Question

A firm that finds it extremely costly to monitor the performance of each worker will adopt a payment system that pays its workers

A) with piece rates.

B) with incentive pay.

C) with efficient wage

D) with bonuses.

E) with time rates.

Answer 1

Answer -
Option (E) - With time rates is correct.
Explanation - Time rate system is most economical in nature which requires less monitoring expenses and preferred by trade unions.In this system payment of workers are dependent upon the time they have worked in factory. It doesn't require product details as it is based on time for work and not based on quantity of output produced by workers.The wage rates are fixed on time basis like weekly, monthly,daily according to the different conditions and methods of factories.