Asked by Facienne Guerlanda on Jul 24, 2024

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Piece rate pay systems

A) usually increase cooperation among workers on peripheral, nonproduction tasks (for example, keeping the shop clean) .
B) have generally been supported by unions.
C) are especially useful when few objective performance criteria exist.
D) generally lead to increased productivity unless restriction occurs.
E) are most effective when applied to white-collar jobs.

Piece Rate Pay Systems

Compensation structures where employees are paid a fixed rate for each unit of production completed, often used to incentivize higher productivity.

Productivity

Measures the efficiency of production output in relation to the input used within a given period, commonly assessed in workplace and economic contexts.

Cooperation

The act of working together towards a common goal or purpose, often involving shared efforts or resources.

  • Analyze the effectiveness of different pay systems (such as piece rate, variable pay, and merit pay) on worker productivity and cooperation.
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MG
Moumita GhoshJul 24, 2024
Final Answer :
D
Explanation :
Piece rate pay systems are designed to reward employees based on the amount of work they complete, which typically motivates increased productivity. However, if workers believe that higher productivity could lead to lower pay rates or fewer available work hours (a practice known as "rate busting"), they might restrict their output to avoid such outcomes. This system is less about cooperation, union support, subjective performance criteria, or specific job types, and more about directly incentivizing individual productivity.