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Running head: THE IMPACT OF BONUSES IN AN ORGANIZATION

Do bonuses work?
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THE IMPACT OF BONUSES IN AN ORGANIZATION

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The Impact of Bonuses in an Organization
Bonuses are the incentives offered by employers to their employees in a business setting
with the aim of motivating them. The psychology behind bonuses can be traced from the fact that
human behavior is easily influenced by external conditions which include appreciating their extra
efforts in monetary terms. In early and mid-twentieth century, John B. Watson established that
human behavior results from external conditions where individuals subjected to certain stimuli
respond in a definite manner. (Dean, 2015) This creates normalized behaviors which in a
business relationship can be translated to increased productivity, enhanced motivation and
stronger work ethic.
Bonu...