Drop Box 2 Galt Contracting
1. What are the advantages and disadvantages of paying tree planters on a piece-rate system? On a flat-rate system?
It increases friendly competition between workers to check who can plant more trees.
It offers an opportunity to university student to earn more.
Workers are more productive as it helps in reducing the socialization while working.
Earning rate of an individual worker goes up if he/she is ready to put an effort that means the more efforts they put, the more they can earn.
Workers focus more on quantity over quality as they can earn more money depending on the number of trees planted.
It requires more attention from Galt and his checker team as many trees can be improperly planted.
Planters are working for very long time and skip their lunch and other breaks to increase the plant count under their belt.
Piece-rate is not fixed; it depends on terrain and kind of trees that is being planted which makes it unfair for some workers.
This system allows planters to take more time and care while planting trees that leads to improved quality of trees planted.
Flat-rate system offers fixed amount to each worker which is fairer for all planters.
This could lead to more jobs for Galt with lumber companies as workers focus on quality of work.
Planters take more breaks which can lead to reduced productivity.
Workers can earn fewer wages as compared to piece-rate system. (Philips, 2015)
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2. Review the motivation theories in chapter 10. What does each of those theories say (or imply) about Galt’s idea of dropping the piece-rate system and paying planters a flat-rate for each day of work?
Classical theory of motivation and scientific management:
This theory states that workers are motivated by the amount of money being paid for their work. If...