Contingent rewards are administered based on:

Contingent rewards are a fundamental concept in performance management and leadership, particularly within the framework of transactional leadership. They are based on the premise that rewards are given in direct response to specific behaviors or accomplishments demonstrated by employees. This "if-then" structure means that when an employee exhibits a desired behavior or achieves a certain goal, they are rewarded accordingly.

For instance, if an employee successfully completes a project ahead of schedule, they may be given a bonus or public recognition. This reinforces the behavior, encouraging that employee and others to strive for similar outcomes in the future. The effectiveness of contingent rewards lies in their clear linkage to performance, making it easier for employees to understand the expectations and the rewards for meeting those expectations.

In this context, recognizing the relationship between specific behaviors and the rewards granted is crucial for motivating employees and enhancing overall performance. This is why the choice highlighting the behavior exhibited fits perfectly with the established principles of contingent rewards.