REWARD SYSTEM

Monetary rewards
- rewards which pertain to money, finance or
currency.
a. pay/salary- financial remuneration given in
exchange for work performance that will help
the organization attain its goals; examples:
weekly, monthly, daily compensation., etc.
b. benefits- in the purpose of direct forms of
compensation given to employee/ workers for the
purpose for improving the quality of their work and
personal lives; health care benefits, retirement benefits,
educational benefits and others.

c. incentives- rewards that are paid based upon a pay-

for-performance philosophy; it establish a baseline
performance level that employees or groups of
employees must reach in order to be given such reward
or payment; eg. Bonuses, merit pay, sales incentives.
d. Executive pay- a compensation package for
executives of organizations which consists of 5
components: basic salary, bonuses , stock plans,
benefits and others.

e. Stock options- a plan that grant employees the

right to buy a specific number of shares of the
organization’s stock at a guarantee price during a
selected period of time.
NON MONETARY REWARDS

- rewards which do not pertain to money,

finance or currencies; refer to intrinsic reward 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 group/teams for
meritorious service or outstanding performance;
trophies, medals or certificates of recognition
may be given instead of cash or intrinsic
rewards.
b. Praise- a from of nonmonetary, intrinsic reward
given by superiors to subordinates when they
express oral or verbal appreciation foe excellent
job performance
REWARD

- is something given or done in return, especially

in the form of salary, gift, prize, incentive pay,
benefits or recompense for merit, service or
achievement and which may have a motivating
effect on the employee.