Question

State any three disadvantages of the Piece rate system of wage payment. 

Explain the disadvantages of the piece-rate system of wage payment.

State any three demerits of the piece rate system.

Answer 1

There are disadvantages to the piece rate system of wage payment:

•  Decline in quality
• Insecurit’y
• Wastage of resources

Answer 2

1. Difficult: The system is complex, and workers may find it hard to understand. When a worker is unable to calculate their own wages, it can lead to mistrust towards management.
2. Insecurity: Workers do not have guaranteed minimum wages, and temporary factors may impact their earnings. As wages fluctuate significantly, workers find it difficult to manage their budget. Beginners often struggle to earn well due to the unpredictability of their income.
3. Decline in quality: The focus on increasing output often leads to a drop in work quality. Workers may prioritize quantity over quality, resulting in substandard products unless strict supervision is in place to ensure quality standards are met.
4. Harmful to workers: To maximize their earnings, workers may overwork, leading to physical strain. Such excessive effort can negatively impact their health, increasing the risk of accidents and causing mental stress. Over time, this reduces workers' overall efficiency.
5. Wastage of resources: In their rush to produce more, workers tend to mishandle materials and machinery. This carelessness leads to wastage of materials and excessive wear and tear on equipment.