Principles of Management · Class 12 · CBSE · Commerce Business Studies
Under Taylor's differential piece wage system, an efficient worker who produces more than the standard output is paid at a higher rate per unit, whil…
Practice question from Principles of Management (Class 12 · CBSE · Commerce Business Studies), with the correct answer and a step-by-step solution.
medium · MCQ · Q-6CA550
Under Taylor's differential piece wage system, an efficient worker who produces more than the standard output is paid at a higher rate per unit, while a worker producing below the standard is paid at a lower rate per unit. What is the main purpose of this technique?
- A.To reward efficiency and motivate workers to achieve or exceed the standardCorrect answer
- B.To ensure that every worker receives the same total wage
- C.To eliminate the need for setting performance standards
- D.To replace functional foremanship with general supervision
Solution
Taylor's differential piece wage system links wages with efficiency. Workers who meet or exceed the standard receive a higher rate, creating an incentive to increase productivity.
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