In what way did Scientific Management affect wage systems?

Scientific Management, developed by Frederick W. Taylor in the early 20th century, placed a strong emphasis on efficiency and productivity in the workplace. One of its key principles was to align employee incentives with their output. This theory advocated for performance-based pay systems that rewarded workers based on the amount of work they produced.

The piece-rate pay system emerged as a direct application of this principle. Under this model, workers would earn a certain amount for each unit they produced, thereby encouraging them to maximize their output. By directly linking compensation to productivity, employers could expect increased efficiency and a higher level of performance from employees, which in turn could lead to overall organizational success.

This approach was revolutionary for its time, as it shifted the focus from traditional hourly wages to a more dynamic system that considered the individual contributions of workers. It helped drive the idea that economic incentives could motivate better performance and productivity, fostering a competitive environment among workers and aligning their goals with the company's objectives.