Making Meaning of the Piecework System

Piecework is often considered a means to enhance performance in construction. Unlike a fixed hourly wage, workers are paid based on units produced or tasks performed, and at first glance, the relationship between piecework and performance might seem linear. However, the piecework system can be considered both a fieldlevel construct negotiated by professional associations and trade unions, and an organisational-level means for organising, conducting, and remunerating construction activities. As such, it can be understood in multiple ways depending on the perspective from which the system is viewed. Drawing on insights from neoinstitutional theory and organisational culture theory, the purpose of this study is to establish a multi-level understanding of the piecework system, considering both institutional and cultural factors. The empirical material is based on ethnographic data collected in a construction company division that manufactures prefabricated units. The study adds to construction management research with new insights into how meanings about the piecework system are mutually shaped by prevailing notions in the organisational field as well as the organisational culture. It also explains why these are difficult to reconcile in practice.