Is performance-based pay effective? why or why not? how can performance-based pay systems be better designed to ensure optimal results?

Yes, performance based pay is effective.

Performance based pay is generally piece rate or rate per piece, as in this the labor is paid on the basis of number of units produced as, for each unit there is a defined rate, also if a worker performs exceptionally well and meets all his targets along with, meeting the standards they are provided bonus.

This system is already designed to meet the requirements. Further following are the details how the system can be better designed for meeting the optimal results.

Controls on usage of equipment,

Control on wastage,

Control on the quality checks of the product before payment of wages.

These things help to reach optimal results through any kind of wages.

answer; measurable outcome;

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