Only a few firms in the textile industry of United Malva, a developing country,
ID: 394410 • Letter: O
Question
Only a few firms in the textile industry of United Malva, a developing country, have adopted the practice of relating organizational rewards to employee performance. All of the following reasons can be attributed to the limited use of performance-reward practice EXCEPT:
such practices require that performance be accurately measured, and this is not easily accomplished.
such practices lack evidence of practical benefits to companies.
discipline is required to facilitate such practices.
union contracts often require that rewards be based on totally objective variables.
Explanation / Answer
Correct Answer:
B. such practices lack evidence of practical benefits to companies
The organizational profitability is already proved with the evidence of higher net profit, higher productivity and higher efficiency level. Hence, it cannot be said that benefits to the companies has no any practical evidence.
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