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Employee Rewards and Creativity in Organizations

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Employee Rewards and Creativity in Organizations
CHAPTER ONE
INTRODUCTION AND BACKGROUND TO THE STUDY
1.0. INTRODUCTION
This chapter of the study gives the background of the topic, the statement of the problem, the purpose of the study, the objectives of the study, the research questions of the study, the scope, significance and structure of the study.

1.1 BACKGROUND
A reward is a management tool that hopefully contributes to a firm’s effectiveness by influencing individual or group behavior. Rewards in organizations are usually to reinforce an organization’s value, promote outstanding performance and foster continuous learning.

According to motivation and human factor literature, rewarding employees for their contribution is an issue that has been much discussed and debated about.

Cameron and Pierce suggest that in a workplace, careful arrangement of rewards can enhance employee interest and performance and this is likely to occur when rewards are closely tied to the attainment of performance standards and to the performance accomplishment of challenging tasks.

However, the two concluded in their research that rewards can have negative effects but their effects are circumscribed and can easily be prevented. However when rewards are linked to specific standards of performance people or employees are more contented and productive in the enterprise.

Creativity is a mental and vocal process involving the generation of new ideas or concepts or new associations of a creative mind between existing ideas or concepts.
The process of either conscious or unconscious insight fuels creativity. That is why according to the free wikipedia, creative ideas are often generated when one discards preconceived assumptions and attempts a new approach or method that might seem to others as unthinkable.

Cooperation and competitiveness among organizations encourage creativity, just as encouraging creativity is the best way to improve competitiveness in the organization.
According to Simonton (2000),

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