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Question no. 57806

What constitutes a fundamental requirement for any effective wage incentive plan_________________?

Select your answer for: What constitutes a fundamental requirement for any effective wage incentive plan_________________?
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Answer: E. all standards should be based on time studies

Explanation

A sound wage incentive plan must be anchored in objective and reliable work standards. Systematic time and motion studies provide the empirical basis required to set these standards. Without time studies, incentive rates become arbitrary and unfair to workers and management. Industrial engineers use stopwatches and digital tools to measure standard operation completion times. Allowance factors are added to normal times to account for fatigue and personal delays. Fair piece-rate or bonus systems rely entirely on these scientifically derived time measurements.

Manufacturing facilities use wage incentives to motivate employees and boost overall productivity. Accurate standards prevent labor disputes and ensure predictable labor costs per unit produced. Modern industrial management combines time studies with ergonomic assessments for optimal results. Option A describes a specific piece rate structure rather than the fundamental requirement. Option B is important for worker security but does not constitute the core standards requirement. Option C focuses on group performance rather than the foundational measurement methodology.

Subject
Engineering
Topic
—
Difficulty
medium

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