2008 | OriginalPaper | Chapter
The Output, Employment and Productivity Effects of Profit Sharing
Published in: Profit Sharing and Company Performance
Publisher: Gabler
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In the theoretical section on the relationship between profit sharing and productivity, we had argued that the underlying idea of an introduction of profit sharing is the employer’s intention to pass on part of the profits to the employees in order to align their interests with her own. The expected result is an increased effort and willingness to cooperate on the employees’ behalf which raises the firm’s overall efficiency (Kruse, 1992).