A Disadvantage to the Piecework Incentive Plan Is That the Incentive

question 59

True/False

A disadvantage to the piecework incentive plan is that the incentive value can be powerful, since rewards are directly tied to a percentage of performance that is above standard.

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Definitions:

Status Quo Effect

The tendency for individuals to prefer to keep things as they are rather than change, often driven by loss aversion and decision-making biases.

Invisible Hand

The tendency of competition to cause individuals and firms to unintentionally but quite effectively promote the interests of society even when each individual or firm is only attempting to pursue its own interests.

Behavioral Economics

A branch of economics focusing on how psychological, cognitive, emotional, cultural, and social influences impact the economic choices made by individuals and institutions.

Threat of Rejection

The fear or concern that one's ideas, actions, or presence will not be accepted by others.