improve productivity and control labor costs through motivation. Reward system shouldcomply with pay legislation (Bratton & Gold, 1999, p. 192).
Types of Rewards
Basically organizational reward is two types include intrinsic rewards and extrinsicrewards. Intrinsic rewards are internal to individual and are normally derive frominvolvement in certain activities or task it includes achievements, feelings of accomplishment, informal recognition, job satisfaction, personal growth and status.Extrinsic rewards are directly controlled and distributed by the organization and are moretangible than intrinsic rewards it includes formal recognition, incentives benefits, pay promotion social relationship and work environment (Byars & Rue, 2000, p. 272).As far as literature is concerned, organizations mostly used two types of rewards likewise Intrinsic (non monitory) and extrinsic (monitory). Intrinsic reward is depended tothe extrinsic one. Both play a vital role to motivate employees optimistically to increaseefficiency and effectiveness. One important aspect of rewards is that they are used tocontrol employees’ behavior to the extent to achieve organizations tasks as competentlyas they can. On account of rewards employees’ feels job security, and job satisfactionwith them. According to our analysis these are very important considerations to influence performance of employees as well.
Alternative to reward management
There are different alternatives to reward management like wise, pay for knowledgesystem, group incentive gain sharing plan, profit sharing, cost saving (Scanlon plan), andcafeteria style benefits. These all are used to help reward management strategies to makethem more gainful (Bratton & Gold, 1999, p. 212).
Criteria of reward management
A criterion is very important to maintain a strong base for any system to run it withoutambiguity and bottlenecks. Criteria for reward management give a fair idea aboutorganization internal culture, philosophy of organization, defines its mission, vision,values as well as its overall road to success.