The Leaders Use of Informal Rewards and Reward Systems in Obtaining Organizational Goals

Abstract

Management has long underestimated the importance of informal rewards in the achievement of organizational goals. At a time when formal reward and recognition systems are increasingly found to be ineffective, the use of informal rewards could provide just the right combination of relevance, immediacy, and individual value to warrant a fresh look at how to make them work. Considering that a reported 33 percent of managers would rather work in another organization where they could receive better recognition, the time is ripe for focused attention on this matter.