Reward policies and practices are
largely founded on assumptions about factors affecting the motivation of people
to join and stay with the organization and to work hard and effectively while
they are there. Reward policies can be no better than the motivational theories
and belief upon which they are based; indeed reward systems are designed on the
assumption that the only thing that motivates people is money.
As stated earlier, this study is
theoretically based on Maslow’s theory of Needs Hierarchy though other reward
and motivational theories would be taken into consideration. Of course, since
1954, a lot of empirical research have been done to investigate the relevance
of Maslow Theory. These are presented in the review of empirical studies.