ECONOMICS

Detailed explanation-1: -Time wage system is method of giving wages on the basis of time irrespective of output. Hence, when quality is of prime importance, this system of wage is most suitable.

Detailed explanation-2: -There are two basic systems of wage payment-time rate system and piece rate system. Both the systems have their merits and demerits. No system can be considered suitable for all times and under all circumstances.

Detailed explanation-3: -Piece rate system is suitable under following situations: (1) Where production quantity is more important than the quality of the product. (2) When the work is of repetitive nature.

Detailed explanation-4: -Payment of Wages – Top 5 Methods: Time-Rate System, Piece Rate System, Payment by Results (PBR), Balance or Debt Method and Incentive Rate System. Wage payment system or methods consists of the pay structures and the methods used to motivate and reward work force for their contribution to the goals of the organisation.

Detailed explanation-5: -Opposite to the time wage, piece rate system is the method of wage payment where wages is fixed per unit of output produced. Wages is fixed on per unit basis. Wages of a worker will directly in proportion to the units produced.