Which wage system pays the employee for each unit of production at a fixed rate?

Which wage system pays the employee for each unit of production at a fixed rate?

• A. Piece Rate
• B. Permanent Assignment
• C. Performance Management System
• D. Personality Test

Answer: (A)

Pay for each unit produced at a fixed rate is the piece-rate wage system. In this setup, earnings are tied directly to output, with total pay equal to the number of units produced times the predetermined rate. This provides a straightforward, transparent way to calculate wages and strongly motivates higher production. However, it can raise concerns about quality or safety if workers focus too much on speed. The other options don’t determine pay by unit output: permanent assignment concerns where tasks or positions are allocated rather than how wages are calculated; a performance management system focuses on evaluating and guiding performance (and may influence pay later, but not via a fixed per-unit rate); a personality test assesses traits and has no role in wage computation.

Pay for each unit produced at a fixed rate is the piece-rate wage system. In this setup, earnings are tied directly to output, with total pay equal to the number of units produced times the predetermined rate. This provides a straightforward, transparent way to calculate wages and strongly motivates higher production. However, it can raise concerns about quality or safety if workers focus too much on speed. The other options don’t determine pay by unit output: permanent assignment concerns where tasks or positions are allocated rather than how wages are calculated; a performance management system focuses on evaluating and guiding performance (and may influence pay later, but not via a fixed per-unit rate); a personality test assesses traits and has no role in wage computation.