Hrm Incident 1 Essay

279 Words2 Pages
A Motivated Worker! HRM Incident 1 pg.260 The advantages of a piecework pay system such as that at Ram are quite simple. To begin, a piecework pay system is an incentive pay plan in which employees are paid for each unit they produce. This gives the employees endless possibilities to the amount of money they can make. Sometimes firms will include a bonus to an employees piecework pay when they perform above standards. This kind of pay really motivates a worker to move fast and to make as many units as they possibly can. There is very little time for an employee to even think of being lazy and not wanting to work since the faster they produce the more money they are paid. Although piecework pay can be great it certainly has its downside. Some of the disadvantages of the piecework pay system is that when the firm is slow at production, the worker will see it in their paycheck. If there isn't enough work then employees are limited to the number of units they can produce. This can bring on a lot of stress to the employee since the paychecks are not the same as they used to be. For example in the HRM incident I know that Bob wants to use his bonus to buy his wife a new car for her birthday. If he doesn't receive the bonus then he is short money for the down payment for the car, therefore he is then left stressed and disappointed to know he does not have the full amount to put down for what he had in mind to give his wife for her

More about Hrm Incident 1 Essay

Open Document