IndexChapter TwoA review of the literatureTheories of motivationRewards and the use of rewardsTypes of motivational outcomesVariations of reward plansDiscussion and conclusionChapter TwoA review of the literatureThere is a great deal of reward investigations The effects of systems on workplace motivation range from early times. Companies fail to miss a low-cost, high-reward component to their business and that is establishing a reward plan that makes an employee and the company thrive. Bento and White (1998) explain that incentive plans are designed to motivate employees to work hard in an organization, depending on how the individual evaluates the reward. Cooper and Jayatilaka (2006) note that extrinsic motivation can decrease inspiration, so it is helpful to have a valuable reward system. Allscheid and Cellar (1996) report that offering a bonus improves performance especially when goals are challenging. Similarly, Rynes, Gekhardt, and Minette (2004) believe that a certain incentive is not a primary motivation but an objective to be pursued in order to have a successful reward system. In contrast, Speckbacher (2014) discusses organizations that use a reward system to support behavior by increasing commitment and improving productivity. Employee motivation and productivity can increase by having developed a reward system in place. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an Original Essay Understanding what motivates employees is just one of the strategic steps to a successful organization. Reward systems are incentive programs that are part of that phase to promote employee commitment and efficiency. Allscheid and Cellar (1996) recognize that rewards can increase the rate of motivation when employees are committed to achieving the goal in question, whereas rivalry did not influence both objective functioning and commitment. Agarwal and Singh (1998) state that traditional reward systems are based on principles and procedures. Emergent rewards need to be implemented to start developing innovative actions, joint efforts and creative thinking to be efficient. Aguinis, Joo, and Gottfredson (2012) argue that certain principles must be followed when using rewards. One of the principles ensures that reward is contingent on performance. Because of these issues, organizations should focus on a reward system that aligns employee performance with an appropriate incentive plan. Although financial rewards appear to be the main factor in a reward system that invites a valuable candidate, it is the non-financial factors that help obtain meaningful employees. Neckermann and Frey (2013) observe that employees are motivated primarily by the recognition of public rewards. Accordingly, Morrell (2011) highlights that non-monetary incentives not only increase employee engagement but also reduce the organization's overall costs. On the other hand, Hammermann and Mohnen (2014) note that nonmonetary rewards are less effective because they are not presented as a gift only as part of the payoff. Money was more effective in employee performance. Similarly, Pierce, Cameron, Banko, and So (2003) mention tangible rewards, such as money, that are offered for achieving levels and helping to increase an employee's motivation. The research extensively examines motivational theories and outcomes in relation to monetary rewardsand not monetary. . In the following sections, the focus will be on theories, rewards, motivational types, and variations of rewards regarding their impact on improving employee performance. Theories of Motivation There are many theories that have existed over periods of time that influence motivational behavior. Some theories under discussion are Abraham Maslow's theory of motivation, self theory, two-factor theory, leader-member theory, and expectancy theory. Each theory involves some aspect of motivational behavior that occurs in relation to rewards. Despite the number of theories, the precise determination of what motivates an individual to strive for a reward is far from established. Some of the theories described below are just a few beliefs that emphasize an individual's behavior in increasing motivation using a reward strategy. Abraham Maslow's book Motivation and Personality (1954) introduces the Hierarchy of Needs. The foundation of Maslow's stimulus theory with humans appears to be motivated by unsatisfied needs and that specific subordinate aspects must be satisfied before greater needs can be satisfied. According to Maslow, there are types of needs such as basic needs, survival, security, love and esteem that must be gratified before a person can be altruistic. As long as employees move to gratify these desires, they are progressing toward self-actualization. According to this theory, it should be known which reward has the most encouraging factor for the employee and to what extent it will increase his work effort. However, self-theory focuses on the extent to which an individual's behavior is self-motivated and self-determined. Snyder and Williams (1982) report that unless needs are compatible with the self, other needs will not be complete. Self-theory has an effect on the individual and his desire for reward. Self-theory emphasizes the personal side of human existence and considers an individual's self-concept to be more essential than environmental conditions. Furthermore, for this theory to work, needs must maintain personal satisfaction. Fredrick Herzberg's (1959) book The Motivation to Work presents the two-factor theory that compares the distinction between dissatisfaction and low motivation. The motivating factors are recognition, responsibility and personal growth. Hygiene factors are salary, interpersonal relationships and working conditions. Hygiene factors serve to ensure that an employee is not dissatisfied. Motivation factors serve to motivate an employee to higher aspirations. Therefore, this theory assumes that employment is exciting and rewarding, so employees are motivated to work and perform better. This theory focuses on job enrichment in order to motivate employees. However, Sinha and Trivedi (2014) describe leader-member exchange theory, or lmx, the quality of the interpersonal relationship between employees and managers. This theory would work well when changing rewards or asking the member for further thoughts regarding the current reward. With this theory in place, companies improve communication which helps productivity improve in the workplace. Expectancy theory is very similar to self theory, except that it does not provide a reason why outcomes acquire a specific value. Expectancy theory argues that reward value becomes obtainable from two types of expectancy, effort-performance and performance-outcome (Snyder and Williams, 1982). The rewards they receive come from their efforts andfrom their performance. According to Cinar, Bektas, and Aslan (2011), “Motivation