GALT CONTRACTING CASE ANALYSIS

Ans#1:

Paying tree planters on a piece rate system fosters great motivation among planters to work more. Friendly competition nurtures among each planter to work more and subsequently earn more.

However, the biggest disadvantage of piece rate system is that the planters get busy in planting more trees without giving due importance to the quality of the planted tree. Consequently, a lot of trees die soon after their plantation.

On a flat rate system, the planters pay more time in the quality of planting trees than on the number of trees. Since they are paid on the Flat rate system their focus on planting more trees for money decreases and the focus on quality increases.

However, the disadvantage of Flat rate is the fact that it has low motivation level to work more. Since planters are not paid for the number of trees they plant; they waste much of their time talking.

Ans#2

Classic theories of Scientific Management: The Galt’s view of implementing flat-rate system revolves mostly around scientific management theories of motivation which require the management to offer greater monetary rewards to get greater productivity from planters while ignoring the human side of them.

 

 

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