Direct piecework wage system. What does piecework wages mean according to the labor code?

Piecework wage- This clear and very profitable option relationship between the employee and the company. And for the employer one of the best staff motivation tools. Our article will tell you what this concept means, what the advantage of this scheme is and what types of piecework payment there are.

When there is no permanent salary, is this a piecework form of payment or not?

Piece system wages always presupposes the existence of a relationship fixed in the labor/collective agreement between the volume of products produced by the employee or work performed and the amount of his wages. In other words, if your wages are calculated in proportion to the products produced - this is a piecework salary.

Her fundamental differences are the availability of production standards per unit of time (or staffing unit) and piece rates per unit of output. Wages are determined as the quantity of products produced multiplied by the unit price.

Throughout the world, this remuneration system is recognized as one of the most flexible tools for motivating staff. Besides, piecework wages are a way to reduce an enterprise’s labor costs if its activities are seasonal.

Along with ease of calculation piecework wages (this is and a calculation that is understandable for the employee, and ease of checking the correctness of the accrued payment), the piecework wage system offers several types of accrual. All of them are based on taking into account the results of the employee’s work and differ from each other only in that they offer options for implementing this system in different situations.

Types of piecework payment systems (piecework-bonus, piecework-progressive, piecework

There are many different types of piecework wages. Previously, we looked at the simplest option: when you can easily measure the volume of production or work produced by one worker ( individual standards and prices) or by a team (collective norms and prices). This is piecework wages with direct prices.

But there are also indirect prices and an indirect piecework wage system. This labor system is established for workers involved in the production process, but not directly involved in the creation of products. These could be, for example, technicians or workers involved in the repair of work equipment, that is, those on whose work the volume of production depends, but not directly.

Both direct and indirect piecework wage systems may involve bonuses for workers producing products for exceeding production standards or plans. This is a piece-rate wage system.. To the benefits piecework wages this condition adds a vested interest in increasing output beyond the norm.

The piece-rate system is another option for stimulating workers to increase productivity. For those products that are produced within the established standards, the established price is applied, and for products produced in excess of the standards, an increased price is applied.

The lump sum system of remuneration also refers to piecework, however, it does not have standards and unit prices: payment is established for a certain amount of work, after completing which the employee will receive payment.

Thus, there are quite a lot of types of piecework wages, and the payment received by workers for any of them is this is piecework wages.

The practical use by an organization of the chosen remuneration system is determined by many factors, but, first of all, it depends on whether the specified payment for work will be piecework or time-based. The latter is already common in our country, but nowadays organizations are increasingly using piecework wages.

The interests of the employer in the piecework system are well taken into account, because the employee is interested in improving his own performance, and there is practically no need to check his work. If an employee for any reason reduces output or productivity, then he will be the first to feel the Negative consequences such actions, because the salary will be significantly lower than expected.

Definition and scope

A piece-rate form of wages is a form of remuneration where the worker receives
remuneration in accordance with the quantity and quality of products produced or work performed.

Usage This approach to remuneration is perfect for those enterprises where where it guarantees an increase in employee productivity.

A piecework wage system for employees can be used if the result of work can only be measured quantitatively, by the volume of work performed: the number of products manufactured or services provided.

Typically, this system is used to calculate wages for workers in production organizations, in machine tool and mechanical repair shops, in some loading and unloading, transport, etc.

Or, for example, translators also receive payment for their work on a piece-rate basis: either for each translated text, or for a certain number of words or letters.

Varieties

Labor remuneration calculated “per quantity” can be direct, piecework-bonus, indirectly piecework, piecework-progressive, chord and
mixed (time-piece)
:

  1. In the first case, payment is made according to a pre-agreed volume of work, for which fixed prices are also provided.
  2. In the second case, the employee receives a pay bonus for exceeding the plan. And the more he overfulfills, the more he earns.

With a piece-rate bonus payment system, the employee receives a bonus if the plan is exceeded.

Increasingly in last years enterprises use a piece-rate and bonus payment system to motivate their employees, which, in turn, is also divided into individual and collective.

Personal piece-rate wage system - the earnings of any employee are predetermined by the results of his personal work, which are manifested in the volume of products (parts) produced by the worker or actions performed by him over a certain time.

