Employees’ contribution to any organization is the key to success. For this purpose, establishing a balance between contributions of employees to the organization and the organization’s contribution to the employee is must. This is one of the reasons that organizations in the present day have realized the importance of reward and recognition for the employees in order to enhance their contribution in the organizations. The purpose of this study is to conduct a thorough literature review on the relationship between reward and recognition and its effects on employee’s job satisfaction. This review study concludes that there is a significant relationship between employee, s job satisfaction and reward and recognition. Rewarding or recognizing certain desirable behaviors of an employee can lead to job satisfaction and better performance is the logical consequence of it. The study discovered that employees’ motivation in organizations depend on the provision of incentives, appreciations, concrete rewards and recognition. In this regard the study suggests that organizations can achieve their goals and aims through motivated employees and effective reward and recognition system. The study further underscores that financial benefits, appreciations, encouragement, positive feedback, promotions, respect and recognition play an important role in enhancing employee’s job satisfaction.
Keywords: Reward, recognition, Employees motivation, Job satisfaction,