Ravi Rakesh,
Variable pay. The word variable is often used in Dearness Allowance. It varies with the consumer price index. More or less. Similarly any variable pay varies with something, either performance, saving, quality, timeliness, customer satisfaction, speed etc etc. It is studied introduction. Possibly all parameters are considered. It is mutual agreement between employer and employee. The total wage is broken in two parts, one is fixed - most of the times linked to attendance - and other is varied like incentive. That is to induce employee to work efficiently. It increases the profit and brand image of employer. But again this is a past concept. Now what is more practiced is depndence on machine and motivation. Time and motion study is of yesteryear.
Vibhakar Ramtirthkar, Pune.