Collective piece-rate wage system - wages for workers are calculated in relation to the amount of labor (amount of production) done by the production team. This type is the most effective, and specifically, carrying out general production tasks requires the one-time collective efforts of a brigade of mercenaries.

Chord system - piecework wages are calculated for the execution of the assigned amount of work (chord task), and not personal work. The amount of earnings according to the chord line is predetermined on the basis of calculation, which takes into account time standards (production) and prices for types of work.

Indirect piecework system - here the salary does not depend on one’s own productivity. In this system payment depends on performance work of other employees. This can be used to finance, for example, plant adjusters, road transport workers, and truck crane operators of overhead cranes, provided it is agreed that the movement of goods on the site is a technological operation.

For a mercenary, the advantages of such payment for his work are interconnected with the fact that he has a real opportunity to increase his salary by performing the maximum amount of work and increasing productivity. In addition, virtually anyone can get a job with piecework wages, regardless of their reputation, health status and documents.

Calculation of piecework wages

Payment of such wages comes from piece rates, which are set for products and from the volume of products produced. The foreman or other worker keeps records of all work. Documents for settlements are acts of acceptance of work performed, orders for piece work, and so on. All documents are created by the organization itself.

Basically, the piece rates that are assigned to manufactured products do not change, so the mercenary’s salary is calculated as the product of the piece rate and the number of products made.

In conclusion, I would like to add: when paying piecework, you need to keep in mind that the increase in the productivity of pieceworkers is caused not only by their personal efforts, an increase in qualifications and an increase in their capabilities. The state of his workplace also has a huge impact - his general technical, organizational, economic training. Therefore, before demanding that a worker fulfill high piecework plans, it does not hurt to take care of the place of his work activity.

How to automate the calculation of piecework payment? This is discussed in the video.

The remuneration system is a set of rules by which wages are calculated. It can establish a relationship between the measure of labor and remuneration for labor, or specific (salaries). Thus, there are three remuneration systems: tariff, non-tariff, mixed, and two main forms: piecework and time-based.

The conditions for remuneration of an employee are mandatory for inclusion in the employment contract by virtue of Art. 57 Labor Code of the Russian Federation.

Sample of filling out an employment contract regarding remuneration

Piece wage system

Piece wages are used when it is possible to take into account quantitative indicators of the result of labor and manage them by establishing production standards.

In order for the piece-rate wage system to operate effectively, the employer must provide conditions under which production depends entirely on the employee himself and is a decisive indicator of his work.

For example:

We believe that the employer has created safe working conditions, the equipment is in good condition, and all materials are available. The employer determined the amount of work that needs to be completed in a short time.

Salary:

The cost of an hour of work is established for different categories. The time for each operation and the rate of operations per hour are determined. Thus, the employee can work faster and earn more.

If the employer needs to increase volumes, then it is more rational to set a piece rate per unit of production. The more an employee does, the more he earns.

Thus, the employer gives the employee the opportunity to influence his earnings.

The wages of a piecework worker are calculated according to tariff rates or piece rates. Piece prices can be set both individually and for a team (group).

Depending on the method of calculating payment in the piecework wage system, there are several forms:

Form of piecework wage system

Characteristic

Application

Direct piecework

Workers are paid at piece rates for the quantity of products produced by multiplying these indicators.

It is used in enterprises where the increase in output directly depends on the employee. Can be used at enterprises aimed at expanding production. This system does not sufficiently stimulate the employee to increase production volumes.

Piece-bonus

In addition to remuneration at basic rates, the employee is also paid a bonus for exceeding production standards and absence of defects

Used when expanding production, in enterprises focused on increasing production volume

Piece-progressive

For exceeding production standards, workers are paid at increased rates

Piece-regressive

For exceeding production standards, workers are paid at reduced rates.

It is used in cases where it is unprofitable to increase production volumes when demand for manufactured products decreases.

Indirect piecework

Piece rates are set as a percentage of the main workers' earnings.

