Group Bonus Schemes

A group bonus scheme is applicable where a group of workers work together to finish a job which a single individual can not accomplish. This scheme rewards all the member of the group for time saved, efficiency and acts as an incentive to motivate the workers be more efficient. Example is a bonus to the military officers where the officers have to work as a single unit, Advantages: the scheme encourages teamwork and foster cooperation amongst worker it absorbs less effective workers in the thus reduce employee frustration

Disadvantages: classing worker in to a group and rewarding them is difficult because every worker makes a positive contribution. groups can take time before this take off and work together efficiently

lazy employees will not be recognized easy for punishment while active employee are strained amount of bonus may be small per person

The team as a whole has to be motivated. Thus a plan is usually worked out whereby the bonus for increased output is declared for the teams and then shared by individual members in agreed proportion. Such methods develop a sense of cooperation among team members. It is useful when the measurement of individual work is not possible e.g. in case of construction of dams, buildings etc. The administration of these schemes is easier as the record keeping is for a team output and not individuals. However, it suffers from the fact that all team member are entitled for bonus irrespective of whether they contributed to the increased output or not. The sharing of bonus may be done on arbitrary basis which may lead to dissatisfaction of workers. Further amount per person maybe small.