Do you think that, as a manager, you would use bonuses regularly? Why or why not?

Answer

Yes, we as a group think that if any one of us were a manager, we would definitely use bonuses in order
to motivate and uplift employees, although not regularly, as according to the case given, it may backfire.

We believe that we would use bonuses because it will motivate employees. It increases employee’s self-
esteem, job satisfaction, efficiency and love towards their job and the company. Bonuses, however, shall
not be believed to be the key factor for job satisfaction and as a manager anyone of us would not rely
completely on it, because if provided regularly, it may lose its charm and importance and the employees
would not work without bonuses. Also, it may create personal and moral conflicts the employees may
lack interest in the task and rather will give attention to rewards only.

Question 2 

Can you think of a time in your own life when being evaluated and rewarded on a specific goal lead you
to engage in negative or unproductive behaviour?

Answer

Every one of us in the group were demotivated by rewards at least once in our lifetime. 

Although, evaluation and rewards always increased our self- esteem and satisfaction, it, however made
us lack interest in tasks at times. 

Whenever, our parents promised to give us rewards on completing specific tasks, we would find
shortcuts to complete the tasks just for the sake of getting rewards and we would lose interest in the
task itself.

Therefore, rewards did lead us to negative performance in the past.

Question 3 

Do you think providing group bonuses instead of individual bonuses would be more effective or less
effective? Why or why not?

Answer

We think that group bonuses will have both positive and negative effects. 
It will be more effective because it will satisfy the equity theory and will not develop jealousy or envy in
group members. Also, it will increase group productivity and coherence.

On the other hand, group bonuses can be less effective as it may lead to injustice, for example, one
group member may be more hard working than the other and he may be under-rewarded in case of
group based rewards. Also, due to social loafing, one member, who does not work enough may be over-
rewarded than the other. 

Question 4

How would you design a bonus/reward program to avoid the problems mentioned in this case?

Answer 

We would design a reward program which must identify company or group goals and the behaviour or
performance that will contribute to this. In order to avoid the problems mentioned in this case, we will
make sure that the employee does not lose interest in the task by introducing intrinsic rewards. 

Also, we will make sure that performance has actually improved before rewarding employees, which will
decrease back fire.

And lastly, in case of group rewards we will reward the group as well as the individuals who may be
emotionally more intelligent than the rest, thus avoiding any problems regarding group bonuses.