Most business organizations around the world place little importance on reward systems, particularly when it comes to employee motivation. This issue has triggered significant debates in the employment industry and among human resources experts around the world. On the other hand, organizational behavior specialists such as Herzberg and Maslow, through their theories, argue that reward systems have the potential to have a significant impact on employee performance and, consequently, organizational performance. This study aims to examine the significance of reward systems, particularly in employee motivation, in an attempt to highlight the main components of a successful reward system. The three research questions, which were selected to examine the importance of rewards on employee motivation and the factors that motivate employees, include: First, what is the importance of rewards in employee motivation? Second, what makes employees unmotivated and what are the impacts of such employees on an organization? Third, is there a connection between employee motivation and performance? In this study, the researcher used a survey, which involved the use of interviews and questionnaires targeting Micro Commercial Components employees, to evaluate the research questions. In addition to this, the researcher used credible secondary materials to gain a comprehensive insight into the research topic within the chosen company. The combination of primary and secondary research was used to draw the conclusions of this study, with the intention of highlighting what makes a successful reward system and the key characteristics of such systems in supporting employee motivation in the organization. Finally, the conclusions of this research are based not only on the literature review, but also on the sur...... half of the document ...... employee involvement. California, Super Star Press.Sussex Enterprise (1996) Strategic Plan Summary 1995-2001, Sussex Enterprise. Burgess Hill, West Sussex.Teddlie, C, Tashakkori, A, (2009). Foundations of Mixed Methods Research, Thousand Oaks, Sage Publications 4(4). Torrington, D., Hall, L., & Taylor, S. (2005). Human Resource Management (6th ed.). Harlow, Essex, UK: Prentice-Hall.Van Der Velde, M., Jansen, P. & Anderson, N. (2004). Guide to Management Research Methods, Blackwell Publishing, Oxford.Warren, B., (2009). Becoming a Leader. Warren Bennis Inc, USA Werner, S. and Ward S. (2004) 'Recent Compensation Research: an Eclectic Review', Human Resource Management Review, 14 (2), pp. 201 – 227. White, G and Druker, J., 2000. Reward management: a critical context. Routledge Publishers.Wright, A., 2004. Reward management in context. CIPD Publication.