Organizational Behavior

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CASE INCIDENT 3: BONUSES CAN BACKFIRE

Bonuses are really significant for all managers and employees. Bonus is a sum of money added to a person’s wages for good performance. It is a way of rewarding the employees’ work. That is why it is a significant way to get a good performance from employees.

Bonuses might have both negative and positive effects on employees. The managers should know how to give bonuses. There are some sensitive facts that managers should implement. For instance, an employee should get a bonus as a consequence of really hard work. If an employee do the regular work which s/he should do as a routine, it is not necessary to give him or her a bonus. Bonuses also should be distributed fairly. As an employee getting more bonuses than his or her manager is not a fair distribution. It should be in balance with employees’ seniority. If it is not in balance, it might be harmful for the company and it also might destroy the equation in the organization. This can cause a negative and unproductive effect in the employees.

Generally it is important for companies to be in harmony with all employees. Most of the time group works are more useful for a company than individual works. That is why rewarding a group is more important than rewarding an individual. Success of a group has a bigger effect to the organization then success of an individual because an individual maybe cannot carry an organization to a better position. However, a group might do it. If a manager gives bonus to a group, every single individual who are the members of the group might work for the company’s benefit as more productive than past.

As a manager, people should use bonuses regularly in a company, because there are many advantages to use bonuses. Bonuses are often connected directly to performance, such as generating more sales or motivating a production line to meet or exceed a quota. It is well known that there is a tangible financial reward for increasing...
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