Final answer:
The optimal compensation system is one that indeed adds the most value to an organization, considering all costs, and can be labelled as true. Compensation systems should motivate employees and align with company goals, and while profit maximizing may appear as exploitation, it is part of ensuring a company's operational viability.
Step-by-step explanation:
The statement true or false: "The optimal compensation system is one that adds the most value to the organization, after considering all its costs," can be considered true. An effective compensation system is indeed one that maximizes value for an organization by aligning the interests of the employees with the goals of the organization, thereby motivating them to perform at their best. This system should factor in the effort and costs of the work activity, as well as the broader business considerations highlighted by social exchange theory, which suggests humans seek to maximize benefits and minimize costs in relationships.
Regarding the question of whether profit maximizing employers exploit labor, this is more nuanced. Employers typically pay workers less than the full value of their marginal product, with the difference contributing to overheads for capital, technology, and profit margin. While this might be seen as exploitation, it is also a necessary aspect of business operations that ensures the company's viability and ability to provide employment. The concept of 'excessive profits', however, is a separate issue that warrants further discussion.