Advantages of time rate wage system
- It is easy to understand and calculate by both parties that is the employer and the employees for example 200,000/= per month.
- It can be applied where output cannot be easily measured quantitatively for example the services of a doctor, teacher
- A worker is assured of a regular and defined payment even in case of absence from duty. This enables the worker to plan effectively.
- It leads to high quality work. This is because employees are motivated by the regular payment.
- It reduces income inequalities among workers in the same firm. This is because all the workers are paid a uniform wage basing on the number of hours worked not the amount of work done.
- It is suitable for organizations where team work is emphasized as opposed to individual effort.
- employers and employees can easily agree on working condition
CATEGORIES Economics
TAGS Dr. Bbosa Science
