CBSE Class 12 Business Studies 2019 Outside Delhi set 2

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Explain the following techniques of Scientific management:
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Question : 17
Total: 17
Differential Piece-Wage System.
Solution:  
Differential piece wage system: Frederick Taylor devised the differential piece wage system to motivate the workers by paying more to the more efficient worker. This system differentiates efficiency in terms of high wages and low wages. Workers who are more efficient earn higher wages than workers who are relatively less efficient. This system focuses on providing incentive to workers that encourages them to improve their performance. This system works especially for mass production of goods leading to cost minimisation and profit maximisation.
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