Why is Rowan plan used if it is not beneficial? !Possible benefit to worker Halsey plan and Rowan plans are time based incentive wage plans. I have tried to check for the possible benefits the worker can get if he does work quickly than the standard time (S) . Halsey method seems reasonable but when I have tried to find the numerical profit of Rowan plan, it seems as the worker is always penalized. As simplified,the benefit that a worker is getting from this incentive plan is always negative. So why and where is Rowal plan used?

**Your calculation is correct, but you're misinterpreting the result.**

Let's have a simple example:

* Standard hourly pay (R) is $1
* Standard working time (S) is 10 hours.
* Actual time taken (T) is 8 hours.



Compared to the standard wage of $10 you're now earning -(10-8)^2/10 = -0.4. So you're earning $9.6 instead of $10, but **you worked 2 hours less!** If you keep working the same duration as your colleagues, you will earn more than them.