In this article, the piece-rate or piecework plan was being recommended more than any other incentive for industries which dealt with production, assembly or any type of measurable output. It is commonly argued that piece-rate pay is a superior incentive device whereas straight salary provides no incentives. While this is true, the piece-rate plan presents a degree of risk as the quality of production may decrease. Other forms of incentive plans are available and may be more appropriate in certain settings. Hourly and Managerial Workers Bonuses and standard hour plans are available for implementation with hourly workers.
Bonuses add income in addition to the basic wage.
Its advantage for employees is to provide extra pay for extra effort. It does not push the employee to rush through his or her work as quick as possible. If effort is increased, it can be assumed that quality should increase as well. One major benefit of bonuses is that they may be allotted to groups or teams as well as individuals. Implementing the use of teams, an organization may benefit with increased employee participation, motivation and contribution as well as the creation of a team culture.