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Showing posts with the label piece rate

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

Motivational Theories - Taylor and Scientific Management 1.4.4

Scientific Management - A motivational theory developed by Frederick Taylor to try and increase the productivity in businesses, specifically factories.   ADVANTAGES OF SCIENTIFIC MANAGEMENT Avoids inaccuracy in production of products Better planning and decision making Enhances teamwork - cooperation between managers and workers Maximises productivity Improved democracy in the workplace Increased opportunities for workers to acquire further training DISADVANTAGES OF SCIENTIFIC MANAGEMENT Not suitable for big firms, only small organisations Managerial decisions may involve severe stress for managers due to need for complete control over the work place Feelings of pressure among employees mainly influenced by piece rate as if they don't make enough of their product, they wont get enough money to live on. May demotivate employees due to repetition of task with no flexibility In order to meet productivity requirements, quality may suffer...