Nueva Ecija University of Science and Technology
COLLEGE OF PUBLIC ADMINISTRATION AND DISASTER MANAGEMENT
Name: Yr. & Section:
Lesson Title:
CHAPTER 5
REWARDS SYSTEM
Instruction: Lesson:
1. Identify the processes and techniques involved in performance
appraisal
2. Explain how reward system works
REVIEW
REVIEW
Instruction: Identify the term that the following statements are referring to.
1. Degree to which a person values the rewards and results of success
Answer: _____________________________
2. A form of reinforcement which tries to stop undesirable behavior
Answer: _____________________________
3. SMART is an acronym for:
Answer: _____________________________
4. For Alderfer, this refers to the need for self-development and personal growth
Answer: _____________________________
5. For McClelland, it refers to the need to accomplish competency or mastery
Answer: _____________________________
PREVIEW
Hello! First things first, welcome to this new school year here at NUEST, and
congratulations that you are still moving forward in college. Surely you have faced many
learning and hopefully this subject will be an exciting addition. This subject will be with
you for the entire semester. Of course, you will not be doing this alone; your subject
teacher will always be here for any queries you may have in understanding this subject.
I hope you are excited. But before we move to the more complicated things, let’s start
with this easy one. Whenever you hear the word REWARD SYSTEM what comes to your
mind? Use the space provided for your answer.
PA 103 HUMAN BEHAVIOR IN ORGANIZATION | 39
Nueva Ecija University of Science and Technology
COLLEGE OF PUBLIC ADMINISTRATION AND DISASTER MANAGEMENT
PRIOR KNOWLEDGE
Instruction: In this section, we will try to check your prior knowledge about our today’s
lesson. When you hear or read the word REWARD, what automatically comes to your
mind? Write them down on the boxes below.
LEARNING IMPROVEMENT
Instruction: In this activity, you will need to answer the BEFORE and after columns. The
BEFORE column will be answered NOW. The AFTER column will be answered LATER as
you move on to the discussion.
BEFORE QUESTION AFTER
What is Performance
Appraisal?
What is Reward System?
PA 103 HUMAN BEHAVIOR IN ORGANIZATION | 40
Nueva Ecija University of Science and Technology
COLLEGE OF PUBLIC ADMINISTRATION AND DISASTER MANAGEMENT
DISCUSSION
PERFORMANCE APPRAISAL AND REWARD SYSTEM
PERFORMANCE APPRAISAL
Performance Appraisal is a process involving the evaluation of performance of
employees as against the objectives of the organization. The evaluation result serves as
basis for the determination of one’s eligibility for promotion; the weaknesses and
strengths of the institution.
Performance Appraisal plays a key role in reward systems. The conduct of which
is necessary for: 1) Allocating scarce resources in dynamic environment; 2) Motivating
and rewarding employees; 3) Giving feedback to employees; 4) Maintaining fair
relationships within groups; and 5) Coaching; and 6) Compliance to regulations.
In specific terms, Performance Appraisal is considered as: a) organizational
necessity; b) based on well-defined objectives; c) based on job analysis; d) uses job-
related criteria; e) supported by studies; f) objective.
Performance evaluation is part of the cyclical process of a) objective-setting
(point determination), b) action planning (participative planning stage), c) periodic review
(informal joint assessment), and d) annual evaluation (yearly formal assessment) to
achieve desired outcomes.
Systematic performance appraisal called “merit rating” or “employee rating” has
been utilized by supervisors to evaluate the work of employees.
Formal performance appraisal is being used to reduce favoritism and subjective
judgement in rating employee’s performance.
Performance rating system follows sets of rules, regulations, and standards to
promote effective supervision and counseling in a bid to further improve employee
performance. A performance rating plan consists of four ratings: 1) Outstanding
(exceptional performance); 2) Very satisfactory (excellent performance but fell short to
be considered outstanding); 3) Satisfactory (met the standards/requirements); 4)
Unsatisfactory (failed to meet the minimum standards).
Techniques of Performance Appraisal
1. Critical Incident Techniques (supervisors record incidents of subordinate’s
behavior that led to unusual success or failure)
2. Behaviorally Anchored Rating Scale (The BARS requires the selection of job or
concrete examples that can be described in observable behavior)
3. Behavioral Observation Scales (The BOS is similar to the BARS as it also focuses
on identifying observable behaviors related to the employees’ performance)
4. Management by Objectives (The MBO encompasses establishing goals and
objectives to enhance commitment and participation, and for fairer evaluation)
5. Assessment Centers (focus is on the use of standardized evaluations of behavior
based on multiple inputs)
PA 103 HUMAN BEHAVIOR IN ORGANIZATION | 41
Nueva Ecija University of Science and Technology
COLLEGE OF PUBLIC ADMINISTRATION AND DISASTER MANAGEMENT
Appraisal Approaches
1. Self-appraisal (personal assessment of own accomplishments)
2. Performance feedback (providing information as to progress, strengths, and
weaknesses to enhance employee’s self-image and sense of competence)
3. 360 Degree feedback (systematic collection of data on a person’s skills, abilities,
and behaviors from sources such as the managers, peers, subordinates, customers, or
clients)
4. Performance appraisal interview (can be confrontational, emotional, judgmental,
and complex)
REWARD SYSTEM
In an organization, reward system refers to set of procedures through which the
management control the behavior of employees. It can also be described as programs
or systems that aides in evaluating the performance of employees as against the
organizational goals and objectives.
Reward system can be described as the programs under which monetary benefits
are given to the employees for exemplary performance or contribution in the attainment
of the organization’s objectives. The reward or incentive is provided in addition to the
basic salary.
