SUMMARY

The whole case discusses the negative effects of rewards for an exceptional performance.
Although the rewards usually serve as a motivation for improving performance, it is often
found that the rewards often backfire and deteriorates the performance. The views of many
experts are discussed in this matter. The fact is established by the observations made in
children and their behaviour. The behaviour is also projected to many real life scenarios in
various social situations.
The behaviour pertaining to the organisational setting is discussed in detail and views of
eminent psychologists like Edward Deci is also stated. Behaviour in Medical organisations is
also discussed. The dilemma of managers in dealing with this issue is also discussed.
Q1: Do you think that as a manager, you would use bonuses regularly? Why or Why
not?
A manger is advised to use the bonuses judiciously as this propels a huge motivation in
individuals. If provided with the bonuses regularly, it may lose its importance and value.
Employees may gradually refuse to work without the bonuses in the future. Thus the purpose
of bonuses is not met. The mangers may take care of providing a positive environment to
motivate the employees rather than piling up the bonuses. The regular bonuses also may
result in moral, ethical and personal conflicts. The bonuses may be given to employees
depending upon the emotional intelligence of the managers. Care must be taken to analyse
the effects of bonus on the employee psyche. Thus rather than a factual decision the subject
must be dealt as per the managers discretion.
Q2: Can you think of a time in your own life being evaluated and rewarded on a specific
goal led you to engage in unproductive or negative behaviour?
All of us must have experienced the negative effects of rewards in our life at one instance or
other. Often parental indulgence proves the negative effect of rewards. For the achievements
of children the parents ply them with various rewards which gradually have a negative effect
on their performance. For motivating them to keep up the good performance the parents are
advised to give them emotional support and provide a supportive atmosphere at home.

On personal experience, after scoring an impressive mark in 10th Standard, I was offered
many rewards from my parents, teachers and school. All this created lethargy in me and
affected my performance. I became overconfident in my intelligence and skills. The
performance in my 12th Standard deteriorated to a new low. Thus this experience in my life
changed my outlook regarding the rewards for achievements.
Q3: Do you think providing group bonus instead of individual bonus would be more
effective or less effective?
Both group bonus and individual bonus has its own pros and cons. Group bonus motivates the
whole group while increasing the productivity of the whole group. Thus interpersonal conflict
among the group members can be avoided. Group bonus keeps the focus on the group
objective rather than individual objectives.
There might be various levels of performers in a group. In group bonus all will be rewarded
equally. Better performers get demotivated by this. Under performers can also score a bonus
just for being the part of the group.
Individual bonus recognizes the better performers in the groups. It motivates everyone in the
group to attain and maintain certain standards in the group. The performance of the group
also improves due to this.
Individual bonus can cause conflicts among the group. Ego clashes appear in the group and it
loses the objectivity. This reduces the productivity of the group. The focus of the group is
also shifted. Each individual concentrates on achieving their goal and obtaining rewards.
Q4: How do you design a bonus program to avoid the problems?
The bonus programme should be designed by considering the employees, the nature of the
work, the quality of the work performed and the way an employee performs. Thus the bonus
system should be designed as per the emotional intelligence of the manager. Exceptional
tasks performed by good employees should not be neglected and should be adequately
rewarded. The practice of regular bonus should also be avoided since it makes the employees
less motivated. Rather than bonus a regular positive working atmosphere is to be maintained
in the organisation that motivates the employees for improving their performance.