Piece rate compensation schemes do not work well when:
A) quality is important and quality control is inexpensive.
B) quality is not very important and quality control is inexpensive.
C) quality is important and quality control is expensive.
D) quality is not very important and quality control is expensive.

Question

Quizplus · Accepted Answer

Piece rate compensation schemes incentivize individuals to focus solely on productivity, and may lead to a compromise in quality. Therefore, when quality control is expensive, it becomes difficult to maintain quality standards with this compensation scheme, making it unsuitable for situations where quality is important.

Piece Rate Compensation Schemes Do Not Work Well When