A payment by results method of paying workers, in which a standard time is set for the production of each unit and bonuses are paid related to the actual time taken. Depending on the needs of the organization, this scheme can be varied to achieve a balance between quality and speed of production; it also provides an incentive for employees. The standards were formerly set by experienced staff but more scientific attempts at classifying work units have resulted in the introduction of systematic work-study techniques. These schemes can lead to friction between employee and employer as standard times are a permanent source of conflict. See also piece rate.
Subjects: Business and Management.