1. Introduction Rewards and recognition processes play an essential role in any hotel organization that wants to achieve its goals and objectives. Furthermore, it is crucial that the hospitality workplace motivates its employees using the theories of rewards and recognition. Rewards can recognize employees' individual efforts and increase employee satisfaction. Recognition can achieve the sales goal and build effective teamwork. The correlation between business goals and objectives and employee performance enhances human resources as important assets owned by an organization. Therefore, in order to motivate staff and improve employee performance, human resource managers use reward and recognition processes to retain a more effective and talented workforce in the hospitality workplace. This report provides a discussion on reward and recognition theory and states the importance of these theories applied to the hospitality industry. For a moment, this includes the concept of intrinsic rewards and extrinsic rewards, as well as informal recognition and formal recognition. Furthermore, the report aims to identify reward and recognition issues related to the identified case study of Capitol Hotels New Zealand and provides recommendations for the identified issues that can improve the performance of Capitol Hotels New Zealand. Reward and Recognition Theory2.1 Reward Theory 179/300Rewards include two main parts: intrinsic rewards and extrinsic rewards (Rudman, 2010). Intrinsic rewards, which are intangible and usually come on their own, refer to feelings of self-worth and fulfillment and include interesting work, growth, and responsibility. Intrinsic rewards related to the work itself, job enrichment, job expansion… half of the paper… our, 37(3), 321–328. doi:10.2224/sbp.2009.37.3.321 Reid, D. (2009, April 24). Set sales goals. Management Issues, 237(6199), 17. Retrieved from http://search.proquest.com.ezproxy.aut.ac.nz/docview/229375608 Rudman, R. (2010). Human resource management in New Zealand. New Zealand: Pearson.Sarwar, S., & Abugre, J. (2013). The influence of rewards and job satisfaction on employees in the service industry. The Business and Management Review, 3(2), 22-32. Trends in employee recognition (2005). Scotsdale, AZ: WorldatWork. Types of sales goals. (2013, November 15). Retrieved from Queensland Government website: http://www.business.qld.gov.au/business/running/sales-customer-service/sales-targets/types-sales-targets Wood, R. (1994). Organizational behavior for hospitality management. Oxford UK: Butterworth Heinemann.