A Business Encyclopedia

Straight Piece-Work System

Definition: The Straight Piece-Work System is the simplest incentive method in which the rate per unit of output is fixed, and the earnings of the worker are computed by multiplying his total output by the rate per unit.

In other words, a system in which the worker is paid according to the number of units produced at a fixed rate per unit during a defined period of time is called a straight piece-work system. Here, the earnings of a worker depend directly on his performance (measured in units). Such as, if the per unit rate is 10 Paise and the total output is 1000 units, then his earnings will be 0.10 x 1000 = Rs 100.

In the case of a price-rate system, the worker has to even go without the wages if the output falls below the defined level of output. Thus, in order to safeguard the interests of the workers the straight piece-work system is modified in one respect, i.e., the time-rate of a worker is also guaranteed. This means worker’s earnings are computed by multiplying the time taken by per unit of time. The time-rate is usually set at a level that yields earnings below the average earnings on piece-work in average conditions. It is designed to protect the worker against the low earnings due to the causes beyond his control.

Leave a Reply

Your email address will not be published. Required fields are marked *


Related pages

barriers of delegation of authoritybarriers of delegation of authoritywhats a vestibulesavings certificate definitioncarrot and stick approach to leadershipdefination of elasticity of demandwage determination theorieswhat is the meaning of industrial relationcardinal utility approachwho is a autocratic leaderpricing strategy definition marketingwhat is the meaning of constraints in hindiafc meaningdefinition deontologyfeature of managerial economicstotal asset turnover formulameaning of neoclassicismvictor vroom theory of expectancyindian itrmeaning of consumer equilibriumwhat is ethnocentrism definitionproperties of the sampling distribution of the sample meanwhat does vestibule meandiminished marginal utilitygeneral principles of management henri fayolprinciple of scientific management theoryretained profit meaningpsychoanalytical theoriesexposure in hindidavid mcclelland three needs theorydefine delphidelphi technique of decision makingexamples monopolistic competitionkanban bin systemblake and mouton leadership stylecollective bargaining definition economicsdistinguish between explicit cost and implicit costwhat is multiplier in economicsethnocentric companydefine erg theorytypes of elasticity of demand in economicspiecework compensationhenry fayol principlesmarket structure oligopolyexplain retailingproperties indifference curvethe meaning of judgementalirrespective meaning in urduwhat is implicit and explicit costhr demand forecastingoutsourcing economics definitionhr audit definitiondefine gantdecentralised structure definitionshort run cost function in economicsstrategic alliance disadvantagesfiedler leadershipdefine contractionary policyoligopoly economicsrecruitment dashboard formatmeaning of tqmwhat is virtue theory definitiondefine economic multiplierdifferent types of arbitragequota sampling examplesdefinition of autocracyparticipative decision making modelduopoly market structure characteristicssampling defdelphi method forecasting exampleautocratic leader definitionpert definitionpurpose of business process reengineeringthe equity theory of motivationdefinition of unitary elastictraining methods in hrm pptsteps in business process reengineeringcorporate business functional level strategystatutory reserve ratiostratified proportional samplingforeign exchange transaction riskstorming group developmentporter's five modelforeign currency market structure