National Commission on Labour (1967)||
17.2 Incentive systems in the industrially advanced countries date back to the introduction of scientific management in the closing years of the 19th century. Since then numerous schemes have been evolved; a wide variety of them are now in force in different parts of the world. Wage incentives tend to assume greater significance in a framework of planned economy. They encourage workers to accept technological improvements resulting in increased production for the economy and better standards of living for the workers. It was in this context that both the First and the Second Plans recommended the introduction of incentives to promote more efficient working in industries with due safeguards to protect the interest of workers, through the guarantee of a minimum (fall-back) wage and protection against fatigue and undue speed-up. The Second Plan also recommended that earnings beyond the minimum wage should be necessarily related to results and workers should be consulted before a system of payment by results was introduced in an establishment. The Third Plan emphasised the need for higher productivity and reduction in the unit cost of production. It put the responsibility on the management to provide the most efficient equipment, correct conditions and methods of work, and adequate training and suitable psychological and material incentives for the workers. There has been, however, no evidence of systematic implementation of these recommended measures. Whatever has been achieved in the last twenty years is the result of the efforts of individual employers or employer groups. Research institutes also have helped this limited effort by conducting scientific studies on work methods in industries—sometimes in collaboration with workers—and by publishing technical literature on the subject.