Different criteria of distributing rewards are as follows:
1. Performance
Reward is basically based on the level of job performance ability of an individual. The one who can perform the job well can get high reward in comparison to the poor performer. Hence, under this criteria of reward distribution, an individual's performance is evaluated before assigning any reward.
2. Effort
Another important criteria of distributing reward is the effort contributed by an individual towards organizational objectives. Where the question of employee performance is a low caliber, the only one way of rewarding employees is the basis of effort. Through this criterion one can exert the input of individual for organizational activities.
3. Seniority
Under this criterion, reward is provided to those individuals who have served relatively for longer period. This is one of the traditional ways of determining rewards in the organization,under which, the rewards are provided on tenure basis. Hence, length of service on the job is a major factor for determining the level of pay and it is easy to determine rewards.
4. Skills Held
Under this criterion of reward distribution, individuals having special skills are rewarded. It is another important practice of distributing rewards which is not unknown in organizations. Under it, regardless of whether the skills are used, these individuals who possess the highest talents are rewarded.
5. Job Difficulty
Under this criterion of reward distribution, the complexities of the job are considered as the basis of rewarding employees. It assumes that the complex and difficult jobs require higher attention and concentration at work. So, these types of job holders should be rewarded.
6. Discretionary Time
This criterion is based upon the time taken for decision making. More tome for decision making means more probability of getting reward. This is because such jobs may have occur the chances of error hence, there is a need for careful judgement.