Finance Numericals

  Group Incentive plans: These incentive plans are given to group of workers. In individual incentive plans bonus or high wage rate is given to workers according to their individual performance. While in group incentive plans bonus or high wage rate is given to group of workers according to their group performance. These incentive plans are used when each worker has processed equal skill and determining wage rate is difficult. Some of the group incentive plans are as follows: Sharing profit: Company shares part of profit among workers. It is act as an incentive plan for workers to motivate them to work efficiently. A sharing in profit among group of workers help them to motivate to work more efficiently to increase the profit of a company to get more shares in profit. Co-operative partners: Company provides shares at reduced rate to group of workers if they meet the standard work in standard time to motivate them to work efficiently in future. Instead to give them share in pr

  Incentive is a reward for working efficiently and to motivate the workers to work efficiently in future incentives are given to them. It is given with salary to workers. There are different types of incentive plans are given which are classified into two parts that is: Individual incentive plan and Group incentive plan: In individual incentive plan different incentive plans are introduced by different people. Some of the incentive plans are as follows: ·         Halsey premium plan: It is invented by F.A. Halsey in 1981.In this plan standard time and standard work are fixed. If the workers completed standard work in standard time they will be rewarded by incentives. And the incentives are calculated by time saved multiply with wage rate and the result will multiply with bonus percentage. If the bonus percentage is not given then in that case 50% of bonus is provided to them. This plan is not suitable when quality of product is more important. If the workers are not able to work