The management of Fessil Ltd is reviewing alternative methods of remunerating its factory workers. At present all such employees are paid on a time rate basis and one suggest ion being considered is the introduction of a piecework incentive scheme with a guaranteed weekly wage .

Required:

(a) Describe TWO situat ions where piecework incentive schemes are unsuitable and the time rate method of remuneration more appropriate .

(b) Discuss the advantages and disadvantages to management of introducing and operating a piecework incentive scheme