Which of the following would be a reason for organizations to implement profit sharing?
A) It has been established that profit sharing helps organizations perform better.
B) It makes employees feel that they have control over the company's profits.
C) It costs less when the organization is experiencing financial difficulties.
D) It helps employees find a direct relation between their performance and gain.
E) It motivates employees more than individual incentives.

Question

Quizplus · Accepted Answer

Profit sharing has the practical advantage of costing less when the organization is experiencing financial difficulties. If the organization has little or no profit, this incentive pay is small or nonexistent, so employers may not need to rely as much on layoffs to reduce costs.

Which of the Following Would Be a Reason for Organizations