Function
1. Enhance the employee motivation
2. Increase employee productivity
3. Retain talented workforce
Types of Employee Reward
Rewards may be in the form of intrinsic, extrinsic, monetary or non-monetary,
performance-based or membership-based reward.
Intrinsic vs Extrinsic Rewards
Intrinsic Rewards Extrinsic Rewards
personal satisfaction or self- external to the job or an incentive given
initiated rewards a person gets by the management or award-giving
from the job bodies
Examples: Examples:
Enhanced intrinsic motivations may be in the form of monetary or non-
(sense of meaningfulness, choice, monetary reward such as Promotion,
competence, and progress), social Formal recognition, Fringe benefits (cash
status, informal recognition, non- gift, company car, subsidized meals)
monetary reward
Intangible Tangible
Performance-based vs. Membership-based Rewards
Performance-based Rewards Membership-based Rewards
PA 103 HUMAN BEHAVIOR IN ORGANIZATION | 42
Nueva Ecija University of Science and Technology
COLLEGE OF PUBLIC ADMINISTRATION AND DISASTER MANAGEMENT
use of commissions, incentive cost of living adjustment, salary
systems, group bonuses, merit pay increases attributable to labor-market
conditions, service reward (higher rank)
Based on exemplary performance or extended regardless of individual, group,
contribution in the attainment of organization performance
organizational goals
Recognition
Recognition is an important system in which the employees are recognized or
appreciated for their work. Recognition of employees’ efforts, accomplishments, career
service serves as key driver of motivation and employee satisfaction in the workplace
and reinforce desired behaviors.
CONCEPT MAPPING
Instruction: Based on what you have learned, create a concept map of the lesson of the
day. Make sure that each box will have at least three answers each.
EXAMPLES DEFINITION ON OWN WORDS
Performance
Appraisal and
CHARACTERISTICS FACTS
Reward System
CHECKPOINT
Congratulations for completing Chapter 5. Now, let’s see if you have retained most if
not all the information presented on this Chapter.
Part 1. True of False. Write your answer on the space provided.
___________ 1. Reward is manifested only as intrinsic and monetary.
___________ 2. Performance appraisal is not crucial in the reward system
___________ 3. Action planning also means joint assessment of progress
PA 103 HUMAN BEHAVIOR IN ORGANIZATION | 43
Nueva Ecija University of Science and Technology
COLLEGE OF PUBLIC ADMINISTRATION AND DISASTER MANAGEMENT
___________ 4. Annual evaluation is a form of formal assessment
___________ 5. Objective setting is a participative planning stage
Part 2. Multiple Choice. Choose the letter of the correct answer.
6. The following are steps in the management by objective process except:
a. Evaluation c. Action Planning
b. Objective setting d. Annual Evaluation
7. Which of the following requires the selection of job or concrete examples that
can be described in observable behavior?
a. Critical Incident Technique c. BOS
b. BARS d. MBO
8. Which of the following encompasses the establishment of goals and objectives
to enhance commitment and participation?
a. BARS c. MBO
b. BOS d. Assessment Centers
9. It is an appraisal approach which includes the systematic collection of data on a
person’s skills, abilities, and behaviors from various sources?
a. Self-appraisal c. 360 Degree feedback
b. Performance feedback d. Performance appraisal interview
10. Which of the following can be confrontational, emotional, judgmental, or
complex?
a. Self-appraisal c. 360 Degree feedback
b. Performance feedback d. Performance appraisal interview
LEARNING IMPROVEMENT Cont’d
Instruction: Go back to the learning improvement and answer the AFTER column.
3-2-1
3 things you found out… 2 interesting things… 1 question you still
have…
References:
iEdunote. n.d. Types of Employee Rewards. Retrieved from:
https://www.iedunote.com/types-of-employee-rewards
Hanchar, T. (2018). How to Retain Employees through Team Recognition. Accessible at
https://www.judgify.me/l/blog/retain-employees-team-recognition/
EXPLORE!
Instruction: Read about LEADERSHIP in preparation for the next lesson.
PA 103 HUMAN BEHAVIOR IN ORGANIZATION | 44
Nueva Ecija University of Science and Technology
COLLEGE OF PUBLIC ADMINISTRATION AND DISASTER MANAGEMENT
Yr. & Section:
Lesson Title:
CHAPTER 6
LEADERSHIP PROCESSES AND STYLES
Instruction: Lesson:
1. Be able to explain the concept of Leadership
REVIEW
Instruction: The statements point to key terms and concepts mentioned in the previous
chapter. To facilitate recall, identify the terms being described and write your answers
on the space provided.
1. It is an appraisal approach that refers to personal assessment of own
accomplishments
Answer: _____________________________
2. It refers to set of procedures through which the management control the behavior
of employees.
Answer: _____________________________
3. These are external to the job or an incentive given by the management or award-
giving bodies.
Answer: _____________________________
4. This reward is extended regardless of individual, group, organization
performance.
Answer: _____________________________
5. It is also called merit rating
Answer: _____________________________
PREVIEW
Hello! First things first, welcome to this new school year here at NUEST, and
congratulations that you are still moving forward in college. Surely you have faced many
learning and hopefully this subject will be an exciting addition. This subject will be with
you for the entire semester. Of course, you will not be doing this alone; your subject
teacher will always be here for any queries you may have in understanding this subject.
I hope you are excited. But before we move to the more complicated things, let’s start
with this easy one. Whenever you hear the word LEADERSHIP PROCESSES AND STYLES
what comes to your mind? Use the space provided for your answer.
PA 103 HUMAN BEHAVIOR IN ORGANIZATION | 45
