Which of the following is a drawback of using profit sharing?
A)It promotes individual goals rather than organizational goals.
B)It promotes competition between work groups.
C)It increases the probability of individual competition.
D)It increases the labor cost in difficult economic times.
E)It runs the risk of contributing to employee dissatisfaction.

Question

Quizplus · Accepted Answer

Although profit sharing may be useful as one component of a compensation system, it runs the risk of contributing to employee dissatisfaction or higher labor costs, depending on how it is designed.

Which of the Following Is a Drawback of Using Profit