Dear Vandna
Good that Ron has posted a draft policy.
Please consider it as draft and customised it in line of type, culture, business and objective of your organization to have R&R in place.
Rewards are predominately are monetary in nature while Recognition are non monetary acts/initiatives.
Predominantly R&R aims for employees' motivation. It is a Positive Reinforcement for the act/task/behaviour he/she has demonstrated. Organization desires that such behaviours/accomplishments should get repeated by the same employee and many more should be encouraged to follow the same.
Now you have to decide what are present priorities of your company. It could be cost containment, energy saving, environment awareness, creativity, safety etc. Your R&R policy/scheme should be such that you motivate employees towards achieving objectives in such areas.
Other fundamental operational issues one need to keep in mind is that the scheme should be Transparent, Non bias, Uniform across level and sincerity of management should be reflected in institutionalisation of the scheme or soon you will see its death in nascent stage.
Regards
Shailesh Parikh
Vadodara, Gujarat
99 98 97 10 65