Q&A - What is “piece-rate” pay?
Recommend on Google+
Piece-rate pay gives a payment for each item produced – it is therefore the easiest way for a business to ensure that employees are paid for the amount of work they do. Piece-rate pay is also sometimes referred to as a “payment by results system”.
Piece-rate pay encourages effort, but, it is argued, often at the expense of quality. From the employee’s perspective, there are some problems. What happens if production machinery breaks down?
What happens if there is a problem with the delivery of raw materials that slows production? These factors are outside of the employee’s control – but could potentially affect their pay.
The answer to these problems is that piece-rate pay systems tend, in reality, to have two elements:
• A basic pay element – this is fixed (time-based)
• An output-related element (piece-rate). Often the piece-rate element is only triggered by the business exceeding a target output in a defined period of time
blog comments powered by Disqus
Video resource: Do bonuses work as an incentive for better performance? [10 Feb 2012]
The UK Economy - Private and Public Sector Pay [14 Mar 2011]
Business Pricing Tactics Under Scrutiny [12 Dec 2010]
Strategy Case Study - Vauxhall/Opel restructuring [24 May 2010]
Taking Demand-based Pricing To Extremes [8 Feb 2010]
What business students can learn from how businesses have handled the recession [1 Feb 2010]
Introducing business and the economic environment with Darling’s debt dilemma [27 Jan 2010]
Revision Presentation - Protecting Staff through Legislation [30 Dec 2009]
Office of National Statistics publishes annual survey of hours and earnings [12 Nov 2009]
The Jenson Button Business Lesson [21 Oct 2009]
The gentle touch in city finance [14 Oct 2009]
The Changing Face of Human Resources [11 Sep 2009]
Motivation in practice - how not to do it - lessons from Britain’s bosses [1 Sep 2009]
Fantasy Football hit by the weakness of sterling [17 Jul 2009]
How to improve profitability? - give customers a “staff appraisal” [12 Jul 2009]
Q&A - Outline the main costs and benefits of inflation [1 Jul 2009]
Work For Free? Or Pie In The Sky? [16 Jun 2009]
A stunning example of how wage costs can differ for the same job [10 Jun 2009]
Q&A - What are the main drawbacks to an entrepreneur of starting a business [22 May 2009]
Motivating employees - the end of the mobile phone sales shark? [17 May 2009]
Q&A - What is share capital [2 May 2009]
Q&A - What is profit-sharing? [1 May 2009]
Q&A - What is commission and when should it be used in a pay package? [1 May 2009]
Q&A - Explain “time-rate” pay [1 May 2009]
Q&A - What factors should a business consider when deciding what to pay employees? [1 May 2009]
Q&A - What is job enlargement? [1 May 2009]
Q&A - What causes an exchange rate to change? [1 May 2009]
Q&A - How are businesses affected by changes in interest rates? [1 May 2009]
Q&A - What are the main methods of financial reward? [1 May 2009]
Q&A - Explain Taylor’s theories of motivation at work [1 May 2009]
Q&A - What is credit and why do businesses need it? [1 May 2009]
Staff retention in a recession? Give them more holidays (and a pay cut too!) [20 Apr 2009]
Flight to value at Waitrose [15 Mar 2009]
Q&A - What is meant by the production process? [1 Mar 2009]
Q&A - What are the disadvantages to a start-up of setting up as a franchise? [1 Mar 2009]
Q&A - What are the financial objectives of a new business? [1 Mar 2009]
Q&A - What is meant by adding value [1 Mar 2009]
Can a company get the sack? [20 Aug 2008]
Not enough customers to break the daily grind at Beanscene [14 Aug 2008]
Tipping and the Minimum Wage [5 Aug 2008]
The exciting topic of budgeting makes the front pages [29 Jul 2008]
The Challenge of Recruiting for the Best Job in the World (OCR Applied Unit 9) [1 Apr 2008]
Has the Google bubble burst? [10 Mar 2008]
John Lewis staff bag a bumper bonus [7 Mar 2008]
BUSINESS TEACHER RESOURCE NEWSLETTER
Get first news of business teaching resources, ideas and other materials from tutor2u. Over 9,400 business teachers from the UK and around the world receive our regular teacher email newsletters. Sign up for free here!
