Piece rates do not work well when:
A) workers use tools in production.
B) quality is not important.
C) quality control is important and simple to perform.
D) quality is important but quality control is expensive.

Question

Quizplus · Accepted Answer

Piece rates incentivize workers to focus on producing as many units as possible, often at the expense of quality. When quality is important but quality control is expensive, it may be difficult to ensure that workers are producing high-quality units under a piece rate system. Therefore, piece rates are not well-suited for this type of situation.

Piece Rates Do Not Work Well When