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Brm: Impact of Bonuses on Employee Behavior

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Brm: Impact of Bonuses on Employee Behavior
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3.4 Advanced Business Research Methods

Impact of bonuses on employee behavior

Group 3.01
J. Dikkers

Carien Beyer 1812781
Kim Klijnsmit 1871447
Myrthe Rustemeijer 1814362
Claudia Sanua 1857134

Date: 20/02/2011

Table of contents

1.1 Introduction page 3
1.2 Research Question page 4
2.1 Theoretical Framework page 4
2.2 Hypotheses page 6
3.1 Methodology page 8
3.2 Sample & Procedure page 8
3.3 Measurement Instruments page 9
3.4 Questionnaire page 9
4.1 Results page 10
5.1 Conclusion
6.1 Reference list

1. Introduction

“English banks’ bonuses will rise into the billions this current year” (BBC news) “Top bonuses are 4000 times modal income” (Elsevier). Goldman Sachs ready to hand out £7bn salary and bonus package... after its £6bn bail-out” (The Dailymail)

Are these bonuses necessary? Do those top executives work so hard that they deserve these excessive amounts of bonuses? And what happens if these bonuses will be abolished from the workforce? These questions lead to our topic and research question: Is there a strong correlation between bonus incentives and employee performance. Using hypotheses we will investigate the impact of bonuses on employee performance by using variables such as motivation, job commitment and job satisfaction. This is a prominent topic in the news because high bonuses are a big factor in the current credit crises, yet the problem does not seem to be solved, even though everyone believes it is justifiable.

This paper starts with presentation of the research already done in the area of bonuses and employee behavior, which will be pointed out in the theoretical framework. After this, the methodology section, the sample of our research will be described together with the items of the questionnaire and a description of the performed



References: Brief, A. P., & Roberson, L. (1989). Job attitude organization: an exploratory study. Journal of Applied Social Psychology, 19, 717–727. Cranny, C. J., Smith, P. C., & Stone, E. F. (1992). Job satisfaction: how people feel about their jobs and how it affects their performance Raghuram Rajan, Bankers Pay is deeply Flawed, Financial times (2008) Georgopolos, B.S., Maoney, G.M, Jones, N.W Herzberg, Frederick (1959). The motivation to work. New York: Wiley, 1959 Hessen, Cory Locke, E. A. (1969). What is job satisfaction? Organizational Behavior and Human Performance, 4, 309–336. Raghuram Rajan, Bankers Pay is deeply Flawed, Financial times (2008) FMI: Management Consultants to the Construction Industry Rousseau, D Schein, E. H. (1980). Organizational psychology. Englewood Cliffs, NJ: Prentice Hall.

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