Home > Categories > Social Sciences and the Law > Economics, Business, and Labor > Economics: Terms and Concepts > profit sharing

profit sharing

From: The Columbia Encyclopedia, Sixth Edition | Date: 2008

profit sharing arrangement by which employees receive, in addition to their wages, a share of the net profits of a business. The purpose is to give them an incentive to increase their output through enhanced morale, less wasteful use of materials, better care of equipment, and the like. Profit sharing does not imply participation by the workers in management. The employer determines the rate at which profits are shared; since the rate is fixed beforehand, profit sharing differs from the bonus system. Profit sharing plans have been in operation in France since 1842 but have not been widely adopted in the United States. The plan has been most successful in businesses where employees work without direct supervision or where it is limited to supervisory employees or lesser executives, e.g., branch managers and department managers in department stores.

Author not available, PROFIT SHARING., The Columbia Encyclopedia, Sixth Edition 2008

The Columbia Encyclopedia, Sixth Edition. Copyright 2008 Columbia University Press

For permission to reuse this article, contact Copyright Clearance Center.

Related articles from HighBeam Research:

	The incidence and nature of employee profit sharing and share ownership in Canada. Industrial Relations (Canadian); 6/22/1992; Long, Richard J.; 8013 words; In recent years, both profit sharing and employee ownership have experienced ... of these concepts, especially profit sharing, would be good for the economy ... used in the context of a deferred profit sharing plan. Of course, these plans are ...
	Profit sharing in takaful business New Straits Times; 1/30/2002; Mohd Fadzli Yusof; 1052 words; Profit sharing in takaful business Byline: Mohd Fadzli ... contract which simply means the right to profit sharing. In this respect the parties entitled to the profit sharing arrangement are the takaful participants ...
	Southwest Airlines Workers to Get Record Profit-Sharing.(Knight Ridder/Tribune Business News) Knight Ridder/Tribune Business News; 3/28/2000; Reed, Dan; 493 words; ... Southwest makes its profit-sharing contribution to the tax-deferred ... required to invest any of their profit-sharing payments in Southwest's stock ... about 72 percent of their profit-sharing accounts in Southwest stock. Employee profit-sharing programs are common in ...
	Employee Profit Sharing: Consequences and Moderators.(researches examine the effects of employee profit sharing on overall company performance) Industrial Relations (Canadian); 6/22/2000; LONG, RICHARD J.; 9493 words; ... evidence that, on average, employee profit sharing improves company performance ... consequences and moderators of profit sharing, and then utilizes a data set from 108 Canadian profit sharing-firms to empirically examine them ...
	Motives for profit sharing: a study of Canadian chief executive officers. Industrial Relations (Canadian); 9/22/1997; Long, Richard J.; 7198 words; ... Chief Executive Officers Employee profit sharing has experienced a substantial ... proportion of Canadian companies with profit sharing plans doubled in the eight-year ... unique in the growing popularity of profit sharing (Florkowski 1991; Long 1996 ...
	Consultant eyes agency profit-sharing contracts. National Underwriter Property & Casualty-Risk & Benefits Management; 8/19/1991; Stitt, Richard P.; 529 words; Consultant Eyes Agency Profit-Sharing Contracts Do insurance agency principals really understand complex profit-sharing agreements? Or, do they accept ... over the years I've discussed profit-sharing agreements with many agents and ...
	Profit sharing (with workers) facilitates collusion (among firms). RAND Journal of Economics; 9/22/2006; Bernhardt, Dan Chambers, Christopher P.; 10408 words; ... 2] (2) denote monopoly profits if the demand shock is [theta ... represent expected period profit per firm along the equilibrium ... cooperative path, firms split total profit equally. Given a demand shock [theta], monopoly profits are sustainable if and only ... mandates that the expected ...
	PROFIT-SHARING, EMPLOYMENT STABILITY, AND WAGE GROWTH.(Statistical Data Included) Industrial and Labor Relations Review; 4/1/2001; AZFAR, OMAR DANNINGER, STEPHAN; 6703 words; ... The authors conjecture that profit-sharing reduces turnover and thus increases ... hypothesis. Employees participating in profit-sharing plans were less likely than non-participan ... Finally, the authors show that profit-sharing was related to higher wage growth ...
	Profit-sharing checks pump millions into pockets of local steelworkers. Times (Munster, IN); 5/19/2005; 414 words; ... the other plants (profit sharing) and it is really makes a ... on safety rather than just profits. The profit sharing is nice, but if you get maimed or killed profit sharing won't matter, Hargrove said ... t have any injuries. The profit-sharing pool of $22,531,212 ...
	PROFIT-SHARING PLANS OFFER INCENTIVES FOR EMPLOYEES TO STAY LONGER. Do-It-Yourself Retailing; 6/1/2000; 415 words; ... think about starting an employee profit-sharing program for your store. At Big ... participate in the store's employee profit-sharing program. Vice President Rick C ... work force. The benefits of the profit. sharing program have more than pleased ...
	Lunda Construction profit-sharing trial begins Daily Reporter (Milwaukee); 4/24/2002; Ellen Hickock-Wall; 512 words; ... claims that he was misled over a profit- sharing plan. The trial, expected to last ... when Lunda: Failed to pay him profit-sharing funds as promised; Failed to distribute ... by continually refreshing the profit- sharing and stock-distribution promises ...
	Impact of Profit Sharing on Productivity. Economic Review; 4/1/2001; Hussain, Syed Asad; 1639 words; ... step ahead of fringe benefits, profit sharing is offered to increase productivity ... faced by different organizations. Profit Sharing System is one of them. It is regarded ... variables to ascertain the impact of Profit Sharing. A questionnaire containing eight ...
	It's time to change public opinion about corporate profits one way is to make use of profit sharing plans to link pay to profit. Mid-Atlantic Journal of Business; 4/1/1989; Fosbre, Anne B.; 4705 words; ... hourly and salaried profit sharing plans based on the number ... more than $653 million in profit sharing checks were distributed to ... 3700 per person. Ford's 1986 profit sharing payout was $370 million ... and is used for breaking news about the company. Many of ... believed that ...
	PENSION PLANS:PROFIT SHARING/401(K) COUNCIL OF AMERICA Congressional Testimony; 5/5/1998; 1317 words; ... Especially Women Employees The Profit Sharing/401 (k) Council of America (PSCA ... represented companies that sponsor profit sharing and 401 (k) plans for their employees ... employees. All members regard their profit sharing or 401 (k) plans as vital factors ...
	Raising The Roof On Pensions: A law change allows companies that have maxed out their.(profit-sharing plans to add defined benefit plan)(Column) Financial Planning; 11/1/2000; Feller, Benjamin E.; 1154 words; profit-sharing plans to add a defined benefit plan ... contributions that can be made to its profit-sharing or money purchase pension plan can increase ... pension plan or in combination with a profit-sharing plan, money purchase plan or 401(k ...