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Discussion

Organisations can derive maximum advantages by

  • A.providing financial incentives to employees regardless of performance
  • B.enhancing labour productivity by increasing skills and motivation
  • C.encouraging employees to expend greater physical energy
  • D.inducing employees to improve work performance and control their demands

Answer: B

Organisations gain most by enhancing labour productivity by increasing skills and motivation.

The first paragraph says that raising earnings by any other route (higher prices, lower profits, cheaper materials) harms the firm's competitive position, whereas raising productivity by enhancing skills and motivation 'creates an almost unlimited resource'. That is exactly option B.

Option A is contrary to the passage, which complains that rewards are often unrelated to performance. Option C is not mentioned: the passage speaks of skills and motivation, not of more physical energy. Option D partly matches the closing sentences, but the passage asks management to find incentives that induce better performance, not to control demands, so B is the fuller statement of the benefit.

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