Applies to auxiliary workers whose earnings directly depend on the main workers and their implementation of the plan. Thus, a dependence is formed on the wages of an auxiliary worker on the results of his personal labor and the results of the labor of the main worker of the site he serves. For example, this type of system is installed by equipment adjusters.

Chord system

The total amount for a certain amount of work is established. The work is done by a team. Further, the distribution of this amount is made taking into account the labor participation coefficients of each worker.

Installed to reduce the time required to complete a production task.

Example 1

Individual piece rate for manufacturing 1 bolt = 5 rubles

A piecework worker produced 4,000 bolts in a month

Total monthly salary = 20,000 rubles.

Example 2

To carry out equipment repair work, a team of 10 people is involved: 1 foreman, 9 workers. The total cost of these works (according to orders) is 400,000 rubles

KTU (labor participation coefficient): foreman - 1.3; workers - 1.0

The standard time per month is 22 days. Everyone worked full hours.

Sum of KTU = 1*1.3 + 9*1.0=10.3

Foreman’s salary = 400,000: 10.3*1.3=50,485 rubles

Salary of 1 worker = 400,000: 10.3 * 1.0 = 38,835 rubles

So, from the above, the main elements of the piecework wage system are identified, without which its application is ineffective:

  1. The enterprise must have established time, service, service time, i.e. . This is necessary to determine piece rates and estimate labor costs for specific types of work or operations.
  2. The work should be differentiated by complexity. For this purpose, categories are introduced. The largest digit corresponds to more high level employee qualifications. To determine the category, ETKS and professional standards are used.
  3. Remuneration is differentiated by complexity using tariff rates, which are set per unit of time (hour, day, month) and piece rates - the amount of cash payment per unit of manufactured products (work performed).
  4. Tariff rates by category are summarized in one table called. Tariff schedules are developed for piece workers and time workers separately.

In addition to the elements of labor regulation, you need to remember about some features of the legislation, which obliges the employer to provide certain guarantees for workers with piecework wages:

  1. Wages of an employee who has worked full month and who has fulfilled the work norm should not be lower minimum size wages established federal laws and regional acts (Article , Labor Code of the Russian Federation).
  2. Interdigit difference ( Art. 150 Labor Code of the Russian Federation).

Example: An employee works as a 6th category turner, he is assigned work of a lower qualification in the 4th category. These works are charged at lower rates. By virtue of Art. 150 of the Labor Code of the Russian Federation, the employer is obliged to pay the inter-category difference, that is, to pay for these works according to the 6th category.

  1. An employee with piecework wages for non-working days holidays additional remuneration is paid ( Art. 112 Labor Code of the Russian Federation), the amount of which and the procedure for its payment are established in the collective agreement or local normative act enterprises.

Transition from one remuneration system to another

Due to the fact that the terms of remuneration are , its change is possible only in accordance with Art. 74 Labor Code of the Russian Federation. This procedure is very labor-intensive and responsible, as it may result in employees going to court. Therefore, it must be carried out in compliance with all labor legislation requirements.

The first thing you need to start with is this, which in turn entails a change in wages. One of the justification methods may be an order to change organizational or technological working conditions, which consist of changing the technology of work, changing the structure of the enterprise, changing production volumes, releasing new products, etc. At the same time, it is necessary to pay attention to the fact that the labor functions of workers remain unchanged, only the remuneration system changes.

After issuing such an order, it is necessary to notify the company’s employees about changes in the remuneration system two months before the “innovations” are put into effect. In this case, it is not necessary to wait for the expiration of the two-month period. An employee can agree to new terms of remuneration earlier. In this case, he must indicate in the notice the date from which he agrees to switch to the new wage. After this, the employer can draw up an additional agreement to the employment contract.

If an employee refuses to work under the new conditions and reflects this fact in the notice, then the employer is obliged to offer him another vacant position, incl. lower. But if the transfer is impossible due to the lack of vacant positions or the employee’s refusal from them, then he can be dismissed under clause 7 of part 1 Article 77 of the Labor Code of the Russian Federation(due to refusal to continue work due to a change in the terms of the employment contract determined by the parties) after a two-month period from the moment of familiarization with the notice. In this case, the employer is obliged to pay the employee severance pay in the amount of two weeks' average earnings.

