Name: Choi, Yeonjin C.

Section: ABM-A3

Date: 03/25/2021

1. What is the positive effect of giving rewards to employees?

 Rewards help to inform employees that their work meets customers' expectations.
Further, job performance that is rewarded is likely to be repeated. When
each employee more consistently satisfies customers, it helps to improve a company's
competitive position because satisfied customers are more likely to come back.
2. Enumerate and define the types of monetary rewards.
 Pay/ salary – financial remuneration given in exchange for work performance that will
help the organization attain its goals; example; weekly, monthly or hourly pay,
piecework compensation, etc.
 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.
 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.
 Executive pay – a compensation package for executives of organizations which consists
of five components: basic salary, bonuses, stock plans, benefits, and perquisites.
 Stock options – are plans that grant employees the right to buy a specific number of
shares of the organization’s stock at a guaranteed price during a selected period of time.
3. What kind of reward would you prefer to receive, cash or stock option? Explain your preference.
 I’d prefer stock options. Money triggers us to think that we have a lot in our hands when
in reality, we don't. Having money triggers, us to buy our wants instead of reinvesting on
business. Alas in stock rewards, it'd be easier to recirculate a business.