Answer:
Piece-rate
Step-by-step explanation:
The piece-rate pay plan has long been popular as a means of compensating production workers by paying a fixed sum for each unit of production completed.
Piece rate pay plan is the payment of employees based on the quantity of product they produce. A piece-rate pay system means that the worker is paid per unit of production.
Advantages of piece rate pay plan;
1. Increase in output. Since workers are paid according to quantity they produce, they direct more effort to production so as to earn more.
2. It saves time. Employees tend to spend less time producing a unit so as to be able to produce more units for higher payment.
3. Cost per unit can be calculated easily
Disadvantages of piece rate pay plan;
1. Quality of products tend to reduce because workers focus more on quantity produced.
2. Welfare of workers might be affected. Workers always wants to earn more, so they continue producing even when they are ill.