PIECE RATE V/S HOURLY

WAGE
[Incentives Matter]

PRESENTED BY:
GROUP-4
ASHUTOSH VIJAY,AVASARALA CHAITANYA,
BHOOMIKA BANSAL,DEVANG SINGH,DEVIKA NARULA
DHEERAJ KORLEPARA,DINESH KUMAR KANNAPPAN

PIECE RATE SYSTEM

NATURE
OF
INDUST
RY

Standard/Measurable work
Repetitive nature
Fixable fair and acceptable piece rate
Productivity closely related to skill and efforts
Readily available tools and machines

Fairness
Increase in productivity
Effective cost control
Reduction of Idle time
Less Supervision
Better utilisation of
equipment

INDUSTRY
HOW
TO MAKE
EXAMPLES:
THE SYSTEM WORK?

Minimum Wage on Piece-Rate

Reward Efficiency
Link compensation to Feedback

Difficulty in fixing standard

piece rate
Quality takes a back-seat
Insecurity
Conflict/Unions
Speeding
Not suitable for beginners

TIME RATE SYSTEM

NATURE
OF
INDUST
RY

Productivity not measurable

Quality beats Quantity
Close supervision possible
Frequent work disruptions
No individual control on production
Simplicity
Security
Better Quality of Products
Support of Unions
Less Wastages

INDUSTRY EXAMPLES:
HOW TO MAKE THE SYSTEM WORK?

Reward Efficiency
Set quality Controls
Two way communication

No Incentive for efficiency

Wastage of time
Low production
Employer-employee trouble
Difficult Work Supervision

THANK YOU