Which incentive for operations employees includes a premium that equals the percentage by which the employee's performance exceeds the standard?
A) Process piecework plan
B) Straight piecework plan
C) Gainsharing piecework plan
D) Guaranteed piecework plan
E) Differential piece-rate plan

Question

Quizplus · Accepted Answer

The differential piece-rate plan is an incentive plan that pays a premium for each unit produced above a standard level of output. It includes a premium that equals the percentage by which the employee's performance exceeds the standard, which means that the higher the output, the higher the premium paid to the employee. This plan encourages the employees to produce high-quality output as quickly and efficiently as possible, which benefits both the employee and the organization.

Which Incentive for Operations Employees Includes a Premium That Equals