Organisation-wide programs that distribute compensation based on some established formula designed around a company's profitability are termed:
A)gainsharing
B)profit-sharing plans
C)variable pay
D)ESOPs

Question

Quizplus · Accepted Answer

Profit-sharing plans distribute compensation to employees based on the company's profitability. This is done through a formula that is established by the organization and typically applies to all employees, regardless of their job or level within the company. Gainsharing, variable pay, and ESOPs are all different types of compensation programs that may be used by organizations, but they do not necessarily depend on the company's profitability. Gainsharing is based on the achievement of specific goals, variable pay is linked to individual or team performance, and ESOPs involve employees owning stock in the company.

Organisation-Wide Programs That Distribute Compensation Based on Some Established Formula