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Explain the following term/concept. Differential Piece Rate System

Explain the following term/concept.

Differential Piece Rate System


Solution: 


Higher rates are offered to employees who complete the work more than the standard quantity under this system. On the other hand, if an employee is performing below the standard; he shall be given a lower rate of wages. This technique motivates the employees to attain higher standard performance and earn wages i.e. remuneration at a higher rate.


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