece Rate system

In this system, for each job, two different piece rates are fixed.

For the worker who is working at less than 100% efficiency, the lower rate is applicable,

which is equivalent to 83% of the time rate.

On the other hand, for the workers working at & above 100% efficiency, the higher rate, which is fixed at 125% of time rate

plus 50% of time rate in the form of incentive, is applicable.

For the performance of standard task, a standard time may be fixed. In this case, the efficiency will be worked out as below:

% Efficiency = (Standard time/Actual time taken)*100

Alternatively, during a standard time, standard output could be fixed, in which case,

the measurement of efficiency will be as below:

% Efficiency = (Actual output/standard output)*100

No day wage has been guaranteed by Taylor. The workers by whom 100% efficiency cannot be attained are penalized

because the lower rate is abnormally low. On the other hand, very high rewards are achieved by the efficient workers, as the

higher rate is very high.

F.W Taylor, who is regarded as the father of scientific

management, introduced this system in the United States.

F.W Taylor, who is regarded as the father of scientific

management, introduced this system in the United States.


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Merrick Differential piece rate systemMerrick Differential piece rate system

Merrick Differential piece rate systemMerrick Differential piece rate systemMerrick Differential piece rate systemMerrick Differential piece rate system

Under Taylor’s differential piece rate system, workers by whom 100% efficiency

cannot be attained are penalized, whereas under Merrick system, there is no

imposition of such punitive lower rate upon them; whereas, those by whom

certain percentage or more, of efficiency can be achieved, are rewarded by

higher differential rates.

This system made by Mr. Merrick, is a modification of

Taylor’s differential piece rate system.

This system made by Mr. Merrick, is a modification of

Taylor’s differential piece rate system.

%100%3

183 efficiency

No day wage has been guaranteed under Merrick system also. Encouragements are given to the

efficient workers, at the same time; penalization is not imposed upon less efficient workers. This system

is also called multiple piece rate system.

%3

183efficiency %100efficiency

Normal rate is applicable Normal rate + 10% of normal rate is allowed Normal rate + 30% of normal rate is allowed

The rates are as below:


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Remuneration on Time basisRemuneration on Time basis

Remuneration Remuneration on Time basison Time basisRemuneration Remuneration on Time basison Time basis


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Time-Rate SystemTime-Rate System

Time Rate SystemTime Rate SystemTime Rate SystemTime Rate System

Under this scheme, payment is made to a worker at a specified wage rate on the basis of his attendance Under this scheme, payment is made to a worker at a specified wage rate on the basis of his attendance

irrespective of his outturn.irrespective of his outturn.

The specified wage rate could be in terms of hour, day, week or month.The specified wage rate could be in terms of hour, day, week or month.

After the existing rate for similar employment in the area has been considered, the rate is fixed.After the existing rate for similar employment in the area has been considered, the rate is fixed.

The wage rate could be a consolidated one or it could be on a scale which starts from the minimum and The wage rate could be a consolidated one or it could be on a scale which starts from the minimum and

through increments at different stages, rises to the maximum.through increments at different stages, rises to the maximum.

At a particular stage of the scale, there may be imposition of efficiency check up.At a particular stage of the scale, there may be imposition of efficiency check up.

The system is also called time The system is also called time work system, day work system, work system, day work system,

day wage system, day rate day wage system, day rate system etc.system etc.

The system is also called time The system is also called time work system, day work system, work system, day work system,

day wage system, day rate day wage system, day rate system etc.system etc.


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Time Rate systemTime Rate system

Time Rate systemTime Rate system

Time rate system is suitable in case of: Time rate system is suitable in case of:

Workers who are highly skilledWorkers who are highly skilled

Workers who are unskilled & traineesWorkers who are unskilled & trainees

When the work is beyond the control of the workerWhen the work is beyond the control of the worker

When on the output of the previous worker in the chain, the work is dependentWhen on the output of the previous worker in the chain, the work is dependent

When the work cannot be measured in terms of homogeneous unitsWhen the work cannot be measured in terms of homogeneous units

Close supervision is required for the jobClose supervision is required for the job

Work is of high quality & precision.Work is of high quality & precision.


