ADVANTAGES OF PIECE RATE SYSTEM OF WAGE PAYMENT
Piece rate system is a method of wage payment where workers are paid according e amount of work done. The following are advantages or Merits of piece rate system Eliminates the need for constant supervision of the workers leading to reduced costs of production. Minimizes labour strikes (industrial unrest) because it limits conflicts or disagreements over payments. Higher output is realized because workers are encouraged to produce more so as to earn high wages. Promotes team work / spirit among the workers leading to increased productivity. Workers do the work at their own pace thereby reducing overstraining. It is easy to calculate the wages because output is measurable. Dull and slow workers are stimulated to work hard in order to earn high wages. Encourages innovativeness among workers so as to produce a large output of and services to earn high wages. Faster workers earn more wages than slow / lazy workers which minimises seating in the payment of wages. Employers easily fore...