The correct answer is: B. In Rowan incentive plan, bonus paid to the employee is equal to the proportion of the time saved to the standard time.
In the Rowan incentive plan, the bonus paid to the employee is equal to the proportion of the time saved to the standard time, multiplied by the regular hourly rate. This means that the more time the employee saves, the higher the bonus.
The Halsey incentive plan is similar to the Rowan incentive plan, but the bonus is equal to 50% of the time saved, divided by the regular hourly rate. This means that the bonus is always half of the time saved, regardless of how much time is saved.
The Taylor’s differential piece rate system is a piece-rate system in which workers are paid a higher rate for output that exceeds the standard output. This system is designed to encourage workers to produce more output.
The Rowan incentive plan is not the base of all other incentive payment plans. The Halsey incentive plan and the Taylor’s differential piece rate system are also common incentive payment plans.