Asked by Aracelli Garcia on May 02, 2024

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Chris, the CEO of an automobile company, believes that profit sharing has increased the productivity of his organization. He feels that an incentive plan motivates employees to be more productive. Which statement strengthens Chris' argument?

A) In a profit-sharing plan, employees are the owners of the organization.
B) Profit sharing helps employees to cooperate and focus on organizational interests.
C) Profit sharing makes employees workaholics.
D) In profit sharing, employees contribute their base salary for the development of the organization.
E) Profit sharing benefits employees even if the organization makes less profit or no profit.

Profit Sharing

A company policy where employees receive a share of the company's profits, usually allocated based on the employee's salary level and sometimes the company's performance.

Productivity

The efficiency at which an organization, or individual, can convert inputs into outputs, often measured in terms of the amount of goods or services produced per unit of input.

Incentive Plan

A structured program designed to motivate and reward employees for achieving specific performance targets.

  • Recognize the advantages of profit sharing in increasing organizational productivity.
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Simran SharmaMay 07, 2024
Final Answer :
B
Explanation :
Option B strengthens Chris' argument because it supports the idea that profit sharing incentivizes employees to work cooperatively and focus on the organization's goals, which ultimately leads to increased productivity. Option A is incorrect because profit-sharing plans do not necessarily make employees owners of the organization. Option C is incorrect because it makes a baseless assumption about the work habits of employees. Option D is incorrect because profit sharing is typically a percentage of profits, not a contribution of base salary. Option E is incorrect because profit sharing is tied to organizational profits and may not benefit employees if the organization makes no profit.