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Time Rate SystemTime Rate SystemTime Rate SystemTime Rate SystemAdvantages:Advantages: Disadvantages:Disadvantages:

Much clerical effort is not required for the Much clerical effort is not required for the

calculation of wages, which can be done easilycalculation of wages, which can be done easily

The worker can verify the calculation of the wages The worker can verify the calculation of the wages

from the specified rate and the gate time, as a result from the specified rate and the gate time, as a result

no suspicion will arise in his mindno suspicion will arise in his mind

For the period of attendance, assurance is given For the period of attendance, assurance is given

to the worker of his wage at the specified rateto the worker of his wage at the specified rate

For protecting the quality of work, it is the most For protecting the quality of work, it is the most

suitable methodsuitable method

Time rate system is only applicable in cases Time rate system is only applicable in cases

where measurement of work cannot be done in terms where measurement of work cannot be done in terms

of a measuring stick.of a measuring stick.

From the view point of workers it can be said From the view point of workers it can be said

that, efficiency is not encouraged by time rate that, efficiency is not encouraged by time rate

system. All are treated at par; thereby system. All are treated at par; thereby

dissatisfaction arises amongst the efficient workers dissatisfaction arises amongst the efficient workers

who lose efficiency gradually.who lose efficiency gradually.

From the employers point of view it can be said From the employers point of view it can be said

that, for much idle time he has to make payment.that, for much idle time he has to make payment.

From the view point of nation it can be said From the view point of nation it can be said

that, if time rate system is introduced, the nation that, if time rate system is introduced, the nation

suffers from low rate of production.suffers from low rate of production.


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High Wage PlanHigh Wage Plan

In this case, time rate is fixed at a level which is higher than the prevailing rate in the

locality for a similar employment and as a result, standard of efficiency and output fixed for a

worker is correspondingly high.

A worker is taken out of the scheme if the level of efficiency cannot be attained by him.

Obviously, the employer assured the working conditions suitable for attaining the standard

efficiency. High wage plan is suitable for organizations whose objective is to achieve high

quality of output and high productivity.

Advantages of High wage plan are:

Like ordinary time rate, the scheme is simple.

Supervision cost is reduced & through higher productivity, labour cost & fixed

overhead per unit of output also gets reduced.

Incentives are provided by which workers gets attracted.

High Wage PlanHigh Wage Plan


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Differential Time Rate systemDifferential Time Rate system

Under this system, for different level of efficiency, different time rates are fixed.

A percentage of efficiency is fixed & the worker gets normal rate up to that. If that

percentage of efficiency is crossed by the worker then there will be step by step

increase in his time rate.

Let $. 8 be normal hourly rate. The percentage of efficiency up to which the

normal hourly rate is applicable is S. 50 and for each 10% increase in efficiency,

the multiplier of the hourly rate increased by 10%.

At different levels, the hourly rates will be as follows:

Differential Time Rate systemDifferential Time Rate system

Efficiency, Above

Efficiency, Up to

Hourly Rates

50% $. 8 * 1.00 = $. 8.00

50% 60% $. 8 * 1.10 = $. 8.80

60% 70% $. 8 * 1.20 = $. 9.60

70% 80% $. 8 * 1.30 = $. 10.40


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Time SheetTime Sheet

A timesheet (or time sheet) is a method for recording

the amount of a worker's time spent on each job.

Factory workers often have a "time card" and "punch in"

by inserting their card into an automatic timestamp

machine (sometimes known as a bundy clock) when

starting and ending their work shift.


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Gantt Task Bonus SystemGantt Task Bonus System

Gantt Task Bonus SystemGantt Task Bonus SystemGantt Task Bonus SystemGantt Task Bonus System

Unlike Taylor & Merrick system, day wages are guaranteed under this system.

A high standard or task is set.

A time rate is paid to the worker who is not able to attain the standard.

On the other hand, a high piece rate including a bonus of 20% of the time rate or 20%

of ordinary piece rate is paid to the worker attaining or exceeding the standard.

Therefore, fixation of time rate, piece rate and standard performance is required under

Gantt task bonus system.

Thus this combines time wage and piece wage system.

