Q.State two advantages and two limitations of the Time Rate Wage system.

Time Rate guarantees income security and protects quality, but gives no direct incentive for higher output.

Because wages depend only on time spent, a worker's earnings are unaffected by factors beyond their control (a machine slow-down), and there is no pressure to rush and compromise quality. But equally, because pay does not vary with output, an efficient and an inefficient worker are paid the same, and close supervis …

Advantages of Time Rate Wage:

1. Income security — a worker's earnings are unaffected by factors genuinely outside their control (e.g. a machine breakdown, a material shortage), since wages depend only on time spent, not on output actually achieved.
2. No pressure to sacrifice quality for speed — since pay does not depend on the number of units produced, a worker has no incentive to rush and compromise workmanship, making the system well suited to quality-critical or precision work.

Limitations of Time Rate Wage:

1. No direct incentive to increase output or efficiency — an efficient worker and an inefficient worker performing the same job for the same hours earn identically, which can demotivate the more capable worker over time. …

Students sometimes list 'simplicity of computation' as the ONLY advantage and 'demotivation' as the only limitation, missing the equally examinable points about quality protection (advantage) and the need for supervision (limita …