Senior High School

Organization & Management

Quarter II
Module 11 & 12
Functions and Importance of Compensation,
Wages and Performance Evaluation, Appraisal,
Employee Relations and Movement and
Rewards System

Writer:
REGINA S. SIMBULAN
MT-II Balucuc HS, Apalit
Editors:
JANE P. VALENCIA, EdD – Math/ABM Supervisor
CHAIRMAN
JOENER MAGLALANG – MT- I
 Let’s get started as you are about
to continue your understanding
What I Need on the other functions and
important part of staffing in
to Know management that will surely
excites you as everything is being
rewarded!

This module was designed and written with you in mind. It is here to help you master
the subject Organization and Management. The scope of this module permits it to be
used in many different learning situations. The language used recognizes the diverse
vocabulary level of students. The lessons are arranged to follow the standard sequence
of the course. But the order in which you read them can be changed to correspond
with the textbook you are now using.

It will be focus on:

 Lesson 2. Reward System

After going through this module, you are expected to:

1. Define what is a reward system
2. Identify the different rewards system
3. Know the aims and purpose of reward system

What I Know

Choose the letter of the best answer. Write the chosen letter on a separate sheet of
paper.

1. Which of the following should NOT be included?

a. benefits
b. incentives
c. praise
d. stock options
2. A non-monetary award given to individual employee or group/teams for
meritorious service and outstanding performance.
a. award
b. benefits
c. incentives
d. praise
3. These are rewards which pertain to money, finance, or currency.
a. award
b. monetary
c. non-monetary
d. reward
4. Trophies, medals, or certificate of recognitions are examples of
___________rewards?
a. award
b. monetary
c. non-monetary
d. reward
5. Stock options, incentives, benefits, pay/salary are what kind of rewards?
a. award c. non-monetary
b. monetary d. reward
6. It helps to attract and retain highly skilled workers and promote fairness
and equity by rewarded employees according to their contribution and
effort to the organization award.
a. communication c. contribution
b. fairness d. reward system
7. Which of the following should NOT be included?
a. demotion c. promotion
b. incentive d. separation
8. Wynonna received a travel ticket from her company as for the work she
has done, what kind of reward did she received?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
9. Which type of reward should NOT belong to the group?
a. Incentive c. praise
b. Pay d. award
10. Rei Delphin received a recognition of excellence certificate from his
company. What kind of reward was given to him?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
11. What kind of reward is given if additional pay is provided by the
company?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
12. A regular employee was given a promotion because of good
performance, what kind of reward is given?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
13. Meal allowance, car incentives, free internet are examples of?
a. Extrinsic reward
b. Intrinsic reward
c. Monetary reward
14. Which does NOT belong to the group?
a. social relationship c. job satisfaction
b. personal growth d. achievement
15. Which among the following should be eliminated?

a. new car c. feeling of contentment

b. promotion d. fringe benefits
Lesson

2 REWARDS SYSTEMS

A research on effective rewards systems by the Center for Effective Organizations

revealed that rewards systems can influence six factors or areas that impact
organization effectiveness. These are:

 attention and retention;

 motivation of performance;
 skills and knowledge;
 culture;
 reinforce and define structure; and
 cost.

Let’s bring back the memories you

have. On this part, we will check
your understanding on how the
previous lesson connects to the topic
What’s In you are about to learn!

Write a character or skill of an employee that would serve as the basis of their
movements in the organization by filling in the boxes that corresponds to the four
types of employee movements.

P D
R E
O M
M O
O T
T I
I O
O N
N

TRANSFER

SEPARATION
 You’ve done it well and now let’s
excite your thinking brain as you
open your eyes clearly in
What’s New checking all the words related to
our new topic!

LOOP ME OVER. Try to find the words in the boxes written either horizontally,
vertically and diagonally by putting them in the loop. One is given as your
sample guide.

