Bonus Scheme Research Articles

Remuneration in science: an analysis from the perspective of the decent work concept

Decent wages in science are necessary because the work of scientists is valuable for ensuring a country's viability and economic growth. This study aims to develop the theoretical and methodological foundations for examining wage policy within the framework of the decent work concept at the sectoral level. Additionally, the study seeks to analyze wage policies within the scientific field to identify areas for enhancement. The authors developed methodological principles for assessing wages in terms of the decent work concept. The assessment of wages confirmed the hypothesis about insufficient wage policy in science, which does not attract new employees to work in scientific institutions, engages scientists in research, and motivates results. The results showed that the science sector belongs to the sectors of the economy with decent wage indicators below the average. An analysis of wage policy in science revealed some positive characteristics and negative trends. Priority objectives were set to raise the prestige and attractiveness of scientific work. These objectives include raising salaries and increasing the minimal guarantees, implementing innovative wage tariffing and bonus schemes, introducing competitive social packages, reducing the gender pay gap, and developing social partnership and wage bargaining regulations. The practical significance of the study is evident in the potential application of the methodology by the National Academy of Sciences of Ukraine. Leaders of scientific institutions and social partners can use this methodology to derive practical benefits.

Executive Compensation and Financial Performance of Quoted Industrial Goods Manufacturing Firms in Nigeria

The study investigated the relationship between executive compensation and financial performance of quoted industrial goods manufacturing firms in Nigeria. The study utilized an ex-post facto research design due to the lack of control over the data collected, focusing on four (4) listed industrial goods manufacturing companies in Nigeria out of a population of thirteen (13). This sample was selected purposively based on the availability of complete and up-to-date data from the companies' annual financial reports obtained from the Nigerian Exchange Bulletin for the year 2023. Through secondary data sources, the researcher conducted descriptive statistics and linear regression analysis to investigate the relationship between salary, bonus, and profit after tax of the selected firms. This approach allowed the researchers to explore existing data and draw insights into the financial dynamics of the industrial goods manufacturing sector in Nigeria without directly intervening in the data collection process. The results revealed a significant positive association between salary and profit after tax, indicating that higher salaries may contribute to increased profitability for these firms. However, bonus was found to have no significant impact on profit after tax. These findings suggest that while salary plays a crucial role in influencing profitability, bonus schemes alone may not directly affect the financial performance of industrial goods manufacturing companies in Nigeria. Hence, the investigators further suggested that management should review salary structures to ensure competitiveness and alignment with employee responsibilities and performance, potentially leading to increased productivity and profitability. Also, management should implement performance-based bonus schemes tied to specific key performance indicators or financial targets to incentivize employees towards strategic goals and drive productivity.

A STUDY ON THE RELATIONSHIP BETWEEN LABOUR WELFARE SCHEMES AND ITS IMPACT ON JOB SATISFACTION AMONG WORKERS IN TITAN WATCH COMPANY, HOSUR – A CASE STUDY

In an industrial economy, the workers are subject to periodic unemployment due to cyclical fluctuations in business, sickness, industrial accidents and old age. In India it has the obligation from the Government side to help the labourers and provide them security and adopt labour welfare measures in the form of various schemes such as Workmen’s Compensation Act, Employees’ State Insurance Act, Finances and Contributions, Sickness benefit, Medical benefit, Maternity benefit, Disablement benefit, Dependents’ benefit, Employees’ Provident Fund and Bonus schemes, Gratuity Scheme and Employees’ Pension Scheme. All these welfare schemes have followed and adopted in industries for the welfare of labourers both men and women. So, the present study is done to understand the various labour welfare facilities such as statutory and non-statutory welfare facilities provided by the company to labourers / workers namely TITAN watch company, Hosur, and its impact on job satisfaction. This study shows the positive relation between welfare facilities such as medical facilities, crèche, canteen facilities, recreation, toilet facilities, rest room facilities, reading room, loan facilities for their children’s education, marriage, housing loan, insurance coverage etc. and job satisfaction. Job satisfaction is very important to know the level of contribution to workers towards his / her work and how welfare facilities affect. Labour welfare schemes are provided to strengthen man power in both physically and mentally. Thus, these facilities are more effective in improving the performance and building the morale of every worker working in industries, in order to increase the productivity of labourers.

