What is the purpose of a profit-sharing plan?
A)to allow workers to contribute ideas and suggestions
B)to motivate a total commitment to the organization as a whole
C)to enable workers to share in labour cost savings
D)to instil commitment to the employee's immediate work group

Question

Quizplus · Accepted Answer

The purpose of a profit-sharing plan is to motivate employees to have a total commitment to the organization as a whole. This is done by sharing a portion of the company's profits with the employees, so they feel like their efforts are directly impacting the success of the organization. It encourages teamwork and a shared sense of ownership within the company. The other choices (A, C, and D) do not fully capture the goal of a profit-sharing plan.

What Is the Purpose of a Profit-Sharing Plan