HOSSEIN KHANIFAR - Prof, Faculty of Management, Farabi campus, University of Tehran, Iran,
MOHAMMAD HOSSEIN RAHMATI - Assistant Prof, Faculty of Management, Farabi campus, University of Tehran, Iran,
MEHRAN KARAMI FAKHRABADI - EMBA Strategic Management, Faculty of Management, Farabi campus, University of Tehran, Iran.

Companies for reaching higher goals and development use motivation. Motivation is a complex phenomenon which is influenced by individual, cultural, ethnic and historical factors. Some methods are suggested to increase employee performance. Rewards and incentives are probably among the most popular ones. So organizations use reward systems and strategies to motivate their employees and to increase their performance. The aim of this study is to investigate how rewards, reward systems and organizational incentives influence employees. Another goal of this study is to research the relationship between the effective reward management system applications and employee performance of Mobarakeh steel company in Iran and introduce a localreward model. Our model introduces a new perspective about the conditions under which rewards are aneffective incentive design. Our conclusions is that motivating, recognizing and rewarding is a severely complicated issue, but of great importance. There are various factors that influence each other and they depend on a numerous variables such as environment, gender, age, culture, society, social factors, individual goals,psychological and physiological needs among others. Furthermore, quality of relationship with managers is a reward that improves the commitment to the organization. The results of their study bring out a positive relationship between the perceived features of the reward system and extrinsic motivation.

Motivation, Rewards, Reward Systems, Incentives, Employee performance