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Chapter 21

Rewards and incentives

3.1 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. They
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.

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