It was more than a century ago that an engineer named Frederick Taylor walked into factories and starting timing workers with a stop watch. He dissected their movements, and organized them more efficiently. He turned factory production into a science. Suppose workers were paid a wage based on how much they produced. How does this firm organize production?
A) through the command system
B) through a mixed command and incentive system
C) through the incentive system
D) through the market system

Question

Quizplus · Accepted Answer

The firm organizes production through the incentive system because workers are paid based on their output, which motivates them to work more efficiently and produce more.

It Was More Than a Century Ago That an Engineer