Explain in brief any four advantages of piece-rate system of wage-payment.
Answers
1) Wages linked directly to the output of the worker. More the no of units produced higher will be the wages.
2)Workers feel motivated for putting extra efforts as the wages are directly linked to the increase in no of units produced. Therefore no inappropriate deductions in the wages to be received by worker.
3)Better utilization of machinery as the workers may not keep the machinery idle, any breakdown in the machine may directly effect the efficiency of workers which may reduce their wages, so the workers may maintain the machinery effectively .
4)Since payment on basis of output, workers will not waste time which will reduce the productivity, therefore supervision is not required.
5)Certainty in achieving production target by relying on piece rate system will help in better planning and control.
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