Final answer:
The point-system approach to compensation suggests that rewards should match the effort and costs incurred in one's work, with the correct answer being that individuals in dangerous conditions should receive more pay. Davis and Moore's theory that rewarding important work with higher income can motivate people is relevant but does not guarantee that higher wages will always result in more hours worked.
Step-by-step explanation:
The concept in the question pertains to compensation issues within an organizational context, specifically, the point-system approach for determining how individuals should be rewarded for their work efforts. Within this framework:
- Effort is considered a basis for rewarding employees. People are seen to deserve rewards commensurate with the effort they expend in their work activity.
- Compensation is another aspect, wherein individuals should be rewarded in proportion to the costs they incur in their work activity, such as working in dangerous conditions.
- Furthermore, based on the sociological theories of Davis and Moore, there's an assumption that higher levels of income, prestige, and power given for more important work can motivate individuals to work harder and put in longer hours.
Regarding the student's question, the correct answer is:
A) An individual who works in dangerous conditions should receive more compensation. This relates back to the point-system approach which argues that compensation should be in line with the effort and costs incurred in one's work activity, including the risks associated with certain working conditions.
Regarding the incentive to work, this too can be influenced by compensation systems. While higher wages could lead to more hours worked, it's not necessarily a universal truth. Some may choose to work fewer hours with higher wages (point S), while others may work the same (point R) or even more, depending on their individual preferences and circumstances.
The businessman's idea that hard work is its own reward is more an intrinsic motivation, which does not strictly align with the point-system approach focused on extrinsic rewards like monetary compensation.