As I reached the office, still with the taste of tempura and the aroma of green tea ice-cream, the word was out ...the company would be giving a " pro-rated fixed ringgit cash incentive of significant amount " for every single staff in lieu of the annual bonus, a topic that was discussed at great length earlier by the leadership team.
Who says you need the internet, e-mails & blog sites to spread the word... word of mouth has been proven to be effective and works all the time...anyway, the debate of whether to give a full month bonus based on the employees salary or the pro-rated cash incentive now begins...
" I don't know the key to success, but the key to failure is trying to please everybody " ... Bill Cosby
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Prorated bonus is a courageous attempt by the Management to please the lower working levels. For sure people on the floor will be happy with the news, but the question remains, will they work harder after this exercise? Will the higher working levels lose their focus and performance?
It is not the intent of the company to target to please any specific working levels in the organization be it the clericals, workers, executives, managers or senior management staff in any reward exercise.
On the contrary, a prorated bonus as lirhays said or a bonus based on monthly salary are both NOT EMPLOYEE PERFORMANCE related incentives.
In both cases, there is no guarantee that anyone will work any harder after they receive the incentives or bonuses ?
Even in the experience of giving bonus, a high performer and a non-performer at the same " higher working levels " will both get a month salary. Will the performing employee lose his focus & performance?
In the final analysis, It is the overall company that has performed and the owner believes in sharing the profit equally with all employees, performers & non performers, drivers & CEO not diffrentiated.
No dicrimination by your salary grade...Treat it like an " ang pow " that everyone gets, after all chinese new year is approaching.
Is this a good trend ? Will this be the new way the company rewards employee ?
If yo ask me, I believe in the future, the company will need to design a merit or a performance based reward system. Until then cash is fine with me.
Yeap… it is impossible to please everyone at the same time. This subject is one of the hot topics in the company. But what really matters now? Is it the amount they will get or how it will be distributed?
I think if the reason for the rewards is defined clearly, the amount of it does not really matter anymore. Just like when I rewarded my daughter for getting 5A in UPSR with the holiday at Genting Highland whereas her classmate was taken by the family to Gold Coast, Australia for getting 3A. It did not make my daughter less happy or work less hard in her studies after that. So, it is not the cost of the gift that matter, but how it is presented make a lot of difference.
A small token to employees from a company that is still struggling with cash flow problem should be more appreciated than from a company that has been making big profit continuously. It is all depend on how the story is presented.
SLA
Declare your intent. Bad execution of GOOD intent equals poor results.
Whether it is called a bonus or a cash incentive, the point is, money is spend out from the Company and it must have a purpose that benefits the Company and the employees. Give to them their expectation that is a month bonus and if the Company has more to give, then you can give them as an “ang pow”. It is not the other way round.
Is it necessary to give more than expected? YES but not necessary………..
Alsaid
It seems the issue is EXPECTATIONS. Everyone seems to think they're entitled to a one month bonus. The concept in Malaysia is you should get paid 13 month for working 12 months.
I am confused. Is the bonus an expense that is budgeted or the owner sharing his profit ?
One of fundamental differences of a great company as compared to dysfunctional company is poor communication .The risk of ineffective communication is so great that it means whether we are going one step ahead or two steps backward. For an organization that has embark with aspiration to move ahead , it will have to have all plan and purpose that is communicated.
Simple signs of ineffective communication is for instance when employees do not have a common understanding of why and purpose of cash incentives. Therefore practice effective communication so that everybody sings the same song “.Money ,money .monee….
John P. Kotter, Leading Change
Without credible communication, and a lot of it, employee hearts and minds are never captured.
Mother Teresa
I agree with mindacergas, everyone including those that don't work and make money from overtime think they deserve a bonus.
...always refers to "HOLY BOOK" on ..."Industrial Harmony "....there WE will find the solution to "Bonus" issue....nobody can argue.. be it SHAREholder or STAKEholder...
