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Line 'Em Up Inc. is a deck planking manufacturer based in Nashville. The employees of the organization receive pay based on the amount of work produced. If the output of an employee is more than the average production volume, then the organization pays more for the work performed. In this case, which incentive is offered by Line 'Em Up Inc.?

a. differential piecework rate
b. merit pay
c. retention bonus
d. group bonus

User KTastrophy
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Final answer:

Line 'Em Up Inc. offers a differential piecework rate as an incentive to its employees, where they receive additional pay for exceeding average production volume. This system motivates productivity and directly links effort to compensation.

Step-by-step explanation:

The incentive offered by Line 'Em Up Inc. to its employees is known as a differential piecework rate. This payment system provides a standard rate of pay for each unit produced and then offers extra compensation when an employee's production exceeds the average output. This type of incentive is designed to reward productivity and efficiency, encouraging workers to produce more while maintaining quality standards. It contrasts with other forms of incentive pay, such as merit pay, retention bonuses, and group bonuses, which may rely on different performance metrics or team achievements.

Companies like Line 'Em Up Inc., may utilize a differential piecework rate system to enhance productivity and motivate their labor force. This is particularly useful in industries where output can be easily quantified and linked directly to compensation. For workers, it provides a clear and tangible way to increase their earnings by directly linking their effort and skill level to their pay.

User Consistency
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