Which incentive arrangement distributes a portion of an organisation's profits among eligible employees?
Correct answer: A. Profit-sharing plan
- A. Profit-sharing plan
- B. Piece-rate plan
- C. Skill-based pay plan
- D. Time-rate plan
Explanation
A profit-sharing plan links employee rewards to the organisation's profits, usually according to a stated formula. A piece-rate plan pays according to units produced rather than total organisational profit.
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About Human Resource Management
Human resource management deals with acquiring, developing, rewarding and retaining employees within an organisation. It includes job analysis, recruitment, selection, training, performance appraisal, compensation, career planning, labour relations and workplace discipline. Recruitment attracts applicants, while selection evaluates them and chooses the most suitable candidate.
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