BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Taylor’s differential piece-rate system posits that the worker who exceeds the standard output within the stipulated time must be paid a high rate for high production. On the other hand, the worker is paid a low rate if he fails to reach the level of output within the standard time.

Detailed explanation-2: -Differential Piece Rate System or method punishes both inefficient and innocent employees. For example, if one is sick or crippled, then this method has no mercy, you are paid as per your output.

Detailed explanation-3: -Piece rate pay occurs when workers are paid by the unit performed (e.g. the number of tee shirts or bricks produced) instead of being paid on the basis of time spent on the job.

Detailed explanation-4: -Differential Piece Wage System: Under this system, different wages are paid to efficient and inefficient employees. Employees who perform better are paid higher wages than employees who perform below the standard target. This motivates employees to become efficient and earn more.