is possible only when there is a clear relationship between work performance and its results and the results are means to satisfy a certain need” (p. 691). With this theory, individuals want to achieve maximum satisfaction and want to minimize dissatisfaction in their job performance. Therefore, all theories contribute to employee motivation by rewarding the individual. Rewards and Use of Rewards Rewards come in various forms, tangible and intangible. For some, intrinsic reward, such as satisfaction, excites employees, while for others, extrinsic reward, such as money, motivates employees. Aguinis, Joo, and Gottfredson (2012) suggest that examples of monetary reward include salary, raises, and paid time off. Presslee, Vance, and Webb (2013) believe that the overall impact of tangible rewards will depend on the relative strength of the positive and negative effects. Non-monetary rewards include valuable training, development opportunities and job security. Neckermann and Frey (2013) state that contributions are significantly higher for prizes that include a publicized prize with a ceremony. Because of these issues, both nonfinancial and financial rewards can influence an employee's motivation. Attitudes towards rewards can be satisfied with positive or negative motivation. Allscheid and Cellar (1996) suggest that a reward with commitment to a goal draws positive inspiration. As researchers Presslee, Vance, and Webb (2013) explain, rewards will have an encouraging influence on goal commitment but will drive employees to set easier goals which will negatively influence implementation. Neckermann and Frey (2013) believe that a touching attitude comes from feedback and recognition. According to Neckermann and Frey (2013), the main reason why people leave companies is the lack of praise and recognition, therefore making it important to have guidelines to follow. According to Aguinis, Joo, and Gottfredson (2012), the principles or guidelines to follow for financial and non-financial rewards are: (1) do not limit the specification of non-monetary rewards, (2) provide non-cash rewards that are welcome to the individual, (3) award rewards in a timely manner, (4) make rewards conditional on performance, and (5) encourage voluntary participation that is beneficial to the employee and the organization. Employee motivation can expand the organization's revenue. Aguinis, Joo, and Gottfredson (2012) state that “monetary rewards can have a powerful influence on employee motivation and performance” (p. 247). Companies are constantly looking for reasons to increase profits and finding the incentive plan that benefits both the company and the employees could be crucial. Neckermann and Frey (2013) note that nonmonetary rewards have a significant impact on motivation and positive changes in behavior that can increase company profits. Allscheid and Cellar (1996) explain that rewards can significantly enhance performance especially with complicated goals. Incorporating a complex goal could increase the company's profits by making the employee seek the incentive more. Therefore, employee motivation can be stimulated by rewards, attitudes, guidelines and commitment to goals. Types of Motivational Outcomes Looking deeper into motivational theories, one can find that motivation is typically addressed by two types: extrinsic and intrinsic. Cooper and Jayatilaka (2006) suggest that extrinsic motivation arises froma link between their behavior and the reward, such as pay or recognition. The intrinsic motivates one to engage in a job, for the most part, because they want it. Examples of intrinsic motivation are the desire to feel valued, significant, and fulfilled. Reward employees with the right reward so that the individual can produce both internal and external drive. Allscheid and Cellar (1996) note that reward for goal achievement promotes intrinsic motivation. Goals and rewards usually go hand in hand when looking for more inspiration. Incorporating both intrinsic and extrinsic motivation into a reward system can possibly improve positive motivation and productivity. According to Pierce, Cameron, Banko, and So (2003), rewards can be used to improve intrinsic motivation in any person. These four researchers believe that rewards perceived as more reasonable will cause an increase in intrinsic motivation in the individual. Cerasoli, Nicklin, and Ford (2014) found a direct connection between intrinsic motivation and extrinsic performance-related incentives, primarily the quantity-quality distinction. Cooper and Jayatilaka (2006) state that the reasonableness of the reward can be a huge factor influencing motivation and its degree. Cinar, Bektas, and Aslan (2011) reveal that both intrinsic and extrinsic factors affect workers while performing tasks, but intrinsic components are more motivating than extrinsic ones. Aguinis, Joo, and Gottfredson (2012) state that paying employees more money does not essentially improve their job-relevant knowledge or enrich positive impressions of others. Presslee, Vance, and Webb (2013) show results that monetary rewards lead to better performance. Whereas Neckermann and Frey (2013) believe that recognition and not tangible rewards play an important role in employee productivity. Positive incentives are those rewards that provide an optimistic affirmation for satisfying the employee's needs. Some examples of positive types of rewards are promotion, praise, recognition, and benefits. The purpose of negative incentives is to correct employee mistakes. Negative incentives are usually an option when positive incentives don't work and employees need to be mentally slowed down. For example, some negative incentives are demotion, transfer and sanctions. These negative incentives can cause a decline in morale which causes a lack of production. Allscheid and Cellar (1996) state that competition could turn into a negative incentive. Negative incentives should be avoided unless deemed necessary. Therefore, positive results indicate a reason why an organization needs to implement a pronounced reward system. Variations of Reward Plans When looking for all types of incentives, there are two distinct types of rewards usually offered, financial or non-financial. Every employee has different needs, so not one reward is right for everyone. Rewards in an organization should be researched to find out which has the greatest effect on motivation. Although both are very different, in some respects both can help achieve productivity in the same way. There are several reward plans. Companies need to find which rewards work best to motivate the entire team of workers. The difference between monetary and non-monetary rewards is that the former involve money, while the latter can be classified as non-monetary rewards. Aguinis, Joo, and Gottfredson (2012) suggest that offering a monetary reward can improve performance, but causing.