A falling piece rate involves a standard time and rate of production. If the employee produces less than the standard, the gain is shared between the employer and the employee.

Question

Quizplus · Accepted Answer

A falling piece rate system typically reduces the pay rate for production below a certain standard, rather than sharing gains between employer and employee. It's designed to incentivize higher production levels, not to share gains from lower production.

A Falling Piece Rate Involves a Standard Time and Rate