Final answer:
The claim that paying employees ends the payroll and personnel cycle is false; the cycle includes many ongoing tasks beyond issuing paychecks. The discussion about employers exploiting labor by not paying workers their full worth overlooks the role of capital, technology, and profit in sustaining firms and employment.
Step-by-step explanation:
The statement that 'Paying employees for their services ends the payroll and personnel cycle' is false. The payroll and personnel cycle not only involves paying employees but also encompasses a range of other activities including recruiting, hiring, onboarding, tracking work hours, calculating wages, distributing paychecks, and managing payroll taxes and records. Simply paying the employees does not signify the end of the cycle, as maintaining and updating personnel records and ensuring compliance with employment laws are ongoing tasks that extend beyond the payment of wages.
When considering the question of whether profit-maximizing employers exploit labor, it's essential to look beyond just the difference between what workers are paid and the revenue they generate. The revenue exceeding workers' compensation contributes to covering the costs of capital, technology, and other expenses that workers rely on to perform their jobs. It also contributes to the employer's profit, which is necessary for the sustainability of the firm. Without profits, a company would not survive, which in turn would lead to the loss of jobs. Whether profits are excessive is a separate question and goes beyond the claim of exploitation solely on the basis that workers bring in more revenue than they are paid.