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Standard VII
Civics
Living Wage
Piece-rate sy...
Question
Piece-rate system of remuneration is suitable for which of the following situations?
[1 mark]
A
Quantity of products is more important than the quality produced.
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B
Quality of products is more important than the quantity produced.
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C
Productivity of an employee cannot be measured precisely.
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D
Individual employees do not have any control over production.
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Solution
The correct option is
A
Quantity of products is more important than the quality produced.
Piece-rate system is suitable when:
Where production quantity is more important than the quality of the product.
When the work is of repetitive nature.
When the mass manufacturing system of production is followed and the work is standardised, it is suitable for continuous manufacturing.
When it is possible to measure the production/output of workers separately.
When strict supervision is not required and/or it is difficult.
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