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Project Team Rewards
Literature Review
26
3.4.9.  Summary and Evaluation of the Third
Perspective
The modest reward proponents engage deeply with the six reward questions and
propose that all reward answers may be valid answers, depending on the variable reward
factors. Their perspective is supported by empirical research and most motivation theories.
They do not and cannot provide definite instructions how to answer the reward questions
in a certain situation. Too many factors influence the reward answers. In addition, debates
exist within the community
what exactly the influencing reward factors are and when to
choose which reward answer. Wright (2004) investigated many studies about performance
related rewards. The studies provided contradicting results, which lead to contradicting
arguments about the use of performance related rewards (see Table 9). 
Table 9: Performance Related Rewards (Pros and Cons)
For this thesis, it was important to determine that one perspective exists (the perspective of
the modest reward proponents) where different answers may be valid options. It was
further of major importance to know if this perspective was the right one. The literature
Pros
Cons
Motivates staff by providing a direct incentive
Demotivates staff and undermines morale
Rewards employees fairly and equitably
Relies on subjective and arbitrary measures
Provides a tangible means for recognising achievement
Contaminates the development aspects of appraisal
Delivers a strong message about performance imperative of
the organisation
Used to reward favourites
Improves goal setting
Undermines performance if unattainable targets are set
Focuses employees on improvement and innovation
Devise and undermines co-operation with management
Rewards those who contribute most to the organisation
Does little to improve organisational efficiency
Bolsters commitment and loyalty
Raises expectations of constant pay-out
Helps retain valuable staff
Encourages employees to focus on short-term quantifiable
results
Facilitates change in the organisation
May result in mismatch between individual and organisational
performance
Helps identify poor performance
Undermines performance if unattainable targets are set
Can be self-financing
Little scope for meaningful awards in periods of low inflation
Relies to heavily on ill-equipped line managers
May prove discriminatory
Poor value for money
Table 9: Performance Related Rewards (Pros and Cons)
Adopted from Performance Pay Guide 2002 in Wright (2004:120)
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