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385 
 
5
Rewards and incentives 
Not all the
 incentives
that an organisation can offer its employees are directly related to 
monetary
rewards. The satisfaction of 
any
 
of the employee's wants or needs may be seen as a reward for past 
performance, or an incentive for future performance. 

A
 reward 
is a token (monetary or otherwise) given to an individual or team in recognition of some 
contribution or success. 

An 
incentive
is the offer or promise of a reward for contribution or success, designed to motivate 
the individual or team to behave in such a way as to earn it. (In other words, the 'carrot' dangled 
in front of the donkey!) 
Different individuals have different goals, and get different things out of their working life: in other 
words, they have different 
orientations 
to work. Why might a person work, or be motivated to work well? 
(a) The 
human relations
school of management theorists regarded 
work relationships
as the main 
source of satisfaction and reward offered to the worker. 
(b) 
Later writers suggested a range of
 '
higher-order' motivations, notably: 

Job satisfaction
, interest and challenge in the job itself – rewarding work 

Participation
in decision-making – responsibility and involvement 
(c) 
Pay
has always occupied a rather ambiguous position, but since people need money to live, it 
will certainly be part of the reward package. 
5.1 Intrinsic and extrinsic factors 
Rewards
may be 
extrinsic
(external to the work and individual) or 
intrinsic
(arising from performance of 
the work itself). 
Rewards offered to the individual at work may be of two basic types. 
(a)