(a). Extrinsic and intrinsic rewards
For an individual, rewards from doing a job can be both extrinsic and intrinsic.
Extrinsic rewards are rewards that are outside the control of the individual. Another person, often the individual’s boss, has the power to provide extrinsic rewards.
Intrinsic rewards are rewards that are within the control of the individual himself.
Examples of extrinsic rewards

• pension benefits
• free medical insurance (and other forms of insurance, such as disability insurance, or even life assurance)
• the award of a company car, or a company helicopter or jet
• subsidised loans (these are loans from the company at an interest rate that is lower than the normal market rate).
• basic pay (and the size of a pay increase)
• cash bonuses and incentive payments
• when the employer is a company, rewards in the form of share options or a gift of some shares
  Examples of intrinsic rewards
• pride in doing the work
• personal satisfaction from doing the work
• a sense of responsibility that the individual enjoys.
• a sense of achievement in doing the work
• a sense of recognition for doing the work
• enjoying the status that the job provides

(b). Equity and organisational justice
Employees on the whole care about justice. The traditional approach leads them to consider then conclude on the fairness of outcomes, procedures and interpersonal treatment as well as consider apparent injustices.
Modern perspectives on organisational justice take this classic view to the next level and examines the reasons employees care about justice (called ‘content theories’) and the processes that lead to both the formation of fairness perceptions, as well as individuals reactions to perceived injustice (process theories).
In summary, organisational justice embraces the broader topic of employee perceptions of fairness in the workplace. Perceptions can be broken out into four categories:

• Distributive justice – this is conceptualized as the fairness associated with decision outcomes and the distribution of resources (e.g. pay or praise).
• Procedural justice – this relates to the fairness of the process that leads to the outcome – e.g. did the accused receive a ‘fair trial’. Consider consistency, accuracy, ethics and absence of bias.
• Interactional justice – this refers to the interpersonal communication element of delivering news with sensitivity and respect once a decision has been made. Interactional justice is sometimes split into two streams:
  • Interpersonal justice – the perceptions of respect and propriety in one’s treatment
  • Informational justice – the adequacy of the explanations given in terms of their specificity, truthfulness and timeliness.