In What Structural Way Do Profit-Sharing Plans Increase Organizational Loyalty

question 45

Multiple Choice

In what structural way do profit-sharing plans increase organizational loyalty?

• A) Employees must have high performance evaluations to participate in profit sharing.
• B) Employees will stay on to seek management positions because only managers participate in profit sharing.
• C) Employees must stay with the company a certain amount of time to access the funds.
• D) Only employees who contribute the most in terms of work receive funds through profit sharing.

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Definitions:

Social Exchanges

Social exchanges refer to the mutual and dynamic interactions of resources, information, or services between individuals or groups, often analyzed in social psychology and sociology to understand social structures and relationships.

Repatriation

The process of returning a person to their country of origin or citizenship, often used in the context of employees returning home after an international assignment.

Multinational Corporation

An enterprise conducting business, either through manufacturing or providing services, across various nations.

Uncertainty Avoidance

The degree to which individuals or cultures are comfortable with risk, ambiguity, and uncertainty in decision making.