Work Study and Ergonomics

Introduction

In any organization no work can be accomplished without involving manpower; hence, the efforts and time devoted by the manpower are payable in terms of wages and incentives. Before we discuss the various wages and incentive schemes, let us first define these terms. The term wages refers to the payment or remuneration made by the employer for the efforts put in by the worker, employee or staff. According to the Payment of Wages Act, ‘wages refer to all remunerations capable of being expressed in terms of money, which would, if the terms of the contract of employment, expressed or implied, were fulfilled; be payable to a person employed in respect of his or her employment or of work done in such employment and includes any bonus or other additional remuneration of the nature aforesaid which should be so payable’. Thus it may be observed that the wage is a contractual obligation of the management to be paid to the persons employed by them. Wages are tangible and have to be paid in terms of money. The basic wage of a worker, once fixed by the management, must not be altered and has to be paid irrespective of the quality or quantity of work.

Incentive

Incentive may be defined as an influence which tends to produce an increased effort on the part of the employee above a standard. It provides the stimulus to motivate the worker towards higher productivity. Incentives can be negative or positive. The disciplinary actions taken against non-compliance are termed as negative incentives. Psychologically negative incentives are not conducive to human-relations. Positive incentives refer to both extra financial and non-financial benefits provided by the management. Positive incentives would lead to increased production levels and productivity. Non-financial incentives are generally more welcome by the executives. Financial incentives are more effective with the workers.

Incentive plan

Incentive plan refers to financial incentive based on the wage structure. Incentive plan is a scheme of arrangement, which lays down a systematic procedure of payment to the employee based on the performance of the task set. It is developed in such a manner as to produce benefit to both the employee and the employer. The earnings of the worker bear a direct relationship to the quantity of output by the individual or by the group in which he/she belongs.