Membership Based Rewards - Meaning & Definition

Published by MBA Skool Team, Last Updated: January 14, 2016

What is Membership Based Rewards?

Management based rewards are those rewards which are paid on the basis of being a member of an organization. In other words if you are a member of a particular organization you are most likely to get such kind of rewards. These rewards are allocated in return of employee’s membership in an organization such that it goes to all employees irrespective of their performance. But management based rewards are not performance based they are given to all employees in general.

Rewards have a very significant effect on the work done by employee of an organization it is the reward which stimulates an employee to exit from its comfort zone and do something exceptionally good for the growth of the business. But we must understand that not all rewards are attached to the performance of an employee .in simple words rewards can be performance based and management based

Performance based rewards are those rewards which are given on the basis of performance of an employee in an organization it can paid by way of commissions, incentive systems, piece work play plans etc.

For example let us say we have two cases-1) Gym facility is provided to the departmental heads of the organization and in another case gym facility is provided to all employee within the organization what is important for us is to know that former is the case of performance based rewards whereas latter one is termed in the category of management based rewards

Types of membership based rewards

Based on practical usage membership based rewards are di vided into two parts –explicit and implied.


Difference between performance based rewards and management based rewards

1. performance based rewards are allocated on the basis of performance of an employee whereas membership based rewards is given to all employees who are members of an organization

2.Performance based rewards are given in the form of commissions incentive systems or piece rate play plans whereas membership based rewards majorly paid in the form of benefits and services being provided to the employees of an organization.


Hence, this concludes the definition of Membership Based Rewards along with its overview.

This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.

Continue Reading:

Share this Page on:
Facebook ShareTweetShare on Linkedin