It did not link pay to performance. Workers were paid a fixed salary based on the number of hours worked. This system does not take productivity into account as workers are paid the same amount per day regardless of the quantity produced. There is no incentive to reward workers for higher productivity and quality under this payment system...
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There is no incentive to reward workers for higher productivity and quality under this payment system. Another reason why the fixed salary system did not work was that it did not take cultural differences into account. Andrew imported an American business model that suited American employees who tend to have a highly individualistic culture...
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