Essay by waspanishUniversity, Bachelor'sB, March 2005

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Examine the relationship between Reward and Motivation in the Psychological Context.

An 'incentive' or 'reward' can be anything that attracts a workers attention and stimulates him to work. In the words of Burrack and Smith, "An incentive scheme is a plan or program to motivate individual with monetary rewards (incentive pay or monetary bonus), but may also include a variety of non-monetary rewards or prizes."

(Mamoria C., Personnel Management, 3rd ed., Himalaya Publishing House, Mumbai, 1984)

On the other hand, Wendell French says that the term "Incentive system" has a limited meaning that does not include many kinds of inducements offered to people to perform their task up to or beyond accepted standards. It excludes wage and salary payment and merit pay; overtime payments, pay for holiday work or differential according to shifts- i.e. all payments that could be considered incentives to perform work at undesirable times; and premium pay for performing dangerous jobs.

It is related with wage payment plans which link wages directly or indirectly to standards of productivity or to the profitability of the organization, or as is the case in most organizations, on both the criteria.

(Mamoria C., Personnel Management, 3rd ed., Himalaya Publishing House, Mumbai, 1984)

The use of incentives assumes that people's actions are related to their skills and capability to achieve important, long-term goals. Even though many organizations, optionally or by tradition or by contract, allocate rewards on non-performance criteria, rewards should be regarded as a "payoff" for performance. When we say 'non-performance criteria' it is assumed that rewards are given on the basis of seniority rather than merit.

(Mamoria C., Personnel Management, 3rd ed. Himalaya Publishing House, Mumbai, 1984)

An incentive plan can consist of both 'monetary' and 'non-monetary' elements. Mixed elements can provide the diversity...