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Profit-sharing plans and affective commitment: Does the context matter?

Alberto Bayo-Moriones, Martin Larraza-Kintana

Human Resource Management · 2009 · Volume 48 · Issue 2

DOI: 10.1002/hrm.20276

Abstract

This article analyzes the relationship between profit-sharing plans (PSP) and affective commitment and how it is affected by the context of the PSP application. Overall, there is a positive relationship between profit sharing and commitment that is strongest in very small firms. The efficacy of a PSP in improving employees' affective commitment appears to be greatest in firms with low job-related employee participation. Its application in workplaces where employees enjoy high levels of participation appears to have little impact and may even result in slight declines in affective commitment. © 2009 Wiley Periodicals, Inc.

Keywords

commitment, compensation and benefits, job design, employee attitudes, participation, profit sharing plans

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