Multiple choice

Which one of the following statements is not correct regarding time rate system?

  1. Workers and trade unions accept and support time rate system.

  2. It gives guarantee of certain minimum wage payment to every worker.

  3. Time rate system avoids heartburning and quarrels among the workers.

  4. In the time rate system, there is a positive encouragement to workers to improve their efficiency/performance.

  5. Time rate payment is convenient where production process is continuous and integrated.
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

This statement is not correct as in time rate system, wage rate is uniform to all workers, efficient and inefficient. So, there is no positive encouragement to workers to improve their efficiency.

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