Disadvantages of Piece Rate System

  1. In the race to earn more wages by producing more, the quality of products is likely to deteriorate. So it requires strict inspection and quality control.
  2. Continuous and increased working for some days may cause fatigue and ill health to the workers.
  3. To speed up production, the machines, tools, and equipments are sometimes not handled with the care that they require, and so the workers expose themselves to accidents, besides causing loss of breakdown to the machines, equipments etc.,
  4. The inefficient workers earning less of wages start feeling jealous of other workers who earn more. This creates unhealthy atmosphere.
  5. The workers feel insecure of earning during the days of ill health, holidays, etc.
  6. This system is not useful for quality products.
The following two tabs change content below.
We, at BMS.co.in, believe in sharing knowledge and giving quality information to our BMS students. We are here to provide and update you with every details required by you BMSites! If you want to join us, please mail to [email protected]

Leave a reply

BMS.co.in is aimed at revolutionising Bachelors in Management Studies education, also known as BMS for students appearing for BMS exams across all states of India. We provide free study material, 100s of tutorials with worked examples, past papers, tips, tricks for BMS exams, we are creating a digital learning library.

Disclaimer: We are not affiliated with any university or government body in anyway.

©2020 BMS - Bachelor of Management Studies Community 

A Management Paradise Venture

Ask Us On WhatsApp

Log in with your credentials


Forgot your details?


Create Account