Paying tree planters on a piece rate system fosters great motivation among planters to work more. Friendly competition nurtures among each planter to work more and subsequently earn more.
However, the biggest disadvantage of piece rate system is that the planters get busy in planting more trees without giving due importance to the quality of the planted tree. Consequently, a lot of trees die soon after their plantation.
On a flat rate system, the planters pay more time in the quality of planting trees than on the number of trees. Since they are paid on the Flat rate system their focus on planting more trees for money decreases and the focus on quality increases.
However, the disadvantage of Flat rate is the fact that it has low motivation level to work more. Since planters are not paid for the number of trees they plant; they waste much of their time talking.
Classic theories of Scientific Management: The Galt’s view of implementing flat-rate system revolves mostly around scientific management theories of motivation which require the management to offer greater monetary rewards to get greater productivity from planters while ignoring the human side of them.
Behavioral theories: The Galt’s proposed flat-rate payment system still ignores the human relations impacts, highlighted in Hawthorne studies, which are important for getting more from workers. This system of paying workers hinges upon theory “Y’” as it has been assumed that all the planters are self-motivated and energetic to put their best.
Maslow’s hierarchy of needs: the proposed flat-rate system would enable planters to meet their basic needs of shelter, food, clothes, which lies at the lowest ladder of Maslow’s hierarchy of needs. But it ignores the fact that some of the planters may be having higher level needs for self-esteem and recognition.
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Two factors theory: Galt’s proposed flat-rate system focuses on the hygiene factor of pay and ignores the motivating factors of recognition and advancement which are essential to keep them satisfcied and motivated.
Contemporary motivational theories; this proposed system of pay also applies the equity theory which says that workers make a social comparison with among themselves and evaluate their treatment with respect to others. This idea when viewing through the lens of expectancy theory, it becomes clear that overall productivity of most of the planters may decline as they will be paid equally.
Piece rate system is better than the flat rate system and with some modifications, the piece rate system would work well. The pieces rate system failed because the planters are not rewarded on the quality of planting tree but on quantity. Hence, the company should establish the scorecard system. Along with the quantity of tree planted they should also give a score on the quality of the planted tree and payment should be determined on the aggregate score of both. Clearly indicating planters that their earnings are attached to both parameters. This will motivate the quality workers. Further, the quality control checkers will be more responsible as their findings are associated with the earnings of planters. Hence, fulfilling the needs of the lumber company. The quality would be enhanced Donald’s Galt’s would be profitable owing to good quality and quantity.
For Donald Galt, the performance of planters and then quality control checkers are very important to earn good profits. Hence, he should foster a culture of high responsibility among the planters. They should be guided that plants are living organisms that nourish or die on basis of how they are planted by them. Hence, the jobs of planters are more than just planting trees. Further, the scorecard system will encourage planters to focus on quantity without compromising quality. Therefore, the competition among the planters would grow as everyone would like to score higher on each level. Further, the performance of quality control checkers should be examined again. The problems of Donald’s could be attributed to the poor performance of quality checkers. Provided, the planners know that the control is very strict and would affect their earnings, they would have done their work with greater responsibility.