MHR 523 Chapter 12: Human Resources Management Chapter 12

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lilacmosquito575

14 Apr 2011

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Variable pay: any plan that ties pay to productivity or profitability. Top performers must get top pay in order to secure their commitment to the organization. Piecework: a system of pay based on the number of items processed be each individual worker in a unit of time, such as items per hour or items per day. Straight piecework plan: a set payment for each piece produced or processed in a factory or shop. Guaranteed piecework plan: the minimum hourly wage plus an incentive for each piece produced above a set number of pieces per hour. Disadvantages unsavoury reputation; attempt to revise piecework standards, workers become resistant. Standard hour plan: a plan by which a worker is paid a basic hourly rate plus an extra percentage of his or her base rate for production exceeding the standard per hour or per day. It is similar to piecework payment but is based on a percentage premium.

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Active Apparel Company manufactures various styles of men's casual wear. Shirts are cut and assembled by a workforce that is paid by piece rate. This means that they are paid according to the amount of work completed during a period of time. To illustrate, if the piece rate is $0.15 per sleeve assembled, and the worker assembles 700 sleeves during the day, then the worker would be paid $105 (700 Ã $0.15) for the day's work. The company is considering adopting a lean manufacturing philosophy by organizing work cells around various types of products and employing pull manufacturing. However, no change is expected in the compensation policy. On this point, the manufacturing manager stated the following: "Piecework compensation provides an incentive to work fast. Without it, the workers will just goof off and expect a full day's pay. We can't pay straight hourly wagesâat least not in this industry." All of the following are true regarding piecework compensation except: a. It is characteristic of a traditional manufacturing philosophy. b. Workers are not compensated for improvements in the process. c. Piecework encourages the workers to make products, regardless of the demand. d. Piecework is pull manufacturing. e. Piecework is push manufacturing.

Which one of the following actions does NOT result in higher levels of labor productivity in producing footwear?

a. Spending for best practices training for plant workers.

b. Actions to spend more money on enhanced styling/features and boost the number of models produced from 250 to 350.

c. Increases in worker base pay of 2% or more.

d. Increasing the percentage in the piecework incentive.

e. Reductions in the number of models produced at a plant.

violetcrab166

there are two reowned costing system i. e., job order costing or process costing system used by manufacturing or service organization. highlight the suitability, advantages and disadvantages of each costing system in context of organizations working in pakistan

orchidkoala908

MHR 523 Chapter 12: Human Resources Management Chapter 12

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