Situation
Employees at a certain enterprise started demonstrating worse results in their work when the concept of their payment bonuses had changed. As they began to receive less money, their motivation to do more disappeared.
Analysis
The possible consequences of this situation are not positive. As employees work without a dew level of motivation, their performance will surely be worse. This, in turn, will lead to a change for the worse in the company’s achievements. Thus, the company will lose some of its usual profits. As a result, the company’s owners will not benefit from their decision to reduce the levels of bonus because the earnings of the company will become less than before.
Recommendation (based on readings and class discussion)
In this situation, the decision to lessen the levels of bonuses for good work by the company’s owners does not appear to be wise. Of course, minimizing the levels of bonuses is a way of economizing, but here the consequences of such a decision have a greater meaning. Having a smaller level of earnings, the company will not meet the purpose that its owners have. They will not be able to enlarge their income using economizing on motivating techniques. Instead of lessening the bonuses, the company’s managers should develop better strategies for motivating their workers so that they could guarantee higher levels of the company’s earnings. Among such motivation, strategies are developing a more detailed system of bonuses and offering prizes for special achievements at work. For example, if an employee can do more work during one’s shift, he or she can be motivated by an additional 15 % extra charge for every additional piece of work. If an employee spends more time working than it is assumed by the agreement and earns more profit for the company, he or she can be offered a subsidized voucher for a holiday trip at the end of the working year. The company’s management may develop a detailed system of such motivation so that employees could have a stimulus to achieve more in their work. In addition, the company’s employees can be motivated to receive an additional education to improve their qualifications if their working results are considerable. This will add to the workers’ commitment because they will acquire a chance to have higher levels of payment due to the new qualification. Another effective motivation factor is an opportunity for professional growth. If an employee knows about the chance to have a higher position with a better level of salary, one will be motivated to work with greater commitment and be loyal to the company rather than to search for better opportunities somewhere else. Finally, the company’s management should also add to the level of motivation of the employees. First, a manager should create an inspiring atmosphere within the collective body of workers where all of its members will have a due level of respect. Secondly, a manager may motivate each worker by employing personal meetings and correspondence aimed to help the employee cope with his or her difficulties that arise at work. Thirdly, a manager should be watchful regarding all the possible difficulties that may threaten a positive atmosphere within the collective body including personal conflicts, gossip, etc.