Reward system inceentives salary benefits

Praise nonmonetary rewards monetary rewards awards

A M O N E T A R Y R E W A R D S A
B A E S Y A E E W J B A C A F L B
C B B T H A Y E E E A B C B G M C
D C U N U D E U N L D Y D C E N C
D Y I U U E E E U E A A E D A O D
E U I I I E F I U P B D F E D P E
F
E Q Y Q O I N C E N T I V E S Q
A E H H T Y R V O R C D G Q A R PP
A
C U I S U U I Y P E E Y H E L R A
Y
A J O O I T R Y A E F U I D A S Y
A J P O U U W O W G D E J I R T G
G U E C E I G O A B D D S C Y U H
E U E Q E K G P R H A E K E A V I
A X R E E T H L D U D A L A B W J
E E W E E H U W S I F A M G C X K

1. Can you define each of the term?

2. Which among the words given attracted you most?
3. If given a chance to work in the organization, would salary be enough to
make you satisfied?

Maybe some of you will answer SALARY on question no. 2, but do you know that it is
not only the salary that satisfies an employee?

Did you find the activities enjoyable?

If yes, then let us add more on your
What is It cup so you may understand better

Having a work is not only a privilege. What makes an individual more satisfied and
contended is when they are treated equally and have the best motivation. This topic
will let you understand that, it is more exciting for a person if the company they are
 working with have programs other than that of the compensation they received. So
let’s find out and discuss.
WHAT IS A REWARD SYSTEM?

A reward system helps to motivate employees to achieve high quality performance. It

helps to attract and retain highly skilled workers. Reward systems promote fairness
and equity by rewarded employees according to their contribution and effort to
the organization

Organizations offer competitive rewards system to attract knowledgeable and skilled

people and to keep them motivated and satisfied once they are employed in their firm.
Further, rewards promote personal growth and development and present fast
employee turnover. Management offer different types of rewards:

Extrinsic Rewards – these are rewards which pertain to money, finance, or currency.
They usually refer to as monetary rewards.
a. pay/salary – financial remuneration given in exchange for work performance
that will help the organization attain its goals; examples: weekly, monthly, or
hourly pay, piecework compensation, etc.
b. benefits – indirect forms of compensation given to employees/workers for the
purpose of improving the quality of their work and personal lives; health care
benefits, retirement benefits, educational benefits, and others are examples of
these.
c. incentives – rewards that are based upon a pay-for-performance philosophy; it
establishes a baseline performance level that employees or groups of employees
must reach in order to be given such reward or payment; examples: bonuses,
merit pay, sales incentives, etc.
d. executive pay – a compensation package for executives of organizations which
consists of five components: basic salary, bonuses, stock plans, benefits and
perquisites.
e. stock options – are plans that grant employees that right to buy a specific
number of shares of the organization’s stock at a guaranteed price during a
selected period of time.

Intrinsic Rewards – these are rewards which do not pertain to money, finance, or
currency; refer to nonmonetary rewards that are self-granted and which have a
positive psychological effect on the employee who receives them.

a. award – nonmonetary reward that may be given to individual employees

or groups/teams for meritorious service or outstanding performance;
trophies medals, or certificates of recognition may be given instead of
cash or extrinsic rewards.
b. Praise – a form of nonmonetary, intrinsic reward given by superiors to their
subordinates when they express oral or verbal appreciation for excellent job
performance.

Aims and Purpose of a Reward System

Armstrong & Murlis (2007) put forward number of aims of reward

management/system which are very helpful to understand what businesses want
to drive through these reward systems which are as follows:

 To create total reward processes that are based on beliefs about what the
organization values and wants to achieve;
 To reward the employees for the value they have created for the organization;
 To bring into line the reward practices with the employee values and business
goals and objectives;
 To develop the positive psychological contract and employment relationships
with the employees;
 To reward right behaviours in order to deliver the positive message to the
employees that what organization expects from them in terms of outcomes and
behaviours;
 To win the war of the talent by attracting and retaining the talented, skilled and
competent pool of employees that organization need to make the difference;
 To gain the commitment and engagement of the employees by motivating them
through reward practices;
 To cultivate and sustain the performance culture within the organization.
It’s truly amazing and rewarding when all
works have been recognized and praise. Can
What’s More you identify now how rewards are
differentiated? Take this activity and find it
out!

