A manager who tries to enhance worker effort by tying workers' compensation to the profitability of the firm is using:
A) spot checks.
B) revenue sharing.
C) profit sharing.
D) piece rates.

Question

Quizplus · Accepted Answer

Profit sharing involves giving workers a percentage of the profits of the company. This can serve as an incentive for workers to increase their efforts, as their earnings will be directly related to the profitability of the firm. This is different from revenue sharing, which involves giving workers a percentage of the revenue generated by the company, and from piece rates, which involve paying workers for each unit of output they produce. Spot checks are a quality control method, and are not related to compensation or incentives.

A Manager Who Tries to Enhance Worker Effort by Tying