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Profit Sharing Boosts Employee Productivity and Satisfaction

Harvard Business Review

We all know that people respond to incentives. For the most part, however, the research that’s led us to these conclusions has focused on performance incentives for individual workers, such as piece rates, merit pay, individual commissions, and bonuses. The research has taken time to catch up. First, a bit of history.

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Huawei: A Case Study of When Profit Sharing Works

Harvard Business Review

At Huawei’s inception, Zhengfei designed the Employee Stock Ownership Plan (ESOP). At the time, Zhengfei had no idea what a stock option system was – not being familiar at that time with the types of incentives systems developed in the West. The structure of the ESOP is based on two important premises.