The current bonus system is inconsiderate to some of the hard working employees. It has been noted that some of the managers are receiving undue bonuses provided by the company. It should be based on the performance level of each manager to determine the bonus that one should be given. A balanced and considerate bonus system puts into consideration the various aspects that are employed by the particular level managers and the profitability contributed by them to the company profits. The different levels that register low-profit levels should not qualify for any bonus. It is from the company provision that 12 percent of the profit should be shared among the company managers. However, on keen observation of the contributors to the realization of the company profits, some managers did not make any impact hence would be proper to exempt them from the bonus system. The only importance of such bonus system is that all managers are considered for the bonus despite the unproductivity in some levels. Therefore, it is not discriminative.
Bonus calculation
For 100,000 earnings in a section, the targeted amount would have been 40% of the total. Therefore, a manager would get a share from the 40% value that is the remaining amount. If the particular target were attained, then the manager would part with 50% of the bonus. The rate would increase by 5% in the same manner, and with the reduction, it would also be similar.
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The proposed bonus system would be significant to the division managers of the various levels. It is clear that the department managers would be impacted by the various ways the bonus would affect to them. In terms of performance, it would be very significant for the most of the people would consider having a convincing performance so that they would qualify for the bonus. As such, those managers who did not have much push on their part towards any performance would thus be affected to put more efforts towards the performance. Therefore, bonus system would change whole performance levels of the company to improve significantly. It would also discourage laziness given the fact that highly performing levels are awarded while the underperforming receives nothing. Such action would challenge the nonperformers so that they put more efforts in their work. Notably, a performing person would be significantly impacted by the management’s decision. All the processes that would be based on the significant value of the management decision would result in a bonus to those sectors that did well in their work.
The electric company has the most important profitability levels provided by the most relevant product line in the market. It is therefore paramount to note that with various ways that each product is sold distinctly in order to expand the market coverage of the electric company, it is the factor that has brought such significant impact to the enterprise. Based on the system that is used in the company, I commend it, as there is a high possibility of making a profit and discover what other sectors might be lacking that they make losses or do not meet their projections of the business. Given that the manager who attains the same target as the profit objective would get 50% of the bonus, there is an important aspect that is noted by the effect brought about by the kind of system.
