Which remuneration scheme is designed to reward productivity by paying per unit produced?

Which remuneration scheme is designed to reward productivity by paying per unit produced?

• A. Piece rate
• B. Time rate
• C. Salary
• D. Bonus

Answer: (A)

Pay schemes that reward productivity by linking pay to output. The one described pays for each unit produced, so earnings rise directly with how much is produced. This creates a clear incentive to work faster or more efficiently, provided quality stays acceptable. It contrasts with paying a fixed amount for time worked (time rate), where earnings don’t depend on how much is produced; a salary is a fixed regular payment regardless of output; and a bonus is extra pay tied to achieving targets or exceptional performance, not necessarily to every unit produced.

Pay schemes that reward productivity by linking pay to output. The one described pays for each unit produced, so earnings rise directly with how much is produced. This creates a clear incentive to work faster or more efficiently, provided quality stays acceptable. It contrasts with paying a fixed amount for time worked (time rate), where earnings don’t depend on how much is produced; a salary is a fixed regular payment regardless of output; and a bonus is extra pay tied to achieving targets or exceptional performance, not necessarily to every unit produced.