Monday, November 19, 2012

End of Year Employee Bonuses: Be Careful What You Ask For

Thomas Gilbert wrote in his book, Human Competence: Engineering Worthy Performance,"Money is a beautifully honed instrument for recognizing and creating worthy performance. It is the principal tool for supplying incentives for competence and therefore deserves great respect. Any frivolous use of money weakens its power to promote human capital – the true wealth of nations. " To truly understand the impact bonuses have on employee performance, managers must understand behavior and contingencies of reinforcement. In most organizations, bonuses are loosely contingent on performance. Those who receive them tend not to know specifically what they did to earn them. more

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