Piecework Plan and Merit Pay

2696 Words Feb 16th, 2012 11 Pages
Programme Title: Management of Human Resource and the Practice of Management
Batch No: ABMEM 0962B

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Deadline: 26-Dec-2009
Table of Content

No. | Topics Headings in Project | Pages | 1 | The usefulness and limitations of Piecework plan and Merit Pay | Pg 3 – Pg 10 | 2 | Identify and explain 5 reasons as to why incentive plans fail | Pg 11 – Pg 13 | 3 | How are you going to implement the incentive plans? | Pg 14 – Pg 15 |

Question 1
It was Frederick Taylor who advances the arguments for adopting financial incentives as a motivation tool. Critically examine the usefulness and limitations of the two following incentive plans: a) Piecework plans b) Merit
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Conflicts among Employees
Those who are able to help company produce more product would be jealous by those who can’t thus conflict will rise between them due to the fact that they are afraid of retrenchment by their superior.
A published in August 13, 1921 by The New York Times articles about railroad shops using piecework plan as base pay for workers are unjustified. It shows evident of unjustification of the plan is, and workers are unhappy about piecework plans brings about .The article also stated that, efficiency of the workers are dropped due to the effects of piecework plan, “sincerity and honesty are undermined by piecework system “induced shop workers to hastily and inefficient repairs in order to complete job quickly.
Another article which is Published, October 27, 1921 by The New York Times which is about a strike of the 55,000 members of the international ladies garment workers union in the city against the piece work system to be established. In the article it also stated that the workers are underpaid and working long hours.
From the above issues, we could conclude that companies do not always use a suitable method but may use one that gives inaccurate result. Nowadays, piecework plans may obsolete for new generation and modern day. Technology or machinery changing and improving from time to time, some of the factories work should be replace by machinery. For example harvesting work in farm may replace by high-end

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