Piece rate pay works better when:
A) output is harder to measure.
B) output is easier to measure.
C) quality matters a great deal.
D) monitoring is expensive.

Question

Quizplus · Accepted Answer

Piece rate pay is based on paying employees for the quantity of work they produce. It works better when output is easier to measure, as it allows for a clear measurement of productivity and ensures fair pay for work done. When output is harder to measure, other forms of pay such as hourly pay may be more appropriate. Quality and monitoring are relevant for any type of pay system, but are not determining factors for the effectiveness of piece rate pay.

Piece Rate Pay Works Better When