Changing risk-taking: the effects of tasks and incentives on the variability of risk-taking

The capability to vary risk-taking is an important aspect of performance in organizations where behavioral adjustments are required to suit changing objectives. Incentive schemes are one way to influence risk-taking. Yet, evidence indicates incentives do not have their intended effects and may encourage excessive risk-taking. To examine this issue, we draw on compensation activation theory that proposes individual motives are activated by specific features of compensation schemes and expressed in behaviors. We extend compensation activation theory by focusing on (1) responses to a sequence of tasks designed to activate risk-taking and (2) the effects of incentive schemes on these relationships. We conducted a laboratory experiment with 173 participants who were allocated randomly to one of three bonus schemes. The linear scheme has a linear relationship between returns from risk-taking and rewards. The bonus cap scheme operates similarly up to a point where no further rewards are paid. The outcome-adjusted scheme, with a two-year hypothetical time frame, requires realized gains for the first year of investment and no losses in next year. Results support our hypotheses that these incentive schemes have differential effects on the strength and direction of relationships between risk-taking across a sequence of tasks. The linear scheme strengthens the relationships between risk-taking across sequential tasks. Conversely, the bonus cap scheme weakens the relationships between risk-taking across sequential tasks. The outcome-adjusted scheme creates variability by decreasing risk-taking when the connections between risk-taking and rewards are less salient and increasing risk-taking when connections between risk-taking and rewards are more salient. We contribute to the literature concerning compensation activation and incentives by deepening our understanding of the roles played by tasks and incentives in activation processes and by explaining the variability of risk-taking in terms of changes in connections between behavior and rewards.

A Budget Constraint Incentive Mechanism Based on Risk Preferences of Collaborators in Edge Computing

Mobile Edge Computing (MEC) is a new distributed computing method based on the mobile communication network. It can provide cloud services and an IT service environment for application developers and service providers at the edge of the network. Computation offloading is a crucial technology of edge computing. However, computation offloading will consume the resources of the edge devices, and therefore the edge devices will not offload computation unconditionally. In addition, the service quality of edge computing applications is related to the cooperation rate of edge devices. Therefore, it is essential to design an appropriate incentive mechanism to motivate edge devices to execute computation offloading. However, the current existing incentive mechanisms have two problems: Firstly, existing mechanisms do not account for probability distortions under uncertainty in collaborator utility valuation models. Secondly, the platform ignores the risk preferences of collaborators in multiple rounds of decision-making. To address these issues, we propose an incentive mechanism based on risk preference, IMRP. The IMRP considers the collaborator’s probability distortion, introduces an uncertain utility bonus scheme, and builds a probability distortion model to influence the collaborator’s willingness to offload tasks. The IMRP also considers the collaborator’s risk preference and builds the collaborator’s risk preference model to influence the collaborator’s bidding decision. Simulation results show that our mechanism effectively improves the cooperation rate of edge devices and the utility of the requester.

Gray correlation analysis of strategic human resource management and corporate performance

Abstract In today’s competitive business landscape, effective human resource management (HRM) is pivotal for the growth and performance of enterprises. This study uses gray correlation and multiple regression analyses to investigate the connection between HRM practices and corporate performance. We developed an evaluative framework to assess the impact of strategic talent management on company outcomes. Survey data were analyzed to unveil the dynamics between HRM variables and corporate performance. Our findings highlight a significant relationship between employee recruitment, incentive programs, promotion pathways, and an innovative culture with corporate success, with p-values less than 0.01. Notably, stock options (0.354), bonus schemes (0.325), and promotion opportunities (0.331) show the strongest correlations. The gray correlation analysis further indicates that the HRM-performance linkage in three surveyed companies exceeds 0.7%, underscoring HRM’s vital role in enhancing enterprise performance. This research presents gray correlation analysis as an effective tool for businesses to evaluate the impact of their HRM strategies on performance.

Group budget‐based bonus scheme and group cooperation: The role of social value orientation, goal alignment, and group identity

AbstractIn a workgroup setting, we use a quasi‐experiment to examine whether and why proself rather than prosocial employees benefit more from high group identity to foster group cooperation. We validate the goal‐transformation hypothesis that proself rather than prosocial employees benefit more from high group identity. Consistent with the goal‐expectation hypothesis, we show that goal alignment explains why proself rather than prosocial employees benefit more from high group identity. The main implication of our results is that, when group identity is high, proself employees reinforce their strategic behaviour to cooperate with the group to obtain higher individual payoffs through greater goal alignment.

