Question

Your agency's incentive plan states that all staff receive $100 for five years of service and $200 for 10 years or more of service. The incentive is the same for everyone from the executive director to the janitorial staff. According to Community Tool Box, the plan shows consistency and thus provides a sense of fairness in the agency.

True
False

Answer 1

The agency's incentive plan is consistent across all positions and provides a sense of fairness, aligning with the Community Tool Box's understanding of fairness. True.

Step-by-step explanation:

The agency's incentive plan that awards $100 for five years of service and $200 for 10 years or more of service exhibits consistency across all positions, from the executive director to the janitorial staff. This uniformity in recognizing employee tenure contributes to a sense of fairness within the organization, as stated by the Community Tool Box. It's true that such consistency can foster a positive work environment and employee satisfaction.

However, the question's passage also highlights a scenario where a firm responds to union demands for higher wages by investing in machinery, thereby increasing productivity with fewer workers. This illustrates a different aspect of business strategy, where labor costs inform decisions on capital investment and employment. The passage suggests that while workers may benefit from higher wages and enhanced productivity through improved equipment, the trade-off could be fewer employment opportunities as a result of increased automation.