The factor considered for wage determination in the flat day rate basic wage incentive plan is:

Explanation:

Flat Day Rate Basic Wage Incentive Plan:

• The flat day rate basic wage incentive plan is a wage payment system where employees are compensated based on the number of hours worked, irrespective of their individual performance or the quantity of output produced. This system ensures that employees receive a consistent and predictable wage for the time they spend working, promoting stability and fairness in compensation.
• In this system, the primary factor for determining the wages of an employee is the total number of hours they have worked. The hourly rate is predetermined, and employees are paid accordingly. For instance, if the agreed-upon hourly rate is ₹100 and an employee works for 8 hours in a day, they will receive ₹800 for that day, regardless of the tasks completed or the output delivered.

Advantages:

• Simplicity: This wage system is straightforward to understand and implement, as it eliminates the need for complex calculations based on performance metrics.
• Predictability: Employees can anticipate their earnings based on the number of hours worked, providing financial stability.
• Focus on Time Management: Since wages are tied to hours worked, employees are motivated to manage their time effectively.
• Equity: This method ensures that employees are paid equally for the same number of working hours, fostering a sense of fairness.

Disadvantages:

• No Incentive for High Performance: As wages are not linked to individual performance or output, employees may lack motivation to exceed expectations or deliver higher productivity.
• Potential for Time Mismanagement: Since wages are based on hours worked, there may be instances where employees prioritize time logged over actual productivity.
• Limited Flexibility: This system does not accommodate variations in workload or the complexity of tasks performed.