Organizational Commitment Satisfaction And Productivity Essay


Discuss about the Organizational Commitment Satisfaction and Productivity.



Company through effective bonus system can reap enough benefits for the overall practice, though experts state that they need to be considered in careful manner (Luciano et al. 2015). They do not always work in every situation or in that sense for all the employees. It is important for the company management to know their employees. It is significant to know the employees who are motivated for striving their goals and respond to the bonuses (Justis, Chan and Werbel 2015). The company needs to have the right type of people for the right place.

One of the significance of efficient bonus plan is the goals that the management sets for the employees. The goals of an organization need to be stretched ones. The management in all probabilities would want their employees to reach for it in order to attain them; however it should never be unattainable so that the employees stop trying (Mattson, Torbi?rn and Hellgren 2014).

This paper has taken in three forms of bonuses which are referral bonus, spot bonus and signing bonus. Firstly, referral bonus takes in the ways the company would be handling the payouts. It might either be at the starting of the probationary period and then again in the end of it or fully at the end (Kee, bin Ahmad and Abdullah 2016). The company needs to decide whether the referral bonus should be for every job or for certain positions within the company (Yang et al. 2016). Companies generally offer higher referral bonuses for referring of the candidates who augments staff diversity and they turn out to be best performers (Deepa, Palaniswamy and Kuppusamy 2014).

Secondly, spot bonuses are generally provided to the employees provided on spot in rewarding their desirable behavior. Spot bonuses can add up to several thousand dollars, though smaller organizations try to keep that reasonable (Wei and Yazdanifard 2014). Companies do well in keeping spot bonuses as an element of surprise. It helps them motivating the employees as employers keep them guessing and offer these bonuses in irregular manner (Ockenfels, Sliwka and Werner 2014).

Lastly, this paper dealt with signing bonuses. This type of bonus would motivate more effort from the new recruits along with generating of more positive feelings inclined towards their new owners (Deepa, Palaniswamy, and Kuppusamy 2014). These types of bonuses are very common within the IT employees where employers require attracting individuals having gifted skills (Brandts and Belda 2016). Through this signing bonus employers can also motivate a desirable candidate in moving in from another state.


It is desirable and much passionate from the part of the company in creating a perfect bonus scheme for everybody working for them. There are certain factors that need to be kept in mind while coming up with effective bonus plans.

  1. Hiring: The management needs to generate multiple levels for the employees for striving for higher levels.
  2. Simple: The management should focus on making the bonus plan a simple one so that employees get to understand what actually they need to do.
  3. Objective: The main objective of the bonus scheme would be making the bonus based on the results that are computable and not on some subjective estimation. This restricts any sort of biasness as employee performance would be the last thing that would state who would be getting bonus and who not.
  4. Timely: The frequency needs to be varied as per the extent of job. Each level of employee should be entitled to bonus depending on the way management wants to pay them.


Brandts, J. and Belda, C.S., 2016. Experiments on Organizations. In Experimental Economics (pp. 136-148). Palgrave Macmillan UK.

Deepa, E., Palaniswamy, R. and Kuppusamy, S., 2014. Effect of performance appraisal system in organizational commitment, job satisfaction and productivity. Journal of Contemporary Management Research, 8(1), p.72.

Justis, R.T., Chan, P.S. and Werbel, J.D., 2015. Reward Strategies for Franchising Organizations. Journal of Small Business Strategy, 2(2), pp.16-23.

Kee, L.B., bin Ahmad, R. and Abdullah, S.M., 2016. Relationship between financial compensation and organizational commitment among Malaysian bank workers. Asian Business Research, 1(1), p.75.

Luciano Jr, R.A., DiMichele, C. and Morrow, J.W., Bally Gaming, Inc., 2015. User interface system and system-controlled bonus system. U.S. Patent 9,022,866.

Mattson, M., Torbi?rn, I. and Hellgren, J., 2014. Effects of staff bonus systems on safety behaviors. Human Resource Management Review, 24(1), pp.17-30.

Ockenfels, A., Sliwka, D. and Werner, P., 2014. Bonus payments and reference point violations. Management Science, 61(7), pp.1496-1513.

Wei, L.T. and Yazdanifard, R., 2014. The impact of Positive Reinforcement on Employees' Performance in Organizations. American Journal of Industrial and Business Management, 4(1), p.9.

Yang, M.M., Young, S., Li, S.J. and Huang, Y.Y., 2017. Using System Dynamics to Investigate How Belief Systems Influence the Process of Organizational Change. Systems Research and Behavioral Science, 34(1), pp.94-108.

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