The Effects of rewards on employee motivation

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The external rewards which the worker receives in terms of monetary return, job satisfaction, job interest, and job rank or status are usually considered to be the most important in his motivation to work hard and well. For some, the economic monetary returns are the most important, but researches have shown that the noneconomic rewards that are also obtained from doing an interesting, challenging, responsible, and skillful job cannot thereby be ignored (Schuler 77).


As researches at the work level have shown, however, these needs for external rank or status are not the only needs which the worker brings to his work situation.
Research has also shown the importance to the worker of the need to belong, to be liked, and to be an accepted member of a group. These member or internal rewards are thus highly prized by the worker (Reed 32). To become an accepted or high-ranking member of a work group, however, exacts its toll or cost: one must abide by its values and norms. But by abiding by its values and norms, the member's needs for association, friendship, approval, and support are satisfied. His standing or rank in the eyes of his fellow workers also goes up (Schuler 78). "The components of the motivation function include motivation theories, appropriate job design, reward and incentive systems, compensation, and benefits" (DeCenzo and Robbins 51).
The terms "external" as applied to the concept of needs or rewards refer primarily to the source, ...
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