Business Studies by Dorothy Mathias
Which method of wage payment – time rate or piece rate – would you adopt under each of the following situations? Give reasons in support of your answer – 4 marks CBSE 2004 Set 1, 2 and 3 (V. Important) –
When production process is complicated and (intricate) or requires a high degree of skill.
Time rate is more suitable as the job requires a high degree of skill. The workers would not be in a hurry to complete their job and would maintain the degree of skill and quality desired.
Where quality is of supreme importance
Time-rate wage payment method.
The workers are not in a hurry to complete the job If it was piece rate workers would hurry to complete the job and would not maintain the quality desired.When a collective effort of group of individuals is necessary for computation of a job
Time rate wage system will be adopted because in collective effort where it is difficult to measure precisely the output of individual workers this system is more suitable
When skilled personnel is engaged in tasks requiring high quality workmanship
Time wage system is suitable as workers are not in a hurry to complete their work to get more wages.
When workers have no control over the rate of output
Or
Where the output of learners CANNOT be expected to reach the minimum standard
Or
Where rate of output is determined solely by machine and not by operation
Time rate wage payment method
As there is no standard unit of output and rate of output is determined solely by machine and not by operator or measurement technique.Where there is NO clear relationship between effort and output.
Time rate wage payment method.
Because here it is not possible to pay the worker according to her work done by him as output of each worker cannot be separately identified.Where time factor is not important
Time rate wage system as time factor is not significant which means quality is preferred over quantity.
Where delays in work are beyond employer’s control
Time rate wage system as delay in work is not in control of employer.
When the nature of work requires close supervision.
Time rate wage system because quality is more important than quantity
State any five situations when is PIECE wage payment method suitable? (Learn all are important) -4 marks – CBSE 1999
Which method of wage payment – time rate or piece rate – would you adopt under each of the following situations? Give reasons in support of your answer – 4 marks CBSE 2004 Set 1, 2 and 3 (V. Important) –
Where units of output can be measured;
Piece rate wage payment method.
As there is clear relation between effort and output. OR
As wages can be easily calculated on the basis of output produced by the worker.Where quantity of work is measured, inspected and counted
Piece rate wage system is suitable in order to differentiate between efficient and non efficient workers and to motivate them.
When the job is standardised. OR method of production is standardised
Piece rate wage payment method is suitable as output of each worker can be measured
When workflow is regular
Piece rate wage system
As the workflow is regular and delays are few and consistent, here output of each worker can be easily measured and workers can easily be paid according to the efforts and work done by him.Where there is clear relationship between efforts and output.
Piece rate wage system
Because here it is possible to pay the worker according to the work done by him as output of each worker can be separately identified.Where quality is less important than quantity (i.e. when quantity is more imp than quality)
Piece rate wage payment method.
Because worker is in a hurry to complete the work as he gets wages based on quantity produced.
Therefore quality will not be maintained.Where the work is of a repetitive nature and there is no need to increase the production.
Where work is of repetitive nature and there is no need to increase the production, no supervision is required, no skilled personnel is required, quality is not important, in such cases piece rate system is more suitable
