Piece rate pay works better when:
A) output is harder to measure.
B) output is easier to measure.
C) quality matters a great deal.
D) no monitoring is required.

Question

Quizplus · Accepted Answer

Piece rate pay, which pays employees based on how much they produce, works better when output is easier to measure because it allows for a straightforward calculation of pay based on amount produced. If output is harder to measure, it can be difficult to fairly compensate employees for their work. Additionally, piece rate pay incentivizes workers to increase output, which is easier to do when output is easily measurable.

Piece Rate Pay Works Better When