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Meaning of piece rate

 

 

 

Piece rate

 

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Business glossary

 

Meaning of term piece rate :

 

Piece rate is a payment system where employees are paid according to how much they produce. They are paid an amount per unit produced, the argument being that this will motivate them to work harder. However, the system has a number of disadvantages and is now used much less widely.

 

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Piece rate

 

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Meaning of term piece rate

 

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