ACCA Applied Knowledge · Business and Technology · Motivating individuals and teams
A company introduces an individual cash bonus based solely on the number of units each employee produces. Which is the most likely drawback of this reward design?
The likely drawback is that it encourages quantity at the expense of quality and teamwork. Employees focus on the one measure rewarded, so they may rush, ignore defects or avoid helping colleagues, because only units produced earn the bonus.
- AIt may encourage quantity at the expense of quality and teamworkCorrect
- BIt removes all extrinsic rewards from the job
- CIt guarantees employees will become intrinsically motivated
Explanation
Rewards tied to a single measure tend to focus effort on that measure. Output-only bonuses often harm quality and discourage cooperation or helping colleagues. The other options are wrong because a cash bonus is an extrinsic reward and does not guarantee intrinsic motivation.
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