Tucked Inc. is an envelope manufacturer based in Fort Worth. The employees of the organization receive pay based on the amount of work produced. If the output of an employee is more than the average production volume, then the organization pays more for the work performed. In this case, which incentive is offered by Tucked Inc.?
A) differential piecework rate
B) minimum wage
C) merit pay
D) retention bonus
E) group bonus

Question

Quizplus · Accepted Answer

Tucked Inc. uses a differential piecework rate as an incentive for its employees. This means that employees are paid based on the amount of work they produce and if their output is more than the average, they get paid more. This incentivizes employees to work harder and produce more, resulting in higher pay.