Question

State any four/six differences between the time rate system and the piece-rate system of staff remuneration.

Answer 1

Sr. No	Point of distinction	Time-rate system	Piece-rate system
1.	Basis of payment	Wages are determined on the basis of time spent on the job.	Wages are determined on the basis of units produced.
2.	Efficiency	Wages are not linked with the efficiency of the worker.	Wages are directly linked with the efficiency of the worker.
3.	Quality	Quality of work tends to be high.	Quality of work tends to be low.
4.	Wastage	There are fewer chances of wastage of materials and machinery.	There are high chances of wastage of materials and machinery.
5.	Supervision	Close supervision is required to ensure that workers do not waste their time.	Close supervision is not required.
6.	Maintenance	The cost of maintenance is low, as machines are properly handled.	The cost of maintenance is high.