Abstract
Rewards and incentives are related but quite different things. An incentive is something that tends to stimulate or spur individual or group action. A reward is something tangible or intangible that is given to an individual or group for a service. Rewards are given for one of two reasons: (1) outstanding performance of assigned duties and tasks, or (2) unique contributions to the organization either job-related or non-job-related (Tracey, 1999).
Tangible and Intangible Rewards
Tangible rewards (money, treats, certificates, extra privileges, etc.) are external ways of motivating group work. They can be used selectively to build a sense of internal motivation within the group. This is accomplished through another behavior modification principal paired association (Tracey, 1999).
Tangible rewards make group members "feel good", and these rewards follow a major accomplishment, then sooner or later the accomplishment itself will lead to a very positive feeling. This, in a nutshell, is the longer term justification for selectively using external rewards.
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