What Is Profit Sharing

question 100

Multiple Choice

What is profit sharing?

• A) A gainsharing program in which employees receive a bonus if the ratio of labor costs to the sales value of production is below a set standard.
• B) An incentive pay in which payments are a percentage of the organization's profits and do not become part of the employees' base salary.
• C) A group incentive program that measures improvements in productivity and effectiveness and distributes a portion of profit to employees.
• D) A combination of performance measures directed toward the company's profit and used as the basis for awarding incentive pay.
• E) An incentive plan where a percentage of the previous year's profits is provided to employees as a part of salary.

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Definitions:

Political Skill

The ability to understand others and use that knowledge to influence or guide their behavior to obtain desired outcomes within a political or organizational context.

Organizational Goals

The objectives or targets that an organization aims to achieve, typically designed to guide its strategic direction.

Personal

Relating to or affecting a particular person rather than anyone else, or belonging or relating to a single or specific individual rather than a group or an organization.

Lateral

Pertaining to or situated at the side, often used in reference to horizontal movements or relationships within organizations.