Please note that the employee must sign the notice and write his decision (agree/disagree) in it. If the employer sends notice by email or in any other way, and does not receive the notification signed by the employee back, then it can be considered that the employee was not notified of the innovations. This may be the basis for going to court, the decision of which in this case will be in favor of the employee.

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I'm sure that for the majority Russian entrepreneurs The question: deal or no deal is not worth it. Of course it's a deal! In a society where money rules, it cannot be any other way. Money is the most powerful incentive. And if you create a direct relationship: the result is money, then you will get the most effective enterprise model.

Indeed, piecework wages have many advantages for the enterprise:

Firstly, Every worker understands that the more he works, the higher his salary. Therefore, if he needs money, and, as we know, there is never too much money, he will literally “die” at the machine, only in order to get as much of this coveted material well-being as possible. And natural human greed, fueled, or one might even say inflamed, by the media, pushes the employee more than ever to give, as they say, “to the fullest.”

Secondly, the deal allows the employer to completely protect itself from lazy or unproductive workers. If an employee does nothing, then he earns nothing. He doesn't have to pay for work he didn't do. And the share of wages in the cost of a unit of production is always constant. The risk of paying for employee idleness is reduced to zero - the employer pays only for those employee actions that led to the desired result.

Third, the transaction, as a rule, is accompanied by full financial responsibility of the employee for the results of his work. In other words, all risks of possible product defects are borne by the employee. Through a system of fines, it fully compensates the employer for all losses incurred by the latter due to the employee’s negligence. And this is fair, although not always legal.

Fourthly, full material liability The employee forces him to treat raw materials and materials more rationally, monitor the consumption of materials and fall into the established norms of technological waste. The employer, in turn, can, and, as a rule, takes advantage of this, to save on the quality of the material. Making candy out of “shit” is the main responsibility of a transaction worker.

Fifthly, the employee treats the tools and equipment entrusted to him more carefully, since the maximum amount of work that the employee can “squeeze” out of them depends on their condition. Often, an employee is forced to make or buy various devices and tools at his own expense to increase his productivity. For the employer, this is another cost saving item.

At sixth, since the employee himself is interested in as much work as possible, the deal allows the employer to reduce the costs of maintaining the structures that control the employee. Indeed, why force an employee to do more and constantly monitor him so that he does not shirk from work, if he himself is eager to “go into battle” - just have time to “throw” work at him. In addition, the transaction leads to the creation at the enterprise of an internal, hyper-competitive environment among employees for the most profitable work, which further encourages them to do as quickly, more and better as possible, and creates additional leverage for the employer to manage, or rather manipulate, employees. What else does an employer need?

Seventh, the transaction implies almost no costs on the part of the employer for training and advanced training of employees. They pay more for skilled labor, and since workers strive for more earnings, they themselves are interested in improving their skills. “Training,” as a rule, occurs by observing older comrades and getting your own “bumps,” since no one will teach themselves to their competitors. Here, as in natural selection, – the strongest survive, and this leads to an increase in the overall efficiency of the enterprise.

And finally, workers who go to work solely for money view it as inevitable, wasted time, and an obligatory payment for subsequent pleasures. Work time is not associated with a full life, therefore their requirements for the surrounding reality during this period are minimal. They don't need to create additional comfortable conditions for work. You can get by with the minimum necessary set of essential amenities. They are of little interest in the “working” atmosphere in the team, since everyone is for himself. Yes and yours workplace everyone arranges it independently - there is no time for ergonomics, the main thing is that it allows for maximum volume. With a minimum of costs - maximum results.

Complete advantages for both the employer and the employee. But while listing the advantages, one cannot fail to note the disadvantages. When there is a transaction, there is only one - it cannot always be applied.

So, let's summarize. The deal is:

  • strong motivation and, consequently, high productivity;
  • high quality of products without additional costs for its maintenance;
  • reducing to zero the risks of increasing product costs due to laziness and carelessness individual workers;
  • reducing costs for monitoring productivity and material consumption; no costs for training and creating a comfortable environment for workers.

This is what most Russian entrepreneurs think. But…

If you have worked in real operating enterprises with their problems, achievements, successes and failures, you must have noticed that all the above arguments often work exactly the opposite.

