What are contingency rewards?

• A. Unconditional annual bonuses awarded regardless of performance
• B. Rewards or recognition provided in exchange for high performance
• C. Punishments for poor performance
• D. Mandatory training programs for all staff

Answer: (B)

Contingency rewards are incentives given only when specific performance criteria are met. They link a reward directly to actual achievement, reinforcing the behavior the organization wants to see. Rewards can be monetary, like bonuses or raises, or non-monetary, like public recognition or promotional opportunities. They’re distinct from unconditional bonuses, punishments, or mandatory training, since those are not tied to demonstrated performance. So the description “Rewards or recognition provided in exchange for high performance” correctly captures the idea.