Do Bonuses Work? (Coursework Sample)

Do Bonuses Work?
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Do Bonuses Work?
A bonus is the reward that is given by a firm to a worker or a customer after some exemplary performance. Therefore, a bonus is a motivating factor for the employees to work hard and achieve the best for a company. Since a bonus is a positive reward for performance, it induces a sense of responsibility and recognition to the awarded employee.
A company may award bonuses of sterling performance in the form of incentive to a customer or an outstanding employee. Companies have commonly used the signing of referrals as a procedure of incentive bonus and retentions to reward their workers. Consequently, a bonus enhances co-operation between the workers, stakeholders, and the management (Page, 2019). Some company managers attach bonuses with the salary to improve the financial ability of an individual worker. In this form, it acts as a factor that promotes cohesion between the company and the workers welfare. On the other hand, bonuses have also been used in sales promotions to reward loyal customers (Minnema et al., 2017). Here, it is viewed as a mutual factor between the customers and the firm, since both benefits from the bonus's sales. Bonus work better in encouraging employees since it is a complement to the worker’s salary.
Many company managers consider bonuses to improve the performance of both the workers and the company. As a motivating factor, when financial incentives are put in place by the management, several employees will pull concerted efforts to earn them (Carlson, 2017). However, some managers have devised promotion of underperforming staff by offering bonuses (Page, 2019). In some cases, the nature of work employees undertake may make it difficult to evaluate how much input to be attached to the bonus award. Such circumstance require a scrutiny before awards are made. Nevertheless, incentives can also lead to workers taking shortcuts in accomplishing duties that result in a bonus (Pieper et al., 2018). The shortcuts may transform into low-quality output and envy among the workers. The management should put stringent measures that control the workers to avoid unnecessary shortcuts to fair bonus payouts. Unethical behaviors resulting from the workers who take alternative routes to earn more bonuses should be highly punishable by law.
Gratuities improve the workers' devotion to their jobs and reduce the turndown rates from the employees. Some workforces may find the job less rewarding and unworthy without bonuses. Such staffs are prone to strike and picketing (Whiting et al., 2019, October). Therefore, bonuses enhance the workers' conception of their duties and instill a sense of the importance of their jobs to their livelihood (Pieper et al., 2018). From a psychological perspective, human behavior results from conditioning, which only rewards like bonuses can achieve. Additional benefit break the normalized behaviors ingrained in a person's behavior (Whiting et al., 2019, October). On the other hand, gratuities act as external stimuli that positively affect and improve a normalized conduct. I support the fact that bonuses works as an instrument that develops both the company and the individual workers.
The bonus works as a way of encouraging good performance for both average and underperforming workers. However, the management must be ca