Let me make a reservation right away that piecework wages can be justified if the following conditions: the work is low-skilled, the number of operations is limited, the work is temporary, or the employer is not concerned about high staff turnover. If all three conditions have met at your enterprise, then you can use the deal. But even in this case, this will not be the most effective solution.

The only thing that justifies managers who rely on piecework wages is their inability or unwillingness to use stronger, but at the same time more troublesome and complex, methods of motivating their employees.

But first things first.

We all dream of living well, we all strive for material well-being, and for this, as we know, we need money. Much money. So much money. And from all sides we are constantly being told and proven that success and wealth are two inseparable things. And happiness, which, as you know, even though you can’t buy it with money, is somehow not so bright without a material base, and is short-lived. About “paradise in a hut” - this is not about us at all. How can one not resist and not become greedy, self-interested, mercantile, in a good way of these words. This is a very strong motivation. This is exactly what any manager needs from his employees.

Everything would be fine, but there is one “but” that spoils everything.

All people are lazy. All. There is nothing offensive here. This is the law of nature. Laziness is the engine of progress.

Hard work and even workaholism are one of the manifestations of the multifaceted properties of laziness: either unsettled personal life and an attempt to escape from difficult everyday problems(instead of their resolution) into the illusion of full employment in less problematic work, which occurs most often. Or a desire, even an obsession, to get rid of the piled-up work as soon as possible. But, as you know, work tends to “multiply” without ending. And in parallel with the first job, a second, third, etc. appears.

Thanks to laziness, each person has his own limit of value, but not consciously - at the subconscious level. And for every financially motivated person, a moment comes when the level of his material income becomes equal to his internal material needs, his internal self-esteem. At such a moment, further material motivation stops working, because... stumbles upon an insurmountable barrier of the body’s reluctance to strain once again to obtain extra material benefits.

But what about: “there is no such thing as extra money”? Can not be. Who would refuse extra money if it falls from the sky without any additional stress? But if in order to get this extra money you need to make an effort, and not a small one, then every employee will prefer to rest once again. Let me remind you that we are talking only about material motivation.

I repeat, material motivation always has a limit. Of course, over time this “ceiling” grows for each prosperous employee, and falls for the unfavorable one, but it is always there.

Moreover, often, after the employee’s income has reached the limit of its value, material well-being has reverse effect: an employee with increased needs wants to receive more income for the same work than before. And not getting what he wants, he remains dissatisfied. “No matter how much you feed the wolf, he still looks into the forest.” This ends with his dismissal and transfer to another enterprise.

Piece-rate wages produce a noticeable effect only at the first moment of its implementation - productivity actually increases, sometimes significantly. But a person quickly gets used to everything, so what follows is stagnation and a drop in performance. And additional stimulants are required: deductions, fines or even bonuses, which are not always effective.

Of course, in a transaction, theoretically, the wage fund should directly depend on the volume of products produced. But in practice everything is not so simple.

Firstly, At any enterprise there are so-called office workers and management personnel who are paid on time or on salaries, and their work, although very important, is, in general, not directly tied to the volume of products produced by the enterprise.

Secondly, In the production itself there are a number of workers, mainly service personnel, who are not directly involved in the manufacture of products. Their work increases the costs of the enterprise without adding value to the product. Therefore, no matter how paradoxical it may sound, the less they work, the more profitable it is for the enterprise. And if they are on a deal, they will always find something to do with themselves, causing additional harm to the company.

Third, It’s impossible to digitize everything, unless, of course, your company is digging a trench “from sunrise to fence.” There are always jobs, I would even say, there are always jobs, which for one reason or another are not included in the list of approved tariffs. And then the question arises: how to pay for them? This is usually achieved through negotiations with employees, searching for compromises, agreements on some ceiling amounts (i.e. taken “out of thin air”), often tied not to the results of the work performed, but to the time of its completion, because no one knows its exact volume.

