What's The Implication Of The Reward System In The Organizational Behavior?

The reward system within an organization follows either of the two psychological approaches towards reward system, namely Operant conditioning and Classical Conditioning. The Reward System can follow either of the three contemporary theories that are in place in the post modern working environment :-

Theory X:
         It follows the assumption that your employees are naturally lazy and are not willing to work and need to be chastised so as to derive a certain level of performance out of them. Also, it naturally assumes that employees will do anything to avoid work and would rather just get paid for doing nothing.

Theory Y:
         It follows the assumption that your employees are willing and able to perform and would do anything to out perform their contemporaries. They are naturally creative and would come up with ingenious solutions to problems if encouraged.

Theory Z:
          Founded by Tai Chi Ono of The Toyota motor company this theory assumes the above two conditions and follows a procedure whereby an employee is required to be chastised in private for under performance and lauded in front of everyone if performance exceeds expectations.

How do I recommend changes to the organizations reward system