-These comes from within the individual, such as satisfaction from action in a away that a job well done or taking satisfaction from acting in a way by another person is required for someone to experience an intrinsic reward. Organizations can create the potential for people to experience intrinsic rewards through job design, organ culture, andmanagement style, but individually feel or experience intrinsic rewards on their own.
-These are rewards that one person gives to another.
They include recognition, plaque, prizes, awards and pay based on performance alsoknown as incentive pay or pay for performance.
THE TIE OF REWARDS TO PERFORMANCE
-The management accounts role of identifying the organs desired long term outcomes(such as profitability) and corresponding short-term results (such as product quality andemployee satisfaction) falls out of the strategic learning process. The idea in incentivecompensation is to tie individual rewards to the organization’s target outcomes andresults.
1.REWARDS BASED ON FINNACIAL PERFORMANCE
Traditionally organs have used measures from the financial control system such ascorporate or divisional profits, as the results to which individual rewards are tied.-Alfred Sloan instituted the general motors bonus plan in 1918 to increase the communityof interests between the senior mangers managers and the stockholders of the firm.Annual bonuses were awarded on the basis of each manager’s contribution to the overall