How can piece-work system be implied for a Group Incentive program? Should incentives be paid to indirect workers?
How can piece-work system be implied for a Group Incentive program?
In the Piece-work system, the rate per unit of output is fixed, and the total earnings are calculated by multiplying the total output (measured in terms of units) by the rate per unit. For a group incentive program, the total earnings of a group are first determined in accordance with the implemented incentive method, and the earnings are then distributed among the group members equally for equal skilled workers. When the workers are of unequal skill, the earnings are divided in proportion to their individual time-rates or according to specified percentages.
Should incentives be paid to indirect workers?
Indirect workers such as helpers, canteen staff, maintenance staff, etc. are also a part of the organization. Incentives should be paid to such workers as they contribute in the increased production of the Company. Also, such payments are desirable to avoid dissatisfaction among the employees, which may arise if indirect workers are paid at time-rates while direct workers earn generous bonus.