For a profit-sharing plan to be effective, which of the following possible actions must management be willing to take?
A)to stabilize profits so that the annual payoff is consistent
B)to increase innovative solutions to technical problems
C)to lower expectations of performance impact in the program's first year
D)to disclose financial and profit information to employees

Question

Quizplus · Accepted Answer

In order for a profit-sharing plan to be effective, management must be willing to disclose financial and profit information to employees. This transparency allows employees to understand how the company is performing and how their contribution impacts the bottom line. Without this information, employees may not fully understand the purpose or value of the profit-sharing plan. Additionally, disclosure can help build trust and engagement among employees, which can lead to improved performance and longer-term retention.

For a Profit-Sharing Plan to Be Effective, Which of the Following