Profit-Sharing – A Tool for Improving Productivity, Profitability and Competitiveness of Firms?
Journal Title: Journal of Competitiveness - Year 2013, Vol 5, Issue 4
Abstract
The importance of appropriate utilization of rewards for performance is still growing and therefore this type of rewards can be seen as a significant part of a total rewards package. Companies that are able to appropriately implement rewards for performance may gain competitive advantage over their competitors, but successful implementation requires a good knowledge of these rewards. The main aim of this paper is to contribute to the growth of this knowledge by identifying possible positive and negative impacts of profit-sharing on various areas that are important for the performance of a company, nevertheless, addressed are also macroeconomic consequences of profit-sharing. Furthermore, a comprehensive and up-to-date review of the relevant literature is provided, under-researched areas are identified and suggestions for further research are given. To accomplish these goals, we applied methods of bibliometric analysis to the articles indexed in ISI Web of Knowledge to identify the most important articles, authors and topics. According to our findings, the majority of studies report a neutral or positive impact of profit-sharing on productivity and profitability. This impact may be achieved by direct influence of profit-sharing on productivity of employees (due to the dependence of their pay on profit), but it seems that yet more important are various mediating mechanisms, especially effects on employment stability, absenteeism, quits and related issues, as well as effects on attitudes of employees and on relationships between employees. We argue that a well-designed profit-sharing plan is crucial for its success, but it is a relatively under-researched problem.
Authors and Affiliations
Jana Fibirova, Petr Petera
Keywords
Related Articles
- EP ID EP104578
- DOI 10.7441/joc.2013.04.01
- Views 168
- Downloads 0
Motivation of Online Buyer Behavior
Buyer behavior of consumers plays one of the key roles in fulfillment of the main goals of a company. It is influenced by many external and internal factors but the company can also influence the final process of buyer d...
Digital Economy in Visegrad Countries. Multiple-criteria Decision Analysis at Regional Level in The Years 2012 and 2015
Building effective digital economy infrastructure is currently a basic condition for improving international competitiveness of middle income countries that want to close their development gap and avoid the problem of a...
The Effect of International Business on SMEs Growth in Nigeria
The research examined the effect of international business on SMEs growth in a competitive environment, particularly Nigeria. The secondary data were gathered from the Nigerian Bureau of Statistics and the Central Bank o...
Employers’ View on Problems Related to Workforce Skills and Qualification
The aim of this exploratory study is to reveal employers’ views on problems related to workforce human capital (skills and qualification). Where do employers themselves view the core of difficulties with ensuring adequat...
Comparison and Evaluation of Bank Efficiency in Austria and the Czech Republic
This article compares and evaluates the efficiency of the banking sector in Austria and the Czech Republic in the period 2004-2011. The paper is divided into the following parts. It begins with a literature review dealin...