Profit sharing differs from gainsharing in that profit sharing:
A) doesn't reward productivity improvements.
B) accepts that people are extrinsically motivated.
C) often leads to decreases in productivity.
D) maintains individual equity.

Question

Quizplus · Accepted Answer

Profit sharing is a system where employees receive a share of the company's profits, but it doesn't specifically reward them for productivity improvements. Gainsharing, on the other hand, is designed to directly reward teams or employees for contributing to productivity improvements.

Profit Sharing Differs from Gainsharing in That Profit Sharing