Yes, performance based rewards work even today because I personally feel that performance should be the only parameter while appreciating or rewarding an individual in the workplace. Performance should be effective because that should make the business better to some extent at least and only then it will be considered. We have observed that while appraisal discussion there are so many other factors which are considered but they are addition to performance because that is primary along with skill like leadership, management, etc. The way of doing business has changed but employees still perform for the betterment of the organization and themselves.
Therefore we can conclude that yes performance based rewards work today and they are effective enough.