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[1657] Ernesto: piece rate= ? In my interpretation, a piece rate might look more like a payment
plan that is dictated on marginal product of labor. In a sense, it
seems as though you are justly compensated based upon the labor theory
of value. I work in a sales industry and I have seen the earning
potential of different commission structures. Hourly rates and
salaries cap ones ability to increase your real wage rate. If you are
on salary, you are paid the same whether you work 40 hours or 50
hours. This obviously would be a disincentive to work more than what
was required. Hourly rates will compensate you based upon time on
task. This seems to eliminate a real incentive to increase
productivity. Based on my experience, being paid based upon what you
produce has a better outcome than any other mechanism. |
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