Asked by Mario Alberto on Jul 22, 2024

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A weakness of profit-sharing plans is that employees do not have total control over the profitability of the organization.

Profit-sharing Plans

A company program where employees receive a portion of the company's profits, linking compensation to the company's financial performance.

Total Control

A management approach where every aspect of a project, process, or organization is under direct control with no external influences.

  • Understand the principles of profit-sharing plans and how they aim to motivate employees.
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MB
mauro bravoJul 27, 2024
Final Answer :
True
Explanation :
Profit-sharing plans provide employees with a portion of the profits earned by the organization, but employees do not have complete control over the factors that determine the organization's profitability, such as market conditions and competition. Therefore, they may not always receive a significant amount of profit-sharing, which is a weakness of these plans.