Advantages and Disadvantages of Group Bonus Plan

Benefits associated along with group bonus schemes involve

i. It encourages teamwork and cooperation among workers

ii. It decreases absenteeism as an absent worker is found to decrease the group earnings and the group might dislike him

iii. The approach decreases supervision time and cost, hence it is administratively much simpler.

iv. It greatly decreases the number of rates to be negotiated.

v. It might encourage flexible working arrangements in the group.

However it suffers the following setbacks

i. It may not provide a strong incentive to the individual workers, as it is group based.

ii. Less hardworking group members are as same rewarded as the very hardworking ones:  it may reasons demonization in the group.

iii. It is hard to find out each group members' fair, have of the bonus.