Business Studies Collins Revision Guide. - StudyGuide.PK

●REWARDING EMPLOYEES (2)Disadvantages■ It can encourage workers to work slowly during normal time so thatthey can be given overtime. This can be very expensive for employers.■ There is no reference to quality. As long as the workers are there,they will get paid, even if the quality of what they do is not very good.Piece rate●●●This means that workers are paid according to how many items theyproduce. Usually these items have to be of a certain quality standardotherwise they do not count in the total.Advantages■ It encourages people to work at a fast speed and so more goodsare produced.Disadvantages■ It can be difficult to administer fairly if the system of productionis complicated. If teams are involved then all the team may sufferif someone does not produce enough.■ It encourages speed rather than careful work. More rejects will beproduced using this system.Bonus payments●●●These can be paid for a variety of reasons including: attendance,punctuality, completing work by a certain time or quality.Advantages■ Can be a good motivator for the stated reasons providing thebonus is a worthwhile amount.■ Can be used to help sort out problems like persistent lateness bythe workforce.Disadvantages■ Workers can come to rely on these bonuses and expect to getthem for just doing the job.25