MGT10001 Final Assessment Case Study 1) First of all, a reward is essentially a token of gratitude given to the worker for the contribution to the business. A well-crafted program of incentives motivates workers and tends to create positive feeling to the job. This also contributes to greater and improved work performance which does have a direct effect on the business' profitability. It can be divided to two different type of rewards, which are intrinsic and extrinsic rewards. Intrinsic rewards ethereal rewards. They simply won't be seen or reached because they're deeply linked to the staff. In other words, intrinsic rewards can also be described as the sense of satisfaction that one feels when any task is completed. Intrinsic reward is directly related to work results, as it is automatically generated by a successful mission. Greater the success percentage, the amount of intrinsic incentives that one earns would be better. It can be divided to three levels from high to low. The intrinsic rewards tend to inspire both a company and its workers. Such type of motivation focuses on the mutual expectation that the work of employees contributes efficiently to positive goals, such that it is performance driven. Extrinsic rewards are those tangible assets which come from employers. A correctly crafted extrinsic incentive may often be mentally linked to the workers because workers esteem such bonuses. The extrinsic reward is often directly linked to the employees ' job results, but workers are not required to earn an incentive whenever they complete a task. This depends on the company's strategy. Such rewards empower and encourage workers, since most people need money or similar incentives. Instead of extrinsic incentives, someone will be working on a project even though that person is not internally motivated. There will usually be something operating as the occurrence and there will be an extrinsic reward that enhances it. Extrinsic rewards perform good for rewarding behaviour throughout the short run. From the case study, we can clearly know that the chairman has adapted intrinsic rewards. After he took over the state-owned fridge factory, he told all the laborers and directed them in the road to remove 76 of the factory's goods from public view. Other than that, he inspired the workers by confirming that poor quality will no longer be accepted there now. The workers will surely be motivated and satisfied from that moment on after completing the task. That is what intrinsic incentives are beneficial. From the case study we can also know that extrinsic rewards have also been adapted by the Chairman. The Chairman had found it necessary to focus on the needs of clients, and to be more creative, so he set about reorganizing and developing a self-managed company, each dedicated to a customer or community of alike customers. They are grouped into 2000 independent units which have several different tasks to complete. Yet to inspire staff to achieve or perform much better for each group, he extended extrinsic reward to the employees and said