• (i) with the emphasis so completely on quantity, quality may be neglected; • (ii) despite its understandability, piecework does at times give rise to definite problems in its administration (i.e., more clerical work) • (iii) employer-employee relations will be worsened rather than improved under such an arrangement. (i.e. workers will resist innovation due to time-motion study (Dowling, Schuler, Welch 1994). I. Individual incentive plans:
– Piecework pay – oldest and most widely used
– Sharing plans – employees share the gains with the employer based on some predetermined formula. For example, giving bonus for the higher productivity within the same time duration, etc. (Dowling, Schuler, Welch 1994).
II. Group incentive plans:
• Advantages: – may reduce conflicts and resentfulness our individual work assignments; – mutual helpfulness, frequently extending to the voluntary training of new work group members and the sharing of knowledge about short cuts can be expected (Dowling, Schuler, Welch...