Which employee award system is generally influenced by the profitability of the organization?

The profit-sharing award system is closely tied to the overall profitability of the organization, making it the correct answer. In a profit-sharing arrangement, employees receive a portion of the company's profits, which typically varies based on the financial success of the business. This creates a direct link between the employees' efforts and the company's performance, fostering a sense of ownership and encouraging employees to work towards the organization’s goals.

Profit-sharing can enhance employee motivation by creating a shared interest in the company's success, thereby aligning individual performance with collective outcomes. When the company thrives, employees benefit, which can lead to increased engagement and loyalty.

Other choices, while related to employee compensation, do not have the same direct correlation to organizational profitability. For example, a commission structure rewards employees based on their personal sales rather than the company's overall profit. Merit increases are often based on individual performance evaluations and do not directly reflect company profits. Similarly, salary adjustments may be standard increases according to cost-of-living or market benchmarks and are not necessarily tied to the organization's financial performance.