Asked by Carissa Galvan on Jul 27, 2024
Verified
At Steelcase, an office furniture maker, employees can earn more than their base pay if they produce more units, such as upholstering more chairs. This part of their pay is determined on units produced. Which of the following plans is being used here?
A) piece rate plan
B) completion pay plan
C) time division plan
D) standard hour plan
Piece Rate Plan
A compensation strategy where workers are paid a fixed rate for each unit of production completed, incentivizing efficiency and productivity.
Office Furniture Maker
A company or individual specialized in designing and manufacturing furniture for office environments.
Units Produced
A measure of output from a production process, indicating the total number of complete units manufactured during a specific period.
- Discern various compensation and reward schemes and their appropriate implementations.
- Discern and grasp the positive aspects of certain reward systems like piece rate and merit pay arrangements.
Verified Answer
MT
Melissa TerryJul 31, 2024
Final Answer :
A
Explanation :
The piece rate plan pays employees based on the number of units they produce, which matches the description of the pay structure at Steelcase, where employees earn more by upholstering more chairs.
Learning Objectives
- Discern various compensation and reward schemes and their appropriate implementations.
- Discern and grasp the positive aspects of certain reward systems like piece rate and merit pay arrangements.