• A CEO of a technology company has unexpectedly made an extremely large profit during the past financial year. Initially she was going to give a large bonus to her employees, but has recently learned that too many rewards may do more harm than good to employees’ intrinsic motivation. She is now worried and is no longer sure what to do. What would be your advice for this CEO on whether or not she should provide large bonuses? Please use theories and research evidence to support your advice.

 

Answer rating: 100% (QA)

My advice to the CEO would be to carefully consider the potential effects of large bonuses on employee motivation and wellbeing While bonuses can prov... View the full answer