Disadvantages of profit sharing include all of the following except:
A) because payments are made only once a year,they may lose their motivational value.
B) plans may not pay off for several years in a row.
C) effective profit-sharing plans require a second HR program.
D) employee morale could drop during time periods after no bonus has been given.

Question

Quizplus · Accepted Answer

The other options are all potential disadvantages of profit sharing. Option A suggests that the motivational impact of the plan may be reduced by infrequent payouts, option B notes that there may be years where the plan does not provide payouts, and option D suggests that employee morale may suffer during periods without bonuses. Option C, however, is not a disadvantage of profit sharing but rather a requirement for its success. Effective profit sharing plans do require a well-developed HR program to support them, but this is not a disadvantage of the approach itself.

Disadvantages of Profit Sharing Include All of the Following Except