Český finanční a účetní časopis 2015(3):97-117 | DOI: 10.18267/j.cfuc.452

Basic Approaches to Profit-Sharing and Ideas for Utilization

Petr Petera1, Jana Fibírová2
1 Ing. Petr Petera, Ph.D. - odborný asistent; Katedra manažerského účetnictví, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <petr.petera@vse.cz>.
2 prof. Ing. Jana Fibírová, CSc. - profesor; Katedra manažerského účetnictví, Fakulta financí a účetnictví, Vysoká škola ekonomická v Praze, nám. W. Churchilla 4, 130 67 Praha 3; <fibirova@vse.cz>.

This article deals with profit-sharing, i.e. one of the possible types of group-based rewards for performance. In the introduction is defined profit-sharing and put into the wider context of rewards for performance. Because there are numerous types of profit-sharing plans, the key features, which distinguish these various types, are identified. On the basis of an extensive literature review are characterized the main effects of profit-sharing and mechanisms of their impact. It is pointed out that the decision on the adoption of "profit-sharing" and the implications of its implementation depend on several key factors. These factors are identified and discussed in this article. We also identify potential weaknesses of profit-sharing and possible methods for their elimination or mitigation are suggested. In the final part of the article is provided summary of findings and suggestions for further research.

Keywords: Profit-sharing; Group-based incentives; Motivation.
JEL classification: M52

Published: October 1, 2015  Show citation

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Petera, P., & Fibírová, J. (2015). Basic Approaches to Profit-Sharing and Ideas for Utilization. Czech Financial and Accounting Journal, 2015(3), 97-117. doi: 10.18267/j.cfuc.452
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