Chapter 6 Flashcards
1
Q
Piece-rate
A
Pay system in which individual workers are paid a certain sum of money for each unit of production completed.
2
Q
Wage incentive plans
A
Various systems that link pay to performance on production jobs.
3
Q
Potential problems w/ Wage Incentives
A
Lowered quality, differential opportunity, reduced cooperation, incompatible job design, and restriction of productivity
4
Q
Merit pay plans
A
Systems that attempt to link pay to performance on white-collar jobs.
5
Q
Lump sum bonus
A
Merit pay that is awarded in a single payment and not built into base pay.
6
Q
Potential problems w/ Merit Pay Plans
A
Low discrimination, small increases, and pay secrecy.
