The correct answer is: D. None of these
A piece rate system is a payment method in which workers are paid a fixed amount for each unit of work they produce. A time wage system is a payment method in which workers are paid a fixed amount for each hour they work.
Both piece rate and time wage systems can be effective in motivating workers to produce high-quality work. However, neither system is perfect.
A piece rate system can lead to workers producing low-quality work if they are more concerned with producing a high quantity of work than with producing high-quality work.
A time wage system can lead to workers producing low-quality work if they are not motivated to produce a high quantity of work.
The best payment system for motivating workers to produce high-quality work is a system that combines elements of both piece rate and time wage systems. This type of system is known as a merit pay system.
A merit pay system is a payment system in which workers are paid a base salary plus a bonus based on their performance. This type of system can motivate workers to produce high-quality work because it rewards them for both quantity and quality of work.
In conclusion, none of the options (piece rate system, time wage system, or both) is the most suitable when quality of work is of prime importance. The best payment system for motivating workers to produce high-quality work is a merit pay system.