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pieceworka system of PAY in which an individual's WAGE is related to his or her output. In some cases payments are based entirely on the volume of output (for example fruit picking), in others employees receive a ‘floor’ wage supplemented by additional payments proportional to the value of the time saved where output is achieved in less than the time allotted. The latter relies on the calculation of standard times to perform given tasks and hence usually makes extensive use of WORK MEASUREMENT. In the past, piecework has often given rise to INDUSTRIAL RELATIONS difficulties, especially when workers are unable to achieve normal expected bonuses because of factors outside their control, for example non-availability of stock.
Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson
pieceworka system of PAY in which an individual's WAGE is related to his or her output. In some industries this type of ‘payment by results’ system is used because of its potentially beneficial impact upon worker motivation and PRODUCTIVITY; other industries make little use of it because of their particular difficulties in determining appropriate piece-rates per unit of output.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005