Question

State two conditions where the piece-rate system is most suitable.

State two conditions when the piece-rate system of wage payment can be used effectively.

Give five conditions under which a piece wage system is suitable.

Answer 1

1. When the quantity of production is prioritised over product quality.
2. When work methods and procedures are standardised.
3. When the work is repetitive and not artistic in nature.
4. When there is a direct correlation between the output produced and the effort exerted by employees.
5. When the output can be easily and accurately measured.