A Motivated Worker

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A Motivated Worker
Explain the advantages of a piecework pay system such as that at Ram.
In a piecework pay system, an employee gets rewarded per unit of production or per unit created. Given the appropriate working conditions, employees who produce more get paid more. Therefore, the first advantage of this pay system is that if appropriately implemented, it can be a great motivational tool since workers will tend to produce more so that they can get paid more. The other advantage of this pay system is that it allows for cost accountability. It is easy to compute the cost per production unit since this system renders it easy to factor in labor cost (LaMarco, 1). One can easily arrive at the appropriate manufacturing cost by calculating the time used up in creating the final product which is the labor used and then adding the raw materials and transportation cost used.
The third advantage is that this system is time efficient since paying an employee by their output encourages them to manage time so that they can increase their production. Moreover, this warrants less supervision since the employee is already motivated to work extra harder so that they can get that extra pay. The last and most crucial advantage of the piecework pay system is that it is production efficiency (LaMarco, 1). When employees get paid through the piecework system, they tend to develop and observe the most effective production means. They tend to develop a conferred interest in achieving the goals of the company since they achieve more and not only for the company but also for themselves.

What might be problems associated with the piecework pay system?
The piecework system has several problems. The first problem is that it reduced the quality of production. Since the focus is on quantity, then there is the high probability that the quality of the product may be wanting. This system requires dedicated workers who focus on learning their craft thoroughly and then focus on increasing their output. The other problem with this system is that it hinders production since it is practically impossible to estimate the amount of a product that can be produced within a given time frame under the system (LaMarco, 1).
Works Cited
LaMarco, Nicole. “Piece Rate Pay Advantage and Disadvantages.” Small Business – Chron.com, 5 July 2011, smallbusiness.chron.com/piece-rate-pay-advantage-disadvantages-11737.html. Accessed 29 Aug. 2018.