This document discusses wages and incentive systems. It describes time wage systems where workers are paid based on time spent working, regardless of output. Piece wage systems pay workers based on their actual output. An ideal wage system guarantees minimum wages, pays based on ability, and is simple, motivating, and provides regular payment. Both systems have merits like maintaining quality or motivating workers, and demerits like lacking motivation or quality. Monetary incentives include profit sharing and bonuses, while non-monetary incentives involve recognition, promotion, and welfare activities.