Financial Incentives - Piecework 1.4.4

Piecework - means that each production worker gets paid according to their level of output

KEY FEATURES

• An agreed amount is set for each item produced
• There is an incentive to be as productive as possible

ADVANTAGES

• Requires low levels of manager supervision
• Encourages high speed production
• Provides good incentive for workers who are mainly motivated by pay

DISADVANTAGES

• Quality may suffer as workers try to get as much done as possible
• It is repetitive for workers and can be demotivating
• Workers are only used to one set method of production so may be resistant to change