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Hm, theres some merit to that. I can see definite applications in the manufacturing (and similar) industries where ones work is quantifiable, traceable and typically transparent. Employee X was responsible for putting these parts on in this time frame or head of department was to perform these operations to these goals..etc...
I'm not so sure how well that would work in more research and theoretical type of jobs. Cutting someone's pay down because they haven't cured the disease or come up with the solution....
Then you've always (and i think this is really independent of pay system) the people who decide just what qualifies as a factor in determining pay (time/quantity of products)..classic "who monitors the monitors"
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