Question

If an organization has a profit-sharing plan in which employees are able to purchase the company's stock at a discount whenever the organization makes huge profits, then this organization follows Fayol's principle of:

A. centralization.

B. discipline.

C. initiative.

D. esprit de corps.

E. remuneration of personnel.

Answer 1

The organization that allows employees to purchase stock at a discount as part of a profit-sharing plan aligns with Fayol's principle of esprit de corps, fostering unity and increased productivity.

Step-by-step explanation:

If an organization has a profit-sharing plan in which employees are able to purchase the company's stock at a discount whenever the organization makes huge profits, then this organization follows Fayol's principle of esprit de corps. This principle emphasizes unity and harmony among the workforce, which can be fostered by shared interests and profits. When employees directly benefit from the success of the business, there is typically an improvement in productivity. Profit-sharing plans and opportunities for employees to become shareholders tie their personal success to that of the company, fostering a sense of ownership and collective purpose.