Advantages are:
• It helps the business support their other objectives such as promoting effective team work and also reducing sickness/absenteeism level.
• Rewards employees that perform well giving them the incentive to perform better to be able to earn a higher bonus for the work that they are producing.
• Businesses are able to cut the wages when the economic climate is bad which therefore means that they are able to save money in the process.
Disadvantage is:
• Targets can be unrealistic at times and therefore the employees can be de-motivated as they know that they won’t be able to receive the bonuses which can also affect the amount that they produce and the quality of their work.
• It helps the business support their other objectives such as promoting effective team work and also reducing sickness/absenteeism level.
• Rewards employees that perform well giving them the incentive to perform better to be able to earn a higher bonus for the work that they are producing.
• Businesses are able to cut the wages when the economic climate is bad which therefore means that they are able to save money in the process.
Disadvantage is:
• Targets can be unrealistic at times and therefore the employees can be de-motivated as they know that they won’t be able to receive the bonuses which can also affect the amount that they produce and the quality of their work.
