company gets an assurance that top-of-the-line employees (who could possibly make more
in base salary elsewhere) will remain with the company for years to come.
Organizational rewards create an ownership culture in which employees feel aligned
with the organization’s success. Pro t sharing helps to automatically adjust employee com-
pensation with the rm’s prosperity, thereby reducing the need for layo s or negotiated pay
reductions during recessions (Cheluis and Smith 1990).
e main disadvantage is that employees o en perceive a weak connection between indi-
vidual performance and corporate pro ts or the value ...
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