The Effect of Reward Strategies on Radical Innovation: Critical Review of Literature on Designing a Dynamic Rewards System

This study evaluates the effectiveness in which designing dynamic rewards systems influence radical innovation. This paper develops a critical review which demonstrate the effect of reward strategies on achieving holistic innovation and creativity as part of organizations success in their operations. Literature from different databases has been collated which evaluates on the impact of reward strategies adopted by different organizations and the extent this contribute to radical innovation. The outcome of this has been illustration of the complex relationship between rewards and innovation and scope of rewards in promoting innovativeness. The findings showed that by designing dynamic rewards systems, organizations are assured of achieving innovativeness in their operations. Through provision of appropriate rewards, organizations can compete for the right talents and engage them. It is these talents which assists an organization to drive innovation compared to their competitors. This paper examines the overlooked role of designing rewards that fits an organization goals and objectives. Relevant recommendations have been developed at the end on holistic approach of designing dynamic rewards which integrates the issues of roles, timing and magnitude of rewards for the purpose of driving innovation.