Micro promotions, bonuses(non-monetary), vacations and holidays. They are
Micro Finance Institutions are well thought out to be a major source of finance for the underprivileged in many countries. Microfinancing is the process of providing loans, insurance, savings, money transfers among other banking services to the poor living in rural and urban areas. Microfinance institutions receive deposits and offer small sums of money on short-term basis to low income individuals and frequently use security alternatives.Reward systems are much more than just stock options and bonus plans. Apart from just intrinsic incentives, they also include extrinsic ones like promotions, bonuses(non-monetary), vacations and holidays. They are outcomes or events in the organization that satisfy work related needs (Sziligyi, 2003). When employees achieve or go beyond the targets or the organisation, it is essential to reward them in order to intensify their morale and hence productivity.
A top notch reward system attracts and retains skilled workers and also improves staff performance but a awful one leads to high staff turnover and fruitless performance. It is apparent that employees and supervisors should come into terms with objectives and policy framework of the organization and acquire personalized non-salaried based rewards that relate with the particular objectives, in respect to the numerous stages of performance appraisal under rewards systems (Wilson, 2004).Luthans (2003), described motivation as the management method influencing behavior of knowledge on what make people think.
It adds to the process of exciting people to act and accomplish particular objectives. Vroom (1964) pointed that employees’ effort is improved when rewards are offered. An operative reward system leads to a rise in satisfaction for employees; recognition of achievements; a means to complete personal and social goals; high yield and feeling of competence and liberty (Danish and Usman, 2010). When employees are rewarded, employers tend to get more of the deeds they reward not what they assume they will get from them by design.
Torrington ; Hall ( 2006) stated that a functioning reward system should always emphasize on positive reinforcement which inspires desired conduct which lead to performance.