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