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he employees internally and is normally derived from involvement in certain activities or projects. Intrinsic rewards are psychological rewards that employees acquire from doing meaningful work and also work that they perform well in. This is seen at the bottom of the pyramid of Maslow's hierarchy of needs. Examples of Intrinsic rewards are achievement, feeling of accomplishment, informal recognition, job satisfaction, personal growth and status. Intrinsic rewards has a deeper impact on the employees because it is a healthy and suitable source of motivation. Intrinsic rewards are strong predictors of retention and it creates a strong form of motivation for organisation and the employees (Diane and Johnson,2005). On the other hand extrinsic or financial rewards are tangible in nature and they are controlled by other people but distributed by the organization. Types of extrinsic rewards includes are formal recognition, incentive payment, salary, promotion, social relationships and physical work environment. These are at the upper end of Maslow's need hierarchy (Thomas,2009). Attraction and retention of employees can be achieved using extrinsic rewards thereby minimizing dissatisfaction and increasing employee effort to perform well. Extrinsic rewards are used to show that the company is serious about valuing team contribution to quality. The team bonus will be given separately from the salary and this is an added advantage to the employees. On the other hand, team reward must be used in ways that will avoid destructing employees' intrinsic interest in the work that the perform or carry out. (Balkin and Dolan, 1997). Extrinsic rewards are argued to be harmful because performance can not be measured accurately and is influenced by factors beyond employees' control and it ruins teamwork. It is a poor motivator and the numerical measures of performance are imperfect and therefore must not be bound to rewards (Wruck and Jensen, 1998).

According to Austin (1996), It is worth emphasizing that reward systems are contrived with the objective of increasing organizational success and rewarding the qualified employees that attains the expected level of performance. The central inquiry is how to define appropriate indicators to ensure the productiveness of teams and to incite motivation without causing dysfunction in the measurement system and action that has little consequences. The outcome of rewards system in an organization will be positive if the employees have the abilities to enhance it. Bartol and Locke (2000), for inciting employees to perform the target behaviors several factors are useful and these factors include fairness of reward,employers setting ambitious goals in order to achieve the attractive reward and practices that insure that employees possess high self effectiveness for performing the tasks. The findings of the research conducted by Allen and Helms (2006) was that reward practices were significant predictors of performance and it explained nearly 41% of the variance in organizational performance. Although, de Waal and Jensen (2011), suggest that the bonuses and certain reward system have little impact on long term organizational performance. However the High Performance Organization center (2012) carried out a research which was summarized by de Waal and Jensen (2011), in which they say that the bonuses and reward system are a a€œhygiene factora€ for many organizations that have no substantial effect o