Brm: Impact of Bonuses on Employee Behavior

2606 Words Nov 28th, 2012 11 Pages
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3.4 Advanced Business Research Methods

Impact of bonuses on employee behavior

Group 3.01
J. Dikkers

Carien Beyer 1812781
Kim Klijnsmit 1871447
Myrthe Rustemeijer 1814362
Claudia Sanua 1857134

Date: 20/02/2011

Table of contents

1.1 Introduction page 3
1.2 Research Question page 4
2.1 Theoretical Framework page 4
2.2 Hypotheses page 6
3.1 Methodology page 8
3.2 Sample & Procedure page 8
3.3 Measurement Instruments page 9
3.4 Questionnaire page 9
4.1 Results page 10
5.1 Conclusion
6.1 Reference list

1. Introduction

“English banks’ bonuses
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These factors include: supervision, workflow and salary. Satisfiers on the other hand are aimed to improve an employee’s performance and are influenced by: recognition, achievement and actual work. Salary is a dissatisfier according to Herzberg and thus do not motivate employees to work harder, but rather is a result of supply and demand (R. Rajan, 2008).

Most people rate job satisfaction to be more important than compensation. That is not to say that compensation is not important, but people will seek jobs that are more self-fulfilling rather than ones that have a higher income. This is explained by a study done to explore why people leave their jobs (Wang, S. 2003).

Many companies inaccurately substitute traditional bonus pay with incentive pay. A bonus pay is traditionally reactive while an incentive pay is proactive (R. Rajan, 2008). Traditionally, individuals had no knowledge of the bonus they would receive as it is only decided at the end of the year once all the figures have been collected. This results in a reactive bonus because the individual has no idea what he/she will receive. On the other hand, an incentive pay system will have targets and goals that must be reached and should have fair measures. He therefore knows exactly what he has to do in order to obtain a specific incentive. Therefore, incentive plans need to be well thought out and implemented in order to attract, motivate and
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