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Read the following passage and answer the following question: There has been pressure for increasing productivity and higher earning for a worker in the industry. There are several ways of increasing employees earning. Employee earning can be increased by raising the selling employees earning. Employee earnings can be increased by raising the selling prices of the firm’s products and services, reducing profits or cost of raw materials or augmenting labour productivity. However, an increasing employee earning by means other than increased labour productivity jeopardizes the firm’s competitive strength in the market. Higher prices usually mean fewer customers, reduced profit means less capital investment and low cast material mean poor product quality. But increasing labour productivity by enhancing skills and motivation creates an almost unlimited resource.
Which of the following statement can be inferred in the context of the passage?
Development of economic resources is primarily the product of market conditions
Earning can be increased by lowering the selling price of products.
Employees can be best motivated by providing financial incentives
All employees should be entitles to organizational rewards just by being employed
The correct answer is (a). This is indicated by the reflected terms of the passage. Employee earnings can be increased by raising the selling prices of the firm’s products and services, reducing profits or cost of raw materials or augmenting labour productivity. However, an increasing employee earning by means other than increased labour productivity jeopardizes the firm’s competitive strength in the market.
By: Gaurav Rana ProfileResourcesReport error
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