Essay Examples on Piece Rate System

Disadvantages of piece rate remuneration systems

Disadvantages of piece-rate remuneration systems. Less attention to quality. The workers would focus more on trying to produce more quantity of products in the attempt of trying to make more money and producing the product the fastest way possible, rather than focus on the quality and result in the production of blew average quality products because payment for the worker is made on the basis of output. Wastage use of materials. Since employees work to produce faster without putting effort into the efficiency to increase production, an excessive wastage of materials is to be expected due to their efforts to obtain maximum output. Wages. Because of the relationship between the quantity of output and wages the employee will face a decrease in pay if he did not meet the number of units that required. Also having minimum wage could lead to some employees coming to work and giving no effort and getting paid. Some workers would focus their time to produce the best quality product that they can rather than produce more and they suffer because will not be composited for good quality that is produced.

1 pages | 372 words