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[GMAT阅读题讨论] PREP2012阅读第5篇第5题

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icetong123 发表于 2015-1-8 18:56:02 | 显示全部楼层 |阅读模式
本帖最后由 icetong123 于 2015-1-9 10:23 编辑

Many managers are influenced by dangerous myths about pay that lead to counterproductive
decisions about how their companies compensate employees. One such myth is that labor
rates, the rate per hour paid to workers, are identical with labor costs, the money spent on
labor in relation to the productivity of the labor force. This myth leads to the assumption that
a company can simply lower its labor costs by cutting wages. But labor costs and labor rates
are not in fact the same: one company could pay its workers considerably more than another
and yet have lower labor costs if that company's productivity were higher due to the talent of
its workforce, the efficiency of its work processes, or other factors. The confusion of costs
with rates persists partly because labor rates are a convenient target for managers who want
to make an impact on their company's budgets. Because labor rates are highly visible,
managers can easily compare their company's rates with those of competitors. Furthermore,
labor rates often appear to be a company's most malleable financial variable: cutting wages
appears an easier way to control costs than such options as reconfiguring work processes or
altering product design.
The myth that labor rates and labor costs are equivalent is supported by business journalists,
who frequently confound the two. For example, prominent business journals often remark on
the “high" cost of German labor, citing as evidence the average amount paid to German
workers. The myth is also perpetuated by the compensation consulting industry, which has
its own incentive to keep such myths alive. First, although some of these consulting firms
have recently broadened their practices beyond the area of compensation, their mainstay
continues to be advising companies on changing their compensation practices. Suggesting
that a company's performance can be improved in some other way than by altering its pay
system may be empirically correct but contrary to the consultants’ interests. Furthermore,
changes to the compensation system may appear to be simpler to implement than changes
to other aspects of an organization, so managers are more likely to find such advice from
consultants palatable. Finally, to the extent that changes in compensation create new
problems, the consultants will continue to have work solving the problems that result from
their advice.


The passage suggests that the “myth" mentioned in the highlighted text persists partly
because
A. managers find it easier to compare their companies’ labor rates with those of competitors
than to compare labor costs
B. managers tend to assume that labor rates affect their companies’ budgets less than they
actually do
C. managers tend to that labor rates can have an impact on the efficiency of their companies’
work processes
D. the average amount paid to workers differs significantly from one country to another
E. many companies fail to rely on compensation consultants when making decisions about
labor rates


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