financial participation

Quick Reference

Is a term sometimes applied to profit-sharing and other arrangements that allow employees to share in the ownership and profits of the business. Financial participation therefore embraces employee share ownership, profit-sharing schemes, and worker co-operatives. Some regard the term as a misnomer, at least when applied to profit-sharing and share ownership schemes, because the ownership of a small proportion of company stock may provide for little or no participation by employees in the effective running of the business. [See employee share ownership.]

Subjects: Human Resource Management.

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