REWARDS

REWARDS

The definition of rewarding is something that provides

satisfaction or gives a profit .
giving a sense of reward, or return: a rewarding experience
Something given in exchange for a useful idea, good
behaviour, excellent work, etc.
Something that is given in return for good or evil done or
received or that is of fered or given for some service or
attainment <the police of fered a reward for his capture
 INDIVIDUAL REWARDS

The Main Objectives of Reward program are:

To attract qualified people to join the organization
To keep employees coming to work
To motivate employees to achieve high levels of performance
LAWLERS CONCLUSIONS ON SATISFACTION
AND REWARDS

Satisfaction with a reward is a function both of how much is

received and of how much the individual feels should be
received
An individuals feelings of satisfaction are influenced by
comparisons with what happens to others
Satisfaction is influences by how satisfied employees are with
both intrinsic and extrinsic rewards
People dif fer in the rewards they desire and in how important
dif ferent rewards are to them
Some extrinsic rewards are satisfying because they lead to
other rewards
 MANAGEMENT CONSIDERATIONS FOR
DEVELOPING AND DISTRIBUTING REWARDS

The rewards available must be suf ficient to satisfy basic

human needs
Individuals tend to compare their rewards with those of others
The process by which rewards are distributed should be
perceived as fair
The managers distributing the rewards must recognize
individual dif ferences
 REWARDS AFFECT ORGANIZATIONAL
CONCERNS
Rewards af fect employee perceptions, attitudes, and behavior
Key organizational concerns af fected by rewards:
Turnover
Absenteeism
Performance
Commitment
 LINE OF SIGHT: THE KEY ISSUE

Line of sight - means that the employee perceives that there

is a real linkage between his or her performance and the
rewards received
For extrinsic rewards, organizations need to have systems that
clearly tie rewards to desired performance
For intrinsic rewards: providing jobs that are challenging
providing clear feedback on job performance
 INTRINSIC REWARDS

Intrinsic Reward- one that is self-

administered by the person
Completion
Achievement
Autonomy
Personal growth

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 EXTRINSIC REWARDS

Extrinsic Reward- Initiated from

outside the person
Salary and wages
Employee benefits
Interpersonal rewards
Promotion

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