Dear friend,
Rewards are given on two counts. One is outstanding performance and second one is doing something innovative on one's own.
As far as former is concerned, how to do you quantify the performance? Unless you measure the performance, it will not be possible to compare one employee's performance with another. As far as doing something is concerned, it could be related process improvement, cost reduction, customer delight etc.
Therefore, please give me little more information about your company. Above all, while measuring the performance, do you measure what deserves to be measured? I ask this question because many times employees are rewarded however, certain vital business performance is never measured. Therefore, reward to the employees should not come at the expense of organisation. This could be the essence of your policy.
Thanks,
Dinesh Divekar