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The statement says spending on employee welfare is always against profit. What is the correct answer?

Answer and explanation

Correct answer: Wrong because satisfied employees can increase productivity

The governing concept is the relationship between personal objectives and organisational objectives. Employee welfare may involve expenditure on safe working conditions, health support, training, benefits, or a supportive workplace. These measures are not automatically wasteful; they can improve morale, reduce absenteeism and labour turnover, strengthen commitment, and raise productivity. Better productivity and stability may improve quality, customer satisfaction, and long-term profit. Therefore option B is correct because welfare can be an investment that supports profitability, even if it creates a cost in the short run. Option A assumes every welfare expense is wasteful, while C wrongly dismisses personal objectives and D falsely claims that profit is not an organisational objective.

Related tags

Employee-WelfareProfitProductivityObjectives Of ManagementNature And Significance Of ManagementBusiness StudiesClass 12 Mcq

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