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This is a modification over Taylor's plan. In this, a minimum base wage is not guaranteed. A worker's wage is calculated as follows:

(i) When output (O) is less than 83% of standard output (SO), scheme for wage (W) is equal to piece rate scheme.

(ii) When 83% of (S) < O < 100% of (SO); W = 110% of piece-rate.

(iii) When O > 100% of (SO); W = 120% of piece rate.


Efficient workers are rewarded handsomely.


(i) Wide gap in slabs of differential wage rate

(ii) Over emphasis in high production rate

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Q: What is Merrick's multiple piece rate system?
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The disadvantage of the straight piece rate system is that there is no special incentive for the special effort. The advantage is that it has high productivity which helps in spreading the load.

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