The managers always wish to pay high bonuses. They want to provide the employees with a huge feedback, how they are satisfied with their effort. But in reality, the employees ask for the real feedback, the money is a nice extra for them. The bonuses cannot work as the supplement for the real feedback provided by the manager. The managers have to respect the real performance management cycle and the bonus is just a small part of the whole performance management cycle.
The real performance management cycle has several steps, which have to be performed to have a successful performance management in place:
- Goal Setting
- Mentoring and Coaching
- Performance Appraisal and Bonus Payment
The managers do not like the step about Mentoring and Coaching as they have to spend a lot of time with their employees trying to meet their goals. The manager has to be very interested about the effort of the individual employees. The manager has to ask on a daily basis on the progress and has to provide the help needed to reach the defined goals.
The managers tend to believe, the promised bonus will push the employees to find the creative ways to fulfill the goals. In reality, the employees can be really de-motivated as they see fewer chances to reach the goals and to get the really high bonus.
The relation of the bonus and the real performance is very tight and the manager plays the most significant role in that. The manager cannot be in the background and he or she has to provide the employee with the help during the whole period. The bonus is not enough.
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