What Are The Advantages And Disadvantages Of Paying Tree Planters On A Piece-Rate System

Submitted By Niyathi1
Words: 346
Pages: 2

1. What are the advantages and disadvantages of paying tree planters on a piece-rate system? On a flat-rate system? http://webcache.googleusercontent.com/search?q=cache:qh90r1mo118J:jrsb-120-group-c.wikispaces.com/file/view/Group%2BC%2BCase%2B8.2.doc+&cd=2&hl=en&ct=clnk&gl=ca PIECE RATE SYSTEM
1 Creates friendly competition among workers to see who can be the most productive.
2 Pays based more so on effort - low production equals low earnings
3 Reduces socializing during work hours
4 Increases the amount of potential earnings for each employee
5 Helps in recruitment / retention of employees - good earning potential is key to a university student who has limited time to earn money for the next school year.

6 Creates a system where quality if forsaken for quantity
7 Not always fair based on tree spacing requirements, or type of terrain being covered
8 Could potentially cost Galt Contracting their business as this system may lead to a bad name within the industry.
9 Could lead to HR violations as employees are rewarded for skipping all types of breaks / working very long hours in the name of getting a higher plant count.
10 Higher incidents of poor planting requires more attention from Donald who much consistently check on their work for the sake of his company’s good name
11 Could cost Galt Contracting a lot of money as they are paying for the supplies and labor only to have the planted tree not live.