Fish Packaging in Reykjavik:

A)i) Describe the difference between time rate and piece rate payment systems.

The difference between time rate and piece-rate payment systems is that piece
rate system is a method of wage payment to workers based on the quantity of
output they have produced. However, the time rate system is defined as a method
of wage payment to workers based on time spent by them for the production of
output. This is important to know as it can tell us the importance of the different
and various ways workers are paid in business.

(ii) Explain two disadvantages and one advantage of introducing a piece rate
payment system at ​Fish Packaging Ltd

There are various advantages and disadvantages to introducing a piece rate

payment system at ​Fish Packaging Ltd. ​Some advantages include it being
time-efficient. Paying a worker by output encourages the worker to manage time.
This also warrants less supervision, as the worker is already forced to work harder.
Another advantage is that the production will be efficient. This means that workers
tend to develop in achieving the company’s goals in the most efficient way possible
because they're achieving more both for the company and for themselves. They
are working harder in order to gain their pay.

However, there come many disadvantages when it comes to introducing a piece

rate payment system. This includes insufficient rest breaks during the workday.
Because workers have to work really hard to earn their pay, taking breaks is very
difficult. This can affect the outcome and sufficiency of their work. Another
disadvantage is that this system focuses on the quality, so the output of the quality
may suffer. It requires dedicated employees who are determined to learn their craft
thoroughly and then to increase the output. However, it can be difficult to work at a
rapid pace over a long duration. This can mean that employees may continue to
work at a rapid pace but the amount of hard work they put in may not be equivalent
to how much these workers get paid.

B) Explain two external factors that could influence ​Fish Packaging Ltd.

There come many external factors that could influence ​Fish Packaging Ltd.​ This
includes economic and political external factors. The economic factor plays a major
 role in this company. It can cause inflation and unemployment to many workers
because of the lack of money that is being invested in the company.
Another external factor includes environmental issues. Because of poor weather, it
had led to local fishing boats fishing less, so workers were staying home more
often. This can affect the salary and payment of workers because they are not
going to work constantly. The weather and environment can also affect the sales of
products and growing interest in the company.

C) Using appropriate motivation theory, evaluate possible changes the management of

Fish Packaging Ltd c​ ould introduce to improve the motivation of the workforce.

There are many possible changes to the management of ​Fish Packaging Ltd​ that
could be introduced to improve the motivation of the workforce. This includes
offering flexible working arrangements. It can provide an opportunity for staff to
engage in volunteer work. This can offer not only a nice break from the office but
also provides the added benefit of increased morale through “altruistic pursuits.”
Another possible change to management is to offer recognition to workers who
have worked really hard. These rewards can be designed to show the workers the
appreciation for their hard work which can motivate them to work harder and
better. Finally, a possible change can be an increase in their salary. This can
influence and motivate workers to work as best as possible. This can also affect
the outcome performance of the workers and the qualities they can bring into the
company. Democratic leadership should also be implemented to this company. It
can allow workers to have day-to-day decision making. It can provide the important
necessities that these workers need such as clothes and food. These possible
changes can help the company persevere in the near future​.