Profit-sharing and ESOP-type compensation plans feature some significant drawbacks,such as:
A) having only a limited effect on organizational productivity.
B) increasing internal competition among employees.
C) generating labor-management conflicts.
D) increasing corporate tax responsibilities.

Question

Quizplus · Accepted Answer

Profit-sharing and ESOP (Employee Stock Ownership Plan) compensation plans often aim to align the interests of employees with those of the company, potentially increasing motivation and productivity. However, research and practical experience have shown that these plans may have only a limited effect on overall organizational productivity. This limitation can stem from various factors, including the way the plan is structured, communicated, and perceived by employees, as well as the broader organizational culture and management practices.

Profit-Sharing and ESOP-Type Compensation Plans Feature Some Significant Drawbacks,such As