David Jatau


The importance of proper utilization of rewards for performance is still on the rise and hence this type of rewards can be seen as a substantial part of a total rewards package. The capacity to appropriately implement rewards for performance for retail companies may result in a competitive lead over their competitors, but a good knowledge for successful implementation is a necessity for these rewards. The main aim of this paper is to contribute to the growth of this knowledge by identifying potential positive and negative impacts of profit-sharing on different areas that are vital for the performance of retail companies, nevertheless, the effects of profit-sharing are also addressed here in. A comprehensive and up-to-date evaluation of the relevant literature is further provided. To undertake these, an application of bibliometric methods, analysed to identify the salient points, authors and topics. A neutral or positive impact of profit-sharing on productivity and profitability has been reported by most studies and reports. This impact may be achieved by direct influence of profit-sharing on productivity of employees (due to the dependence of their pay on profit),Existing literature has proven a positive impact of group incentives on productivity, the impacts on profitability or financial performance have been mixed in previous studies (Jones et al., 1997;Magnan and St-Onge, 2005) but it seems that yet more important are various mediating mechanisms, especially effects on employment stability, absenteeism, quits and related issues, as well as effects on attitudes of employees and on relationships between employees. A well-designed profit-sharing plan is crucial for its success remains the argument here, however this also is a relatively under-researched problem.The varied results imply that the effects of financial incentives such as profit-sharing on financial performance may be contingent on organisational factors.


Effect, Profit Sharing Scheme, Employee Performance, Employee Commitment, Nigerian Retail Companies.

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