Identify the disadvantage of using profit-sharing plans.
A) They cannot be used to improve the organization's performance as a whole.
B) The employees may develop a narrow view of their roles in the organization.
C) They cost more when the organization experiences financial difficulties.
D) Sharing profit with the employees ultimately reduces the organization's profitability.
E) Profit sharing is not directly linked to individual behavior.

Question

Quizplus · Accepted Answer

Profit sharing is not directly linked to individual behavior, which can be a disadvantage because it may not effectively motivate individual employees to improve their performance.

Identify the Disadvantage of Using Profit-Sharing Plans