Final answer:
Job enlargement indeed leads to an increase in skill variety as it involves increasing the number of tasks performed by an employee, thus exposing them to new competencies and a broader range of activities.
Step-by-step explanation:
Job enlargement refers to increasing the number of different tasks that an employee performs within an organization. The statement 'Job enlargement increases skill variety' is True. By expanding the range of job activities, employees are likely to experience an increase in skill variety because they learn new competencies and perform a wider range of tasks. This contrasts with job specialization, where tasks are narrowed, and workers become highly proficient at performing a limited number of activities. Thus, job enlargement can lead to multi-skilling and a more versatile workforce. However, it's important to note that increased skill variety does not necessarily mean an increase in job satisfaction or productivity, as the quality of the job design and other motivational factors also play significant roles.