Lincoln Electric

Lincoln Electric - Can We (and Should We) Apply the Lincoln...

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Can We (and Should We) Apply the Lincoln Electric Method? By: Courtney M. Smith
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In a piece-rate system, like Lincoln Electric still has today, workers are literally paid by the piece rather than being paid by the hour. This is quite outdated and not often done in current times, as the plan is often look at as perverse. Employees push themselves harder and struggle more to get to the bottom dollar, and questions arise concerning health, stress, and safety levels. The theory of piece-rate pay suggests firms may be able to adjust their variable costs by altering work standards and the piece rate itself. Another argument holds that piece-rate systems can economize on the cost of monitoring worker output, that such systems are a substitute for management. Union positions on these points have supported the notion that piece-rate pay can be both a benefit and a cost to workers, depending on the cost of monitoring. It is important to look at all of the factors when considering pay plans.
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Lincoln Electric - Can We (and Should We) Apply the Lincoln...

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