A Business Encyclopedia

Gantt Task System

Definition: Under Gantt Task System, the standard time is fixed for the completion of a task based on a careful time and motion study. The worker’s actual performance is compared against the standard time to determine his efficiency and make the payments accordingly.

The Gantt task system guarantees the worker’s time-rate for the level of output below the standard. Thus, if the worker takes more than the standard time to complete the task, then his efficiency is below 100%, and he is paid only the time wages.

If the worker completes the task within the standard time, then his efficiency is 100% and in addition to the time wages, he is also paid a bonus of 20% on the wages earned. If the worker takes less than the standard time to complete a task, then his efficiency is more than 100%, and the wages are paid at high-piece rates.

The Gantt task system can be illustrated by the following example:

Rate per Hour = Rs 0.5
High piece-rate= 0.10
Standard Output= 100 units
Time Taken = 8 hrs

Case (1): Output = 80 units

Since the output is less than the standard, the worker is entitled to only time wages, thus,
Earnings = 8 x 0.5 = Rs 4

Case (2): output = 100 units

As the output is equivalent to the standard, the worker is paid the time wages plus a bonus of 20% on time wages. Thus,
Time Wages = 8 x 0.5 = Rs 4
Bonus = 20/100 x 4 = Rs 0.8
Total Earnings = Rs 4.08

Case (3): Output = 110 units

Since the output is more than the standard, the worker shall be paid at a high piece-rate, thus,
Earnings = 110 x 0.10 = Rs 11

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