Pengaruh Effective Tax Rate, Bonus Scheme, Tunneling Incentive, dan Leverage terhadap Transfer Pricing dengan Size sebagai Variabel Moderasi

Transfer pricing is a transaction price that is included in every product or service from one company to another or from one industry to another with the same or different companies and has a special relationship. This study aims to determine the effect of effective tax rates, bonus schemes, tunneling incentives, and leverage on transfer pricing with size as a moderating variable in manufacturing companies listed on the IDX for the 2018-2021 period. The analytical method used is logistic regression analysis and Moderated Regression Analysis (MRA). The results of the study show that the bonus scheme, tunneling incentive, leverage, and size have a partial effect on transfer pricing. Meanwhile, the effective tax rate has no partial effect on transfer pricing. Size is able to moderate the effect of bonus schemes, tunneling incentives, and leverage on transfer pricing. However, size is unable to moderate the effect of the effective tax rate on transfer pricing.

Is capture-based aquaculture viable? The case of Atlantic cod in Norway

Capture-based aquaculture (CBA) is an important branch of the aquaculture industry that differs from closed cycle farming in that the stocking material consists of captured wild fish or other aquatic organisms. By skipping the difficult early production stages of fish farming, producers can test whether assumed market advantages such as high quality and consistent supply result in higher prices – and whether these are high enough to incentivize further development of CBA and eventually close the production cycle. CBA-initiatives can also be supported by different policy measures to stimulate the activity. Since these measures involve costs, it is important to know at what level and for how long these measures should be implemented to promote economically sustainable CBA activities. We study CBA of Atlantic cod (Gadus morhua) in Norway and find an average price premium of 26% compared to wild harvested cod, but with large interannual variation. However, declining quantities of cod from CBA following reductions in a quota bonus scheme to stimulate activity, indicates that the price premium is not sufficiently large to incentivize further development of the CBA branch of the Norwegian cod industry.

AN ASSESSMENT OF SHAREHOLDERS PROFITABILITY AS A STRATEGY FOR TAX AVOIDANCE.

Tax avoidance is a common problem among many nations all over the world, especially the developing and third world countries. Most citizens see tax payment as very offensive, and seek all means to avoid tax liabilities. Kenya is not exempted from this economic menace. In spite of the several tax holidays enjoyed by firms in Kenya, most firms have resorted to creatively avoid tax under the disguise of shareholders wealth maximization. This act is seen by the researchers as a corporate governance factor because the provision of bonus schemes by shareholders for managers for abnormal wealth maximization had justified the act of tax avoidance in the Kenyan corporate world.

Influence of Employees Motivational Factors on Total Quality Management Implementation in the Construction Industry

This study determines the employees’ motivational factors and their influence on Total Quality Management (TQM) implementation in the construction industry. The instrument used in the study was a survey questionnaire with a sample size of 536 out of the 641 questionnaires which were administered to population consists of top management in the Ghanaian construction industry. The analysis was carried out using Exploratory Factor Analysis (EFA) technique. The study identified the following motivational factors that influence the successful implementation of TQM in the construction industry: Teamwork, Recognition of employees, Conducive working environment, Employee involvement in TQM activities, Education and training/re-training of staff, Salary/position promotion, Bonus scheme, Employee commitment, Employee reward, and Availability of a suggestion forum for employees. The findings revealed that all the motivational factors considered in the study have a high influence on TQM implementation in the construction industry. The study therefore suggests that managers should consider these identified motivational factors when applying the principle of Total Quality Management in the construction industry. Consequently, employees that are motivated with these identified motivational factors will help to achieve successful implementation of TQM in the construction industry and subsequently give their best effort to accomplish the job.

The Effect of Board of Directors Narcism, The Board of Directors' Bonus Scheme, And The Ceo's Duality on Financial Reporting Quality

This study aims to explain the effect of Board of Directors Narcissism on Financial Reporting Quality; the effect of the Board of Directors Bonus Scheme on the Quality of Financial Reporting; and The Effect of CEO Duality on Financial Reporting Quality. This research method is quantitative causal type which is asymmetric. The research locations are all state-owned companies listed on the Indonesia Stock Exchange for the 2017-2020 period. The technique of collecting data is through surveys on secondary data on the IDX official website (www.idx.co.id). The data analysis technique is linear regression of panel data with the help of Eviews 9.0 software. The results showed that the Narcissism of the Board of Directors had a negative and significant effect on the Quality of Financial Reporting; The Board of Directors Bonus Scheme has a positive and insignificant effect on the Quality of Financial Reporting; and CEO Duality has a negative and insignificant effect on the Quality of Financial Reporting. The results of this study as input for the company are that the Narcissism of the Board of Directors, and Dualism of the CEO are not good for the company, so they must be prevented or minimized.

