Impact of Bonus, Incentives and CSR
In companies they give incentives or premium or bonus wages to workers who perform well or if there is a festival like Diwali, Christmas, etc. Every worker is special in his or her own ways. They are an asset to the company. If they are lazy and don’t do their allotted work for the day, the manahement will fire them not sit and relax. But if they perform more than the allotted work and finish everything on time or before their work time is over, they give incentives or Bonuses.
I am going to discuss these Bonuses. How many types are there?
- Indivudual incentive plans
- Group/collective incentive plans
The first plan has two sects.They are as follows.
- Different peace rate plans( Taylor’s differential piece rate plan, Merrick Multiple price rate plan, Gantt task bonus plan)
- Premium Bonus plans or bonus sharing plans(Halsey premium plan, Halsey weir plan, Rowan premium plan, Bedaux point premium plan, Emerson’s efficiency bonus plan, Barth’s variable sharing plan, accelerating premium plan, Baum differential plan, Diemer system
The second plan includes the following
Priestman Bonus plan, profit sharing and labor partnership plan, budgeted expense Bonus, cost efficiency, Towne Gain Sharing plan, waste reduction Bonus.
Why knowing these plans are necessary for a startup company because it helps them know their best work man and how to captivate him to work for his company alone not for other companies.
All these plans have their own profits and losses. The company has to choose the best plan otherwise they may run into losses and they in the future have to shut down their company.
Running a business takes guts. Starting a business and being a beginner takes even more than that. We have to appreciate and encourage the startup owners by motivating them.
Human resources is very, very important to the company. Without them, a company is like a dry land. The personnel policies of the company must be in sync with the employees otherwise the employees after working for one or two year in a reputed company, they may find another company to work. It is that simple.
Integrity is another important feature in a company. The salary package must be paid according the employees work done so far. The salary must not fixed. It should be fluctuating. The respective concerns must take notes of this, and give the incentives or bonuses to the employees before considering all the facts.
Knowledge is power. This must be the first and foremost principle in any company. They have to create innovative ideas and how to develop them and have multiple branches all over the world.
In short, product pricing, promotion, place and distribution forms the basis of any company.Other than this, the above things are also important for the company’s success. If they understand this basic principle, they can attain victory in whatever task it may be. Corporate social responsibility must also be present in companies. They should not the affect the society in any form. They should donate a portion of their profits earned to charitable deeds.