This part of the module will further increase your understanding on the lesson that
was provided with you on the mini lesson.
Activity No. 1 Identify the word given if it is Extrinsic (E) or Intrinsic (I) Reward. Write
your answers on a separate sheet of paper.
.
________1. cash incentive _________6. sense of achievement
________2. leisure trip _________7. new car
________3. scholarship grant _________8. promotion

________4. feeling of contentment _________9. work freedom or autonomy

________5. recognition ________10. Fringe benefits

Activity No. 2 COMPLETE ME. On the figure are types of rewards given to an
employee in the organization. Identify the words either Extrinsic or Intrinsic rewards
by placing them on the box provided.
Extrinsic Rewards Intrinsic Rewards

1. _________________ 1. _________________

2. _________________ 2. _________________

3. _________________ 3. _________________

4. _________________ 4. _________________

5. _________________ 5. _________________

6. _________________ 6. _________________

Now that you have identified the difference of the two types of rewards, let us now test
your skills by completing the statement written on the What I Have Learned and
Assessment the module.
 You are great! Now that you
understand the concept of this
module, can you now give your own
What I Have words about the lesson?
Learned
Let us test your understanding on the lesson by writing two or three
sentences to complete the following:
I realized that
_____________________________________________________________________________________
_________________________________________________________________________________
I resolved that
_____________________________________________________________________________________
_________________________________________________________________________________
Reward systems play a key role as they determine the employer-employee
relationships. The reward systems define what the employer is willing to give, which
has a direct impact on what employees are willing to contribute in exchange.
Compensation and benefits alone are no longer effective as motivating mechanisms
because they cannot create the employee engagement required to compete in today’s
complex and fast-moving business environment. To generate employment relationship
that is long lasting and difficult to imitate, organizations can adopt a more
comprehensive view of rewards.

Let us now full your cups as you

are given freedom to give words
of wisdom by completing this
What I Can Do concept map…

Based on what you have learned about the topic, can you find other terms or words
that can also be associated with the term reward system?
Questions:

1. Does reward system beneficial to both employees and employers?

2. If you will be working in an organization, what kind of rewards would you
like to receive?
3. Does the aim of rewards served its purpose?

We’re one step away on the last part of

this learning module, can you get a
sheet of paper and answer this
assessment to yourself? Please be
Assessment guided on the policy of following your
integrity.

I. Match the word of the Column to that of the word in Column B. Write the
letter of the correct answer on a separate sheet of paper.

Column A Column B

________1. A form of nonmonetary, intrinsic reward A. nonmonetary

rewardgiven by superiors to their subordinates when they
express oral or verbal appreciation for excellent job B. monetary reward
performance.
________2. A compensation package for executives
of organizations which consists of basic salary, C. reward
bonuses, stock plans, benefits and perquisites.
________3. These are rewards which pertain to D. praise
money, finance or currency.
________4. Gift, prize or recompense for merit, E. executive pay
service or achievement, which may have a motivating
effect on the employee.
________5. Rewards which do not pertain to money,
finance, or currency: refer to intrinsic rewards that
are self-granted and which have a positive
psychological effect on the employee who receives
them.

II. Elimination. Four words are given in each number. Choose the term which
is not related to the other three. Write the letter of your answer on a space
provided before the number.

_________ 1. A. pay C. incentives

B. benefits D. award
__________2. A. praise C. recognition

B. salary D. award
_________ 3. A. pay C. personal growth

B. promotion D. formal recognition

_________ 4. A. social relationship C. job satisfaction

B. personal growth D. achievement

_________ 5. A. new car C. feeling of contentment

B. promotion D. fringe benefits

III. TRUE OR FALSE. Write TRUE if the statement is correct and FALSE
if the statement is wrong.

_________1. An employee is rewarded because of his/her exemplary

performance.

