Comparing Rowan plan and Halsey plan, it is seen that when the time saved is less than 50% of the standard time ________._

Rowan plan allows more wages to a worker than Halsey plan
Rowan plan allows less wages to a worker than Halsey plan
Rowan and Halsey plan allow equal wages to a worker
Rowan plan and Halsey plan are equal to ordinary time wage

The correct answer is: A. Rowan plan allows more wages to a worker than Halsey plan.

The Rowan plan is a type of incentive wage plan in which the worker is paid a base wage plus a bonus based on the amount of time saved. The Halsey plan is a similar plan, but the bonus is based on the amount of time saved over a set standard time.

When the time saved is less than 50% of the standard time, the Rowan plan will pay the worker more than the Halsey plan. This is because the Rowan plan pays a bonus based on the entire amount of time saved, while the Halsey plan only pays a bonus based on the amount of time saved over the standard time.

For example, let’s say that a worker is paid a base wage of $10 per hour and the standard time for a task is 1 hour. If the worker completes the task in 45 minutes, they will be paid $10 for the base wage plus $5 for the bonus under the Rowan plan. Under the Halsey plan, they would only be paid $5 for the bonus.

The Rowan plan is a more generous plan than the Halsey plan, because it rewards workers for all of the time they save, not just the time they save over the standard time. This can lead to increased productivity, as workers are motivated to work faster and more efficiently.