Claudia works as a seamstress at a clothing company.She receives $10 for each pair of pants she sews.What type of pay plan is Claudia's employer most likely using?

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B)Piecework is an incentive pay plan in which employees are paid for each unit they produce.Claudia is paid $10 a unit,so if she produces 10 units a day,Claudia will earn $100.Piecework is an incentive pay plan in which employees are paid for each unit they produce.For example,if a worker is paid $8 a unit and produces 10 units a day,the worker earns $80.Sometimes a guaranteed base is included in a piece-rate plan,meaning that a worker would receive this base amount no matter what the output.Historically,piecework is especially prevalent in the production/operations area.Requirements for the plan include developing output standards for the job and being able to measure the output of a single employee.

Claudia Works as a Seamstress at a Clothing Company