Project Team Rewards
Literature Review
6
Reward people for the value they create
(Armstrong & Murlis 2004)
Support the development of a performance culture
(Armstrong & Murlis 2004)
Help to make people committed and engaged
(Armstrong & Murlis 2004)
Quality improvement (Tinnirello 2001)
Time and cost reduction (Tinnirello 2001)
Improved morale (Tinnirello 2001)
Increase team-work (Tinnirello 2001)
Attract and retain high-quality people (Armstrong
2002)
Motivate people (Armstrong 2002)
Help to communicate the company's values,
performance, standards and expectations
(Armstrong 2002)
Increase job satisfaction (Armstrong 2002)
Encourage behaviour that contributes to the
organisational objectives (Armstrong 2002)
Underpin organisational change programmes
(Armstrong 2002)
Provide value for money (Armstrong 2002)
Table 1: Reward Aims
3.1. Reward Basics
Table 1: Reward Aims
Employees often receive rewards in addition to
their base salary
depending on their achieved
results, performance, competence, or skill
acquisition². Rewards have many aims as
illustrated in Table 1. Among others they shall
reduce time, and cost and improve quality
(Tinnirello 2001); they shall reward people for
the value they created (Armstrong & Murlis
2004) and they shall help communicate the
company’s values and expectations (Armstrong
2002). Since rewards mean additional costs to the
organisation, the overall aim is providing “value
for money” and contributing to organisational
success (Armstrong 2002:14). In the case of
project management, it was concluded, rewards
shall provide value for money to the project and
contribute to project success.
Rewards cannot directly affect success. The direct affect of rewards is on employees’
motivation. Various definitions of motivation exist. For this thesis, employees’ motivation
is seen as the employees’ desire to work and perform well in order to contribute to
organisational or project success³. Two types of motivation exist: Intrinsic and extrinsic
motivation. Intrinsic motivation is “self-generated” and means employees are motivated to
2
Detailed numbers of how many employees get rewards vary. Some statistics state 11% (WERS in Wright
2004), some 43% (IPD in Wright 2004) and some 60.5% (The IRS Employment Review in Armstrong 2002)
3
The
definition is derived from Beardwell et al. (2004), Armstrong (2002), Torrington et al. (2002) and
Robinson in Rehu et al. (2005a).
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