(i) Differential piece wage system: This system links wages and productivity. The standard output per day is established and two piece rates are used higher for those who achieve upto and more than standard output i.e., efficient workers and lower for inefficient and slow workers. Thus, efficient workers will be rewarded and inefficient will be motivated to improve their performance.
For example: Standard task is 10 units. Rates are: ₹50 per unit for producing 10 units or more and ₹40 per unit for producing less than 10 units.
Worker A produces 11 Units; he gets ₹550 (11 units ×50 per unit)
Worker B produces 09 units; he gets ₹ 360 ( 9 units ×40 per unit)
This difference of ₹190 will motivate B to perform better.
(ii) Time study: It determines the standard time taken to perform a well-defined job. The objective of time study is to determine the number of workers to be employed, frame suitable incentive schemes and determine labour costs.
Taylor suggested that the time requires to perform the job should not be decided by intuition, will and wish of manager, but time study must be conducted to determine the standard time scientifically.
(iii) Method Study: The objective of method study is to find out one best way of doing the job to maximise efficiency in the use of materials, machinery, manpower and capital.
Taylor suggested that method of production should not be decided by rule of thumbs method but all the methods must be tried in the organisation and the one which brings maximum benefits with minimum cost must be selected.