Asked by Amanda Sammons on May 05, 2024
Verified
Joe, Margaret, and Denise are co-workers.Joe produces five widgets and is paid $5.Margaret produces twenty widgets and is paid $20.Denise produces fifty widgets and is paid $50.These workers are being paid according to a(n) ________ pay plan.
A) merit
B) hourly
C) Scanlon
D) piece rate
E) lump sum
Piece Rate
A payment method where employees are paid a fixed rate for each unit of production completed, rather than receiving a fixed salary.
Widgets
Generic term used for any hypothetical or generic product, often used in discussions or explanations about manufacturing or economics.
- Investigate the effectiveness of diverse salary configurations, including piece rate, variable pay, and merit pay, on labor productivity and cooperation among workers.
Verified Answer
AH
Allisa HitchenMay 10, 2024
Final Answer :
D
Explanation :
The workers are being paid based on the number of widgets they produce, which is characteristic of a piece rate pay plan. Each worker's pay is directly proportional to their output.
Learning Objectives
- Investigate the effectiveness of diverse salary configurations, including piece rate, variable pay, and merit pay, on labor productivity and cooperation among workers.