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 fails to make labor costs more variable.
E)It runs the risk of contributing to employee dissatisfaction.

Question

Quizplus · Accepted Answer

Profit sharing can lead to employee dissatisfaction if the criteria for earning bonuses are unclear or if employees feel that the share they receive is not commensurate with their contribution. Additionally, profit sharing may not be effective if the company is experiencing financial difficulties and cannot offer bonuses to employees, which could also lead to dissatisfaction.

Which of the Following Is a Drawback of Using Profit