For profit sharing to work, management must be willing to disclose financial and profit information to the employees.

Question

Quizplus · Accepted Answer

This is because profit sharing involves distributing a portion of the company's profits to employees based on certain predetermined criteria. In order to determine the amount of profits earned and the allocation of profits to employees, management must disclose financial and profit information to employees. Without this transparency, employees may not trust the profit-sharing system and may be less motivated to contribute to the company's success.

For Profit Sharing to Work, Management Must Be Willing to Disclose