06:Identify and explain two advantages to SF of using profit sharing.[4]

[Dania]

Singh Foods (SF) makes a range of pickles and preserves (jams). The business has expanded quickly even though the economy is in recession. The Human Resources manager believes employees have helped SF to become successful by accepting new ways of working. She uses both profit sharing and non-financial methods to motivate the 200 full-time employees. Few employees leave each year. Most communication is done through a weekly printed newsletter. She is not sure if this is still the best way to communicate with employees.

06:Identify and explain two advantages to SF of using profit sharing.[4]

Possible KN Points:
>Motivate employees.
>Creates team spirit/sense of belonging/common goal.
>Improve employee loyalty/retention.