Smith Corporation Case Study Summary

Decent Essays
Smith Corporation wanted to increase the company productivity, by introduce a new wage system. This system, a piece wage system, was introduced in the early 1980s to increase productivity. Each worker is paid based upon the number of pieces produced. Aworker who produced a lot of pieces will receive a higher paycheck. implementation of the new system was increased the companies productivity. each worker work hard to produce a lot of pieces, and he got higher paycheck.

The new wage system, may have negative effect to Smith Corporation. Increse the company's productivity will decrease quality of product. Each worker would work hard to produce a lot of pieces, but focus on product quality. It also wi

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