Reward System: A Tool For Promoting Organizational Performance

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Motivation is a set of energetic forces that originate within as well as beyond an individual's being. It is a psychological process resulting from the reciprocal interaction between the individual and the environment that affects a person's choices, effort, and persistence. Thus motivation is a key determinant of performance in virtually all contexts. Further the knowledge of motivation tells that people do what they do to satisfy some need before they do anything, therefore they look for payoff or reward. Thus in any organizational set up reward system becomes the key motivating factor in improving the performance of the employees.