Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Principles of Management

Question:
Assertion: Differential piece wage system is used to motivate both the efficient employees as well as inefficient workers.

Reasoning: In differential wage system, increase in efficiency is correlated with an increase in wage rate..
Options:
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Both Assertion (A) and reasoning (R) are correct and but R is not the correct explanation of A.
Assertion (A) is true but Reasoning (R) is not correct.
Assertion (A) is not true but Reasoning (R) is correct.
Correct Answer:
Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Explanation:
Differential Piece Wage System was introduced by Taylor to reward efficient workers. So he introduced different rate of wage payment for those who performed above standard and for those who performed below standard. This differential wage system acts as a motivation for both efficient as well as inefficient workers.