Page 115 - E2 Integrated Workbook STUDENT 2018

Behavioural aspects of control

Reward systems

3.1 Types of rewards

A reward is something given, to an individual or group, in
recognition of their services, efforts or achievements.

 Intrinsic rewards – these arise from the performance of the job itself. Intrinsic
rewards include the feeling of satisfaction that comes from doing a job well,
being allowed to make higher level decisions or being interested in your job.

 Extrinsic rewards – these are separate from (or external to) the job itself and
are dependent on the decisions of others (i.e. the workers have no control over
these rewards). Pay, working conditions and benefits are all examples of
extrinsic rewards.

Note that extrinsic rewards are closely linked to Herzberg’s hygiene factors,
while intrinsic factors tie in to Herzberg’s motivators.

Rewards should:

 be fair and consistent for all employees

 be sufficient to attract and retain staff

 maintain and improve levels of employee performance

 reward progression and promotion

 comply with legislation and regulation (i.e. minimum wage laws)

 control salary costs.

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