JultikaUniversity of Oulu repository

Abstract

This thesis is set out to map the current state of immaterial reward and incentive research in knowledge work context. Thesis is made to illustrate the current knowledge through literature review.

Purpose of this thesis is to increase understanding of immaterial rewarding and its function in knowledge work. This is done by examining the theoretical consensus regarding immaterial rewarding and knowledge work. Thesis also illustrates what are the current practical applications of immaterial rewarding in knowledge work organizations.

Method of the thesis is literature review and sources compose of material searched through academic portals. This thesis uses wide variety of search words to widen scope of possible results and method of material selection is personal evaluation. Selected material is then examined and portrayed in general manner regarding the practical applications. This thesis also examines and discusses the problems and contradictions within the literature.

Regarding the literature review, this thesis finds out that immaterial rewarding in knowledge work is a complex and conjoined topic. It positions itself in the intersection of humanistic sciences (psychology, sociology) and economics. During the literature review it also becomes apparent that this topic lacks uniform consensus and frameworks to shape and understand this subject. This thesis proposes some categorizations to create structure within the topic.

Regarding the practical applications and managerial suggestions, this thesis proposes two major points. First, both employees and employers need to understand the nature of knowledge work and knowledge worker, and treat knowledge workers as assets, not costs. Second, individual preferences and surrounding environment guide knowledge worker’s reward perception and thus shape the reward experience.