A business is at present paying its workers by the hour. Although management accepts that the workers already do their utmost and cannot increase their effort any further, the business chooses to move to a piece-rate method of remuneration in which each employee’s pay is determined by the amount they produce. Why could this new remuneration method lead to a marked rise in labour productivity?
- AIt will dispense with the need for management to monitor the actions of its employees.
- BIt will increase the losses that workers will incur if they are dismissed for not working hard enough.
- CIt will lead to the recruitment and retention of more highly talented workers.
- DIt will strengthen the incentives for workers to increase their earnings.