To Maximize Profits, An Employer Should Control his or her Environment GMAT Reading Comprehension

Reading Passage Question

To maximize profits, an employer should control his or her environment in a factory, shop, or office and make sure that examples of energy and efficiency are numerous enough to catch employee attention and establish an atmosphere of industry. In the workplace, there are instances in which it would be in the mutual interest of the employer and the employees to increase the speed of work, but conditions may limit or forbid the use of pace-setters. In construction work and in some of the industries, where there are minute subdivisions of operations and continuity of processes, this method of increasing efficiency is very commonly applied with the use of time cards and software. In many factories, however, such an effort to “speed up” production might stir resentment, even among the workers paid at a fixed rate for each unit produced or action performed, and have an effect exactly opposite to that desired. The alternative, of course, is for the employer to secure unconscious pace setting by providing incentives for the naturally ambitious men and women in the way of a premium or bonus system or other reward for above-average efficiency.

Accordingly, to take advantage of the benefits of conscious or voluntary imitation, workers must be provided with examples that appeal to them as admirable and inspire the wish to emulate them. A common application of this principle is seen in the choice of department heads, foremen, and other bosses. Invariably these people win promotion by industry, skill, and efficiency greater than that displayed by their direct peers, or by mastery of their skills that enables them to show their less efficient peers how any and all operations should be conducted. This focusing of attention upon individuals worthy of imitation has been carried much farther by various companies. Some create weekly or monthly papers published primarily for circulation within the organization to record every incident reflecting unusual skill, initiative, or personal power in an individual member of the organization. A big order closed, a difficult contract secured, a complex or delicate operation performed in less than the usual time, a new personal record in production, the invention of an unproved method or machine—whatever the achievement, it is described and glorified, its perpetrator praised and held up for emulation. This, indeed, is one of the methods by which the larger sales organizations have obtained remarkable results.

“To maximize profits, an employer should control his or her environment GMAT Reading Comprehension is a sample text for the exam GMAT.This GMAT Reading Comprehension consists of 3 comprehension questions. The GMAT Reading Comprehension questions are designed for the purpose of testing candidates’ abilities in understanding, analyzing, and applying information or concepts. Candidates can actively prepare with the help of GMAT Reading Comprehension Practice Questions.

Solutions and Explanations

1. The author of the passage mentions a “big order closed, a difficult contract secured, a complex or delicate operation performed in less than the usual time,” (Highlighted) in order to

1. describe a list of rewards companies frequently offer high-achieving employees.
2. list some examples through which companies take unconscious incentivizing to the next level.
3. offer praise to companies for incentivizing high productivity.
4. further incentivize workers to achieve maximum productivity.
5. reflect upon the unusual skill, initiative, or personal power in the individual members of certain organizations.

2. The author is primarily concerned with

1. describing situations in which company policies do not always lead to more productivity.
2. incentivizing workers in order to achieve maximum product output.
3. presenting two ways using which the companies can influence pace-setting and explaining one in greater depth
4. suggesting changes to company structure and policy that curtail efficiency.
5. explaining how companies can best inspire sub-producing workers to achieve their best results.

3. With which of the following statements would the author of the passage NOT agree?

1. Utilizing time cards and software can sometimes lead to less profitability.
2. Corporations looking to maximize profits should promote employees based on talent and skill rather than seniority.
3. There is some disparity between the methods companies use to promote good examples to their employees.
4. In order to maximize profitability, time cards and promotion of efficient paradigms must be used together.
5. Certain employees might be averse to the idea of speeding up the production, even when there are distinct monetary benefits of doing so.

4. Which of the following best illustrates an instance of successful unconscious pace-setting?

1. A car factory sets a quota for the number of windshields installed per hour and incentivizes windshield-installers to work at a faster rate.
2. A military unit consisting of infantrymen cross-train with multiple weapons so they are more efficient in battle.
3. A magazine regularly sets aside a column to name a specific “Employee of the Month” and award the employee for his/her dedication.
4. A watch repair store requiring its employees to self-report their hours finds them to be inaccurate.
5. An accounting firm that hires specialized workers to handle simultaneous parts of its billing increases efficiency by requiring workers to clock in and out.

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