_________2. Rewards is given to gain the commitment and

engagement of the employee.

_________3. An individual or employee who makes mistakes most

of the time still deserve to have an award.

_________4. Rewards motivate employees more.

___________5. Extrinsic rewards are self-granted and which have a

positive psychological effect on the employee who receives
them.

Congratulations! You’re now on the last part,

please follow IATF guidelines when doing this
activity. If you will be out for a while, use face
mask as you will be ask to conduct an interview,
or you may use messenger as your tool in having
this activity.
Keep safe and God Bless!

Additional Activities

1. Research on the employee benefits given by a certain company (Company A) as

compared with the employee benefits given by another company (Company B).
If given the chance to be recruited by Company A or Company B, which
company would you prefer? Explain your choice.

2. Recall a past event in your life when you were praised by your parents,
teachers, or friends for accomplishing something. Did their praise or
positive remark have any effect on your psychological well-being?
Explain your answer.
What I Know What's More Assessment
1. C Act. 1 1. D
2. A 2. E
3. B 1. E 6. I 3. B
4. C 2. E 7. E 4. C
5. B 3. E 8. E 5. A
6. B 4. I 9. I 6. D
7. B 5. I 10. E 7. B
8. A Act. 2 8. C
9. A Extrinsic 9. A
10.B 10.C
11.A 1. Formal recognition 11.TRUE
12.B 2. Incentive pay 12.TRUE
13.A 3. Social relationship
13.FALSE
4. Fringe benefits
14.A 14.TRUE
5. Pay
15.C 6. Promotion 15.FALSE
Intrinsic
1. Achievement
2. Feeling of contentment
3. Information recognition
4. Job satisfaction
5. Status
6. Personal growth
Answer Key
References

Organization and Management. Cynthia A. Zarate

Organization and Management. Helena Ma F. Cabrera, PhD, et.al.

https://gethppy.com/employee-engagement/15-employee-engagement-activities-can-
start-now
https://nwpc.dole.gov.ph/regionandwages/national-capital-region/
https://www.cleverism.com/when-and-how-to-promote-your-employees/
https://www.employeepedia.com/info/general/782-employee-movement-definition-
formula-and-examples
https://www.managementstudyguide.com/staffing-function.htm
https://ourarticlelibrary.com/employee-management/demotion-of-employees-
meaning-and-causes-of-demotion/25976
https://www.dcrstrategies.com/employee-incentives/employee-rewards-intrinsic-vs-
extrinsic/
http://study-aids.co.uk/dissertation-blog/reward-system-hrm-dissertation/

Development Team of the Module

Writer: REGINA S. SIMBULAN – MT-II Balucuc HS, Apalit

Editor: JANE P. VALENCIA, EdD – EPS – Mathematics
Reviewer: JANE P. VALENCIA, EdD – EPS – Mathematics
LOIY GOMEZ – MT-I, San Matias High School
JOENER MAGLALANG – MT-I Sta. Maria HS, Macabebe
Illustrator: REGINA S. SIMBULAN – MT-II Balucuc HS, Apalit
Layout Artist: REGINA S. SIMBULAN – MT-II Balucuc HS, Apalit
Language Reviewer:

Management Team

ZENIA G. MOSTOLES, EdD, CESO V, Schools Division Superintendent

LEONARDO C. CANLAS, EdD, CESE. Asst. Schools Division Superintendent
ROWENA T. QUIAMBAO, CESE, Asst. Schools Division Superintendent
CELIA R. LACNALALE, PhD, CID Chief
JANE P. VALENCIA, EdD, Education Program Supervisor, Mathematics
JUNE E. CUNANAN, Education Program Supervisor/ Language Editor
RUBY M. JIMENEZ, PhD., Education Program Supervisor, LRMDS