Explain to the directors of a private limited company the advantages and disadvantages of introducing a profit-sharing system for the workforce.?

Advantages:

*Increased committment by workforce as they feel they are a part of the Organization.

*Motivation level will be high.

* Employees work towards a common goal and focus will be on profitability.

* Additional income.

Disadvantages

* Too much focus on profitability and not quality

* The salaries of individual employees go up equally not on basis of merit or promotion.