Fourthly, Any new employee, no matter how highly qualified he is, cannot immediately and painlessly “merge” into his new working conditions. Each enterprise has its own characteristics, and it takes time to adapt to them. Therefore, for newly hired employees there is a period of entry into new company(I’m not even talking about the probationary period), during which this employee, as a rule, is determined on a time-based wage, because at first his productivity will be extremely low, he will not earn anything and will simply quit after the first days of work. But even this period, which usually lasts one or two months, is often not sufficient to achieve the desired productivity. Moreover, no one teaches him or instructs him, because... all the “old” employees are on a deal, and there is no reason for them to waste their time on a newbie. Moreover, he is their competitor (but more on that below). And the new employee himself is forced to “flounder” in his problems and try to “swim out” on his own. Usually, a new employee quits immediately after receiving his first salary, calculated based on piecework, or a little earlier, having estimated what he can get in the end. Therefore, in enterprises with piecework wages there is a very high turnover among newly hired workers, and not only - simply, a high turnover.

Full financial liability, fines, and deductions are also an illusion of insurance for managers against unscrupulous employees, not to mention the illegality of such methods. Firstly, the employee’s salary is only in in rare cases can cover the damage caused by the manufacture of low-quality products. Secondly, any employee, and especially a good one, must have the right to make a mistake, so he will endure the extortions, considering them unfair, as long as his salary with these fines fits into his cost limit; in fact, the fines are already taken into account in his tariffs. As soon as the manager crosses this line, and this will definitely happen sooner or later, and the employee receives significantly less than he expected, he will either quit immediately or refuse to do the job next time. difficult work with unpredictable risks. In any case, the company will lose a good employee for certain type works

In general, with piecework wages financial punishment practically doesn't work. An employee is connected to the company in which he works only with money, and when the manager breaks this thin thread, depriving him of his only attachment, the employee simply leaves for another company. Only the force of inertia and that very “known evil” in this company and the unknown in another forces individual workers to remain faithful to their enterprise. But this is rather an exception.

It is obvious that an employee who only needs money from the company, always money and nothing but money, is only interested in producing as much product as possible with the least amount of effort, the volume of which directly determines his earnings. This is achieved by constant violation of technology and exorbitant operation of equipment. He is only interested in the quality of the manufactured product until it is checked by the quality control department or transferred to another site; what happens next with his product is absolutely not important to the employee. And no punishment or convincing the employee that, for example, the condition of the equipment depends on its production, and, consequently, earnings, can change the situation. He is simply not paid directly for this work. He is paid only for the external result, with little control over the process of obtaining this result and, as a result, without representing the consequences either for the result itself or for the objects involved in this process. For an employee, only a limited list of operations with established tariffs is valuable, for which he goes to work. This list does not include maintenance of equipment, adherence to technology, improvement of product quality, or careful handling of company property.

Another problem with piecework wages is discipline. Because the employee seems to be interested in high productivity, it is believed that there is no special need to customize him. He must push himself. But, besides the fact that all workers are lazy, as we have already found out, few of them are inclined to self-discipline, and if you give them free rein, we will get a long build-up at the beginning of the month and a rush at the end before the closing of the reporting period for payroll calculation. It is clear that no planning, rhythm of production, high productivity, product quality, careful attitude There is no need to talk about equipment and tools in such a situation. Even in a transaction, workers must be tightly managed.

But piecework wages give the worker a certain illusion of freedom. Because he is paid only for what he has done, and in this sense he does not owe the enterprise anything: if he did not do it, he did not receive it, then he believes that he has the right to determine for himself what and when he should do. And sometimes it is very difficult to overcome this situation.

In addition to the labor discipline determined by the internal rules labor regulations company, which, incl. determines the duration daily work, and the start and end time of work, and the time of breaks in work, etc., there is a concept: “production discipline”. It includes all aspects related directly to the production process: adherence to technology, fulfillment of approved deadlines and plans, etc. Every manager who counts his income must ensure that the employee completes the required amount of work within a strictly allotted working time interval . This is due not only to the company’s external obligations to its customers regarding the deadlines for fulfilling orders, which is also important, but also purely economic considerations.

