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Business Report - Book Report/Review Example

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The principal aim of this study is to attempt to clearly establish what exactly are bonus schemes as well as the various aims and rationale behind…
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Business Report
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Download file to see previous pages BFS has a dedicated team of finance specialists who are able to offer its clients a wide range of specially tailored financial solutions for their businesses.
The report will clearly highlight what exactly are bonus schemes; the aims of developing bonus schemes, the rationale behind the establishment of the bonus schemes, analyzing the link between bonuses and work performance.
The report will also proceed to discuss the current bonus schemes that are available to (BFS) employees as well as examine the role that is played by these bonuses in enhancing the employee commitment to BFS and general motivation. The paper also highlights a number of bonuses and their potential effect on employee performance and provides a set of possible recommendations that can be used by BFS in modifying and developing their current bonus and reward Scheme.
Bonus Schemes are basically designed to help provide cash payments to an organization’s employees. These payments are usually based on the general performance of the individuals, the work team within which they happen to be working within, the performance of the organization itself or a combination of these factors. Bonuses are also variably referred to as pay at risk or variable pay (Armstrong, 2012).
Armstrong and Murlis, (2007) argue that One of the key defining characteristics of bonuses is that they are normally not consolidated into an employee’s base pay. Employees have to ensure that they strive to earn and continually re-earn the bonus. This is found to be markedly dissimilar to increases arising from some of the individual contingent pay schemes such as contribution-related pay, work performance related pay and pays that happen to be related to services that are normally found to be consolidated. As a result of the nature of these pays that allows employees whose exemplary performance in one year to continually receive them in subsequent years, even though their performance in these ...Download file to see next pagesRead More
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