Essay: Compensation, reward and Bonuses mechanism at Lafarge
Lafarge company in China had a challenge due to lack of incentive for individuals to work hard because all individuals has same bonus commonly referred to as chi daguofan or “eating from the big pot” The government had a greater influence in fixing the rewards which was informed by communism for the employees which seemed unfair to many employees.
This lead to low motivation within the workforce evident by lack of cooperation witnessed (Hallowel, l 996) for example when an employee is asked to take some task; replies not my job. Moreover, there were record wages for all with bonus set at RMB 20 without any allowances such as quarry and construction work. To make the matter worse, the top management promises which were unfulfilled further demoralized employees. For instance the management promise to reward good performance with financial rewards, but instead they honoured them as excellent or advanced employees issued with certificate of merit. This event leads to loose of confidence in top management (Berger 1996; Garrison 2001).