The management of Fessil Ltd is reviewing alternative methods of remunerating its factory…

The management of Fessil Ltd is reviewing alternative methods of remunerating its factory workers. At present all such employees are paid on a time rate basis and one suggest ion being considered is the introduction of a piecework incentive scheme with a guaranteed weekly wage.

Required:

(a) Describe TWO situations where piecework incentive schemes are unsuitable and the time rate method of remuneration more appropriate.

(b) Discuss the advantages and disadvantages to management of introducing and operating a piecework incentive scheme.