"CF"
its not about the prorated, incentive or angpow issue, this is about why the company is struggling to make profits? are the company been well manage? are the bosses know what is atually happen ? are all the bosses comunicate each other ? are you sure there is good workflow ? there is a lot question mark on this company.-itve 'aura' is serounding us.i dont know if management giving of 10 months bonus will change this -tve 'aura'
among the lower working level.
Damaged already done.People is tired about this issues.They are making jokes on whereever they meet.Promisses been made to kill the loyalty of this people.Wake up
people!
"Different is not necessarily better but better is always different."
—Hugh Lendrum
Alsaid
I would prefer cash incentive,eventho I'm on the loosing side.Why I prefer cash incentive?We(mgmt or exec)are earning quite comfortable pay monthly and every month we have some extra to spend.But for the lower ranks,most of the time they have to really think 10 or 20 times to buy something and it become worse when school reopen.Let's make this people a happy lot for the next 11 months and when they are HAPPY,we(mgmt & exec)will be happy with their performance eventho we are at the loosing side for few days.
Why do we have to pay ZAKAT?
The answer to my question is the rich must help the poor and it is WAJIB.Let's consider this as SEDEKAH
The above comment was from
-WILD THING-
Just give what we all deserve. Just give all of us one month bonus. Why do have to discrimenate others just to please some group of peoples? Do you think higher paid employee work less then the lower paid employee? Why do have to give incentive? Just give all one month bonus.
If the top management want to reward their workers, just take a prorated bonus e.g. 5000 then you can give more to other employee as an appriciation.
If not mistaken at one time the goverment have gave special kind of bonus to the goverment servant base on their mounthly salary. If im not mistaken at that time employee with salary RM1800 and below will get bonus of RM1800. But employee with salary RM3500 and above will get only RM3500 bonus. The one with salary between RM1800 to RM3500 will get their bonus base on the monthly salary.
This I feel is the best way to distribute to all employee. The lower paid worker will get more then one month salary to show that we really appriciate their contribution to the company. While the top management will take less then one month bonus to show to all employee that they really appriciate their work. For the one in between they will get their one month bonus because their sit in the middle is seem fair to them.
But that doesn't mean that you can forget about them because they also contributed to the company. The only thing is that others cannot physically see their work so thats why their are under-appriciated and some don't even want to recognise their work because they think they are the who is doing the real work.
The conclusion is that we must give what each person deserve not to to give what the other think that the other person deserve.
During lunch we ended discussing on issue of cash incentives vs 1 month bonus ? I suppose the decision is final , it is going to be cash incentives. Next , why a CEO with a desire to transform and uplift the company to the next level make such decision?
Isn’t the CEO aware about the existence of psychological contract(EXPECTATION NOT IN WRITING) in an organization. There is going to be breach of that contract. The expected norm is 1 month bonus just like government workers. Yes, with 1 month bonus ,nobody is going shout “ZINDARBARR(LONG LIVE) CEO” but no one will be deprived from EXPECTATION.I imagine home scene of 25% of employee who will getting less than expected they will be explaining to their wives ,and mother in law,”only the workers union got better deal.”
Back in the company ,I see the workers union leader walking tall singing ,”We did it again…..”We talk about fostering trust and we understand unions exist because workers do not trust management. To make matters worst the victims in this issue will be non unionized members , expecially the executives and managers. Are we not encouraging unions in companies?
Another major lament from top management is there is lack of sense of ownership ,thru sense pride, sense of value and sense meaning and sense of accomplishment
working in the organization. .Alamak , suddenly bonus pun tak ada?!
Then I thought about the 65% of employee with “durian runtuh”. It was celebration time ,extra cash to spend. This year if there is CEO idol ,definitely he will get majority sms.
Next the issue if we are moving towards performance based , and the company makes 10% profit next year ,a two months bonus will be no incentive to the guys who will be getting 3 months in form of cash incentives. Has the CEO look at all angles.
I thought hard, do I have faith and trust in my CEO leadership.
My answer was yes.
I have come to a conclusion ,transformation is in real time. Things will no longer will be same ……..
