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Q. Explain Straight piece work method ?
Straight piece work method is the simplest, oldest, and the most commonly used method. Here, the rate unit of the output is fixed, and the total earnings of a worker are arrived at by multiplying the total unit (measured in terms of units) by the rate per unit. Obviously, earning of the worker directly depend upon his / her performance. For example, if the rate per unit is 10 paisa and the total output of an employee is 100 units, his or her earning will be 100 * 0.10 = Rs. 10. Extending the logic of the price rate system, a worker has to go without wages if he or she fails to run out the required goods. For this reason, the system is modified in one respect the worker's time rate is guaranteed. The time rate is usually at a level which will yield earning below the expected average earning on piece work in the average conditions. It is designed to protect the worker against unduly low earning due to cause beyond his / her control.
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