Under this system, as the worker proceeds towards the standard, the labour cost per

unit tends to diminish.


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If labour could be measured adequately in simple homogeneous units of time, such as labour-If labour could be measured adequately in simple homogeneous units of time, such as labour-

hours, the problems of economics would be considerably simplified.hours, the problems of economics would be considerably simplified.

But labourers differ in the amount and character of their training, in their degree of skill, But labourers differ in the amount and character of their training, in their degree of skill,

intelligence, and capacity to direct their own work or the work of others, and in the other special intelligence, and capacity to direct their own work or the work of others, and in the other special

aptitudes that they require.aptitudes that they require.

Apart from the circumstances that the mobility of labour is imperfect and that it cannot be Apart from the circumstances that the mobility of labour is imperfect and that it cannot be

transferred readily to the employments in which its products have the highest value, the wages transferred readily to the employments in which its products have the highest value, the wages

of different kinds of labour cannot be taken to be payments for larger or smaller “quantities of of different kinds of labour cannot be taken to be payments for larger or smaller “quantities of

labour.”labour.”

The price per unit of time that a particular kind of labour commands in the market depends not The price per unit of time that a particular kind of labour commands in the market depends not

only upon the technical efficiency of the labourer but also upon the demand for the particular only upon the technical efficiency of the labourer but also upon the demand for the particular

services that he is able to furnish, upon their relative scarcity, and upon the supply of other services that he is able to furnish, upon their relative scarcity, and upon the supply of other

productive agents. Thus, the attempts of the earlier economists and of some socialists to find a productive agents. Thus, the attempts of the earlier economists and of some socialists to find a

simple and direct relation between the value of a product and the quantity of labour that it simple and direct relation between the value of a product and the quantity of labour that it

embodies proved fruitless.embodies proved fruitless.


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Labour productivityLabour productivity

Working hours per

moth

Monthly output of the worker, units

Output norm

Regulatory laboriousness of productsIncreasing in

labor productivity, %minutes Reducing, %

Before the revision of the output norms

175 10500 60 1,00 X X

After the revision of the output norms

175 12250 70 0,86 14,29 16,67

Before the revision of the output norms the worker's output was 10,500 units per month (175 working

hours per month). After implementing some measures for the organization of labor output norm was set of

70 units per hour.

Evaluate the percentage of reducing in regulatory laboriousness of products, and increasing in labor

productivity, and what will be the monthly output of the worker?

TASK 1TASK 1

Monthly output of the worker after the revision of the output norms, units:

70 units per hour · 175 hours per moth = 12,250 units per moth


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Working hours per

moth


Output norm




175 10500 60 1,00 X X


175 12250 70 0,86 14,29 16,67



70 units per hour.



TASK 1TASK 1

Output norm before the revision, units:

10500 units per month / 175 hours per moth = 60 units per hour


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Working hours per

moth


Output norm




175 10500 60 1,00 X X


175 12250 70 0,86 14,29 16,67

Before the revision of the output norms the worker's output was 10,500 units per month (175 working hours per month). After

implementing some measures for the organization of labor output norm was set of 70 units per hour.

Evaluate the percentage of reducing in regulatory laboriousness of products, and increasing in labor productivity, and what will

be the monthly output of the worker?

TASK 1TASK 1

Before the revision of the output norms :

60 min. / 60 units per hour = 1,0 min. per unit

After the revision of the output norms :

60 min. / 70 units per hour = 0.86 min. per unit

Regulatory laboriousness of products, minutes:


2626

© Filippova I.H.


Working hours per

moth


Output norm




175 10500 60 1,00 X X


175 12250 70 0,86 14,29 16,67



70 units per hour.



TASK 1TASK 1

Reducing the regulatory laboriousness of products, %:

(1.00 min. – 0.86 min.) * 100 / 1.00 min. = 14.29 %


2727

© Filippova I.H.


Working hours per

moth


Output norm




175 10500 60 1,00 X X


175 12250 70 0,86 14,29 16,67



70 units per hour.



TASK 1TASK 1

Increasing in labour productivity, %:

(70 units per hour – 60 units per hour) * 100 / 60 units per hour = 16.67 %

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