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Explain the following term/concept. Differential Piece Rate System - Organisation of Commerce and Management

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Question

Explain the following term/concept.

Differential Piece Rate System

Explain

Solution

Higher rates are offered to employees who complete the work more than the standard quantity under this system. On the other hand, if an employee is performing below the standard; he shall be given a lower rate of wages. This technique motivates the employees to attain higher standard performance and earn wages i.e. remuneration at a higher rate.

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Techniques of Taylor’s Scientific Management
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Chapter 1: Principles of Management - Exercise [Page 15]

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