Oliver is a manager at a watch company. He believes that money is the sole motivator for workers, so he links workers' pay directly to their output. For each watch a worker produces, he or she receives $5. If a worker produces more than 25 watches in a day, he or she is paid an additional $10 per watch for that day. What system of payment does this describe

Question

Nick Cortez

Business

22 November, 19:54

Oliver is a manager at a watch company. He believes that money is the sole motivator for workers, so he links workers' pay directly to their output. For each watch a worker produces, he or she receives $5. If a worker produces more than 25 watches in a day, he or she is paid an additional $10 per watch for that day. What system of payment does this describe

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Answers (1)

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Mylie Lam · Answer 1

The given system of payment is Piece-rate system.

Explanation:

Piece rate system is the one in which employee is paid according to the per creation he does. Worker is paid by each output he produces irrespective oft he time. This output can be that of a clay pot or a piece of writing.

Oliver pays his workers according to the output they produce. If they produce more than 25 watches, he gives them additional money.

This system is beneficial for both workers and employers. Employers may come up with attractive schemes to pay to employees and they motivated to work more.