Essay About Piece Rate Pay Plan And Furniture Builders

What Are Some Advantages of offering a Piece Rate Pay Plan to the Furniture Builders at Metropolitan Furniture?
Essay Preview: What Are Some Advantages of offering a Piece Rate Pay Plan to the Furniture Builders at Metropolitan Furniture?
Report this essay
[pic 1]CASE STUDY 5 -INDIVIDUAL OR TEAM REWARD FACILITATOR:DR. TAN FEE YEANHUMAN RESOURCE MANAGEMENT (BSMH5013)COLLEGE OF BUSINESS MANAGEMENT (COB)PREPARED BY:DENESWARY – 818369MARDIANA – 818689OLANRE – 819663IDAYU – 818958HASMIRA – 820241HUSSEIN – 818526SUBMISSION DATE:  01 NOVEMBER 2015Q1: What are some advantages of offering a piece rate pay plan to the furniture builders at metropolitan furniture?Understanding the purpose of piece rates is very much important and it leads to define its own purpose.  Piece rate is to motivate employee performance in return for a monetary reward. A simple, valid concept which is centuries old. Incentives are effective employee motivators because most people go to work for money in the first place. Incentives, piece rate, or piece rate pay systems, offer an opportunity for employees to increase their pay by their own efforts both physical and mental. Advantages of offering Piece rate pay plan are: Increased Employee motivation (hardwork): Employee will be motivated to work harder to increase his or her production in order to partake in metropolitan furniture company success. Under specified time rates may lead any benefits from higher production accrue only to the employer’s; under rearranged piece rates benefits are mostly shared by the employer and the employee. Job Satisfaction: Setting specified targets for output can result to a form of job satisfaction for employees at Metropolitan Furniture, particularly where the task placed on basically repetitive, leads to compensation level of employee. Work Efficiency: Possibly higher earnings pave the way to attract efficient works among Employees at Metropolitan Furniture , this is due to the fact that employees will tend to work more efficiently when their salary is tied to the number of furniture produced (piece rate pay plan).Less Supervision: There are less or no supervision needed because Metropolitan Furniture employees will keep working even if there are no supervisors around in order to attain high or satisfactory compensation rate.Pride in accomplishment: Employees at Metropolitan Furniture have more scope for pride in his/ her work, having to work by one own self will make employees at Metropolitan Furniture feel a sense of pride to his/her work achievement.Increased productivity and labor relations: In practice piece rate is often found that a combination of time work and piece work gives the best results in terms both of increased productivity and of labor relations. Employees at Metropolitan Furniture with high motivation and moral with the piece rate payment will definitely have increased productivity and smooth labor relations.Q2.        What are some advantages of offering a team-based incentive pay plan?        Team-based plan is a small group of employees shares a financial reward when a         specific objective is met.  Each team member receives a financial reward for the         attainment of a group goal.          Advantages of team-based pay are:-Consistency in performance quality: The workers at Metropolitan Furniture will complete pieces of the furniture set to ensure on-time delivery.  Metropolitan Furniture is known for their on-time         delivery which is their high priority. Quality of the furniture will be consistent, due to collaboration of team members.                Motivation: Employees are motivated to work together in a cooperative manner toward a common goal. Employees encourage one another, participate in brainstorming sessions and support each other in their efforts to complete given tasks. There is full utilization of collective staff knowledge and experience; encourage multi-skilling, which brings a competitive advantage for an organization. The team members will work together to achieve their target, that is on time delivery.  Collaboration and Cooperation: team based incentives encourage Collaborating and cooperation to achieve shared goals. Team based incentive pay plan make Metropolitan Furniture employees work towards organization objective of on-time delivery to clients, which is the company`s competitive advantage.