Question:
A factory is paying all workers the same wage regardless of output. This leads to decline in productivity. Identify the technique of Scientific management which is being ignored.
A factory is paying all workers the same wage regardless of output. This leads to decline in productivity. Identify the technique of Scientific management which is being ignored.
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Remember: If pay isn't "different" based on the "pieces" produced, the management is ignoring the Differential Piece Wage System.
Updated On: Jun 25, 2026
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Correct Answer: 4
Solution and Explanation
Step 1: Concept
F.W. Taylor introduced various techniques of Scientific Management to improve industrial efficiency and motivate workers.
Step 2: Meaning
One specific technique is designed to differentiate between efficient and inefficient workers by linking their compensation directly to their output.
Step 3: Analysis
• Paying the same wage to everyone, regardless of how much they produce, removes the financial incentive to work harder.
• Efficient workers become demotivated when they see inefficient workers earning the exact same amount.
• The technique formulated by Taylor to solve this exact problem is the "Differential Piece Wage System."
• Under this system, a higher rate is paid for output above a standard target, and a lower rate is paid for output below the target.
Step 4: Conclusion
By not linking pay to performance, the factory is ignoring the Differential Piece Wage System.
Final Answer: Differential Piece Wage System
F.W. Taylor introduced various techniques of Scientific Management to improve industrial efficiency and motivate workers.
Step 2: Meaning
One specific technique is designed to differentiate between efficient and inefficient workers by linking their compensation directly to their output.
Step 3: Analysis
• Paying the same wage to everyone, regardless of how much they produce, removes the financial incentive to work harder.
• Efficient workers become demotivated when they see inefficient workers earning the exact same amount.
• The technique formulated by Taylor to solve this exact problem is the "Differential Piece Wage System."
• Under this system, a higher rate is paid for output above a standard target, and a lower rate is paid for output below the target.
Step 4: Conclusion
By not linking pay to performance, the factory is ignoring the Differential Piece Wage System.
Final Answer: Differential Piece Wage System
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