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A company regards expenditure on employee welfare as an investment rather than an expense. What is the most appropriate reason for this view?

Answer and explanation

Correct answer: It can improve employees’ satisfaction, morale and efficiency

Employee welfare helps fulfil employees’ personal objectives. Better facilities and working conditions can improve satisfaction and morale, which may increase efficiency and the quality of work. Therefore, this expenditure is viewed as an investment in the organisation. Options B and C make exaggerated claims using ‘certainly’ and ‘always’, while option D contradicts the concept. Exam tip: Link employee welfare with personal objectives and employee motivation.

Related tags

Employee-WelfarePersonal-ObjectivesEmployee-MotivationManagement-ObjectivesObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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