Question

True or false: A potential consequence of an incentive system for factory workers is that workers who are rewarded solely on output, may sacrifice the quality of a product to produce more.

Answer 1

If there is incentive system linked to quantity of output produced then workers will try to produce as much products as they can, compromising on the quality of product.

The statement is True.

Incentive system based on Quantity Produced

There are different incentive systems in a factory. A worker may get rewarded base don quantity produced.

If this is the case then the worker will try to make more products in minimum possible time which can reduce the quality of those products.

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