In this system, the worker gets his usual wages, a share in the profits of the company and a shear in the management of the company as well. Thus, employees share the capital as well as profits. When co-partnership operates with profit sharing the employees are allowed to leave their bonus with the company as shares (bonus shares). This system is an improvement over all other systems of wage payment in that it implies both profit sharing and control sharing. It also offers recognition of the claim of the dignity of labor as the worker is viewed as partner in the business. This would, in turn, create a sense of belonging among workers and stimulate them to contribute their best for the continued prosperity to the company.

Share This Post

Related Articles

© 2022 Human Resource Management. All rights reserved.