Indifference Wage Incentives for Quality and Quantity.
ARMY MATERIEL COMMAND TEXARKANA TEX INTERN TRAINING CENTER
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The paper presents an incentive wage plan for machine operators. The plan utilizes the concept of consumer indifference to adjust the operators wage according to the quality and quantity of his output as determined by sampling. Two digital computer programs are presented to perform the computations necessary to implement the plan. The first program calculates the sample size required to satisfy managements and operators risks. After the sample is taken, the second program is used to calculate the indifference wage dictated by the operators quantity and estimated quality. Suggestions for and limitations in using the plan are also given. Author
- Personnel Management and Labor Relations
- Manufacturing and Industrial Engineering and Control of Production Systems