What is a major problem with profit-sharing plans?
A) They increase the fixed costs of organizations.
B) The line of sight between employee performance and organizational profits is blurred.
C) The profits distributed to employees can be too much.
D) There is no agreed upon procedure to determine profits.

Question

Quizplus · Accepted Answer

Profit-sharing plans often suffer from a lack of clear connection (line of sight) between individual employee performance and the overall profits of the organization, making it difficult for employees to see how their efforts directly impact profit-sharing outcomes.

What Is a Major Problem with Profit-Sharing Plans