Q55. What is the difference between Halsey and Rowan Plan?
- Under Rowan Plan, bonus amount increase up to 50% of saving in time. After 50% saving of time, bonus amount decreases as time saving % increases. But under Halsey Plan, bonus amount increases in same proportion of % saving in time.
- Under Rowan Plan, bonus amount always less than basic wages where as in Halsey Plan, bonus amount can be more than basic wages.
- If saving of time is less than 50%, bonus under Rowan Plan will be higher than Halsey Plan. At 50% bonus amount under both plans will be equal. If saving of time is higher than 50%, bonus under Halsey Plan will be higher than Rowan Plan.
Rowan Plan is superior than Halsey Plan due to following reasons:
- If time saving is higher than 50%, bonus amount decreases under Rowan Plan. So worker time saving is not more than 50% which maintain quality of production.
- If in mistake, standard time is set much higher than actual time taken, there will be more loss if Halsey System is applicable. But very less loss if Rowan System is applicable because in Rowan System, bonus amount cannot exceed basic wages.