EASTERN SAMAR

STATE UNIVERSITY
Excellence Accountability Service

COURSE : MAED - EM
SEMESTER : 1ST SEMESTER
SCHOOL YEAR : 2023 - 2024
PROFESSOR : DR. JACQUELINE M. EVARDONE
STUDENT : MICHAEL M. MENGOTE
TOPIC : HBO CHAPTER 6: REWARDS

I. INTRODUCTION:
The basic for the efficient functioning of a company is that employees work hard and
stay motivated no matter how tough is the client to deal with. This can only happen if the
employees find a driving force towards working in a better way from within the company. And a
company can reciprocate to its employees in no way better than rewards and recognition. It has
been statistically proved that frequent indulge of rewards and recognition along with constant
appreciation and most importantly constructive criticism have been the reason for the employees
of any company to work better than they used to. By implementing different rewards and
recognition, firms show that the employee is not unnoticed and that their work is dearly valued.
Organizational success is driven by satisfied and motivated employees. Satisfaction and
motivation can be enhanced through rewards and recognition. Recognizes and rewards are
achievements that have a notable impact on a program, to project an individual activity that
contributes to the vision and to the pursuit of excellence.

II. OBJECTIVES:
 Define and differentiate rewards from recognition
 Identify the different types of Organizational Incentives.
 Discuss the different Methods of Rewards & Recognition
III: INPUT/CONCEPT.
 After staffing, training, career planning and development, and performance appraisal, a
final requirement is necessary to ensure effective performance. The requirement to the
design and implementation of reward systems.

Reward vs. Recognition

Employee reward system refer to the programs set up by a company to reward performance and
motivate employees on individual and/or group stage. They are usually considered separate from
salary but may be monetary in nature or otherwise have a cost to the business. While previously
considered the area of big companies, small businesses have also begun employing them as a
tool to lure top employees in a competitive job market as well as to increase employee
performance.

Employee recognition programs are often combined with rewards programs they retain a
different idea altogether. They are planned to provide a psychological rewards. Though many
elements of scheming and maintaining reward recognition systems are the similar, it is helpful to
keep this disparity in mind, particularly for business owners interested in motivating staffs while
observance costs low.

Can-avid 6806
Eastern Samar, Philippines
essu.canavid@gmail.com
https://essu.edu.ph
A reward is something given to a person or a group of people to recognize their excellence in a
certain field; a certificate of excellence. Awards are often signified by trophies, titles,
certificates, commemorative plaques, medals, badges, pins, or ribbons. An award may carry a
monetary prize given to the recipient.

Recognition is public acknowledgement of person’s status or merits (achievements, virtues,

service, etc.) When some person is recognized, he or she is accorded some special status, such as
name, title, or classification.

Types of Organizational Incentives

Organizational incentives consist of rewards to motivate people to work. Rewards may be
classified as either:
1. Intrinsic or Extrinsic
 Intrinsic rewards are those that the worker receives from the job itself, such as
pride in one’s work, a feeling of accomplishment, or being a part of a team. These
rewards are self –regulated as the worker is not dependent on an outsider, such as
the manager, to provide for them. Managing intrinsic work rewards present the
additional challenge of designing a work setting so that employees can, in effect,
reward themselves for a job well done.
 Extrinsic rewards are those that the workers get from the employer, usually
money, a promotion, or benefits.

2. Financial or Nonfinancial
 Financial rewards are those that enhance an employee’s financial well-being
directly through wages, bonuses, profit sharing, and the like.
 Nonfinancial rewards are indirect enhancement of an employee’s financial well-
being. This is done through supportive benefits like pension plans, paid vacations,
paid sick leaves, and purchase discounts.

3. Performance-Based or Membership-Based
 Performance-based rewards are those given using performance as basis. These
rewards take form the commissions piecework pay plans, incentive systems,
group bonuses, or other forms of merit pays.
 Membership-Based rewards refer to those that are given to all employees
regardless of performance. This type includes cost-of-living increases, benefits,,
and salary increase attributable to labor-market conditions, seniority or time in
rank, credentials such as a college degree, or future potential such as new MBA
degree from a prestigious university.

METHODS OF REWARDS AND RECOGNITION:

Following the common methods of rewards and recognition that can be found in modern
business organization. Although not all these reward methods are used by the same company, the
companies can adopt the best reward method that suit the company culture and other company
goals.
As an example, some companies do like to give all benefits to the employees as financial,
while other companies like giving the employees the other benefit such as insurance, better
working environment, etc.

Can-avid 6806
Eastern Samar, Philippines
essu.canavid@gmail.com
https://essu.edu.ph
 1. Basic Pay – Pay is an essential factor, which is closely related to job satisfaction and
motivation. Although pay may not be a reward as this is a static amount, which an
employee will be aid every month, it will considered as a reward if similar work is paid
less.

2. Additional Hour’s Rewards – This is similar to that of overtime. However, it is paid to

employees if they put in an extra hour of working at unsocial hours or for working long
hours on top of overtime hours.

3. Commission – Many organizations pay commission to sales staff based on the sales that
they have generated. The commission is based on the number of successful sales and the
total business revenue that they have made. This is a popular method of incentive.

4. Bonuses – Bonuses will be paid to employees, who meet their targets and objectives.
This is aimed at employees to improve their performance and to work harder.

5. Performance Related Pay – This is typically paid to employees, who have met or
exceed their targets and objectives. This method of reward can be measured at either
team or department level.

6. Profits Related Pay – Profits related pay is associated with if an organization is

incurring a profit situation. If the organization is getting more that the expected profits,
hen employees receive an additional amount of money that has been defined as a variable
component of the salary.

7. Payment by Results – This is very similar to that of profit related pay. This reward is
based on the number of sales and total revenue generated by the organization.

8. Piece Rate Reward – Piece rate reward is directly related to output. The employees get
paid on the number of “pieces” that they have produced. These pieces will be closely
inspected to make sure that quality standards are being met.

9. Recognition – Employees will not always be motivated by monetary value alone. They
do require recognition to be motivated and to perform well in their work.

10. Job Enrichment – This is a common type of recognition that is aimed at employees to
get motivated. Job enrichment allows more challenging tasks to be included in the day-
today tasks performed by employee. Working the same way every day may prove to be
monotonous to the employees. Therefore, there will be lack of interest and the
performance drops.

REFERENCESS:
Gani,S.(2021) HBO Chapter 9-Performance Management and Rewards.
Retrieved from
http://www.scribd.com/performancemanagement-rewards

Rajeevgupta(2008) Rewards and Recognition

Retrieved from
http://www.slideshare.net/rajeevgupta/rewards-and-recognition

Can-avid 6806
Eastern Samar, Philippines
essu.canavid@gmail.com
https://essu.edu.ph