TENTATIVE SOLUTION: The Rewards are categorized into two group’s financial and non-financial rewards. The financial rewards are also called extrinsic rewards and non-financial rewards are called intrinsic rewards. Financial rewards: This type of rewards comprises of: • Basic pay • Contingency pay • Bonuses • Commission • Incentives • Pension • Gratuity Non-Financial rewards: This type of rewards comprises of: • Recognition • Employment security • Challenging work • Growth opportunities • Personal relationship at workplace • Autonomy Horizon’s services Ltd. had chosen non-monetary rewards to motivate its workforce, which ultimately helps to improve the quality of customer services and efficiency. As a result, employees are motivated to contribute more towards the organizational success because they are given recognition and appreciation for their contribution. Moreover, employees have been given autonomy as a non-financial reward so that employees have the choices that they manage their own actions.

Sometimes employee’s performance is highly based on his/her ability to perform; in such situations salaries are based on employee competency. This type of salaries is termed as: