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Some companies pay production workers on piecework incentive systems; that is, the more a worker produces, the more pay is received. Other companies have group incentive systems in which the more processed by an area, the more pay everyone working in that area receives. Still other companies compensate workers for their time; workers receive an hourly wage for each hour at work regardless of the production volume. Discuss the benefits and problems of each of these pay systems for a production area where material movement is governed by a kanban system.

Operation Management, Management Studies

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