The Effect of Board of Directors Narcism, The Board of Directors' Bonus Scheme, And The Ceo's Duality on Financial Reporting Quality

This study aims to explain the effect of Board of Directors Narcissism on Financial Reporting Quality; the effect of the Board of Directors Bonus Scheme on the Quality of Financial Reporting; and The Effect of CEO Duality on Financial Reporting Quality. This research method is quantitative causal type which is asymmetric. The research locations are all state-owned companies listed on the Indonesia Stock Exchange for the 2017-2020 period. The technique of collecting data is through surveys on secondary data on the IDX official website (www.idx.co.id). The data analysis technique is linear regression of panel data with the help of Eviews 9.0 software. The results showed that the Narcissism of the Board of Directors had a negative and significant effect on the Quality of Financial Reporting; The Board of Directors Bonus Scheme has a positive and insignificant effect on the Quality of Financial Reporting; and CEO Duality has a negative and insignificant effect on the Quality of Financial Reporting. The results of this study as input for the company are that the Narcissism of the Board of Directors, and Dualism of the CEO are not good for the company, so they must be prevented or minimized.

Does Financial Reporting Quality Moderate Factors Affecting Fraud Tendency?

This research examines the influence of Narcissism, Board of Directors Bonus Scheme, Age, Gender and Term of Service with the moderating variable of Financial Reporting Quality on the tendency to commit fraud. Research respondents are CEOs of banks listed on the Indonesia Stock Exchange in 2015-2018 and the sampling technique uses the Purposive Sampling method. This study uses statistical regression analysis to see the effect of the independent variable on the dependent variable or the response to the moderating variable. The regression parameter test consists of the F test, to find out whether the independent variable has a simultaneous effect on the response variable or not. Then the t test, to test the effect of the independent variables one by one on the response variable. By using panel data regression modeling using an unweighted Fixed Effect Model and a weighted Fixed Effect Model, also using partial testing on the unweighted Fixed Effect model and the weighted Fixed Effect model. The results showed that panel data regression modeling using the unweighted Fixed Effect Model resulted in a significant simultaneous test, meaning that the variables of narcissism, directors' bonus scheme, age, gender and tenure affect the tendency to commit fraud simultaneously. Partial testing on the unweighted Fixed Effect model shows that individually only the tenure of service variable affects the tendency to commit fraud. The Fixed Effect Model with weights produces significant simultaneous tests, meaning that simultaneously the variables of narcissism, directors' bonus scheme, age, gender and years of service affect the tendency to commit fraud. And a partial test on the Fixed Effect model with weights shows that individually there are no independent variables that affect the tendency to commit fraud.

Mission and the Bottom Line: Performance Incentives in a Multigoal Organization

Abstract We assess the role of monetary incentives in a mission-oriented organization by randomly assigning workers to one of two bonus schemes, incentivizing either the performance of a microcredit program (bottom line) or the empowerment of clients (mission). We find that the credit bonus improved credit-related outcomes but undermined the social mission, while the social bonus did not harm the bottom line. These results are consistent with a multitasking model with production spillovers or with prosocial behavior. We show that when mission-related rewards are not feasible, organizations that care about both the mission and the bottom line prefer flat wages to incentives.

Rewarding safety performance: Improving safety or maintaining beliefs?

The enduring link between the annual cash bonus and safety metrics that is common practice across the oil and gas industry, and in some other domains, is in part due to job market pressures, and possibly supported by a self-reinforcing belief system. The current study aims to investigate the contemporary annual cash bonus practice in the oil and gas industry from the perspective of the employees and managers, regarding both the perceived value of bonus payments and the influence these have on safety. Forty-eight employees participated in semi-structured interviews in which they described their sense of the impact of the bonus scheme on safety and what could be improved. The results of the case study indicate that only a minority of the frontline properly appear to understand the link between safety performance and their annual bonus payment. Even for those with an understanding, positive safety behaviours are not directly encouraged by the bonus since the incentives are linked to the absence of incidents and are not relevant to the workers’ daily activities. There is strong evidence for a negative impact on incident reporting, both through under-reporting and reclassification of incidents. However, the current practice is considered valuable by the respondents as it signals the importance of safety alongside production and profit. Taken together, the results suggest that the contemporary annual cash bonus practice should be discontinued in the long term because of the limited influence on safety behaviour and potential adverse effect on safety outcomes, simultaneously ensuring that the commitment to safety is communicated through alternative means.

