Return of Piecemeal Pay/Work

Rating

Return of Piecemeal Pay/Work

"Piecemeal work" or "piecemeal pay" mean that you pay your employee for every unit (output) they complete. In other words, their salary payment is not based on the time they worked.
It's been a while since the days of the industrial revolution when workers were rewarded for their output or even by the piece. But Tamara J. Erikson predicts a possible return of non-time-based pay in the form of task-based pay. Generation Y people (borne since 1980) are good at working on specific tasks and like working on projects during irregular hours - anytime, anywhere. Erikson believes that knowledge workers also might like institutionalizing their in fact already task-oriented jobs. (source: HBR Feb 2008, p 19).

		Comments by date▼ Comments by rating Rating
		3 David Wilson Manager, Canada
	Pay for Performance Hi Barbara, in the early 1900's, individual pay rates were quite common. In the mid to late 1900's, "equal pay for work of equal value" seemed to be the trend (at least in western countries). In the 21st century, pay for performance appears to be popular. With bonuses and individual treatment for pay, I agree we have taken a step back to the past.

		3 Janice Johnson-Lorde Lecturer, Trinidad and Tobago
	Return of Piecemeal Pay? We Need a Balanced Reward System @Mohun Aujayeb: One must always remember that reward for performance includes other aspects. Leventhat (1991) suggested that management consider a total reward system that outlines WHAT as well as the HOW in order to reward employees for their contribution to achievement of organizational goals. Some contributions are intangible but valuable to the firm. So a base pay may be good, but contingent pay along with related services as well as non-financial benefits will bring a good balance to a reward system. Different people are motivated differently and thus it is important for managers to know the workforce and what is required to attract and retain their efforts and loyalty. Also market rate analysis and job evaluation processes are critical to reward/payment decisions because the value of employees extends beyond the internal value and includes the market price for their talent. Because of this, performance alone cannot determine pay.