Under Incentive Pay, Piecework Rates Are Most Suited for Routine

question 15

True/False

Under incentive pay, piecework rates are most suited for routine, standardized jobs with output that is easy to measure.

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Definitions:

Profit Sharing Plan

A benefit plan where employees receive a portion of the company's profits, typically in the form of annual bonuses, aligning their interests with the financial success of the organization.

Piece Rate

A pay plan in which workers are paid a fixed sum for each unit of production completed.

Individual-Level

Pertaining to or focusing on actions, reactions, or impacts on a single person, as opposed to groups or organizations.

Merit Pay

A pay plan consisting of a pay rise which is linked directly to performance.