Final answer:
Calculation of the Halsey and Rowan Premium Plans involves determining bonuses based on time saved, and these incentive plans influence labor costs and productivity in business. Increased wage demands can lead companies to invest in machinery which can increase productivity but potentially reduce labor demand.
Step-by-step explanation:
The question involves applying the concepts of the Halsey Premium Plan and the Rowan Premium Plan, which are payment incentive systems in business that affect labor costs and productivity. Under the Halsey Premium Plan, workers are paid for the time taken to complete their work plus a percentage of the time saved as a bonus. For the given scenario (where the standard time for 3 units is 1 hour but the actual time for 4 units is also 1 hour, and the hourly wage rate is Rs 1), the worker has saved time since they produced an extra unit within the standard time. Therefore, the worker would receive not only their normal pay but also an additional bonus determined by the saved time. On the other hand, the Rowan Premium Plan calculates the bonus based on the proportion of time saved to the standard time, which means that the worker's bonus would be less compared to the Halsey plan if they save a large amount of time, as it caps the bonus at the amount of the standard hourly wage.
Moreover, there is a discussion about how a rise in wage levels (to $24 an hour) can incentivize a firm to invest in machinery and use more productive physical capital equipment, reducing the demand for labor in the process. This scenario illustrates the trade-off between labor costs and investment in capital, reflecting on management's response to union wage demands and its effect on the number of workers hired.