A compensation manager,Tammy,has the task of restructuring Acme Widget's reward systems.Employees are frustrated with the current system.They feel it is unfair because,although different jobs have different duties and performance requirements,all workers are paid the same. To address this problem,Tammy might consider:
A)employee share-ownership plans.
B)one-time small bonuses.
C)piece-rate pay.
D)employee profit-sharing.

Question

Quizplus · Accepted Answer

Piece-rate pay is the best choice. This pay system compensates workers based on the number of units produced or tasks completed. As different jobs have different demands, this system can offer a customized payment structure that provides fair compensation for each worker's efforts. Thus, this system can satisfy the employees' demands for merit-based pay; also, it motivates workers to improve productivity to earn more compensation. This system helps Tammy address the fairness issue in the current reward system. Employee share-ownership plans involve the workers taking ownership of the company, and one-time small bonuses and profit-sharing do not address the issue of paying workers based on their performance.

A Compensation Manager,Tammy,has the Task of Restructuring Acme Widget's Reward