GEOGRAPHY AND HISTORY

  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...

  When it is possible to measure output either in terms of area covered or volume of output produced. If it leads to increased output per period of time since it motivates workers to work harder to produce greater units of output within the shortest period of time. When careful workers are not likely to suffer for doing quality work in lesser quantities thereby earning less than fast but careless workers who earn more producing output in large quantities but of poor quality. If it enables workers to become creative and innovative in order to increase output. When it is easy to check and avoid wastage arising from hurrying. When accidents at the work place can be avoided. When active workers who are creative or physically stronger or hardworking are not resented for producing more output thereby earning more than the other workers. When it is possible to forecast output and cost of production. When supervision of workers is not necessary, for example, when all workers know and do wh...