Implementation of a reward and recognition system
One of the fundamental dimensions of internal marketing is the implementation of a
proper reward and recognition system. Freedman and Montanari (1980); and Huseman and
Hatfield (1990) assert that a rewarding and recognition structure has a great impact on
employees’ behavior and organizational effectiveness. This view is supported by Guest
and Conway (2002), who proposed that a psychological contract exists by which managers
make promises and commitments to employees that they will receive certain rewards for
displaying appropriate behaviors. Fair and effective procedures coupled with the proper
execution of such procedures provide a guarantee of rewards that promote exceptional
employee cooperation and customer-service performance (Allan & Tyler, 1988;
Desatnick & Detzel, 1993).