The efficacy of a bonus scheme on staff morale and quality of service: A case study of a private hospital in Botswana

Despite the introduction of a bonus scheme intended to improve staff morale and service quality the situation at this private hospital has not improved. This paper attempts to investigate the efficacy of the bonus scheme introduced at a private hospital in Botswana on staff morale and service delivery. The objectives of the study were to determine whether a motivational bonus scheme can raise staff morale; retain existing staff and reduce quit-intentions. The research methodologies adopted for the study was a mixed method of the quantitative and qualitative format (triangulation). The study was based on data collected from a sample of 55 employees of the private hospital. The major finding was that the bonus scheme has a great motivational valence but it needed to be improved by linking it strategically to organizational aspirations. It was recommended that the bonus scheme be linked to performance targets and organisational strategies and also be utilized as an employee performance management tool.