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Piece Rate Pay Coexist

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a. Piece-rate pay coexists in our economy with hourly wage pay, because of efficiency and effectiveness. If a firm implements the pay by performance method they are concerned with the individual worker becoming efficient. By paying employees by the number of units they produce, incentivizes employees to work harder for “more minutes of each hour and for more hours during the workday” (477). However, “if workers are paid by the number of parts produced, with the quantity of individual parts not considered, some workers could be expected to sacrifice quality in order to increase their production cost” (478). Therefore, that is why piece rate pay and hourly wage coexist. When it comes to hourly wage page, employers goal is quality of the product. Therefore, “workers know that if they don’t eventually add more to the revenues of their companies than they take home in pay, their jobs will be considered jeopardy” (478). Overall, pay is based on if the firms want to focus on efficiency or quality when it comes to output.
b. …show more content…
The aspects of a business that would lead you to expect that it would be characterized by one or the other is determined by the type of jobs. The jobs characterized by piece rate pay are able to measure the outcome of units produced and are focused on producing as much of a product at a quicker rate. For example, salesmen can by paid by the number of cars they sell and musicians are paid by the number of concerts they pay. As well as sated on page 478, hosiery mills also use this method because it is easy to determine how much one worker produces. However as stated above, not all types of work can be easily determined by the number of output produced. For example, university professors are hard to define a measure because its difficult to determine when professors are working, starting at a computer or talking to colleagues. Therefore, work that is not able to be measured uses the hourly wage rate

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