My prayer is, may god give light and bless all of us in all the changes that are taking place!
For those who don't agree with cash incentive.Go and form KESATUAN MANAGER A**** and come out with your own CA.Then only you can start nagging.More than 50% of the execs are earning less than 3k.
Why is the EXECS UNION still insist on 1 month bonus.Is it because of personnel interest or just plain selfish.Majority of the so called execs union committe are earning more than 3k.If the execs union really want to fight for their members,why did they agree on NO O T FOR THE SUPERVISOR on their CA.It is going to be a burden for the managers like me when there is a need for the supervisor to come on a W'END.To me the execs union are just plain selfish.
-WILD THING-
"MY SUBORDINATES ARE MY STRENGH AND MY PILLAR"
"The Sith and the Jedi are similar in almost every way … including their quest for greater power...." Darth Sidious
Most of the bosses pay are 7k and above, that why they keep on shouting. But remember u are already been awarded with merit and +++ when those day exec have 2 level mg1 and 2 even u supv if your boss recommended for merit u will get supv m2 that why all the orang lama pay is very high. Not like us even myself in exec. group after 17 yrs of service my home pay is 2980 ,can u believe that. My best technicians AH that been service more than 10 yrs and know all the system very well only getting 1545 ringgit.Its is fare to this people. They are the one with come out with the product, when the bosses enjoying ur nap this people still struggling at a##. Its fare. Talk about overtime how much can you get if ur basic pay is low compare to the value of time they spend at the workplace.
So give them a chance to have more pocket money cause it only 1 month.
But I’ve no comment to the indirect workers
TOTALLY AGREE with the above statement on the hardship the lower ranks are going thru.Money cant but a ticket to heaven but your good deeds do.
-WILD THING-
"MY SUBORDINATES ARE MY STRENGH AND MY PILLAR"
Today 15/2/2007,was the first time after 13 years working , I actually saw credible communication by a CEO ,who really meant business. One thing for sure a lots of minds and some hearts were captured . NOT a single soul could challenge the CEO reasoning.
He started by asking ….
Should it be one month bonus based on salary or RM 3000.There was mix of answers. Then it came about justifying the reasons to the answers.
Here is where I sense politically right and logically right answers. I say political right because the reasons to RM3000 were not convincing at all.
The real twist came, when the CEO address the issue from recipient point of view. The issue was all about money .Money that we think we own, but actually was never ours. The bonus is profit sharing and prerogative of the the owner.Since we have no mode of measuring performance lets share across the board.There is no reason why a technician should get less than GM since there is
no where written the bonus payment should be one months salary ( except for workers collective agreement).
It was Mind attack ,a paradigm shift and mind boggling. The result- there was psychological reorientation in the thinking .It is so difficult to get people to let go ,say goodbye to old thinking. More importantly the message I got is ,things are not going be the same………Transformation is in real time.
TTT Diary
What a day.The CEO really made my day and all I can say HE'S THE MAN. Thank god,the CEO is not another retired(from the ARMED FORCES)a**kissing DATO like the previous CEO.I hope the CEO next move is to remind the selfish people to work as a TEAM and to me that is very important.APALAH KITA TANPA MEREKA.Without the managers the work can still go on but without the men you are as good as nothing.
-WILD THING-
"MY SUBORDINATES ARE MY STRENGH AND MY PILLAR"
RM3k or 1 month? My answer is, the value is more or less the same for me, so I don’t really mind. I think the 'bonus' issues was already predetermined and today’s session was to ensure that all the managers understand the message behind it, and hopefully the same message gets across to all working levels through the managers.
“People don’t resist change, they resist being changed.” Peter Scholtes
Shocked by the breifing by my boss.CEO STILL TALKING ABOUT THIS ISSUE....WHY..
Just little advise..
GOD KNOW WHAT YOU DID..IF U REALY WORK HARD AND STILL D'NT GET THE REWARD IN THIS WORLD GOD WILL TRUELY WILL REWARD U WITH HIS HEAVEN..SO BE PATIENT....
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