Employees get incentives based on units number they have been able to produce within a period and Taylor is the pioneer of this approach. The approach has been described in detail and name of the title is a humane democracy. Piece work schemes have not been getting a detailed study along with a decrease in employees who are getting piecework benefits. Surveys were done under annual earnings still show that some method of piece work method is done.
100% completely piecework scheme is not possible because external factors like a failure in a machine, a gap that can occur in materials supply all would affect the final output. These factors are not related directly to employee work. The minimum time required for completing a project is calculated. If materials are not given on time, or any other external factors occur, this method will surely fail.
Engineer under works study would measure the time required and would also decide how efficiently work should be carried out. Then the concept of standard time is calculated, and this method has been found to be useful only when employees are on short time operations under manual. The output level would vary between each employee involved, and there would be skill sets and application mindset that would come into play.
Employees would have to take into consideration another factor, and that is product demand. This demand, if it slides down, would have to mean that excess goods would have to be stored. There are cases in which bonus of highly performing individuals are shared equally among employees. There would be cases of steady production also.
Day work scheme is used by many to overcome the deficiency that is perceived in incentive schemes. A fixed amount is agreed to be paid to every employee. A condition is that they would work a fixed amount of time. This scheme is in stark contrast to work that one can do maximum within a fixed amount of time. Stable pay may also make a worker work on specified lines only. The norm would usually be fixed only after consultation with trade union members. Management would have a greater say under this method.
The team was working or group working is promoted by companies. They insist on finding group performance within a set of time. This would pressure workers more if jobs are not dependent on each other. There would be chances of conflicts arising and this can affect industrial performance. Management would not have a say on this level of activity, and the control lies with production. They have to decide the level of output and the money on hands would determine that level.
Plant wide scheme under bonus is another incentive level. In this, all workers contribute to the output .The bonus would be shared with workers on a formula basis. Management feels that this system can be beneficial because the system would be taking into consideration only when process ends rather than taking at different levels. The variants like shortage of raw material, workers unrest would not matter. Changes like workers payment would be discussed with management, and collective decisions are taken by management and employees together. There would not be any provision for measuring individual performance under this scheme.
There are sales commission schemes usually these types of schemes would not fall under intense scrutiny, and this scheme is always related to business targets that have been able to achieve.