Case #3 Bonus Backfire
Do you think that, as a manager, you would use bonuses regularly? Why or why not?
From my point of view, it is beneficial for managers and leaders to use bonuses regularly. According to EXPECTANCY THEORY, an individual’s motivation is a multiplicative function of expectancy, instrumentality, and valence. Thus motivation will be high when instrumentality is high and valence is strongly positive. To avoid problem mentioned in case, managers may reward employees through 360°EVALUATION. It measures customer ratings, self ratings and evaluations from boss and peers. Workers who given rewards for behaviors are more likely to engaged in rewarded behaviors.
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 behavior?
I learned playing piano when I was in primary school. In order to encourage me to practice more time, my mother made promise to buy me a gift if I finish practicing two hours every per day during a month. However, although I succeed in doing the goal, later on I somehow lacked my interest in playing piano. Therefore I thought rewards can cause negative effects, since people would feel themselves being compelled to do things simply to get the rewards they want.
3. Do you think providing group bonuses instead of individual bonuses would be more effective or less effective? Why or why not? I think group bonuses have both positive and negative influences, but it can hardly be more effective than individual bonuses. Take PROFIT-SHARING PLANS for example, managers will reward employees based on their overall organizational profit. The criticism think organizational profits