ABSTRACT
Ever since the idea of profit-sharing and industrial co-partnership took hold in Europe in the mid-nineteenth century, they have had a significant role to play in industrial economy. Almost from the start, profit-sharing and co-partnership were touted as a panacea to the chronic problems of labor disputes and declining productivity. Both contemporary and historical evaluations of profit-sharing have considered it basically a means of control in the workplace as well as in greater society, achieved through giving the worker a stake in the existing social and economic structure. The concept of profit-sharing must be looked at in the context of the development of modern management. Many profit-sharing schemes recognized the importance of human dimension and thus provided for the setting up of various works committees and the participation of employees in low level management. It is true that profit-sharing and co-partnership were often touted as the best solution to indutrial ills.
