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Over time though, people do tend to expect the bonus, and then any reward-focussed motivatory influence is lost, whereas the less effective punitive effect increases with habituation when bonuses are cut. The most insidious ingredient in the bonus culture though is the part it plays in magnifying intra-company politics; bonuses end up being paid not so much for having done a good job as for having brown-nosed enough with your manager to be given a bigger bonus than a co-worker with less interpersonal skill, irrespective of work ethic or individual productivity.
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