Disadvantages of piece rate remuneration systems
Disadvantages of piece-rate remuneration systems. Less attention to quality. The workers would focus more on trying to produce more quantity of products in the attempt of trying to make more money and producing the product the fastest way possible, rather than focus on the quality and result in the production of blew average quality products because payment for the worker is made on the basis of output.
Wastage use of materials
Since employees work to produce faster without putting effort into the efficiency to increase production, an excessive wastage of materials is to be expected due to their efforts to obtain maximum output. Wages. Because of the relationship between the quantity of output and wages the employee will face a decrease in pay if he did not meet the number of units that required. Also having minimum wage could lead to some employees coming to work and giving no effort and getting paid. Some workers would focus their time to produce the best quality product that they can rather than produce more and they suffer because will not be composited for good quality that is produced.
Conditions of workers
Most workers may push themself to work for longer hours to earn more wage and possibly work for connectives days and this will lead to damage their bodies, may lead the terminal health issues. There is a possibility that some work to develop fear and stress of losing wages if they are not able to attend work for some reason. In some cases the company could be blamed for the condition workers, this may affect the company reputation in a negative way and also lead to a lawsuit being filed against the company.
The piece-rate systems consider one aspect which productivity and disregards others and this what make its one-dimensional system to evaluate work. This does system does not consider the possibility that some employees do not care about the quality of work, but instead care on produce as much as possible to earn more. Also, the system effects negatively on teamwork, because employees are encouraged to focus on their production and not consider the production of other employees. Also, this system does no consider the other elements that come to play but do make immediate visible results, such as problem-solving customer feedback, decision making.
Successful Incentive Schemes
Incentive schemes are strategies implemented by the company in order to motivate and encourage employees to perform better in their position. Incentive schemes could include bonus, monetary incentives, training ownership of shares. For the use of incentive schemes their certain conditions are expected to be met if not meet there is a possibility that schemes may not work. These conditions will be explained with Incentive schemes. Training One of the valued incentive schemes is to offer specialized training in specific areas. Where high performing employee is chosen to go to the type of training that would enhance their output. The one of condition for this scheme to work is to select which employee to offer the training and the training must improve the performance of the employee in a big way. Also, another condition is to choose which type of training to send the employee to and consider the position the employee as to offer the training to low-level employee would likely not have a big effect on the performance of his department because the impact of the train would be limited due to the position of the employees and so choosing high-level employee to train is preferable.
The recognition incentive strategy works by when the company recognizes the contribution of the employee and the effort that he put in front of is a peer. The company can recognize the employee in email newsletters staff meetings. The company could include perks such as free airline tickets, extra hours off special parking places. The important condition must be fully filled such not choosing only one employee from the hole company but chose employees from all the devshens of the company the choosing proceed must free from biases and favoritism but chose, must base of the work of the employee. The finale condition of this strategy aims to encourage employees to performs better to be ringed not make them feel inferior to the person that is recognized.
This strategy is only applied to retain employees when the company go through specific events such as during a merger or acquisition or a crucial production period. This strategy could only retain employees for a limited amount of time and the employee that would be retained are likely to be in a key position and the company could not function without them. Also, the amount that is given to employees to retain has to exceed the amount that he would receive if he left.
This strategy works by offering monetary incentive to motivate the employee. This incentive can include such commissions or one time bonuses and steady increases in wage. This incentive are to be given to employees if they meet a certain level of production or perform service that would be deemed valuable. This scheme could only apply for a certain departments, not all departments to be effective. The amount that is given to employees has to be above average so the effort that they put would be rewarded. Moreover, the goal that is made to be achieved have to challenge to not impossible to meet so the employee would not get frustrated with them and give up.