Task and Bonus System - What is it?
Hello Readers, today we are going to be introducing Gantt’s Task and Bonus System. First, we are going to look at what it actually is…
What it is -
The Task and Bonus system was designed by Henry Gantt to encourage more productive behaviour amongst employees and to increase output within an industry. This system involves rewarding employees with a monetary bonus upon completion of their daily tasks. An employer has the responsibility to appoint these tasks to employees for this system to work effectively and successfully. The employer must also decide on the bonus for their employees. This is just as important as deciding what their tasks should be as this drives incentive and is at the heart of the employees’ motivation. The task and bonus system boosted morality within the workplace as workers had it “placed in their power to earn a very substantial increase in wages by a corresponding increase in their productive capacity, and this has given them the feeling that the company is quite willing to reward the increased effort.” (1 – page 88.)
Advantages –
Incentives employees to be more productive.
Increases output for the business as they are now more efficient.
Reduced costs in the long run due to economies of scale.
Greater produce to sell which can lead to more revenue earned.
Limitations –
Potentially a slight disincentive to work as employees are comfortable on minimum wage.
Potentially overpaying employees as the tasks that they complete may not be worth as much as the extra wages employees are receiving. However, this is up to the employer to ensure that employees are getting paid the equivalent to the value of the additional work they are doing.
Deciding on what employee’s tasks should be, is time consuming for employers. It also may be difficult to ensure that these tasks are fair for all employees.
Our Thoughts –
The Task and Bonus System has been proven to work efficiently. When Gantt had originally introduced this system into the workplace, there was an instant jump in production. We can see why employees would enjoy this system and it’s evident that it gives a morality boost in the workplace. The Task and Bonus System is definitely a win for both business owners and their employees!
By Samuel Gammell, 03/11/22
References –
Henry Laurence Gantt – Leader in Industry by L.P. Alford
Work, Wages and Profits – H. L. Gantt
How to Calculate Bonuses for Employees in 2021 | Eddy – Picture only
Stay tuned to see where the Task and Bonus System originated from and the story behind it!!