The presence of an employee on the employer’s premises always has costs for the latter, even if the employee is not paid a salary. This includes cleaning the territory, security, lighting, ventilation, heating, etc., even labor protection. Therefore, a competent manager is always interested in ensuring that the employee does as much as possible in the strictly allotted time and does not overwork, even with piecework wages. I repeat, in a transaction, achieving this can sometimes be very difficult. Often, instead of properly organizing their working day and getting everything done, employees stay after working hours and go out to work on weekends. Employees are not paid for this time, but the company incurs additional expenses. Many managers are forced to put up with this or increase the number of controllers. This is another paradox: the number of managers and supervisors with piecework wages increases compared to time-based wages.

But that's not the worst thing. The transaction requires accurate recording of all technological operations performed by the employee during the accounting period and recalculation of them into his salary. And this is expensive software, and a whole staff of collectors of this information, accountants, bookkeepers, etc. In addition, with each salary payment there will definitely be 10-15% of “cheated” workers, with each of whom someone must deal. To top it all off, add to this list of “servants” of the transaction also specialists who will constantly carry out timing and change existing tariff rates or set new ones when changes technological processes. And this will definitely need to be done.

Another negative side of the deal is the fierce competition among workers within the team. Competition is only good between companies, but competition within a company is unacceptable. Some elements of competition and competition between employees are welcome, but competition should not be allowed.

The fundamental difference between “competition” and “competition”, as I mean it in the meaning of these words, is that competition presupposes victory over an opponent according to established rules and thanks to improvement own indicators, and competition allows any techniques, incl. aimed at deteriorating the opponent’s performance until his complete destruction.

Therefore, competitions in a team, and even aimed at helping those lagging behind, only strengthen the corporate spirit, improve the business climate, and help improve the skills of employees. In general, they increase the status motivation of employees.

Competition breeds enemies within the team, reduces productivity, makes management dependent on production “stars,” increases staff turnover, and deteriorates the quality of products. There are cases when workers harm each other by secretly damaging a “competitor’s” product or breaking his tools. As a result, not only the competing workers themselves suffer, but also the enterprise.

Competition arises because there is nothing uniting workers in a team; everyone is for himself. They are forced to fight, sometimes literally, for profitable orders, for new tools, for high-quality raw materials. In war, as we know, all means are good. It is also known that in war there are no casualties and destruction, and it is primarily the enterprise that suffers from this.

Business managers, most often, do not notice this competitive struggle, or pretend that they do not notice, because competition is good: the strong will survive, the weak will be strengthened. But even in a free market there are rules governing competition that limit monopolies. In an enterprise, if this is not stopped or at least not regulated, then as a result, just like in the market, everything is monopolized by a few employees, who dictate their terms to management. They are not interested in the development of new technologies at the enterprise - why would they need an extra headache, nor in improving their own qualifications - it is easier not to allow other workers with higher qualifications than them into their sphere of interests. It is very difficult to fight these, because... in order to put them in their place, you first need to have an alternative to them in case they leave, but you cannot create an alternative - they will prevent this in every possible way.

Another statement that does not require much explanation: the deal creates temporary workers. An employee motivated only by money will leave the company as soon as he believes that he will be paid more elsewhere than here. Which is what often happens.

In general, there is nothing surprising in what is described above. What you manage is what you get.

Piecework wages motivate only the volume of operations performed at a specific workplace. I repeat, the net deal is not aimed at increasing output finished products enterprises as a whole, but only for irregular bursts of activity in local production areas. As a result, the transaction always increases the production cycle and generates huge production and warehouse inventories, incl. illiquid assets. The logic here is clear: every participant in piecework wages, including not only direct performers - workers, but also teams, sections, workshops, is only interested in producing as much profitable product as possible at his workplace, without caring at all about workload and needs of cooperation neighbors. Therefore, at certain moments, when “all the stars have aligned”, and this particular workplace is fully provided with orders, raw materials and semi-finished products, and free production capacity, there is a temporary increase in productivity, and the rest of the time there is sluggish activity waiting for the missing components production process. At the same time, every workplace is simply overwhelmed with incomplete orders.

In conclusion, I want to say that piecework wages can be made more effective. To do this, it is necessary to organize the work of the enterprise so that all employees are motivated to common goals enterprises. But time-based wages are better suited for this.



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