Question

State any three demerits Piece Rate System.

Answer 1

Three demerits of the piece rate system are as follows:

1. Because workers are focused on quantity rather than quality, the product's quality suffers.
2. Setting an appropriate and realistic piece rate for each item of output or activity is quite challenging.
3. Because the method does not easily lend itself to regulating and encouraging a production line, it is nearly difficult to forecast how much product may be made in a given time under this system.