1. 1. Time-rate method 2. Piece-rate method 4. Profit-sharing Advantages
Disadvantages
2. Piece-rate method
Advantages
Disadvantages
4. Profit-sharing
Advantages
Disadvantages
3. Other payment methods

2. P Time-rate method
By the time-rate計時method, workers are paid according to how much time they have worked按工作時間的長短. They may be paid by the hour, day, week or month.

3. Time-rate method
1. To the employer, it is very easy and simple to administer.
Advantages
Worker does not have to work hastily.
2. The employees can have a stable income.

4. Time-rate method
1. The workers should be supervised closely to prevent laziness. There is an additional cost of monitoring input in this case.
Disadvantages

5. Time-rate method It is unfair to hardworking and productive workers.
Disadvantages
The workers have lower incentive to work since there is no reward for doing more.

6. P Piece-rate method
By the piece-rate計件method, payments are made according to the amount生產量of goods workers have produced.

7. Piece-rate計件method 1. There is usually greater incentive to work.
1. It can save monitoring or supervision costs. If the worker is lazy, his income will be lower.
Advantages
2. This method of payment is fair to the more hard-working ones.

8. Piece-rate method
1. Workers may hurry to produce more, which may result in poor-quality work.
Disadvantages
1. Cost of monitoring output quality of the worker is needed.
2. = P.159 Table 8.4

9. P.159 3. Other payment methods
It is usual to find combinations of different payment methods.
In addition, other methods such as bonuses, commissions, fringe benefits (e.g. health insurance) and gratuities/tips are also found in wage payments.

10. P.159 3. Other payment methods
For instance, the amount of commission is based on the ability of sales people to close deals (such as real estate agents, insurance agents).
If the employees do more business, they can earn
more commission.

11. P.159 3. Other payment methods
Commission is suitable for work where the quality and quantity is difficult to monitor (e.g. the employees do their jobs on their own with no direct supervision).

12. P.159 3. Other payment methods
It can increase the incentive to work and increase the sales volume of the firm.
If the employees do not perform well, their commissions are low, too.
Thus, their income is unstable.

13. P.160 4. Share-rate/Profit-sharing分享利潤制
By the share-rate method, workers are allowed to share the profit利潤earned by the firm.
basic
salary
revenue
share

14. Share-rate method It promotes a sense of belonging to the firm.
This system gives the employees a greater incentive to work since their income depends partly on the firm's profit.
Advantages

15. Share-rate method
It can reduce the cost of supervising the workers and monitoring their work.
Advantages
The firm can share the risk of operation with its employees.

16. Share-rate method
This system means greater risks will have to be borne by the employees.
Disadvantages
It has higher measurement costs than that of the time-rate method.

17. Concept Practice
Guided essay
Real World Example
Multimedia Showroom