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Concept Of Reward Management Practices Essay

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2.0 The Concept of Reward Management Practices
Rewards can either be intrinsic or extrinsic which can encompass both monetary and non monetary incentives. Intrinsic and extrinsic rewards are different but they are closely associated. Often an extrinsic reward for the recipient will provide intrinsic rewards. For instance, an employee who receives a reward in the form of salary increment can also interpret the wage increase as a sign of a job well done. Extrinsic rewards include all rewards that have a monetary value such as basic pay, pay contingent on performance, contribution, competency or skills.
According to most of these theories, motivation can indeed be predicted and explained. One of these theorists is Maslow (1954), who recognized the theory of the hierarchy needs.
According to his theory, human beings have five needs and these needs must be satisfied firstly at the lower level. At this level, the individual needs are very simple such as people want to satisfy their physiological needs and their security. At the higher levels of needs, people want to satisfy their relationship, achieve self-esteem and self-actualization. To put it simply, Maslow 's work focuses on how an individual 's attitudes affect their behavior. Alderfer (Alderfer, 1969) was agreed with Maslow’s need theory, but he redesigned it in his own positions. This work is called as ERG theory of motivation. He rewrote Maslow’s hierarchy of needs into three simpler and wider levels of needs such as

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