Answer: Reward System
Explanation: Every organization has some specific goal to achieve. For this purpose it has to attract, retain and motivate employees with specific skills and knowledge by giving rewards. So an organization sets up a reward system which refers to the policies and strategies which are designed and implemented to reward employees impartially according to their contributions to the organization.
The advantages of a reward system is increase in the efforts of employees. Employee wants to remain in an organization which influences his commitment to the organisation. When the employee gets a reward for his efforts and performance which results in job satisfaction. This benefits the organization too as it helps in accomplishing the organizational goals and mission. Rewards can be monetary or in-kind payments. This makes up a compensation system. Monetary payment is paid in exchange of employees work e.g. salary, bonus, wages, overtime etc. and in-kind payment is extra benefits given by the employers to their employees and are non cash payments e.g. allowances, time off etc.
