What should be done? Walt should motivate his employees by resetting current piece rate. Meanwhile, he should reinforce his control system and redesign his reward system to encourage high productivity performance. Why should it be done? First, there will be less incentive for employee to increase production output when the pay differential between piece-rate and hourly paid work is not enough. That's why most of guys would not "bust ass" unless they could make at …showed first 75 words of 533 total…

…showed last 75 words of 533 total…supervising work and make sure nobody sleeps in the warehouse during working hour and nobody leave early anymore. The most important work he should be done is that job assignment should base on each employee's skill. If figure out anyone's earning less than minimum wage at piece rate, it means they may not have necessary skills to work such job and you have to let them go or find another job for them to do.