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InternalExternal
Project Team Rewards
Literature Review
13
Individual Factors such as age, race, gender, background,
education, and personality (Mansfield & Odeh 1991)
Team Factors such as team size, team composition and team's stage
of development (Parast & Adams 2004)
Task/Job Factors such as skill variety, task identity, task
significance, task autonomy, and task feedback (Hackman & Oldham
1976)
Organisational Factors such as organisational culture, industry,
strategy, consistency in rewarding, public or private sector, size, age,
and expanding or not (Parast & Adams 2004, Armstrong & Murlis
2004, and Jenkins in Wright 2004)
Available Tools such as performance appraisals, 360° feedback and
automatic surveillance systems (Wilson 2003 and Torrington et al.
2002)
Global Factors such as pressure for leaner productions, and world
economy (Armstrong 2002)
National Factors such as taxes, minimum wages, inflation rates,
education and skill shortage, and national culture (Armstrong 2002
and Rehu et al. 2005a)
The
structure
of
the
internal
and
external
reward
factors
was
inspired
by
Adair's model of '
Action Centred Leadership
' (in Mullins 2006:311).
Table 4: Factors Influencing the Reward Answers
3.4. Perspective Three: Modest Reward Proponents
The modest reward proponents argue that no “universally
best practice” in rewarding
exists (Armstrong & Murlis 2004:xi). They hold the view that all of the reward answers
may be valid options depending on the circumstances (e.g. Deeprose 1994, McKeown
2002, and Wilson 2003). In contrast to the other two perspectives, the modest reward
proponents consider more aspects in their arguments. They take into account more
motivation theories and further factors that the two extreme reward sides ignore. This
section analyses the perspective of the modest reward proponents in detail. First, the
factors that influence the reward answers are analysed. Second, further motivation theories
are covered. Then the six reward questions and possible answers are discussed. Finally, an
evaluation and summary for all three perspectives is provided. 
3.4.1.  Internal and External Reward Factors
Table 4: Factors Influencing the Reward Answers
The modest reward
proponents’ argument is that
some variable factors influence
the decision which reward
answer is suitable in a certain
situation. For this thesis,
the
identified factors were classified
as internal reward factors
and
external reward factors (see
Table 4
for a list). Internal
reward factors are in the direct
sphere of influence of the
organisation or its employees.
External reward factors are not
in the direct sphere of influence
of the organisation or its employees. From the literature review, the internal reward factors
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