Asked by Emily Keith on May 12, 2024

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Todd's grandmother makes quilts for a New York City gallery. For each completed full-size quilt she completes and delivers to the gallery buyer, she earns $350. What payment plan is used by the gallery to pay Todd's grandmother for her work?

A) the differential piece rate plan
B) the standard hour plan
C) the merit pay plan
D) the base rate plus standard output plan
E) the straight piecework plan

Straight Piecework Plan

A compensation system where workers are paid a fixed rate for each unit produced or action completed, encouraging productivity.

Differential Piece Rate Plan

A compensation system where employees are paid based on the quantity of work produced, with different rates applied based on performance levels.

Merit Pay Plan

A compensation strategy where employees are rewarded based on their performance and achievements, encouraging higher levels of effort and productivity.

  • Determine the various forms of pay-for-performance structures and evaluate their appropriateness for diverse organizational settings.
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Xenia PitalugaMay 15, 2024
Final Answer :
E
Explanation :
The straight piecework plan pays workers based on the number of completed pieces they produce. In this case, Todd's grandmother is paid a set amount of $350 for each completed quilt she delivers to the gallery buyer, which aligns with the straight piecework plan.