On the psychology of bonuses: The effects of loss aversion and Yerkes-Dodson law on performance in cognitively and mechanically demanding tasks

Monetary bonus schemes are one of the most well-used forms of employee compensation in the modern business world. Yet, such schemes are primarily constructed as gains to incentivize an increase in work effort and performance. Using insights from behavioral economics, we construct a novel extrinsic compensation system modelled after Loss Aversion and the Yerkes-Dodson Law. We test this system using two experimental designs that measure performance based on cognitive- and mechanical efforts, respectively. In study 1 we find no difference in cognitive performance between 4 different bonus schemes. In a pre-registered study 2 we again find no difference in mechanical performance between 4 different conditions. Contrary to previous research, our findings suggest no significant effect of bonus schemes modelled after Loss Aversion and Yerkes-Dodson Law, whether administered alone or in combination. We discuss limitations and implications for compensation design and research.

Addressing Changes in Professional Behavior by Teacher Bonuses: A Mixed-Methods Approach

How can a bonus program affect the performance of teachers in classrooms? This paper collected data from teachers employed in Brazilian state-run schools to examine the key mechanisms through which a teacher bonus scheme can have a causal effect on the academic achievements of students. Using mixed-methods research and data triangulation from questionnaires and semi-structured interviews with teachers, this study finds limited empirical evidence supporting the bonus program of the state of São Paulo. The bonus program created no additional incentive for educators to start/continue working in state schools, and it was not responsible for the improvement of teaching activities.

Agglomeration bonus and endogenous group formation

AbstractAgglomeration bonus schemes are envisioned to incentivize the connectivity of habitat conservation across landowners. Assuming full cooperation among landowners at the landscape scale, the bulk of the literature theoretically finds that agglomeration bonus schemes are more cost effective in achieving biodiversity conservation than spatially homogenous payments. However, it may be rational for landowners not to cooperate all together but, rather, to cooperate within smaller groups. Here, we analyze the cost effectiveness of agglomeration bonus schemes when such partial cooperation is allowed, that is, when cooperation is endogenously chosen. We introduce a spatially explicit ecological‐economic model within a coalition formation game to assess how landowners form stable coalition structures and how this affects biodiversity conservation under a wide range of (i) degrees of spatial cost autocorrelation, (ii) bonuses and flat‐rate payments, (iii) species dispersal rates, and (iv) coordination costs. We find that agglomeration bonus schemes are more cost effective than homogenous payments only for low public expenditures. This condition is not identified if full cooperation is assumed. We find, however, that full cooperation never emerges and hence that such an assumption leads to an overestimation of the cost effectiveness of agglomeration bonus schemes. Moreover, we find that the cost effectiveness of agglomeration bonus schemes increases when the spatial cost autocorrelation and species dispersal rate decrease. Finally, coordination costs do not affect the cost effectiveness of the agglomeration bonus scheme but they have implications for its design because of their impact on coalition formation.

Human Resource Management Practices and Teachers’ Performance in Universal Primary Education Schools of Kyankwanzi District, Uganda

This study examined the relationship between Human Resource Management (HRM) Practices and Teachers’ Performance in Universal Primary Education Schools of Kyankwanzi District. The study was guided by Herzberg’s Two Factors Theory of motivation (1959). The study adopted a cross sectional survey applying both quantitative and qualitative research methods. A total of 125 respondents comprising head teachers, teachers and District Education Officer participated in the study. Data was collected through questionnaire administration and key informant interviews. The collected data were analysed descriptively using SPSS® computer software version 21. The study findings concluded that, training is generally low in UPE schools. As a result, pupils in UPE schools perform poorly compared to those in private schools. The study also concluded that rewards are generally unsatisfactory for teachers. This does not only negatively affect performance of teachers but pupils as well which is why UPE schools are outperformed by private schools. It was also concluded that resourcing practices were not effectively managed. Many UPE schools had poor screening mechanisms of job applicants and ended up hiring less qualified teachers. The study recommended that: There is need for Ministry of Education to effectively implement the National Teacher Policy teacher designed to professionalize teachers, develop standards and improve the development, management, and utilization of teachers in Uganda; There is need for district local governments in collaboration with the central government especially ministry of finance to consider introducing bonus and allowance schemes for all teachers under UPE program to motivate them; There is need for school head teachers to directly have an input in the recruitment process because they understand well the kind of teachers they need Keywords: Human Resource Management, Teachers’ Performance DOI: 10.7176/JEP/13-2-03 Publication date: January 31 st 2022