A potential problem with piece-rate plans is that:
A) workers will produce a large quantity.
B) workers have no incentive to work hard.
C) it is difficult for managers to control.
D) workers may stress quantity instead of quality.

Question

Quizplus · Accepted Answer

Piece-rate plans pay workers based on the amount of work they complete, which can lead to a focus on quantity over quality. Workers may rush to complete as many tasks as possible to increase their income, potentially sacrificing the quality of their work. This can lead to customer complaints, rework, and decreased overall productivity. Therefore, D is the correct answer as it addresses this problem associated with piece-rate plans.

A Potential Problem with Piece-Rate Plans Is That