(f) The Gantt System.
This method is very similar to the Taylor System, except that the worker is not penalised so much if he fails to reach standard time.
A large increase in the piece rate is given when 100 per cent. efficiency is reached. For all time taken in excess of standard the worker gets three-quarters of his wage rate instead of the whole of it. As an example, suppose the standard time of a job be 10 hours and the worker takes 12 hours. He is paid full-day rate on 10 hours, and three-quarters the day rate on 2 hours. At 10d. per hour this amounts to—
| d. | |
| 10 hours at 10d. = | 100 |
| 2 hours at 7½d. = | 15 |
| —— | |
| 115 |
for 12 hours' pay, which is equal to 9½d. per hour. The efficiency is (10/12) × 100 = 83·3 per cent.
The sloping line below the day rate line shows the hourly rate at various efficiencies.
After 100 per cent. efficiency is reached, the reward is just the same as in the Taylor System.
The advantage of this system over the Taylor System is that the loss for inefficiency is not heavy, yet it is enough to make the worker endeavour to reach standard time. This, again, is a method only suitable for highly skilled workers.
