Identify the Disadvantage of Using Profit-Sharing Plans

question 82

Multiple Choice

Identify the disadvantage of using profit-sharing plans.

• A) They cannot be used to improve the organization's performance as a whole.
• B) The employees may develop a narrow view of their roles in the organization.
• C) They cost more when the organization experiences financial difficulties.
• D) Sharing profit with the employees ultimately reduces the organization's profitability.
• E) Profit sharing is not directly linked to individual behavior.

---

Definitions:

Organizational Environment

The collection of external and internal factors that influence an organization's operating situation, including economic, political, regulatory, and cultural conditions.

Social Characteristics

Attributes that define the social aspects of individuals or groups, including age, gender, ethnicity, social class, and cultural background.

Attributes

are qualities, features, or characteristics that define or identify someone or something.

Motivational Characteristics

Traits or features of a task, environment, or individual that influence the direction, intensity, and persistence of behavior or action.