Indifference Wage Incentives for Quality and Quantity.
Abstract
The paper presents an incentive wage plan for machine operators. The plan utilizes the concept of consumer indifference to adjust the operator's 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 operator's quantity and estimated quality. Suggestions for and limitations in using the plan are also given. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Mar 01, 1973
- Accession Number
- AD0784054
Entities
People
- Joseph W. Foster
- Thomas Neil Frandsen
Organizations
- United States Army Materiel Command