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patanjali.purpose
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The basic assumption of organizational theory that rationality requires both workers and management to work for the greater benefit of the firm is severely flawed for several reasons. A classic argument of organizational theory posits that workers in a plant which produces watches would be interested in producing as many watches as possible in the least amount of time because increased productivity would mean higher profits which would then mean, in the long run, higher wages. However, this argument exhibits several serious errors. First, it presumes that higher profits will automatically lead to higher wages. History has shown that this is the case only following struggles between management and workers and does not come about as the result of the management's rational consideration. Second, proponents of this argument presume that since management assumes that there is a connection between profits and wages, the workers also share the same assumption. And yet, workers often base their demands for higher wages on their idea of a livable income rather than the profits of the firm. Third, organizational theory falsely assumes that workers will always aim to increase their individual incomes. In reality, they may prefer fewer working hours, a more relaxed work pace and higher availability of jobs in their community rather than maximizing their own individual incomes.
Which of the following, if true, would best support the author's theory about the connection between profits and wages?
A) According to a recent study, workers are more likely to strike in demand for higher wages in economies with declining profit rates and higher prices.
B) When the cost of living rises, management will increase wages accordingly.
C) According to opinion polls, a large majority of workers would agree to a pay cut to stop their firm from going bankrupt.
D) In industry X, management cut wages by 20% even after profits increased by the same amount.
E) When the cost of living rises, fewer wage struggles occur in firms with higher profit rates.
Pls explain your pick.
Which of the following, if true, would best support the author's theory about the connection between profits and wages?
A) According to a recent study, workers are more likely to strike in demand for higher wages in economies with declining profit rates and higher prices.
B) When the cost of living rises, management will increase wages accordingly.
C) According to opinion polls, a large majority of workers would agree to a pay cut to stop their firm from going bankrupt.
D) In industry X, management cut wages by 20% even after profits increased by the same amount.
E) When the cost of living rises, fewer wage struggles occur in firms with higher profit rates.
Pls explain your pick.
