Do Bonuses Work? Psychology Research Paper Essay Coursework (Research Paper Sample)

Do Bonuses Work?
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Do Bonuses Work?
The industrial revolution arguably revealed various strategies to enhance workforce productivity. The emphasis on performance led human resource managers to explore optimal methods of enhancing employee motivation. Bonuses in the form of extra remuneration to highly productive employees have been used to motivate personnel to surpass their targets. The continued existence of these human resource practices imply that they are effective. However, it is important to recognize the two facets of financial bonuses. From an economic perspective, these rewards work; however, the opposite is true from a psychological viewpoint. A rigorous evaluation of these bonuses reveals that they are effective in the short-term (consistent with the economic argument) but detrimental in the long-term (psychological perspective).
Bonuses work more effectively in enhancing extrinsic, but undermine intrinsic motivation. Extrinsic motivation is the urge to accomplish a task or an objective in exchange for materialistic rewards or to avoid punishment. Contrastingly, intrinsic motivation is the impetus that drives individuals to achieve because such accomplishment harbors personal benefits such as increasing competence levels.