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Employees in a production department may receive a basic wage or salary plus a bonus that consists of payment for each unit produced. this is called a production bonus system.
Production Bonus System: Workers in the production department may be paid a base salary or wage plus a bonus that consists of payment for each unit produced. The bonus may not be large enough to be worth the extra effort if workers don't seem to be motivated by a production bonus system. Under such a system, workers who work more quickly get compensated more, but the compensation system may not always reward high-quality work.
Businesses typically have three alternatives to think about when arranging recurrent, performance-based bonuses: bonuses determined by each person's performance. bonuses determined on a department's or business's performance. Bonuses that are not at all performance-based (e.g., a flat bonus for everyone).
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