Molly, who works in a sock factory, is paid to pack pairs of socks into boxes.In order to accomplish this she has to fold the socks, place them in plastic bags seal the bags and pack 100 individual pairs into a cardboard box.She works on a piece rate of $20 per 100 socks packed.The more socks she packs the more she is paid.This is an example of:

Question

Quizplus · Accepted Answer

Molly's pay is based on her individual performance and the number of socks she packs. This is an example of individual incentives where an employee's compensation is tied to their individual output or performance.

Molly, Who Works in a Sock Factory, Is Paid to Pack