ob case study_p14242

7/23/2019 OB Case Study_P14242

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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. ehaviour in !edical organisations is

also discussed. The dilemma of managers in dealing with this issue is also discussed.

"#: 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. $f 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. %are 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.

Q: !an you think o" a time in your own li"e being e#aluated and rewarded on a s$e%i"i%

goal led you to engage in un$rodu%ti#e or negati#e beha#iour?

All of us must have experienced the negative effects of rewards in our life at one instance or

other. &ften parental indulgence proves the negative effect of rewards. 'or the achievements

of children the parents ply them with various rewards which gradually have a negative effect

on their performance. 'or motivating them to keep up the good performance the parents are

advised to give them emotional support and provide a supportive atmosphere at home.



&n personal experience, after scoring an impressive mark in #( th )tandard, $ was offered

many rewards from my parents, teachers and school. All this created lethargy in me and

affected my performance. $ became overconfident in my intelligence and skills. The

performance in my #*th )tandard deteriorated to a new low. Thus this experience in my life

changed my outlook regarding the rewards for achievements.

Q&: Do you think $ro#iding grou$ bonus instead o" indi#idual bonus would be more

e""e%ti#e or less e""e%ti#e?

oth group bonus and individual bonus has its own pros and cons. +roup bonus motivates the

whole group while increasing the productivity of the whole group. Thus interpersonal conflict

among the group members can be avoided. +roup bonus keeps the focus on the group

objective rather than individual objectives.

There might be various levels of performers in a group. $n group bonus all will be rewarded

eually. etter performers get demotivated by this. -nder performers can also score a bonus

just for being the part of the group.

$ndividual bonus recognies the better performers in the groups. $t motivates everyone in thegroup to attain and maintain certain standards in the group. The performance of the group

also improves due to this.

$ndividual 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.

Q': (ow do you design a bonus $rogram to a#oid the $roblems?

The bonus programme should be designed by considering the employees, the nature of the

work, the uality 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 adeuately

rewarded. The practice of regular bonus should also be avoided since it makes the employees

less motivated. /ather than bonus a regular positive working atmosphere is to be maintained

in the organisation that motivates the employees for improving their performance.

ob case study_p14242

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