COMMERCE 4BE3- Final Exam Guide - Comprehensive Notes for the exam ( 76 pages long!)
30 Nov 2017
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In order for piece work to succeed in a manufacturing setting, there must be trust between management and workers: this trust facilitates both rate setting and rate changes and assures workers that management will not cut rates arbitrarily. Applicability of piece rates: suitable options are those where. Interdependence between workers is low: each unit of production can be easily measured and priced. Individuals perform a limited number of tasks (all of which can be compensated with piece rates: tasks do not change frequently. Increased productivity will not cause layoffs: quality standards can be monitored efficiently and effectively, these conditions more likely to prevail in service sector than manufacturing sector. The objective: recognize and encourage continuing good performance by individual employees. Merit pay includes: merit raises, merit bonuses, and promotions, all of which are always used in combination with base pay.
