Under time-related financial incentive schemes, the employee is paid :
- Aaccording to the overtime worked in proportion to the basic hourly wages and regulatory measuresCorrect
- Baccording to the measurable completed job
- Cfor completing the fixed quantity of a specified job
- Das bonus after a pre-determined time
Solution
Concept
Types of financial incentive schemes
Step-by-step solution
1. Time-related schemes: pay depends on time worked (hourly basic wage plus overtime in proportion). 2. Output-related schemes: pay depends on measurable completed work (piece rate). 3. Task-related schemes: pay for completing a fixed quantity of work (task/job rate).
Explanation
Under time-related schemes the pay is linked to the hours worked, including overtime at a rate proportional to the basic hourly wage.
Why the other options are wrong
(b) is a piece-rate (output-related) scheme. (c) is a task-related scheme. (d) is a bonus scheme rather than a time-based wage.
Shortcut
Time-related → hours; output-related → measured work; task-related → fixed quantity.
Common mistake
Choosing the bonus option.
Correct answer: A) according to the overtime worked in proportion to the basic hourly wages and regulatory measures