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Question
Explain the following term/concept in detail.
Differential piece rate wage plan
Solution
Remuneration should be fixed in such a way that the average worker is motivated to attain a standard output. Taylor suggested the differential piece-wage system. 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 a higher standard of performance and earn wages i.e. remuneration at a higher rate.
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