Question

Automaker Henry Ford famously paid high wages to his workers. In 1914, he offered $5 a day (about $107 today) for assembly line work. The offer resulted in long lines for Ford jobs, little worker turnover, and high-quality workers. Paying above-market wages may improve profits better than piece rate incentives if:________

a. supported by intrinsic motivation.
b. product quality is not a concern.
c. environmental risks are not a factor.
d. worker effort is easily observable.

Answer 1

Answer: a. supported by intrinsic motivation.

Explanation:

If paying above-market wages can result in or be supported by intrinsic motivation, profits may be improved because the workers will work harder than they normally would have.

Intrinsic motivation refers to refers to the part of person's drive that is inspired by the internal rewards that they hope to gain which means that it comes from the person themselves. If workers want to work hard, profits will come because productivity will be higher.